Document:

EX-10.5

 Exhibit 10.5 

EXECUTION VERSION 

FORBEARANCE WITH RESPECT TO MSFTA 

This Forbearance with respect to MSFTA, dated as of the Effective Date (as defined below) (this “Forbearance”), is entered
into DITECH FINANCIAL LLC (“Ditech”) and NOMURA SECURITIES INTERNATIONAL, INC. (“Nomura”). 
 RECITALS 

WHEREAS, Ditech and Nomura are parties to that certain Master Securities Forward Transaction Agreement, dated as of May 20, 2013, between
Nomura and Ditech, as amended, restated, supplemented or otherwise modified as of the Effective Date (the “MSFTA”); 

WHEREAS, Ditech may file a petition to commence a case under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the
Southern District of New York (to the extent commenced on or prior to February 11, 2019, the “Specified Proceeding,” and the date of such filing commencing the Specified Proceeding, the “Petition Date”); the
Specified Proceeding, together with any other default, event of default, notice of default, acceleration event or similar event under instruments governing Indebtedness or other contracts of Ditech or any of its Affiliates solely resulting from the
foregoing, the “Specified Events” ; and 
 WHEREAS, the parties hereto have agreed to enter into this Forbearance subject
to and on the terms set forth herein. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the MSFTA. 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: 
 Section 1. Forbearances. 

(a) Nomura acknowledges and agrees that as of the Effective Date (as defined below) and until the termination of this Forbearance pursuant to
Section 3, and notwithstanding anything to the contrary in the MSFTA (but subject to Sections 1(b), 3 and 4 hereof): 

(i) it shall not foreclose on property, liquidate collateral, or otherwise commence the exercise of remedies with respect to
any property, funds, or collateral held or owned pursuant to the MSFTA, solely based upon any Specified Event; and 
 (ii) it
shall not close-out any Transactions (as defined in the MSFTA) with Ditech that would otherwise remain outstanding under the MSFTA (as modified by the terms of this Forbearance), solely based upon any
Specified Event. 
 (b) Notwithstanding anything to the contrary herein, from and after the Effective Date and until the termination of this
Forbearance pursuant to Section 3, the parties under the MSFTA shall not enter into any Transaction (as defined in the MSFTA) under the MSFTA. 

 Section 2. Conditions to Effectiveness of Forbearance. This Forbearance shall
become effective as of 11:59 p.m. (EST) on February 8, 2019 (the “Effective Date”) upon the Buyers having received this Forbearance executed and delivered by the parties hereto. 

Section 3. Termination. This Forbearance shall terminate and the waivers herein shall be void, in each case, automatically,
immediately and without further action upon the earliest to occur of the following, it being expressly agreed that the effect of such termination will be to permit Nomura to exercise any rights, remedies, powers and privileges it may have
immediately: 
 (a) 11:59 p.m. (EST) on February 11, 2019, if the Petition Date has not occurred on or prior to such time; 

(b) 11:59 pm (EST) on the fifth (5th) Business Day following the Petition Date; or 

(c) the failure to the file by 11:59 p.m. (EST) on the Petition Date a motion (a “DIP Motion”) with the United States
Bankruptcy Court for the Southern District of New York seeking entry of an interim DIP financing and cash collateral order in form and substance agreed to by Ditech and Nomura in connection with the Specified Proceeding; 

provided that Sections 4, 6, 7, and 8, shall survive, notwithstanding such termination. 

Section 4. Reservation of Rights; Effect and Construction of Agreement. 

(a) Except as expressly provided for in Section 1 of this Forbearance, (i) the MSFTA shall continue to be, and
shall remain, in full force and effect in accordance with its terms, (ii) nothing in this Forbearance and no delay or failure of Nomura in exercising (or any single or partial exercise of) any right, remedy, power or privilege pursuant to the
MSFTA should, or shall, be construed as a waiver of, or otherwise preclude any other or further exercise of, any of its rights, remedies, powers or privileges under the MSFTA, and (iii) Nomura reserves, and has not waived, its rights to
exercise, in its sole discretion, any or all of its rights, remedies, powers and privileges under the MSFTA. 
 (b) This Forbearance shall
not be construed to impair the validity, perfection, or priority of any lien, encumbrance or security interest securing any obligations under the MSFTA. Except to the extent expressly provided in Section 1, the terms and
conditions of the MSFTA shall remain unchanged and in full force and effect, and Nomura expressly reserves the right to require strict compliance with the terms of the MSFTA. Each party hereto acknowledges that the terms of this Forbearance shall
not constitute a course of dealing among any of the persons or entities party hereto. The forbearance set forth in Section 1 shall be limited precisely as written and relate solely to the Specified Proceeding in the manner
and to the extent described in Section 1. 
 (c) In entering into this Forbearance, Ditech acknowledges that it is
relying on no statement, representation, warranty, covenant, or agreement of any kind made by Nomura, except for the agreements of Nomura expressly set forth herein. 

(d) This Forbearance constitutes the entire agreement between the parties hereto relating to the subject matter hereof, and supersedes any
prior oral or written proposals, negotiations, agreements, and understandings relating to such subject matter. 

  
 - 2 - 

 (e) This Forbearance does not constitute an acknowledgement by Ditech or any of their
Affiliates that the Specified Events will occur or would result in a default, event of default, acceleration event, amortization event or other similar event under the MSFTA, and Ditech reserves all of its rights under the MSFTA in connection
therewith. 
 Section 5. Counterparts. This Forbearance may be executed in any number of counterparts and by different parties
hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument. Delivery of an executed counterpart of a signature page of
this Forbearance by facsimile or any other electronic transmission shall be effective as delivery of a manually executed counterpart hereof. 

Section 6. Applicable Law; Jurisdiction; Waiver of Jury Trial.  

(a) THIS FORBEARANCE, AND ALL MATTERS ARISING OUT OF OR RELATING TO THIS FORBEARANCE, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE INTERNAL LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAW.  

Section 7. Headings. The headings of this Forbearance are for purposes of reference only and shall not limit or otherwise affect
the meaning hereof. 
 Section 8. Benefit of Agreement. This Forbearance shall be binding upon and inure to the benefit of and
be enforceable by the parties hereto, their respective successors and permitted assigns. No other Person shall be entitled to claim any right or benefit hereunder, including, without limitation, the status of a third-party beneficiary of this
Forbearance. 
 [Remainder of page intentionally left blank.] 

  
 - 3 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Forbearance to be executed and
delivered by their respective duly authorized signatories as of the date first above written. 
  

			
	NOMURA SECURITIES INTERNATIONAL, INC. 
		
	By:	 	 /s/ Vincent Primiano

		 	Name: Vincent Primiano
		 	Title: Managing Director
	
	DITECH FINANCIAL LLC
		
	By:	 	 /s/ Joanna Colaneri

		 	Name: Joanna Colaneri
		 	Title: Senior Vice President and Treasurer

 [SIGNATURE PAGE TO FORBEARANCE]Exhibit

CORE LABORATORIES N.V.
2014 LONG-TERM INCENTIVE PLAN
(As Amended and Restated Effective as of May 13, 2014)

Performance Share Award
Restricted Share Agreement

(ROIC Based)

THIS AGREEMENT is made as of between Core Laboratories N.V., a Dutch limited liability company (the “Company”), and ____________  (“Participant”) in order to carry out the purposes of the Core Laboratories N.V. 2014 Long-Term Incentive Plan as amended (the “Plan”), by issuing Participant unfunded and unsecured rights to acquire shares of common stock of the Company, subject to certain restrictions, and in consideration of the mutual agreements and other matters set forth herein and in the Plan, the Company and Participant hereby agree as follows:

I.  Definitions

1.1  Definitions
Wherever used in this Agreement, the following words and phrases when capitalized will have the meanings ascribed below, unless the context clearly indicates to the contrary, and all other capitalized terms used in this Agreement, which are not defined below, will have the meanings set forth in the Plan.
(1)    “Agreement” means this Performance Share Award Restricted Share Agreement (ROIC Based) between Participant and the Company.
(2)    “Date of Grant” means, with respect to each grant of Restricted Performance Shares, the applicable Date of Grant set forth on Appendix A of this Agreement.
(3)    “Forfeiture Restrictions” means the Forfeiture Restrictions as set forth in Section 3.1 herein.
(4)    “Good Status” shall mean that there has been no determination (whether orally or in writing, provided that if such determination is oral it shall within thirty (30) days be reduced to writing) by a senior executive officer of the Company that Participant (a) has engaged in gross negligence or willful misconduct in the performance of his or her duties with respect to the Company or any of its subsidiaries (whether or not majority owned directly or indirectly by the Company), (b) has been indicted on a misdemeanor involving moral turpitude or a felony (or a crime of similar import in a foreign jurisdiction), (c) has willfully refused without proper legal reason to perform his or her duties and responsibilities to the Company or any such subsidiary faithfully and to the best of his or her abilities, (d) has breached any material provision of a written employment agreement or corporate policy or code of conduct established by the Company or any such subsidiary, (e) has willfully engaged in conduct that he or she knows or should know is injurious to the Company or any such subsidiary, (f) has failed to meet the performance objectives or standards established for his or her job position by his or her employer, or (g) has violated the United States Foreign Corrupt Practices Act, generally codified in 15 U.S.C. § 78, as amended, or other applicable laws (whether domestic or foreign).  For purposes of clause (d) of the preceding sentence, a breach of a material provision of a written 

employment agreement or corporate policy or code of conduct shall include, but not be limited to, any breach that results in Participant’s Termination of Service.
(5)    “Peer Group” means that group of Companies tracked by Bloomberg as being in the same category as the Company.
(6)    “Performance Criteria” means that the Restricted Performance Shares will vest to the extent the  Company’s Return on Invested Capital meets the criteria described in Appendix A to this Agreement at the end of the Performance Period, as published by Bloomberg at the close of the NYSE market on the last day of the Performance Period.
(7)    “Performance Period” means, with respect to each grant of Restricted Performance Shares, the three-year period commencing in January 1, 2017 and ending on Tuesday, December 31, 2019, the last NYSE trading day of the year.
(8)    "Retirement" means voluntary termination of employment by the Participant on or after age 62.
(9)    “Restricted Performance Shares” means the right to acquire Common Shares issued in Participant’s name pursuant to this Agreement, subject to the Forfeiture Restrictions, and as the context may require, any such Common Shares so issued in Participant’s name.
(10)    “Return on Invested Capital” means net operating profit after tax divided by total invested capital.
(11)    “Service” means Participant’s status as an employee in Good Status with the Company or a Subsidiary or a corporation or parent or subsidiary of such corporation assuming or substituting the Restricted Performance Shares.
(12)    “Termination of Service” means a Participant who is employed but not in Good Status or Participant’s separation from service with the Company and its affiliates within the meaning of section 409A(a)(2)(A)(i) of the Code (and applicable administrative guidance thereunder).
(13)    “Vest” means the lapse of the Forfeiture Restrictions with respect to all or a portion of the Restricted Performance Shares.
1.2  Number and Gender
Wherever appropriate herein, words used in the singular will be considered to include the plural, and words used in the plural will be considered to include the singular.  The masculine gender, where appearing herein, will be deemed to include the feminine gender where appropriate.
1.3  Headings of Articles and Sections
The headings of Articles and Sections herein are included solely for convenience.  If there is any conflict between such headings and the text of this Agreement, the text will control.  All references to Articles, Sections, and Paragraphs are to this document unless otherwise indicated.

II.  Award of Restricted Performance Shares

2.1  Award of Restricted Performance Shares
Effective as of the Date of Grant, the Company awards to Participant the right to receive, after and to the extent the Forfeiture Restrictions lapse, the number of Common Shares set forth on Appendix A of this Agreement, subject to certain restrictions and shall be herein referred to as the “Restricted Performance 

Shares.”  The rights awarded to Participant pursuant to this Agreement are unsecured and unfunded rights to receive the Restricted Performance Shares, which rights shall be subject to the terms, conditions, and restrictions set forth in this Agreement and the Plan.  Participant hereby accepts the Restricted Performance Shares and agrees with respect thereto to the terms and conditions set forth in this Agreement and the Plan.
2.2  Subsequent Awards
In the sole discretion of the Company, subsequent grants of Restricted Performance Shares to Participant, if any, may be evidenced by amending Appendix A of this Agreement to reflect such subsequent grant.  Any such subsequent grant of Restricted Performance Shares shall be issued upon acceptance by Participant and upon satisfaction of the conditions of this Agreement and the Plan.  Participant shall accept any such subsequent grant of Restricted Performance Shares when issued and agrees with respect thereto to the terms and conditions set forth in this Agreement and the Plan.  Regardless of the number of subsequent grants of Restricted Performance Shares, if any, evidenced by this Agreement, this Agreement shall be interpreted to apply separately to each grant of Restricted Performance Shares.

III.  Forfeiture Restrictions

3.1  Forfeiture Restrictions.
(a)    The Restricted Performance Shares may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent then subject to the Forfeiture Restrictions (as hereinafter defined).  In the event of Participant’s Termination of Service by the Company for Cause or for the Participant's material breach of his Employment Agreement (both as defined in that Employment Agreement), Participant shall, for no consideration, forfeit to the Company all Restricted Performance Shares to the extent then subject to the Forfeiture Restrictions.  In addition, in the event the Return on Invested Capital for the Performance Period does not meet the Performance Criteria, Participant shall, for no consideration, forfeit to the Company the Restricted Performance Shares pursuant to the provisions of Section 4.1.  The prohibition against transfer and the obligation to forfeit and surrender Restricted Performance Shares to the Company upon (i) Termination of Service by the Company for Cause or for the Participant's material breach of his Employment Agreement or (ii) the Return on Invested Capital for the Performance Period being less than the Performance Criteria are herein referred to as the “Forfeiture Restrictions.”
(b)    The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of Restricted Performance Shares.  The prohibitions of this Section 3.1 shall not apply to the transfer of Restricted Performance Shares pursuant to a plan of reorganization of the Company, but the stock, securities or other property received in exchange therefor shall also become subject to the Forfeiture Restrictions and provisions governing the lapsing of such Forfeiture Restrictions applicable to the original Restricted Performance Shares for all purposes of this Agreement.

IV.  Vesting

4.1  Vesting/Lapse of Forfeiture Restrictions
(a)    As soon as administratively practicable after the close of the NYSE market on the last day of the Performance Period, the Committee shall compare the Company’s Return on Invested Capital as compared to the Peer Group’s Return on Invested Capital as published by Bloomberg at the close of the NYSE market on that day.  The Committee’s determinations pursuant to the preceding sentence shall be certified by the Committee in writing and delivered to the Secretary of the Company.  For purposes of the preceding sentence, certified in writing can be accomplished by e-mail confirmation by all committee members, a unanimous 

consent signed by all committee members or approved minutes of the Committee meeting in which the certification is made.  At the time of such certification and based on the Performance Criteria being met, the Restricted Performance Shares shall fully Vest, it being the intention for the shares to vest, if at all, in the year 2019. 
(b)    Notwithstanding any provision of Section 4.1(a) to the contrary, no Restricted Performance Shares shall Vest if there is a Termination of Service prior to the last day of the Performance Period, except as provided in Sections 4.2 and 4.3.
4.2  Acceleration of Vesting Upon Change in Control
In the event of a Change in Control prior to the last day of a Performance Period, all of the Restricted Performance Shares with respect to such Performance Period shall Vest as of the effective date of such Change in Control, measured using the actual result of the Performance Criteria as of the most recent quarter-end.
4.3  Effect of Termination of Service on Vesting.
Upon termination of Participant’s Service for (i) the Participant's death or disability, (ii) termination by the Company without Cause, or (iii) termination by the Participant due to his Retirement from the Company, the Restricted Performance Shares shall not be forfeited, but instead will be deemed to have immediately fully vested, though paid to the Participant only to the extent the Performance Criteria outlined in Appendix "A" to this Agreement are met at the end of the Performance Period.

V.  Delivery of Restricted Performance Shares

5.1  Delivery of Restricted Performance Shares
As soon as practicable after the Restricted Performance Shares become Vested, and subject to the tax withholding referred to in Section 7.4, the Company shall deliver to Participant stock certificates, or an equivalent evidence of share ownership, issued in Participant’s name for the number of such Vested Restricted Performance Shares.

VI.  Status of Restricted Performance Shares and Restrictions

6.1  Status of Restricted Performance Shares
With respect to the status of the Restricted Performance Shares, at the time of execution of this Agreement Participant understands and agrees to all of the following:
(a)    Participant agrees that the Restricted Performance Shares will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable securities laws, whether federal or state.
(b)    Participant agrees that (i) the Company may refuse to register the Restricted Performance Shares on the stock transfer records of the Company if such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law, and (ii) the Company may give related instructions to its transfer agent, if any, to stop registration of the Restricted Performance Shares.
6.2  Certificates and Shareholder Rights
Restricted Performance Shares shall not constitute issued and outstanding shares of Common Shares until issued and delivered in accordance with this Agreement and the Plan.  Prior to the time the Restricted Performance Shares are issued and delivered, Participant will not have the right to vote any Restricted Performance Shares, to receive or retain any dividends or distributions paid or distributed on issued and outstanding shares of Common Shares or to exercise any other rights, powers and privileges of a shareholder 

with respect to any Restricted Performance Shares.  In accordance with the provisions of Article V, the Company shall deliver to Participant evidence of share ownership, issued in Participant’s name for the number of Restricted Performance Shares that have become Vested.
6.3  Corporate Acts
The existence of the Restricted Performance Share awards shall not affect in any way the right or power of the Supervisory Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding; provided, however, that in the event of a stock split, stock dividend paid in shares, or similar reorganization affecting all or substantially all of the Company’s shares, the Restricted Shares shall similarly and automatically be split or reorganized without further action or decision by the Company or the Committee.  The prohibitions of Section 3.1 shall not apply to the transfer of Restricted Share awards pursuant to a plan of reorganization of the Company, but the stock, securities or other property received in exchange therefor shall also become subject to the Forfeiture Restrictions and provisions governing the lapsing of such Forfeiture Restrictions applicable to the original Restricted Performance Shares for all purposes of this Agreement.

VII.  Miscellaneous

7.1  Service Relationship
For purposes of this Agreement, any question as to whether and when there has been a Termination of Service, and the cause of such termination, shall be determined by the Committee, and its determination will be final.  Without limiting the scope of the preceding sentence, it is expressly provided that Participant shall be considered to have terminated Service at the time of the termination of the “Subsidiary” status under the Plan of the entity or other organization that employs Participant.
7.2  Notices
For purposes of this Agreement, notices and all other communications provided for herein will be in writing and will be deemed to have been duly given when personally delivered or (i) if Participant is outside of the United States at the time of transmission of such notice, when sent by courier, facsimile, or electronic mail, and (ii) if Participant is within the United States at the time of transmission of such notice, when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed to the Company at its principal executive office and to Participant at the last address filed with the Company or to such other address as either party may furnish to the other in writing in accordance herewith, except that notices of changes of address will be effective only upon receipt.
7.3  Restrictions on Transfer of Shares
No Restricted Performance Shares may be sold, exchanged, transferred (including, without limitation, any transfer to a nominee or agent of Participant), assigned, pledged, hypothecated, or otherwise disposed of, including by operation of law, in any manner that violates the Forfeiture Restrictions and any other provisions of this Agreement, and, until the date on which such Forfeiture Restrictions lapse, any such attempted disposition shall be void.  The Company shall not be required (i) to transfer on its books any shares that will have been transferred in violation of this Agreement or (ii) to treat as owner of such shares, to accord the right to vote as such owner, or to pay dividends to any transferee to whom such shares will have been so transferred.

7.4  Withholding of Tax
To the extent that the receipt of Restricted Performance Shares or the lapse of any Forfeiture Restriction results in compensation income to Participant for federal or state income tax purposes, Participant shall deliver to the Company at the time of such event such amount of money or Common Shares as the Company may require to meet all obligations under applicable tax laws or regulations, and, if Participant fails to do so, the Company is authorized to withhold or cause to be withheld from any cash or Common Shares remuneration then or thereafter payable to Participant for any tax attributable to the Participant required to be withheld by reason of such resulting compensation income.
7.5  No Employment Rights Conferred
No provision of this Agreement shall confer any right upon Participant to continued employment with the Company or any Subsidiary, if applicable.
7.6  Limitation of Rights
No provision of this Agreement shall be construed to give Participant or any other person any interest in any fund or in any specified asset or assets of the Company or a Subsidiary.
7.7  Binding Effect
This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under Participant.
7.8  Governing Law
This Agreement shall be governed by, and construed in accordance with, the laws of the state of Texas.
IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer thereunto duly authorized, and Participant has executed this Agreement, all effective as of the Date of Grant.

CORE LABORATORIES N.V., by its sole managing director, Core Laboratories International B.V.

By: ______________________________________
Name: Jacobus Schouten
Title: Managing Director of Core Laboratories International B.V.

PARTICIPANT

By: ______________________________________

Printed Name: _____________________________

APPENDIX A
Performance Share Award
Restricted Share Agreement
(ROIC Based)

AWARD OF RESTRICTED PERFORMANCE SHARES

	
						
	

Date of
Grant
	Number of Restricted Performance
Shares
	 
	

Performance
Period
Begins
	

Performance
Period Ends
	Full Vesting Performance Criteria

	February 14, 2017
	_______ 
	 
	January 1, 2017
	December 31, 2019
	50% of the award will vest at the end of the Performance Period if the Company is in the top 50th percentile of Return on Invested Capital (ROIC) among the Bloomberg Peer Group, 100% of the award will vest if the Company is in the top 75th percentile of ROIC among the Bloomberg Peer Group and 150% of the award will vest if the Company is in the top 100th percentile (the top performing company) of the Bloomberg Peer Group, all as shown by data published by Bloomberg upon the close of the NYSE market on the last day of the Performance Period. The award will extrapolated on a a straight line basis from the 50th percentile to the 100th percentile. If the minimum criterion is not met, then no shares shall vest and the award hall be forfeited.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]