Document:

by-ex101_184.htm

EXHIBIT 10.1

Byline Bancorp, INC.
2017 OMNIBUS INCENTIVE COMPENSATION PLAN

RESTRICTED SHARE AWARD AGREEMENT
(PERFORMANCE-BASED VESTING)

This Restricted Share Award Agreement (this “Award Agreement”) evidences a performance-based award of restricted shares (the “Restricted Shares” or “Shares”) by Byline Bancorp, Inc., a Delaware corporation (“Byline”), under the Byline Bancorp, Inc. 2017 Omnibus Incentive Compensation Plan (as amended, supplemented or modified, from time to time, the “Plan”).  Capitalized terms used but not defined in this Award Agreement have the meanings given to them in the Plan.

	
Name of Grantee:
	
_______________ (the “Grantee”).

	
Grant Date:
	
_______________ (the “Grant Date”).

	
Number of Restricted Shares:
	
_______________. 1 

	
Target Number of Restricted Shares: 
	
_______________ (the “Target Number of Shares”).  

	
	 

	
1
	
 To reflect the maximum number of Shares that can be earned under the Award.

 

SC1:4498221.2

 

 

	
Earning Restricted Shares: 
	
The actual number of Shares, if any, which are earned under this Award (the “Earned Shares”) shall be determined by the Committee based upon the achievement of the Performance Goals during the Performance Period described below. 

The “Performance Goals” and “Performance Period” established by the Committee in connection with this Award are: 

•The Performance Period under this agreement will start on January 1, 2018, and will end on December 31, 2020,

•The number of shares which may be earned under the award is dependent upon Byline’s return on average assets over the three-year period ending December 31, 2020, measured in 2018 against Byline’s internal target and for 2019 and 2020 against a peer group consisting of publicly-traded bank holding companies ranging in asset size from 50% to 200% of Byline’s total assets.  

•Under the award, 25% of the shares will be earned at threshold performance, 100% will be earned at target and 50th percentile performance, and up to 125% of the shares 

with above target and 75th percentile performance.  Any earned shares will vest on the third anniversary of the grant date. 

 

 

	
Vesting Date:
	
The Earned Shares, if any, will vest in full upon the completion of the third Performance Period.

Earned Shares will only vest if the Grantee is, and has been, continuously employed by Byline from the Grant Date through the applicable Vesting Date, and any unvested Shares will be forfeited upon any termination of Employment.  

Notwithstanding the foregoing: 

 

A.  On a termination of Employment due to death, disability or retirement  prior to completion of the three-year Performance Period, any outstanding unvested Shares will be prorated at the end of the performance period, as of the date of such termination and 

B. Upon a Change in Control, any outstanding, unvested Restricted Shares will be treated in accordance with the Plan.

 

C.  All other terminations, unvested shares will be forfeited.

	
Non-Transferability of the Restricted Shares:
	
Prior to vesting, the Restricted Shares may not be sold, exchanged, transferred, assigned, pledged, hypothecated, fractionalized, hedged or otherwise disposed of (including through the use of any cash-settled instrument) in any manner other than by will or by the laws of descent and distribution, and any attempt to sell, exchange, transfer, assign, pledge, hypothecate, fractionalize, hedge or otherwise dispose of the Shares delivered in respect of the Restricted Shares in violation of this Award Agreement shall be void and of no effect and Byline shall have the right to disregard the same on its books and records and advise the registrar and transfer agent of the Shares to place a stop order against the transfer of such Shares. 

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SC1:4498221.2

 

	
Privileges of Share Ownership:
	
Subject to the Non-Transferability of the Restricted Shares, effective upon the Grant Date, the Grantee will have all rights of a shareholder of Byline with respect to the Restricted Shares, including voting rights and the right to receive all dividends at the times and in the manner 

paid to shareholders generally.  Notwithstanding the foregoing, all ordinary cash dividends or other ordinary distributions paid upon any Restricted Share will be retained by the Company and will be paid to the Grantee (without interest) when the Restricted Shares vest and will revert back to Byline if the Restricted Share upon which such dividends or other distributions were paid reverts back to Byline.  

	
Issuance and Delivery:
	
Unless otherwise determined by the Committee, delivery of the Restricted Shares will be by book-entry credit to an account maintained by the registrar and transfer agent of the Shares with the applicable restrictions on transferability imposed on such Restricted Shares by this Award Agreement. Upon the vesting of the Restricted Shares in accordance with this Award Agreement, Byline will instruct the transfer agent to electronically transfer the Grantee’s Shares to a brokerage or other account on the Grantee’s behalf (or make such other arrangements for the delivery of the Shares as Byline reasonably determines).

	
Section 83(b) Election:
	
The Grantee hereby acknowledges that the Grantee has been informed that, with respect to the grant of the Restricted Shares, if the Grantee is filing a U.S. federal income tax return for the year in which the grant of Restricted Shares occurs, the Grantee may file an election (the “Election”) with the U.S. Internal Revenue Service, within 30 days of the Grant Date, electing pursuant to Section 83(b) of the Code to be taxed currently on the Fair Market Value of the Restricted Shares on the Grant Date.  This will result in recognition of taxable income to the Grantee on the Grant Date, equal to the Fair Market Value of the Restricted Shares on such date.  Absent an Election, taxable income will be measured and recognized by the Grantee at the time the Restricted Shares vest. The Grantee is hereby encouraged to seek the advice of the Grantee’s own tax consultants in connection with the Restricted Shares and the advisability of filing the Election. THE GRANTEE UNDERSTANDS THAT ANY TAXES PAID AS A RESULT OF THE FILING OF THE ELECTION MIGHT NOT BE RECOVERED IF THE RESTRICTED SHARES ARE FORFEITED TO BYLINE. THE GRANTEE ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY FILE THE ELECTION, EVEN IF THE GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON THE GRANTEE’S BEHALF. THE GRANTEE MUST NOTIFY THE COMPANY WITHIN 10 BUSINESS DAYS OF FILING ANY ELECTION.  For purposes of this Award Agreement, “business day” means any day on which the New York Stock Exchange is open for regular session trading.

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SC1:4498221.2

 

	
Agreement to Protect Company Interests:
	
As a condition of  the grant of this Award and any payments made hereunder, prior to the Grant Date or within 30 days thereafter, the Grantee shall have entered into an Agreement to Protect Company Interests (or similar agreement) with Byline containing confidentiality, non-solicitation and other covenants as may be prescribed by the Committee.

	
All Other Terms:
	
As set forth in the Plan.

 

The Plan is incorporated herein by reference.  Except as otherwise set forth in the Award Agreement, the Award Agreement and the Plan constitute the entire agreement and understanding of the parties with respect to the Restricted Shares.  Except as expressly provided herein, in the event that any provision of the Award Agreement is inconsistent with the Plan, the terms of the Plan will control.  Except as expressly provided herein, in the event that any provision of this Award Agreement is inconsistent with any employment agreement between the Grantee and Byline (“Employment Agreement”), the terms of the Employment Agreement will control.  By accepting this Award, the Grantee agrees to be subject to the terms and conditions of the Plan.

This Award Agreement may be executed in counterparts, which together will constitute one and the same original.

 

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SC1:4498221.2

 

IN WITNESS WHEREOF, the parties have caused this Award Agreement to be duly executed and effective as of the Grant Date.

BYLINE BANCORP, INC.

By:
Name:
Title:

[NAME OF GRANTEE]

 

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SC1:4498221.2Exhibit

Exhibit 10.11
SECOND AMENDMENT TO TERM LOAN CREDIT AGREEMENT
This Second Amendment to Term Loan Credit Agreement (this “Amendment”) is made as of June 20, 2018 by and among INDUSTRIAL PROPERTY OPERATING PARTNERSHIP LP, a Delaware limited partnership (the “Borrower”), the several banks, financial institutions and other entities referred to in the signature pages to this Agreement (collectively, the “Lenders”), and REGIONS BANK, not individually, but as administrative agent for the Lenders (the “Administrative Agent”).
RECITALS
A.The Borrower, the Administrative Agent, and the Lenders are parties to a Term Loan Credit Agreement dated as of May 5, 2016 (as amended and modified from time to time, the “Credit Agreement”).  All capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement.
B.    Borrower has requested certain modifications to the Credit Agreement and the Lenders have agreed to do so as provided herein.
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
AMENDMENTS
1.    The foregoing recitals to this Amendment are incorporated into and made part of this Amendment.
2.    The following definition is hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:
“Second Amendment Effective Date” shall mean June 20, 2018.
3.    The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended and modified to read as follows:
“Applicable Rate” means the following basis points per annum, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.01(c):

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	LEVERAGE RATIO
	TERM EURODOLLAR APPLICABLE MARGIN
	TERM ABR APPLICABLE MARGIN

	Category 1
≤45%
	130.0
	30.0

	Category 2
>45% and ≤50%
	140.0
	40.0

	Category 3
>50% and ≤55%
	155.0
	55.0

	Category 4
>55% and ≤60%
	185.0
	85.0

	Category 5
>60%
	215.0
	115.0

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first Business Day immediately following the date the certificate is delivered pursuant to Section 5.01(c) (a “Compliance Certificate”); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Category 5 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered.  For avoidance of doubt, the Applicable Rate in effect from the Second Amendment Effective Date through the date of the next change in the Applicable Rate pursuant to the preceding sentence shall be determined based upon Category 3 as set forth above.
If either the Borrower or the Trust has received two Investment Grade Ratings from S&P, Moody’s and/or Fitch, the Borrower shall have a one-time option to make an election to the effect that the Applicable Rate shall be the rate set forth in the tables below corresponding to the level (each a “Level”) into which the Investment Grade Ratings then fall by sending written irrevocable notice to the Administrative Agent that either the Borrower or the Trust (as applicable, the “Rated Loan Party”) has received two (2) such investment grade ratings.   
RATINGS BASED PRICING GRID

	
			
	Debt Rating
	Term Facility
	Term Facility

	 
	Eurodollar Rate Applicable Margin
	Term ABR Applicable Margin

	≥A-/A3
	90.0
	0.0

	BBB+/Baa1
	95.0
	0.0

	BBB/Baa2
	110.0
	10.0

	BBB-/Baa3
	135.0
	35.0

	<BBB-/Baa3
	175.0
	75.0

2

For purposes of the above tables, if at any time after making the one time election described above, the Rated Loan Party has two (2) Debt Ratings, the Applicable Rate shall be the rate per annum applicable to the highest Debt Rating; provided that if the highest Debt Rating and the lowest Debt Rating are more than one ratings category apart, the Applicable Margin shall be the rate per annum applicable to the Debt Rating that is one ratings category below the highest Debt Rating.  If at any time the Rated Loan Party has three (3) Debt Ratings, and such Debt Ratings are split, then: (A) if the difference between the highest and the lowest such Debt Ratings is one ratings category (e.g. Baa2 by Moody’s and BBB- by S&P or Fitch), the Applicable Margin shall be the rate per annum that would be applicable if the highest of the Debt Ratings were used; and (B) if the difference between such Debt Ratings is two ratings categories (e.g. Baa1 by Moody’s and BBB- by S&P or Fitch) or more, the Applicable Margin shall be the rate per annum that would be applicable if the average of the two (2) highest Debt Ratings were used, provided that if such average is not a recognized rating category, then the Applicable Margin shall be the rate per annum that would be applicable if the second highest Debt Rating of the three were used.  If at any time the Rated Loan Party has only one Debt Rating (and such Debt Rating is from Moody’s or S & P) the Applicable Rate shall be the rate per annum applicable to such Debt Rating.  If the Rated Loan Party does not have a Debt Rating from either Moody’s or S&P, the Applicable Rate shall be the per annum rate determined by the pricing grid above based on Consolidated Leverage Ratio as of the time it no longer has two Debt Ratings.
4.    The Borrower hereby represents and warrants the following:
(a)    no Default exists under the Loan Documents;
(b)    the Loan Documents are in full force and effect and Borrower has no defenses or offsets to, or claims or counterclaims relating to, its obligations under the Loan Documents;
(c)    there has been no material adverse change in the financial condition of the Borrower as shown in its December 31, 2017 financial statements;
(d)    the Borrower has full power and authority to execute this Amendment and no consents are required for such execution other than any consents which have already been obtained; and
(e)    all representations and warranties contained in Article III of the Credit Agreement are true and correct in all material respects as of the date hereof, except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty is true and correct in all material respects on and as of such earlier date, and except that for purposes of this clause (e), the representations and warranties contained in subsections (a) and (b) of Section 3.04 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 5.01.
5.    The effectiveness of this Amendment shall be conditioned on the following:

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(a)    The representations and warranties in Section 4 being true and correct.
(b)    Receipt by the Administrative Agent, for the account of each Lender, of an amendment fee equal to 10 bps (0.10%) times the amount of such Lender’s Term Commitment under the Credit Agreement.
(c)    Payment of all other reasonable fees and expenses due to the Administrative Agent (including, but not limited to, the reasonable and documented fees, disbursements and other charges of Moore & Van Allen PLLC, as counsel to the Administrative Agent) and the lead arrangers incurred in connection with the transactions contemplated hereby to the extent invoiced prior to or on the date that is three (3) Business Days prior to the date hereof, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent).
6.    Except as specifically modified hereby, the Credit Agreement is and remains unmodified and in full force and effect and is hereby ratified and confirmed.  All references in the Loan Documents to the “Credit Agreement” henceforth shall be deemed to refer to the Credit Agreement as amended by this Amendment.
7.    This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart.  This Amendment shall be construed in accordance with the internal laws (and not the law of conflicts) of the State of New York, but giving effect to federal laws applicable to national banks.
8.    This Amendment shall become effective upon satisfaction of the conditions set forth in Section 5 hereof and when it has been executed by the Borrower, the Administrative Agent, and each of the Lenders.
[Remainder of Page Intentionally Left Blank.]

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.
INDUSTRIAL PROPERTY OPERATING PARTNERSHIP LP, a Delaware limited partnership

		
	By:
	Industrial Property Trust Inc., a Maryland corporation, its general partner

By:        /s/ Lainie P. Minnick
Name:    Lainie P. Minnick
		
	Title:
	Managing Director, Head of Debt Capital Markets

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REGIONS BANK, as Administrative Agent and as a Lender

      By:          /s/ Ghi S. Gavin
Name:    Ghi S. Gavin
Title:    Senior Vice President

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender

      By:         /s/Craig V. Koshkarian
Name:    Craig V. Koshkarian
Title:    Vice President

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U.S. BANK NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender

      By:         /s/ Benjamin Kuruvila
Name:    Benjamin Kuruvila
Title:    Vice President

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ZB, N.A. DBA VECTRA BANK COLORADO, as a Lender

      By:         /s/ H. Shaw Thomas
Name:    H. Shaw Thomas
Title:    Senior Vice President

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CONSENT OF GUARANTORS
The undersigned, on behalf of itself as the Guarantor under the Trust Guaranty, and on behalf of each of the Subsidiary Guarantors which are parties to the Subsidiary Guaranty, each delivered pursuant to the terms of the Credit Agreement described in the foregoing Amendment, hereby execute this Amendment for the purpose of consenting to the terms of the foregoing Amendment, and reaffirming the terms of the Trust Guaranty and Subsidiary Guaranty.
INDUSTRIAL PROPERTY TRUST INC., a Maryland corporation

By:         /s/ Lainie P. Minnick
Name:    Lainie P. Minnick
		
	Title:
	Managing Director, Head of Debt Capital Markets

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