Document:

Q1 FY15 Exhibit 10.18 Deferred Unit Award

 Exhibit 10.18

[DATE]

CDK GLOBAL, INC. 2014 OMNIBUS AWARD PLAN
FORM OF DEFERRED UNIT AWARD AGREEMENT 
(Non-Employee Director)

CDK GLOBAL, INC. (the “Company”), pursuant to the 2014 Omnibus Award Plan (the “Plan”), hereby irrevocably grants to FirstName LastName (the “Participant”), on XXXX XX, 20__ a Deferred Unit Award (the “Deferred Unit Award”), subject to the restrictions, terms and conditions herein.
WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it would be in the best interests of the Company and its stockholders to grant the award provided for herein to the Participant, on the terms and conditions described in this Deferred Unit Award Agreement (this “Agreement”).
NOW, THEREFORE, for and in consideration of the promises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, for themselves, and their permitted successors and assigns, hereby agree as follows:
Terms and Conditions.
Grant.  The Company hereby grants to the Participant [insert number] of Deferred Units, on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan.
Vesting.  The Deferred Units shall be fully vested on the date of grant.
Payment.  The Deferred Unit Award will be settled in (i) a like number shares of the Common Stock, par value $0.01 per share, of the Company, and (ii) a cash payment equal to the accrued Dividend Equivalents, without interest, 180 days after the date the Participant ceases to be a member of the Board or, if such event is not the Participant’s “separation from service” (as defined under Treas. Reg. § 1.409A-1(h)) with the Company, 180 days after the Participant’s separation from service with the Company.
Incorporation by Reference; Etc. 
Incorporation by Reference.  The provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan, and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan.  

Compliance with Legal Requirements.  The granting and delivery of the Deferred Unit Award, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required.  
Transferability.  The Deferred Unit Award may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant other than by will or by 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 or an Affiliate.
Dividend Equivalents and Voting Rights.  With respect to each dividend declared and paid by the Company with a record date before the settlement date of the Deferred Units, the Participant’s Account shall be credited with Dividend Equivalents on each date a dividend is paid on Common Stock, in respect of the Deferred Units credited to such Participant on such dividend payment date.  The Participant shall have no voting rights with respect to the Deferred Units.
No Other Rights as a Stockholder.  Except as set forth herein, the Participant shall not have any rights as the owner of any shares of Common Stock subject to the Deferred Unit Award until any such shares are delivered to the Participant upon settlement of the Deferred Unit Award.
Clawback/Forfeiture.  Notwithstanding anything to the contrary contained herein, the Deferred Units shall be canceled if the Participant (i) engages in activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Compensation Committee of the Board (the “Committee”) in its sole discretion or, (ii) without the consent of the Company, while employed by or providing services to the Company or any Affiliate or after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement between the Participant and the Company and/or any Affiliate.  If the Participant engages in any activity referred to in the preceding sentence, the Participant shall forfeit any gain realized in respect of the Deferred Units (which gain shall be deemed to be an amount equal to the Fair Market Value, on the date of distribution, of the shares of Common Stock delivered to the Participant, plus any cash paid to the Participant, upon settlement of the Deferred Units), and must repay such gain to the Company.

Miscellaneous.
Waiver.  Any right of the Company contained in this Agreement may be waived in writing by the Committee.  No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.  No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach. 
Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 
Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.  
Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersedes all prior communications, representations and negotiations in respect thereto.  No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent of the Participant under the Plan.
Governing Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware. 
Headings.  The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. 

CDK GLOBAL, INC.

Lee J. Brunz
Vice President, General Counsel and Secretary

_________________________________        _________________________________
Signature                    Date

_________________________________
Print NameExhibit 4.1

 

THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES INTO WHICH IT MAY BE CONVERTED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  NO SALE OR DISPOSITION MAY BE AFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN APPLICABLE EXEMPTION THEREFROM.

 

EMMAUS LIFE SCIENCES, INC.

 

Convertible Promissory Note

(Cash Interest)

 (2 Years)

 

	
Principal   Amount: 
    	
$2,136,146
    	
Loan   Date: October 10, 2014
    

 

FOR VALUE RECEIVED, Emmaus Life Sciences, Inc., a Delaware corporation, located at 20725 S. Western Ave., Suite 136, Torrance, CA  90501 (“Borrower”) agrees to pay to The Shitabata Family Trust (“Lender”), the sum of $2,136,146 U.S. Dollars (“Principal Amount”), together with accrued interest thereon at the rate of ten percent (10%) per annum, under the following terms and conditions of this Convertible Promissory Note (“Note”).

 

1.             Terms of Repayment (Balloon Payment):  From the Loan Date and continuing until the two (2) year anniversary date of the Loan Date, the interest shall accrue at ten percent (10%) simple interest of the Principal Amount.  Lender shall have the right to convert the loan amount plus the accrued interest into shares of common stock of Borrower at the conversion price of $3.60 during the term of this Note. The unpaid principal and accrued interest shall become immediately due and payable upon the 2 year anniversary of the Loan Date.

 

2.             Prepayment:  This Note may be prepaid in whole or in part at any time without premium or penalty.  All prepayments shall first be applied to interest, and then to principal payments in the order of their maturity.

 

3.             Place of Payment:  All payments due under this note shall be sent to the Lender’s address, as noted in Attachment 1 hereto, or at such other place as the holder of this Note may designate in writing in the future.

 

4.             Conversion Option:  At any time during the one year term of this Note, Lender shall by giving written Notice of Conversion to the Borrower in the form attached hereto as Exhibit A, have the right to convert the Principal Amount to shares of Common Stock of Borrower (the “Shares”) at the Conversion Price of $3.60 per share (subject to appropriate adjustment in the event of any stock splits, stock dividends, recapitalizations and similar transactions with respect to the capital stock of Borrower). Upon conversion of this Note, Lender shall be subject to all requirements and transfer restrictions that Borrower may then have in effect with respect to the Shares and purchasers of Shares.

 

5.             Default:  In the event of default, the Borrower agrees to pay all costs and expenses incurred by the Lender, including all reasonable attorney fees as permitted by law for the collection of this Note upon default.

 

6.             Additional Guarantor: Lender understands and acknowledges that Emmaus Life Sciences, Inc. is the borrower of this Note.  However, for added security to lender, this note is guaranteed by Yutaka Niihara, M.D., CEO, and Willis C. Lee, COO.

 

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7.             Acceleration of Debt:  If the Borrower fails to make any payment due under the terms of this Note or seeks relief under the U.S. Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership that is not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.

 

8.             Modification:  No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by the parties. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

9.             Transfer of the Note:  The Borrower hereby waives any notice of the transfer of this Note by the Lender or by any subsequent holder of this Note, agrees to remain bound by the terms of this Promissory Note subsequent to any transfer, and agrees that the terms of this Note may be fully enforced by any subsequent holder of this Note.

 

10.          Severability of Provisions:  If any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.

 

11.          Choice of Law:  All terms and conditions of this Note shall be interpreted under the laws of California, U.S.A.

 

Signed Under Penalty of Perjury, this                     day of              ,     2014

 

Emmaus Life Sciences, Inc.

 

 

	
 
    	
 
    
	
By:   Yutaka Niihara, M.D., President and CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:   Willis C. Lee., COO
    	
 
    

 

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ATTACHMENT 1

 

	
Lender’s   Name:
    	
The   Shitabata Family Trust
    
	
 
    	
 
    
	
Lender’s   Address:
    	
19   Anacapa
    
	
 
    	
Rolling   Hills Estates, CA 90274
    
	
 
    	
 
    
	
 
    	
 
    
	
Loan   Amount:
    	
USD   $2,136,146
    
	
 
    	
 
    
	
Quarterly   Interest at 10% Per Annum on Loan Amount:
    	
$53,403.65
    
	
 
    	
 
    
	
Maturity   Date:
    	
10/10/2016
    

 

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EXHIBIT A

 

NOTICE OF CONVERSION

 

(To be executed by the Lender in order to convert the Note)

 

TO: Emmaus Life Sciences, Inc.

 

The undersigned hereby irrevocably elects to convert $                                                       of the principal amount of the Note issued to the Lender by Emmaus Life Sciences, Inc. (the “Company”) into shares of Common Stock of the Company according to the conditions stated therein, as of the Conversion Date written below.

 

	
Conversion Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Applicable Conversion Price:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Amount to be converted:
    	
 
    	
$
    
	
 
    	
 
    	
 
    
	
Amount of Note unconverted:
    	
 
    	
$
    
	
 
    	
 
    	
 
    
	
Number of shares of Common Stock to be issued:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Please issue the shares of  Common Stock in the following name and to   the following address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Phone Number:
    	
 
    	
 
    

 

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