Document:

Exhibit 10.1

 

Execution Version

 

 

TWELFTH AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT

AND WAIVER AND CONSENT
AGREEMENT

 

THIS TWELFTH AMENDMENTTO
AMENDED AND RESTATED CREDIT AGREEMENT AND WAIYER AND CONSENT AGREEMENT ("Amendment") is
dated to be effective as of the 19th day of January, 2022 ("Effective Date"), by
and between: (a) MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation, as Administrative Agent ("Administrative
Agent"); (b) the undersigned lenders (collectively, the "Lenders") which
are parties to the Credit Agreement; (c) GPB PRIME HOLDINGS, LLC ("GPB Prime") and
AUTOMILE PARENT HOLDINGS, LLC ("Parent Holdings Guarantor"), each a Delaware
limited liability company (collectively, the "Guarantors"); and (d) AUTOMILE
HOLDINGS, LLC ("Automile Holdings"), AUTOMILE TY HOLDINGS, LLC ("Toyota
Holdings"), each a Delaware limited liability company, and their undersigned Subsidiaries
signing this Amendment as a "Borrower" (together with Automile Holdings, and
Toyota Holdings, collectively, the "Borrowers"). The Guarantors and the
Borrowers are collectively referred to in this Amendment as the "Loan Parties." The
Administrative Agent and the Lenders are collectively referred to in this Amendment as the "Credit Parties." The
Borrowers, the Guarantors, and the Credit Parties are collectively referred to as the "Parties."

 

RECITALS

 

The
Administrative Agent, the Lenders party thereto, and the Loan Parties have entered into an Amended and Restated Credit Agreement dated
as of October 4, 2017, as amended pursuant to a First Amendment and Waiver to Amended and Restated Credit Agreement dated as of December
15, 2017 ("First Amendment"), a Second Amendment to Amended and Restated Credit
Agreement dated as of May 1, 2018 ("Second Amendment"), a Third Amendment to Amended
and Restated Credit Agreement dated as of June 29, 2018 ("Third Amendment"), a Fourth
Amendment to Amended and Restated Credit Agreement dated as of September 21, 2018 ("Fourth Amendment"), a
Fifth Amendment to Amended and Restated Credit Agreement dated as of February 5, 2019 ("Fifth Amendment"), a
Sixth Amendment to Amended and Restated Credit Agreement and Replacement of Equity Offset Agreement dated as of June 14, 2019 ("Sixth
Amendment"), a Seventh Amendment to Amended and Restated Credit Agreement dated as of October 18,
2019 ("Seventh Amendment"), an Eighth Amendment to Amended and Restated Credit Agreement
and Amendment to Security Agreement dated as of March 19, 2020 ("Eighth Amendment"), a
Ninth Amendment to Amended and Restated Credit Agreement dated as of April 30, 2020 ("Ninth Amendment"), a
Tenth Amendment to Amended and Restated Credit Agreement dated as of September 4, 2020 ("Tenth Amendment"), an
Eleventh Amendment to Amended and Restated Credit Agreement dated as of June 23, 2021 ("Eleventh Amendment"), and
the Consent Agreement dated as of October 8, 2021 ("Consent Letter," and the aforesaid
Amended and Restated Credit Agreement, as amended pursuant to the First Amendment, Second Amendment, Third Amendment, Fourth Amendment,
Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, Ninth Amendment, Tenth Amendment, Eleventh Amendment, and Consent
Letter, collectively, the "Credit Agreement").

 

The
Credit Agreement and the various other "Credit Documents," as such term is
defined in the Credit Agreement, are referred to herein, collectively, as the "Credit Documents." All terms
used in this Amendment without definition shall have the respective meanings given such terms in the Credit Agreement. Terms added
or amended pursuant to Section 2 of this Amendment shall have the same meanings when used elsewhere in this Amendment.

 

     

     

    

 

The Loan
Parties have requested certain amendments and consents under the Credit Agreement in connection with the repayment and downsizing of the
Credit Facilities and the transition of the interest rate applicable to the Credit Facilities from a LIBOR based rate to a SOFR based
rate. The Administrative Agent and the undersigned sole Lender have agreed to enter into this Amendment to provide the requested amendments
and consents, in each case on terms and subject to the conditions as set forth herein.

 

NOW, THEREFORE,
in consideration of the premises, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Parties hereby agree as follows.

 

AGREEMENT

 

Section 1.
Acknowledgment And Reaffirmation Of Obligations. Each of the Loan Parties acknowledges
and affirms that: (a) the Credit Documents are the valid and binding obligation of each of them that is a signatory thereto; (b) the Credit
Documents are enforceable in accordance with all stated terms; and (c) none of them has any defenses, claims of offset, or counterclaims
against the enforcement of the Credit Documents in accordance with all stated terms. Without limitation to the foregoing, the Loan Parties
hereby ratify and reaffirm their respective Guaranty Agreements upon giving effect to the amendment to the Floor Plan Facility set forth
in this Amendment.

 

Section 2.
Amendment And Modification of Credit Agreement. The Credit Agreement is hereby amended
as set forth below:

 

Section 2.01Additional Definitions.
Section 1.02 of the Credit Agreement is hereby amended to add the following additional definitions:

 

"Available
Tenor" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such
Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an
interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark
(or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to
such Benchmark, in each case, as of such date.

 

"Benchmark'
means the Daily Simple SOFR or any subsequent Benchmark Replacement that has become effective hereunder.

 

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"Daily
Simple SOFR" means for any day (a "SOFR Rate Day"), a rate per
annum equal to the greater of (a) SOFR for the day (such day "i") that is five
(5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such
SOFR Rate Day, or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities
Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR
Administrator's Website, and (b) the Floor. If by 5:00 pm (ET) on the second (2nd) U.S.
Government Securities Business Day immediately following any day "i", the SOFR
in respect of such day "i" has not been published on the SOFR Administrator's
Website (and a Benchmark Replacement Date with respect to the Daily Simple SOFR has not occurred), then the SOFR for such day "i"
will be the SOFR as published in respect of the first preceding U.S. Government Securities Business Day for which such SOFR was
published on the SOFR Administrator's Website; provided that any SOFR determined pursuant to this sentence shall be utilized
for purposes of calculation of Daily Simple SOFR for no more than three (3) consecutive SOFR Rate Days. Any change in Daily Simple
SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the
Borrower.

 

"Floor" means
zero percent (0.0%).

 

"SOFR
Administrator" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing
rate).

 

"SOFR
Administrator's Website" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org,
or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

 

"SOFR
Borrowing" means, as to any Borrowing, the SOFR Loans comprising such Borrowing.

 

"SOFR
Loans" means Loans bearing interest at a rate determined by reference to the Daily Simple SOFR, adjusting daily, plus
the Applicable Rate.

 

"SOFR
Rate Day" has the meaning specified in the definition of Daily Simple SOFR.

 

"Twelfth
Amendment" means the Twelfth Amendment to Amended and Restated Credit Agreement and Waiver and Consent Agreement dated
as of the Twelfth Amendment Effective Date by and among the Loan Parties, the Administrative Agent and the Lenders party thereto.

 

"Twelfth Amendment
Effective Date" means January 19, 2022.

 

"U.S.
Government Securities Business Day" means any day other than Saturday, Sunday or other day on which the Securities
Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day
for purposes of trading in United States government securities.

 

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Section 2.02Amendment to Certain
Definitions. The definitions set forth below are hereby amended as follows:

 

a.       The
definition of "Applicable Rate" is hereby amended to delete clause (b) thereof and replace such clause with the following:

 

(b)
With respect to the Floor Plan Facility and the fees described below, the Applicable Rate means the following percentages per annum:

 

 

	
    Applicable Rate

    For SOFR

    Borrowings
	Applicable Rate

                                                                                For Base Rate

                                                                                Borrowings
	
    Applicable Rate

    For Floor
    Plan

    Commitment

    Fees

	1.87%	0.00%	0.15%

 

b.       The
definition of "Auction Vehicles Allocation" is hereby amended to replace the Dollar
amount of "up to $22,000,000" set forth therein with "up to $750,000".

 

c.       The
definition of "Base Rate" is hereby amended and restated in its entirety as set
forth below:

 

"Base
Rate" means the highest of (a) the variable per annum rate of interest so designated from time to time by the Administrative
Agent as its prime rate (which rate is a reference rate and does not necessarily represent the lowest or best rate being charged to any
customer), (b) the Federal Funds Effective Rate plus one-half of one percent(1⁄2%), or (c) Daily Simple SOFR in effect on such day
(taking into account any SOFR floor set forth in the definition of "Daily Simple SOFR") plus one percent (1%).

 

d.       The
definitions of "Benchmark Replacement," "Benchmark Replacement Adjustment," "Benchmark Replacement Conforming
Changes," "Benchmark Replacement Date," "Benchmark Transition Event," "Benchmark Transition Start Date,"
 "Benchmark Transition Unavailability Period," and "Business Day" are hereby amended and restated, each in their entirety,
as set forth below:

 

"Benchmark
Replacement" means the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent
in consultation with the Borrower Representative giving due consideration to (i) any selection or recommendation of a replacement
rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market
convention for determining a rate of interest as a replacement to the then-current Benchmark for U.S. dollar-denominated syndicated
or bilateral credit facilities and (b) the related Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as
so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes hereof.

 

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"Benchmark
Replacement Adjustment" means with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement
for any applicable Available Tenor, the spread adjustment, or method for calculating or determining such spread adjustment, (which may
be a positive or negative value or zero) that has been selected by the Administrative Agent in consultation with the Borrower Representative,
giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such
spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental
Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining
such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated
syndicated credit facilities at such time.

 

"Benchmark
Replacement Conforming Changes" means with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “Base Rate," the definition of "Business Day," the definition of
 "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), the
definition of "U.S. Government Securities Business Day," timing and frequency of determining rates and making payments of interest,
timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods and other technical, administrative
or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark
Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice
(or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the
Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner
of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement
and the other Credit Documents).

 

"Benchmark
Replacement Date" means the earlier to occur of the following events with respect to the then-current Benchmark:

 

(a)       in
the case of clause (a) of the definition of "Benchmark Transition Event," the later of (i) the date of the public
statement or publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently
or indefinitely ceases to provide the Benchmark; or

 

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(b)       in
the case of clause (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement
or publication of information referenced therein, and (ii) the announced or stated date as of which all applicable tenors of such Benchmark
will no longer be representative.

 

"Benchmark
Transition Event" means, with respect to any then current Benchmark, the occurrence of a public statement or publication of information
by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for the administrator of such Benchmark,
the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over
the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or
an entity with similar insolvency or resolution authority over the administrator for such Benchmark, announcing or stating that (a) such
administrator has ceased, or will cease on a specified date, to provide such Benchmark (or all tenors of such Benchmark applicable to
the loan evidenced hereby), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor
administrator that will continue to provide any applicable tenors of such Benchmark or (b) all applicable
tenors of such Benchmark are or will no longer be representative of the underlying market and economic reality that such Benchmark is
intended to measure and indicating that representativeness will not be restored.

 

"Benchmark
Transition Start Date" means in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement
Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 180th
day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such
prospective event is fewer than 180 days after such statement or publication, the date of such statement or publication).

 

"Benchmark
Unavailability Period'' means the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if,
at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Credit
Documents in accordance with Section 2.05.4 (Effect of Benchmark Transition Event) and (y) ending at the time that a Benchmark
Replacement has replaced the then current Benchmark for all purposes hereunder and under any Credit Documents in accordance with
Section 2.05.4 (Effect of Benchmark Transition Event).

 

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"Business
Day" means any day other than a Saturday, Sunday or day which shall be in the State of New York a legal holiday or day
on which banking institutions are required or authorized to close.

 

e.       The
definition of "Floor Plan Borrowers" is hereby amended and restated in its entirety
as set forth below:

 

"Floor
Plan Borrowers" means Automile Holdings, LLC and AMR Auto Holdings- SM, LLC (dba Manchester Subaru), jointly and severally,
and any other Subsidiary that becomes a Floor Plan Borrower by agreement between the Administrative Agent, the Lender, and the Borrower
Representative.

 

f.       The
definition of "Floor Plan Dollar Cap" is hereby amended and restated as set forth
below:

 

"Floor
Plan Dollar Cap" means Eight Million Seven Hundred Fifty Thousand Dollars ($8,750,000).

 

g.       The
definition of "Interest Payment Date" is amended and restated in its entirety as set forth below:

 

"Interest
Payment Date" means the last Business Day of each calendar month and the Maturity Date.

 

h.       The
definition of "New Vehicles Allocation" is hereby amended to replace the Dollar
amount of ''up to $298,000,000" set forth therein with "up to $6,250,000".

 

i.       The
definition of "Service Loaner Vehicles Allocation" is hereby amended to replace
the Dollar amount of “up to Eighteen Million Dollars ($18,000,000)" set forth therein with ''up to $750,000".

 

j.       The
definition of "SOFR" is amended and restated in its entirety as set forth below
and the definition of "Term SOFR" is hereby deleted:

 

"SOFR"
means, with respect to any U.S. Government Securities Business Day, a rate per annum equal to the secured overnight financing
rate for such U.S. Government Securities Business Day.

 

k.       The
definition of "Type" is hereby amended to replace the reference to "LIBOR Rate
Loan" with a reference to "SOFR Loans".

 

1.       The
definition of "Used Vehicles Allocation" is hereby amended to replace the Dollar
amount of ''up to $22,000,000" set forth therein with "up to $1,000,000".

 

Section
2.03 Amendment to Section 2.01.4 (Borrowings, Conversions and Continuations o {Floor Plan
Committed Loans). No further LIBOR based borrowings will be made pursuant
to Section 2.01.4 of the Credit Agreement. SOFR Loans made under Section 2.01.4 (which excludes any Drafts or advances made under a
Floor Plan Automated System) shall be made with such advance notice and pursuant to such borrowing request documentation as the
Administrative Agent may reasonably require.

 

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Section 2.04
Amendment to Section 2.0l.9(a) (Vehicle Curtailments):
Section 2.0l.9(a) with respect to curtailments payable on account of New Vehicles, the reference to "ten percent (10%)"
is hereby replaced with a reference to "five percent (5%)".

 

Section
2.05 Amendment to Section 2.05 (Interest Terms Applicable to the Loans).
Clause (c) of Section 2.05 is hereby replaced with the following:

 

(c) each
SOFR Borrowing of a Floor Plan Committed Loan shall bear interest on the outstanding principal amount thereof from the applicable Borrowing
Date at a rate per annum equal to the Daily Simple SOFR plus the Applicable Rate;

 

Section 2.06 Amendment to
Section 2.05.4 (Benchmark Transition). Section
2.5.4 of the Credit Agreement is, as set forth below, is amended and restated in
its entirety as set forth below:

 

		2.5.4.	Effect of Benchmark Transition Event.

 

(a)       Benchmark
Replacement. Notwithstanding anything to the contrary herein or in any other Credit Document, upon the occurrence of a Benchmark
Transition Event, the Administrative Agent and the Borrower Representative may amend this Agreement to replace the then current Benchmark
with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the
fifth (5th) Business Day after the Administrative Agent has posted (or otherwise made available)
such proposed amendment to all Lenders and the Borrower Representative so long as the Administrative Agent has not received, by such time,
written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark
Replacement pursuant to this Section 2.05.4 will occur prior to the applicable Benchmark Transition Start Date.

 

(b)       Benchmark
Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent
will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein
or in any other Credit Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without
any further action or consent of any other party to this Agreement. Administrative Agent shall not be liable to any party hereto for any
Benchmark Replacement Conforming Changes it makes in good faith.

 

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(c)       Notices;
Standards for Decisions and Determinations. The Administrative Agent will endeavor to promptly
notify the Borrower Representative and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of
any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by the Administrative Agent or,
if applicable, any Lender (or group of Lenders) pursuant to this Section, including any determination with respect to a tenor, rate or
adjustment, or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking
any action or any selection, will be conclusive and binding on all parties hereto absent manifest error, and may be made in its or their
sole discretion and without consent from any other party to this Agreement or other Credit Document (except, in each case, as expressly
required pursuant to this Section) and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such
claims being hereby waived individually by each party hereto.

 

(d)       Benchmark
Unavailability Period. Notwithstanding anything to the contrary herein or in any other Credit Document, at any time (including
in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate and either (A)
any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as
selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such
Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be
no longer representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or
analogous definition) for any Benchmark settings at or after such time to remove such unavailable or nonrepresentative tenor and
(ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently
displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer,
subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then
the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all
Benchmark settings at or after such time to reinstate such previously removed tenor.

 

Section
2.07 Amendment to Section 2.01.12 {Voluntary Reduction
or Termination of Commitments; Voluntary Prepayment). Section 2.01.12 of the Credit Agreement
is hereby amended to add the additional subsection (c) as follows:

 

(c)
Notwithstanding the foregoing clauses (a) and (b), in connection with each voluntary prepayment of SOFR Loans, the Borrower
Representative shall provide the Administrative Agent with notice of its intention to prepay no later than 11:00 a.m.
five U.S. Government Securities Business Days, or such shorter period as the Administrative Agent may agree, prior to the
date of prepayment in the case of SOFR Loans.

 

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Section 2.08Additional SOFR/Benchmark Transition
Amendments to Credit

Agreement:

 

a.       LIBOR
Transition to SOFR. From and after the Effective Date, no LIBOR Borrowings will be permitted under the Credit Agreement. Subject to
the limitations set forth herein and in the Credit Agreement, each Floor Plan Committed Loan shall be in the form of a SOFR Loan.

 

b.       Invoicing
SOFR Loans. Daily Simple SOFR billing (which will be based on the Daily Simple SOFR rate plus the Applicable Rate) may be done on
an estimated basis with a true-up. Payment invoices may reflect estimated interest accruals for a portion of each billing period (in an
endeavor to facilitate timely distribution of invoices in advance of each payment date) followed by appropriate interest accrual adjustments
reflected in the invoice for succeeding billing periods.

 

c.       Inability
to Determine Rates. Subject to Section 2.05.4 (Effect of Benchmark Transition Event) of the Credit Agreement, if the Administrative
Agent determines (which determination shall be conclusive and binding absent manifest error) that "Daily Simple SOFR" cannot
be determined pursuant to the definition thereof, the Administrative Agent will promptly so notify the Borrower Representative and each
Lender. Upon notice thereof by the Administrative Agent to the Borrower Representative, any obligation of the Lenders to make or continue
SOFR Loans or to convert Base Rate Loans to SOFR Loans shall be suspended (to the extent of the affected SOFR Loans) until the Administrative
Agent revokes such notice. Upon receipt of such notice, (i) the Borrower Representative may revoke any pending request for a borrowing
of, conversion to or continuation of SOFR Loans, to the extent of the affected SOFR Loans or, failing that, the Borrower Representative
will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans in the amount specified
therein and (ii) any outstanding affected SOFR Loans will be deemed to have been converted into Base Rate Loans immediately. If the Administrative
Agent determines (which determination shall be conclusive and binding absent manifest error) that "Daily Simple SOFR" cannot
be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Loans shall be determined by the Administrative
Agent without reference to clause (c) of the definition of "Base Rate" until the Administrative Agent revokes such determination.

 

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d.       Illegality;
Laws Affecting SOFR Usage. If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable lending office to make, maintain, or fund Loans whose interest is
determined by reference to Daily Simple SOFR, or to determine or charge interest rates based upon SOFR, then, upon notice thereof by
such Lender to the Borrower Representative (through the Administrative Agent), (a) any obligation of such Lender to make or continue
SOFR Loans or to convert Base Rate Loans to SOFR Loans shall be suspended, and (b) the interest rate on which Base Rate Loans of
such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (c)
of the definition of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower Representative
that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, (i) the Borrowers shall, upon
demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans of such Lender
to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be
determined by the Administrative Agent without reference to clause (c) of the definition of the Base Rate), either on the applicable
Interest Payment Date, if such Lender may lawfully continue to maintain such SOFR Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such SOFR Loans and (ii) if such notice asserts the illegality of such Lender determining or
charging interest rates based upon SOFR, the Administrative Agent shall during the period of such suspension compute the Base Rate
applicable to such Lender without reference to the clause (c) thereof until the Administrative Agent is advised in writing by such
Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon Daily Simple SOFR.

 

e.       SOFR
and Benchmark Replacement. The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability
with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Benchmark,
any component definition thereof or rates referenced in the definition thereof or any alternative, successor or replacement rate thereto
(including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement
rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same
volume or liquidity as, the Benchmark or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation
or composition of any Benchmark Replacement Conforming Changes. The Administrative Agent may select information sources or services in
its reasonable discretion to ascertain the Benchmark, in each case pursuant to the terms hereof, and shall have no liability to any Borrower
or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages,
costs, losses or expenses (whether in tort, contract
or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such
information source or service.

 

f.       Conversion
Upon Default. Unless the Administrative Agent shall otherwise consent in writing, if (i) Borrowers fail to pay when due, in whole
or in part, any of the Obligations (whether by demand or otherwise), or (ii) there exists an Event of Default, the Administrative Agent,
in its sole discretion, may convert any or all SOFR Loans to Base Rate Loans. Nothing herein shall be construed to be a waiver by the
Administrative Agent or any of the Lenders to have any Loan accrue interest at the Default Rate of interest.

 

Section 3.Certain Consent.

 

Section
3.01 Restricted Payment to Certain Portfolio Companies. The Borrowers have requested the Lender's consent to a Restricted
Payment in the amount of$570,000,000 from the proceeds of the sale to Group 1 to be distributed to GPB AP and GPB H2
("Specified 12/2021 Distribution"). The Lender has agreed to permit the Specified 12/2021 Distribution, provided that no
Default or Event of Default has occurred or would occur upon giving effect to such distribution and that evidence satisfactory to
the Lender of compliance with the Financial Covenants upon giving effect to such distribution shall have been provided to the
Administrative Agent and the Lender.

 

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Section
4. Representations And Warranties. As an inducement to the Credit Parties to enter into this Amendment and to agree to the
amendments and modifications set forth herein, each of the Loan Parties make the following representations and warranties to the Credit
Parties, as of the Effective Date and upon giving effect to this Amendment:

 

Section 4.01
Authority And Good Standing. Each of them has the power to enter into this Amendment and to perform all of its obligations hereunder.
Each of the Loan Parties: (a) has duly authorized the entry into and performance of this Amendment; (b) is in good standing in the jurisdiction
of its organization; and (c) is duly licensed or qualified and in good standing in all jurisdictions where the property owned or leased
by it or the nature of the business transacted by it makes such licensing or qualification necessary.

 

Section 4.02
Accuracy Of Information. All information and data submitted by or on behalf of the Loan Parties in connection with this Amendment
and the transactions contemplated herein are true, accurate and complete in all material respects as of the date made and contains no
knowingly false, incomplete or misleading statements.

 

Section 4.03
Pending Proceedings. There are no actions, suits, proceedings or investigations pending or, to the knowledge of any of the Loan
Parties threatened, against any Loan Party or any assets of any Loan Party, the adverse determination of which would be reasonably expected
to have a Material Adverse Effect except as set forth in Schedule 6.03 attached hereto. No judgments have been entered against
any of the Loan Parties which would result in an Event of Default under Section 7.01.5 of the Credit Agreement.

 

Section 4.04Events of Default. No Defaults or
Events of Default exist.

 

Section 5.
Conditions Precedent. The effectiveness of this Amendment and the agreements of the Administrative Agent and the Lenders
hereunder are subject to the following conditions precedent:

 

(a)       Closing
Submissions. The Administrative Agent's receipt of the following, each of which shall be originals or electronic copies (followed
promptly by originals), unless otherwise specified, each properly executed by a Responsible Officer of the applicable signing Loan Party,
each dated either the Effective Date (or, in the case of certificates of governmental officials, a recent date before the Effective Date)
and each in form and substance reasonably satisfactory to the Administrative Agent and the Lenders:

 

(i)       this
Amendment executed by Administrative Agent, the Lenders, and each of the Loan Parties;

 

(ii)       a
Floor Plan Note amending and restating the existing Floor Plan Notes (as further set forth therein) executed and delivered by
Automile Holdings, LLC and AMR Auto Holdings - SM, LLC and a Pledge and Assignment of Deposit Account in form and substance
satisfactory to the Administrative Agent executed and delivered by Automile Holdings, LLC and AMR Auto Holdings - SM, LLC to
effectuate the Cash Collateral requirement set forth in Section 6(d) below;

 

    12

     

    

 

(iii)       such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party
as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Amendment and the other Credit Documents to which such Loan Party is
a party; and

 

(iv)       certificates
of good standing evidencing for each Loan Party from its jurisdiction of incorporation or formation and for each jurisdiction in which
the conduct of its business requires qualification to do business (as determined by the Loan Parties in accordance with the Credit Agreement).

 

(b)       Credit
Party Expenses. The Borrower Representative shall have paid, or caused to be paid, all Credit Party Expenses (including, in the case
of attorneys' fees, directly to counsel to the Administrative Agent, if requested by the Administrative Agent).

 

Section
6.Additional Terms, Conditions, and Covenants.

 

(a)       Monitor.
The transaction contemplated hereby shall have been approved by the Monitor.

 

(b)       [Intentionally Omitted].

 

(c)       Use
of Proceeds. The Floor Plan Facility, as amended hereby, shall be used to finance new Subaru vehicles and used, auction, and service
loaner vehicles.

 

(d)       Cash
Collateral Requirement. The Obligations shall be secured by additional Collateral in the form of a pledge of Cash Collateral in the
amount of$8,750,000 held in a deposit account at M&T Bank and subject to the sole control of the Administrative Agent on behalf of
the Lenders.

 

Section 7.Amendment
and Restatement of Floor Plan Notes. The existing Floor Plan Notes are amended and restated as the Floor Plan Note executed
as of even date herewith in the stated principal amount of Eight Million Seven Hundred Fifty Thousand Dollars ($8,750,000).

 

Section 8.
Further Assurances. Each of the Loan Parties agrees to execute and deliver to the Administrative
Agent such documents as may, from time to time, be reasonably requested by the Administrative Agent in order to amend and modify the Credit
Agreement and the other Credit Documents as contemplated by this Amendment.

 

    13

     

    

 

Section
9. No Novation; No Refinance; No Impairment of Security Interest. It is the
intent of each of the Parties hereto that nothing contained in this Amendment shall be deemed to effect or accomplish or otherwise
constitute a novation of any of the Loans or the Credit Documents or of any of the obligations owed by any of the Loan Parties to
the Credit Parties or to be a refinance of any of the Obligations. This Amendment shall not release, limit or impair in any way the
effectiveness and priority of the security interests, mortgages, pledges, assignments, and other Liens in the Collateral granted,
described, and provided in the Credit Agreement and the other Credit Documents for the benefit of the Secured Parties as security
for the Obligations, all of which security interests, mortgages, pledges, assignments, and other Liens shall continue unimpaired in
full force and effect and are hereby ratified and confirmed.

 

Section 10.
Limited Amendment, Consent, and Waiver. Except to the extent amended pursuant to Section
2 of this Amendment, all of the terms, covenants, conditions, and provisions of the Credit Agreement and the other Credit Documents shall
remain in full force and effect and are hereby ratified and confirmed by each of the Loan Parties which is a party thereto. Except for
the consent granted pursuant to Section 3 of this Amendment, nothing herein shall constitute a waiver of any provision of the Credit Agreement
or any of the other Credit Documents, and each of the Loan Parties hereby ratifies and confirms all of the Credit Documents to which it
is a party, after giving effect to all amendments set forth in Section 2 hereof and the consents and waiver set forth in Sections 3 hereof.
This Amendment shall not extend the terms of the Credit Documents or the Maturity Date of any of the Loans or other Obligations. No failure
or delay by any of the Credit Parties in the exercise or enforcement of any of their rights under the Credit Agreement or any other Credit
Document shall be a waiver of such right or remedy nor shall a single or partial exercise or enforcement thereof preclude any other or
further exercise or enforcement thereof or the exercise or enforcement of any other right or remedy. Any such consent or waiver must be
specific and in writing to be binding upon the Credit Parties and no such consent or waiver shall constitute, unless specifically so expressed
in writing by the Administrative Agent, a future consent to, or waiver of, performance or exact performance by the Loan Parties. No consent,
amendment, waiver, or other agreement hereunder shall constitute a course of dealing. On and after the Effective Date, this Amendment
shall for all purposes constitute a Credit Document.

 

Section 11.
Enforceability. This Amendment shall inure to the benefit of and be enforceable against
each of the Parties and their respective successors and assigns.

 

Section 12.
Reimbursement of Administrative Agent's Expenses. The Borrower Representative agrees
to reimburse to the Administrative Agent promptly upon receipt of an invoice therefor, for all Credit Party Expenses incurred by the Administrative
Agent in connection with the negotiation and preparation of this Amendment, and all other expenses incurred by the Administrative Agent
as of that date in connection with the consummation of the transactions and matters described herein.

 

Section
13. Choice Of Law; Consent To Jurisdiction; Agreement As To Venue. This Amendment
shall be construed, performed and enforced and its validity and enforceability determined in accordance with the Laws of the State
of New York ("Governing State"). Each of the Parties irrevocably consents to
the non-exclusive jurisdiction of the courts of the Governing State sitting in New York County and the United States District Court
for the Southern District of New York, and any appellate court from any thereof. Each of the Parties agrees that venue shall be
proper in any State court of the Governing State sitting in New York County or in any United States District Court for the Southern
District of New York and waives any right to object to the maintenance of a suit in any of such state or federal courts of the
Governing State on the basis of improper venue or of inconvenience of forum.

 

    14

     

    

 

Section 14. RELEASE.
IN ORDER TO INDUCE THE ADMINISTRATIVE AGENT AND THE LENDERS TO ENTER INTO THIS AMENDMENT, EACH OF THE LOAN PARTIES FOREVER RELEASES AND
DISCHARGES THE ADMINISTRATIVE AGENT AND THE LENDERS AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS, AND AGENTS
(COLLECTIVELY, THE "RELEASED PARTIES") FROM ANY AND ALL CLAIMS, CAUSES OF ACTION, SUITS AND DAMAGES (INCLUDING CLAIMS FOR ATTORNEYS'
FEES AND COSTS), ARISING OUT OF A COMMISSION OR OMISSION OF THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS EXISTING OR OCCURRING ON OR
PRIOR TO THE EFFECTIVE DATE, WHICH ANY OF THE LOAN PARTIES, JOINTLY OR SEVERALLY, EVER HAD OR MAY NOW HAVE AGAINST ANY OF THE RELEASED
PARTIES FOR ANY SUCH CLAIMS ARISING OUT OF OR RELATED IN ANY WAY TO THE OBLIGATIONS, THE CREDIT DOCUMENTS, THIS AMENDMENT OR THE ADMINISTRATION
THEREOF, WHETHER KNOWN OR UNKNOWN, INCLUDING BUT NOT LIMITED TO ANY AND ALL SUCH CLAIMS BASED UPON OR RELYING ON ANY ALLEGATIONS OR ASSERTIONS
OF DURESS, ILLEGALITY, UNCONSCIONABILITY, BAD FAITH, BREACH OF CONTRACT, REGULATORY VIOLATIONS, NEGLIGENCE, MISCONDUCT, OR ANY OTHER TORT,
CONTRACT OR REGULATORY CLAIM OF ANY KIND OR NATURE. THIS RELEASE IS INTENDED TO BE FINAL AND IRREVOCABLE AND IS NOT SUBJECT TO THE SATISFACTION
OF ANY CONDITIONS OF ANY KIND.

 

Section
15. Counterparts And Delivery. This Amendment may be executed and delivered in counterparts, (and by different Parties hereto
in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single
contract. Delivery of an executed counterpart of a signature page to this Amendment electronically or via facsimile shall be just as effective
as the delivery of a manually executed counterpart of this Amendment. Further, each person executing this letter agrees that the electronic
signatures, whether pdf, scanned, digital, encrypted, captured or otherwise attached or imposed hereto, are intended to authenticate this
Amendment and to have the same force and effect of manual signatures. By signing below, each person, in their individual capacity, executing
this letter represents and warrants to and covenants to the Credit Parties that said signer is executing this Amendment on behalf of a
Borrower or Guarantor and is duly authorized and empowered to do so and to bind such Borrower and/or Guarantor to the terms hereof.

 

Section 16.
Waiver of Jury Trial. All Parties to this Amendment waive the right to a trial by jury in any action brought to enforce
or construe this Amendment or which otherwise arises out of or relates to this Amendment or the transactions contemplated herein.

 

[Signatures Begin On The Following Page]

    15

     

    

 

Signature Page
to Twelfth Amendment to Amended and Restated Credit Agreement and Waiver and Consent Agreement:

 

IN WITNESS WHEREOF,
the Parties have executed this Amendment with the specific intention of creating a document under seal to be effective as of the date
first above written.

 

	 	
     

    GPBPRIME:

    GPB PRIME HOLDINGS, LLC,

    a Delaware Limited Liability Company

     

    

     

    PARENT HOLDINGS GUARANTOR:

    AUTOMILE PARENT HOLDINGS, LLC,

    a Delaware limited liability company

     

     

    

     

     

     

 

 

     

     

    

 

Signature
Page to Twelfth Amendment to Amended and Restated Credit Agreement and Waiver and Consent Agreement - Continued:

 

	
    BORROWERS:

     

    AMR AUTO HOLDINGS - PA,
    LLC,

    AMR AUTO HOLDINGS - VH,
    LLC,

    SACO AUTO HOLDINGS - VW,
    LLC,

    HANOVER AUTOMOTIVE HOLDINGS,
    LLC,

    AMR AUTO HOLDINGS - SM, LLC,

    AMR AUTO HOLDINGS -
VWN, LLC,

     

    Each
a Delaware limited liability company

     

     

     

    

     

    AUTOMILE HOLDINGS, LLC,

    A Delaware limited
    liability company

     

     

    By:
Todd R. Skelton,

            Chief Executive Officer

     

     
	
    AUTOMILE TY HOLDINGS,
    LLC,

    AMR AUTO HOLDINGS
    - LN, LLC,

    LUPOLLC,

    AMR AUTO HOLDINGS
    - BG, LLC,

    AMR AUTO HOLDINGS
    - NC, LLC,

    AMR AUTO HOLDINGS
    - MW, LLC,

    AMR AUTO HOLDINGS
    - AC, LLC,

    AMR AUTO HOLDINGS
    - HN, LLC,

    AMR AUTO HOLDINGS
    - MH, LLC,

    AMR AUTO
HOLDINGS -FA, LLC,

    AMR AUTO
HOLDINGS - MM, LLC,

    SACO AUTO
HOLDINGS - FLMM, LLC,

    SACO AUTO
HOLDINGS - HN, LLC,

    SAWDRAN, LLC,

    AMR AUTO HOLDINGS
    - PO, LLC,

    AMR AUTO HOLDINGS
    - LC, LLC,

    AMR AUTO HOLDINGS
    - JS, LLC,

    AMR AUTO HOLDINGS
    - MINR, LLC,

    AMR AUTO HOLDINGS
    - LH, LLC,

    AMR AUTO HOLDINGS
    - MN, LLC,

    AMR AUTO HOLDINGS
    - BN, LLC,

    AMR AUTO HOLDINGS
    - BR, LLC,

    AMR AUTO HOLDINGS
    - HNR, LLC,

    Each a Delaware limited liability company

     

     

    By: __________________________

    Todd R. Skelton,

    Chief Executive Officer

     

    BORROWER
    REPRESENTATIVE:

     

    AUTOMILE HOLDINGS, LLC,

    A Delaware limited liability company

     

    By: __________________________

    Todd R. Skelton,

    Chief Executive Officer

     

 

     

     

    

 

Signature Page to Twelfth Amendment
to Amended and Restated Credit Agreement and Waiver and Consent Agreement - Continued:

 

	
    BORROWERS:

     

    AMR AUTO HOLDINGS - PA, LLC,

    AMR AUTO HOLDINGS - VH, LLC,

    SACO AUTO HOLDINGS - VW, LLC,

    HANOVER AUTOMOTIVE HOLDINGS, LLC,

    AMR AUTO HOLDINGS - SM, LLC,

    AMR AUTO HOLDINGS - VWN, LLC,

    Each a Delaware limited liability company

     

    By: _________________________________

    Kevin P. Westfall,

    Interim CEO

     

     

    

     
	
    AUTOMILE TY HOLDINGS, LLC,

    AMR AUTO HOLDINGS - LN, LLC,
    LUPOLLC,

    AMR AUTO HOLDINGS - BG, LLC,

    AMR AUTO HOLDINGS - NC, LLC,

    AMR AUTO HOLDINGS - MW, LLC,

    AMR
    AUTO HOLDINGS -AC, LLC,

    AMR AUTO HOLDINGS - HN, LLC,

    AMR AUTO HOLDINGS - MH, LLC,

    AMR AUTO HOLDINGS - FA, LLC,

    AMR AUTO HOLDINGS - MM, LLC,

    SACO AUTO HOLDINGS - FLMM, LLC,

    SACO AUTO HOLDINGS - HN, LLC,

    SAWDRAN, LLC,

    AMR
    AUTO HOLDINGS - PO, LLC,

    AMR AUTO HOLDINGS - LC, LLC,

    AMR AUTO HOLDINGS - JS, LLC,

    AMR AUTO HOLDINGS - MINR, LLC,

    AMR AUTO HOLDINGS - LH, LLC,

    AMR AUTO HOLDINGS - MN, LLC,

    AMR AUTO HOLDINGS - BN, LLC,

    AMR AUTO HOLDINGS - BR, LLC,

    AMR AUTO HOINHNR, LLC,

     

    Each
    a Delaware limited liability company

     

     

     

     

    BORROWER REPRESENTATIVE:

     

    

     

 

     

     

    

 

Signature Page
to Twelfth Amendment to Amended and Restated Credit Agreement and Waiver and Consent Agreement - Continued:

 

	 	
    ADMINISTRATIVE AGENT:

     

    MANUFACTURERS AND TRADERS TRUST

    COMPANY, A New York Banking Corporation,
    In Its Capacity as Administrative Agent

     

    

    

     

     

    LENDER:

     

    MANUFACTURERS AND TRADERS TRUST

    COMPANY, A New York Banking Corporation,
    As a Lender

    

    

     

 

 

 

 

     

     

    

 

Schedule
6.03 Pending Proceedings

 

None.ex_321029.htm

Exhibit 10(a)

UNION PACIFIC CORPORATION

STANDARD TERMS AND CONDITIONS FOR

PERFORMANCE STOCK UNITS

 

These Standard Terms and Conditions apply to the Award of performance stock units granted pursuant to the Union Pacific Corporation 2021 Stock Incentive Plan, as amended from time to time (the “Plan”), which are evidenced by a Grant Notice that specifically refers to these Standard Terms and Conditions. In addition to these Standard Terms and Conditions, the performance stock units shall be subject to the terms of the Plan and the Long Term Plan and, if applicable, the Severance Policy and the Policy for Recoupment of Incentive Compensation, each as amended from time to time, which are incorporated into these Standard Terms and Conditions by reference. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan. For purposes of these Standard Terms and Conditions and the Grant Notice, any reference to the Company (as defined below) shall include a reference to any Subsidiary. Additionally, for purposes of these Standard Terms and Conditions, references in these Standard Terms and Conditions to “you” or “your” shall refer to the Participant named in the Grant Notice provided to said Participant herewith (the “Grant Notice”), and such Participant’s heirs and beneficiaries.

 

By electronically accepting the Award and these Standard Terms and Conditions, you acknowledge and agree to be bound by the following, which will survive your termination from employment and the vesting or forfeiture of this Award:

 

PERFORMANCE STOCK UNITS

 

1.    TERMS OF PERFORMANCE STOCK UNITS

 

Union Pacific Corporation, a Utah corporation (the “Company”), has granted to you an award of a target number of performance stock units that may be earned at between 0% and 200% of the specified target level (the “Award” or the “Stock Units”) specified in the Grant Notice. Each Stock Unit represents the right to receive (i) one share of the Company’s common stock, $2.50 par value per share (the “Common Stock”) and (ii) a payment in cash equal to the amount of dividends that would have been payable on one share of Common Stock had you owned such Common Stock from the Grant Date specified in the Grant Notice through the payment date for such Stock Units (“Dividend Equivalent Payments”), in each case to the extent that the applicable Performance Criteria described below have been satisfied. The Award is subject to the terms and conditions set forth in the Grant Notice, these Standard Terms and Conditions, the Plan, the Long Term Plan and, if applicable, the Severance Policy and the Policy for Recoupment of Incentive Compensation, each as amended from time to time.

 

2.    VESTING OF PERFORMANCE STOCK UNITS

 

The Award shall not be vested as of the Grant Date set forth in the Grant Notice and shall be forfeitable until the end of the Restriction Period as set forth in the Grant Notice (the “Restriction Period Termination Date”), unless otherwise provided under these Standard Terms and Conditions and, for the avoidance of doubt, specifically subject to Section 3 hereof. After the end of the Restriction Period, subject to your continued employment with the Company through the Restriction Period Termination Date and to termination or acceleration as provided in these Standard Terms and Conditions, the Plan, the Long Term Plan and, if applicable, the Severance Policy, and to the extent certified by the Committee as described below, the Award (including related Dividend Equivalent Payments) shall become vested as of the Restriction Period Termination Date with respect to that number of Stock Units determined by the Committee to be paid pursuant to the Award. Unless the Committee shall determine otherwise, a period in which you are on a leave of absence during the Restriction Period in accordance with a leave of absence policy adopted by the Company shall count toward satisfaction of the Restriction Period.

 

 

 

 

3.    PERFORMANCE CRITERIA

 

The “Performance Criteria” are average annual Return on Invested Capital (“ROIC”) and relative Operating Income Growth (“OIG”). The definition and calculation of annual ROIC and relative OIG shall be determined in accordance with the Long Term Plan.

 

You may earn Stock Units at the conclusion of the Restriction Period (or such earlier time as may be provided in Section 6) based on the Company’s satisfaction of the Performance Criteria in accordance with the ROIC targets and payout schedule and the relative OIG targets and payout schedule approved by the Committee, as determined and certified by the Committee (or the Committee’s delegate) in its sole discretion (the “Certification Date”). To the extent certified by the Committee, you may earn up to two times the Stock Unit Target Award as shown on the Grant Notice based on the average of all three fiscal years (2022, 2023 and 2024) of ROIC performance achieved and the Company’s relative OIG percentile ranking (which is based on the Company’s OIG performance over the three fiscal year period as compared to the OIG performance over that period of the constituent companies of the S&P 100 Industrials Index and Class I Railroads as set forth in the Long Term Plan), as determined and certified by the Committee (or the Committee’s delegate) in its sole discretion. Notwithstanding the foregoing, the Committee retains the discretion under the Long Term Plan to determine the number of Stock Units payable with respect to your Award.

 

4.    DIVIDEND EQUIVALENT PAYMENTS

 

You are not entitled to receive cash dividends on the Stock Units, but will receive Dividend Equivalent Payments in an amount equal to the value of the cash dividends that would have been paid (based on the record date for such dividends) on the number of shares of Common Stock equal to the number of Stock Units which are earned (as determined by the Committee) based on the achievement of the applicable Performance Criteria as if such shares had been outstanding between the Grant Date and the payment date of such shares of Common Stock. Dividend Equivalent Payments shall not be adjusted for interest, earnings or assumed reinvestment. Except as provided in the immediately following paragraph, Dividend Equivalent Payments shall be paid to you at the time the earned shares of Common Stock to which those Dividend Equivalent Payments relate are delivered (or would be delivered in the absence of a deferral election made by you as described in Section 6(vii)) under Section 6(i) – (vi), as applicable. Distribution of Dividend Equivalent Payments shall be subject to the Company’s collection of all tax withholding obligations applicable to such distribution. No Dividend Equivalent Payment shall be paid or distributed on Stock Units (or shares underlying the Stock Units) that are forfeited or that otherwise do not vest and are not issued or issuable under the Award.

 

2

 

 

 

If you have elected to defer receipt of earned Stock Units in accordance with the terms of the Deferred Compensation Plan of Union Pacific Corporation (the “Deferred Compensation Plan”), Dividend Equivalent Payments with respect to such earned and deferred Stock Units which relate to dividends paid on and after the date of the deferral of such Stock Units (i.e., the date that the Stock Units would have been payable to you under the Plan had such Stock Units not been deferred under the Company’s Deferred Compensation Plan) shall be credited as part of the Award Account (as defined in the Deferred Compensation Plan) under the Company’s Deferred Compensation Plan, and shall be deferred for payment at the same time as the Award Account is paid under the terms of the Company’s Deferred Compensation Plan.

 

Notwithstanding the foregoing, the Company may delay payment of a Dividend Equivalent Payment as described in Section 6(viii) hereof.

 

5.         RESTRICTIONS

 

Unless provided otherwise by the Committee, the following restrictions apply to the Stock Units:

 

(i)         You shall be entitled to delivery of the shares of Common Stock underlying the Stock Units only as specified in Section 6 hereof;

 

(ii) All of the Stock Units shall be forfeited and all of your rights to such Stock Units and the right to receive Common Stock (and related Dividend Equivalent Payments) shall terminate without further obligation on the part of the Company in the event of your Separation from Service with the Company without having a right to delivery of shares of Common Stock under Section 6 hereof; and

 

(iii) Any Stock Units not earned as of the Restriction Period Termination Date shall be forfeited and all of your rights to such Stock Units, including any Dividend Equivalent Payments, shall terminate without further obligation on the part of the Company.

 

6.    ACCELERATION/LAPSE OF RESTRICTION PERIOD

 

Unless determined otherwise by the Committee and subject to Sections 6(vii) and 6(viii) hereof, the Stock Units shall be treated as follows:

 

(i)         Following the end of the Restriction Period and provided you have remained continuously employed by the Company through the Restriction Period Termination Date and absent any Change of Control before the Restriction Period Termination Date in which the acquiring or surviving company in the transaction does not assume or continue the outstanding Stock Units, shares of Common Stock equal to the number of Stock Units which are earned (as determined by the Committee) based on the achievement of the applicable Performance Criteria shall be delivered to you (through your account at the Company's third party stock plan administrator, if applicable) free of all restrictions except subject to the covenants contained in these Standard Terms and Conditions. The payment of the Stock Units under this Section 6(i) shall be made to you within thirty (30) days of the Restriction Period Termination Date, but in no event later than the last day of the calendar year that includes the Restriction Period Termination Date.

3

 

 

 

(ii)         If you: (A) have a Separation from Service with the Company due to (1) death or (2) Retirement (as such term is defined below in this Section 6(ii)) (including a Separation from Service for the reason described in Section 6(v) hereof on or after the date you satisfy the age and service criteria for Retirement); or (B) are determined to be disabled under the provisions of an applicable long-term disability plan of the Company (“Disability”) (each a “Lapse Event”), prior to the Restriction Period Termination Date and prior to a Change in Control in which the acquiring or surviving company in the transaction does not assume or continue the outstanding Stock Units, you, your estate or your beneficiary, as applicable (each a “Payee”), shall be entitled to receive shares of Common Stock equal to the number of Stock Units which are earned (as determined by the Committee) based on the average of all three fiscal years (2022, 2023 and 2024) of the applicable ROIC and relative OIG performance achieved, prorated based on the number of fiscal years in the Restriction Period during which you remained continuously employed by the Company until September 30th of that year (e.g., if your Lapse Event occurs on or after September 30, 2022, then the Payee would be entitled to receive payment for 33 1/3% of the earned Stock Units; if your Lapse Event occurs on or after September 30, 2023, then the Payee would be entitled to receive payment for 66 2/3% of the earned Stock Units; and if your Lapse Event occurs on or after September 30, 2024, then the Payee would be entitled to receive payment for 100% of the earned Stock Units). The payment of the Stock Units earned under this Section 6(ii) shall be made within thirty (30) days of the Restriction Period Termination Date, but in no event later than the last day of the calendar year that includes the Restriction Period Termination Date. The Stock Units paid in accordance with this Section 6(ii) remain subject to the covenants contained in these Standard Terms and Conditions. If you have a Lapse Event and subsequently return to employment with the Company before the end of the Restriction Period, you will not be eligible to earn additional Stock Units beyond those described in this Section 6(ii). “Retirement” shall mean a Separation from Service after having attained age 62 with at least 10 years of vesting service. For this purpose, vesting service shall be calculated by applying the rules for determining “Vesting Service” under the Pension Plan for Salaried Employees of Union Pacific Corporation and Affiliates (“UPC Pension Plan”), regardless of whether you were ever a participant in the UPC Pension Plan.

 

(iii)         Upon the occurrence of a Change in Control in which the acquiring or surviving company in the transaction does not assume or continue the outstanding Stock Units and such Change in Control occurs prior to both your Separation from Service for any reason and the Restriction Period Termination Date, shares of Common Stock equal to the number of Stock Units which are earned (as determined by the Committee) based on achievement of the applicable Performance Criteria through the end of each fiscal year ending prior to the occurrence of such Change in Control and through the end of the most recent fiscal quarter ending prior to the date of the Change in Control shall be delivered to you (through your account at the Company’s third party administrator, if applicable) free of all restrictions except subject to the covenants contained in these Standard Terms and Conditions. No additional Stock Units granted as part of the Award may be earned following the Change in Control. Shares of Common Stock to which you are entitled pursuant to this Section 6(iii) shall be delivered as soon as administratively practicable following the date on which the Change in Control occurs, but in no event later than two and one-half (21⁄2) months following the end of the calendar year that includes the date on which the Change in Control occurs.

4

 

 

 

(iv)         Except as provided in Section 6(v) hereof, in the event you have a Separation from Service with the Company prior to both you having satisfied the age and service criteria for Retirement and the Restriction Period Termination Date and, as a result of such Separation from Service, you are eligible for and entitled to payment of severance benefits under the provisions of a Severance Policy that include waiver of the continuous employment requirement applicable to the Stock Units, shares of Common Stock equal to the number or portion of the Stock Units determined under such Severance Policy, which are earned (as determined by the Committee) based on achievement of the Performance Criteria through the end of the fiscal year 2022, 2023 or 2024 (or portion thereof), as established under the Severance Policy, and for which the continuous employment requirement has been waived under the Severance Policy shall be delivered to you (through your account at the Company's third party stock plan administrator, if applicable) free of all restrictions except subject to the covenants contained in these Standard Terms and Conditions. The payment of the Stock Units under this Section 6(iv) shall be made at the time designated under the Severance Policy, but in no event later than two and one-half (21⁄2) months following the end of the calendar year that includes the date on which the Separation from Service occurs.

 

(v)         If you have not satisfied the age and service criteria for Retirement and have a Separation from Service prior to the Restriction Period Termination Date because your employment is involuntarily terminated by the Company (other than a termination as a result of your Disability, cause or gross misconduct as determined by the Committee), within twenty-four (24) months following a Change in Control, shares of Common Stock equal to the number of Stock Units which are earned (as determined by the Committee) based on achievement of the applicable Performance Criteria through the end of each fiscal year ending prior to the occurrence of such Change in Control and through the end of the most recent fiscal quarter ending prior to the date of the Change in Control shall be delivered to you (through your account at the Company’s third party administrator, if applicable) free of all restrictions except subject to the covenants contained in these Standard Terms and Conditions. The payment of the Stock Units under this Section 6(v) shall be made as soon as administratively practicable following your Separation from Service, but in no event later than two and one-half (21⁄2) months following the end of the calendar year that includes the date on which the Separation from Service occurs.

5

 

 

 

(vi)         Except as otherwise provided in this Section 6, all of the Stock Units shall be forfeited and all of your rights to such Stock Units shall terminate without further obligation on the part of the Company unless you remain in the continuous employment of the Company (such continuous employment shall, for this purpose, include a period of time during which you are absent from active employment in accordance with a leave of absence policy adopted by the Company) until the earlier of the Restriction Period Termination Date or a Change in Control in which the acquiring or surviving company in the transaction does not assume or continue the outstanding Stock Units. Notwithstanding the foregoing, the Committee may, if it finds that the circumstances in the particular case so warrant and subject to your satisfaction of any conditions the Company may require, allow you, even if you cease to be so continuously employed and have a Separation from Service prior to the earlier of the Restriction Period Termination Date or such Change in Control, to vest in some or all of the Stock Units which are earned (as determined by the Committee) based on achievement of the applicable Performance Criteria through the end of the fiscal year ending prior to the year in which such Separation from Service occurs. In such event, the payment of the Stock Units under this Section 6(vi) shall be made as soon as administratively practicable following the date on which the Committee authorizes such payment, but in no event later than two and one-half (21⁄2) months following the end of the calendar year that includes the date on which your Separation from Service occurs. The Stock Units paid in accordance with this Section 6(vi) remain subject to the covenants contained in these Standard Terms and Conditions.

 

(vii)         Notwithstanding the foregoing, you may elect to defer receipt of payment of shares underlying the Stock Units to the extent and according to the terms, if any, provided by the Deferred Compensation Plan. If you so elect to defer payment of shares underlying the Stock Units, such payments will be made in accordance with the Deferred Compensation Plan and with any payments of Dividend Equivalent Payments made in accordance with the provisions of Section 4.

 

(viii)         Notwithstanding the foregoing, the Company shall not be obligated to deliver any shares of Common Stock during any period when the Company determines that the delivery of shares hereunder would: (A) violate any federal, state or other applicable laws and/or may issue shares subject to any restrictive legend that, as determined by the Company’s counsel, is necessary to comply with securities or other regulatory requirements; or (B) result in the reduction or elimination of the Company’s deduction under Internal Revenue Code section 162(m) with respect to such delivery of shares. Furthermore, the date on which shares are delivered to you (and any Dividend Equivalent Payment thereon) may include a delay to provide the Company such time as it determines appropriate to calculate and certify the extent to which the Performance Criteria were satisfied and to calculate and address tax withholding and/or other administrative matters; provided, however, that delivery of shares of Common Stock underlying the Stock Units (including any Dividend Equivalent Payments) for Stock Units that are determined to be exempt from the requirements of Internal Revenue Code § 409A shall in all events be made at a time that satisfies the “short-term deferral” exception described in Treas. Reg. section 1.409A-1(b)(4) and for Stock Units subject to Internal Revenue Code section 409A shall in all events be made at a time that satisfies Treas. Reg. 1.409A-2(b)(7).

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PROTECTION OF CONFIDENTIAL INFORMATION AND TRADE SECRETS

 

7.         CONFIDENTIAL INFORMATION AND TRADE SECRETS

 

You acknowledge that the Company regards certain information relating to its business and operations as confidential. This includes all confidential and proprietary information concerning the assets, business or affairs of the Company or any customers thereof ("Confidential Information"). You further acknowledge that the Company has certain information that derives economic value from not being known to the general public or to others who could obtain economic value from its disclosure or use, which the Company takes reasonable efforts to protect the secrecy of ("Trade Secrets").

 

8.         TYPES OF CONFIDENTIAL INFORMATION OR TRADE SECRETS

 

You acknowledge that you developed or have had and will in the future continue to have access to one or more of the following types of Confidential Information or Trade Secrets: information about rates or costs; customer or supplier agreements and negotiations; business opportunities; scheduling and delivery methods; business and marketing plans; financial information or plans; communications within the attorney-client privilege or other privileges; operating procedures and methods; construction methods and plans; proprietary computer systems design, programming or software; strategic plans; succession plans; proprietary company training programs; employee performance, compensation or benefits; negotiations or strategies relating to collective bargaining agreements and/or labor disputes; and policies and internal or external claims or complaints regarding personal injuries, employment laws or policies, environmental protection, or hazardous materials. You agree that any unauthorized disclosures by you to any third party of such Confidential Information or Trade Secrets would constitute gross misconduct.

 

Notwithstanding the foregoing, in accordance with the Defend Trade Secrets Act of 2016, you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that (x) is made (i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (y) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

9.         AGREEMENT TO MAINTAIN CONFIDENTIAL INFORMATION

 

You agree to not, unless you received prior written consent from the senior human resources officer or such other person designated in writing by the Company (hereinafter collectively referred to as the "Sr. HR Officer"), or unless ordered by a court or government agency, (i) divulge, use, furnish or disclose to any subsequent employer or, except to the extent necessary to perform your job responsibilities with the Company, any other person, whether or not a competitor of the Company, any Confidential Information or Trade Secrets, or (ii) retain or take with you when you leave the Company any property of the Company or any documents (including any electronic or computer records) relating to any Confidential Information or Trade Secrets.

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10.         PRIOR NOTICE OF EMPLOYMENT 

 

(i) You acknowledge that if you become an employee, contractor, or consultant for any other person or entity engaged in the Business of the Company, as defined in Section 13, it would create a substantial risk that you would, intentionally or unintentionally, disclose or rely upon the Company’s Confidential Information or Trade Secrets for the benefit of the other person or entity to the detriment of the Company. You further acknowledge that such disclosures would be particularly damaging if made shortly after you leave the Company. You agree that while you are employed by or working for the Company and for a period of one (1) year after you leave the Company, before accepting any employment or affiliation with another person or entity, you will give written notice to the Sr. HR Officer of your intention to accept such employment or affiliation. You also agree to confer in good faith with the Sr. HR Officer concerning whether your proposed employment or affiliation could reasonably be expected to be performed without improper disclosure of Confidential Information or Trade Secrets.

 

(ii) If you and the Sr. HR Officer are unable to reach agreement on this issue, you agree to submit this issue to arbitration as set forth in Section 16 below, for final resolution. You cannot begin to work for another person or entity engaged in the Business as defined in Section 13, until the Sr. HR Officer or an arbitrator has determined that such employment could reasonably be expected to be performed without improper disclosure of the Company’s Confidential Information or Trade Secrets.

 

11.         NON-SOLICITATION OF CUSTOMERS

 

You agree that during employment with the Company, and for a period of one (1) year following your departure from the Company, you will not (directly or indirectly, in association with others or otherwise) call on or solicit any of the Company’s customers with whom you had personal contact during the period from the Grant Date of this Award until the Restriction Period Termination Date (or, if earlier, the date your employment with the Company ceased), for the purpose of providing the customers with goods and/or services similar in nature to those provided by the Company in its Business as defined below in Section 13.

 

12.         NON-SOLICITITATION OF EMPLOYEES

 

You agree that during employment with the Company, and for a period of one (1) year following your departure from the Company, you will not (directly or indirectly, in association with others or otherwise), participate in hiring or attempting to hire away a Company employee or contractor, or induce or encourage any employees or contractors of the Company to terminate their relationship with the Company, without prior written consent of the Sr. HR Officer.

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13.         NON-COMPETITION

 

You agree that during employment with the Company, and for a period of one (1) year following your departure from the Company, you will not (directly or indirectly, in association with others or otherwise) engage in any activity which is the same and/or substantially the same as or competitive with the Business (as defined below) including, without limitation, engagement as an officer, director, proprietor, employee, partner, manager, member, investor (other than as a holder of less than 2% of the outstanding capital stock of a publicly traded corporation), guarantor, consultant, advisor, agent, sales representative or other participant, in any market in which the Company conducts its Business. For purposes of these Standard Terms and Conditions, the term “Business” means the transportation of goods in interstate commerce and related services in or through or for any state in which the Company or any of its affiliates provides such services directly or indirectly and any other activity that supports such operations including by the way of example but not limitation, marketing, information systems, logistics, technology development or implementation, terminal services and any other activity of the Company or any of its affiliates. This Section 13 is not intended to prevent you from engaging in any activity that is not substantially the same as or competitive with the Company’s Business.

 

14.         INJUNCTIVE RELIEF

 

You agree that each of the restraints contained herein is necessary for the protection of the goodwill, Confidential Information, Trade Secrets and other legitimate interests of the Company; that each and every one of these restraints is reasonable in respect to subject matter, length of time and geographic area; and that these restraints, neither individually nor in the aggregate, will not prevent you from obtaining other suitable employment during the period in which you are bound by such restraints. You further acknowledge that, if you breach any one or more of the covenants contained in Sections 7, 8, 9, 10, 11, 12, or 13, the damage to the Company would be irreparable. You therefore agree that the Company, in addition to any other remedies available to it, including, without limitation, the remedies set forth in Sections 15 and 16, shall be entitled to injunctive relief against your breach or threaten breach of said covenants. You and the Company further agree that, in the event that any one or more of the provisions of Sections 7, 8, 9, 10, 11, 12, or 13 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being overly broad as to time and/or scope, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law.

 

15.         VIOLATION OF PROMISES

 

You agree that if you violate any one or more of the promises set forth in Sections 7, 8, 9, 10, 11, 12, or 13, then, in lieu of or in addition to any other remedies available to Company as permitted by applicable law, all unvested Stock Units subject to this Award shall be immediately forfeited. If at any time the Committee or the Sr. HR Officer notifies (the date such notice is provided, the “Notice Date”) the Company that they reasonably believe that you have violated any one or more of the promises set forth in Sections 7, 8, 9, 10, 11, 12, or 13, the vesting of this Award may be suspended pending a determination of whether you violated any such provision by a tribunal as specified in Section 16 and 18 below. In addition, in lieu of or in addition to any remedy provided for in Section 14, at any time the Company may seek in any such proceeding that you be required to immediately deliver to the Company any shares of Common Stock (or the fair market value thereof) and any related Dividend Equivalent Payments earned by or issued to you pursuant to this Award at any time during the three (3) full fiscal years preceding the Notice Date. You agree that you will deliver such shares of Common Stock (or the fair market value thereof) and any related Dividend Equivalent Payments to the Company on such terms and conditions as may be required by the Company. You further agree that the Company will be entitled to enforce this repayment obligation by all legal means available, including, without limitation, to set off the market value of any such shares of Common Stock and any related Dividend Equivalent Payments against any amount that might be owed to you by the Company.

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GENERAL

 

16.         DISPUTE RESOLUTION

 

You and the Company each agree that any controversy, claim, or dispute arising out of or relating to these Standard Terms and Conditions or arising out of or relating to your employment relationship with the Company or any of its affiliates, the termination of such relationship, or your conduct following the termination of such relationship, shall be resolved by binding arbitration before a neutral arbitrator on an individual basis only, and not in any form of class, collective, or private attorney general representative proceeding. By way of example only, claims subject to this agreement to arbitrate include claims litigated under federal, state and local statutory or common law, such as the Family Medical Leave Act, the Age Discrimination in Employment Act of 1967, Older Workers Benefit Protection Act of 1990, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1990, the Americans with Disabilities Act, the Federal Employers Liability Act, the Federal Railway Safety Act, the Worker Adjustment and Retraining Notification Act, the Genetic Information Nondiscrimination Act, the law of contract and the law of tort. You and the Company each agree that such claims may be brought in an appropriate administrative forum, but at the point at which you or the Company seek a judicial forum to resolve the matter, this agreement for binding arbitration becomes effective, and you and the Company each hereby knowingly and voluntarily waive any right to have any such dispute tried and adjudicated by a judge or jury.

 

The parties will submit the dispute, within 30 business days following service of notice of such dispute by one party on the other, to the American Arbitration Association (AAA) for prompt resolution in Salt Lake City, Utah, under its rules for employment disputes. There shall be a single arbitrator, chosen in accordance with such rules, who at such time shall be on AAA’s Judicial Panel. The decision of the arbitrator will be final and binding upon the parties, and judgment may be entered thereon in accordance with applicable law in any court having jurisdiction. The arbitrator shall have the authority to make an award of monetary damages and interest thereon. The arbitrator shall have no authority to award, and the parties hereby waive any right to seek or receive, specific performance or an injunction, punitive or exemplary damages. The arbitrator will have no authority to order a modification or amendment of these Standard Terms and Conditions. The arbitrator shall have the authority to award costs of arbitration, including reasonable attorney’s fees, to the prevailing party, but in the absence of such award the parties shall bear their own attorney and filing fees unless otherwise agreed upon mutually by the parties or required by law. The Company shall bear the cost of the arbitrator’s fees.

 

Notwithstanding the foregoing, the Company may seek injunctive relief to enforce any one or more of the employee covenants set forth in Sections 7, 8, 9, 10, 11, 12, 13 or 15 of these Terms and Conditions, in a court of competent jurisdiction as set forth in Section 18 below.

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17.         SEVERABILITY

 

If any provision of these Standard Terms and Conditions is, becomes, or is deemed to be invalid, illegal, or unenforceable in any jurisdiction, such provision shall be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Company, it shall be stricken and the remainder of these Standard Terms and Conditions shall remain in force and effect.

 

18.         CHOICE OF LAW; JURISDICTION

 

All questions pertaining to the construction, regulation, validity, and effect of these Standard Terms and Conditions shall be determined in accordance with the laws of the State of Utah, without regard to the conflict of laws doctrine. With respect to any claim or dispute involving your Award and/or these Standard Terms and Conditions that is not subject to the arbitration pursuant to Section 16 hereof, you and the Company each hereby consent and submit to the personal jurisdiction and venue of any state or federal court located in the county of Salt Lake City within the State of Utah and, recognizing the appropriateness of the State of Utah for any such matters due to the Company being incorporated in Utah, you and the Company hereby agree and consent to the state and federal courts located in the county of Salt Lake City within the State of Utah as the sole and exclusive forum for resolution of any and all claims, causes of action or disputes arising out of or related to your Award and these Standard Terms and Conditions (including all terms incorporated by reference into these Standard Terms and Conditions). With respect to employees who are subject to California law, Sections 10(ii), 11, and 13 shall not apply.

 

19.         AMENDMENTS

 

The Plan and these Standard Terms and Conditions may be amended or altered by the Committee or the Company’s Board of Directors to the extent provided in the Plan.

 

20.         RESTRICTIONS ON RESALES OF SHARES

 

The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by you or other subsequent transfers by you of any Common Stock issued in respect of vested Stock Units, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by you and other holders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.

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21.         INCOME TAXES

 

The Company shall not deliver shares in respect of any Stock Units unless and until you have made satisfactory arrangements to pay or otherwise satisfy all applicable tax withholding obligations. Unless you pay the tax withholding obligations to the Company by cash or check in connection with the delivery of the Common Stock and any related Dividend Equivalent Payments, withholding may be effected, at the Company’s option, by withholding Common Stock issuable in connection with the vesting of the Stock Units (provided that shares of Common Stock may be withheld only to the extent that such tax withholding will not result in adverse accounting treatment for the Company) or withholding any related Dividend Equivalent Payments. You acknowledge that the Company shall have the right to deduct any taxes required to be withheld by law in connection with the Stock Units from any amounts payable by it to you (including, without limitation, future cash wages).

 

22.         NON-TRANSFERABILITY OF AWARD

 

You understand, acknowledge and agree that, except as otherwise provided in the Plan, the Stock Units may not be sold, assigned, transferred, pledged or otherwise directly or indirectly encumbered or disposed of prior to the payment of the Common Stock to you as provided in Section 6 hereof. Your beneficiaries and anyone claiming an interest in the Stock Units through you are subject to all of the terms and conditions applicable to you, other than the covenants set forth in Sections 7, 8, 9, 10, 11, 12 and 13.

 

23.         CLAWBACK AND RECOUPMENT

 

If you are or become a Covered Person under the Company’s Policy for Recoupment of Incentive Compensation, you agree that your Award is subject to recoupment, including in connection with a financial restatement or any detrimental conduct, pursuant to and in accordance with the Company’s Policy for Recoupment of Incentive Compensation, as amended from time to time, and pursuant to any other policy the Company may adopt pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, other applicable law, or stock exchange listing standard. No recovery of compensation under such a clawback policy shall be treated as an event giving rise to a right to terminate employment for “good reason” or “constructive termination” (or any similar term) under any agreement with the Company.

 

24.         LIMITATION OF INTEREST IN SHARES SUBJECT TO RESTRICTED STOCK UNITS         

 

Neither you (individually or as a member of a group) nor any beneficiary or other person claiming by, under or through you shall have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for the purpose of the Plan, the Long Term Plan or subject to the Grant Notice or these Standard Terms and Conditions except as to such shares of Common Stock, if any, as shall have been issued to such person upon vesting of the Stock Units, which shares shall remain subject to the conditions set forth in these Standard Terms and Conditions. Nothing in the Plan, the Long Term Plan, the Grant Notice, these Standard Terms and Conditions or any other instrument executed pursuant to the Plan shall confer upon you any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate your employment at any time for any reason.

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25.         OTHER AGREEMENTS SUPERSEDED

 

The Grant Notice, these Standard Terms and Conditions, the Plan and the Long Term Plan constitute the entire understanding between you and the Company regarding the Stock Units. Any prior agreements, commitments or negotiations concerning the Stock Units are superseded.

 

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