Document:

exv10w1

AMENDMENT NO. 1 TO FORBEARANCE AGREEMENT

     AMENDMENT NO. 1, dated as of January 22, 2010 (this “Amendment”), among RHI
Entertainment, LLC (the “Borrower”), its subsidiaries party to the Credit Agreement
described below as Guarantors (the “Guarantors”, and together with the Borrower, the
“Credit Parties”), RHI Entertainment Holdings II, LLC (the “Parent”), the Lenders
signatory hereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders (in such
capacity, the “Agent”) and as Issuing Bank to the FORBEARANCE AGREEMENT described below.

     WHEREAS, the Borrower, the Guarantors, the Parent, the Lenders from time to time party thereto
(the “Lenders”) and the Agent are parties to a Credit, Security, Guaranty and Pledge
Agreement, dated as of January 12, 2006, as amended and restated on April 13, 2007 (as the same may
have been or may from time to time be further amended, restated, supplemented or modified from time
to time, the “Credit Agreement”).

     WHEREAS, on December 23, 2009, the Borrower terminated certain specified Swap Agreements,
which constitute “Obligations” under the Credit Agreement, pursuant to arrangements with the
Lenders counter-party thereto (each, a “Lender Counterparty”).

     WHEREAS, the Borrower, the Guarantors, the Parent, the Agent, the Lenders constituting the
Required Lenders under the Credit Agreement and the Lender Counterparties have entered into that
certain Forbearance Agreement dated as of December 23, 2009 (as amended, restated, supplemented or
modified from time to time, including (upon satisfaction of the conditions precedent set forth
herein) via this Amendment, the “Forbearance Agreement”).

     WHEREAS, pursuant to the Forbearance Agreement, among other things, the Agent, the Required
Lenders and the Lender Counterparties agreed to forbear from exercising remedies with respect to,
and to temporary waivers with respect to, certain “Specified Defaults” through the end of a
“Forbearance Period” with a stated expiration date of 5:00 p.m. (New York City time) on January 22,
2010.

     WHEREAS, the Agent, the Required Lenders and the Lender Counterparties are willing to agree,
subject to the terms and conditions of this Amendment, to provide for an extension of the scheduled
termination of the forbearances and temporary waivers provided in the Forbearance Agreement.

     WHEREAS, in order to induce the Agent, the Required Lenders and the Lender Counterparties to
agree to such extension, the Credit Parties have agreed to make certain acknowledgments and enter
into certain agreements as hereinafter set forth.

     ACCORDINGLY, the parties hereby agree as follows:

     1. Defined Terms. All capitalized terms not otherwise defined herein are used as
defined in the Forbearance Agreement or the Credit Agreement, as applicable.

 

 

     2. Acknowledgment of Events of Default. The Credit Parties acknowledge and agree that
the following Events of Default exist under the Credit Agreement: (A) an Event of Default arising
under Sections 2.10(e) and 7(b) of the Credit Agreement as a result of a Borrowing Base overadvance
and (B) an Event of Default under Section 7(c) of the Credit Agreement as a result of Borrower’s
failure to pay the Termination Amounts and interest thereon.

     3. Amendments to Forbearance Agreement.

          (a) The definition of the following term appearing in the Forbearance Agreement is hereby
amended and restated in its entirety:

“Stated Expiration Date” shall mean 5:00 p.m. (New York City time) on
February 26, 2010.

          (b) Section 6(c)(vii) of the Forbearance Agreement is hereby replaced in its entirety with the
following:

“(vii) that the Credit Parties will during the Forbearance Period limit their cash
disbursements to those that are materially consistent with the payments set forth on
the 13-week cash flow schedule the cover page of which is marked as “RHI
Entertainment, LLC 13 Week Cash Flow Forecast January 11, 2010 — April 9, 2010” and
the first page of which is marked as “13 Week Cash Flow Forecast — January 11, 2010
— April 9, 2010 as of January 14, 2010” which was previously presented to the Agent
(such cash flow forecast, together with the back-up provided along therewith, the
“Base Cash Flow Schedule”) and amounts required to be paid pursuant to
Section 6(c)(iv) hereof; in furtherance of the foregoing, the Credit Parties agree
that during the Forbearance Period they shall not, without the written consent of
Lenders holding at least 40% of the Total Commitments (a) make monetary payments
that are not reflected in the Base Cash Flow Schedule in an aggregate amount equal
to or in excess of $500,000 for the period commencing on the effectiveness of that
certain Amendment No. 1 dated as of January 22, 2010 to this Agreement and prior to
the Stated Expiration Date, (b) with respect to any line item or category which is
reflected in the Base Cash Flow Schedule (whether such line item or category is
scheduled thereon to receive payments prior or subsequent to the Stated Expiration
Date (or both)) make payments that as of any date of determination are in excess of
110% of the amount reflected on the Base Cash Flow Schedule as being payable with
respect to such line item or category through such date of determination,
provided that, subject always to the following clause (c): (1) this
clause (b) shall not limit the amount of payments of fees and expenses of the
financial advisors and counsel to the Agent during the Forbearance Period or (so
long as the payments are for services rendered rather than to be rendered) payments
of fees and expenses of legal counsel to the Credit Parties during the Forbearance
Period and (2) in the context of line items or categories reflected on the Base Cash
Flow Schedule of less than $50,000, the Credit Parties may pay amounts in excess of
the scheduled payments so long as (A) the total payment does not exceed $50,000 and
(B) the amounts paid with

2

 

respect to such line item or category do not exceed the total amounts reflected on
the Base Cash Flow Schedule as payable with respect thereto or (c) permit their
aggregate payments as of any date of determination to exceed 110% of the aggregate
payments projected in the Base Cash Flow Schedule to be made through such date of
determination;”

          (c) Section 6(c)(viii) of the Forbearance Agreement is hereby replaced in its entirety with
the following:

“(viii) that the Credit Parties shall not permit their aggregate minimum cash
balance at any time to be less than $12,500,000.”

          (d) Section 6(c)(ix) of the Forbearance Agreement is hereby amended by deleting the text “,
and” appearing at the end of clause (1) therein and inserting in lieu thereof a semi-colon, and by
deleting clause (2) appearing therein and inserting in lieu thereof the following clauses (2) and
(3):

“(2) reports on the Credit Parties’ accounts payable as of the preceding Friday,
which reports shall show summary aging by obligee and shall be in Microsoft Excel
format and otherwise in form and substance satisfactory to the Agent and FTI; and

(3) reports on the Credit Parties’ accounts receivable (both GAAP and off-balance
sheet, i.e., all contracted amounts) as of the preceding Friday, which reports
shall show detail by customer; which reports shall be in Microsoft Excel format
and otherwise in form and substance acceptable to the Agent and FTI;”

          (e) Section 6(c)(xii) of the Forbearance Agreement is hereby replaced in its entirety with the
following:

“(xii) that the Credit Parties will by no later than 5:00 p.m. (New York City
time) on February 25, 2010 provide the Agent with (A) the unaudited consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of the end of,
and the related unaudited consolidated statements of income, stockholders’ equity
and cash flows for, the month ending January 31, 2010, and for the portion of the
fiscal year through the end of such month, together with a certificate signed by
an Authorized Officer of the Borrower to the effect that such financial
statements, while not examined by independent public accountants, reflect, in the
opinion of the Borrower, all adjustments necessary to present fairly in all
material respects the financial position of the Borrower and its Consolidated
Subsidiaries as of the end of such month and the results of operations for such
month and year-to-date period then ended in conformity with GAAP, subject to
normal year-end audit adjustments and the absence of footnotes, (B) a
reconciliation between the foregoing and the GAAP accounts receivable aging as of
January 31, 2010, (C) a detail of aggregate accounts receivable (both GAAP and
off-balance sheet, i.e., all contracted amounts) as of January 31, 2010 which
includes RHI’s detailed contracted accounts receivable

3

 

as of January 31, 2010, including customer, title, due-date and identification of
each item of accounts receivable as book or non-book, (D) a reconciliation from
RHI’s January 31, 2010 book accounts receivable to RHI’s January 31, 2010 balance
sheet accounts receivable and (E) a roll-forward of aggregate accounts receivable
from December 31, 2009 to January 31, 2010, which shall consist of the total
of (1) the beginning accounts receivable plus (2) receivables
generated from sales consummated during such month, minus (3) cash
collections minus (4) receivables write-offs during such month (with the
materials described in the foregoing clauses (B) through (E) to be in form and
substance satisfactory to the Agent and FTI).”

          (f) Section 6(c)(xviii) of the Forbearance Agreement is amended by deleting the word “and”
appearing after the semi-colon at the end thereof, Section 6(c)(xix) of the Forbearance Agreement
is amended by deleting the period at the end thereof and inserting in lieu of such period the text
”; and”, and the following Section 6(c)(xx) is hereby added at the end of Section 6(c) of the
Forbearance Agreement:

“(xx) that the Credit Parties shall, by no later than February 25, 2010, (a) cause
its Subsidiary, RHI Entertainment Ltd., to become a Credit Party by delivering an
Instrument of Assumption and Joinder and such other local law documents as the
Administrative Agent may reasonably request and (b) use its best efforts to cause
Account Control Agreements to be delivered with respect to: the deposit account
numbered 001-01150-8 maintained by the Borrower with American Express; the deposit
account numbered 30403261 maintained by RHI Entertainment Ltd. with Barclays Bank;
and the deposit account numbered 062-438-1009-6303 maintained by RHI Entertainment
Australia Pty Ltd. with Commonwealth Bank of Australia (in the case of the last
account, with the Account Control Agreement containing an embedded grant of a
security interest by RHI Entertainment Australia Pty Ltd. in favor of the Agent on
in the amounts from time to time standing in such account).”

          (g) Schedule 1 to the Forbearance Agreement, which reflects the “Specified Defaults”,
is hereby replaced in its entirety with Schedule 1 to this Amendment.

     4. Incorporation of Terms. Upon the effectiveness of this Amendment, (a) the
forbearances contained in Section 4(a) the Forbearance Agreement (and, in the case of the Specified
Defaults listed as Items 1 and 2 appearing on Schedule 1 to this Amendment, the temporary
waivers with respect thereto contained in Section 4(b) of the Forbearance Agreement) are hereby
remade and extended with respect to the revised schedule of Specified Defaults attached as
Schedule 1 to this Amendment during the Forbearance Period (as modified by the amendment to
the “Stated Expiration Date” set forth in this Amendment) and (b) the reservation of rights
contained in Section 5 of the Forbearance Agreement is hereby restated and reaffirmed in all
respects.

     5. Acknowledgements, Representations, Warranties, Confirmations, and Agreements.

4

 

          (a) Each Credit Party hereby represents and warrants to Agent and each of the Lenders that:

               (i) no Defaults or Events of Defaults other than the Specified Defaults listed on Schedule
1 hereto have occurred and are continuing as of the date hereof or, as of the date hereof, are
expected to occur prior to the Stated Expiration Date (as such term would be modified via this
Amendment);

               (ii) Schedule 2 hereto identifies each of the Credit Parties’ and each of their
Subsidiaries’ deposit accounts, lists the balances in such deposit accounts as of January 14, 2010
and specifies whether or not an Account Control Agreement has been delivered with respect to such
deposit account;

               (iii) as of January 14, 2010, the aggregate gross value of all of the assets of any
Subsidiaries which have not become a Credit Party because of the $250,000 threshold appearing in
Section 5.21 of the Credit Agreement, is approximately $592,000, and Schedule 3 hereto
identifies the gross asset value of such Subsidiaries on a per-Subsidiary basis.

          (b) Each Credit Party hereby covenants and agrees to continue to comply with each of the
covenants and agreements contained in Section 6(c) of the Forbearance Agreement as the same is
being modified by this Amendment.

          (c) The Administrative Agent and the Required Lenders hereby acknowledge and agree that the
provisions of Section 5.1(c) of the Credit Agreement, which call for the delivery of monthly
Borrowing Base Certificates, are hereby indefinitely suspended and waived.

          (d) Notwithstanding the suspension and waiver set forth in the foregoing Section 5(c), the
Borrower acknowledges and agrees that (i) the Agent shall be entitled to reinstate the requirements
of Section 5.1(c) of the Credit Agreement prospectively upon written notice to the Borrower (with
the Borrower being required to deliver Borrowing Base Certificates on such subsequent dates as
required by Section 5.1(c) as well as, within five (5) Business Days from such reinstatement, the
most recent Borrowing Base Certificate that would have been required to be delivered prior to such
reinstatement had Section 5.1(c) not theretofore been suspended) and (ii) prior to such a
reinstatement of the requirements of Section 5.1(c) of the Credit Agreement pursuant to the
foregoing clause 5(d)(i), the Borrower will deliver, within five (5) Business Days of receipt of a
request from the Agent, the most recent Borrowing Base Certificate that would have been required to
be delivered as of the Agent’s request had Section 5.1(c) not been suspended, and that failure to
deliver such a Borrowing Base Certificate within such five (5) Business Day period shall constitute
a Termination Event.

          (e) With respect to those certain LIBOR Loans which had Interest Periods ending on or about
December 29, 2009 but which were erroneously continued on such date into LIBOR Loans with Interest
Periods ending on or about January 29, 2010, the Credit Parties, the Lenders and the Agent
acknowledge and agree that (i) such Loans are hereby deemed to have been converted into Alternate
Base Rate Loans on December 29, 2009, (ii) the Agent and the Borrower shall perform accrual
adjustments in good faith to effectuate the conversion of the aforementioned Loans from LIBOR Loans
to Alternate Base Rate Loans and (iii) any Default or

5

 

Event of Default arising under the Credit Agreement as a result of having continued such LIBOR
Loans until on or about January 29, 2010 is hereby waived. Accordingly, all outstanding LIBOR
Loans have, either prior to the date hereof or in accordance with the preceding sentence, been
converted to Alternate Base Rate Loans and the next Interest Payment Date for all Loans under the
Facilities will be March 31, 2010.

          (f) Each Credit Party and the Parent hereby forever releases the Agent, each of the Lenders
and each of the Lender Counterparties from any and all liens, claims, interests and causes of
action of any kind or nature (each, a “Claim”) that any Credit Party now has or may
hereafter have against the Agent or any of the Lenders, and hereby agrees to indemnify and hold
harmless the Agent, each of the Lenders and each of the Lender Counterparties for all Claims that
any Person may bring against the Agent or any of the Lenders that (i) arise under or in connection
with the Credit Agreement or any other Fundamental Documents (and under any Specified Swap
Agreement, as applicable) based on facts existing on or before the date hereof or (ii) arise under
or in connection with this Amendment; provided that the Credit Parties may bring claims or
causes of action solely to enforce the provisions of the Forbearance Agreement (as modified by this
Amendment).

     6. Conditions to Effectiveness. The provisions of this Amendment shall not become
effective unless and until each of the following conditions have been satisfied:

          (a) the Agent shall have received counterparts of this Amendment executed by the Borrower,
each Guarantor (and any entity required to join the Credit Agreement as a Guarantor pursuant to
Section 5.21 of the Credit Agreement), the Parent, the Agent, each Lender Counterparty and the
Lenders constituting the Required Lenders;

          (b) after giving effect to this Amendment, no Event of Default or Default (with the sole
exception of (i) the Specified Defaults or (ii) any Default or Event of Default arising solely from
the inaccuracy of any representation or warranty contained in the Credit Agreement to the extent
that any such inaccuracy exists solely because of the existence of any Specified Default) shall
have occurred and be continuing;

          (c) the representations and warranties contained in Sections 5(a) and 7 hereof shall be true
and correct; and

          (d) all legal matters related to this Amendment shall be satisfactory to Morgan, Lewis &
Bockius, LLP, counsel to the Agent.

     7. Representations and Warranties. Each Credit Party represents and warrants that
before and after giving effect to this Amendment the representations and warranties contained in
the Credit Agreement are true and correct in all material respects on and as of the date hereof as
if such representations and warranties had been made on and as of the date hereof (except to the
extent (a) that any such representations and warranties specifically relate to an earlier date and
(b) to the extent that any such representation or warranty would not be true and correct solely
because of the existence of any Specified Default described on Schedule 1 hereto).

6

 

     8. Entire Agreement. This Amendment constitutes the entire agreement of the parties
concerning the subject matter hereof and supersedes any prior or contemporaneous representations or
agreements, either oral or written, not contained herein.

     9. Further Assurances. At any time and from time to time, upon the Agent’s request
and at the sole expense of the Credit Parties, each Credit Party will promptly and duly execute and
deliver any and all further instruments and documents and take such further action as the Agent
reasonably deems necessary to effect the purposes of this Amendment.

     10. Fundamental Documents. This Amendment shall constitute a Fundamental Document.

     11. Full Force and Effect. Except as expressly set forth herein, this Amendment does
not constitute a waiver or a modification of any provision of the Forbearance Agreement or the
Credit Agreement or a waiver of any Event of Default under the Credit Agreement. The Forbearance
Agreement and the Credit Agreement and the other Fundamental Documents shall continue in full force
and effect in accordance with the provisions thereof on the date hereof and are hereby ratified and
affirmed. As used in the Credit Agreement, the terms “Agreement”, “this Agreement”, “herein”,
“hereafter”, “hereto”, “hereof”, and words of similar import, shall, unless the context otherwise
requires, mean the Credit Agreement as modified by the Forbearance Agreement (including this
Amendment). As used in the Forbearance Agreement, the terms “Agreement”, “this Agreement”,
“herein”, “hereafter”, “hereto”, “hereof”, and words of similar import, shall, unless the context
otherwise requires, mean the Forbearance Agreement as modified by this Amendment.

     12. APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

     13. Counterparts. This Amendment may be executed in two or more counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute but one
instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile
transmission or electronic photocopy (e.g., “.pdf”) shall be effective as delivery of a manually
executed counterpart hereof.

     14. Headings. The headings of this Amendment are for the purposes of reference only
and shall not affect the construction of or be taken into consideration in interpreting this
Amendment.

     15. Public/Private Information. Each of the Lenders acknowledges that information
furnished to it pursuant to this Amendment may include material non-public information concerning
the Borrower and its related parties or their respective securities, and confirms that it has
developed compliance procedures regarding the use of material non-public information and that it
will handle such material non-public information in accordance with those procedures and applicable
law, including federal and state securities laws. All such information, including requests for
waivers and amendments, furnished by the Borrower pursuant to, or in the course of administering,
this Amendment, will be syndicate-level information, which may contain material

7

 

non-public information about the Borrower and its related parties or their respective
securities. Accordingly, each Lender represents to the Borrower and the Agent that it has
identified in its “Administrative Questionnaire” a credit contact who may receive information that
may contain material non-public Information in accordance with its compliance procedures and
applicable law.

[Signature Pages Follow]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
duly authorized officers, all as of the date and year first above written.

	 	 	 	 	 
	 	BORROWER:

RHI ENTERTAINMENT, LLC

 	 
	 
	 	By:  	/s/ William J. Aliber	 
	 	 	Name:  	William J. Aliber	 
	 	 	Title:  	Chief Financial Officer	 
	 

	 	 	 	 	 
	 	PARENT:

RHI ENTERTAINMENT HOLDINGS II, LLC

 	 
	 
	 	By:  	/s/ William J. Aliber	 
	 	 	Name:  	William J. Aliber	 
	 	 	Title:  	Chief Financial Officer	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	GUARANTORS:

RHI ENTERTAINMENT DISTRIBUTION, LLC

 	 
	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	Exec. V.P., General Counsel

& Secretary 	 
	 

	 	 	 	 	 
	 	RHI ENTERTAINMENT PRODUCTIONS, LLC

 	 
	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	Exec. V.P., General Counsel

& Secretary 	 
	 

	 	 	 	 	 
	 	LIBRARY STORAGE, INC.

 	 
	 
	 	By:  	/s/ Michael Scarpelli
 	 
	 	 	Name:  	Michael Scarpelli 	 
	 	 	Title:  	President & Secretary 	 
	 

	 	 	 	 	 
	 	RHI INTERNATIONAL DISTRIBUTION, INC.

 	 
	 
	 	By:  	/s/ Michael Scarpelli
 	 
	 	 	Name:  	Michael Scarpelli 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	LENDERS:

JPMORGAN CHASE BANK, N.A., individually

and as Agent

 	 
	 
	 	By:  	/s/ Patricia S. Carpen
 	 
	 	 	Name:  	Patricia S. Carpen 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	Bank of America, NA,

as Lender

 	 
	 
	 	By:  	/s/ David Maiorella
 	 
	 	 	Name:  	David Maiorella 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	Royal Bank of Scotland PLC,

as Lender 

 	 
	 
	 	By:  	/s/ Thomas Brady
 	 
	 	 	Name:  	Thomas Brady 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	BNP Paribas,

as Lender

 	 
	 
	 	By:  	/s/ Barbara Eppolito
 	 
	 	 	BARBARA EPPOLITO 	 
	 	 	DIRECTOR 	 
	 
	 	 	 
	 	By:  	

/s/ Yung Wu
 	 
	 	 	Yung Wu 	 
	 	 	Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	ISRAEL DISCOUNT BANK OF NEW YORK,

as Lender

 	 
	 
	 	By:  	/s/ David Acosta
 	 
	 	 	Name:  	David Acosta 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	By:  	

/s/ Michael Paul
 	 
	 	 	Name:  	Michael Paul 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	California Bank & Trust,

as Lender

 	 
	 
	 	By:  	/s/ Leslie Reuter
 	 
	 	 	Name:  	Leslie Reuter 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	Manufacturers Bank

as Lender

 	 
	 
	 	By:  	/s/ Maureen Kelly
 	 
	 	 	Name:  	Maureen Kelly 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	JPMorgan Chase Bank, N.A.,

as Lender Counterparty

 	 
	 
	 	By:  	/s/ Patricia S. Carpen
 	 
	 	 	Name:  	Patricia S. Carpen 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Lender Counterparty

 	 
	 
	 	By:  	/s/ Roger Heintzelman
 	 
	 	 	Name:  	Roger Heintzelman 	 
	 	 	Title:  	Principal 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

	 	 	 	 	 
	 	The Royal Bank of Scotland PLC,

as Lender Counterparty

 	 
	 
	 	By:  	/s/ Thomas Brady
 	 
	 	 	Name:  	Thomas Brady 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1 to RHI Forbearance Agreement

 

 

SCHEDULE 1

Specified Defaults

	1.	 	Any Default or Event of Default arising under Section 2.10(e) of the Credit Agreement.
[Borrowing Base non-compliance]
	 
	2.	 	Any Default or Event of Default arising under 7(c) of the Credit Agreement [Failure to
pay other non-principal monetary Obligations] as a result of a failure to pay any
Termination Amount or failure to pay any interest on any such Termination Amount.
	 
	3.	 	Any Default or Event of Default arising under Section 6.18 of the Credit Agreement
[Covenant against modifications to material contracts that are materially adverse to the
Lenders] as a result of having caused certain receivables from Crown Media to become
Post-12/31/09 Crown Receivables.
	 
	4.	 	Any Default or Event of Default arising solely as a result of the existence of the Base
Cash Flow Schedule or any rolling 13-week update relating thereto or arising under Section
7(g) of the Credit Agreement as a result of the implementation thereof.
	 
	5.	 	Any Default or Event of Default arising under Section 6.14 of the Credit Agreement.
[Minimum Consolidated Net Worth]
	 
	6.	 	Any Default or Event of Default arising under Section 6.21 of the Credit Agreement.
[Coverage Ratio]
	 
	7.	 	Any Default or Event of Default arising under Section 5.1(c) of the Credit Agreement as
a result of a failure to deliver a Borrowing Base Certificate at any time on or prior to
the date of this Amendment through the date, if any, that the Agent reinstates the
requirements of Section 5.1(c) of the Credit Agreement in accordance with Section 5(d) of
this Amendment.
	 
	8.	 	Any Default or Event of Default arising under Section 7(g) of the Credit Agreement as a
result of a failure of the Borrower and the Guarantors to pay interest when due on the
Second Lien Facility.

 

 

SCHEDULE 2

Deposit Accounts

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Account
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Control
	 	 	 	 	 	 	 	 	 	 	Balance as of	 	 	 	Agreement
	Depository	 	Account	 	Credit	 	 	 	 	 	January 14, 2010	 	Nature of	 	(“yes” or
	Institution	 	Name	 	Party?	 	Account Number	 	(in $US)	 	Account	 	“no”)
	JP Morgan Chase

	 	RHI

Entertainment LLC
	 	Yes
	 	304-671096
	 	 	10,000	 	 	Petty Cash
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI
International
Distribution Inc.
	 	Yes
	 	 	304-689211	 	 	 	—	 	 	Collection

Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI
International
Distribution Inc.
	 	Yes
	 	 	304-689254	 	 	 	2,679,145	 	 	Operating

Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI

Entertainment LLC
	 	Yes
	 	 	314-006591	 	 	 	20,665,500	 	 	Operating

Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI

Entertainment LLC
	 	Yes
	 	 	323-410537	 	 	 	119,409	 	 	Insurance / FSA

Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI

Entertainment LLC
	 	Yes
	 	 	323-047165	 	 	 	690,709	 	 	Payroll Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI

Entertainment LLC
	 	Yes
	 	 	324-330332	 	 	 	—	 	 	Collection Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI

Entertainment

Distribution LLC
	 	Yes
	 	 	304-959251	 	 	 	—	 	 	Collection Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI
International
Distribution Inc.
	 	Yes
	 	 	601-893506	 	 	 	—	 	 	Checking Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	RHI

Entertainment LLC
	 	Yes
	 	 	615-536158	 	 	 	—	 	 	Checking Account
	 	No

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Account
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Control
	 	 	 	 	 	 	 	 	 	 	Balance as of	 	 	 	Agreement
	Depository	 	Account	 	Credit	 	 	 	 	 	January 14, 2010	 	Nature of	 	(“yes” or
	Institution	 	Name	 	Party?	 	Account Number	 	(in $US)	 	Account	 	“no”)
	JP Morgan Chase

	 	RHI

Entertainment

Productions LLC
	 	Yes
	 	758-683403
	 	 	—	 	 	Collection Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	Library

Storage Inc
	 	Yes
	 	 	799-760657	 	 	 	—	 	 	Checking Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JP Morgan Chase

	 	Library

Storage Inc
	 	Yes
	 	 	799-760632	 	 	 	8,431	 	 	Operating Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	American 

Express

	 	RHI

Entertainment LLC
	 	No
	 	 	001-011150-8
	 	 	 	400,000	 	 	CD Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Israel 

Discount Bank

	 	RHI

Entertainment LLC
	 	Yes
	 	 	03-49130	 	 	 	250,118	 	 	Operating Account
	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	California 

Bank & Trust

	 	RHI

Entertainment LLC
	 	Yes
	 	 	324-0329751	 	 	 	9,469	 	 	Operating Account
	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Bank

	 	RHI

Entertainment Ltd
	 	No
	 	 	30403261	 	 	 	54,707	 	 	Operating Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commonwealth
Bank of Australia

	 	RHI

Entertainment

Australia Pty Ltd
	 	No
	 	 	062-438-1009-6303
	 	 	 	32,447	 	 	Operating Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Bank

	 	RHI

Entertainment Ltd
	 	No
	 	 	80374636	 	 	 	166	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HVB Hungarian 

Bank

	 	DTS

Productions Ltd
	 	No
	 	 	10918000000000

367110017	 	 	 	—	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HVB Hungarian 

Bank

	 	DTS

Productions Ltd
	 	No
	 	 	109180010000000

367110024

	 	 	 	—	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Bank

	 	SFR Ltd
	 	No
	 	 	60655376	 	 	 	—	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Bank

	 	SFR Ltd
	 	No
	 	 	40047678	 	 	 	4,498	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Bank

	 	SFR Ltd
	 	No
	 	 	68372755	 	 	 	—	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Bank

	 	SFR Ltd
	 	No
	 	 	86918211	 	 	 	472	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HVB Hungarian 

Bank

	 	RHI

Entertainment Kft
	 	No
	 	 	1091 8001 00000003

68110027	 	 	 	—	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HVB Hungarian 

Bank

	 	RHI

Entertainment Kft
	 	No
	 	 	1091 8001

 00000003

68110010
	 	 	 	—	 	 	Production Account
	 	No

3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Account
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Control
	 	 	 	 	 	 	 	 	 	 	Balance as of	 	 	 	Agreement
	Depository	 	Account	 	Credit	 	 	 	 	 	January 14, 2010	 	Nature of	 	(“yes” or
	Institution	 	Name	 	Party?	 	Account Number	 	(in $US)	 	Account	 	“no”)
	Royal Bank of
Scotland

	 	RHI

Entertainment LLC
	 	Yes
	 	 	10154958	 	 	 	—	 	 	Production Account
	 	No
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JPMorgan Chase

	 	NGP Holding
	 	No
	 	 	323-317-014	 	 	 	—	 	 	Production Account
	 	No

4

 

SCHEDULE 3

Per-Subsidiary Breakdown of Gross Asset Values of Non-Credit Party Subsidiaries

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Gross asset value	 
	 	 	 	 	 	 	as of January 14,	 
	 	 	 	 	 	 	2010 (in $US)	 
	Entity	 	Credit Party?	 	 	(000’s)	 
	Metropolitan Productions, Inc
	 	No	 	 	—	 
	Don Quixote, Inc
	 	No	 	 	—	 
	HE PRO Tunes, Inc.
	 	No	 	 	—	 
	HEP Music, Inc.
	 	No	 	 	—	 
	HEP SS Music, Inc
	 	No	 	 	—	 
	SLB Productions, Inc
	 	No	 	 	—	 
	RHI Entertainment Australia
Pty. Ltd.
	 	No	 	 	61	 
	Southern Whale Pty Ltd
	 	No	 	 	—	 
	Wayzgoose Concerts Services BV
	 	No	 	 	—	 
	RHI Entertainment Ltd
	 	No	 	 	526	 
	RHI Entertainment Kft
	 	No	 	 	—	 
	NGP Holding Inc
	 	No	 	 	—	 
	HEGOA Inc.
	 	No	 	 	—	 
	Independent Projects, Inc.
	 	No	 	 	—	 
	HEDAUS Pty Limited
	 	No	 	 	—	 
	DTS Productions Limited
	 	No	 	 	—	 
	Thistle Management Ltd
	 	No	 	 	—	 
	SFR Limited
	 	No	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	Total Asset Value
	 	$	592	 

5exv10w1

Exhibit 10.1

Form Stock Option Award — Officers

PRIDE INTERNATIONAL, INC.

2007 LONG-TERM INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

          This option agreement (“Option Agreement” or “Agreement”) executed between PRIDE
INTERNATIONAL, INC. (the “Company”), and                      (the “Optionee”), an employee of the Company
or one of its Subsidiaries, regarding a right (the “Option”) awarded to the Optionee on
                     (the “Grant Date”) to purchase from the Company up to but not exceeding in the
aggregate                      shares of Common Stock (as defined in the Pride International, Inc. 2007
Long-Term Incentive Plan (the “Plan”)) at $___.___ per share (the “Grant Price”), such number of
shares and such price per share being subject to adjustment as provided in the Plan, and further
subject to the Optionee’s timely execution and return of the attached “Acceptance Form” and the
following terms and conditions:

          1. Relationship to Plan, Employment Agreement and Company Policy.

          This Option is subject to all of the terms, conditions and provisions of the Plan in effect on
the date hereof and administrative interpretations thereunder, if any, adopted by the Committee.
Except as defined herein, capitalized terms shall have the same meanings ascribed to them under the
Plan. In addition, the parties agree that notwithstanding any provision herein to the contrary,
this Agreement shall be deemed modified by the provisions of any Employment Agreement between the
Optionee and the Company; provided, however, that the foregoing is not intended to exclude this
Agreement from the application of the Recoupment Policy. The Optionee acknowledges receipt of a
copy of the Recoupment Policy and acknowledges that this Agreement is subject to the terms and
conditions of the Recoupment Policy including, without limitation, reduction or cancellation of the
Option, reduction or cancellation of other awards of equity of the Company granted after the
adoption date of the Recoupment Policy or return of the proceeds of the Option. For purposes of
this Option Agreement:

          (a) “Disability” has the meaning set forth in Section 1.409A-3(i)(4) of the Treasury
Regulations and shall be determined by the Committee in its sole discretion.

          (b) “Early Retirement” means the Optionee’s termination of Employment on or after the date the
Optionee has (i) attained age 55 and (ii) completed 15 years of continuous Employment (measured
from the Optionee’s last date of hire by the Company or any of its Subsidiaries).

          (c) “Employment” means employment with the Company or any of its Subsidiaries.

          (d) “Employment Agreement” means any employment agreement between the Optionee and the
Company.

          (e) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

 

          (f) “Option Shares” means the shares of Common Stock covered by this Option Agreement.

          (g) “Recoupment Policy” means the Company’s Incentive and Equity Compensation Recoupment
Policy as adopted by the Committee on August 13, 2009.

          (h) “Retirement” means the Optionee’s termination of Employment on or after (i) attainment of
age 65 or, if applicable to the Optionee, any earlier age specified as the Optionee’s Normal
Retirement Age under the Pride International, Inc. Supplemental Executive Retirement Plan and (ii)
accrual of at least five years of continuous Employment as of the date of the Optionee’s
termination.

          2. Exercise Schedule.

          (a) Service Vesting. This Option may be exercised in installments in accordance with
the following schedule:

	 	 	 
	 	 	Additional Percentage of Option
	Date Vested	 	Shares Available for Purchase
	First anniversary of the Grant Date
	 	33 1/3%
	Second anniversary of the Grant Date
	 	33 1/3%
	Third anniversary of the Grant Date
	 	33 1/3%
	 
	 	100%

          Except as provided in subparagraph (c) below, the Optionee must be in continuous Employment
from the Grant Date through the date of exercisability in order for the Option to become
exercisable with respect to additional shares of Common Stock on such date.

          (b) Accelerated Vesting. This Option shall become fully exercisable, irrespective of
the limitations set forth in subparagraph (a) above, provided that the Optionee has been in
continuous Employment since the Grant Date, upon the occurrence of:

	 	(i)	 	a Change in Control;
	 
	 	(ii)	 	the Optionee’s Disability, or
	 
	 	(iii)	 	the Optionee’s death.

          (c) Retirement. If Optionee’s termination of Employment is due to Retirement, this
Option shall continue to become exercisable in accordance with the schedule identified in
subparagraph (a) above as if the Optionee had remained in Employment until expiration of the
Option; provided, however, that if the Optionee’s Retirement occurs before the first anniversary of
the Grant Date, the Optionee’s Option Shares as of the date of the Optionee’s Retirement shall be
prorated by a fraction, the numerator of which shall be the number of full days of the Optionee’s
Employment during the period beginning on the Grant Date and ending
on the first anniversary of the Grant Date and the denominator of which shall be the number of
days in the period beginning on the Grant Date and ending on the first anniversary of the Grant
Date, and the remaining Option Shares shall be forfeited.

 

 

          (d) Timing of Exercise. To the extent the Option becomes exercisable, such Option may
be exercised in whole or in part (at any time or from time to time, except as otherwise provided
herein) until expiration of the Option pursuant to the terms of this Agreement or the Plan.

          (e) Limitations Pursuant to Company Policy. Vesting of all or a portion of the Option
pursuant to this Section 2 is subject to cancellation in accordance with the Recoupment Policy, and
if so cancelled, the Optionee shall immediately forfeit the cancelled portion of the Option.

          3. Termination of Option.

          The Option hereby granted shall terminate and be of no force and effect with respect to any
shares of Common Stock not previously purchased by the Optionee at the earliest time specified
below:

          (a) the tenth anniversary of the Grant Date;

          (b) if Optionee’s Employment is terminated by the Company or a Subsidiary for serious
misconduct (as determined by the Committee) at any time after the Grant Date, then the Option shall
terminate immediately upon such termination of Optionee’s Employment;

          (c) if Optionee’s Employment is terminated due to (i) death at any time after the Grant Date
and while in the employ of the Company or its Subsidiaries or within 60 days after termination of
such Employment or (ii) Disability at any time after the Grant Date, then the Option shall
terminate on the first business day following the expiration of the one-year period which began on
the date of Optionee’s death or Disability, as applicable;

          (d) if Optionee’s Employment is terminated due to Early Retirement or Retirement, then the
Option shall terminate on the first business day following the expiration of the three-year period
which began on the date of Optionee’s Early Retirement or Retirement, as applicable; or

          (e) if Optionee’s Employment is terminated for any reason other than those specified above in
this Section 3, then the Option shall terminate on the first business day following the expiration
of the 60-day period which began on the date of termination of Optionee’s Employment.

          Except as provided in Section 2(c) hereof, in any event in which the Option remains
exercisable for a period of time following the date of termination of Optionee’s Employment, the
Option may be exercised during such period of time only to the extent it was exercisable as
provided in Section 2 on such date of termination of Optionee’s Employment. Except as provided in
Section 2(c) hereof, the portion of the Option not exercisable upon
termination shall terminate and be of no force and effect upon the date of the Optionee’s
termination of Employment.

 

 

          4. Exercise of Option.

          Subject to the limitations set forth herein and in the Plan, this Option may be exercised by
written notice provided to the Company as set forth in Section 5. Such written notice shall (a)
state the number of shares of Common Stock with respect to which the Option is being exercised, (b)
be accompanied by cash or shares of Common Stock (not subject to limitations on transfer) or a
combination of cash and Common Stock payable to Pride International, Inc. in the full amount of the
purchase price for any shares of Common Stock being acquired and (c) be accompanied by cash or
Common Stock in the full amount of all federal and state withholding or other employment taxes
applicable to the taxable income of such Optionee resulting from such exercise (or instructions to
satisfy such withholding obligation by withholding Option Shares in accordance with Section 8).
For the purpose of determining the amount, if any, of the purchase price satisfied by payment in
Common Stock, such Common Stock shall be valued at its Fair Market Value on the date of exercise.

          Notwithstanding anything to the contrary contained herein, the Optionee agrees that he will
not exercise the option granted pursuant hereto, and the Company will not be obligated to issue any
option shares pursuant to this Option Agreement, if the exercise of the Option or the issuance of
such shares would constitute a violation by the Optionee or by the Company of any provision of any
law or regulation of any governmental authority or any stock exchange or transaction quotation
system. The Optionee agrees that, unless the options and shares covered by the Plan have been
registered pursuant to the Securities Act of 1933, as amended, the Company may, at its election,
require the Optionee to give a representation in writing in form and substance satisfactory to the
Company to the effect that he is acquiring such shares for his own account for investment and not
with a view to, or for sale in connection with, the distribution of such shares or any part
thereof.

          If any law or regulation requires the Company to take any action with respect to the shares
specified in such notice, the time for delivery thereof, which would otherwise be as promptly as
possible, shall be postponed for the period of time necessary to take such action.

          5. Notices.

          Notice of exercise of the Option must be made in the following manner, using such forms as the
Company may from time to time provide:

          (a) by registered or certified United States mail, postage prepaid, to Pride International,
Inc., Attn: Corporate Secretary, 5847 San Felipe, Suite 3300, Houston, Texas 77057, in which case
the date of exercise shall be the date of mailing; or

          (b) by hand delivery or otherwise to Pride International, Inc., Attn: Corporate Secretary,
5847 San Felipe, Suite 3300, Houston, Texas 77057, in which case the date of exercise shall be the
date when receipt is acknowledged by the Company.

          Notwithstanding the foregoing, in the event that the address of the Company is changed prior
to the date of any exercise of this Option, notice of exercise shall instead be made pursuant to
the foregoing provisions at the Company’s current address.

 

 

          Any other notices provided for in this Agreement or in the Plan shall be given in writing and
shall be deemed effectively delivered or given upon receipt or, in the case of notices delivered by
the Company to the Optionee, five days after deposit in the United States mail, postage prepaid,
addressed to the Optionee at the address specified at the end of this Agreement or at such other
address as the Optionee hereafter designates by written notice to the Company.

          6. Assignment of Option.

          Subject to the approval of the Committee, in its sole discretion, the Option may be
transferred by the Optionee to (i) the children or grandchildren of the Optionee (“Immediate Family
Members”), (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members
(“Immediate Family Member Trusts”) or (iii) a partnership or partnerships in which such Immediate
Family Members have at least 99% of the equity, profit and loss interests (“Immediate Family Member
Partnerships”). Subsequent transfers of transferred Options shall be prohibited except by will or
the laws of descent and distribution, unless such transfers are made to the original Optionee or a
person to whom the original Optionee could have made a transfer in the manner described herein. No
transfer shall be effective unless and until written notice of such transfer is provided to the
Committee, in the form and manner prescribed by the Committee. Following transfer, any such
Options shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer, and, except as otherwise provided herein, the term Optionee shall be
deemed to refer to the transferee.

          After the death of the Optionee, exercise of the Option shall be permitted only by the
Optionee’s executor or the personal representative of the Optionee’s estate (or by his assignee, in
the event of a permitted assignment) and only to the extent that the option was exercisable on the
date of the Optionee’s death.

          7. Stock Certificates.

          Certificates representing the Common Stock issued pursuant to the exercise of the Option will
bear all legends required by law and necessary or advisable to effectuate the provisions of the
Plan and this Option. The Company may place a “stop transfer” order against shares of the Common
Stock issued pursuant to the exercise of this Option until all restrictions and conditions set
forth in the Plan or this Agreement and in the legends referred to in this Section 7 have been
complied with.

          8. Withholding.

          No certificates representing shares of Common Stock purchased hereunder shall be delivered to
or in respect of an Optionee unless the amount of all statutory federal, state and other
governmental withholding tax requirements imposed upon the Company with respect to the issuance of
such shares of Common Stock has been remitted to the Company or unless provisions to pay such
withholding requirements have been made to the satisfaction of the Committee. The Committee may
make such provisions as it may deem appropriate for the
withholding of any taxes which it determines is required in connection with this Option. The
Optionee may pay all or any portion of the taxes required to be withheld by the Company or paid by
the Optionee in connection with the exercise of all or any portion of this Option by delivering

 

 

cash, or, with the Committee’s approval, by electing to have the Company withhold shares of Common
Stock, or by delivering previously owned shares of Common Stock, having a Fair Market Value equal
to the amount required to be withheld or paid. The Optionee may only request withholding Option
Shares having a Fair Market Value equal to the statutory minimum withholding amount. The Optionee
must make the foregoing election on or before the date that the amount of tax to be withheld is
determined. If the Optionee is subject to the short-swing profits recapture provisions of Section
16(b) of the Exchange Act, any such election shall be subject to such other restrictions as may be
established by the Committee in order that satisfaction of withholding tax obligations with shares
of Common Stock might be exempt from the operation of Section 16(b) of the Exchange Act in whole or
in part.

          9. Shareholder Rights.

          The Optionee shall have no rights of a shareholder with respect to shares of Common Stock
subject to the Option unless and until such time as the Option has been exercised and ownership of
such shares of Common Stock has been transferred to the Optionee.

          10. Successors and Assigns.

          This Agreement shall bind and inure to the benefit of and be enforceable by the Optionee, the
Company and their respective permitted successors and assigns (including personal representatives,
heirs and legatees), except that the Optionee may not assign any rights or obligations under this
Agreement except to the extent and in the manner expressly permitted herein.

          11. No Employment Guaranteed.

          No provision of this Option Agreement shall confer any right upon the Optionee to continued
Employment.

          12. Governing Law.

          This Option Agreement shall be governed by, construed and enforced in accordance with the laws
of the State of Texas.

          13. Amendment.

          This Agreement cannot be modified, altered or amended except by an agreement, in writing,
signed by both the Company and the Optionee.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]