Document:

ex10-1.htm

    Exhibit
10.1

    

    

    RESOLUTIONS

    OF
THE

    COMPENSATION
COMMITTEE

    OF
PHH CORPORATION

    

    MARCH
18, 2008

    

    2008 Management Incentive
Plans

    

    WHEREAS, PHH Corporation (the
“Corporation”) sponsors and maintains the PHH Corporation 2005 Equity and
Incentive Plan (the “Plan”), which is administered by the Compensation Committee
of the Corporation’s Board of Directors (the “Committee”);

    

    WHEREAS, Section 6(c) of the Plan
authorizes the Committee to grant cash incentive awards under an annual
incentive program to the extent that performance targets and other terms and
conditions established by the Committee are satisfied; and

    

    WHEREAS, the Committee has determined
that it is in the best interests of the Corporation to establish and maintain
the PHH Corporation 2008 Management Incentive Plan, PHH Mortgage 2008 Management
Incentive Plan and the PHH Arval Management Incentive Plan (each effective
January 1, 2008) with respect to the 2008 fiscal years of the Corporation, PHH
Mortgage and PHH Arval (each a “2008 Incentive Plan” and, collectively, the
“2008 Incentive Plans”) under which cash incentive awards will be granted to
certain named executive officers and other members of management (each an
“Executive”) in an amount equal to the product of an Executive’s base salary for
2008 and the Executive’s target annual bonus percentage, to the extent that
performance targets and other conditions established by the Committee are
determined to have been satisfied.

    

    NOW,
THEREFORE, BE IT:

    

    RESOLVED,
that the Committee hereby authorizes and approves the adoption of the 2008
Incentive Plans with respect to the 2008 fiscal year of the Corporation, PHH
Mortgage and PHH Arval, substantially in the forms set forth in Exhibit A, Exhibit B and Exhibit C,
respectively, subject to further changes and modifications as may be deemed
appropriate upon the advice of counsel, under which cash incentive awards will
be granted to Executives of the Corporation, PHH Mortgage and PHH Arval, to the
extent that performance targets and other conditions established by the
Committee are determined to have been satisfied;

    

    RESOLVED,
that the Committee hereby approves the following performance targets for the
2008 Incentive Plans:

    

    [***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PHH
Corporation 2008 Incentive Plan Performance Targets:

    

    
      	
              PHH
      Company

            	
              PTIAMI
      Target

            	
              PTIAMI
      Performance Level

            
	
              PHH
      Arval

            	
              $[***]
      million

            	
              100%

            
	
              PHH
      Mortgage

            	
              $[***]
      million

            	
              100%

            

    

    

    PHH
Mortgage 2008 Incentive Plan Performance Targets:

    

    
      	
              PTIAMI
      Target

            	
              Individual
      Performance Maximum Performance Payout  Level

            	
              PHH
      Mortgage

              Financial
      Performance Maximum Payout Level

            	
              Combined
      Maximum Payout level

            	
              Enhancements

            
	
              $[***]
      million

            	
              100%

            	
              100%

            	
              100%

            	 
      
	
              $[***]
      million

            	
              100%

            	
              150%

            	
              125%

            	
              Interpolation
      Payout

            
	
              $[***]
      million

            	
              200%

            	
              200%

            	
              200%

            	 
      

    

    

    PHH
Arval 2008 Incentive Plan Performance Targets:

    

    
      	
              PTIAMI

            	
              %
      Achieved

            	
              Pay
      Plan

            
	
              $[***]
      million

            	
              100%

            	
              100%

            
	
              $[***]
      million

            	
              125%

            	
              125%

            

    

    

    RESOLVED,
that the Committee hereby authorizes and approves cash incentive awards to the
named executive officers, and in the target amounts, as set forth on Exhibit D with
respect to the 2008 Incentive Plans, to the extent that performance targets and
other conditions established by the Committee are determined to have been
satisfied.

     

    
      [***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED.

      
        
           

        

        
           

          
            
 

        

        
           

        

      

    Enabling
Resolution

     

    RESOLVED,
that the appropriate officers and employees of the Corporation are hereby
authorized, empowered, and directed, in the name and on behalf of the
Corporation, to execute, acknowledge, and deliver any and all documents,
instruments, and papers, to give all notices that may be required or
appropriate, and to take or cause to be taken such actions as may be determined
to be necessary, appropriate or advisable to carry out the intent or purposes of
all of the foregoing resolutions, such determination to be evidenced
conclusively by the execution and delivery of such documents or the taking of
such actions.

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    

    PHH
CORPORATION

    2008
MANAGEMENT INCENTIVE PLAN DOCUMENT

    

    

    Plan
Performance Term

     

    PHH
Corporation operates the Management Incentive Plan (MIP) on a calendar year
basis, beginning January 1 and ending December 31.  Plan targets are
based on this performance term.

    

    Plan Targets

     

    Eligible
participants will have a total MIP target expressed as a percent of base salary
(varying by level).  Payout will be based on two independent factors;
a weighting of (Factor 1) 50% PHH Arval Financial Performance
and (Factor 2) 50%
on PHH Mortgage
Financial Performance.

     

    The PHH
Arval Financial Performance has a maximum factor payout of 125% and the PHH
Mortgage Financial Performance has a maximum factor payout of
200%.  The maximum performance in both areas (125% PHH Arval Financial
Performance and 200% PHH
Mortgage Financial Performance) offer the opportunity for a total maximum MIP
payout of 162.5% [(125% * 50%) + (200% * 50%)] = 162.5%.  Participants
may receive payout from none, one, or both of the factors.

    

    The
factor will be based on the actual payout factor used by each of the company’s
relative to the target for each company.  If a Partial payout is
determined for an operating company, then the same partial payout factor will be
used in the corporate calculation.

    

    PHH
Corporation Financial Performance

    Plan Performance Target:
– PHH Corporation
Pre-Tax Income After Minority Interest (PTIAMI)

     

    The PHH
Corporation Financial Performance Targets and associated payout levels are as
follows:

     

    
      	
              PHH
      Company

            	
              PTIAMI
      Target

            	
              PTIAMI
      Performance Level

            
	
              PHH
      Arval

            	
              $[***]
      million

            	
              100%

            
	
              PHH
      Mortgage

            	
              $[***]
      million

            	
              100%

            

    

    

     

    There
will be no payout for established company performance target below the 100%
PTIAMI performance level.

     

    (Please
refer to each Business Units’ respective Management Incentive Plan Documents for
payout details.)

     

    [***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    PHH
CORPORATION

    2008
MANAGEMENT INCENTIVE PLAN DOCUMENT

     

    

    Eligibility

     

    An
Employee must maintain a Full-Time schedule (30 hours per week or more) to be
eligible for MIP.

     

    In
certain scenarios, it may be necessary to adjust an individual’s MIP payment
outside of the parameters addressed within the plan.  PHH Corporation
reserves the right to make these modifications as necessary.

    

    New
or Newly Promoted Employees

     

    Newly
hired or promoted Employees will receive a MIP payout that is prorated to the
month of hire or promotion.  If a promotion increases an Employee’s
MIP percentage (expressed as percentage of base salary), the MIP payout will be
determined by a weighted calculation, based on the time period applicable to
each respective MIP percentage and base salary earnings.

     

    Employees
hired or promoted into MIP eligible positions after September 30, 2008 are not
eligible to participate in the 2008 MIP.

    

    Termination
of Employment

     

    Employees
must be actively employed by PHH Corporation or one of its subsidiaries through
the end of the performance year in order to be eligible for a MIP
payout.

    

    Leave
of Absence

     

    MIP
payouts will be prorated for any leaves of absence. The proration will be based
on the total period of time of the leave of absence.

    

    Death

     

    In the
event of the death of an Employee, the estate of the deceased Employee will
receive a payout based on his/her 2008 base salary earnings, prorated according
to time participating in the plan term.

     

    Payout
Approval

     

    The MIP
payout will be audited, approved, and administered by the Executive Vice
President and CFO and the Senior Vice President of Human Resources for PHH
Corporation, subject to the approval by the Compensation Committee of the Board
of Directors of PHH Corporation.

     

    MIP
Payments will be made after PHH Corporation files its annual audited financial
statements.

     

    PHH
reserves the right to terminate, amend, modify and/or restate this Program (in
whole or in part) at any time and without advance notice.

    

    Changes
to the Plan

     

    Occasionally,
changes in business conditions will necessitate a modification to existing
incentive plans.  PHH Corporation management reserves the right to
modify the MIP as needed.  Any changes to the Plan will be approved by
the Executive Vice President and Chief Financial Officer and the Senior Vice
President of Human Resources of PHH Corporation subject to the approval of the
Compensation Committee of the Board of Directors of PHH
Corporation.  Approved changes to the Plan will be communicated in
writing to all participants and their managers.

    

    Compliance
on Code of Ethics Sign-Off

     

    Payment
of MIP is contingent upon recipient’s signing of the annual acknowledgement of
review of the PHH Corporation Code of Conduct.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

    

    

    PHH
MORTGAGE

    2008
MANAGEMENT INCENTIVE PLAN DOCUMENT

    

    Plan
Performance Term

    PHH
Mortgage operates the Management Incentive Plan (MIP) on a calendar year basis,
beginning January 1 and ending December 31.  Plan targets are based on
this performance term.

     

    Plan Targets

    Eligible
participants will have a total MIP target expressed as a percent of base salary
(varying by level).

    Target
payouts will be dependent upon successful achievement of PHH Mortgage
Financial Performance defined as Pre-Tax Income After Minority Interest
(PTIAMI) performance for the plan term, adjusted by an estimate of the first
quarter impact of the change in accounting from SAB105 to SAB109 (specifically
an estimate of the fair value recognized in the first quarter under SAB109 for
rate lock commitments existing at 12/31/07 and accounted for under SAB105 as of
12/31/07).

     

    Once
minimum financial targets are met, payout will be based on two factors; a
weighting of (Factor 1) 50% PHH Mortgage Financial Performance
and (Factor 2) 50%
on Individual
Performance for the plan term.

     

    The PHH
Mortgage Financial Performance has a maximum factor payout of 200% and the
Individual Performance has a maximum factor payout of 200%.  The
maximum performance in both areas (200% Financial Performance and 200% Individual) offer the
opportunity for a total maximum MIP payout of 200%

    [(200%
*50%) + (200% * 50%)] = 200%.  Participants may receive payout from
none, one, or both of the factors.

    The
PHH Mortgage Financial Performance Targets and associated maximum payout levels
are as follows:

     

    
      	
              PTIAMI
      Target(1)

            	
              Individual
      Maximum Performance Payout  Level

            	
              PHH
      Mortgage Financial Performance Maximum Payout Level

            	
              Combined
      Maximum Payout level

            	
              Enhancements

            
	
              $[***] million

            	
              100%

            	
              100%

            	
              100%

            	 
      
	
              $[***]
      million

            	
              100%

            	
              150%

            	
              125%

            	
              Interpolation
      Payout

            
	
              $[***]
      million

            	
              200%

            	
              200%

            	
              200%

            	 
      

    

     

    
      	
               
      (1) 
      

            	
              PTIAMI
      target will be measured by combining the PTIAMI for the mortgage segments
      reduced by an estimate of the first quarter impact of recognizing the fair
      value on Interest rate lock commitments existing at 12/31/07 which was not
      recognized as of 12/31/07 under SAB
105.

            

    

     

    There
will be no payout below $[***] million.

     

    For
PTIAMI of $[***] million the combined payout level will be earned up to
100%.

     

    For
PTIAMI between $[***] million and $[***] million the combined payout level will
be interpolated.  Interpolation payout will occur between the 100% and
125% achievement of the established PTIAMI performance target
levels.

     

    For
PTIAMI between $[***] million and $[***] million the combined payout level will
be earned up to 125%.

     

    For
PTIAMI of $[***] million and greater, the combined maximum payout level will be
200%.  There is no payout to exceed 200% of the established PTIAMI
performance target levels.

     

    [***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PHH
MORTGAGE

    2008
MANAGEMENT INCENTIVE PLAN DOCUMENT

    

    

    Factor
1: PHH Mortgage Financial Performance

    Plan Performance Target:
– PHH Mortgage Pre-Tax
Income After Minority Interest (PTIAMI) net of adjustment noted
above.

    

    Factor
2: Individual Performance

    Plan
Performance Target – Management by Objectives Personal Rating

    Senior
Leadership Team members will make an assessment of Individual Performance based
on performance relative to individual department goals and objectives for the
plan term.  Plan Performance on Individual Performance levels may not
exceed 100% of the established Individual Performance level.

    

    Individual
MIP Calculation Examples

     

    Your
individual MIP payout is based on the following:

     

    
      	
              1)  

            	
              Did
      the company achieve the minimum financial
  target:

            

    

     

    
      	
              a.  

            	
              If
      no, then NO MIP payout will occur.

            

    

     

    
      	
              b.  

            	
              If
      yes, then the MIP opportunity will be split between the individual
      performance (up to 100% of target bonus) and company performance (up to
      100% of target bonus) for a maximum bonus opportunity of 200% of
      target.

            

    

     

    Individual
2008 Base Salary Earnings during MIP eligible time period(s)

     

    
      	
              (a)  

            	
              MIP
      Target Percentage based on organizational
levels

            

    

     

    
      	
              (b)  

            	
              PHH
      Mortgage Financial Performance

            

    

     

    
      	
              (c)  

            	
              PHH
      Mortgage Performance Weighting

            

    

     

    
      	
              (d)  

            	
              Assigned
      Individual Performance Rating

            

    

     

    
      	
              (e)  

            	
              Individual
      Personal Rating Weighting

            

    

     

    
      	
              (f)  

            	
              Proration
      Factor Based on Time Period Participating in Plan and Individual MIP
      Percentages: – a proration factor will be applied according to the time
      period participating in the plan and the applicable MIP Percentage(s) for
      this time period(s). This proration factor is based on: hire date if hired
      during plan term, promotion date if promoted to a MIP eligible position
      during the year, date promoted to a different/higher MIP percentage, or
      time period of unpaid leave of absence during plan term (if greater than
      30 days).  The proration factor will be applied to the
      calculated payout based on above
factors.

            

    

     

    
      	
              (g)  

            	
              Base
      Salary

            

    

     

    The
formula for determining your individual MIP payout is as follows. Please note
that if your Individual MIP Percentage changed during the year, your calculation
is based on this formula for each time period applicable.

     

    {[(a) x
(b) x (c)] + [(a) x (d) x (e)]} x (f) x (g)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PHH
MORTGAGE

    2008
MANAGEMENT INCENTIVE PLAN DOCUMENT

    

    Eligibility

     

    If at any
time during the plan term a Team Player is on a formal performance improvement
program and/or a formal disciplinary action occurs, the Individual Performance
component will be subject to a prorated percent up to and including 100% of the
entire Individual Performance factor and will impact the MIP
payout.

     

    A Team
Player must maintain a Full-Time schedule (30 hours per week or more) to be
eligible for MIP.

     

    In
certain scenarios, it may be necessary to adjust an individual’s MIP payment
outside of the parameters addressed within the plan.  PHH Corporation
reserves the right to make these modifications as necessary.

    

    New
or Newly Promoted Team Players

     

    Newly
hired or promoted team players will receive a MIP payout that is prorated to the
month of hire or promotion.  If a promotion increases a team player’s
MIP percentage (expressed as percentage of base salary), the MIP payout will be
determined by a weighted calculation, based on the time period applicable to
each respective MIP percentage and base salary earnings.

     

    Team
players hired or promoted into MIP eligible positions after September 30, 2008
are not eligible to participate in the 2008 MIP.

    

    Termination
of Employment

     

    Team
players must be employed by PHH Corporation or one of its subsidiaries at the time of payment
(usually March of the following year) in order to be eligible for a MIP
payout.

    

    Leave
of Absence

    MIP
payouts will be prorated for any leaves of absence. The proration will be based
on the total period of time of the leave of absence.

    

    Death

     

    In the
event of the death of a team player, the estate of the deceased team player will
receive a payout based on his/her 2008 base salary earnings, prorated according
to time participating in the plan term.

     

    Payout
Approval

     

    The MIP
payout will be audited and approved by the Executive Vice President and CFO and
the Senior Vice President of Human Resources for PHH Corporation, and
administered by the CFO and Senior Vice President of Human Resources of PHH
Mortgage, subject to the approval by the Compensation Committee of the Board of
Directors of PHH Corporation.

     

    MIP
Payments will be made after PHH Corporation files its annual audited financial
statements.

     

    PHH
reserves the right to terminate, amend, modify and/or restate this Program (in
whole or in part) at any time and without advance notice.

     

    Changes
to the Plan

     

    Occasionally,
changes in business conditions will necessitate a modification to existing
incentive plans.  PHH Corporation management reserves the right to
modify the MIP as needed.  Any changes to the Plan, will be approved
by the Executive Vice President and CFO and the Senior Vice President of
Human

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    PHH
MORTGAGE

    2008
MANAGEMENT INCENTIVE PLAN DOCUMENT

     

     

    Resources
for PHH Corporation, subject to the approval of the Compensation Committee of
the Board of Directors of PHH Corporation.  Approved changes to the
Plan will be communicated in writing to all participants and their
managers.

     

    Compliance
on Code of Ethics Sign-Off

     

    Payment
of MIP is contingent upon recipient’s signing of the annual acknowledgement of
review of the PHH Corporation Code of Conduct.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
C

    

    
      

    

    

     

    PHH
Arval

    2008
Incentive Plan Guidelines

    

    Effective
January 1, 2008 through December 31, 2008

    

    The
information contained in this document is proprietary.  Sharing this
information with anyone who is not an employee of PHH Arval violates the PHH
Corporation Code of Conduct and the PHH Arval Code of Ethics.

    

    This
document provides general guidelines for all incentive plan participants except
those who participate in the Share the Results Plan.  For details
regarding the Share the Results Plan, please reference the 2008 Share the
Results Plan Guidelines.

    

    Introduction

     

    PHH
Vehicle Management Services, LLC, doing business as PHH
Arval,  (hereafter “PHH”) provides various incentive plans that
enhance company unity as they give participants the opportunity to earn
incentive compensation contingent on:

     

    
      	
              ·  

            	
              Achievement
      of the 2008 strategic plan, growth strategy and financial
      objectives.

            

    

     

    
      	
              ·  

            	
              Successful
      achievement of key initiatives as identified by senior
      leadership.

            

    

    

    Plan
Participation

     

    Participation
is limited to employees whose positions and responsibilities significantly
impact financial performance and the achievement of strategic business
initiatives.  Contracted, temporary and casual employees are not
eligible.  Eligible participants are identified at the beginning of
each year, or at the time of promotion, transfer, or new hire to an eligible
position.  Participants who are hired during the year are eligible for
a prorated award, provided their start date is prior to October
1.  Individuals hired between October 1 and December 31 are not
eligible to participate.  Individuals rehired at any time
during the year with at least three months of prior service during that year
will be eligible for a prorated payout.   Participants who
experience a role change during the year may be eligible to receive a prorated
award. Participation in any given year does not ensure participation in
subsequent years. A comprehensive review of participants and participation
levels occurs each year, and participation changes may be made.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Payout
Targets

     

    The
payout target is expressed as a percentage of annual earnings.  A
participant's payout target is determined based on three
criteria:  total compensation as determined by the competitive
marketplace, the appropriate mix of base pay and the “at risk” component of
incentive pay, and internal equity. The payout target is fixed at the level of
company, financial and other performance that constitutes 100% achievement; the
actual payout percentage, and the percentage of earnings it represents, will be
dependent on the actual results achieved.

    

    Plan
Design

     

    Plan
elements and their weighting are reviewed each year.  Elements of the
Plan may include PHH financial performance, other total company performance
measures, team results and individual results.

    

    Annual
Plan Insert

     

    The
Annual Plan Insert is a separate document that will be provided to each Plan
participant.  The insert provides personalized details
that  include:  payout target, plan elements and payout
timing on the various plan elements.

    

    Financial
Schedules

     

    A
financial schedule is developed for each financial element of the
Plan.  The schedule sets forth the percent of goal that must be
achieved for the corresponding payout percentage.  The financial
schedule may be included on the Annual Plan Insert or provided as a separate
document.

    

    Payouts

     

    To receive payouts, participants must
be actively employed by PHH through the end of each payout period, as defined on
each Annual Plan Insert.

    

    Payouts
at yearend are based on eligible earnings for the period January 1 to December
31.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Termination
of employment prior to the last day of each payout period for any reason other
than death, disability, or retirement will lead to forfeiture of payment and/or
repayment of any incentives paid, but not earned.  In the event of
termination of employment for death, long-term disability, a leave of absence
that results in an administrative separation due to the length of the leave or
business need, or retirement, prorated payments may be made, with the review of
case-by-case circumstances and the specific approval of the SVP Human
Resources.  Participants with documented performance issues or on a
Performance Improvement Plan at any time during the year may jeopardize their
eligibility to receive a payout.

    

    Payouts
to participants with unresolved PHH debt will be held until the debt is paid or,
at PHH’s discretion, until an agreed-upon payment plan has been established. PHH
has the right to deduct any unresolved debt from incentive plan
payouts.

    

    Plan
payouts will be audited and approved by the Executive Vice President and CFO for
PHH Corporation, and administered by the President and Chief Executive Officer,
the Senior Vice President, Finance, the Senior Vice President, Human Resources
and the Director, Compensation for PHH Arval, subject to the approval by the
Compensation Committee of the Board of Directors of PHH
Corporation.

    

    Plan
Payouts will be made after PHH Corporation files its annual audited financial
statements and authorizes the payments.

    

    Other
Provisions

     

    As a
condition of Plan participation and eligibility for any payout, the participant
agrees to comply with the rules, regulations, policies and standards of business
conduct of PHH, as well as the directions, assignments and instructions provided
by PHH’s leadership. PHH has the authority at its discretion to withhold
payment in the case of violations of rules, regulations, policies and standards
of the business including misconduct.

    

    This Plan
is created by officers of the PHH Arval business unit:   the
President and Chief Executive Officer, the Senior Vice President, Finance, the
Senior Vice President, Human Resources.  Its design and financial
integrity is subject to annual review and approval of the Executive Vice
President and CFO of PHH Corporation and the Compensation Committee of the PHH
Corporation Board of Directors. The Plan is administered by the PHH Arval
Director, Compensation.

    

    The PHH
Arval President and Chief Executive Officer, the Senior Vice President, Finance,
and the Senior Vice President, Human Resources have the sole authority to
interpret and execute the provisions of the Plan and make exceptions as
warranted by special business circumstances.  All decisions, actions
or interpretations are final, conclusive and binding to all
parties.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Occasionally,
changes in business conditions will necessitate a modification to existing
plans, PHH Corporations management reserves the right to terminate, amend,
modify and/or restate this Plan (in whole or in part) at any time and without
advance notice.  Any such changes to the Plan will be approved by the
Executive Vice President and Chief Financial Officer subject to the approval of
the Compensation Committee of the Board of Directors of PHH
Corporation.  Approved changes to the Plan will be communicated in
writing to all participants and their managers.

    

    This
Plan, or any action taken in connection with it, does not give the participant
the right to be retained as an employee with PHH.  No person eligible
to receive payouts shall have any rights to pledge, assign, or otherwise dispose
of any unpaid or anticipated Plan payments.

    

    Payment
of any incentive earned is contingent upon the recipient’s signing of the annual
acknowledgement and review of the PHH Corporation Code of Conduct.

    This Plan
document is the exclusive property of PHH and must be surrendered to PHH in the
event of termination of employment.

    

    
      	 
      
	
              George
      J. Kilroy

            
	
              President
      & CEO

            
	 
      
	 
      
	 
      
	
              Rita
      L. Ennis

            
	
              Sr.
      Vice President Human Resources

            
	 
      
	 
      
	 
      
	
              William
      R. Keenan

            
	
              Sr.
      Vice President Finance

            
	 
      
	 
      
	 
      
	
              Clair
      M. Raubenstine

            
	
              PHH
      Corporation Executive Vice President &
CFO

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
D

    

    Named
Executive Officers under the 2008 Incentive Plans

    

    

    
      	
              Executive

            	
              Position

            	
              Plan

            	
              Target
      Payout

              (%
      of Base
      Salary)

            	
              Target

              Payout Amount

            
	 
      	 
      	 
      	 
      	 
      
	
              Terrence
      W. Edwards

            	
              President
      and Chief Executive Officer

            	
              PHH
      Corporation 2008 Incentive Plan

            	
              100%

            	
              $564,635

            
	 
      	 
      	 
      	 
      	 
      
	
              George
      J. Kilroy

            	
              President
      and Chief Executive Officer – PHH Arval

            	
              PHH
      Arval

              2008
      Incentive Plan

            	
              100%

            	
              $450,000

            
	 
      	 
      	 
      	 
      	 
      
	
              Mark
      R. Danahy

            	
              Senior
      Vice President and Chief Financial Officer – PHH Mortgage

            	
              PHH
      Mortgage

              2008
      Incentive Plan

            	
              75%

            	
              $243,750

            
	 
      	 
      	 
      	 
      	 
      
	
              William
      F. Brown

            	
              Senior
      Vice President, General Counsel and Secretary

            	
              PHH
      Corporation 2008 Incentive Plan

            	
              50%

            	
              $150,000Converted by EDGARwiz

CERTIFICATE OF DESIGNATIONS, PREFERENCES,

AND RIGHTS OF SERIES D CONVERTIBLE PREFERRED STOCK

OF GLOBAL CASINOS, INC.

Pursuant to the

General Corporation Law of the State of Utah

GLOBAL CASINOS, INC., a corporation organized and existing under the laws of the State of Utah (the "Company"), DOES HEREBY CERTIFY that pursuant to the authority contained in Article IV of its Articles of Incorporation, and in accordance with the provisions of the General Corporation Law of the State of Utah, the Company's Board of Directors has duly adopted the following resolution creating a series of the class of its authorized Preferred Stock, designated as Series D Convertible Preferred Stock:

RESOLVED THAT:

Whereas, by virtue of Article IV of its Articles of Incorporation, the Company has the authority to issue ten million (10,000,000) shares of Preferred Stock of the par value of $0.01 per share, the designation and amount thereof and series, together with the powers, preferences, rights, qualifications, limitations or restrictions thereof, to be determined by the Board of Directors pursuant to the applicable law of the State of Utah;

Now therefore, the Company's Board of Directors hereby establishes a series of the class of Preferred Stock authorized to be issued by the Company as above stated, with the designations and amounts thereof, together with the voting powers, preferences and relative, participating, optional and other special rights of the shares of each such series, and the qualifications, limitations or restrictions thereof, to be as follows:

1.

Designations and Amounts.  One million (1,000,000) shares of the Company's authorized Preferred Stock are designated as Series D Convertible Preferred Stock, having a face value of $1.00 per share (“Stated Value”).

2.

Definitions.

For the purposes of this Resolution the following definitions shall apply:

(a)

"Board" shall mean the Board of Directors of the Company.

(b)

"Company" shall mean Global Casinos, Inc., a Utah corporation formed on June 8, 1978.

(c)

"Original Issue Date" for a series of Preferred Stock shall mean the date on which the first share of such series of Preferred Stock was originally issued.

(d)

"Preferred Stock" shall refer to Series D Convertible Preferred Stock.

(e)

"Stated Value" shall mean $1.00 per share.

(f)

"Subsidiary" shall mean any corporation at least fifty percent (50%) of whose outstanding voting stock shall at the time be owned directly or indirectly by the Company or by one or more Subsidiaries.

(g)

"Securities Act" shall mean the Securities Act of 1933, as amended.

(h)

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

3.

Dividends.

(a)

The holders of outstanding Preferred Stock shall be entitled to receive dividends at the annual rate of eight percent (8%) based on the Stated Value per share computed on the basis of a 360-day year and twelve 30-day months.  Dividends shall be calculated from the date of issue and payable on the fifteenth day of April, July, October and January of each year (the "Dividend Payment Date").  Dividends shall be paid to recordholders of shares of Preferred Stock as of the date one business day prior to the Dividend Payment Date (the "Dividend Record Date").  The right of the holder of shares of Preferred Stock as of the Dividend Record Date to the relevant dividend shall not be affected by the subsequent transfer or cancellation of such shares; such dividend being payable to the holder as of the Dividend Record Date notwithstanding such transfer or cancellation.

(b)

Dividends payable on the Preferred Stock may be paid, at the option of the holder, either (i) in cash or (ii) by the issuance by the Company of shares of its Common Stock, valued at the Market Price, as hereinafter defined, on the Dividend Record Date.  For the purposes hereof, the Market Price shall be the volume weighted average closing bid price (“VWAP”) for the Common Stock, as reported by Blumberg LP on the principal market for the Company’s Common Stock (the “Principal Market”) during the period of twenty-two (22) Trading Days, ending with the last Trading Day prior to the Dividend Payment Date. Notwithstanding the foregoing, in the event the Market Price on the Dividend Renewal Date is less than $0.75 per share, then the Company shall have the option, without the written consent of the holder electing to receive payment of the dividend in shares of Common Stock, to pay the dividend in cash.

(c)

Dividends on the shares of Preferred Stock shall be cumulative; therefore, a full dividend on the shares of this series with respect to any dividend period shall be 

declared by the Board of Directors of the Company and the Company shall be obligated to pay full dividend on the shares of this series with respect to such dividend period.  

(d)

In addition to the Preferred Stock dividend, the holders of outstanding Preferred Stock shall be entitled to participate, pro rata, in dividends paid on outstanding shares of Common Stock, if, when and as the Board of Directors shall in their sole discretion deem advisable, and only from the net profits or surplus of the Company as such shall be fixed and determined by the Board of Directors.  The determination of the Board of Directors at any time of the amount of net profits or surplus available for dividend shall be binding and conclusive on the holders of all the stock of the Company at the time outstanding.

4.

Priority On Liquidation

(a)

Payment upon Dissolution, Etc.  Upon the occurrence and continuance of: (i) any insolvency or bankruptcy proceedings, or any receivership, liquidation, reorganization or other similar proceedings in connection therewith, commenced by the Company or by its creditors and not dismissed within 90 days following such commencement, as such, or relating to its assets, or (ii) the dissolution or other winding up of the Company whether total or partial, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy proceedings, or (iii) any assignment for the benefit of creditors or any marshalling of the any assignment for the benefit of creditors or any marshalling of the material assets or material liabilities of the Company (a “Liquidation Event”), no distribution shall be made to the holders of any shares of capital stock, other than stock that ranks (i) senior to the Series D Preferred Stock; or (ii) pari passu with the Series D Preferred Stock until: (1) the holders of any shares of stock which have liquidation preferences senior to the Series D Preferred Stock shall have received the entire amount of such liquidation preferences, and (2) each holder shall have received the Liquidation Preference (as defined below) with respect to each share of Series D Preferred Stock then held by such holder.  In the event that upon the occurrence of a Liquidation Event, the assets available for distribution to the holders of the Series D Preferred Stock and to the holders of any pari passu securities are insufficient to pay the liquidation preference with respect to all of the outstanding shares of Series D Preferred Stock and of such pari passu securities, such assets will be distributed ratably among such shares in proportion to the ratio that the liquidation preference payable on each such share bears to the aggregate liquidation preference payable on all such shares.

(b)

Liquidation Preference.  The “Liquidation Preference” with respect to a share of Series D Preferred Stock shall mean $1.00 per share of Preferred Stock, subordinate to the Stated Value of outstanding shares of preferred stock ranking senior to the Series D Preferred Stock, pari passu with the Stated Value of the Series D Preferred Stock, and senior to the rights of holders of Common Stock. 

(c)

Ranking.  In the event of the liquidation, dissolution, or other winding up of the Company, the holders of the Series D Preferred Stock will be treated as (i) senior to the holders of the Common Stock and any other class or series of stock which is not made pari passu with or senior to the Series D Preferred Stock; and (ii) junior to any other class or series of stock which is made senior to the Series D Preferred Stock.

5.

Redemption.

(a)

Subject to the conditions set forth herein, the Company, by action of its Board of Directors, may at its sole option and discretion redeem all or any portion of the Preferred Stock, at any time, or from time to time, in accordance with the provisions of this Paragraph 5 (the "Optional Redemption").  Holders of the Preferred Stock shall have no right to demand or compel the redemption of any outstanding shares of Preferred Stock.

(b)

In the event the Board of Directors elects to redeem the Preferred Stock, on and after the date specified in the notice provided for in Paragraph 5(d) below, each holder of the Preferred Stock called for redemption, upon presentation and surrender at the place designated in such notice of the certificate or certificates evidencing said Preferred Stock held by him, her or it, properly endorsed in blank for transfer or accompanied by proper instruments of assignment in blank, shall be entitled to receive therefor the redemption price thereof.

(c)

If redeemed pursuant to this Paragraph 5, the redemption price for each share of Preferred Stock (the "Redemption Price") shall be an amount in cash equal to the sum of (i) the Stated Value per share of Preferred Stock plus (ii) the amount of all accrued and unpaid dividends thereon, whether or not earned or declared, to and including the date fixed for redemption.

(d)

In the case of any Optional Redemption pursuant to this Paragraph 5, at least thirty (30) days and not more than forty (40) days prior to the date fixed for any such redemption of the Preferred Stock (hereinafter referred to as the "Redemption Date"), written notice (hereinafter referred to as the "Redemption Notice") shall be mailed, first class postage prepaid, to each holder of record to the Preferred Stock to be redeemed at his post office address last shown on the records of the Company, and if the holder has provided the Company with a facsimile number for notices, also by facsimile transmission.  The Redemption Notice shall state:

(i)

That all of the holder's outstanding shares of Preferred Stock are being called for redemption;

(ii)

The number of shares of Preferred Stock held by the holder that the Company intends to redeem;

(iii)

The Redemption Date and the Redemption Price; and

(iv)

That the holder is to surrender to the Company, in the manner and at the place designated, his certificate or certificates representing the shares of Preferred Stock to be redeemed.

(e)

Each holder of Preferred Stock to be redeemed shall surrender the certificate or certificates representing such shares to the Company, in the manner and at the place designated in the Redemption Notice, and thereupon the Redemption Price for such shares shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof, and each surrendered certificate shall be cancelled and retired.

(f)

If the Redemption Notice shall have been duly given, each holder of Preferred Stock shall have the right, up to the date prior to the Redemption Date as fixed in the Redemption Notice, to exercise such holder’s right to convert the Preferred Stock into shares of Common Stock in accordance with Section 7 of this Certificate of Designations.

(g)

If the Redemption Notice shall have been duly given and, if on the Redemption Date the Redemption Price is either paid or irrevocably made available for payment through the deposit arrangement specified in Subparagraph 5(h) below, then notwithstanding that the certificates evidencing any of the shares of Preferred Stock so called for redemption shall not have been surrendered, the dividends with respect to such shares shall cease to accrue after the Redemption Date and all rights with respect to such shares shall forthwith after the Redemption Date terminate, except only the right of the holders to receive the Redemption Price, without interest upon surrender of their certificate or certificates therefor.

(h)

At least ten (10) days prior to the Redemption Date, the Company may deposit with any bank or trust company in Boulder, or Denver, Colorado, a sum (or an irrevocable letter of credit) equal to the aggregate Redemption Price of all shares of Preferred Stock called for redemption and not yet redeemed, with irrevocable instructions and authority to the bank or trust company to pay, on or after the Redemption Date or prior thereto, the Redemption Price to the respective holders entitled thereto upon the surrender of their share certificates.  From and after the Redemption Date, the shares so called for redemption shall be redeemed if deposit shall have been made with such instructions or authority on or before the tenth (10th) day prior to the Redemption Date.  The deposit shall on the Redemption Date constitute full payment of the shares to their holders, and from and after the Redemption Date the shares shall be deemed to be no longer outstanding, and the holders thereof shall cease to be shareholders with respect to such shares and shall have no rights with respect thereto except the rights to receive from the bank or trust 

company payment of the Redemption Price of the shares, without interest, upon surrender of their certificates therefor.  Any funds so deposit and unclaimed at the end of one (1) year from the Redemption Date by any holder of shares called for redemption shall be released or repaid to the Company, after which the holders of such shares called for redemption shall be entitled to receive payment of the Redemption Price for such shares only from the Company.

6.

Voting Rights.

(a)

Except as provided herein or required by applicable law, holders of the Preferred Stock shall have no right to vote on any matters presented to the shareholders of the Company at any regular or special meeting of the Company’s security holders. 

(b)

In the event that the holders of the Series D Preferred Stock are required to vote as a class, the affirmative vote of holders of not less than a majority of the outstanding shares of Series D Preferred Stock shall be required to approve each such matter to be voted upon and if any matter is approved by such requisite percentage of holders of Series D Preferred Stock, such matter shall bind all holders of Series D Preferred Stock.

(c)

So long as any shares of Series D Preferred Stock remain outstanding, the consent of the holders of a majority of the then outstanding Series D Preferred Stock, voting as one class, together with any other series of preferred stock then entitled to vote on such matter, regardless of series, either expressed in writing or at a meeting called for that purpose, shall be necessary to permit, effect or validate the creation and issuance of any series of preferred stock of the Company which is senior as to liquidation and/or dividend rights to the Series D Preferred Stock.

(d)

So long as any shares of Series D Preferred Stock remain outstanding, the consent of a majority of the holders of the then outstanding Series D Preferred Stock, voting as one class, either expressed in writing or at a meeting called for that purpose, shall be necessary to repeal, amend or otherwise change this Certificate of Designation, Preferences and Rights or the Articles of Incorporation of the Company, as amended, in a manner which would alter or change the powers, preferences, rights privileges, restrictions and conditions of the Series D Preferred Stock so as to adversely affect the Preferred Stock.

7.

Conversion.

The following of the Preferred Stock shall have the following conversion rights (the "Conversion Rights"):

(a)

Optional Conversion:  Right to Convert.  Each share of Preferred Stock shall be convertible, at the option of the holder thereof  (provided that upon any liquidation of the Company, the right of conversion shall terminate at the close of business on the business day fixed for payment of the amount distributable on the Preferred Stock; and, further except that upon redemption of the Preferred Stock by the Company pursuant to Section 5 hereof, the right of conversion shall terminate at the close of business on the business day immediately preceding the Redemption Date) at the office of the Company or any transfer agent for the Preferred Stock or Common Stock, into fully-paid and non-assessable shares of Common Stock.  

(b)

Conversion Rate.  The number of shares of Common Stock issuable on the conversion of each share of Preferred Stock shall be determined by dividing (A) the sum of (i) the Stated Value of such share or shares of Preferred Stock, plus (ii) all accrued and unpaid dividends thereon, by (B) the conversion value of $1.00 per share (the “Conversion Value”).  

(c)

Limitation on Conversion; Section 13(d) Compliance.  Notwithstanding any other provision hereof, in no event (except (i) as specifically provided herein as an exception  to this provision, or (ii) while there is outstanding a tender offer for any or all of the shares of the Company’s Common Stock) shall the holder be entitled to convert any portion of the Preferred Stock (and the Company shall not have the right or obligation to pay dividends hereon in shares of Common Stock) to the extent that, after such conversion or issuance of stock in payment of dividends, the sum of (1) the number of shares of Common Stock beneficially owned by the holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Preferred Stock or other convertible securities or of the unexercised portion of warrants or other rights to purchase Common Stock), and (2) the number of shares of Common Stock issuable upon the conversion of the Preferred Stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock (after taking into account the shares to be issued to the Holder upon such conversion).  For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, except as otherwise provided in clause (1) of such sentence.  The holder, by its acceptance of Preferred Stock, further agrees that if the holder transfers or assigns any of the Preferred Stock to a party who or which would not be considered such an affiliate, such assignment shall be made subject to the transferee’s or assignee’s specific agreement to be bound by the provisions of this Section 7(c) as if such transferee or assignee were the original holder thereof.  Nothing herein shall preclude the holder from disposing of a sufficient number of other shares of Common Stock beneficially owned by the holder so as to thereafter permit the continued conversion of Preferred Stock.

(d)

Mandatory Conversion.  All outstanding shares of Preferred Stock shall automatically convert into shares of Common Stock in accordance with this Section 7 in the event (i) the Company effects a transaction described in Section 7(k) in which the Company either (a) is not the surviving entity or (b) becomes the subsidiary of another entity (a “Major Transaction”), or (ii) in the event (a) a registration statement registering for resale under the Securities Act of 1933, as amended (the “Securities Act”) the shares of the Company’s Common Stock issuable upon conversion of the Preferred Stock (the “Registration Statement” and “Conversion Stock”, respectively) has been filed with the Securities and Exchange Commission and is in effect on the date of written notice of Mandatory Conversion is delivered to the holders of the Preferred Shares (b) there exists on the date of such written notice a public trading market for the Conversion Stock and such shares are listed for quotation on the NASDAQ Capital Market, the American Stock Exchange or the OTC Electronic Bulletin Board and (c) the public trading price of the Company’s Common Stock has equaled or exceeded 200% of the Conversion Price, as then in effect, for ten or more consecutive Trading Days immediately preceding the date of such notice.  On such occasion, the Company shall mail written notice within ten days following the satisfaction of all of the foregoing conditions to all holders of record of the Preferred Stock.  The Mandatory Conversion of the Preferred Stock shall be deemed effective on a date which is ten days following the date that written notice is sent to the holders.  Following the effective date of such Mandatory Conversion, then notwithstanding that the certificates evidencing any of the shares of Preferred Stock subject to such Mandatory Redemption shall not have been surrendered, the dividends with respect to such shares shall cease to accrue after the Mandatory Redemption Date and all rights with respect to such shares shall forthwith terminate, except only the right of the holders to receive shares of Common Stock.

(e)

Time of Conversion.  The right of conversion may be exercised by the holder at any time after the earlier of (i) 90 days from the date of issuance of the Preferred Stock or (ii) the effective date of the Registration Statement registering for sale under the Securities Act the shares of the Company’s Common Stock issuable upon such Conversion (the “Conversion”).

(f)

Notice of Optional Conversion.  The right of conversion shall be exercised by the holder thereof by giving written notice (the “Conversion Notice”) to the Company, by facsimile or by registered mail or overnight delivery service, with a copy by facsimile to the Company’s then transfer agent for its Common Stock, as designated by the Company from time to time, that the holder elects to convert a specified number of shares of Preferred Stock representing a specified Stated Value thereof into Common Stock and, if such conversion will result in the conversion of all of such holder’s shares of Preferred Stock, by surrender of a certificate or certificates for the shares so to be converted to the Company at its principal office (or such other office or agency of the Company as the Company may designate by notice in writing to the holders of the Preferred Stock) at any time during its usual business hours on the date 

set forth in the Conversion Notice, together with a statement of the name or names (with address) in which the certificate or certificates for shares of Common Stock shall be issued.  The Conversion Notice shall include therein the Stated Value of shares of Preferred Stock to be converted, and a calculation (i) of the amount of all accrued and unpaid dividends, (ii) the Conversion Price, and (iii) the number of shares of Common Stock to be issued in connection with such conversion.

(g)

Mechanics of Conversion.  Before any holder of Preferred Stock shall be entitled to convert the same into shares of Common Stock, he shall surrender the certificate or certificates therefor, duly endorsed, at the office of the Company or of any transfer agent for the Common Stock, and shall give written notice to the Company at such office that he elects to convert the same and shall state therein the number of shares of Preferred Stock being converted.  Thereupon the Company shall promptly issue and deliver at such office to such holder of Preferred Stock a certificate or certificates for the number of shares of Common Stock to which he shall be entitled.  Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock on such date.

(h)

Adjustment for Stock Splits and Combinations.  If the Company shall at any time or from time to time after the Original Issue Date for a series of the Preferred Stock effect a subdivision of the outstanding Common Stock, the Conversion Rate then in effect immediately before that subdivision shall be proportionately decreased, and conversely, if the Company shall at any time or from time to time after the Original Issue Date for a series of the Preferred Stock combine the outstanding shares of Common Stock, the Conversion Rate then in effect immediately before the combination shall be proportionately increased.  Any adjustment under this paragraph 7(h) shall become effective at the close of business on the date the subdivision or combination becomes effective.

(i)

Adjustment for Certain Dividends and Distributions.  In the event the Company at any time, or from time to time after the Original Issue Date for a series of Preferred Stock shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Conversion Price for such series of Preferred Stock then in effect shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Conversion Rate for such series of Preferred Stock then in effect by a fraction:

(1)

the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and

(2)

the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; provided, however, if such record date shall have been fixed and such dividend is not fully made on the date fixed therefor, the Conversion Rate for such series of Preferred Stock shall be recomputed accordingly as of the close of business on such record date and thereafter the Conversion Rate for such series of Preferred Stock shall be adjusted pursuant to this Paragraph 7(i) as of the time of actual payment of such dividends or distributions.

(j)

Adjustment for Reclassification, Exchange, or Substitution.  If the Common Stock issuable upon the conversion of the Preferred Stock shall be changed into the same or a different number of shares of any class or classes of stock, whether by capital reorganization, reclassification, or otherwise (other than a subdivision or combination of shares or stock dividend provided for above, or a reorganization, merger, consolidation, or sale of assets provided for elsewhere in this Paragraph 7), then and in each such event the holder of each share of Preferred Stock shall have the right thereafter to convert such share into the kind and amount of shares of stock and other securities and property receivable upon such reorganization, reclassification, or other change, by holders of the number of shares of Common Stock into which such shares of Preferred Stock might have been converted immediately prior to such reorganization, reclassification, or change, all subject to further adjustments as provided herein.

(k)

Reorganization, Mergers, Consolidations, or Sales of Assets.  If at any time or from time to time there shall be a capital reorganization of the Common Stock (other than a subdivision, combination, reclassification, or exchange of shares provided for elsewhere in this Paragraph 7) or a merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all of the company's assets to any other person, then, as a part of such reorganization, merger, consolidation, or sale, provision shall be made so that the holders of the Preferred Stock shall thereafter be entitled to receive upon conversion of the Preferred Stock, the number of shares of stock or other securities or property of the Company, or of the successor corporation resulting form such merger or consolidation or sale, to which a holder of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, merger, consolidation, or sale.  In any such case, appropriate adjustment shall be made in the application of the provisions of this Paragraph 7 with respect to the rights of the holders of the Preferred Stock after the reorganization, merger, consolidation, or sale to the end that the provisions of this Paragraph 7 (including adjustment of the Conversion Rate then in effect and the number of shares purchasable upon conversion of the Preferred Stock) shall be applicable after that event as nearly equivalent as may be practicable.

(l)

Notices of Record Date.  In the event of (i) any taking by the Company of a record of the holders of any class or series of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution or (ii) any reclassification or recapitalization of the capital stock of the Company, any merger or consolidation of the Company, or any transfer of all or substantially all of the assets of the Company to any other corporation, entity, or person, or any voluntary or involuntary dissolution, liquidation, or winding up of the Company, the Company shall mail to each holder of Preferred Stock at least thirty (30) days prior to the record date specified therein, a notice specifying (a) the date on which any such record is to be taken for the purpose of such dividend or distribution and a description of such dividend or distribution, (b) the date on which any such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation, or winding up is expected to become effective, and (c) the time, if any is to be fixed, as to when the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares of Common Stock (or other securities) for securities or other property deliverable upon such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation, or winding up.

(m)

Fractional Shares.  No fractional shares of Common Stock shall be issued upon conversion of Preferred Stock.  In lieu of any fractional shares to which the holder would otherwise be entitled, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of the Company's Common Stock on the date of conversion, as determined in good faith by the Board.

(n)

Reservation of Stock Issuable Upon Conversion.  The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the shares of the Preferred Stock, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of the Preferred Stock, and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Preferred Stock, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

(o)

Notices.  Any notice required by the provisions of this Paragraph 7 to be given to the holder of shares of the Preferred Stock shall be deemed given when personally delivered to such holder or five (5) business days after the same has been deposited in the United States mail, certified or registered mail, return receipt requested, postage prepaid, and addressed to each holder of record at his address appearing on the books of the Company.

(p)

Payment of Taxes.  The Company will pay all taxes and other governmental charges that may be imposed in respect of the issue or delivery of shares of Common Stock upon conversion of shares of Preferred Stock.

(q)

No Dilution or Impairment.  The Company shall not amend its Articles of Incorporation or participate in any reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, for the purpose of avoiding or seeking to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in carrying out all such action as may be reasonably necessary or appropriate in order to protect the conversion rights of the holders of the Preferred Stock against dilution or other impairment.

8.

No Preemptive Rights.

No holder of the Series D Preferred Stock of the Corporation shall be entitled, as of right, to purchase or subscribe for any part of the unissued stock of the Company or of any stock of the Company to be issued by reason of any increase of the authorized capital stock of the Company, or to purchase or subscribe for any bonds, certificates of indebtedness, debentures or other securities convertible into or carrying options or warrants to purchase stock or other securities of the Company or to purchase or subscribe for any stock of the Company purchased by the Company or by its nominee or nominees, or to have any other preemptive rights now or hereafter defined by the laws of the State of Utah.

9.

No Reissuance of Preferred Stock.

No share or shares of Preferred Stock acquired by the Company by reason of redemption, purchase, conversion, or otherwise shall be reissued, and all such shares shall be canceled, retired, and eliminated from the shares which the Company shall be authorized to issue.

10.

Protective Provisions.  

So long as at least fifty percent (50%) of the shares of Preferred Stock (as adjusted for stock splits, stock dividends or recapitalizations) are outstanding and have not been converted into Common Stock or redeemed by the Company, the Company shall not, without first obtaining the approval (by vote or written consent, as provided by law) of the holders of at least a majority of the then outstanding shares of Series D Preferred Stock, voting together as one class except where otherwise required by law:

(a)

amend or repeal any provision of the Company’s Articles of Incorporation or Bylaws if such action would alter or change in a manner adverse to the interest of holders of Series D Preferred Stock the designations, preferences and relative, 

participating, optional and other special rights, or the restrictions provided for the benefit of the Series D Preferred Stock;

(b)

authorize or issue shares of any class of stock having a preference over the Series D Preferred Stock with respect to dividends or assets; or

(c)

pay or declare any dividend on shares of Common Stock if current dividends on Preferred remain unpaid, except dividends solely in Common Stock.

11.

 Miscellaneous

(a)

Transfer of Series D Preferred Stock.  A holder may sell, transfer or otherwise dispose of all or any portion of the shares of Series D Preferred Stock to any person or entity as long as such sale, transfer or disposition is the subject of an effective registration statement under the Securities Act or such Holder delivers an opinion of counsel satisfactory to the Company, to the effect that such sale, transfer, or disposition is exempt from registration thereunder; provided that no such opinion shall be required in the event of a sale by such Holder to an affiliate thereof or if the Company shall waive said opinion requirement in its sole discretion.

(b)

Lost or Stolen Certificate.  Upon receipt by the Company of evidence of the loss, theft, destruction or mutilation of a certificate representing shares of Series D Preferred Stock, and (in the case of loss, theft or destruction) of indemnity or security reasonably satisfactory to the Company in its sole discretion, and upon surrender and cancellation or such certificate if mutilated, the Company shall execute and deliver to the Holder a new certificate identical in all respects to the original certificate.

(c)

Notices.  Except as otherwise specified herein, any notice, demand or request required or permitted to be given pursuant to the terms of this Certificate shall be in writing and shall be deemed given (i) when delivered personally or by verifiable facsimile transmission or by e-mail or other electronic transmission (with a hard copy to follow) on or before 5:00 p.m., Boulder, Colorado, U.S. time, on a business day or, if such day is not a business day, on the next succeeding business day, (ii) on the next business day after timely delivery to an overnight courier, (iii) if to the Company, on the third business day after deposit in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid), or, (iv) if to the Holder, when deposited in the U.S. mail (first class, certified or registered) addressed as follows:

If to the Company:

Global Casinos, Inc.

5455 Spine Road, Suite “C”

Boulder, CO  80301

Fax #:  (303) 527-2916

or such other address and facsimile number as the Company shall designate from time-to-time as its central office and main facsimile number; and

if to any Holder, 

to such address as shall be designated by such Holder in writing to the Company.

IN WITNESS WHEREOF, said GLOBAL CASINOS, INC., has caused this Certificate of Designations, Preferences and Rights of Series D Convertible Preferred Stock to be duly executed by its President and attested by its Secretary and has caused its corporate seal to be affixed hereto, this 14th  day of February, 2008.

GLOBAL CASINOS, INC.

By:/s/ Clifford L. Neuman_________

Clifford L. Neuman, President

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