Document:

exv10w1

 

Exhibit 10.1

RESTRICTED STOCK AWARD AGREEMENT

To: _________________ Date of Grant: ________________ Number of Shares: _____

     Odyssey Healthcare, Inc., a Delaware corporation (the “Company”), is pleased to grant you an
award (the “Plan Award”) consisting of an aggregate of ___shares (the “Restricted Shares”) of
the Company’s authorized Common Stock, subject to the terms and conditions set forth in this
Restricted Stock Award Agreement (this “Award Agreement”) and the Odyssey Healthcare, Inc. 2001
Equity-Based Compensation Plan (the “Plan”). The Plan Award is governed by the terms of this Award
Agreement and, where appropriate, the Plan. Any terms not defined herein shall have the meaning
set forth in the Plan.

     This Award Agreement sets forth the terms of the agreement between you and the Company with
respect to the Restricted Shares. By accepting this Award Agreement, you agree to be bound by all
of the terms hereof.

     1. Definitions. As used in this Award Agreement, the following terms have the meanings set
forth below:

          (a) “Board” means the Company’s Board of Directors.

          (b) “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in the State of Texas are authorized or obligated by law or executive order to close.

          (c) “Change in Control” means, notwithstanding the terms of the Plan or any provision herein
to the contrary, the occurrence of any of the following events:

          (i) The agreement to acquire or a tender offer for beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) by any individual, entity or group
(within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act), of 50% or more of
either (x) the then outstanding shares of Stock (the “Outstanding Stock”) or (y) the
combined voting power of the then outstanding voting securities of the Company entitled to
vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that for purposes of this subsection (i), the following acquisitions
shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B)
any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the Company
or (D) any acquisition by any corporation pursuant to a transaction which complies with
clauses (A) and (B) of paragraph (iii) below; or

          (ii) Individuals who constitute the Incumbent Board, which shall be defined as the
individuals who, as of the Date of Grant, constitute the Board and any other individual who
becomes a director of the Company after that date and whose election or appointment by the
Board or nomination for election by the Company’s
stockholders was approved by a vote of at least a majority of the directors then

 

 

          comprising the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened election contest
with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Incumbent
Board, cease for any reason to constitute at least a majority of the Board; or

          (iii) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or an acquisition of
assets of another corporation (a “Business Combination”), in each case, unless, following
such Business Combination, (A) the Outstanding Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination represent or are converted into or
exchanged for securities which represent or are convertible into more than 50% of,
respectively, the then outstanding shares of common stock and the combined voting power of
the then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns the
Company, or all or substantially all of the Company’s assets either directly or through one
or more subsidiaries) and (B) no Person (excluding any employee benefit plan (or related
trust) of the Company or the corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the then
outstanding shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership of the Company existed prior to the
Business Combination; or

          (iv) Approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

          (d) “Committee” shall mean the committee or sub-committee established by the Board to
administer part or all of the Plan.

          (e) “Common Stock” means the common stock, par value $.001 per share, of the Company as
authorized from time to time.

          (f) “Date of Grant” means ___.

          (g) “Disability” means, as determined by the Board in its sole discretion exercised in good
faith, a physical or mental impairment of sufficient severity that either you are unable to
continue performing the duties you performed before such impairment or your condition entitles you
to disability benefits under any insurance or employee benefit plan of the Company or its
Subsidiaries and that impairment or condition is cited by the Company as the reason for termination
of your employment.

          (h) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
including rules thereunder and successor provisions and rules thereto.

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          (i) “Person” means any person or entity of any nature whatsoever, specifically including an
individual, a firm, a company, a corporation, a partnership, a limited liability company, a trust
or other entity; a Person, together with that Person’s Affiliates and Associates (as those terms
are defined in Rule 12b-2 under the Exchange Act), and any Persons acting as a partnership, limited
partnership, joint venture, association, syndicate or other group (whether or not formally
organized), or otherwise acting jointly or in concert or in a coordinated or consciously parallel
manner (whether or not pursuant to any express agreement), for the purpose of acquiring, holding,
voting or disposing of securities of the Company with such Person, shall be deemed a single
“Person.”

          (j) “Plan Award” has the meaning set forth in the first paragraph of the Award Agreement.

          (k) “Subsidiary” means, with respect to any Person, any corporation or other entity of which a
majority of the voting power of the voting equity securities or equity interest is owned, directly
or indirectly, by that Person.

     2. Escrow of Restricted Shares. The Company shall issue in your name a certificate or
certificates representing the Restricted Shares and retain that certificate or those certificates
until the restrictions on such Restricted Shares expire as described in Sections 5, 6, or 7 of this
Award Agreement or the Restricted Shares are forfeited as contemplated in Sections 4 and 7 of this
Award Agreement. You shall execute one or more stock powers in blank for those certificates and
deliver those stock powers to the Company. You hereby agree that the Company shall hold the
certificate or certificates representing the Restricted Shares and the related stock powers
pursuant to the terms of this Award Agreement until such time as such certificate or certificates
are either delivered to you or canceled pursuant to this Agreement.

     3. Ownership of Restricted Shares. From and after the time that a certificate or
certificates representing the Restricted Shares has been issued in your name, you will be entitled
to all the rights of absolute ownership of the Restricted Shares, including the right to vote those
shares and to receive dividends thereon if, as, and when declared by the Board, subject, however,
to the terms, conditions and restrictions set forth in this Agreement.

     4. Restrictions; Forfeiture. The Restricted Shares are restricted in that they may not be
sold, transferred or otherwise alienated or hypothecated until such restrictions are removed or
expire as described in Section 5, 6, or 7 of this Agreement. The Restricted Shares are also
restricted in the sense that they may be forfeited to the Company. You hereby agree that if the
Restricted Shares are forfeited, as provided in Section 7, the Company shall have the right to
deliver the certificate(s) representing the Restricted Shares to the Company’s transfer agent for
cancellation or, at the Company’s election, for transfer to the Company to be held by the Company
in treasury or any designee of the Company.

     5. Expiration of Restrictions and Risk of Forfeiture. The restrictions on all of the
Restricted Shares granted pursuant to this Award Agreement will expire and become transferable and
nonforfeitable according to the schedule set forth in this Section 5, provided, however, that such
restrictions will expire on such dates only if you have been an Employee continuously from the Date
of Grant through the applicable vesting date.

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	 	 	 	Cumulative Percentage of Shares as
	On or After Each of the Following	 	 	to Which the Restricted Shares are
	Vesting Dates	 	 	Transferable and Nonforfeitable
	First Anniversary of the Date of Grant

	 	 	 	25	%
	 	 	 	 
	Second Anniversary of the Date of Grant

	 	 	 	50	%
	 	 	 	 
	Third Anniversary of the Date of Grant

	 	 	 	75	%
	 	 	 	 
	Fourth Anniversary of the Date of Grant

	 	 	 	100	%

     6. Adjustment Provisions.

          (a) Recapitalization, Etc. In the event there is any change in the outstanding Common
Stock of the Company by reason of any reorganization, recapitalization, stock split, stock
dividend, combination of shares or otherwise, there shall be substituted for or added to each share
of Common Stock theretofore appropriated or thereafter subject, or which may become subject, to
this Plan Award, the number and kind of shares of stock or other securities into which each
outstanding share of Common Stock shall be so changed or for which each such share shall be
exchanged, or to which each such share shall be entitled, as the case may be. Adjustment under the
preceding provisions of this section will be made by the Committee, whose determination as to what
adjustments will be made and the extent thereof will be final, binding, and conclusive. No
fractional interest will be issued under the Plan on account of any such adjustment.

          (b) Change in Control of the Company. In the event of any proposed Change in Control,
the Board shall take such action as it deems appropriate to effectuate the purposes of this Plan
Award and to protect you, which action may include, but without limitation, any one or more of the
following: (i) acceleration or change of the date of the lapse of restrictions applicable to this
Plan Award; (ii) arrangement with you for the payment of appropriate consideration to you for the
cancellation and surrender of the Plan Award; and (iii) in any case where equity securities other
than Common Stock of the Company are proposed to be delivered in exchange for or with respect to
Common Stock of the Company, arrangements providing that the Plan Award shall become a Plan Award
with respect to such other equity securities.

     7. Termination of Employment.

          (a) Termination Other Than Due to Death or Disability. Subject to Section 5, if your
employment relationship with Company or any of its Subsidiaries is terminated for any reason other
than due to your death or Disability, then that portion, if any, of this Plan Award for which
restrictions have not lapsed as of the date of termination shall become null and void; provided,
however, that the portion, if any, of this Plan Award for which restrictions have expired as of the
date of such termination shall survive such termination.

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          (b) Death. Upon your death, the restriction period of the Restricted Shares shall
immediately be accelerated and the restrictions shall expire.

          (c) Disability. If your employment relationship is terminated by reason of your
Disability, then the restriction period of the Restricted Shares shall immediately be accelerated
and the restrictions shall expire.

          (d) Effect of Employment Agreement. Notwithstanding any provision herein to the
contrary, in the event of any inconsistency between this Section 7 and any employment agreement
entered into by and between you and the Company, the terms of the employment agreement shall
control.

     8. Leave of Absence. With respect to the Plan Award, the Company may, in its sole
discretion, determine that if you are on leave of absence for any reason you will be considered to
still be in the employ of the Company, provided that rights to the Restricted Shares during a leave
of absence will be limited to the extent to which those rights were earned or vested when the leave
of absence began.

     9. Delivery of Certificates of Stock. Promptly following the expiration of the
restrictions on the Restricted Shares as contemplated in Sections 5, 6, and 7 of this Award
Agreement, the Company shall cause to be issued and delivered to you or your designee a certificate
representing the number of Restricted Shares as to which restrictions have lapsed, free of any
restrictive legend relating to the lapsed restrictions, upon receipt by the Company of any tax
withholding as may be requested. The value of such Restricted Shares shall not bear any interest
owing to the passage of time.

     10. Conditions to Delivery of Stock and Registration. Nothing herein shall require the
Company to issue any shares with respect to the Plan Award if (a) that issuance would, in the
opinion of counsel for the Company, constitute a violation of the Securities Act of 1933 or any
similar or superseding statute or statutes, any other applicable statute or regulation, or the
rules of any applicable securities exchange or securities association, as then in effect or (b) the
withholding obligation as provided in Section 15 has not been satisfied.

     From time to time, the Board and appropriate officers of the Company shall and are authorized
to take whatever actions are necessary to file required documents with governmental
authorities, stock exchanges, and other appropriate Persons to make shares of Common Stock
available for issuance .

     11. Furnish Information. You agree to furnish to the Company all information requested by
the Company to enable it to comply with any reporting or other requirement imposed upon the Company
by or under any applicable statute or regulation.

     12. Remedies. The parties to this Award Agreement shall be entitled to recover from each
other reasonable attorneys’ fees incurred in connection with the enforcement of the terms and
provisions of this Award Agreement whether by an action to enforce specific performance or for
damages for its breach or otherwise.

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     13. Information Confidential. As partial consideration for the granting of the Plan Award
hereunder, you hereby agree with the Company that you will keep confidential all information and
knowledge, except that which has been disclosed in any public filings required by law, that you
have relating to the terms and conditions of this Award Agreement; provided, however, that such
information may be disclosed as required by law and may be given in confidence to your spouse, tax
and financial advisors, or to a financial institution to the extent that such information is
necessary to secure a loan. In the event any breach of this promise comes to the attention of the
Company, it shall take into consideration that breach in determining whether to recommend the grant
of any future similar award to you, as a factor militating against the advisability of granting any
such future award to you.

     14. Consideration. No restriction on the Restricted Shares shall lapse unless and until
you have performed services for the Company or any of its Subsidiaries that the Company believes is
equal to or greater in value than the par value of the Common Stock subject to this Plan Award.

     15. Payment of Taxes. The Company may from time to time, in its discretion, require you to
pay to the Company (or the Company’s Subsidiary if you are an employee of a Subsidiary of the
Company), the amount that the Company deems necessary to satisfy the Company’s or its Subsidiary’s
current or future obligation to withhold federal, state or local income or other taxes that you
incur as a result of the Plan Award. With respect to any required tax withholding, you may (a)
direct the Company to withhold from the shares of Common Stock to be issued to you the number of
shares necessary to satisfy the Company’s obligation to withhold taxes, that determination to be
based on the shares’ Fair Market Value, as defined in the Plan, at the time as of which such
determination is made; (b) deliver to the Company sufficient shares of Common Stock to satisfy the
Company’s tax withholding obligations, based on the shares’ Fair Market Value, as defined in the
Plan, at the time as of which such determination is made; or (c) deliver sufficient cash to the
Company to satisfy its tax withholding obligations. If you elect to use such a stock withholding
feature, you must make the election at the time and in the manner that the Company prescribes. The
Company may, at its sole option, deny your request to satisfy withholding obligations through
Common Stock instead of cash. In the event the Company subsequently determines that the aggregate
Fair Market Value, as defined in the Plan, of any shares of Common Stock withheld as payment of any
tax withholding obligation is insufficient to discharge that tax withholding obligation, then you
shall pay to the Company, immediately upon the Company’s request, the amount of that deficiency.

     16. Right of the Company and Subsidiaries to Terminate Employment. Nothing contained in
this Award Agreement shall confer upon you the right to continue in the employ of the Company or
any Subsidiary, or interfere in any way with the rights of the Company or any Subsidiary to
terminate your employment at any time.

     17. No Liability for Good Faith Determinations. The Company and the members of the Board
shall not be liable for any act, omission or determination taken or made in good faith with respect
to this Award Agreement or the Restricted Shares granted hereunder.

     18. No Guarantee of Interests. The Board and the Company do not guarantee the Common Stock
of the Company from loss or depreciation.

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     19. Company Records. Records of the Company or its Subsidiaries regarding your period of
employment, termination of employment and the reason therefor, leaves of absence, re-employment,
and other matters shall be conclusive for all purposes hereunder, unless determined by the Company
to be incorrect.

     20. Company Action. Any action required of the Company shall be by resolution of its Board
or by a Person authorized to act by resolution of the Board.

     21. Severability. If any provision of this Award Agreement is held to be illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining provisions
hereof, but such provision shall be fully severable and this Award Agreement shall be construed and
enforced as if the illegal or invalid provision had never been included herein.

     22. Arbitration. You and the Company agree, upon written request of either you or the Company, to the resolution
by binding arbitration of all claims, demands, causes of action, disputes, controversies or other
matters in question (“Claims”), whether or not arising out of this Award Agreement or your
employment (or its termination), whether arising in contract, tort or otherwise and whether
provided by statute, equity or common law, that the Company may have against you or that you may
have against the Company or its parents, subsidiaries or affiliates, and each of the foregoing
entities’ respective officers, directors, employees or agents in their capacity as such or
otherwise, if such Claim is not resolved by the mutual written agreement between you and the
Company, or otherwise, within 30 days after notice of the dispute is first given. Claims covered
by this Section 22 include without limitation claims by you for breach of this Award Agreement,
wrongful termination, discrimination (based on age, race, sex, disability, national origin, sexual
orientation, or any other factor), harassment and retaliation. Any arbitration shall be conducted
in accordance with the Federal Arbitration Act (“FAA”) and, to the extent an issue is not addressed
by the FAA, with the then-current National Rules for the Resolution of Employment Disputes of the
American Arbitration Association (“AAA”) or such other rules of the AAA as are applicable to the
claims asserted. If a party refuses to honor its obligations under this Section 22, the other
party may compel arbitration in either federal or state court. The arbitrators shall apply the
substantive law of Delaware (excluding choice-of-law principles that might call for the application
of some other jurisdiction’s law) or federal law, or both as applicable to the claims asserted.
The arbitrators shall have exclusive authority to resolve any dispute relating to the
interpretation, applicability or enforceability or formation of this Award Agreement (including
this Section 22), including any claim that all or part of the Award Agreement is void or voidable
and any claim that an issue is not subject to arbitration. The results of arbitration will be
binding and conclusive on the parties hereto. Any arbitrators’ award or finding or any judgment or
verdict thereon will be final and unappealable. All parties agree that venue for arbitration will
be in Dallas, Texas, and that any arbitration commenced in any other venue will be transferred to
Dallas, Texas, upon the written request of any party to this Award Agreement. In the event that an
arbitration is actually conducted pursuant to this Section 22, the party in whose favor the
arbitrator renders the award shall be entitled to have and recover from the other party all costs
and expenses incurred, including reasonable attorneys’ fees, reasonable costs and other reasonable
expenses pertaining to the arbitration and the enforcement thereof and such attorneys fees, costs
and other expenses shall become a part of any award, judgment or verdict. Any and all of the
arbitrators’ orders, decisions and awards may be enforceable in, and judgment upon any award
rendered by the arbitrators may be confirmed and

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entered by any federal or state court having
jurisdiction. All arbitrations will have three individuals acting as arbitrators: one arbitrator
will be selected by you, one arbitrator will be selected by the Company, and the two arbitrators so
selected will select a third arbitrator; provided that (a) you or the Company shall use reasonably
diligent efforts to select its respective arbitrator within 60 days after a matter is submitted to
arbitration and (b) the parties (including arbitrators) shall not be limited to selecting
arbitrators from only the AAA’s lists of arbitrators. Any arbitrator selected by a party will not
be affiliated, associated or related to the party selecting that arbitrator in any matter
whatsoever. The arbitration hearing shall be conducted within 60 days after the selection of the
arbitrators. All privileges under state and federal law, including attorney-client, work product
and party communication privileges, shall be preserved and protected. The decision of the majority
of the arbitrators will be binding on all parties. Arbitrations will be conducted in a manner so
that the final decision of the arbitrators will be made and provided to you and the Company no
later than
120 days after a matter is submitted to arbitration. All proceedings conducted pursuant to this
agreement to arbitrate, including any order, decision or award of the arbitrators, shall be kept
confidential by all parties. YOU ACKNOWLEDGE THAT BY SIGNING THIS AWARD AGREEMENT, YOU ARE WAIVING
ANY RIGHT THAT YOU MAY HAVE TO A JURY TRIAL OR A COURT TRIAL, OF ANY EMPLOYMENT-RELATED CLAIM
ALLEGED BY YOU.

     23. Notices. Whenever any notice is required or permitted hereunder, such notice must be
in writing and personally delivered or sent by mail. Any such notice required or permitted to be
delivered hereunder shall be deemed to be delivered on the date on which it is personally
delivered, or, whether actually received or not, on the third Business Day after it is deposited in
the United States mail, certified or registered, postage prepaid, addressed to the person who is to
receive it at the address which such person has theretofore specified by written notice delivered
in accordance herewith. The Company or you may change, at any time and from time to time, by
written notice to the other, the address which it or he had previously specified for receiving
notices.

     The Company and you agree that any notices shall be given to the Company or to you at the
following addresses:

	 	Company:  	 717 N. Harwood

Suite 1500

Dallas, TX 75201

Attention: General Counsel
	 
	 	Holder:  	 At your current address as shown in the Company’s records.

     24. Waiver of Notice. Any person entitled to notice hereunder may waive such notice in
writing.

     25. Successors. This Award Agreement shall be binding upon you, your legal
representatives, heirs, legatees and distributees, and upon the Company, its successors and
assigns.

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     26. Headings. The titles and headings of Sections are included for convenience of
reference only and are not to be considered in construction of the provisions hereof.

     27. Governing Law. All questions arising with respect to the provisions of this Agreement
shall be determined by application of the laws of the State of Texas except to the extent Texas law
is preempted by federal law. The obligation of the Company to sell and deliver Common Stock
hereunder is
subject to applicable laws and to the approval of any governmental authority required in connection
with the authorization, issuance, sale, or delivery of such Common Stock.

     28. Execution of Receipts and Releases. Any payment of cash or any issuance or transfer of
shares of Common Stock or other property to you, or to your legal representative, heir, legatee or
distributee, in accordance with the provisions hereof, shall, to the extent thereof, be in full
satisfaction of all claims of such Persons hereunder. The Company may require you or your legal
representative, heir, legatee or distributee, as a condition precedent to such payment or issuance,
to execute a release and receipt therefor in such form as it shall determine.

     29. Amendment. This Award Agreement may be amended by the Board; provided, however, that
no amendment may decrease your rights inherent in this Plan Award prior to such amendment without
your express written consent.

     30. The Plan. This Award Agreement is subject to all the terms, conditions, limitations
and restrictions contained in the Plan.

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     IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed by its duly
authorized officer as of the Date of Grant first above written.

	 	 	 
	 

	 	By: 

	

	 	Name: 

	

	 	Title: 

ACKNOWLEDGED AND AGREED:

	 	 	 	 	 
	By:

	 	

	 	 
	Name:exv10w1

 

EXHIBIT 10.1

LUMINENT MORTGAGE CAPITAL, INC.

2003 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

     This Restricted Stock Award Agreement (this “Agreement”) is dated as of the 28th day
of December 2004 (the “Award Date”), by and between Luminent Mortgage Capital, Inc., a
Maryland corporation (the “Corporation”) and Christopher J. Zyda (the “Executive”).

RECITALS

     The Corporation and the Executive entered into an Employment Agreement as of August 4, 2003
which, among other things, provides for the Executive’s employment by the Corporation as its Chief
Financial Officer (the “Employment Agreement”).

     The Corporation desires to grant to the Executive, effective as of the Award Date set forth
above, certain shares of common stock, par value $0.001 per share, of the Corporation (the
“Common Stock”) upon the terms and conditions set forth herein. Such grant is a voluntary
grant by the Corporation in addition to any compensation that is otherwise payable to the Executive
pursuant to the Employment Agreement.

AGREEMENT

     In consideration of the premises and the mutual covenants of the parties hereto, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

1. Grant. Subject to the terms of this Agreement, the Corporation hereby grants to
the Executive an aggregate of ten thousand (10,000) restricted shares of Common Stock (the
“Restricted Shares”). This grant is made under the Luminent Mortgage Capital, Inc.
2003 Stock Incentive Plan (the “Plan”). Capitalized terms are defined in the Plan
if not defined herein.

2. Vesting. Subject to Section 7 below, the Restricted Shares shall vest, and the
restrictions imposed on the Restricted Shares hereunder shall lapse, with respect to one
third (1/3) of the total number of Restricted Shares on each of the first, second and third
annual anniversaries of the Award Date.

3. No Right to Employment. The vesting schedule in Section 2 requires continued
employment of the Executive through each applicable vesting date as a condition to the
vesting of the applicable installment of the Restricted Shares and the rights and benefits
of the Executive under this Agreement. Employment for only a portion of a vesting period,
even if a substantial portion, will not entitle the Executive to any proportionate vesting
or avoid or mitigate a termination of rights and benefits upon or following a termination of
employment as provided in Section 7 below or under the Plan.

 

 

Nothing contained in this Agreement or the Plan constitutes an employment or service
commitment by the Corporation or any of its subsidiaries or other affiliates, affects the
Executive’s status as an employee at will who is subject to termination without cause,
confers upon the Executive any right to remain employed by or in service to the Corporation
or any of its subsidiaries or other affiliates, interferes in any way with the right of the
Corporation or any of its subsidiaries or other affiliates at any time to terminate such
employment or service, or affects the right of the Corporation or any of its subsidiaries or
other affiliates to increase or decrease the Executive’s other compensation or benefits.
Nothing in this paragraph, however, is intended to adversely affect any independent
employment or service right of the Executive under the Employment Agreement.

4. Dividend and Voting Rights. After the Award Date, the Executive shall be
entitled to cash dividend and voting rights with respect to the Restricted Shares even
though such shares are not vested pursuant to Section 2, provided that to the extent
any such Restricted Shares are forfeited to the Corporation pursuant to Section 7 below,
such rights shall terminate immediately with respect to the Restricted Shares that are so
forfeited.

5. Restrictions on Transfer.

(a) Restrictions Prior to Vesting. Prior to the time that the Restricted Shares
have become vested pursuant to Section 2, neither the Restricted Shares, nor any
interest therein, amount payable in respect thereof (other than cash dividends), nor
Restricted Property (as defined in Section 8) with respect thereto may be sold,
assigned, transferred, pledged or otherwise disposed of, alienated or encumbered,
either voluntarily or involuntarily (other than to the Corporation pursuant to a
forfeiture thereof in accordance with Section 7).

(b) Other Transfers Void. Any sale or transfer, or purported sale or transfer, of
any Restricted Shares acquired pursuant to this Agreement or any interest therein,
amount payable in respect thereof (other than cash dividends) or Restricted Property
with respect thereto, other than to the Corporation shall be null and void unless
the terms, conditions and provisions of this Agreement are strictly observed and
followed.

(c) Charter Documents. The Charter and Bylaws of the Corporation, as either of them
may be amended from time to time, may provide for additional restrictions and
limitations with respect to the Common Stock (including additional restrictions and
limitations on the transfer of shares). To the extent that these restrictions and
limitations are more restrictive than those set forth in this Agreement, such
restrictions and limitations shall apply to the Restricted Shares (both before and
after such Restricted Shares shall have become vested pursuant to Section 2). Such
restrictions and limitations are not, however, in lieu of, nor shall they in any way
reduce or minimize, any limitation or restriction on the Restricted Shares imposed
under this Agreement.

 

 

6. Delivery of Shares.

(a) Certificates to be Held by the Corporation; Legends. The Corporation shall,
upon or promptly following the Award Date, issue a certificate (or certificates)
representing the Restricted Shares registered in the name of the Executive. Upon
delivery to the Executive of such certificate(s) representing the Restricted Shares,
the Executive shall immediately redeliver such certificate(s) to the Corporation to
be held by the Corporation or its designee until the shares represented thereby vest
pursuant to Section 2 or are forfeited pursuant to Section 7. Such certificate(s)
shall initially bear the following legends:

	 	(1)  	Contractual Restraints Legend.
	 
	 	   	“BY ITS ACQUISITION HEREOF, THE HOLDER AGREES TO BE BOUND BY THE PROVISIONS
OF THE RESTRICTED STOCK AWARD AGREEMENT DATED AS OF DECEMBER 28, 2004 (THE
‘AGREEMENT’), BY AND BETWEEN THE CORPORATION AND THE HOLDER. THE AGREEMENT
CONTAINS SUBSTANTIAL RESTRICTIONS ON TRANSFER, INCLUDING RESTRICTIONS ON
SALE, ASSIGNMENT, PLEDGE, TRANSFER OR OTHER DISPOSITION. THE AGREEMENT ALSO
CONTAINS THE CORPORATION’S RIGHT OF FIRST REFUSAL TO REPURCHASE THESE
SECURITIES.”
	 
	 	(2)  	Other Legends. Any legends provided for by the
Corporation’s Charter as well as any other legends that may be required and/or
deemed appropriate under applicable laws by the Corporation.

(b) Delivery of Certificates Upon Vesting. Promptly after the vesting of any
Restricted Shares pursuant to Section 2, the Corporation shall deliver to the
Executive the certificate(s) evidencing the number of such vested Restricted Shares.
The shares represented by such certificate(s) so delivered shall no longer be
restricted pursuant to Section 5(a). As a condition to the Corporation’s obligation
to deliver any share certificate(s), the Executive (or the beneficiary or personal
representative of the Executive in the event of the Executive’s death or incapacity,
as the case may be) shall deliver to the Corporation any representations or other
documents or assurances as the Corporation may deem necessary or reasonably
desirable to ensure compliance with all applicable legal and regulatory
requirements.

(c) Stock Power; Power of Attorney. Concurrent with the execution and delivery of
this Agreement, the Executive shall deliver to the Corporation an executed stock
power in the form attached hereto as Appendix A, in blank, with respect to the
Restricted Shares and any related Restricted Property. The Executive, by acceptance
of this award, shall be deemed to appoint, and does so appoint by execution of this
Agreement, the Corporation and each of its authorized representatives as the
Executive’s attorney(s)-in-fact to effect any transfer of unvested, forfeited shares
and any related Restricted Property to the Corporation

 

 

as may be required or permitted pursuant to this Agreement and to execute such
documents as the Corporation or such representative(s) deem necessary or advisable
in connection with any such transfer.

7. Forfeiture of Unvested Shares.

(a) Termination of Employment. The Executive’s Restricted Shares shall be forfeited
to the Corporation to the extent such shares have not become vested pursuant to
Section 2 prior to the first time that the Executive is no longer employed by the
Corporation or a Subsidiary. For this purpose, the term “Subsidiary” means
a corporation or other entity the majority of the voting stock or voting interests
of which are beneficially owned, directly or indirectly, by the Corporation. If the
Executive is employed by a Subsidiary and that entity ceases to be a Subsidiary,
such event shall be deemed to be a termination of employment of the Executive for
purposes of this Agreement, unless the Executive otherwise continues to be employed
by the Corporation or another Subsidiary following such event.

(b) Return of Shares. Upon the occurrence of any forfeiture of the Restricted
Shares pursuant to Section 7(a), such unvested, forfeited shares and related
Restricted Property shall, without payment of any consideration by the Corporation
for such transfer, be automatically transferred to the Corporation, without any
other action by the Executive, or the Executive’s beneficiary or personal
representative, as the case may be. The Corporation may exercise its powers under
Section 6 hereof and take any other action necessary or advisable to evidence such
transfer. The Executive or any permitted transferee of the Executive, or any such
person’s beneficiary or personal representative, as the case may be, shall deliver
any additional documents of transfer that the Corporation may request to confirm the
transfer of such unvested, forfeited shares and related Restricted Property to the
Corporation.

8. Adjustments Upon Specified Events. Upon the occurrence of a stock split,
reverse stock split, stock dividend or any other change in capitalization, reorganization,
merger or similar event affecting the Common Stock, the restrictions and limitations
applicable to the Restricted Shares under this Agreement will continue in effect with
respect to any consideration or other securities (the “Restricted Property” and, for
the purposes of this Agreement, “Restricted Shares” shall include Restricted
Property, unless the context otherwise requires) received in respect of such Restricted
Shares. Such Restricted Property shall vest at such times and in such proportion as the
Restricted Shares to which the Restricted Property is attributable vest, or would have
vested pursuant to the terms hereof if such Restricted Shares had remained outstanding. To
the extent that the Restricted Property includes any cash (other than cash dividends
provided for in Section 4 hereof) that is retained by the Corporation prior to the vesting
of the related Restricted Shares, such cash shall be invested, pursuant to policies
established by the Corporation, in interest bearing, FDIC-insured (subject to applicable
insurance limits) deposits of a depository institution selected by the Corporation until the
vesting or forfeiture thereof, the earnings on which shall be added to and become a part of
the Restricted Property.

 

 

9. Tax Matters.

(a) Tax Withholding. The Corporation shall reasonably determine the amount of any
federal, state, local or other income, employment, or other taxes which the
Corporation or any of its subsidiaries or other affiliates may reasonably be
obligated to withhold with respect to the purchase, vesting, making of an election
under Section 83(b) of the U.S. Internal Revenue Code or other event with respect to
the Restricted Shares. In any of such events, the Corporation (or any subsidiary or
other affiliate of the Corporation that employs the Executive, as applicable) shall
be entitled to require a cash payment by or on behalf of the Executive or, in the
Corporation’s discretion, to deduct from other compensation payable to the
Executive, the amount of any such withholding obligations. The Corporation’s
obligation to deliver the Restricted Shares or any certificates evidencing the
Restricted Shares is subject to the condition precedent that the Executive either
pay or provide for the amount of any such withholding obligations in such manner as
may be authorized by the Corporation.

(b) Tax Representation by the Executive. The Executive has obtained and is relying
upon the advice of his or her own tax advisors with respect to the tax consequences
of the Executive’s acquisition of the Restricted Shares (including, without
limitation, whether an election (a “Section 83(b) Election”) under Section 83(b) of
the Internal Revenue Code of 1986, as amended, may be made in connection with such
acquisition, and the advisability of and procedures for making a Section 83(b)
Election in the particular circumstances), as well as with respect to the tax
consequences of any vesting, forfeiture and/or future sale or other transfer of the
Restricted Shares. The Executive is not relying on any representations made by the
Corporation or any of its agents with respect to such matters. The Executive
acknowledges that, should the Executive decide to make a Section 83(b) Election with
respect to the acquisition of the Restricted Shares, the Executive must take
affirmative steps to make such election within thirty (30) days of the Effective
Date.

10. Notices. Any notice to be given under the terms of this Agreement shall be in
writing and addressed and/or delivered in accordance with the notice provisions of Section
23 of the Employment Agreement.

11. Plan. All of the rights of the Executive under this Agreement are subject to,
and the Executive agrees to be bound by, all of the terms and conditions of the Plan,
incorporated herein by this reference. In the event of a conflict or inconsistency between
the terms and conditions of this Agreement and of the Plan, the terms and conditions of the
Plan shall govern. The Executive acknowledges receipt of a copy of the Plan and agrees to
be bound by the terms thereof and of this Agreement. The Executive acknowledges reading and
understanding the Plan and this Agreement. Unless otherwise expressly provided in other
sections of this Agreement, provisions of the Plan that confer discretionary authority on
the Board or the Committee do not and shall not be deemed to create any rights in the
Executive unless such rights are expressly set forth herein or are otherwise in the sole
discretion of the Board or the Committee so conferred by appropriate action of the Board or
the Committee under the Plan after the date hereof.

 

 

12. Entire Agreement. This Agreement (including the appendix hereto) and the Plan
together constitute the entire and final agreement and supersede all prior understandings,
negotiations and agreements, written or oral, of the parties hereto with respect to the
subject matter hereof. This Agreement and the Plan, together, are intended by the parties
as a complete and exclusive statement of the terms of their agreement with respect to the
subject matter hereof. Any representation, promise or agreement with respect to the subject
matter hereof not specifically included in this Agreement or in the Plan shall not be
binding upon or enforceable against either party. This Agreement and the Plan, together,
constitute a fully integrated agreement.

The Corporation’s Charter and Bylaws are outside of the scope of the integration provision
of the preceding paragraph. Those definitions of the Employment Agreement expressly
referred to in this Agreement as well as the arbitration provisions of the Employment
Agreement are also outside of the scope of the integration provision of the preceding
paragraph, but any and all other provisions of the Employment Agreement are within the scope
of the integration provision of the preceding paragraph.

This Agreement and the Plan may be amended pursuant to Section 8.6 of the Plan. Such
amendment must be in writing and signed by the Corporation. The Corporation may, however,
unilaterally waive any provision hereof in writing to the extent such waiver does not
materially and adversely affect the Executive’s rights with respect to the Restricted
Shares, provided that no such waiver shall operate or be construed to be a
subsequent waiver of the same provision or a waiver of any other provision hereof. No
waiver by the Corporation shall be binding unless in writing and signed by the Corporation.
The Charter and Bylaws of the Corporation may be amended from time to time in accordance
with their respective terms.

13. Effect of this Agreement. This Agreement shall be assumed by, be binding upon
and inure to the benefit of any successor or successors to the Corporation. The term
“Corporation” for purposes of this Agreement includes any such successor(s).

14. Governing Law; Severability; Miscellaneous.

(a) Governing Law. This Agreement shall be governed by and construed and enforced
in accordance with the laws of the State of Maryland without regard to conflict of
law principles thereunder.

(b) Construction. The terms of the purchase of the Restricted Shares have resulted
from the negotiations of the parties. Each party has cooperated in the drafting and
preparation of this Agreement. Hence, in any construction of this Agreement, the
same shall not be construed against either party on the basis that the party was the
drafter. The language of all parts of this Agreement and of the Plan shall in all
cases be construed as a whole, according to its fair meaning, and not strictly for
or against either of the parties.

(c) Limited Rights. The Executive shall have no rights as a stockholder of the
Corporation with respect to the Restricted Shares until a certificate (or
certificates) representing the Restricted Shares shall have been registered and

 

 

issued in the name of the Executive. The Executive’s rights with respect to the
Restricted Shares after the date of such issuance are subject to the terms and
conditions set forth herein. The Restricted Shares do not place any limit on the
corporate authority of the Corporation as set forth in Section 8.12 of the Plan.

(d) Severability. If a court of competent jurisdiction determines that any portion
of this Agreement or of the Plan is in violation of any statute or public policy,
then only the portions of this Agreement or of the Plan, as applicable, which
violate such statute or public policy shall be stricken, and all portions of this
Agreement and of the Plan which do not violate any statute or public policy shall
continue in full force and effect.

(e) Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. Photographic copies of such signed
counterparts may be used in lieu of the originals for any purpose.

(f) Section Headings. The captions and section headings of this Agreement are for
convenience of reference only and shall not be deemed to alter or affect any
provision hereof.

(g) Further Assurances. Each of the parties hereto shall use its reasonable and
diligent best efforts to proceed promptly with the transactions contemplated herein,
to fulfill the conditions precedent for such party’s benefit or to cause the same to
be fulfilled and to execute such further documents and other papers and perform such
further acts as may be reasonably required or desirable to carry out the provisions
hereof and the transactions contemplated herein.

(h) Legal Counsel. The Executive and the Corporation recognize that this is a
legally binding contract and acknowledge and agree that they have had the
opportunity to consult with legal counsel of their choice.

[Remainder of Page Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed on its behalf by
a duly authorized officer and the Executive has hereunto set his or her hand as of the date and
year first above written.

	 	 	 	 	 
	 	 	“CORPORATION”
	 
	 	 	 	 
	 	 	Luminent Mortgage Capital, Inc.,
	 	 	a Maryland corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Albert J. Gutierrez
	

	 	 	 	 
	 	 	 	 	 
	

	 	Print Name:
	 	Albert J. Gutierrez
	

	 	 	 	 
	 	 	 	 	 
	

	 	Title:
	 	President
	

	 	 	 	 
	 
	 	 	 	 
	 	 	“EXECUTIVE”
	 
	 	 	 	 
	

	 	 	 	/s/ Christopher J. Zyda
	 	 	 
	 	 	Christopher J. Zyda

 

 

CONSENT OF SPOUSE

     In consideration of the execution of the foregoing Restricted Stock Award Agreement by
Luminent Mortgage Capital, Inc., a Maryland corporation, I, ___, the spouse
of the Executive therein named, do hereby join with my spouse in executing the foregoing Restricted
Stock Award Agreement and do hereby agree to be bound by all of the terms and provisions thereof
and of the Plan.

Dated: ____________, ______

	 	 	 
	

	 	 
	

	 	Signature of Spouse
	 
	 	 
	 	 	 
	

	 	 
	

	 	Print Name

 

 

APPENDIX A

STOCK POWER

     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Award Agreement between
Luminent Mortgage Capital, Inc., a Maryland corporation (the “Corporation”), and the
individual named below (the “Individual”) dated as of ___, the Individual,
hereby sells, assigns and transfers to the Corporation, an aggregate ___shares of common stock
of the Corporation, standing in the Individual’s name on the books of Corporation and represented
by stock certificate number(s) ___to which this instrument is
attached, and hereby irrevocably constitutes and appoints ___
as his or her attorney in fact and agent to transfer such shares on the books of the Corporation,
with full power of substitution in the premises.

Dated ____________, __________

	 	 	 	 	 
	

	 	 	 	/s/ Christopher J. Zyda
	 	 	 
	 	 	Signature
	 
	 	 	 	 
	

	 	 	 	Christopher J. Zyda
	 	 	 
	 	 	Print Name

(Instruction: Please do not fill in any blanks other than the signature line. The purpose of the
assignment is to enable the Corporation to exercise its rights to reacquire the shares in the
circumstances provided for in the Restricted Stock Award Agreement without requiring additional
signatures on the part of the Individual.)

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