Document:

ex10_1.htm

Exhibit 10.1

 

New York Branch,

One William Street

New York, NY 10004

 

SECOND AMENDMENT TO AGREEMENT

 

SECOND AMENDMENT dated as of April 30, 2015 (this “Amendment”) to the committed credit facility agreement, referred to below, by and between Fuel Systems Solutions, Inc. and Impco Technologies, Inc. (as “Parent Borrower” and “Co-Borrower” respectively and together as “Borrowers”) and Impco Technologies B.V. (as “Dutch Guarantor”) and Intesa Sanpaolo S.p.A., New York Branch (the “Bank” and together with the Borrowers, the “Parties”).

 

WHEREAS, (i) the Borrowers, the Dutch Guarantor and the Bank entered into a committed credit facility dated July 10, 2009, as amended by that certain First Amendment to Agreement dated as of April 30, 2014 (collectively, the “Agreement”), and the Parent Borrower executed the relevant promissory note appended to the Agreement (the “Note”); and (ii) on April 12, 2011, the Parties entered into a Master Reimbursement Agreement (the “MRA”) to make standby letters of credit of the duration of up to one year available to the Borrowers pursuant to the Agreement;

 

WHEREAS, the parties hereto wish to amend the Agreement and the MRA as set forth herein; and,

 

NOW THEREFORE, the parties hereto agree as follows:

 

Definitions; References.  Unless otherwise specifically defined herein, each term used herein which is defined in the Agreement shall have the meaning assigned to such term in the Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Agreement shall from and after the date hereof refer to the Agreement as amended hereby.

 

Amendments to Agreement.  The Agreement and the MRA shall be amended as follows:

 

	
  

	
1.

	
The Committed Amount shall be increased from US$20,000,000 to US$30,000,000 and the definition contained in Section 1 of the Agreement and the preamble of the MRA shall be amended accordingly. Consequently the Note shall be cancelled and returned to the Parent Borrower and a new promissory note in the form of Exhibit A shall be executed.

 

	
  

	
2.

	
The Stated Maturity Date shall be extended to April 29, 2016 and Section 1, Paragraph 4 of the Agreement shall be amended accordingly.

 

Representations.  The Borrower hereby represents and warrants that (i) its representations and warranties set forth in Section 11 of the Agreement will be true on the date of, and immediately after giving effect to, this Amendment and (ii) no Events of Default set forth in Section 14 of the Agreement shall have occurred and be continuing on such date.

 

Scope.  Except as expressly amended hereby, the Agreement remains in full force and effect.

 

Counterparts; Effectiveness.  This Amendment (i) may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. and (ii) shall become effective as of the date hereof when the Bank shall have received from the Borrower a counterpart hereof signed by the Borrower or other written confirmation (in form satisfactory to the Bank) that the Borrower has signed a counterpart hereof.

 

	
Fuel Systems Solutions, Inc.

	
Second Amendment to Agreement

	1

  

  

 

GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THEREOF.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

 

 

	
INTESA SANPAOLO S.P.A.,

NEW YORK BRANCH

	 	
FUEL SYSTEMS SOLUTIONS , INC., as Parent Borrower

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Manuela Insana	 	
By:

	/s/ Pietro Bersani	 
	 	Name: Manuela Insana 

Title: VP & RM

	 	 	
Name: Pietro Bersani

Title: CFO

	 

 

 

	By:	/s/ Francesco Di Mario	 	 	 	 
	 	Name: Francesco Di Mario

Title: FVP & Head of Credit

	 	
IMPCO TECHNOLOGIES, INC., as Co-Borrower

	 

 

 

	 	 	 	
By:

	/s/ Pietro Bersani	 
	 	 	 	 	
Name: Pietro Bersani

Title: Director

	 

 

 

 

 

	 	 	
IMPCO TECHNOLOGIES B.V., as Dutch Guarantor

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	
By:

	/s/ Mariano Costamagna        	 
	 	 	 	 	Name: Mariano Costamagna

Title: Director

	 

 

	
Fuel Systems Solutions, Inc.

	
Second Amendment to Agreement

	2

  

  

 

Exhibit A

 

Master Short-Term Note

 

	Up to US$30,000,000	Date of Issue:  [_________]         

                                                                                                

MASTER SHORT-TERM NOTE

 

For value received, the undersigned (the "Borrower"), HEREBY PROMISES TO PAY to the order of Intesa Sanpaolo S.p.A., New York Branch ("Intesa Sanpaolo") the aggregate unpaid principal amount of the Loans made to the Borrower pursuant to the Agreement (as defined below) together with interest computed as set forth in the Agreement (as defined below) on the maturity date for each Loan pursuant to the Committed Credit Facility dated as of [___________](the “Agreement”), as amended from time to time, by and between the Borrower and Intesa Sanpaolo.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement

 

Each Loan advanced to the Borrower, and each payment made by Intesa Sanpaolo on account of principal hereof, shall be recorded and confirmed by Intesa Sanpaolo in its books and records. The interest rate applicable to each Loan will be shown in the Confirmation issued with respect to each Loan. Both principal and interest of any Loan are payable in lawful money of the United States of America to the account of Intesa Sanpaolo’s New York Branch No. 026005319 at Federal Reserve Bank, New York, New York in immediately available funds. In the event the Borrower does not repay the loan at maturity, Borrower authorizes Intesa Sanpaolo to charge Borrower’s accounts with Intesa Sanpaolo for any amounts due hereunder, as provided in the Agreement.

 

This Master Short-Term Note is the Note referred to in the Agreement and is entitled to the benefits thereof. The Borrower hereby waives presentment, demand, notice, protest and all other demands or notices (except such notice as required by the Agreement) in connection with the delivery, acceptance, performance, default or enforcement of this Master Short-Term Note. The Borrower agrees to pay on demand all reasonable costs and expenses, including attorneys’ costs and fees, incurred or paid by the Bank in connection with the enforcement of the Master Short-Term Note.

 

THIS MASTER SHORT-TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

	 	 	
[BORROWER]

	 
	 	 	 	 	 
	(a)	 	
By: ________DO NOT SIGN _______________

	 
	 	 	 	 	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 	 	 

 

          

	 	 	 	 	 
	(b)	 	
By: ________DO NOT SIGN _______________

	 
	 	 	 	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 	 

 

	
Fuel Systems Solutions, Inc.

	
Second Amendment to Agreement

	1EXHIBIT 10.1

 

INSIGNIA SYSTEMS, INC.

2015 EXECUTIVE OFFICER INCENTIVE BONUS PLAN

 

1.                                      Purpose.  The purpose of the Executive Officer Incentive Bonus Plan (hereinafter the “Incentive Bonus Plan” or the “Plan) is to assist Insignia Systems, Inc. (the “Company”) in retaining and motivating certain officers of the Company for its benefit and that of its shareholders.

 

2.                                      Eligibility.  The employees eligible to participate in the Incentive Bonus Plan are the individuals employed in the following positions:

 

·                  Chief Executive Officer

·                  Chief Financial Officer

·                  Chief Sales and Marketing Officer

·                  Such other executives as added from time to time by action of the Compensation Committee

 

An eligible employee must be employed on December 31, 2015 to earn a bonus, except as provided under section 11 below.

 

3.                                      Duration of Plan.  This Incentive Bonus Plan shall be effective for the Company’s fiscal year beginning January 1, 2015 and ending December 31, 2015 (the “Plan Year”).

 

4.                                      Bonus Amounts.  Each eligible employee may earn a bonus in 2015, equal to a specified percentage of his or her target variable compensation, as defined by the Compensation Committee, based upon the amount of the Company’s total EBITDA in fiscal year 2015. The calculation of total EBITDA shall be exclusive of any specific or non-recurring items, as approved by the Compensation Committee.

 

The attached Schedule A sets forth different bonus levels, and the minimum amounts of total EBITDA required to earn the bonus payable at each level. If the amount of total EBITDA earned by the Company in 2015 increases above the minimum amounts required for any level, but does not reach the minimum amounts required for the next level, the bonus percentages payable within such level shall increase proportionately.

 

5.                                      Calculation and Approval of Bonuses.  Bonus amounts shall be calculated by the Company’s CFO based on the accounting methods and procedures used in preparing the Company’s audited financial statements for 2015, subject to Section 4 of this Plan.

 

All bonus calculations shall be reviewed and approved by the Compensation Committee prior to payment.  The Compensation Committee retains discretion to increase, decrease or otherwise modify any bonus payable to any eligible employee.

 

6.                                      Payment of Bonuses.  Earned bonus payments, regardless as to form, shall be paid as soon as administratively feasible after December 31, 2015 but in no event later than March 15, 2016.  All payments shall be reduced by applicable required withholdings.

 

7.                                      Non-Assignability. An eligible employee may not assign or transfer his or her right to payment under this Plan, except to his or her heirs in the event of his or her death after December 31, 2015 and prior to payment, and his or right to payment may not be attached by his or her creditors.

 

1

 

8.                                      No Continued Employment. Nothing contained in this Incentive Bonus Plan shall be construed as guaranteeing continued employment to any eligible employee.

 

9.                                      Administration; Prior Plans. This Incentive Bonus Plan shall be administered by the Compensation Committee, which shall have the authority to construe and interpret and to determine amounts payable under the Plan in its discretion.  This Incentive Bonus Plan supersedes all prior bonus plans or any written or verbal representations regarding the subject matter of this Plan and is the entire understanding between the Company and the Participant regarding the subject matter of this Plan. Participation in this Plan during the Plan Year will not convey any entitlement to participate in this or future plans or to the same or similar bonus payments.

 

10.                               Amendment or Termination; Section 409A Compliance.  The Compensation Committee may at any time amend, suspend, or terminate this Plan, including amendment of the target percentages for each Participant and amendment only so as to ensure that no amount paid or to be paid hereunder shall be subject to the provisions of Section 409(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”).  For the avoidance of doubt, it is intended that the Incentive Bonus Plan satisfy the exemption from the application of Section 409A of the Code and the Treasury Regulations and other guidance issued thereunder and any state law of similar effect provided under Section 1.409A-1(b)(4) of the Treasury Regulations, and the Incentive Bonus Plan shall be administered and interpreted to the greatest extent possible in compliance therewith.

 

11.                               Change of Control.  Should a change of control occur, as defined in any change of control or similar agreement between the Company and the executive, and there is a subsequent termination of employment triggering the Company’s obligations under that change of control agreement, the eligible employee will be entitled to receive a pro-rata portion of the amount of bonus that would be paid based on the year-to-date financial performance, combined with the prospects for the balance of the fiscal year, as determined by the Compensation Committee.

 

12.                               Miscellaneous. This Plan and all awards shall be construed in accordance with and governed by the laws of the State of Minnesota, without regard to its conflict of law provisions. Payments under this Incentive Bonus Plan shall be unsecured, unfunded obligations of the Company. To the extent a participant has any rights under this Incentive Bonus Plan, the participant’s rights shall be those of a general unsecured creditor of the Company.

 

2

 

SCHEDULE A

 

Potential Fiscal Year 2015 Incentive Bonuses

 

	
Bonus
   Level
    	
 
    	
Minimum Total
   EBITDA
    	
 
    	
Bonus as Percentage
   of Target Variable
   Compensation
   for Executive
    	
 
    
	
A
    	
 
    	
80% of Target
    	
 
    	
20
    	
%
    
	
B
    	
 
    	
90% of Target
    	
 
    	
50
    	
%
    
	
C
    	
 
    	
100% of Target
    	
 
    	
88
    	
%
    
	
D
    	
 
    	
110% of Target
    	
 
    	
125
    	
%
    
	
E
    	
 
    	
120% of Target
    	
 
    	
180
    	
%
    

 

3

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