Document:

ntk2015incrementalamendment

EXHIBIT 10.1
EXECUTION VERSION

INCREMENTAL AMENDMENT
(INCREMENTAL-1 LOANS)
THIS INCREMENTAL AMENDMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Amendment”), dated as of April 2, 2015, is entered into by and among NORTEK, INC., a Delaware corporation (the “Borrower”), the Guarantors (as defined in the Credit Agreement (defined below) and identified on the signature pages hereto, and together with the Borrowers, the “Loan Parties”), the incremental term lenders party hereto (the “Incremental-1 Lenders”), and Wells Fargo Bank, National Association, a national banking association, as Administrative Agent on behalf of the Lenders (in such capacity, the “Administrative Agent”).
STATEMENT OF PURPOSE
The Borrower, the banks and other financial institutions party thereto (the “Lenders”) and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement dated as of April 30, 2014 (the “Credit Agreement”).
The Borrower has requested an Incremental Loan in the aggregate principal amount of $265,000,000 (the “Incremental-1 Loan”) in reliance on subclause (iv)(B) of the first proviso of Section 2.15 of the Credit Agreement.
Subject to the terms and conditions of this Amendment, the Incremental-1 Lenders have severally committed (such several commitments, the “Incremental-1 Loan Commitments”) to make the Incremental-1 Loan.
Section 2.15 of the Credit Agreement provides that the Administrative Agent, the Borrower and the Incremental-1 Lenders may amend the Credit Agreement and the other Loan Documents to effect the Incremental-1 Loan.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.Capitalized Terms.  All capitalized undefined terms used in this Amendment (including, without limitation, in the introductory paragraph and the Statement of Purpose hereto) shall have the meanings assigned thereto in the Credit Agreement.

SECTION 2.Incremental-1 Loan.  Upon the terms and subject to the conditions of, and in reliance upon the representations and warranties made under, this Amendment: 

(a)  The Incremental-1 Loan.  Each Incremental-1 Lender severally agrees:
(i)to make its portion of the Incremental-1 Loan equal to its Incremental-1 Loan commitment set forth opposite such Incremental-1 Lender’s name on Schedule 1 hereto (each, an “Incremental-1 Loan Commitment” and, collectively, the “Incremental-1 Loan Commitments”) to the Borrower in a single drawing at any time on or after the Effective Date (the date of such draw, the “Incremental-1 Funding Date”), but on or prior the date that is three months after the Effective Date (such date, the “Incremental-1 Funding Expiration Date”); and

(ii)that effective as of the Effective Date, it (A) shall be an “Incremental-1 Lender” for all purposes of the Credit Agreement and the other Loan Documents, (B) shall perform all of the obligations that are required to be performed by it as such under this Amendment and the other Loan Documents and (C) shall be entitled to the benefits, rights and remedies of a Lender as set forth in the Loan Documents.  Each Incremental-1 Lender acknowledges that it has received copies of the Loan 

Documents and has made its own independent investigation and credit evaluation of the Borrower in connection with entering into this Amendment.

(b)  Terms Generally.  Except as otherwise expressly set forth in this Amendment, (i) the Incremental-1 Loan shall have identical terms as the Loans made on the Closing Date and shall otherwise be subject to the provisions applicable to the Loans, including any provisions restricting the rights, or regarding the obligations, of the Loan Parties or any provisions regarding the rights or obligations of the Lenders, under the Credit Agreement and the other Loan Documents, (ii) each reference to a “Loan” in the Credit Agreement shall be deemed to include the Incremental-1 Loan, and (iii) other related terms will have correlative meanings mutatis mutandis.  Without limiting the generality of the foregoing, the parties hereto agree that the Incremental-1 Loan shall (A) bear interest at the same interest rate (including the Applicable Rate and Eurodollar Rate) applicable to the Loans made on the Closing Date, (B) mature on the Maturity Date and (C) share ratably in all payments (including all optional and mandatory prepayments) with the outstanding Loans. 

(c)  Use of Proceeds.  The proceeds of the Incremental-1 Loan shall be used to (i) redeem in full the 2018 Senior Unsecured Notes and (ii) pay related fees, costs and expenses incurred in connection with the transactions contemplated by this Amendment.

(d)  Scheduled Repayments.  The Borrower shall pay to the Administrative Agent, for the ratable account of the Incremental-1 Lenders, on the last Business Day of each fiscal quarter (commencing on the last Business Day of the first full fiscal quarter ending after the Incremental-1 Funding Date), a principal amount of the Incremental-1 Loan equal to 0.25% times the aggregate principal amount of the Incremental-1 Loan advanced on the Incremental-1 Funding Date (as adjusted from time to time pursuant to Section 2.05(b)(v) of the Credit Agreement), together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.  To the extent not previously paid, the Incremental-1 Loan shall be due and payable on the Maturity Date.  

(e)  Commitment Reductions.  The Incremental-1 Loan Commitments shall automatically terminate on the earlier of (i) the Incremental-1 Funding Expiration Date and (ii) the Incremental-1 Funding Date (the “Incremental Commitment Termination Date”). In addition, the Borrower may, upon notice to the Administrative Agent, at any time prior to the Incremental-1 Funding Expiration Date irrevocably reduce or terminate the aggregate Incremental-1 Loan Commitments.

(f)  Commitment Fee.  Commencing on the Effective Date, the Borrower shall pay to the Administrative Agent, for the ratable account of the Incremental-1 Lenders in accordance with their respective Incremental-1 Loan Commitments, a commitment fee equal to the percentage per annum determined in accordance with the pricing grid below times the actual daily amount of the unutilized aggregate Incremental-1 Commitments then in effect.  The commitment fee with respect to the Incremental-1 Loan Commitments shall accrue at all times prior to the Incremental-1 Commitment Termination Date and shall be due and payable in arrears on the Incremental Commitment Termination Date.  
	
		
	Days from the Effective Date
	Commitment Fee

	0 to 30 days
	0.000%

	31 days to 60 days
	1.375%

	61 days and thereafter
	3.500%

(g)  Prepayment Premium.  In the event that, on or prior to date that is six months after the Incremental-1 Funding Date, (i) the Borrower makes any prepayment of the Loans in connection with any Repricing Transaction or (ii) the Borrower effects any amendment, supplement or modification hereof or hereto resulting in a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of the Lenders, (A) in the case of clause (i), a prepayment premium of 1% of the amount of the Loans being prepaid and (B) in the case of clause (ii), a payment equal to 1% of the aggregate amount of the Loans outstanding immediately prior to such amendment.  The terms of this clause (g) shall be deemed to be an amendment to Section 2.05(a)(ii) of the Credit Agreement with respect to the Loans outstanding on the Incremental-1 Funding Date.

SECTION 3.Incremental Amendment References.  In each case for all purposes of the Credit Agreement and each of the other Loan Documents, (a) this Amendment shall constitute an “Incremental Amendment”, (b) the Incremental-1 Loans shall constitute “Incremental Loans” and “Loans” as the context requires; (c) the Incremental-1 Lenders shall constitute “Incremental Lenders” and “Lenders” and (d) each of Wells Fargo Securities, LLC, RBC Capital Markets, UBS Securities LLC and Jefferies Finance LLC (collectively, the “Incremental-1 Arrangers”) shall constitute “Arrangers” as the context requires.

SECTION 4.Conditions Precedent to Effectiveness.  The effectiveness of this Amendment shall be subject to the satisfaction or waiver of each of the following conditions precedent (the date on which all such conditions are satisfied, the “Effective Date”):

(a)  the Administrative Agent shall have received (i) counterparts of this Amendment duly executed, as applicable, by each of the Loan Parties, the Incremental-1 Lenders and the Administrative Agent and (ii) a duly executed Note for each Incremental-1 Lender that has requested a Note;

(b)  no Default or Event of Default shall exist as of the Effective Date before or after giving effect to this Amendment;

(c)  the representations and warranties in Section 8 of this Amendment shall be true and correct in all material respects as of the Effective Date (or in all respects to the extent any such representation or warranty is qualified by materiality or Material Adverse Effect);

(d)  the Borrower shall deliver to the Administrative Agent (i) a certificate of each Loan Party, in form and substance reasonably satisfactory to the Administrative Agent,  dated as of the Effective Date and signed by a Responsible Officer of such Loan Party certifying and attaching the resolutions adopted by such Loan Party, approving or consenting to such Incremental-1 Loan, and (ii) a certificate of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent,  dated as of the Effective Date and signed by a Responsible Officer of the Borrower certifying that, both before and after giving effect to this Amendment, (A) the representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct in all material respects (or in all respects to the extent any such representation or warranty is qualified by materiality or Material Adverse Effect) on and as of such Effective Date (except to the extent that such representations and warranties specifically refer to a given date or period, in which case they are true and correct in all material respects (or in all respects to the extent any such representation or warranty is qualified by materiality or Material Adverse Effect) as of the respective date or for the respective period, as the case may be, and except that for purposes of this clause (d), the representations and warranties contained in subsection (a) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clause (a) of Section 6.01 of the Credit Agreement), and (B) no Default or Event of Default exists as of such Effective Date before or after giving effect to this Amendment;  

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

(f)  the Administrative Agent shall have received, in form and substance reasonably satisfactory to the Administrative Agent, such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is in good standing (or equivalent thereof) in its jurisdiction of organization;

(g)  the Administrative Agent shall have received an opinion of Weil, Gotshal & Manges LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Incremental-1 Lender, in form and substance reasonably satisfactory to the Administrative Agent, with respect to such matters concerning the Loan Parties and this Amendment as the Administrative Agent may reasonably request;

(h)  the Administrative Agent shall have received a certificate pursuant to Section 2.15(a)(iv) of the Credit Agreement, in form and substance reasonably satisfactory to the Administrative Agent, signed by a Responsible Officer demonstrating that the Secured Leverage Ratio as of the Effective Date on a pro forma basis after giving effect to the aggregate principal amount of the Incremental-1 Loan does not exceed 3.5 to 1.0;

(i)  the Administrative Agent shall have received a completed “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination with respect to the Material Real Estate (together with, to the extent applicable, a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and the applicable Loan Party relating thereto);

(j)  the Administrative Agent and the Incremental-1 Arrangers shall have been paid or reimbursed for all fees and out-of-pocket charges and other expenses incurred in connection with this Amendment, including, without limitation, the reasonable fees and disbursements of counsel for the Administrative Agent, in each case to the extent invoiced at least 2 Business Days prior to the Effective Date or as otherwise disclosed on a funds flow approved by the Borrower; and

(k)  the Borrower shall have paid to the Incremental-1 Arrangers, for the account of each Incremental-1 Lender, such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.

SECTION 5.Conditions Precedent to Funding.  The obligation of each Incremental-1 Lender to make its portion of the Incremental-1 Loan shall be subject solely to the satisfaction of each of the following conditions precedent (the date on which all such conditions are satisfied, the “Incremental-1 Funding Date”):

(a)  the receipt by the Administrative Agent of a borrowing notice with respect thereto substantially in form attached hereto as Exhibit A; and

(b)  the substantially concurrent prepayment or redemption in full of the 2018 Senior Unsecured Notes.

SECTION 6.Mortgage Modifications.  To the extent required under applicable Law, or as may be reasonably requested by the Collateral Agent, within sixty (60) days of the Effective Date (as such time period may be extended by the Administrative Agent, in its sole discretion), the Borrower shall deliver, or cause to be delivered, to the Collateral Agent a duly executed modification with respect to each Mortgage encumbering a Mortgaged Property together with modification endorsements to the applicable Mortgage Policy, customary real estate opinion(s) of counsel and such other customary documents reasonably requested by the Collateral Agent in connection with this Amendment (which shall be consistent with requirements set forth in Section 6.18 of the Credit Agreement), all in form and substance reasonably acceptable to the Collateral Agent. 

SECTION 7.Reference to and Effect on the Loan Documents.  References in the Credit Agreement to “this Amendment” (and indirect references such as “hereunder”, “hereby”, “herein”, and “hereof”) and in any Loan Document to the “Credit Agreement” shall be deemed to be references to the Credit Agreement as amended hereby.

SECTION 8.Representations and Warranties/No Default.  By its execution hereof, each Loan Party hereby certifies, represents and warrants to the Administrative Agent, the Incremental-1 Lenders and the Lenders that:

(a)  both before and after giving effect to this Amendment, the representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct on and as of the Effective Date (except to the extent that such representations and warranties specifically refer to a given date or period, in which case they are true and correct as of the respective date or respective period, as the case may be, and except that for purposes of this clause (a), the representations and warranties contained in subsection (a) of Section 5.05 of 

the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clause (a) of Section 6.01 of the Credit Agreement);

(b)  no Default or Event of Default has occurred or is continuing or would result after giving effect to this Amendment and the transactions contemplated hereby;

(c)  it has all requisite power and authority and has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of this Amendment and each other document executed in connection herewith to which it is a party in accordance with their respective terms and the transactions contemplated hereby; and

(d)  this Amendment and each other document executed in connection herewith has been duly executed and delivered by the duly authorized officers of each Loan Party, and each such document constitutes the legal, valid and binding obligation of each such Loan Party, enforceable in accordance with its terms, except as may be limited by any applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and by general principles of equity.

SECTION 9.Reaffirmations.  Each Loan Party (a) consents to this Amendment and agrees that the transactions contemplated by this Amendment shall not limit or diminish the obligations of such Person, or release such Person from any obligations, under any of the Loan Documents to which it is a party, (b) confirms and reaffirms its obligations under each of the Loan Documents to which it is a party and (c) agrees that each of the Loan Documents to which it is a party remain in full force and effect as amended hereby and are hereby ratified and confirmed.

SECTION 10.Other Interpretive Provisions.  Each Loan Party, each Incremental-1 Lender and the Administrative Agent agrees that any definition of or reference to any agreement, instrument or other document in the Credit Agreement or other Loan Document shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document).

SECTION 11.GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF, BUT INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

SECTION 12.Counterparts; Integration; Effectiveness.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Amendment constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4, this Amendment shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or in “pdf” or similar format by electronic mail shall be effective as delivery of a manually executed counterpart of this Amendment.

SECTION 13.USA PATRIOT Act Notice.  Each Incremental-1 Lender that is subject to the PATRIOT Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Loan Parties that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “PATRIOT Act”), it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Incremental-1 Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the PATRIOT Act.  The Borrower shall, promptly following a request by the Administrative Agent or any Incremental-1 Lender, provide all documentation and other information that the Administrative Agent or such Incremental-1 Lender 

requests in order to comply with its ongoing obligations under applicable “know your customer” an anti-money laundering rules and regulations, including the PATRIOT Act.

[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.
BORROWER:

NORTEK, INC.

By:  /s/Almon C. Hall                                         
Name:  Almon C. Hall
Title:    Senior Vice President and
Chief Financial Officer

GUARANTORS:

Anthro Corporation
Barcom Asia Holdings, LLC
Barcom China Holdings, LLC
BNSS GP, Inc.
BNSS LP, Inc.
Broan-Nutone LLC
Broan-Nutone Storage Solutions LP
CES International Ltd. 
Core Brands, LLC
Ergotron, Inc.
Gefen, LLC 
GTO Access systems, llc
Huntair Middle East Holdings, Inc. 
Magenta Research Ltd
NORTEK AIR SOLUTIONS, LLC 
Nortek Global HVAC Latin America, Inc.
Nortek Global HVAC LLC
Nortek International, Inc.
Nortek Security & Control LLC 
Operator Specialty Company, Inc.
Pacific Zephyr Range Hood, Inc.
Reznor LLC
TV One Broadcast Sales Corporation
Zephyr Ventilation, LLC

By:  /s/Almon C. Hall                                         
Name:  Almon C. Hall
Title:     Vice President 

Nortek, Inc.
Incremental Amendment (Incremental-1 Loans)
Signature Page

ADMINISTRATIVE AGENT:

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent 

By:      /s/Luke Harbinson                                           
Name:  Luke Harbinson
Title:    Director

INCREMENTAL-1 LENDERS:

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Incremental-1 Lender

By:      
Name:  
Title:

Nortek, Inc.
Incremental Amendment (Incremental-1 Loans)
Signature Page

 
ADMINISTRATIVE AGENT:

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent 

By:      ____________________________
Name: 
Title:    

INCREMENTAL-1 LENDERS:

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Incremental-1 Lender

By:      /s/ Michael J. Clawson                       
Name:  Michael J. Clawson
Title:    Managing Director

Nortek, Inc.
Incremental Amendment (Incremental-1 Loans)
Signature Page

SCHEDULE 1

INCREMENTAL-1 LOAN 
COMMITMENTS AND APPLICABLE PERCENTAGES

	
			
	Lender
	Term Loan Commitment 
	Applicable Percentage

	Wells Fargo Bank, National Association
	$265,000,000
	100%

	Total
	$265,000,000
	100%

EXHIBIT A 

INCREMENTAL-1 LOAN BORROWING NOTICE

[SEE ATTACHED]

LOAN NOTICE
[•], 2015
To:  WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent
Ladies and Gentlemen:
Reference is made to that certain Amended and Restated Credit Agreement, dated as of April 30, 2014 (as amended, restated, amended and restated, refinanced, replaced, renewed, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”; unless otherwise defined herein, the terms defined therein being used herein as therein defined), among Nortek, Inc., a Delaware corporation (the “Borrower”), each Lender from time to time party thereto, and Wells Fargo Bank, National Association, as Administrative Agent and as Collateral Agent.
The undersigned hereby requests a Borrowing of Incremental-1 Loans.
		
	1.
	On [•], 2015 (a Business Day).

		
	2.
	In the principal amount of $[•].

		
	3.
	Consisting of Eurodollar Rate Loans.

		
	4.
	With an Interest Period of [•] months.

[Signature pages follow]

NORTEK, INC.

By:    _________________________________    
Name: 
Title:Exhibit 10.1-EMIP

Exhibit 10.1

NATIONSTAR MORTGAGE HOLDINGS INC.
EXECUTIVE MANAGEMENT INCENTIVE PLAN
(Dated as of March 31, 2015)
		
	1.
	Purpose.

The purpose of the Executive Management Incentive Plan (the “EMIP”) is to provide certain executive officers of the Company with annual incentive bonus opportunities that are tied to both the achievement of performance goals of the Company and of the individual EMIP participants.  The EMIP is entered into pursuant to the provisions of the Nationstar Mortgage Holdings Inc. 2012 Incentive Compensation Plan, as may be amended and restated (the “Plan”), which is incorporated herein by reference.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Plan.
2.    Administration.
The EMIP shall be administered by the Committee pursuant to its authority under the Plan; provided that the Committee may authorize the chief executive officer of the Company to grant Awards and make determinations hereunder with respect to persons who are not “executive officers” of the Company (within the meaning of Rule 16a-1 under the Exchange Act).  In addition to the powers granted to the Committee pursuant to the Plan, the Committee shall have discretionary and final authority to interpret the terms and provisions of the EMIP and may adopt, alter or repeal any administrative rules, guidelines and/or practices governing the operation of the EMIP as it shall from time to time deem advisable; provided, however, that such rules, guidelines or practices shall not be inconsistent with the Plan; provided, further, that no action taken under this Section 2 shall intentionally cause a Bonus payment to become subject to Sections 409A or 457A of the Internal Revenue Code of 1986, as amended.
3.    Eligibility.
Any senior officer of the Company determined by the Committee and notified in writing by the Company and/or the Committee of his or her eligibility to participate shall be eligible to participate in the EMIP (each such officer, an “EMIP Participant”), whether before or after the commencement of a Performance Period.
4.    Determination and Payment of Annual Bonus Awards.
		
	(a)
	Awards.  Awards made pursuant to the EMIP (a “Bonus”) to Covered Employees intended to qualify as Performance-Based Compensation (“Qualified Awards”) shall be determined in a manner permitted by Section 162(m) of the Code and in accordance with Section 9 of the Plan.

		
	(b)
	Performance Period.  Unless determined otherwise by the Committee, each Performance Period shall be a  fiscal year of the Company.

		
	(c)
	Determination of Target Awards.  The Committee, in its sole discretion, shall establish the Target Award for each EMIP Participant, the payment of which shall be conditioned on the achievement of the Performance Target for the Performance Period.  For 

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Qualified Awards, the Target Award shall be established prior to the earlier of (i) the 90th day of the applicable Performance Period or (ii) the date as of which 25% of the Performance Period has elapsed (the “Determination Date”).  With respect to Qualified Awards, the Target Award for an EMIP Participant who becomes employed by the Company or through promotion or otherwise becomes eligible to participate in the EMIP following the Determination Date shall be equal to average of the Target Awards as of the 90th day of the applicable Performance Period for all other EMIP Participants with the same title or seniority level, as determined by the Committee.
		
	(d)
	Performance Measures, Performance Target and Performance Schedule.  With respect to each Bonus, and with respect to Qualified Awards, prior to the Determination Date and in accordance with Section 9 of the Plan, the Committee shall establish in writing the Performance Measures, Performance Schedule and Performance Target for the Performance Period and shall prescribe a formula for determining the percentage of the Target Award which may be payable upon the level of attainment of the Performance Target for the Performance Period. The Performance Measures may relate to the performance of the Company, a Subsidiary, any subsection or division of the Company’s business or any combination thereof or individual Performance Measures or goals, which the Committee, in its sole discretion deems appropriate; provided that Performance Measures applicable to Qualified Awards shall be based on one or more Performance Measures set forth in the Plan.  The Performance Target shall be based on the Performance Measures, each of which may carry a different weight, and which may differ from EMIP Participant to EMIP Participant.  The Performance Measures established by the Committee may be (but need not be) different for each Performance Period and/or each Bonus and different Performance Measures and Performance Schedules may be applicable to different EMIP Participants and Bonuses.

		
	(e)
	Certification.  With respect to Qualified Awards, in the manner required by Section 162(m) of the Code, the Committee shall, promptly after the date on which the necessary financial and other information for the Performance Period becomes available, certify in writing the extent to which the Performance Targets have been achieved.

		
	(f)
	EMIP Award Calculation.  Using the Performance Schedule, the Committee shall determine the amount payable under each Bonus to each EMIP Participant.  In determining the amount of each Bonus, the Committee may, in its sole discretion (i) increase the size of any Bonus otherwise payable to any EMIP Participant (other than a Qualified Award) or (ii) reduce or eliminate the size of any Bonus otherwise payable to an EMIP Participant (including any Qualified Award), in each case to reflect such EMIP Participant’s individual performance or such other factors as the Committee deems relevant, or in recognition of changed or special circumstances.  For purposes of clarity, the Committee may exercise the discretion provided for by the foregoing sentence in a non-uniform manner among EMIP Participants.

		
	(g)
	Eligibility to Receive Bonus Payment.  Except to the extent otherwise provided in an EMIP Participant’s employment agreement with the Company, an EMIP Participant shall only be eligible to receive the payment of a Bonus pursuant to the terms of the EMIP if, as of the last day of the fiscal year to which such Bonus relates, the EMIP 

2

Participant (i) is employed by the Company or its subsidiaries and (ii) has not notified the Company of his or her intent to resign employment with the Company and its subsidiaries.
		
	(h)
	Bonus Payment.  A Bonus, if any, shall be paid to an EMIP Participant, as soon as practicable after the Company’s financial results for the Performance Period have been determined and, if required, following certification pursuant to Section 4(e) by the Committee; provided, however, that in no event shall such payment be made earlier than January 1st or later than March 15th of the year following the applicable Performance Period. A portion of the Bonus may be paid in restricted stock units of the Company granted pursuant to the Plan, subject to vesting and other terms and conditions. The Committee will determine such portion and the terms thereof in its sole discretion in a time and manner that complies with Section 409A of the Code.

		
	(i)
	Change in Control.  Upon the occurrence of a Change in Control, the Committee shall have full discretionary authority to provide for payment of any Bonus in a lump sum in an amount equal to the Target Award to which each EMIP Participant would have been entitled for such Performance Period, without proration, assuming the target degree of achievement of the applicable Performance Measures for such EMIP Participant for such Performance Period.

		
	5.
	Amendment and Termination.

The Committee shall have the right to amend, modify, suspend or terminate the EMIP at any time.  Notwithstanding the foregoing, no such amendment, modification, suspension or termination may, without the consent of any EMIP Participant affected thereby, impair the rights of such EMIP Participant with respect to a Bonus after the last day of the applicable Performance Period.
6.    Miscellaneous
		
	(a)
	No Right to Continued Employment or Payment of a Bonus.  The right of an EMIP Participant to receive a Bonus under the EMIP shall not be deemed a right to continued employment by the Company or its subsidiaries and does not otherwise restrict the EMIP Participant’s right or the right of the Company to terminate the EMIP Participant’s employment at any time, with or without notice and with or without cause.  No EMIP Participant has any claim to be awarded a Bonus, and there is no obligation for uniformity of treatment of EMIP Participants.  The terms and conditions of each Bonus and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each EMIP Participant (whether or not the EMIP Participants are similarly situated).

		
	(b)
	Unfunded Status of Awards.  Bonus payments shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure the payment of such bonuses.

		
	(c)
	Nontransferability.  No EMIP Participant shall have the power or right to transfer (other than by will or the laws of descent and distribution), alienate or otherwise encumber his or her interest under the EMIP.

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	(d)
	Withholding Taxes.  The Company shall withhold all applicable federal, state and local taxes from the payment of any Bonus made pursuant to the EMIP, in accordance with applicable laws and regulations.

		
	(e)
	Section 409A of the Code.  Each EMIP Award is intended to qualify as a short-term deferral pursuant to Section 409A of the Code.

		
	(f)
	Governing Law.  The EMIP shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its principles of conflict of laws.

		
	(f)
	Effective Date.  The effective date of the EMIP is January 1, 2015.

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