Document:

Exhibit 4.7

 

PRUDENTIAL PLC DEED OF INDEMNITY

 

NAME:  Alexander Dewar Kerr Johnston

 

Between

 

(1)                                  Prudential plc (registered number 01397169) whose registered office is at Laurence Pountney Hill, London EC4R 0HH (“Prudential”); and

 

(2)                                  Alexander Dewar Kerr Johnston, Laurence Pountney Hill, London, EC4R 0HH (the “Beneficiary”)

 

Background

 

(A)                              The Beneficiary holds, or will from time to time hold, the position of:

 

(i)                                     director, officer, employee, trustee, representative or like position of any member of the Group; or

 

(ii)                                  director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation at the request of any member of the Group (or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group).

 

(B)                                Prudential has agreed to indemnify the Beneficiary and his Dependants against certain personal liabilities and expenses arising out of or in connection with such positions on the terms of this Deed.

 

(C)                                Prudential will not, however, indemnify the Beneficiary and his Dependants if it is contrary to law.

 

Agreement

 

1.                                       Indemnity

 

Subject to the following paragraphs of this Deed, Prudential undertakes to indemnify each Beneficiary Family Member and hold each Beneficiary Family Member harmless against any and all losses, damages, costs, liabilities, demands, charges, penalties, fines, interest or expenses (including without limitation any and all losses, costs, liabilities, charges or expenses properly and reasonably suffered or incurred (including advisory fees) in investigating, responding to, preparing for or disputing any claim, action, demand, proceedings, investigation (whether formal or informal), judgment or award, in each case whether or not successful, compromised or settled, which may be instituted, made, threatened or alleged against or otherwise involve any of the Beneficiary Family Members in any jurisdiction (each a “Claim”) which the Beneficiary Family Members  may suffer or incur in any jurisdiction (“Losses”) and which in any such case arise out of or in connection with the carrying out or performance, whether before (subject to paragraph 17 below) or after the date of this Deed, by the Beneficiary of the Beneficiary’s duties as a director, officer, employee, trustee, representative or like position of any member of the Group or as a director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation where such position is held at the request of any member of the Group or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group.

 

 

2.                                       Indemnity to take effect subject to law and regulation

 

The indemnity contained in paragraph 1 shall not apply to the extent that it would be void by virtue of, or contravenes, the Companies Act 2006 or any other applicable law or regulation (including without limitation listing rules).

 

3.                                       Proceedings for which indemnity cannot be claimed

 

Subject to paragraph 5, the indemnity contained in paragraph 1 shall not extend to any liability incurred by the Beneficiary, (i) to any member of the Group, (ii) to pay a fine imposed in criminal proceedings, (iii) to pay a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising), (iv) in defending any criminal proceedings in which the Beneficiary is convicted, (v) as a result of, or in connection with any act or omission by the Beneficiary which is determined by any relevant court, tribunal or other legal or regulatory authority, or otherwise judicially, determined, to constitute fraud, dishonesty, bad faith, wilful default or criminal act on the part of the Beneficiary, (vi) in defending civil proceedings brought by any member of the Group in which judgment is given against the Beneficiary or (vii) in connection with any application under the Application for Relief Sections in which the Court refuses to grant relief to the Beneficiary.

 

4.                                       Loss of earnings and of other employment benefits

 

The indemnity contained in paragraph 1 shall not apply in respect of any loss of earnings or of any other employment benefit, including but not limited to rights to bonus or other monetary incentives, share options or other share-based incentives or pension or other retirement benefits, which any Beneficiary Family Member may suffer as a result of any period of disqualification imposed by any relevant court, tribunal or other legal or regulatory authority.

 

5.                                       Advances in respect of proceedings

 

Where any Beneficiary Family Member properly and reasonably suffers or incurs losses, costs, liabilities, charges or expenses (including without limitation advisory fees) in investigating, responding to, preparing for or disputing any Claim, the Beneficiary shall be entitled to claim indemnity under paragraph 1 (for himself and/or on behalf of any Beneficiary Family Member) forthwith after the same becomes due and payable by the Beneficiary Family Member, provided that if such Claim:

 

(a)                      relates to a criminal offence in relation to which the Beneficiary is convicted;

 

(b)                     relates to civil proceedings brought by any member of the Group in which judgment is given against the Beneficiary;

 

(c)                      relate to any matters in respect of which any relevant court, tribunal or other legal or regulatory authority determines that any act or omission by the Beneficiary constitutes fraud, dishonesty, bad faith or wilful default on the part of the Beneficiary; or

 

(d)                     relates to any application under the Application for Relief Sections in which the Court refuses to grant the Beneficiary relief,

 

Prudential shall be entitled to refuse to provide indemnification (or, as the case may be, any further indemnification) pursuant to the indemnity contained in paragraph 1 and where Prudential has already paid amounts to the Beneficiary pursuant to the indemnity contained in paragraph 1, such amounts shall be reimbursed to Prudential by the Beneficiary not later than (i) in the event of the Beneficiary being convicted, the date on which such conviction has become final, (ii) in the event of judgment being given against the Beneficiary, the date on which such judgment has become final, (iii) in the event of any relevant court, tribunal or other legal or regulatory authority determining that any act or omission by the Beneficiary constitutes fraud, dishonesty, bad faith or wilful default on the part of the Beneficiary, the

 

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date of such determination or (iv) in the event of the court refusing to grant the Beneficiary relief on the application, the date on which such refusal for relief has become final.

 

6.                                       Termination and survival

 

The provisions of this Deed shall survive:

 

(a)                      the Beneficiary moving to another role within the Group which does not have the benefit of an indemnity equivalent to the indemnity contained in paragraph 1; and

 

(b)                     the termination of any or all appointments of the Beneficiary within the Group, excluding (i) termination by the Beneficiary in fundamental breach of the terms of his appointment with any member of the Group; or (ii) termination by Prudential by reason of the Beneficiary’s fraud or wilful and serious neglect of his duties.  In the event of a dispute relating to this paragraph 6(b), Prudential shall provide indemnification (or, as the case may be, further indemnification) pursuant to the indemnity contained in paragraph 1 until a competent court, tribunal or other legal or regulatory authority, from which there is no right of appeal, determines that any act or omission by the Beneficiary constitutes a fundamental breach of the terms of his appointment with any member of the Group, fraud or wilful and serious neglect by the Beneficiary of his duties.

 

7.                                       Notification of Prudential

 

The Beneficiary shall notify Prudential in writing promptly upon becoming aware of any matter for which indemnity may be sought under paragraph 1, providing to Prudential all such information as the Beneficiary has of the circumstances of the relevant matter, and shall thereafter provide Prudential with all such information as Prudential may reasonably require about developments in relation to such matter. The Beneficiary acknowledges that Prudential may provide such information to its insurers and advisers and to, any other member of the Group and agrees to respond promptly to all reasonable requests from Prudential in relation to any matter relating to the indemnity contained in paragraph 1.

 

8.                                       Conduct of Claims

 

(a)                      The Beneficiary shall, subject to paragraph 8(b), have conduct of the defence and settlement of any Claim, but Prudential shall have the right (but not the obligation) to associate itself with such Claim provided the Beneficiary consents to this. Prudential shall not be required or, without the consent of the Beneficiary (such consent not to be unreasonably withheld or delayed), permitted to assume the conduct of the Claim made against the Beneficiary.

 

(b)                     The Beneficiary shall conduct all Claims diligently and competently using the legal and other representatives mutually acceptable to the Beneficiary and Prudential. The Beneficiary shall keep Prudential reasonably informed of the progress of any Claim and recognises the right of Prudential to provide at its discretion input into the conduct of any Claim. The Beneficiary shall not settle or compromise any Claim without Prudential’s consent (such consent not to be unreasonably withheld or delayed).

 

9.                                       Recovery against other persons

 

If Prudential pays any amount in respect of any Losses and any Beneficiary Family Member is, or subsequently becomes, entitled to recover from any other person any amount in respect of such Losses (including without limitation by way of tax credit, allowance, repayment or relief), then, subject to there being no reasonable prospect of any Beneficiary Family Member being prejudiced and to Prudential agreeing to indemnify the Beneficiary Family Members against all reasonable costs and expenses which might be incurred, Prudential may either:

 

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(a)                      request that the Beneficiary take (or procure that any Dependant take) all reasonable steps to enforce such recovery. If Prudential so elects then the Beneficiary must so act and must procure that all and any amounts recovered, less all reasonable costs, charges and expenses incurred and not recovered by any Beneficiary Family Member in making such recovery, will be applied in promptly repaying to Prudential the amount paid by Prudential in respect of the Losses; or

 

(b)                     exercise its right to be subrogated to the extent of such payment to any or all the  Beneficiary Family Members’ rights of recovery against third parties in respect of the payment. If Prudential so elects then the Beneficiary shall (or. shall procure that the Dependants shall), promptly on request from Prudential, execute all papers reasonably required and shall do everything necessary to enable Prudential to bring, maintain and conclude an action effectively, either in the name of all or any Beneficiary Family Members or in its own name, at Prudential’s discretion.

 

10.                                 Recovery under other indemnities and insurance

 

(a)                      Subject to paragraph 10(c), the Beneficiary agrees to take, and to procure that the Dependants take, all reasonable steps to claim and recover under any other indemnity or insurance policy before he makes a claim under the indemnity contained in paragraph 1. The indemnity contained in paragraph 1 operates only in excess of any right to indemnity or insurance which any Beneficiary Family Member may have (irrespective of any wording to the contrary in any indemnity or insurance policy concerned), and no person other than the Beneficiary shall have the right to pursue any claim against Prudential under the indemnity contained in paragraph 1 (or to seek contribution from Prudential) whether in his own name or that of any Beneficiary Family Member.

 

(b)                     Provided that the Beneficiary complies with paragraph 10(a), Prudential will advance to the Beneficiary the funds necessary to make a payment in respect of any Losses pending receipt by the Beneficiary Family Member of the amounts due under any other indemnity and/or insurance policy in excess of which the indemnity contained in paragraph 1 operates. Any such advance will not operate to extinguish, erode or otherwise limit in any way whatsoever the Beneficiary Family Members’ entitlement under the other indemnity and/or insurance policy and the Beneficiary shall remit (or shall procure that there shall be remitted) to Prudential all and any payments and/or benefits received pursuant thereto subsequent to the date of the advance required to repay the advance.

 

(c)                      The obligation to take all reasonable steps to claim and recover under any other indemnity or insurance policy set out in paragraph 10(a) shall not operate in respect of any policy of executives’ and officers’ liability insurance for which any member of the Group is the named policyholder and which requires that any Beneficiary Family Member be indemnified by a member of the Group prior to any claim being brought under that policy.

 

11.                                 Deductions required to be made by Prudential or a Beneficiary Family Member

 

(a)                      All amounts payable by Prudential to, or on behalf of, any Beneficiary Family Member under this Deed of indemnity will be paid without any deductions unless they are required by law. If any deductions are required by law, Prudential will pay to, or on behalf of, the Beneficiary Family Member an amount which will, after any deduction has been made, result in the Beneficiary Family Member receiving the same amount as the Beneficiary Family Member would have been entitled to receive in the absence of any requirement to make a deduction.

 

(b)                     If any amount payable by Prudential under this Deed of indemnity is subject to tax in the hands of the Beneficiary Family Member in any jurisdiction, the amount payable

 

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will be increased so that the net amount received by the Beneficiary after taking that tax into account is equal to the full amount which would have been received by the Beneficiary Family Member if that tax had not been payable.

 

(c)                      To the extent that any Beneficiary Family Member obtains any tax credit, allowance, repayment or relief as a result of Prudential paying any increased amount under this paragraph 11, the Beneficiary shall repay, or procure that the Dependant repays, to Prudential the amount necessary to reflect the principle that, after tax, the Beneficiary Family Member is to be put in the same position as if the deduction or charge to tax had not been required or incurred in the first place.

 

12.                                 No double recovery

 

Notwithstanding the provisions of this Deed, the Beneficiary shall have the benefit of any indemnity, insurance, agreement, undertaking or commitment entered into with, or on his behalf by, any member of the Group whether before (subject to paragraph 17 below) or after the date of this Deed, provided that he shall not be entitled to recover more than once under this indemnity and any other indemnity, insurance, agreement, undertaking or commitment in respect of any Losses.

 

13.                                 Interpretation

 

In this Deed:

 

(a)                      “Application for Relief Sections” means,

 

when such provisions have come into force:

 

(i)                                     section 661(3) or (4) of the Companies Act 2006 (acquisition of shares by innocent nominee); or

 

(ii)                                  section 1157 of the Companies Act 2006 (general power to grant relief in case of honest and reasonable conduct);

 

(b)                 “Beneficiary Family Members” mean the Beneficiary and the Dependants;

 

(c)                      “Claim” has the meaning ascribed to it in paragraph 1;

 

(d)                     “Companies Act 2006” means the Companies Act 2006 as amended, modified, re enacted or replaced from time to time;

 

(e)                      “Deed” means this deed;

 

(f)                        “Dependant” means:

 

(i)                                     the Beneficiary’s spouse or civil partner;

 

(ii)                                  any other person (whether of a different sex or the same sex) with whom the Beneficiary lives as partner in an enduring family relationship other than the Beneficiary’s grandparent or grandchild, sister, brother, aunt or uncle, or nephew or niece;

 

(iii)                               the Beneficiary’s children or step-children;

 

(iv)                              any children or step-children of a person within paragraph 13(g)(ii) (and who are not children or step-children of the Beneficiary) who live with the Beneficiary and have not attained the age of 18; and

 

(v)                                 the Beneficiary’s parents;

 

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(h)                     “director” shall include without limitation shadow director;

 

(i)                         “Existing Indemnity” means any previous agreement between the Beneficiary and Prudential relating to the subject matter of this Deed, including any indemnity previously given by Prudential to any Beneficiary Family Member in respect of any of the matters covered by this Deed;

 

(j)                         “Group” means Prudential or any subsidiary or holding company of Prudential or any subsidiary of a holding company of Prudential;

 

(k)                      “Losses” have the meaning ascribed to them in paragraph 1;

 

(l)                         “holding company” and “subsidiary” have the meanings ascribed to them in the Companies Act 2006;

 

(m)                   a reference to a “conviction”, “judgment”, “determination” or “refusal of relief” is a reference to one that has become final. For these purposes, a conviction, judgment, determination or refusal of relief becomes final:

 

(i)                                     if not appealed against, at the end of the period for bringing an appeal; or

 

(ii)                                  if appealed against, at the time when the appeal (or any further appeal) is disposed of.

 

An appeal is disposed of:

 

(iii)                               if it is determined and the period for bringing any further appeal has ended; or

 

(iv)                              if it is abandoned or otherwise ceases to have effect; and

 

(n)                     any reference to the masculine shall as appropriate be a reference to the feminine.

 

14.                                 Claims and enforcement

 

(a)                      Prudential shall be entitled to take steps in relation to the provisions of this Deed.  In taking any such step, Prudential may act for itself and/or on behalf of any of all other members of the Group.

 

(b)                     The Beneficiary and his personal representatives and estate shall be entitled to make a claim, and take any other steps, in relation to the provisions of this Deed. In taking any such step, the Beneficiary may act for himself and/or on behalf of any or all of the Dependants.

 

(c)                      Subject to paragraphs 14(a) and (b), any person other than Prudential and the Beneficiary may not enforce any of the provisions of this Deed under the Contracts (Rights of Third Parties) Act 1999.

 

15.                                 Miscellaneous

 

(a)                      The Beneficiary may not assign or otherwise transfer any rights or obligations set out in this Deed.

 

(b)                     Any failure by Prudential or the Beneficiary to exercise any right, power or privilege available under this Deed is not a waiver for the purposes of this Deed nor will any single or partial exercise thereof preclude any further exercise of any right, power or privilege.

 

(c)                      The provisions of this Deed may only be amended in writing signed by or on behalf of Prudential and the Beneficiary.

 

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(d)                     If any provision of this Deed is held to be illegal, invalid or unenforceable in whole or in part, the remaining provisions shall continue to be valid.

 

(e)                      Prudential and the Beneficiary acknowledge that any contract, agreement, commitment or undertaking in respect of the Beneficiary’s role as a director, officer, employee, trustee or representative of Prudential incorporates, and accordingly is made on and subject to, the provisions of the Memorandum and Articles of Association of Prudential.

 

16.                                 Employment terms and conditions

 

If the Beneficiary is also an employee of any member of the Group, the Beneficiary acknowledges that this Deed shall be deemed to be incorporated into the employment contract between the Beneficiary and the relevant member of the Group as supplementary terms thereto.

 

17.                                 Effective date

 

The indemnity contained in paragraph 1 shall apply in respect of any Claims or losses made or incurred on or after the date of commencement of the Beneficiary’s position as director, officer, employee, trustee, representative or like position of any member of the Group, or as director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation at the request of any member of the Group (or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group).

 

18.                                 Governing law

 

The provisions set out in this Deed are governed by and must be interpreted in accordance with English law.

 

19.                                 Arbitration

 

(a)                      Any dispute, controversy or claim arising out of or in connection with this Deed shall be referred to and finally resolved by arbitration under the Rules or Arbitration of the International Chamber of Commerce (“ICC Rules”) by three arbitrators appointed in accordance with the ICC Rules.

 

(b)                     The seat of the arbitration shall be London and the language of the arbitration (in which each member of the tribunal shall be fluent) shall be English.

 

This document  has been executed as a deed and is to be treated as delivered on the later of (a) being executed and dated by Prudential and (b) being signed and dated by the Beneficiary.

 

 

	
Executed and delivered as a deed
    	
)
    
	
by affixing the common seal of
    	
)
    
	
Prudential plc in the presence of:
    	
)
    

 

	
Harvey McGrath
    	
 
    
	
 
    	
 
    
	
/S/ Harvey McGrath
    	
 
    
	
 
    	
 
    
	
Authorised signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date: 
    	
30/12/11
    	
 
    
			

 

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Acknowledged and agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed and   delivered as a deed
    	
)
    	
 
    	
 
    
	
By Alexander Dewar   Kerr Johnston
    	
)
    	
/S/ ADK   Johnston
    	
(Signature)
    
	
in the presence   of:
    	
)
    	
 
    	
 
    
	
 
    	
12/01/12
    	
(Date)
    

 

 

	
Witness signature:
    	
/S/   Angela Rowe
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness name:
    	
ANGELA ROWE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness address:
    	
12 ARTHUR STREET
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LONDON   EC4R   9AQ
    	
 
    

 

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PRUDENTIAL PLC DEED OF INDEMNITY

 

NAME:  Kaikhushru Shiavax Nargolwala

 

Between

 

(1)                                 Prudential plc (registered number 01397169) whose registered office is at Laurence Pountney Hill, London EC4R 0HH (“Prudential”); and

 

(2)                                 Kaikhushru Shiavax Nargolwala, Laurence Pountney Hill, London, EC4R 0HH (the “Beneficiary”)

 

Background

 

(A)                               The Beneficiary holds, or will from time to time hold, the position of:

 

(i)                                     director, officer, employee, trustee, representative or like position of any member of the Group; or

 

(ii)                                  director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation at the request of any member of the Group (or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group).

 

(B)                               Prudential has agreed to indemnify the Beneficiary and his Dependants against certain personal liabilities and expenses arising out of or in connection with such positions on the terms of this Deed.

 

(C)                               Prudential will not, however, indemnify the Beneficiary and his Dependants if it is contrary to law.

 

Agreement

 

1.                                      Indemnity

 

Subject to the following paragraphs of this Deed, Prudential undertakes to indemnify each Beneficiary Family Member and hold each Beneficiary Family Member harmless against any and all losses, damages, costs, liabilities, demands, charges, penalties, fines, interest or expenses (including without limitation any and all losses, costs, liabilities, charges or expenses properly and reasonably suffered or incurred (including advisory fees) in investigating, responding to, preparing for or disputing any claim, action, demand, proceedings, investigation (whether formal or informal), judgment or award, in each case whether or not successful, compromised or settled, which may be instituted, made, threatened or alleged against or otherwise involve any of the Beneficiary Family Members in any jurisdiction (each a “Claim”) which the Beneficiary Family Members may suffer or incur in any jurisdiction (“Losses”) and which in any such case arise out of or in connection with the carrying out or performance, whether before (subject to paragraph 17 below) or after the date of this Deed, by the Beneficiary of the Beneficiary’s duties as a director, officer, employee, trustee, representative or like position of any member of the Group or as a director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation where such position is held at the request of any member of the Group or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group.

 

 

2.                                      Indemnity to take effect subject to law and regulation

 

The indemnity contained in paragraph 1 shall not apply to the extent that it would be void by virtue of, or contravenes, the Companies Act 2006 or any other applicable law or regulation (including without limitation listing rules).

 

3.                                      Proceedings for which indemnity cannot be claimed

 

Subject to paragraph 5, the indemnity contained in paragraph 1 shall not extend to any liability incurred by the Beneficiary, (i) to any member of the Group, (ii) to pay a fine imposed in criminal proceedings, (iii) to pay a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising), (iv) in defending any criminal proceedings in which the Beneficiary is convicted, (v) as a result of, or in connection with any act or omission by the Beneficiary which is determined by any relevant court, tribunal or other legal or regulatory authority, or otherwise judicially, determined, to constitute fraud, dishonesty, bad faith, wilful default or criminal act on the part of the Beneficiary, (vi) in defending civil proceedings brought by any member of the Group in which judgment is given against the Beneficiary or (vii) in connection with any application under the Application for Relief Sections in which the Court refuses to grant relief to the Beneficiary.

 

4.                                      Loss of earnings and of other employment benefits

 

The indemnity contained in paragraph 1 shall not apply in respect of any loss of earnings or of any other employment benefit, including but not limited to rights to bonus or other monetary incentives, share options or other share-based incentives or pension or other retirement benefits, which any Beneficiary Family Member may suffer as a result of any period of disqualification imposed by any relevant court, tribunal or other legal or regulatory authority.

 

5.                                      Advances in respect of proceedings

 

Where any Beneficiary Family Member properly and reasonably suffers or incurs losses, costs, liabilities, charges or expenses (including without limitation advisory fees) in investigating, responding to, preparing for or disputing any Claim, the Beneficiary shall be entitled to claim indemnity under paragraph 1 (for himself and/or on behalf of any Beneficiary Family Member) forthwith after the same becomes due and payable by the Beneficiary Family Member, provided that if such Claim:

 

(a)                     relates to a criminal offence in relation to which the Beneficiary is convicted;

 

(b)                     relates to civil proceedings brought by any member of the Group in which judgment is given against the Beneficiary;

 

(c)                      relate to any matters in respect of which any relevant court, tribunal or other legal or regulatory authority determines that any act or omission by the Beneficiary constitutes fraud, dishonesty, bad faith or wilful default on the part of the Beneficiary; or

 

(d)                     relates to any application under the Application for Relief Sections in which the Court refuses to grant the Beneficiary relief,

 

Prudential shall be entitled to refuse to provide indemnification (or, as the case may be, any further indemnification) pursuant to the indemnity contained in paragraph 1 and where Prudential has already paid amounts to the Beneficiary pursuant to the indemnity contained in paragraph 1, such amounts shall be reimbursed to Prudential by the Beneficiary not later than (i) in the event of the Beneficiary being convicted, the date on which such conviction has become final, (ii) in the event of judgment being given against the Beneficiary, the date on which such judgment has become final, (iii) in the event of any relevant court, tribunal or other legal or regulatory authority determining that any act or omission by the Beneficiary constitutes fraud, dishonesty, bad faith or wilful default on the part of the Beneficiary, the

 

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date of such determination or (iv) in the event of the court refusing to grant the Beneficiary relief on the application, the date on which such refusal for relief has become final.

 

6.                                      Termination and survival

 

The provisions of this Deed shall survive:

 

(a)                     the Beneficiary moving to another role within the Group which does not have the benefit of an indemnity equivalent to the indemnity contained in paragraph 1; and

 

(b)                     the termination of any or all appointments of the Beneficiary within the Group, excluding (i) termination by the Beneficiary in fundamental breach of the terms of his appointment with any member of the Group; or (ii) termination by Prudential by reason of the Beneficiary’s fraud or wilful and serious neglect of his duties.  In the event of a dispute relating to this paragraph 6(b), Prudential shall provide indemnification (or, as the case may be, further indemnification) pursuant to the indemnity contained in paragraph 1 until a competent court, tribunal or other legal or regulatory authority, from which there is no right of appeal, determines that any act or omission by the Beneficiary constitutes a fundamental breach of the terms of his appointment with any member of the Group, fraud or wilful and serious neglect by the Beneficiary of his duties.

 

7.                                      Notification of Prudential

 

The Beneficiary shall notify Prudential in writing promptly upon becoming aware of any matter for which indemnity may be sought under paragraph 1, providing to Prudential all such information as the Beneficiary has of the circumstances of the relevant matter, and shall thereafter provide Prudential with all such information as Prudential may reasonably require about developments in relation to such matter. The Beneficiary acknowledges that Prudential may provide such information to its insurers and advisers and to, any other member of the Group and agrees to respond promptly to all reasonable requests from Prudential in relation to any matter relating to the indemnity contained in paragraph 1.

 

8.                                      Conduct of Claims

 

(a)                     The Beneficiary shall, subject to paragraph 8(b), have conduct of the defence and settlement of any Claim, but Prudential shall have the right (but not the obligation) to associate itself with such Claim provided the Beneficiary consents to this. Prudential shall not be required or, without the consent of the Beneficiary (such consent not to be unreasonably withheld or delayed), permitted to assume the conduct of the Claim made against the Beneficiary.

 

(b)                     The Beneficiary shall conduct all Claims diligently and competently using the legal and other representatives mutually acceptable to the Beneficiary and Prudential. The Beneficiary shall keep Prudential reasonably informed of the progress of any Claim and recognises the right of Prudential to provide at its discretion input into the conduct of any Claim. The Beneficiary shall not settle or compromise any Claim without Prudential’s consent (such consent not to be unreasonably withheld or delayed).

 

9.                                      Recovery against other persons

 

If Prudential pays any amount in respect of any Losses and any Beneficiary Family Member is, or subsequently becomes, entitled to recover from any other person any amount in respect of such Losses (including without limitation by way of tax credit, allowance, repayment or relief), then, subject to there being no reasonable prospect of any Beneficiary Family Member being prejudiced and to Prudential agreeing to indemnify the Beneficiary Family Members against all reasonable costs and expenses which might be incurred, Prudential may either:

 

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(a)                     request that the Beneficiary take (or procure that any Dependant take) all reasonable steps to enforce such recovery. If Prudential so elects then the Beneficiary must so act and must procure that all and any amounts recovered, less all reasonable costs, charges and expenses incurred and not recovered by any Beneficiary Family Member in making such recovery, will be applied in promptly repaying to Prudential the amount paid by Prudential in respect of the Losses; or

 

(b)                     exercise its right to be subrogated to the extent of such payment to any or all the Beneficiary Family Members’ rights of recovery against third parties in respect of the payment. If Prudential so elects then the Beneficiary shall (or. shall procure that the Dependants shall), promptly on request from Prudential, execute all papers reasonably required and shall do everything necessary to enable Prudential to bring, maintain and conclude an action effectively, either in the name of all or any Beneficiary Family Members or in its own name, at Prudential’s discretion.

 

10.                               Recovery under other indemnities and insurance

 

(a)                     Subject to paragraph 10(c), the Beneficiary agrees to take, and to procure that the Dependants take, all reasonable steps to claim and recover under any other indemnity or insurance policy before he makes a claim under the indemnity contained in paragraph 1. The indemnity contained in paragraph 1 operates only in excess of any right to indemnity or insurance which any Beneficiary Family Member may have (irrespective of any wording to the contrary in any indemnity or insurance policy concerned), and no person other than the Beneficiary shall have the right to pursue any claim against Prudential under the indemnity contained in paragraph 1 (or to seek contribution from Prudential) whether in his own name or that of any Beneficiary Family Member.

 

(b)                     Provided that the Beneficiary complies with paragraph 10(a), Prudential will advance to the Beneficiary the funds necessary to make a payment in respect of any Losses pending receipt by the Beneficiary Family Member of the amounts due under any other indemnity and/or insurance policy in excess of which the indemnity contained in paragraph 1 operates. Any such advance will not operate to extinguish, erode or otherwise limit in any way whatsoever the Beneficiary Family Members’ entitlement under the other indemnity and/or insurance policy and the Beneficiary shall remit (or shall procure that there shall be remitted) to Prudential all and any payments and/or benefits received pursuant thereto subsequent to the date of the advance required to repay the advance.

 

(c)                      The obligation to take all reasonable steps to claim and recover under any other indemnity or insurance policy set out in paragraph 10(a) shall not operate in respect of any policy of executives’ and officers’ liability insurance for which any member of the Group is the named policyholder and which requires that any Beneficiary Family Member be indemnified by a member of the Group prior to any claim being brought under that policy.

 

11.                               Deductions required to be made by Prudential or a Beneficiary Family Member

 

(a)                     All amounts payable by Prudential to, or on behalf of, any Beneficiary Family Member under this Deed of indemnity will be paid without any deductions unless they are required by law. If any deductions are required by law, Prudential will pay to, or on behalf of, the Beneficiary Family Member an amount which will, after any deduction has been made, result in the Beneficiary Family Member receiving the same amount as the Beneficiary Family Member would have been entitled to receive in the absence of any requirement to make a deduction.

 

(b)                     If any amount payable by Prudential under this Deed of indemnity is subject to tax in the hands of the Beneficiary Family Member in any jurisdiction, the amount payable

 

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will be increased so that the net amount received by the Beneficiary after taking that tax into account is equal to the full amount which would have been received by the Beneficiary Family Member if that tax had not been payable.

 

(c)                      To the extent that any Beneficiary Family Member obtains any tax credit, allowance, repayment or relief as a result of Prudential paying any increased amount under this paragraph 11, the Beneficiary shall repay, or procure that the Dependant repays, to Prudential the amount necessary to reflect the principle that, after tax, the Beneficiary Family Member is to be put in the same position as if the deduction or charge to tax had not been required or incurred in the first place.

 

12.                               No double recovery

 

Notwithstanding the provisions of this Deed, the Beneficiary shall have the benefit of any indemnity, insurance, agreement, undertaking or commitment entered into with, or on his behalf by, any member of the Group whether before (subject to paragraph 17 below) or after the date of this Deed, provided that he shall not be entitled to recover more than once under this indemnity and any other indemnity, insurance, agreement, undertaking or commitment in respect of any Losses.

 

13.                               Interpretation

 

In this Deed:

 

(a)                     “Application for Relief Sections” means,

 

when such provisions have come into force:

 

(i)                                     section 661(3) or (4) of the Companies Act 2006 (acquisition of shares by innocent nominee); or

 

(ii)                                  section 1157 of the Companies Act 2006 (general power to grant relief in case of honest and reasonable conduct);

 

(b)                     “Beneficiary Family Members” mean the Beneficiary and the Dependants;

 

(c)                      “Claim” has the meaning ascribed to it in paragraph 1;

 

(d)                     “Companies Act 2006” means the Companies Act 2006 as amended, modified, re enacted or replaced from time to time;

 

(e)                      “Deed” means this deed;

 

(f)                       “Dependant” means:

 

(i)                                     the Beneficiary’s spouse or civil partner;

 

(ii)                                  any other person (whether of a different sex or the same sex) with whom the Beneficiary lives as partner in an enduring family relationship other than the Beneficiary’s grandparent or grandchild, sister, brother, aunt or uncle, or nephew or niece;

 

(iii)                               the Beneficiary’s children or step-children;

 

(iv)                              any children or step-children of a person within paragraph 13(g)(ii) (and who are not children or step-children of the Beneficiary) who live with the Beneficiary and have not attained the age of 18; and

 

(v)                                 the Beneficiary’s parents;

 

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(h)                     “director” shall include without limitation shadow director;

 

(i)                         “Existing Indemnity” means any previous agreement between the Beneficiary and Prudential relating to the subject matter of this Deed, including any indemnity previously given by Prudential to any Beneficiary Family Member in respect of any of the matters covered by this Deed;

 

(j)                        “Group” means Prudential or any subsidiary or holding company of Prudential or any subsidiary of a holding company of Prudential;

 

(k)                     “Losses” have the meaning ascribed to them in paragraph 1;

 

(l)                         “holding company” and “subsidiary” have the meanings ascribed to them in the Companies Act 2006;

 

(m)                 a reference to a “conviction”, “judgment”, “determination” or “refusal of relief” is a reference to one that has become final. For these purposes, a conviction, judgment, determination or refusal of relief becomes final:

 

(i)                                     if not appealed against, at the end of the period for bringing an appeal; or

 

(ii)                                  if appealed against, at the time when the appeal (or any further appeal) is disposed of.

 

An appeal is disposed of:

 

(iii)                               if it is determined and the period for bringing any further appeal has ended; or

 

(iv)                              if it is abandoned or otherwise ceases to have effect; and

 

(n)                     any reference to the masculine shall as appropriate be a reference to the feminine.

 

14.                               Claims and enforcement

 

(a)                     Prudential shall be entitled to take steps in relation to the provisions of this Deed.  In taking any such step, Prudential may act for itself and/or on behalf of any of all other members of the Group.

 

(b)                     The Beneficiary and his personal representatives and estate shall be entitled to make a claim, and take any other steps, in relation to the provisions of this Deed. In taking any such step, the Beneficiary may act for himself and/or on behalf of any or all of the Dependants.

 

(c)                      Subject to paragraphs 14(a) and (b), any person other than Prudential and the Beneficiary may not enforce any of the provisions of this Deed under the Contracts (Rights of Third Parties) Act 1999.

 

15.                               Miscellaneous

 

(a)                     The Beneficiary may not assign or otherwise transfer any rights or obligations set out in this Deed.

 

(b)                     Any failure by Prudential or the Beneficiary to exercise any right, power or privilege available under this Deed is not a waiver for the purposes of this Deed nor will any single or partial exercise thereof preclude any further exercise of any right, power or privilege.

 

(c)                      The provisions of this Deed may only be amended in writing signed by or on behalf of Prudential and the Beneficiary.

 

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(d)                     If any provision of this Deed is held to be illegal, invalid or unenforceable in whole or in part, the remaining provisions shall continue to be valid.

 

(e)                      Prudential and the Beneficiary acknowledge that any contract, agreement, commitment or undertaking in respect of the Beneficiary’s role as a director, officer, employee, trustee or representative of Prudential incorporates, and accordingly is made on and subject to, the provisions of the Memorandum and Articles of Association of Prudential.

 

16.                               Employment terms and conditions

 

If the Beneficiary is also an employee of any member of the Group, the Beneficiary acknowledges that this Deed shall be deemed to be incorporated into the employment contract between the Beneficiary and the relevant member of the Group as supplementary terms thereto.

 

17.                               Effective date

 

The indemnity contained in paragraph 1 shall apply in respect of any Claims or losses made or incurred on or after the date of commencement of the Beneficiary’s position as director, officer, employee, trustee, representative or like position of any member of the Group, or as director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation at the request of any member of the Group (or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group).

 

18.                               Governing law

 

The provisions set out in this Deed are governed by and must be interpreted in accordance with English law.

 

19.                               Arbitration

 

(a)                     Any dispute, controversy or claim arising out of or in connection with this Deed shall be referred to and finally resolved by arbitration under the Rules or Arbitration of the International Chamber of Commerce (“ICC Rules”) by three arbitrators appointed in accordance with the ICC Rules.

 

(b)                     The seat of the arbitration shall be London and the language of the arbitration (in which each member of the tribunal shall be fluent) shall be English.

 

This document  has been executed as a deed and is to be treated as delivered on the later of (a) being executed and dated by Prudential and (b) being signed and dated by the Beneficiary.

 

 

	
Executed and   delivered as a deed
    	
)
    
	
by affixing the   common seal of
    	
)
    
	
Prudential plc in the presence of:
    	
)
    

 

	
Harvey McGrath
    	
 
    
	
 
    	
 
    
	
/S/ Harvey   Andrew McGrath
    	
 
    
	
 
    	
 
    
	
Authorised   signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
30.12.11
    	
 
    
			

 

7

 

	
Acknowledged and   agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed and   delivered as a deed
    	
)
    	
 
    	
 
    
	
By Kaikhushru Shiavax   Nargolwala
    	
)
    	
/S/ Kai   Nargolwala
    	
(Signature)
    
	
in the presence   of:
    	
)
    	
 
    	
 
    
	
 
    	
24   February 2012
    	
(Date)
    

 

 

	
Witness signature:
    	
/S/ Sylvia   Edwards
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness name:
    	
Sylvia   Edwards
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness address:
    	
c/o 12   Arthur Street
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
London EC4R   9AQ
    	
 
    

 

8Exhibit 10.20

 

EXECUTION COPY

 

COMMERCIAL INDUSTRIAL FINANCE CORP.

 

NON-DISCLOSURE, NON-COMPETITION, NON-HIRING, NON-SOLICITATION

AND SEVERANCE AGREEMENT

 

This NON-DISCLOSURE, NON-COMPETITION, NON-HIRING, NON-SOLICITATION AND SEVERANCE AGREEMENT (this “Agreement”) is made and entered into as of June 14, 2006 between Commercial Industrial Finance Corp., (together with its Affiliates, as defined below, the “Company”) and Stephen Vaccaro (the “Employee”):

 

RECITALS

 

WHEREAS, the Company desires to employ the Employee, and the Employee desires to perform services for the Company in a position which will allow the Employee access to various trade secrets and confidential information belonging to the Company and which will require the Employee to perform services of a unique and special nature;

 

WHEREAS, the Company desires to receive from the Employee covenants: (a) not to compete with the Business (as defined below); (b) not to disclose any Confidential Information (as defined below) acquired during the course of employment with the Company; (c) not to hire or attempt to hire any employee or consultant of the Company; (d) not to solicit any employee or consultant of the Company to terminate his or her employment or consultant status, as applicable, with the Company; and (e) not to solicit any customer or supplier of the Company to terminate its relationship with the Company; and

 

WHEREAS, in consideration for such covenants the Company desires to provide the Employee with certain severance payments subject to the conditions set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the Company continuing to employ the Employee and of the mutual promises herein contained, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows:

 

1.             Definitions. The following definitions apply for the purposes of this Agreement:

 

(a)           Affiliate.  “Affiliate” means, with respect to any specified entity, any person or entity that directly or through one or more intermediaries controls or is controlled by or is under common control with the specified entity.  For purposes of this Agreement an “Affiliate” of Commercial Industrial Finance Corp. shall include any entity acquired or formed directly or indirectly or invested in by Commercial Industrial Finance Corp. or its subsidiaries.

 

(b)           Base  Salary.  “Base Salary” means the annual base salary the Company pays the Employee as wages.  Base Salary shall not include any bonuses, commissions or

 

 

overtime pay, but shall include any amount that the Company contributes to an employee benefit plan on behalf of the Employee pursuant to a salary reduction agreement and that is not includable in the gross income of the Employee under Sections 125, 132(f)(4), 402(g) or 457 of the Code or is not paid currently due to the Employee’s election to defer the receipt thereof under an employee benefit plan of the Company.

 

(c)           Board.  “Board” means the Board of Directors of the Company.

 

(d)           Business.  “Business” means the business of acting, pursuant to direct customer relationships, as a non-competitive wholesale “co-lender” and provider of other credit-related services to banks, finance companies or other lending institutions (“Loan Originators”) in respect of Middle Market Commercial Loans (as hereinafter defined), where “co-lending” entails providing additional liquidity or advice to Loan Originators in connection with the origination of such loans or the rebalancing of the Loan Originators’ asset portfolios, whether through assignment, the purchase of participations, the establishment of credit lines, pooling into securitizable portfolios, the facilitation of syndication or otherwise.  “Business” specifically excludes the occasional purchase of individual assets from Loan Originators.   As used herein, “Middle Market Commercial Loans” means middle market loans under loan facilities that are not of sufficient size, based on market standards in effect as of the date hereof, to be broadly syndicated and actively traded in the U.S. domestic credit markets

 

(e)           Cause. “Cause” means (i) the Employee shall have been indicted for any felony or criminally charged with (or indicted for, if applicable) a crime, in each case, that involves dishonesty or moral turpitude, (ii) the Employee shall have breached in any material respect this Agreement and, in the case of any such breach which is capable of being cured, such breach shall not have been cured within 30 days after receipt of written notice from the Company detailing such breach or (iii) the Employee disregards or refuses to perform his or her duties to the Company and such disregard or refusal to perform continues for a period of 30 days after receipt of written notice from the Company regarding such disregard or refusal to perform (other than due to Disability or temporary disability which, in the reasonable judgment of the Board, causes the Employee to be incapable of devoting such time and energy).

 

(f)            Client. “Client” means at any particular time, any Person who is at such time a client of the Company, including loan originators, CLOs or other investment vehicles for which the Company has served as manager, and investors in such CLOs or other investment vehicles, and (i) any Persons which are known to the Employee to be Affiliates of such Client or (ii) any Persons who are members of the immediate family of such Client or any of its Affiliates.

 

(g)           CLO.  “CLO” shall mean any collateralized loan obligation fund.

 

(h)           Code.  “Code” means the Internal Revenue Code of 1986, as amended.

 

(i)            Confidential  Information.  “Confidential Information” means any and all knowledge, information, data, methods or plans (other than Trade Secrets) which are now

 

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or at any time in the future developed, used or employed by the Company which are treated as confidential by the Company and not generally known to the public, and which relate to the business or financial affairs of the Company, including but not limited to financial statements and information, marketing strategies, business development plans, product or process enhancement plans, and any compensation arrangements with the Company including salary, bonus, options or restricted stock granted and severance arrangements.

 

(j)            Disability.  “Disability” means a permanent disability within the meaning of Section 22(e)(3) of the Code.

 

(k)           ERISA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended at any relevant time.

 

(l)            Involuntary  Termination.  “Involuntary Termination” means the (i) termination by the Company of the Employee’s employment, other than by reason of Cause or (ii) termination of the Employee’s employment with the Company as a result of the Employee’s death or Disability.

 

(m)          Person. “Person” means any individual, partnership (limited or general), corporation, limited liability company, limited liability partnership, association, trust, joint venture, unincorporated organization or any similar entity.

 

(n)           Potential Client.  “Potential Client” shall mean, at any particular time, any Person to whom the Company, through any of their officers, employees, agents or consultants (or persons acting in any similar capacity), has, within two years prior to such time, offered (by means of a personal meeting, telephone call, email, letter or other written proposal specifically directed to the particular Person) to provide services, but who is not at such time a Client of the Company.

 

(o)           Proprietary Information.  “Proprietary Information” means collectively the Confidential Information and Trade Secrets; provided, however, that Proprietary Information does not include any information that (A) is already known to the Employee at the time it is disclosed to the Employee by the Company; or (B) before being divulged by the Employee (1) has become generally known to the public through no wrongful act by the Employee or (2) has been approved for release to the general public by a written authorization of the Company.

 

(p)           Trade  Secrets.  “Trade Secret” means information, including but not limited to, technical and nontechnical data, formulas, patterns, designs, compilations, computer programs and software, devices, inventions, methods, techniques, drawings, processes, financial plans, product plans, and lists of actual or potential customers, suppliers, research, development, existing and future products and services and employees of the Company, which (A) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (B) is the subject of the Company’s efforts to maintain secrecy.

 

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(q)           Treasury Regulations.  “Treasury Regulations” means the Treasury regulations, including temporary regulations, promulgated under the Code.

 

2.             Acknowledgements.  The Company is engaged in the Business.   The Employee acknowledges that the services rendered to the Company by the Employee have been or will be of a special and unusual character which have a unique value to the Company and that the Employee has had or will have access to Proprietary Information belonging to the Company, the loss of which cannot adequately be compensated by damages in an action at law.  The Employee further acknowledges that the Business is highly specialized, the identity and particular needs of the Company’s Clients and Potential Clients may not generally be known, and the documents and information regarding the Company’s Clients and Potential Clients, services, methods of operation, investments, negotiations, and management are highly confidential and constitute trade secrets.

 

3.             Non-Competition Covenant.  Unless otherwise consented to in writing by the Company, the Employee agrees that during the term of the Employee’s employment by the Company and for a period of one year after the Employee’s termination with the Company for any reason whatsoever, the Employee will not, without the prior express written approval of the Board, directly or indirectly, accept any employment or engage in any business, trade or other enterprise substantially similar to, or directly or indirectly in competition with, the Business of the Company, or permit his or her name, reputation or affiliations to be used in connection with any such Business.

 

4.             Confidentiality.

 

(a)           Ownership and Use of Proprietary Information.  All Proprietary Information and all materials containing it, received or developed by the Employee during the term of his or her employment by the Company are confidential to the Company, and will remain the Company’s property exclusively.  The Employee will assign, and hereby does assign, any right, title or interest the Employee may have in all Proprietary Information to the Company, and will take all reasonable actions requested by the Company to perfect the Company’s right, title and interest in such Proprietary Information.  Except as the Employee determines in good faith is advisable or necessary to perform the Employee’s duties for the Company, the Employee will hold all Proprietary Information in strict confidence, and will not use, reproduce, disclose or otherwise distribute Proprietary Information, or any materials containing it, and will take those actions reasonably necessary to protect any Proprietary Information.

 

(b)           Requirement to Disclose.  In the event the Employee is required by any court or legislative or administrative body (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigation demand or similar process) to disclose any Proprietary Information, the Employee shall provide the Company with prompt notice of such requirement in order to afford the Company an opportunity to seek an appropriate protective order.  However, if the Company is unable to obtain or does not seek such protective order and the Employee is, in the opinion of his or her counsel, compelled to disclose such Proprietary Information under pain of liability for contempt or other censure or penalty, disclosure of such information may be made without liability.

 

4

 

5.             Non-Solicitation and Non-Hiring.  During the term of the Employee’s employment with the Company and for a period of one year after the Employee’s termination with the Company for any reason whatsoever, the Employee shall not, either on his or her own account or for any other Person, (a) solicit for employment, employ or attempt to employ any employee of the Company or any person who was employed by the Company at any time within one year prior to the time of the act of solicitation, hiring, or attempted hiring, or assist in such solicitation, hiring or attempted hiring by any Person,  (b) in any way cause, influence, induce, encourage or attempt to persuade any employee of the Company or any person who was employed by the Company at any time within one year prior to the time of such act to terminate his employment relationship with the Company or any other Person or (c) in any way, cause, influence, induce, encourage or attempt to persuade any Client, Potential Client, or any person who was a Client at any time within one year prior to the time of such act to terminate or diminish its relationship or violate any agreement with any of them.

 

6.             Remedies.  In addition to other legal or equitable remedies available to it (including but not limited to damages, royalties and penalties pursuant to applicable law), the Company shall be entitled without the posting of a bond to the remedies of injunction and/or specific performance, if available, to prevent a breach or contemplated breach by the Employee of any provision of this Agreement. All of the Company’s remedies for breach of this Agreement shall be cumulative and the pursuit of one remedy shall not be deemed to exclude any other remedies.

 

7.             Severance Payments. In the event of an Involuntary Termination, and after the timely signing by the Employee or his estate of a release of all claims against the Company and its Affiliates that is in form and substance satisfactory to the Company, the Company shall provide to the Employee or his estate a severance benefit (subject to applicable withholding requirements) equal to:

 

(a)           an aggregate amount, payable in twelve (12) equal monthly installments, subject to applicable withholdings, equal to the sum of (i) an amount equal to twelve (12) months’ Base Salary (at such Employee’s then effective Base Salary) plus (ii) an amount equal to the average bonus paid to the Employee for the three year period prior to date of such Involuntary Termination; and

 

(b)           all of the Employee’s accrued but unpaid vacation, sick and personal days to the extent that Company policy provides for payment of such accrued but unpaid amounts.

 

provided, however, that in the event of a breach by the Employee of any provision of Section 3, 4, or 5 hereof that, in the case of any such breach that is capable of being cured, is not cured within 30 days after receipt of written notice from the Company, the Employee or his estate, as applicable, shall have no right to receive any form of compensation, remuneration, payment under any note issued by the Company in respect of any equity repurchase, severance or other benefit hereunder, except that the Employee or his estate shall be entitled (subject to applicable withholding requirements) to receive any unpaid Base Salary earned up through the date of the Employee’s termination of employment, subject to applicable withholdings, and all accrued but unpaid vacation, sick and personal days to the extent that the Company’s policy provides for payment of such accrued and unpaid amounts; and provided, further, however, that in the event the Employee obtains alternative employment while receiving severance payments hereunder,

 

5

 

the Employee will promptly notify the Company of such alternative employment and the Company will have no further obligation to pay, and the Employee will have no further right to receive, any severance payments hereunder from and after the date the Employee commenced such alternative employment.

 

8.             Voluntary Termination and Termination for Cause. In the event of (i) a termination of the Employee’s employment by the Employee (other than by reason of the death or Disability of the Employee) or (ii) a termination of the Employee’s employment by the Company for Cause, the Company shall provide to the Employee:

 

(a)           the Employee’s Base Salary which the Employee earned up until the date of his termination, subject to applicable withholdings; and

 

(b)           all of the Employee’s accrued but unpaid vacation, sick and personal days to the extent that the Company’s policy provides for payment of such accrued but unpaid amounts.

 

9.             Unfunded  Plan.  No Employee nor any other person shall, by reason of this Agreement, acquire any right in or title to any assets, funds or property of the Company.  The Company shall not be required to set aside any specific funds, assets or property in anticipation of any liability under this Agreement.  The Employee shall have only a contractual right to any benefits, if any, payable under this Agreement, unsecured by the assets of the Company.  Nothing contained in this Agreement shall constitute a guaranty that the assets of such Company shall be sufficient to pay any benefits to any person.

 

10.          No  Separate  Rights.  The execution or any amendment of this Agreement or any payment thereunder does not give any person a non-statutory legal or equitable right against the Company or any of the Company’s officers, agents, or other persons employed by the Company.  This Agreement does not modify the terms of the Employee’s employment, confer upon the Employee a right to continue in the employment of the Company or affect any right of the Company to terminate the employment of such Employee at any time for any reason.

 

11.          Reasonableness of Restrictions.  The Employee has carefully read and considered the provisions hereof and, having done so, agrees that the restrictions set forth in Paragraphs 3, 4 and 5 hereof (including, but not limited to, the time periods of restrictions in each of such paragraphs) are fair and reasonable and are reasonably required for the protection of the interests of the Company and any of its Affiliates in the Business.

 

12.          Separate Covenants.  This Agreement shall be deemed to consist of a series of separate covenants.  Should a determination be made by a court of competent jurisdiction that the character, duration, or geographical scope of any provision of this Agreement is unreasonable in light of the circumstances as they then exist, then it is the intention and the agreement of the Company and the Employee that this Agreement shall be construed by the court in such a manner as to impose only those restrictions on the conduct of the Employee which are reasonable in light of the circumstances as they then exist and as are necessary to assure the Company of the intended benefit of this Agreement.  If, in any judicial proceedings, a court shall refuse to enforce all of the separate covenants deemed included herein because, taken together,

 

6

 

they are more extensive than necessary to assure the Company of the intended benefit of this Agreement, then it is expressly understood and agreed by the Company and the Employee that those of such covenants which, if eliminated, would permit the remaining separate covenants to be enforced in such proceeding, shall, for the purpose of such proceeding, be deemed eliminated from the provisions hereof.  In the event of a violation by the Employee, the term of each such covenant so violated shall be automatically extended for a period equal to the period of time during which the Employee continues to be in violation of such covenant.

 

13.          Successors and Assigns.  The Agreement shall inure to the benefit of and be binding upon the Company and any successor of the Company by reorganization, merger, consolidation or liquidation and any assignee of all or substantially all of the business or assets of the Company.

 

14.          Non-Alienation  of  Benefits.  No assignment by the Employee of any rights or benefits arising under the Agreement is permitted or recognized.  Any purported assignment of any rights or benefits by the Employee will be void.  The Company is not liable for or subject to the debts, contracts, liabilities, or torts of any person entitled to benefits under this Agreement.

 

15.          Governing Law.  This Agreement and all claims arising out of or based upon this Agreement or relating to the subject matter hereof shall be governed and interpreted by and construed in accordance with the laws of The State of New York, except to the extent that those laws are superseded by the laws of the United States of America.

 

16.          Construction.  One gender includes the other, and the singular and plural include each other when the meaning would be appropriate.  This Agreement’s headings and subheadings have been inserted for convenience of reference only and shall be ignored in any construction of the provisions.  If a provision of this Agreement is illegal or invalid, that illegality or invalidity does not affect other provisions.  This Agreement shall be construed according to the applicable provisions of the Code, Treasury Regulations, and ERISA in a manner that assures that the Agreement provides the benefits and tax consequences intended for Employees.  Any terms defined in the Code, Treasury Regulations or ERISA that are not defined herein are incorporated in this Agreement by reference.

 

17.          Entire Agreement.  This Agreement contains the entire agreement and understanding by and between the Company and the Employee with respect to the covenants contained herein, and no representations, promises, agreements, or understandings, written or oral, not herein contained shall be of any force or effect.  No change or modification hereof shall be valid or binding unless the same is in writing.  No valid waiver of any provision of this Agreement at any time shall be deemed a waiver of such provision at any other time.

 

[the remainder of this page has intentionally been left blank]

 

7

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date set forth above.  THIS EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THE AGREEMENT.

 

	
EMPLOYEE:
    	
Stephen   Vaccaro
    	
 
    
	
 
    	
 
    	
 
    
	
ADDRESS:
    	
40   Main St #3 Brooklyn, NY 11201
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNATURE:
    	
/s/   Stephen Vaccaro
    	
 
    

 

 

	
ACCEPTED   BY:
    	
 
    
	
 
    	
 
    
	
 
    	
COMMERCIAL   INDUSTRIAL FINANCE CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Gleysteen
    
	
 
    	
 
    	
Name:
    	
Peter   Gleysteen
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

Non-Disclosure Agreement Signature Page

 

 

EXECUTION VERSION

 

COMMERCIAL INDUSTRIAL FINANCE CORP.

 

NON-DISCLOSURE, NON-COMPETITION, NON-HIRING, NON-SOLICITATION

AND SEVERANCE AGREEMENT

 

FIRST AMENDMENT

 

WHEREAS, Commercial Industrial Finance Corp. (the “Company”) and Stephen Vaccaro (the “Employee”) are parties to that certain Non-Disclosure, Non-Competition, Non-Hiring, Non-Solicitation and Severance Agreement, dated as of June 14, 2006 (the “Agreement”);

 

WHEREAS, the Company and the Employee desire to amend the Agreement, as provided in this First Amendment to the Agreement;

 

NOW THEREFORE,  for and in consideration of the mutual promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows, effective as of the date hereof:

 

1.             Section 7 of the Agreement is hereby amended by inserting the following language at the end thereof:

 

“Notwithstanding anything contained in this Section 7 to the contrary, (i) the first payment of any amounts payable to the Employee under Section 7(a) will be paid to the Employee or his estate on the first payroll date that occurs on or following the sixtieth (60th) day after Employee’s Involuntary Termination, and will include a catch-up of any missed monthly installment payments that would have otherwise been made prior to such date had Employee executed the release of all claims against the Company and its Affiliates referred to above in this Section 7 on the date of his Involuntary Termination, (ii) the payment of any amounts under Section 7(a) shall be subject to (A) the Employee or his estate (as applicable) delivering to the Company the release of all claims against the Company and its Affiliates referred to above in this Section 7 (the form of which shall be provided to the Employee or his estate within seven (7) days following the Employee’s Involuntary Termination) and (B) such release having become effective and irrevocable by the Employee under its terms and all applicable law prior to the sixtieth (60th) day following his Involuntary Termination, and (iii) the Employee’s commencement of alternative employment shall not affect his right to receive any installment payments that are missed merely by reason of the sixty-day delay in payment provided for in clause (i) above.”

 

2.             New Section 18 is hereby added to the Agreement, as follows:

 

“18.        Code Section 409A.  Although the Company does not guarantee the tax treatment of any payments under this Agreement, the intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, 

 

 

Section 409A of the Code (together, with the Treasury regulations and other authorities issues thereunder, “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on the Employee by Code Section 409A or any damages for failing to comply with Code Section 409A.  Notwithstanding anything in this Agreement to the contrary, to the extent any payments or benefits are subject to Code Section 409A, (i) a termination of employment (including, without limitation, an Involuntary Termination) shall not be deemed to have occurred for purposes of Section 7 of this Agreement unless such termination is also a “separation from service” within the meaning of Code Section 409A, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(b) of the Code (as determined by the Company), any payment under Section 7(a) of this Agreement otherwise due to the Employee during the first six (6) months following the Employee’s termination of employment that is not exempt from Section 409A as separation pay or as a short-term deferral will be held and paid to the Employee or his estate on the earlier of (A) the first business day following the expiration of such six-month period, and (B) the Employee’s death, and (iii) the Employee’s commencement of alternative employment shall not affect his right to receive any installment payments that are missed merely by reason of the six-month delay in payment provided for in clause (ii) above.  Each installment payment under Section 7(a) of this Agreement shall be deemed a “separate payment” and not one of a series of payments for purposes of Code Section 409A.”

 

IN WITNESS WHEREOF, this First Amendment to the Agreement has been executed as of this 8th day of April, 2011.  THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS FIRST AMENDMENT TO THE AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS FIRST AMENDMENT TO THE AGREEMENT.

 

	
EMPLOYEE:
    	
Stephen   J. Vaccaro
    	
 
    
	
 
    	
 
    	
 
    
	
ADDRESS:
    	
70   Washington Street 2G, Brooklyn, NY 11201
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNATURE:
    	
/s/   Stephen J. Vaccaro
    	
 
    

 

 

	
ACCEPTED   BY:
    	
COMMERCIAL   INDUSTRIAL FINANCE CORP.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Gleysteen
    	
 
    
	
 
    	
 
    	
Name:  Peter Gleysteen
    	
 
    
	
 
    	
 
    	
Title:   Chief Executive Officer

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