Document:

Exhibit 10.2 - Award Agreement

		

			 

		

		
			Exhibit 10.2
		

		
			 
		

		
			THE PANTRY, INC.
		

		
			 
		

		
			aWARD Agreement
		

		
			(Awarding Performance-Based Restricted Stock to [[FIRSTNAME]] [[LASTNAME]])
		

		
			 
		

		
			THIS AWARD AGREEMENT (this “Agreement”) is dated as of [[GRANTDATE]] (the “Grant Date”) by and between The Pantry, Inc., a Delaware corporation (the “Company”), and [[FIRSTNAME]] [[LASTNAME]] (“Participant”) pursuant to The Pantry, Inc. 2007 Omnibus Plan (the “Plan”). All capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan.
		

		
			 
		

		
			RECITALS:
		

		
			 
		

		
			A.        Participant is an employee of the Company and the Company considers it desirable to give Participant an added incentive to advance the interests of the Company and its shareholders.
		

		
			 
		

		
			B.        The Company now desires to grant Participant shares of common stock of the Company, par value $.01 per share (the “Shares”) in the form of Restricted Stock, pursuant to the terms and conditions of this Agreement and the Plan.
		

		
			 
		

		
			AGREEMENT:
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the covenants hereinafter set forth, the parties agree as follows:
		

		
			 
		

		
			            1.            Grant of Restricted Stock.  The Company has granted Participant, and Participant hereby accepts,  [[SHARESGRANTED]] Shares of Restricted Stock at target level, having a Fair Market Value per Share of [[MARKETPRICEATAWARD]] on the Grant Date.  The Restricted Stock is subject to the terms and conditions stated in this Agreement and in the Plan.
		

		

		

		 

		

			 

		

 

		

			 

		

		
		

		
			2.         Period of Restriction.   Subject to Participant’s continuing to provide services to the Company, the restrictions set forth in this Agreement with respect to the Shares shall lapse with respect to one-third (1/3) of the Shares of Restricted Stock  on the later of (i) each of the first, second and third anniversaries of the Grant Date and (ii) the date that the Compensation and Organization Committee of the Board of Directors of the Company (the “Committee”) determines in its discretion, including without limitation through the inclusion or exclusion of any events listed in Section 12.2 of the Plan, that the Company has met the performance goal (the “Performance Goal”) for the performance period (the “Performance Period”) as established by the Committee (the “Vest Date”).    If the Performance Goal is not met, the Shares will be forfeited.  The performance criteria for the Performance Period, the related Performance Measure (as such term is defined in Section 12 of the Plan), the Performance Goal, and the threshold, target and maximum performance levels are set forth on Exhibit A.  Where performance falls between threshold and target or target and maximum levels, the number of Shares that will vest shall be determined on a pro rata basis. The Performance Goal will be established by the Committee within sixty (60) days of the beginning of the Performance Period.  
		

		
			 
		

		
			Participant acknowledges that prior to the lapse of the applicable restrictions, the Restricted Stock may not be sold, transferred, pledged, assigned, encumbered, alienated, hypothecated or otherwise disposed of (whether voluntarily or involuntarily or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy)).  Upon the Vest Date applicable to an Installment, the restrictions set forth in this Agreement with respect to such Installment shall lapse, except as may be provided in accordance with Section 9 hereof.
		

		
			 
		

		
			3.         Ownership.   Participant agrees that Participant’s ownership of the Restricted Stock will be evidenced solely by a “book entry” (i.e., a computerized or manual entry) in the records of the Company or its designated stock transfer agent in Participant’s name.  Upon the Vest Date applicable to an Installment, the Company shall transfer the vested shares to Participant.
		

		

		

		 

		

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			            4.         Termination.      
		

		
			 
		

		
			(a)     Death or Disability.  If Participant’s termination of employment or other relationship with the Company is as a result of Participant’s death or Disability (as such term is defined in Participant’s employment agreement or, if Participant has no employment agreement, within the meaning of Section 22(e)(3) of the Code), then any restrictions which would otherwise remain on any of the three Installments of Restricted Stock at target level shall immediately lapse.
		

		
			 
		

		
			(b)      Retirement.  If Participant’s termination of employment or other relationship with the Company is as a result of Participant’s Retirement (for purposes of this Agreement, defined as Participant’s termination after attaining age fifty-five (55) with at least ten (10) completed years of service), then the Compensation and Organization Committee of the Board of Directors of the Company (the “Committee”), or its delegate, in its sole discretion, may vote to accelerate vesting of all outstanding shares to the extent that the Performance Goal is met.  If this occurs, the restrictions set forth in this Agreement with respect to the Shares shall immediately lapse on the date such decision was made by the Committee, causing any restrictions which would otherwise remain on the Stock to immediately lapse. The decision by the Committee regarding acceleration of outstanding shares in the case of Participant’s Retirement will be made considering the following factors: (1) Participant’s previous general contributions to the Company, (2) Participant’s contributions on key initiatives of the Company, (3) Participant’s years of service to the Company, (4) Financial performance of the Company in the current fiscal year; and/or (5) Financial performance of the Company in the previous fiscal year.  
		

		
			 
		

		
			If taxes become due on all Shares, then Participant will be subject to taxes and withholding as set forth in Section 5, below.  
		

		

		

		 

		

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			(c)         Other Terminations.  If Participant’s Termination is by the Company or an Affiliate or by Participant for any reason other than death,  Disability or Retirement, then all Restricted Stock for which the applicable restrictions had not lapsed prior to the date of such Termination shall be immediately forfeited.
		

		
			 
		

		
			5.        Taxes and Withholdings.  Upon the Vest Date for any Installment or such earlier dates as Participant elects pursuant to Section 83(b) of the Code, or as of which the value of any Shares of Restricted Stock first becomes includible in Participant’s gross income for income tax purposes, Participant shall notify the Company if Participant wishes to pay the Company in cash, check or with shares of Company common stock already owned for the satisfaction of any taxes of any kind required by law to be withheld with respect to such Shares; provided, however, that pursuant to any procedures, and subject to any limitations as the Committee may prescribe and subject to applicable law, if Participant does not notify the Company in writing at least fourteen (14) days prior to the Vest Date for any Installment, then Participant will satisfy such withholding obligations by withholding Shares otherwise deliverable to Participant pursuant to the Restricted Stock (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required Federal, state, local and non-United States withholding obligations using the minimum statutory withholding rates for Federal, state, local and/or non-U.S. tax purposes, including payroll taxes, that are applicable to supplemental taxable income). Any such election made by Participant must be irrevocable, made in writing, signed by Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.  In the event that Participant elects immediate Federal income taxation with respect to all or any portion of this award of Restricted Stock pursuant to Section 83(b) of the Code, Participant agrees to deliver a copy of such election to the Company within ten (10) days after filing such election with the Internal Revenue Service.
		

		

		

		 

		

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			6.        Rights as a Shareholder.  Participant shall have all rights of a shareholder (including, without limitation, dividend and voting rights) with respect to the Restricted Stock, for record dates occurring on or after the Grant Date and prior to the date any such Shares of Restricted Stock are forfeited in accordance with this Agreement, except that any dividends or distributions paid in Shares or other securities (including, without limitation, any change in the shares of Restricted Stock pursuant to Section 4.4 of the Plan) with respect to the Restricted Stock shall, until such time as the applicable restrictions have lapsed, be deposited with the Company or any holder appointed pursuant to Section 3 hereof, together with a stock power endorsed in blank or other appropriate instrument of transfer, or credited to Participant’s book-entry account established under Section 3 hereof, as applicable, and shall be subject to the same restrictions (including, without limitation, the need to satisfy the applicable Performance Goals) as such Restricted Stock and otherwise considered to be such Restricted Stock for all purposes hereunder.
		

		
			 
		

		
			7.        No Right to Continued Employment.   Neither the Restricted Stock nor any terms contained in this Agreement shall confer upon Participant any express or implied right to be retained in the employment or service of the Company or any Affiliate for any period, nor restrict in anyway the right of the Company, which right is hereby expressly reserved, to terminate Participant’s employment or service at any time for any reason.  Participant acknowledges and agrees that any right to have restrictions on the Restricted Stock lapse is earned only by continuing in the service of the Company or an Affiliate at the will of the Company or such Affiliate, and satisfaction of the other applicable terms and conditions contained in the Plan and this Agreement, and not through the act of being hired, being granted the Restricted Stock or acquiring Shares hereunder.
		

		
			 
		

		
			8.        The Plan.  This Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such requirements as may from time to time be adopted by the Committee.  In the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly. A copy of the Plan is available to Participant at the Company’s principal executive offices upon request and without charge.
		

		

		

		 

		

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			9.        Compliance with Laws and Regulations.
		

		
			 
		

		
			(a)                 The Restricted Stock and the obligation of the Company to sell and deliver Shares hereunder shall be subject in all respects to (i) all applicable Federal and state laws, rules and regulations and (ii) any registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable.  Moreover, the Company shall not deliver any certificates for Shares to Participant or any other person pursuant to this Agreement if doing so would be contrary to applicable law.  If at any time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any national securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable, the Company shall not be required to deliver any certificates for Shares to Participant or any other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Company. 
		

		
			 
		

		
			(b)                 The Shares received upon the expiration of the applicable portion of the Period of Restriction shall have been registered under the Securities Act of 1933, as amended (“Securities Act”). If Participant is an “affiliate” of the Company, as that term is defined in Rule 144 under the Securities Act (“Rule 144”), Participant may not sell the Shares received except in compliance with Rule 144. Certificates representing Shares issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on the disposition or transfer of the Shares as the Company deems appropriate to comply with Federal and state securities laws.
		

		

		

		 

		

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			(c)                   If, at any time, the Shares are not registered under the Securities Act, and/or there is no current prospectus in effect under the Securities Act with respect to the Shares, Participant may be required to execute, prior to the delivery of any Shares to Participant by the Company pursuant to this Agreement, an agreement (in such form as the Company may specify) in which Participant represents and warrants that Participant is purchasing or acquiring the shares acquired under this Agreement for Participant’s own account, for investment only and not with a view to the sale or distribution thereof, and represents and agrees that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the Shares being offered or sold, or (ii) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption Participant shall, prior to any offer for sale of such Shares, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company, as to the applicability of such exemption thereto.
		

		
			 
		

		
			10.      Notices.   All notices by Participant or Participant’s assignees shall be addressed to The Pantry, Inc., 305 Gregson Drive, Cary, North Carolina 27511, Attention: Human Resources, or such other address as the Company may from time to time specify.  All notices to Participant shall be addressed to Participant at Participant’s address in the Company’s records.
		

		
			 
		

		
			11.      Other Plans.  Participant acknowledges that any income derived from the Restricted Stock shall not affect Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any Affiliate.
		

		

		

		 

		

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			12.      Clawback Provision.  It is the Company’s Policy that, consistent with Section 954 of the Dodd-Frank Act, in the event that the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, the Company will seek to recover from any current or former executive officer of the Company who received incentive-based compensation (including stock options and performance shares awarded as compensation) during the 3-year period preceding the date on which the Company is required to prepare the accounting restatement, the amount, based on the erroneous data, in excess of what would have been paid to the executive officer under the accounting restatement.  The Company will implement this Policy in accordance with the rules of the Securities Exchange Commission, as they are promulgated.  Pursuant to this agreement, Employee agrees to promptly return to the Company any and all amounts received pursuant to this Agreement to the extent the Company is entitled or required to recover such amounts by the terms of (i) the Company’s Executive Compensation Recoupment Policy or other Clawback or recoupment policy, as adopted, amended, implemented, and interpreted by the Company from time to time, and/or (ii) Section 954 of the Dodd-Frank Act (as may be amended) and any applicable rules or regulations promulgated by the Securities Exchange Commission.
		

		
			 
		

		
			13.      Change in Control.  In event of a Change in Control (as defined in the Omnibus Plan),  one hundred percent (100%) of the Shares of Restricted Stock set forth in Paragraph 1 above shall vest and Participant shall not have any additional rights relating to this grant.    
		

		
			 
		

		
			14.     Governing Law.  This Agreement shall be construed under and governed by the laws of the State of Delaware without regard to the conflict of law provisions thereof.
		

		
			 
		

		
			15.     Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which together shall be deemed one Agreement.
		

		
			 
		

		

		

		 

		

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			IN WITNESS WHEREOF, the Company has executed this Agreement as of the date first above written.
		

		
			 
		

		
			THE COMPANY:
		

		
			 
		

		
			THE PANTRY, INC. 
		

		
			 
		

		
			 
		

		
			 
		

		
			By:                                                
		

		
			Dennis G. Hatchell
		

		
			President and Chief Executive Officer
		

		
			     
		

		
			 
		

		
			 
		

		
			By electronic signature the Participant enters into this Agreement pursuant to the terms and conditions outlined above as of the date first above written.  
		

		
			 
		

		
			PARTICIPANT:
		

		
			 
		

		
			 
		

		
			 
		

		
			/s/ [[FIRSTNAME]] [[LASTNAME]]
		

		
			[[FIRSTNAME]] [[LASTNAME]]
		

		
			 
		

		
			 
		

		

		

		 

		

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		Exhibit A
		

		
			 
		

		
			Performance Criteria
		

		
			 
		

		
			The Performance Measure shall be Adjusted EBITDA defined as net income (loss) before interest expense, net, gain (loss) on extinguishment of debt, income taxes, impairment charges, depreciation and amortization and excluding one-time accounting charges not forecasted.
		

		
			 
		

		
			The Performance Periods, Performance Goals and related multipliers shall be as follows:
		

		
			 
		

			
					
						Performance Period

					
					
						Performance Goal and Multiplier

				
	
					
						Threshold (50%)

					
					
						Target (100%)

					
					
						Maximum (150%)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		 

		

			10EXHIBIT 10.1

	
 

	

	
 

	
SHARE
PURCHASE AGREEMENT

	
 

	

dated September 28, 2012

regarding the

sale and purchase of
all shares held by ZZH Verwaltungsgesellschaft mbH in 

ZygoLOT GmbH

Table of Contents

	
 

	
 

	
 

	
1.

	
Certain Defined Terms and Abbreviations

	
4

	
2.

	
Current Status / Shareholders’ Resolution

	
5

	
3.

	
Sale and Purchase of the Sale Share;
Effective Date

	
5

	
4.

	
Purchase Price

	
6

	
5.

	
Closing

	
6

	
6.

	
Representations of Seller and Purchaser

	
6

	
7.

	
Remedies

	
7

	
8.

	
Statute of Limitation

	
7

	
9.

	
Taxes

	
7

	
10.

	
Settlement

	
7

	
11.

	
Notices

	
8

	
12.

	
Costs

	
8

	
13.

	
Miscellaneous

	
9

2

Certain Defined
Terms and Abbreviations

	
 

	
 

	
2012 Profit Claim

	
6

	
Affiliates

	
4

	
Agreement

	
4

	
AktG

	
4

	
Breach

	
7

	
Closing Date

	
6

	
Company

	
4

	
Effective Date

	
6

	
Equity Interests

	
5

	
Legacy Claims

	
8

	
Legal Entity

	
5

	
Parties

	
4

	
Party

	
4

	
Purchase Price

	
6

	
Purchaser

	
4

	
Sale Share

	
5

	
Seller

	
4

	
Seller Claims

	
5

	
Tax Liabilities

	
5

3

SHARE PURCHASE
AGREEMENT

by and between

	
 

	
 

	
1.

	
ZZH
Verwaltungsgesellschaft mbH, a limited liability
company (GmbH) under German
law, having its business address at Im Tiefen See 58, 64293 Darmstadt, and
being registered with the Local Court of Darmstadt under HRB 85872

	
 

	
 

	
 

	
- “Seller” -

	
 

	
 

	
2.

	
Zygo Germany GmbH, a
limited liability company (GmbH)
under German law, having its business address at Bleichstr. 2, 64283
Darmstadt, and being registered with the Local Court of Darmstadt under HRB
85555

	
 

	
 

	
 

	
- “Purchaser” -

	
 

	
 

	
 

	
-
Seller and Purchaser each a “Party” and collectively the “Parties”
-

PREAMBLE

	
 

	
 

	
A.

	
Seller
and Purchaser are the sole shareholders of ZygoLOT GmbH (“Company”).

	
 

	
 

	
B.

	
Seller
intends to sell and assign its entire shareholding in the Company to
Purchaser and Purchaser intends to acquire such shareholding. On the date
hereof, the Parties have passed the shareholders’ resolution attached as Exhibit B for information purposes.

NOW, THEREFORE, the Parties agree as follows:

	
 

	
 

	
1.

	
Certain
Defined Terms and Abbreviations

	
 

	
 

	
 

	
In this agreement
(the “Agreement”),
except where set forth otherwise, the following terms and abbreviations shall
have the following meanings:

	
 

	
 

	
 

	
“Affiliates”: any individual persons or
Legal Entities who or which are affiliated enterprises (verbundene Unternehmen) within the
meaning of Section 15 AktG.

	
 

	
 

	
 

	
“AktG”: the German Stock Corporation Act (Aktiengesetz).

	
 

	
 

	
 

	
“Equity Interests”: any shares,
partnership interests or other equity interests or voting rights in any Legal
Entity.

4

	
 

	
 

	
 

	
“Legal Entity”: any corporation, company,
partnership, association or other legal entity whether having separate legal
personality or not established pursuant to the laws of any jurisdiction.

	
 

	
 

	
 

	
“Tax Liabilities”: any and all liabilities
relating to all direct, indirect and other taxes, duties, withholdings,
import duties, levies and social security or other similar contributions imposed
by any regional, national or other authority or body, and all related
charges, interest, penalties, fines and expenses as well as all social
security contributions, without limitation, any taxes, levies and duties
pursuant to Section 3 of the German Tax Code (Abgabenordnung - AO).

	
 

	
 

	
 

	
“Seller Claims”: any and all claims, known
or unknown, which Seller may have against the Company, except for the 2012
Profit Claim.

	
 

	
 

	
2.

	
Current Status / Shareholders’ Resolution

	
 

	
 

	
2.1

	
The
Company. The Company is a limited liability company (GmbH) under German law, having its
business address at Im Tiefen See 58, 64293 Darmstadt, and being registered
with the commercial register at the Local Court (Amtsgericht) of Darmstadt under HRB 7622. 

	
 

	
 

	
2.2

	
Sale
Share. Seller holds one share in the nominal amount of
EUR 20,000 (in words: Euro twenty-thousand) in the Company (such shareholding and any shareholding
Seller may hold in the Company the “Sale Share”). Purchaser
holds one share in the nominal amount of EUR 30,000 (in words: Euro
thirty-thousand) in the Company.

	
 

	
 

	
2.3

	
Subsidiaries. The
Company does not hold, directly or indirectly, any Equity Interests in
another Legal Entity. 

	
 

	
 

	
2.4

	
Shareholder
Resolution. Seller and Purchaser passed the
shareholders’ resolution attached for information purposes as Exhibit
2.4 (i) hereto approving of the sale and transfer of the Sale
Share by Seller to Purchaser in accordance with Section 14 of the Articles of
Association. The declaration of the Company consenting to the sale and
transfer of the Sale Share in accordance with Section 14 of the Articles of
Association is attached as Exhibit 2.4 (ii) hereto for information
purpose.

	
 

	
 

	
3.

	
Sale
and Purchase of the Sale Share; Effective Date

	
 

	
 

	
3.1

	
Sale and Transfer of the Sale
Share. Seller
hereby sells (verkauft) and,
subject to the condition precedent (aufschiebende
Bedingung) of the payment of the Purchase Price (as defined in
Section 4.1 below), hereby transfers (tritt
ab) the Sale Share and any and all Seller Claims to Purchaser. Purchaser
hereby accepts this sale and transfer. 

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3.2

	
Ancillary Rights. Except for the profits of the Company
generated during the fiscal year 2012 (the “2012
Profit Claim”), the sale and transfer of the Sale Share shall include all ancillary rights appertaining
thereto (Nebenrechte). 

	
 

	
 

	
3.3

	
Effective
Date. The sale of the Sale Share shall be made with
commercial effect (wirtschaftlicher
Wirkung) as of July 1, 2012 0:00 hours (the “Effective Date”).

	
 

	
 

	
4.

	
Purchase
Price 

	
 

	
 

	
4.1

	
Purchase
Price. The purchase price for the Sale Share (the “Purchase
Price”) shall be a fixed amount of EUR 2,500,000 (in words: Euro
two million five hundred thousand). 

	
 

	
 

	
4.2

	
Payment
of the Purchase Price. On the Closing Date (as defined in
Section 5.1), Purchaser shall pay the amount of the Purchase Price into the
following bank account of Seller:

	
 

	
 

	
 

	
 

	
Account holder:

	
ZZH Verwaltungsgesellschaft mbH

	
 

	
 

	
 

	
 

	
Bank:

	
Commerzbank

	
 

	
 

	
 

	
 

	
Bank code:

	
50880050

	
 

	
 

	
 

	
 

	
Account no.:

	
 [...*...]

	
 

	
 

	
4.3

	
Modes of Payment. Any payments
under this Agreement shall be made by wire transfer in immediately available
funds, value as of the relevant due date set out in this Agreement or as
otherwise provided by law, free of bank and other charges.

	
 

	
 

	
5.

	
Closing

	
 

	
 

	
5.1

	
Closing.
On September 28,
2012 (the “Closing Date”),
Purchaser shall pay to Seller the Purchase Price in accordance with
Section 4 above. 

	
 

	
 

	
5.2

	
Confirmation
of Closing. Upon receipt of the Purchase Price by Seller, Seller and
Purchaser shall execute a joint written confirmation that the Closing has
occurred, and such confirmation shall be provided to the acting notary in
writing or by facsimile or PDF copy without undue delay.

	
 

	
 

	
6.

	
Representations
of Seller and Purchaser 

	
 

	
 

	
 

	
Seller represents and warrants in
the form of an independent undertaking (selbständiges
Garantieversprechen) within the meaning of Section 311 (1) of the
German Civil Code (Bürgerliches Gesetzbuch
- BGB) to Purchaser as of the date hereof and as of the Closing
Date:

* CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS. THE OMITTED INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.

6

	
 

	
 

	
 

	
 

	
-

	
The Sale Share has been validly
issued in compliance with applicable law. Seller holds full and unrestricted
legal and benefical title (uneingeschränkte
rechtliche und wirtschaftliche Inhaberschaft) to the Sale Share. 

	
 

	
 

	
 

	
 

	
-

	
The Sale Share has been fully
paid up; all contributions with respect to the Sale Share have been made in compliance
with applicable law and no repayments of the stated capital have been made to
Seller.

	
 

	
 

	
 

	
 

	
-

	
The Sale Share is not encumbered
by any third party rights.

	
 

	
 

	
 

	
 

	
-

	
There are no silent partnerships
or sub-participations with regard to the Sale Share.

	
 

	
 

	
 

	
7.

	
Remedies

	
 

	
 

	
 

	
 

	
If, and to the extent that,
representations and warranties of the Seller are untrue (the “Breach”), the Seller shall put the Purchaser in a
position as if such representations and warranties had been correct. 

	
 

	
 

	
 

	
8.

	
Time
Limit for Making a Claim

	
 

	
 

	
 

	
 

	
Claims of the Purchaser resulting
from a Breach, and/or any tax indemnity claims under section 9, “Taxes”,
below shall be made in writing by the Purchaser to the Seller before January
1, 2014.

	
 

	
 

	
 

	
9.

	
Taxes

	
 

	
 

	
 

	
9.1

	
Tax Indemnity. Seller shall indemnify and hold harmless
Purchaser, or, at Purchaser’s election, the Company, from and against 40% of
any Tax Liabilities greater than EUR 10,000, relating to any periods ending
on or before the Effective Date, by paying an amount equal to such Tax
Liabilities to Purchaser, or at Purchaser’s election, to the Company, if and
to the extent the relevant taxes have not been fully paid on or prior to the
Effective Date.

	
 

	
 

	
 

	
9.2

	
Defense. Purchaser shall inform Seller about all
relevant measures of tax authorities (tax audits, tax assessments and
comparable measures) relating to taxes for which Seller may be liable under Section
9.1, and the Parties shall discuss the matter with the intent to reach a
mutually beneficial resolution of any issues. Seller shall be entitled to
participate at its own expenses in proceedings relating to such taxes.

	
 

	
 

	
 

	
9.3

	
Time Limitation. Any claims of Purchaser pursuant to
Section 9.1 shall be made within 6 (six) months after the final and binding
assessment of the relevant tax.

	
 

	
 

	
 

	
9.4

	
Seller Tax Liability. Seller shall be responsible for its own Tax
Liability from any gains it realized from this transaction.

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10.

	
Settlement

	
 

	
 

	
 

	
10.1

	
Subject
to Section 10.2, the Parties hereby 

	
 

	
 

	
 

	
 

	
(i)

	
agree that this Agreement constitutes the
conclusive and final settlement of any and all mutual claims, known and
unknown, which may exist on the basis of the relationship between the Parties
as shareholders of the Company (“Legacy
Claims”) and, by way of precaution,

	
 

	
 

	
 

	
 

	
(ii)

	
agree to waive any and all Legacy Claims.

	
 

	
 

	
 

	
10.2

	
The settlement and waiver in Section 10.1 above shall not affect any
claims between the Parties under this Share Purchase Agreement.

	
 

	
 

	
 

	
10.3

	
Zygo Corporation and L.O.T.-Oriel Holding
AG have entered into the settlement and waiver agreement attached as Exhibit
10.3 hereto for information purpose.

	
 

	
 

	
 

	
11.

	
Notices

	
 

	
 

	
 

	
 

	
All
notices and other communications hereunder shall be made in writing and shall
be sent by registered mail or courier to the following addresses:

	
 

	
 

	
 

	
 

	
If to Purchaser, to:

	
 

	
 

	
 

	
 

	
 

	
Zygo Germany GmbH

Attn.:
John A. Tomich

c/o Zygo Corporation

Laurel Brook Road

Middlefield, CT 06455

USA

with a copy to:

	
 

	
 

	
 

	
 

	
 

	
Baker & McKenzie

Attn.
Dr. Thomas Gilles

Bethmannstrasse
50.54

60311 Frankfurt am Main

Germany

Fax No. +49-69-299 08 108

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If to Seller, to:

	
 

	
 

	
 

	
 

	
 

	
ZZH Verwaltungsgesellschaft mbH

	
 

	
 

	
 

	
 

	
 

	
Attn. Klaus Hilger
Im Tiefen See 58
64293 Darmstadt

	
 

	
 

	
 

	
 

	
or to
such other recipients or addresses which may be specified by any Party to the
other Parties in the future in writing.

	
 

	
 

	
 

	
12.

	
Costs

	
 

	
 

	
 

	
 

	
All costs, including fees,
expenses and charges, incurred in connection with the preparation,
negotiation, execution and consummation of this Agreement or the transactions
contemplated herein, including, without limitation, the fees and expenses of
professional advisers, shall be borne by the Party having commissioned such
costs. The fees for the notarial recording of this Agreement shall be borne
by the Purchaser.

	
 

	
 

	
13.

	
Miscellaneous

	
 

	
 

	
13.1

	
Exhibits. All
Exhibits to this Agreement are attached for information purposes.

	
 

	
 

	
13.2

	
Entire
Agreement. This Agreement shall comprise the entire
agreement between the Parties concerning the subject matter hereof and shall
supersede and replace all prior oral and written declarations of intention
made by the Parties in respect thereof. 

	
 

	
 

	
13.3

	
Amendments. Any
amendments to this Agreement (including amendments to this Section 13.3) are
valid only if made in writing, unless another form is required by mandatory
law.

	
 

	
 

	
13.4

	
German
Terms. Where a German term has been inserted in quotation
marks and/or italics, such term alone (and not the English term to which it
relates) shall be authoritative for the interpretation of the respective
provision.

	
 

	
 

	
13.5

	
Assignment. Without
the written consent of the other Parties, no Party shall be entitled to
assign any rights or claims under this Agreement. Seller hereby consents to
the assignment by Purchaser of its rights under this Agreement to any of
Purchaser’s Affiliate.

	
 

	
 

	
13.6

	
Governing
Law. This Agreement shall be governed by, and be
construed in accordance with, the laws of the Federal Republic of Germany,
without regard to principles of conflicts of laws.

9

	
 

	
 

	
13.7

	
Jurisdiction. To the
extent legally permissible, the Regional Court (Landgericht) Frankfurt am Main shall have exclusive
jurisdiction regarding all disputes arising under or in connection with this
Agreement or its validity.

	
 

	
 

	
13.8

	
Partial
Invalidity. In the event that one or more provisions of
this Agreement shall, or shall be deemed to, be invalid or unenforceable, the
validity and enforceability of the other provisions of this Agreement shall
not be affected thereby. In such case, the Parties agree to recognize and
give effect to such valid and enforceable provision or provisions which
correspond as closely as possible with the commercial intent of the Parties.
The same shall apply in the event that this Agreement contains any gaps (Vertragslücken). 

10

Exhibit B

Gesellschafterbeschluss

Shareholder’s Resolution

Die Zygo Germany GmbH, Darmstadt
und die ZZH Verwaltungsgesellschaft mbH, Darmstadt treten in eine
Gesellschafterversammlung ein und beschließen:

Zygo Germany GmbH, Darmstadt and ZZH
Verwaltungsgesellschaft mbH, Darmstadt come together in a shareholder’s meeting
and resolve:
1.

Der Jahresabschluss zum 30.6.2012 mit einer Bilanzsumme von EUR 5.881.806,60
und einem Jahresübersschuss von EUR 2.127.047,36 wird festgestellt in der Form
des Prüfungsberichtes des Abschlussprüfers Josef Stimpfle, Gerlingen vom
27.7.2012.

The annual financial statement as of June
30th 2012 with a balance sheet total of EUR 5.881.806,60 and a net
earnings of EUR 2.127.047,36 is approved as reported by the auditor Josef
Stimpfle, Gerlingen as of July 27th 2012.
2.

Der Bilanzgewinn in Höhe von EUR 2.127.174,80 wird am 28.9.2012 ausgezahlt. Die
einzubehaltende Kapitalertragsteuer und Solidaritätszuschlag reduzieren die
Auszahlungsbeträge.

The retained earnings in the amount of EUR
2.127.174,80 will be paid as a dividend on September 28th 2012. The payments
will be reduced by the capital gain tax and solidarity tax.

3.

Dem Geschäftsführer Arno Köhler wird für das Geschäftsjahr 2011/2012 Entlastung
erteilt.

Geschäftsführer Arno Köhler is released from
his duties of the fiscal year 2011/2012.

4.

Zum Abschlussprüfer für das Geschäftsjahr 2012/2013 wird Herr Josef Stimpfle,
Gerlingen gewählt.

It is resolved that the auditor for the
fiscal year 2012/2013 will remain Mr. Josef Stimpfle, Gerlingen.

Darmstadt 28.9.2012

	
 

	
 

	
 

	
 

	
/s/ John A. Tomich

	
 

	
/s/ Arno Köhler

	
 

	

	
 

	

	
 

	
 

	
 

	
Zygo Germany GmbH

	
ZZH Verwaltungsgesellschaft mbH

Exhibit 2.4 (i)

Written Shareholders Resolution

The undersigned

ZZH Verwaltungsgesellschaft mbH,

registered in the commercial register with the 

Local Court Darmstadt under HRB 85872

and

Zygo Germany GmbH,

registered in the commercial register with the 

Local Court Darmstadt under HRB 85555

(the “Shareholders”)

in their capacity as sole shareholders of

ZygoLOT GmbH

registered in the commercial register with the 

Local Court Darmstadt under HRB

(the “Company”)

waiving the
fulfilment of all requirements provided for by law or the articles of
association as to call and notice, hereby pass the following shareholders’
resolution: 

	
  

 	
  

 
	
  

 	
 The sale and
 transfer of the share held in the Company by ZZH Verwaltungsgesellschaft mbH
 to Zygo Germany GmbH is hereby approved. 

 
	
  

 	
  

 
	
  

 	
 The managing
 director of the Company is hereby instructed to issue a declaration of
 consent to such share sale and transfer. 

 

	
  

 	
  

 
	
 ZZH Verwaltungsgesellschaft mbH

 	
  

 
	
  

 	
  

 
	
 place, date:

 	
 Frankfurt 28,9.12

 
	
  

 	
  

 
	
 signature:

 	
 /s/ Klaus Hilger 

 
	
  

 	

 
	
  

 	
  

 
	
 name:

 	
 Klaus Hilger

 
	
  

 	
  

 
	
 in his capacity as

 	
 Managing Director

 
	
  

 	
  

 
	
 Zygo Germany GmbH

 	
  

 
	
  

 	
  

 
	
 place, date:

 	
 Middlefield Connecticut,
 USA

 September 27, 2012

 
	
  

 	
  

 
	
 signature:

 	
 /s/ John A. Tomich 

 
	
  

 	

 
	
  

 	
  

 
	
 name:

 	
 John A.
 Tomich

 
	
  

 	
  

 
	
 in his capacity as

 	
 Geschäftsführer/Managing
 Director

 

Exhibit 2.4 (ii) 

Declaration of Consent

	
  

 	
  

 
	
 1.

 	
 ZZH Verwaltungsgesellschaft mbH, Darmstadt and Zygo Germany GmbH,
 Darmstadt are the sole shareholders of ZygoLOT GmbH, Darmstadt (“Company”). 

 
	
  

 	
  

 
	
 2.

 	
 ZZH Verwaltungsgesellschaft mbH intends to sell and transfer its
 entire shareholding in the Company to Zygo Germany GmbH, Darmstadt. 

 
	
  

 	
  

 
	
 3.

 	
 The Company hereby issues its consent to such contemplated sale and
 transfer of shares in the Company in accordance with Section 14 of the
 Articles of Association of the Company. 

 

	
  

 
	
 Date: 28.9.2012

 
	
  

 
	
 Place: Darmstadt

 
	
  

 
	
 /s/ Arno Köhler 

 
	

 
	
  

 
	
 Arno Köhler

 
	
  

 
	
 Managing Director of ZygoLOT GmbH

 

Exhibit 10.3 

General Settlement Agreement

by and between

L.O.T.-Oriel
Holding AG, Im Tiefen See 58, 64293 Darmstadt, Germany 

- “L.O.T. ” - 

and

Zygo
Corporation, a Delaware corporation, Laurel Brook Road, Middlefield, Conneticut
06455-0448, USA 

- “Zygo” - 

(together the “Parties” and individually a “Party”)

WHEREAS, on
October 2, 1999, L.O.T. and Zygo entered into a certain Joint Venture Agreement
(“JV Agreement”) relating to
ZygoLOT GmbH, Darmstadt (the “Company”);

WHEREAS, ZZH
Verwaltungsgesellschaft mbH (hereafter “ZZH”) is the successor to L.O.T. in
ownership of the Company; 

WHEREAS, Zygo
Germany GmbH (hereafter “Zygo Germany”) is the successor to Zygo in ownership
of the Company; 

WHEREAS, on
the date hereof, ZZH and Zygo Germany are the sole shareholders the Company; 

and, 

WHEREAS, in
connection with the contemplated sale and transfer of the shares currently held
by ZZH in the Company to Zygo Germany under a certain share sale and transfer
agreement (“SPA”), the Parties wish to clarify and agree that they do not have
any claims, known and unknown, relating to the JV Agreement or the Company,
provided that any claims of L.O.T. against the Company and any claims of the
Company against L.O.T. under the Service Agreement shall remain unaffected.  

NOW THEREFORE,
the parties hereto agree as follows: 

	
  

 	
  

 
	
 1.

 	
 Termination of JV Agreement / No claims 

 

	
  

 	
  

 
	
  

 	
 The Parties hereby confirm (i) that the JV Agreement is terminated
 and (ii) that none of the Parties is entitled to any claims against the
 respective other Party or the Company in connection with or relating to the
 JV Agreement. 

 
	
  

 	
  

 
	
 2.

 	
 Assignment of claims 

 
	
  

 	
  

 
	
  

 	
 Should L.O.T., on behalf of itself or any affiliated company, despite
 the confirmation in Section 1 above, be entitled to any claim against the
 Company, L.O.T. hereby assigns such claim to Zygo, subject to the condition
 precedent and in consideration of the payment of the purchase price by Zygo
 Germany under the SPA. 

 
	
  

 	
  

 
	
 3.

 	
 General settlement 

 
	
  

 	
  

 
	
  

 	
 Subject to the condition precedent of the effectiveness of the
 assignment set forth in Section 2 above and to the extent that such waiver
 can be legally enforced, the Parties, on behalf of themselves and any
 affiliated companies, hereby agree to waive all known and unknown claims
 against each other, which may exist in connection with the JV Agreement. 

 
	
  

 	
  

 
	
 4.

 	
 Miscellaneous 

 
	
  

 	
  

 
	
 4.1

 	
 Entire Agreement. This Agreement shall
 comprise the entire agreement between the Parties concerning the subject
 matter hereof and shall supersede and replace all prior oral and written
 declarations of intention made by the Parties in respect thereof. 

 
	
  

 	
  

 
	
 4.2

 	
 Amendments. Any amendments to this Agreement
 (including amendments to this Section 4.2) are valid only if made in writing,
 unless another form is required by law. 

 
	
  

 	
  

 
	
 4.3

 	
 Governing Law. This Agreement shall be
 governed by, and be construed in accordance with, the laws of the Federal
 Republic of Germany, without regard to principles of conflicts of laws. 

 
	
  

 	
  

 
	
 4.4

 	
 Jurisdiction. To the extent legally
 permissible, the Regional Court (Landgericht) Frankfurt am Main shall have
 exclusive jurisdiction regarding all disputes arising under or in connection
 with this Agreement or its validity. 

 
	
  

 	
  

 
	
 4.5

 	
 Partial Invalidity. In the event that one or
 more provisions of this Agreement shall, or shall be deemed to, be invalid or
 unenforceable, the validity and enforceability of the other provisions of
 this Agreement shall not be affected thereby. In such case, the Parties agree
 to recognize and give effect to such valid and enforceable provision or
 provisions which correspond as closely as possible with the commercial intent
 of the Parties. The same shall apply in the event that this Agreement
 contains any gaps (Vertragslücken).
 

 

Place: Darmstadt

Date: 28.
Sept. 2012

Name: Ralph
Köhler, CEO 

	
  

 	
  

 
	
 Signature: 

 	
 /s/ Ralph Köhler

 
	
  

 	

 
	
 L.O.T.-Oriel Holding AG

 

Place:
Middlefield, Connecticut, USA 

Date:
September 28, 2012 

Name: John A.
Tomich 

           Vice President,
General Counsel 

           and Secretary 

	
  

 	
  

 
	
 Signature: 

 	
 /s/ John A. Tomich

 
	
  

 	

 
	
 Zygo Corporation

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