Document:

Exhibit 10.1

 

Amended
and Restated Loan and Option Agreement

 

Date:
May 3, 2018

 

PARTIES

 

Court
Cavendish Ltd, a company incorporated in England and Wales under no. 04290684, having its registered address at The Care House,
Randalls Way, Leatherhead, Surrey, KT22 7TW (the “Lender”).

 

Long
Blockchain Corp., a Delaware corporation, having its principal executive offices at 12-1 Dubon Court, Farmingdale, New York
11735 (formerly known as Long Island Iced Tea Corp., the “Company”).

 

BACKGROUND

 

	A.	The
    Lender and the Company are party to that certain Loan and Option Agreement, dated as of December 21, 2017 (the “Existing
    Agreement”), pursuant to which the Lender made available to the Company a facility in which the Lender provides financing
    to support the working capital requirements of the Company while the Company moves into specific ventures relating to blockchain
    technology and while the Company completes the spin out of its existing operating beverage business into an independent new
    company (the “Spin Out”).
	 	 
	B.	Simultaneously
    with the execution of the Existing Agreement, and the Company having announced to the market its move to blockchain technology,
    the Lender made available to the Company a loan facility in the aggregate amount of USD 4,000,000, consisting of an initial
    USD 2,000,000 and two extensions of USD 1,000,000 each (each, an “Extension”). The Lender advanced USD 2,000,000
    to the Company in three drawdowns in the amount of USD 750,000 on December 21, 2017, USD 750,000 on January 15, 2018 and USD
    500,000 on January 30, 2018 (each an “Existing Loan,” and together, the “Existing Loans”).
	 	 
	C.	On
    December 26, 2017, the Lender converted the first of the Existing Loans, in the amount of USD 750,000, and all accrued interest
    thereon, into shares of the Company’s common stock at a price of USD 3.00 per share, or an aggregate of 250,233 shares
    of the Company’s common stock.
	 	 
	D.	The
    parties have agreed to amend and restate the terms of the Existing Agreement as set forth herein (the “Restated Agreement”).

 

IT
IS AGREED

 

	1.	On
    the date hereof, the Lender will make available to the Company a first Extension of USD 1,500,000 on the terms hereof. As
    long as (a) the warranties and representations referred to in Section 17 below are true and correct and (b) the Company continues
    moving toward specific ventures related to blockchain technology, the Company may request a second Extension of USD 500,000
    on the terms hereof.

 

    	 

    	 

    

 

	2.	The
    Company may request drawdowns from time to time, with the drawdown amount and the timing of the funding of the drawdown to
    be agreed between parties each time a request is made. Each drawdown shall be subject to there being, in the Lender’s
    reasonable opinion, no material adverse change in the financial condition or operations of the Company. Notwithstanding the
    foregoing, the Lender agrees to provide a drawdown of USD 1,000,000 of the first Extension within two (2) business days after
    the execution of this Restated Agreement. All drawdowns under this Section 2, together with the Existing Loans, are referred
    to as the “Loans.” Subject to the conversion provisions set forth herein, the Loans and any accrued interest thereon
    will be due and payable on December 21, 2018 (the “Maturity Date”).
	 	 
	3.	A
    facility fee of seven percent (7%) of the Extension amount shall be due on the date of the first drawdown from each Extension
    and, at the Company’s election, shall be payable either in cash or in shares of the Company’s common stock valued
    at USD 0.40.
	 	 
	4.	The
    Company will use its reasonable best efforts to make the changes to the Board of Directors set forth in Schedule 4 to this
    Restated Agreement.
	 	 
	5.	The
    Company will maintain a committee of its Board of Directors, consisting of three (3) directors and including the two (2) directors
    appointed by the Lender pursuant to the Existing Agreement. Such committee must unanimously authorize any expense related
    to the Company’s existing operating beverage business that exceeds USD 100,000.
	 	 
	6.	The
    Company agrees to issue to the Lender (a) upon the drawdown under the first Extension, a four year warrant to purchase 1,200,000
    shares of the Company’s common stock and (b) upon each drawdown under the second Extension, a four-year warrant to purchase
    a number of shares of the Company’s common stock equal to the amount of the drawdown, divided by USD 0.40, multiplied
    by 32%. Such warrant will be issued within five (5) business days of the funding of the applicable drawdown. The warrants
    shall have an exercise price of USD 0.50 per share and shall contain a cashless exercise feature.
	 	 
	7.	Interest
    shall accrue monthly, at a rate of 12.5% per annum, on the unpaid principal balance of the Loans commencing on the date of
    the drawdown thereof and shall be due and payable, without demand or notice, at the Company’s election quarterly in
    cash or in shares of the Company valued at USD 0.40.
	 	 
	8.	The
    Company hereby grants the Lender a security interest in all of the Company’s assets (the “Collateral”),
    subject to security granted to Radium for its USD 1,000,000 facility on the date hereof. Reference herein to the Collateral
    shall in no way impair the absolute and unconditional obligation of the Company to pay both principal and interest, if any,
    as provided herein.
	 	 
	9.	The
    Lender may, with or without advance notice to the Company or any guarantor or other party liable therefor, extend or renew
    the Loans, or extend the time for making payment of any amount provided for herein, or accept any amount in advance, all without
    affecting the liability of the Company or any other party or guarantor liable therefor.

 

    	 

    	 

    

 

	10.	The
    Company may repay the Loan in whole or in part at any time without penalty or premium, but with payment of accrued interest
    through the date of such repayment. Amounts repaid shall not be available for drawdown again.
	 	 
	11.	At
    the Maturity Date, at the Lender’s election, the Company shall repay the outstanding amount of the Loans together with
    accrued interest either in cash or in shares of the Company at USD 0.40.
	 	 
	12.	In
    consideration of Lender making the Loans to the Company, the Company hereby grants Lender the option (the “Option”),
    at any time and from time to time until the Loans and all accrued interest thereon are repaid in full, to convert all or any
    portion of the principal amount of the outstanding Loans (but in no event less than the lesser of (a) USD 500,000 and (b)
    the outstanding principal amount of the Loans), and all accrued interest on such converted portion of the Loans, into shares
    of the Company’s common stock at a price per share such that, upon conversion of such portion of the Loans, the average
    conversion price of all shares issued upon conversion of the Loans (including the conversion of the Existing Loan that occurred
    on December 26, 2017) shall be USD 0.40.
	 	 
	13.	During
    the life of this Restated Agreement, the Company shall provide reasonable updates to the Lender, within the constraints of
    the law and government agencies, and subject to reasonable confidentiality restrictions, at no greater than monthly intervals.
    Lender agrees use of such information is solely to monitor the Loans.
	 	 
	14.	So
    long as the Loans are outstanding, the Company will not, without the prior written consent of Lender, do any of the following:
    (i) liquidate, dissolve or wind-up the affairs of the company or enter into merger, consolidation, share exchange, reorganisation,
    recapitalization or other similar transaction or business combination (with the exception of the Spin Out and the transactions
    set forth on Schedule 14); (ii) sell additional shares of the Company (excluding upon exercise of outstanding options, and
    other similar, and excluding the transactions set forth in Schedule 14) at a price per share less than USD 0.40; (iii) purchase
    or redeem or pay any dividend on any capital stock (with the exception of the Spin Out); (iv) create or authorize the creation
    of any debt security senior to the Loans (excluding the security held by Radium on its USD 1,000,000 facility on the date
    hereof); (v) enter into any agreement or other binding commitment to do any of the foregoing. If the Company receives any
    inquiry, proposal, offer or expression of interest by any person (other than Lender and its affiliates) with respect to any
    of the foregoing, it shall promptly notify Lender.

 

    	 

    	 

    

 

	15.	Upon
    the occurrence of a default, the whole sum of principal and accrued interest shall become due immediately at the option of
    the Lender. Default shall include, but not be limited to: (i) any material adverse change, in the reasonable opinion of the
    Lender, in the financial condition or operations of the Company after the date of this Restated Agreement; (ii) any change
    in control of the Company without the prior written consent of the Lender (with the exception of the transactions set forth
    in Schedule 14); (iii) failure to make any payment hereunder at the time prescribed for payment; (iv) filing, as to the Company
    or any guarantor or endorser of the Loans, of an involuntary petition which is not dismissed within sixty (60) days or of
    a voluntary petition under the provisions of the Federal Bankruptcy Code or any state statute for the relief of debtors; (v)
    default in the payment of principal or interest on any obligation in excess of USD 100,000 for borrowed money beyond the period
    of grace, if any, provided with respect thereto or default in the performance or observance of any other term, condition or
    agreement contained in any such obligation or in any agreement relating thereto, if the effect thereof is to cause, or permit
    the holder or holders of such obligation (or a trustee on behalf of such holder or holders) to cause such obligation to become
    due prior to its stated maturity and such default remains unremedied for a period of 10 days; (vi) final judgment for the
    payment of money in excess of USD 100,000 shall be rendered against the Company and the same shall remain undischarged for
    a period of thirty (30) days during which execution of such judgment shall not be effectively stayed or is not being validly
    contested; or (vii) any material breach or other default by the Company under this Agreement which is not cured within five
    (5) days after the Company receives notice from the Lender of the occurrence thereof.
	 	 
	16.	The
    times for the payment of the principal sum as herein stated are of the essence of this Restated Agreement. Upon the occurrence
    of a default, the amount of the principal sum hereunder, plus reasonable attorneys’ fees and expenses, shall bear interest
    from the date thereof to the actual date of payment (whether such payment is made voluntarily or as a result of legal process)
    at the maximum rate of interest permitted by law or 17.5% per annum, whichever is lower, from the date of the default to the
    date of actual payment.
	 	 
	17.	The
    Company represents and warrants to the Lender as follows: (i) the Company is a company duly incorporated and existing under
    the laws of the State of Delaware; (ii) the Company has the power to enter into, perform and comply with its obligations under
    this Restated Agreement and all corporate and other action required to authorise the execution of this Restated Agreement
    and the performance by the Company of its obligations under this Restated Agreement has been taken; (iii) no event of default
    has occurred, or in the Lender’s reasonable opinion will occur as a result of any drawdown of facility, and the Company
    is not in material default under any other agreement to which it is a party; and (iv) this Restated Agreement constitutes
    the legal, valid and binding obligations of the Company.
	 	 
	 	Each
    of the representations and warranties hereon shall be deemed repeated on each date on which a drawdown is requested by reference
    to the facts and circumstances then subsisting.
	 	 
	18.	Each
    party shall bear its own expenses in connection with the transactions contemplated hereby; provided that the Company will
    pay up to USD 25,000 of the Lender’s legal and other expenses incurred in connection with the negotiation and execution
    of this Restated Agreement, which amounts may be deducted from the drawdown under the first Extension.
	 	 
	19.	Any
    and all notices required or permitted to be given under any provision of this Restated Agreement shall be in writing and shall
    be deemed given upon personal delivery or the mailing thereof by first class certified mail, return receipt requested, upon
    transmission by telecopier, facsimile or electronic mail, or on the next business day upon delivery by overnight delivery
    service, in each case to the addresses or numbers set forth above or at such other addresses or numbers as they may have provided
    by prior written notice.
	 	 

 

    	 

    	 

    

 

	20.	This
    Restated Agreement shall not be assignable by Lender without the prior written approval of the Company; provided that, without
    the Company’s prior written consent, the Lender may transfer solely (a) the right to receive payment of principal and
    interest (subject to and in accordance with the terms of this Restated Agreement) with respect to all (but not less than all)
    of the Loans and (b) the Option. This Restated Agreement shall not be assignable by the Company without the prior written
    approval of the Lender.
	 	 
	21.	The
    Company shall use its commercially reasonable best efforts to have an effective registration statement registering the resale
    of all shares issued upon conversion of the Loans on or prior to the date that is 120 days following the execution of the
    Restated Agreement. If the Company is unable to obtain an effective registration statement registering the resale of all shares
    issuable upon the conversion of the Loans within such 120 day period, then the Company (a) will issue to Lender a number of
    shares of the Company’s common stock equal to ten percent (10%) of the sum of (i) the number of shares issued upon conversion
    of the Loans and not resold by the Lender and (ii) the number of shares issuable upon conversion of the outstanding principal
    amount of the Loans, except in each case to the extent such shares may then be sold pursuant to Rule 144 under the Securities
    Exchange Act of 1933, as amended (the “Securities Act”) (the “Restricted Shares”), within five (5)
    business days of the expiration of such 120-day period, and (b) upon each monthly anniversary of such 120-day period that
    occurs prior to the registration statement becoming effective, will issue a number of shares of the Company’s common
    stock equal to one percent (1%) of the then Restricted Shares, within five (5) business days of such monthly anniversary,
    for up to six (6) months after the expiration of such 120-day period. The Company shall cause its counsel to issue a legal
    opinion to its transfer agent promptly after any resale by the Lender of shares of the Company’s common stock issued
    upon conversion of the Loans, to effect the removal of any restrictive legend on such shares, provided that the registration
    statement is effective and current or the conditions of Rule 144 under the Securities Act have been satisfied in connection
    with such sale, and the Lender has delivered any documents required by the Company’s counsel in connection therewith
    (including any representations, certifications or covenants by the Lender or its broker).
	 	 
	22.	If,
    at any time while the Loans are outstanding, the Company proposes to issue and sell shares (“Shares”) of its capital
    stock for cash (excluding upon exercise of outstanding options, and other similar, and excluding the transactions set forth
    in Schedule 14), the Company shall notify the Lender in writing of the material financial and other terms and conditions of
    such sale (the “Terms”), which notice shall constitute an offer by the Company to purchase all (but not less than
    all) of the Shares on the Terms. At any time prior to the expiration of three (3) business days after such notice is given
    (the “Acceptance Period”), the Lender may, by written notice to the Company, accept the offer for the purchase
    of the Shares on the Terms. If the Lender does not give notice within the Acceptance Period, the Company may, during the twenty
    (20) business days following the expiration of the Acceptance Period (the “Sale Period”), consummate the proposed
    sale of the Shares to a third party on terms and conditions no more favorable to such third party than the Terms. If the proposed
    Sale is not completed within the Sale Period, then the rights under this Section 22 shall be revived.
	 	 
	23.	This
    Restated Agreement shall be governed by and constructed in accordance with the law of the State of New York without giving
    effect to principles of conflicts of law. This Restated Agreement may be signed in counterparts which, taken together, shall
    constitute one agreement.
	 	 
	24.	The
    Lender hereby irrevocably waives any default under the Existing Agreement or Restated Agreement that may be deemed to have
    occurred prior to the date hereof.
	 	 
	25.	All
    per share amounts set forth herein shall be equitably adjusted for any stock split, stock combination, stock dividend, reorganization,
    recapitalization, reclassification or other similar event affecting the Company’s common stock as a whole that occurs
    on or after the date hereof.

 

    	 

    	 

    

 

EXECUTED
AS AN AGREEMENT

 

	Court
    Cavendish Ltd:	 	Long
    Blockchain Corp.
	 	 	 
	/s/	 	/s/
    Shamyl Malik
	Director	 	Chief
    Executive Officer
	 	 	 
	In
    the presence of:	 	In
    the presence of:
	 	 	 
	/s/	 	/s/
	Witness
    sign here	 	Witness
    sign here
	 	 	 
	 	 	 
	Witness
    name	 	Witness
    name
	 	 	 
	 	 	 
	Witness
    address	 	Witness
    addressseas-ex101_387.htm

 

Exhibit 10.1

 

FORM OF

Performance STOCK UNIT GRANT NOTICE
UNDER THE
SeaWorld Entertainment, Inc.
2017 OMNIBUS INCENTIVE PLAN

(Employees – Annual Incentive Plan Award)

 

 SeaWorld Entertainment, Inc., a Delaware corporation (the “Company”), pursuant to its 2017 Omnibus Incentive Plan, as it may be amended and restated from time to time (the “Plan”), hereby grants to the Participant set forth below, the maximum number of Restricted Stock Units set forth below.  The Restricted Stock Units are subject to all of the terms and conditions as set forth herein, in the Restricted Stock Unit Agreement (attached hereto or previously provided to the Participant in connection with a prior grant), and in the Plan, all of which are incorporated herein in their entirety.  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.

	
Participant:
	
[Insert Participant Name]

	
Date of Grant: 
	
[Date of Grant]

	
Performance Period:
	
The period commencing on January 1, 2018 and ending on December 31, 2018 (the “Performance Period”).

 

Target Number of 

	
Restricted Stock Units: 
	
[Insert Target No. of Restricted Stock Units Granted]

 

Maximum Number of 

	
Restricted Stock Units: 
	
[Insert Maximum No. of Restricted Stock Units Granted]

 

	
Vesting Schedule:
	
The Restricted Stock Units shall vest at such times and in such amounts as set forth in Exhibit A to the Restricted Stock Unit Agreement.

**

 

 

THE UNDERSIGNED PARTICIPANT ACKNOWLEDGES RECEIPT OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK UNITS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN.

 

SeaWorld Entertainment, Inc.Participant1

________________________________________________________________
By: Jack Roddy[Insert Participant Name]
Title: Chief Human Resources & Culture Officer

	
	 

	
1  
	
To the extent that the Company has established, either itself or through a third-party plan administrator, the ability to accept this award electronically, such acceptance shall constitute the Participant’s signature hereof.

[Signature Page to Restricted Stock Unit Award]

 

FORM OF

RESTRICTED STOCK UNIT AGREEMENT
UNDER THE
SeaWorld Entertainment, Inc.
2017 Omnibus INCENTIVE PLAN

Pursuant to the Restricted Stock Unit Grant Notice (the “Grant Notice”) delivered to the Participant (as defined in the Grant Notice), and subject to the terms of this Restricted Stock Unit Agreement (this “Restricted Stock Unit Agreement”) and the SeaWorld Entertainment, Inc. 2017 Omnibus Incentive Plan, as it may be amended and restated from time to time, (the “Plan”), SeaWorld Entertainment, Inc., a Delaware corporation, (the “Company”) and the Participant agree as follows.  Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan. 

1. Grant of Restricted Stock Units.  Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant the number of Restricted Stock Units provided in the Grant Notice (with each Restricted Stock Unit representing an unfunded, unsecured right to receive one share of Common Stock).  The Company may make one or more additional grants of Restricted Stock Units to the Participant under this Restricted Stock Unit Agreement by providing the Participant with a new Grant Notice, which may also include any terms and conditions differing from this Restricted Stock Unit Agreement to the extent provided therein.  The Company reserves all rights with respect to the granting of additional Restricted Stock Units hereunder and makes no implied promise to grant additional Restricted Stock Units. 

2. Vesting.  Subject to the conditions contained herein and in the Plan, the Restricted Stock Units shall vest as provided in Exhibit A attached hereto.   

3. Settlement of Restricted Stock Units.  The provisions of Section 9(d)(ii) of the Plan are incorporated herein by reference and made a part hereof and, in accordance therewith, any vested Restricted Stock Units shall be settled in shares of Common Stock as soon as reasonably practicable (and, in any event, within two and one-half months) following the expiration of the applicable Restricted Period.  With respect to any Restricted Stock Unit, the period of time on and prior to the Vesting Date (as defined in Exhibit A attached hereto) in which such Restricted Stock Unit is subject to vesting shall be its Restricted Period.  Notwithstanding anything in this Restricted Stock Unit Agreement to the contrary, the Company shall have no obligation to issue or transfer any shares of Common Stock as contemplated by this Restricted Stock Unit Agreement unless and until such issuance or transfer complies with all relevant provisions of law and the requirements of any stock exchange on which the Company’s shares of Common Stock are listed for trading.

4. Treatment of Restricted Stock Units Upon Termination.  The provisions of Section 9(b) of the Plan are incorporated herein by reference and made a part hereof. In the event the Participant undergoes a Termination, the treatment of the unvested Restricted Stock Units shall be as set forth in Exhibit A attached hereto.

5. Company; Participant. 

(a) The term “Company” as used in this Restricted Stock Unit Agreement with reference to employment shall include the Company and its Subsidiaries. 

(b) Whenever the word “Participant” is used in any provision of this Restricted Stock Unit Agreement under circumstances where the provision should logically be construed to apply to the executors, the administrators, or the person or persons to whom the Restricted Stock Units may be transferred by will or by the laws of descent and distribution, the word “Participant” shall be deemed to include such person 

 

 

or persons. 

6. Non-Transferability.  The Restricted Stock Units are not transferable by the Participant (unless such transfer is specifically required pursuant to a domestic relations order or by applicable law) except to Permitted Transferees in accordance with Section 15(b) of the Plan.  Except as otherwise provided herein, no assignment or transfer of the Restricted Stock Units, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Restricted Stock Units shall terminate and become of no further effect.

7. Rights as Stockholder; Dividend Equivalents.  The Participant shall have no rights as a stockholder with respect to any share of Common Stock underlying a Restricted Stock Unit (including no rights with respect to voting or to receive dividends or dividend equivalents) unless and until the Participant shall have become the holder of record or the beneficial owner of such Common Stock, and no adjustment shall be made for dividends or distributions or other rights in respect of such share of Common Stock for which the record date is prior to the date upon which the Participant shall become the holder of record or the beneficial owner thereof.  The Restricted Stock Units shall be entitled to be credited with dividend equivalent payments upon the payment by the Company of dividends on shares of Common Stock.  Such dividend equivalents will be provided in shares of Common Stock having a Fair Market Value on the date that the Restricted Stock Units are settled equal to the amount of such applicable dividends, and shall be payable at the same time as the Restricted Stock Units are settled in accordance with Section 3 above.  In the event that any Restricted Stock Unit is forfeited by its terms, the Participant shall have no right to dividend equivalent payments in respect of such forfeited Restricted Stock Units.

8. Tax Withholding.  The provisions of Section 15(d) of the Plan are incorporated herein by reference and made a part hereof. 

9. Notice.  Every notice or other communication relating to this Restricted Stock Unit Agreement between the Company and the Participant shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by such party in a notice mailed or delivered to the other party as herein provided; provided that, unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or delivered to the Company at its principal executive office, to the attention of the Corporate Secretary, and all notices or communications by the Company to the Participant may be given to the Participant personally or may be mailed to the Participant at the Participant’s last known address, as reflected in the Company’s records.  Notwithstanding the above, all notices and communications between the Participant and any third-party plan administrator shall be mailed, delivered, transmitted or sent in accordance with the procedures established by such third-party plan administrator and communicated to the Participant from time to time. 

10. No Right to Continued Service.  This Restricted Stock Unit Agreement does not confer upon the Participant any right to continue as an employee or service provider to the Service Recipient or any other member of the Company Group. 

11. Binding Effect.  This Restricted Stock Unit Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 

12. Waiver and Amendments.  Except as otherwise set forth in Section 14 of the Plan, any waiver, alteration, amendment or modification of any of the terms of this Restricted Stock Unit Agreement shall be valid only if made in writing and signed by the parties hereto; provided, however, that any such waiver, alteration, amendment or modification is consented to on the Company’s behalf by the 

4

 

 

Committee.  No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver. 

13. Clawback/Repayment.  This Restricted Stock Unit Agreement shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by the Board or the Committee and as in effect from time to time and (ii) applicable law.  In addition, if the Participant receives any amount in excess of what the Participant should have received under the terms of this Restricted Stock Unit Agreement for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the Participant shall be required to repay any such excess amount to the Company.

14. Detrimental Activity.  Notwithstanding anything to the contrary contained herein or in the Plan, if the Participant has engaged in or engages in any Detrimental Activity, as determined by the Committee, then the Committee may, in its sole discretion, take actions permitted under the Plan, including, but not limited to, (i) cancelling any and all Restricted Stock Units, or (ii) requiring that the Participant forfeit any gain realized on the vesting of the Restricted Stock Units and repay such gain to the Company.

15. Right to Offset.  The provisions of Section 15(x) of the Plan are incorporated herein by reference and made a part hereof.

13. Governing Law.  This Restricted Stock Unit Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  Notwithstanding anything contained in this Restricted Stock Unit Agreement, the Grant Notice or the Plan to the contrary, if any suit or claim is instituted by the Participant or the Company relating to this Restricted Stock Unit Agreement, the Grant Notice or the Plan, the Participant hereby submits to the exclusive jurisdiction of and venue in the courts of Delaware. THE PARTICIPANT IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTICIPANT IN RESPECT OF THE PARTICIPANT’S RIGHTS OR OBLIGATIONS HEREUNDER. 

14. Plan.  The terms and provisions of the Plan are incorporated herein by reference.  In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Restricted Stock Unit Agreement (including the Grant Notice), the Plan shall govern and control. 

15. Section 409A.  It is intended that the Restricted Stock Units granted hereunder shall be exempt from Section 409A of the Code pursuant to the “short-term deferral” rule applicable to such section, as set forth in the regulations or other guidance published by the Internal Revenue Service thereunder. 

5

 

 

Exhibit A

 

1. Vesting of Restricted Stock Units.  

 

(a) The Performance Period shall mean the period from January 1, 2018 to December 31, 2018.  The “Target Number of Restricted Stock Units” provided on the Grant Notice will be eligible to be earned based on the following performance metrics: 50%—Adjusted EBITDA Component (as set forth in Section 1(b)(A) below); 20%—Total Revenue Component (as set forth in Section 1(b)(B) below); 20%—Free Cash Flow Component (as set forth in Section 1(b)(C) below); and 10%—Individual Objectives Component (as set forth in Section 1(b)(D) below); in each case, based on a multiple from 0% up to a maximum of 150% pursuant to Section 1(b) below at the end of the Performance Period and the Earned Amount (as defined below) will be eligible to become vested pursuant to Section 1(c) below.  The Adjusted EBITDA Component, the Total Revenue Component, the Free Cash Flow Component, and the Individual Objectives Component, below shall collectively be referred to herein as the “Performance Components” and the applicable portion of the “Target Number of Restricted Stock Units” shall each be referred to herein as the applicable “Performance Component Percentage”. 

 

		
	
Performance Component
	
Performance Component Percentage

	
Adjusted EBITDA
	
50%

	
Total Revenue
	
20%

	
Free Cash Flow
	
20%

	
Individual Objectives
	
10%

 

(b) During the first 90 days of the Performance Period, the Committee will determine:

 

(A) Adjusted EBITDA Component.  A projected Adjusted EBITDA target for the Performance Period (the “Adjusted EBITDA Target”).  For purposes of this Exhibit A, the term “Adjusted EBITDA” shall mean the Adjusted EBITDA which is publicly disclosed in (or otherwise calculated in a manner consistent with) the Company’s earnings release for the applicable fiscal year during the Performance Period.

 

(B) Total Revenue Component.  A projected Net Revenue for the Performance Period (the “Revenue Target”).  For purposes of this Exhibit A, the term “Net Revenue” shall mean the Company’s net revenue, as reported in (or otherwise calculated in a manner consistent with) the Company’s Form 10-Ks and Form 10-Qs as filed with the U.S. Securities and Exchange Commission for the fiscal year during the Performance Period.

 

(C) Free Cash Flow Component. A projected Free Cash Flow target for the Performance Period (the “Free Cash Flow Target”).  For purposes of this Exhibit A, the term “Free Cash Flow” shall mean the Free Cash Flow which is publicly disclosed in (or otherwise calculated in a manner consistent with) the Company’s earnings release for the applicable fiscal year during the Performance Period. 

 

(D) Individual Objective Component. A projected Individual Objective target for the Performance Period (the “Individual Objective Target”).  For purposes of this Exhibit A, the term “Individual Objective” shall be as determined by the Committee.

 

In connection with the foregoing, the Company’s Chief Financial Officer shall certify in writing to the Committee the Adjusted EBITDA, the Net Revenue,  Free Cash Flow and Individual Objective.

6

 

 

 

Following the completion of the Performance Period, the Committee will determine the “Actual Performance Percentage” for each Performance Component by calculating for the applicable Performance Component the percentage by which the Adjusted EBITDA, Net Revenue, Free Cash Flow and Individual Objective Component, as applicable, met or exceeded the Adjusted EBITDA Target, Revenue Target, Free Cash Flow Target and Individual Objective Target, respectively.  The number of Restricted Stock Units that will be earned (the “Earned Amount”) with respect to each Performance Component will be based on the achievement of the Actual Performance Percentage as set forth in the tables below times the applicable Performance Component Percentage set forth in the table above:

 

		
	
 Actual Performance Percentage for the Adjusted EBITDA Component and Free Cash Flow Component*
	
Percentage of Restricted Stock Units Earned for the Adjusted EBITDA Component and Free Cash Flow Component***

	
Actual Performance Percentage less than [threshold]%
	
0%

	
Actual Performance Percentage greater than or equal to [threshold]%
	
50%

	
Actual Performance Percentage greater than or equal to [target]%
	
100%

	
Actual Performance Percentage greater than or equal to [maximum]%
	
150%

* For an Actual Performance Percentage at least equal to [threshold]% which falls in between the levels set forth in the table above, the Committee shall apply straight-line interpolation to determine the Earned Amount for the applicable Performance Component, provided that in no event shall the Earned Amount exceed 150% of such Performance Component.  

 

		
	
Actual Performance Percentage for the Total Revenue Component and Individual Objective Component**
	
Percentage of Restricted Stock Units Earned for the Total Revenue Component and Individual Objective Component***

	
Actual Performance Percentage less than [threshold]%
	
0%

	
Actual Performance Percentage greater than or equal to [threshold]%
	
50%

	
Actual Performance Percentage greater than or equal to [target]%
	
100%

	
Actual Performance Percentage greater than or equal to [maximum]%
	
150%

** For an Actual Performance Percentage at least equal to [threshold]% which falls in between the levels set forth in the table above, the Committee shall apply straight-line interpolation to determine the Earned Amount for the applicable Performance Component, provided that in no event shall the Earned Amount exceed 150% of any such Performance Component.

 

*** By way of illustration, if the “Target Number of Restricted Stock Units” is [●] Restricted Stock Units and the Company’s Actual Performance Percentage (w) for the Adjusted EBITDA Component is [●]%, (x) for the Free Cash Flow Component is [●]%, (y) for the Total Revenue Component is [●]% and (z) the Individual Objective Component is [●]%, then the Earned Amount with respect to Adjusted EBITDA Component, Free Cash Flow Component, Total Revenue Component and Individual Objective Component will be [●] units ([●] units x [●]%),[●] units ([●] units x [●]%),[●] units ([●] units x [●]%) and [●] units ([●] units x [●]%), respectively.  [●] Restricted Stock Units will vest on the date the Committee determines the Actual Performance Percentages for the Performance Period.

7

 

 

 

The sum of the Earned Amount for each Performance Component is referred to as the “Total Earned Amount”.  A number of Restricted Stock Units equal to the Total Earned Amount will be eligible to vest pursuant to Section 1(c) below.

 

(c) Provided the Participant has not undergone a Termination on or prior to the Vesting Date (as defined below), a number of Restricted Stock Units shall vest and the restrictions on such Restricted Stock Units shall lapse on the date (the “Vesting Date”) the Committee determines the Actual Performance Percentages of the Performance Period and the Company publicly discloses the Adjusted EBITDA for the Performance Period in the Company’s earnings release which date shall not be later than March 15 in the year following the end of the Performance Period.  Any remaining unvested Restricted Stock Units that do not become vested in accordance with preceding sentence (if any) shall immediately be forfeited by the Participant for no consideration as of the Vesting Date.  Notwithstanding anything contained in this Restricted Stock Unit Agreement, the Grant Notice or the Plan to the contrary, no Restricted Stock Units shall vest in the event the Actual Performance Percentage for the Adjusted EBITDA Component is less than [threshold]% and, in such event, all Restricted Stock Units shall immediately be forfeited to the Company by the Participant for no consideration as of the Vesting Date.  

 

2. Treatment of Restricted Stock Units Upon Termination. 

 

In the Event of Participant’s Termination for any reason on or prior to the Vesting Date, all unvested Restricted Stock Units shall be forfeited by the Participant for no consideration as of the date of such Termination.  

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