Document:

OUTSIDE DIRECTOR

Restricted Stock Award

Granted by

NORTHWEST BANCSHARES, INC.

under the

NORTHWEST BANCSHARES, INC.

2011 EQUITY INCENTIVE PLAN

This restricted stock agreement (“Restricted Stock Award” or “Agreement”) is and shall be subject in every respect to the provisions of the 2011 Equity Incentive Plan (the “Plan”) of Northwest Bancshares, Inc. (the “Company”) which is incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided to each person granted a Restricted Stock Award pursuant to the Plan.  The holder of this Restricted Stock Award (the “Participant”) hereby accepts this Restricted Stock Award, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and this Agreement by the Committee appointed to administer the Plan (“Committee”) or the Board shall be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Except where the context otherwise requires, the term “Company” shall include the parent and all present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).  Capitalized terms used herein but not defined shall have the same meaning as in the Plan.

 

	
1. 

	
Name of Participant:                                                                                                                                   

 

	
2. 

	
Date of Grant:                                                                                                                                              

 

	
3.

	
Total number of shares of Company common stock covered by the Restricted Stock Award:                                                                                                     

(subject to adjustment pursuant to Section 9 below).

 

	
4.

	
Vesting Schedule.  Except as otherwise provided in this Agreement, this Restricted Stock Award becomes earned in accordance with the vesting schedule set forth below.

 

	
Date

	 	
Vested Portion of Award

	 
	  	 	 	 
	  	 	10%	 
	  	 	20%	 
	  	 	30%	 
	  	 	40%	 
	  	 	50%	 
	  	 	60%	 
	  	 	70%	 
	  	 	80%	 
	  	 	90%	 
	  	 	100%	 

  

  

  

5.           Grant of Restricted Stock Award.

The Restricted Stock Award shall be in the form of issued and outstanding shares of Stock that shall be registered in the name of the Participant and held by the Company, together with a stock power executed by the Participant in favor of the Company (if the Company so requests), pending the satisfaction of the conditions to which the Restricted Stock Award is subject.

 

The shares of common stock awarded under this Restricted Stock Award may be issued in certificate form or in electronic form, at the discretion of the Company.  If the shares are certificated, the Participant shall receive a certificate or certificates representing the shares of Restricted Stock that have been awarded to them.  The certificates evidencing the Restricted Stock Award shall bear a legend restricting the transferability of the Restricted Stock.  The Restricted Stock awarded to the Participant shall not be sold, encumbered hypothecated or otherwise transferred except in accordance with the terms of the Agreement, until such Restricted Stock has vested.

 

	
6.

	
Voting and Dividends.

 

	
  

	
The Participant shall have the right to vote the shares of Restricted Stock awarded hereunder.  Any dividends or distributions declared and paid with respect to shares of Stock subject to the Restricted Stock Award, other than a stock dividend consisting of shares of Stock, will be distributed to the Participant.

 

	
7.

	
Delivery of Shares and Share Holding Requirement.

 

	
  

	
Delivery of shares of Stock under this Restricted Stock Award shall be subject to the following:

 

	
  

	
(i)

	
Delivery of shares of Stock shall comply with all applicable laws (including, the requirements of the Securities Act), and the applicable requirements of any securities exchange or similar entity.

	
  

	
(ii)

	
The issuance of shares of Stock pursuant to this Restricted Stock Award may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange.

	
8. 

	
Change in Control.

	
  

	
(i)

	
In the event of an Involuntary Termination of Service following a Change in Control, all Restricted Stock Awards held by the Participant shall be fully earned and vested immediately.

  

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(ii)

	
A “Change in Control” shall be deemed to have occurred as provided in Section 4.2 of the Plan.

	
9. 

	
Adjustment Provisions.

 

	
  

	
This Restricted Stock Award, including the number of shares subject to the Restricted Stock Award, shall be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of, Section 3.3 of the Plan.

 

	
10. 

	
Effect of Termination of Service on Restricted Stock Award.

 

This Restricted Stock Award shall vest as follows under the stated circumstances:

 

	
  

	
(i)

	
Death.  This Restricted Stock Award shall vest immediately in the event of the Participant’s Termination of Service by reason of the Participant’s death.

 

	
  

	
(ii)

	
Disability.  This Restricted Stock Award shall vest immediately in the event of the Participant’s Termination of Service by reason of Disability. Except to the extent prohibited by Code Section 409A, the Committee shall have sole authority and discretion to determine whether the Participant’s Service has been terminated by reason of Disability.

 

	
  

	
(iii)

	
Retirement.  This Restricted Stock Award shall vest immediately in the event of the Participant’s Termination of Service by reason of Retirement.  For purposes of this Award, Retirement means voluntary termination as a Director on or after attainment of age 72.

 

	
  

	
(iv)

	
Termination for Cause.  If the Participant’s Service has been terminated for Cause, this Restricted Stock Award shall immediately terminate and be of no further force and effect.  The Board of Directors shall have sole authority and discretion to determine whether the Participant’s Service has been terminated for Cause.

 

	
  

	
(v)

	
Other Termination.  If the Participant’s Service terminates for any reason other than death, Disability, Retirement or for Cause, all shares of  Restricted Stock awarded to the Participant which have not vested shall be forfeited by such Participant.

 

	
11. 

	
Miscellaneous.

 

	
  

	
(i)

	
No Restricted Stock Award shall confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

 

  

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(ii)

	
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

 

	
  

	
(iii)

	
Restricted Stock Awards are not transferable prior to the time such Awards vest in the Participant.

 

	
  

	
(iv)

	
This Restricted Stock Award is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be obligated to issue any shares of stock hereunder if the issuance of such shares would constitute a violation of any such law, regulation or order or any provision thereof.

 

[Signature Page Follows]

  

4

  

IN WITNESS WHEREOF, the Company has caused this instrument to be executed in its name and on its behalf as of the date of grant of this Restricted Stock Award set forth above.

 

	  	
NORTHWEST BANCSHARES, INC.

	  	  	  
	  	
By:

	  

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing Restricted Stock Award and agrees to the terms and conditions hereof, including the terms and provisions of the 2011 Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2011 Equity Incentive Plan.

 

	  	
Participant

	  	  
	  	  

  

5

  

 

EXHIBIT A

 

ACKNOWLEDGMENT OF RECEIPT OF EARNED SHARES

 

I hereby acknowledge the delivery to me by Northwest Bancshares, Inc. (the “Company”) or its affiliate on _____________________________, of stock certificates for ____________________ shares of common stock of the Company earned by me pursuant to the terms and conditions of the Restricted Stock Agreement and the Northwest Bancshares, Inc. 2011 Equity Incentive Plan,  which shares were transferred to me on the Company’s stock record books on ____________________.

	
Date:

	  	  	  	  
	  	
Participant’s signature

  

6THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

 

Sonora Resources Corp.

 

CONVERTIBLE DEMAND PROMISSORY NOTE

 

	
May 19, 2011

	
$200,000

 

Sonora Resources Corp., a Nevada corporation (the “Company”), for value received, promises to pay to the order of Coventry Capital LLC (the “Holder”), upon demand the principal sum of Two Hundred Thousand Dollars ($200,000) (“Principal”), plus accrued interest, pursuant to the terms and conditions set forth herein.

 

The following is a statement of the rights of the Holder and the conditions to which this Note is subject, and to which the Holder, by the acceptance of this Note, agrees:

 

1.           Definitions.  As used in this Convertible Demand Promissory Note (“Note”), the following terms, unless the context otherwise requires, have the following meanings:

 

1.1           “Company” will mean Sonora Resources Corp. and will include any corporation, partnership, limited liability company or other entity that will succeed to or assume the obligations of the Company under this Note.

 

1.2           “Holder” will mean any person who will at the time be the registered holder of this Note.

 

2.           Issuance of Principal, Interest & Conversion.

 

2.1           The unpaid Principal of this Note shall bear interest at the rate of Ten percent (10%) per annum, simple interest.  Interest on this Note shall be computed on the basis of a three hundred sixty-five (365) day year and actual days elapsed.

 

2.2           The unpaid Principal of this Note and any accrued and unpaid interest thereon (“Debt”) shall be immediately due and payable by the Company upon the earlier of (i) written demand by the Holder at any time, or (ii) May 19, 2013 (the “Maturity Date”).  The Holder may convert the Debt, in whole but not in part, into shares of the Company’s common stock at a price of Twenty-Five Cents ($0.25) per share (“Conversion Price”) at anytime on or before the Maturity Date.  The Company may repay this Note in full at any time without penalty or premium.

 

2.3           In the event of conversion, the Holder will surrender the original of this Note for conversion at the principal office of the Company at the time of such conversion.  Holder agrees to execute all necessary documents in connection with the conversion of this Note, including a definitive stock purchase agreement.  If upon such conversion of this Note a fraction of a share would result, then the Company will round up to the nearest whole share.

 

  

  

  

3.           Issuance of Consideration on Conversion.  As soon as practicable after receipt of the original Note and related documents for conversion pursuant to Section 2, but in no event later than five (5) business days therefrom, the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, a certificate or certificates for the number of shares of common stock to which the Holder will be entitled on such conversion (bearing such legends as may be required by applicable state and federal securities laws in the opinion of legal counsel for the Company), together with any other securities and property, if any, to which the Holder is entitled on such conversion under the terms of this Note.

 

4.           Adjustment Provisions.  The number and character of shares of common stock issuable upon conversion of this Note and the Conversion Price therefor, are subject to adjustment upon occurrence of the following events:

 

4.1          Adjustment for Stock Splits, Stock Dividends, Recapitalizations, etc.  The Conversion Price of this Note and the number of shares of common stock issuable upon conversion of this Note shall each be proportionally adjusted to reflect any stock dividend, stock split, reverse stock split, reclassification, recapitalization or other similar event affecting the number of outstanding shares of common stock.

 

4.2          Adjustment for Reorganization, Consolidation, Merger.  In the event (a) of any reorganization of the Company, (b) the Company consolidates with or merges into another entity, (c) the Company sells all or substantially all of its assets to another entity and then distributes the proceeds to its shareholders, or (d) the Company issues or otherwise sells securities representing more than 50% of the voting power of the Company in a single transaction or series of related transactions immediately after giving effect to such transaction or series of related transaction (each of such events shall be referred to herein as a “Liquidation Event”), then, and in each such case, the Holder, upon the conversion of this Note at any time after the consummation of any Liquidation Event, shall be entitled to receive, in lieu of the common stock or other securities and property receivable upon the conversion of this Note prior to such consummation, the stock or other securities or property to which the Holder would have been entitled upon the consummation of such Liquidation Event if the Holder had converted this Note immediately prior thereto, all subject to further adjustment as provided in this Note, and the successor or purchasing entity in a Liquidation Event (if other than the Company) shall duly execute and deliver to the Holder a supplement hereto acknowledging such entity’s obligations under this Note.

 

4.3          No Change Necessary.  The form of this Note need not be changed because of any adjustment in the Conversion Price or in the number of shares of common stock issuable upon its conversion.

 

5.           Representations and Acknowledgments of the Holder.  The Holder hereby represents, warrants, acknowledges and agrees that:

 

5.1          Investment.  The Holder is acquiring this Note and the securities issuable upon conversion of this Note (together, the “Securities”) for the Holder’s own account, and not directly or indirectly for the account of any other person.  The Holder is acquiring the Securities for investment and not with a view to distribution or resale thereof except in compliance with Securities Act of 1933 (the “Act”) and any applicable state law regulating securities.

 

5.2          Access to Information.  The Holder has had the opportunity to ask questions of, and to receive answers from, appropriate executive officers of the Company with respect to the terms and conditions of the transactions contemplated hereby and with respect to the business, affairs, financial condition and results of operations of the Company.  The Holder has had access to such financial and other information as is necessary in order for the Holder to make a fully informed decision as to investment in the Company, and has had the opportunity to obtain any additional information necessary to verify any of such information to which the Holder has had access.

 

  

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5.3          Accredited Investor.  The Holder is an “accredited investor” within the meaning of Regulation D of the rules and regulations promulgated under the Act and has such business or financial expertise as to be able to protect the Holder’s own interests in connection with the purchase of the Securities.

 

5.4          Speculative Investment.  The Holder’s investment in the Company represented by the Securities is highly speculative in nature and is subject to a high degree of risk of loss in whole or in part; the amount of such investment is within the Holder’s risk capital means and is not so great in relation to the Holder’s total financial resources as would jeopardize the financial condition of the Holder in the event such investment were lost in whole or in part.

 

5.5          Unregistered Securities.

 

(a)           The Holder must bear the economic risk of investment for an indefinite period of time because the Securities have not been registered under the Act and therefore cannot and will not be sold unless they are subsequently registered under the Act or an exemption from such registration is available.  The Company has made no representations, warranties or covenants whatsoever as to whether any exemption from the Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 under the Act will become available.

 

(b)           Transfer of the Securities has not been registered or qualified under any applicable state law regulating securities and therefore the Securities cannot and will not be sold unless they are subsequently registered or qualified under any such state law or an exemption therefrom is available.  The Company has made no representations, warranties or covenants whatsoever as to whether any exemption from any such state law is or will become available.

 

6.           Miscellaneous.

 

6.1          Waiver and Amendment.  Any provision of this Note may be amended, waived or modified only upon the written consent of the Company and the Holder.

 

6.2          Restrictions on Transfer.  This Note may only be transferred in compliance with applicable state and federal laws.  All rights and obligations of the Company and the Holder will be binding upon and benefit the successors, assigns, heirs, and administrators of the parties.

 

6.3          Company Representation.  The Company represents to the Holder that the Company is a corporation duly organized, validly existing, authorized to exercise all its corporate powers, rights and privileges, and in good standing in the State of Nevada and has the corporate power and corporate authority to own and operate its properties and to carry on its business as now conducted; all corporate action on the part of the Company, its officers, directors, and shareholders necessary for the authorization, execution, delivery, and performance of all obligations under this Note have been taken; this Note constitutes a legally binding and valid obligation of the Company enforceable in accordance with its terms, except to the extent that such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, arrangement, moratorium, fraudulent conveyance or other laws or court decisions relating to or affecting the rights of creditors generally, and such enforcement may be limited by equitable principles of general applicability.

 

  

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6.4          Governing Law.  This Note will be governed by the laws of the State of Nevada applicable to contracts between Nevada residents wholly to be performed in Nevada.

 

6.5          Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) or electronic mail; or (iii) one (1) trading day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.

 

[Signature Page Follows]

 

  

4

  

IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the date first above written.

 

	  	
Sonora Resources Corp.

	  	
a Nevada corporation

	  	  
	  	
By:

	  
	  	  	
Juan Miguel Ríos Gutiérrez

	  	  	
Chief Executive Officer

 

	
Agreed and Accepted by the Holder:

	 	  	  
	  	 	  	  
	
Coventry Capital LLC

	 	  	  
	  	 	  	  
	  	 	  	  
	
Name:

	  	 	  	  
	
Title:

	  	 	  	  

 

  

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