Document:

Exhibit 10.4

 

PATENT LICENSE AGREEMENT

 

THIS PATENT LICENSE AGREEMENT (“Agreement”) is entered into as of November 19, 2014 (the “Effective Date”) between AMERICAN INFRASTRUCTURE FUNDS, LLC, having a principal place of business located at 950 Tower Lane, Suite 800, Foster City, CA  94404  (“AIF”), and LANDMARK INFRASTRUCTURE PARTNERS LP, having a principal place of business located at 2141 Rosencrans Avenue, Suite 2100, El Segundo, CA  90245 (“Licensee”).  AIF  and Licensee are referred to collectively as the “Parties,” and each is sometimes referred to individually as a “Party.”

 

RECITALS

 

WHEREAS, AIF owns certain patents related to an apparatus and method for combining easements under a master limited partnership; and

 

WHEREAS, Licensee desires to obtain a nonexclusive license from AIF to practice these patent rights, and AIF is willing to grant such a license to Licensee, on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, the Parties agree as follows:

 

AGREEMENT

 

1.                                      DEFINITIONS.  The following capitalized terms shall have the meanings ascribed to them below:

 

1.1                               “Contract Year” means any twelve-month period during the term of the Agreement that begins on (a) the Effective Date; or (b) any anniversary of the Effective Date.  Contract Years may be referred to sequentially, such that the “first Contract Year” means the twelve-month period beginning on the Effective Date, the “second Contract Year” means the twelve-month period beginning on the first anniversary of the Effective Date, and so forth.

 

1.2                               “Gross Revenue” means the gross revenue actually received by Licensee from all sources during a given period of time.

 

1.3                               “Improvement”  means any improvement, modification, or variation of the inventions, methods, apparatuses, or technology claimed or described in any of the Licensed Patents, including all patent applications and patents resulting therefrom.

 

1.4                               “Licensed Method” means any method or process that, if used or performed by the Licensee in the absence of the license granted in Section 2.1 (License Grant), would infringe one or more claims of a Licensed Patent.

 

1.5                               “Licensed Patents” means (a) the patents and patent applications listed in EXHIBIT A; (b) any patents issuing from any of the patent applications listed in EXHIBIT A; and (c) any Licensee Improvement Patents assigned to AIF by Licensee pursuant to Section 3.2 (Assignment).

 

1.6                               “Licensed Product” means any product or service that (a) would infringe one or more claims of a Licensed Patent, but for the license granted in Section 2.1 (License Grant); and (b) is, or has been, designed by or for Licensee pursuant to specifications created and owned by Licensee, and is marketed and sold under the trade name or an established or registered brand name or trademark of Licensee.

 

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1.7                               “Licensee Change of Control” means AIF ceases to control, directly or indirectly, the Licensee.  For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the Licensee, whether through ownership of voting securities, by contract, or otherwise.

 

2.                                      LICENSES

 

2.1                               License Grant.  Subject to the terms and conditions of this Agreement, AIF hereby grants to Licensee a nonexclusive, nontransferable license (with no right to sublicense), during the term of this Agreement, under the Licensed Patents, to (a) make, use, import, sell, and offer for sale Licensed Products; and (b) practice any Licensed Methods.

 

2.2                               No Implied License.  Except as expressly provided in Section 2.1 (License Grant), nothing in this Agreement is intended to confer, by implication, estoppel, or otherwise, upon Licensee any license to or rights in any intellectual property rights of AIF.  As between Licensee and AIF, AIF owns all rights in the Licensed Patents.  All rights in AIF’s patents, trademarks, and other intellectual property that are not expressly granted in Section 2.1 (License Grant) are reserved by AIF.

 

2.3                               No Delivery Obligation.  Notwithstanding anything to the contrary in this Agreement, AIF has no obligation to transfer, deliver, or otherwise provide any know-how, technology, equipment, confidential information, technical assistance, support, or any other materials or services to Licensee in connection with this Agreement.

 

2.4                               Prosecution, Maintenance, and Enforcement.  AIF will have sole control over, and exclusive responsibility for, all prosecution and maintenance of the Licensed Patents, and any enforcement action taken against third parties in AIF’s sole discretion for infringement of the Licensed Patents.  Licensee will reimburse AIF for all of AIF’s costs and expenses incurred in such prosecution, maintenance, or enforcement.  AIF will invoice Licensee for such costs and expenses on a quarterly basis, and Licensee shall pay such invoiced amounts within thirty (30) days after the date of invoice.  Licensee will promptly notify AIF if it becomes aware of any suspected infringement of the Licensed Patents by a third party.

 

3.                                      IMPROVEMENTS

 

3.1                               Notification.  Licensee will notify AIF in writing within thirty (30) days after the filing of any patent application (or the issuance of any patent) based on any Improvement conceived, made, reduced to practice, invented, or developed by or on behalf of Licensee (a “Licensee Improvement Patent”).

 

3.2                               Assignment.  Licensee hereby assigns to AIF ownership of all right, title, and interest in and to all Licensee Improvement Patents, subject to the license granted back to Licensee pursuant to Section 2.1 (License Grant).  The foregoing assignment includes all rights to apply for any intellectual property rights with respect to such underlying Improvement, all causes of action and enforcement rights and remedies for past, current, and future infringement, and all rights to collect royalties and damages for the Licensee Improvement Patents.  At the request of AIF, Licensee will promptly execute and deliver such documents as may be necessary or desirable for effecting and perfecting the foregoing assignment of rights.

 

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4.                                      PATENT MARKING.  Licensee will mark prominently all Licensed Products by fixing thereon a label containing at least the phrase “United States Patent No.” together with the numbers of the U.S. Licensed Patents, along with corresponding references to all foreign Licensed Patents, and indicating that the Licensed Product has been made under a license from AIF.  Licensee may utilize the “virtual patent” marking provisions of the Leahy-Smith America Invents Act to accomplish such marking.

 

5.                                      LICENSE FEES, REPORTS, AND AUDITS

 

5.1                               License Fees.  During the term of this Agreement, Licensee will pay to AIF an annual license fee (collectively, the “License Fees”) in the amounts set forth below:

 

(a)                                 for the first Contract Year:  zero U.S. dollars (U.S. $0) (fee waived);

 

(b)                                 for the second Contract Year:  fifty thousand U.S. dollars (U.S. $50,000); and

 

(c)                                  for the third Contract Year, and for each Contract Year thereafter:  an amount equal to the greater of (i) one-tenth of one percent (0.1%) of the Licensee’s Gross Revenue received during such Contract Year; or (ii) one hundred thousand U.S. dollars (U.S. $100,000).

 

Notwithstanding the foregoing, in the event of a Licensee Change of Control, the annual license fee shall immediately and thereafter be equal to the greater of (i) three-tenths of one percent (0.3%) of the Licensee’s Gross Revenue received during such Contract Year; or (ii) three hundred thousand U.S. dollars (U.S. $300,000).

 

The Parties acknowledge and agree that the method of calculating the License Fees was selected for the administrative and business convenience of the Parties, that the License Fees payable in any given Contract Year are not intended to precisely reflect the value of the specific Licensed Patents actually used or in effect during that specific Contract Year, and that the License Fees collectively are designed to reflect the fair value of the rights granted over the entire term of the Agreement.

 

5.2                               Payment Terms.  Licensee will pay the License Fee for each Contract Year within thirty (30) days after the end of such Contract Year.  In the event that the Agreement terminates or expires in the middle of a Contract Year, the License Fee for such partial Contract Year will be pro-rated to reflect the portion of the Contract Year elapsed on the date of termination or expiration (and in cases where the calculation of the License Fee is based upon Licensee’s Gross Revenue received, such pro-ration shall be achieved by limiting such calculation to Gross Revenue received as of the date of termination or expiration), and Licensee will pay such pro-rated License Fee within thirty (30) days after such termination or expiration.  In the event of an increase in the License Fee resulting from a Licensee Change of Control, the Licensee will apply such increased License Fee to the entire Contract Year in which the Change of Control occurs (with no pro-ration).  All payments will be made by wire transfer in accordance with AIF’s instructions from time to time.

 

5.3                               Reports.  Beginning with the third Contract Year (or, if sooner, the Contract Year during which a Licensee Change of Control has occurred), Licensee will provide AIF with a written report for each Contract Year detailing the following information in reasonable detail: (a) the Gross Revenue received by Licensee during such Contract Year; (b) the calculation of the License Fee accrued; and (c) any other information AIF requests to determine the correct amount of License Fees due.  The accuracy of the report will be certified in writing by an authorized officer of Licensee. Licensee will deliver such report at the same time as it makes its payment of the License Fee for such Contract Year.

 

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5.4                               Audit Rights.  Licensee will keep and maintain accurate and detailed books and records adequate for AIF to ascertain the amount of License Fees payable hereunder for at least three (3) years from the end of each Contract Year for which the License Fees are payable.  AIF will have the right to audit Licensee’s books and records from time to time for the purpose of verifying the amounts due and payable hereunder.  Any such audit may be performed by AIF’s personnel or by an independent certified public accountant or equivalent (“Auditor”) selected by AIF.  If the audit reveals that Licensee has underpaid the amount due to AIF by five percent (5%) or more in any quarter, Licensee will reimburse AIF for all costs and expenses incurred by AIF in connection with such audit including the fees and expenses of the Auditor (if any).  Licensee will promptly pay AIF any amount shown by an audit to be owing to AIF plus a late payment charge as provided in Section 5.6 (Late Payment).

 

5.5                               Taxes.  Licensee will be responsible for and will indemnify and hold AIF harmless from payment of all taxes (other than taxes based on AIF’s net income), fees, duties, and other governmental charges (collectively, “Taxes”), and any related penalties and interest, arising from the payment of License Fees to AIF under this Agreement.  If Licensee is required under applicable law to withhold any Tax from any payment due to AIF under this Agreement, the amount of the payment to AIF will be increased such that AIF receives the full amount of such License Fees owed to AIF as if there were no withholding Tax.

 

5.6                               Late Payment.  Licensee will pay AIF a late fee for any amount that is not paid when due at a rate of one and one-half percent (11⁄2%)  per month or the maximum rate permitted by applicable law, whichever is less, from the due date until paid.

 

6.                                      CONFIDENTIALITY

 

6.1                               Confidential Information.  Any nonpublic information regarding the Licensed Patents disclosed by AIF to Licensee (whether orally, in writing, or otherwise) in connection with or during the term of this Agreement, including all pending patent applications, correspondence to and from the patent offices, invention disclosures, and inventor notebooks, will be considered “Confidential Information” for purposes of this Agreement.

 

6.2                               Protection of Confidential Information.  Licensee will not use any Confidential Information of AIF except as necessary to exercise the express rights granted under Section 2.1 (License Grant), and will disclose the Confidential Information only to the employees and agents of Licensee who have a need to know such Confidential Information for purposes of this Agreement and who are under a duty of confidentiality no less restrictive than Licensee’s duty hereunder.  Licensee will protect the Confidential Information from unauthorized use, access, or disclosure in the same manner as Licensee protects its own confidential or proprietary information of a similar nature and with no less than reasonable care.

 

6.3                               Exceptions.  Licensee will be allowed to disclose the Confidential Information to the extent that such disclosure is (a) specifically approved in writing by AIF; (b) necessary in the course of legal proceedings for Licensee to defend itself or to enforce its rights under this Agreement; or (c) required by law or by the order of a court or similar judicial or administrative body, provided that Licensee notifies AIF of such required disclosure promptly and in writing and cooperates with AIF, at AIF’s reasonable request, in any lawful action to contest or limit the scope of such required disclosure.

 

6.4                               Return of Confidential Information.  Licensee will return to AIF or destroy all tangible copies of Confidential Information in Licensee’s possession or control and permanently erase all electronic copies of Confidential Information promptly upon the written request of AIF or the expiration or termination of this Agreement, whichever occurs first.

 

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7.                                      REPRESENTATIONS AND WARRANTIES

 

7.1                               Mutual Representations and Warranties.  Each Party represents and warrants that it has full right, power, and authority to enter into this Agreement and to perform its obligations and duties under this Agreement, and that the performance of such obligations and duties does not and will not conflict with or result in a breach of any other agreement of such Party or any judgment, order, or decree by which such Party is bound.

 

7.2                               Disclaimer.  Neither Party makes any representations or warranties of any kind, other than the representations and warranties expressly stated in Section 7.1 (Mutual Representations and Warranties).  Licensee acknowledges that it has not relied on any representations, statements, or warranties by any employee or representative of AIF, other than the express representations and warranties in Section 7.1 (Mutual Representations and Warranties). Without limiting the generality of the foregoing, nothing in this Agreement should be construed as:

 

(a)                                 a warranty or representation by AIF as to the validity, enforceability, or scope of any Licensed Patent;

 

(b)                                 a warranty or representation by AIF that it will maintain any of the Licensed Patents;

 

(c)                                  a warranty or representation by AIF that using, making, selling, offering for sale, or importing a Licensed Product as permitted under this Agreement will not infringe any patent of a third party;

 

(d)                                 a warranty or representation by AIF that it will enforce any Licensed Patent against a third party; or

 

(e)                                  an obligation by AIF to furnish any manufacturing or technical information to Licensee, or engage in any sort of technology transfer or consulting, to enable Licensee to practice the Licensed Patents.

 

8.                                      INDEMNIFICATION.  Licensee will indemnify and hold harmless, and at AIF’s request defend, AIF, AIF’s subsidiaries, and their directors, officers, employees, and agents (“AIF Indemnitees”) from and against any and all claims, losses, liabilities, damages, costs, and expenses (including attorneys’ fees, expert witness fees, and court costs) directly or indirectly arising from or relating to the design, manufacture, marketing, distribution, sale, or use of any Licensed Product, or the practice of any Licensed Methods, by Licensee.  AIF will use reasonable efforts to notify Licensee promptly of any claim for which AIF believes any AIF Indemnitee is entitled to indemnification under this SECTION 8 (INDEMNIFICATION) and which AIF desires Licensee to defend. However, AIF’s failure to provide such notice or delay in providing such notice will relieve Licensee of its obligation under this SECTION 8 (INDEMNIFICATION) to defend the claim only if such delay or failure materially prejudices Licensee’s ability to defend the claim, and will not relieve Licensee of its obligation to indemnify and hold harmless the AIF Indemnitees.  If Licensee is defending a third-party claim pursuant to this SECTION 8 (INDEMNIFICATION), the AIF Indemnitees will have the right to participate in the defense of such claim with their own counsel and at their own expense.  No settlement of any such claim will be binding on an AIF Indemnitee without the AIF Indemnitee’s express prior written consent.

 

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9.                                      LIMITATION OF LIABILITY.  IN NO EVENT WILL AIF BE LIABLE TO LICENSEE FOR ANY LOST PROFITS OR CONSEQUENTIAL, INDIRECT, PUNITIVE, EXEMPLARY, SPECIAL, OR INCIDENTAL DAMAGES ARISING FROM OR RELATING TO THIS AGREEMENT OR THE LICENSED PATENTS, WHETHER IN CONTRACT OR TORT OR OTHERWISE, EVEN IF AIF KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES. AIF’S TOTAL CUMULATIVE LIABILITY ARISING FROM OR RELATING TO THIS AGREEMENT OR THE LICENSED PATENTS WILL NOT EXCEED THE SUM OF ALL LICENSE FEES PAID BY LICENSEE TO AIF UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE FIRST EVENT GIVING RISE TO LIABILITY.  THE FOREGOING LIMITATION IS CUMULATIVE AND THE EXISTENCE OF MULTIPLE CLAIMS SHALL NOT OPERATE TO ENLARGE SUCH LIMITATION.  THE PARTIES ACKNOWLEDGE THAT THE TERMS OF THIS SECTION 9 (LIMITATION OF LIABILITY) REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND THAT AIF WOULD NOT ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS OF LIABILITY.

 

10.                               TERM AND TERMINATION

 

10.1                        Term.  This Agreement will take effect on the Effective Date and will remain in effect until each Licensed Patent has expired, been abandoned, or been ruled invalid or unenforceable in a final, non-appealable decision by a court of competent jurisdiction.

 

10.2                        Termination.  AIF may immediately terminate this Agreement by giving written notice of termination to Licensee if any of the following events occurs:

 

(a)                                 Licensee breaches this Agreement and fails to cure such breach to the satisfaction of AIF within thirty (30) days after written notice thereof from AIF; or

 

(b)                                 Licensee attempts to assign any right or delegate any duty under this Agreement in violation of Section 11.2 (Assignment); or

 

(c)                                  Licensee becomes insolvent or is unable to pay its debts as they become due, makes an assignment for the benefit of its creditors, enters into bankruptcy or similar proceedings, or has a receiver or custodian appointed for it; or

 

(d)                                 Licensee ceases to conduct business or enters into dissolution or liquidation proceedings.

 

10.3                        Effect of Termination.  On the effective date of termination of this Agreement, all licenses granted by AIF to Licensee under this Agreement will be revoked and Licensee will cease all further use, manufacture, sale, or importation of Licensed Products and all practice of any Licensed Methods.  Termination of this Agreement will not affect either Party’s rights or remedies with respect to any breach of this Agreement committed by the other Party prior to termination.

 

10.4                        Survival.  Upon termination or expiration of this Agreement, SECTION 1 (DEFINITIONS), Section 7.2 (Disclaimer), SECTION 8 (INDEMNIFICATION), SECTION 9 (LIMITATION OF LIABILITY), Section 10.3 (Effect of Termination), Section 10.4 (Survival), and SECTION 11 (GENERAL) will survive.

 

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11.                               GENERAL

 

11.1                        Independent Contractors.  This Agreement is not intended to establish any partnership, joint venture, employment, or other relationship between the Parties except that of independent contractors.

 

11.2                        Assignment.  Licensee may not assign or transfer any of its rights under this Agreement or delegate any of its obligations or duties under this Agreement (by operation of law or otherwise) without AIF’s prior written consent.  Any attempted assignment, transfer, or delegation by Licensee in violation of the previous sentence will be null and void.  This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.

 

11.3                        Notices. Any notice, approval, authorization, consent, or other communication required or permitted to be delivered to a Party under this Agreement must be in writing and will be deemed properly delivered, given, and received: (a) when delivered by hand, or (b) two (2) business days after being delivered by courier or express delivery service, or (c) when actually received if sent by first class mail, to the address set forth beneath the name of the receiving Party below (or to such other address as either Party may from time to time specify in a written notice to the other Party):

 

	
If to   AIF, to:
    	
If to   Licensee, to:
    
	
 
    	
 
    
	
American   Infrastructure Funds, LLC
    	
Landmark   Infrastructure Partners LP
    
	
950   Tower Lane, Suite 800
    	
2141   Rosencrans Avenue, Suite 2100
    
	
Foster   City, CA 94404
    	
El   Segundo, CA 90245
    
	
 
    	
Attn:   Daniel E. Rebeor, General Counsel
    

 

11.4                        Governing Law. This Agreement will be construed in accordance with and governed in all respects by the laws of these United States and the State of California, without regard to any conflicts of law principles that would result in the application of the laws of any other jurisdiction.  The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement.  The parties hereby consent to jurisdiction for resolving any matter arising from or under this agreement, including any action or controversy relating to the manufacture, use, sale or distribution of Licensed Products and/or practicing of Licensed Methods, within the federal and state courts of competent jurisdiction within the Northern District of the State of California, or the County of Santa Clara.

 

11.5                        Export Law.  Licensee will comply with all applicable export and import control laws and regulations in its manufacturing, use, and distribution of the Licensed Products.  In particular, Licensee will not export or re-export the Licensed Products or any technical data or confidential information derived from or pertaining to the Licensed Products or Licensed Patents without all required U.S. and foreign government licenses.  Licensee will defend, indemnify, and hold harmless AIF from and against all fines, penalties, liabilities, damages, costs, and expenses incurred by AIF as a result of any violation of such laws or regulations by Licensee or any of its agents, employees, representatives, or distributors.

 

11.6                        Remedies.  The rights and remedies of the Parties will be cumulative (and not alternative).  If any legal action is brought to enforce this Agreement, the prevailing Party will be entitled to receive its attorneys’ fees, court costs, and other collection expenses, in addition to any other relief it may receive.

 

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11.7                        Waiver.  All waivers must be in writing and signed by an authorized representative of the Party to be charged.  Any waiver or failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of any other provision or of such provision on any other occasion.

 

11.8                        Severability.  If any provision of this Agreement is unenforceable, such provision will be changed and interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect.

 

11.9                        Construction.  The section headings in this Agreement are for convenience of reference only, will not be deemed to be a part of this Agreement, and will not be referred to in connection with the construction or interpretation of this Agreement.  Any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the construction or interpretation of this Agreement.  As used in this Agreement, the words “include” and “including,” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by the words “without limitation.”  All references in this Agreement to “Sections” are intended to refer to sections of this Agreement.  This Agreement was originally prepared in the English language and the original English version of this Agreement shall supersede and take precedence over any translation thereof.  This Agreement may be executed in several counterparts, each of which will be considered an original and which together will be considered one and the same agreement.

 

11.10                 Entire Agreement; Amendments.  This Agreement contains the entire understanding of the Parties relating to the subject matter hereof and supersedes all prior or contemporaneous agreements, communications, and understandings between the Parties (whether written or oral) relating to the subject matter hereof.  This Agreement may not be amended, modified, altered, or supplemented other than by means of a written instrument that specifically refers to this Agreement and the Parties’ intention to modify it and that is duly executed and delivered on behalf of both Parties.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

	
“AIF”
    	
 
    	
“Licensee”
    
	
 
    	
 
    	
 
    
	
AMERICAN INFRASTRUCTURE FUNDS,   LLC
    	
 
    	
LANDMARK   INFRASTRUCTURE PARTNERS LP
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:   LANDMARK INFRASTRUCTURE PARTNERS GP LLC,   its General Partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew P. Carbone
    	
 
    	
By:
    	
/s/   George P. Doyle 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Matthew   P. Carbone
    	
 
    	
Name:
    	
George   P. Doyle 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Managing   Director
    	
 
    	
Title:
    	
Chief   Financial Officer and Treasurer
    

 

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EXHIBIT A

 

	
Application
   No.
    	
 
    	
Application
   Date
    	
 
    	
Title/Mark
    	
 
    	
Registration
   No.
    	
 
    	
Registration
   Date
    	
 
    	
Case
   Status
    	
 
    	
Inventors
    
	
13/674,875
    	
 
    	
Nov-12-2012
    	
 
    	
APPARATUS   AND METHOD FOR COMBINING EASEMENTS UNDER A MASTER LIMITED PARTNERSHIP
    	
 
    	
8,700,517
    	
 
    	
Apr-15-2014
    	
 
    	
Registered
    	
 
    	
LEUNG,   Edmond G.;HELLMAN JR., ROBERT B.
    
	
14/252,650
    	
 
    	
Apr-14-2014
    	
 
    	
APPARATUS   AND METHOD FOR COMBINING EASEMENTS UNDER A MASTER LIMITED PARTNERSHIP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Application   Filed
    	
 
    	
LEUNG,   Edmond G.;HELLMAN JR., ROBERT B.
    

 

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EXHIBIT 2.3

 

FORM OF NOTICE OF REVOLVING BORROWING

 

[Date]

 

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

3333 Peachtree Road, NE

A-Atlanta-2020

Atlanta, Georgia 30326

 

Ladies and Gentlemen:

 

Reference is hereby made to the Amended and Restated Credit Agreement, dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among LANDMARK INFRASTRUCTURE OPERATING COMPANY LLC, a Delaware limited liability company (the “Borrower), as borrower, LANDMARK INFRASTRUCTURE PARTNERS LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank and as swingline lender.  Terms defined in the Credit Agreement are used herein with the same meanings.  This notice constitutes a Notice of Revolving Borrowing, and the Borrower hereby requests a Revolving Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing requested hereby:

 

(A)                               Aggregate principal amount of Revolving Borrowing:

 

(B)                               Date of Revolving Borrowing  (which is a Business Day):

 

(C)                               Type of Revolving Loan:

 

(D)                               Duration of initial Interest Period:

 

[Signature Page Follows]

 

The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of Section 3.2 of the Credit Agreement are satisfied.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
LANDMARK   INFRASTRUCTURE OPERATING COMPANY LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT 2.4

 

FORM OF NOTICE OF SWINGLINE BORROWING

 

[Date]

 

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

3333 Peachtree Road, NE

A-Atlanta-2020

Atlanta, Georgia 30326

 

Ladies and Gentlemen:

 

Reference is hereby made to the Amended and Restated Credit Agreement, dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among LANDMARK INFRASTRUCTURE OPERATING COMPANY LLC, a Delaware limited liability company (the “Borrower), as borrower, LANDMARK INFRASTRUCTURE PARTNERS LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank and as swingline lender.  Terms defined in the Credit Agreement are used herein with the same meanings.  This notice constitutes a Notice of Swingline Borrowing, and the Borrower hereby requests a Swingline Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to the Swingline Borrowing requested hereby:

 

(A)                               Principal amount of Swingline Loan:

 

(B)                               Date of Swingline Loan (which is a Business Day):

 

(C)                               Location and number of Borrower’s account to which proceeds of Swingline Loan should be credited:

 

[Signature Page Follows]

 

 

The Borrower hereby represents and warrants that the conditions specified in paragraphs (a), (b) and (c) of Section 3.2 of the Credit Agreement are satisfied.

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
LANDMARK   INFRASTRUCTURE OPERATING COMPANY LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT 2.6

 

FORM OF NOTICE OF CONVERSION/CONTINUATION

 

[Date]

 

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

3333 Peachtree Road, NE

A-Atlanta-2020

Atlanta, Georgia 30326

Ladies and Gentlemen:

 

Reference is hereby made to the Amended and Restated Credit Agreement, dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among LANDMARK INFRASTRUCTURE OPERATING COMPANY LLC, a Delaware limited liability company (the “Borrower), as borrower, LANDMARK INFRASTRUCTURE PARTNERS LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank and as swingline lender.  Terms defined in the Credit Agreement are used herein with the same meanings.  This notice constitutes a Notice of Conversion/Continuation and the Borrower hereby requests the conversion or continuation of a Revolving Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to the Revolving Borrowing to be converted or continued as requested hereby:

 

(A)                               Revolving Borrowing to which this request applies:

 

(B)                               Principal amount of Revolving Borrowing to be converted/continued:

 

(C)                               Effective date of election (which is a Business Day):

 

(D)                               Resulting Borrowing: [Eurodollar Borrowing] [Base Rate Borrowing]

 

(E)                                Interest Period:

 

[Signature Page Follows]

Very truly yours,

 

	
 
    	
LANDMARK   INFRASTRUCTURE OPERATING COMPANY LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT 2.20A

 

[FORM OF]
 U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Landmark Infrastructure Operating Company LLC, a Delaware limited liability company, Landmark Infrastructure Partners LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto, and SunTrust Bank, in its capacity as administrative agent for the Lenders, as an issuing bank, and as swingline lender.

 

Pursuant to the provisions of Section 2.19 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN (if an individual) or IRS Form W-8BEN-E (if not an individual).  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF LENDER]

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Date:                      , 20[  ]

 

 

EXHIBIT 2.20B

 

[FORM OF]
  U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Landmark Infrastructure Operating Company LLC, a Delaware limited liability company, Landmark Infrastructure Partners LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto, and SunTrust Bank, in its capacity as administrative agent for the Lenders, as an issuing bank, and as swingline lender.

 

Pursuant to the provisions of Section 2.19 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN (if an individual) or IRS Form W-8BEN-E (if not an individual).  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF PARTICIPANT]

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Date:                      , 20[  ]

 

 

EXHIBIT 2.20C

 

[FORM OF]
  U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Landmark Infrastructure Operating Company LLC, a Delaware limited liability company, Landmark Infrastructure Partners LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto, and SunTrust Bank, in its capacity as administrative agent for the Lenders, as an issuing bank, and as swingline lender.

 

Pursuant to the provisions of Section 2.19 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN (if an individual) or IRS Form W-8BEN-E (if not an individual) or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN (if an individual) or IRS Form W-8BEN-E (if not an individual) from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

[NAME OF PARTICIPANT]

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Date:                      , 20[  ]

 

 

EXHIBIT 2.20D

 

[FORM OF]
  U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Amended and Restated Credit Agreement dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Landmark Infrastructure Operating Company LLC, a Delaware limited liability company, Landmark Infrastructure Partners LP, a Delaware limited partnership, the several banks and other financial institutions and lenders from time to time party thereto, and SunTrust Bank, in its capacity as administrative agent for the Lenders, as an issuing bank, and as swingline lender.

 

Pursuant to the provisions of Section 2.19 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN (if an individual) or IRS Form W-8BEN-E (if not an individual) or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN (if an individual) or IRS Form W-8BEN-E (if not an individual) from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF LENDER]

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Date:                      , 20[  ]

 

 

EXHIBIT 3.1(b)(vi)

 

FORM OF OFFICER’S CERTIFICATE

 

[Date]

 

Reference is hereby made to the Amended and Restated Credit Agreement, dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among LANDMARK INFRASTRUCTURE OPERATING COMPANY LLC, a Delaware limited liability company (the “Borrower), as borrower, LANDMARK INFRASTRUCTURE PARTNERS LP, a Delaware limited partnership (the “MLP”), the several banks and other financial institutions and lenders from time to time party thereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank and as swingline lender.  Terms defined in the Credit Agreement are used herein with the same meanings.  This certificate is being delivered pursuant to Section 3.1(b)(vi) of the Credit Agreement.

 

I,                                                 , [                                              ] of Landmark Infrastructure Partners GP LLC, a Delaware limited liability company, the general partner of the MLP, DO HEREBY CERTIFY on behalf of the Borrower, in my official capacity and not in my individual capacity, that after giving effect to the funding of any initial Revolving Borrowing, as of the date hereof:

 

(a)           no Default or Event of Default exists;

 

(b)           all representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by “Material Adverse Effect” or other materiality, which representations and warranties shall be true and correct in all respects);

 

(c)           since December 31, 2013, which is the date of the most recent audited financial statements described in Section 4.4 of the Credit Agreement, there has been no change which has had or could reasonably be expected to have a Material Adverse Effect;

 

(d)           attached hereto as Annex A is a true, complete and correct copy of each Material Agreement;

 

(e)           the Loan Parties, on a consolidated basis, are Solvent after giving effect after giving effect to the funding of any initial Revolving Borrowing and the consummation of the transactions contemplated to occur on the Closing Date;

 

(f)            attached hereto as Annex B are true, complete and correct copies of all consents, approvals, authorizations, registrations and filings and orders required or advisable to be made or obtained under any Requirement of Law, or by any Material Agreement of any Loan Party, in connection with the execution, delivery, performance, validity and enforceability of the Loan Documents or any of the transactions contemplated thereby, including the Assignments, the IPO

 

 

and the Formation Transactions, and such consents, approvals, authorizations, registrations, filings and orders are in full force and effect and all applicable waiting periods have expired, and no investigation or inquiry by any governmental authority regarding the Commitments or any transaction being financed with the proceeds thereof are ongoing;

 

(g)           all conditions precedent to the IPO and the Formation Transactions, other than the funding of the Loans, have been satisfied, and the IPO and the Formation Transactions have been consummated substantially contemporaneously with the closing and funding of the Loans in accordance with the initial confidential filing of the Form S-11 of the MLP made on August 6, 2014 without alteration, amendment, supplement, modification or other change adverse to the Lenders except as has been approved in writing by the Administrative Agent; and

 

(h)           attached hereto as Annex C are true, complete and correct copies of all material documentation related to the IPO and the Formation Transactions.

 

IN WITNESS WHEREOF, I have hereunto signed my name as of the date first above written.

 

	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

EXHIBIT 5.1(c)

 

FORM OF COMPLIANCE CERTIFICATE

 

[Date]

 

To:     SunTrust Bank, as Administrative Agent

3333 Peachtree Road, NE

A-Atlanta-2020

Atlanta, Georgia 30326

Attention:

 

Ladies and Gentlemen:

 

Reference is hereby made to the Amended and Restated Credit Agreement, dated as of November 19, 2014 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among LANDMARK INFRASTRUCTURE OPERATING COMPANY LLC, a Delaware limited liability company (the “Borrower), as borrower, LANDMARK INFRASTRUCTURE PARTNERS LP, a Delaware limited partnership (the “MLP”), the several banks and other financial institutions and lenders from time to time party thereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), as issuing bank and as swingline lender.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.

 

I,                                     , being the duly elected and qualified, and acting in my capacity as                                of Landmark Infrastructure Partners GP LLC, a Delaware limited liability company, the general partner of the MLP, DO HEREBY CERTIFY on behalf of the MLP, in my official capacity and not in my individual capacity, to the Administrative Agent and each Lender as follows:

 

1.             Based upon a review of the activities of Borrower, the MLP and the Restricted Subsidiaries and the financial statements attached hereto during the period covered thereby, as of the date hereof, there exists [a][no] Default or Event of Default.                              [If a Default or Event of Default does exist, specify the details thereof and the action which the Borrower has taken or proposes to take with respect thereto.]

 

2.             The calculations set forth in Annex 1 hereto are computations demonstrating compliance with the financial covenants set forth in Article VI of the Credit Agreement calculated from the financial statements attached hereto.

 

3.             There has [not] been a change in the identity of the Restricted Subsidiaries as of the end of [specify applicable Fiscal Year or Fiscal Quarter, as the case may be].                           [If a change has taken place, specify the details thereof.]

 

 

4.             There has [not] been a change in GAAP or the application thereof since the date of the mostly recently delivered audited financial statements of the Borrower and its Subsidiaries.   [If a change in GAAP or the application thereof has occurred, specify the effect of such change on the financial statements accompanying this certificate.]

 

 

	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

Annex I to Compliance Certificate

 

	
A.
    	
Section 6.1   Leverage Ratio
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(I)
    	
Consolidated   Total Debt as of end of the Fiscal Quarter
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(II)
    	
Annualized   Adjusted Consolidated EBITDA for the most recent Fiscal Quarter
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(III)
    	
Line   A.(I) divided by Line A.(II)
    	
 
    	
         to   1.0
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(IV)
    	
Maximum   permitted Leverage Ratio at the end of each Fiscal Quarter as set forth in Section 6.1   of the Credit Agreement
    	
 
    	
8.5   to 1.0
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(V)
    	
In   compliance?
    	
 
    	
Yes/No
    
	
 
    	
 
    	
 
    	
 
    
	
B.
    	
Section 6.2   Interest Coverage Ratio
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(I)
    	
Consolidated   EBITDA for the Fiscal Quarter
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(II)
    	
Consolidated   Cash Interest Expense for the Fiscal Quarter
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(III)
    	
Line   B.(I) divided by Line B.(II)
    	
 
    	
         to   1.0
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(IV)
    	
Minimum   permitted Interest Coverage Ratio at the end of each Fiscal Quarter as set   forth in Section 6.2 of the Credit Agreement
    	
 
    	
2.0   to 1.0
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
(V)
    	
In   compliance?
    	
 
    	
Yes/NoExhibit 10.5

 

LANDMARK INFRASTRUCTURE PARTNERS LP
 2014 LONG-TERM INCENTIVE PLAN

 

SECTION 1.                            Purpose of the Plan.

 

This Landmark Infrastructure Partners LP 2014 Long-Term Incentive Plan (the “Plan”) has been adopted by Landmark Infrastructure Partners GP LLC, a Delaware limited liability company (the “Company”), the general partner of Landmark Infrastructure Partners LP, a Delaware limited partnership (the “Partnership”).  The Plan is intended to promote the interests of the Partnership and the Company by providing incentive compensation awards denominated in or based on Units to Employees, Consultants and Directors to encourage superior performance.  The Plan is also intended to enhance the ability of the Partnership, the Company and their Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Partnership, the Company and their Affiliates and to encourage them to devote their best efforts to advancing the business of the Partnership, the Company and their Affiliates.

 

SECTION 2.                            Definitions.

 

As used in the Plan, the following terms shall have the meanings set forth below:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

“ASC Topic 718” means Accounting Standards Codification Topic 718, Compensation — Stock Compensation, or any successor accounting standard.

 

“Award” means an Option, Restricted Unit, Phantom Unit, DER, Substitute Award, Unit Appreciation Right, Unit Award or Profits Interest Unit granted under the Plan.

 

“Award Agreement” means the written or electronic agreement by which an Award shall be evidenced and which agreement may include a separate plan, policy, agreement or other written document.

 

“Board” means the board of directors or board of managers, as the case may be, of the Company.

 

“Cause” means, unless otherwise set forth in an Award Agreement or other written agreement between the Company or one of its Affiliates and the applicable Participant (in which case “Cause” shall have the meaning specified in such other agreement), a finding by the Committee, before or after the Participant’s termination of Service, of: (i) any material failure by the Participant to perform the Participant’s duties and responsibilities under any written agreement between the Participant and the Company or its Affiliate(s); (ii) any act of fraud, embezzlement, theft or misappropriation by the Participant relating to the Company, the Partnership or any of their Affiliates; (iii) the Participant’s commission of a felony or a crime

 

 

involving moral turpitude; (iv) any gross negligence or intentional misconduct on the part of the Participant in the conduct of the Participant’s duties and responsibilities with the Company or any Affiliate(s) of the Company or which adversely affects the image, reputation or business of the Company, the Partnership or their Affiliates; or (v) any material breach by the Participant of any agreement between the Company or any of its Affiliates, on the one hand, and the Participant on the other. The findings and decision of the Committee with respect to such matter, including those regarding the acts of the Participant and the impact thereof, will be final for all purposes.

 

“Change in Control” means, and shall be deemed to have occurred upon one or more of the following events:

 

(i)                                     any “person” or “group” within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act, other than the Company, Landmark or an Affiliate of the Company or Landmark (as determined immediately prior to such event), shall become the beneficial owner, by way of merger, acquisition, consolidation, recapitalization, reorganization or otherwise, of 50% or more of the combined voting power of the equity interests in the Company or the Partnership;

 

(ii)                                  the limited partners of the Partnership approve, in one or a series of transactions, a plan of complete liquidation of the Partnership;

 

(iii)                               the sale or other disposition by either the Company or the Partnership of all or substantially all of the Company’s or the Partnership’s assets, respectively, in one or more transactions to any Person other than the Company, the Partnership, Landmark or an Affiliate of the Company, the Partnership or Landmark; or

 

(iv)                              a transaction resulting in a Person other than the Company, Landmark or an Affiliate of the Company or Landmark (as determined immediately prior to such event) being the sole general partner of the Partnership.

 

Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Award which provides for the deferral of compensation subject to Section 409A or such compensation otherwise would be subject to Section 409A, the transaction or event described in subsection (i), (ii), (iii) or (iv) above with respect to such Award must also constitute a “change in control event,” as defined in Treasury Regulation §1.409A-3(i)(5), and as relates to the holder of such Award, to the extent required to comply with Section 409A.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Committee” means the Board, except that it shall mean such committee of the Board as may be appointed by the Board to administer the Plan, or as necessary to comply with applicable legal requirements or listing standards.

 

“Consultant” means an individual who renders consulting services to the Company, the Partnership or any of their Affiliates.

 

2

 

“DER” means a distribution equivalent right, representing a contingent right to receive an amount in cash, Units, Restricted Units and/or Phantom Units equal in value to the distributions made by the Partnership with respect to a Unit during the period such Award is outstanding.

 

“Director” means a member of the board of directors or board of managers, as the case may be, of the Company, the Partnership or any of their Affiliates who is not an Employee or a Consultant (other than in that individual’s capacity as a Director).

 

“Disability” means, unless otherwise set forth in an Award Agreement or other written agreement between the Company, the Partnership or one of their Affiliates and the applicable Participant, as determined by the Committee in its discretion exercised in good faith, a physical or mental condition of a Participant that would entitle him or her to payment of disability income payments under the Company’s, the Partnership’s or one of their Affiliates’ long-term disability insurance policy or plan, as applicable, for employees as then in effect; or in the event that a Participant is not covered, for whatever reason, under any such long-term disability insurance policy or plan for employees of the Company, the Partnership or one of their Affiliates or the Company, the Partnership or one of their Affiliates does not maintain such a long-term disability insurance policy, “Disability” means a total and permanent disability within the meaning of Section 22(e)(3) of the Code; provided, however, that if a Disability constitutes a payment event with respect to any Award which provides for the deferral of compensation subject to Section 409A or such compensation otherwise would be subject to Section 409A, then, to the extent required to comply with Section 409A, the Participant must also be considered “disabled” within the meaning of Section 409A(a)(2)(C) of the Code.  A determination of Disability may be made by a physician selected or approved by the Committee and, in this respect, Participants shall submit to an examination by such physician upon request by the Committee.

 

“Employee” means an employee of the Company, the Partnership or any of their Affiliates.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” means, as of any given date, the closing sales price on such date during normal trading hours (or, if there are no reported sales on such date, on the last date prior to such date on which there were sales) of the Units on the New York Stock Exchange or, if not listed on such exchange, on any other national securities exchange on which the Units are listed or on an inter-dealer quotation system, in any case, as reported in such source as the Committee shall select.  If there is no regular public trading market for the Units, the Fair Market Value of the Units shall be determined by the Committee in good faith and, to the extent applicable, in compliance with the requirements of Section 409A.

 

“Landmark” means Landmark Dividend LLC, a Delaware limited liability company, or its successor.

 

“Option” means an option to purchase Units granted pursuant to Section 6(a) of the Plan.

 

“Other Unit-Based Award” means an award granted pursuant to Section 6(f) of the Plan.

 

3

 

“Participant” means an Employee, Consultant or Director granted an Award under the Plan and any authorized transferee of such individual.

 

“Partnership Agreement” means the Agreement of Limited Partnership of the Partnership, as it may be amended or amended and restated from time to time.

 

“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

 

“Phantom Unit” means a notional interest granted under the Plan that, to the extent vested, entitles the Participant to receive a Unit or an amount of cash equal to the Fair Market Value of a Unit, as determined by the Committee in its discretion.

 

“Profits Interest Unit” means to the extent authorized by the Partnership Agreement, an interest in the Partnership that is intended to constitute a “profits interest” within the meaning of the Code, Treasury Regulations promulgated thereunder, and any published guidance by the Internal Revenue Service with respect thereto.

 

“Restricted Period” means the period established by the Committee with respect to an Award during which the Award remains subject to forfeiture and is either not exercisable by or payable to the Participant, as the case may be.

 

“Restricted Unit” means a Unit granted pursuant to Section 6(b) of the Plan that is subject to a Restricted Period.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“SEC” means the Securities and Exchange Commission, or any successor thereto.

 

“Section 409A” means Section 409A of the Code and the Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be amended or issued after the Effective Date (as defined in Section 9 below).

 

“Service” means service as an Employee, Consultant or Director.  The Committee, in its sole discretion, shall determine the effect of all matters and questions relating to terminations of Service, including, without limitation, the questions of whether and when a termination of Service occurred and/or resulted from a discharge for Cause, and all questions of whether particular changes in status or leaves of absence constitute a termination of Service.  The Committee, in its sole discretion, subject to the terms of any applicable Award Agreement, may determine that a termination of Service has not occurred in the event of (a) a termination where there is simultaneous commencement by the Participant of a relationship with the Partnership, the Company or any of their Affiliates as an Employee, Director or Consultant or (b) a termination which results in a temporary severance of the service relationship.

 

“Substitute Award” means an award granted pursuant to Section 6(g) of the Plan.

 

4

 

“Unit” means a Common Unit of the Partnership.

 

“Unit Appreciation Right” or “UAR” means a contingent right that entitles the holder to receive the excess of the Fair Market Value of a Unit on the exercise date of the UAR over the exercise price of the UAR.

 

“Unit Award” means an award granted pursuant to Section 6(d) of the Plan.

 

SECTION 3.                            Administration.

 

(a)                                 The Plan shall be administered by the Committee, subject to subsection (b) below; provided, however, that in the event that the Board is not also serving as the Committee, the Board, in its sole discretion, may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan.  The governance of the Committee shall be subject to the charter, if any, of the Committee as approved by the Board.  Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or an Award Agreement in such manner and to such extent as the Committee deems necessary or appropriate.  Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any of their Affiliates, any Participant and any beneficiary of any Participant.

 

(b)                                 To the extent permitted by applicable law and the rules of any securities exchange on which the Units are listed, quoted or traded, the Board or Committee may from time to time delegate to a committee of one or more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other administrative actions pursuant to Section 3(a); provided, however, that in no event shall an officer of the Company be delegated the authority to grant awards to, or amend awards held by, the following individuals: (i) individuals who are subject to Section 16 of the Exchange Act, or (ii) officers of the Company (or Directors) to whom authority to grant or amend Awards has been delegated hereunder; provided, further, that any delegation of administrative authority shall only be permitted to the extent that it is permissible under applicable provisions of the Code and applicable securities laws and the rules of any securities exchange on which the Units are listed, quoted or traded.  Any delegation hereunder shall be subject to such restrictions and limitations as the Board or Committee, as applicable, specifies at the time of such delegation, and the Board or Committee,

 

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as applicable, may at any time rescind the authority so delegated or appoint a new delegatee.  At all times, the delegatee appointed under this Section 3(b) shall serve in such capacity at the pleasure of the Board and the Committee.

 

SECTION 4.                            Units.

 

(a)                                 Limits on Units Deliverable.  Subject to adjustment as provided in Section 4(c), the number of Units that may be delivered with respect to Awards under the Plan is the sum of: (i) 785,000 Units and (ii) an annual increase on the first day of each year with the first annual increase being made on January 1, 2016 and the last annual increase being made on January 1, 2024, equal to the lesser of (A) 1,570,000 Units, (B) 2% of the total common and subordinated units in the Partnership outstanding on the last day of the immediately preceding calendar year and (C) such smaller number of Units as determined by the Board or Committee.  If any Award is forfeited, cancelled, exercised, paid, or otherwise terminates or expires without the actual delivery of Units pursuant to such Award (for the avoidance of doubt, the grant of Restricted Units is not a delivery of Units for this purpose unless and until such Restricted Units vest and any restrictions placed upon them under the Plan lapse), the Units subject to such Award that are not actually delivered pursuant to such Award shall again be available for Awards under the Plan.  To the extent permitted by applicable law and securities exchange rules, Substitute Awards and Units issued in assumption of, or in substitution for, any outstanding awards of any entity (including an existing Affiliate of the Partnership) that is (or whose securities are) acquired in any form by the Partnership or any Affiliate thereof shall not be counted against the Units available for issuance pursuant to the Plan.  There shall not be any limitation on the number of Awards that may be paid in cash.

 

(b)                                 Sources of Units Deliverable Under Awards.  Any Units delivered pursuant to an Award shall consist, in whole or in part, of Units acquired in the open market, from the Partnership, any Affiliate thereof or any other Person, or Units otherwise issuable by the Partnership, or any combination of the foregoing, as determined by the Committee in its discretion.

 

(c)                                  Anti-dilution Adjustments.

 

(i)                                     Equity Restructuring.  With respect to any “equity restructuring” event (within the meaning of ASC Topic 718) that could result in an additional compensation expense to the Company or the Partnership pursuant to the provisions of ASC Topic 718 if adjustments to Awards with respect to such event were discretionary, the Committee shall equitably adjust the number and type of Units covered by each outstanding Award and the terms and conditions, including the exercise price and performance criteria (if any), of such Award to equitably reflect such event and shall adjust the number and type of Units (or other securities or property) with respect to which Awards may be granted under the Plan after such event.  With respect to any other similar event that would not result in an ASC Topic 718 accounting charge if the adjustment to Awards with respect to such event were subject to discretionary action, the Committee shall have complete discretion to adjust Awards and the number and type of Units (or other securities or property) with respect to which Awards may be granted under the Plan in such manner as it deems appropriate with respect to such other event.

 

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(ii)                                  Other Changes in Capitalization.  In the event of any non-cash distribution, Unit split, combination or exchange of Units, merger, consolidation or distribution (other than normal cash distributions) of Partnership assets to unitholders, or any other change affecting the Units of the Partnership, other than an “equity restructuring,” the Committee may make equitable adjustments, if any, to reflect such change with respect to (A) the aggregate number and kind of Units that may be issued under the Plan; (B) the number and kind of Units (or other securities or property) subject to outstanding Awards; (C) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (D) the grant or exercise price per Unit for any outstanding Awards under the Plan.

 

SECTION 5.                            Eligibility.

 

Any Employee, Consultant or Director shall be eligible to be designated a Participant and receive an Award under the Plan.

 

SECTION 6.                            Awards.

 

(a)                                 Options and UARs.  The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Options and/or UARs shall be granted, the number of Units to be covered by each Option or UAR, the exercise price therefor, the Restricted Period and other conditions and limitations applicable to the exercise of the Option or UAR, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan.  Options which are intended to comply with Treasury Regulation Section 1.409A-1(b)(5)(i)(A) and UARs which are intended to comply with Treasury Regulation Section 1.409A-1(b)(5)(i)(B) or, in each case, any successor regulation, may be granted only if the requirements of Treasury Regulation Section 1.409A-1(b)(5)(iii), or any successor regulation, are satisfied.  Options and UARs that are otherwise exempt from or compliant with Section 409A may be granted to any eligible Employee, Consultant or Director.

 

(i)                                     Exercise Price.  The exercise price per Unit purchasable under an Option or subject to a UAR shall be determined by the Committee at the time the Option or UAR is granted but, except with respect to a Substitute Award, may not be less than the Fair Market Value of a Unit as of the date of grant of the Option or UAR.

 

(ii)                                  Time and Method of Exercise.  The Committee shall determine the exercise terms and any applicable Restricted Period with respect to an Option or UAR, which may include, without limitation, provisions for accelerated vesting upon the achievement of specified performance goals and/or other events, and the method or methods by which payment of the exercise price with respect to an Option or UAR may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the Company, withholding Units having a Fair Market Value on the exercise date equal to the relevant exercise price from the Award, a “cashless” exercise through procedures approved by the Company, or any combination of the foregoing methods.

 

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(iii)                               Exercise of Options and UARs on Termination of Service.  Each Option and UAR Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option or UAR following a termination of the Participant’s Service.  Unless otherwise determined by the Committee, if the Participant’s Service is terminated for Cause, the Participant’s right to exercise the Option or UAR shall terminate as of the start of business on the effective date of the Participant’s termination.  Unless otherwise determined by the Committee, to the extent the Option or UAR is not vested and exercisable as of the termination of Service, the Option or UAR shall terminate when the Participant’s Service terminates.

 

(iv)                              Term of Options and UARs.  The term of each Option and UAR shall be stated in the Award Agreement, provided, that the term shall be no more than ten (10) years from the date of grant thereof.

 

(b)                                 Restricted Units and Phantom Units.  The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Restricted Units and/or Phantom Units shall be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant, the applicable Restricted Period, the conditions under which the Restricted Units or Phantom Units may become vested or forfeited and such other terms and conditions, including, without limitation, restrictions on transferability, as the Committee may establish with respect to such Awards.

 

(i)                                     Payment of Phantom Units.  The Committee shall specify, or permit the Participant to elect in accordance with the requirements of Section 409A, the conditions and dates or events upon which the cash or Units underlying an award of Phantom Units shall be issued, which dates or events shall not be earlier than the date on which the Phantom Units vest and become nonforfeitable and which conditions and dates or events shall be subject to compliance with Section 409A (unless the Phantom Units are exempt therefrom).

 

(ii)                                  Vesting of Restricted Units.  Upon or as soon as reasonably practicable following the vesting of each Restricted Unit, subject to satisfying the tax withholding obligations of Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her Unit certificate (or book-entry account, as applicable) so that the Participant then holds an unrestricted Unit.

 

(c)                                  DERs.  The Committee shall have the authority to determine the Employees, Consultants and/or Directors to whom DERs are granted, whether such DERs are tandem or separate Awards, whether the DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee), any vesting restrictions and payment provisions applicable to the DERs, and such other provisions or restrictions as determined by the Committee in its discretion, all of which shall be specified in the applicable Award Agreements.  Distributions in respect of DERs shall be credited as of the distribution dates during the period between the date an Award is granted to a Participant and the date such Award vests, is exercised, is distributed or expires, as determined by the Committee.  Such DERs shall be converted to cash, Units, Restricted Units and/or Phantom Units by such

 

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formula and at such time and subject to such limitations as may be determined by the Committee.  Tandem DERs may be subject to the same or different vesting restrictions as the tandem Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion. Notwithstanding the foregoing, DERs shall only be paid in a manner that is either exempt from or in compliance with Section 409A.

 

(d)                                 Unit Awards.  Awards of Units may be granted under the Plan (i) to such Employees, Consultants and/or Directors and in such amounts as the Committee, in its discretion, may select, and (ii) subject to such other terms and conditions, including, without limitation, restrictions on transferability, as the Committee may establish with respect to such Awards.

 

(e)                                  Profits Interest Units.  Any Award consisting of Profits Interest Units may be granted to an Employee, Consultant or Director for the performance of services to or for the benefit of the Partnership (i) in the Participant’s capacity as a partner of the Partnership, (ii) in anticipation of the Participant becoming a partner of the Partnership, or (iii) as otherwise determined by the Committee.  At the time of grant, the Committee shall specify the date or dates on which the Profits Interest Units shall vest and become nonforfeitable, and may specify such conditions to vesting as it deems appropriate.  Profits Interest Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose.

 

(f)                                   Other Unit-Based Awards.  Other Unit-Based Awards may be granted under the Plan to such Employees, Consultants and/or Directors as the Committee, in its discretion, may select.  An Other Unit-Based Award shall be an award denominated or payable in, valued in or otherwise based on or related to Units, in whole or in part.  The Committee shall determine the terms and conditions of any Other Unit-Based Award.  Upon vesting, an Other Unit-Based Award may be paid in cash, Units (including Restricted Units) or any combination thereof as provided in the Award Agreement.

 

(g)                                  Substitute Awards.  Awards may be granted under the Plan in substitution of similar awards held by individuals who are or who become Employees, Consultants or Directors in connection with a merger, consolidation or acquisition by the Partnership or an Affiliate of another entity or the securities or assets of another entity (including in connection with the acquisition by the Partnership or one of its Affiliates of additional securities of an entity that is an existing Affiliate of the Partnership).  Such Substitute Awards that are Options or UARs may have exercise prices less than the Fair Market Value of a Unit on the date of the substitution if such substitution complies with Section 409A and other applicable laws and securities exchange rules.

 

(h)                                 General.

 

(i)                                     Award Agreements. Each Award shall be evidenced in writing in an Award Agreement that shall reflect any vesting conditions or restrictions imposed by the Committee covering a period of time specified by the Committee and shall also contain such other terms, conditions and limitations as shall be determined by the Committee in its sole discretion. Where signature or electronic acceptance of the Award Agreement by the Participant is required, any such Awards for which the Award Agreement is not signed or electronically accepted shall be forfeited.

 

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(ii)                                  Forfeitures.  Except as otherwise provided in the terms of an Award Agreement, upon termination of a Participant’s Service for any reason during an applicable Restricted Period, all outstanding, unvested Awards held by such Participant shall be automatically forfeited by the Participant.  Notwithstanding the immediately preceding sentence, the Committee may, in its discretion, waive in whole or in part such forfeiture with respect to any such Award; provided, that any such waiver shall be effective only to the extent that such waiver will not cause (i) any Award intended to satisfy the requirements of Section 409A to fail to satisfy such requirements or (ii) any Award intended to be exempt from Section 409A to become subject to and to fail to satisfy such requirements.

 

(iii)                               Awards May Be Granted Separately or Together.  Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate.  Awards granted in addition to or in tandem with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards.

 

(iv)                              Limits on Transfer of Awards.

 

(A)                               Except as provided in paragraph (C) below, each Option and UAR shall be exercisable only by the Participant (or the Participant’s legal representative in the case of the Participant’s Disability or incapacitation) during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution.

 

(B)                               Except as provided in paragraph (C) below, no Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant other than by will or the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company, the Partnership or any Affiliate.

 

(C)                               The Committee may provide in an Award Agreement or in its discretion that an Award may, on such terms and conditions as the Committee may from time to time establish, be transferred by a Participant without consideration to any “family member” of the Participant, as defined in the instructions to use of the Form S-8 Registration Statement under the Securities Act, as applicable, or any other transferee specifically approved by the Committee after taking into account any state, federal, local or foreign tax and securities laws applicable to transferable Awards.  In addition, vested Units may be transferred to the extent permitted by the Partnership Agreement and not otherwise prohibited by the Award Agreement or any other agreement or policy restricting the transfer of such Units.

 

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(v)                                 Term of Awards.  Subject to Section 6(a)(iv) above, the term of each Award, if any, shall be for such period as may be determined by the Committee.

 

(vi)                              Unit Certificates.  Unless otherwise determined by the Committee or required by any applicable law, rule or regulation, neither the Company nor the Partnership shall deliver to any Participant certificates evidencing Units issued in connection with any Award and instead such Units shall be recorded in the books of the Partnership (or, as applicable, its transfer agent or equity plan administrator).  All certificates for Units or other securities of the Partnership delivered under the Plan and all Units issued pursuant to book entry procedures pursuant to any Award or the exercise thereof shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and/or other requirements of the SEC, any securities exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be inscribed on any such certificates or book entry to make appropriate reference to such restrictions.

 

(vii)                           Consideration for Grants.  To the extent permitted by applicable law, Awards may be granted for such consideration, including services, as the Committee shall determine.

 

(viii)                        Delivery of Units or other Securities and Payment by Participant of Consideration.  Notwithstanding anything in the Plan or any Award Agreement to the contrary, subject to compliance with Section 409A, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing Units pursuant to the exercise or vesting of any Award, unless and until the Board or the Committee has determined, with advice of counsel, that the issuance of such Units is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any securities exchange on which the Units are listed or traded, and the Units are covered by an effective registration statement or applicable exemption from registration.  In addition to the terms and conditions provided herein, the Board or the Committee may require that a Participant make such reasonable covenants, agreements, and representations as the Board or the Committee, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.  Without limiting the generality of the foregoing, the delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the Company is not reasonably able to obtain or deliver Units pursuant to such Award without violating applicable law or the applicable rules or regulations of any governmental agency or authority or securities exchange.  No Units or other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including, without limitation, any exercise price or tax withholding) is received by the Company.

 

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SECTION 7.                            Amendment and Termination; Certain Transactions.

 

Except to the extent prohibited by applicable law:

 

(a)                                 Amendments to the Plan.  Except as required by applicable law or the rules of the principal securities exchange, if any, on which the Units are traded and subject to Section 7(b) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner at any time for any reason or for no reason without the consent of any partner, Participant, other holder or beneficiary of an Award, or any other Person.  The Board shall obtain securityholder approval of any Plan amendment to the extent necessary to comply with applicable law or securities exchange listing standards or rules.

 

(b)                                 Amendments to Awards.  Subject to Section 7(a) above, the Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided that no change, other than pursuant to Section 7(c) below, in any Award shall materially reduce the rights or benefits of a Participant with respect to an Award without the consent of such Participant.

 

(c)                                  Actions Upon the Occurrence of Certain Events.  Upon the occurrence of a Change in Control, any transaction or event described in Section 4(c) above, any change in applicable laws or regulations affecting the Plan or Awards hereunder, or any change in accounting principles affecting the financial statements of the Company or the Partnership, the Committee, in its sole discretion, without the consent of any Participant or holder of an Award, and on such terms and conditions as it deems appropriate, which need not be uniform with respect to all Participants or all Awards, may take any one or more of the following actions:

 

(i)                                     provide for either (A) the termination of any Award in exchange for a payment in an amount, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights under such Award (and, for the avoidance of doubt, if as of the date of the occurrence of such transaction or event, the Committee determines in good faith that no amount would have been payable upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment) or (B) the replacement of such Award with other rights or property selected by the Committee in its sole discretion having an aggregate value not exceeding the amount that could have been attained upon the exercise of such Award or realization of the Participant’s rights had such Award been currently exercisable or payable or fully vested;

 

(ii)                                  provide that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be exchanged for similar options, rights or awards covering the equity of the successor or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices;

 

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(iii)                               make adjustments in the number and type of Units (or other securities or property) subject to outstanding Awards, the number and kind of outstanding Awards, the terms and conditions of (including the exercise price), and/or the vesting and performance criteria included in, outstanding Awards;

 

(iv)                              provide that such Award shall vest or become exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award Agreement; and

 

(v)                                 provide that the Award cannot be exercised or become payable after such event and shall terminate upon such event.

 

Notwithstanding the foregoing, (i) with respect to an above event that constitutes an “equity restructuring” that would be subject to a compensation expense pursuant to ASC Topic 718, the provisions in Section 4(c) above shall control to the extent they are in conflict with the discretionary provisions of this Section 7, provided, however, that nothing in this Section 7(c) or Section 4(c) above shall be construed as providing any Participant or any beneficiary of an Award any rights with respect to the “time value,” “economic opportunity” or “intrinsic value” of an Award or limiting in any manner the Committee’s actions that may be taken with respect to an Award as set forth in this Section 7 or in Section 4(c) above; and (ii) no action shall be taken under this Section 7 which shall cause an Award to result in taxation under Section 409A, to the extent applicable to such Award.

 

SECTION 8.                            General Provisions.

 

(a)                                 No Rights to Award.  No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants, including the treatment upon termination of Service or pursuant to Section 7(c).  The terms and conditions of Awards need not be the same with respect to each recipient.

 

(b)                                 Tax Withholding.  Unless other arrangements have been made that are acceptable to the Company, the Company or any Affiliate thereof is authorized to deduct or withhold, or cause to be deducted or withheld, from any Award, from any payment due or transfer made under any Award, or from any compensation or other amount owing to a Participant the amount (in cash or Units, including Units that would otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of an Award, including its grant, its exercise, the lapse of restrictions thereon, or any payment or transfer thereunder or under the Plan, and to take such other action as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes.  In the event that Units that would otherwise be issued pursuant to an Award are used to satisfy such withholding obligations, the number of Units which may be so withheld or surrendered shall be limited to the number of Units which have a Fair Market Value on the date of withholding equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.

 

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(c)                                  No Right to Employment or Services.  The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the Company, the Partnership or any of their Affiliates, or to continue to serve as a Consultant or a Director, as applicable.  Furthermore, the Company, the Partnership and/or an Affiliate thereof may at any time dismiss a Participant from employment or consulting free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award Agreement or other written agreement between any such entity and the Participant.

 

(d)                                 No Rights as Unitholder.  Except as otherwise provided herein, a Participant shall have none of the rights of a unitholder with respect to Units covered by any Award unless and until the Participant becomes the record owner of such Units.

 

(e)                                  Section 409A.  To the extent that the Committee determines that any Award granted under the Plan is subject to Section 409A, the Award Agreement evidencing such Award shall be drafted with the intention to include the terms and conditions required by Section 409A.  To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A.  Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date (as defined in Section 9 below), the Committee determines that any Award may be subject to Section 409A, the Committee may adopt such amendments to the Plan and the applicable Award Agreement, adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), and/or take any other actions that the Committee determines are necessary or appropriate to preserve the intended tax treatment of the Award, including without limitation, actions intended to (i) exempt the Award from Section 409A, or (ii) comply with the requirements of Section 409A; provided, however, that nothing herein shall create any obligation on the part of the Committee, the Partnership, the Company or any of their Affiliates to adopt any such amendment, policy or procedure or take any such other action, nor shall the Committee, the Partnership, the Company or any of their Affiliates have any liability for failing to do so.  If any termination of Service constitutes a payment event with respect to any Award which provides for the deferral of compensation and is subject to Section 409A, such termination of Service must also constitute a “separation from service” within the meaning of Section 409A.  Notwithstanding any provision in the Plan to the contrary, the time of payment with respect to any Award that is subject to Section 409A shall not be accelerated, except as permitted under Treasury Regulation Section 1.409A-3(j)(4).  Notwithstanding any provision of this Plan to the contrary, if a Participant is a “specified employee” within the meaning of Section 409A as of the date of such Participant’s termination of Service and the Company determines that immediate payment of any amounts or benefits under this Plan would cause a violation of Section 409A, then any amounts or benefits which are payable under this Plan upon the Participant’s “separation from service” within the meaning of Section 409A that: (i) are subject to the provisions of Section 409A; (ii) are not otherwise exempt under Section 409A; and (iii) would otherwise be payable during the first six-month period following such separation from service, shall be paid, without interest, on the first business day following the earlier of: (1) the date that is six months and one day following the date of termination; or (2) the date of the Participant’s death.  Each payment or amount due to a Participant under this Plan shall be considered a separate payment, and a Participant’s entitlement to a series of payments under this Plan is to be treated as an entitlement to a series of separate payments.

 

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(f)                                   Lock-Up Agreement.  Each Participant shall agree, if so requested by the Company or the Partnership and any underwriter in connection with any public offering of securities of the Partnership or any Affiliate, not to directly or indirectly offer, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of or otherwise dispose of or transfer any Units held by it for such period, not to exceed one hundred eighty (180) days following the effective date of the relevant registration statement filed under the Securities Act in connection with such public offering, as such underwriter shall specify reasonably and in good faith.  The Company or the Partnership may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such 180-day period.  Notwithstanding the foregoing, the 180-day period may be extended for up to such number of additional days as is deemed necessary by such underwriter or the Company or Partnership to continue coverage by research analysts in accordance with FINRA Rule 2711 or any successor rule.

 

(g)                              Compliance with Laws.  The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of Units and the payment of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to state, federal and foreign securities law and margin requirements), the rules of any securities exchange or automated quotation system on which the Units are listed, quoted or traded, and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company or the Partnership, be necessary or advisable in connection therewith.  Any securities delivered under the Plan shall be subject to such restrictions, and the Person acquiring such securities shall, if requested by the Company or the Partnership, provide such assurances and representations to the Company or the Partnership as the Company or the Partnership may deem necessary or desirable to assure compliance with all applicable legal requirements.  To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.  In the event an Award is granted to or held by a Participant who is employed or providing services outside the United States, the Committee may, in its sole discretion, modify the provisions of the Plan or of such Award as they pertain to such Participant to comply with applicable foreign law or to recognize differences in local law, currency or tax policy.  The Committee may also impose conditions on the grant, issuance, exercise, vesting, settlement or retention of Awards in order to comply with such foreign law and/or to minimize the Company’s or the Partnership’s obligations with respect to tax equalization for Participants employed outside their home country.

 

(h)                                 Governing Law.  The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles.

 

(i)                                     Severability.  If any provision of the Plan or any Award is or becomes, or is deemed to be, invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

 

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(j)                                    Other Laws.  The Committee may refuse to issue or transfer any Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary.

 

(k)                                 No Trust or Fund Created.  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company, the Partnership or any of their Affiliates, on the one hand, and a Participant or any other Person, on the other hand.  To the extent that any Person acquires a right to receive payments pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Partnership or any participating Affiliate of the Partnership.

 

(l)                                     No Fractional Units.  No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated.

 

(m)                             Headings.  Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision hereof.

 

(n)                             No Guarantee of Tax Consequences.  None of the Board, the Committee, the Company or the Partnership provides or has provided any tax advice to any Participant or any other Person or makes or has made any assurance, commitment or guarantee that any federal, state, local or other tax treatment will (or will not) apply or be available to any Participant or other Person and assumes no liability with respect to any tax or associated liabilities to which any Participant or other Person may be subject.

 

(o)                                 Clawback.  To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Committee, Awards and amounts paid or payable pursuant to or with respect to Awards shall be subject to the provisions of any clawback policy implemented by the Company or the Partnership, which clawback policy may provide for forfeiture, repurchase and/or recoupment of Awards and amounts paid or payable pursuant to or with respect to Awards.  Notwithstanding any provision of this Plan or any Award Agreement to the contrary, the Company and the Partnership reserve the right, without the consent of any Participant, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this Plan or any Award Agreement with retroactive effect.

 

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(p)                               Unit Retention Policy.  The Committee may provide in its sole and absolute discretion, subject to applicable law, that any Units received by a Participant in connection with an Award granted hereunder shall be subject to a unit ownership, unit retention or other policy restricting the sale or transfer of units, as the Committee may determine to adopt, amend or terminate in its sole discretion from time to time.

 

(q)                                 Limitation of Liability. No member of the Board or the Committee or Employee to whom the Board or the Committee has delegated authority in accordance with the provisions of Section 3 of this Plan shall be liable for anything done or omitted to be done by him or her by any member of the Board or the Committee or by any Employee in connection with the performance of any duties under this Plan, except for his or her own willful misconduct or as expressly provided by statute.

 

(r)                                    Facility Payment.  Any amounts payable hereunder to any Person under legal disability or who, in the judgment of the Committee, is unable to manage properly his or her financial affairs, may be paid to the legal representative of such Person, or may be applied for the benefit of such Person in any manner that the Committee may select, and the Partnership, the Company and all of their Affiliates shall be relieved of any further liability for payment of such amounts.

 

SECTION 9.                            Term of the Plan.

 

The Plan shall be effective on the date on which the Plan is adopted by the Board (the “Effective Date”) and shall continue until the date terminated by the Board, provided, however, that solely to the extent required to comply with the requirements of any applicable securities exchange or inter-dealer quotation system on which the Units are listed, new Awards may not be granted under the Plan after the tenth (10th) anniversary of the Effective Date.  However, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date.  The Plan shall, within twelve (12) months after the date of the Board’s initial adoption of the Plan, be submitted for approval by a majority of the outstanding Units of the Partnership entitled to vote.

 

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