Document:

EX-4.1

 Exhibit 4.1 

AMENDED AND RESTATED 

COTY INC. 
 EQUITY AND
LONG-TERM INCENTIVE PLAN 
 (As amended and restated on November 3, 2016) 

SECTION 1 
 PURPOSE AND
DURATION 
  

	1.1	Purpose. The purpose of this Coty Inc. Equity and Long-Term Incentive Plan is to promote the interests of Coty Inc. and its shareholders by (i) attracting and retaining exceptional executive personnel and other
key employees of the Company and its Affiliates; (ii) motivating such employees by means of performance-related incentives to achieve long-range performance goals; and (iii) enabling such employees to participate in the long-term growth and
financial success of the Company. 

  

	1.2	Effective Date and Term of the Plan. 

  

	 	(a)	The original effective date of the Plan is November 8, 2012. This Plan was first amended and restated on April 8, 2013, amended and restated again on October 28, 2015 and again on November 3, 2016. The effective
date of this second amended and restated plan document is the Third Restatement Effective Date. 

  

	 	(b)	The Plan will terminate upon the earlier of (i) the date on which all Shares available for issuance under the Plan have been issued pursuant to the exercise of Stock Options or the Award of Shares under the Plan, or
(ii) the date specified by action of the Board. Upon such Plan termination, all Awards outstanding under the Plan will continue to have full force and effect in accordance with the terms of the Terms and Conditions evidencing each Award.

 SECTION 2 

DEFINITIONS 
 Whenever
used in the Plan, the following terms have the meanings set forth below: 
  

	2.1	“Affiliate” means any entity (i) that, directly or indirectly, is controlled by the Company, or in which the Company has a significant equity interest, and (ii) as to which the Company is an “eligible
issuer of service recipient stock” within the meaning of Treas. Reg. 1.409A-1(b)(5)(iii)(E), in any such case as determined by the Committee. 

  

	2.2	“Applicable Fraction” means a fraction, the numerator of which is the number of days elapsed from the Grant Date of an Award to the date of the Participant’s termination of Service and the denominator of
which is the number of days between the Grant Date and the date the Award was scheduled to become exercisable or otherwise vest. 

  

	2.3	“Award” means a grant under the Plan to a Participant of a Stock Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit, Performance Award, or Other Stock-Based Award.

	2.4	“Board” means the Board of Directors of the Company. 

  

	2.5	“Business Day” means any day other than a Saturday, Sunday, or legal holiday, or a day on which the national securities exchange that constitutes the principal market for the Shares is closed.

  

	2.6	“Cause” has the meaning set forth in any employment, severance or other agreement between the Company or an Affiliate and the Participant. If there is no employment, severance or other agreement between the
Company or an Affiliate and the Participant, or if such agreement does not define “Cause,” then “Cause” shall mean the occurrence of any of the following, as determined by the Committee in its sole discretion: 

 

	 	(a)	a Participant’s willful and continued failure substantially to perform his or her duties (other than as a result of total or partial incapacity due to physical or mental illness or as a result of termination by
such Participant for Good Reason), which failure continues for more than 30 days after receipt by the Participant of written notice setting forth the facts and circumstances identified by the Company as constituting adequate grounds for termination
under this clause (a); 

  

	 	(b)	any willful act or omission by a Participant constituting dishonesty, fraud or other malfeasance, and any act or omission by a Participant constituting immoral conduct, which in any such case is injurious to the
financial condition or business reputation of the Company or any of its Affiliates; 

  

	 	(c)	a Participant’s indictment for a felony under the laws of the United States or any state thereof or any other jurisdiction in which the Company conducts business; or 

 

	 	(d)	a Participant’s breach of any nonsolicitation, noncompetition, confidentiality, or other restrictive covenant by which he or she is bound. 

For purposes of this definition, no act or failure to act shall be deemed “willful” unless effected by a Participant not in good
faith and without a reasonable belief that such action or failure to act was in or not opposed to the Company’s best interests. 
  

	2.7	“Change in Control” means the occurrence of any of the following: 

  

	 	(a)	Any Person or “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) that is not the Majority Shareholder is or becomes the “beneficial owner” (as defined below), directly or
indirectly, of securities representing either (i) more than 50% of the combined voting power of the Company’s then outstanding securities, or (ii) 20% or more of the combined voting power of the Company’s then outstanding securities at a
time when the Majority Shareholder hold less than 30% of such combined voting power. For purposes of this clause (a), “beneficial owner” has the meaning given that term in Rule 13d-3 under the Exchange Act, except that a Person shall be
deemed to be the “beneficial owner” of all shares that any such Person has the right to acquire pursuant to any agreement or arrangement or upon exercise of conversion rights, warrants, options or otherwise, without regard to the 60-day
period referred to in such Rule; 

	 	(b)	Individuals who constitute the Board on the First Restatement Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided, that any Person becoming a
director subsequent to such date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least three-quarters of the directors then comprising the Incumbent Board shall be, for purposes of this
clause (b), considered as though such Person were a member of the Incumbent Board; and provided, further, that this clause (b) shall not apply as long as the Majority Shareholder is the beneficial owner of a majority of voting power of the
Company’s outstanding securities; 

  

	 	(c)	The Majority Shareholder enters into any joint venture, joint operating arrangement, partnership, standstill agreement or other arrangement similar to any of the foregoing with any other Person or group, pursuant to
which such Person or group assumes significant operational or managerial control of the Company; or 

  

	 	(d)	The shareholders of the Company approve a plan or agreement providing (i) for a merger or consolidation of the Company other than with a wholly owned subsidiary and other than a merger or consolidation that would result
in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power
of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (ii) for a sale, exchange or other disposition of all or substantially all of the business or assets of the Company. If
any of the events enumerated in this clause (d) occurs, the Board shall determine the effective date of the Change in Control resulting therefrom for purposes of this Plan. 

 

	2.8	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. 

  

	2.9	“Committee” means the Remuneration and Nominating Committee of the Board or any successor committee with responsibility for compensation, or any subcommittee, as long as the number of Committee members and
their qualifications shall at all times be sufficient to meet the independence requirements of the New York Stock Exchange, Inc. or any other applicable exchange on which the Company’s common equity is at the time listed and, as applicable, the
requirements for “outside directors” under Section 162(m) and the regulations thereunder, as in effect from time to time. 

  

	2.10	“Company” means Coty Inc., a Delaware corporation, and any successor thereto as provided in Section 16.1. 

  

	2.11	“Designated Beneficiary” means the Person or Persons the Participant designates from time to time on a signed form prescribed by the Committee, properly filed with the Committee during the Participant’s
lifetime, as the beneficiary of any amounts or benefits the Participant owns or is to receive under the Plan, in accordance with Section 12.1. A properly filed beneficiary designation will revoke all prior designations by the same Participant. If no
such form has been filed with the Committee, the Designated Beneficiary shall be the beneficiary named by the Participant in the Company’s qualified 401(k) savings plan or, if none, the Beneficiary’s estate. 

 

	2.12	“Director” means a member of the board of directors of the Company or an Affiliate. 

	2.13	“Disability” means either (i) disability as defined for purposes of the Company’s disability benefit plan, or (ii) a Participant’s inability, as a result of physical or mental incapacity, to perform
the duties of his or her position(s) for a period of six consecutive months or for an aggregate of six months in any consecutive 12-month period. Any question as to the existence of the Disability of a Participant as to which the Participant and the
Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Participant and the Company. If the Participant and the Company cannot agree as to a qualified independent physician, each shall
appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and the Participant shall be final and conclusive for all purposes of
the Plan. Following a Change in Control, the Company shall pay all expenses incurred in the determination of whether a Participant is disabled. 

  

	2.14	“Employee” means an employee of the Company or an Affiliate (that is not a Joint Venture). 

  

	2.15	“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

 

	2.16	“Executive Officer” means any Company employee who is an “executive officer” as defined in Rule 3b-7 promulgated under the Exchange Act. 

 

	2.17	“Exercise Date” shall mean any Business Day. 

  

	2.18	“Exercise Price” means the price at which a Participant may purchase a Share pursuant to a Stock Option or Stock Appreciation Right. 

 

	2.19	“Fair Market Value” as it relates to a Share means, unless otherwise determined by the Committee, the most recent closing price of a Share on the principal national securities exchange on which the Shares are
then listed, or if there were no sales on such date, on the next preceding day on which there were sales, or if such Shares are not listed on a national securities exchange, the last reported bid price in the over-the-counter market.

  

	2.20	“First Restatement Effective Date” means the date on which the Amended and Restated Certificate of Incorporation of the Company that was adopted by the Company in connection with the first underwritten public
offering of the Company’s common stock was filed with the Secretary of State of the State of Delaware. 

  

	2.21	“Good Reason” shall have the meaning set forth in any employment, severance or other agreement between the Company or an Affiliate and the Participant. If there is no employment, severance or other agreement
between the Company or an Affiliate and the Participant, or if such agreement does not define “Good Reason,” then “Good Reason” shall mean the occurrence of any of the following: 

 

	 	(a)	Before a Change in Control: 

  

	 	(i)	 A Participant’s removal from, or the Company’s failure to reelect or reappoint the Participant to, his
or her positions at the Company (other than as a result of a promotion). For purposes of this clause (i), a mere change of title shall not constitute removal from, or 

	 	
non-reelection to, such position, provided that a Participant’s new title is substantially equivalent to the Participant’s title as of the Grant Date and his or her position is
otherwise not adversely affected; or 

  

	 	(ii)	The relocation of a Participant’s principal workplace without his or her consent to a location more than 25 miles distant from its current location. 

 

	 	(b)	Following a Change in Control: 

  

	 	(i)	Any of the events described in clause (a) above; 

  

	 	(ii)	A material diminution in a Participant’s title, position, duties or responsibilities, or the assignment to a Participant of duties that are inconsistent, in a material respect, with the scope of duties and
responsibilities associated with his or her position as of the Grant Date; or 

  

	 	(iii)	The failure of the Company to continue a Participant’s participation in the Company’s Annual Performance Plan and in this Plan or any successor plans thereto on a basis that is commensurate with his or her
position. 

  

	2.22	“Grant Date” means the date on which an Award is granted. 

  

	2.23	“Joint Venture” has the meaning given that term in Section 6.9. 

  

	2.24	“Majority Shareholder” means (i) the Company’s majority shareholder as of the First Restatement Effective Date or (ii) a Benckiser Permitted Holder as defined in the Company’s Certificate of
Incorporation effective on the First Restatement Effective Date or any other similarly situated Person as determined by the Committee. 

  

	2.25	“Original Effective Date” means November 8, 2012. 

  

	2.26	“Other Stock-Based Awards” has the meaning given that term in Section 10. 

  

	2.27	“Owned Shares” means Shares that a Participant has acquired through the exercise of a Stock Option or a Stock Appreciation Right, the vesting of Restricted Stock, the settlement of a Restricted Stock Unit or a
distribution of Shares in connection with an Other Stock-Based Award. 

  

	2.28	“Participant” means an Employee selected by the Committee to receive an Award under the Plan pursuant to Section 5.2, or who has an outstanding Award granted under the Plan. 

 

	2.29	“Performance Award” means a right to receive cash or Shares (as determined by the Committee) upon the achievement, in whole or in part, of the applicable Performance Criteria pursuant to Section 9. A grant of
Restricted Stock, Restricted Stock Units, or Other Stock Awards may be designed to qualify as Performance Awards. 

  

	2.30	“Performance-Based Exception” means the performance-based exception from the tax deductibility limitations of Code Section 162(m) and any regulations promulgated thereunder. 

 

	2.31	 “Performance Criteria” means the objectives established by the Committee for a Performance Period for
the purpose of determining the extent to which an Award of Performance Awards has been earned. “Performance Criteria” may be based on the relative or comparative attainment of

 
one or more of the following criteria during a Performance Period, whether in absolute terms or relative to the performance of one or more similarly situated companies or a published index
covering the performance of a number of companies: total stockholder return (inclusive or exclusive of dividends paid); stock price; gross, operating or net earnings or margins; approved rate increases; earnings before interest and taxes; earnings
before interest, taxes, depreciation and amortization (“EBITDA”); EBITDA excluding traditional working media; earnings per share; economic value added; ratio of operating earnings to capital spending; net sales; sales growth; return on
assets, capital or equity; income; market share; level of expenses; revenue; revenue growth; cash flow; increases in customer base; capital expenditures; cost reductions and expense control objectives; compliance with environmental or regulatory
goals or requirements; conservation; budget objectives; working capital; mergers, acquisitions and divestitures; attainment of objectives measured in terms of quality or safety; customer complaints or customer satisfaction; and improvements in
financial controls; and, in the case of persons who are not Executive Officers, such other criteria as may be determined by the Committee. Performance Criteria may be established on a Company-wide basis or with respect to one or more business units,
divisions, subsidiaries, or geographic locations, or on an individual basis. 
 At the time the Committee establishes Performance Criteria
for a Performance Period, the Committee may exclude any or all items determined to be unusual in nature and/or infrequent in occurrence as determined under U.S. generally accepted accounting principles including, without limitation, the charges or
costs associated with restructurings of the Company or any subsidiary, discontinued operations, other unusual or infrequently occurring items, the cumulative effects of accounting changes or such other objective factors as the Committee deems
appropriate. Unless otherwise explicitly stated by the Committee at the time Performance Criteria are established, each applicable performance goal shall be appropriately adjusted for one or more of the following items: (i) amortization, asset
impairments or write downs; (ii) litigation judgments or claim settlements; (iii) the effect of changes in tax law, accounting principles or such laws or provisions affecting reported results; (iv) accruals for reorganization and restructuring
programs; (v) any items determined to be unusual in nature and/or infrequent in occurrence as described in Accounting Standards Codification (ASC) 225-20, as amended, and/or in management’s discussion and analysis of financial condition and
results of operations appearing in the Company’s annual report to shareholders for the applicable year; (vi) the operations of any business acquired by the Company or any affiliate or of any joint venture in which the Company or affiliate
participates; (vii) the divestiture of one or more business operations or the assets thereof; or (viii) the costs incurred in connection with such acquisitions or divestitures; and (ix) charges for stock based compensation. 

Except in the case of Awards to Executive Officers intended to qualify for the Performance-Based Exception, the Committee may at any time
adjust the Performance Criteria for any Performance Period as it deems equitable. The Committee shall have no obligation to treat Participants uniformly. 
  

	2.32	“Performance Period” means the 12-month time period during which Performance Criteria must be met in order for a Participant to earn Performance Awards granted under Section 9 or any other period established
by the Committee during which Performance Criteria must be met in order for a Participant to earn Performance Awards granted under Section 9. 

	2.33	“Person” means any individual, partnership, corporation, limited liability company, association, joint stock company, trust, joint venture, unincorporated organization and any other entity, whether foreign or
domestic, including any governmental entity or any department, agency or political subdivision thereof. 

  

	2.34	“Plan” means this Coty Inc. Equity and Long-Term Incentive Plan, as amended from time to time. 

  

	2.35	“Prior Plans” means the Coty Inc. Long-Term Incentive Plan and the Coty Inc. Executive Ownership Plan, each as in effect immediately prior to the Original Effective Date and as may be amended from time to
time. 

  

	2.36	“Restricted Stock” means a contingent grant of Shares awarded to a Participant pursuant to Section 8. 

  

	2.37	“Restricted Stock Unit” means a Restricted Stock Unit granted to a Participant, as described in Section 8. 

  

	2.38	“Restriction Period” means the period during which the transfer of Restricted Stock is limited in some way (based on the passage of time, the achievement of performance objectives, or the occurrence of other
events as the Committee determines, in its sole discretion) and, except as provided in the Terms and Conditions, during which the Restricted Stock and any Restricted Stock Unit is not vested. 

 

	2.39	“Retirement” means a termination of Service (other than a termination of Service for Cause): 

  

	 	(a)	after attaining age 60, but only if the Company or the employing Affiliate consents to the treatment of such termination as a “Retirement” for purposes of this Plan; or 

 

	 	(b)	qualifying as a retirement at normal retirement age under the laws and/or arrangements applicable to the Participant, as reasonably determined by the Committee. 

 

	2.40	“Section 162(m)” means Section 162(m) of the Code and the applicable regulations and other legal authority promulgated thereunder. 

 

	2.41	“Section 409A” means Section 409A of the Code and the applicable regulations and other legal authority promulgated thereunder. 

 

	2.42	“Service” means the provision of services in the capacity of an Employee or Continuing Director of the Company or an Affiliate. A transfer of Service from the Company to an Affiliate or from an Affiliate to
the Company or another Affiliate shall not constitute a termination of Service under the Plan or any Terms and Conditions. All determinations regarding Service, including whether any leave of absence is a termination of Service, shall be made by the
Committee in its sole discretion. For purposes of this paragraph, a “Continuing Director” shall mean any individual who, upon his or her termination of employment with the Company or an Affiliate, continues to serve as a member of the
Board or the board of directors of an Affiliate. The Service of a Continuing Director shall terminate when he or she ceases to serve as a member of the Board or on the board of directors of an Affiliate. 

	2.43	“Share” means a share of the Class A Common Stock, par value $.01 per share, of the Company, or such other securities of the Company as may be designated by the Committee from time to time. 

 

	2.44	“Stock Appreciation Right” or “SAR” means an Award consisting of a right to receive any excess in value of shares of common stock over the exercise price and designated as an SAR pursuant to the
terms of Section 7. 

  

	2.45	“Stock Appreciation Right Spread” means the amount by which the Fair Market Value, as of the Exercise Date, of the Shares as to which a Stock Appreciation Right is exercised exceeds the aggregate Exercise
Price with respect to such Stock Appreciation Right. 

  

	2.46	“Stock Option” means a nonqualified stock option, as described in Section 6, that is not intended to meet the requirements of Code Section 422. 

 

	2.47	“Stock Option Spread” means the amount by which the Fair Market Value, as of the Exercise Date, of the Shares as to which a Stock Option is exercised exceeds the aggregate Exercise Price with respect to such
Shares. 

  

	2.48	“Successor” means the Participant’s spouse, the Participant’s lineal descendants, any trust the beneficiaries of which consist only of the Participant, the Participant’s spouse and/or the
Participant’s lineal descendants, or to a corporation in which the Participant, the Participant’s spouse and/or the Participant’s lineal descendants own 100% of the economic interest and has the unfettered right to prevent further
transfer or disposition of the Restricted Stock, Stock Option, Stock Appreciation Right, Restricted Stock Unit or Owned Shares, applicable. The Committee may, in its discretion, deem other parties to qualify as a Successor for purposes of this Plan.

  

	2.49	“Terms and Conditions” means any electronic or written agreement or other instrument or document evidencing an Award. 

  

	2.50	“Third Restatement Effective Date” means the date on which the Company’s stockholders approve this third amendment and restatement of the Plan. 

 

	2.51	“Valuation Date” means any Business Day. A Valuation Date shall also occur upon the consummation of a transaction constituting a Change in Control. 

 

	2.52	“Withholding Tax” means the aggregate federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising under the Plan.

 SECTION 3 

Administration 
  

	3.1	Plan Administration. The Plan shall be administered by the Committee. 

  

	3.2	 Authority of the Committee. Except as limited by law or the by-laws of the Company, and subject to the provisions
of the Plan, the Committee shall have full power and discretion to: (a) select eligible Employees to participate in the Plan; (b) determine the size and type of Awards; (c) determine the terms and conditions of Awards in a manner consistent with the
Plan; (d) determine 

	 	
whether, to what extent, and under what circumstances Awards may be settled or exercised in Shares, and the method or methods by which Awards may be settled or exercised; (e) determine the Fair
Market Value of a Share; (f) construe and interpret the Plan and any agreement or instrument entered into under the Plan; (g) establish, amend or waive rules and regulations for the Plan’s administration; (h) specify the Exercise Price; and (i)
subject to the provisions of Section 15.1, amend the terms and conditions of any outstanding Award to the extent the amended terms are within the Committee’s authority under the Plan. Further, the Committee shall make all other determinations
that may be necessary or advisable to administer the Plan. The Committee may delegate some or all of its authority under the Plan to officers or employees of the Company or other Persons, except with respect to Awards to Executive Officers or to the
extent that the grant or exercise of such authority would cause any Award or transaction to become subject to (or lose an exemption under) the short-swing profit recovery provisions of Section 16 of the Exchange Act or cause an Award intended to
qualify for treatment as performance-based compensation under Section 162(m) to not so qualify. 

  

	3.3	Decisions Binding. All determinations and decisions made by the Committee or by a Person or Persons delegated authority by the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on
all Persons, including, without limitation, the Company, its shareholders, all Affiliates, Employees, Participants and their estates and beneficiaries. 

SECTION 4 
 Shares
Subject to the Plan 
  

	4.1	Number of Shares Available for Grants. Subject to adjustment as provided in Sections 4.2 and 4.3, the number of Shares that may be issued or transferred to Participants under the Plan is 68,000. No additional awards
shall be made under the Prior Plans on or after the Original Effective Date. Subject to adjustment as provided in Section 4.3, to the extent necessary to comply with Section 162(m), the maximum number of Shares or Share equivalent units that may be
granted during any fiscal year to any one Participant under Options, SARs, Restricted Stock, Restricted Stock Units, Performance Awards or other Stock-Based Awards is $25,000,000, which limit will (i) be calculated based on the Fair Market Value of
the number of Shares subject to the applicable Award as of the applicable Grant Date and (ii) apply regardless of whether the compensation is paid in Shares or in cash. To the extent necessary to comply with Code Section 162(m) the maximum aggregate
dollar amount that may be paid to any one Participant during any fiscal year under Performance Awards or any cash-based Award under Section 9 is $25,000,000. 

  

	4.2	Lapsed Awards. If any Award granted under this Plan or a Prior Plan is canceled, terminates, expires or lapses for any reason, any Shares subject to such award will again be available for the grant of an Award under the
Plan. Common Stock issued through the assumption or substitution of outstanding grants from an acquired company shall not reduce the shares available for Awards under the Plan. In addition, if a Share subject to an Award is not delivered because the
Award is settled in cash, then that Share will thereafter be deemed to be available for grant. If a Share subject to an Award is not delivered because it is used to satisfy a tax withholding obligation or used to pay the Exercise Price of an Option,
then that Share will not thereafter be deemed to be available for grant. 

	4.3	Adjustments in Authorized Shares. If the Shares, as currently constituted, are changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation
(whether because of a merger, consolidation, recapitalization, reclassification, split, reverse split, combination of shares, or otherwise, but not including a capital infusion from any source) or if the number of Shares is increased through the
payment of a stock dividend, then the Committee shall substitute for or add to each Share that may become subject to an Award the number and kind of shares of stock or other securities into which each outstanding Share was changed, for which each
such Share was exchanged, or to which each such Share is entitled, as the case may be. 

  

	4.4	Sources of Shares Deliverable under Awards. Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or of treasury Shares. 

SECTION 5 
 Eligibility
and Participation 
  

	5.1	Eligibility. Any Employee, including any officer or employee-director of the Company or an Affiliate, shall be eligible to be designated a Participant. To be eligible, a Participant shall have signed and delivered to
the Company the Confidentiality and Non-Competition Agreement delivered by the Company to the Participant. 

  

	5.2	Actual Participation. The Committee shall determine the eligible Employees to whom it will grant Awards. 

SECTION 6 
 Stock
Options 
  

	6.1	Grant of Stock Options. 

  

	 	(a)	Subject to the terms and provisions of the Plan, the Committee may grant Stock Options to any Participant in the number, and upon the terms, and at such time or times, as the Committee determines and sets forth in the
Terms and Conditions. 

  

	 	(b)	Each Stock Option grant shall be evidenced by the Terms and Conditions that specifies the duration of the Stock Option, the number of Shares to which the Stock Option pertains, the manner, time, and rate of exercise and
vesting of the Stock Option, and such other provisions as the Committee determines. Vesting conditions may include, but not be limited to, the achievement of specific performance objectives (Company-wide, business unit, and/or individual) or
continued Service. 

  

	6.2	Exercise Price. The Terms and Conditions shall specify the Stock Option’s Exercise Price, which shall be not less than the Fair Market Value of a Share on the Grant Date. 

 

	6.3	Duration of Stock Options. Each Stock Option will expire at the time determined by the Committee at the time of grant and set forth in the Terms and Conditions. 

	6.4	Exercise of Stock Options. 

  

	 	(a)	Stock Options shall become exercisable at such times and be subject to such vesting and other restrictions and conditions as the Committee in each instance approves and sets forth in each Terms and Conditions.
Restrictions and conditions on the exercise of a Stock Option need not be the same for each Award or for each Participant. 

  

	 	(b)	The holder of a Stock Option may exercise the Stock Option only by delivering a written notice of exercise to the Company setting forth the number of Shares as to which the Stock Option is to be exercised. Upon the
Exercise Date, the holder shall pay or provide for the Exercise Price and applicable Withholding Tax in full, pursuant to such procedures established by the Committee from time to time after giving consideration to applicable tax, securities and
accounting rules. 

  

	 	(c)	Any exercisable Stock Option that has not been exercised by its holder shall be automatically exercised in accordance with subsection (b) hereof on the Exercise Date immediately prior to its expiration if, on such
Exercise Date, there is a Stock Option Spread with respect to such Stock Option. 

  

	6.5	Termination of Service. Except as otherwise provided in the Terms and Conditions: 

  

	 	(a)	In the event a Participant’s Service terminates by reason of death, Disability, or Retirement: 

  

	 	(i)	The Applicable Fraction of the portion of any Stock Option held by such Participant which has not theretofore become exercisable shall immediately become vested and exercisable. 

 

	 	(ii)	All Stock Options held by the Participant, to the extent exercisable (including by application of clause (i) above) as of the Participant’s termination of Service shall remain exercisable through the second
anniversary of the date of termination of Service and shall thereafter expire. 

  

	 	(iii)	Any unvested portion of the Participant’s Stock Options as of the date of termination (other than any portion thereof that becomes vested pursuant to clause (i) above) shall be forfeited and canceled, without
consideration, on the date of termination. 

  

	 	(b)	Except as provided in Section 6.8, in the event a Participant’s Service terminates other than by reason of death, Disability, or Retirement: 

 

	 	(i)	Any unvested portion of the Participant’s Stock Options as of the date of termination shall be forfeited and canceled on the date of termination, and 

 

	 	(ii)	The vested portion, if any, of the Participant’s Stock Options shall remain exercisable through (i) the ninetieth (90th) day after the Participant’s termination of Service, if the ninety (90) day period
commences in an open trading window, or (ii) if the ninety (90) day period commences in a closed trading window, the ninetieth (90th) day commencing from the first day of the next open trading window. Any vested Stock Option remaining outstanding
after such date shall thereafter expire. 

	 	(c)	Notwithstanding the foregoing, the Committee may, in its sole discretion, accelerate the vesting and exercisability, and/or extend the period of exercisability, of all or a portion of a Stock Option at any time as
permitted by Section 409A. 

  

	 	(d)	In no event shall a Stock Option be exercisable following its expiration date. 

  

	6.6	Nontransferability of Stock Options. 

  

	 	(a)	Except as otherwise provided in Section 6.6(b), a Participant’s Terms and Conditions, or the Plan, during the Restriction Period, (i) no Stock Option granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and (ii) all Stock Options shall be exercisable during the Participant’s lifetime only by the Participant or his or her guardian or
legal representative. The Committee may, in its sole discretion, require a Participant’s guardian or legal representative to supply it with the evidence the Committee deems necessary to establish the authority of the guardian or legal
representative to act on behalf of the Participant. 

  

	 	(b)	Subject to applicable law, vested Stock Options may be transferred to a Successor. Such transferred Stock Options may only be further sold, transferred, pledged, assigned or otherwise alienated by the Successor in
accordance with this Section 6.6, and shall be subject in all respects to the terms of the Terms and Conditions and the Plan. For a transfer to be effective, the Successor shall promptly furnish the Company with written notice thereof and a copy of
such other evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance of the Successor of the terms and conditions of the Plan. 

 

	6.7	Dividend Equivalents and Other Distributions. The Committee may, in its sole discretion, provide under an agreement for payments in connection with Stock Options that are equivalent to dividends or other distributions
declared and paid on the Shares underlying the Stock Options prior to the date of exercise. Such dividend equivalent agreement, if any, shall be separate and apart from the Terms and Conditions and shall be designed to comply separately with Section
409A. 

  

	6.8	Change in Control. If, within twelve months following a Change in Control, (i) a Participant is terminated by the Company or an employing Affiliate (that is not a Joint Venture) without Cause or (ii) such Participant
resigns from the Company or an employing Affiliate (that is not a Joint Venture) for Good Reason, the unvested portion of any then outstanding Stock Option shall vest and become exercisable. 

 

	6.9	Employment in a Joint Venture. If a Participant becomes an employee of certain joint ventures of the Company, as determined by the Board from time to time (a “Joint Venture”), during the Restriction Period,
vesting of the Participant’s Stock Options shall be tolled beginning on the date such Participant becomes an employee of the Joint Venture until the date such Participant again becomes an Employee. Accordingly, the Restriction Period for such
Participant’s Stock Options shall be extended by the number of days the Participant was an employee of the Joint Venture. 

 SECTION 7 

Stock Appreciation Rights 
  

	7.1	Grant of Stock Appreciation Rights. 

  

	 	(a)	Subject to the terms and provisions of the Plan, the Committee may grant Stock Appreciation Rights to any Participant in the number, and upon the terms, and at such time or times, as the Committee determines and sets
forth in the Terms and Conditions. 

  

	 	(b)	Each Stock Appreciation Right grant shall be evidenced by the Terms and Conditions that specifies the duration of the Stock Appreciation Right, the number of Shares to which the Stock Appreciation Right pertains, the
manner, time, and rate of exercise and vesting of the Stock Appreciation Right, and such other provisions as the Committee determines. Vesting conditions may include, but not be limited to, the achievement of specific performance objectives
(Company-wide, business unit, and/or individual) or continued Service. 

  

	7.2	Exercise Price. The Terms and Conditions shall specify the Stock Appreciation Right’s Exercise Price, which shall be not less than the Fair Market Value of a Share on the Grant Date. 

 

	7.3	Duration of Stock Appreciation Rights. Each Stock Appreciation Right will expire at the time determined by the Committee at the time of grant and set forth in the Terms and Conditions. 

 

	7.4	Exercise of Stock Appreciation Rights. 

  

	 	(a)	Stock Appreciation Rights shall become exercisable at such times and be subject to such vesting and other restrictions and conditions as the Committee in each instance approves and sets forth in each Terms and
Conditions. Restrictions and conditions on the exercise of a Stock Appreciation Right need not be the same for each Award or for each Participant. 

  

	 	(b)	The holder of a Stock Appreciation Right may exercise the Stock Appreciation Right only by delivering a written notice of exercise to the Company setting forth the number of Stock Appreciation Rights to be exercised.
The Stock Appreciation Right Spread may be settled, as set forth in the Terms and Conditions, by delivery by the Company of the number of Shares equal to the Stock Appreciation Right Spread, in which case the Participant shall on or before the
Exercise Date pay or provide for the applicable Withholding Tax in full, pursuant to such exercise procedures established by the Committee from time to time after giving consideration to applicable tax, securities and accounting rules. Any
exercisable Stock Appreciation Right that has not been exercised by its holder shall be automatically exercised in accordance with subsection (b) hereof on the Exercise Date immediately prior to its expiration if, on such Exercise Date, there is a
Stock Appreciation Right Spread with respect to such Stock Appreciation Right. 

  

	7.5	Termination of Service. Except as otherwise provided in the Terms and Conditions: 

  

	 	(a)	In the event a Participant’s Service terminates by reason of death, Disability, or Retirement: 

  

	 	(i)	The Applicable Fraction of the portion of any Stock Appreciation Right held by such Participant which has not theretofore become exercisable shall immediately become vested and exercisable. 

 

	 	(ii)	All Stock Appreciation Rights held by the Participant, to the extent exercisable (including by application of clause (i) above) as of the Participant’s termination of Service shall remain exercisable through the
second anniversary of the date of termination of Service and shall thereafter expire. 

	 	(iii)	Any unvested portion of the Participant’s Stock Appreciation Rights as of the date of termination (other than any portion thereof that becomes vested pursuant to clause (i) above) shall be forfeited and canceled,
without consideration, on the date of termination. 

  

	 	(b)	Except as provided in Section 7.8, in the event a Participant’s Service terminates other than by reason of death, Disability, or Retirement: 

 

	 	(i)	Any unvested portion of the Participant’s Stock Appreciation Rights as of the date of termination shall be forfeited and canceled on the date of termination, and 

 

	 	(ii)	The vested portion, if any, of the Participant’s Stock Appreciation Rights shall remain exercisable through the ninetieth (90th) day after the Participant’s termination of Service. Any vested Stock
Appreciation Right remaining outstanding after such date shall thereafter expire. 

  

	 	(c)	Notwithstanding the foregoing, the Committee may, in its sole discretion, accelerate the vesting and exercisability, and/or extend the period of exercisability, of all or a portion of a Stock Appreciation Right at any
time as permitted by Section 409A. 

  

	 	(d)	In no event shall a Stock Appreciation Right be exercisable following its expiration date. 

  

	7.6	Nontransferability of Stock Appreciation Rights. 

  

	 	(a)	Except as otherwise provided in Section 7.6(b), a Participant’s Terms and Conditions, or the Plan, during the Restriction Period, (i) no Stock Appreciation Right granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and (ii) all Stock Appreciation Rights shall be exercisable during the Participant’s lifetime only by the Participant or
his or her guardian or legal representative. The Committee may, in its sole discretion, require a Participant’s guardian or legal representative to supply it with the evidence the Committee deems necessary to establish the authority of the
guardian or legal representative to act on behalf of the Participant. 

  

	 	(b)	Subject to applicable law, vested Stock Appreciation Rights may be transferred to a Successor. Such transferred Stock Appreciation Rights may only be further sold, transferred, pledged, assigned or otherwise alienated
by the Successor in accordance with this Section 7.6, and shall be subject in all respects to the terms of the Terms and Conditions and the Plan. For a transfer to be effective, the Successor shall promptly furnish the Company with written notice
thereof and a copy of such other evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance of the Successor of the terms and conditions of the Plan. 

 

	7.7	 Dividend Equivalents and Other Distributions. The Committee may, in its sole discretion, provide under an
agreement for payments in connection with Stock Appreciation Rights that are equivalent to dividends and other distributions declared and paid on the Shares underlying the 

	 	
Stock Appreciation Rights prior to the date of exercise. Such dividend equivalent agreement, if any, shall be separate and apart from the Terms and Conditions and shall be designed to comply
separately with Section 409A. 

  

	7.8	Change in Control. If, within twelve months following a Change in Control, (i) a Participant is terminated by the Company or an employing Affiliate (that is not a Joint Venture) without Cause or (ii) such Participant
resigns from the Company or an employing Affiliate (that is not a Joint Venture) for Good Reason, the unvested portion of any then outstanding Stock Appreciation Right shall vest and become exercisable. 

 

	7.9	Employment in a Joint Venture. If a Participant becomes an employee of certain joint ventures of the Company, as determined by the Board from time to time (a “Joint Venture”), during the Restriction Period,
vesting of the Participant’s Stock Appreciation Rights shall be tolled beginning on the date such Participant becomes an employee of the Joint Venture until the date such Participant again becomes an Employee. Accordingly, the Restriction
Period for such Participant’s Stock Appreciation Rights shall be extended by the number of days the Participant was an employee of the Joint Venture. 

SECTION 8 
 Restricted
Stock and Restricted Stock Units 
  

	8.1	Grant of Restricted Stock and Restricted Stock Units. Subject to the terms and provisions of the Plan, the Committee may, at any time and from time to time, grant Restricted Stock or Restricted Stock Units to any
Participant in such amounts as it determines and sets forth in the Terms and Conditions. 

  

	8.2	Terms and Conditions. Each grant of Restricted Stock or Restricted Stock Units shall be evidenced by the Terms and Conditions that specifies the Restriction Period, the number of Shares or Restricted Stock Units
granted, the purchase price, if any, and such other provisions as the Committee determines. 

  

	8.3	Nontransferability. 

  

	 	(a)	Except as provided in Section 8.3(b), during the Restricted Period, (i) no Restricted Stock or Restricted Stock Unit granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution and (ii) all rights with respect to Restricted Stock or Restricted Stock Units shall be available during the Participant’s lifetime only to the Participant or the
Participant’s guardian or legal representative. The Committee may, in its sole discretion, require a Participant’s guardian or legal representative to supply it with evidence the Committee deems necessary to establish the authority of the
guardian or legal representative to act on behalf of the Participant. 

  

	 	(b)	 Subject to applicable law, Restricted Stock may be transferred to a Successor. Such transferred Restricted Stock
may only be further sold, transferred, pledged, assigned or otherwise alienated by the Successor in accordance with this Section 8.3, and shall be subject in all respects to the terms of the Terms and Conditions and the Plan. For a transfer to be

	 	
effective, the Successor shall promptly furnish the Company with written notice thereof and a copy of such other evidence as the Committee may deem necessary to establish the validity of the
transfer and the acceptance of the Successor of the terms and conditions of the Plan. 

  

	8.4	Termination of Service. Except as provided in Section 8.5, if a Participant’s Service terminates, then except as otherwise provided in the Terms and Conditions all unvested Restricted Stock and Restricted Stock
Units held by such Participant will be forfeited and any vested Restricted Stock and Restricted Stock Units shall continue to be subject to the terms of the Plan and any applicable Award. 

 

	8.5	Change in Control. If, within twelve months following a Change in Control, (i) a Participant is terminated by the Company or an employing Affiliate (that is not a Joint Venture) without Cause or (ii) such Participant
resigns from the Company or an employing Affiliate (that is not a Joint Venture) for Good Reason, all then outstanding Restricted Stock and Restricted Stock Units shall vest and become nonforfeitable. 

 

	8.6	Other Conditions. The Committee may impose such other conditions and restrictions on any Restricted Stock and Restricted Stock Units as it deems advisable and sets forth in the Terms and Conditions, including, without
limitation, vesting restrictions based upon the achievement of specific performance objectives (Company-wide, business unit, and/or individual) or continued Service, and/or restrictions under applicable federal or state securities laws. The
Committee may provide that restrictions established under this Section 8.6 as to any given Award will lapse all at once or in installments. 

  

	8.7	Voting Rights. Except as otherwise provided in the Terms and Conditions, and subject to Section 13.1(c), a Participant holding Shares of Restricted Stock may exercise any voting rights that apply to those Shares during
the Restriction Period. 

  

	8.8	Dividends and Other Distributions. During the Restriction Period, a Participant holding Shares of Restricted Stock or Restricted Stock Units shall be credited with regular dividends or dividend equivalents and other
distributions paid on those Shares. Such dividends or dividend equivalents and other distributions shall be subject to the same vesting conditions as the underlying Shares or Restricted Stock Units, and shall be paid within 30 days following the end
of the Restriction Period. 

  

	8.9	Section 83(b) Elections on Restricted Stock. The Participant, if subject to taxation in the United States with respect to any compensation derived under the Plan, shall indicate to the Company whether the Participant
intends to make an election under Code Section 83(b) with respect to the Restricted Stock. 

  

	8.10	Employment in a Joint Venture. If a Participant becomes an employee of a Joint Venture during the Restriction Period, vesting of the Participant’s Restricted Stock and Restricted Stock Units shall be tolled
beginning on the date such Participant becomes an employee of the Joint Venture and shall recommence on the date such Participant again becomes an Employee. Accordingly, the Restriction Period for such Participant’s Restricted Stock and
Restricted Stock Units shall be extended by the number of days the Participant was an employee of the Joint Venture. 

	8.11	Payment of Restricted Stock Units. Each Restricted Stock Unit shall be payable to the Participant in such form provided in the Terms and Conditions following the last day of the Restriction Period, or on such later date
provided in the Terms and Conditions or pursuant to a deferral agreement between the Participant and the Company. 

 SECTION
9 
 Performance Awards 
  

	9.1	Grant of Performance Awards. The Committee shall have the authority to determine (i) the Participants who shall receive Performance Awards, (ii) the size, number, amount or value, as applicable, of Performance Awards,
and (iii) the Performance Criteria applicable in respect of such Performance Awards for each Performance Period. The Committee shall determine the duration of each Performance Period (which may differ from each other), and there may be more than one
Performance Period in existence at any one time as to any Participant or all or any class of Participants. Each grant of Performance Awards shall be evidenced by the Terms and Conditions that shall specify the Performance Criteria applicable thereto
and such other terms and conditions not inconsistent with the Plan as the Committee shall determine. 

  

	9.2	Earning of Performance Awards. The grant and/or vesting of Performance Awards shall be contingent, in whole or in part, upon the attainment of specified Performance Criteria or the occurrence of any event or events
involving a Change in Control, death or Disability, as the Committee shall determine. In addition to the achievement of the specified Performance Criteria, the Committee may, at the grant date, condition earning of Performance Awards on the
Participant completing a minimum period of service following the Grant Date or on such other conditions as the Committee shall specify. 

  

	9.3	Performance Awards and Code Section 162(m). The provisions of this Section 9.3 shall apply with respect to any Performance Award that is intended to meet the Performance-Based Exception. 

 

	 	(a)	Establishment of Performance Criteria. The Committee shall establish the Performance Criteria for the applicable Performance Period no later than the 90th day after the Performance Period begins (or by such other date
as may be required under Section 162(m)) but in any event at a time when achievement of the Performance Criteria is substantially uncertain. The Committee may not in any event increase the amount of compensation payable to an Executive Officer upon
attainment of the Performance Criteria above the maximum amount approved by the Committee at the time the Performance Criteria is established. 

  

	 	(b)	Certification of Attainment of Performance Criteria. As soon as practicable after the end of a Performance Period and prior to any payment in respect of such Performance Period, the Committee shall certify in writing
the amount, number or value, as applicable, of the Performance Awards that have been earned on the basis of performance in relation to the established Performance Criteria. 

 

	 	(c)	 Payment of Awards. Earned Performance Awards shall be distributed to the Participant or, if the Participant has
died, to the Participant’s Designated Beneficiary as soon as practicable 

	 	
after the expiration of the Performance Period and the Committee’s certification under Section 9.3(b) above, provided that, unless the payment of a Performance Award has been deferred in
accordance with Section 409A of the Code, distributions of a Performance Award shall be made no later than March 15 of the year following the year in which the amount is earned. 

	 	

 SECTION 10 

Other Stock-Based Awards 
  

	10.1	The Committee shall have authority to grant to eligible Participants an “Other Stock-Based Award,” which shall consist of any right which (i) is not a Stock Option, Stock Appreciation Right, Restricted Stock
Unit or Restricted Stock and (ii) is an Award of Shares or an Award denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities convertible into
Shares), as deemed by the Committee to be consistent with the purposes of the Plan. Subject to the terms of the Plan and any applicable Terms and Conditions, the Committee shall determine the terms and conditions of any such Other Stock-Based Award.

 SECTION 11 

Share Restrictions and Purchase and Sale Rights 
  

	11.1	Restrictions. The Committee may impose such restrictions on any Shares as it deems necessary or advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of
any stock exchange or market upon which the Shares are then listed and/or traded, and under any blue sky or state securities laws. 

  

	11.2	Additional Conditions of Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or transferred, or (ii) to treat as owner of such Shares, to accord the right to vote as
such owner, or to pay dividends to any transferee to whom such Shares have been transferred in violation of the Plan or any Terms and Conditions. 

SECTION 12 
 Beneficiary
Designation 
  

	12.1	Each Participant may, from time to time, name any Designated Beneficiary (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case the Participant should die before
receiving any or all of his or her benefits under the Plan. Each beneficiary designation shall revoke all prior designations by the same Participant, must be in a form prescribed by the Committee and must be made during the Participant’s
lifetime. 

 SECTION 13 

Breach of Restrictive Covenants 
  

	13.1	The Terms and Conditions may provide that if the Participant breaches, whether during or after termination of Service, a nonsolicitation, noncompetition, confidentiality, or other restrictive covenant by which he or she
is bound, then in addition to any other penalties or restrictions that may apply under any such agreement, state law, or otherwise, the Participant shall forfeit: 

	 	(a)	Any Awards granted to him or her under the Plan, including Awards that have become exercisable; 

  

	 	(b)	The profit the Participant realized from the exercise of any Stock Options or Stock Appreciation Rights that the Participant exercised after terminating Service and within the six-month period immediately preceding the
Participant’s termination of Service, which is the Stock Option Spread or Stock Appreciation Right Spread associated with any Shares acquired by the Participant upon his or her exercise of such Stock Options or such Stock Appreciation Rights;
and 

  

	 	(c)	The Fair Market Value, as determined on the vesting date, of any Restricted Stock that vested or Restricted Stock Unit that was settled within the six-month period immediately preceding the Participant’s
termination of Service. 

 SECTION 14 

Rights of Participants 
  

	14.1	Service. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s Service at any time, or confer upon any Participant any right to
continue in the Service of the Company or any Affiliate. The grant of any Award under the Plan shall not in any way affect the right or power of the Company to make adjustments, reclassifications or changes in its capital or business structure, or
to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. 

  

	14.2	Participation. No Employee shall have the right to receive an Award under the Plan, or, having received any Award, to receive a future Award. 

SECTION 15 
 Amendment,
Modification, Termination and Change in Control 
  

	15.1	Amendment, Modification and Termination. The Board may at any time and from time to time alter, amend, modify or terminate the Plan in whole or in part, without the approval of the Company’s shareholders, except to
the extent such approval is required by law. Subject to the terms and conditions of the Plan, the Committee may modify, extend or renew outstanding Awards under the Plan, or accept the surrender of outstanding Awards (to the extent not already
exercised) and grant new Awards in substitution of them (to the extent not already exercised), in order to comply with the requirements of applicable law or otherwise. Notwithstanding the foregoing, no modification of an Award shall, without the
prior written consent of the Participant, materially alter or impair any rights or obligations under any Award already granted under the Plan, except such an amendment made to comply with the requirements of applicable law. 

 

	15.2	Adjustment of Awards upon the Occurrence of Certain Events. 

  

	 	(a)	 In General. If the Shares, as currently constituted, are changed into or exchanged for a different number or kind
of shares of stock or other securities of the Company or of another 

	 	
corporation (whether because of a merger, consolidation, recapitalization, reclassification, split, reverse split, combination of shares, or otherwise, but not including a capital infusion from
any source) or if the number of Shares is increased through the payment of a stock dividend, then the Committee shall substitute for or add to each Share underlying an Award the number and kind of shares of stock or other securities into which each
outstanding Share was changed, for which each such Share was exchanged, or to which each such Share is entitled, as the case may be, which shares or other securities shall be subject to the same terms and conditions as the underlying Award. Any such
adjustment in an outstanding Stock Option or Stock Appreciation Right shall be made with a corresponding adjustment in the Exercise Price for each Share or other unit of any security covered by such Stock Option or Stock Appreciation Right but
without change in the aggregate purchase price applicable to the unexercised portion of such Stock Option. 

  

	 	(b)	Reciprocal Transactions. The Committee may, but shall not be obligated to, make an appropriate and proportionate adjustment to an Award or to the Exercise Price of any outstanding Award, and/or grant an additional Award
to the holder of any outstanding Award, to compensate for the diminution in the intrinsic value of the Shares resulting from any reciprocal transaction. 

  

	 	(c)	Certain Unusual or Nonrecurring Events. In recognition of unusual or nonrecurring events affecting the Company or its financial statements, or in recognition of changes in applicable laws, regulations, or accounting
principles, and, whenever the Committee determines that adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Committee may, using reasonable
care, make adjustments in the terms and conditions of, and the criteria included in, Awards. In no event will the Committee, unless otherwise approved by shareholders, be permitted (i) to reduce the Exercise Price of any outstanding Stock Option or
Stock Appreciation Right, (ii) cancel a Stock Option or Stock Appreciation Right in exchange for cash or other Awards (except as provided in Section 15.4), (iii) exchange or replace an outstanding Stock Option or Stock Appreciation Right with a new
Stock Option or Stock Appreciation Right with a lower Exercise Price, or (iv) take any other action that would be a “repricing” of Stock Options or Stock Appreciation Rights. 

 

	 	(d)	Notice. The Committee shall give notice of any adjustment to each Participant who holds an Award that has been adjusted and the adjustment (whether or not such notice is given) shall be effective and binding for all
Plan purposes. 

  

	 	(e)	Section 409A. Notwithstanding any provision herein to the contrary, no adjustment shall be made under this Section 15.2 to the extent it would give rise to adverse tax consequences under Section 409A. 

 

	15.3	Fractional Shares. Fractional Shares, whether resulting from any adjustment in Awards pursuant to Section 15.2 or otherwise, may be settled in cash or otherwise as the Committee determines. 

 

	15.4	Change in Control. 

	 	(a)	If, within twelve months following a Change in Control, (i) a Participant is terminated by the Company or an employing Affiliate (that is not a Joint Venture) without Cause or (ii) such Participant resigns from the
Company or an employing Affiliate (that is not a Joint Venture) for Good Reason, all then outstanding Awards shall become fully vested. 

  

	 	(b)	Any Award that has not been fully exercised before the date of a Change in Control may be settled or otherwise terminated on such date in the discretion of the Committee, unless a provision has been made in writing in
connection with such transaction for the assumption of all Awards theretofore granted, or the substitution for such Awards of awards to acquire the stock of the surviving, resulting or acquiring corporation, with any adjustments as the Committee
determines appropriate, in which event the Awards theretofore granted shall continue in the manner and under the terms so provided. Notwithstanding anything in the Plan to the contrary, any underwater Award that has not been fully exercised, and any
Award that the Committee determines cannot become vested, before the date of consummation of the Change in Control may be canceled without consideration in the discretion of the Committee. 

 

	15.5	Tax Withholding. The Company shall have the right to deduct or withhold, or require a Participant to remit to the Company, an amount (either in cash or Shares) sufficient to satisfy any Withholding Tax.

 SECTION 16 

Miscellaneous Provisions 
  

	16.1	Successors. All obligations of the Company under the Plan or any Terms and Conditions shall be binding on any successor to the Company, whether the existence of the successor results from a direct or indirect purchase
of all or substantially all of the Company’s stock, or a merger or consolidation, or otherwise. 

  

	16.2	Legal Construction. 

  

	 	(a)	Number. Except where otherwise indicated by the context, any plural term used in the Plan includes the singular and any singular term includes the plural. 

 

	 	(b)	Severability. If any provision of the Plan is held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the
illegal or invalid provision had not been included. 

  

	16.3	Business Day. In the event the day prescribed for the performance of any act under the Plan, or deadline by which such act must be performed, shall fall on a day other than a Business Day, such day or deadline shall be
extended until the close of business on the next succeeding Business Day. 

  

	16.4	Requirements of Law. The granting of Awards, the issuance of Shares and the payment of cash under the Plan shall be subject to all applicable laws, rules and regulations, and to any approvals by governmental agencies or
national securities exchanges as may be required. 

  

	16.5	Rights of a Shareholder. A Participant shall not be, nor shall a Participant have any of the rights and privileges of, a shareholder until certificates for the underlying Shares have been issued or the underlying Shares
have been registered as a book-entry in the name of the Participant. 

	16.6	Securities Law Compliance. 

  

	 	(a)	As to any individual who is, on the relevant date, an officer, director or greater than 10% percent beneficial owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the
Exchange Act, all as defined under Section 16 of the Exchange Act, transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 under the Exchange Act, or any successor rule. To the extent any provision of the Plan
or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 

  

	 	(b)	To the extent the Committee deems it necessary, appropriate or desirable to comply with state securities laws or practice and to further the purposes of the Plan, the Committee may, without amending the Plan, (i)
establish rules applicable to Awards granted to Participants, including rules that differ from those set forth in the Plan, and (ii) grant Awards to such Participants in accordance with those rules that would require the application of the
securities laws of any state. 

  

	16.7	Unfunded Status of the Plan. The Plan is intended to constitute an “unfunded” plan for incentive compensation. With respect to any payments or deliveries of Shares not yet made to a Participant by the Company,
the Participant’s rights are no greater than those of a general creditor of the Company. The Committee may authorize the establishment of trusts or other arrangements to meet the obligations created under the Plan, so long as the arrangement
does not cause the Plan to lose its legal status as an unfunded plan. 

  

	16.8	Non-U.S. Based Participant. Notwithstanding any other provision of the Plan to the contrary, the Committee may make Awards to Participants who are not citizens or residents of the United States, or to Participants
outside the United States, on terms and conditions that are different from those specified in the Plan as may, in the Committee’s judgment, be necessary or desirable to foster and promote achievement of the Plan’s purposes. In furtherance
of such purposes, the Committee may, without amending the Plan, establish or modify rules, procedures and subplans as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company operates
or has employees. 

  

	16.9	Governing Law. To the extent not preempted by Federal law, the Plan and all agreements hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of New York, without giving
effect to its conflicts of law principles that would require the application of the law of any other jurisdiction. 

  

	16.10	Section 162(m). The Plan is intended to be administered, interpreted and construed so that Performance Awards may qualify for the Performance-Based Exception. 

 

	16.11	Recoupment. Notwithstanding any provision in the Plan to the contrary, Awards granted or paid under the Plan will be subject to recoupment by the Company pursuant to any “clawback” or similar compensation
recoupment policy that may be established by the Company.Exhibit 10.4

 

ASSET PURCHASE AGREEMENT

 

ASSET PURCHASE AGREEMENT, dated as of November 3, 2016 (this “Agreement”), by and between MAST Capital Management, LLC, a Delaware limited liability company (“MAST”), and GECC GP Corp., a Delaware corporation (“GP Corp”).  Certain terms are defined in Section 6.15.

 

RECITALS

 

GECM entered into an investment management agreement, dated as of September 27, 2016 (as may be amended, restated or supplemented from time to time, the “Investment Management Agreement”), with GECC and in order to fulfill GECM’s obligations thereunder, GECM intends to acquire the right to employ all of MAST’s employees as of the date of this Agreement (the “Effective Date”) on such terms as have been previously approved by MAST (collectively, the “Team”) and to make the Team available to MAST pursuant to a cost sharing agreement between GECM and MAST, dated as of the Effective Date, in the form of Annex 1 (as may be amended, restated or supplemented from time to time, the “Cost Sharing Agreement”), which among other things, provides for MAST to incur a reasonable allocation of the cost of the Team and the infrastructure to support the Team.

 

MAST wishes to (a) sell and assign to GP Corp, and GP Corp wishes to purchase and assume from MAST, the rights and obligations of MAST to the Purchased Assets and the Assumed Liabilities, and (b) to the maximum extent permitted by applicable Law, grant to GP Corp, and GP Corp wishes to accept from MAST, the right to use the Operating Assets, in each case subject to the terms and conditions set forth herein.

 

AGREEMENT

 

In consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, the parties hereto, intending to be legally bound, agree as follows:

 

1.             THE TRANSACTIONS

 

1.1          Asset Purchase. On the terms of this Agreement, MAST shall sell, assign, transfer, convey and deliver to GP Corp, and GP Corp shall purchase from MAST, all of MAST’s right, title and interest in all of the assets, properties and rights used or held for use by MAST in the operation or conduct of its historical business existing on the Effective Date, wherever located, whether tangible or intangible, real, personal or mixed, including, for the avoidance of doubt, the following assets (except, in each case, for the Excluded Assets), whether or not any of such assets, properties or rights have any value for accounting purposes or are carried or reflected on or specifically referred to in MAST’s books or financial statements: (i) the Assigned Contracts and all prepayments related thereto; (ii) the Assumed Leases and any deposits related thereto; (iii) the leasehold interest (the “Transferred Premises”) described in Section 1.1(b)(iii) of the disclosure letter delivered by MAST to GP Corp concurrent with delivery of this Agreement (the “Disclosure Letter”); (iv) all Fixtures and Supplies; (v) the Business Records which relate to the assets acquired by GP Corp under this Agreement (the “Purchased Assets”) and the Assumed Liabilities to the extent the purchase and sale thereof is permitted by Law and, with respect to any portion of such Business Records which are required by Law to be retained by MAST or its Affiliates, the right to access and copy such portions; (vi) the Goodwill connected with the use of the Purchased Assets; (vii) all rights to the claims, causes of action, rights of recovery, and rights of set-off, made or asserted against any Person on or after the Effective Date relating to the Purchased Assets, whether arising out of actions or conditions occurring prior to, on, or after the Effective Date, including all rights to sue for or assert claims against and seek remedies and to retain any and all damages, settlement amounts and other amounts therefrom; (viii) all Software; and (ix) all guarantees, warranties, indemnities and similar rights in favor of MAST or its Affiliates related to any of the foregoing (collectively, the “Purchased Assets”) free and clear of any Encumbrances.

 

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1.2          Excluded Assets. Notwithstanding Section 1.1(a) (if there is a conflict, ambiguity or other dispute, the exclusions in this Section 1.1(b) shall control the inclusions in Section 1.1(a)), the Purchased Assets shall not include (i) MAST’s receivables, cash, cash equivalents, bank deposits or similar cash items (other than deposits or prepayments related to a Purchased Asset or employee receivables); (ii) any Intellectual Property or Information of MAST, other than the Team-Related Know-how and right to performance attribution; (iii) any (A) confidential personnel records pertaining to any member of the Team, and (B) other Business Records which MAST or any Affiliate of MAST is required by applicable Law to retain; provided, that GP Corp or GECM , as applicable, shall have the right, to the extent permitted by applicable Law and subject to reasonable restrictions, to make copies of any portions of such retained Business Records that relate to the Team; (iv) any confidential information related to any investor in any investment fund or account managed by MAST that MAST is required by applicable Law or Contract to retain; (v) any claim, right or interest of MAST or any Affiliate of MAST in or to any refund, rebate, abatement or other recovery for Excluded Taxes, together with any interest due thereon or penalty rebate arising therefrom; (vi) the right to use MAST’s name, trademark or trade dress; (vii) any rights to or from all current or future investment funds and accounts managed by MAST, including the investment management agreements and any management fees or incentive fees in respect of such funds or accounts; (viii) any insurance policies held by MAST or any of its Affiliates or rights of proceeds thereof; (ix) any permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained by MAST or any of its Affiliates from Governmental Bodies; and (x) except as expressly included among the Purchased Assets, any of MAST’s or any of its Affiliate’s rights, claims or causes of action against Third Parties relating to the assets, properties or operations arising out of transactions occurring prior to, and including, the Effective Date (such rights, assets and properties, whether or not reflected on MAST’s financial statements, the “Excluded Assets”).

 

1.3          Assumption of Obligations. Subject to the terms and conditions set forth herein, GP Corp shall assume and agree to pay, perform and discharge the Assumed Liabilities arising after the Effective Date under the Purchased Assets.  Other than the Assumed Liabilities, GP Corp shall not assume any liabilities or obligations of MAST of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing or hereinafter created.

 

1.4          Purchase Price. The aggregate purchase price for the Purchased Assets shall be $10.824 million, plus the assumption of the Assumed Liabilities and the grant of the Non-Exclusive Right (the “Purchase Price”).  GP Corp shall pay $10.824 million of the Purchase Price to MAST at the Closing by delivering to MAST a secured promissory notes in the form of Annex 3 (the “Senior Secured Note”).

 

1.5          Purchase Price Allocation. MAST and GP Corp agree that for federal, state and local income Tax purposes, the transactions contemplated by this Agreement (the “Transactions”) shall constitute a taxable sale of assets of MAST in exchange for the consideration contemplated hereby and, unless required by Law, neither of MAST nor GP Corp shall take any position on any Tax return inconsistent therewith; provided that MAST and GP Corp agree that the Transactions are expected to constitute an installment sale under Section 453 of the Internal Revenue Code of 1986 (the “Code”)  as evidenced by the Senior Secured Notes.  For United States federal, state and local income Tax purposes, MAST and GP Corp agree to allocate the purchase price, if and when paid, among the Purchased Assets in a mutually acceptable reasonable manner.  MAST and GP Corp further agree to file any United States federal, state and local income Tax returns in a manner consistent with the previous sentence.

 

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1.6          Non-Assignable Purchased Assets.

 

(a)           Nothing in this Agreement nor the consummation of the Transactions shall be construed as an attempt or agreement to assign any Purchased Asset, including any Contract, permit, certificate, approval, authorization or other right, which by its terms or by Law is non-assignable without the consent of a Third Party or a Governmental Body or is cancelable by a Third Party in the event of an assignment (any such Purchased Assets, a “Non-Assignable Purchased Asset”) unless and until such consents shall have been obtained; provided that if GP Corp notifies MAST that any Purchased Asset should be transferred notwithstanding the right of a Third Party to cancel in the event of an assignment, then such Purchased Asset that is cancelable by a Third Party in the event of assignment shall not be included as a Non-Assignable Purchased Asset for purposes of this Agreement.  MAST shall use all reasonable commercial efforts to obtain such consents and deliver any required notices prior to the Closing, and GECM shall cooperate with MAST to obtain such consents promptly.  To the extent permitted by applicable Law and the terms of such Non-Assignable Purchased Asset, if consents to the assignment thereof cannot be obtained, MAST and GP Corp shall cooperate in a mutually agreeable arrangement under which (i) GP Corp would obtain the benefits and assume the obligations under such Non-Assignable Purchased Assets in accordance with this Agreement, including by subcontracting, sublicensing, or subleasing to GP Corp, or (ii) such Non-Assignable Purchased Assets would be held, as of and from the Effective Date, by MAST in trust for GP Corp and the covenants and obligations thereunder would be performed by GP Corp in MAST’s name and all benefits and obligations existing thereunder would be for GP Corp’s account.  MAST shall, and shall cause its Affiliates to, also take or cause to be taken at GP Corp’s expense such actions in its name or otherwise as GP Corp may reasonably request so as to provide GP Corp with the benefits of the Non-Assignable Purchased Assets and to effect collection of money or other consideration that becomes due and payable under the Non-Assignable Purchased Assets, and MAST shall hold in trust for the benefit of GP Corp and promptly pay over to GP Corp all money or other consideration received by it in respect to all Non-Assignable Purchased Assets.  If after the Effective Date any Non-Assignable Purchased Asset becomes assignable (either because consent for the assignment thereof is obtained or otherwise), MAST shall promptly notify GP Corp and assign or transfer such previously Non-Assignable Purchased Asset to GP Corp.

 

(b)           From and after the Effective Date, MAST, on behalf of itself and its Affiliates, hereby authorizes GP Corp, to the extent permitted by applicable Law and the terms of the Non-Assignable Purchased Assets, at GP Corp’s expense, to perform all the obligations and receive all the benefits of MAST or its Affiliates under the Non-Assignable Purchased Assets.

 

(c)           Notwithstanding anything in this Agreement to the contrary, unless and until any consent or approval with respect to any Non-Assignable Purchased Asset is obtained, such Non-Assignable Purchased Asset shall not constitute a Purchased Asset and any associated liability shall not constitute an Assumed Liability for any purpose under this Agreement.

 

(d)           GP Corp hereby grants to MAST, and MAST hereby accepts from GP Corp, the perpetual non-exclusive, royalty-free right to use the Purchased Assets, other than the Operating Assets and the Goodwill connected with the use thereof, in each case, in the operation of its business, solely with respect to investment funds and accounts managed by MAST commencing Effective Date immediately following the Closing (the “Non-Exclusive Right”).

 

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1.7          Closing. The closing (the “Closing”) of the Transactions shall take place simultaneously with the execution of this Agreement on the Effective Date at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, New York, New York or such other location as is mutually agreed upon by the parties hereto.  The Transactions shall be deemed to have occurred at 12:00 a.m. on the Effective Date.

 

(a)           MAST shall deliver to GP Corp the following: (i) a Bill of Sale duly executed by MAST; (ii) an Assignment and Assumption Agreement duly executed by MAST; (iii) an Assignment and Assumption of Lease in form and substance reasonably satisfactory to GP Corp (the “Assignment and Assumption of Lease”) and duly executed by MAST; (iv) a certificate of the Secretary or Assistant Secretary (or equivalent officer) of MAST certifying as to (A) the resolutions of the board of managers (or equivalent body) of MAST, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement and the Transactions contemplated hereby, and (B) the names and signatures of the officers of MAST authorized to sign this Agreement and the documents to be delivered hereunder; and (iv) such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to GP Corp, as may be reasonably required to give effect to the Transactions.

 

(b)           GP Corp shall deliver to MAST the following: (i) Senior Secured (ii) an Assignment and Assumption Agreement duly executed by GP Corp; (iii) the Assignment and Assumption of Lease duly executed by GP Corp; (iv) a certificate of the Secretary or Assistant Secretary (or equivalent officer) of GP Corp certifying as to (A) the resolutions of the board of directors of GP Corp, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement and the Transactions contemplated hereby, and (B) the names and signatures of the officers of GP Corp authorized to sign this Agreement and the documents to be delivered hereunder; and (v) such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory to MAST, as may be reasonably required to give effect to the Transactions.

 

2.             REPRESENTATIONS AND WARRANTIES OF MAST. MAST represents and warrants to GP Corp that the statements contained in this Article 2 are true and correct as of the Effective Date.

 

2.1          Organization.  MAST is a limited liability company duly organized, validly existing and in good standing under the laws of the state of Delaware.

 

2.2          Authorization; Validity of Agreement; Required Action. MAST has the requisite corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a party and to consummate the Transactions that are required to be consummated by MAST.  The execution and delivery by MAST of this Agreement and the Ancillary Agreements to which it is a party, the performance of MAST’s obligations hereunder and thereunder and the consummation by MAST of the Transactions that are required to be consummated by MAST have been duly authorized by its board of managers (or equivalent body), and no other corporate action on the part of MAST is necessary to authorize the execution and delivery by MAST of this Agreement, the Ancillary Agreements to which it is a party and the consummation by it of the Transactions required to be consummated by MAST.  Each of this Agreement and the Ancillary Agreements to which MAST is a party has been duly executed and delivered by MAST and, assuming due and valid authorization, execution and delivery hereof or thereof by each other party hereto or thereto, is a valid and binding obligation of MAST, enforceable against MAST in accordance with its terms, except that (a) such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar Laws, now or hereafter in effect, affecting creditors’ rights and remedies generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought (together with the exceptions in clause (a) above, the “Enforceability Exceptions”).

 

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2.3          Consents and Approvals; No Violations. The execution and delivery of this Agreement and the documents to be delivered hereunder by MAST does not, and the performance by MAST of its obligations under this Agreement and the consummation by MAST of the Transactions required to be consummated by MAST will not: (a) violate any provision of the organizational documents, as amended, of MAST; (b) other than with respect to any Non-Assignable Purchased Asset, require any consent by any Person under, conflict with or result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration) under any Contract to which MAST is a party or by which it or any of its properties or assets is bound or result in the creation of any Encumbrance in or upon any of the properties, rights or assets of MAST; (c) violate any Law applicable to MAST or any of its properties or assets; or (d) require MAST to make any filing or registration with, or provide any notification to, or require MAST to obtain any authorization, consent or approval of, waiver by (“Consents”) any Governmental Body, except in the case of clauses (b), (c) and (d) above, for such violations, breaches or defaults that, or such filings, registrations, notifications, authorizations, consents or approvals the failure of which to make or obtain, would not have a Material Adverse Effect.

 

2.4          Title to Purchased Assets. MAST owns and has good title to the Purchased Assets, free and clear of Encumbrances (other than any Encumbrances created hereunder).

 

2.5          Condition of Assets. The tangible personal property included in the Purchased Assets is in good condition and is adequate for the uses to which it is being put, and none of such tangible personal property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs.  But for the Excluded Assets, the Purchased Assets are sufficient for GP Corp to conduct the business currently conducted by MAST.

 

2.6          Assigned Contracts. Section 2.6 of the Disclosure Letter includes each Contract included in the Purchased Assets and being assigned to and assumed by GP Corp (the “Assigned Contracts”).  Each Assigned Contract is valid and binding on MAST in accordance with its terms and is in full force and effect.  MAST is not in breach of or default under, or has provided to or received from any other party thereto any written notice of any breach of or default under or of any intention to terminate, any Assigned Contract.  Complete and correct copies of each Assigned Contract have been made available to GP Corp on or before the Effective Date.  There are no disputes pending or, to MAST’s knowledge, threatened under any Assigned Contract that would have a Material Adverse Effect.

 

2.7          Compliance With Laws.  MAST is in compliance with all applicable Laws applicable to ownership and use of the Purchased Assets.

 

2.8          Legal Proceedings. There is no claim, action, suit, proceeding or governmental investigation (“Action”) of any nature pending or, to MAST’s knowledge, threatened against or by MAST (a) in respect of the Purchased Assets or the Assumed Liabilities; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the Transactions contemplated by this Agreement.  To MAST’s knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

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2.9          Brokers or Finders. No investment banker, broker, finder, financial advisor or intermediary is entitled to any investment banking, brokerage, finder’s or similar fee or commission in connection with this Agreement or the Transactions based upon arrangements made by or on behalf of MAST.

 

2.10        No Other Representations or Warranties; Independent Investigation. Except for the representations and warranties contained in this Article IV, neither MAST nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of MAST, to GP Corp.  GP Corp has conducted its own independent investigation, review and analysis of the business, results of operations, prospects, condition (financial or otherwise) or assets of MAST, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records and other documents and data of MAST for such purpose.  GP Corp acknowledges and agrees that (a) in making its decision to enter into this Agreement and the Ancillary Agreements to which it is a party and to consummate the Transactions, GP Corp has relied solely upon its own investigation and the express representations and warranties of MAST set forth in Article IV of this Agreement (including the related portions of the Disclosure Letter), and (b) neither MAST nor any other Person has made any representation or warranty as to MAST or the Transactions, except as expressly set forth in Article IV of this Agreement (including the related portions of the Disclosure Letter).

 

3.             REPRESENTATIONS AND WARRANTIES OF GP CORP. TO MAST. GP Corp represents and warrants to MAST that the statements contained in this Article 3 are true and correct as of the Effective Date.  For purposes of this Article 3, “GP Corp’s knowledge,” “knowledge of GP Corp” and any similar phrases shall mean the actual or constructive knowledge of any director or officer of GP Corp, after due inquiry.

 

3.1          Organization. GP Corp is a corporation duly organized, validly existing and in good standing under the laws of the state of Delaware.

 

3.2          Authorization; Validity of Agreement; Required Action. .GP Corp has the requisite corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a party and to consummate the Transactions that are required to be consummated by GP Corp.  The execution and delivery by GP Corp of this Agreement and the Ancillary Agreements to which it is a party, the performance of GP Corp’s obligations hereunder and thereunder and the consummation by GP Corp of the Transactions that are required to be consummated by GP Corp have been duly authorized by its board of directors (or equivalent body), and no other corporate action on the part of GP Corp is necessary to authorize the execution and delivery by GP Corp of this Agreement, the Ancillary Agreements to which it is a party and the consummation by it of the Transactions required to be consummated by GP Corp.  Each of this Agreement and the Ancillary Agreements to which GP Corp is a party has been duly executed and delivered by GP Corp and, assuming due and valid authorization, execution and delivery hereof or thereof by each other party hereto or thereto, is a valid and binding obligation of GP Corp, enforceable against GP Corp in accordance with its terms, except for the Enforceability Exceptions.

 

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3.3          Consents and Approvals; No Violations. The execution and delivery of this Agreement and the documents to be delivered hereunder by GP Corp does not, and the performance by GP Corp of its obligations under this Agreement and the consummation by GP Corp of the Transactions required to be consummated by GP Corp will not: (a) violate any provision of the organizational documents, as amended, of GP Corp; (b) require any consent by any Person under, conflict with or result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration) under any Contract to which GP Corp is a party or by which it or any of its properties or assets is bound or result in the creation of any Encumbrance in or upon any of the properties, rights or assets of GP Corp; (c) violate any Law applicable to GP Corp or any of its properties or assets; or (d) require GP Corp to make any filing or registration with, or provide any notification to, or require GP Corp to obtain any Consents of or by any Governmental Body, except in the case of clauses (b), (c) and (d) above, for such violations, breaches or defaults that, or such filings, registrations, notifications or Consents the failure of which to make or obtain, would not have, or reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

3.4          Legal Proceedings. There is no Action of any nature pending or, to GP Corp’s knowledge, threatened against or by GP Corp that challenges or seeks to prevent, enjoin or otherwise delay the Transactions contemplated by this Agreement.  No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

3.5          Brokers or Finders. No investment banker, broker, finder, financial advisor or intermediary is entitled to any investment banking, brokerage, finder’s or similar fee or commission in connection with this Agreement or the Transactions based upon arrangements made by or on behalf of GP Corp.

 

3.6          No Operations. GP Corp has conducted no business and has incurred no liabilities or obligations except in connection with its formation and the transactions contemplated under this Agreement and the Ancillary Agreements to which it is a party.  The only Contract (whether or not legally enforceable) that GP Corp has entered into other than this Agreement and the Ancillary Agreements to which it is a party is set forth in Section 3.6 of the Disclosure Letter.

 

4.             COVENANTS

 

4.1          Bulk Sales Laws.

 

(a)           GP Corp hereby waives compliance by MAST with the requirements and provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction (collectively, the “Bulk Sales Laws”), including Article 6 of the Massachusetts Uniform Commercial Code, in each case that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to GP Corp.

 

4.2          Taxes.

 

(a)           The party hereto prescribed by applicable Law as primarily liable for the payment thereof shall be responsible for and shall pay when due any Transfer Taxes incurred in connection with the transfer of the Purchased Assets to and the assumption of the Assumed Liabilities by GP Corp pursuant to this Agreement.  Each of GP Corp and MAST shall cooperate to minimize the amount of Transfer Taxes.

 

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(b)           All Property Taxes levied with respect to the Purchased Assets for a Straddle Period shall be apportioned between MAST and GP Corp based on the number of days of such Straddle Period, and MAST shall be liable for the proportionate amount of such Property Taxes that is attributable to the Pre-Closing Tax Period within such Straddle Period, and GP Corp shall be liable for the proportionate amount of such Property Taxes that is attributable to the Post-Closing Tax Period within such Straddle Period.  Any refund, rebate, abatement or other recovery of such Property Taxes attributable to the Pre-Closing Tax Period shall be for the account of MAST, and any refund, rebate, abatement or other recovery of such Property Taxes attributable to the Post-Closing Tax Period shall be for the account of GP Corp.  Upon receipt of any bill (or any refund, rebate, abatement, or other recovery) for such Property Taxes, GP Corp or MAST, as applicable, shall present a statement to the other setting forth the amount of reimbursement to which each is entitled under this Section 4.2(b) together with such supporting evidence as is reasonably necessary to calculate the proration amount.  The proration amount shall be paid by the party hereto owing it to the other within ten days after delivery of such statement.  If that GP Corp or MAST makes any payment for which it is entitled to reimbursement under this Section, the applicable party hereto shall make such reimbursement promptly but in no event later than ten days after the delivery of a statement setting forth the amount of reimbursement to which the delivering party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of reimbursement.

 

(c)           Following the Closing, GP Corp and MAST shall cooperate as reasonably requested for the purpose of enabling the requesting party to (i) make any election relating to Taxes, (ii) prepare Tax returns with respect to their respective businesses or the Purchased Assets or (iii) to prepare for and defend audits or other Tax-related examinations by a Governmental Body with respect to their respective businesses and the Purchased Assets.  Such cooperation shall be at the expense of the requesting party.

 

4.3          Purchased Assets. Following the Closing and subject to Section 1.6 with respect to Non-Assignable Purchased Assets, GP Corp shall take all actions required to comply with the terms of any Purchased Asset (including promptly paying, performing or discharging any liabilities or obligations with respect to any Purchased Asset arising after the Effective Date).

 

4.4          Further Assurances. Following the Closing, each of the parties shall execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the documents to be delivered hereunder (including (a) transferring back to MAST any asset or liability not contemplated by this Agreement to be a Purchased Asset or an Assumed Liability, which such asset or liability was transferred to GP Corp at the Closing, and (b) transferring to GP Corp any asset or liability contemplated by this Agreement to be a Purchased Asset or an Assumed Liability which was not transferred to GP Corp at the Closing).  Without limiting the generality of the foregoing, GP Corp and MAST shall, and shall cause their respective Affiliates to, use their respective reasonable commercial efforts to obtain, or to cause to be obtained, any consent, substitution, approval, or amendment required to transfer all rights and obligations under any and all Assigned Contracts, permits, certificates, approvals, authorizations or other rights that constitute Purchased Assets or obligations or liabilities that constitute Assumed Liabilities.

 

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5.             MISCELLANEOUS

 

5.1          Survival. Each of the representations, warranties, covenants and agreements contained herein (or any certificate delivered pursuant hereto) shall survive the Closing indefinitely (or, in each case, until the final resolution of any claim or action arising from the breach of any such representations or warranties or the breach or non-fulfillment of any such covenants or agreements, if written notice of such breach or non-fulfillment was delivered prior to the end of such survival period.

 

5.2          Expenses. Except as otherwise expressly provided herein, all costs, fees and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party hereto incurring such costs, fees or expenses.

 

5.3          Notices.  All notices and other communications hereunder will be in writing and will be deemed to have been given (a) when delivered by hand (with written confirmation of receipt) or (b) when received by the addressee if sent by an internationally recognized courier service, such as DHL.  Such communications must be sent to the respective parties hereto at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 5.3):

 

If to MAST:          MAST Capital Management, LLC

200 Clarendon Street, 51st Floor

Boston, MA 02116

Attention: General Counsel

 

If to GP Corp:                   GECC GP Corp.

200 Clarendon Street, 51st Floor

Boston, MA 02116

Attention: General Counsel

 

If to GECM:                           Great Elm Capital Management, Inc.

200 Clarendon Street, 51st Floor

Boston, MA 02116

Attention: General Counsel

 

5.4          Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

5.5          Severability. Any term or provision hereof that is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the invalid, void or unenforceable term or provision in any other situation or in any other jurisdiction.  If the final judgment of a court of competent jurisdiction or other authority declares any term or provision hereof invalid, void or unenforceable, the court or other authority making such determination will have the power to and will, subject to the discretion of such body, reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision.

 

5.6          Entire Agreement.  This Agreement and the Ancillary Agreements constitute the sole and entire agreement of the parties hereto with respect to the subject matter contained herein and therein and supersede all prior and contemporaneous agreements, negotiations, arrangements, representations and understandings, written, oral or otherwise, between such parties with respect to such subject matter.  In the event of any inconsistency between the statements in the body of this Agreement and the Ancillary Agreements, the Annexes, the Exhibits and Disclosure Letter (other than an exception expressly set forth as such in the Disclosure Letter), the statements in the body of this Agreement will control.

 

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5.7          Successors and Assigns. This Agreement shall be binding upon, shall inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  No party hereto may assign, delegate or otherwise transfer this Agreement or any rights or obligations under this Agreement in whole or in part (whether by operation of law or otherwise), without the prior written content of the other parties hereto.  Subject to the foregoing, no assignment shall relieve the assigning party of any liability or obligation hereunder.  Any assignment in violation of this Section 6.7 will be null and void.

 

5.8          No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

5.9          Amendment and Modification. The parties hereto may (a) extend the time for the performance of obligations or other acts of another party hereunder, (b) waive any inaccuracies in the representations or warranties of another party herein, (c) waive compliance by another party with any of the agreements or covenants herein or (d) amend, modify or supplement this Agreement.  Any agreement on the part of a party hereto to any such extension or waiver will be valid only if in an instrument in writing signed by an authorized representative of such party.  This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.

 

5.10        Waiver. No waiver by any party hereto of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.  No waiver by any party hereto shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver.  No failure to exercise or assert, or delay in exercising or asserting, any right, remedy, power or privilege arising from this Agreement will impair such right, remedy, power or privilege or be construed as a waiver thereof, an acquiescence therein or creating an estoppel with respect thereto, nor will any single or partial exercise or assertion of any right, remedy, power or privilege hereunder preclude any other or further exercise or assertion thereof or the exercise or assertion of any other right, remedy, power or privilege.  All rights and remedies under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

5.11        Governing Law. This Agreement and the transactions contemplated hereby shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made in and wholly to be performed in the State of Delaware.

 

5.12        Exclusive Forum

 

(a)           Any dispute under this Agreement or any Ancillary Agreement shall be exclusively resolved through binding arbitration in Boston in accordance with conducted in accordance with the expedited procedures set forth in the JAMS Comprehensive Arbitration Rules and Procedures as then in effect (including rules 16.1 and 16.2 or their successors), as modified herein.  Each party shall nominate within ten days of filing of the notice of arbitration a JAMS arbitrator and such JAMS arbitrators shall select within seven days a third JAMS Arbitrator who shall be the sole Arbitrator to resolve such dispute (the “Arbitrator”). The failure of a party to appoint an arbitrator within the time prescribed shall be deemed equivalent to appointing the arbitrator appointed by the other party as the Arbitrator.

 

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(b)           Within ten days following the selection of the Arbitrator, each party shall submit to the Arbitrator such party’s proposed order resolving all matters (including cross claims) that are or could be included in the arbitration (a “Settlement Proposal”).  The sole finding by the Arbitrator shall be to select which of the Settlement Proposals most closely approximates the Arbitrator’s own determination of the proper resolution in total of all matters (including cross claims). The Arbitrator shall have no right to propose a middle ground or any modification of either of the two Settlement Proposals. The Settlement Proposal chosen by the Arbitrator as that mostly closely approximating the Arbitrator’s own determination of the proper audit dispute settlement amount shall constitute the decision of the Arbitrator and shall be final and binding upon the parties. The Arbitrator shall not be required to provide a reasoned opinion for his or her adoption of such party’s opinion, but the Arbitrator’s determination shall be based on which party’s position in the aggregate most closely approaches the correct interpretation of this Agreement, the law and the facts.

 

(c)           Any award issued by the Arbitrator may be reduced to a judgment and entered in a court of competent jurisdiction.  The party whose settlement proposal is selected by the Arbitrator shall be entitled to reimbursement of all costs, attorneys’ fees and other expenses associated with resolution of the dispute.

 

(d)           The arbitration shall be governed by the Rules of Civil Procedure and the Rules of Evidence as applicable in the Court of Chancery of the State of Delaware when such court is hearing matters solely involving Delaware law.  Where such rules confer on the court discretion in granting waivers or extending time for performance, the Arbitrator may not grant such waiver or make such extension without the consent of all parties to the arbitration.  Where such rules confer on the court discretion in granting waivers or extending time for performance, the Arbitrator may not grant such waiver or make such extension without the consent of all parties to the arbitration.  Except as required by law, neither any Party nor the Arbitrator may disclose the existence, content or results of the arbitration.

 

(e)           In any arbitration arising out of or related to this Agreement, requests for documents: (i) shall be limited to documents which are directly relevant to significant issues in the case or to the case’s outcome; (ii) shall be restricted in terms of time frame, subject matter and persons or entities to which the requests pertain; and (iii) shall not include broad phraseology such as “all documents directly or indirectly related to.

 

(f)            In any arbitration arising out of or related to this Agreement (i) there shall be production of electronic documents only from sources used in the ordinary course of business. Absent a showing of compelling need, no such documents are required to be produced from backup servers, tapes or other media, (ii) absent a showing of compelling need, the production of electronic documents shall normally be made on the basis of generally available technology in a searchable format which is usable by the party receiving the e-documents and convenient and economical for the producing party. Absent a showing of compelling need, the parties need not produce metadata, with the exception of header fields for email correspondence; (iii) the 

 

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description of custodians from whom electronic documents may be collected shall be narrowly tailored to include only those individuals whose electronic documents may reasonably be expected to contain evidence that is material to the dispute; and (iv) where the costs and burdens of e-discovery are disproportionate to the nature of the dispute or to the amount in controversy, or to the relevance of the materials requested, the Arbitrator shall deny such requests. In any arbitration arising out of or related to this Agreement, there shall be no interrogatories or requests to admit. In any arbitration arising out of or related to this Agreement, each side may take two discovery depositions. Each side’s depositions are to consume no more than a total of fifteen hours. There are to be no speaking objections at the depositions, except to preserve privilege. The total period for the taking of depositions shall not exceed four weeks. Any party wishing to make a dispositive motion shall first submit a brief letter (not exceeding five pages) explaining why the motion has merit and why it would speed the proceeding and make it more cost-effective. The other side shall have a brief period within which to respond. Based on the letters, the Arbitrator will decide whether to proceed with more comprehensive briefing and argument on the proposed motion.  If the Arbitrator decides to go forward with the motion, he/she will place page limits on the briefs and set an accelerated schedule for the disposition of the motion. The pendency of such a motion will not serve to stay any aspect of the arbitration or adjourn any pending deadlines.

 

(g)           The following time limits are to apply to any arbitration arising out of or related to this Agreement: Discovery is to be completed within 45 days of the service of the arbitration demand, (b) the evidentiary hearing on the merits (“Hearing”) is to commence within 60 days of the service of the arbitration demand. At the Hearing, each side is to be allotted 1 day for presentation of direct evidence and for cross examination. The award shall be rendered within 45 days of the close of the Hearing or within 45 days of service of post-hearing briefs if the Arbitrator directs the service of such briefs. Failure to meet any of the foregoing deadlines will not render the award invalid, unenforceable or subject to being vacated. The Arbitrator, however, may impose appropriate sanctions and draw appropriate adverse inferences against the party primarily responsible for the failure to meet any such deadlines.

 

(h)           The Arbitrator must agree to abide by this Section 5.12 before accepting appointment.

 

(i)            Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF THIS AGREEMENT, THE NEGOTIATION OR ENFORCEMENT HEREOF OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

(j)            The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties hereto shall be entitled, in addition to any other remedies available at law or in equity or otherwise, to seek specific performance of the terms hereof.

 

5.13        Counterparts. This Agreement may be executed in one or more counterparts (whether delivered by electronic copy or otherwise), each of which will be deemed an original, but all of which together will be deemed to be one and the same agreement and will become effective when counterparts have been signed by each of the parties hereto and delivered to the other parties hereto.  Each party need not sign the same counterpart.  A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

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5.14        Construction and Interpretation. When a reference is made in this Agreement to a section or article, such reference will be to a section or article of this Agreement, unless otherwise clearly indicated to the contrary. Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be deemed to be followed by the words “without limitation”. The words “hereof,” “herein” and “herewith” and words of similar import will, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. The plural of any defined term will have a meaning correlative to such defined term and words denoting any gender will include all genders and the neuter. Where a word or phrase is defined herein, each of its other grammatical forms will have a corresponding meaning. A reference to any legislation or to any provision of any legislation will include any modification, amendment, re-enactment thereof, any legislative provision substituted therefore and all rules, regulations and statutory instruments issued or related to such legislation. If any ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. No prior draft of this Agreement will be used in the interpretation or construction of this Agreement. The parties hereto intend that each provision of this Agreement will be given full separate and independent effect.  Although the same or similar subject matters may be addressed in different provisions of this Agreement, the parties hereto intend that, except as expressly provided herein, each such provision will be read separately, be given independent significance and not be construed as limiting any other provision of this Agreement (whether or not more general or more specific in scope, substance or content). Article and section references are references to the articles and sections of this Agreement, unless otherwise specified. References to documents includes electronic communications. If there is any conflict, inconsistency or the like between this Agreement and any Ancillary Agreement, the applicable Ancillary Agreement shall control. No best evidence rule objection may be entered with respect to an electronic counterpart hereof.

 

5.15        Definitions.  For purposes of and as used in this Agreement, the following capitalized terms have the following meanings:

 

(a)           “Ancillary Agreements” means, collectively, the Cost Sharing Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the Revenue Sharing Agreement, and the Senior Unsecured Notes.

 

(b)           “Affiliate” of any Person means any Person that controls, is controlled by, or is under common control with such Person.  As used herein, “control” (including the terms “controlling”, “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities or other interests, by contract or otherwise.

 

(c)           “Assignment and Assumption Agreement” means an assignment and assumption agreement substantially in the form set forth in Exhibit A hereto, with such changes as are necessary to reflect the Transactions.

 

(d)           “Assumed Leases” means, collectively, (i) the real property leases listed in Section 5.15(d)(i) of the Disclosure Letter, and (ii) the personal property leases listed in Section 5.15(d)(ii) of the Disclosure Letter.

 

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(e)           “Assumed Liabilities” means, collectively, the liabilities and obligations arising after the Effective Date under the Assumed Leases and the Assigned Contracts, whether or not any such liability or obligation has a value for accounting purposes or is carried or reflected on or specifically referred to in MAST’s Business Records or financial statements, including Employment-Related Liabilities which have accrued or otherwise relate to periods occurring after the Effective Date and a pro-rated (based on time) portion of Employment-Related Liabilities that includes both a period before the Effective Date and a period after the Effective Date.

 

(f)            “Benefit Plan” means each Pension Plan, Welfare Plan and employment, compensation, bonus, pension, profit sharing, deferred compensation, incentive compensation, stock ownership, stock option, stock appreciation right, stock purchase, phantom stock or other equity compensation, performance, retirement, thrift, savings, stock bonus, excess benefit, supplemental unemployment, paid time off, perquisite, tuition reimbursement, outplacement, fringe benefit, vacation, sabbatical, sick leave, severance, or retention, termination, change in control, redundancy policy, workers’ compensation, retirement, cafeteria, disability, death benefit, hospitalization, medical, dental, life insurance, accident benefit, welfare benefit or other plan, program, agreement or arrangement, in each case maintained or contributed to, or required to be maintained or contributed to, by MAST or its Subsidiaries or any ERISA Affiliate, or any plan covering non-United States employees or former employees which if maintained or administered in or otherwise subject to the laws of the United States would be described in this paragraph, in each case for the benefit of any Business Employee.

 

(g)           “Bill of Sale” means a bill of sale substantially in the form set forth in Exhibit B hereto, with such changes as are necessary to reflect the Transactions.

 

(h)           “Business Day” means a day that is not (i) a Saturday, a Sunday or a statutory or civic holiday in the City of New York, (ii) a day on which banking institutions are required by Law to be closed in the City of New York.

 

(i)            “Business Records” means all books, records, ledgers, tangible data, disks, tapes, other media-storing data and files or other similar information whether in hardcopy or computer format and whether stored in network facilities or otherwise, in each case to the extent used or held for use primarily in the operation or conduct of MAST’s business, but excluding portions of such items to the extent (i) they are included in, or primarily related to, any Excluded Assets or Excluded Liabilities, or (ii) any applicable Law prohibits the transfer of such information.

 

(j)            “Contracts” means all contracts, licenses, purchase orders, agreements, arrangements or understandings (whether legally enforceable or subject to defenses), leases and subleases, including all amendments, restatements or supplements thereto.

 

(k)           “Employment-Related Liabilities” means any liability or obligation relating to or arising out of the employment or the termination of employment by MAST or its Affiliates of any current employee or consultant of MAST or its Affiliates (including members of the Team), including any and all liabilities or obligations relating to wages, remuneration, compensation, carried interest, management or incentive fee participation, profit sharing, unreimbursed expenses, benefits, severance, pensions, sabbatical, vacation, personal days, floating holidays or other paid-time-off, working time related benefits, time savings accounts, end of career indemnities, social security and related costs.

 

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(l)            “Encumbrance” means any lien, encumbrance, claim, charge, security interest, mortgage, pledge, easement, encroachment, building or use restriction, capital lease, conditional sale or other title retention agreement, covenant or other similar restriction, adverse claims of ownership or use, or other similar restriction or Third Party right.

 

(m)          “Environmental Law” means any Law that governs the existence of or provides a remedy for release of Hazardous Substances, the protection of persons, natural resources or the environment, the management of Hazardous Substances, or other activities involving Hazardous Substances.

 

(n)           “ERISA” means the Employee Retirement Income Security Act of 1974.

 

(o)           “ERISA Affiliate” means each Subsidiary and any other Person that, together with MAST is (or at the relevant time was) treated as a single employer under Section 414(b), (c), (m) or (o) of the Code.

 

(p)           “Excluded Liabilities” means, collectively, any liabilities or obligations of MAST or any of its Affiliates, whether direct or indirect, known or unknown, absolute or contingent, except for the Assumed Liabilities.  For the avoidance of doubt, the parties hereto agree that the Excluded Liabilities include any and all of the following liabilities or obligations, whether or not any such liability or obligation has a value for accounting purpose or is carried or reflected on or specifically referred to in MAST’s Business Records or financial statements: (i) any liability or obligation that arises from, or in connection with, the operation or the conduct of the ownership of the Purchased Assets on or prior to the Effective Date; (ii) any Excluded Taxes; (iii) any Environmental Liabilities; (iv) any liability or obligation arising out of or related to any Excluded Asset; (v) any trade payable that arises from, or in connection with, the operation or the ownership of the Purchased Assets on or prior to the Effective Date; (vi) any indebtedness for borrowed money or guarantees thereof of MAST or its Affiliates or intercompany obligations of MAST or its Affiliates; (vii)    any liability or obligation to any partner or shareholder in any investment vehicle managed or advised by MAST or its Affiliates; (viii) (A) Employment-Related Liabilities which have accrued or otherwise relate to periods occurring prior to and including the Effective Date or that relate on a prorated basis to a period occurring prior to and including the Effective Date; (B) any employee’s or former employee’s or his/her dependents’ rights or obligations under any fringe benefit of employment with MAST, including any Benefit Plan; (C) any retention payments owed to any current employee or former employee of MAST or its Affiliates (including members of the Team) pursuant to arrangements entered into on or prior to the Effective Date by MAST or its Affiliates; and (D) the employment or the termination of employment (whether before, on or after Closing) or the transfer by operation of Law, in each case as a result of the transactions contemplated by this Agreement, of any Person who is not a member of the Team but who claims or is deemed to transfer to GECM by operation of Law, including losses, liabilities or obligations arising from, or connected with, any Employment-Related Liabilities; (ix) any liability and obligation which arises out of or relates to any breach, default or violation by MAST or its Affiliates of any Assumed Lease or any Assigned Contract occurring on or prior to the Effective Date; and (x) any liability or obligation in connection with or relating to any actions, suits, claims, causes of action or proceedings against MAST or any of its Affiliates regarding or relating to (A) the operation or conduct of MAST’s business or (B) the ownership of the Purchased Assets, in either case on or before the Effective Date.

 

(q)           “Excluded Tax” means any liability, obligation or commitment, whether or not accrued, assessed or currently due and payable, with respect to (i) any Taxes of MAST or its Affiliates (including any liability of MAST or its Affiliates for the Taxes of any other Person (other than GP Corp or its Affiliates) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law)), as a transferee or successor, by contract or otherwise, (ii) any Taxes relating to, pertaining to, or arising out of, the Purchased Assets for any Pre-Closing Tax Period, including all interest, penalties or other amounts with respect thereto accruing in Post-Closing Tax Periods, and (iii) any Taxes required by Law to be paid by MAST or any of its Subsidiaries (or withheld from MAST by GP Corp) as a result of the sale of Purchased Assets in any jurisdiction (including any mandatory withholding Taxes) other than (x) any Transfer Taxes to be paid by GP Corp under Section 8.03 and (y) any Taxes to the extent deducted and withheld by GP Corp at the Closing pursuant to Section 8.03.

 

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(r)           “Fixtures and Supplies” means all fixtures, improvements, furniture, furnishings, equipment, machinery, tools, Office Equipment, supplies, vehicles, and other tangible personal property owned by MAST which are located on the Transferred Premises, and all warranties and guarantees, if any, express or implied, with respect to any of the foregoing, but excluding any such items primarily related to Excluded Assets or Excluded Liabilities.

 

(s)            “Goodwill” means the goodwill of MAST’s historical business connected with the use of the Purchased Assets or the Operating Assets, as the context dictates, including MAST’s historical investment performance, personal and ongoing business relationships, trade secrets and knowledge in connection with MAST’s business, the Team-Related Know-how and other Information relating thereto and the right to employ the Team, other than the goodwill connected with the use of and symbolized by any trademarks and service marks.

 

(t)            “Governmental Body” means any legislative, executive or judicial unit of any governmental entity (supranational, national, federal, provincial, state or local) or any department, commission, board, agency, bureau, official or other regulatory, administrative or judicial authority thereof.

 

(u)           “Hazardous Substance” means (i) any hazardous, toxic or dangerous waste, substance or material, (ii) asbestos or PCBs and (iii) any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any Governmental Body.

 

(v)           “Information” means any and all documented and undocumented information (excluding patents), including any technical information, trade secrets and other confidential information, data and drawings of whatever kind in whatever medium, specifications, techniques, know-how, network configurations and architectures, APIs, subroutines, techniques, user interfaces, URLs works of authorship, algorithms, formulae, protocols, schematics, compositions, processes, designs, bills of material, sketches, photographs, graphs, drawings, samples, non-patented inventions, discoveries, developments and ideas, build instructions, Software (in any form, including source code and executable or object code), build scripts, test scripts, databases and data collections, past and current manufacturing and distribution methods and processes, tooling requirements, current and anticipated customer requirements, price lists, part lists, customer lists, market studies, business plans, database technologies, systems, structures, architectures, improvements, devices, concepts, methods and information, however documented and whether or not embodied in any tangible form, and any and all notes, analysis, compilations, studies, summaries, and other material containing or based, in whole or in part, on any information included in the foregoing, and including all tangible embodiments of any of the foregoing.

 

(w)          “Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights, including all applications and registrations, and works of authorship, whether or not copyrightable; (iii) trade secrets and confidential know-how; (iv) patents and patent applications; (v) websites and internet domain name registrations; and (vi) all other intellectual property and industrial property rights and assets, and all rights, interests and protections that are associated with, similar to, or required for the exercise of, any of the foregoing.

 

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(x)           “Law” means any supranational, national, federal, state, provincial or local law, statute, ordinance, rule, regulation, code, order, judgment, injunction or decree of any country.

 

(y)           “Material Adverse Effect” means, with respect to any Person, any event, occurrence, fact, condition or change that is materially adverse to (a) the business, results of operations, financial condition or assets of the business of such Person, taken as a whole, or (b) the ability of such Person to consummate the Transactions; provided that “Material Adverse Effect” shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions generally affecting the industries in which the business of such Person operates; (iii) any changes in financial, banking or securities markets in general, including any disruption thereof and any decline in the price of any security or any market index or any change in prevailing interest rates; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof; (v) any action required or permitted by this Agreement or any action taken (or omitted to be taken) with the consent of or at the request of the other party to the Transactions; (vi) any changes in applicable Laws or accounting rules or the enforcement, implementation or interpretation thereof; (vii) the announcement, pendency or completion of the Transactions, including losses or threatened losses of employees, customers, suppliers, distributors or others having relationships with the such Person and its business; or (viii) any natural or man-made disaster or acts of God.

 

(z)           “Office Equipment” means all office equipment, whether or owned or leased, including computer hardware, telephone equipment, mobile phones, internet switches and routers.

 

(aa)         “Operating Assets” means those Fixtures and Supplies included in the Purchased Assets which constitute the infrastructure to support the Team set forth or described in Section 10.16(dd) of the Disclosure Letter.

 

(bb)         “Person” means any individual, corporation, partnership, firm, association, joint venture, joint stock company, trust, unincorporated organization or other entity, or any government or regulatory, administrative or political subdivision or agency, department or instrumentality thereof.

 

(cc)         “Property Tax” means any real property Tax, personal property Tax and similar ad valorem obligations.

 

(dd)         “Software” means any and all (i) computer programs, including any and all software implementations of algorithms, heuristics models and methodologies, whether in source code or object code, (ii) testing, validation, verification and quality assurance materials, (iii) databases, conversion, interpreters and compilations, including any and all data and collections of data, whether machine readable or otherwise, (iv) descriptions, schematics, flow-charts and other work product used to design, plan, organize and develop any of the foregoing, (v) software development processes, practices, methods and policies recorded in permanent form, relating to any of the foregoing, (vi) performance metrics, sightings, bug and feature lists, build, release and change control manifests recorded in permanent form, relating to any of the foregoing and (vii) all documentation, including user manuals, web materials, and architectural and design specifications and training materials, relating to any of the foregoing.

 

(ee)         “Straddle Period” means any Tax period that begins on or before and ends after the Effective Date.

 

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(ff)          “Subsidiary” means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors (or similar body) of such corporation, partnership, limited liability company or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.

 

(gg)         “Tax” means a tax of any kind, and all charges, fees, customs, levies, duties, imposts, required deposits or other assessments, whether federal, state, local or foreign, including all net income, capital gains, gross income, gross receipt, property, franchise, sales, use, excise, registration, withholding, payroll, employment, social security, worker’s compensation, unemployment, occupation, capital stock, ad valorem, value added, transfer, gains, profits, net worth, asset, transaction, real property, personal property, alternative, add-on minimum, escheat or estimated tax or other tax, including any interest, penalties or additions to tax with respect thereto, whether disputed or not, imposed upon any Person by any taxing or social security authority or other Governmental Body under applicable Law.

 

(hh)         “Team-Related Know-how” means any Information associated with any member of the Team.

 

(ii)           “Third Party” means any Person not an Affiliate of the other referenced Person or Persons.

 

(jj)           “Transfer Tax” means any sales, use, stamp, registration, documentary, filing, recording, transfer, value added or similar fees or Taxes (including all applicable real estate transfer Taxes).

 

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The parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

	
MAST CAPITAL   MANAGEMENT, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ David J. Steinberg
    	
 
    
	
Name:
    	
David J. Steinberg
    	
 
    
	
Title:
    	
Managing Member
    	
 
    
	
 
    	
 
    	
 
    
	
GECC GP   CORP.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Peter A. Reed
    	
 
    
	
Name:
    	
Peter A. Reed
    	
 
    
	
Title:
    	
President
    	
 
    

 

19

 

Exhibit A

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Assignment and Assumption Agreement (the “Agreement”), effective as of November 3, 2016 (the “Effective Date”), is by and between MAST Capital Management, LLC, a Delaware limited liability company (“Seller”), and GECC GP Corp., a Delaware corporation (“Buyer”).

 

WHEREAS, Seller and Buyer have entered into a certain Asset Purchase Agreement, dated as of November 3, 2016 (the “Purchase Agreement”), pursuant to which, among other things, Seller has agreed to assign all of its rights, title and interests in, and Buyer has agreed to assume all of Seller’s duties and obligations under, the Assigned Contracts and the other Purchased Assets.

 

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                                      Definitions. All capitalized terms used in this Agreement but not otherwise defined herein are given the meanings set forth in the Purchase Agreement.

 

2.                                      Assignment and Assumption. Seller hereby sells, assigns, grants, conveys and transfers to Buyer all of Seller’s right, title and interest in and to the Assigned Contracts and the other Purchased Assets.  Buyer hereby accepts such assignment and assumes all of Seller’s duties and obligations under the Assigned Contracts and the other Purchased Assets, including, without limitation, the Assumed Liabilities, and agrees to pay, perform and discharge, as and when due, all of the obligations of Seller under the Assigned Contracts and the other Purchased Assets (including, without limitation, the Assumed Liabilities) accruing after the Effective Date.

 

3.                                      Terms of the Purchase Agreement. The terms of the Purchase Agreement, including, but not limited to, the representations, warranties, covenants, agreements and indemnities relating to the Assigned Contracts and the other Purchased Assets are incorporated herein by this reference.  The parties hereto acknowledge and agree that the representations, warranties, covenants, agreements and indemnities contained in the Purchase Agreement shall not be superseded hereby but shall remain in full force and effect to the full extent provided therein.  In the event of any conflict or inconsistency between the terms of the Purchase Agreement and the terms hereof, the terms of the Purchase Agreement shall govern.

 

4.                                      Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).

 

5.                                      Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Agreement delivered by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

The parties hereto have executed this Agreement to be effective as of the date first above written.

 

	
MAST CAPITAL   MANAGEMENT, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

 

	
GECC GP   CORP.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:

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