Document:

Exhibit

EXHIBIT 10.06

STATE AUTO FINANCIAL CORPORATION

RESTRICTED STOCK AGREEMENT
UNDER THE
2009 EQUITY INCENTIVE COMPENSATION PLAN

This Restricted Stock Agreement (this “Agreement”) is made as of March 3, 2016 (the “Award Date”).  The Compensation Committee of the Board of Directors of State Auto Financial Corporation, an Ohio corporation (the “Company”), hereby awards to Kim B. Garland (the “Awardee”) 2,079 common shares, without par value, of the Company (the “Restricted Shares”).  The Restricted Shares are awarded pursuant to the terms of the Company’s 2009 Equity Incentive Compensation Plan (the “Plan”) and shall be subject to all of the provisions of the Plan, which are hereby incorporated herein by reference, and shall be subject to the following provisions of this Agreement.  Capitalized terms used in this Agreement which are not otherwise defined herein shall have the meanings ascribed to such terms in the Plan.
§1.    Award of Restricted Shares.  The purchase price for the Restricted Shares shall be zero.  Following the execution and delivery of this Agreement by the Awardee, the Company shall cause a share certificate evidencing the Restricted Shares to be issued in the Awardee’s name (the “Share Certificate”).
§2.    Forfeiture.  The Restricted Shares shall be forfeited to the Company if the Awardee’s employment with the Company terminates for any reason prior to the third anniversary of the Award Date (the “Lapse Date”), or if the Awardee violates any provision of this Agreement.
§3.    Transfer Restrictions.  None of the Restricted Shares, nor any beneficial interest therein, shall be sold, assigned, pledged or otherwise transferred, voluntarily or involuntarily, prior to the Lapse Date.  Thereafter, the Restricted Shares may be transferred only in compliance with all applicable federal and state securities laws.  Any transfer or attempted transfer in violation of the foregoing restrictions shall be null and void.
§4.    Acceptance of Award.  The award of the Restricted Shares must be accepted by the Awardee within 30 days after the Award Date by executing this Agreement.  The Awardee shall not have any rights with respect to the Restricted Shares awarded under this Agreement unless and until the Awardee has executed this Agreement, delivered a fully executed copy thereof to the Secretary of the Company, and otherwise complied with the applicable terms and conditions of the award of the Restricted Shares.
§5.      Rights As Shareholder.  Subject to the terms of this Agreement, on and after the issuance of the Share Certificate to the Awardee, the Awardee shall have all of the rights of a shareholder of the Company with respect to the Restricted Shares, including the right to vote the Restricted Shares and the right to receive any dividends or other distributions with respect to the Restricted Shares, but subject, however, to the restrictions on transfer set forth in this Agreement.  Notwithstanding the foregoing, any cash dividends or other cash distributions paid on the Restricted Shares prior to the Lapse Date shall be automatically reinvested in common shares of the Company (the “Dividend Shares”) pursuant to the terms of the Company’s dividend reinvestment and stock purchase plan and shall be held in an account with Fidelity, or its successor, under the Awardee’s name.  Until the Lapse Date, the Dividend Shares shall be subject to the restrictions on transfer set forth in §3, above.  However, the Dividend Shares shall not be subject to any risk of forfeiture.  
§6.    Escrow of Shares.  The Share Certificate shall be held by the Company until the earlier of the Lapse Date or the termination of the Awardee’s employment with the Company.  If the Restricted Shares are forfeited to the Company under §2, above, then the Company shall cause the Restricted Shares to be transferred to the Company.  If the Restricted Shares are not forfeited to the Company, then the Company shall deliver the Shares to the Awardee.
§7.    Tax Consequences.  The Awardee understands that the Awardee (and not the Company) shall be responsible for the federal, state, local or foreign tax liability and any other tax consequences that may arise as a result of the transactions 

contemplated by this Agreement, including without limitation filing an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “83(b) Election” and the “Code”, respectively), if the Awardee deems it to be appropriate.  The Awardee shall rely solely on the determinations of the Awardee’s tax advisors or the Awardee’s own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters.  The Awardee shall notify the Company in writing if the Awardee files the 83(b) Election with the Internal Revenue Service within 30 days from the date of the execution of this Agreement.  The Company intends, in the event it does not receive from the Awardee evidence of the 83(b) Election filing by the Awardee, to claim a tax deduction for any amount which would be taxable to the Awardee in the absence of such an election.  If the Company is required to withhold or pay any taxes with respect to the issuance or vesting of the Restricted Shares, the Awardee shall pay to the Company the amount of such required withholding or payment promptly following the Company's request.
§8.    Compliance with Securities Laws.  No Restricted Shares shall be deliverable under this Agreement or the Plan except in compliance with all applicable federal and state securities laws and regulations.  The Company may require the Awardee to (a) represent and warrant to and agree with the Company in writing that the Awardee is acquiring the Restricted Shares without a view to distribution thereof, and (b) make such additional representations, warranties and agreements with respect to the investment intent of the Awardee as the Company may reasonably request.
The Share Certificate shall be subject to such stop-transfer orders and other restrictions as the Company may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Company’s common shares are then listed, and any applicable federal or state securities laws, and the Company may cause a legend or legends to be put on the Share Certificate to make appropriate reference to such restrictions.
	
	
	STATE AUTO FINANCIAL CORPORATION

	 

	By:  /s/ Melissa Centers    

	Melissa Centers, Senior Vice President, Secretary and General

	Counsel (as authorized and approved by the Compensation

	Committee of the Board of Directors)

Acceptance of Agreement
Kim B. Garland, the Awardee, hereby:  (a)  acknowledges receiving a copy of the Plan and represents that the Awardee is familiar with all provisions of the Plan; and (b) accepts this Agreement and the award of the Restricted Shares under this Agreement subject to all terms, provisions and restrictions of both the Plan and this Agreement.            
	
	
	/s/ Kim B. Garland

	Kim B. Garland

	 

	Accepted as of:  March 27, 2016Exhibit

Exhibit 10.1

PDL BIOPHARMA, INC.

2016 Annual Bonus Plan

This 2016 Annual Bonus Plan (the “Plan”) is intended to enhance stockholder value by promoting a connection between the performance of PDL BioPharma, Inc. (the “Company”) and the compensation of personnel of the Company and to promote retention of high performing personnel.  The Plan is being implemented under the Company’s Amended and Restated 2005 Equity Incentive Plan (as amended, the “2005 Equity Plan”), which was approved by the Company’s stockholders.  The annual bonuses will be granted as a Cash-Based Award pursuant to the 2005 Equity Plan. 
 
1.All employees of the Company working 30 hours per week or more (each, a “Participant”) are eligible to receive annual bonuses for 2016 according to this Plan. The Plan will be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”).  The Committee shall have all powers and discretion necessary to administer the Plan and to control its operation and may delegate responsibilities to Company officers as it deems appropriate. Participants are eligible to receive bonuses upon the achievement of the threshold goal specified in Section 2. A Participant who does not demonstrate satisfactory individual performance (50% or higher), however, will not be eligible for any portion of his or her bonus, including the portion based on Company performance.    
2.For the purpose of payments under the Plan qualifying as Performance-Based Compensation under the 2005 Equity Plan, the threshold goal shall be the consummation of corporate transactions resulting in the acquisition of income generating assets with an aggregate value of not less than $50 million on or prior to December 31, 2016. 
3.The determination of the amount of payments under the plan shall be based on the performance of the 2016 Corporate Goals and the 2016 Individual Goals as well as the other factors set forth in this Section 3.  Company performance shall be determined by the Committee based on the Company’s ability to meet or exceed corporate goals (“2016 Corporate Goals”) as approved by the Committee and/or the Board of Directors and set forth in Exhibit A. Additionally, the Committee may adjust or modify the 2016 Corporate Goals to reflect changed Company objectives.  Individual performance of the Company’s officers shall be reviewed and recommended to the Committee by the Chief Executive Officer, except for the performance of the Chief Executive Officer, which shall be determined by the Committee based on the Company’s achievement of established Corporate Goals. Individual performance of employees shall be reviewed by the appropriate manager and approved by the Chief Executive Officer.  In all cases, individual performance shall be based on the 2016 Individual Goals that have been approved by the Chief Executive Officer and set forth as Exhibit B (the “2016 Individual Goals”).
The Committee shall have the sole discretion on the basis of individual or corporate performance metrics to determine that the actual amount paid with respect to a Participant’s award will be equal to or less than (but not greater than) the 

maximum payout calculated.  For clarification, the Committee may determine, in its sole discretion on the basis of individual or corporate performance metrics that a reduced bonus, or no bonus, shall be paid to individual, regardless of achievement of the 2016 Corporate Goals or the 2016 Individual Goals.  
4.To be eligible for a bonus, a Participant must be on payroll prior to October 1, 2016, and must be employed by the Company as of the date of payment of the bonus. A Participant hired after April 1, 2016, shall be eligible for a pro-rated bonus.  
5.A Participant who has taken an approved leave of absence pursuant to the Company’s policies during 2016 shall receive a pro-rated bonus, at the Compensation Committee's discretion. 
6.The amount of a Participant’s bonus is based on a target percentage of such Participant’s annual average base salary throughout the 2016 calendar year.  The target percentage for executives has been determined by the Committee and for employees has been determined by the manager at the beginning of the Plan Year.  The target percentage shall then be adjusted based on the attainment of 2016 Corporate Goals and Individual Goals over the course of the Plan Year to arrive at a final performance percentage.  For each person, the target percentage and ratio of attainment of 2016 Corporate Goals and 2016 Individual Goals is set forth as Exhibit C.
7.The Company performance percentage and/or the individual performance percentage may exceed 100% in the event the Company or the individual Participant exceeds expected goals, provided that neither percentage may exceed 200%. For example, assuming the Company has met 100% of its 2016 Corporate Goals, a Participant, who has met 150% of his or her 2016 Individual Goals, has a target percentage of 25%, has a corporate-to-individual goal ratio of 50%/50% and a base pay rate of $100,000 will receive a bonus of $31,250 (100% x 0.5 + 150% x 0.5 = 125%; and 125% x 25% = 31.25%; and 31.25% of Participant’s base pay rate of $100,000 = $31,250).  All determinations and decisions made by the Committee shall be final, conclusive and binding on all persons and shall be given the maximum deference permitted by law.
8.This Plan is effective for the Company’s 2016 calendar year beginning January 1, 2016, through December 31, 2016 (the “Plan Year”), and will expire automatically on December 31, 2016.  Bonus payments will be made no later than February 15th, 2017.
9.The Company shall withhold all applicable taxes from any bonus payment, including any federal, state and local taxes.
10.Nothing in this Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. Nothing in these guidelines should be construed as an employment agreement or an entitlement to any Participant for any incentive payment hereunder. 

11.This Plan and all awards shall be construed in accordance with and governed by the laws of the State of Nevada, without regard to its conflict of law provisions.
12.Payments under this Plan shall be unsecured, unfunded obligations of the Company.  To the extent a Participant has any rights under this Plan, the Participant’s rights shall be those of a general unsecured creditor of the Company. 
13.It is the intent of the Company that the Plan, and all payments made hereunder, satisfy and be interpreted in a manner that, in the case of Participants who are persons whose compensation is subject to Section 162(m), qualify as Performance-Based Compensation under Section 162(m).  Any provision, application or interpretation of the Plan inconsistent with this intent to satisfy the requirements of Section 162(m) shall be disregarded.  However, notwithstanding anything to the contrary in the Plan, the provisions of the Plan may at any time be bifurcated by the Committee in any manner so that certain provisions of the Plan or any payment intended (or required in order) to satisfy the applicable requirements of Section 162(m) are only applicable to persons whose compensation is subject to the limitations on deductibility of compensation provided under Section 162(m).

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