Document:

exv10w2

Exhibit 10.2

FORM OF

CVR PARTNERS, LP

LONG-TERM INCENTIVE PLAN

EMPLOYEE PHANTOM UNIT AGREEMENT

     THIS AGREEMENT (this “Agreement”), made as of the ___ day of _________, 20__ (the
“Grant Date”), between CVR Partners, LP, a Delaware limited partnership (the
“Partnership”), and ___________ (the “Grantee”).

     WHEREAS, the board of directors of CVR GP, LLC, a Delaware limited liability company (the
“General Partner”), has adopted the CVR Partners, LP Long-Term Incentive Plan (the
“Plan”) in order to provide an additional incentive to certain of the Partnership’s and its
Subsidiaries’ and Parents’ employees, officers, consultants and directors; and

     WHEREAS, the Committee responsible for administration of the Plan has determined to grant
Phantom Units to the Grantee as provided herein.

     NOW, THEREFORE, the parties hereto agree as follows:

     1. Grant of Phantom Units.

          1.1 The Partnership hereby grants to the Grantee, and the Grantee hereby accepts from the
Partnership, _____________ Phantom Units on the terms and conditions set forth in this Agreement.
Subject to the terms of this Agreement, each Phantom Unit represents the right of the Grantee to
receive, if such Phantom Unit becomes vested, one (1) Unit on the date specified in Section 4. The
issuance of Units upon vesting shall be subject to the Grantee’s prior execution of and becoming a
party to the Agreement of Limited Partnership of CVR Partners, LP, as may be amended from time to
time, and as in effect at the time of such issuance. Further, any Units delivered to the Grantee
in respect of the Phantom Units shall remain subject to the unit retention guidelines included in
the Corporate Governance Guidelines of the Partnership, as in effect on the date of the award.

          1.2 This Agreement shall be construed in accordance with and consistent with, and subject to,
the provisions of the Plan (the provisions of which are incorporated herein by reference). Except
as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have
the same definitions as set forth in the Plan.

     2. Vesting Date.

     The Phantom Units shall vest, with respect to thirty-three and one-third percent (33 — 1/3%)
of the total number of Phantom Units granted hereunder, on each of the first three anniversaries of
the Grant Date (each such date, a “Vesting Date”), provided the Grantee continues to serve
as an employee of the Partnership or its Subsidiaries or Parents on the applicable Vesting Date.

 

 

     3. Termination of Employment.

     (a) In the event of the Grantee’s termination of employment with the Partnership or one of
its Subsidiaries or Parents prior to any Vesting Date by reason of his or her death, Disability or
Retirement, any Phantom Units that have not vested shall become immediately vested.

     (b) If (i) the Grantee’s employment is terminated by the Partnership or one of its
Subsidiaries or Parents other than for Cause or Disability within the one (1) year period following
a Change in Control, (ii) the Grantee resigns from employment with the Partnership or one of its
Subsidiaries or Parents for Good Reason within the one (1) year period following a Change in
Control or (iii) the Grantee’s termination or resignation is a Change in Control Related
Termination (as defined in the employment agreement between the Grantee and the General Partner),
then any Phantom Units that have not vested shall become immediately vested.

     (c) Any Phantom Units that do not become vested in connection with the Grantee’s termination
of employment in accordance with Sections 3(a) or (b) of this Agreement shall be forfeited
immediately upon the Grantee’s termination of employment.

     (d) To the extent any payments provided for under this Agreement are treated as “nonqualified
deferred compensation” subject to Section 409A of the Code, (i) this Agreement shall be
interpreted, construed and operated in accordance with Section 409A of the Code and the Treasury
regulations and other guidance issued thereunder, (ii) if on the date of the Grantee’s separation
from service (as defined in Treasury Regulation §1.409A-1(h)) with the Partnership or its
Subsidiaries or Parents the Grantee is a specified employee (as defined Section 409A of the Code
and Treasury Regulation §1.409A-1(i)), no payment constituting the “deferral of compensation”
within the meaning of Treasury Regulation §1.409A-1(b) and after application of the exemptions
provided in Treasury Regulation §§1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall be made to the
Grantee at any time prior to the earlier of (A) the expiration of the six (6) month period
following the Grantee’s separation from service or (B) the Executive’s death, and any such amounts
deferred during such applicable period shall instead be paid in a lump sum to the Grantee (or, if
applicable, to the Grantee’s estate) on the first payroll payment date following expiration of such
six (6) month period or, if applicable, the Grantee’s death, and (iii) for purposes of conforming
this Agreement to Section 409A of the Code, any reference to termination of employment, severance
from employment, resignation from employment or similar terms shall mean and be interpreted as a
“separation from service” as defined in Treasury Regulation §1.409A-1(h).

     4. Payment Date.

     Within thirty (30) days following (i) each Vesting Date, or (ii) if, prior to any Vesting
Date, the Grantee’s termination of employment with the Partnership or its Subsidiaries or Parents
under circumstances described in Section 3(a) or (b), the date of such termination of employment,
the Partnership will deliver to the Grantee the Units underlying the Phantom Units that become
vested pursuant to Section 2 or 3 of this Agreement.

2

 

     5. Non-transferability.

          The Phantom Units may not be sold, transferred or otherwise disposed of and may not be pledged
or otherwise hypothecated.

     6. No Right to Continued Employment.

     Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the
Grantee any right with respect to continuance of employment by the Partnership or any of its
Subsidiaries or Parents, nor shall this Agreement or the Plan interfere in any way with the right
of the Partnership and its Subsidiaries and Parents to terminate the Grantee’s employment therewith
at any time.

     7. Withholding of Taxes.

     The Grantee shall pay to the Partnership, or the Partnership and the Grantee shall agree on
such other arrangements necessary for the Grantee to pay, the applicable federal, state and local
income taxes required by law to be withheld (the “Withholding Taxes”), if any, upon the
vesting of the Phantom Units and delivery of the Units. The Partnership shall have the right to
deduct from any payment of cash to the Grantee any amount equal to the Withholding Taxes in
satisfaction of the Grantee’s obligation to pay Withholding Taxes.

     8. Grantee Bound by the Plan.

     The Grantee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof.

     9. Modification of Agreement.

     This Agreement may be modified, amended, suspended or terminated, and any terms or conditions
may be waived, but only by a written instrument executed by the parties hereto. No waiver by
either party hereto of any breach by the other party hereto of any provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at
the time or at any prior or subsequent time.

     10. Severability.

     Should any provision of this Agreement be held by a court of competent jurisdiction to be
unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be
affected by such holding and shall continue in full force in accordance with their terms.

3

 

     11. Governing Law.

     The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Delaware without giving effect to the conflicts of laws principles
thereof.

     12. Successors in Interest.

     This Agreement shall inure to the benefit of and be binding upon any successor to the
Partnership. This Agreement shall inure to the benefit of the Grantee’s beneficiaries, heirs,
executors, administrators, successors and legal representatives. All obligations imposed upon the
Grantee and all rights granted to the Partnership under this Agreement shall be final, binding and
conclusive upon the Grantee’s beneficiaries, heirs, executors, administrators, successors and legal
representatives.

     13. Resolution of Disputes.

     Any dispute or disagreement which may arise under, or as a result of, or in any way relate to,
the interpretation, construction or application of this Agreement shall be determined by the
Committee. Any determination made hereunder shall be final, binding and conclusive on the Grantee
and the Partnership for all purposes.

[signature page follows]

4

 

          IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

	 	 	 	 	 	 	 

	CVR PARTNERS, LP

	 	 	 	GRANTEE	 	 
	By: CVR GP, LLC, its general partner
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

By:

	 	 	 	 

Name:
	 	 
	Title:ex105713.htm

(FRETUS)

THIRD AMENDMENT TO LOAN AGREEMENT (Amended and Restated)

This Third Amendment to Loan Agreement (Amended and Restated) (this "Third Amendment") is effective as of this 1st day of July, 2011, by and between by FRETUS INVESTORS EL PASO LP, a Delaware limited partnership (together with the respective successors and assigns, (“Borrower”), and CAPMARK BANK, a Utah industrial bank (together with its successors and assigns, “Lender”).

Recitals

A.           Borrower and Lender executed that certain Amended and Restated Loan Agreement dated February 28, 2007, amended by First Amendment dated April 25, 2008, as further amended by Second Amendment dated December 31, 2008 (the “Loan Agreement”). Unless otherwise defined herein, capitalized terms shall have the meanings assigned to them in the Loan Agreement.

B.           The Borrower has requested that the Lender extend the Maturity Date of the Note and the Lender has agreed on the terms and conditions contained herein.

Agreement

NOW, THEREFORE, in consideration of the above Recitals, the parties hereby agree as follows:

1.    In Section 1.1 of the Loan Agreement, the definition of “Maturity Date” is hereby amended to delete the date of “March 1, 2012” and replace it with “November 1, 2012”.  All references in the Loan Agreement to the Maturity Date are hereby amended to mean November 1, 2012.

2.    Borrower and Related Borrowers, as described herein, have entered into that certain Amended and Restated Cross-Collateralization, Cross-Default and Mortgage Modification Agreement of even date herewith whereby the loans made to the Borrower and the Related Borrowers, and the security pledged therefor, are cross-collateralized and cross-defaulted.

3.    The Loan Agreement is hereby amended to include the following definitions in Section 1.1:

““Cross Collateralization Agreement” means that certain Amended and Restated Cross-Collateralization, Cross-Default and Mortgage Modification Agreement dated as of July 1, 2011, by and between the Lender, Borrower and the Related Borrowers.”

““Loans” means, collectively, the Loan made by Lender to the Borrower and the loans made by Lender to the Related Borrowers, more particularly described in the Cross-Collateralization Agreement.”

  

  

  

““HCPI 2 Borrowers” means those entities more particularly described on Exhibit G attached hereto, to whom Lender made loans more particularly described on Exhibit G attached hereto.”

 ““Related Borrowers” means those entities more particularly described on Exhibit H attached hereto to whom the Lender made certain loans more particularly described on Exhibit H attached hereto.”

4.    The Loan Agreement is hereby amended to include a new Section 5.15 as follows:

“5.15 Sale of Assets: Release of Facility.  Sell, assign, lease or otherwise dispose of (whether in one transaction or in a series of transactions, and whether by asset sale or equity sale, the following facilities owned by the Borrower and the Related Borrowers (the “Related Facilities”), without the prior written consent of the Lender, which consent may be granted or refused in Lender’s sole discretion.  Notwithstanding anything to the contrary in this Section 5.15, the Related Facilities may be released from the lien of the applicable mortgage prior to payment in full of the Loan upon the following conditions:

	
a.  

	
No Event of Default exists under the Loan, and

	
b.  

	
the Lender receives as a prepayment of the Loan, 100% of the principal of the allocated loan amount for such facility estimated as follows, along with all accrued interest related thereto:

	  	
Facility

	
Estimated Payoff Amount

	  	  	  	  
	  	
Arborwood

	
$6,000,000.00

	  
	  	  	  	  
	  	
Cielo Vista

	
$4,230,544.00

	  
	  	  	  	  
	  	
Amber Oaks

	
$8,415,000.00

	  
	  	  	  	  
	  	
Seabrook

	
$4,105,000.00

	  

Upon the release of any Related Facility pursuant to the terms of this Section 5.15, the Related Facility shall be released from the obligations of the Cross Collateralization Agreement and the applicable Borrower or Related Borrower shall concurrently be released from any further obligations under the Loan Documents.”

5.     HCPI 2 Borrowers join in the execution of this Third Amendment and agree to continue to pay to Lender $666,667 in additional principal payments per month (the “HCPI 2 Additional Payment”) until such time as all debt of the HCPI 2 Borrowers

  2

1/2200466.2  

  

(the “HCPI 2 Loan”) is paid in full.  At the earlier of the date on which (i) the month immediately following the date on which the HCPI 2 Loan is paid in full or (ii) June 1, 2012, the Borrower and the Related Borrowers shall pay to Lender $865,370 in additional principal payments per month (the “Additional Payment”) in excess of all other payments due by the Borrower and the Related Borrowers to Lender pursuant to their applicable Loan Documents.  Lender shall apply the Additional Payment to the Loans in Lender’s sole discretion.  If, on February 1, 2012, the HCPI 2 Loan remains outstanding, the Borrower and the Related Borrowers agree to pay to Lender $200,000 in additional principal payments per month in lieu of the Additional Payment until such time as the earlier of (i) the month following the date on which the HCPI 2 Loan is paid in full or (ii) June 1, 2012 (the “Reduced Additional Payment”).  Such Reduced Additional Payment shall be in excess of all other payments due by the Borrower and the Related Borrowers to Lender pursuant to their applicable Loan Documents and applied to the Loans in Lender’s sole discretion.  Notwithstanding the foregoing, on the earlier of (i) the month immediately following the date on which the HCPI 2 Loan is paid in full or (ii) June 1, 2012, the Borrower and the Related Borrowers shall begin making the Additional Payment to Lender, which shall be applied by Lender as provided herein.

6.    The Borrower shall pay a loan repositioning fee in the amount of one-quarter of one percent of the Loan ($10,433.50), and all costs and expenses incurred by the Lender related to this renewal and extension transaction, specifically including, without limitation, reasonable attorneys' fees, recording fees and the costs associated with a title update.

7.    This Third Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute but one the same instrument.

8.    The extension of the Maturity Date provided herein is subject to Lender’s receipt of a satisfactory appraisal of the Loyalton property.

9.     Waiver of Debt Service Covenant. Commencing on the Effective Date, and continuing through November 1, 2012, the Debt Service Coverage Ratio requirement contained in Section 4.24, pursuant to the Second Amendment to Loan Agreement (Amended and Restated) dated December 31, 2008, is hereby waived, so long as no Event of Default occurs.

       Except as expressly amended hereby, all other terms and conditions of the Loan Agreement shall remain unchanged and shall continue in full force and effect.

 

       The Borrower represents that (a) no Event of Default has occurred that is continuing on the date hereof;  and (b) the representations and warranties included in Article III of the Loan Agreement are as true and correct on the date hereof as when originally made, except as such representation or warranty expressly relates to an earlier date.

 

  3

1/2200466.2    

  

    IN WITNESS WHEREOF, Borrowers and Lender have caused this Third Amendment to be executed by their respective duly authorized representatives, as of the date set forth above.

 

LENDER:

CAPMARK BANK, a Utah industrial bank

By:        /s/ Laura Y. McDonald           

Name:             Laura Y. McDonald                                      

Its:                  SVP/Managing Director

 

 

BORROWER:

FRETUS Investors El Paso LP, a

Delaware limited partnership

By:           Village Oaks Cielo Vista Investors

LLC, a Delaware limited liability company

Its:           General Partner

By:           FRETUS Investors LLC, a

Washington limited liability

 company

Its:           Managing Member

By:           Emeritus Corporation, a Washington corporation

Its:           Administrative Member

By: /s/ Eric Mendelsohn                      

                  Eric Mendelsohn

Its: Senior Vice President Corporate

Development

4  

1/2200466.2      

  

The Related Borrowers join in the execution of this Third Amendment to evidence their agreement to the terms contained herein:

RELATED BORROWERS:

EMERICHIP WALLA WALLA LLC,

a Delaware limited liability company

By:             EMERITUS CORPORATION,

a Washington corporation

its Sole Member

By: /s/ Eric Mendelsohn                             

                      Eric Mendelsohn,

Senior Vice President Corporate Development

EMERICHIP SAN ANTONIO AO LP

a Delaware limited partnership

By:             Emerichip Texas LLC,

a Delaware limited liability company,

its General Partner

By:           ESC G.P. II, Inc.,

a Washington corporation

its Sole Member

By: /s/ Eric Mendelsohn                               

                         Eric Mendelsohn

   Senior Vice President Corporate Development

EMERICHIP PHOENIX LLC,

a Delaware limited liability company

By:             EMERITUS CORPORATION,

a Washington corporation

its Sole Member

By: /s/ Eric Mendelsohn                              

                          Eric Mendelsohn,

   Senior Vice President Corporate Development

  5

1/2200466.2      

  

EMERICHIP EVERETT LLC,

a Delaware limited liability company

By:             EMERITUS CORPORATION,

a Washington corporation

its Sole Member

By: /s/ Eric Mendelsohn                                

                          Eric Mendelsohn,

    Senior Vice President Corporate Development

EMERIPREZ LLC, a Delaware limited liability company

 

 

By:  Summerville Senior Living, Inc., a Delaware corporation

 

Its:   Sole Member

 

By:   /s/ Eric Mendelsohn                                                             

 

Name: Eric Mendelsohn

Title: Senior Vice President Corporate Development

 

PHNTUS LO JOLIET SCU LLC,

a Delaware limited liability company

     By Emeritus Corporation,

     a Washington corporation

     Its Sole Member

By: /s/ Eric Mendelsohn                             

Name: 

By:  /s/ Eric Mendelsohn                                            

Eric Mendelsohn

Its: SVP Corporate Development

6  

1/2200466.2      

  

The HCPI 2 Borrowers join in the execution of this Third Amendment to evidence their agreement to the terms contained in Paragraph 5 contained herein:

HCPI 2BORROWER:

	
  

	
EMERICHIP STOCKTON LLC,

	
  

	
a Delaware limited liability company

	
  

	
By:

	
Emeritus Corporation,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By: /s/ Eric Mendelsohn                               

Eric Mendelsohn,

Senior Vice President

Corporate Development

HCPI 2 BORROWER:

	
  

	
EMERICHIP DALLAS LP,

	
  

	
a Delaware limited partnership

	
  

	
By:

	
Emerichip Texas LLC,

	
  

	
a Delaware limited liability company,

	
  

	
its General Partner

	
  

	
By:

	
ESC G.P. II, Inc.,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By:     /s/ Eric Mendelsohn                                                                                 

           Eric Mendelsohn

           Senior Vice President

           Corporate Development

7  

1/2200466.2      

  

HCPI 2 BORROWER:

EMERICHIP EL PASO LP

a Delaware limited partnership

	
  

	
By:

	
Emerichip Texas LLC,

	
  

	
a Delaware limited liability company,

	
  

	
its General Partner

	
  

	
By:

	
ESC G.P. II, Inc.,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By:     /s/ Eric Mendelsohn                                                                                 

           Eric Mendelsohn

           Senior Vice President

           Corporate Development

HCPI 2 BORROWER:

EMERICHIP CAMBRIA AO LP

a Delaware limited partnership

	
  

	
By:

	
Emerichip Texas LLC,

	
  

	
a Delaware limited liability company,

	
  

	
its General Partner

	
  

	
By:

	
ESC G.P. II, Inc.,

	
  

	
a Washington corporation,

	
  

	
its Sole Member

By:     /s/ Eric Mendelsohn                                                                                 

           Eric Mendelsohn

           Senior Vice President

           Corporate Development

8  

1/2200466.2      

  

EXHIBIT G

 

HCPI 2 Borrowers

 

	
1.  

	
Emerichip Stockton LLC

	
2.  

	
Emerichip Dallas LP

	
3.  

	
Emerichip El Paso LP

	
4.  

	
Emerichip Cambria AO LP

 

9  

1/2200466.2      

  

EXHIBIT H

 

Related Borrowers

 

 

PHNTUS LO Juliet SCU LLC, a Delaware limited liability company

 

Emeriprez LLC, a Delaware limited liability company

 

Emerichip Everett LLC, a Delaware limited liability company

 

Emerichip Phoenix LLC, a Delaware limited liability company

 

Emerichip San Antonio AO LP, a Delaware limited liability company

 

Emerichip Walla Walla LLC, a Delaware limited liability company

 

 

10  

1/2200466.2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]