Document:

Exhibit 4.16

 

 

 

FOURTH ADDENDUM TO LOAN AGREEMENT

 

THIS FOURTH ADDENDUM TO LOAN
AGREEMENT (this “Amendment”) is made and entered into as of February 10,
2006, by and among: (i) BANK OF AMERICA, N.A. (“Lender”); (ii) IHOP
PROPERTIES, INC., a California corporation (“Borrower") and (iii)
INTERNATIONAL HOUSE OF PANCAKES, INC., a Delaware corporation, IHOP Corp., a
Delaware corporation ("IHOP parent") and IHOP Realty Corp, a
Delaware corporation (collectively, the "Guarantor").

 

RECITALS

 

WHEREAS, on April 27, 2001,
Borrower, Guarantor and Lender entered into that certain Loan Agreement (the
"Loan Agreement") relating to a $12,018,206.00 loan secured by
Borrower's interest in land, building and fixtures comprising equipment and
signage to be used in connection with thirteen (13) IHOP Restaurants;

 

WHEREAS, on March 13, 2002,
Borrower, Guarantor and Lender entered into that certain First Addendum to Loan
Agreement to reflect an additional loan to Borrower in the original principal
amount of $17,203,432.00 secured by Borrower's interest in land, building and
fixtures comprising seventeen (17) IHOP Restaurants;

 

WHEREAS, on October 28, 2002,
Borrower, Guarantor and Lender entered into that certain Second Addendum to
Loan Agreement modifying certain covenants set forth in the Loan Agreement
relating to, among other things, restrictions on Liens;

 

WHEREAS on March 8, 2004,
Borrower, Guarantor and the Lender entered into that certain Third Addendum to
Loan Agreement modifying Section 5.A.i. of the Loan Agreement;

 

WHEREAS, Borrower, Guarantor
and the Lender now desire to further modify Section 5.A.i. of the Loan
Agreement.

 

NOW, THEREFORE, for and in
consideration of Ten and No/100 Dollars ($10.00) in hand paid, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

 

1.                                       Recitals.  Borrower, Guarantor and
Lender hereby approve the foregoing recitations and agree that said recitations
are true and correct in all respects.

 

2.                                       Affirmative
Covenants.

 

(a)                                  Section 5.A.i is hereby deleted in its
entirety and replaced with the following Section 5.A.i.

 

i.                                          Maintain Fixed Charge Coverage
Ratio: At all
times on and after December 31, 2005, Borrower and Guarantors, on a
consolidated basis, will not permit the ratio of Total Fixed Charge Income DIVIDED

 

 

1

 

by Total Fixed Charges to be
less than 1.30 to 1.00.  This Ratio shall
be calculated as follows:

 

	
  1. Total Fixed Charge
  Income:

  
	
  EBITDA

  
	
  Plus Operating Rent
  Expense

  
	
  Plus scheduled principal
  payments received on long-term notes receivable due in the next twelve months

  
	
  Less Taxes actually paid
  for the preceding twelve months

  
	
  2.
  Total Fixed Charges:

  
	
  Plus scheduled principal
  payments long term debt due in the next twelve months

  
	
  Plus scheduled payments
  Capitalized Leases due in the next twelve months

  
	
  Plus Interest Expense

  
	
  Plus Operating Rent
  Expense

  
	
  FIXED
  CHARGE COVERAGE (>1.30x)

  

 

(b)                                 Section 5.A.ii
is hereby deleted in its entirety and replaced with the following Section 5.A.ii

 

ii.                                       Maintain
Funded Debt to EBITDA Ratio:  The Borrower and Guarantors, on a
consolidated basis, will not permit the ratio of total Funded Debt divided by
EBITDA to be greater than (a) 2.10 to 1.00 at any time during the period
December 31, 2005 through September 30, 2006, and (b) 2.00 to 1.00 at any time
on or after October 1, 2006.  This Ratio
shall be calculated using the form attached as Exhibit F

 

3.                                       Ratification
and Reaffirmation.  Borrower and
Guarantor herby ratify and reaffirm each of

the Loan Documents and all of Borrower's and Guarantor's covenants, duties and
liabilities thereunder.

 

4.                                       Representations
and Warranties.  Borrower and
Guarantor represent and warrant to Lender, to induce Lender to enter into this
Amendment, that no Default or Event of Default exists on the date hereof; the
execution, delivery and performance of this Amendment have been duly authorized
by all requisite corporate action on the part of the Borrower and/or Guarantor
and this Amendment has been executed and delivered by Borrower and Guarantor;
and except as may have been disclosed in writing by Borrower and/or Guarantor
to Lender prior to the date hereof, all of the representations and warranties
made by Borrower in the Loan Agreement are true and correct on and as of the
date hereof.

 

 

2

 

 

5.                                       Amendment
Fee.  Borrower agrees to pay to
the Lender within 120 days of the date hereof an amendment fee in the amount of
$56,860.00.

 

6.                                       Expenses
of Lender.  Borrower agrees
to pay all costs and expenses incurred by Lender in connection with the
preparation, negotiation and execution of this Amendment and any other Loan
Documents executed pursuant hereto and any and all amendments,  modifications, and supplements thereto,
including, without limitation, the costs and fees of Lender's legal counsel.

 

7.                                       Governing
Law.  This Amendment shall be
governed by and construed in accordance with the internal laws of the State of
Georgia.  The parties stipulate and agree
that the Borrower and Guarantor have numerous business operations in the State
of Georgia and this Amendment has been made, delivered and is performable in
the State of Georgia at Bank's main office in the State of Georgia and the laws
of the State of Georgia and applicable United States federal law shall apply
and this Agreement shall be construed in accordance with the laws of the State
of Georgia and applicable United States federal law.  Wherever possible each provision of this
Amendment shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Amendment shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Amendment.  The invalidity or
unenforceability of any provision of any Loan Document to any person or
circumstance shall not affect the enforceability or validity of such provision
as it may apply to other persons or circumstances.

 

8.                                       Successors
and Assigns.  The Amendment
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

9.                                       No
Novation, etc.  This
Amendment is not intended to be, nor shall it be construed to create, a
novation or accord and satisfaction, and the Loan Agreement as herein modified
shall continue in full force and effect.

 

10.                                 Counterparts.  This Amendment may be
executed in one or more counterparts, each of which shall constitute an
original, but all of which taken together shall be one and the same
instrument.  Further, this
Amendment may be executed by facsimile signatures which shall be binding upon
the parties.

 

11.                                 Waiver
of Notice.  Borrower and
Guarantor hereby waive notice of acceptance of this Amendment by Lender.

 

12.                                 General.  Except as specifically
modified herein, all other terms and conditions of the Loan Agreement shall
remain unchanged and in full force and effect.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

3

 

IN WITNESS WHEREOF, the
parties have signed and sealed this Amendment on the day and year first
above-written.

 

	
  GUARANTOR:

  	
  BORROWER:

  
	
   

  	
   

  
	
  INTERNATIONAL HOUSE OF
  PANCAKES, INC.

  	
  IHOP PROPERTIES, INC.

  
	
   

  	
   

  
	
  BY: 

  	
  /s/ Thomas Conforti                                         

  	
   

  	
  By:  

  	
  /s/ Thomas Conforti                                                 
  

  	
   

  
	
  Name:

  Title:

  	
  Thomas Conforti

  Chief Financial Officer

  	
  Name:

  Title:

  	
  Thomas Conforti

  Chief Financial Officer

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Mark Weisberger

  	
   

  	
  By:

  	
  /s/ Mark Weisberger

  	
   

  
	
  Name:

  Title:

  	
  Mark Weisberger

  Vice President - Legal

  	
  Name:

  Title:

  	
  Mark Weisberger

  Vice President - Legal

  
	
   

  	
   

  
	
  (CORPORATE SEAL)

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTOR:

  	
  GUARANTOR:

  
	
   

  	
   

  
	
  IHOP REALTY CORP.

  	
  IHOP CORP.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Thomas Conforti 

  	
   

  	
  By: 

  	
  /s/ Thomas Conforti                                                 
  

  	
   

  
	
  Name:

  Title:

  	
  Thomas Conforti

  Chief Financial Officer

  	
  Name:

  Title:

  	
  Thomas Conforti

  Chief Financial Officer

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Mark Weisberger

  	
   

  	
  By: 

  	
  /s/ Mark Weisberger

  	
   

  
	
  Name:

  Title:

  	
  Mark Weisberger

  Vice President - Legal

  	
  Name: 

  Title:

  	
  Mark Weisberger

  Vice President - Legal

  
	
   

  	
   

  
	
  (CORPORATE SEAL)

  	
  (CORPORATE SEAL)

  
										

 

[SIGNATURES
CONTINUED ON THE NEXT PAGE]

 

 

 

Signature
Page to Fourth Addendum

 

 

	
  LENDER:
   

  	 

	
   

  	 

	
  BANK
  OF AMERICA, N.A.

  	 

	
   

  	
   

  
	
  By:

  	
  /s/
  Cristin M. O'Hara

  
	
  Name:

  	
  Cristin
  M. O'Hara

  
	
  Title:

  	
  Principal

  
			

 

 

 

Signature
Page to Fourth AddendumExhibit 10.2(f)

 

Form of
Director Non-qualified Stock Option Award Pursuant to 1996 Stock Incentive Plan

 

NONQUALIFIED
STOCK OPTION AWARD

PURSUANT
TO THE NETBANK, INC.

1996 STOCK
INCENTIVE PLAN

 

THIS AWARD is made as of the Grant Date by
NETBANK, INC. (the “Company”) to (the “Optionee”).

 

Upon and subject to the Terms and Conditions
attached hereto and incorporated herein by reference, the Company hereby awards
as of the Grant Date to Optionee a nonqualified incentive stock option (the “Option”),
as described below, to purchase the Option Shares.

 

A.                                   Grant
Date:

 

B.                                     Type
of Option:  Nonqualified Stock Option,
granted pursuant to the NetBank, Inc. 1996 Stock Incentive Plan (the “Plan”).

 

C.                                     Option
Shares:  All or any part of                           shares
of the Company’s common stock, $.01 par value per share (“Common Stock”),
subject to adjustment as provided in the attached Terms and Conditions.

 

D.                                    Exercise
Price:  $                per
share of Common Stock, subject to adjustment as provided in the attached Terms
and Conditions.

 

E.                                      Option
Period:  The Option may be exercised
as to all or any portion of the Vested Option Shares, but only during the
Option Period, which commences on the Grant Date and ends, generally, on the
earliest of (a) the tenth (10th) anniversary of the Grant Date; or (b) the
later of the date (i) ninety (90) days following the date the Optionee
ceases to be a director of the Company for any reason other than death or
Disability, or (ii) twelve months following the date the Optionee ceases
to be a director of the Company due to death or Disability; provided that the
Option may be exercised as to no more than the Vested Option Shares,
determined pursuant to Section 3 of the attached Terms and Conditions. Note that other limitations to exercising the Option, as described in
the attached Terms and Conditions, may apply.

 

 

IN WITNESS WHEREOF, the Company has executed
and sealed this Award as of the Grant Date set forth above.

 

 

	
   

  	
  NETBANK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:   Douglas K. Freeman

  
	
   

  	
  Title:Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

 

TERMS AND
CONDITIONS TO THE

NONQUALIFIED
STOCK OPTION AWARD

PURSUANT
TO THE NETBANK, INC.

1996 STOCK
INCENTIVE PLAN

 

1.                                       Exercise
of Option. Subject to the provisions provided herein or in the Award made
pursuant to the Plan:

 

(a)                                  the
Option may be exercised with respect to all or any portion of the Vested
Option Shares at any time during the Option Period by the delivery to the
Company, at its principal place of business, of a written notice of exercise in
substantially the form attached hereto as Exhibit 1, which shall be
actually delivered to the Company no earlier than thirty (30) days and no later
than ten (10) days prior to the date upon which Optionee desires to
exercise all or any portion of the Option; and

 

(b)                                 payment
to the Company of the Exercise Price multiplied by
the number of Option Shares being purchased (the “Purchase Price”) as
provided in Section 2; and

 

(c)                                  payment
of any tax withholding liability pursuant to Section 4 below.

 

Upon acceptance of such notice and receipt of
payment in full of the Purchase Price and tax withholding liability, the
Company shall cause to be issued a certificate representing the Vested Option
Shares purchased.

 

The Company may, from time to time, establish
other methods for exercise of Options, whether electronically, through an agent
or otherwise, as may be communicated to the Optionee.

 

2.                                       Purchase
Price. Payment of the Purchase Price for all Vested Option Shares purchased
pursuant to the exercise of an Option shall be made in cash or certified check
or, alternatively, as follows:

 

(a)                                  by
delivery to the Company of a number of shares of Common Stock which have been
owned by the Optionee for at least six (6) months prior to the date of the
Option’s exercise having a Fair Market Value, as determined under the Plan, on
the date of exercise either equal to the Purchase Price or in combination with
cash or a certified check to equal the Purchase Price; or

 

(b)                                 by
receipt of the Purchase Price in cash from a broker, dealer or other “creditor”
as defined by Regulation T issued by the Board of Governors of the Federal
Reserve System following delivery by the Optionee to the Committee of
instructions in a form acceptable to the Committee regarding delivery to
such broker, dealer or other creditor of that number of Option Shares with
respect to which the Option is exercised; or

 

(c)                                  any
combination of the foregoing.

 

3.                                       Vested
Option Shares. The Option Shares shall become Vested Option Shares upon                                      .

 

4.                                       Withholding.
The Optionee must satisfy any federal, state and local, if any, withholding
taxes imposed by reason of the exercise of the Option by paying to the Company
the full amount of the withholding obligation in cash or by certified check. In
lieu of paying the withholding obligation in cash or by certified check, the
Optionee may elect (i) to tender to the Company the smallest number
of whole shares of Common Stock which have been owned by the Optionee for at
least six (6) months prior to the date of the Option’s exercise having a
Fair Market Value as of the date of the Option exercise, as determined under
the Plan, sufficient to satisfy the amount of the withholding tax; or (ii) irrevocably
and in writing, in substantially the form attached hereto as Exhibit 2,
to have the

 

 

actual numbers of shares of Stock issuable upon exercise reduced by the
smallest number of whole shares of Stock which, when multiplied by the Fair
Market Value of the Common Stock as of the date the Option is exercised, is
sufficient to satisfy the amount of the withholding tax (either election is
referred to below as a “Withholding Election”). The Optionee may make a
Withholding Election only if the following conditions are met:

 

(a)                                  the Withholding
Election is made on or prior to the date on which the amount of tax required to
be withheld is determined (the “Tax Date”) by executing and delivering to the
Company a properly completed Withholding Election; and

 

(b)                                 any Withholding
Election made will be irrevocable; however, the Committee may, in its sole
discretion, disapprove and give no effect to any Withholding Election.

 

5.                                       Rights
as Shareholder. Until the stock certificates reflecting the Option Shares
accruing to the Optionee upon exercise of the Option are issued to the
Optionee, the Optionee shall have no rights as a shareholder with respect to
such Option Shares. The Company shall make no adjustment for any dividends or
distributions or other rights on or with respect to Option Shares for which the
record date is prior to the issuance of that stock certificate, except as the
Plan or the attached Award otherwise provides.

 

6.                                       Restriction
on Transfer of Option and of Option Shares. The Option evidenced hereby is
nontransferable other than by will or the laws of descent and distribution and
shall be exercisable during the lifetime of the Optionee only by the Optionee
(or in the event of his disability, by his personal representative) and after
his death, only by his legatee or the executor of his estate.

 

7.                                       Changes
in Capitalization.

 

(a)                                  The
number of Option Shares and the Exercise Price shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a subdivision or combination of shares or the payment of a
stock dividend in shares of Common Stock to holders of outstanding shares of
Common Stock or any other increase or decrease in the number of shares of
Common Stock outstanding effected without receipt of consideration by the
Company.

 

(b)                                 If
the Company shall be the surviving corporation in any merger or consolidation,
recapitalization, reclassification of shares or similar reorganization, the
Optionee shall be entitled to purchase or receive the number and class of
securities to which a holder of the number of shares of Common Stock subject to
the Option at the time of such transaction would have been entitled to receive
as a result of such transaction, and a corresponding adjustment shall be made
in the Exercise Price. A dissolution or liquidation of the Company shall cause
the Option to terminate as to any portion thereof not exercised as of the
effective date of the dissolution or liquidation. In the event of a sale of
substantially all of the Common Stock or property of the Company or the merger
or consolidation or any other reorganization, including a Change in Control of
the Company in which the Company is not the surviving entity, the Option Shares
shall become fully vested on the date determined by the Committee prior to the
effective date of the Change in Control, but no less than thirty days (30)
prior to the effective date of the Change in Control.

 

(c)                                  The
existence of the Plan and the Option granted pursuant to this Award shall not
affect in any way the right or power of the Company to make or authorize any
adjustment, reclassification, reorganization or other change in its capital or
business structure, any merger or consolidation of the

 

 

Company, any issue of debt or equity
securities having preferences or priorities as to the Common Stock or the
rights thereof, the dissolution or liquidation of the Company, any sale or
transfer of all or any part of its business or assets, or any other
corporate act or proceeding. Any adjustment pursuant to this Section may provide,
in the Committee’s discretion, for the elimination without payment therefor of
any fractional shares that might otherwise become subject to any Option.

 

8.                                       Special
Limitation on Exercise. No purported exercise of the Option shall be
effective without the approval of the Committee, which may be withheld to
the extent that the exercise, either individually or in the aggregate together
with the exercise of other previously exercised stock options and/or offers and
sales pursuant to any prior or contemplated offering of securities, would, in
the sole and absolute judgment of the Committee, require the filing of a
registration statement with the United States Securities and Exchange
Commission or with the securities commission of any state. If a registration
statement is not in effect under the Securities Act of 1933 or any applicable
state securities law with respect to shares of Common Stock purchasable or
otherwise deliverable under the Option, the Optionee (a) shall deliver to
the Company, prior to the exercise of the Option or as a condition to the
delivery of Common Stock pursuant to the exercise of an Option exercise, such
information, representations and warranties as the Company may reasonably
request in order for the Company to be able to satisfy itself that the Option
Shares are being acquired in accordance with the terms of an applicable
exemption from the securities registration requirements of applicable federal
and state securities laws and (b) shall agree that the shares of Common
Stock so acquired will not be disposed of except pursuant to an effective
registration statement, unless the Company shall have received an opinion of
counsel that such disposition is exempt from such requirement under the
Securities Act of 1933 and any applicable state securities law.

 

9.                                       Legend
on Stock Certificates. Certificates evidencing the Option Shares, to the
extent appropriate at the time, shall have noted conspicuously on the
certificates a legend intended to give all persons full notice of the existence
of the conditions, restrictions, rights and obligations set forth herein and in
the Plan.

 

10.                                 Governing
Laws. This Award and the Terms and Conditions shall be construed,
administered and enforced according to the laws of the State of Georgia.

 

11.                                 Successors.
This Award and the Terms and Conditions shall be binding upon and inure to the
benefit of the heirs, legal representatives, successors and permitted assigns
of the Optionee and the Company.

 

12.                                 Notice.
Except as otherwise specified herein, all notices and other communications
under this Award shall be in writing and shall be deemed to have been given if
personally delivered or if sent by registered or certified United States mail,
return receipt requested, postage prepaid, addressed to the proposed recipient
at the last known address of the recipient. Any party may designate any
other address to which notices shall be sent by giving notice of the address to
the other parties in the same manner as provided herein.

 

13.                                 Severability.
In the event that any one or more of the provisions or portion thereof
contained in the Award and these Terms and Conditions shall for any reason be
held to be invalid, illegal or unenforceable in any respect, the same shall not
invalidate or otherwise affect any other provisions of the Award and these
Terms and Conditions, and the Award and these Terms and Conditions shall be
construed as if the invalid, illegal or unenforceable provision or portion
thereof had never been contained herein.

 

14.                                 Entire
Agreement. Subject to the terms and conditions of the Plan, the Award and
the Terms and Conditions express the entire understanding of the parties with
respect to the Option.

 

15.                                 Violation.
Any transfer, pledge, sale, assignment, or hypothecation of the Option or any
portion thereof shall be a violation of the terms of the Award or these Terms
and Conditions and shall be void and without effect.

 

 

16.                                 Headings
and Capitalized Terms. Section headings used herein are for
convenience of reference only and shall not be considered in construing the
Award or these Terms and Conditions. Capitalized terms used, but not defined,
in either the Award or the Terms and Conditions shall be given the meaning
ascribed to them in the Plan.

 

17.                                 Specific
Performance. In the event of any actual or threatened default in, or breach
of, any of the terms, conditions and provisions of the Award and these Terms
and Conditions, the party or parties who are thereby aggrieved shall have the
right to specific performance and injunction in addition to any and all other
rights and remedies at law or in equity, and all such rights and remedies shall
be cumulative.

 

18.                                 No
Right to Continued Retention. Neither the establishment of the Plan nor the
award of Option Shares hereunder shall be construed as giving the Optionee the
right to continue as a director of the Company or any affiliate.

 

 

EXHIBIT 1

 

NOTICE OF
EXERCISE OF

STOCK
OPTION TO PURCHASE

COMMON
STOCK OF

NETBANK, INC.

 

Name

Address

 

Date

 

NetBank, Inc.

11475 Great Oaks Way, Suite 100

Alpharetta, Georgia  30022

 

Attention:                                         Chief
Executive Officer

 

Re:                               Exercise
of Nonqualified Stock Option

 

Gentlemen:

 

Subject to acceptance hereof by NetBank, Inc.
(the “Company”), pursuant to the provisions of the NetBank, Inc. 1996
Stock Incentive Plan (the “Plan”), I hereby give notice of my election to
exercise options granted to me to purchase                        
shares of common stock of the Company (“Common Stock”) under the Non-Qualified
Stock Option Award (the “Award”) dated as of                                    .
The purchase shall take place as of                                 ,
200       (the “Exercise Date”).

 

On or before the Exercise Date, I will pay
the applicable purchase price as follows:

 

o                                    by
delivery of cash or a certified check for $                      for
the full purchase price payable to the order of NetBank, Inc.

 

o                                    by
delivery of cash or a certified check for $                        representing
a portion of the purchase price with the balance to consist of shares of Common
Stock that I have owned for at least six months and that are represented by a
stock certificate I will surrender to the Company with my endorsement. If the
number of shares of Common Stock represented by such stock certificate exceed
the number to be applied against the purchase price, I understand that a new
stock certificate will be issued to me reflecting the excess number of shares.

 

o                                    by
delivery of a stock certificate representing shares of Common Stock that I have
owned for at least six months which I will surrender to the Company with my
endorsement as payment of the purchase price. If the number of shares of Common
Stock represented by such certificate exceed the number to be applied against
the purchase price, I understand that a new certificate will be issued to me
reflecting the excess number of shares.

 

o                                    by
delivery of the purchase price by                                               ,
a broker, dealer or other “creditor” as defined by Regulation T issued by
the Board of Governors of the Federal Reserve System. I hereby authorize the
Company to issue a stock certificate for the number of shares indicated above
in the name of said broker, dealer or other creditor or its nominee pursuant to

 

 

instructions received by the Company and to
deliver said stock certificate directly to that broker, dealer or other
creditor (or to such other party specified in the instructions received by the
Company from the broker, dealer or other creditor) upon receipt of the purchase
price.

 

As soon as the stock certificate is
registered in my name, please deliver it to me at the above address.

 

If the Common Stock being acquired is not
registered for issuance to and resale by the Optionee pursuant to an effective
registration statement on Form S-8 (or successor form) filed under the
Securities Act of 1933, as amended (the “1933 Act”), I hereby represent,
warrant, covenant, and agree with the Company as follows:

 

The shares of
the Common Stock being acquired by me will be acquired for my own account
without the participation of any other person, with the intent of holding the
Common Stock for investment and without the intent of participating, directly
or indirectly, in a distribution of the Common Stock and not with a view to, or
for resale in connection with, any distribution of the Common Stock, nor am I
aware of the existence of any distribution of the Common Stock;

 

I am not
acquiring the Common Stock based upon any representation, oral or written, by
any person with respect to the future value of, or income from, the Common
Stock but rather upon an independent examination and judgment as to the
prospects of the Company;

 

The Common
Stock was not offered to me by means of publicly disseminated advertisements or
sales literature, nor am I aware of any offers made to other persons by such
means;

 

I am able to
bear the economic risks of the investment in the Common Stock, including the
risk of a complete loss of my investment therein;

 

I understand
and agree that the Common Stock will be issued and sold to me without
registration under any state law relating to the registration of securities for
sale, and will be issued and sold in reliance on the exemptions from
registration under the 1933 Act, provided by Sections 3(b) and/or 4(2) thereof
and the rules and regulations promulgated thereunder;

 

The Common Stock
cannot be offered for sale, sold or transferred by me other than pursuant to: (A) an
effective registration under the 1933 Act or in a transaction otherwise in
compliance with the 1933 Act; and (B) evidence satisfactory to the Company
of compliance with the applicable securities laws of other jurisdictions. The
Company shall be entitled to rely upon an opinion of counsel satisfactory to it
with respect to compliance with the above laws;

 

The Company
will be under no obligation to register the Common Stock or to comply with any
exemption available for sale of the Common Stock without registration or
filing, and the information or conditions necessary to permit routine sales of
securities of the Company under Rule 144 under the 1933 Act are not now
available and no assurance has been given that it or they will become available.
The Company is under no obligation to act in any manner so as to make Rule 144
available with respect to the Common Stock;

 

I have and
have had complete access to and the opportunity to review and make copies of
all material documents related to the business of the Company, including, but
not limited to, contracts, financial statements, tax returns, leases, deeds and
other books and records. I have examined such of these documents as I wished
and am familiar with the business and affairs of the Company. I realize that
the purchase of the Common Stock is a speculative investment and that any
possible profit therefrom is uncertain;

 

I have had the
opportunity to ask questions of and receive answers from the Company and any
person acting on its behalf and to obtain all material information reasonably
available with respect to the Company and its affairs. I have received all
information and data with respect to the Company which I have

 

 

requested and which I have deemed relevant in
connection with the evaluation of the merits and risks of my investment in the
Company;

 

I have such
knowledge and experience in financial and business matters that I am capable of
evaluating the merits and risks of the purchase of the Common Stock hereunder
and I am able to bear the economic risk of such purchase; and

 

The
agreements, representations, warranties and covenants made by me herein extend
to and apply to all of the Common Stock of the Company issued to me pursuant to
this Award. Acceptance by me of the certificate representing such Common Stock
shall constitute a confirmation by me that all such agreements,
representations, warranties and covenants made herein shall be true and correct
at that time.

 

I understand that the certificates
representing the shares being purchased by me in accordance with this notice
shall bear a legend referring to the foregoing covenants, representations and
warranties and restrictions on transfer, and I agree that a legend to that
effect may be placed on any certificate which may be issued to me as
a substitute for the certificates being acquired by me in accordance with this
notice. I further understand that capitalized terms used in this Notice of
Exercise without definition shall have the meanings given to them in the Plan.

 

	
   

  	
   

  	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AGREED TO AND ACCEPTED:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NETBANK, INC.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Shares

  	
   

  	
   

  	
   

  	
   

  
	
  Exercised:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Shares Remaining:

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
										

 

 

EXHIBIT 2

 

NOTICE OF
WITHHOLDING ELECTION

NETBANK, INC.

1996 STOCK
INCENTIVE PLAN

 

TO:                                                                            NetBank, Inc.

 

	
  FROM:

  	
   

  	
   

  

 

RE:                                                                              Withholding
Election

 

This election relates to the Non-Qualified
Stock Option Award identified in Paragraph 3 below. I hereby certify that:

 

	
  (1)

  	
   

  	
  My correct name and social security number and my current
  address are set forth at the end of this document.

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  I am (check one, whichever is applicable).

  

 

 

o                                    the
original recipient of the Non-Qualified Stock Option Award.

 

o                                    the legal
representative of the estate of the original recipient of the Non-Qualified
Stock Option Award.

 

o                                    a legatee of
the original recipient of the Non-Qualified Stock Option Award.

 

o                                    the legal
guardian of the original recipient of the Non-Qualified Stock Option Award.

 

	
  (3)

  	
   

  	
  The Non-Qualified Stock Option Award pursuant to which
  this election relates was issued under the NetBank, Inc. 1996 Stock
  Incentive Plan (the “Plan”) in the name of
                      
  for a total of
                      
  shares of Common Stock. This election relates to
             shares of Common
  Stock issuable upon exercise, provided that the numbers set forth above shall
  be deemed changed as appropriate to reflect stock splits and other
  adjustments contemplated by the applicable Plan provisions.

  

 

 

 

(4)                I hereby irrevocably elect to
have the actual numbers of shares of Stock issuable upon exercise reduced by
the smallest number of whole shares of Stock which, when multiplied by the Fair
Market Value of the Common Stock as of the date the Option is exercised, is
sufficient to satisfy the amount of the withholding tax.

 

(5)                This Withholding Election is made
no later than the Tax Date and is otherwise timely made pursuant to the Plan.

 

(6)                I understand that this
Withholding Election is made prior to the Tax Date and is otherwise timely made
pursuant to Section 1 of the Award and Section 5.1 of the Plan.

 

(7)                I further understand that, if the
Company does not disapprove this Withholding Election, the Company shall withhold
from the Common Stock a whole number of shares of Common Stock having the value
specified in Paragraph 4 above.

 

(8)                The Company has made the Plan
available to me, I have read and understand the Plan and I have no reason to
believe that any of the conditions therein to the making of this Withholding
Election have not been met. Capitalized terms used in this Notice of
Withholding Election without definition shall have the meanings given to them
in the Plan.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name (Printed)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street Address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State, Zip Code

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]