Document:

Exhibit

Exhibit 4. 17

KRATON CORPORATION
CASH SETTLED RESTRICTED STOCK UNIT AWARD AGREEMENT
Upon acceptance by you through the online acceptance procedures set forth at www.etrade.com, this Cash Settled Restricted Stock Unit Award Agreement (this “Agreement”) is made effective as of the Grant Date (defined below) between Kraton Corporation (the “Company”, and formerly known as Kraton Performance Polymers, Inc.) and you (the “Participant”). This Agreement evidences a grant of restricted stock units consisting of an unfunded and unsecured promise to pay a lump sum cash payment equal to the Fair Market Value of shares of the common stock, $0.01 par value, of the Company (“Common Stock”) under the Company's 2016 Equity and Cash Incentive Plan (as amended, the “Plan”). Unless otherwise indicated, any capitalized term used but not defined herein shall have the meaning ascribed to such term in the Plan.

1.Grant of Restricted Stock Units. Pursuant to, and subject to, the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant an award of the number of restricted stock units of the Company set forth on the Participant's online award acceptance page at www.etrade.com, which is incorporated by reference herein (collectively, the “Restricted Stock Units”). Each Restricted Stock Unit constitutes an unfunded and unsecured promise of the Company to pay a lump sum cash payment equal to the Fair Market Value of one share of Common Stock to Participant on the vesting date subject to the terms and conditions of this Agreement. Participant's rights with respect to the Restricted Stock Units shall be forfeitable until the Restricted Stock Units vest in accordance with Section 4. As a holder of Restricted Stock Units, the Participant has the rights of a general unsecured creditor of the Company. The Restricted Stock Units shall be bookkeeping entries only, and Participant shall have no rights to receive any shares of Common Stock hereunder and shall have no voting or other rights of a stockholder of the Company with respect to the Restricted Stock Units.

2.Grant Date. The grant date of the Restricted Stock Units (the “Grant Date”) is the date set forth on the Participant's online award acceptance page at www.etrade.com, which is incorporated by reference herein.

3.Incorporation of Plan. All terms, conditions and restrictions of the Plan are incorporated herein and made part hereof as if stated herein. If there is any conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan, as interpreted by the Committee, shall govern. All capitalized terms used herein that are not defined in this Agreement shall have the meanings given to such terms in the Plan.

4.Vesting Date. The Restricted Stock Units shall become vested as follows: 100% of the Restricted Stock Units shall vest on (i) the third anniversary of the Grant Date; provided that the Participant remains continuously employed by the Company through such date; or (ii) the date of the Participant's employment is terminated (a) due to Disability or death or (b) without Cause (and other than as a result of Participant's death or Disability) on or after the 30-month anniversary of the Grant Date (as applicable, the “Vesting Date”). Notwithstanding the foregoing, if on or before the second anniversary of a Change in Control the Participant's employment is terminated by the Company or its affiliate without Cause, all Restricted Stock Units held by such Participant shall immediately vest as of 

Exhibit 4. 17

the effective date of such termination of the Participant's employment, with such termination date the Participant's Vesting Date, subject to the Participant's execution of an effective general release and waiver of all claims against the Company, its affiliates and their respective officers and directors related to the Participant's employment, in a form acceptable to the Company at the Participant's termination of employment.
For purposes of this Agreement, “Disability” has the meaning ascribed to it in the Company's long-term disability plan, and “Cause” means (i) a material breach by the Participant of any of the Participant's obligations under any written agreement with the Company or any of its affiliates, (ii) a material violation by the Participant of any of the Company's policies, procedures, rules and regulations applicable to employees generally or to employees at your grade level, in each case, as they may be amended from time to time in the Company's sole discretion; (iii) the failure by the Participant to reasonably and substantially perform his or her duties to the Company or its affiliates (other than as a result of physical or mental illness or injury); (iv) the Participant's willful misconduct or gross negligence that has caused or is reasonably expected to result in material injury to the business, reputation or prospects of the Company or any of its affiliates; (v) the Participant's fraud or misappropriation of funds; or (vi) the commission by the Participant of a felony or other serious crime involving moral turpitude; provided that if the Participant is a party to an employment agreement with the Company or its affiliate (an “Employment Agreement”) at the time of his or her termination of employment and such Employment Agreement contains a different definition of "cause" (or any derivation thereof), the definition in such Employment Agreement will control for purposes of this Agreement.
If a Participant is terminated without Cause and, within the twelve (12)-month period subsequent to such termination of employment, the Company determines in good faith that the Participant's employment could have been terminated for Cause, subject to anything to the contrary that may be contained in the Participant's Employment Agreement at the time of his or her termination of employment, the Participant's employment will, at the election of the Company, be deemed to have been terminated for Cause, effective as of the date the events giving rise to Cause occurred.

5.Forfeiture; Restrictions. Subject to the provisions of the Plan and Section 4 of this Agreement, with respect to the Restricted Stock Units that have not become vested on the date the Participant's employment is terminated, the award of Restricted Stock Units shall expire and such unvested Restricted Stock Units shall immediately be forfeited on such date. Participant shall not sell, transfer, pledge, assign, alienate, hypothecate, or otherwise encumber or dispose of the Restricted Stock Units other than by will or the laws of descent and distribution.

6.Payment Date. Following the occurrence of a vesting event described in Section 4 of this Agreement, the Company shall pay to the Participant a lump sum cash payment equal to the Fair Market Value on the applicable Vesting Date of the applicable number shares of Common Stock no later than the sixtieth (60th) day following the Vesting Date of the Restricted Stock Units, less the amount of taxes to be withheld as provided in Section 11 of this Agreement and subject to the Participant's execution of an effective general release and waiver (without revocation) if required in Section 4 of this Agreement prior to such payment date. If cash dividends are paid with respect to the Common Stock while the Restricted Stock Units are outstanding, such dividends with respect to the number of shares of Common Stock then underlying the Restricted Stock Units shall be reflected in a notional account maintained by the Company on your behalf and any such cash dividends shall vest and be paid in cash if and at such times as the underlying Restricted Stock Units are vested and paid.

Exhibit 4. 17

7.Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party hereto upon any breach or default of any party under this Agreement, shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party or any provisions or conditions of this Agreement, shall be in writing and shall be effective only to the extent specifically set forth in such writing.

8.Integration. This Agreement and the Plan contain the entire understanding of the parties with respect to its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and the Plan. This Agreement and the Plan supersede all prior agreements and understandings between the parties with respect to the subject matter of this Agreement.

9.Governing Law; Jurisdiction and Venue. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas, without regard to the provisions governing conflict of laws, to the maximum extent practicable calls for performance and shall be performable at the offices of the Company in Houston, Harris County, Texas and venue for any dispute arising hereunder shall lie exclusively in the state and/or federal courts of Harris County, Texas and the Southern District of Texas, Houston Division, respectively.

10.Participant Acknowledgment. The Participant hereby acknowledges receipt of a copy of the Plan via online delivery at www.etrade.com. The Participant hereby acknowledges that all decisions, determinations and interpretations of the Committee in respect of the Plan, this Agreement and the Restricted Stock Units shall be final and conclusive.

11.Mandatory Withholding of Taxes. The Participant acknowledges and agrees that the Company shall deduct from the cash payment otherwise payable under this Agreement on the applicable date an amount that is equal to all federal, state and local taxes required to be withheld by the Company, as determined by the Committee.

12.Adjustments. As provided in Section 15 of the Plan, certain adjustments may be made to the Restricted Stock Units upon the occurrence of events or circumstances described in Section 15 of the Plan.
13.Restrictions Imposed by Law. The Company shall not be required to make any payment under this Agreement unless and until the Company has complied with applicable federal and state securities laws, if any.

14.Participant Employment. Nothing contained in this Agreement, and no action of the Company or the Committee with respect hereto, shall confer or be construed to confer on the Participant any right to continue in the employ of the Company or any of its Subsidiaries or interfere in any way with the right of the Company or any employing Subsidiary to terminate the Participant's employment at any time, with or without cause; subject, however, to the provisions of any employment agreement between the Participant and the Company or any Subsidiary.

15.Section 409A. Payments under this Agreement are designed to be made in a manner that is exempt from Section 409A of the Code as a "short-term deferral," and the provisions of this 

Exhibit 4. 17

Agreement will be administered, interpreted and construed accordingly (or disregarded to the extent such provision cannot be so administered, interpreted, or construed).
[Intentionally Left Blank]jmba-ex1040_698.htm

 

EXHIBIT 10.40

June 30, 2016

Rachel Phillips-Luther

Dear Rachel:

Jamba Juice started as a fruitful idea that took root in a small store in the beach town of San Luis Obispo. Today, that idea hasn’t changed: We take the best nature has to offer and make wholesome nutrition accessible to everyone by making it delicious and keeping it fun. It’s our unique blend of health and fun that makes Jamba Juice unlike any other brand.

OUR MISSION:  To be the leading healthy lifestyle brand offering consumers great tasting and differentiated products inside and outside our stores.

OUR TIMELESS PURPOSE: To inspire and simplify healthy living.

Jamba’s vision and values will shed insight into what we’re all about and what we strive to be. The acronym FIBER sums it up the best.

Fun Have FUN! Enjoy what you do.  Live a healthy, energetic life.

Integrity Act with INTEGRITY! Be honest and honorable in all you do. Communicate openly and treat others with respect.

Believe BELIEVE in yourself and Jamba! Lead with enthusiasm, passion and confidence.

Excellence Achieve EXCELLENCE in everything you do! Strive for only the best.

Results Deliver great RESULTS! Our success is measured by our results.

Offer:  I am excited to offer you the position of Senior Vice President, Chief Marketing Officer conditional on a satisfactory background check and proof of your right to work in the United States. In this capacity you will report directly to me.

Compensation:  Your gross base salary will be $285,000 per year, payable bi-weekly ($10,961.54), in each case less applicable tax withholding, and will start at an agreed upon date.

Benefits:  Medical, vision, dental, and life & disability insurance programs are available and will become effective on the first of the month after thirty (30) days of employment.  You will be eligible to accrue up to 20 days (4 weeks) of vacation in your first year of employment pursuant to our time off policy.  The details of these and other programs will be explained to you during your orientation.

Sign on Bonus: I am also pleased to provide you with a sign-on bonus of $50,000 less applicable taxes which will be paid to you on the first payroll cycle after your start date. Sign-on bonuses are subject to a repayment agreement which will be provided upon acceptance of the offer. Should your employment terminate within 18 months for any reason other than position elimination, you will be required to reimburse the Company for all or part of your sign-on bonus based on the number of months worked.

Management Incentive Plan Bonus: In addition to your regular pay, you will be eligible for a 50% target bonus pursuant to our management incentive plan adopted annually each year.  The 2016 bonus is guaranteed at $100,000 pursuant to the plan. Bonus will be paid in March 2017.

All Equity Grants will be outside the current 2013 Equity Incentive Plan as Inducement Grants under Nasdaq listing rules.

 

 

RSU Grant:  We are pleased to provide you with 5,000 RSU’s, with each restricted stock unit representing the right to receive one share of Parent’s common stock, and which restricted stock units shall vest annually over a three year period, with one third (1/3) or the total number of shares subject to this RSU vesting on each anniversary of the initial vesting date.

RSU Grant:  We are pleased to provide you with 70,000 RSU’s, with each restricted stock unit representing the right to receive one share of Parent’s common stock, and which restricted stock units shall vest upon achievement of stock price targets of $19.50, $24.00 and $28.50, respectively (the 15%, 22.5% and 30% TSR RSUs, as follows:

	
 
	
(i)
	
15% TSR RSUs.  35,000 restricted stock units shall vest if at any time prior to the third anniversary of the initial vesting date (x) the closing price of Jamba, Inc. common stock for a thirty consecutive trading day period equals or exceeds $19.50 (as adjusted in accordance for stock splits and the like) or (y) a Change of Control (as such term is defined in the applicable RSU agreement) occurs whereby Jamba, Inc.’s stockholders receive a per share consideration equaling or exceeding $19.50 (as adjusted in accordance for stock splits and the like), in each case where you remain an employee of Jamba Juice and /or its affiliates at such time; and

	
 
	
(ii)
	
22.5% TSR RSUs.  20,000 restricted stock units shall vest if at any time prior to the third anniversary of the initial vesting date (x) the closing price of Jamba, Inc. common stock for a thirty consecutive trading day period equals or exceeds $24.00 (as adjusted in accordance for stock splits and the like) or (y) a Change of Control (as such term is defined in the applicable RSU agreement) occurs whereby Jamba, Inc.’s stockholders receive a per share consideration equaling or exceeding $24.00 (as adjusted in accordance for stock splits and the like), in each case where you remain an employee of Jamba Juice and /or its affiliates at such time; and

	
 
	
(iii)
	
30% TSR RSUs. 15,000 restricted stock units shall vest if at any time prior to the third anniversary of the initial vesting date (x) the closing price of Jamba, Inc. common stock for a thirty consecutive trading day period equals or exceeds $28.50 (as adjusted in accordance for stock splits and the like) or (y) a Change of Control (as such term is defined in the applicable RSU agreement) occurs whereby Jamba, Inc.’s stockholders receive a per share consideration equaling or exceeding $28.50 (as adjusted in accordance for stock splits and the like), in each case where you remain an employee of Jamba Juice and /or its affiliates at such time

The RSUs would be granted during the first available open window after your hire date, but vesting for the time-based RSUs would be credited to your date of hire. All Equity Grants referenced above are subject to Board approval.

Restricted stock units, to the extent granted and vesting, shall be settled as soon as practicable following any vesting date of such grants, except that with respect to the performance-based RSUs granted under clauses (i) through (iii) above, such settlement shall be no earlier than the first anniversary of the applicable vesting date with respect to such RSU (in each case, the “Settlement Date”); provided, however, that if such Settlement Date would be outside of the period under the company’s insider trading policies permitting trades in such securities, then such shares shall be settled as soon as such insider trading policy would permit such trades.

Clawback Policy.  All compensation contemplated under this agreement and all cash and equity awards under the company’s incentive compensation plans will be subject to the company’s recoupment policy for incentive compensation.

Standard Severance Agreement: You will be eligible to participate in our Executive Retention and Severance Plan which would provide you with a severance benefit of twelve (12) month’s salary continuation (subject to mitigation) in the event of a qualifying termination (without cause or resignation for good reason, as defined in the plan), calculated on your then current base salary payable on the Company’s ordinary payroll schedule and subject to customary withholdings, subject to signing a release.

The relationship that exists between you and the company is for an unspecified term and considered employment at will. The relationship can be terminated by you or the company “at will” at any time either with or without cause or advance notice. This “at will” agreement constitutes the entire agreement between the employee and the company on the subject of termination, and supersedes all prior agreements and cannot be changed by future events, even though other policies and procedures may change from time to time. No one has the authority to modify this relationship except for the President and CEO or VP, Human Resources in writing and signed by you and the President and CEO or VP, Human Resources.

 

 

Rachel, I look forward to the many contributions I know you will make to the company. Upon acceptance, please acknowledge the terms of this letter by returning one signed copy to Kathy Wright at kwright@jambajuice.com.

Sincerely,

/s/ David A. Pace   

Dave Pace  

Chief Executive Officer

/s/ Rachel Phillips-Luther

Rachel Phillips-Luther

Acknowledged and Agreed

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