Document:

Exhibit

Exhibit 10.29
COMMON STOCK PURCHASE AGREEMENT
THIS COMMON STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of August 3, 2016, between Banc of California, Inc., a Maryland corporation (the “Seller”), and Banc of California Capital and Liquidity Enhancement Employee Compensation Trust, a Maryland statutory trust (the “Trust”, which is hereinafter sometimes referred to as the “Purchaser”), under a trust agreement between the Seller and Evercore Trust Company, N.A., a non-depository trust bank organized under the laws of the United States of America, not in its individual or corporate capacity but solely in its capacity as trustee (the “Trustee”), dated as of August 3, 2016 (the “Trust Agreement”).
W I T N E S S E T H:
WHEREAS, as contemplated by the Trust Agreement, the Purchaser is to purchase from the Seller, and the Seller is to sell to the Purchaser, 2,500,000 shares of the Seller’s voting Common Stock, par value $0.01 per share (the “Common Shares”), all as more specifically provided herein.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein, and subject to and on the terms and conditions herein set forth, the parties hereto agree as follows:
ARTICLE I
PURCHASE AND SALE OF SHARES
1.1.    Purchase and Sale.  Subject to the terms and conditions set forth herein, the Seller will sell to the Purchaser, and the Purchaser will purchase from the Seller, at the Closing (as hereinafter defined), the Common Shares, and, in consideration for the Common Shares, the Purchaser will deliver to the Seller (a) the note in the form of Appendix I to this Agreement in the principal amount of $53,600,000.00 (the “Note”) and (b) cash in the amount of $25,000.00 representing the aggregate par value of the Common Shares.
1.2.    Closing.  The closing of the sale and purchase of the Common Shares hereunder (the “Closing”) will be held at the offices of the Seller at 10:00 a.m., Los Angeles time, on the date of execution and delivery of this Agreement by the Seller and the Purchaser, or at such other time, date and place as may be mutually agreed upon by the Seller and the Trustee.
1.3.    Delivery and Payment.  At the Closing, the Seller will deliver to the Purchaser a certificate representing the Common Shares, which certificate shall be registered in the name of the Purchaser, or the name of its nominee, against payment by the Purchaser to the Seller of the aggregate consideration set forth in Section 1.1 therefor.  The Seller will pay all stamp and other transfer taxes, if any, that may be payable in respect of the sale and delivery of the Common Shares.

ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE SELLER
The Seller represents and warrants to the Purchaser as follows:
2.1.    Corporate Existence and Authority.  The Seller (a) is a corporation duly organized and validly existing and in good standing under the laws of the State of Maryland, (b) has all requisite corporate power to execute, deliver and perform this Agreement and (c) has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.
2.2.    No Conflict.  The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate, conflict with or constitute a default under (a) the Seller’s articles of incorporation or bylaws, (b) any agreement, indenture or other instrument to which the Seller is a party or by which the Seller or its assets may be bound or (c) any law, regulation, order, arbitration, award, judgment or decree applicable to the Seller.
2.3.    Validity.  This Agreement has been duly executed and delivered by the Seller and is a valid and binding agreement of the Seller enforceable against the Seller in accordance with its terms, except as the enforceability thereof may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws affecting the enforcement of creditors’ rights generally, and by general principles of equity.
2.4.    Common Shares.  The Common Shares have been duly authorized and when issued and sold as contemplated hereby will be validly issued, fully paid and non-assessable shares of the Seller.  No stockholder of the Seller has any preemptive or other subscription right to acquire any shares of Common Stock.  The Seller will convey to the Purchaser, on the date of Closing, good and valid title to the Common Shares free and clear of any liens, claims, security interests and encumbrances (other than restrictions arising under the securities laws).
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
The Purchaser hereby represents and warrants to the Seller as follows:  
3.1.    Authority; Validity.  The Purchaser has full power and authority to execute and deliver this Agreement and the Note and to consummate the transactions contemplated hereby and thereby.  This Agreement has been duly authorized, executed and delivered by the Purchaser and is a valid and binding agreement of the Purchaser enforceable in accordance with its terms, except as the enforceability thereof may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws affecting the enforcement of creditors’ rights generally, and by general principles of equity.  The Note has been duly authorized by the Purchaser and, upon the execution and delivery by the Purchaser, the Note will be a valid and binding agreement of the Purchaser enforceable in accordance with its terms, except as the enforceability thereof may be limited by any applicable bankruptcy, insolvency, 

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reorganization, moratorium, fraudulent conveyance or other laws affecting the enforcement of creditors’ rights generally, and by general principles of equity.
3.2.    No Conflict.  The execution and delivery of this Agreement do not, and the execution and delivery of the Note, and the consummation of the transactions contemplated hereby and thereby will not, violate, conflict with or constitute a default under (a) the terms of the Trust, (b) any agreement, indenture or other instrument to which the Trust is a party or by which the Trust or its assets may be bound or subject or (c) any law, regulation, order, arbitration award, judgment or decree applicable to the Trust.
ARTICLE IV
RESTRICTIONS ON DISPOSITION OF THE COMMON SHARES
4.1.    Restricted Securities.  The Purchaser acknowledges that the Purchaser is acquiring the Common Shares pursuant to a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”).  The Purchaser represents, warrants and agrees that all Common Shares acquired by the Purchaser pursuant to this Agreement are being acquired for investment without any intention of making a distribution thereof, or of making any sale or other disposition thereof which would be in violation of the 1933 Act or any applicable state securities law, and that the Purchaser will not dispose of any of the Common Shares, except that (a) the Trustee will convey or sell a portion of the Common Shares to fund the obligations of the Seller under certain plans as may be set forth in Schedule A to the Trust Agreement and (b) the Trustee may dispose of Common Shares as provided in the Trust Agreement, in each case in compliance with all provisions of applicable federal and state law regulating the issuance, sale and distribution of securities and the Trust Agreement.
4.2.    Legend.  Until such time as the Common Shares are registered pursuant to the provisions of the 1933 Act, any certificate or certificates representing the Common Shares delivered pursuant to Section 1.3 will bear a legend in substantially the following form:
“The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be sold, transferred or otherwise disposed of unless they have first been registered under such Act or unless an exemption from registration is available.”
The Seller may place stop transfer orders against the registration of transfer of any Common Share evidenced by such a certificate or certificates until such time as the requirements of the foregoing are satisfied.
ARTICLE V
COVENANTS OF SELLER
The Seller agrees that:
5.1.    Financial Statements and Reports.  Subsequent to the Closing, and for as long as the Common Shares are held by the Trust (unless the Trustee shall otherwise consent in writing), the 

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Seller shall deliver to the Trustee each of the following (such delivery to be deemed effective if the information is otherwise publicly available on the Securities and Exchange Commission’s EDGAR system):
(a)Annual Statements.  As soon as available and in any event within one hundred twenty (120) days after the close of each fiscal year of the Seller, copies of the consolidated balance sheet of the Seller and its subsidiaries as of the close of such fiscal year and consolidated statements of operations, statements of stockholders’ equity and statements of cash flow of the Seller and its subsidiaries for such fiscal year, in each case setting forth in comparative form the figures for the preceding fiscal year, all in reasonable detail and accompanied by an opinion thereon of KPMG LLP, or of other independent public accountants of recognized standing, to the effect that such financial statements have been prepared in accordance with generally accepted accounting principles consistently applied (except for changes in which such accountants concur) and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards; and
(b)SEC and Other Reports.  Promptly upon their becoming available, one copy of each financial statement, report, notice or proxy statement sent by the Seller to stockholders generally and of each regular or periodic report, registration statement or prospectus (other than any registration statement on Form S‐8 and its related prospectus) filed by the Seller with the Securities and Exchange Commission or any successor agency.
5.2.    Listing; Registration.  If so requested by the Trustee, the Seller shall use is reasonable best efforts to cause the Common Shares to be listed on the New York Stock Exchange or such other exchange on which the Company’s voting Common Stock is then listed.  The Seller will, as promptly as practicable (but in any event within 180 days) after a request by the Trustee, prepare for filing at the Seller’s expense a registration statement with the Securities and Exchange Commission sufficient to permit the public offering of the Common Shares in accordance with the terms of this Agreement, and the Seller will use its reasonable best efforts to cause such registration statement to become effective as promptly as practicable and to remain effective for a reasonable period, all to the extent required to permit the sale or other disposition of such Common Shares.  The Seller shall also use its reasonable best efforts to register or qualify the Common Shares so registered under the blue sky laws of such jurisdictions within the United States as the Trustee may reasonably request; provided, however, that in connection therewith the Seller shall not be required to qualify as a foreign corporation or to file a general consent to service of process in any jurisdiction or subject itself to taxation in any jurisdiction in which it was not otherwise subject to taxation.
ARTICLE VI
CONDITIONS TO CLOSING
6.1.    Conditions to Obligations of the Purchaser.  The obligation of the Purchaser to purchase the Common Shares is subject to the satisfaction of the following conditions on the date of Closing:

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(a)the representations and warranties of the Seller set forth in Article II hereof shall be true and correct; and if the Closing shall occur on a date other than the date of this Agreement, the Purchaser shall have been furnished with a certificate, dated the date of the Closing, to such effect, signed by an authorized officer of the Seller; and
(b)all permits, approvals, authorizations and consents of third parties necessary for the consummation of the transactions herein shall have been obtained, and no order of any court or administrative agency shall be in effect which restrains or prohibits the transactions contemplated by this Agreement.
6.2.    Conditions to Obligations of the Seller.  The obligation of the Seller to issue, sell and deliver the Common Shares to the Purchaser is subject to the satisfaction of the following conditions on the date of Closing:
(a)the representations and warranties of the Purchaser set forth in Article III hereof shall be true and correct; and if the Closing shall occur on a date other than the date of this Agreement, the Seller shall have been furnished with a certificate dated the date of the Closing, to such effect, signed by an authorized officer of the Trustee on behalf of the Trust; and
(b)all permits, approvals, authorizations and consents of third parties necessary for the consummation of the transactions herein shall have been obtained, and no order of any court or administrative agency shall be in effect which restrains or prohibits the transactions contemplated by this Agreement.
ARTICLE VII
MISCELLANEOUS
7.1.    Expenses.  The Seller shall pay all of its expenses, and it shall pay the Purchaser’s expenses, in connection with the authorization, preparation, execution and performance of this Agreement, including without limitation the reasonable fees and expenses of the Trustee, its agents, representatives, counsel, financial advisors and consultants.
7.2.    Survival of the Seller’s Representations and Warranties.  All representations and warranties made by the Seller to the Purchaser in this Agreement shall survive the Closing.
7.3.    Notices.  All notices, requests or other communications required or permitted to be delivered hereunder shall be in writing, delivered by registered or certified mail, return receipt requested, as follows:
(a)To the Seller:
Banc of California, Inc. 
18500 Von Karman Avenue, Suite 1100 
Irvine, CA 92612
Attention:  General Counsel

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(b)To the Purchaser:
Evercore Trust Company, N.A., as trustee 
55 East 52nd Street
New York, NY 10055        
Attention:  William E. Ryan, III
Any party hereto may from time to time, by written notice given as aforesaid, designate any other address to which notices, requests or other communications addressed to it shall be sent.
7.4.    Specific Performance.  The parties hereto acknowledge that damages would be an inadequate remedy for any breach of the provisions of this Agreement and agree that the obligations of the parties hereunder shall be specifically enforceable, and neither party will take any action to impede the other from seeking to enforce such rights of specific performance.
7.5.    Successors and Assigns; Integration; Assignment.  This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective legal representatives, successors and assigns.  This Agreement (a) constitutes, together with the Note, the Trust Agreement and any other written agreements between the Purchaser or the Trustee and the Seller executed and delivered on the date hereof, the entire agreement between the parties hereto and supersedes all other prior agreements and understandings, both written and oral, among the parties hereto, with respect to the subject matter hereof, (b) shall not confer upon any person other than the parties hereto any rights or remedies hereunder and (c) shall not be assignable by operation of law or otherwise.
7.6.    Governing Law; Jurisdiction and Venue.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of law.  The parties hereto irrevocably agree that any legal action or proceeding arising out of or relating to this Agreement shall be brought and determined in the courts of the State of California sitting in Los Angeles (or if such state courts decline jurisdiction, the federal courts sitting in Los Angeles, California), and each of the parties hereto hereby irrevocably submits with regard to any such action or proceeding to the exclusive jurisdiction of the aforesaid courts.  Each of the parties hereto hereby irrevocably waives and agrees not to assert in any action or proceeding with respect to this Agreement, any claim (a) that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts or (c) to the fullest extent permitted by applicable law, that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.
7.7.    Further Assurances.  Subject to the terms and conditions herein provided, each of the parties hereto agrees to use all reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement.

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7.8.    Amendment and Waiver.  No amendment or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and signed by the Purchaser and the Seller.
7.9.    Counterparts.  This Agreement may be executed in any number of counterparts with the same effect as if the signatures thereto were upon one instrument.
7.10.    Certain Limitations.  The execution, delivery and performance by the Trustee of this Agreement have been, and will be, effected by the Trustee solely in its capacity as Trustee under the terms of the Trust and not in its individual or corporate capacity.  Nothing in this Agreement shall be interpreted to increase, decrease or modify in any manner any liability of  the Trustee to the Seller or to any trustee, representative or other claimant by right of the Seller resulting from the Trustee’s performance of its duties under the constituent instruments of the Trust, and no personal or corporate liability shall be asserted or enforceable against the Trustee by reason of any of the covenants, statements or representations contained in this Agreement.
7.11.    Incorporation.  The terms and conditions of the Trust Agreement relating to the nature of the responsibilities of the Trustee and the indemnification of the Trustee by the Seller are incorporated herein by reference and made applicable to this Agreement.
[signature page follows]

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IN WITNESS WHEREOF, the undersigned have duly executed this Agreement on the date and year first above written.
	
			
	 
	BANC OF CALIFORNIA, INC.

	 
	 
	 

	 
	By:
	/s/ Steven A. Sugarman

	 
	 
	Steven A. Sugarman

	 
	 
	President and Chief Executive Officer

	 
	 
	 

	 
	 
	 

	 
	BANC OF CALIFORNIA CAPITAL AND
LIQUIDITY ENHANCEMENT EMPLOYEE
COMPENSATION TRUST

	 
	 
	 

	 
	By:
	/s/ William E. Ryan III

	 
	 
	William E. Ryan III

	 
	 
	President and Chief Fiduciary Officer

	 
	 
	On behalf of Evercore Trust Company, N.A., solely in its capacity as Trustee of the Banc of California Capital and Liquidity Enhancement Employee Compensation Trust

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Appendix I
PROMISSORY NOTE
$53,600,000.00
Irvine, California                                           August 3, 2016
FOR VALUE RECEIVED, the undersigned, Banc of California Capital and Liquidity Enhancement Employee Compensation Trust (the “Trust”), hereby promises to pay to the order of Banc of California, Inc., a Maryland corporation (the “Company”), at the principal offices of the Company in Irvine, California, or at such other place as the Company shall designate in writing, the aggregate principal amount of FIFTY-THREE MILLION SIX HUNDRED THOUSAND DOLLARS ($53,600,000.00), as shown on Schedule A attached hereto as such may be amended from time to time, with interest in arrears thereon, as hereinafter provided.  
Principal shall be paid in installments in the amounts and on the dates set forth on the Maturity Schedule attached hereto as Schedule A, the last such installment due on [January 1, 2032]; provided, however, that this Note may be prepaid in whole or in part at any time without penalty; and provided further that the principal amount of this Note, together with any accrued but unpaid interest, shall be deemed forgiven, if applicable, in accordance with Section 2.1(b) of the Trust Agreement, by and between the Company and Evercore Trust Company, N.A., not in its individual or corporate capacity but solely in its capacity as trustee, dated as of August 3, 2016.  Interest on the unpaid principal balance, at an annual interest rate equal to 5.25%, shall be paid quarterly, in arrears, on each January 1, April 1, July 1 and October 1, commencing on the first such payment date following the date hereof, and shall be calculated on the basis of a 360-day year of 30-day months.  Whenever any payment falls due on a Saturday, Sunday or public holiday, such payment shall be made on the next succeeding business day.  
This Note shall be construed under the laws of the State of New York.  
The undersigned represents and warrants that the indebtedness represented by this Note was incurred for the purpose of purchasing shares of voting common stock, $0.01 par value, of the Company.  
This Note may not be assigned by the Company, other than by operation of law, without the prior express written consent of the undersigned.  

The Company shall have no recourse whatsoever to any assets of the Trustee in its individual or corporate capacity for repayment.  No personal or corporate liability or personal or corporate responsibilities are assumed by, or shall at any time be asserted or enforceable against, the Trustee in its individual or corporate capacity under, or with respect to, this Note.
	
			
	 
	BANC OF CALIFORNIA CAPITAL AND
LIQUIDITY ENHANCEMENT EMPLOYEE
COMPENSATION TRUST

	 
	 
	 

	 
	By:
	/s/ William E. Ryan III

	 
	 
	William E. Ryan III

	 
	 
	President and Chief Fiduciary Officer

	 
	 
	On behalf of Evercore Trust Company, N.A., solely in its capacity as Trustee of the Banc of California Capital and Liquidity Enhancement Employee Compensation Trust

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Schedule A
PRINCIPAL PAYMENT DATES
	
								
	#
	Date
	Total Payment
	Interest
	Principal
	Loan Value ($)

	 
	8/3/2016
	 
	 
	 
	   53,600,000.00 
	

	1
	10/1/2016
	              820,732.42 
	           453,366.67 
	

	          367,365.75 
	   53,232,634.25 
	

	2
	1/1/2017
	          1,273,550.30 
	           698,678.32 
	

	          574,871.98 
	   52,657,762.27 
	

	3
	4/1/2017
	          1,273,550.30 
	           691,133.13 
	

	          582,417.17 
	   52,075,345.10 
	

	4
	7/1/2017
	          1,273,550.30 
	           683,488.90 
	

	          590,061.40 
	   51,485,283.70 
	

	5
	10/1/2017
	          1,273,550.30 
	           675,744.35 
	

	          597,805.95 
	   50,887,477.75 
	

	6
	1/1/2018
	          1,273,550.30 
	           667,898.15 
	

	          605,652.16 
	   50,281,825.59 
	

	7
	4/1/2018
	          1,273,550.30 
	           659,948.96 
	

	          613,601.34 
	   49,668,224.25 
	

	8
	7/1/2018
	          1,273,550.30 
	           651,895.44 
	

	          621,654.86 
	   49,046,569.39 
	

	9
	10/1/2018
	          1,273,550.30 
	           643,736.22 
	

	          629,814.08 
	   48,416,755.31 
	

	10
	1/1/2019
	          1,273,550.30 
	           635,469.91 
	

	          638,080.39 
	   47,778,674.92 
	

	11
	4/1/2019
	          1,273,550.30 
	           627,095.11 
	

	          646,455.19 
	   47,132,219.73 
	

	12
	7/1/2019
	          1,273,550.30 
	           618,610.38 
	

	          654,939.92 
	   46,477,279.81 
	

	13
	10/1/2019
	          1,273,550.30 
	           610,014.30 
	

	          663,536.01 
	   45,813,743.80 
	

	14
	1/1/2020
	          1,273,550.30 
	           601,305.39 
	

	          672,244.92 
	   45,141,498.89 
	

	15
	4/1/2020
	          1,273,550.30 
	           592,482.17 
	

	          681,068.13 
	   44,460,430.76 
	

	16
	7/1/2020
	          1,273,550.30 
	           583,543.15 
	

	          690,007.15 
	   43,770,423.61 
	

	17
	10/1/2020
	          1,273,550.30 
	           574,486.81 
	

	          699,063.49 
	   43,071,360.12 
	

	18
	1/1/2021
	          1,273,550.30 
	           565,311.60 
	

	          708,238.70 
	   42,363,121.41 
	

	19
	4/1/2021
	          1,273,550.30 
	           556,015.97 
	

	          717,534.33 
	   41,645,587.08 
	

	20
	7/1/2021
	          1,273,550.30 
	           546,598.33 
	

	          726,951.97 
	   40,918,635.11 
	

	21
	10/1/2021
	          1,273,550.30 
	           537,057.09 
	

	          736,493.22 
	   40,182,141.89 
	

	22
	1/1/2022
	          1,273,550.30 
	           527,390.61 
	

	          746,159.69 
	   39,435,982.20 
	

	23
	4/1/2022
	          1,273,550.30 
	           517,597.27 
	

	          755,953.04 
	   38,680,029.17 
	

	24
	7/1/2022
	          1,273,550.30 
	           507,675.38 
	

	          765,874.92 
	   37,914,154.25 
	

	25
	10/1/2022
	          1,273,550.30 
	           497,623.27 
	

	          775,927.03 
	   37,138,227.22 
	

	26
	1/1/2023
	          1,273,550.30 
	           487,439.23 
	

	          786,111.07 
	   36,352,116.15 
	

	27
	4/1/2023
	          1,273,550.30 
	           477,121.52 
	

	          796,428.78 
	   35,555,687.37 
	

	28
	7/1/2023
	          1,273,550.30 
	           466,668.40 
	

	          806,881.91 
	   34,748,805.46 
	

	29
	10/1/2023
	          1,273,550.30 
	           456,078.07 
	

	          817,472.23 
	   33,931,333.23 
	

	30
	1/1/2024
	          1,273,550.30 
	           445,348.75 
	

	          828,201.55 
	   33,103,131.68 
	

	31
	4/1/2024
	          1,273,550.30 
	           434,478.60 
	

	          839,071.70 
	   32,264,059.98 
	

	32
	7/1/2024
	          1,273,550.30 
	           423,465.79 
	

	          850,084.52 
	   31,413,975.46 
	

	33
	10/1/2024
	          1,273,550.30 
	           412,308.43 
	

	          861,241.87 
	   30,552,733.59 
	

	34
	1/1/2025
	          1,273,550.30 
	           401,004.63 
	

	          872,545.67 
	   29,680,187.91 
	

	35
	4/1/2025
	          1,273,550.30 
	           389,552.47 
	

	          883,997.84 
	   28,796,190.08 
	

	36
	7/1/2025
	          1,273,550.30 
	           377,949.99 
	

	          895,600.31 
	   27,900,589.77 
	

	37
	10/1/2025
	          1,273,550.30 
	           366,195.24 
	

	          907,355.06 
	   26,993,234.71 
	

	38
	1/1/2026
	          1,273,550.30 
	           354,286.21 
	

	          919,264.10 
	   26,073,970.61 
	

	39
	4/1/2026
	          1,273,550.30 
	           342,220.86 
	

	          931,329.44 
	   25,142,641.17 
	

	40
	7/1/2026
	          1,273,550.30 
	           329,997.17 
	

	          943,553.14 
	   24,199,088.04 
	

	41
	10/1/2026
	          1,273,550.30 
	           317,613.03 
	

	          955,937.27 
	   23,243,150.76 
	

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	42
	1/1/2027
	          1,273,550.30 
	           305,066.35 
	

	          968,483.95 
	   22,274,666.82 
	

	43
	4/1/2027
	          1,273,550.30 
	           292,355.00 
	

	          981,195.30 
	   21,293,471.51 
	

	44
	7/1/2027
	          1,273,550.30 
	           279,476.81 
	

	          994,073.49 
	   20,299,398.03 
	

	45
	10/1/2027
	          1,273,550.30 
	           266,429.60 
	

	      1,007,120.70 
	   19,292,277.32 
	

	46
	1/1/2028
	          1,273,550.30 
	           253,211.14 
	

	      1,020,339.16 
	   18,271,938.16 
	

	47
	4/1/2028
	          1,273,550.30 
	           239,819.19 
	

	      1,033,731.11 
	   17,238,207.05 
	

	48
	7/1/2028
	          1,273,550.30 
	           226,251.47 
	

	      1,047,298.84 
	   16,190,908.21 
	

	49
	10/1/2028
	          1,273,550.30 
	           212,505.67 
	

	      1,061,044.63 
	   15,129,863.58 
	

	50
	1/1/2029
	          1,273,550.30 
	           198,579.46 
	

	      1,074,970.84 
	   14,054,892.73 
	

	51
	4/1/2029
	          1,273,550.30 
	           184,470.47 
	

	      1,089,079.84 
	   12,965,812.90 
	

	52
	7/1/2029
	          1,273,550.30 
	           170,176.29 
	

	      1,103,374.01 
	   11,862,438.89 
	

	53
	10/1/2029
	          1,273,550.30 
	           155,694.51 
	

	      1,117,855.79 
	   10,744,583.10 
	

	54
	1/1/2030
	          1,273,550.30 
	           141,022.65 
	

	      1,132,527.65 
	     9,612,055.45 
	

	55
	4/1/2030
	          1,273,550.30 
	           126,158.23 
	

	      1,147,392.07 
	     8,464,663.37 
	

	56
	7/1/2030
	          1,273,550.30 
	           111,098.71 
	

	      1,162,451.60 
	     7,302,211.78 
	

	57
	10/1/2030
	          1,273,550.30 
	95,841.53
	

	      1,177,708.77 
	     6,124,503.01 
	

	58
	1/1/2031
	          1,273,550.30 
	80,384.10
	

	      1,193,166.20 
	     4,931,336.81 
	

	59
	4/1/2031
	          1,273,550.30 
	64,723.80
	

	      1,208,826.51 
	     3,722,510.30 
	

	60
	7/1/2031
	          1,273,550.30 
	48,857.95
	

	      1,224,692.35 
	     2,497,817.94 
	

	61
	10/1/2031
	          1,273,550.30 
	32,783.86
	

	      1,240,766.44 
	     1,257,051.50 
	

	62
	1/1/2032
	          1,273,550.30 
	16,498.80
	

	      1,257,051.50 
	—
	

-4-ex10-2.htm

EXHIBIT 10.2

AUTOBYTEL INC. AMENDED AND RESTATED 2014 EQUITY INCENTIVE PLAN

 

Non-Employee Director Stock Option Award Agreement

(Non-Qualified Stock Option)

 

This Non-Employee Director Stock Option Award Agreement (“Agreement”) is entered into effective as of the Grant Date set forth on the signature page to this Agreement (“Grant Date”), by and between Autobytel Inc., a Delaware corporation (“Company”), and the member of Company’s Board set forth as Participant on the signature page hereto (“Participant”).

 

This Agreement and the stock options granted hereby are subject to the provisions of the Autobytel Inc. Amended and Restated 2014 Equity Incentive Plan (“Plan”).  In the event of a conflict between the provisions of the Plan and this Agreement, the Plan shall control.  Capitalized terms used but not defined in this Agreement shall have the meanings assigned to such terms in the Plan.

 

1.           Grant of Options.  Company hereby grants to Participant non-qualified stock options (“Options”) to purchase the number of shares of common stock of Company, par value $0.001 per share, set forth on the signature page to this Agreement (“Shares”), at the exercise price per Share set forth on the signature page to this Agreement (“Exercise Price”).  The Options are not intended to qualify as incentive stock options under Section 422 of the Code.

 

2.           Term of Options.  Unless the Options terminate earlier pursuant to the provisions of this Agreement or the Plan, the Options shall expire on the seventh (7th) anniversary of the Grant Date (“Option Expiration Date”).

 

3.           Vesting.  The Options shall vest in twelve monthly installments of one-twelfth (1/12) each on the [XX] day of each month commencing [XXXX].

 

4.           Exercise of Options.

 

(a)           Manner of Exercise.  To the extent vested, the Options may be exercised, in whole or in part, by delivering written notice to Company in accordance with Section 6(f) of this Agreement in such form as Company may require from time to time, or at the direction of Company, through the procedures established with Company’s third party option administration service. Such notice shall specify the number of Shares, subject to the Options that are being exercised, and shall be accompanied by full payment of the Exercise Price of such Shares in a manner permitted under the terms of Section 5.5 of the Plan (including same-day sales through a broker), except that payment in whole or in part in a manner set forth in clauses (ii), (iii) or (iv) of Section 5.5(b) of the Plan may only be made with the consent of the Committee.  The Options may be exercised only in multiples of whole Shares, and no fractional Shares shall be issued.

 

(b)           Issuance of Shares.  Upon exercise of the Options and payment of the Exercise Price for the Shares as to which the Options are exercised and satisfaction of all applicable tax withholding requirements, if any, the Company shall issue to Participant the applicable number of Shares in the form of fully paid and nonassessable Shares.

 

(c)           Withholding.  No Shares will be issued on exercise of the Options unless and until Participant pays to Company, or makes satisfactory arrangements with Company for payment of, any federal, state, local or foreign taxes required by law to be withheld in respect of the exercise of the Options.  Participant hereby agrees that Company may withhold from Participant’s wages or other remuneration the applicable taxes.  At the discretion of Company, the applicable taxes may be withheld in kind from the Shares otherwise deliverable to Participant on exercise of the Options, up to Participant’s minimum required withholding rate or such other rate determined by the Committee that will not trigger a negative accounting impact.

 

            5.           Termination of Options.

 

(a)           Termination Upon Expiration of Option Term.  The Options shall terminate and expire in their entirety on the Option Expiration Date.  In no event may Participant exercise the Options after the Option Expiration Date, even if the application of another provision of this Section 5 may result in an extension of the exercise period for the Options beyond the Option Expiration Date.

 

  

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(b)           Termination of Service as a Director.

 

(i)           Termination of Service as a Director Other Than Due to Death, Disability or Cause.  Participant may exercise the vested portion of the Options for a period of twelve (12) months (but in no event later than the Option Expiration Date) following any termination of Participant’s service as a Director of Company (including termination of service by reason of Participant’s resignation, failure to be re-elected or failure to be nominated for re-election), other than in the event of a termination of Participant’s service as a Director due to Removal for Cause (as defined below) or by reason of Participant’s death or Disability (as defined below).  To the extent Participant is not entitled to exercise the Options at the date of termination of service as a Director, or if Participant does not exercise the Options within the time specified in the Plan or this Agreement for post-termination of service exercises of the Options, the Options shall terminate.

 

(ii)           Termination of Service Due to Removal for Cause.  Upon the termination of Participant’s service as a Director due to Removal for Cause, unless the Options have earlier terminated, the Options (whether vested or not) shall immediately terminate in their entirety and shall thereafter not be exercisable to any extent whatsoever; provided that Company, in its discretion, may, by written notice to Participant given as of the date of Removal for Cause, authorize Participant to exercise any vested portion of the Options for a period of up to thirty (30) days following Participant’s termination of service due to Removal for Cause, provided that in no event may Participant exercise the Options after the Option Expiration Date.  For purposes of this Agreement, “Removal for Cause” shall mean a removal of Participant as a member of the Board by Company’s stockholders pursuant to applicable corporate laws governing the removal of Directors.

 

(iii)           Termination of Participant’s Service as a Director By Reason of Participant’s Death.  In the event Participant’s service as a Director is terminated by reason of Participant’s death, unless the Options have earlier terminated, any unvested portion of the Options shall become immediately and fully vested as of the date of termination.  Vested Options may be exercised at any time within twelve (12) months following the date of termination (but in no event later than the Option Expiration Date) by Participant’s executor or personal representative or the person to whom the Options shall have been transferred by will or the laws of descent and distribution, but only to the extent Participant could exercise the Options at the date of termination.

(iv)           Termination of Participant’s Service as a Director By Reason of Participant’s Disability.  In the event that Participant ceases to be a Director by reason of Participant’s Disability, unless the Options have earlier terminated, any unvested portion of the Options shall become immediately and fully vested as of the date of termination.  Participant (or Participant’s attorney in fact, conservator or other representative on behalf of Participant) may, but only within twelve (12) months from the date of such termination of service as a Director (and in no event later than the Option Expiration Date), exercise the Options to the extent Participant was otherwise entitled to exercise the Options at the date of such termination of service.  For purposes of this Agreement, “Disability” shall mean Participant’s becoming “permanently and totally disabled” within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the Committee in its discretion.  The Committee may require such proof of Disability as the Committee in its sole and absolute discretion deems appropriate, and the Committee’s determination as to whether Participant has incurred a Disability shall be final and binding on all parties concerned.

 

(c)           Change in Control.  In the event of a Change in Control, the effect of the Change in Control on the Options shall be determined by the applicable provisions of the Plan (including, without limitation, Article 11 of the Plan), provided that (i) to the extent the Options are assumed or substituted by the successor company in connection with the Change in Control (or the Options are continued by Company if it is the ultimate parent entity after the Change in Control), the Options will vest and become fully exercisable in accordance with clause (i) of Section 11.2(a) of the Plan if within twenty-four (24) months following the date of the Change in Control Participant’s service as a Director of the Company is terminated for any reason other than by reason of removal for Cause, and any vested Options (either vested prior to the Change in Control or accelerated by reason of this Section 5(c)) may be exercised for a period of twenty-four (24) months after the date of such termination of service (but in no event later than the Option Expiration Date); and (ii) any portion of the Options which vests and becomes exercisable pursuant to Section 11.2(b) of the Plan as a result of such Change in Control will (1) vest and become exercisable on the day prior to the date of the Change in Control  if Participant is then a member of the Company’s Board and (2) terminate on the date of the Change in Control.  For purposes of Section 11.2 (a) of the Plan, the Options shall not be deemed assumed or substituted by a successor company (or continued by Company if it is the ultimate parent entity after the Change in Control) if the Options are not assumed, substituted or continued with equity securities of the successor company or Company, as applicable, that are publicly-traded and listed on an exchange in the United States and that have voting, dividend and other rights, preferences and privileges substantially equivalent to the Shares.  If the Options are not deemed assumed, substituted or continued for purposes of Section 11.2(a) of the Plan, the Options shall be deemed not assumed, substituted or continued and governed by Section 11.2(b) of the Plan.  Notwithstanding the foregoing, if on the date of the Change in Control the Fair Market Value of one Share is less than the Exercise Price per Share, then the Options shall terminate as of the date of the Change in Control except as otherwise determined by the Committee.

 

  

-2-

  

 

(d)           Extension of Post-Termination Exercise Period.  Notwithstanding any provisions of this Section 5 to the contrary, if following termination of service on the Board, the exercise of the Options or, if in conjunction with the exercise of the Options, the sale of the Shares acquired on exercise of the Options during the post-termination of service time period set forth in the paragraph of this Section 5 applicable to the reason for termination of service would, in the determination of the Company, violate any applicable federal or state securities laws, rules, regulations or orders (or any Company policy related thereto, including its securities trading policy), the running of the applicable period to exercise the Options shall be tolled for the number of days during the period that the exercise of the Options or sale of the Shares acquired on exercise would in the Company's determination constitute such a violation; provided, however, that in no event shall the exercisability of the Options be extended beyond the Option Expiration Date.

 

(e)           Forfeiture upon Engaging in Detrimental Activities.  If, at any time within the twelve (12) months after (i) Participant exercises any portion of the Options; or (ii) the effective date of any termination of Participant’s service as a Director of Company for any reason, Participant engages in, or is determined by the Committee in its sole discretion to have engaged in, any (i) material breach of any non-competition, non-solicitation, non-disclosure or settlement or release covenant or agreement with Company or any Subsidiary, or (ii) activities during the course of Participant’s service as a Director with Company or any Subsidiary constituting fraud, embezzlement, theft or dishonesty; or (iii) activity that is otherwise in conflict with, or adverse or detrimental to the interests of Company or any Subsidiary, then (x) the Options shall terminate effective as of the date on which Participant engaged in or engages in that activity or conduct, unless terminated sooner pursuant to the provisions of this Agreement, and (y) the amount of any gain realized by Participant from exercising all or a portion of the Options at any time following the date that Participant engaged in any such activity or conduct, as determined as of the time of exercise, shall be forfeited by Participant and shall be paid by Participant to Company, and recoverable by Company, within sixty (60) days following such termination date of the Options.  For purposes of the foregoing, the following will be deemed to be activities in conflict with or adverse or detrimental to the interests of Company or any Subsidiary:  (i) Participant’s conviction of, or pleading guilty or nolo contendre to any misdemeanor involving moral turpitude or any felony, the underlying events of which related to Participant’s service as a Director of Company; (ii) knowingly engaged or aided in any act or transaction by Company or a Subsidiary that results in the imposition of criminal, civil or administrative penalties against Company or any Subsidiary; or (iii) misconduct during the course of Participant’s service as a Director of Company or any Subsidiary that results in an accounting restatement by Company due to material noncompliance with any financial reporting requirement under applicable securities laws, whether such restatement occurs during or after Participant’s service as a Director of Company or any Subsidiary.

 

(f)           Reservation of Committee Discretion to Accelerate Option Vesting and Extend Option Exercise Window.  The Committee reserves the right, in its sole and absolute discretion, to accelerate the vesting of the Options and to extend the exercise window for Options that have vested (either in accordance with the terms of this Agreement or by discretionary acceleration by the Committee) under circumstances not otherwise covered by the foregoing provisions of this Section 5; provided that in no event may the Committee extend the exercise window for Options beyond the Option Expiration Date.  The Committee is under no obligation to exercise any such discretion and may or may not exercise such discretion on a case-by-case basis.

 

(g)           Reversion of Expired, Cancelled and Forfeited Options to Plan.  Any Options that do not vest or that are cancelled, terminated or expire unexercised are forfeited and revert to the Plan and shall again be available for Awards under the Plan.

 

	
  

	
6.

	
Miscellaneous.

 

(a)           No Rights of Stockholder.  Participant shall not have any of the rights of a stockholder with respect to the Shares subject to this Agreement until such Shares have been issued upon the due exercise of the Options.

 

(b)           Nontransferability of Options.  The Options shall be nontransferable or assignable except to the extent expressly provided in the Plan.  Notwithstanding the foregoing, Participant may by delivering written notice to Company in a form provided by or otherwise satisfactory to Company, designate a third party who, in the event of Participant’s death, shall thereafter be entitled to exercise the Options.  This Agreement is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

 

(c)           Severability.  If any provision of this Agreement shall be held unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction, such provision shall (i) be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid and/or enforceable and as so limited shall remain in full force and effect, and (ii) not affect any other provision of this Agreement or part thereof, each of which shall remain in full force and effect.

 

  

-3-

  

 

(d)           Governing Law, Jurisdiction and Venue.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware other than its conflict of laws principles.  The parties agree that in the event that any suit or proceeding is brought in connection with this Agreement, such suit or proceeding shall be brought in the state or federal courts located in New Castle County, Delaware, and the parties shall submit to the exclusive jurisdiction of such courts and waive any and all jurisdictional, venue and inconvenient forum objections to such courts.

 

(e)           Headings.  The headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

(f)           Notices.  All notices required or permitted under this Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed by registered or certified mail, postage prepaid.  Notice by mail shall be deemed delivered on the date on which it is postmarked.

 

Notices to Company should be addressed to:

 

Autobytel Inc.

18872 MacArthur Blvd., Suite 200

Irvine, CA  92612-1400

Attention:  General Counsel

Notice to Participant should be addressed to Participant at Participant’s address as it appears on Company’s records.

 

Company or Participant may by writing to the other party designate a different address for notices.  If the receiving party consents in advance, notice may be transmitted and received via telecopy or via such other electronic transmission mechanism as may be available to the parties.  Such notices shall be deemed delivered when received.

 

(g)           Agreement Not a Service Contract.  This Agreement is not an employment or service contract, and nothing in this Agreement or in the granting of the Options shall be deemed to create in any way whatsoever any obligation on Participant’s part to continue as a Director or on Company’s part to continue Participant’s service as a Director.

 

(h)           Counterparts.  This Agreement may be executed in multiple counterparts each of which shall be deemed an original Agreement but all of which, taken together, shall constitute one and the same Agreement binding on the parties hereto.  The signature of any party hereto to any counterpart hereof shall be deemed a signature to, and may be appended to, any other counterpart hereof.

 

(i)           Administration.  The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan and this Agreement as are consistent with the Plan and to interpret or revoke any such rules.  All actions taken and all interpretations and determinations made by the Committee (including determinations as to the calculation, satisfaction or achievement of performance-based vesting requirements, if any, to which the Options are subject) shall be final and binding upon Participant, Company and all other interested persons.  No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.

 

(j)           Participant agrees that Company may impose, and Participant agrees to be bound by, Company policies and procedures with respect to the ownership, timing and manner of resales of shares of Company’s securities, including without limitation, (i) restrictions on insider trading; (ii) restrictions designed to delay and/or coordinate the timing and manner of sales by officers, directors and affiliates of Company following a public offering of Company’s securities; (iii) stock ownership or holding requirements applicable to officers and/or directors of Company; and (iv) the required use of a specified brokerage firm for such resales.

 

(k)           Entire Agreement; Modification.  This Agreement and the Plan contain the entire agreement between the parties with respect to the subject matter contained herein and may not be modified except as provided in the Plan or in a written document signed by each of the parties hereto and may be rescinded only by a written agreement signed by both parties.

 

 

Remainder of Page Intentionally Left Blank; Signature Page Follows

 

 

  

-4-

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Grant Date.

 

 

 

	 	 Grant Date:	  [XXXX]                                          
	 	 Total Options Awarded:  	  [XXXX]                                          
	 	 Exercise Price Per Share: 	$[XXXX]                                                               

 

 

 

 

 

	 	“Company”	Autobytel Inc., a Delaware corporation
	 	 	
 

 

By: 

	
 

                                                           

Glenn E. Fuller

Executive Vice President, Chief Legal and Administrative Officer and Secretary

	 	 	 	 
	 	 	 	
 

 

	 	“Participant”	 	
 

                                                            

 [Printed Name of Participant]

 

-5-

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