Document:

exv10w2

 

Exhibit 10.2

ADVANCED ENERGY INDUSTRIES, INC.

AMENDED AND RESTATED 2003 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

RESTRICTED STOCK UNIT AGREEMENT

     Advanced Energy Industries, Inc., a Delaware corporation (the “Company”), hereby grants
restricted stock units (“RSUs”) relating to shares of its common stock, $0.001 par value (the
“Stock”), to the individual named below as the Grantee. The terms and conditions of the grant are
set forth in this Agreement and in the Advanced Energy Industries, Inc. Amended and Restated 2003
Non-Employee Directors’ Stock Option Plan, as amended (the “Plan”). Capitalized terms used but not
defined in this Agreement have the meanings given to them in the Plan.

Grant Date:

Name of Grantee:

Grantee’s ID Number:

Number of RSUs Granted:

Vesting Schedule:

	 	 	 	 	 	 	 	 	 
	Vesting Date	 	Vesting Percentage	 	Shares
	1st anniversary of grant date
	 	 	25	%	 	 	 	 
	2nd anniversary of grant date
	 	 	25	%	 	 	 	 
	3rd anniversary of grant date
	 	 	25	%	 	 	 	 
	4th anniversary of grant date
	 	 	25	%	 	 	 	 

     By signing this cover sheet, you agree to all of the terms and conditions described in this
Agreement and in the Plan, a copy of which will be provided on request. You acknowledge that you
have carefully reviewed the Plan and agree that the Plan will control in the event any provision of
this Agreement should appear to be inconsistent with the terms of the Plan.

	 	 	 	 	 
	Grantee:
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	Company:
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	 

	 	Title: President and Chief Executive Officer     	 	 

Attachment

This is not a stock certificate or a negotiable instrument.

 

 

ADVANCED ENERGY INDUSTRIES, INC.

AMENDED AND RESTATED 2003 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

RESTRICTED STOCK UNITS AGREEMENT

	 	 	 	 	 
	Stock Unit Transferability	 	This grant is an award of restricted stock
units in the number set forth on the cover
sheet, subject to the vesting conditions
described below (“RSUs”). Your RSUs may not be
transferred, assigned, pledged or
hypothecated, whether by operation of law or
otherwise, nor may your RSUs be made subject
to execution, attachment or similar process.
	 
	 	 	 	 
	Vesting	 	Your RSUs shall vest according to the schedule
set forth on the cover sheet; provided, that,
you remain in Service on the relevant vesting
dates. If your Service terminates for any
reason, you will forfeit any RSUs in which you
have not yet become vested.
	 
	 	 	 	 
	Delivery of Stock Pursuant
to Units	 	A certificate for the shares of Stock
represented by your RSUs shall be delivered to
you upon vesting, unless you properly elect to
defer delivery of such Stock. If your Service
terminates for a reason other than for Cause
prior to such date, the Company will deliver
to you a certificate for the vested portion of
your RSUs represented by this Agreement. If
your Service terminates for Cause, you shall
forfeit of all of your RSUs.
	 
	 	 	 	 
	 	 	Notwithstanding the preceding paragraph:
	 
	 

	 	•
	 	If you are a “key employee” within the
meaning of Section 409A of the Code and
shares would otherwise be delivered to you on
account of your separation from
Service, then such shares shall not be
delivered to you until six months
after your separation from Service; and
	 
	 	 	 	 
	 

	 	•
	 	If the shares relating to the
vested RSUs would otherwise be
delivered during a period in which you
are (i) subject to a lock-up agreement
restricting your ability to sell
shares of Stock in the open market or
(ii) restricted from selling shares of
Stock in the open market because you
are not then eligible to sell
under the Company’s insider trading or
similar plan as then in effect (whether
because a trading window is not open
or you are otherwise restricted from
trading), delivery of the shares
related to the vested RSUs may be
delayed until no earlier than the
first date on which you are no longer
prohibited from selling shares of Stock due
to a lock-up agreement or insider trading plan
restriction, but in no event later than March 15 of the
year following the year in which you vested in the RSUs.

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	Deferral of Delivery of Stock	 	The American Jobs Creation Act of 2004 added
new Section 409A to the Internal Revenue
Code. Section 409A of the Internal Revenue
Code provides that deferred compensation
that is not structured to satisfy Section
409A may result in accelerated federal
income taxation, a 20% penalty tax applied
in addition to federal income tax otherwise
owed and, potentially, interest for any
underpayment of tax at the ordinary
underpayment rate plus one percentage point.
While the full impact of Section 409A on
awards granted under the plan is still
uncertain, RSUs that allow for deferral of
delivery of stock following vesting are
likely to be impacted. For this reason, the
Administrator may disallow or impose
restrictions on your ability to defer
delivery of your stock after vesting.
	 
	 	 	 	 
	Withholding Taxes	 	Withholding taxes are not applicable to
compensation paid to non-employee directors
at this time. Nonetheless, you agree, as a
condition of this grant, that you will make
acceptable arrangements to pay any
withholding or other taxes that may be due
as a result of vesting in RSUs or your
acquisition of Stock under this grant. In
the event that the Company determines that
any federal, state, local or foreign tax or
withholding payment is required relating to
your RSUs, the Company will have the right
to: (i) require that you arrange such
payments to the Company, (ii) withhold such
amounts from other payments due to you from
the Company or any Affiliate, or (iii) cause
an immediate forfeiture of shares of Stock
subject to the RSUs granted pursuant to this
Agreement in an amount equal to the
withholding or other taxes due.
	 
	 	 	 	 
	Retention Rights	 	This Agreement does not give you the right
to be retained or employed by the Company
(or any Affiliates) in any capacity.
	 
	 	 	 	 
	Shareholder Rights	 	You do not have any of the rights of a
shareholder with respect to the RSUs, unless
and until the Stock relating to the RSUs has
been delivered to you.
	 
	 	 	 	 
	Adjustments	 	In the event of a stock split, a stock
dividend or a similar change in the Company
stock, the number of RSUs covered by this
grant will be adjusted (and rounded down to
the nearest whole number) in accordance with
the terms of the Plan.

3

 

	 	 	 	 	 
	Applicable Law	 	This Agreement will be interpreted and
enforced under the laws of the State of
Colorado, other than any conflicts or
choice of law rule or principle that might
otherwise refer construction or
interpretation of this Agreement to the
substantive law of another jurisdiction.
	 
	 	 	 	 
	Consent to Electronic Delivery	 	The Company may choose to deliver certain
statutory materials relating to the Plan in
electronic form. By accepting this grant
you agree that the Company may deliver the
Plan prospectus and the Company’s annual
report to you in an electronic format. If
at any time you would prefer to receive
paper copies of these documents, as you are
entitled to receive, the Company would be
pleased to provide copies. Please contact
the Stock Plan Administrator to request
paper copies of these documents.
	 
	 	 	 	 
	The Plan	 	The text of the Plan is incorporated in
this Agreement by reference. This Agreement
and the Plan constitute the entire
understanding between you and the Company
regarding this grant of RSUs. Any prior
agreements, commitments or negotiations
concerning this grant are superseded. The
Plan will control in the event any
provision of this Agreement should appear
to be inconsistent with the terms of the
Plan.

          By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

4exv10w1

 

EXHIBIT 10.1

Fourth Amendment to Credit Agreement

        This FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Fourth Amendment”), dated as of August 7,
2006, is among AFFIRMATIVE INSURANCE HOLDINGS, INC., a Delaware corporation (“Borrower”), each
other Obligor, and THE FROST NATIONAL BANK, a national banking association, as Administrative
Agent, Lender and L/C Issuer.

RECITALS:

        Borrower, Administrative Agent, Lender and L/C Issuer have previously entered into the Credit
Agreement dated as of July 30, 2004 (such agreement, together with all amendments and restatements,
the “Credit Agreement”).

        Borrower has requested amendments to the Credit Agreement.

        Lender has agreed to amend the Credit Agreement, subject to the terms of this Fourth
Amendment.

AGREEMENT:

        NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the
parties hereto agree as follows:

ARTICLE I

Definitions

        1.1 Definitions. All capitalized terms not otherwise defined herein have the same
meanings as in the Credit Agreement.

ARTICLE II

Amendments to Credit Agreement

        2.1 Amendment to Section 1.1.

     (a) Section 1.1 is amended by adding the following in alphabetical order:

     “Revolving Facility Date” means July 30, 2008.

     (b) The definition of “Applicable Rate” is deleted in its entirety and the following is
substituted in lieu thereof:

     “Applicable Rate” means a per annum percentage equal to (a) with
respect to Loans, 1.50%, and (b) with respect to L/C Fees, 0.75%.

     (c) The definition of “L/C Facility Expiration Date” is amended by deleting “July 30,
2006” and substituting “July 30, 2008” in lieu thereof.

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     (d) The definition of “Term Facility Date” is deleted in its entirety and the following
is substituted in lieu thereof:

     “Term Facility Date” means August 7, 2006.

        (c) The definition of “Term Loan Maturity Date” is deleted in its entirety and the following
is substituted in lieu thereof:

     “Term Loan Maturity Date” means August 7, 2006.

        (d) The definition of “Termination Date” is deleted in its entirety and the following is
substituted in lieu thereof:

     “Termination Date” means July 30, 2011.

        2.2 Amendment to Section 2.1(a).

        Section 2.1(a) is deleted in its entirety and the following is substituted in lieu
thereof:

     (a) Revolving Loans. Subject to the terms and
conditions of this Agreement, each Lender severally agrees to make
loans (each such loan, a “Revolving Loan”), to Borrower from time to
time on any Business Day during the period from the Agreement Date
to the Revolving Facility Date, in an aggregate amount not to exceed
at any time outstanding such Lender’s Commitment; provided,
however, that after giving effect to any Revolving
Borrowing,

     (i) such Lender’s Pro Rata Share of the Outstanding
Amount shall not exceed such Lender’s Commitment, and

     (ii) the Outstanding Amount shall not exceed the
Aggregate Commitments.

Prior to the Revolving Facility Date, Borrower may borrow, repay and
reborrow Revolving Loans, all in accordance with this Agreement.

        2.3 Amendment to Section 2.3(a).

        Section 2.3(a) is deleted in its entirety and the following is substituted in lieu
thereof:

     (a) Revolving Loans. The principal amount of all
Revolving Loans shall be due and payable (i) on the following dates
and in the following amounts, and (ii) in full on the Revolving Loan
Maturity Date.

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	Payment Date	 	Payment Amount
	 
	 	 
	Each Payment Date on and after the
Revolving Facility Date

	 	An amount equal to 1/12th
of the aggregate unpaid principal
amount of all Revolving Loans on the
Revolving Facility Date
	 
	 	 
	The Revolving Loan Maturity Date

	 	The remaining unpaid principal of all
Revolving Loans

        2.4 Amendment to Section 6.2(b)(ii).

        Section 6.2(b)(ii) is amended by adding “(excluding the last fiscal quarter of each
fiscal year)” after the first “quarter”.

        2.5 Amendment to Section 7.4.

        Section 7.4 is amended by deleting “$110,000,000” and substituting “$195,000,000” in
lieu thereof.

        2.6 Amendment to Section 6.2(a)(v).

        Section 6.2(a)(v) is amended by deleting “90” and substituting “60” in lieu thereof.

        2.7 Amendment to Exhibit H (Compliance Certificate).

        Exhibit H is deleted in its entirety and a new Exhibit H, in the form of
Exhibit H hereto, is substituted in lieu thereof.

        2.8 Amendment to Schedule 2.1 (Commitments; Pro Rata Shares).

        Schedule 2.1 is deleted in its entirety and a new Schedule 2.1, in the form of
Schedule 2.1 hereto, is substituted in lieu thereof.

        2.9 Affirmative Insurance Company of Michigan. Borrower and each other Obligor
recognize and agree that Affirmative Insurance Company of Michigan, a Michigan insurance
corporation (“AICM”), is a RIC for purposes of the Loan Documents; provided, that, neither AICM nor
any Obligor may request, and L/C Issuer shall have no obligation to issue, any Letter of Credit for
the account of or that otherwise assures the performance of any obligation of AICM.

        2.10 Effectiveness. Subject to Article III, this Fourth Amendment shall be
effective as of July 30, 2006.

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ARTICLE III

Conditions Precedent

        3.1 Conditions. The effectiveness of this Fourth Amendment is subject to the
satisfaction of the following conditions precedent:

     (a) Documents. Administrative Agent shall have received all of the following,
each dated (unless otherwise indicated) the date of this Fourth Amendment, and the following
shall have occurred, in form and substance satisfactory to Administrative Agent:

     (i) This Fourth Amendment executed by Borrower, each other Obligor, Lender and
L/C Issuer.

     (ii) The First Restated Revolving Note executed by Borrower, in the form of
Exhibit A.

     (iii) Pro forma Compliance Certificate, prepared after giving effect to this
Fourth Amendment.

     (iv) A certificate of officers acceptable to Administrative Agent of each
Obligor certifying as to (A) the incumbency of the officers signing such certificate
and the Loan Documents to which it is a party, (B) either (i) no change to its
Articles or Certificate of Incorporation, Certificate of Organization, Certificate
of Limited Partnership or other organization document, as applicable, most-recently
delivered to Administrative Agent and certified as true, complete and correct, or
(ii) if there has been any change to its Articles or Certificate of Incorporation,
Certificate of Organization, Certificate of Limited Partnership or other
organization document, as applicable, most recently delivered to Administrative
Agent, an original certified copy of its Articles or Certificate of Incorporation,
Certificate of Organization, Certificate of Limited Partnership or other
organization document, as applicable, certified as true, complete and correct by the
appropriate authority of its state of organization as of a date not more than ten
days prior to the date such certificate is delivered to Administrative Agent, (C)
either (i) no change to its By-Laws, Limited Liability Company Agreement, Limited
Partnership Agreement or other governance document, as applicable, most recently
delivered to Administrative Agent and certified as true, complete and correct, or
(ii) if there has been any change to its By-Laws, Limited Liability Company
Agreement, Limited Partnership Agreement or other governance document, as
applicable, most recently delivered to Administrative Agent, a copy of its By-Laws,
Limited Liability Company Agreement, Limited Partnership Agreement and each other
governance document, as applicable, as in effect on the date such certificate is
delivered to Administrative Agent, (D) a copy of the resolutions of the appropriate
governance board authorizing it to execute, deliver and perform the Loan Documents
to which it is a party, and (E) an original certificate of good standing and
existence issued by the appropriate authority of

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its state of organization (certified as of a date not more than ten days prior
to the date such certificate is delivered to Administrative Agent).

     (v) Searches of the Uniform Commercial Code, Tax lien and other records as
Administrative Agent may require.

     (vi) Opinions of counsel to Borrower and each other Obligor addressed to
Administrative Agent, L/C Issuer and Lenders and covering such matters as
Administrative Agent or Special Counsel may reasonably request.

     (vii) In form and substance satisfactory to Administrative Agent and Special
Counsel, such other documents, instruments and certificates as Administrative Agent,
L/C Issuer and any Lender may reasonably require in connection with this Fourth
Amendment.

     (b) No Default. No Default or Event of Default shall exist.

     (c) Representations and Warranties.

     (i) All of the representations and warranties contained in Article VIII
of the Credit Agreement, as amended hereby, and in the other Loan Documents shall be
true and correct on and as of the date of this Fourth Amendment with the same force
and effect as if such representations and warranties had been made on and as of such
date, except to the extent such representations and warranties speak to a specific
date.

     (ii) All of the representations and warranties contained in Article VI
shall be true and correct, both before and after giving effect to this Fourth
Amendment.

        3.2 Expenses of Administrative Agent. As provided in the Credit Agreement, Borrower
shall pay on demand all reasonable costs and expenses incurred by Administrative Agent in
connection with the preparation, negotiation, and execution of this Fourth Amendment and the other
Loan Documents executed pursuant hereto, including without limitation the reasonable fees and
expenses of Administrative Agent’s legal counsel.

ARTICLE IV

Ratification

        4.1 Ratification. The terms and provisions set forth in this Fourth Amendment shall
modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and
except as expressly modified and superseded by this Fourth Amendment, the terms and provisions of
the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in
full force and effect. Each Obligor agrees that the Credit Agreement, as amended hereby, and the
other Loan Documents to which it is a party or subject shall continue to be legal, valid, binding
and enforceable in accordance with their respective terms.

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ARTICLE V

Representations and Warranties

        5.1 Representations and Warranties.

     (a) Loan Documents. Each Obligor hereby represents and warrants to
Administrative Agent, Lender and L/C Issuer that (i) the execution, delivery and performance
of this Fourth Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite action on the part of such Obligor
and will not violate any organizational document of such Obligor, (ii) the representations
and warranties contained in the Credit Agreement, as amended hereby, and each other Loan
Document are true and correct on and as of the date hereof as though made on and as of the
date hereof, except to the extent such representations and warranties speak to a specific
date, (iii) no Default or Event of Default exists, and (iv) such Obligor is in full
compliance with all covenants and agreements contained in the Credit Agreement, as amended
hereby, and the other Loan Documents to which it is a party or it or its property is
subject.

     (b) New Subsidiary. Affirmative Insurance Company represents and warrants that
it has organized and is the sole shareholder of AICM.

ARTICLE VI

Miscellaneous

        6.1 Reference to Credit Agreement. Each of the Loan Documents, including the Credit
Agreement and any and all other agreements, documents, or instruments now or hereafter executed and
delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement as amended
hereby, are hereby amended so that any reference in such Loan Documents to the Credit Agreement
shall mean a reference to the Credit Agreement as amended hereby.

        6.2 Severability. The provisions of this Fourth Amendment are intended to be
severable. If for any reason any provision of this Fourth Amendment shall be held invalid or
unenforceable in whole or in part in any jurisdiction, such provision shall, as to such
jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any
manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining
provisions hereof in any jurisdiction.

        6.3 Counterparts. This Fourth Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any
party hereto may execute this Fourth Amendment by signing any such counterpart.

        6.4 INTEGRATION. THIS FOURTH AMENDMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS,
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF

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PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     6.5 GOVERNING LAW. THIS FOURTH AMENDMENT AND THE OTHER LOAN DOCUMENTS SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.

The Remainder of This Page Is Intentionally Left Blank.

7

 

     Executed as of the date first written above.

	 	 	 	 	 
	BORROWER:	 	AFFIRMATIVE INSURANCE HOLDINGS, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Print Name:
	 

	 	 	 	 
	 	 	Print Title:
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	RICS:	 	AFFIRMATIVE INSURANCE COMPANY
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Print Name:
	 

	 	 	 	 
	 	 	Print Title:
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	INSURA PROPERTY AND CASUALTY INSURANCE COMPANY
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Print Name:
	 

	 	 	 	 
	 	 	Print Title:
	 

	 	 	 	 

Fourth
Amendment to Credit Agreement — Signature Page

 

 

OTHER OBLIGORS:

A-AFFORDABLE INSURANCE AGENCY, INC.

A-AFFORDABLE MANAGING GENERAL AGENCY, INC.

AFFIRMATIVE ALTERNATIVE DISTRIBUTION, INC.

AFFIRMATIVE FRANCHISES GROUP, INC.

AFFIRMATIVE INSURANCE SERVICES, INC.

AFFIRMATIVE INSURANCE SERVICES OF FLORIDA, INC.

AFFIRMATIVE INSURANCE SERVICES OF PENNSLYVANIA, INC.

AFFIRMATIVE INSURANCE SERVICES OF SOUTH CAROLINA, INC.

AFFIRMATIVE INSURANCE SERVICES OF TEXAS, INC.

AFFIRMATIVE MANAGEMENT SERVICES, INC.

AFFIRMATIVE PROPERTY HOLDINGS, INC.

AFFIRMATIVE RETAIL, INC.

AFFIRMATIVE SERVICES, INC.

AFFIRMATIVE SERVICES RETAIL, INC.

AFFIRMATIVE UNDERWRITING SERVICES, INC.

AMERICAN AGENCIES INSURANCE GROUP, INC.

AMERICAN AGENCIES INSURANCE SERVICES OF LOUISIANA, INC.

AMERICAN AGENCIES INVESTMENTS, INC.

DRIVER’S CHOICE INSURANCE AGENCIES, INC.

DRIVER’S CHOICE INSURANCE SERVICES, LLC

FED USA FRANCHISING, INC.

FED USA FRANCHISING GROUP, INC.

FED USA RETAIL, INC.

INSTANT AUTO INSURANCE AGENCY OF ARIZONA, INC.

INSTANT AUTO INSURANCE AGENCY OF COLORADO, INC.

INSTANT AUTO INSURANCE AGENCY OF INDIANA, INC.

INSTANT AUTO INSURANCE AGENCY OF NEW MEXICO, INC.

INSUREONE INDEPENDENT INSURANCE AGENCY, LLC

SPACE COAST HOLDINGS, INC.

YELLOW KEY INSURANCE AGENCY, INC.

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	David B. Snyder, Senior Vice President for all	 	 

Fourth
Amendment to Credit Agreement — Signature Page

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT, LENDER AND L/C

ISSUER:	 	THE FROST NATIONAL BANK, as
Administrative Agent, Lender and L/C
Issuer
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	By:
	 

	 	 	 	 
	 	 	Print Name:
	 

	 	 	 	 
	 	 	Print Title:
	 

	 	 	 	 

Fourth
Amendment to Credit Agreement — Signature Page

 

 

Exhibit A

First Restated Revolving Note

 

 

Exhibit H

Compliance Certificate

 

 

Schedule 2.1

Commitments; Pro Rata Shares

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Revolving	 	 	 	 	 	Pro Rata	 
	 	Lender	 	 	Commitment	 	 	Term Commitment	 	 	Share	 
	 	The Frost National Bank
	 	 	$20,000,000	 	 	$0	 	 	100%

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