Document:

Employment Agreement Between Registrant and Patrick Schwartz

 Exhibit 10.16 
 EMPLOYMENT AGREEMENT 
 By and Between 
 RASER TECHNOLOGIES OPERATING COMPANY, INC. 
 And 
 Patrick J. Schwartz 
 June 27, 2006 

 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this “Agreement”) is made and entered into as of the 27th day of June 2006 (the “Effective Date”) by and
between Raser Technologies Operating Company, Inc. (the “Company”) and Patrick J. Schwartz (“Employee”). For purposes of this Agreement, the Company and Employee are sometimes collectively referred to as the “Parties.”

 RECITALS 
 This
Agreement is entered into with reference to the following facts and mutual objectives: 
 A. Employee’s services are deemed to be of
value to the Company. 
 TERMS AND CONDITIONS OF AGREEMENT 
 NOW THEREFORE, in consideration of the foregoing, and the covenants, conditions, and promises set forth in this Agreement, the Parties agree as follows:

 1. Employment and Position 
 The Company employs Employee, and Employee accepts employment by the Company as, President of the Company for the period of employment specified in Section 3 hereinbelow (“Period of Employment”). 
 2. Services To Be Rendered 
 The
Employee shall, during the Period of Employment, serve the Company in the position set forth in Section 1 hereinabove diligently and competently. During the Period of Employment, Employee shall be free to conduct personal business and
investment activities provided that such activities do not conflict or interfere with the performance of Employee’s duties under this Agreement. In discharging his duties under this Agreement, Employee shall act in the best interests of the
Company. In fulfilling his duties and responsibilities under this Agreement, Employee shall report to the CEO of the Company. 
  

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 3. Period of Employment 
 Employee’s employment by the Company pursuant to this Agreement shall commence on the Effective Date and continue, unless terminated sooner pursuant
to the provisions of this Agreement, for a period of one (1) year from the Effective Date (“Period of Employment”). 
 4.
Base Salary 
 At the commencement of the Period of Employment, Employee shall be paid an annual base salary in an amount that shall be
not less than $185,000 (“Base Salary”). Base Salary shall be paid in accordance with the Company’s standard payroll practices. 
 5. Incentive Bonus 
 The Board of Directors and its compensation committee shall determine any incentive bonus guidelines
during the Period of Employment. Employee shall be entitled to receive a bonus pursuant to the Company’s bonus plan, and to participate in a deferred compensation plan that may be in effect at the Company from time to time. It is anticipated
that any bonus plan for Employee shall depend upon the Company’s income performance as well as general performance evaluations. 
 6.
Expense Reimbursement 
 Employee shall be entitled to prompt and full reimbursement from the Company for reasonable expenses incurred by
Employee in performing services for the Company. Employee shall be required to provide proof and documentation of such expenditures as required by the Company. 
 7. Stock Options 
 Employee shall also be eligible to receive additional Company stock options during
the Period of Employment, pursuant to a Company stock options bonus plan that may, as from time to time, be in effect. Annual awards, if any, shall take into account the original grant amounts as awarded in Section 15. 
 8. Other Benefits 
 In addition to the
benefits previously set forth in this Agreement, Employee shall, during the Period of Employment, be entitled to the benefits described below, and, as concerns all such benefit programs where years of service are a factor, Employee shall, to the
extent permitted by law, be given full credit for his years of service with the Company prior to the implementation of any benefit program, whether in his capacity as a director, officer, or otherwise: 
 (a) Vacation. During the Period of Employment, Employee shall be entitled to not less than four (4) weeks of paid vacation
during each calendar year during the Period of Employment. Employee shall be paid the cash amount of the unused portion of accrued salary attributable to any unused vacation time on each annual anniversary date of this Agreement. 
  

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 (b) Insurance. Employee shall be entitled to participate in the group insurance
program of the Company as concerns life, disability, medical, dental, vision, or employee assistance insurance made available to other employees as the same may be implemented, changed, modified, or terminated for all participants from time to time.
To the extent that such insurance benefits or programs are offered to employees by the Company, the Company shall pay the same premiums for such coverage for Employee. 
 (c) Retirement Plan. The Employee shall be entitled to participate in the Company’s retirement plans in accordance with the
terms and conditions of such plans and applicable law, as the same may be implemented, changed, or terminated from time to time. Employee shall become eligible to participate in the Company’s retirement plans as of the Effective Date or the
date of implementation of such plans, whichever is later. 
 (d) Other Miscellaneous Benefits. The Company shall pay or
reimburse Employee for the following miscellaneous benefits: 
 (i) Annual dues for association membership for relevant
professional groups; and 
 (ii) Subscriptions and purchase of books, journals, publications, and other materials that relate
to Employee’s job duties and responsibilities. 
 9. Term of Employment 
 (a) Term. The Company hereby agrees to continue the Employee in its employ, and the Employee hereby agrees to remain in the employ
of the Company, in accordance with the terms and provisions of Section 3 of this Agreement, for the Period of Employment, thus terminating on the anniversary of the Effective Date of this Agreement. 
  

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 (b) During the Period of Employment. The Employee’s position, authority,
duties, and responsibilities shall be commensurate in all material respects with those held and exercised as of the Effective Date. 
 (c) Location. The Employee’s services shall be performed at the location where the Employee was employed on the Effective Date, or at any office which is the headquarters of the Company, provided that such headquarters are
located in the Salt Lake City/Provo, Utah metropolitan area. 
 10. Termination of Agreement 
 (a) Termination of the Employment by Employer. After the one year anniversary of this Agreement, the Employee’s employment
shall be at will, meaning that either the Company or the Employee shall be entitled to terminate this Agreement at any time, for any reason, with or without cause. The Company shall have the following rights with respect to termination of
Employee’s employment. 
 (i) Cause. Employee’s employment may be terminated for Cause. For purpose of this
Agreement, “Cause” shall mean and refer to a determination made in good faith by the Company’s Board of Directors that: 
 (1) Employee has been convicted of, or has entered into a plea of guilty or nolo contendere to, a felony punishable by incarceration for a period of one (1) year or longer; 
 (2) Employee has been convicted of committing a theft, embezzlement, or other criminal misappropriation of funds from the Company; or

 (3) Employee has willfully failed or refused to follow reasonable and lawful written policies or directives established by
the Board of Directors of the Company, or Employee has willfully failed to attend to material duties or obligations of Employee’s office (other than any such failure resulting from Employee’s incapacity due to physical or mental illness,
which is the cause or manifestation of Employee’s disability), which failure or refusal continues for thirty (30) days following delivery of a written demand from the Company’s Board of Directors for performance to Employee
identifying the manner in which Employee has failed to follow such policy or directives or to perform such duties. 
 (ii)
Effect Date of Termination. Termination pursuant to this Section shall be effective as of the date of written notice by the Board of Directors to Employee that it has made the required determination, or at such other subsequent date, if any
specified in such notice. 
 (b) Termination by Employee. Employee shall have the right to terminate his 
  

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 employment under this Agreement at any time for Good Reason, provided Employee has delivered written
notice to the Company which briefly describes the facts underlying Employee’s belief that “Good Reason” exists and the Company has failed to cure such situation within thirty (30) days after effective date of such notice.

 (i) With Good Reason. For purposes of this Agreement, “Good Reason” shall mean and consist of: 

(1) A material breach by the Company of its obligations under this Agreement; 
 (2) The assignment to Employee of duties that are materially inconsistent with, or that constitute a material alteration in the status of
his responsibilities set forth in this Agreement, as an employee of the Company; 
 (3) Without Employee’s prior written
consent, the transfer or relocation of Employee’s place of employment to any place other than the Salt Lake City/Provo, Utah metropolitan area, except for reasonable travel on the business of the Company; or 
 (4) Upon the consummation of a sale of all or a substantial portion of the assets of the Company not in the usual regular course of the
business of the Company in which sale the acquiring company did not assume all the obligations of the Company under this Agreement, or a change in control of the ownership or management of the Company. 
 11. Confidential Information 
 The
Employee shall hold in confidence for the benefit of the Company all secret or confidential information, knowledge, or data relating to the Company or any of its affiliated companies and their respective businesses, which have been obtained by the
Employee during the Employee’s employment by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts of the Employee or representatives of the Employee in violation of this
Agreement). After termination of the Employee’s employment with the Company, the Employee shall not, without prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such
information, knowledge, or data to anyone other than the Company and those designated by the Company. In no event, however, shall an asserted violation of the provisions of this Section constitute a basis for deferring or withholding any amounts
otherwise payable to the Employee under the provisions of this Agreement. 
 12. Inventions 
 (a) Assignment. Without further consideration, the Employee shall fully and promptly report to the Company all ideas, concepts,
inventions, discoveries, formulas, 
  

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 and designs conceived or produced by the Employee at any time during the Period of Employment relating to
the Company’s trade or business, whether patentable or unpatentable (collectively, “Inventions”), and shall assign and hereby does assign to the Company or its nominee the Employee’s entire right, title, and interest in and to
all such Inventions. 
 (b) Cooperation. Employee shall take all reasonable action requested by the Company to protect
or obtain title to any and all United States and/or foreign patents on any Inventions, including execution and delivery of all applications, assignments, and other documents deemed necessary or desirable by the Company, provided that the Company
shall reimburse the Employee for all expenses incurred by the Employee in connection with such execution and delivery. 
 13.
Non-Competition after Termination 
 (a) Acknowledgment. Employee acknowledges that his services and
responsibilities are of a particular significance to the Company, and that his position with the Company does and will continue to give him an intimate knowledge of its business. Because of this, it is important to the Company that the Employee be
restricted from the competing with the Company in the event of the termination of his employment. 
 (b) Agreement.
Employee agrees that, in addition to any other limitations, for a period of two (2) years after the termination of his employment under this Agreement, Employee will not directly compete with the Company or its business within the continental
United States of America. 
 14. Severance Pay 
 Upon six months of services, if Employee does not continue in the employ of the Company after the termination of this Agreement, whether or not the Employee is offered or continues employment by the Company, Company
shall pay to Employee, no later than thirty (30) days after termination, the sum of six months salary and Employee shall not be required to mitigate the amount of the payment provided for in this section by seeking other employment or
otherwise; nor shall the amount of the severance payment be reduced by any compensation earned by the Employee as a result of the employment by another employer after termination or otherwise. 
 15. Vesting of Stock Options 
 Employee is receiving stock options exercisable for 250,000 shares of the Company’s common stock in connection with the execution of this Agreement. Stock options exercisable for 25,000 shares of the Company’s common stock shall
vest immediately. The remaining stock options shall vest over a four year period. Stock options exercisable for 45,000 shares of the Company’s common stock shall be vested on a monthly pro rata basis for the first year of this Agreement. On
each of the first four anniversary dates of this Agreement, stock options exercisable for 45,000 shares of the Company’s stock shall vest. The sale of the common stock 
  

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 issuable upon exercise of stock option will be registered during the term of the options under the Securities Act of
1933, as amended, on a Form S-8 or other appropriate form of registration statement. 
 16. Indemnification 
 The Company shall release, indemnify, defend, and hold harmless Employee with respect to any and all losses, claims, actions, or suits of any kind,
nature, or description, whether before a trial or appellate court, or in an administrative, arbitration, or alternative dispute resolution proceeding, relating to, arising from, or in any way connected with the Employee’s acts or omissions as a
director, officer, employee, or agent of the Company. Employee shall be permitted to select independent defense counsel of his own choosing, and such counsel shall promptly be reimbursed by the Company for all reasonable fees, expenses, and costs
incurred in the defense of Employee. In addition to the foregoing, the Company shall at all times maintain appropriate insurance coverage to protect Employee’s interests as a director, officer, employee, or agent of the Company. 
 17. Notice 
 Any notice or other
communication required or permitted to be given to the Parties under this Agreement shall be deemed to have been given when received, addressed as follows (or at such other address as the party addressed may have substituted by notice pursuant to
this Section): 
  

	 	(a)	If to the Company: 

 Raser
Technologies, Inc. 
 5152 North Edgewood Drive 
 Suite 375 
 Provo, Utah 84604 
 Attn: Chief Financial Officer 
  

	 	(b)	If to Employee: 

 Patrick J.
Schwartz 
 1097 E. 1500 S. 
 Bountiful, Utah 84010 
 18. Governing Law 
 This Agreement shall in all respects be interpreted, construed, and governed by and in accordance with the laws of the State of Utah. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date 
  

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	Raser Technologies Operating Company, Inc.
		
	By:	 	  
	Signature
	Name:	 	Brent M. Cook
	Its:	 	Chief Executive Officer
	
	Patrick J. Schwartz
	
	  
	Signature

  

 - 9 -First Supplemental Indenture, dated as of June 27, 2006

 Exhibit 4.1 
 FIRST SUPPLEMENTAL INDENTURE 
 (as to 6.250% Senior Notes due 2008, 6.250% Senior Notes due 2010, 7.375%
Senior Notes due 2013, 
 7.125% Senior Notes due 2015) 
 FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of June 27, 2006, between Cendant Corporation, a Delaware corporation (the
“Company”), and The Bank of Nova Scotia Trust Company of New York, as trustee under the Indenture referred to below (the “Trustee”). 
 W I T N E S S E T H 
 WHEREAS, the Company has heretofore executed and delivered to the Trustee an
indenture, dated as of January 13, 2003 (the “Indenture”), pursuant to which the Company has $800,000,000 aggregate principal amount of 6.250% Senior Notes due 2008 (the “2008 Notes”) outstanding, $350,000,000
aggregate principal amount of 6.250% Senior Notes due 2010 (the “2010 Notes”) outstanding, $1,200,000,000 aggregate principal amount of 7.375% Senior Notes due 2013 (the “2013 Notes”) outstanding and $250,000,000
aggregate principal amount of 7.125% Senior Notes due 2015 (the “2015 Notes,” and together with the 2008 Notes, the 2010 Notes and the 2013 Notes, the “Notes”) outstanding; 
 WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company to authorize and approve the amendments to
the Indenture (the “Proposed Amendments”) set forth in this Supplemental Indenture; 
 WHEREAS, Section 9.02 of the
Indenture provides that the Company and the Trustee may amend the Indenture as to a series of notes with the written consent of the Holders of a majority in principal amount of the then outstanding notes of such series (the “Requisite
Consent”); 
 WHEREAS, this Supplemental Indenture and the Proposed Amendments contemplated herein shall apply to the Notes;

 WHEREAS, the Company has distributed Offers to Purchase and Consent Solicitations Statements, dated June 14, 2006, (the
“Solicitation Statement”), and related Consent and Letter of Transmittal, dated as of June 14, 2006, to the Holders of the Notes in connection with the Proposed Amendments as described in the Solicitation Statement; 

WHEREAS, the Company and the Trustee have received the Requisite Consent to the Proposed Amendments to the provisions of the Indenture from Holders of
each of the 2008 Notes, the 2010 Notes, the 2013 Notes and the 2015 Notes, and all other conditions precedent, if any, provided for in the Indenture relating to the execution of this Supplemental Indenture have been complied with as of the date
hereof; and 
 WHEREAS, the execution and delivery of this Supplemental Indenture have been duly authorized by the Company and all conditions
and requirements necessary to make this instrument a valid and binding agreement have been duly performed and complied with. 
 NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree, for the equal and ratable benefit of the Holders of the
Notes, as follows: 
 1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture. 

 2. AMENDMENTS TO THE DEFINITIONS
IN THE INDENTURE AND THE NOTES. Any definitions used exclusively in the provisions of the Indenture or the Notes that are deleted as described in the
Solicitation Statement, and any definitions used exclusively within such definitions, are hereby deleted in their entirety from the Indenture and the Notes, and all references in the Indenture and the Notes to paragraphs, Sections, Articles or other
terms or provisions of the Indenture that have been otherwise deleted pursuant to this Supplemental Indenture are hereby deleted in their entirety or revised to conform herewith, solely as they relate to the Notes. 
 3. AMENDMENTS TO ARTICLE V – REMEDIES. Section 5.01 of the Indenture is hereby
amended by deleting clauses (4) and (7) thereof. 
 4. AMENDMENTS TO ARTICLE VII
– HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY. The following Section of the Indenture and any corresponding
provisions in the Notes, is hereby deleted in its entirety and replaced with “Intentionally Omitted.”: 
  

					
	 Existing Section Number
	    	 Caption
	  	 
	Section 7.03	    	REPORTS BY COMPANY	  	

 5. AMENDMENTS TO ARTICLE VIII –
MERGER, CONSOLIDATION AND SALE OF ASSETS. The following Sections of the Indenture and any corresponding provisions in the Notes, are hereby deleted in their
entirety and replaced with “Intentionally Omitted.”: 
  

					
	 Existing Section Number
	    	 Caption
	  	 
	 Section 8.01
	    	COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN
TERMS
	 Section 8.02
	    	SUCCESSOR PERSON SUBSTITUTED	  	

 6. AMENDMENTS TO ARTICLE X –
COVENANTS. The following Sections of the Indenture and any corresponding provisions in the Notes, are hereby deleted in their entirety and replaced with “Intentionally Omitted.”: 
  

					
	 Existing Section Number
	    	 Caption
	  	 
	 Section 10.04
	    	STATEMENT AS TO COMPLIANCE	  	
	 Section 10.06
	    	PAYMENT OF TAXES AND OTHER CLAIMS
	 Section 10.07
	    	CORPORATE EXISTENCE	  	

 7. GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL
GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 8. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all
of them together represent the same agreement. 
 9. EFFECT OF HEADINGS. The Section headings
herein are for convenience only and shall not affect the construction hereof. 
 10. THE TRUSTEE. The Trustee
shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Company. The
Trustee accepts the trusts created by the Indenture, as amended and supplemented by this Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as amended and supplemented by this Supplemental
Indenture. 
  

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 11. RATIFICATION OF INDENTURE; SUPPLEMENTAL
PART OF INDENTURE. Except as specifically amended and supplemented by this Supplemental Indenture, the Indenture shall remain in full force and effect and is hereby ratified and confirmed. This
Supplemental Indenture shall form a part of the Indenture with respect to the Notes for all purposes, and every holder of 2008 Notes, 2010 Notes, 2013 Notes and 2016 Notes heretofore or hereafter authenticated and delivered shall be bound hereby.
This Supplemental Indenture shall become effective as of the date hereof at such time as executed counterparts of this Supplemental Indenture have been delivered by each party hereto to the other party hereto; provided, however, that no provision of
this Supplemental Indenture shall be effective or binding on the parties hereto unless (i) such provision complies with the Trust Indenture Act and (ii) Holders of the requisite principal amount of each of the 2008 Notes, 2010 Notes, 2013
Notes and 2016 Notes have provided consents (and not thereafter validly revoked such consent) to such provision on or prior to the date hereof. Notwithstanding an earlier execution date, the provisions of this Supplemental Indenture shall become
operative at the time and date upon which the Company notifies the depositary for the Notes, The Bank of Nova Scotia Trust Company of New York, that the Notes are accepted for purchase pursuant to the Solicitation Statement. The Company shall
promptly notify the Trustee that it has accepted for purchase the Notes, however failure to notify the Trustee shall not affect whether or not this Supplemental Indenture is operative. 
 12. VALIDITY; ENFORCEABILITY. In case any provisions in this Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 13. THIRD-PARTY BENEFICIARY. Nothing in this Supplemental Indenture, express or implied, shall give to any Person, other than the parties hereto and their successors under the Indenture and the
Holders of the Notes, any benefit or any legal or equitable right, remedy or claim under the Indenture. 
 [SIGNATURE PAGE FOLLOWS]

  

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 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed
and attested, all as of the date first written above. 
  

			
	CENDANT CORPORATION
		
	By:	 	 /s/ DAVID B. WYSHNER

	Name:	 	David B. Wyshner
	Title:	 	Executive Vice President and Treasurer
	
	THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW
YORK, AS TRUSTEE
		
	By:	 	 /s/ JOHN F. NEYLAN

	Name:	 	John F. Neylan
	Title:	 	Trust Officer

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