Document:

Exhibit 10.1

 

AMENDMENT NO. 1

TO

CREDIT AGREEMENT

 

This Amendment No. 1, dated as of October 26, 2012 (this “Amendment”) is entered into among SPIRIT AEROSYSTEMS, INC., a Delaware corporation (the “Borrower”); SPIRIT AEROSYSTEMS HOLDINGS, INC., a Delaware corporation (the “Parent Guarantor”); each of the other Guarantors party hereto; BANK OF AMERICA, N.A., as Administrative Agent, and the Lenders party hereto.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Parent Guarantor and the other Guarantors identified therein, the Lenders and Bank of America, N.A., as Administrative Agent are parties to that certain Credit Agreement dated as of April 18, 2012 (as amended, modified, extended, restated or otherwise supplemented from time to time, the “Credit Agreement”);

 

WHEREAS, the Borrower has requested the Lenders to amend Section 2.05(b)(iii) of the Credit Agreement and the financial covenants set forth in Section 8.12 of the Credit Agreement, and the Lenders (by action of the Requisite Lenders) have agreed to such amendment;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:

 

Section 1. Amendment

 

1.1                                 Section 2.05 of the Credit Agreement is hereby amended by inserting immediately after first reference to “one year” set forth in clause (b)(iii) thereof the text “(except with respect to Net Proceeds of insurance recoveries in connection with damage to the Borrower’s Wichita facilities resulting from the tornado on April 14, 2012, in which case such Net Proceeds shall be so used within two years)” and inserting immediately after the second reference to “one year” set forth in clause (b)(iii) thereof the text “(or two years, with respect to Net Proceeds of insurance recoveries in connection with damage to the Borrower’s Wichita facilities resulting from the tornado on April 14, 2012)”.

 

1.2                                 Section 8.12 of the Credit Agreement is hereby amended to read as follows:

 

8.12                           Financial Covenants.

 

(a)                                  The Borrower will not permit the Senior Secured Leverage Ratio as of the last day of any Fiscal Quarter to exceed (i) with respect to the third and fourth Fiscal Quarters of  2012 and the first Fiscal Quarter of 2013, 3.25:1.0 and (ii) with respect to each Fiscal Quarter thereafter, 2.75:1.0.

 

(b)                                 The Borrower will not permit the Interest Coverage Ratio as of the last day of any Fiscal Quarter to be less than (i) with respect to the third and fourth Fiscal Quarters of 2012 and the first Fiscal Quarter of 2013, 2.25:1.0, (ii) with respect to the second Fiscal Quarter of  2013, 3.00:1.0, and (iii) with respect to each Fiscal Quarter thereafter, 4.00:1.0.

 

 

(c)                                  The Borrower will not permit the Total Leverage Ratio as of the last day of any Fiscal Quarter to exceed (i) with respect to the third and fourth Fiscal Quarters of 2012 and the first Fiscal Quarter of 2013, 6.00:1.0, (ii) with respect to the second Fiscal Quarter of 2013, 4.75:1.00 and (iii) with respect to each Fiscal Quarter thereafter, 4.00:1.0.

 

(d)                                 If, as of the date of any Airbus Discontinuance or any 787 Discontinuance, the outstanding aggregate amount of advance payments or progress payments made by Boeing and/or Airbus in connection with the 787 Program and/or the Airbus Program that are then considered “Indebtedness” exceeds $250,000,000, the Borrower will not permit the Total Leverage Ratio to exceed the Total Leverage Ratio required at such time by Section 8.12(c) for the period in which such Airbus Discontinuance or 787 Discontinuance shall be deemed to have occurred as provided below.  For purposes of calculating the Total Leverage Ratio pursuant to this clause (d), the occurrence of an Airbus Discontinuance or the occurrence of a 787 Discontinuance shall be deemed to have occurred as of the last day of the most recent four Fiscal Quarter period preceding the date of such Airbus Discontinuance and/or such 787 Discontinuance for which the Borrower was required to deliver financial statements pursuant to Section 7.01(a) or (b).

 

Section 2.  Conditions Precedent to the Effectiveness of this Amendment.

 

This Amendment shall become effective as of the date first written above when, and only when, each of the following conditions precedent shall have been satisfied or waived (the “Amendment No. 1 Effective Date”) by the Administrative Agent:

 

2.1                                 Executed Counterparts.  The Administrative Agent shall have received this Amendment, duly executed by the Borrower, the Guarantors, the Administrative Agent and the Requisite Lenders;

 

2.2                                 No Default or Event of Default.  After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing; and

 

2.3                                 Fees and Expenses. The Borrower shall have delivered, by wire transfer of immediately available funds, to the Administrative Agent, for the account of each Lender that consents to this Amendment, an amendment fee in an amount equal to five basis points (0.05%) of the sum of the Revolving Commitment of such Lender plus the aggregate outstanding principal amount of the Term B Loan of such Lender, which fee shall be earned and payable on the Amendment No. 1 Effective Date.

 

Section 3.  Representations and Warranties

 

On and as of the Amendment No. 1 Effective Date, after giving effect to this Amendment, the Loan Parties hereby represent and warrant to the Administrative Agent and each Lender as follows:

 

3.1                                 this Amendment has been duly authorized, executed and delivered by each Loan Party and, assuming the due execution and delivery of this Amendment by each of the other parties hereto, constitutes the legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally;

 

3.2                                 each of the representations and warranties contained in Article VI of the Credit Agreement and in each other Loan Document is true and correct in all material respects (except that any

 

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representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) with the same effect as if then made (unless expressly stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date);

 

3.3                                 no Default or Event of Default has occurred and is continuing; and

 

3.4                                 after giving effect to this Amendment, neither the modification of the Credit Agreement affected pursuant to this Amendment nor the execution, delivery, performance or effectiveness of this Amendment (a) impairs the validity, effectiveness or priority of the Liens granted pursuant to any Loan Document, and such Liens continue unimpaired with the same priority to secure repayment of all Obligations, whether heretofore or hereafter incurred; or (b) requires that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.

 

Section 4.  Fees and Expenses

 

The Borrower agrees to pay promptly (and in any event on the Amendment No. 1 Effective Date) after presentation of an invoice therefor all reasonable and documented out-of-pocket fees and expenses of the Joint Lead Arrangers (including the reasonable and documented fees and out-of-pocket expenses of Moore & Van Allen, PLLC) in connection with the preparation, negotiation, execution and delivery of this Amendment.

 

Section 5. Reference to the Effect on the Loan Documents

 

5.1                                 As of the Amendment No. 1 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder”, “thereof’ and words of like import), shall mean and be a reference to the Credit Agreement, as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument. Each of the table of contents and lists of Exhibits and Schedules of the Credit Agreement shall be amended to reflect the changes made in this Amendment as of the Amendment No. 1 Effective Date;

 

5.2                                 Except as expressly amended hereby or specifically waived above, all of the terms and provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are hereby ratified and confirmed;

 

5.3                                 The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders, the Borrower, Lead Arranger or the Administrative Agent under any of the Loan Documents, nor constitute a waiver or amendment of any other provision of any of the Loan Documents or for any purpose except as expressly set forth herein; and

 

5.4                                 This Amendment is a Loan Document.

 

Section 6. Execution in Counterparts

 

This Amendment may be executed by the parties hereto in several counterparts (including by facsimile or other electronic imaging means (e.g., “.pdf” or “.tif”), each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.

 

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Section 7. Governing Law

 

THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section 8. Headings

 

The various headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or any provisions hereof.

 

Section 9. Notices

 

All communications and notices hereunder shall be given as provided in the Credit Agreement.

 

Section 10. Severability

 

The fact that any term or provision of this Amendment is held invalid, illegal or unenforceable as to any person in any situation in any jurisdiction shall not affect the validity, enforceability or legality of the remaining terms or provisions hereof or the validity, enforceability or legality of such offending term or provision in any other situation or jurisdiction or as applied to any person.

 

Section 11. Successors

 

The terms of this Amendment shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

 

Section 12. Cross-References

 

References in this Amendment to any Section are, unless otherwise specified or otherwise required by the context, to such Section of this Amendment.

 

Section 13. Affirmations

 

13.1                           Each Loan Party signatory hereto hereby (a) ratifies and affirms its obligations under the Loan Documents (including guarantees and security agreements) executed by the undersigned and (b) acknowledges, renews and extends its continued liability under all such Loan Documents and agrees such Loan Documents remain in full force and effect, in each case, as modified by this Amendment.

 

13.2                           Each Loan Party signatory hereto hereby reaffirms, as of the Amendment No. 1 Effective Date, (a) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions contemplated thereby, and (b) its guarantee of payment of the Obligations pursuant to the Guaranty and the Lien on the Collateral securing payment of the Obligations pursuant to the Security Documents.

 

13.3                           Each Loan Party signatory hereto hereby certifies that, as of the date hereof (both before and after giving effect to the occurrence of the Amendment No. 1 Effective Date), the representations and

 

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warranties made by it contained in the Loan Documents to which it is a party are true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) with the same effect as if then made (unless expressly stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date).

 

13.4                           Each Loan Party signatory hereto hereby acknowledges and agrees that the acceptance by the Administrative Agent and each Lender shall not be construed in any manner to establish any course of dealing on the Administrative Agent’s or Lender’s part, including the providing of any notice or the requesting of any acknowledgment not otherwise expressly provided for in any Loan Document with respect to any future amendment, waiver, supplement or other modification to any Loan Document or any arrangement contemplated by any Loan Document.

 

13.5                           Each Loan Party signatory hereto hereby represents and warrants that, immediately after giving effect to this Amendment, each Loan Document, in each case as modified by this Amendment (where applicable), to which it is a party, assuming the due execution and delivery of such Loan Document as modified (where applicable) by each of the other parties thereto, continues to be a legal, valid and binding obligation of the undersigned, enforceable against such party in accordance with its terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by principles of equity).

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers and general partners thereunto duly authorized, as of the date first written above.

 

	
 
    	
SPIRIT   AEROSYSTEMS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark J. Suchinski
    
	
 
    	
Name:
    	
Mark J.   Suchinski
    
	
 
    	
Title:
    	
Vice   President, Treasurer & Financial Planning
    
	
 
    	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark J. Suchinski
    
	
 
    	
Name:
    	
Mark J.   Suchinski
    
	
 
    	
Title:
    	
Vice   President, Treasurer & Financial Planning
    
	
 
    	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS INTERNATIONAL HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS FINANCE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS INVESTCO, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS NORTH CAROLINA, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS OPERATIONS INTERNATIONAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
SPIRIT   DEFENSE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Bank of   America, N.A.,
    As Administrative Agent and Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth J. Beck
    
	
 
    	
 
    	
Name:   Kenneth J. Beck
    
	
 
    	
 
    	
Title:   Director
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
BANK   OF AMERICA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth J. Beck
    
	
 
    	
 
    	
Name:   Kenneth J. Beck
    
	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   BANK OF NEW YORK MELLON
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Donald G. Cassidy, Jr.
    
	
 
    	
 
    	
Name:   Donald G. Cassidy, Jr.
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Mahmood
    
	
 
    	
 
    	
Name:   DAVID MAHMOOD
    
	
 
    	
 
    	
Title:   MANAGING DIRECTOR
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   BANK OF TOKYO-MITSUBISHI UFJ, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Danielson
    
	
 
    	
 
    	
Name:   Thomas Danielson
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BRANCH   BANKING & TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bradley B. Sands
    
	
 
    	
 
    	
Name:   Bradley B. Sands
    
	
 
    	
 
    	
Title:   Assistant Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CITIBANK,   N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Reed
    
	
 
    	
 
    	
Name:   Brian Reed
    
	
 
    	
 
    	
Title:   Managing Director
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
COMERICA   BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark J Leveille
    
	
 
    	
 
    	
Name:   Mark J Leveille
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COMPASS   BANK,   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Susana Campuzano
    
	
 
    	
 
    	
Name:   Susana Campuzano
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alain Daoust
    
	
 
    	
 
    	
Name:   Alain Daoust
    
	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rahul Parmar
    
	
 
    	
 
    	
Name:   Rahul Parmar
    
	
 
    	
 
    	
Title:   Associate
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SCOTIABANC   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   J.F. Todd
    
	
 
    	
 
    	
Name:   J.F. Todd
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FIFTH   THIRD BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert M. Sander
    
	
 
    	
 
    	
Name:   Robert M. Sander
    
	
 
    	
 
    	
Title:   Vice President
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

 

	
 
    	
INTRUST   BANK, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Roger G. Eastwood
    
	
 
    	
 
    	
Name:   Roger G. Eastwood
    
	
 
    	
 
    	
Title:   Division Director-Commercial Banking
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MORGAN STANLEY BANK, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Penny Tsekouras
    
	
 
    	
 
    	
Name:   Penny Tsekouras
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   NORTHERN TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   James Shanel
    
	
 
    	
 
    	
Name:   James Shanel
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ROYAL   BANK OF CANADA
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard Smith
    
	
 
    	
 
    	
Name:   Richard Smith
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   ROYAL BANK OF SCOTLAND PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ L.   Peter Yetman
    
	
 
    	
 
    	
Name:   L. Peter Yetman
    
	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SUMITOMO   MITSUI BANKING CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shuji Yabe
    
	
 
    	
 
    	
Name:   Shuji Yabe
    
	
 
    	
 
    	
Title:   Managing Director
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter I. Bystol
    
	
 
    	
 
    	
Name:   Peter I. Bystol
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Matthew Olson
    
	
 
    	
 
    	
Name:   Matthew Olson
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MIZUHO   CORPORATE BANK, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   James R. Fayen
    
	
 
    	
 
    	
Name:   James R. Fayen
    
	
 
    	
 
    	
Title:   Deputy General Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COMMUNITY   INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
COMMUNITY   INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
BY:
    	
ARES   WLP MANAGEMENT, L.P., ITS 
    
	
 
    	
INVESTMENT   MANAGER
    
	
 
    	
 
    	
 
    
	
 
    	
BY:
    	
ARES   WLP MANAGEMENT GP, LLC, ITS 
    
	
 
    	
GENERAL   PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name:   John Eanes
    
	
 
    	
 
    	
Title:   Vice President
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Octagon   Loan Trust 2010
    
	
 
    	
By:
    	
Octagon   Credit Investors, LLC, as
    
	
 
    	
Investment   Manager on behalf of The Bank of
    
	
 
    	
New   York Trust Company (Cayman) Limited, as
    
	
 
    	
Trustee   of Octagon Loan Trust 2010
    
	
 
    	
 
    	
 
    
	
 
    	
Octagon   Delaware Trust 2011
    
	
 
    	
By:
    	
Octagon   Credit Investors, LLC as 
   Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Donald C. Young
    
	
 
    	
 
    	
Name:   Donald C. Young
    
	
 
    	
 
    	
Title:   Senior Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Community   Insurance Company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sankaty   Advisors, LLC as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Viens
    
	
 
    	
 
    	
Name:   Andrew Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Qantas   Superannuation Plan
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sankaty   Advisors, LLC as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew S. Viens
    
	
 
    	
 
    	
Name:   Andrew S. Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Race   Point IV CLO, Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sankaty   Advisors, LLC as Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew S. Viens
    
	
 
    	
 
    	
Name:   Andrew S. Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Race   Point V CLO, Limited
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sankaty   Advisors, LLC Its Asset Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew S. Viens
    
	
 
    	
 
    	
Name:   Andrew S. Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Race   Point VI CLO, Ltd
    
	
 
    	
By:   Sankaty Advisors LLC, as Asset Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Viens
    
	
 
    	
 
    	
Name:   Andrew Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Sankaty   High Income Partnership, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sankaty   Advisors, LLC as Investment Advisor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew S. Viens
    
	
 
    	
 
    	
Name:   Andrew S. Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Sankaty   Senior Loan Fund, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew S. Viens
    
	
 
    	
 
    	
Name:   Andrew S. Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WellPoint, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Sankaty   Advisors, LLC as Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew S. Viens
    
	
 
    	
 
    	
Name:   Andrew S. Viens
    
	
 
    	
 
    	
Title:   Sr. Vice President of Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GE   CAPITAL BANK (FORMERLY KNOWN AS GE CAPITAL FINANCIAL INC)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dennis P. Leonard
    
	
 
    	
 
    	
Name:   Dennis P. Leonard
    
	
 
    	
 
    	
Title:   Duly Authorized Signatory
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
TRS   HY FNDS LLC
    
	
 
    	
By:
    	
Deutsche   Bank AG Cayman Islands Branch, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
DB   Services New Jersey, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christine LaMonaca
    
	
 
    	
 
    	
Name:   Christine LaMonaca
    
	
 
    	
 
    	
Title:   Assistant Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Angeline Quintana
    
	
 
    	
 
    	
Name:   Angeline Quintana
    
	
 
    	
 
    	
Title:   Assistant Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
REMUDA   CAPITAL MANAGEMENT, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William J. Morgan
    
	
 
    	
 
    	
Name:   William J. Morgan
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PRESIDENTIAL   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William J. Morgan
    
	
 
    	
 
    	
Name:   William J. Morgan
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JPMORGAN   STRATEGIC INCOME OPPORTUNITIES FUND-DISTRESSED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William J. Morgan
    
	
 
    	
 
    	
Name:   William J. Morgan
    
	
 
    	
 
    	
Title:   Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ADVANCED   SERIES TRUST-AST J.P. MORGAN STRATEGIC OPPORTUNITIES PORTFOLIO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William J. Morgan
    
	
 
    	
 
    	
Name:   William J. Morgan
    
	
 
    	
 
    	
Title:   Managing Director
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

 

	
 
    	
Eaton   Vance CDO VIII, Ltd.
    
	
 
    	
 
    	
By:   Eaton Vance Management
    
	
 
    	
 
    	
As   Investment Advisor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Michael B. Botthof
    
	
 
    	
 
    	
Name:  Michael B. Botthof
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INNOVATION   TRUST 2009
    
	
 
    	
By:
    	
EATON   VANCE MANAGEMENT
    
	
 
    	
 
    	
AS   INVESTMENT ADVISOR
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Michael B. Botthof
    
	
 
    	
 
    	
Name:   Michael B. Botthof
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Greywolf   CLO I, Ltd
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Greywolf   Capital Management LP, its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robert Miller
    
	
 
    	
 
    	
Name:   Robert Miller
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Pioneer   Short Term Income Fund
    
	
 
    	
Pioneer   Multi-Asset Ultrashort Income Fund
    
	
 
    	
Pioneer   Floating Rate Fund
    
	
 
    	
Pioneer   Bond Fund
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Pioneer   Investment Management, Inc.
    
	
 
    	
 
    	
As   adviser to each Lender above
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Margaret C. Begley
    
	
 
    	
 
    	
Name:   Margaret C. Begley
    
	
 
    	
 
    	
Title: Secretary   and Associate General Counsel
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Pioneer   Institutional Core Plus Portfolio
    
	
 
    	
Pioneer   Core Plus Fixed Income Trust
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Pioneer   Institutional Asset Management, Inc.
    
	
 
    	
 
    	
As   adviser to each Lender above
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Margaret C. Begley
    
	
 
    	
 
    	
Name: Margaret   C. Begley
    
	
 
    	
 
    	
Title: Secretary   and Associate General Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CALIFORNIA   FIRST NATIONAL BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   D.N. Lee
    
	
 
    	
 
    	
Name: D.N.   Lee
    
	
 
    	
 
    	
Title: S.V.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Kingsland   II, Ltd.
    
	
 
    	
 
    
	
 
    	
By:   Kingsland Capital Management, LLC, as Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Scott Lotter
    
	
 
    	
 
    	
Name: Scott   Lotter
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Kingsland   III, Ltd.
    
	
 
    	
 
    
	
 
    	
By:   Kingsland Capital Management, LLC, as Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Scott Lotter
    
	
 
    	
 
    	
Name: Scott   Lotter
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Kingsland   IV Ltd.
    
	
 
    	
 
    
	
 
    	
By:   Kingsland Capital Management, LLC, as Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Scott Lotter
    
	
 
    	
 
    	
Name: Scott   Lotter
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Kingsland   V Ltd.
    
	
 
    	
By:   Kingsland Capital Management, LLC, as Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Scott Lotter
    
	
 
    	
 
    	
Name: Scott   Lotter
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Cent   CDO 12 Limited
    
	
 
    	
By:   Columbia Management Investment Advisers, LLC
    
	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robin C. Stancil
    
	
 
    	
 
    	
Name: Robin   C. Stancil
    
	
 
    	
 
    	
Title: Assistant   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Cent   CDO 14 Limited
    
	
 
    	
 
    
	
 
    	
By:   Columbia Management Investment Advisers, LLC
    
	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robin C. Stancil
    
	
 
    	
 
    	
Name: Robin   C. Stancil
    
	
 
    	
 
    	
Title: Assistant   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Cent   CDO 15 Limited
    
	
 
    	
 
    
	
 
    	
By:   Columbia Management Investment Advisers, LLC
    
	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robin C. Stancil
    
	
 
    	
 
    	
Name: Robin   C. Stancil
    
	
 
    	
 
    	
Title: Assistant   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Cent   CDO XI Limited
    
	
 
    	
 
    
	
 
    	
By:   Columbia Management Investment Advisers, LLC
    
	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robin C. Stancil
    
	
 
    	
 
    	
Name: Robin   C. Stancil
    
	
 
    	
 
    	
Title: Assistant   Vice President
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Centurion   CDO 9 Limited
    
	
 
    	
By:   Columbia Management Investment Advisers, LLC
    
	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robin C. Stancil
    
	
 
    	
 
    	
Name: Robin   C. Stancil
    
	
 
    	
 
    	
Title: Assistant   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RiverSource   Life Insurance Company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Robin C. Stancil
    
	
 
    	
 
    	
Name: Robin   C. Stancil
    
	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MARLBOROUGH   STREET CLO, LTD.,
    
	
 
    	
By its   Collateral Manager, Massachusetts Financial Services Company
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   David J. Coley
    
	
 
    	
 
    	
As   authorized representative and not individually
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ARES   LOAN TRUST 2011
    
	
 
    	
 
    
	
 
    	
ARES   LOAN TRUST 2011
    
	
 
    	
 
    
	
 
    	
BY:   ARES MANAGEMENT LLC, ITS INVESTMENT MANAGER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name: John   Eanes
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
ARES   IIIR/IVR CLO LTD.
    
	
 
    	
 
    
	
 
    	
ARES   IIIR/IVR CLO LTD.
    
	
 
    	
 
    
	
 
    	
BY:   ARES CLO MANAGEMENT IIIR/IVR, L.P., ITS ASSET MANAGER
    
	
 
    	
 
    
	
 
    	
BY:   ARES CLO GP IIIR/IVR, LLC, ITS GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name: John   Eanes
    
	
 
    	
 
    	
Title: Vice   President
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
ARES   XXIII CLO LTD.
    
	
 
    	
ARES   XXIII CLO LTD.
    
	
 
    	
 
    
	
 
    	
BY:   ARES CLO MANAGEMENT XXIII, L.P., ITS ASSET MANAGER
    
	
 
    	
 
    
	
 
    	
BY:   ARES CLO GP XXIII, LLC, ITS GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name: John   Eanes
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ARES   SENIOR LOAN TRUST
    
	
 
    	
 
    
	
 
    	
ARES   SENIOR LOAN TRUST
    
	
 
    	
 
    
	
 
    	
BY:   ARES SENIOR LOAN TRUST MANAGEMENT, L.P., ITS INVESTMENT MANAGER
    
	
 
    	
 
    
	
 
    	
BY:   ARES SENIOR LOAN TRUST MANAGEMENT, LLC, ITS GENERAL PARTNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name: John   Eanes
    
	
 
    	
 
    	
Title: Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ARES   ENHANCED CREDIT OPPORTUNITIES FUND LTD.
    
	
 
    	
 
    
	
 
    	
ARES   ENHANCED CREDIT OPPORTUNITIES FUND LTD.
    
	
 
    	
 
    
	
 
    	
BY:   ARES ENHANCED CREDIT OPPORTUNITIES FUND MANAGEMENT, L.P., ITS MANAGER
    
	
 
    	
 
    
	
 
    	
BY:   ARES ENHANCED CREDIT OPPORTUNITIES FUND MANAGEMENT GP, LLC, AS GENERAL   PARTNER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name:   John Eanes
    
	
 
    	
 
    	
Title:   Vice President
    
				

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
ARES   ENHANCED CREDIT OPPORTUNITIES FUND II, LTD.
    
	
 
    	
 
    
	
 
    	
ARES   ENHANCED CREDIT OPPORTUNITIES FUND II, LTD.
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED CREDIT OPPORTUNITIES   INVESTMENT MANAGEMENT II, LLC, ITS MANAGER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name:  John Eanes
    
	
 
    	
 
    	
Title:  Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ARES   ENHANCED LOAN INVESTMENT STRATEGY IR LTD.
    
	
 
    	
 
    
	
 
    	
ARES   ENHANCED LOAN INVESTMENT STRATEGY IR LTD.
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED LOAN MANAGEMENT IR, L.P., AS   PORTFOLIO MANAGER
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED LOAN IR GP, LLC, ITS   GENERAL PARTNER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John   Eanes
    
	
 
    	
 
    	
Name:  John Eanes
    
	
 
    	
 
    	
Title:  Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ARES   ENHANCED LOAN INVESTMENT STRATEGY III, LTD.
    
	
 
    	
 
    
	
 
    	
ARES   ENHANCED LOAN INVESTMENT STRATEGY III, LTD.
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED LOAN MANAGEMENT III,   L.P., ITS PORTFOLIO MANAGER
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED LOAN III GP, LLC, ITS   GENERAL PARTNER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name:  John Eanes
    
	
 
    	
 
    	
Title:  Vice President
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
FUTURE   FUND BOARD OF GUARDIANS
    
	
 
    	
 
    
	
 
    	
FUTURE   FUND BOARD OF GUARDIANS
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED LOAN INVESTMENT STRATEGY   ADVISOR IV, L.P., ITS INVESTMENT MANAGER (ON BEHALF OF THE ELIS IV SUB   ACCOUNT)
    
	
 
    	
 
    
	
 
    	
BY:  ARES ENHANCED LOAN INVESTMENT STRATEGY   ADVISOR IV GP, LLC, ITS GENERAL PARTNER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name:   John Eanes
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WELLPOINT, INC.
    
	
 
    	
 
    
	
 
    	
WELLPOINT, INC.
    
	
 
    	
 
    
	
 
    	
BY:  ARES WLP MANAGEMENT, L.P., ITS   INVESTMENT MANAGER
    
	
 
    	
 
    
	
 
    	
BY:  ARES WLP MANAGEMENT GP, LLC, ITS   GENERAL PARTNER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John Eanes
    
	
 
    	
 
    	
Name:   John Eanes
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LCM   V, Ltd.
    
	
 
    	
By:
    	
LCM   Asset Management LLC
    
	
 
    	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alexander B. Kenna
    
	
 
    	
 
    	
Name:   Alexander B. Kenna
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LCM   VI, Ltd.
    
	
 
    	
By:
    	
LCM   Asset Management LLC
    
	
 
    	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alexander B. Kenna
    
	
 
    	
 
    	
Name:   Alexander B. Kenna
    
	
 
    	
 
    	
Title:
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
LCM   XI Limited Partnership
    
	
 
    	
By:
    	
LCM   Asset Management LLC
    
	
 
    	
 
    	
As   Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alexander B. Kenna
    
	
 
    	
 
    	
Name:   Alexander B. Kenna
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ACA   CLO 2007-1 LTD
    
	
 
    	
 
    
	
 
    	
By:
    	
Its   Investment Advisor CVC Credit Partners, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Ingato
    
	
 
    	
 
    	
Name:   Vincent Ingato
    
	
 
    	
 
    	
Title:   MD/PM
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APIDOS   CDO V
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Its   Investment Advisor CVC Credit Partners, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Ingato
    
	
 
    	
 
    	
Name:   Vincent Ingato
    
	
 
    	
 
    	
Title:   MD/PM
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APIDOS   CINCO CDO
    
	
 
    	
 
    
	
 
    	
By:
    	
Its   Investment Advisor CVC Credit Partners, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Ingato
    
	
 
    	
 
    	
Name:   Vincent Ingato
    
	
 
    	
 
    	
Title:   MD/PM
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APIDOS   CLO VIII
    
	
 
    	
 
    
	
 
    	
By:
    	
Its   Collateral Manager CVC Credit Partners, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Ingato
    
	
 
    	
 
    	
Name:   Vincent Ingato
    
	
 
    	
 
    	
Title:   MD/PM
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
SAN   GABRIEL CLO I LTD
    
	
 
    	
By:
    	
Its   Collateral Manager CVC Credit Partners, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
On   behalf of Resource Capital Asset Management (RCAM)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Ingato
    
	
 
    	
 
    	
Name:   Vincent Ingato
    
	
 
    	
 
    	
Title:   MD/PM
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SHASTA   CLO I LTD
    
	
 
    	
 
    
	
 
    	
By:
    	
Its   Investment Advisor CVC Credit Partners, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
On   behalf of Resource Capital Asset Management (RCAM)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vincent Ingato
    
	
 
    	
 
    	
Name:   Vincent Ingato
    
	
 
    	
 
    	
Title:   MD/PM
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GSO   LOAN TRUST 2010
    
	
 
    	
By:
    	
GSO   Capital Advisors LLC, As its Investment Advisor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel H. Smith
    
	
 
    	
 
    	
Name:   Daniel H. Smith
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Sunsuper   Pooled Superannuation Trust
    
	
 
    	
 
    
	
 
    	
By:
    	
GSO   Capital Partners LP, its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel H. Smith
    
	
 
    	
 
    	
Name:   Daniel H. Smith
    
	
 
    	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
UNITED   HEALTHCARE INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
GSO   Capital Advisors LLC as Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel H. Smith
    
	
 
    	
 
    	
Name:   Daniel H. Smith
    
	
 
    	
 
    	
Title:   Authorized Signatory
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
FIDELITY   ADVISOR SERIES I: FIDELITY ADVISOR FLOATING RATE HIGH INCOME FUND
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adrien Deberghes
    
	
 
    	
 
    	
Name:   Adrien Deberghes
    
	
 
    	
 
    	
Title:   Deputy Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HARBOURVIEW   CLO 2006-1
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin Urlik
    
	
 
    	
 
    	
Name:   Kevin Urlik
    
	
 
    	
 
    	
Title:   Manager, Brown Brothers Harriman & Co.
    
	
 
    	
 
    	
acting   as agent for OppenheimerFunds, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Meredith R. Smith
    
	
 
    	
 
    	
Name:
    	
Meredith   R. Smith
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SUMITOMO   MITSUI TRUST BANK, LIMITED, NEW YORK BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Albert C. Tew II
    
	
 
    	
 
    	
Name:
    	
ALBERT   C. TEW II
    
	
 
    	
 
    	
Title:
    	
VICE   PRESIDENT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KATONAH   X CLO LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel Gilligan
    
	
 
    	
 
    	
Name:
    	
DANIEL   GILLIGAN
    
	
 
    	
 
    	
Title:
    	
Authorized   Officer
    
	
 
    	
 
    	
 
    	
Katonah   Debt Advisors, L.L.C.
    
	
 
    	
 
    	
 
    	
As   Manager
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
KATONAH   2007-I CLO LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel Gilligan
    
	
 
    	
 
    	
Name:
    	
DANIEL   GILLIGAN
    
	
 
    	
 
    	
Title:
    	
Authorized   Officer
    
	
 
    	
 
    	
 
    	
Katonah   Debt Advisors, L.L.C.
    
	
 
    	
 
    	
 
    	
As   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ECP   CLO 2012-3, LTD
    
	
 
    	
 
    
	
 
    	
By:   Silvermine Capital Management
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jonathan Marks
    
	
 
    	
 
    	
Name:
    	
Jonathan   Marks
    
	
 
    	
 
    	
Title:
    	
Principal
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ECP   CLO 2012-4, LTD
    
	
 
    	
 
    
	
 
    	
By:   Silvermine Capital Management
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jonathan Marks
    
	
 
    	
 
    	
Name:
    	
Jonathan   Marks
    
	
 
    	
 
    	
Title:
    	
Principal
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MALIBU   CBNA LOAN FUNDING LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Adam Kaiser
    
	
 
    	
 
    	
Name:
    	
Adam   Kaiser
    
	
 
    	
 
    	
Title:
    	
ATTORNEY-IN-FACT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Medical   Liability Mutual Insurance Company
    
	
 
    	
 
    
	
 
    	
By:   Invesco Advisers, Inc. as Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas Ewald
    
	
 
    	
 
    	
Name:
    	
Thomas   Ewald
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
ARMED   FORCES BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Phillip McElhaney
    
	
 
    	
 
    	
Name:
    	
Phillip   McElhaney
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Cedar   Funding Ltd.
    
	
 
    	
 
    
	
 
    	
By:   AEGON USA Investment Management, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa Baltagi
    
	
 
    	
 
    	
Name:
    	
Lisa   Baltagi
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Falcon   Senior Loan Fund Ltd.
    
	
 
    	
 
    
	
 
    	
By:   Apollo Fund Management LLC
    
	
 
    	
As Its   Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joe   Moroney
    
	
 
    	
 
    	
Name:
    	
Joe   Moroney
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Stone   Tower Loan Trust 2010
    
	
 
    	
 
    
	
 
    	
By:   Apollo Fund Management LLC,
    
	
 
    	
As its   Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joe   Moroney
    
	
 
    	
 
    	
Name:
    	
Joe   Moroney
    
	
 
    	
 
    	
Title:
    	
Portfolio   Administrator
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Stone   Tower Loan Trust 2011
    
	
 
    	
 
    
	
 
    	
By:   Apollo Fund Management LLC, As its Investment Advisor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joe   Moroney
    
	
 
    	
 
    	
Name:
    	
Joe   Moroney
    
	
 
    	
 
    	
Title:
    	
Portfolio   Administrator
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1

 

 

	
 
    	
Renaissance   Trust 2009
    
	
 
    	
By:   Highbridge Principal Strategies LLC,
    
	
 
    	
its   Sub-Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jamie Donsky
    
	
 
    	
 
    	
Name:
    	
JAMIE   DONSKY
    
	
 
    	
 
    	
Title:
    	
VICE   PRESIDENT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Halcyon   Structured Asset Management Long
    
	
 
    	
 
    	
Secured/Short   Unsecured 2007-3 Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James W. Sykes
    
	
 
    	
 
    	
Name:
    	
James   W. Sykes
    
	
 
    	
 
    	
Title:
    	
Managing   Principal
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMBITION   TRUST 2009
    
	
 
    	
AMBITION   TRUST 2011
    
	
 
    	
By   Babson Capital Management LLC as Investment Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Geoffrey Takacs
    
	
 
    	
 
    	
Name:
    	
GEOFFREY   TAKACS
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
C.M.   LIFE INSURANCE COMPANY
    
	
 
    	
MASSACHUSETTS   MUTUAL LIFE INSURANCE
    
	
 
    	
COMPANY
    
	
 
    	
By   Babson Capital Management LLC as Investment Adviser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Geoffrey Takacs
    
	
 
    	
 
    	
Name:
    	
GEOFFREY   TAKACS
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BABSON   CLO LTD. 2011-I
    
	
 
    	
By:   Babson Capital Management LLC as Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Geoffrey Takacs
    
	
 
    	
 
    	
Name:
    	
GEOFFREY   TAKACS
    
	
 
    	
 
    	
Title:
    	
Director
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 1Exhibit 10.1

 

HCP, INC.

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on October 25, 2012 (the “Effective Date”), by and between HCP, Inc. (the “Company”) and James W. Mercer  (“Executive”).  Where the context permits, references to “the Company” shall include the Company and any successor of the Company.

 

W I T N E S S E T H:

 

WHEREAS, the Company and Executive mutually desire to set forth herein the terms and conditions pursuant to which Executive will continue to serve as the Executive Vice President, General Counsel and Corporate Secretary of the Company, effective as of the Effective Date.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein contained, together with other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

1.             SERVICES AND DUTIES.  Subject to Section 2 hereof, from and after the Effective Date, Executive shall, pursuant to the terms of this Agreement, be employed by the Company as the Executive Vice President, General Counsel and Corporate Secretary of the Company.  The principal location of Executive’s employment with the Company shall be at the Company’s headquarters in Long Beach, California, although Executive understands and agrees that Executive may be required to travel from time to time for business reasons.  During the Term (as defined in Section 2), Executive shall be a full-time employee of the Company, shall dedicate substantially all of Executive’s working time to the Company, and shall have no other employment or other business ventures which are undisclosed to the Company or which conflict with Executive’s duties under this Agreement.  Executive shall have such authorities, duties and responsibilities as the Company’s chief executive officer (or his delegate) may from time to time assign to him and reasonably consistent with those customarily performed by an officer holding the position set forth above with a company having a similar size and nature of the Company. Notwithstanding the foregoing, nothing herein shall prohibit Executive from participating in trade associations or industry organizations which are related to the business of the Company or engaging in charitable, civic or political activities, so long as such interests do not materially interfere, individually or in the aggregate, with the performance of Executive’s duties hereunder.  Executive agrees that he shall comply with the corporate policies of the Company as they are in effect from time to time throughout the Term (including, without limitation, the Company’s business conduct and ethics policies, as they may change from time to time).

 

2.             TERM.  Executive’s employment under the terms and conditions of this Agreement shall commence on the Effective Date.  Such employment shall continue for an initial term of three (3) years following the Effective Date (the “Initial Term”), which will be automatically extended on the last day of the Initial Term for an additional one (1)-year term and on each anniversary of the last day of the Initial Term thereafter, unless either Executive or the Company has given written notice to the other no less than sixty (60) days prior to the expiration of the Term then in effect that the Term shall not be so extended.  As used herein, the “Term”

 

 

shall refer to the Initial Term and any extension thereof pursuant to the preceding sentence.  Provision of notice that the Term shall not be extended or further extended, as the case may be, shall not constitute a breach of this Agreement and shall not constitute “Good Reason” for purposes of this Agreement.  Notwithstanding the above, the Term shall earlier expire immediately upon the termination of Executive’s employment pursuant to Section 5 hereof.

 

3.             COMPENSATION.

 

a)            Base Compensation.  The Company shall pay to Executive an initial base salary in the amount of $500,000 per annum in accordance with the regular payroll practices of the Company (the base salary as in effect from time to time, the “Base Compensation”).  Payment of the Base Compensation is subject to customary employee contributions to any benefit programs in which Executive is enrolled.  The Base Compensation may be increased from time to time at the Company’s sole discretion, but in no event shall the Base Compensation be reduced without Executive’s approval.

 

b)            Annual Cash Bonus.  For each calendar year during the Term, Executive shall be eligible to receive an annual cash incentive award (an “Annual Bonus”), the actual amount of such bonus will be determined based on the achievement of performance criteria relating to both Executive and the Company, as determined each year in good faith by the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of the Company (or any successor thereto).  The Annual Bonus, if any, shall be paid to Executive by no later than March 15 of the year following the year to which such Annual Bonus relates, so long as Executive is actively employed by the Company and has not provided a notice of resignation to the Company or received a notice of termination from the Company as of the date of payment.

 

c)             Tax Withholding.  All taxable compensation payable to Executive pursuant to this Agreement shall be subject to any applicable withholding taxes and such other taxes as are required under Federal law or the law of any state or governmental body to be collected with respect to compensation paid by the Company to Executive.

 

4.             BENEFITS AND PERQUISITES.

 

a)            Retirement and Welfare Benefits.  During the Term, Executive shall be eligible to participate in all fringe benefits, perquisites, and such other benefit plans and arrangements as are made available generally to the Company’s senior executives.  The benefits described herein shall be subject to the applicable terms of the applicable plans and shall be governed in all respects in accordance with the terms of such plans as from time to time in effect.  Nothing in this Section 4, however, shall require the Company to maintain any benefit plan or provide any type or level of benefits to its current or former employees, including Executive.

 

b)            Paid Time Off.  During the Term, Executive shall be entitled to accrue vacation (at a rate of not less than 24 days per full calendar year), in accordance with and subject to the Company’s vacation policies applicable to its executives generally as such policies are in effect from time to time.

 

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c)             Reimbursement of Expenses.  The Company shall reimburse Executive for any and all expenses reasonably incurred by Executive during the Term in performing Executive’s duties hereunder, including travel, meals and accommodations, upon submission by Executive of vouchers or receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt.  Executive agrees to promptly submit and document any reimbursable expenses in accordance with the Company’s expense reimbursement policies to facilitate the timely reimbursement of such expenses.

 

5.             TERMINATION.  The Term and Executive’s employment hereunder may be terminated (1) by the Company for “Cause” (as defined and determined below), effective on the date on which a written notice to such effect (a “Cause Termination Notice”) is delivered to Executive; (2) by the Company at any time without Cause (which includes pursuant to an election by the Company not to renew the Term, the written notice (pursuant to Section 2) of which shall be deemed a notice of termination of Executive’s employment hereunder), effective sixty (60) days following the date on which a written notice to such effect is delivered to Executive; (3) by Executive for “Good Reason” (as defined and determined below), in accordance with the notice, cure and termination periods set forth in the definition of such term below; or (4) by Executive at any time other than for Good Reason, effective sixty (60) days following the date on which a written notice to such effect is delivered to the Company (or its successors).  In the event that the Company provides Executive notice of termination without Cause pursuant to clause (2) or Executive provides the Company notice of termination pursuant to clause (3) or clause (4), the Company will have the option to place the Executive on paid administrative leave during the notice period.  Upon any termination of Executive’s employment hereunder, Executive shall be entitled to receive the following:  (i) any accrued but unpaid Base Compensation (to be paid as provided in Section 3(a)); (ii) reimbursement for expenses incurred by Executive prior to the date of termination in accordance with Section 4(c) hereof; (iii) vested benefits, if any, to which Executive may be entitled under the Company’s employee benefit plans as of the date of termination; and (iv) any additional amounts or benefits due under any applicable plan, program, agreement or arrangement of the Company or its Affiliates (the amounts and benefits described in clauses (i) through (iv) above, collectively, the “Accrued Benefits”).  Accrued Benefits under this Section 5 shall in all events be paid in accordance with the Company’s payroll procedures, expense reimbursement procedures or plan terms, as applicable, or in accordance with applicable law.

 

a)            Termination by the Company for Cause or by Executive without Good Reason.  If Executive’s employment hereunder is terminated during the Term by the Company for Cause or by Executive without Good Reason, Executive shall not be entitled to any further compensation or benefits other than the Accrued Benefits.

 

b)            Termination by the Company without Cause or by Executive With Good Reason.  Subject to Section 5(e) below, if Executive’s employment hereunder is terminated during the Term (I) by the Company other than for Cause (and other than due to Executive’s death or “Disability” (as defined below) or a decision by the Company not to extend the Term as provided in Section 2), or (II) by Executive with Good Reason, then Executive shall be entitled to (1) the Accrued Benefits and (2) subject to Executive’s execution of a general release of claims in the form attached hereto as Exhibit A (with such changes as may be reasonably required to such form to help ensure its enforceability in light of any changes in applicable law)

 

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(the “Release”) within twenty-one (21) days following such termination of employment, and the expiration of any revocation period with respect to such Release provided by applicable law, and provided that Executive does not materially breach the restrictive covenants set forth in Section 6 hereof or in any other agreement between Executive and the Company or to which Executive is a party (collectively, “Restrictive Covenants”) or any other ongoing obligation to which Executive is subject as of the date of termination:

 

(i)            an amount equal to one (1) times the sum of (x) Executive’s Base Compensation, at the rate in effect on the date of Executive’s termination of employment and (y) the greater of (I) Executive’s annual incentive bonus paid or payable for the last fiscal year of the Company for which the Compensation Committee has determined bonuses for the Company’s executives generally prior to the date of such termination or (II) the average of the Executive’s annual incentive bonuses for the three consecutive fiscal years of the Company ending with the last fiscal year of the Company for which the Compensation Committee has determined bonuses for the Company’s executives generally prior to the date of such termination (or, if less, the average of Executive’s annual incentive bonuses for the entire period of his employment with the Company), such amount to be paid in a lump sum in the month following the month in which Executive’s Separation from Service (as defined below) occurs; and

 

(ii)           each equity-based award granted by the Company to Executive that is outstanding on the date of termination will immediately vest as to any portion of the award that is scheduled to vest with two (2) years following the termination date; provided, however, that as to any such award that is subject to performance-based vesting requirements for which the applicable performance period is in progress on the termination date, such award shall remain open until the end of such performance period and, upon a determination thereafter by the Compensation Committee as to the relevant level of performance achieved and the portion of the award eligible to vest based on such determination, Executive will be credited with two (2) years of continued service, as measured from the date of Executive’s termination of employment, for purposes of applying any time-based vesting requirements applicable to the award.  Any portion of any equity-based award granted by the Company to Executive that is not vested after giving effect to the foregoing acceleration provisions shall terminate as of Executive’s date of termination (or, in the case of a performance-based award, as of the date of the Compensation Committee’s determination of the relevant level of performance achieved).

 

c)             Termination Due to Death or Disability.  The Term and Executive’s employment hereunder shall automatically terminate upon Executive’s death or Disability.  If Executive’s employment hereunder terminates due to death or Disability, then Executive shall not be entitled to any further compensation or benefits other than the Accrued Benefits.

 

d)            Welfare Benefit Continuation.  Subject to Section 5(e) below, in the event that Executive’s employment hereunder is terminated other than (i) by the Company for Cause or (ii) by Executive without Good Reason, the Company shall reimburse Executive for the full amount of the COBRA premiums incurred by Executive during the 12 month period following the date of such termination, provided that (A) such reimbursement does not result in adverse tax consequences to the Company under Section 105(h) of the Code or otherwise and (B) such reimbursement shall immediately cease in the event that Executive becomes eligible to participate in the health insurance plan of a subsequent employer or other service recipient (or at such time as the Company ceases to offer group medical coverage to its active executive employees or the Company is otherwise under no obligation to offer COBRA continuation coverage to Executive).

 

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e)             Change in Control Plan.  Notwithstanding the foregoing provisions, in the event that Executive would be entitled to severance benefits under the Company’s Change in Control Severance Plan, or any successor plan thereto (the “CIC Plan”), in connection with a termination of his employment described in Section 5(b) or Section 5(d) above, Executive will be entitled to receive the benefits provided under the CIC Plan.  In no event will Executive be entitled to receive severance benefits under both the CIC Plan and this Agreement.

 

f)             Definitions.  For purposes of this Agreement:

 

“Affiliate” means an affiliate of the Company (or other referenced entity, as the case may be) as defined in Rule 12b-2 promulgated under Section 12 of the Securities Exchange Act of 1934, as amended.

 

“Cause” means the occurrence of any of the following: (i) Executive’s willful and continued failure to perform his duties with the Corporation (other than any such failure resulting from his or her incapacity due to physical or mental illness) after a written demand for performance is delivered to Executive by the Company, which demand specifically identifies the manner in which the Company believes that Executive has not performed his duties; (ii) Executive’s willful and continued failure to follow and comply with the policies of the Company as in effect from time to time (other than any such failure resulting from Executive’s incapacity due to physical or mental illness) after a written demand for performance is delivered to Executive by the Company, which demand specifically identifies the manner in which the Company believes that Executive has not followed or complied with such Company policies; (iii) Executive’s willful commission of an act of fraud or dishonesty resulting in material economic or financial injury to the Company; (iv) Executive’s willful engagement in illegal conduct or gross misconduct, in each case which is materially and demonstrably injurious to the Company; (v) Executive’s breach of any provision of Section 6 of this Agreement; or (vi) Executive’s indictment for, conviction of, or a plea of guilty or nolo contendere to any felony.

 

For purposes of clarification, if the definition of “Cause” set forth above, and the process associated with it, differs from the definition of cause (or similar term) in any stock incentive plan or agreement of the Company or any of its Affiliates, including the Company’s incentive stock award plan or any other such plan or agreement under which a grant of restricted stock shall be made, the definition set forth above shall control.

 

“Disability” means that Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan, or disability plan, covering employees of the company or an Affiliate of the Company.

 

5

 

“Good Reason” means the occurrence, without the express prior written consent of Executive, of any of the following events: (i) the failure by the Company to pay the Executive any portion of Executive’s Base Compensation within ten (10) days of the date such compensation is due, (ii) the relocation of Executive’s principal location of employment, to a location outside a fifty (50) mile radius from Long Beach, California, (iii) any material diminution of Executive’s duties, responsibilities or authorities hereunder, (iv) any material breach by the Company of any of its material obligations to Executive, or (v) any failure of the Company to obtain the assumption in writing of its obligations under this Agreement by any successor to all or substantially all of its business or assets within 30 days after any reconstruction, amalgamation, combination, merger, consolidation, sale, liquidation, dissolution or similar transaction, unless such assumption occurs by operation of law.  Notwithstanding the foregoing, “Good Reason” to terminate Executive’s employment shall not exist unless (a) a written notice has first been delivered to the Board by Executive (the “Good Reason Notice”), which Good Reason Notice (1) specifically identifies the event(s) Executive believes constitutes Good Reason and (2) provides 30 days from the date of such Good Reason Notice for the Company to cure such circumstances (the “Good Reason Period”) and (b) the Company has failed to timely cure such circumstances.  If the Company fails to timely cure such circumstances in accordance with the foregoing, Executive may send a notice to the Board that he is terminating his employment for Good Reason (“Good Reason Termination Notice”), in which case his employment hereunder shall thereupon be terminated for Good Reason.  If any Good Reason Notice to the Board shall not have been delivered by Executive within ninety (90) days following the date Executive becomes aware of the purported existence of a Good Reason event, or any Good Reason Termination Notice to the Board shall not have been delivered by Executive within thirty (30) days following the end of the Good Reason Period, then any purported termination of Executive’s employment relating to the applicable event shall not be a termination for Good Reason under this Agreement.

 

As used herein, a “Separation from Service” occurs when Executive dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.

 

g)             Resignation as Officer or Director.  Upon a termination of Executive’s employment hereunder, unless requested otherwise by the Company, Executive shall resign each position (if any) that Executive then holds as an officer of the Company or as an officer or director of any of their Affiliates.

 

h)            Section 409A.  The intent of the parties is that payments and benefits under this Agreement shall not result in the imputation of any tax, penalty or interest pursuant to Section 409A of the Code, and accordingly, to the maximum extent permitted, this Agreement shall be construed and interpreted consistent with that intent.  Notwithstanding anything contained herein to the contrary, Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Executive has incurred a “separation from service” from the Company within the meaning of Section 409A of the Code.  Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code.  Without limiting the foregoing and notwithstanding

 

6

 

anything contained herein to the contrary, to the extent required in order to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following an Executive’s separation from service shall instead be paid on the first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death).  To the extent required in order to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code, amounts reimbursable to Executive under this Agreement shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable or provided in any subsequent year.  The Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.

 

6.             COVENANTS.  Executive acknowledges that during the period of his employment with the Company or any Affiliate, he shall have access to the Company’s “Confidential Information” (as defined below) and will meet and develop relationships with the Company’s potential and existing suppliers, financing sources, clients, customers and employees. Accordingly, Executive agrees to the following provisions of this Section 6 (in addition to Executive’s confidentiality obligations to the Company and its subsidiaries pursuant to the Company’s policies as in effect from time to time).

 

a)            Noncompetition.

 

(i)            Executive agrees that during the period of his employment with the Company, Executive shall not:  (A) directly or indirectly, engage in, manage, operate, control, supervise, or participate in the management, operation, control or supervision of any business or entity which competes with (any such action individually and in the aggregate, to compete with) the Company or any of its subsidiaries (collectively, the “Company Group”) or serve as an employee, consultant or in any other capacity for such business or entity; (B) have any ownership or financial interest, directly, or indirectly, in any competitor including, without limitation, as an individual, partner, shareholder (other than as a shareholder of a publicly-owned corporation in which the Executive owns less than five percent (5%) of the outstanding shares of such corporation), officer, director, employee, principal, agent or consultant, or (C) serve as a representative of any business organization; any or all of which, without first obtaining written approval of the chief executive officer of the Company.  Executive also agrees that as long as he is employed by the Company, he will not undertake the planning or organization of any business activity competitive with the Company Group.

 

b)            Solicitation of Employees, Etc.  Executive agrees that during the period of his employment with the Company and for twelve (12) months thereafter, Executive shall not, directly or indirectly, other than in connection with carrying out his duties during the period of his employment with the Company, solicit or induce any of the employees or consultants of the Company Group (or individuals who served as employees or consultants of the Company Group at any time during the preceding nine (9) month period):  (i) to terminate their employment or relationship with the Company Group, and/or (ii) to work for the Executive or any competitor of the Company Group.

 

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c)             Solicitation of Clients, Etc.  Executive agrees that during the period of his employment with the Company and for twelve (12) months thereafter, he will not use Confidential Information (as defined below) to, directly or indirectly, solicit, take away, divert or attempt to divert, the business or patronage of any clients or customers of the Company for the purpose of providing services that materially compete with the products provided by the Company at the time of Executive’s termination.  For purposes of this Agreement, “products provided by the Company” includes not only products and services which the Company then provides and/or markets or sells, but also those which it is in the process of researching and/or developing, at the time of Executive’s termination, and/or as to which, at the time of Executive’s termination, the Company has a strategic business plan in place to research, develop and/or market at some time in the future.  The restrictions on soliciting or providing services to customers of the Company apply to:  (i) any customer or customer contact of the Company with whom Executive has had any business relations during his employment (whether before or after the Effective Date) with the Company; and (ii) any customer or customer contact who was a customer or customer contact of the Company on the date of Executive’s termination from the Company or during the twelve-month period prior to such termination, or who was a prospective customer or customer contact of the Company with whom the Company had actually met with, or had written or telephonic communications with, during said period(s).

 

d)            Disparaging Comments.  Executive agrees not to make critical, negative or disparaging remarks about the Company or any of its Affiliates, including, but not limited to, comments about any of its assets, services, management, business or employment practices, and not to voluntarily aid or voluntarily assist any person in any way with respect to any third party claims pursued against the Company Group.  Nothing in this Section 6(d) will prevent Executive or the Company from responding fully and accurately to any question, inquiry or request for information when required by applicable law or legal process.

 

e)             Confidentiality.  The Company and the Executive acknowledge that:

 

(i)            The Company’s business is highly competitive;

 

(ii)           The essence of that portion of the Company’s business in which the Executive will be involved consists, in large degree, of trade secrets, proprietary or confidential business or financial affairs information, materials, know-how (whether or not in writing), technology, product information, personnel information regarding its employees, and intellectual property belonging to the Company and confidential and proprietary business and client relationships (all of the foregoing will be referred to collectively as “Trade Secrets”), which have been developed at great investment of time and resources by the Company Group so as to engender substantial good will of the Company, all of which are and will be the exclusive property of the Company, protected and kept secret by the Company; and

 

8

 

(iii)          Without limiting Executive’s obligations under the foregoing, the Executive agrees that during the period of his employment with the Company and at all times thereafter, Executive shall keep secret and retain in strictest confidence and shall not use for his benefit or the benefit of others, except in connection with the business and affairs of the Company, all confidential information of and confidential matters (whether available in written, electronic form or orally) relating to (A) the Company Group’s pricing and business (including, without limitation, the strategies employed by and the actual investments of any member of the Company Group and the contemplated business strategies and/or investments of any member of the Company Group), (B) all corporations or other business organizations in which the Company Group has or has had an investment and (C) third parties learned by Executive heretofore or hereafter directly or indirectly in connection with Executive’s employment with the Company or from the Company Group (the “Confidential Information”).  In consideration of, and as a condition to, continued access to Confidential Information and without prejudice to or limitation on any other confidentiality obligation imposed by agreement or law, Executive hereby agrees to undertake to use and protect Confidential Information in accordance with restriction placed on its use or disclosure.  Without limiting the foregoing, Executive shall not disclose such Confidential Information to any director, officer, partner, employee or agent of the Company Group unless in Executive’s reasonable good faith judgment, such person has a need to know such Confidential Information in furtherance of the Company Group’s business, and (except in connection with the business and affairs of the Company) Executive shall not disclose Confidential Information to anyone outside of the Company Group except with the Company’s express written consent.

 

(iv)          Executive acknowledges that the Company’s rights in its Trade Secrets and Confidential Information would be misappropriated should the Executive use or disclose to others the Trade Secrets and/or Confidential Information outside the scope of his employment pursuant to this Agreement.

 

(v)           Executive agrees that during the period of his employment with the Company, Executive shall not directly or indirectly, use, disseminate, or disclose, in whole or in part, any of the Company Group’s Trade Secrets to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever, other than (A) in the regular and proper scope and course of Executive’s employment with Company, or (B) as required by law, provided, however, that Executive will give Company reasonable advance notice of any such disclosure or use that is required by law.

 

(vi)          As used in this Agreement, each of the terms “Trade Secrets” and “Confidential Information” will not include any information that becomes generally known to the public or within the relevant trade or industry unless it becomes known due to Executive’s violation of this Agreement.

 

f)             Cooperation.  Executive agrees that at all times following the termination of his employment, Executive will cooperate in all reasonable respects with the Company and its Affiliates in connection with (i) any and all existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought by or against the Company or any of its Affiliates, or (ii) any audit of the financial statements of the Company or any Affiliate with respect to the period of time when Executive was employed by the Company or any Affiliate, in each case to the extent the Company reasonably deems Executive’s cooperation necessary.  Executive shall be reimbursed for all reasonable out-of-pocket expenses incurred by Executive as a result of such cooperation.  With respect to any and all existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought against Executive in connection with his employment by the Company, the Company will honor, and proceed in accordance with, its bylaws as in effect from time to time.

 

9

 

g)             No Limitation.  Nothing contained in this Section 6 shall limit any common law or statutory obligation that Executive may have to the Company or any of its Affiliates.  For purposes of all provisions of this Section 6, the “Company” refers to the Company and any incorporated or unincorporated Affiliates of the Company, including any entity which becomes Executive’s employer as a result of any reorganization or restructuring of the Company for any reason.

 

h)            Acknowledgement.  Executive agrees and acknowledges that each restrictive covenant in this Section 6 is reasonable as to duration, terms and geographical area and that the same protects the legitimate interests of the Company and its Affiliates, imposes no undue hardship on Executive, is not injurious to the public, and that, notwithstanding any provision in this Agreement to the contrary, any violation of this restrictive covenant shall be specifically enforceable in any court of competent jurisdiction.  Executive agrees and acknowledges that a portion of the compensation paid to Executive under this Agreement will be paid in consideration of the covenants contained in this Section 6, the sufficiency of which consideration is hereby acknowledged.  If any provision of this Section 6 as applied to Executive or to any circumstance is adjudged by a court with jurisdiction upon short notice to be invalid or unenforceable, the same shall in no way affect any other circumstance or the validity or enforceability of any other provisions of this Section 6.  If the scope of any such provision, or any part thereof, is too broad to permit enforcement of such provision to its full extent, Executive agrees that the court making such determination shall have the power to reduce the duration and/or area of such provision, and/or to delete specific words or phrases, and in its reduced form, such provision shall then be enforceable and shall be enforced.  Executive agrees and acknowledges that the breach of this Section 6 will cause irreparable injury to the Company and upon breach of any provision of this Section 6, the Company shall be entitled to seek injunctive relief, specific performance or other equitable relief by any court with jurisdiction upon short notice; provided, however, that this shall in no way limit any other remedies which the Company may have (including, without limitation, the right to seek monetary damages).  Each of the covenants in this Section 6 shall be construed as an agreement independent of any other provisions in this Agreement.

 

i)              Permitted Statements.  Nothing in this Agreement shall restrict either party from making truthful statements (i) when required by law, subpoena, court order or the like; (ii) when requested by a governmental, regulatory, or similar body or entity; or (iii) in confidence to a professional advisor for the purpose of securing professional advice.

 

7.             ASSIGNMENT.  This Agreement, and all of the terms and conditions hereof, shall bind the Company and its successors and assigns and shall bind Executive and Executive’s heirs, executors and administrators.  Neither this Agreement, nor any of the Company’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by Executive, and any such attempted assignment or hypothecation shall be null and void.  The Company may assign the rights and obligations of the Company hereunder, in whole or in part, to any of the Company’s Affiliates or parent corporations, or to any other successor or assign in connection with the sale of all or substantially all of the Company’s assets or stock or in connection with any merger, acquisition and/or reorganization, provided the assignee assumes the obligations of the Company hereunder.

 

10

 

8.             GENERAL.

 

a)            Notices.  Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of one (1) business day following personal delivery (including personal delivery by telecopy or telex), or the third (3rd) business day after mailing by first class mail to the recipient at the address indicated below:

 

To the Company:

 

Chief Executive Officer

HCP, Inc.

3760 Kilroy Airport Way, Suite 300

Long Beach, CA 90806

 

To Executive:

 

At the address shown in the Company’s personnel records

 

or to such other address or to the attention of such other person as the recipient party will have specified by prior written notice to the sending party.

 

b)            Severability.  Any provision of this Agreement which is deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable by a court of competent jurisdiction because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.

 

c)             Entire Agreement.  This document, together with the CIC Plan and the other documents referred to herein and all restrictive covenants in any and all agreements between Executive and the Company or to which Executive is a party (the “Integrated Document”), constitutes the final, complete, and exclusive embodiment of the entire agreement and understanding between the parties related to the subject matter hereof and except as otherwise explicitly set forth in the Integrated Document, supersedes and preempts any prior or contemporaneous understandings, agreements, or representations by or between the parties, written or oral.  Without limiting the generality of the foregoing, the Integrated Document supersedes in its entirety Executive’s previous Employment Agreement, dated May 31, 2011, with the Company.

 

d)            Counterparts.  This Agreement may be executed on separate counterparts, any one (1) of which need not contain signatures of more than one (1) party, but all of which taken together will constitute one and the same agreement.  Signatures delivered by facsimile or “pdf” shall be effective for all purposes.

 

11

 

e)             Amendments.  No amendments or other modifications to this Agreement may be made except by a writing signed by all parties.  No amendment or waiver of this Agreement requires the consent of any individual, partnership, corporation or other entity not a party to this Agreement.  Nothing in this Agreement, express or implied, is intended to confer upon any third person any rights or remedies under or by reason of this Agreement.

 

f)             Choice of Law.  All questions concerning the construction, validity and interpretation of this Agreement shall be governed by the laws of the State of California without giving effect to principles of conflicts of law of such state.

 

g)             Survivorship.  The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein shall survive the termination or expiration of this Agreement.

 

h)            Waiver.  The waiver by either party of the other party’s prompt and complete performance, or breach or violation, of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation, and the failure by any party hereto to exercise any right or remedy which it may possess hereunder shall not operate nor be construed as a bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent breach or violation.  No waiver shall be deemed to have occurred unless set forth in a writing executed by or on behalf of the waiving party.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

 

i)              Headings.  The subject heading of this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof.

 

j)             Construction.  The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each afforded representation by legal counsel.  Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement.

 

9.             ARBITRATION.

 

a)            If any legally actionable dispute arises which cannot be resolved by mutual discussion between the parties, each of Executive and the Company agree to resolve that dispute by arbitration before an arbitrator experienced in employment law.  Said arbitration will be conducted pursuant to the JAMS Employment Arbitration Rules and Procedures and applicable California law.  The parties agree that this arbitration agreement includes any such disputes that the Company and its related entities may have against Executive, or Executive may have against the Company and/or its related entities and/or employees, arising out of or relating to Executive’s employment or its termination including any claims of discrimination or harassment in violation of applicable law and any other aspect of Executive’s compensation, training, employment, or its termination.

 

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b)            The parties further agree that this arbitration provision is the exclusive and binding remedy for any such dispute and will be used instead of any court action, which is hereby expressly waived, except for any request by either party for temporary or preliminary injunctive relief pending arbitration in accordance with applicable law or an administrative claim with an administrative agency.  THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JUDGE OR JURY.

 

c)             The parties agree that the arbitration shall be conducted in Los Angeles County, California, unless otherwise mutually agreed.

 

d)            The provisions of Section 1281.8 of the California Code of Civil Procedure with respect to provisional remedies will apply to any such arbitration.  In any such arbitration proceeding, any hearing must be transcribed by a certified court reporter and the arbitrator’s decision must be set forth in writing, consistent with the law of California and supported by essential findings of fact and conclusion of law.  The arbitrator may issue any remedy or award available under applicable law but may not add to, modify, change or disregard any lawful terms of this Agreement or issue an award or remedy that is contrary to the law of California.  The parties further agree that each party shall pay its own costs and attorneys’ fees, if any; provided, however, the Company shall pay any costs and expenses that Employee would not otherwise have incurred if the dispute had been adjudicated in a court of law, rather than through arbitration, including the arbitrator’s fee, any administrative fee, and any filing fee in excess of the maximum court filing fee in the jurisdiction in which the arbitration is commenced.  If either party prevails on a statutory claim that affords the prevailing party an award of attorneys’ fees, then the arbitrator may award reasonable attorneys’ fees to the prevailing party, consistent with applicable law.

 

10.          REPRESENTATIONS.  Each party represents and warrants that (a) such party is not subject to any contract, arrangement, agreement, policy or understanding, or to any statute, governmental rule or regulation, that in any way limits such party’s ability to enter into and fully perform such party’s obligations under this Agreement; (b) such party is not otherwise unable to enter into and fully perform such party’s obligations under this Agreement; and (c) upon the execution and delivery of this Agreement by both parties, this Agreement shall be such party’s valid and binding obligation, enforceable against such party in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

 

11.          INCONSISTENCIES.  In the event of any inconsistency between any provision of this Agreement and any provision of any other Company arrangement, the provisions of this Agreement shall control to the extent more favorable to Executive unless Executive otherwise agrees in a writing that expressly refers to the provision of this Agreement whose control he is waiving.

 

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12.          BENEFICIARIES/REFERENCES.  Executive shall be entitled, to the extent permitted under applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit hereunder following Executive’s death by giving written notice thereof.  In the event of Executive’s death or a judicial determination of his incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative.

 

[Remainder of page is left blank intentionally]

 

14

 

IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year and date first above written.

 

THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION WHEREBY EACH PARTY AGREED TO SUBMIT DISPUTES TO BINDING ARBITRATION.

 

	
 
    	
HCP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   James F. Flaherty III
    
	
 
    	
By:
    	
James F. Flaherty III
    
	
 
    	
 
    	
Chairman and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   James W. Mercer
    
	
 
    	
James W. Mercer
    

 

15

 

Exhibit A

 

FORM OF RELEASE AGREEMENT1

 

This Release Agreement (this “Release Agreement”) is entered into this        day of                    20    , by and between James W. Mercer, an individual (“Executive”), and HCP, Inc., a Maryland corporation (the “Company”).

 

WHEREAS, Executive has been employed by the Company; and

 

WHEREAS, Executive’s employment by the Company has terminated and, in connection with the Employment Agreement between the Company and Executive dated   January 26, 2012 (the “Employment Agreement”), the Company and Executive desire to enter into this Release Agreement upon the terms set forth herein;

 

NOW, THEREFORE, in consideration of the covenants undertaken and the releases contained in this Release Agreement, and in consideration of the obligations of the Company (or one of its subsidiaries) to pay severance benefits (conditioned upon this Release Agreement) under and pursuant to the Employment Agreement, Executive and the Company agree as follows:

 

1.             Release.  Executive, on behalf of himself or herself, his or her descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby acknowledges full and complete satisfaction of and covenants not to sue and fully releases and discharges the Company and each of its parents, subsidiaries and affiliates, past and present, as well as its and their trustees, directors, officers, members, managers, partners, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter together and collectively referred to as the “Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements or contracts (written or oral), covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden (each, a “Claim”), which he or she now owns or holds or he or she has at any time heretofore owned or held or may in the future hold as against any of said Releasees (including, without limitation, any Claim arising out of or in any way connected with Executive’s service as an officer, director, employee, member or manager of any Releasee, Executive’s separation from his or her position as an officer, director, employee, manager and/or member, as applicable, of any Releasee, or any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever), whether known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed or omitted prior to the date of this Release Agreement including, without limiting the generality of the foregoing, any Claim under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the California Fair Employment and Housing Act, the California Family Rights Act, or any other federal, state or local law, regulation, or ordinance, or any Claim

 

1   The Company may modify this form as to any individual employed outside of California.

 

A-1

 

for severance pay, bonus, sick leave, holiday pay, vacation pay, life insurance, health or medical insurance or any other fringe benefit, workers’ compensation or disability; provided however, that the foregoing release shall not apply to any obligation of the Company to Executive pursuant to any of the forgoing:  (1) any obligation created by or arising out of the Section 5 of the Employment Agreement for which receipt or satisfaction has not been acknowledged, (2) any equity-based awards previously granted by the Company to Executive, to the extent that such awards continue after the termination of Executive’s employment with the Company in accordance with the applicable terms of such awards; (3) any right to indemnification that Executive may have pursuant to the Fourth Amended and Restated Bylaws of the Company, its corporate charter or under any written indemnification agreement with the Company (or any corresponding provision of any subsidiary or affiliate of the Company) with respect to any loss, damages or expenses (including but not limited to attorneys’ fees to the extent otherwise provided) that Executive may in the future incur with respect to his service as an employee, officer or director of the Company or any of its subsidiaries or affiliates; (4) with respect to any rights that Executive may have to insurance coverage for such losses, damages or expenses under any Company (or subsidiary or affiliate) directors and officers liability insurance policy; (5) any rights to continued medical or dental coverage that Executive may have under COBRA; (6) any rights to payment of benefits that Executive may have under a retirement plan sponsored or maintained by the Company that is intended to qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended, or (7) any deferred compensation or supplemental retirement benefits that Executive may be entitled to under a nonqualified deferred compensation or supplemental retirement plan of the Company.  In addition, this release does not cover any Claim that cannot be so released as a matter of applicable law.  Executive acknowledges and agrees that he or she has received any and all leave and other benefits that he or she has been and is entitled to pursuant to the Family and Medical Leave Act of 1993.

 

2.             Acknowledgment of Payment of Wages.  Except for accrued vacation (which the parties agree totals approximately [        ] days of pay) and salary for the current pay period, Executive acknowledges that he/she has received all amounts owed for his or her regular and usual salary (including, but not limited to, any bonus, severance, or other wages), and usual benefits through the date of this Agreement.

 

3.             1542 Waiver.  It is the intention of Executive in executing this Release Agreement that the same shall be effective as a bar to each and every Claim hereinabove specified.  In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon him or her by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE and expressly consents that this Release Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those related to unknown and unsuspected Claims, if any, as well as those relating to any other Claims hereinabove specified. SECTION 1542 provides:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

A-2

 

Executive acknowledges that he may hereafter discover Claims or facts in addition to or different from those which Executive now knows or believes to exist with respect to the subject matter of this Release Agreement and which, if known or suspected at the time of executing this Release Agreement, may have materially affected this settlement.  Nevertheless, Executive hereby waives any right, Claim or cause of action that might arise as a result of such different or additional Claims or facts.  Executive acknowledges that he or she understands the significance and consequences of such release and such specific waiver of SECTION 1542.

 

4.             ADEA Waiver.  Executive expressly acknowledges and agrees that by entering into this Release Agreement, Executive is waiving any and all rights or Claims that he or she may have arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), which have arisen on or before the date of execution of this Release Agreement.  Executive further expressly acknowledges and agrees that:

 

A.            In return for this Release Agreement, the Executive will receive consideration beyond that which the Executive was already entitled to receive before entering into this Release Agreement;

 

B.            Executive is hereby advised in writing by this Release Agreement to consult with an attorney before signing this Release Agreement;

 

C.            Executive has voluntarily chosen to enter into this Release Agreement and has not been forced or pressured in any way to sign it;

 

D.            Executive was given a copy of this Release Agreement on [                                  , 20    ] and informed that he or she had [twenty one (21)/forty five (45)] days within which to consider this Release Agreement and that if he or she wished to execute this Release Agreement prior to expiration of such [21-day/45-day] period, he or she should execute the Endorsement attached hereto;

 

E.            Executive was informed that he or she had seven (7) days following the date of execution of this Release Agreement in which to revoke this Release Agreement, and this Release Agreement will become null and void if Executive elects revocation during that time.  Any revocation must be in writing and must be received by the Company during the seven-day revocation period.  In the event that Executive exercises his or her right of revocation, neither the Company nor Executive will have any obligations under this Release Agreement;

 

F.             Nothing in this Release Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law.2

 

2  Whether the Executive has 21 days, 45 days, or some other period in which to consider the Release Agreement will be determined with reference to the requirements of the ADEA in order for such waiver to be valid in the circumstances.  The determination referred to in the preceding sentence shall be made by the Company in its sole discretion.  In any event, the Release Agreement will include the Executive’s acknowledgements and agreements set forth in clauses 4.A, 4.B, and 4.C.

 

A-3

 

5.             No Transferred Claims.  Executive warrants and represents that the Executive has not heretofore assigned or transferred to any person not a party to this Release Agreement any released matter or any part or portion thereof and he or she shall defend, indemnify and hold the Company and each of its affiliates harmless from and against any claim (including the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or claimed.

 

6.             Compliance With Employment Agreement.  Executive warrants and represents that Executive has complied fully with his or her obligations pursuant to the Employment Agreement.  Executive covenants that he or she will continue to abide by the applicable provisions of such Employment Agreement.

 

7.             Severability.  It is the desire and intent of the parties hereto that the provisions of this Release Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, if any particular provision of this Release Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable under any present or future law, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Release Agreement or affecting the validity or enforceability of such provision in any other jurisdiction; furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Release Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Release Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

8.             Counterparts.  This Release Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

9.             Governing Law.  THIS RELEASE AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH UNITED STATES FEDERAL LAW AND, TO THE EXTENT NOT PREEMPTED BY UNITED STATES FEDERAL LAW, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF CALIFORNIA OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN UNITED STATES FEDERAL LAW AND THE LAW OF THE STATE OF CALIFORNIA TO BE APPLIED.  IN FURTHERANCE OF THE FOREGOING, APPLICABLE FEDERAL LAW AND, TO THE EXTENT NOT PREEMPTED BY APPLICABLE FEDERAL LAW, THE INTERNAL LAW OF THE STATE OF CALIFORNIA, WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS RELEASE AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

 

A-4

 

10.          Amendment and Waiver.  The provisions of this Release Agreement may be amended and waived only with the prior written consent of the Company and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Release Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Release Agreement or any provision hereof.

 

11.          Descriptive Headings.  The descriptive headings of this Release Agreement are inserted for convenience only and do not constitute a part of this Release Agreement.

 

12.          Construction.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.  The language used in this Release Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

13.          Arbitration.  Any claim or controversy arising out of or relating to this Agreement shall be submitted to arbitration in accordance with the arbitration provision set forth in the Employment Agreement.

 

14.          Nouns and Pronouns.  Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice-versa.

 

15.          Legal Counsel.  Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice.  Executive acknowledges and agrees that he has read and understands this Release Agreement completely, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Release Agreement and he has had ample opportunity to do so.

 

A-5

 

The undersigned have read and understand the consequences of this Release Agreement and voluntarily sign it.  The undersigned declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

 

EXECUTED this                  day of                  20    , at                       , California.

 

	
 
    	
“Executive”
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
James   W. Mercer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HCP, INC.,
    
	
 
    	
a   Maryland corporation,
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

A-6

 

ENDORSEMENT

 

I, James W. Mercer, hereby acknowledge that I was given [21/45] days to consider the foregoing Release Agreement and voluntarily chose to sign the Release Agreement prior to the expiration of the [21-day/45-day] period.

 

I declare under penalty of perjury under the laws of the United States and the State of California that the foregoing is true and correct.

 

EXECUTED this  [        ] day of [                           20        ], at                           , California.

 

 

	
 
    	
 
    
	
 
    	
James   W. Mercer
    

 

A-7

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