Document:

Exhibit 10.4

 

GLEACHER & COMPANY, INC.

 

FORM OF
 2003 NON-EMPLOYEE DIRECTORS STOCK PLAN

STOCK OPTION AGREEMENT

 

THIS STOCK OPTION AGREEMENT (the “Agreement”) confirms the grant on                    (the “Grant Date”) by Gleacher & Company, Inc., a Delaware corporation (including any successor corporation to Gleacher & Company, Inc., the “Company”), to                    (“Non-Employee Director”) of non-qualified options (“Options”) to acquire shares of the Company’s common stock (“Shares”), as follows:

 

Number of Shares Covered by Option Granted:                   

 

How Options Vest and Become Exercisable: One twelfth of the Options, if not previously forfeited, will vest and become exercisable on each of the monthly anniversaries of the Grant Date, through and including the twelfth month anniversary of the Grant Date, provided that Non-Employee Director continuously remains a director of the Company.  Unless earlier terminated in accordance with the terms and provisions of the Plan and/or this Agreement, the Options will expire and will no longer be exercisable on the sixth anniversary of the Grant Date (the “Option Period”).  In no event will an Option be exercisable for a fractional Share.

 

Exercise Prices of the Options:  The exercise price per Share of the Options will be $                    which is the Fair Market Value of a Share on the Grant Date.

 

Duration of the Options:  Except as otherwise provided in Section 4 of the Terms and Conditions, the Options will terminate and be of no force or effect in accordance with and to the extent provided by the terms and provisions of Section 10 of the Plan.  In any event, the Options will terminate upon the expiration of the Option Period.

 

The Options are subject to the terms and conditions of the Plan, and this Agreement, including the Terms and Conditions attached hereto.  The number of Options, the number and kind of Shares deliverable upon exercise of Options, and other terms relating to the Options are subject to adjustment in accordance with Section 5 of the Terms and Conditions and Section 12.2 of the Plan.

 

 

Non-Employee Director acknowledges and agrees that (i) the Options are nontransferable, except as provided in Section 3 of the Terms and Conditions and Section 11 of the Plan, (ii) the Options are subject to forfeiture upon Non-Employee Director’s termination of service in certain circumstances, as specified in Section 4 of the Terms and Conditions, and (iii) sales of Shares delivered in settlement of the Options will be subject to the Company’s policies regulating trading by employees.

 

IN WITNESS WHEREOF, GLEACHER & COMPANY, INC. has caused this Agreement to be executed by its officer thereunto duly authorized, and Non-Employee Director has duly executed this Agreement, by which each has agreed to the terms of this Agreement.

 

 

	
Non-Employee Director:
    	
 
    	
GLEACHER & COMPANY, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    

 

TERMS AND CONDITIONS OF STOCK OPTIONS

 

The following Terms and Conditions apply to the Options granted to Non-Employee Director by the Company, as specified in the Stock Option Agreement (of which these Terms and Conditions form a part).  Certain terms of the Options, including the number of Options granted, vesting dates and expiration date, are set forth in the Agreement.

 

1.                                       GENERAL.  The Options are granted to Non-Employee Director under the 2003 Non-Employee Directors Stock Plan (the “Plan”).  The Options are not to be treated as (and are not intended to qualify as) incentive stock options within the meaning of Section 422 of the Code.  A copy of the Plan and information regarding the Plan, including documents that constitute the “Prospectus” for the Plan under the Securities Act of 1933, can be obtained from the Company upon request.  All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein.  Capitalized terms used in the Agreement and these Terms and Conditions but not defined herein will have the same meanings as in the Plan.  If there is

 

 

any conflict between the provisions of the Agreement and these Terms and Conditions and mandatory provisions of the Plan, the provisions of the Plan govern, otherwise, the terms of this document will prevail.  By accepting the grant of the Options, Non-Employee Director agrees to be bound by all of the terms and provisions of the Plan (as presently in effect or later amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations of the Board of Directors of the Company (the “Board”) made from time to time, provided that no such Plan amendment, rule or regulation or Board decision or determination without the consent of an affected Participant will materially adversely affect the rights of Non-Employee Director with respect to the Options.

 

2.                                       TIME AND METHOD OF EXERCISE.  At any time while any portion of the Options remain vested and exercisable, Non-Employee Director may exercise such vested Options in whole or in part by delivering to the Company written notice of exercise and payment of the exercise price.  Such exercise price may be paid (i) in cash, by check or in another cash equivalent acceptable to the Company, (ii) by transfer to the Company of nonforfeitable, unrestricted Shares already held by Non-Employee Director for at least six (6) months, (iii) through broker-assisted “cashless” exercise arrangements, to the extent permissible under applicable law, (iv) by any other method permitted under the Plan and under rules established by the Board and in effect from time to time, or (v) by a combination of the foregoing.

 

3.                                       NONTRANSFERABILITY.  Non-Employee Director may not sell, transfer, assign, pledge, margin or otherwise encumber or dispose of Options or any rights hereunder to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under Section 11 of the Plan.

 

4.                                       TERMINATION PROVISIONS.  The following provisions will govern the vesting and forfeiture of the Options upon the occurrence of certain events relating to termination of service and certain events relating to a Change of Control, in each case unless otherwise determined by the Board, except that in any event, the Options will terminate upon the expiration of the Option Period:

 

(a)                                  Death or Disability.  In the event of Non-Employee Director’s death or Disability, Non-Employee Director (and Non-Employee Director’s estate, designated beneficiary or other legal representative, as the case may be and as determined by the Board) will have the right, to the extent exercisable immediately prior to any such termination of service, to exercise such Options, if any, at any time within the one (1) year period following such termination due to death or Disability (but not beyond the Option Period).

 

(b)                                   Change of Control of the Company.  If a Change of Control of the Company occurs all Options then unexercised and outstanding will become fully vested and exercisable as of the date of the Change of Control, provided

 

 

Non-Employee Director is serving on the Board as of the date of the Change of Control or is a director to whom Section 13.3.2 of the Plan is applicable.

 

(c)                                  Termination of Service.  Except as otherwise provided in this Section 4 or the Plan in the event Non-Employee Director ceases to be a director for any reason, Non-Employee Director’s rights, if any, to exercise any then exercisable Options, if any, will terminate ninety (90) days after the date of such termination of service (but not beyond the Option Period) and thereafter such Options will be forfeited and cancelled by the Company.

 

5.                                       SHAREHOLDER’S RIGHTS, DIVIDENDS AND ADJUSTMENTS.

 

(a)                                  Shareholder’s Rights and Dividends.  Non-Employee Director will have no rights as a shareholder, and will not be entitled to any dividends declared or paid, with respect to any Share underlying an Option unless and until such Share is issued to Non-Employee Director upon the proper exercise of such Option.

 

(b)                                 Adjustments.  The number of Options held by Non-Employee Director, the number of Shares underlying such Options and/or the exercise price per Share of such Options will be appropriately adjusted in a manner that complies with the requirements of Code Section 409A, in order to prevent dilution or enlargement of Non-Employee Director’s rights with respect to such Options or to reflect any changes in the number of outstanding Shares resulting from any event referred to in Section 12.2 of the Plan.

 

6.                                       OTHER TERMS RELATING TO OPTIONS.

 

(a)Fractional Options and Shares.  The number of Shares underlying Options held by Non-Employee Director will not include fractional shares, unless otherwise determined by the Board.

 

(b)                                 Taxes.  Non-Employee Director acknowledges and agrees that the payment of any amount necessary to satisfy requirements of federal, state, local or foreign tax law imposed in connection with the exercise of the Options will be the obligation of Non-Employee Director and the Company will not be obligated to pay or withhold any amount or any Shares in connection with such tax liability.

 

7.                                       MISCELLANEOUS.

 

(a)                                  Binding Agreement; Written Amendments.  The Agreement and these Terms and Conditions will be binding upon the heirs, executors, administrators and successors of the parties.  The Agreement, these Terms and Conditions and the Plan constitute the entire agreement between the parties with respect to the Options, and supersede any prior agreements or documents with respect thereto.  No amendment, alteration, suspension, discontinuation, or termination of the Agreement

 

 

and these Terms and Conditions which may impose any additional obligation upon the Company or materially impair the rights of Non-Employee Director with respect to the Options will be valid unless in each instance such amendment, alteration, suspension, discontinuation, or termination is expressed in a written instrument duly executed in the name and on behalf of the Company and by Non-Employee Director.

 

(b)                                 Governing Law.  THE AGREEMENT AND THESE TERMS AND CONDITIONS WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.

 

(d)                                 Legal Compliance.  Non-Employee Director agrees to take any action the Company reasonably deems necessary in order to comply with federal and state laws, or the rules and regulations of the NASDAQ Global Market or any other stock exchange, or any other obligation of the Company or Non-Employee Director relating to the Options or the Agreement and these Terms and Conditions.

 

(e)                                  Notices.  Any notice to be given the Company under the Agreement and these Terms and Conditions will be addressed to the Company at 1290 Avenue of the Americas, New York, New York 10104, Attention: Corporate Secretary, and any notice to Non-Employee Director will be addressed to Non-Employee Director at Non-Employee Director’s address as then appearing in the records of the Company.EXHIBIT 10.3

 

Prudential Investment Management, Inc.

The Prudential Insurance Company of America

Pruco Life Insurance Company

United of Omaha Life Insurance Company

c/o Prudential Capital Group

2029 Century Park East, Suite 710

Los Angeles, CA 90067

 

July 8, 2011

 

LTC Properties, Inc.

2829 Townsgate Road, Suite 350,

Westlake Village, California 91361

 

Re:                               Amendment and Modification to Note Purchase and Private Shelf Agreement

 

Ladies and Gentlemen:

 

Reference is made to the Note Purchase and Private Shelf Agreement, dated as of July 14, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”), by and between LTC Properties, Inc., a Maryland corporation (the “Company”), and certain direct and indirect Subsidiaries of the Company from time to time party to the Agreement as Guarantors, on the one hand, and the Purchasers named therein, on the other hand.  Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Agreement.

 

1.                                       Amendment.  Pursuant to the provisions of Section 17 of the Agreement, and subject to the terms and conditions of this letter agreement, the Purchasers hereby agree with the Company that Section 2B(1) of the Agreement is amended and restated as of July 8, 2011, as follows:

 

“2B(1)           Facility.  PIM is willing to consider, in its sole discretion and within limits that may be authorized for purchase by PIM and Prudential Affiliates from time to time, the purchase of Shelf Notes pursuant to this Agreement.  The willingness of PIM to consider such purchase of Shelf Notes is herein called the “Facility.”  At any time, (i) the aggregate principal amount of Shelf Notes stated in Section 1C, minus (ii) the aggregate principal amount of Shelf Notes purchased and sold pursuant to this Agreement prior to such time, minus (iii) the aggregate principal amount of Accepted Notes (as hereinafter defined) which have not yet been purchased and sold hereunder prior to such time, is herein called the “Available Facility Amount” at such time.  NOTWITHSTANDING THE WILLINGNESS OF PIM TO CONSIDER PURCHASES OF SHELF NOTES, THIS AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PIM NOR ANY PRUDENTIAL AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A COMMITMENT BY PIM OR ANY PRUDENTIAL AFFILIATE.  Notwithstanding anything to the contrary appearing herein, in no event shall any Note be purchased under the Facility by a Prudential Affiliate described in clause (i) of the definition thereof if, upon giving effect to such purchase and the use of proceeds thereof, the aggregate principal amount all Notes and any other notes of the Company then outstanding and held by all Prudential Affiliates described in such clause, would exceed $87,500,000.”

 

 

2.                                       Limitation of Modifications.  The amendment effected in this letter agreement shall be limited precisely as written and shall not be deemed to be (a) an amendment, consent, waiver or other modification of any other terms or conditions of the Agreement or any other document related to the Agreement, or (b) a consent to any future amendment, consent, waiver or other modification.  Except as expressly set forth in this letter, the Agreement and the documents related to the Agreement shall continue in full force and effect.

 

3.                                       Representations and Warranties.  The Company hereby represents and warrants as follows:  (i) No Default or Event of Default has occurred and is continuing; (ii) the Company’s execution, delivery and performance of the Agreement, as modified by this letter agreement, have been duly authorized by all necessary corporate and other action and do not and will not require any registration with, consent or approval of, or notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable; (iii) the Agreement, as modified by this letter agreement, constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application relating to or affecting the enforcement of creditors’ rights or by general principles of equity; and (iv) after giving effect to this letter agreement, each of the representations and warranties set forth in Section 5 of the Agreement is true, correct and complete as of the date hereof (except to the extent such representations and warranties expressly relate to another date, in which case such representations and warranties are true, correct and complete as of such other date).

 

4.                                       Effectiveness.                     This letter agreement shall become effective on the date on which (i) the Purchasers shall have received a fully executed counterpart of this letter from the Company and each Guarantor, and (ii) the Company shall have paid Bingham McCutchen LLP its accrued and unpaid legal fees and expenses, to the extent such fees and expenses have been invoiced.

 

5.                                       Miscellaneous.

 

(a)                                  This document may be executed in multiple counterparts, which together shall constitute a single document.  Delivery of executed counterparts of this letter agreement by telefacsimile or other secure electronic format (pdf) shall be effective as an original.

 

(b)                                 This letter agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the internal laws of the State of New York, excluding choice-of-law principles of the law of such state that would permit the application of the laws of a jurisdiction other than such state.

 

[Remainder of the page intentionally left blank]

 

2

 

If you are in agreement with the foregoing, please sign the enclosed counterpart of this letter in the space indicated below and return it to the Purchasers at the above address whereupon, subject to the conditions expressed herein, it shall become a binding agreement between the Company, on the one hand, and the Purchasers, on the other hand.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
PRUDENTIAL INVESTMENT MANAGEMENT, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Cornelia Cheng
    	
 
    
	
Name:
    	
Cornelia Cheng
    	
 
    
	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE PRUDENTIAL INSURANCE COMPANY
    	
 
    
	
OF AMERICA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Cornelia Cheng
    	
 
    
	
Name:
    	
Cornelia Cheng
    	
 
    
	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
PRUCO LIFE INSURANCE COMPANY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Cornelia Cheng
    	
 
    
	
Name:
    	
Cornelia Cheng
    	
 
    
	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
UNITED OF OMAHA LIFE INSURANCE
    	
 
    
	
COMPANY
    	
 
    
	
 
    	
 
    
	
By:  Prudential   Private Placement Investors, L.P., asset manager
    	
 
    
	
 
    	
 
    
	
By:  Prudential Private   Placement Investors, Inc., general partner
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Cornelia Cheng
    	
 
    
	
Name:
    	
Cornelia Cheng
    	
 
    
	
Title:
    	
Vice President
    	
 
    

 

 

	
Accepted and agreed to as of the date first appearing above:
    	
 
    
	
 
    	
 
    
	
LTC PROPERTIES, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    

 

Each of the undersigned Guarantors consents and agrees to the amendments and other modifications effected in this letter agreement and the transactions contemplated hereby, reaffirms its obligations under the Multiparty Guaranty and its waivers, as set forth in the Multiparty Guaranty, of each and every one of the possible defenses to such obligations.  In addition, the undersigned Guarantor reaffirms that its obligations under the Multiparty Guaranty are separate and distinct from the Company’s obligations.

 

	
FLORIDA-LTC, INC.
    	
 
    
	
 
    	
 
    
	
LTC GP I, INC.
    	
 
    
	
 
    	
 
    
	
LTC-GARDNER, INC.
    	
 
    
	
 
    	
 
    
	
LTC-GRIFFIN, INC.
    	
 
    
	
 
    	
 
    
	
LTC-JONESBORO, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
On behalf of each of the foregoing Guarantors
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    
	
On behalf of each of the foregoing Guarantors
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ALBUQUERQUE REAL ESTATE INVESTMENTS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Clint Malin
    	
 
    
	
Name:
    	
Clint Malin
    	
 
    
	
Its:
    	
Chairman and Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Chief Financial Officer and Treasurer
    	
 
    

 

 

	
BEAUMONT REAL ESTATE INVESTMENTS, LP
    	
 
    
	
 
    	
 
    
	
By:  L-Tex GP, Inc., its General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
LTC PARTNERS IX, L.P.
    	
 
    
	
 
    	
 
    
	
By:  LTC GP VI, Inc., its   General Partner
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
TEXAS-LTC LIMITED PARTNERSHIP
    	
 
    
	
 
    	
 
    
	
By L-Tex GP, Inc., its General Partner
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    

 

 

	
TEXAS-LTC WOODRIDGE LIMITED PARTNERSHIP
    	
 
    
	
 
    	
 
    
	
By L-Tex GP, Inc., its General Partner
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
NORTH CAROLINA REAL ESTATE INVESTMENTS, LLC
    	
 
    
	
 
    	
 
    
	
By LTC-Dearfield, Inc., its Member
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By LTC-Richmond, Inc., its Member
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Wendy Simpson
    	
 
    
	
Name:
    	
Wendy Simpson
    	
 
    
	
Its:
    	
Chief Executive Officer and President
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Pamela Shelley-Kessler
    	
 
    
	
Name:
    	
Pamela Shelley-Kessler
    	
 
    
	
Its:
    	
Executive Vice President and Chief Financial Officer

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