Document:

Exhibit 10.2

 

Execution Version

 

LOAN ADMINISTRATION SERVICES AGREEMENT

 

THIS LOAN ADMINISTRATION
SERVICES AGREEMENT (this “Agreement”), dated as of May 28, 2015, is between MADISON CAPITAL FUNDING LLC,
a Delaware limited liability company (“Madison” and, in its capacity as loan administrator hereunder, the “Loan
Administrator”), and OFS CAPITAL WM, LLC, a Delaware limited liability company (the “Company”), and is
acknowledged and agreed to by OFS CAPITAL CORPORATION, a Delaware corporation (“OFS Capital”).

 

Section 1.          Appointment
of Loan Administrator. 

 

The Loan Administrator
is hereby appointed to provide nondiscretionary loan servicing and other administrative services with respect to the Company as
set forth in Section 2, in accordance with the terms and conditions of this Agreement. The Loan Administrator hereby accepts such
retention and appointment and agrees to provide such administrative services in accordance with the terms and conditions of this
Agreement.

 

Section 2.          Duties
of Loan Administrator.

 

The Loan Administrator
shall perform the following functions with respect to the portfolio of loans described on Exhibit A hereto (the “Loans”)
and the cash and other assets and proceeds received in respect thereof (collectively, the “Assets”), in each case,
in accordance with applicable law:

 

(a)       if
the Loan Administrator receives any payments or other amounts with respect to any Loan (other than in the Loan Administrator’s
capacity as administrative agent, in which case such payments shall be subject to the terms of the Underlying Instruments related
to such Loan), it shall, within two (2) Business Days after receipt thereof, remit such amounts into an account (the “Account”)
designated by OFS Capital with a custodian appointed by the Company (the “Custodian”) and notified to the Loan Administrator;

 

(b)       notify
the Company and OFS Capital of any proposed amendment, modification, restructuring, exchange, waiver or offer with respect to any
Loan, any vote with respect to the acceleration of the maturity of any Loan or any other proposal requiring the vote of the Company
with respect to any Loan (each, a “Material Action” and collectively, the “Material Actions”) at least
one (1) Business Day prior to the date such Material Action is proposed to be taken, which notice will be accompanied by all information
provided to the Loan Administrator in respect of such Material Action that the Loan Administrator deems relevant along with the
determination the Loan Administrator has made with respect to such Material Action with respect to the Corresponding Loan (as defined
below) held by the Loan Administrator. The Loan Administrator will promptly supply to the Company and OFS Capital any additional
information with respect to such Material Action requested by the Company and/or OFS Capital that is in the possession of the Loan
Administrator or is reasonably obtainable without expense. OFS Capital shall be permitted to ask any questions of and consult with
the Loan Administrator regarding the Material Action and the Loan Administrator’s determination with respect to its vote
on the Corresponding Loan; provided that nothing in this clause (b) shall limit the obligation of the Company to vote its interest
in the Loans in accordance with Section 5 hereof.

 

(c)       forward
to the Company all notices received by the Loan Administrator (on behalf of the Company) with respect to the Loans and other Assets;

 

(d)       deliver
to the Company and OFS Capital, to the extent received by the Loan Administrator (on behalf of the Company) pursuant to the Underlying
Instruments, the financial reporting package with respect to each Obligor and with respect to each Loan for such Obligor (including
any financial statements, management discussion and analysis, executed covenant compliance certificates and related covenant calculations
with respect to such Obligor and with respect to each Loan for such Obligor) provided to the Loan Administrator (on behalf of the
Company) for the periods required by the Underlying Instruments, which delivery shall be made within ten (10) Business Days after
receipt by the Loan Administrator (on behalf of the Company) as specified in the Underlying Instruments;

 

    	 

    	 

    

 

(e)       provide
the Company and OFS Capital with a monthly accounting report regarding the Assets in a form previously
agreed between the parties; and

 

(f)       execute
any and all documentation relating to the Assets to effectuate any of the foregoing services (including any agreement or document
effecting a Material Action).

 

It is understood that
the Loan Administrator is not responsible for the accuracy or completeness of information furnished by Obligors on any Loans included
in the Assets or by other third parties.

 

Section 3.          Negative
Covenants of the Loan Administrator. The Loan Administrator will not, unless directed to do so by the Company or OFS Capital,
make any change in its instructions to Obligors or agents of Agented Loans regarding payments to be made with respect to Assets.

 

Section 4.          Limitations
on Scope of Loan Administrator’s Duties. 

 

The Loan Administrator’s
duties and authority to act as Loan Administrator hereunder are limited to the duties and authority specifically provided for in
this Agreement. For the avoidance of doubt and without limiting the generality of any of the provisions hereof, the parties agree
that the Loan Administrator will not (a) make decisions regarding any discretionary matters for any Loan; (b) monitor any hedging
arrangements; (c) perform any mark-to-market calculations; (d) act as custodian for any promissory notes, allonges or any other
instruments related to the Loans; and (e) provide any type of funding to the Company (other than consideration in respect of any
purchases by the Loan Administrator from the Company). Notwithstanding anything to the contrary herein, with respect to the Loan
Administrator’s obligations hereunder that are contingent on the Loan Administrator’s receipt of information from the
Company to perform such obligation, the Loan Administrator shall solely be required to perform such obligations to the extent that
the Loan Administrator has actually received such information to perform such obligations, provided that this sentence shall not
preclude the performance by the Loan Administrator of other obligations hereunder for which the Loan Administrator has received
sufficient information. In addition, to the extent the Loan Administrator has not received sufficient information to complete obligations
hereunder, the Loan Administrator shall take reasonable measures (as determined by the Loan Administrator based on its typical
administrative practices) to request such information. Any actions or duties required by the Loan Administrator hereunder shall
be in addition to, and not in abrogation of, any action or duty required of the Loan Administrator to the Company as a lender in
the Loan Administrator’s capacity as administrative agent in respect of the related Loan; provided that such actions or duties
in the Loan Administrator’s capacity as administrative agent in respect of any Loan shall be governed by the terms of the
Underlying Instruments and not this Agreement.

 

Section 5.          Voting;
Right of First Offer.

 

(a)       Notwithstanding
anything contained in this Agreement, any Underlying Instrument with respect to any Loan or any other agreement, the Company agrees
that it shall vote its interests in the Loans with respect to any Material Action in the same manner as the Loan Administrator
votes its own interests in the same loans made to the same Obligors as the Loans (each such loan held by the Loan Administrator
being a “Corresponding Loan”). The Company understands and agrees that breach of its obligations under this clause
(a) may cause irreparable harm to the Loan Administrator for which monetary damages may be an inadequate remedy. Accordingly, in
the event of any breach of this clause (a), the Loan Administrator shall be entitled to seek equitable relief, including injunctive
relief and specific performance in addition to any other available remedies.

 

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(b)       If
OFS Capital indicates in writing to the Loan Administrator that OFS Capital is dissatisfied with any vote taken with respect to
any Material Action by the Loan Administrator, OFS Capital will have the right, in its sole discretion, to sell such Loan; provided
that nothing shall limit the obligation of the Company to vote its interest in the Loans in accordance with Section 5(a).

 

(c)       If
the Company determines to sell any Loan for any reason whatsoever, including without limitation pursuant to Section 5(b), the Company
hereby grants to Madison a right of first offer to purchase such Loan in accordance with the ROFO Procedure. If the Company (or
OFS Capital on its behalf) agrees to sell a Loan to Madison, the Company and Madison shall use commercially reasonably efforts
to effect the settlement of such sale as promptly as practicable.

 

Section 6.          Account;
Custodian.

 

Except as contemplated
by Section 2(a): (i) the Loan Administrator shall at no time have custody or physical control of the Assets in the Account; and
(ii) the Custodian shall at all times be responsible for the physical custody of the Assets. The Loan Administrator shall not be
liable for any act or omission of the Custodian. The Company shall instruct the Custodian to provide the Loan Administrator with
such information concerning the Account as the Loan Administrator may reasonably request from time to time. The Company will give
the Loan Administrator reasonable prior written notice of its intention to change the Custodian, together with the name and other
relevant information with respect to the new Custodian.

 

Section 7.          Limitation
of Liability; Indemnification.

 

(a)       The
Loan Administrator shall not be liable for any expenses, losses, damages, or claims of any kind (including, without limitation,
legal expenses and expenses relating to investigating and defending any claims) (collectively, “Losses”) by or with
respect to the Company or the Account, except to the extent that such Losses are actual Losses (and not incidental or consequential
Losses) that are the direct result of an act or omission taken or omitted by the Loan Administrator that constitutes fraud, willful
misconduct, bad faith or gross negligence with respect to the Loan Administrator’s obligations under this Agreement (collectively
referred to as “Loan Administrator Breaches”).

 

(b)       the
Company and OFS Capital shall, jointly and severally, indemnify and hold harmless the Loan Administrator, its Affiliates, and their
respective officers, employees, directors, agents, stockholders, members and partners (each, an “OFS Indemnified Party”)
from and against any and all Losses, and will promptly reimburse each such OFS Indemnified Party for all reasonable fees and expenses
(including, without limitation, reasonable fees and expenses of counsel) incurred by an OFS Indemnified Party with respect thereto,
arising out of or in connection with the Loan Administrator’s provision of loan administration services under this Agreement;
provided, that neither the Company nor OFS Capital shall be so liable to the extent that such Loss was caused by or arose out of
a Loan Administrator Breach.

 

(c)       the
Loan Administrator shall indemnify, defend and hold harmless the Company, its Affiliates, and their respective officers, employees,
directors, agents, stockholders, members and partners (each, a “Loan Administrator Indemnified Party”) from and against
any and all Losses, and will promptly reimburse each such Loan Administrator Indemnified Party for all reasonable fees and expenses
(including, without limitation, reasonable fees and expenses of counsel) incurred by a Loan Administrator Indemnified Party with
respect thereto, to the extent that such Loss is caused by, or arose out of or in connection with, any Loan Administrator Breach;
provided, that the Loan Administrator shall not be so liable to the extent that such Loss was caused by or arose out of a Loan
Administrator Indemnified Party’s own fraud, bad faith, willful misconduct or gross negligence.

 

(d)       None
of the Loan Administrator, OFS Capital or the Company shall be liable for any consequential (including loss of profits), incidental,
special or punitive damages.

 

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Section 8.          Representations
and Warranties.

 

Each party to this
Agreement represents and warrants that the execution, delivery and performance of its obligations under this Agreement are within
its powers, have been duly authorized by all necessary actions and that this Agreement constitutes a legal, valid and binding obligation.

 

Section 9.          Confidentiality.

 

All information furnished
by the parties in performance of this Agreement shall be treated as confidential and shall not be disclosed to third parties except
where required in order to carry out responsibilities hereunder or as required by law or as deemed necessary by the Loan Administrator
or the Company in compliance with its regulatory responsibilities.

 

Section 10.         Fees;
Expenses. 

 

For the services furnished
to the Company in respect of the Loans, the Loan Administrator shall be entitled to, and the Company and OFS Capital, jointly and
severally, agree to pay (or cause to be paid), the Loan Administration Fee and the Reporting Fee, in each case as set forth in
and payable in accordance with Appendix A to this Agreement. In addition, the Company and OFS Capital, jointly and severally, agree
to pay, or to reimburse the Loan Administrator for its payment of, any and all expenses, including the reasonable out-of-pocket
fees and expenses incurred by the Loan Administrator in connection with the services provided under this Agreement (collectively,
“Expenses”), including, without limitation: (a) any fees and expenses in connection with the services provided under
this Agreement in respect of any Asset (including (i) travel, communications and related expenses, (ii) legal fees and expenses,
and (iii) amounts required to be paid or reimbursed to any agent under any Underlying Instruments); (c) any and all taxes and governmental
charges that may be incurred or payable by the Company with respect to the Assets; and (d) any and all expenses incurred to comply
with any law or regulation related to the activities of the Company and, to the extent relating specifically to the Company (or
its activities) and the Assets, the Loan Administrator; provided that, to the extent the Company (or the Loan Administrator
on behalf of the Company) is entitled to be reimbursed for any such costs and expenses by any Obligor in respect of a Loan and
is, in fact, paid or reimbursed thereby, the Company shall pay or reimburse the Loan Administrator in accordance with this Section
10 (net of any amounts, if any, received by the Loan Administrator directly).

 

Section 11.         Assignment
and Termination.

 

(a)       Notwithstanding
anything contained herein to the contrary, no assignment of this Agreement may be made by any party to this Agreement except with
the written consent of the other parties. Unless earlier terminated pursuant to Section 11(b) or 11(c) below, this Agreement shall
terminate on the date on which all Assets shall have been liquidated or paid off.

 

(b)       The
Loan Administrator may terminate this Agreement without penalty upon written notice to the Company (i) in the event the Company
fails to pay or reimburse the Loan Administrator for any fees or Expenses hereunder or otherwise materially breaches its obligations
under this Agreement and such failure or breach is not cured or remedied within thirty (30) days of the occurrence thereof, or
(ii) if at any time the Loan Administrator determines that it is not reasonably able to provide the services required under this
Agreement in accordance with the standard of care set forth herein.

 

(c)       The
Company may terminate this Agreement without penalty upon a Loan Administrator Termination Event.

 

(d)       The
Company agrees that, upon any termination of this Agreement, it will pay the fees referred to in Section 10 of this Agreement prorated
to the date of termination.

 

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(e)       The
Company shall not transfer any Loan to any transferee that is an Affiliate of the Company unless such transferee agrees to be bound
by the provisions of this Agreement and such Loan shall remain subject to the terms of this Agreement.

 

Section 12.         Amendment;
Waiver. 

 

This Agreement, including
the Exhibits and Appendices attached hereto, states the entire agreement of the parties with respect to the subject matter hereof
and may not be amended except by written agreement of each of the parties hereto. If any provision of this Agreement shall be found
void or unenforceable, it shall not affect the remaining part, which shall remain in full force and effect.

 

Section 13.         Notices.

 

Any and all notices
under this Agreement shall be in writing and sent to the appropriate party at the addresses appearing at the end of this Agreement
for each signatory hereto, or to such other address as shall be notified in writing by that party to the other parties from time
to time. All directions by or on behalf of the Company to the Loan Administrator shall be in writing signed by the Company or by
an authorized agent of the Company. For this purpose, the term “in writing” shall include directions given by facsimile.
A list of persons authorized to give instructions to the Loan Administrator hereunder, with specimen signatures, will be provided
separately by the Company.

 

Section 14.         Definitions.

 

The following terms
shall have the following meanings:

 

“Account”
shall have the meaning set forth in Section 2(a).

 

“Affiliate”
means, when used with reference to a specified Person, (a) any Person directly or indirectly controlling, controlled by or under
common control with such Person, (b) a Person owning or controlling 25% or more of the outstanding voting securities of such Person,
(c) a Person 25% or more of whose outstanding voting securities are owned or controlled by such Person, (d) any officer, director,
general partner, manager, or trustee of such Person, and (e) if such Person is an officer, director, general partner, manager or
trustee, any corporation, partnership, limited liability company or trust for which such Person acts in any such capacity.

 

“Agented Loan”
means any Loan originated as part of a syndicated loan transaction that has one (1) or more administrative, paying and/or collateral
agents that receive payments and hold the collateral pledged by the related Obligor on behalf of all lenders with respect to the
related credit facility.

 

“Agreement”
shall have the meaning set forth in the preamble to this agreement.

 

“Assets”
shall have the meaning set forth in Section 2.

 

“Business Day”
means any day other than a Saturday, Sunday or a day on which commercial banks are authorized or required to close in Chicago,
Illinois or New York, New York.

 

“Company”
shall have the meaning set forth in the preamble to this Agreement.

 

“Custodian”
shall have the meaning set forth in Section 2(a).

 

“Expenses”
shall have the meaning set forth in Section 10.

 

“Fee Basis Amount”
means, for any period commencing on the date hereof, the sum of the average daily outstanding principal balances of all Fee Basis
Loans held by the Company during such period. For purposes of this definition, the average daily outstanding principal balance
of any Loan that is acquired by Madison prior to June 30, 2015 shall be deemed to be $0.

 

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“Fee Basis Loans”
means those Loans described on Exhibit B hereto that Madison offered to purchase from the Company on the date hereof at the prices
set forth on Exhibit B hereto (the “offered prices”), but the Company initially declined such offer, and for which
(x) at any time on or before June 25, 2015 (the “Offer Deadline”), Madison has delivered a written offer to the Company
to acquire any or all of such Loans at prices not less than the “offered prices” set forth on Exhibit B hereto for
each such Loans and (y) the Company has rejected, or not accepted such offer in writing, with respect to any such Loans by June
30, 2015 (the “Acceptance Deadline”); it being understood that such offer may be made with respect to none, any or
all of such Loans in Madison’s discretion and that such offer may be accepted with respect to none, any or all of such Loans
in the Company’s discretion. For the avoidance of doubt, only those Loans for which Madison has made an offer described in
clause (x) above and for which the Company has rejected (or not accepted) such offer by the Acceptance Deadline shall constitute
“Fee Basis Loans” hereunder; provided that if Madison makes an offer with respect to a Loan that is less than the “offered
price” therefor set forth on Exhibit B hereto by the Offer Deadline and the Company accepts such offer in its sole discretion
by the Acceptance Deadline, such Loan shall not be a “Fee Basis Loan.”

 

“Insolvency Event”
means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction over such
Person or any substantial part of its property in an involuntary case under any applicable bankruptcy or insolvency law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such
Person or for any substantial part of its property, or ordering the winding-up or liquidation of such Person’s affairs, and
such decree, order or appointment shall remain unstayed and in effect for a period of sixty (60) consecutive days, (b) the commencement
by such Person of a voluntary case under any applicable bankruptcy or insolvency law now or hereafter in effect, or the consent
by such Person to the entry of an order for relief in an involuntary case under any such law, (c) the consent by such Person to
the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official
for such Person or for any substantial part of its property, or the making by such Person of any general assignment for the benefit
of creditors, or (d) the failure by such Person generally to pay its debts as such debts become due, or the taking of action by
such Person in furtherance of any of the foregoing.

 

“Loan Administration
Fee” means, for any quarter, the product of (a) 0.25% per annum times (b) the Fee Basis Amount during such quarter (calculated
on 30/360 day basis).

 

“Loan Administrator”
shall have the meaning set forth in the preamble to this Agreement.

 

“Loan Administrator
Breaches” shall have the meaning set forth in Section 7(a).

 

“Loan Administrator
Indemnified Party” shall have the meaning set forth in Section 7(c).

 

“Loan Administrator
Termination Event” means the occurrence of any one of the following:

 

(a)       any
failure on the part of the Loan Administrator to duly observe or perform in any material respect the agreements or covenants of
the Loan Administrator set forth in this Agreement (including without limitation any material delegation of the Loan Administrator’s
duties not permitted by this Agreement) and the same continues unremedied for a period of forty-five (45) days (or, in the case
of a breach of Section 2(a), for a period of five (5) Business Days) after the earlier to occur of (i) the date on which written
notice of such failure shall have been delivered to the Loan Administrator by the Company or OFS Capital, and (ii) the date on
which a Responsible Officer of the Loan Administrator acquires knowledge thereof; or

 

(b)       an
Insolvency Event shall occur with respect to the Loan Administrator.

 

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“Loans”
shall have the meaning set forth in Section 2.

 

“Losses”
shall have the meaning set forth in Section 7.

 

“Madison”
shall have the meaning set forth in the preamble to this Agreement.

 

“Material Action”
shall have the meaning set forth in Section 2(b).

 

“Obligor”
means, with respect to any Loan, any Person or Persons obligated to make payments pursuant to or with respect to such Loan, including
any guarantor thereof.

 

“OFS Indemnified
Party” shall have the meaning set forth in Section 7(b).

 

“Payment Date”
means the 15th day of each July, October, January and April, commencing July 15, 2015; provided, that if such day is not a Business
Day, the Payment Date shall be the immediately succeeding Business Day.

 

“Person”
means any individual, corporation, partnership, limited liability company, trust or other entity.

 

“Portfolio Purchase
Agreement” shall have the meaning set forth in Section 15(f)(ii).

 

“Reporting Fee”
means a fee that accrues monthly in the amount of $1,000 for each monthly accounting report delivered by the Loan Administrator
pursuant to Section 2(e) hereof.

 

“Responsible
Officer” means, with respect to any Person, any duly authorized officer of such Person or of the general partner, administrative
manager or managing member of such Person with direct responsibility for the administration of this Agreement and also, with respect
to a particular matter, any other duly authorized officer of such Person or of the general partner, administrative manager or managing
member of such Person to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular
subject.

 

“ROFO Procedure”
means, in connection with any sale of an Asset directed by the Company or OFS Capital hereunder, the following procedures pursuant
to which Madison shall have a right of first offer:

 

(a)       Madison
shall have one business day after receipt by the Loan Administrator of a Sale Notice in which to provide a bid price (the “Bid
Price”) for such Asset; if Madison fails to provide a bid within such time period, then the Bid Price shall be deemed to
be $0; and

 

(b)       OFS
Capital may in its sole discretion sell such Asset to Madison at the Bid Price; provided that, if OFS Capital chooses not
to sell such Asset to Madison at the Bid Price, then OFS Capital may not sell such Asset to any third party at a price equal to
or less than the Bid Price without first offering to sell such Asset to Madison at a price equal to the Bid Price or any such lesser
price.

 

“Sale Notice”
shall mean, with respect to any Loan, a written notice from the Company to the Loan Administrator notifying the Loan Administrator
that the Company intends to sell such Loan.

 

“Underlying Instruments”
means the loan agreement, credit agreement or other agreement pursuant to which a Loan or other Asset has been issued or created
and each other agreement that governs the terms of or secures the obligations represented by such Loan or other Asset or of which
the holders of such Loan or other Asset are the beneficiaries.

 

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Section 15.         Miscellaneous.

 

(a)       The
provisions of Sections 7, 9 and 11(d) shall survive the termination of this Agreement.

 

(b)       THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS
OF LAW PRINCIPLES THEREOF.

 

(c)       Each
party hereto hereby submits to the jurisdiction of any state or federal court sitting in the Borough of Manhattan in the City of
New York in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated herein.

 

(d)       This
Agreement may be executed in any number of counterparts and delivered by facsimile or other electronic transmission, each of which
shall be deemed to be an original as against any party the signature of which appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually
or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

 

(e)       Nothing
contained in this Agreement (i) shall constitute the Loan Administrator, on the one hand, and the Company and OFS Capital, on the
other hand, as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity,
(ii) shall be construed to impose any liability as such on either of them or (iii) shall be deemed to confer on either of them
any express, implied or apparent authority to incur any obligation or liability on behalf of the other. The parties hereto acknowledge
and agree that the Loan Administrator is not acting in the capacity of investment adviser to either of the Company or OFS Capital.

 

(f)        The
parties hereto acknowledge and agree that notwithstanding anything to the contrary in this Agreement (i) the Company (or OFS Capital
on behalf of the Company) is entitled at any time and at its or OFS Capital’s sole discretion, to sell any of the Loans or
other Assets (subject to Section 5) and (ii) with respect to any Loans that have been sold to Madison pursuant to that certain
Loan Portfolio Purchase Agreement, dated as of the date hereof (the “Portfolio Purchase Agreement”), by and between
Madison and the Company (and acknowledged and agreed to by OFS Capital), the Loan Administrator shall have the sole right and authority
to settle the Loans sold thereunder and otherwise effectuate the transactions contemplated by the Portfolio Purchase Agreement.

 

[Signatures set forth
on the following page]

 

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EXHIBIT A

 

LOANS

 

See attached

 

    	 

    	 

    

 

	Issuer	 	Asset	 	Commitment	 
	1	 	Actagro, LLC	 	Term Loan	 	 	3,161,279.86	 
	2	 	Aero-Metric, Inc.	 	Term Loan	 	 	2,626,807.23	 
	3	 	B&B Electronics Manufacturing Company	 	Term Loan A	 	 	2,394,307.01	 
	4	 	Elgin Fasteners Group	 	Term Loan	 	 	4,646,932.18	 
	5	 	Inhance Technologies Holdings LLC	 	Term Loan A	 	 	2,340,144.19	 
	6	 	MYI Acquiror Limited	 	Term Loan A	 	 	4,850,282.42	 
	7	 	NHR Holdings, LLC	 	Term Loan A	 	 	2,023,929.60	 
	8	 	NHR Holdings, LLC	 	Term Loan B	 	 	2,051,640.96	 
	9	 	Phoenix Brands LLC	 	Term Loan A	 	 	1,188,677.50	 
	10	 	Strata Pathology Services, Inc.	 	Term Loan	 	 	4,036,851.06	 
	11	 	VanDeMark Chemical Inc.	 	Term Loan	 	 	2,646,456.72	 
	12	 	Whitcraft LLC	 	Term Loan	 	 	3,622,324.99	 
	 	 	 	 	 	 	$	35,589,633.73	 

 

    	 

    	 

    

 

EXHIBIT B

 

See attached

 

    	 

    	 

    

 

	Issuer	 	Asset	 	Commitment	 	 	Price	 	 	% of Total	 
	1	 	Actagro, LLC	 	Term Loan	 	$	3,161,279.86	 	 	 	99.6230594	%	 	 	16.31	%
	2	 	Elgin Fasteners Group	 	Term Loan	 	 	4,646,932.18	 	 	 	98.7000000	%	 	 	23.98	%
	3	 	MYI Acquiror Limited	 	Term Loan A	 	 	4,850,282.42	 	 	 	99.0946347	%	 	 	25.03	%
	4	 	NHR Holdings, LLC	 	Term Loan A	 	 	2,023,929.60	 	 	 	98.0218037	%	 	 	10.44	%
	5	 	NHR Holdings, LLC	 	Term Loan B	 	 	2,051,640.96	 	 	 	98.0218037	%	 	 	10.59	%
	6	 	VanDeMark Chemical Inc.	 	Term Loan	 	 	2,646,456.72	 	 	 	100.0000000	%	 	 	13.66	%
	 	 	 	 	 	 	$	19,380,521.75	 	 	 	98.9842284	%	 	 	100.00	%

 

    	 

    	 

    

 

APPENDIX A

 

FEES

 

The Company and OFS Capital, jointly and severally, shall pay
or cause to be paid to the Loan Administrator the Loan Administration Fee and the Reporting Fee on each Payment Date commencing
on the Payment Date in July, 2015.

 

As of each Payment Date, the Loan Administrator shall calculate
the Loan Administration Fee and the Reporting Fee payable as of such Payment Date and shall deliver a statement showing the calculation
of such amounts to the Company. The Company shall promptly review such statement, and upon its approval, shall make or cause to
be made the required payments.

 

The Loan Administration Fee and the Reporting Fee to be paid
hereunder will be sent via the following wire instructions:

 

	Account Name: 	MADISON CAPITAL FUNDING LLC
	Bank: 	JPMorgan Chase Bank
	 	270 Park Ave
	 	New York, NY 10017
	ABA: 	021000021
	Account number: 	304938610
	Reference:	OFS FeesExhibit 10.1

 

ECHO GLOBAL LOGISTICS, INC.

2015 INDUCEMENT AND RETENTION STOCK PLAN

FOR COMMAND EMPLOYEES

 

(effective June 1, 2015)

 

 

ECHO GLOBAL LOGISTICS, INC.

2015 INDUCEMENT AND RETENTION STOCK PLAN

FOR COMMAND EMPLOYEES

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
Article 1.
    	
Establishment, Objectives and Duration
    	
1
    
	
Article 2.
    	
Definitions
    	
1
    
	
Article 3.
    	
Administration
    	
5
    
	
Article 4.
    	
Shares Subject to the Plan and Maximum   Awards
    	
6
    
	
Article 5.
    	
Eligibility and Participation
    	
7
    
	
Article 6.
    	
Restricted Stock
    	
7
    
	
Article 7.
    	
Beneficiary Designation
    	
8
    
	
Article 8.
    	
Rights of Participants
    	
8
    
	
Article 9.
    	
Amendment, Modification and Termination
    	
8
    
	
Article 10.
    	
Date of Grant
    	
9
    
	
Article 11.
    	
Nontransferability of Awards
    	
9
    
	
Article 12.
    	
Withholding
    	
9
    
	
Article 13.
    	
Indemnification
    	
9
    
	
Article 14.
    	
Successors
    	
10
    
	
Article 15.
    	
Breach of Restrictive Covenants
    	
10
    
	
Article 16.
    	
Legal Construction
    	
10
    
	
EXHIBIT A
    	
 
    	
12
    

 

 

ECHO GLOBAL LOGISTICS, INC.

2015 INDUCEMENT AND RETENTION STOCK PLAN
 FOR COMMAND EMPLOYEES

 

Article 1.                                            Establishment, Objectives and Duration

 

1.1                               Establishment of the Plan.  The “independent directors” within the meaning of the NASDAQ marketplace rules (the “Independent Directors”) of the Board of Directors of Echo Global Logistics, Inc., a Delaware corporation, hereby establishes this Echo Global Logistics, Inc. 2015 Inducement and Retention Stock Plan for Command Employees (the “Plan”) as set forth herein.  Capitalized terms used but not otherwise defined herein will have the meanings given to them in Article 2.  The Plan permits the grant of Restricted Stock.  The Plan will not be effective until the Committee has approved the Plan and until the Acquisition (as defined in Article 2) has been consummated.

 

1.2                               Purpose of the Plan.  The purpose of the Plan is to provide Awards of Restricted Stock to certain persons employed by Command Transportation, LLC (“Command”) in connection with the Acquisition, as an inducement material to those persons entering into employment or continuing employment with the Company or its current or future Affiliates upon the consummation of the Acquisition, and to promote the success and enhance the value of the Company by linking the personal interests of Participants to those of Company stockholders. The Plan is intended to comply with The NASDAQ Stock Market (“NASDAQ”) Listing Rule 5635(c)(4), which provides an exception to the NASDAQ shareholder approval requirement for the issuance of securities with regard to grants to prospective employees of the Company, including without limitation grants to prospective employees in connection with a merger or other acquisition.

 

1.3                               Duration of the Plan. The Plan will commence on the Effective Date, as described in Article 2, and will remain in effect, subject to the right of the Committee to amend or terminate the Plan at any time pursuant to Article 9, for a term of 10 years after the Effective Date.

 

Article 2.                                            Definitions

 

Whenever used in the Plan, the following terms have the meanings set forth below, and when the meaning is intended, the initial letter of the word is capitalized:

 

“Acquisition” means the transactions contemplated under the Acquisition Agreement.

 

“Acquisition Agreement” means the Unit Purchase Agreement by and among the Company, Command, the Members of Command, Paul Loeb, as Sellers’ Representative, and Paul Loeb, in his individual capacity, concerning the sale of membership units of Command, dated as of April 20, 2015.

 

“Affiliate” means, for all purposes hereunder, an entity that is (directly or indirectly) controlled by the Company.

 

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“Award” means, individually or collectively, a grant under this Plan to a Participant of Restricted Stock.

 

“Award Agreement” means an agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award or Awards granted to the Participant.

 

“Board” or “Board of Directors” means the Board of Directors of the Company.

 

“Cause” shall have the meaning set forth in any written employment agreement between the Participant and the Company or an Affiliate.  If there is no written employment agreement between the Participant and the Company or an Affiliate, or if such agreement does not define “Cause,” then “Cause” shall have the meaning specified by the Committee in connection with the grant of any Award; provided, that if the Committee does not so specify, “Cause” shall mean the Participant’s:

 

(a)                                 willful neglect of or continued failure to substantially perform his or her duties with or obligations for the Company or an Affiliate in any material respect (other than any such failure resulting from his or her incapacity due to physical or mental illness);

 

(b)                                 commission of a willful or grossly negligent act or the willful or grossly negligent omission to act that causes or is reasonably likely to cause material harm to the Company or an Affiliate; or

 

(c)                                  commission or conviction of, or plea of nolo contendere to, any felony or any crime materially injurious to the Company or an Affiliate.

 

An act or omission is “willful” for this purpose if it was knowingly done, or knowingly omitted, by the Participant in bad faith and without reasonable belief that the act or omission was in the best interest of the Company or an Affiliate.  Determination of Cause shall be made by the Committee in its sole discretion, and may be applied retroactively if, after the Participant terminates Service, it is discovered that Cause occurred during Participant’s Service.

 

“Change in Control” means the occurrence of any one or more of the following:

 

(a)                                 An effective change of control pursuant to which any person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) beneficial ownership of stock of the Company representing more than thirty-five percent (35%) of the voting power of the Company’s then outstanding stock; provided, however, that a Change in Control shall not be deemed to occur by virtue of any of the following acquisitions: (i) by the Company or any Affiliate, (ii) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, (iii) by any underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) by any Incumbent Stockholders (as defined below);

 

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(b)                                 Any person or persons acting as a group (in each case, other than any Incumbent Stockholders) acquires beneficial ownership of Company stock that, together with Company stock already held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or voting power of the Company’s then outstanding stock. The acquisition of Company stock by the Company in exchange for property, which reduces the number of outstanding shares and increases the percentage ownership by any person or group to more than 50% of the Company’s then outstanding stock will be treated as a Change in Control;

 

(c)                                  Individuals who constitute the Board immediately after the Effective Date (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board during any 12-month period; provided, however, that any person becoming a Director subsequent thereto whose election or nomination for election was approved by a vote of a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for Director, without written objection to such nomination) shall be an Incumbent Director, provided that no individual initially elected or nominated as a Director of the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director; or

 

(d)                                 Any person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value of at least forty percent (40%) of the total gross fair market value of all the assets of the Company immediately prior to such acquisition. For purposes of this section, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, without regard to any liabilities associated with such assets. The event described in this paragraph (d) shall not be deemed to be a Change in Control if the assets are transferred to (i) any owner of Company stock in exchange for or with respect to the Company’s stock, (ii) an entity in which the Company owns, directly or indirectly, at least fifty percent (50%) of the entity’s total value or total voting power, (iii) any person that owns, directly or indirectly, at least fifty percent (50%) of the Company stock, or (iv) an entity in which a person described in (d)(iii) above owns at least fifty percent (50%) of the total value or voting power. For purposes of this section, and except as otherwise provided, a person’s status is determined immediately after the transfer of the assets.

 

In no event will a Change in Control be deemed to have occurred, with respect to the Participant, if an employee benefit plan maintained by the Company or an Affiliate or the

 

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Participant is part of a purchasing group that consummates the transaction that would otherwise result in a Change in Control. The employee benefit plan or the Participant will be deemed “part of a purchasing group” for purposes of the preceding sentence if the plan or the Participant is an equity participant in the purchasing company or group, except where participation is: (i) passive ownership of less than two percent (2%) of the stock of the purchasing company; or (ii) ownership of equity participation in the purchasing company or group that is otherwise not significant, as determined prior to the Change in Control by a majority of the non-employee continuing directors.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

“Command” shall have the meaning set forth in Section 1.2.

 

“Committee” shall mean the Compensation Committee of the Board of Directors, the composition of which shall consist of at least two directors who are “independent directors” within the meaning of the NASDAQ marketplace rules and “non-employee directors” within the meaning of Exchange Act Rule 16b-3, or in lieu of the Compensation Committee of the Board of Directors, the Independent Directors.

 

“Company” means Echo Global Logistics, Inc., a Delaware corporation, and any successor thereto as provided in Article 14.

 

“Director” means any individual who is a member of the Board of Directors.

 

“Disability” shall mean:

 

(a)                                 A physical or mental condition that would qualify a Participant for a disability benefit under the long-term disability plan of the Company or an Affiliate applicable to him or her; or

 

(b)                                 If the Participant is not covered by such a long-term disability plan, disability as defined for purposes of eligibility for a disability award under the Social Security Act.

 

“Effective Date” means the Closing Date as such term is defined in Section 2.4 of the Acquisition Agreement.

 

“Employee” means an employee of Command or one of its Subsidiaries immediately prior to the Acquisition who is identified on Exhibit A to the Plan.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

“Fair Market Value” of a Share on any given date means the last reported sales price on the NASDAQ or such other exchange on the date in question.

 

“Independent Directors” has the meaning set forth in Section 1.1.

 

“NASDAQ” shall have the meaning set forth in Section 1.2.

 

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“Participant” means an Employee who the Committee has selected to participate in the Plan pursuant to Section 5.2 and who has an Award outstanding under the Plan.

 

“Plan” means the Echo Global Logistics, Inc. 2015 Inducement and Retention Stock Plan for Command Employees, as set forth in this document, and as amended from time to time.

 

“Restriction Period” means the period during which the transfer of Restricted Stock is limited in some way (based on the passage of time or the occurrence of other events as determined by the Committee, in its sole discretion) or the Restricted Stock is not vested.

 

“Restricted Stock” means a contingent grant of Shares awarded to a Participant pursuant to Article 6.  The Shares awarded to the Participant will vest over the Restriction Period and according to the time-based criteria specified in the Award Agreement.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor act thereto.

 

“Service” means the provision of services by a Participant to the Company or an Affiliate in the capacity of an employee.  For purposes of this Plan, the transfer of a Participant from the Company to an Affiliate, from an Affiliate to the Company or from an Affiliate to another Affiliate shall not be a termination of Service.  However, if the Affiliate for which such Participant is providing services ceases to be an Affiliate of the Company due to a sale, transfer or other reason, and such Participant ceases to perform services for the Company or any Affiliate, such Participant shall incur a termination of Service.

 

“Shares” means the shares of common stock, $0.0001 par value of the Company, or any successor or predecessor equity interest in the Company.

 

“Subsidiary” means a “subsidiary corporation” whether now or hereafter existing, as defined in Code Section 424(f).

 

Article 3.                                            Administration

 

3.1                               The Committee.  The Plan will be administered by the Committee, or by the Independent Directors or any other committee appointed by the Board whose composition satisfies the “nonemployee director” requirements of Rule 16b-3 under the Exchange Act and the regulations of Rule 16b-3 under the Exchange Act and the “independent director” requirements of the NASDAQ marketplace rules, or any successor regulations or provisions.

 

3.2                               Authority of the Committee.  Except as limited by law and subject to the provisions of this Plan, the Committee will have full power to: select the persons to whom Awards may be granted hereunder prior to the consummation of the Acquisition with the grant of such Award effective upon the consummation of the Acquisition and subject to such person commencing employment with the Company or an Affiliate; determine the sizes of Awards; determine the terms and conditions of Awards in a manner consistent with the Plan; construe and interpret the Plan and any agreement or instrument entered into under the Plan; establish, amend or waive rules and regulations for the Plan’s administration; and (subject to the provisions of Article 9) amend the terms and conditions of the Plan to the extent such amendment is within the discretion of the Committee as provided in the Plan.  Further, the Committee will make all other

 

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determinations that may be necessary or advisable to administer the Plan.  As permitted by law and consistent with Section 3.1, the Committee may delegate some or all of its authority under the Plan, including to an officer of the Company to designate the Employees (other than such officer himself or herself) to receive Awards and to determine the number of Shares subject to the Awards such Employees will receive.

 

The duties of the Committee or its delegatee shall also include, but shall not be limited to, making disbursements and settlements of Awards, creating trusts, and determining whether to defer or accelerate the vesting of, or the lapsing of restrictions or risk of forfeiture with respect to Restricted Stock.  Subject only to compliance with the express provisions of the Plan, the Committee or its delegatee may act in its, his, or her sole and absolute discretion in performing the duties specifically set forth in the preceding sentence and other duties under the Plan.

 

3.3                               Decisions Binding.  All determinations and decisions made by the Committee pursuant to the provisions of the Plan will be final, conclusive and binding on all persons, including, without limitation, the Company, its Board of Directors, its stockholders, all Affiliates, Employees, Participants and their estates and beneficiaries.

 

3.4                               Change in Control.  In the event of a Change in Control, the Committee shall have the discretion to accelerate the vesting of Awards, eliminate any restrictions applicable to Awards, or take such other action as it deems appropriate, in its sole discretion.

 

Article 4.                                            Shares Subject to the Plan and Maximum Awards

 

4.1                               Number of Shares Available for Awards.  Subject to adjustment as provided below and in Sections 4.2 and 4.3, the maximum number of Shares that may be issued or transferred to Participants under the Plan will be 503,826.

 

4.2                               Lapsed Awards.  Any Shares (a) subject to an Award under the Plan that, after the Effective Date, are forfeited, canceled, settled or otherwise terminated without a distribution of Shares to a Participant; or (b) delivered by attestation to, or withheld by, the Company in payment of any required income tax withholding for the vesting of Restricted Stock awarded under the Plan will thereafter not be deemed to be available for Awards.

 

4.3                               Adjustments in Authorized Shares.

 

(a)                                 In the event of any merger, reorganization, consolidation, recapitalization, separation, liquidation, split-up, share combination, or other such change in the corporate structure of the Company affecting the Shares, such adjustment shall be made in the number and class of Shares which may be delivered under the Plan, and in the number and class of and/or price of Shares subject to outstanding Awards granted under the Plan, as may be determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent dilution or enlargement of rights and provided that the number of Shares subject to any Award shall always be a whole number.

 

(b)                                 Fractional Shares resulting from any adjustment in Awards pursuant to this section may be settled in cash or otherwise as the Committee determines.  The Company will give notice of any adjustment to each Participant who holds an

 

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Award that has been adjusted and the adjustment (whether or not that notice is given) will be effective and binding for all Plan purposes.

 

Article 5.                                            Eligibility and Participation

 

5.1                               Eligibility.  Awards may be granted only to Employees and shall be granted as an inducement material to such Employees entering into employment with the Company or an Affiliate upon the consummation of the Acquisition.  Awards shall not become effective until the consummation of the Acquisition and the Participant’s commencement of employment with the Company or an Affiliate.  No Award shall be granted hereunder after the consummation of the Acquisition, and no Award shall be granted hereunder to any individual who is employed by, or who is rendering services to, the Company or an Affiliate immediately prior to the Acquisition.

 

5.2                               Actual Participation.  Subject to the provisions of the Plan, the Committee will select those Employees to whom Awards will be granted and will determine the nature and amount of each Award.

 

Article 6.                                            Restricted Stock

 

6.1                               Grant of Restricted Stock.  Subject to the terms and provisions of the Plan, the Committee may, at any time and from time to time, grant Restricted Stock to Participants in such amounts as it determines.

 

6.2                               Award Agreement.  Each grant of Restricted Stock will be evidenced by an Award Agreement that specifies the Restriction Periods, the number of Shares granted, and such other provisions as the Committee determines.

 

6.3                               Other Restrictions.  The Committee may impose such other conditions or restrictions on any Restricted Stock as it deems advisable, including, without limitation, restrictions under applicable federal or state securities laws.  The Committee may provide that restrictions established under this Section 6.3 as to any given Award will lapse all at once or in installments.  The Company will retain the certificates representing Shares of Restricted Stock in its possession until all conditions and restrictions applicable to the Shares have been satisfied.

 

6.4                               Payment of Awards.  Except as otherwise provided in this Article 6, Shares covered by each Restricted Stock grant will become freely transferable by the Participant after the last day of the applicable Restriction Period.

 

6.5                               Voting Rights.  During the Restriction Period, Participants holding Shares of Restricted Stock may exercise full voting rights with respect to those Shares.

 

6.6                               Dividends and Other Distributions.  Except as may otherwise be provided in an Award Agreement:

 

(a)                             During the Restriction Period, Participants awarded Shares of Restricted Stock hereunder will be credited with regular cash dividends paid on those Shares.

 

(b)                                 Dividends on vested Shares shall be paid as soon as practicable as dividends are received by other Company stockholders.

 

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(c)                                  Dividends on unvested Shares shall be subject to the same vesting conditions as the underlying Shares, and will be targeted to be paid within 2-1/2 months following the end of the calendar year in which the underlying Shares vest, but shall be paid no later than the end of the calendar year following the year in which the underlying Shares vest.

 

6.7                               Termination of Service.  Each Award Agreement will set forth the extent to which the Participant has the right to retain unvested Restricted Stock after his or her termination of Service.  These terms will be determined by the Committee in its sole discretion, need not be uniform among all Awards of Restricted Stock, and may reflect, among other things, distinctions based on the reasons for termination of Service.

 

Article 7.                                            Beneficiary Designation

 

Each Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case the Participant should die before receiving any or all of his or her Plan benefits.  Each beneficiary designation will revoke all prior designations by the same Participant, must be in a form prescribed by the Committee, and must be made during the Participant’s lifetime.  If the Participant’s designated beneficiary predeceases the Participant or no beneficiary has been designated, benefits remaining unpaid at the Participant’s death will be paid to the Participant’s estate or other entity described in the Participant’s Award Agreement.

 

Article 8.                                            Rights of Participants

 

8.1                               Employment and Service.  Nothing in the Plan will confer upon any Participant any right to continue in the employ or Service of the Company or any Affiliate, or interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s employment or Service at any time.

 

8.2                               Participation.  No Employee will have the right to receive an Award under this Plan, or, having received any Award, to receive a future Award.

 

Article 9.                                            Amendment, Modification and Termination

 

9.1                               Amendment, Modification and Termination.  The Committee may at any time and from time to time, alter, amend, modify or terminate the Plan in whole or in part; provided, however, that the Committee will not amend the Plan in any way that would require approval of the Company’s stockholders. Notwithstanding the foregoing, no amendment under the Plan or a termination of the Plan will materially alter or impair any rights or obligations under any Award already granted under the Plan, without the prior written consent of the Participant.

 

9.2                               Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.  In recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.3) affecting the Company or its financial statements, or in recognition of changes in applicable laws, regulations, or accounting principles, and, whenever adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, the Committee shall, using

 

8

 

reasonable care, make adjustments in the terms and conditions of, and the criteria included in, Awards, as may be determined to be appropriate and equitable by the Committee.

 

Article 10.                                     Date of Grant.

 

The date of grant of an Award shall be the date, upon consummation of the Acquisition, when the Participant commences employment with the Company or an Affiliate.  Notice of the determination shall be provided to each Participant within a reasonable time after the date of grant.  Promptly following the date of grant of any Award hereunder, the Company shall disclose in a press release in compliance with NASDAQ Listing Rule 5635(c)(4) the material terms of the Awards, the number of Employees and the number of Shares involved.

 

Article 11.                                     Nontransferability of Awards.

 

Except as otherwise provided in a Participant’s Award Agreement, no Restricted Stock granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, or pursuant to a domestic relations order (as defined in Code Section 414(p)).  All rights with respect to Restricted Stock will be available during the Participant’s lifetime only to the Participant or his or her guardian or legal representative.  The Participant’s beneficiary may exercise the Participant’s rights to the extent they are exercisable under the Plan following the Participant’s death.  The Committee may, in its discretion, require a Participant’s guardian, legal representative or beneficiary to supply it with the evidence the Committee deems necessary to establish the authority of the guardian, legal representative or beneficiary to act on behalf of the Participant.

 

Article 12.                                     Withholding

 

12.1                        Tax Withholding.  The Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, the minimum amount necessary to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising under this Plan.

 

12.2                        Share Withholding.  With respect to withholding required upon the lapse of restrictions on Restricted Stock, or upon any other taxable event arising as a result of Awards granted hereunder, the Company may satisfy the minimum withholding requirement for supplemental wages, in whole or in part, by withholding Shares having a Fair Market Value (determined on the date the Participant recognizes taxable income on the Award) equal to the minimum withholding tax required to be collected on the transaction.  The Participant may elect, subject to the approval of the Committee, to deliver the necessary funds to satisfy the withholding obligation to the Company, in which case there will be no reduction in the Shares otherwise distributable to the Participant.

 

Article 13.                                     Indemnification

 

Each person who is or has been a member of the Committee or the Board, and any officer or Employee to whom the Committee has delegated authority under Section 3.1 or 3.2 of the Plan, will be indemnified and held harmless by the Company from and against any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in

 

9

 

connection with or as a result of any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken, or failure to act, under the Plan.  Each such person will also be indemnified and held harmless by the Company from and against any and all amounts paid by him or her in a settlement approved by the Company, or paid by him or her in satisfaction of any judgment, of or in a claim, action, suit or proceeding against him or her and described in the previous sentence, so long as he or she gives the Company an opportunity, at its own expense, to handle and defend the claim, action, suit or proceeding before he or she undertakes to handle and defend it.  The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which a person who is or has been a member of the Committee or the Board may be entitled under the Company’s Certificate of Incorporation or By-Laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify him or her or hold him or her harmless.

 

Article 14.                                     Successors

 

All obligations of the Company under the Plan or any Award Agreement will be binding on any successor to the Company, whether the existence of the successor results from a direct or indirect purchase of all or substantially all of the business or assets of the Company or both, or a merger, consolidation, or otherwise.

 

Article 15.                                     Breach of Restrictive Covenants

 

An Award Agreement may provide that, notwithstanding any other provision of this Plan to the contrary, if the Participant breaches any non-competition, non-solicitation, non-disclosure, no-hire or other restrictive covenant provisions contained in the Award Agreement or in any written employment or other written agreement between the Participant and the Company, whether prior to or following termination of Service, the Participant will forfeit any and all Awards granted or transferred to him or her under the Plan.

 

Article 16.                                     Legal Construction

 

16.1                        Number.  Except where otherwise indicated by the context, any plural term used in this Plan includes the singular and any singular term includes the plural.

 

16.2                        Severability.  If any provision of the Plan is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provision had not been included.

 

16.3                        Requirements of Law.  The granting of Awards and the issuance of Share or cash payouts under the Plan will be subject to all applicable laws, rules, and regulations, and to any approvals by governmental agencies or national securities exchanges as may be required.

 

16.4                        Securities Law Compliance.  As to any individual who is, on the relevant date, an officer, director or more than ten percent beneficial owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, all as defined under Section 16 of the Exchange Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 under the Exchange Act, or any successor rule.  To the extent any provision of the Plan or action by the Committee fails to so comply, it will be deemed null and void, to the extent permitted by law and deemed advisable by the Committee.

 

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The Company may require a Participant to make written representations it deems necessary or desirable to comply with applicable securities laws.  No person who acquires Shares under the Plan may sell the Shares, unless he or she makes the offer and sale pursuant to an effective registration statement under the Exchange Act, which is current and includes the Shares to be sold, or an exemption from the registration requirements of the Securities Act.

 

16.5                        Unfunded Status of the Plan.  The Plan is intended to constitute an “unfunded” plan for incentive compensation.  With respect to any payments or deliveries of Shares not yet made to a Participant by the Company, the Participant’s rights are no greater than those of a general creditor of the Company.  The Committee may authorize the establishment of trusts or other arrangements to meet the obligations created under the Plan, so long as the arrangement does not cause the Plan to lose its legal status as an unfunded plan.

 

16.6                        Governing Law.  To the extent not preempted by federal law, the Plan and all agreements hereunder will be construed in accordance with and governed by the laws of the State of Illinois.

 

16.7                        Electronic Delivery and Evidence of Award.  The Company may deliver by email or other electronic means (including posting on a web site maintained by the Company or by a third party) all documents relating to the Plan or any Award hereunder (including, without limitation, any Award Agreement and prospectus required by the SEC) and all other documents that the Company is required to deliver to its securities holders (including, without limitation, annual reports and proxy statements).  In addition, evidence of an Award may be in electronic form, may be limited to notation on the books and records of the Company and, with the approval of the Board, need not be signed by a representative of the Company or a Participant.  Any Shares that become deliverable to the Participant pursuant to the Plan may be issued in certificate form in the name of the Participant or in book entry form in the name of the Participant.

 

16.8                        No Limitation on Rights of the Company.  The grant of the Award does not and will not in any way affect the right or power of the Company to make adjustments, reclassifications or changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

16.9                        Participant to Have No Rights as a Stockholder.  Before the date as of which he or she is recorded on the books of the Company as the holder of any Shares underlying an Award, a Participant will have no rights as a stockholder with respect to those Shares.

 

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EXHIBIT A

EMPLOYEES

 

	
Brian   Rudich
    
	
Kevin   Broude
    
	
David   Ardell
    
	
Phillip   Broering
    
	
Andrew   Bennett
    
	
Justin   Loeb
    
	
Andrew   Hafertepe
    
	
Andrew   Kimelman
    
	
Bradley   Jerwick
    
	
Adam   Markman
    
	
Josh   Wesolowski
    
	
Brett   Stein
    
	
Michael   Zamost
    
	
Alexander   Nienberg
    
	
Matthew   Haydock
    
	
Justin   Frees
    
	
John   Pavlick
    
	
Timothy   Tolari
    
	
Mangirdas   Pranckevicius
    
	
David   Paciga
    
	
Scott   Carlson
    
	
Patrick   O’Connor
    
	
Brian   Oberman
    
	
John   Ashman
    
	
Scott   Fisher
    
	
Brian   Goldstein
    
	
Gerald   Privasky
    
	
Mitchell   Celik
    
	
Mark   Snyder
    
	
Patrick   Vallely
    
	
Lewis   Dowell
    
	
John   Cameli
    
	
Daniel   Zamost
    
	
Scott   Gordon
    
	
John   Callas
    

 

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