Document:

EX10.2 Deferred Comp Plan E. Brolick

Special Executive Deferred Compensation Plan

		
	1.
	Introduction.

This Special Executive Deferred Compensation Plan (this “Plan”) has been established by The Wendy's Company (the “Company”) effective as set forth in Section 11.10 hereof pursuant to Section 4(a) of the Employment Agreement.   
Under the Employment Agreement, Executive has agreed to defer, pursuant to the terms and conditions of this Plan, payment of all amounts of Base Salary in excess of $1,000,000 that would otherwise be payable to him during a calendar year until the termination of his employment with the Company.  This Plan has been established to carry out the Company's and Executive's agreement for the deferral of such Base Salary.
To the extent that there are any inconsistencies between Section 4(a) of the Employment Agreement and the terms of this Plan, the terms of the Employment Agreement will govern.
2.      Definitions and interpretations
“Account” means the bookkeeping account established by the Company under this Plan on behalf of the Executive for the purpose of recording the amount of the compensation being deferred pursuant to this Plan and the amount of any interest credited thereto.
“Administrator” means the Compensation Committee of the Board, the Board or, with the prior written consent of the Executive (which consent shall not be unreasonably withheld), such other person, committee or entity designated by the Board (which designation may be by means of a general delegation to a committee of the Board that includes the responsibility for the administration of this Plan) that shall administer this Plan.  
“Annual Deferral Amount” means amounts deferred in accordance with Section 4(a) of the Employment Agreement, for any single Plan Year, as Base Salary may be increased from time to time by the Administrator.  In the event of the Executive's termination of employment prior to the end of a Plan Year, such year's Annual Deferral Amount shall be the actual amount so deferred prior to such employment termination. 
“Base Salary” means “Base Salary” as defined in Section 4(a) of the Employment Agreement. 
“Beneficiary” means any person or entity designated by the Executive as such on a writing filed with the Secretary of the Company, from time to time, and surviving Executive, as such beneficiary designation may be amended from time to time, with any such amendment to be made solely by the Executive in his sole and absolute discretion at any time in writing and filed with the Secretary of the Company, and will be subject to applicable law.  In the absence of such designation or living Beneficiary at Executive's death, Executive's “Beneficiary” shall be his estate. 
“Board” means the board of directors of the Company.
“Business Day” means any day other than (i) Saturday, (ii) Sunday or (iii) other day on which commercial banks located in the State of New York are authorized or required by law to remain closed.
“Code” means the Internal Revenue Code of 1986, as amended from time to time.
“Effective Date” means the date indicated in Section 11.10 hereof.
“Employment Agreement” means that certain employment agreement dated as of the Effective Date, between the Company and Executive.
“Executive” means the individual identified on the signature page hereto as “Executive.”

“Plan Year” means each 12-month period beginning on January 1 and ending on December 31.

3.    Eligibility.  The Executive shall be eligible to participate in this Plan for the duration of his employment with the Company in accordance with the terms hereof.  The Executive shall be the sole person eligible to participate in this Plan. 

1

4.    Annual Deferral Amounts.  For each Plan Year, pursuant to Section 4(a) of the Employment Agreement, the Executive hereby irrevocably elects to defer the Annual Deferral Amount, if any, from the Executive's Base Salary.  The Annual Deferral Amount so deferred shall be withheld from the Executive's Base Salary in substantially equal installments from each regularly scheduled payment of the Executive's Base Salary at the same time that would otherwise be payable to the Executive in the absence of the Executive's deferral election hereunder.  Each installment of the Annual Deferral Amount so withheld shall then be credited to the Executive's Account as of the date it would otherwise have been payable to the Executive.  The Executive's election hereunder shall be deemed made on (i) the Effective Date respecting Annual Deferral Amounts otherwise earned and payable after the Effective Date and during the 2011 Plan Year, and (ii) for Plan Years after 2011, on the December 31st immediately preceding each such Plan Year during the Term (as defined under the Employment Agreement), in each case, to the extent applicable pursuant to Section 4(a) of the Employment Agreement or as the Executive and the Company shall otherwise agree; provided, however, that any such modification or revocation of Executive's deferral election shall be effective only to the extent permitted pursuant to Section 409A of the Code.

5.    Crediting of Interest.  On the last day of each whole or partial calendar quarter from and after the Effective Date until Executive's Account shall have been distributed in full, interest shall be credited (compounded for each full or partial calendar quarter) on the deferred and undistributed Annual Deferral Amounts at a rate equal to the three (3)-month London Interbank Offered Rate (LIBOR), as reported from time to time in The Wall Street Journal (Electronic Edition), plus 500 basis points; provided, however, that, notwithstanding the foregoing, in no event shall such rate exceed 120% of the applicable United States federal long-term rate then in effect, so that in no event shall such rate constitute an “above-market” rate within the meaning of Item 402(c)(2)(viii)(B) of Regulation S-K under the Securities Act of 1933, as amended. 

6.    Responsibility for Administration of this Plan.  The Administrator shall be responsible for the administration of this Plan.  The Administrator may employ others to render advice with regard to its responsibilities under this Plan.  It may also allocate its responsibilities to others and may exercise any other powers necessary or advisable for the discharge of its duties. The primary responsibility of the Administrator is to administer this Plan for the benefit of the Executive and his Beneficiaries, subject to the terms and conditions of this Plan.  The Administrator shall administer this Plan in accordance with its terms. The Administrator shall have all powers and discretion necessary to accomplish its duties under this Plan to the fullest extent allowed by applicable law.     

7.    Distribution of the Account.  Subject to Section 10 hereof, the Executive's Account shall be distributed to him within 30 days following the date on which the Executive's employment with the Company terminates. 

8.     Vesting.  All amounts credited to the Executive's Account pursuant to Sections 4 and 5 hereof shall be fully vested and nonforfeitable at all times.
9.    Disputes.  All disputes between the Company and the Executive under this Plan shall be adjudicated de novo in accordance with the provisions of Section 14(j) (Arbitration) of the Employment Agreement, which provisions are incorporated by reference into and applicable to the same extent as if stated in this Plan.  Section 503 of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations thereunder shall not apply to this Plan.
10.    Code Section 409A.  Notwithstanding any other provision of this Plan to the contrary:
10.1.    It is intended that the provisions of this Plan comply with Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”), and all provisions of this Plan shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A while to the maximum extent possible preserving the business arrangement contemplated hereunder.  Notwithstanding the foregoing, in no event whatsoever shall the Company or any of its affiliates be liable for any additional tax, interest or penalties that may be imposed on Executive by Code Section 409A or any damages for failing to comply with Section 409A, other than for withholding or other obligations applicable to employers, if any, under Code Section 409A.

2

10.2.    If, under this Plan, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.
10.3.    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of amounts following a termination of employment unless such termination is also a “Separation from Service” within the meaning of Code Section 409A and, for purposes of any such provision of this Plan, references to a “termination,” “termination of employment” or like terms shall mean Separation from Service.
10.4.    With regard to any payment under this Plan, such payment shall not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from the date of the Executive's Separation from Service or (ii) the date of the Executive's death.  On the first day of the seventh month following the date of Executive's Separation from Service or, if earlier, on the date of Executive's death, (x) all payments delayed pursuant to this Section 10.4 (whether they would otherwise have been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Executive in a lump sum.  In determining the amounts that are subject to the six-month delay requirement described above, the Company shall use all exclusions from the six-month delay rule that are available to the payments made to Executive.  This Section 10.4 shall not apply unless Executive is a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, using the identification methodology selected by the Company from time to time, or if none, the default methodology.  
10.5.    Whenever a payment under this Plan specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.    
10.6.    This Section 10 shall apply to any and all payments payable to Executive in respect of this Plan, whether paid to Executive by the Company, a trustee or otherwise. 
11.    Miscellaneous
11.1     Amendments; Termination.  This Plan may be amended or terminated only by a writing signed by the Company and Executive (or Beneficiary following the death of the Executive).  Upon a termination of this Plan, distributions in respect of credits to Executive's Account as of the date of termination shall be made in the manner and at the time prescribed in this Plan, subject to Section 409A of the Code. 
11.2    Survival. The provisions of the Plan shall survive any termination of Executive's employment and any termination of this Plan. 
11.3     Plan is Unfunded. It is the Company's intention that the amounts deferred under this Plan shall be an unfunded unsecured promise to pay money for tax purposes and pursuant to an unfunded plan maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees under ERISA. All such amounts shall continue for all purposes to be part of the general funds of the Company and this Plan shall constitute an unsecured promise of the Company to make benefit payments in the future. The Company may, but is not required to, deposit in a trust amounts sufficient to pay benefits under this Plan. Any amounts deposited in a trust will be subject to the Company's general creditors. 
         11.4     No Alienation of Benefits.  Except for payment of Executive's Account to his Beneficiary in the event of Executive's death, payments, proceeds, claims, rights or interest of the Executive or his Beneficiary to or under this Plan shall not be subject in any manner to any claims, attachments or encumbrances due to the death, contracts, liabilities, engagements or torts of the Executive or his Beneficiary, directly or indirectly, or be subject to any claim of any creditor of the Executive or his Beneficiary, through legal process or otherwise; nor shall the Executive or his Beneficiary be able or permitted in any manner to transfer, encumber, pledge, anticipate, alienate, sell, or assign any such benefits, payments, proceeds, claims, rights or interest, contingent or otherwise and any attempt to so alienate or subject any such amount, whether presently or thereafter payable, shall be void and of no effect whatsoever. 
          

3

          11.5     Successors, Etc. This Plan shall be binding upon and benefit the Company and its successors, and the Executive and his Beneficiary, their heirs and personal representatives, all in accordance and subject to the terms of this Plan. 
          11.6     Severability. Each provision of this Plan shall be independent of and separable from every other provision of this Plan and should any provision of this Plan be deemed or be declared to be contrary to or unenforceable under any law, whether constitutional, statutory or otherwise, all of the remaining provisions of this Plan shall remain in full force and effect. 
          11.7    Governing Law. This Plan shall be governed in all respects, whether as to validity, construction, capacity, performance or otherwise, under the laws of the State of Delaware, except to the extent superseded by federal law. 
          11.8    Gender and Number Construction. In all cases where they would so apply, words used in the masculine gender shall be construed to include the feminine gender, and words used in the singular shall be construed to include the plural. 
          11.9    Incapacity of Recipient. In the event the Executive or his Beneficiary is declared incompetent and a conservator or other person legally charged with the care of his person is appointed, any benefits under this Plan to which such Executive or Beneficiary is entitled shall be paid to such appointed person.
          11.10    Effective Date.  This Plan shall be effective ______________, 201_.
          11.11    Withholding for Taxes.  The Company may withhold from any distribution made under this Plan such amount or amounts as may be required for purposes of complying with the tax withholding provisions of the Code or any applicable state law.

[Signature Page Follows This Page]

4

IN WITNESS WHEREOF, the Company has adopted this Plan, Executive has provided his consent thereto and Executive acknowledges and agrees to all of the terms of the Plan, effective on the Effective Date.

The Wendy's Company
By: ____________________
Its: ____________________
Executive
__________________________    
Emil J. Brolick

5ex10_1.htm

  

  

  

SIXTH AMENDMENT TO CREDIT AGREEMENT

SIXTH AMENDMENT (the “Amendment”) entered into as of September 1, 2011 by and between CPI AEROSTRUCTURES, INC. (the “Borrower”), and SOVEREIGN BANK (the “Bank”).

WHEREAS, the Borrower and the Bank are parties to that Amended and Restated Loan Agreement dated as of August 13, 2007, as amended by that First Amendment dated as of October 22, 2008, that Second Amendment dated as of July 7, 2009, that Third Amendment dated as of May 21, 2010, that Fourth Amendment dated as of March 14, 2011, and that Fifth Amendment dated as of May 10, 2011, as same may be hereafter amended and modified (the “Agreement”); and

WHEREAS, the Borrower has requested that the Bank make available, and the Bank has agreed to extend to Borrower, a short term increase of an additional $3,000,000.00 under the revolving credit facility, subject to the provisions hereof; and

WHEREAS, the Borrower has requested that the Bank amend and the Bank has agreed to amend certain provisions of the Agreement, subject to the terms and conditions hereinafter set forth.

NOW, THEREFORE, the parties hereto hereby agree as follows:

1. All capitalized terms used herein, unless otherwise defined herein, have the same meanings provided therefor in the Agreement.

2. Subject to the terms and conditions hereof, the Agreement is hereby amended as follows:

(A) Section 1.1 is amended by adding the following definition of “Credit Limit”:

“‘Credit Limit” shall mean: (i) for the period from the effective date of the Sixth Amendment to the Loan Agreement to and including November 30, 2011, the amount of $13,000,000.00; and (ii) for all other times, the amount of $10,000,000.00.

(B)           Section 2.1 is amended by deleting the language contained therein and substituting the following therefor:

“2.1          Revolving Credit Commitment.  Subject to the terms and conditions hereof, the Bank agrees to make revolving credit loans to the Borrower (collectively, the “Revolving Credit Loans”) from time to time during the Commitment Period in the aggregate principal amount at any one time outstanding of up to (but not exceeding) the Credit Limit from time to time in effect, as such maximum available amount may be hereafter reduced as provided in this Agreement (the “Commitment”).  During the Commitment Period, the Borrower may use the Commitment for obtaining Revolving Credit Loans by borrowing, paying, prepaying in whole or in part and reborrowing on a revolving basis, all in accordance with the terms and conditions hereof provided that no more than eight (8) types of Libor Rate Loans may be outstanding at any time.”

(C)           Exhibit A of the Agreement is hereby amended by deleting same and substituting therefor Exhibit A annexed hereto.

(D)           Except as amended herein, all other provisions of the Agreement shall remain in full force and effect, and are hereby ratified.

3. The Bank and the Borrower agree that as of August 30, 2011, the aggregate outstanding principal amount of:  (i) the Revolving Credit Loans as evidenced by the Revolving Credit Note is $9,700,000.00 and interest has been paid through July 31, 2011.

4. The Borrower hereby represents and warrants to the Bank that:

(a)           Each and every of the representations and warranties set forth in the Agreement is true as of the date hereof and with the same effect as though made on the date hereof, and is hereby incorporated herein in full by reference as if fully restated herein in its entirety; provided, however, that the December 31, 2006 date in Section 3.1 of the Agreement shall be deemed to be December 31, 2010, and the March 31, 2007 date in Section 3.1 of the Agreement shall be deemed to be March 31, 2011.

(b)           No Default or Event of Default and no event or condition which, with the giving of notice or lapse of time or both, would constitute such a Default or Event of Default, now exists or would exist after giving effect hereto.

(c)           There are no defenses or offsets to the Borrower'’s obligations under the Agreement, the Notes or the Loan Documents or any of the other agreements in favor of the Bank referred to in the Agreement.

5. It is expressly understood and agreed that all collateral security for the Loans and other extensions of credit set forth in the Agreement prior to the amendment provided for herein is and shall continue to be collateral security for the Loans and other extensions of credit provided in the Agreement as herein amended, including (without limitation) Borrower’s obligations under the Master Agreement, except those receivables sold in accordance with Section 7.7 of the Agreement as amended herein.  Without limiting the generality of the foregoing, the Borrower hereby absolutely and unconditionally confirms that each document and instrument executed by the Borrower pursuant to the Agreement continues in full force and effect, is ratified and confirmed and is and shall continue to be applicable to the Agreement (as herein amended).

6. The amendments set forth herein are limited precisely as written and shall not be deemed to (a) be a consent to or a waiver of any other term or condition of the Agreement or any of the documents referred to therein, or (b) prejudice any right or rights which the Bank may now have or may have in the future under or in connection with the Agreement or any documents referred to therein.  Whenever the Agreement is referred to in the Amendment or any of the instruments, agreements or other documents or papers executed and delivered in connection therewith, it shall be deemed to mean the Agreement as modified by this Amendment.

7. The Borrower agrees to pay on demand, and the Bank may charge any deposit or loan account(s) of the Borrower, all expenses (including reasonable attorney’s fees) incurred by the Bank in connection with the negotiation and preparation of the Agreement as amended hereby.

8. This Amendment shall become effective on such date as all of the following conditions shall be satisfied retroactive to the date hereof:

(a) The Bank shall have received four (4) executed, original counterparts of this Amendment together with the original, executed Amended and Restated Revolving Credit Note.

(b) The Bank shall have received updated UCC searches of the Borrower, a current Good Standing Certificate for the Borrower from New York State and an opinion of counsel, in each case satisfactory to the Bank and its counsel.

(c) The Bank shall have received four (4) executed counterparts of the Officer'’s Certificate of the Borrower together with any other action (in form and substance satisfactory to the Bank and its counsel) taken by the Borrower to authorize the execution, delivery and performance of this Amendment and such other documents as the Bank or its counsel may require.

(d) The Bank shall have received (i) a fee with respect to the increase of the Revolving Credit Note  in the amount of $5,000.00, and (ii) payment of the fees and disbursements of the Bank’s outside counsel with respect to this Amendment.

9. This Amendment is dated as of the date set forth in the first paragraph hereof and shall be effective (after satisfaction of the conditions set forth in paragraph 8 above) on the date of execution by the Bank retroactive to such date.

10. This Amendment may be executed in counterparts, each of which shall constitute an original, and each of which taken together shall constitute one and the same agreement.

  

  

  

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

	
CPI AEROSTRUCTURES

	
By:

	
/s/ Vincent Palazzolo

	  	
Vincent Palazzolo

	  	
Chief Financial Officer

	
SOVEREIGN BANK

	
By:

	
/s/Christine Gerula

	  	
Christine Gerula

	  	
Senior Vice President

 

 

 

State of New York, County of Suffolk, ss:

On the 1st day of September, in the year 2011, before me the undersigned, personally appeared VINCENT PALAZZOLO, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

	
______/s/___________________

	
Notary Public

State of New York, County of Suffolk, ss:

On the 1st day of September, in the year 2011, before me the undersigned, personally appeared CHRISTINE GERULA, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

 

	
______/s/____________________

	
Notary Public

 

 

 

  

  

  

EXHIBIT A

FORM OF AMENDED AND RESTATED

REVOLVING CREDIT NOTE

$13,000,000.00                                                                                                                                                                    Melville, New York                                                                                                                                                As of September 1, 2011

CPI AEROSTRUCTURES, INC., a New York corporation (the “Borrower”), for value received, hereby promises to pay to the order of SOVEREIGN BANK (the “Bank”) on the Termination Date (as such term is defined in the Agreement), at the office of the Bank specified in Section 10.1 of the Credit Agreement dated as of August 13, 2007, as amended by that First Amendment dated  as of October 22, 2008, that Second Amendment dated as of July 7, 2009, that Third Amendment dated as of May 21, 2010, that Fourth Amendment dated as of March 14, 2011,  that Fifth Amendment dated as of May 10, 2011, and that Sixth Amendment dated as of September __,1, 2011, each between the Borrower and the Bank, as amended from time to time (as so amended, the “Agreement”; terms defined in the Agreement shall have their defined meanings when used in this Note), in lawful money of the United States of America and in immediately available funds the principal amount of THIRTEEN MILLION AND 00/100 ($13,000,000.00) DOLLARS or, if less than such principal amount, the aggregate unpaid principal amount of all Revolving Credit Loans made by the Bank to the Borrower pursuant to Section 2.1 of the Agreement.  The Borrower further promises to pay interest at said office in like money on the unpaid principal balance of this Note from time to time outstanding at an annual rate as selected by the Borrower pursuant to the terms of Section 2 (inclusive) of the Agreement.  Interest shall be computed on the basis of a 360-day year for actual days elapsed and shall be payable as provided in the Agreement.  All Loans made by the Bank pursuant to subsection 2.1 of the Agreement and payments of the principal thereon may be endorsed by the holder of this Note on the schedule annexed hereto, to which the holder may add additional pages.  The aggregate net unpaid amount of Revolving Credit Loans set forth in such schedule shall be presumed to be the principal balance hereof.  After the stated or any accelerated maturity hereof, this Note shall bear interest at a rate as set forth in the Agreement, payable on demand, but in no event in excess of the maximum rate of interest permitted under applicable law.

This Note is the Revolving Credit Note referred to in the Agreement, and is entitled to the benefits thereof and may be prepaid, and is required to be prepaid, in whole or in part (subject to the indemnity provided in the Agreement) as provided therein.

Upon the occurrence of any one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note may be declared to be immediately due and payable as provided in the Agreement.

This Note shall replace and supersede the Revolving Credit Note made by the Borrower to the order of the Bank dated August 13, 2007, the Amended and Restated Revolving Credit Note made by the Borrower to the order of the Bank dated as of July 7, 2009, the Amended and Restated Revolving Credit Note made by the Borrower to the order of the Bank dated as of May 21, 2010 and the Amended and Restated Revolving Credit Note made by the Borrower to the order of the Bank dated as of May 10, 2011 (collectively, the “Prior Note”); provided, however, that the execution and delivery of this Note shall not in any circumstance be deemed to have terminated, extinguished or discharged the Borrower’s indebtedness under such Prior Note, all of which indebtedness shall continue under and be governed by this Note and the documents, instruments and agreements executed pursuant hereto or in connection herewith.  This Note is a replacement, consolidation, amendment and restatement of the Prior Note and IS NOT NOVATION.  The Borrower shall also pay and this Note shall also evidence any and all unpaid interest on the Revolving Credit Loans made by the Bank to the Borrower pursuant to Prior Note, and at the interest rate specified in the Agreement, for which this Note has been issued as replacement therefore.

This Note shall be construed in accordance with and governed by the laws of the State of New York.

	  	
CPI AEROSTRUCTURES, INC.

  

  

  

	
SCHEDULE OF LOANS AND PAYMENT OF PRINCIPAL

	
TO AMENDED AND RESTATED REVOLVING CREDIT NOTE

	
DATED AS OF SEPTEMBER 1, 2011

	
BY

	
CPI AEROSTRUCTURES, INC.

	
TO

	
SOVEREIGN BANK

	  

	
Date

	
Amount of Loan

	
Interest Rate

	
Last Day of  Interest Period

	
Balance Principal Paid

	
Remaining Unpaid

	
Notation Made By

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]