Document:

ex1021securitytrustdeedu

Exhibit 10.21    

 

               CONTENTS   Clause Page   1.  Definitions And Interpretation .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1   2.  Trust For The Secured Parties .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3   3.  Application Of Proceeds .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3   4.  Administrative Agent' s Actions .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4   5.  Resignation Of Administrative Agent .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9   6.  Change Of Party .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9   7.  Delegation And Additional Administrative Agents .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10   8.  Taxes, Expenses And Indemnity .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11   9.  Amendments And Releases..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12   10.  Miscellaneous .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12   11.  Remedies And Waivers, Partial Invalidity .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13   12.  Notices .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13   13.  Winding-Up Of Trust And Perpetuity Period .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18   14.  Chargors .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18   15.  Counterparts ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19   16.  Governing Law ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19   17. Enforcement..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19   Schedule 1 ORIGINAL CHARGORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21   Schedule 2 FORM OF AGENT ACCESSION UNDERTAKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22   Schedule 3 FORM OF CHARGOR ACCESSION UNDERTAKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24              

 

    

 

      2      Receiver means a receiver and manager or a receiver or, where permitted by law, an   administrative receiver of the whole or part of the Secured Property and that term will   include any appointee under a joint and/or several appointment,  in each case,   appointed under any Security Document.   Secured Property means all the assets of the Chargors which from time to time are,   or are expressed to be, the subject of the Transaction Security.   Security Documents means (a) the English Guarantee and Security Agreement, (b) the   English Share Charge, and (c) any other document governed by English law that   evidences or creates any guarantee or any Security Interest over any asset of any   member of the Group (or other person) to guarantee or secure the Secured Obligations   in favour of the Administrative Agent and/or is designated a "Security Document" for   the purposes of this Deed by the Administrative Agent and the Chargors.   Security Interest means any mortgage, pledge, lien, charge (fixed or floating),   assignment, hypothecation, set-off or trust arrangement for the purpose of creating   security, reservation of title or security interest or any other agreement or arrangement   having a similar effect.    Secured Obligations means all advances to, and debts, liabilities, obligations,   covenants and duties of, any Loan Party arising under any Loan Document or   otherwise with respect to any Loan or Letter of Credit, whether direct or indirect   (including those acquired by assumption), absolute or contingent, due or to become   due, now existing or hereafter arising and including interest and fees that accrue after   the commencement by or against any Loan Party of any proceeding under any Debtor   Relief Laws naming such Person as the debtor in such proceeding, regardless of   whether such interest and fees are allowed claims in such proceeding.   Transaction Security means any guarantee or Security Interest created or expressed to   be created in favour of the Administrative Agent pursuant to the Security Documents.   Trustee Acts means the Trustee Act 1925 and the Trustee Act 2000 of England and   Wales.    1.2 Construction   In this Deed:   (i) the rules of interpretation contained in clause 1.2 (Interpretation) of the   English Guarantee and Security Agreement shall apply to the construction   of this Deed, but as if references to the Credit Agreement were to this   Deed; and    (ii) the Parties intend that this document shall take effect as a deed   notwithstanding the fact that a Party may only execute this document   under hand.     

 

      3      1.3 Third Party Rights   (a) Unless expressly provided to the contrary in this Deed, a person who is not a   Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the   Third Parties Act) to enforce or to enjoy the benefit of any term of this Deed.   (b) Notwithstanding any term of this Deed, the consent of any person who is not a   Party is not required to rescind or vary this Deed at any time.    1.4 The Administrative Agent   The Administrative Agent is entitled to all of the rights and benefits of Article IX   (Administrative Agents and Other Agents) of the Credit Agreement, and to the extent   that Article IX (Administrative Agents and Other Agents) of the Credit Agreement is   inconsistent with the provisions of this Deed, the provisions of Article IX   (Administrative Agents and Other Agents) of the Credit Agreement shall prevail.    2.  TRUST FOR THE SECURED PARTIES   (a) The Administrative Agent declares that it shall hold the Transaction Security on   trust for those entities which are from time to time Secured Parties.   (b) Each of the Parties agrees that the Administrative Agent shall have only those   duties, obligations and responsibilities expressly specified in this Deed or in any   other Loan Document (and no others shall be implied).    3.  APPLICATION OF PROCEEDS   3.1 Order of Application   (a) All moneys from time to time received or recovered by the Administrative   Agent or any Receiver in connection with the realisation or enforcement of all   or any part of the Transaction Security shall be held by the Administrative   Agent on trust for the Secured Parties from time to time in accordance with the   provisions of this Deed to apply them at such times as the Administrative Agent   sees fit, to the extent permitted by applicable law (subject to the provisions of   this Clause), in accordance with the terms of the Credit Agreement.     (b) This Clause shall not prejudice the right of any Secured Party to recover any   shortfall from any Chargor.   3.2 Investment of Proceeds   Prior to the application of the proceeds of the Transaction Security in accordance with   Clause 3.1 (Order of Application), the Administrative Agent may, at its discretion,   hold all or part of those proceeds in an interest bearing suspense or impersonal   account(s) in the name of the Administrative Agent with such financial institution   (including itself) for so long as the Administrative Agent shall think fit or as the   Required Lenders may direct (the interest being credited to the relevant account)   pending the application from time to time of those monies at the Administrative   Agent' s discretion in accordance with the provisions of this Clause 3.     

 

      4      3.3 Currency Conversion   (a) For the purpose of or pending the discharge of any of the Secured Obligations   the Administrative Agent may convert any moneys received or recovered by the   Administrative Agent from one currency to another, at the spot rate at which the   Administrative Agent is able to purchase the currency in which the Secured   Obligations are due with the amount received.     (b) The obligations of the Chargors to pay in the due currency shall only be   satisfied to the extent of the amount of the due currency purchased after   deducting the costs of conversion.   3.4 Permitted Deductions     The Administrative Agent shall be entitled (a) to set aside by way of reserve amounts   required to meet, and (b) to make and pay, any deductions (on account of Taxes or   otherwise), which it is or may be required by any applicable law to make from any   distribution or payment made by it under this Deed, and to pay all Taxes which may   be assessed against it in respect of any of the Secured Property, or as a consequence of   performing its duties in accordance with this Deed and the Security Documents, or by   virtue of its capacity as Administrative Agent under the Security Documents and this   Deed or otherwise (other than in connection with its remuneration for performing its   duties under this Deed).     3.5 Discharge of Secured Obligations   Any payment made to the Lenders in respect of the Secured Obligations by the   Administrative Agent shall be a good discharge to the extent of that payment.   3.6 Sums received by Chargors   If any of the Chargors receives any sum which, pursuant to any of the Loan   Documents, should have been paid to the Administrative Agent, the relevant Chargor   shall procure that such sum shall promptly be paid to the Administrative Agent for   application in accordance with this Clause and pending such payment, such sum shall   be held by that Chargor on trust for the Administrative Agent.    3.7 No Security Interest   No part of this Deed is intended to or shall create a registerable Security Interest.   4.  ADMINISTRATIVE AGENT'S ACTIONS   4.1 Administrative Agent's Actions   Subject to the provisions of this Clause 4:   (a) the Administrative Agent may in the absence of any instructions to the contrary,   take such action in the exercise of any of its powers and duties under the Loan   Documents which in its absolute discretion it considers to be for the protection   and benefit of all the Secured Parties; and     

 

      5      (b) at any time after receipt by the Administrative Agent of instructions from the   Required Lenders or such other number or percentage of the Lenders as shall be   expressly provided for in the Credit Agreement (the "Relevant Lenders"),    directing the Administrative Agent to exercise all or any of its rights, remedies,   powers or discretions under any of the Loan Documents to enforce any   Transaction Security, the Administrative Agent may, and shall if so directed by   the Relevant Lenders, take any action as in its sole discretion it thinks fit to   enforce the Transaction Security.    4.2 Administrative Agent's Discretions   The Administrative Agent may:   (a) assume, unless it has, in its capacity as Administrative Agent for the Secured   Parties, received actual notice to the contrary, that (a) no Default or Event of   Default has occurred and no Chargor is in breach of or in default under its   obligations under any of the Loan Documents and (b) any right, power,   authority or discretion vested by any Loan Document in any person has not been   exercised;   (b) engage, pay for and rely on the advice or services of any lawyers, accountants,   surveyors or other experts (whether obtained by the Administrative Agent or by   any other Secured Party) whose advice or services may at any time seem   necessary, expedient or desirable;   (c) rely upon any communication or document believed by it to be genuine and, as   to any matters of fact which might reasonably be expected to be within the   knowledge of a Secured Party or a Chargor, upon a certificate signed by or on   behalf of that person; and     (d) refrain from acting in accordance with the instructions of the Relevant Lenders,    in accordance with the terms of the Credit Agreement (including bringing any   legal action or proceeding arising out of or in connection with the Loan   Documents), until it has received any indemnification and/or security that it may   in its absolute discretion require (whether by way of payment in advance or   otherwise) for all costs, losses and liabilities which it may incur in bringing such   action or proceedings.   4.3 Excluded Secured Obligations   Notwithstanding anything to the contrary expressed or implied in this Deed or any   Security Document, the Administrative Agent shall not:   (a) be bound to enquire as to (i) the occurrence or otherwise of any Default or   Event of Default or (ii) the performance, default or any breach by a Chargor of   its obligations under any of the Loan Documents;   (b) be bound to account to any other Secured Party for any sum or the profit   element of any sum received by it for its own account;     

 

      6      (c) be bound to disclose to any other person (including any Secured Party) (i) any   confidential information or (ii) any other information if disclosure would or   might in its reasonable opinion constitute a breach of any law or be a breach of   fiduciary duty;    (d) be under any obligations other than those which are specifically provided for in   this Deed and the other Loan Documents; or   (e) have or be deemed to have any duty, obligation or responsibility to, or   relationship of trust or agency with any Chargor.   4.4 Exclusion of Administrative Agent's Liability   Without prejudice to section 10.05 (Indemnification by the Borrowers) of the Credit   Agreement, unless caused by its gross negligence or wilful misconduct, as determined   by the final judgment of a court of competent jurisdiction, the Administrative Agent   shall not accept responsibility or be liable for:   (a) the adequacy, accuracy and/or completeness of any information supplied by the   Administrative Agent or any other person in connection with the Loan   Documents or the transactions contemplated in the Loan Documents, or any   other agreement, arrangement or document entered into, made or executed in   anticipation of, pursuant to or in connection with the Loan Documents;    (b) the legality, validity, effectiveness, adequacy or enforceability of any Loan   Document or the Transaction Security or any other agreement, arrangement or   document entered into, made or executed in anticipation of, pursuant to or in   connection with any Loan Document or the Transaction Security;    (c) any losses to any person or any liability arising as a result of taking or refraining   from taking any action in relation to any of the Loan Documents or the   Transaction Security or otherwise;    (d) the exercise of, or the failure to exercise, any judgment, discretion or power   given to it by or in connection with any of the Loan Documents, the Transaction   Security or any other agreement, arrangement or document entered into, made   or executed in anticipation of, pursuant to or in connection with the Loan   Documents or the Transaction Security; or   (e) any shortfall which arises on the enforcement of the Transaction Security.    4.5 No Proceedings   No Party (other than the Administrative Agent) may take any proceedings against any   officer or employee of the Administrative Agent in respect of any claim it might have   against the Administrative Agent or in respect of any act or omission of any kind by   that officer or employee in relation to any Security Document and any officer or   employee of the Administrative Agent may rely on this Clause subject to Clause 1.3   (Third Party Rights) and the provisions of the Third Parties Act.      

 

      7      4.6 Own Responsibility   It is understood and agreed by each Secured Party at all times that that Secured Party   has itself been and will continue to be solely responsible for making its own   independent appraisal of and investigation into all risks arising under or in connection   with the Loan Documents including but not limited to:   (a) the financial condition, creditworthiness, condition, affairs, status and nature of   each of the Chargors;   (b) the legality, validity, effectiveness, adequacy and enforceability of each of the   Loan Documents and the Transaction Security and any other agreement,   arrangement or document entered into, made or executed in anticipation of,    pursuant to or in connection with the Loan Documents or the Transaction   Security;    (c) whether that Secured Party has recourse, and the nature and extent of that   recourse, against any Chargor or any other person or any of their respective   assets under or in connection with the Loan Documents, the transactions   contemplated in the Loan Documents or any other agreement, arrangement or   document entered into, made or executed in anticipation of, pursuant to or in   connection with the Loan Documents;    (d) the adequacy, accuracy and/or completeness of any information provided by any   person in connection with the Loan Documents, the transactions contemplated in   the Loan Documents or any other agreement, arrangement or document entered   into, made or executed in anticipation of, pursuant to or in connection with the   Loan Documents; and   (e) the right or title of any person in or to, or the value or sufficiency of any part of   the Secured Property, the priority of any of the Transaction Security or the   existence of any Security Interest affecting the Secured Property,   and each Secured Party shall be deemed by their reliance on the terms of this Deed to   warrant and represent to the Administrative Agent that it has not relied on and will not   at any time rely on the Administrative Agent in respect of any of these matters.    4.7 No responsibility to perfect Transaction Security   Unless caused by its gross negligence or wilful misconduct, as determined by the final   judgment of a court of competent jurisdiction, the Administrative Agent shall not be   liable for any failure to:   (a) require the deposit with it of any deed or document certifying, representing or   constituting the title of any Chargor to any of the Secured Property;    (b) obtain any licence, consent or other authority for the execution, delivery,   legality, validity, enforceability or admissibility in evidence of any of the Loan   Documents or the Transaction Security;     

 

      8      (c) register, file or record or otherwise protect any of the Transaction Security (or   the priority of any of the Transaction Security) under any applicable laws in any   jurisdiction or to give notice to any person of the execution of any of the Loan   Documents or of the Transaction Security;    (d) take, or to require any of the Chargors to take, any steps to perfect its title to   any of the Secured Property or to render the Transaction Security effective or to   secure the creation of any ancillary security under the laws of any jurisdiction;   or    (e) require any further assurances in relation to any Security Document.   4.8 Insurance by Administrative Agent   (a) The Administrative Agent shall not be under any obligation to insure any of the   Secured Property, to require any other person to maintain any insurance or to   verify any obligation to arrange or maintain insurance contained in the Loan   Documents.  The Administrative Agent shall not be responsible for any loss   which may be suffered by any person as a result of the lack of or inadequacy of   any such insurance.     (b) Where the Administrative Agent is named on any insurance policy as an insured   party, it shall not be responsible for any loss which may be suffered by reason   of, directly or indirectly, its failure to notify the insurers of any material fact   relating to the risk assumed by the insurers or any other information of any   kind, unless any Secured Party shall have requested it to do so in writing and   the Administrative Agent shall have failed to do so within fourteen days after   receipt of that request.    4.9 Custodians and Nominees   The Administrative Agent may appoint and pay any person to act as a custodian or   nominee on any terms in relation to any assets of the trust as the Administrative Agent   may determine, including for the purpose of depositing with a custodian this Deed or   any document relating to the trust created under this Deed and the Administrative   Agent shall not be responsible for any loss, liability,  expense, demand, cost, claim or   proceedings incurred by reason of the misconduct, omission or default on the part of   any person appointed by it under this Deed or be bound to supervise the proceedings   or acts of any person.   4.10 Acceptance of Title   The Administrative Agent shall be entitled to accept without enquiry, and shall not be   obliged to investigate, such right and title as each of the Chargors may have to any of   the Secured Property and shall not be liable for or bound to require the relevant   Chargor to remedy any defect in its right or title.      

 

      9      4.11 Refrain from Illegality   The Administrative Agent may refrain from doing anything which in its opinion will   or may be contrary to any relevant law, directive or regulation of any jurisdiction   which would or might otherwise render it liable to any person, and the Administrative   Agent may do anything which is, in the opinion of its legal counsel, necessary to   comply with any law, directive or regulation.    4.12 Business with the Chargors   The Administrative Agent may accept deposits from, lend money to, and generally   engage in any kind of banking or other business with any of the Chargors.   4.13 Powers Supplemental   The rights, powers and discretions conferred upon the Administrative Agent by this   Deed shall be supplemental to the Trustee Acts and in addition to any which may be   vested in the Administrative Agent by general law or otherwise.    4.14 Disapplication   Section 1 of the Trustee Act 2000 shall not apply to the duties of the Administrative   Agent in relation to the trusts constituted by this Deed.  Where there are any   inconsistencies between the Trustee Acts and the provisions of this Deed, the   provisions of this Deed shall, to the extent allowed by law, prevail and, in the case of   any inconsistency with the Trustee Act 2000, the provisions of this Deed shall   constitute a restriction or exclusion for the purposes of that Act.    5.  RESIGNATION OF ADMINISTRATIVE AGENT   5.1 Resignation of Administrative Agent   (a) The Administrative Agent (in its capacity as security agent and trustee) may   resign and a new Administrative Agent may be appointed in accordance with the   provisions of section 9.10 (Successor Administrative Agent) of the Credit   Agreement.    (b) The Loan Parties party hereto will (at their own cost) take such actions and   execute such documents as are reasonably required by an Administrative Agent   that is resigning in accordance with section 9.10 (Successor Administrative   Agent) of the Credit Agreement and any successor agent so that the Transaction   Security provides for effective and perfected security in favour of any successor   Administrative Agent.   6.  CHANGE OF PARTY   6.1 Assignment   No Party may assign any of its rights or transfer any of its obligations under this Deed   except as expressly contemplated by this Deed or as may be required by law except as   a result of a transaction pursuant to section 7.04 (Fundamental Changes) of the Credit   Agreement.     

 

      10      6.2 Change of Administrative Agent   Without prejudice to section 9.10 (Successor Administrative Agent) of the Credit   Agreement, any person which is appointed as the Administrative Agent after the date   of this Deed in accordance with the provisions of section 9.10 (Successor   Administrative Agent) of the Credit Agreement, shall execute and deliver to the   outgoing Administrative Agent an Agent Accession Undertaking and, with effect from:    (a) the date of acceptance by the outgoing Administrative Agent; and   (b) subject to all necessary steps having been taken to transfer and/or, as the case   may be, retake (and duly perfect, as required) the Transaction Security   (including, without limitation, delivery (and/or filing, as applicable) of all   necessary corporate authorities, legal opinions, notices, acknowledgements,    certificates of discharge, transfer certificates, share certificates or any other   documents of title) or as otherwise stipulated by the Credit Agreement:    (i) the outgoing Administrative Agent shall be discharged from further   obligations under this Deed and their respective rights against one another   shall be cancelled (except in each case for those rights which arose prior   to such date, its rights under Clause 4 (Administrative Agent' s Actions)   and Clause 8 (Taxes, Expenses and Indemnity); and   (ii) the replacement Administrative Agent shall assume the same obligations,   and become entitled to the same rights, as an Administrative Agent under   this Deed as if it had been an original party to this Deed.    6.3 Additional Chargor   The Chargors shall procure that any Additional Chargor shall execute and deliver to   the Administrative Agent a Chargor Accession Undertaking and with effect from the   date of acceptance by the Administrative Agent, the Additional Chargor will become a   party to this Deed.   6.4 Credit Agreement   The Parties acknowledge section 9.18 (Acknowledgement of Security Trust Deed) of the   Credit Agreement.    7.  DELEGATION AND ADDITIONAL ADMINISTRATIVE AGENTS   7.1 Delegation   (a) The Administrative Agent or any Receiver may delegate by power of attorney or   in any other manner to any person any right, power or discretion exercisable by   it under this Deed.   (b) Any such delegation may be made upon any terms (including power to sub-   delegate) which the Administrative Agent or any Receiver may think fit.    (c) Neither the Administrative Agent nor any Receiver will be in any way liable or   responsible for any loss or liability arising from any act, default, omission or     

 

      11      misconduct on the part of any Delegate, except in the case of the Administrative   Agent, if such loss or liability resulted from the gross negligence, bad faith, or   wilful misconduct of the Administrative Agent, as determined by the final, non-   appealable judgment of a court of competent jurisdiction.   7.2 Additional Administrative Agents   (a) The Administrative Agent may at any time appoint (and subsequently remove)   any person to act as a separate Administrative Agent or as a co-Administrative   Agent jointly with it (i) if it considers that appointment to be in the interests of   the Secured Parties or (ii) for the purposes of conforming to any legal   requirements, restrictions or conditions which the Administrative Agent deems   to be relevant or (iii) for obtaining or enforcing any judgment in any   jurisdiction, and the Administrative Agent shall give prior notice to the   Chargors of any such appointment.     (b) Any person so appointed (subject to the terms of this Deed) shall have the   rights, powers and discretions (not exceeding those conferred on the   Administrative Agent by this Deed) and the duties and obligations as are   conferred or imposed by the instrument of appointment.     (c) The remuneration the Administrative Agent may pay to any person, and any   costs and expenses incurred by that person in performing its functions pursuant   to that appointment shall, for the purposes of this Deed, be treated as costs and   expenses incurred by the Administrative Agent.   8.  TAXES, EXPENSES AND INDEMNITY   (a) Each Chargor must pay, or on an indemnity basis reimburse, any and all   amounts for which it is liable in accordance with, and solely to the extent   required by, sections 2.08 (Interest), 3.01 (Taxes), 10.4 (Attorney Costs and   Expenses), 10.05 (Indemnification by the Borrowers) and 10.19 (Judgment   Currency) of the Credit Agreement.    (b) And any amount due but unpaid shall carry interest at the rate and on the basis   mentioned in Clause 10.3 (Interest).      

 

      12      9.  AMENDMENTS AND RELEASES   9.1 Amendments   Unless the provisions of any Loan Document expressly provide otherwise, the   Administrative Agent may, if authorised pursuant to the terms of the Credit   Agreement, amend the terms of, waive any of the requirements of, or grant consents   under, this Deed or any of the Security Documents, any such amendment, waiver or   consent being binding on all the parties to this Deed and the Administrative Agent   shall be under no liability whatsoever in this respect unless caused by its own gross   negligence or wilful misconduct, as determined by the final judgment of a court of   competent jurisdiction.   9.2 Releases   Upon a disposal of any of the Secured Property:   (a) pursuant to the enforcement of the Transaction Security by a Receiver or the   Administrative Agent; or    (b) if that disposal is permitted under the Loan Documents,    the Administrative Agent shall (at the cost of the Chargors) release that property from   the Transaction Security and is authorised to execute, without the need for any further   authority from the Secured Parties, any release of the Transaction Security or other   claim over that asset and to issue any certificates of non-crystallisation of floating   charges that may be required or desirable.   10.  MISCELLANEOUS   10.1 Secured Parties' Information   The Secured Parties shall provide to the Administrative Agent, such information as the   Administrative Agent may reasonably specify as being necessary or desirable to enable   the Administrative Agent to perform its functions as Administrative Agent.      10.2 Chargors’ Waiver   Each of the Chargors hereby waives, to the extent permitted under applicable law, all   rights it may otherwise have to require that the Transaction Security be enforced in   any particular order or manner or at any particular time or that any sum received or   recovered from any person, or by virtue of the enforcement of any of the Transaction   Security or any other security, which is capable of being applied in or towards   discharge of any of the Secured Obligations is so applied.   10.3 Interest   If a Chargor fails to pay any sums on the due date for payment of that sum the   Chargor shall pay interest on such sum (before and after any judgment and to the   extent interest at a default rate is not otherwise being paid on that sum) from the date   of demand until the date of payment calculated and compounded in accordance with   the provisions of section 2.08 (Interest) of the Credit Agreement.     

 

      13      11.  REMEDIES AND WAIVERS, PARTIAL INVALIDITY   11.1 Remedies and Waivers   (a) No failure to exercise, or any delay in exercising, on the part of any Secured   Party, any right or remedy under this Deed shall operate as a waiver of that   right or remedy, nor shall any single or partial exercise of any right or remedy   prevent any further or other exercise thereof or the exercise of any other right   or remedy.     (b) The rights and remedies provided in this Deed are cumulative and not exclusive   of any rights or remedies provided by law.   11.2 Partial Invalidity   If,  at any time, any provision of this Deed is or becomes illegal, invalid or   unenforceable in any respect under the law of any jurisdiction, neither the legality,   validity or enforceability of the remaining provisions of this Deed nor of such   provision under the laws of any other jurisdiction shall in any way be affected or   impaired thereby.   12.  NOTICES   12.1 Communications in Writing   Each communication to be made under or in connection with this Deed shall be made   in writing and, unless otherwise stated, shall be made by email, fax or letter.   12.2 Addresses   (a) Any notice or other communication herein required or permitted to be given to a   party to this Deed shall be sent to the relevant party’s address set out in Clause   12.2(b) or as set forth in the Credit Agreement or any substitute address, fax   number or department or officer as the relevant party may notify to the   Administrative Agent (or the Administrative Agent may notify to the other   parties, if a change is made by the Administrative Agent) by not less than five   business days'  notice.   (b) For the purposes of Clause 12.2(a), the address of each Chargor shall be:   Avaya UK Holdings Limited   To:   Legal Department (UK)   Ena Hunter – Corporate Counsel, UK and Ireland   Avaya House     

 

      14      Cathedral Hill   Guildford   Surrey GU2 7YL   Tel: 01483 308332   Email: ehunter@avaya.com   with a copy to:   Legal Department (US)   Adele Freedman, VP and Deputy GC   c/o Avaya Inc.   4655 Great American Parkway   Santa Clara, CA 95054   Tel: (408) 562-3400     Email: afreedman@avaya.com         Avaya UK   To:     

 

      15      Legal Department (UK)   Ena Hunter – Corporate Counsel, UK and Ireland   Avaya House   Cathedral Hill   Guildford   Surrey GU2 7YL   Tel: 01483 308332   Email: ehunter@avaya.com   with a copy to:   Legal Department (US)   Adele Freedman, VP and Deputy GC   c/o Avaya Inc.   4655 Great American Parkway   Santa Clara, CA 95054   Tel: (408) 562-3400     Email: afreedman@avaya.com         Avaya International Sales Limited   To:   The Atrium, Block A, Blackthorn Road, Sandyford Business   Park, Sandyford, Dublin 18   Attention: Michael Murray   mmurray@avaya.com   with a copy to:     

 

      16       Legal Department (US)   Adele Freedman, VP and Deputy GC   c/o Avaya Inc.   4655 Great American Parkway   Santa Clara, CA 95054   Tel: (408) 562-3400     Email: afreedman@avaya.com      Legal Department (UK)   Ena Hunter – Corporate Counsel, UK and Ireland   Avaya House   Cathedral Hill   Guildford   Surrey GU2 7YL   Tel: 01483 308332   Email: ehunter@avaya.com      Avaya Deutschland GmbH   To:   Theodor-Heuss-Allee 112, 60486 Frankfurt am Main, Germany   Attention: Wolfgang Zorn   Area Controller DACH   with a copy to:   Adele Freedman   c/o Avaya Inc.     

 

      17      4655 Great American Parkway   Santa Clara, CA 95054   U.S.A.   Michael Lee   ROPES & GRAY LLP   Prudential Tower, 800 Boylston Street   Boston, MA 02199-3600   U.S.A.      12.3 Delivery   (a) Any communication or document made or delivered by one person to another   under or in connection with this Deed will only be effective:     (i) if by way of fax or email, when received in legible form; or   (ii) if by way of letter, when it has been left at the relevant address or, as the   case may be, five days after being deposited in the post postage prepaid in   an envelope addressed to it at that address.    (b) Any communication or document to be made or delivered to the Administrative   Agent under or in connection with this Deed shall be effective only when   actually received by the Administrative Agent and then only if it is expressly   marked for the attention of the department or officer identified with the   Administrative Agent’s communication details (or any substitute department or   officer as the Administrative Agent shall specify for this purpose).    12.4 Notification of address, fax number and email address   Promptly upon receipt of notification of an address, fax number and email address or   change of address, email or fax number pursuant to Clause 12.2 (Addresses) or   changing its own address, email or fax number, the Administrative Agent shall notify   the other parties.   12.5 English language   (a) Any notice given under or in connection with this Deed must be in English.    (b) All other documents provided under or in connection with this Deed must be:   (i) in English; or   (ii) if not in English, and if so required by the Administrative Agent,   accompanied by a certified English translation and, in this case, the     

 

      18      English translation will prevail unless the document is a constitutional,    statutory or other official document.    13.  WINDING-UP OF TRUST AND PERPETUITY PERIOD   13.1 Winding up of Trust   If the Administrative Agent determines that (a) all of the Secured Obligations and all   other obligations secured by each Security Document have been fully and finally   discharged and (b) none of the Secured Parties is under any commitment, obligation or   liability (whether actual or contingent) to make advances or provide other financial   accommodation to any Loan Party pursuant to the Loan Documents, the trusts set out   in this Deed shall be wound up.  At that time the Administrative Agent shall, at the   request of and at the sole cost of the Chargors, release, without recourse or warranty,   all of the Transaction Security then held by it and the rights of the Administrative   Agent under each of the Security Documents, at which time each of the Administrative   Agent, the Secured Parties and the Chargors shall be released from their obligations   under this Deed (save for those which arose prior to such winding-up).   13.2 Perpetuity Period   The perpetuity period for the trusts in this Deed is 125 years from the date of this   Deed.   14.  CHARGORS   (a) All communications under this Deed to or from a Secured Party must be sent   through the Administrative Agent.   (b) Each Chargor (other than Avaya UK Holdings Limited) irrevocably appoints   Avaya UK Holdings Limited to act as its agent:   (i) to give and receive all communications under the Security Documents or   this Deed;   (ii) to supply all information concerning itself to any Secured Party; and   (iii) to agree and sign all documents under or in connection with this Deed   without further reference to any Chargor; this includes any amendment or   waiver of this Deed which would otherwise have required the consent of   the Chargors.   (c) Avaya UK Holdings Limited hereby accepts the appointment under Clause   14(b).   (d) Any communication given to Avaya UK Holdings Limited in connection with   this Deed will be deemed to have been given also to the other Chargors.   (e) The Administrative Agent may assume that any communication made by Avaya   UK Holdings Limited is made with the consent of each Chargor.     

 

      19      15.  COUNTERPARTS   This Deed may be executed in any number of counterparts and all of those   counterparts taken together shall be deemed to constitute one and the same instrument.   16.  GOVERNING LAW   This Deed and any non-contractual obligations arising out of or in connection with it   are governed by English law.   17. ENFORCEMENT   17.1 Jurisdiction of English courts   (a) The courts of England have exclusive jurisdiction to settle any dispute arising   out of or in connection with this Deed (including a dispute relating to the   existence, validity or termination of this Deed or any non-contractual obligation   arising out of or in connection with this Deed) (a "Dispute").   (b) The parties to this Deed agree that the courts of England are the most   appropriate and convenient courts to settle Disputes and accordingly no party   will argue to the contrary.   (c) This Clause 17.1 is for the benefit of the Secured Parties only. As a result, no   Secured Party shall be prevented from taking proceedings relating to a Dispute   in any other courts with jurisdiction.  To the extent allowed by law, the Secured   Parties may take concurrent proceedings in any number of jurisdictions.    17.2 Waiver of immunity    (a) Each Chargor irrevocably and unconditionally:   (i) agrees not to claim any immunity from proceedings brought by a   Secured Party against it in relation to this Deed and to ensure that no   such claim is made on its behalf;   (ii) consents generally to the giving of any relief or the issue of any   process in connection with those proceedings; and   (iii) waives all rights of immunity in respect of it or its assets.    17.3 Service of process   (a) Without prejudice to any other mode of service allowed under any relevant law,   each Chargor not incorporated in England and Wales irrevocably appoints   Avaya UK Holdings Limited as its agent under this Deed for service of process   in any proceedings before the English courts in connection with this Deed (and   Avaya UK Holdings Limited, by its execution of this Deed, accepts that   appointment).   (b) If any person appointed as process agent under this Clause is unable for any   reason to so act, the Avaya UK Holdings Limited (on behalf of all the Chargors)   must immediately (and in any event within 3 Business Days of such event taking     

 

      20      place) appoint another agent on terms acceptable to the Administrative Agent.   Failing this,  the Administrative Agent may appoint another process agent for   this purpose.   (c) Each Chargor agrees that failure by a process agent to notify it of any process   will not invalidate the relevant proceedings.    17.4 Waiver of trial by jury   EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF   ANY CLAIM OR CAUSE OF ACTION IN CONNECTION WITH THIS DEED   OR ANY TRANSACTION CONTEMPLATED BY THIS DEED. THIS DEED   MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY THE COURT.      THIS DEED has been executed and delivered as a deed on the date stated at the beginning of   this Deed.     

 

      21      SCHEDULE 1    ORIGINAL CHARGORS   (1) AVAYA UK HOLDINGS LIMITED (registered number 04036659) with its   registered office at 25 Moorgate, London EC2R 6AY.   (2) AVAYA UK (registered number 03049861) with its registered office at Avaya   House, Cathedral Hill, Guildford, Surrey GU2 7YL.    (3) AVAYA INTERNATIONAL SALES LIMITED a limited liability company   incorporated under the laws of Ireland.   (4) AVAYA DEUTSCHLAND GMBH a limited liability company (Gesellschaft mit   beschränkter Haftung) existing under the laws of Germany.        

 

      22      SCHEDULE 2    FORM OF AGENT ACCESSION UNDERTAKING   To: [Insert full name of current Administrative Agent], for itself and as agent and trustee   for the Secured Parties (as such term is defined in the Security Trust Deed (as defined   below)); and    THIS UNDERTAKING is made on [date] by [new Administrative Agent] (the Acceding   Agent) in relation to the Security Trust Deed (the Security Trust Deed) dated [●], between,   inter alios, [●] as current Administrative Agent and the Secured Parties named therein.    Terms defined in the Security Trust Deed shall bear the same meanings when used in this   Undertaking.   In consideration of the Acceding Agent being accepted for the purposes of the Security Trust   Deed, the Acceding Agent hereby confirms that, as from [date], it intends to be party to the   Security Trust Deed as the Administrative Agent, undertakes to perform all the obligations   expressed in the Security Trust Deed to be assumed by the Administrative Agent and agrees   that it shall be bound by all the provisions of the Security Trust Deed, as if it had been an   original party to the Security Trust Deed.   This Undertaking shall be governed by and construed in accordance with English law.    THIS UNDERTAKING has been entered into on the date stated above.    Acceding Administrative Agent      By:    Address for Notices:    Fax:    For attention of      

 

      23         Accepted and agreed by:       -----------------------------------------------   For and on behalf of [existing Administrative Agent]   By:   Date:        

 

      24      SCHEDULE 3    FORM OF CHARGOR ACCESSION UNDERTAKING   To: [   ] as Administrative Agent   From: Avaya UK Holdings Limited and [Proposed Additional Chargor]   Date: [               ]   Security Trust Deed   dated [         ] 2015 (the Security Trust Deed)   We refer to the Security Trust Deed.  This is a Chargor Accession Undertaking.    1. [Name of company] of [address/registered office] (the Additional Chargor) agrees to   become a party under the Security Trust Deed and to be bound by the terms of the   Security Trust Deed as an Additional Chargor.    2. With effect from the date of this Deed:   (a) the Additional Chargor will become a party to the Security Trust Deed as a Chargor;    (b) the Additional Chargor will be bound by all the terms of the Security Trust Deed   which are expressed to be binding on a Chargor;   (c) the Security Trust Deed will be read and construed for all purposes as if the   Additional Chargor had been an original party in the capacity of a Chargor;   (d) any reference in the Security Trust Deed to "this Deed" and similar phrases will   include this Chargor Accession Undertaking; and   (e) Avaya UK Holdings Limited, for itself and as agent for each of the Chargors, agrees   to all matters provided for in this Chargor Accession Undertaking.    3. It is intended that this document takes effect as a deed notwithstanding the fact that a   party may only execute this document under hand.   4. This Chargor Accession Undertaking has been executed and delivered as a deed on   the date stated at the beginning of this Chargor Accession Undertaking and is   governed by English law.     

 

   25   1243209-LONSR01A - MSW      The Additional Chargor      Executed as a deed by   ) ... .. .. ... .. .. ... .. .. .. ... .. .. .. . ... .. .. . Director   [                               ]  )    acting by    )   and     ) ... .. .. ... .. .. ... .. .. .. ... .. .. .. . ... ..... Director/Secretary      Chargors   Executed as a deed by   )      Avaya UK Holdings Limited )   ... .. .. ... .. .. ... .. .. .. ... .. .. .. . ... .. .. . Director   (for itself and as agent for each  )   of the Chargors party to  )   the Security Trust Deed   )   referred to in this Deed)  )  ... .. .. ... .. .. ... .. .. .. ... .. .. .. . ... ..... Director/Secretary   acting by    )         The Administrative Agent       [                               ]      By:FGL 2015 Severance Plan Exhibit 10.3

	
	
	

FIDELITY & GUARANTY LIFE
2015 SEVERANCE PLAN 

Effective as of June 16, 2015

Plan Document/Summary Plan Description

HIGHLIGHTS

This booklet describes the Fidelity & Guaranty Life 2015 Severance Plan (“Severance Plan”) and is the plan document/summary plan description for the Severance Plan.  This booklet is a reference tool for individuals who are employed by Fidelity & Guaranty Life Business Services, Inc. (“Company”), whose employment with the Company terminates as set forth herein on or after June 16, 2015 (“Effective Date”), and who are eligible for the Severance Plan as described in Section 1. This booklet provides information about severance payments and benefits that may be provided under the Severance Plan. The Severance Plan supersedes all other severance policies and procedures maintained by the Company and its affiliates at or prior to the Effective Date. 

The following are highlights of this booklet:

		
	•
	Severance Pay and Benefits.  Under the Severance Plan, you may become eligible for severance pay.  In addition, if your termination occurs in connection with a Change in Control, you may be eligible for a COBRA subsidy (Section 2). 

		
	•
	Contact Information.  For contact information, see Appendix A.

		
	•
	Other Severance Plan Information.  For other important Severance Plan information, including claims procedures and a statement of your rights under ERISA, see Appendix B.

Section 1: Severance Plan Eligibility and Participation 

In order to participate in the Severance Plan, you must meet the Eligibility and Participation requirements described below.

Eligibility

As determined by the plan administrator in its discretion (and except as provided below), any employee who meets both of the following criteria is eligible to participate in the Severance Plan, subject to the terms and conditions described in this booklet:

		
	•
	The employee is employed by the Company as a regular full-time or regular part-time employee; and

		
	•
	Either: 

•The employee’s employment is involuntarily terminated by the Company other than for Cause (as defined below) as the result of an operational change or restructuring (as determined by the Company) at any time (“Non-Change in Control Context”); or

•The employee’s employment is involuntarily terminated other than for Cause, or the employee’s position is eliminated and he or she is not offered Comparable Employment (as defined below) by the Company, in either case, within 12 months following a Change in Control (as defined in the Fidelity & Guaranty Life 2013 Stock Incentive Plan) (“Change in Control Context”).

For the avoidance of doubt, an otherwise eligible employee may receive a severance benefit in either the Non-Change in Control Context or the Change in Control Context, but not in both.

Otherwise eligible employees who meet any of the criteria below are ineligible for the Severance Plan:

		
	•
	The Chief Executive Officer of the Company.

		
	•
	In the Non-Change in Control Context, any employee who has an employment agreement with severance provisions.  In the Change in Control Context, any employee who has an employment agreement with severance provisions under which the severance payment is greater than under the Severance Plan.  

		
	•
	In a Non-Change of Control Context any employee who has failed to remain in good standing or whose employment is terminated for performance-related reasons.

		
	•
	In the Change in Control Context, any employee who is offered Comparable Employment (as defined below), or who expressly accepts in writing any alternative employment (even if not Comparable Employment), with the Company, any of its affiliates, or an acquirer.  

		
	•
	Any employee who the Company determines reasonably and in good faith has engaged in conduct that results in or would have resulted in dismissal.  Such employee will forfeit all rights under the Severance Plan.  Such prohibited conduct includes, but is not limited to, conduct prohibited by the Separation Agreement and General Release (the “Release Agreement”) and conduct prohibited during the Notice Period in the Change of Control Context as described below.

		
	•
	Any employee who does not return all material Company property within a reasonable time period requested by the Company.

		
	•
	Any employee who resigns from employment before the termination date designated by the Company.   

Participation

Separation Agreement and General Release

If you are eligible to participate in the Severance Plan, you will only be entitled to the severance pay and benefits described in this booklet if you sign, return and do not revoke the Release Agreement in the form provided by the Company.  

In the Non-Change in Control Context, the Release Agreement will be provided to you upon your involuntary termination of employment.  

In the Change in Control Context, the Release Agreement will be provided to you at the beginning of the sixty (60) day period commencing on the date on which the Company notifies you in writing that you will be involuntarily terminated or your position will be eliminated (the “Notice Period”).  

The Release Agreement will provide, among other things, for the general release of any and all claims that you may have against the Company and its officers, directors, employees, and agents, whether known or unknown, and whether at common law or arising under any statute, and also will require you to keep the terms of the release confidential, subject to any carve outs required by law. 

To participate in the Severance Plan, your Release Agreement must be signed and returned within 45 days of the date you receive it (or within 21 days, if applicable based on certain laws), but in no event earlier than the date you terminate employment. Signed Release Agreements must be returned to:

SVP Human Resources
Fidelity & Guaranty Life
1001 Fleet Street, 6th Floor
Baltimore, Maryland 21202

The Company will execute the signed Release Agreements it receives and return fully executed file copies.  

After you sign and return your Release Agreement to the address listed above, you may revoke it in writing within seven days after it is signed and returned.  Otherwise, you are not allowed to revoke your Release Agreement.  Revocations must be returned to the address listed above.  After the seven day period is complete, Release Agreements become irrevocable.  

If you do not sign and return your Release Agreement within the 45 day (or 21 day) period described above, or if you revoke the Release Agreement, you will not become a participant in the Severance Plan, and the payments and benefits discussed in this booklet will not apply to you.   

Conduct During the Notice Period (Change in Control Context Only)

If your employment is involuntarily terminated in the Change in Control Context, during your Notice Period you will remain employed by the Company and may not commence employment with any other employer. You will be subject to all of the obligations, rules, policies and practices of the Company, including the obligation to act solely in the best interest of the Company. During this period, you will perform such duties 

and tasks as the Company may assign you, provided, however, that the Company reserves the right to have you stay away from the Company’s premises and not contact any other Company employees or clients. 

Section 2: Severance Payments and Benefits

Amount and Timing of Severance Payments and Benefits

Assuming you meet the criteria of this Severance Plan set forth in Section 1, you are eligible to receive severance pay as follows. 

Non-Change in Control Context

Subject to execution and non-revocation of the Release Agreement, if pursuant to Section 1 you become eligible for severance pay in the Non-Change in Control Context, you will be entitled to receive severance in a lump sum payment equal to two (2) weeks of base salary for each full year of continuous service (measured from your date of hire), with a minimum payment of four (4) weeks. Severance pay will be based on your base salary at your termination of employment, and credit will not be given for partial years of service. 

If you have an employment agreement with the Company which includes severance provisions, the Severance Plan will not apply. 

Change in Control Context

Subject to the execution and non-revocation of the Release Agreement, if pursuant to Section 1 you become eligible for severance pay in the Change in Control Context, you will receive the following severance benefit:

	
				
	Position
	Minimum Severance
	Notice Period
	Bonus

	Manager (Gr. 16) and below
	4 weeks
	60 days
	Pro-Rata Target Bonus

	Directors & AVPs (Gr. 17 - 18)
	12 weeks
	60 days
	Pro-Rata Target Bonus

	Vice Presidents (VP & VP II)
	26 weeks
	60 days
	Pro-Rata Target Bonus

	Sr. Vice Presidents & Exec. Vice Presidents
	52 weeks 
	60 days
	Pro-Rata Target Bonus plus Annual Target Bonus

Minimum Severance (Base Salary).  You will receive a severance payment equal to the greater of (i) two (2) weeks of base salary for each full year of continuous service (measured from your date of hire) or (ii) the minimum severance period provided in the chart above in addition to payment of regular compensation during the 60-day notice period provided in the chart above.

Pro-Rata Target Bonus.  The Pro-Rata Target Bonus means an amount equal to the product of (i) the annual cash bonus that would be paid to you at your target bonus level in respect of the entire annual performance period of the Company in which your termination date occurs (the "Target Bonus Amount"), multiplied by (ii) a fraction, (x) the numerator of which is the number of whole days  elapsed between the beginning of the annual performance period of the Company in effect as of such termination date and the termination date and (y) the denominator of which is 365; provided, that any reduction in the employee's target annual bonus following the Change in Control that gives rise to the failure of a position to constitute Comparable Employment shall be disregarded for the purpose of determining the Actual Bonus Amount.  

Annual Target Bonus.  The Annual Target Bonus means an amount equal to the target annual bonus for the fiscal year in which the Senior Vice President or Executive Vice President experiences a termination other than for Cause or failure to be offered Comparable Employment (without regard to any reduction thereto that gives rise to the failure of a position to constitute Comparable Employment).

COBRA Subsidy.  If you elect to enroll in COBRA coverage, you will also receive a COBRA subsidy for your medical, dental, and vision coverage for the number of weeks upon which the base salary portion of your severance payment is determined, or if earlier, when you become eligible to enroll in an employer sponsored health plan due to new employment.  

Employees with Employment Agreements.  In the Change in Control Context, if you have an employment agreement with the Company which includes severance provisions, your payment from the Severance Plan (if any) will be subject to the following: 

		
	•
	If your employment agreement provides greater total payments than the total payments due under the Severance Plan, you will not be eligible for the Severance Plan. 

		
	•
	If the Severance Plan provides a greater total payment than the total amount of payments due under your employment agreement, you will receive the payment due under your employment agreement, plus an additional payment under the Severance Plan that is equal to (1) the full payment otherwise due under the Severance Plan, minus (2) the total payment due under your employment agreement. 

General Provisions

Timing of Severance Payment; Withholding.  Your payment will be made within approximately four (4) weeks following the return of your Release Agreement, but in no event later than 21⁄2 months after the end of the calendar year in which your employment terminates.  Severance pay will be reduced by taxes, any other amounts owed to the Company and any legally required deductions. 

“Cause”

“Cause” as to any employee who is party to an employment agreement with the Company or a subsidiary or affiliate has the same meaning as set forth in such employment agreement or, if not set forth therein or in the absence of an employment agreement “Cause” means you (i) have been convicted, indicted for, or entered a plea of nolo contendere to, any felony or any other act involving fraud, theft, misappropriation, dishonesty, or embezzlement, (ii) have committed intentional and willful acts of misconduct that materially impair the goodwill or business of the Company or cause material damage to its property, goodwill, or business, or (iii) have willfully refused to, or willfully failed to, perform in any material respect his or her duties; provided, however, that no such termination for Cause under clause (iii) will be effective unless you do not cure such refusal or failure to the Company’s reasonable satisfaction as soon as practicable after the Company provides you written notice identifying such refusal or failure (and, in any event, within ten (10) calendar days after receipt of such written notice). The determination as to whether “Cause” has occurred shall be made by the plan administrator in good faith and using reasonable discretion, and the plan administrator shall have the authority to waive the consequences under the Severance Plan of the existence of “Cause.” A termination for Cause will be deemed to include a determination made reasonably and in good faith following your termination of employment for any reason that circumstances existed prior to such termination sufficient for the Company or one of its subsidiaries or affiliates to have terminated your employment for Cause. 

“Comparable Employment” 

“Comparable Employment” as to any employee who is party to an employment agreement with the Company or a subsidiary or affiliate will mean any post-Change in Control position that would not entitle you to terminate employment for Good Reason, as defined in such employment agreement or, if not set forth therein or in the absence of an employment agreement, Comparable Employment means:

(a)the post-Change in Control position provides at least 85% of your pre-Change in Control base salary, 

(b)If you report directly to the Chief Executive Officer, at least 85% of your pre-Change in Control target bonus opportunity; and

(c)the duties of the post-Change in Control position will be performed primarily at a worksite that is no more than 50 miles from your primary worksite at the time of the Change in Control;

provided, however, that in no event will the occurrence of any such condition fail to constitute Comparable Employment unless (1) you give notice to the plan administrator of the existence of the condition giving rise to the failure of a position to constitute Comparable Employment within thirty (30) days following the date you first become aware of its existence, and (2) the Company fails to substantially cure the condition within thirty (30) days after the plan administrator's receipt of such notice. 

Notwithstanding the foregoing, employment meeting these criteria is considered Comparable Employment regardless of whether you apply for and are offered a position, or if you are offered a position without applying for it.

Internal Revenue Code Section 409A Compliance

The Company intends that the payments and benefits to which you could become entitled in connection with a termination of employment shall comply with or meet an exemption from 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the Company will interpret the Severance Plan in accordance with that intent. In this regard, notwithstanding anything in this Severance Plan to the contrary, all cash amounts that become payable under this Severance Plan shall be paid no later than the later of 2 1⁄2 months after the end of the calendar year, or 2 1⁄2 months after the end of the Company’s fiscal year, in which such amounts are earned or become payable, shall qualify for the exception for “separation pay” set forth in Section 1.409A-1(b)(9) of the Treasury Regulations, or shall comply with Section 409A of the Code. Payments subject to Section 409A of the Code that are due upon termination of employment shall be made only upon “separation from service within the meaning of Section 409A(a)(2)(A)(i) of the Code, and to the extent necessary to avoid accelerated taxation or a tax penalty, shall be subject to the 6-month payment delay described in Section 409A(a)(2)(B)(i) of the Code if you are a “specified employee” as described therein. The Company makes no representation that any or all of the payments described in the Severance Plan will be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to any such payment.

Internal Revenue Code Section 280G

Treatment of Payments.  Notwithstanding the provisions of the Severance Plan, in the event that any payment or benefit received or to be received by an employee in connection with a Change in Control or the termination of the employee's employment (whether pursuant to the terms of the Severance Plan or any other plan, arrangement or agreement with the Company or any of its affiliates) (all such payments and benefits, "Total Payments") would be subject (in whole or part) to any excise tax imposed under Section 4999 of the Code (the "Excise Tax"), then the payment or benefit to be received by the employee shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but only if the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income 

taxes on such reduced Total Payments) is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the employee would be subject in respect of such unreduced Total Payments).

Ordering of Reduction.  In the case of a reduction in the Total Payments pursuant to this Section, the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata.

 
Appendix A: Contact Information

For questions about benefits generally, and for questions about the Severance Plan specifically, you may contact:

SVP Human Resources
Fidelity & Guaranty Life
1001 Fleet Street, 6th Floor
Baltimore, Maryland 21202
410-895-0070

Appendix B:  Other Important Severance Plan Information

Plan Name and Type

The name of this severance plan is the Fidelity & Guaranty Life 2015 Severance Plan.  The Severance Plan is considered a welfare benefit plan under the Employee Retirement Income Security Act of 1974, as amended (ERISA).

Name and Address of Employer

The Severance Plan is sponsored by:

Fidelity & Guaranty Life Business Services, Inc.
1001 Fleet Street
Baltimore, Maryland 21202

Employer and Plan Identification Number

The Internal Revenue Service has assigned the Company the following Employer Identification Number: 43-1914674.  The ERISA plan number assigned to the Severance Plan is 505.

Plan Administrator/Named Fiduciary

The Company is the plan administrator and named fiduciary of the Severance Plan.  Administration of the Severance Plan is the responsibility of the plan administrator.  The plan administrator has delegated many of its functions to the Human Resources Department. You may also write to the plan administrator at the following address:

SVP Human Resources
Fidelity & Guaranty Life
1001 Fleet Street, 6th Floor
Baltimore, Maryland 21202

Fiscal Year of the Severance Plan

The Severance Plan and its records are kept on a plan-year basis.  The first plan year was a short plan year that began on June 16, 2015 and will end on December 31, 2015.  The final plan year ends on December 31st of the year in which the final benefits are paid or provided under the Severance Plan.

Agent for Service of Legal Process

Legal process can be served on the Severance Plan by directing it to:

SVP Human Resources
Fidelity & Guaranty Life
1001 Fleet Street, 6th Floor
Baltimore, Maryland 21202

Applying for Benefits

Benefits are determined by the plan administrator according to this official Severance Plan document.  A copy of this Severance Plan document is available for your review upon your written request to the plan administrator.

Claims Procedure

A claim for Severance Plan benefits must be in writing and addressed to the plan administrator at the address previously set forth or any other address that may be designated from time to time. You will receive a written notice from the plan administrator with respect to your claim within 90 days of the date the plan administrator received your initial claim.  If special circumstances require an extension of time, written notice will be provided before the end of this 90-day period explaining the reason for the delay. If you are not furnished notice regarding your claim within this time period, your claim will be considered denied.

If the plan administrator denies your claim in writing, in whole or in part, the notice of denial will contain the specific reasons for the denial; specific references to the Severance Plan provisions or other relevant documents on which the denial is based; a description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary; an explanation of the claims review procedures; and a description of your right to file suit following an adverse decision on appeal.  Should you disagree with the plan administrator’s determination, you have 60 days to request a review.  The plan administrator will reconsider your claim and its resulting decision will be issued within 60 days after your request.  If more time is needed because of unusual circumstances, you will be notified.

Review of the denied claim includes the right to submit written comments, documents, records and other information relating to the claim; reasonable access to and copies of documents, records and other information relevant to the claim upon request and at no charge; and review of all comments, documents, records and other information submitted without regard to whether such information was submitted or considered in the initial benefit determination. 

You will receive written notice of the plan administrator’s decision.  If such decision is adverse, it will contain the specific reasons for the decision and reference to the Severance Plan provisions or other relevant records or documents on which the decision is based; a statement that you are entitled to receive, upon request and free of charge, reasonable access to and copies of all relevant documentation; and a statement regarding your right to bring an action under section 502(a) of ERISA.  

You or any other claimant must bring any action for wrongful denial of benefits or for interference with ERISA-protected rights in federal or state court within two years of the date your or any other claimant’s cause of action accrued.  Causes of action generally accrue at the time the individual making the claim first knew or should have known of the alleged wrongful denial or interference.  

The plan administrator has the exclusive discretionary authority to operate and administer the Severance Plan, and to determine all questions arising in connection with the Severance Plan.  The plan administrator also has the discretionary authority to construe and to interpret the Severance Plan, to decide all questions of eligibility for benefits and to determine the amount of such benefits, and its decisions on such matters are final and conclusive.  Any interpretation or determination made pursuant to such discretionary authority shall be upheld on judicial review, unless it is shown that the interpretation or determination was an abuse of discretion (i.e., arbitrary and capricious).  The plan administrator has the power to and periodically delegates discretionary authority in contracts, letters and other documents.  Delegates may also assign their discretionary authority to others, as allowed by the plan administrator.  Fiduciaries shall have only those powers, duties, 

responsibilities and obligations as are specifically given or delegated to them under the Severance Plan and shall only be fiduciaries with respect to their specific responsibilities in connection with the Severance Plan. 

Assignment of Benefits

Benefits under the Severance Plan may not be assigned, transferred or pledged to a third party, for example, as security for a loan or other debt.  

Financing the Severance Plan

The Severance Plan shall not be funded.  The Company pays its cost for the Severance Plan from its general assets.  Benefits payments are made on the authorization of the plan administrator.

Incapacity of Employee

Whenever, in the plan administrator's opinion, an employee entitled to receive any payment of a benefit under the Severance Plan is under a legal disability or is incapacitated in any way so as to be unable to manage his financial affairs, the plan administrator may direct payment to such person or to the legal representative of such person for his benefit, or the plan administrator may apply the payment for the benefit of such person in such manner as the plan administrator considers advisable.  Any payment of a benefit in accordance with the provisions of this section shall be a complete discharge of any liability for the making of such payment under the provisions of the Severance Plan.

Plan Amendment and Termination

The Company, as plan sponsor, reserves the right at its discretion to terminate, amend, modify or reduce all or a portion of the benefits offered under the Severance Plan at any time, provided however that the Severance Plan may not be amended or terminated during the 1 year period immediately following a Change in Control without the consent of each person affected by such amendment or termination.  Any amendment or termination will not affect the benefits of those who have already received written notice of termination of employment under circumstances qualifying for the Severance Plan.  Benefits for others, however, may be reduced or eliminated at any time.  Upon final termination of the Severance Plan, the plan sponsor may make appropriate arrangements to wind up the affairs of the Severance Plan.

No Guarantee of Employment

Nothing contained in the Severance Plan shall be construed as a contract of employment between the Company or any of its affiliates and any employee, or as a right of any employee to be continued in the employment of the Company or any of its affiliates, or as a limitation on the right of the Company or any of its affiliates to discharge any of its employees with or without cause.  Nor shall anything contained in the Severance Plan be construed as entitling any terminated employee to severance pay or other benefits unless that employee is eligible for and meets all requirements for specific severance pay or benefits described in accordance with the terms of the Severance Plan.

Applicable Law

The provisions of the Severance Plan shall be construed and administered according to ERISA, and its validity and enforceability shall be determined under ERISA.  In the event ERISA does not preempt state law in a particular circumstance, the laws of the State of Delaware shall apply. Any lawsuit filed under the Severance Plan must be filed in federal court in the State of Maryland or the State of Iowa.  If any provision of the 

Severance Plan is, or is hereafter declared to be void, voidable, invalid or otherwise unlawful, the remainder of the Severance Plan shall not be affected.

Severability

If any provision of the Severance Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Severance Plan shall be construed and enforced as if such provisions had not been included.

Successors

The Severance Plan shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each employee, present and future, and any successor to the Company.  If a severed employee shall die while any amount would still be payable to such severed employee hereunder if the severed employee had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of the Severance Plan to the executor, personal representative or administrators of the severed employee's estate.

Withholding

Any payments provided for herein shall be reduced by any amounts required to be withheld by the Company from time to time under applicable Federal, State, local or foreign income or employment tax laws or similar statutes or other provisions of law then in effect.

Adoption of the Severance Plan by Fidelity & Guaranty Life Insurance Company

Fidelity & Guaranty Life Insurance Company has adopted the Severance Plan, and expressly guarantees payment of any benefits due under the terms of the Severance Plan.   

Statement of ERISA Rights

The following statement is required by federal law and regulations.  As a participant in the Fidelity & Guaranty Life 2015 Severance Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: 

Receive Information About Your Plan and Benefits

		
	•
	Examine, without charge, at the plan administrator's office and at other specified locations, such as work sites, all documents governing the plan and a copy of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

		
	•
	Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The administrator may make a reasonable charge for the copies.

		
	•
	Receive a summary of the plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report. 

Prudent Actions by Plan Fiduciaries

In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called “fiduciaries” of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit under the terms of the plan or exercising your rights under ERISA. 

Enforce Your Rights

If your claim for a welfare benefit under the terms of the plan is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. 

Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court.  If it should happen that plan fiduciaries misuse the plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court.  The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. 

Assistance with Your Questions

If you have any questions about the plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

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