Document:

ex10-31.htm

Exhibit 10.31

 

SUPPLEMENT

to the

Loan and Security Agreement

dated as of December 13, 2010

between

Insider Guides, Inc. (“Borrower”)

and

Venture Lending & Leasing V, Inc. (“VLL5”)

and

Venture Lending & Leasing VI, Inc. (“VLL6”)

(each of VLL4 and VLL5, as “Lender”)

This is a Supplement identified in the document entitled Loan and Security Agreement dated as of December 13, 2010 (as amended, restated, supplemented and modified from time to time, the “Loan and Security Agreement”), by and between Borrower and Lender.  All capitalized terms used in this Supplement and not otherwise defined in this Supplement have the meanings ascribed to them in Article 10 of the Loan and Security Agreement, which is incorporated in its entirety into this Supplement.  In the event of any inconsistency between the provisions of, or definitions in, that document and this Supplement, this Supplement is controlling.

The parties are entering into this single Supplement to the Loan and Security Agreement for convenience, and this Supplement is and shall be interpreted for all purposes as separate and distinct agreements between Borrower and VLL5, on the one hand, and Borrower and VLL6, on the other hand, and nothing in this Supplement shall be deemed a joint venture, partnership or other association between VLL5 and VLL6.  Each reference in this Supplement to “Lender” shall mean and refer to each of VLL5 and VLL6, singly and independent of one another.  Without limiting the generality of the foregoing, the Commitment, covenants and other obligations of “Lender” under the Loan and Security Agreement, as supplemented hereby, are several and not joint obligations of VLL5 and VLL6, and all rights and remedies of “Lender” under the Loan and Security Agreement, as supplemented hereby, may be exercised by VLL5 and/or VLL6 independently of one another.

In addition to the provisions of the Loan and Security Agreement, the parties agree as follows:

Part 1. - Additional Definitions:

“Commitment” means, as the context may require, the VLL5 Commitment or the VLL6 Commitment.  Each Lender’s Commitment is several and not joint with the Commitment of the other Lender.

“Designated Rate” means a fixed rate of interest per annum equal to the Prime Rate as published on the Business Day on which Lender prepares the Note for each Loan, plus five and three-quarters of one percent (5.75%); provided, however, that in no event shall the Designated Rate for any Loan be less than nine percent (9.00%).

“Eligible Equipment” means any (i) computer equipment, (ii) lab, shop and test equipment, (iii) office equipment, and (iv) other standard hardware acceptable to Lender, provided that none of the foregoing is subject to a license agreement between Borrower and any Person, and excluding any Soft Costs that are financed with the proceeds of a Soft Cost Loan.

“Equipment Loan” means any Loan requested by Borrower and funded by Lender under its Equipment Loan Commitment to finance Borrower’s acquisition or carrying of specific items of Eligible Equipment.

 

  

  

  

 

“Equipment Loan Commitment” means, as the context may require, the VLL5 Equipment Loan Commitment or the VLL6 Equipment Loan Commitment.  Each Lender’s Equipment Loan Commitment is several and not joint with the Equipment Loan Commitment of the other Lender.

“Final Payment”:   Each Equipment Loan shall have a Final Payment equal to 6.723% of the original principal amount of such Loan; and each Soft Cost Loan and each Growth Capital Loan shall have a Final Payment equal to 5.294% of the original principal amount of such Loan.

“Growth Capital Loan” means any Loan requested by Borrower and funded by Lender under its Growth Capital Loan Commitment for purposes of financing Borrower’s acquisitions.

“Growth Capital Loan Commitment” means, as the context may require, the VLL5 Growth Capital Loan Commitment or the VLL6 Growth Capital Loan Commitment.  Each Lender’s Growth Capital Loan Commitment is several and not joint with the Growth Capital Loan Commitment of the other Lender.

“Liquidity Event” means: (i) the closing of a merger, acquisition or other transaction in accordance with the provisions of Section 6.4 of the Loan and Security Agreement; (ii) the closing of a sale of all or substantially all of a Borrower’s assets in accordance with the provisions the Loan and Security Agreement; or (iii) the closing of a firmly underwritten public offering of Borrower’s securities either (A) pursuant to a registration statement filed on Form S-1 under the Securities Act of 1933, as amended or (B) on a foreign exchange.

“Loan” or “Loans” mean, as the context may require, individually an Equipment Loan, a Soft Cost Loan or a Growth Capital Loan, and collectively, the Equipment Loans, the Soft Cost Loans and the Growth Capital Loans.

“Prime Rate” means the “prime rate” of interest, as published from time to time by The Wall Street Journal in the “Money Rates” section of its Western Edition newspaper.

“Soft Cost Loan Sub-Commitment” means, as the context may require, the VLL5 Soft Cost Loan Sub-Commitment or the VLL6 Soft Cost Loan Sub-Commitment.  Each Lender’s Soft Cost Loan Sub-Commitment is several and not joint with the Soft Cost Loan Sub-Commitment of the other Lender

“Soft Costs” means Borrower’s costs of acquiring (i) custom-made or non-standard equipment (not otherwise approved by Lender as Eligible Equipment), (ii) tenant improvements at Borrower’s primary business premises, (iii) domain names, (iv) software, (v) sales tax, freight, maintenance and installation charges in respect of items of Eligible Equipment and (vi) other items of personal property approved by Lender that do not constitute Eligible Equipment.

“Termination Date” means the earlier of (i) the date Lender may terminate making Loans or extending other credit pursuant to the rights of Lender under Article 7 of the Loan and Security Agreement, or (ii)(A) with respect to the Equipment Loan Commitment, September 30, 2011, provided, however, that such date shall be extended from September 30, 2011 to December 31, 2011 with respect to the lesser of (x) 37.5% of the Commitment (i.e.,  $750,000 per Lender, for an aggregate commitment of $1,500,000) and (y) the then unfunded portion of Lender’s Equipment Loan Commitment, (B) with respect to the Growth Capital Loan Commitment, January 31, 2011.

“Threshold Amount”: Fifty Thousand Dollars ($50,000).

“VLL5 Commitment”:  Subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, VLL5 commits to make:

	
  

	
(i)

	
Equipment Loans to Borrower up to the aggregate original principal amount of Two Million Dollars ($2,000,000) (the “VLL5 Equipment Loan Commitment”);

 

  

  

  

 

	
  

	
(ii)

	
as a sub-facility of the VLL5 Equipment Loan Commitment, Soft Costs Loans to Borrower up to the aggregate original principal amount of Four Hundred Thousand Dollars ($400,000) (the “VLL5 Soft Cost Loan Sub-Commitment”); and

	
  

	
(iii)

	
Growth Capital Loans to Borrower up to the aggregate original principal amount of Two Hundred Fifty Thousand Dollars ($250,000) (the “VLL5 Growth Capital Loan Commitment”); provided, however, that the aggregate original principal amount of all Equipment Loans, the Soft Cost Loans and the Growth Capital Loans advanced to Borrower by VLL5 shall not exceed Two Million Dollars ($2,000,000).

“VLL6 Commitment”:  Subject to the terms and conditions set forth in the Loan and Security Agreement and this Supplement, VLL6 commits to make:

	
  

	
(i)

	
Equipment Loans to Borrower up to the aggregate original principal amount of Two Million Dollars ($2,000,000) (the “VLL6 Equipment Loan Commitment”)

	
  

	
(ii)

	
as a sub-facility of the VLL5 Equipment Loan Commitment, Soft Costs Loans to Borrower up to the aggregate original principal amount of Four Hundred Thousand Dollars ($400,000) (the “VLL6 Soft Cost Loan Sub-Commitment”); and

	
  

	
(iii)

	
Growth Capital Loans to Borrower up to the aggregate original principal amount of Two Hundred Fifty Thousand Dollars ($250,000) (the “VLL6 Growth Capital Loan Commitment”); provided, however, that the aggregate original principal amount of all Equipment Loans, the Soft Cost Loans and the Growth Capital Loans advanced to Borrower by VLL6 shall not exceed Two Million Dollars ($2,000,000).

Part 2. - Additional Covenants and Conditions:

 

 

1.           Equipment Loan Commitment; Soft Cost Loan Commitment; Use of Proceeds; Limitations on Equipment Loans and Soft Cost Loans.

(a)           Funding of Equipment Loans.  Subject to the terms and conditions of the Loan and Security Agreement and this Supplement, Lender agrees to make Equipment Loans to Borrower from time to time from the Closing Date up to and including the Termination Date in an aggregate original principal amount up to but not exceeding the lesser of (i) the then unfunded portion of its Equipment Loan Commitment, and (ii) an amount equal to 100% (the “Original Cost”) of the amount paid by Borrower to a manufacturer, vendor or dealer who is not an Affiliate of Borrower for each item of Eligible Equipment being financed with the proceeds of such Equipment Loan as shown on an invoice therefor (excluding (x) any commissions, (y) any portion of the amount invoiced which relates to servicing or maintenance of the Eligible Equipment, and (z) delivery, freight and installation charges or sales taxes payable upon acquisition, unless the amounts described in clauses (y) and (z) constitute Soft Costs that are being financed with the proceeds of a contemporaneous Soft Cost Loan).  Notwithstanding the foregoing, no item of Eligible Equipment shall be eligible to be financed with the proceeds of an Equipment Loan if such item was acquired or first placed in service by Borrower earlier than ninety (90) days prior to the Borrowing Date of such Equipment Loan; provided, however, that so long as the Borrowing Date of the initial Equipment Loan occurs on or before December 31, 2010, Borrower may finance Eligible Equipment acquired or first placed in service from September 1, 2010 at the Original Cost of such items (so long as the same have not been financed under the 2008 Loan Agreement).

 

  

  

  

 

(b)           Funding of Soft Cost Loans.  Subject to the terms and conditions of the Loan and Security Agreement and this Supplement, Lender agrees to make Soft Cost Loans to Borrower from time to time from the Closing Date up to and including the Termination Date in an aggregate original principal amount up to but not exceeding the lowest of (i) the then unfunded portion of its Equipment Loan Commitment, (ii) the then unfunded portion of its Soft Cost Loan Sub-Commitment, and (i) an amount equal the Original Cost of the amount paid by Borrower to a manufacturer, vendor or dealer who is not an Affiliate of Borrower for each Soft Cost being financed with the proceeds of such Soft Cost Loan as shown on an invoice therefor.  Notwithstanding the foregoing, no Soft Cost shall be eligible to be financed with the proceeds of a Soft Cost Loan if the same was expended, acquired or first placed in service by Borrower earlier than ninety (90) days prior to the Borrowing Date of such Soft Cost Loan; provided, however, that so long as the Borrowing Date of the initial Soft Cost Loan occurs on or before December 31, 2010, Borrower may finance Soft Costs expended, acquired or first placed in service from September 1, 2010 at the Original Cost of such items (so long as the same have not been financed under the 2008 Loan Agreement).

(c)           Location of Equipment and Soft Costs.  All Eligible Equipment and Soft Costs, if applicable, financed hereunder shall be located at all times at (i) Borrower’s place of business in New Hope, Pennsylvania, (ii) ReadyTechs, LLC’s place of business in Secaucus, New Jersey or (iii) other places of business located within the United States as may be consented to by Lender in writing.

(d)           Minimum Funding Amount.  Except to the extent the remaining Equipment Loan Commitment or Soft Cost Loan Sub-Commitment is a lesser amount, any Equipment Loans and Soft Cost Loans requested by Borrower to be made on a single Business Day shall be for a minimum aggregate principal amount of Fifty Thousand Dollars ($50,000).

2.           Growth Capital Loan Commitment; Funding of Growth Capital Loans.

(a)           Funding of Growth Capital Loans.  Subject to the terms and conditions of the Loan and Security Agreement and this Supplement, Lender agrees to make Growth Capital Loans to Borrower from time to time from the Closing Date up to and including the Termination Date in an aggregate original principal amount up to but not exceeding the then unfunded portion of its Growth Capital Loan Commitment.

(b)           Minimum Funding Amount.  Except to the extent the remaining Growth Capital Loan Commitment is a lesser amount, any Growth Capital Loans requested by Borrower to be made on a single Business Day shall be for a minimum aggregate principal amount of Fifty Thousand Dollars ($50,000).

3.           Maximum Number of Borrowing Requests.  Borrower shall not submit a Borrowing Request more frequently than once each calendar month, provided that a Borrowing Request may request that more than one type of Loan be funded pursuant to it.

4.           Repayment of Loans.  

(a)           Equipment Loans.  Principal of and interest on each Equipment Loan shall be payable as set forth in a Note (substantially in the form of Exhibit “A-1” hereto) evidencing such Equipment Loan, which Note shall provide substantially as follows:  principal and interest at the Designated Rate shall be fully amortized over a period of thirty six (36) months in equal, monthly installments.  In particular, on the Borrowing Date applicable to the Equipment Loan evidenced by such Note, Borrower shall pay to Lender (i) if the Borrowing Date is not the first day of the month, interest only at a rate equal to 1.00% per month, in advance, on the outstanding principal balance of the Loan evidenced by such Note, for the period from such Borrowing Date through the last day of the calendar month in which such Borrowing Date occurs, and (ii) the first (1st) amortization installment of principal and interest at the Designated Rate.  Commencing on the first day of the second full month after the Borrowing Date, and continuing on the first day of each consecutive calendar month thereafter, principal and interest at the Designated Rate shall be payable, in advance, in 35 equal consecutive installments in an amount sufficient to fully amortize the Loan evidenced by such Note.  The Final Payment on such Loan shall be due and payable on the same date that the last installment payment of principal and interest at the Designated Rate is due.

 

  

  

  

 

(b)           Soft Cost Loans and Growth Capital Loans.  Principal of and interest on each Soft Cost Loan and each Growth Capital Loan shall be payable as set forth in a Note (substantially in the form of Exhibit “A-2” hereto) evidencing such Loan, which Note shall provide substantially as follows:  principal and interest at the Designated Rate shall be fully amortized over a period of thirty (30) months in equal, monthly installments.  In particular, on the Borrowing Date applicable to the Equipment Loan evidenced by such Note, Borrower shall pay to Lender (i) if the Borrowing Date is not the first day of the month, interest only at a rate equal to 1.00% per month, in advance, on the outstanding principal balance of the Loan evidenced by such Note, for the period from such Borrowing Date through the last day of the calendar month in which such Borrowing Date occurs, and (ii) the first (1st) amortization installment of principal and interest at the Designated Rate.  Commencing on the first day of the second full month after the Borrowing Date, and continuing on the first day of each consecutive calendar month thereafter, principal and interest at the Designated Rate shall be payable, in advance, in 29 equal consecutive installments in an amount sufficient to fully amortize the Loan evidenced by such Note.  The Final Payment on such Loan shall be due and payable on the same date that the last installment payment of principal and interest at the Designated Rate is due.

5.           Prepayment.  No Loan funded pursuant to the Loan and Security Agreement and this Supplement may be voluntarily prepaid except as provided in this Section 5.

(a)           Voluntary Prepayment at any Time. Borrower may voluntarily prepay all, but not less than all, Loans funded pursuant to the Loan and Security Agreement and this Supplement in whole, but not in part, at any time by tendering to each Lender cash payment in respect of such Lender’s Loans in an amount equal to the sum of: (i) all accrued and unpaid interest on such Loans as of the date of prepayment; and (ii) an amount equal to the total amount of all scheduled but unpaid payments (including Final Payments) that would have accrued and been payable from the date of prepayment through the stated maturity of the Loans had they remained outstanding and been paid in accordance with the terms of the related Note(s).

 

 

(b)           Prepayment after Twelve Months of Amortization.  Notwithstanding anything to the contrary in Section 5(a), so long as no Event of Default has then occurred and is continuing, at any time after Borrower has made at least twelve (12) consecutive payments of principal and interest with respect to all Loans funded pursuant to the Loan and Security Agreement and this Supplement, Borrower may voluntarily prepay all, but not less than all, such Loans in whole but not in part, by tendering to each Lender cash payment in respect of such Lender’s Loans in an amount equal to the sum of:  (i) all accrued and unpaid interest on such Loans as of the date of prepayment; (ii) all outstanding principal balances of such Loans as of the date of prepayment; and (iii) an amount equal to eighty percent (80%) of all interest that would have accrued and been payable from the date of prepayment through the stated date of maturity of the Loans had they remained outstanding and been paid in accordance with the terms of the related Notes, in each case, as such amounts are determined by such Lender.  Borrower agrees that its right to prepay the Loans funded pursuant to the Loan and Security Agreement and this Supplement pursuant to this Section 5(b) shall not apply in connection with a Liquidity Event or at any time thereafter.

(c)           Prepayment after Eighteen Months of Amortization.  Notwithstanding anything to the contrary in Section 5(a), so long as no Event of Default has then occurred and is continuing, at any time after Borrower has made at least eighteen (18) consecutive payments of principal and interest with respect to all Loans funded pursuant to the Loan and Security Agreement and this Supplement, Borrower may voluntarily prepay all, but not less than all, such Loans in whole but not in part, by tendering to each Lender cash payment in respect of such Lender’s Loans in an amount equal to the sum of:  (i) all accrued and unpaid interest on such Loans as of the date of prepayment; (ii) all outstanding principal balances of such Loans as of the date of prepayment; and (iii) an amount equal to seventy percent (70%) of all interest that would have accrued and been payable from the date of prepayment through the stated date of maturity of the Loans had they remained outstanding and been paid in accordance with the terms of the related Notes, in each case, as such amounts are determined by such Lender.  Borrower agrees that its right to prepay the Loans funded pursuant to the Loan and Security Agreement and this Supplement pursuant to this Section 5(c) shall not apply in connection with a Liquidity Event or at any time thereafter.

 

  

  

  

 

(d)           Prepayment if Lender Fails or Refuses to Fund a Loan.  Notwithstanding anything to the contrary in Section 5(a), if prior to the Termination Date Borrower satisfies all of the conditions precedent with respect to the funding of a Loan and Lenders fail or refuse to make such Loan then Borrower may voluntarily prepay all, but not less than all, outstanding Loans funded pursuant to the Loan and Security Agreement and this Supplement in whole, but not in part, at any time from the date of such failure or refusal up to the date which is sixty (60) days thereafter by tendering to each Lender cash payment in respect of such Lender’s outstanding Loans in an amount equal to the sum of: (i) all accrued and unpaid interest on such outstanding Loans as of the date of prepayment; and (ii) all outstanding principal balances of such outstanding Loans as of the date of prepayment, in each case, as such amounts are reasonably determined by such Lender.

 

6.           Issuance of Warrants.  As additional consideration for the making of the VLL5 Commitment: VLL5 has earned and is entitled to receive immediately upon the execution of the Loan and Security Agreement and this Supplement, a warrant instrument issued by Borrower (the “VLL5 Warrant”); and (b) VLL6 has earned and is entitled to receive immediately upon the execution of the Loan and Security Agreement and this Supplement, a warrant instrument issued by Borrower (the “VLL6 Warrant” and together with the VLL5 Warrant, the “Warrants”).  The Warrants shall be substantially in the form of Exhibit “D” attached hereto.  Borrower acknowledges that:  (i) VLL5 has assigned its rights to receive the VLL5 Warrant to its parent, Venture Lending & Leasing V, LLC, and in connection therewith, Borrower shall issue the VLL5 Warrant directly to Venture Lending & Leasing V, LLC; and (ii) VLL6 has assigned its rights to receive the VLL6 Warrant to its parent, Venture Lending & Leasing VI, LLC, and in connection therewith, Borrower shall issue the VLL6 Warrant directly to Venture Lending & Leasing VI, LLC.  Lender shall furnish to Borrower a copy of the agreement in which such Lender assigned its Warrant to its parent.

7.           Payment of Commitment Fee.  As an additional condition precedent under Section 4.1 of the Loan and Security Agreement, Lender shall have completed to its satisfaction its due diligence review of Borrower's business and financial condition and prospects, and Lender’s investment committee shall have approved its Commitment.  If this condition is not satisfied, the Twenty Thousand Dollars ($20,000) commitment fee (the “Commitment Fee”) previously paid by Borrower shall be refunded.  VLL5 agrees that with respect to each Loan advanced under its Commitment, on the Borrowing Date applicable to such Loan, VLL5 shall credit against the payments due from Borrower on such date in respect of such Loan an amount equal to the product of Ten Thousand Dollars ($10,000) and a fraction the numerator of which is the principal amount of such Loan and the denominator of which is Two Million Dollars ($2,000,000), until the amount of such credits made by VLL5 equals but does not exceed Ten Thousand Dollars ($10,000); and VLL6 agrees that with respect to each Loan advanced under its Commitment, on the Borrowing Date applicable to such Loan, VLL6 shall credit against the payments due from Borrower on such date in respect of such Loan an amount equal to the product of Ten Thousand Dollars ($10,000) and a fraction the numerator of which is the principal amount of such Loan and the denominator of which is Two Million Dollars ($2,000,000), until the amount of such credits made by VLL6 equals but does not exceed Ten Thousand Dollars ($10,000).  Except as set forth in this Section 7, the Commitment Fee is not refundable.

8.           Documentation Fee Payment.  Pursuant to Section 9.8(a) of the Loan and Security Agreement, Borrower shall pay Lender, on demand, the total amount of Lender’s actual costs and expenses incurred in connection with the preparation and negotiation of the Loan Documents, including legal fees, plus actual filing fees incurred by Lender or its counsel related to perfection of the Liens granted under the Loan and Security Agreement.

9.           Borrower’s Account and Wire Transfer Instructions:

	
Institution Name

	
Comerica Bank

	
Address

	
226 Airport Parkway, Suite 100, M/C 4348

San Jose, CA 95110

	
ABA No.

	 
	
Contact Name

	
Brian Marshall

	
Phone No.

	
(617) 757-6343

	
E-mail

	
bjmarshall@comerica.com

	
Account Title

	
Insider Guides, Inc.

	
Account No.

	 

 

  

  

  

 

10.          Debits to Account for ACH Transfers.  For purposes of Section 2.2 and 5.10 of the Loan and Security Agreement, the Primary Operating Account shall be the bank account set forth in Section 9 above.  Borrower hereby agrees that Loans will be advanced to the account specified above and regularly scheduled payments of principal, interest and Final Payments will be automatically debited from the same account.

Part 3. - Additional Representations:

Borrower represents and warrants that as of the Closing Date and each Borrowing Date:

	
  

	
a)

	
Its chief executive office is located at:  280 Union Square Drive New Hope, PA 18938.

	
  

	
b)

	
Its Equipment is located at:  Equinix Operating Co., Inc., 275 Hartz Way, Secaucus, NJ 07094.

	
  

	
c)

	
Its Inventory is located at: 280 Union Square Drive New Hope, PA 18938.

	
  

	
d)

	
Its Records are located at:  280 Union Square Drive New Hope, PA 18938.

	
  

	
e)

	
In addition to its chief executive office, Borrower maintains offices or operates its business at the following locations:  132 W. 36th Street, 9th Floor, New York, NY  10018.

	
  

	
f)

	
Other than its current, full corporate name, Borrower has conducted business under the following corporate name(s), or using the following trade names or fictitious business names:  Myyearbook.com; Insider Guides, LLC.

	
  

	
g)

	
Borrower’s Delaware state corporation I.D. number is: 4242493.

	
  

	
h)

	
Borrower’s federal tax identification number is: 20-8303286.

	
  

	
i)

	
In addition to the Primary Operating Account identified in Section 9, Borrower maintains the following Deposit Accounts and investment/securities accounts:

	
Institution Name

	
Comerica Bank

	
Address

	
226 Airport Parkway, Suite 100, M/C 4348

San Jose, CA 95110

	
ABA No.

	  
	
Contact Name

	
Brian Marshall

	
Phone No.

	
(617) 757-6343

	
Email

	
bjmarshall@comerica.com

	
Account Title

	
Insider Guides, Inc.

	
Account No.

	  

 

  

  

  

 

Part 4. - Additional Loan Documents:

 

	
Forms of Promissory Notes 

	Exhibits “A-1” and “A-2”
	
Form of Borrowing Request 

	Exhibit “B”
	
Form of Compliance Certificate 

	Exhibit “C”
	
Form of Warrant 

	Exhibit “D”
	
Form of Legal Opinion 

	Exhibit “E”
	
Form of Landlord Waiver 

	Exhibit “F”
	
Form of Intellectual Property Security Agreement 

	Exhibit “G”

 

Remainder of this page intentionally left blank; signature page follows

 

  

  

  

 

[Signature page to Supplement]

IN WITNESS WHEREOF, the parties have executed this Supplement as of the date first above written.

 

	 	BORROWER:	 
	 	 	 	 
	 	
INSIDER GUIDES, INC.

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	Address for Notices:	280 Union Square Drive	 
	 	
New Hope. PA 18938

	 
	 	
Attn:

	 
	 	
Fax # 215-862-1655

	 
	 	
Phone #

	 

 

 

	 	
LENDER:

	 
	 	 	 	 
	 	
VENTURE LENDING & LEASING V, INC.

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Address for Notices:	2010 North First Street, Suite 310	 
	 	
San Jose, CA 95131

	 
	 	
Attn:  Chief Financial Officer

	 
	 	
Fax # 408-436-8625

	 
	 	
Phone # 408-436-8577

	 

 

 

	 	
LENDER:

	 
	 	 	 	 
	 	
VENTURE LENDING & LEASING VI, INC.

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Address for Notices:	2010 North First Street, Suite 310	 
	 	
San Jose, CA 95131

	 
	 	
Attn:  Chief Financial Officer

	 
	 	
Fax # 408-436-8625

	 
	 	
Phone # 408-436-8577EX10.14-GreenEmploymentAgmt

EXHIBIT 10.14

EXECUTIVE EMPLOYMENT AGREEMENT

This agreement (the “Agreement”) is entered into effective November 1, 2011 (the “Effective Date”), by and between FREDEREC CHARLES GREEN (the “Executive”) and DELEK US HOLDINGS, INC. (the “Company”), who, in return for the mutual promises set forth herein, agree as follows:

		
	1.
	Term.  The term of this Agreement (the “Term”) shall commence upon the Effective Date and expire on April 30, 2016 unless terminated earlier as provided for herein.

		
	2.
	Scope of Employment.  During the Term, the Company shall employ Executive and he shall render services to Company in the capacity as the Company's principal refining officer and with the title of Executive Vice President, or such other titles as may be established by the Company from time to time.  Executive shall devote his full time and best effort to the successful functioning of the Company's business and shall faithfully and industriously perform all duties pertaining to his position, including such additional duties as may be assigned from time to time, to the best of his ability, experience and talent.  Executive shall report directly to the Company's Chief Executive Officer and be subject at all times during the Term hereof to the direction and control of the Company in respect of the work to be done.

		
	3.
	Compensation.

		
	(a)
	Base Compensation / Contract Bonus.  During the Term, Executive's annual salary (the “Base Compensation”) during each Contract Year shall be no less than the annualized equivalent of $280,000, shall be no less than the base compensation paid to any of the Executive's subordinates and shall be payable at the same times and under the same conditions as salaries are paid to the Company's other employees.  In addition, in consideration of the terms and conditions of this Agreement, Company shall pay Executive a cash bonus of $140,000 within 30 days of his execution of this Agreement.  If the Executive terminates his employment with the Company within the first 12 months of the Term, he must repay the bonus less a prorated amount of such bonus equal to the period of employment since the Effective Date.

		
	(b)
	Annual Bonus.  If the Company's Board of Directors (or any applicable Committee thereof) awards Annual Bonuses to any officer of the Company during the Term, Executive shall be entitled to an Annual Bonus for such year between a threshold and maximum amount of 33% and 75% of Executive's Base Compensation rate at the end of the bonus year.  The Executive's Annual Bonus shall be payable between January 1 and March 15 of the year following the bonus year.  For purposes of this Agreement, an “Annual Bonus” shall mean a discretionary cash bonus, if any, awarded by the Company's Board of Directors (or any applicable Committee thereof) to employees generally in recognition of employees' service during the preceding fiscal year.

		
	(c)
	Equity-Based Compensation.  Upon the first of the Company's regularly scheduled quarterly grant dates for equity awards that occurs after the Executive's execution of this Agreement, Executive shall be awarded no less than 200,000 restricted stock units (“RSUs”) under the Company's 2006 Long-Term Incentive Plan (the “Plan”).  The award of RSUs under this paragraph shall vest as set forth below and shall be made upon such other terms and conditions applicable to RSU awards under the Plan as may be established from time to time by the Company's Board of Directors (or any applicable Committee thereof):

1

	
		
	Vesting Date
	RSUs Vesting

	June 10, 2012
	23,750

	September 10, 2012
	11,750

	December 10, 2012
	11,750

	March 10, 2013
	11,750

	June 10, 2013
	11,750

	September 10, 2013
	11,750

	December 10, 2013
	11,750

	March 10, 2014
	11,750

	June 10, 2014
	11,750

	September 10, 2014
	11,750

	December 10, 2014
	11,750

	March 10, 2015
	11,750

	June 10, 2015
	11,750

	September 10, 2015
	11,750

	December 10, 2015
	11,750

	March 10, 2016
	11,750

If a change in capitalization as contemplated by Section 7(a) of the Plan occurs prior to the grant of any equity compensation described in this Section 3(c), then, in addition to the adjustment of outstanding equity awards as contemplated by the Plan, the prospective grants made under this Section 3(c) shall also be adjusted.  Subject to the provisions of this Section 3(c), taxes incurred by the Executive on the 200,000 RSUs granted to him under this Section 3(c) will be reimbursed to him (but not grossed up) at his marginal tax rate, provided that, the maximum aggregate tax reimbursements to Executive as of each vesting date pursuant to this Section 3(c) (a “Vesting Date”) shall not exceed the aggregate amount that Executive would have received in tax reimbursements pursuant to this Section 3(c) if the fair market value of a share of the Company's common stock on the applicable Vesting Date and each previous Vesting Date were $13.00.

		
	(d)
	For avoidance of doubt and notwithstanding anything herein to the contrary, any taxes incurred by the Executive on the 15,000 RSUs granted to him on June 10, 2009 and scheduled to vest ratably on June 10, 2012 and June 10, 2013 will be grossed up and reimbursed at the Executive's marginal tax rate and shall not impact or be impacted by the provisions of this Section 3.

4.    Fringe Benefits / Reimbursement of Business Expenses.

		
	(a)
	General.  The Company shall make available, or cause to be made available to Executive, throughout the period of his employment hereunder, such benefits, as may be put into effect from time to time by the Company generally for other similarly situated employees.  The Company expressly reserves the right to modify such benefits available to Executive at any time provided that such modifications apply to other similarly situated employees.

		
	(b)
	Business Expenses.  Executive will be reimbursed for all reasonable out-of-pocket business, business entertainment and travel expenses paid by him, in accordance with and subject to applicable Company expense incurrence and reimbursement policies.

		
	(c)
	Other Benefits.  During the Term, the Company will (i) pay the reasonable costs of professional preparation of the Executive's personal income tax return(s) and (ii) pay the cost of Hebrew lessons of reasonable frequency and at reasonable times (which may be during business hours) for the Executive.  Perquisites and other personal benefits that are not integrally and directly related to the performance of the Executive's duties and confer a direct or indirect benefit upon him that has a personal aspect may be disclosed in public filings according to the regulations of the United States Securities and Exchange Commission (the “SEC”).

		
	5.
	Vacation Time / Sick Leave.  Executive will be granted 20 working days of vacation per calendar year.  Unused vacation will accrue and carry over into a new calendar year during the Term and the amount attributed to accrued and unused vacation will be paid to the Executive upon the termination of employment.  Vacation time shall be taken only after 

2

providing reasonable notice to the person to whom the Executive reports.  Executive will be provided with sick leave according to the Company's standard policies.

		
	6.
	Compliance With Company Policies.  Executive shall comply with and abide by all applicable Company policies and directives including, without limitation, the Company's Code of Business Conduct & Ethics, Supplemental Insider Trading Policy and Employee Handbook.  Company may, in its sole discretion, change, modify or adopt new policies and directives affecting the Executive's employment.  In the event of any conflict between the terms of this Agreement and Company's employment policies and directives, the terms of this Agreement will control.  The Executive acknowledges that the Company is currently subject to the reporting requirements of the SEC pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the continued listing requirements of the New York Stock Exchange, and other federal securities laws and regulations applicable to U.S. public companies.  As an employee of the Company, and, if he is determined to be an executive officer of the Company under Exchange Act Rule 16a-1(f), the Executive will, in such capacities, be required to comply with certain federal securities laws and regulations as well as certain Company policies designed to comply with such laws and regulations.

		
	7.
	Confidentiality.  Executive recognizes that during the course of his employment, he will be exposed to information or ideas of a confidential or proprietary nature which pertain to Company's business, financial, legal, marketing, administrative, personnel, technical or other functions or which constitute trade secrets (including, without limitation, specifications, designs, plans, drawings, software, data, prototypes, the identity of sources and markets, marketing information and strategies, business and financial plans and strategies, methods of doing business, data processing and technical systems, programs and practices, customers and users and their needs, sales history, financial health or material non-public information as defined under federal securities law) (collectively “Confidential Information”).  Confidential Information also includes such information of third parties which has been provided to Company in confidence.  All such information is deemed “confidential” or “proprietary” whether or not it is so marked, provided that it is maintained as confidential by the Company.  Information will not be considered Confidential Information to the extent that it is generally available to the public.  Nothing in this Section will prohibit the use or disclosure by Executive of knowledge that is in general use in the industry or general business knowledge, was known to him prior to his service to the Company or which enters the public domain other than through breach of this Agreement by Executive.  Executive may also disclose such information if required by court order or applicable law provided that he (a) gives Company reasonable advance written notice to allow the Company to seek a protective order or other appropriate remedy (except to the extent that his compliance with the foregoing would cause him to violate a court order or other legal requirement), (b) discloses only such information as is required by law, and (c) uses commercially reasonable efforts to obtain confidential treatment for any Confidential Information so disclosed.  During Executive's employment and for a period of three years thereafter, he shall hold Confidential Information in confidence, shall use it only in connection with the performance of his duties on behalf of the Company, shall restrict its disclosure to those directors, employees or independent contractors of the Company with a need to know, and shall not disclose, copy or use Confidential Information for the benefit of anyone other than the Company without the Company's prior written consent.  Executive shall, upon Company's request or his termination of employment, return to the Company any and all written documents containing Confidential Information in his possession, custody or control.

		
	8.
	Restrictive Covenants.

		
	(a)
	Non-Competition.

		
	(i)
	In consideration of the Confidential Information provided to the Executive and the other benefits provided to him pursuant to this Agreement, Executive agrees that, if his employment ends during the Term, then during a six month Non-Compete Period (as defined below), he will not, without the prior written consent of the Company (which shall not be unreasonably withheld), directly or indirectly, either as an individual or as an employee, officer, director, shareholder, partner, equity participant, sole proprietor, independent contractor, consultant or in any other capacity conduct any business, or assist any person in conducting any business, that is directly in competition with the Company's Business (as defined below) in the Territory (as defined below).  It is expressly agreed and understood that this restriction is not intended to and shall not prevent Executive from employment or other engagement by a person or entity that competes with Company's Business as long as he does not personally compete or assist such person or entity in such restricted competition.  The terms of this Section 8(a) shall not apply to the ownership by Executive of less than 5% of a class of equity securities of an entity, which securities are publicly traded on any national securities exchange.

		
	(ii)
	For any termination except for a termination by the Company for Cause, the “Non-Compete Period” 

3

shall commence upon the date that notice of termination of employment is delivered or deemed delivered under the notice provisions of this Agreement, it being acknowledged and agreed that the Non-Compete Period may commence to run, or even completely run, during a period of time during which the Executive remains employed by the Company (assuming that he continues to be so employed after the delivery of such notice of termination).  In the event of a termination by the Company for Cause, the Non-Compete Period shall commence upon the date that Executive's employment with the Company ends.

		
	(iii)
	For purposes of this Section 8(a), the “Company's Business” means the businesses conducted by the Company or its subsidiaries at the time of the termination of the Executive's employment over which he has primary responsibility at the time of the termination of his employment (it being agreed and understood that other aspects of the businesses conducted by the Company or its subsidiaries is not within such definition).  The parties acknowledge that, at the time of the execution of this Agreement, the Executive is primarily involved only in the Company's petroleum refining business.

		
	(iv)
	For purposes of Section 8(a), the “Territory” shall mean the following geographic areas as of the commencement of the Non-Compete Period (A) a 75 mile radius from any of the Company's refining facilities, (B) a 75 mile radius from any of the Company's wholesale refined products distribution facilities and (C) a 50 mile radius from any of the Company's retail fuel and/or convenience merchandise facilities.

		
	(b)
	Non-Interference with Commercial Relationships.  During the Executive's employment with the Company, and for a period of six months thereafter, Executive will not, directly or indirectly, either as an individual or as an employee, officer, director, shareholder, partner, equity participant, sole proprietor, independent contractor, consultant or in any other capacity whatsoever approach or solicit any customer or vendor of Company for the purpose of causing, directly or indirectly, any such customer or vendor to cease doing business with the Company or its affiliates.  The foregoing covenant shall be in addition to any other covenants or agreements to which the Executive may be subject.

		
	(c)
	Non-Interference with Employment Relationships.  During the Executive's employment with the Company, and for a period of one year thereafter, Executive shall not, without the Company's prior written consent, directly or indirectly: (i) induce or attempt to induce any Company employee to terminate his/her employment with the Company; or (ii) interfere with or disrupt the Company's relationship with any of its employees or independent contractors.  The foregoing does not prohibit the Executive (personally or as an employee, officer, director, shareholder, partner, equity participant, sole proprietor, independent contractor, consultant or in any other capacity) from hiring or employing an individual that contacts the Executive on his/her own initiative without any direct or indirect solicitation by the Executive other than customary forms of general solicitation such as newspaper advertisements or internet postings.

		
	(d)
	It is understood and agreed that the scope of each of the covenants contained in this Section 8 is reasonable as to time, area, and persons and is necessary to protect the legitimate business interest of the Company.  It is further agreed that such covenants will be regarded as divisible and will be operative as to time, area and persons to the extent that they may be so operative.

		
	9.
	Copyright, Inventions, Patents.  The Company shall have all right, title and interest to all features (including, without limitation, graphic designs, copyrights, trademarks and patents) created during the course of the Executive's employment with the Company.  The Executive hereby assigns to Company all copyright ownership and rights to any work developed by him and reduced to practice for or on behalf of the Company or which relate to the Company's business during the course of the employment relationship.  At the Company's expense and for a period of three years following the termination of his employment, the Executive shall reasonably assist or support the Company to obtain, maintain, and assert its rights in such work including, without limitation, the giving of evidence in suits and proceedings, and the furnishing and/or assigning of all documentation and other materials relative to the Company's intellectual property rights.

		
	10.
	Termination of Employment.

		
	(a)
	Termination By Company For Cause.  The Company may immediately terminate this Agreement and/or the Executive's employment at any time for Cause.  Upon any such termination, the Company shall be under no further obligation to the Executive hereunder except as otherwise required by law, and the Company will reserve all further rights and remedies available to it at law or in equity.

4

		
	(b)
	Termination At-Will By Company.  Subject to the provisions of Section 10(d) below, the Company may terminate this Agreement and/or the Executive's employment at any time and for any reason provided that, if the termination is other than for Cause, the Executive shall be entitled to receive (i) his Base Compensation through the termination date (ii) the Post-Employment Annual Bonus, if any, (iii) all accrued benefits through the termination date (and to the extent required by law), (iv) the Severance Payment, (v) the costs of continuing health insurance coverage under COBRA for a period of six months following termination of employment, provided, that the Company shall pay such amounts to the applicable provider and (vi) Accelerated Vesting upon termination.  This provision shall not apply if the Executive is terminated by reason of death or Disability.

		
	(c)
	Termination At-Will By Executive.  The Executive may terminate this Agreement (and Executive's employment hereunder) at any time and for any reason.  If the Executive terminates this Agreement and his employment hereunder during the Term, the Executive must provide the Company with advance written notice of termination equal to the lesser of six months or the balance of the Term.

		
	(i)
	If the Executive terminates his employment during the Term and provides the required advance written notice, the Executive shall be entitled to the Severance Payment upon termination.

		
	(ii)
	In the event that the Executive terminates his employment during the Term without providing the required advance written notice, he shall not be entitled to the Severance Payment and shall receive compensation only in the manner stated in Section 10(a).  In addition, the Company shall be entitled to a buy-out payment equal to the Executive's Base Compensation during the required notice period less an amount equal to the amount of any of Base Compensation actually earned by him during the period of advance notice provided, if any.  The payments described in this Section 10(c)(ii) shall not represent full liquidated damages for the Executive's breach of the advance notice provisions of this Section 10(c) and the Company reserves all other remedies available at law or in equity for such breach.

		
	(iii)
	If the Executive fails to render services to the Company in a diligent and good faith manner after the delivery of notice of termination during the Term, and continues or repeats such failure after receiving written notice of same, the Company may immediately terminate his employment and the Company will be immediately entitled to the buy-out payment described in Section 10(c)(ii) upon such termination.  This Section 10(c) shall not apply if the Executive is terminated by reason of death or Disability.

		
	(d)
	Accelerated Termination After Notice.  Nothing herein shall limit the Company's right to terminate this Agreement and/or the Executive's employment after the Company receives notice of termination from him.  However, if the Company receives notice of termination from the Executive and then terminates this Agreement and/or his employment for any reason other than for Cause, his employment shall terminate on (and post-employment provisions of Sections 7, 8(b), 8(c) and 9 shall be effective from) the date established by the Company but he shall be entitled to such compensation, bonuses, vesting and other benefits as if his termination had been effective on the earlier of (i) the termination date specified in his notice of termination or (ii) six months following the his notice of termination.

		
	(e)
	Separation Release.  Notwithstanding anything to the contrary, but subject to any applicable six-month delay required by Section 18 hereof and Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), if a Severance Payment is otherwise payable to the Executive hereunder, payment of such Severance Payment shall be payable in cash to him at the end of the month following the month in which his separation from service (within the meaning of Section 409A) occurs, provided, however, that, his right to receive the Severance Payment shall be conditioned upon (i) his execution and delivery to the Company of a Separation Release (and the expiration of any statutorily mandated revocation period) within 30 days following the separation from service date and (ii) his continued compliance with this Agreement and any other restrictive covenants to which he is bound.  If the Executive fails to timely execute and deliver the Separation Release or if he timely revokes his acceptance of the Separation Release thereafter (if such revocation is permitted), he shall not be entitled to the Severance Payment and shall repay any Severance Payment received.

		
	(f)
	Definitions.  The following terms shall have the following meanings as used in this Agreement:

		
	(i)
	“Accelerated Vesting” means the immediate vesting of all unvested equity awards granted under the Plan but only to the extent that the award would have vested if employment had continued during a period equal to the lesser of (A) six months following termination of employment or (B) the balance 

5

of the Term.

		
	(ii)
	“Cause” means the Executive's: (A) fraud, gross negligence or willful misconduct involving the Company or its affiliates, (B) conviction of, or plea of nolo contendere to, a felony or crime involving moral turpitude or (C) deliberate and continual refusal to perform his duties in any material respect on substantially a full-time basis or to act in accordance with any specific and lawful instruction of his supervisor provided that Executive has been given written notice of such conduct and such conduct is not cured within 30 days thereafter.

		
	(iii)
	“Disability” means the inability of the Executive to perform the customary duties of his employment or other service with the Company or its affiliates by reason of a physical or mental incapacity or illness which is expected to result in death or to be of indefinite duration, as determined by a duly licensed physician selected by the Company. 

		
	(iv)
	“Post-Employment Annual Bonus” shall mean the Annual Bonus to which the Executive would have otherwise been entitled if his employment had continued through the end of the bonus year, prorated for the period of actual employment during the bonus year, and paid upon the payment of the Annual Bonus for all other employees.

		
	(v)
	“Separation Release” means a general release of claims against the Company (and its subsidiaries and affiliates) in a form reasonably satisfactory to the Executive and the Company that pertains to all claims related to the Executive's employment and the termination of his employment and that contains appropriate anti-disparagement and continuing confidentiality covenants.

		
	(vi)
	“Severance Payment” shall mean an amount equal to 50% of the Executive's Base Compensation as in effect immediately before any notice of termination payable in a cash lump sum pursuant to Section 10(e).  The Executive shall have no responsibility for mitigating the amount of any payment provided for herein by seeking other employment or otherwise, and any such payment will not be reduced in the event such other employment is obtained.

		
	11.
	Survival of Terms.  The provisions of Sections 7, 8(b), 8(c), 9 and 10 shall survive the termination or expiration of this Agreement and will continue in effect following the termination of the Executive's employment for the periods described therein.  The provisions of Section 8(a) shall survive the termination (but not the expiration) of this Agreement.

		
	12.
	Assignment.  This Agreement shall not be assignable by either party without the written consent of the other party except that the Company may assign this Agreement to a subsidiary or affiliate of the Company.  Any failure by the Company to assign this Agreement to an unaffiliated third party successor upon the Company's sale or transfer of all or substantially all of its business will be considered the termination of the Executive's employment at-will by the Company effective upon the earlier of the Company's notice to him that this Agreement will not be assigned to the successor or the closing of the applicable transaction without an assignment to the successor.  Any failure by the Executive to consent to the assignment of this Agreement to such unaffiliated third party successor will be considered the termination of his employment at-will effective upon the earlier of his notice to the Company that he will not consent to the assignment of this Agreement or the closing of the applicable transaction without any assignment to the successor.

		
	13.
	No Inducement / Agreement Voluntary.  Executive represents that (a) he has not been pressured, misled, or induced to enter into this Agreement based upon any representation by Company or its agents not contained herein, (b) he has entered into this Agreement voluntarily, after having the opportunity to consult with representatives of his own choosing and (c) his assent is freely given.

		
	14.
	Interpretation.  Any Section, phrase or other provision of this Agreement that is determined by a court, arbitrator or arbitration panel of competent jurisdiction to be unreasonable or in conflict with any applicable statute or rule, shall be deemed, if possible, to be modified or altered so that it is not unreasonable or in conflict or, if that is not possible, then it shall be deemed omitted from this Agreement.  The invalidity of any portion of this Agreement shall not affect the validity of the remaining portions.  Unless expressly stated to the contrary, all references to “days” in this Agreement shall mean calendar days.

		
	15.
	Prior Agreements / Amendments.  This Agreement revokes and supersedes all prior agreements pertaining to the subject matter herein, whether written and oral, including, without limitation, the “Executive Employment Agreement” between the parties dated May 1, 2009 and the “409A Addendum” between the parties dated May 25, 2010.  This Agreement 

6

represents the entire agreement between the parties in relation to the employment of the Executive by the Company on, and subsequent to the Effective Date, but shall not nullify or otherwise affect any prior equity awards granted to the Executive.  This Agreement shall not be subject to modification or amendment by any oral representation, or any written statement by either party, except for a dated writing signed by the Executive and the Company.

		
	16.
	Notices.  All notices of any kind to be delivered in connection with this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered or if sent by nationally-recognized overnight courier (e.g., FedEx, UPS, DHL, etc.) or by registered or certified mail, return receipt requested and postage prepaid, addressed to the Company at 7102 Commerce Way, Brentwood, Tennessee 37027, Attn: Vice President / Human Resources, CC: General Counsel, to the Executive at his then-existing payroll address, or to such other address as the party to whom notice is to be given may have furnished to the other in writing in accordance with the provisions of this Section.  Any such notice or communication shall be deemed to have been received: (a) if by personal delivery or nationally-recognized overnight courier, on the date of such delivery and (b) if by registered or certified mail, on the third postal service day following the date postmarked.

		
	17.
	Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee without giving effect to its principles of conflicts of law.  The state and federal courts for Davidson County, Tennessee shall be the exclusive venue for any litigation based in significant part upon this Agreement.

		
	18.
	Section 409A.

		
	(a)
	It is intended that (i) each installment of the payments provided under this Agreement is a separate “payment” for purposes of Section 409A and (ii) the payments satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(9)(iii) and 1.409A-1(b)(9)(v).

		
	(b)
	Notwithstanding anything to the contrary in this Agreement, if the Company determines (i) that on the date his employment with the Company terminates or at such other time that the Company determines to be relevant, the Executive is a “specified employee” (as such term is defined under Treasury Regulation 1.409A-1(i)(1)) of the Company and (ii) that any payments to be provided to him pursuant to this Agreement are or may become subject to the additional tax under Section 409A(a)(1)(B) or any other taxes or penalties imposed under Section 409A if provided at the time otherwise required under this Agreement, then such payments shall be delayed until the date that is six months after the date of his “separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) with the Company, or, if earlier, the date of his death.  Any payments delayed pursuant to this Section shall be made in a lump sum on the first business day of the seventh month following the Executive's “separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)), or, if earlier, the date of his death.

		
	(c)
	In addition, to the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates during the term of his employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A, (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), and (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.

In witness whereof, the parties have executed this Agreement as of the date set forth above.

COMPANY:  DELEK US HOLDINGS, INC.                EXECUTIVE:

/s/ Mark B. Cox                                /s/ Frederec C. Green                
By:    Mark B. Cox                            FREDEREC C. GREEN
Title:    CFO

/s/ Kent B. Thomas                
By:    Kent B. Thomas
Title:    General Counsel / Secretary

7

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