Document:

Exhibit 10.2 (Performance Based Annual Incentive Plan)

EXHIBIT 10.2

AMENDED AND RESTATED
ORBITZ WORLDWIDE, INC.
PERFORMANCE-BASED ANNUAL INCENTIVE PLAN
(As amended and restated, effective June 12, 2012)

1.  PURPOSE

The purpose of the Orbitz Worldwide, Inc. Performance-Based Incentive Plan (as amended from time to time, the “Plan”) is to reward and recognize eligible employees for their contributions towards the achievement by Orbitz Worldwide, Inc. (together with its subsidiaries, the “Company”) of certain Performance Goals (as defined below).  The Plan is designed with the intention that the incentives paid hereunder to certain executive officers of the Company are deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder (the “Code”).  However, the Company cannot guarantee that awards under the Plan will qualify for exemption under Section 162(m) and circumstances may present themselves under which awards under the Plan do not comply with Section 162(m).  The adoption of the Plan as to current and future covered employees (as determined under Code Section 162(m)) is subject to the approval of the Company's shareholders.

2.  DEFINITIONS

The following definitions shall be applicable throughout the Plan:

		
	(a)
	“Award” means the amount of a cash incentive payable under the Plan to a Participant with respect to a Performance Period.

		
	(b)
	“Board” means the Board of Directors of the Company, as constituted from time to time.

		
	(c)
	“Committee” means the Compensation Committee of the Board or another Committee designated by the Board which is comprised of two or more “outside directors” as defined in Code Section 162(m).

		
	(d)
	“Participant” means any officer or key employee of the Company who is designated as a Participant by the Committee.

		
	(e)
	“Performance Goal” means an objective formula or standard determined by the Committee with respect to each Performance Period based on one or more of the following criteria and any objectively verifiable adjustment(s) thereto permitted and pre-established by the Committee in accordance with Code Section 162(m): (i) pre-tax income or after-tax income; (ii) income or earnings including operating income, earnings before or after taxes, interest, depreciation and/or amortization; (iii) net income excluding amortization of intangible assets, depreciation and impairment of goodwill and intangible assets and/or excluding charges attributable to the adoption of new accounting pronouncements; (iv) earnings or book value per share (basic or diluted); (v) return on assets (gross or net), return on investment, return on capital, or return on equity; (vi) return on revenues; (vii) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (viii) economic value created; (ix) operating margin or profit margin; (x) room nights; (xi) stock price or total stockholder return; (xii) income or earnings from continuing operations; (xiii) capital expenditures, cost targets, reductions and savings and expense management; and (xiv) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration or market share, geographic business expansion, objective customer satisfaction or information technology goals, and objective goals relating to divestitures, joint ventures, mergers, acquisitions and similar transactions, each with respect to the Company and/or one or more of its subsidiaries, divisions or business units.  Awards issued to Participants who are not subject to the limitations of Code Section 162(m) may take into account other factors (including subjective factors).

		
	(f)
	“Performance Period” means any period not exceeding 36 months as determined by the Committee, in its sole discretion.  The Committee may establish different Performance Periods for different Participants, and the Committee may establish concurrent or overlapping Performance Periods.

3.  ADMINISTRATION

The Plan shall be administered by the Committee, which shall have the discretionary authority to interpret the provisions of the Plan, including all decisions on eligibility to participate, the establishment of Performance Goals, the amount of Awards payable under the Plan, and the payment of Awards.  The Committee shall also have the discretionary authority to establish rules under 

the Plan so long as such rules do not explicitly conflict with the terms of the Plan and any such rules shall constitute part of the Plan.  The decisions of the Committee shall be final and binding on all parties making claims under the Plan.  The Committee has delegated its administrative authority with respect to Awards issued to Participants who are not current or future covered employees (as defined in Section 1) or executive officers, including as to matters with respect to the interpretation of, and implementation of rules under, the Plan, to the most senior officer of the Company having principal oversight for human resources matters (currently, the Chief Administrative Officer).

4.  ELIGIBILITY

Officers and key employees of the Company shall be eligible to participate in the Plan as determined at the sole discretion of the Committee.

5.  AMOUNT OF AWARDS

With respect to each Participant, the Committee will establish one or more Performance Periods, an individual Participant incentive target for each Performance Period and the Performance Goal(s) to be met during such Performance Period(s). With respect to Participants who are or may become subject to Code Section 162(m), in order to qualify as performance-based compensation, the establishment of the Performance Period(s), the applicable Performance Goals and the targets must occur in compliance with and to the extent required by the rules and regulations of Code Section 162(m).

The maximum amount of any Award that can be paid under the Plan to any Participant during any Performance Period is $10,000,000.  The Committee reserves the right, in its sole discretion, to reduce or eliminate the amount of an Award otherwise payable to a Participant with respect to any Performance Period.  In addition, with respect to Awards issued to Participants who are not subject to the limitations of Code Section 162(m), the Committee reserves the right, in its sole discretion, to increase the amount of an Award otherwise payable to a Participant with respect to any Performance Period.

6.  PAYMENT OF AWARDS

(a)  Unless otherwise determined by the Committee, a Participant must be actively employed (or on a qualified leave of absence) and in good standing with the Company on the date the Award is to be paid.  The Committee may make exceptions to this requirement in the case of retirement, death or disability, an unqualified leave of absence or under other circumstances, as determined by the Committee in its sole discretion.

(b)  Any distribution made under the Plan shall be made in cash and occur within a reasonable period of time after the end of the Performance Period in which the Participant has earned the Award but may occur prior to the end of the Performance Period with respect to Awards issued to Participants who are not subject to the limitations of Code Section 162(m); provided that no Award shall become payable to a Participant who is subject to the limitations of Code Section 162(m) with respect to any Performance Period until the Committee has certified in writing that the terms and conditions underlying the payment of such Award have been satisfied.

Notwithstanding the foregoing, in order to comply with the short-term deferral exception under Code Section 409A, if the Committee waives the requirement that a Participant must be employed on the date the Award is to be paid, payout shall occur no later than the 15th day of the third month following the later of (i) the end of the Company's taxable year in which such requirement is waived or (ii) the end of the calendar year in which such requirement is waived.

7. GENERAL

(a)  TAX WITHHOLDING.  The Company shall have the right to deduct from all Awards any federal, state or local income and/or payroll taxes required by law to be withheld with respect to such payments.

(b)  CLAIM TO AWARDS AND EMPLOYMENT RIGHTS.  Nothing in the Plan shall confer on any Participant the right to continued employment with the Company, or affect in any way the right of the Company to terminate the Participant's employment at any time, and for any reason, or change the Participant's responsibilities.  Awards represent unfunded and unsecured obligations of the Company and a holder of any right hereunder in respect of any Award shall have no rights other than those of a general unsecured creditor to the Company.

(c)  BENEFICIARIES.  To the extent the Committee permits beneficiary designations, any payment of Awards under the Plan to a deceased Participant shall be paid to the beneficiary duly designated by the Participant in accordance with the Company's practices.  If no such beneficiary has been designated or survives the Participant, payment shall be made to the Participant's legal 

representative.

(d)  NONTRANSFERABILITY.  A person's rights and interests under the Plan, including any Award previously made to such person or any amounts payable under the Plan, may not be sold, assigned, pledged, transferred or otherwise alienated or hypothecated except, in the event of a Participant's death, to a designated beneficiary as provided in the Plan, or in the absence of such designation, by will or the laws of descent and distribution.

(e)  INDEMNIFICATION.  Each person who is or shall have been a member of the Committee and each employee of the Company who is delegated a duty under the Plan shall be indemnified and held harmless by the Company from and against any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit or proceeding to which he may be a party or in which he may be involved by reason of any action or failure to act under the Plan and against and from any and all amounts paid by him in satisfaction of judgment in any such action, suit or proceeding against him, provided such loss, cost, liability or expense is not attributable to such person's willful misconduct.  Any person seeking indemnification under this provision shall give the Company prompt notice of any claim and shall give the Company an opportunity, at its own expense, to handle and defend the same before the person undertakes to handle and defend such claim on his or her own behalf.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled, including under the Company's Certificate of Incorporation or By-Laws, as a matter of law, or any power that the Company may have to indemnify them or hold them harmless.

(f)  EXPENSES.  The expenses of administering the Plan shall be borne by the Company.

(g)  TITLES AND HEADINGS.  The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

(h)  GOVERNING LAW. The validity, construction, and effect of the Plan, any rules and regulations relating to the Plan, and any Award shall be determined in accordance with the laws of the State of Illinois (without regard to the principles of conflicts of laws thereof) and applicable federal law.  No Award made under the Plan shall be intended to be deferred compensation under Code Section 409A and will be interpreted accordingly.

(i)  AMENDMENTS AND TERMINATION.  The Committee may terminate the Plan at any time, provided such termination shall not affect the payment of any Awards accrued under the Plan prior to the date of the termination.  The Committee may, at any time, or from time to time, amend or suspend and, if suspended, reinstate, the Plan in whole or in part; provided, however, that any amendment of the Plan shall be subject to the approval of the Company's shareholders to the extent required to comply with the requirements of Code Section 162(m), or any other applicable laws, regulations or rules.ex10-1.htm

Exhibit 10.1

 

FIRST AMENDMENT AGREEMENT

 

This FIRST AMENDMENT AGREEMENT (this “Agreement”), dated as of June 14, 2012, is made by and among GENTA INCORPORATED, a Delaware corporation (the “Company”), and the undersigned parties (each a “June Purchaser” and collectively the “June Purchasers”).  Capitalized terms used herein and not defined shall have the meanings set forth in the Securities Purchase Agreement (as defined below).

 

WHEREAS, the Company and the Purchasers entered into a Securities Purchase Agreement dated as of March 28, 2012 (the “Securities Purchase Agreement”) pursuant to which the Company issued to the Purchasers I Notes;

 

WHEREAS, the Company and the undersigned June Purchasers agree to amend certain provisions of the Securities Purchase Agreement to, among other things, increase the aggregate principal amount of I Notes issuable by the Company;

 

WHEREAS, the undersigned June Purchasers represent the Requisite Purchasers; and

 

WHEREAS, the Company has requested that the Purchasers purchase an additional $2,500,000 principal amount of I Notes under the Purchase Option in an Additional Closing as of the date hereof (the “June Additional Closing”).

 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.           Amendment to the Securities Purchase Agreement.  The Securities Purchase Agreement is hereby amended as follows:

 

(a)           The first sentence of Section 1.1 is hereby amended and restated to read in its entirety as follows:

 

1.1           “Purchase and Sale of Notes.  Upon the following terms and conditions, the Company shall issue and sell to the Purchasers, and the Purchasers shall purchase from the Company, 6.00% senior secured convertible promissory notes due March 30, 2022 convertible into shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), in substantially the form attached hereto as Exhibit B (the “I Notes”), in an aggregate amount of up to $16,000,000, such amount to be paid in cash and other forms of consideration approved by the board of directors of the Company (the “Purchase Price”).”

 

  

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(b)           Section 1.2(b) is hereby amended and restated to read in its entirety as follows:

 

(b)           For purposes of this Agreement, “Expiration Date” shall mean the date that is five (5) years from the First Closing Date.  At any time and from time to time on or prior to the Expiration Date, each of the Purchasers shall have the option (the “Purchase Option”), in each such Purchaser’s sole discretion (subject to Section 1.2(c)), to purchase additional I Notes up to the amount set forth opposite such Purchaser’s name on Exhibit A in one or more closings (each an “Additional Closing”, and along with the First Closing and June Additional Closing (as defined below), each a “Closing”) at such time the Purchaser chooses (subject to Section 1.2(c)) (an “Additional Closing Date”, and along with the First Closing Date and date of the June Additional Closing, each a “Closing Date”). The first Additional Closing shall take place on June 14, 2012 (the “June Additional Closing”), whereby such Purchasers shall purchase from the Company, and the Company shall issue, an aggregate amount of up to $2,500,000 in additional I Notes for cash consideration as set forth on Exhibit A. The issuance of such additional I Notes at any Additional Closing, shall be made on the terms and conditions set forth in this Agreement, and the representations and warranties of the Company set forth in Article 2 and the representations and warranties of such Purchaser or June Purchaser in Article 2 hereof shall speak as of the date of the applicable Closing Date.  Any I Notes issued pursuant to this Section 1.2(b) shall be deemed to be “Notes” for all purposes under this Agreement.

 

(c)           A new Section 1.2(c) shall be added as follows:

 

(c)           Notwithstanding the foregoing provisions of Section 1.2(b), any Purchaser who does not purchase its pro rata portion of the aggregate $2,500,000 in additional I Notes in the June Additional Closing as set forth on Exhibit A shall forfeit the entire principal amount of such Purchaser’s Purchase Option.  The provisions of this Section 1.2(c) shall not apply to those Purchasers who were issued Notes in the First Closing for consideration other than cash.

 

(d)           Exhibit A to the Securities Purchase Agreement is hereby amended and restated in its entirety as set forth on Exhibit A to this Agreement.

 

(e)           Schedule I to the Securities Purchase Agreement is hereby amended and restated in its entirety as set forth on Exhibit B to this Agreement.

 

2.           The Securities Purchase Agreement, except as amended hereby, shall otherwise remain in full force and effect.

 

  

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3.           Pro Rata Purchase of I Notes in the June Additional Closing.  Each of the June Purchasers, comprising all of the Purchasers participating in the June Additional Closing, hereby agree to purchase the aggregate principal amount of I Notes in the June Additional Closing as set forth opposite such June Purchaser’s name on Exhibit A.

 

4.           Representations and Warranties of the Grantor.  The Company and each Grantor, pursuant to that certain Amended and Restated General Security Agreement, dated as of March 30, 2012 (the “Security Agreement”), hereby affirm that the representations and warranties in Section 5 of the Security Agreement are true and correct and speak as of the date hereof.

 

5.           Specific Performance; Consent to Jurisdiction; Venue.

 

(a)           The Company and the June Purchasers acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof without the requirement of posting a bond or providing any other security, this being in addition to any other remedy to which any of them may be entitled by law or equity.

 

(b)           The parties agree that venue for any dispute arising under this Agreement will lie exclusively in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the proper venue.  The parties irrevocably consent to personal jurisdiction in the state and federal courts of the state of New York.  The Company and each June Purchaser consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this Section 5(b) shall affect or limit any right to serve process in any other manner permitted by law.  The Company and the June Purchasers hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Agreement, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party.  The parties hereby waive all rights to a trial by jury.

 

6.           Disclosure.  The Company shall also file with the SEC a Current Report on Form 8-K (the “Form 8-K”) describing the material terms of the transactions contemplated in this Agreement on June 15, 2012, which Form 8-K shall be subject to prior review and comment by the June Purchasers.

 

  

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7.           Entire Agreement; Amendment. The Securities Purchase Agreement, the I Notes, the Security Agreement, this Agreement and the Transaction Documents contain the entire understanding and agreement of the parties with respect to the matters covered hereby and, except as specifically set forth herein, neither the Company nor any June Purchaser make any representation, warranty, covenant or undertaking with respect to such matters, and they supersede all prior understandings and agreements with respect to said subject matter, all of which are merged herein.  No provision of this Agreement may be waived or amended other than by a written instrument signed by the Company and the Requisite Purchasers; provided that if any of the rights under this Agreement of any Purchaser are materially diminished or the obligations under this Agreement of any Purchaser are materially increased by such waiver or amendment, in each case in a manner that is not similar in all material respects to the effect on the rights or obligations of other Purchasers, then such waiver or amendment shall not be effective with respect to such adversely affected Purchaser without the written consent of such adversely affected Purchaser.  The Purchasers acknowledge that any amendment or waiver effected in accordance with this section shall be binding upon each Purchaser (and their permitted assigns) and the Company, including, without limitation, an amendment or waiver that has an adverse effect on any or all Purchasers.  Except as amended herein, the Securities Purchase Agreement shall remain in full force and effect.

 

8.           Notices.  Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery, by telecopy, facsimile or electronic transmission to the address(es) or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

	
If to the Company or its Subsidiaries:

	
Genta Incorporated

200 Connell Drive

Berkeley Heights, NJ 07922

Attention: Raymond P. Warrell, Jr., M.D.

Telephone No.: (908) 286-9800

Telecopy No.: (908) 464-1705

Email: Warrell@genta.com

 

	
with copies to:

	
Morgan, Lewis & Bockius LLP

502 Carnegie Center

Princeton, NJ 08540

Attention: Emilio Ragosa

Telephone No.: (609) 919-6633

Telecopy No.: (609) 919-6701

Email: eragosa@morganlewis.com

 

	
If to any June Purchaser:

	
At the address of such June Purchaser as specified in writing by such June Purchaser with copies to June Purchaser’s counsel, with a copy to:

 

	
With a copy to:

	
Ropes & Gray LLP

Three Embarcadero Center

San Francisco, CA 94111

Attention: Ryan Murr

Telephone No.: (415) 315-6395

Telecopy No.: (415) 315-6365

Email: ryan.murr@ropesgray.com

 

  

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Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

 

9.             Waivers.  No waiver by a party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

10.           Headings.  The article, section and subsection headings in this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof.

 

11.           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.  The June Purchasers may assign the rights under this Agreement without the consent of the Company.

 

12.           No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

13.           Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.

 

14.           Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart.

 

15.           Publicity.  The Company agrees that it will not disclose, and will not include in any public announcement, the names of the June Purchasers without the consent of the June Purchasers, which consent shall not be unreasonably withheld or delayed, or unless and until such disclosure is required by law, rule or applicable regulation, and then only to the extent of such requirement.  Notwithstanding the foregoing, the June Purchasers consent to being identified in any filings the Company makes with the SEC to the extent required by law or the rules and regulations of the SEC.

 

16.           Severability.  The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the maximum extent possible.

 

17.           Further Assurances.  From and after the date of this Agreement, upon the request of the June Purchasers or the Company, the Company and each June Purchaser shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

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IN WITNESS WHEREOF, the parties have caused this First Amendment Agreement to be executed as of the date set forth above.

 

	 	GENTA INCORPORATED	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name: 	Raymond P. Warrell, Jr., M.D.	 
	 	Title:	Chairman and Chief Executive Officer	 
	 	 	 	 

 

 

[Signature Page to First Amendment Agreement]

  

 

  

 

IN WITNESS WHEREOF, the undersigned have caused this First Amendment Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

Name of June Purchaser: __________________________________________________________________________________________________________

 

Signature of Authorized Signatory of June Purchaser: ____________________________________________________________________________________

 

Name of Authorized Signatory: _____________________________________________________________________________________________________

 

Title of Authorized Signatory: ______________________________________________________________________________________________________

 

Email Address of June Purchaser:____________________________________________________________________________________________________

 

Fax Number of June Purchaser: _____________________________________________________________________________________________________

 

 

[Signature Page to First Amendment Agreement]

  

 

  

 

EXHIBIT A

 

LIST OF PURCHASERS

 

 

 

  

  

  

 

 

 

 

EXHIBIT B

 

SCHEDULE I

SCHEDULE OF EXCEPTIONS

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