Document:

Exhibit

SEPARATION AND CONSULTING AGREEMENT

This SEPARATION AND CONSULTING AGREEMENT (the “Agreement”) is entered into as of the last date on the signature page(s) attached hereto, by and between Andrew Puhala (the “Employee”) and Era Helicopters, LLC, a Delaware limited liability company (the “Company”).

WHEREAS, the Employee has served as the Company’s Senior Vice President, Chief Financial Officer since September 14, 2015;

WHEREAS, the Company and the Employee are not parties to an employment agreement or other contractual understanding regarding the employment of the Employee, and the employment of the Employee is an “employee at will” and may be terminated at any time by either party for any reason;
    
WHEREAS, the parties have determined by mutual agreement that the employment of Employee shall be terminated, and that the Employee shall continue in a consulting capacity with the Company, on the terms set forth in this Agreement; and

WHEREAS, the parties agree to resolve any and all issues or disputes that may presently exist, or that may later arise out of the circumstances surrounding the Employee's employment with or termination from the Company.

NOW THEREFORE, in consideration of the premises and the covenants herein, the sufficiency of which is hereby acknowledged, the Employee and the Company agree as follows:

1.    Termination of Employment

The Employee's employment with the Company and its affiliates shall cease effective as of June 16, 2017 (the “Termination Date”).  Effective as of the Termination Date, the Employee hereby resigns from all his positions with the Company and its current and former parents, subsidiaries and affiliates (each entity individually, and collectively, the “Company Group”).  From and after the Termination Date, the Employee shall not hold any office or title with the Company Group, except as a consultant pursuant to Section 3 hereof.  The Employee further agrees that, following the Termination Date, he will have no authority to act on the Company’s behalf and that he will not hold himself out to any third party as an agent or employee of the Company, other than as specifically mutually agreed between the Company and the Employee during his term as a consultant to the Company hereunder.

2.    Payments and Benefits
    
		
	(a)
	Accrued Salary and Vacation. The Company shall pay to the Employee (i) earned but unpaid salary through the Termination Date; and (ii) pay in respect of the previously accrued but unused vacation days as of the Termination Date, in each case, less applicable withholdings and deductions as provided herein, in accordance with the Company’s past practice.  

		
	(b)
	Continued Health Benefits. The Employee and his eligible dependents shall be entitled to continue to participate in the Company's health and dental insurance plans (collectively, “Health Plans”) at the full applicable Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) rate for the applicable COBRA period. The Employee shall be responsible for all payments related to COBRA continuation coverage and for completing and submitting all applicable enrollment documents as required by the administrator. The Employee's participation in the Health Plans shall otherwise be subject to the terms and conditions of the Health Plans as applicable to employees generally from time 

to time, including the right of the Company to amend or terminate the Health Plans.

		
	(c)
	Incentive Bonus.  Subject to the terms of this Agreement, the Company shall pay to the Employee an amount equal to $65,000.00, less applicable withholdings and deductions as provided herein, in accordance with the Company’s past practice, in recognition for the Employee’s efforts during the portion of fiscal year 2017 during which the Employee was employed by the Company (the “FY2017 Pro Rated Bonus”).  The FY2017 Pro Rated Bonus will be paid on the first applicable pay date following the termination of the Consulting Period for any reason other than pursuant to the Company’s election to terminate the Consulting Services upon a breach of the terms of this Agreement by the Employee.  

		
	(d)
	Deferred Incentive Bonus.  Subject to the terms of this Agreement, the Company shall pay to the Employee an amount equal to $42,835 in respect of the previously awarded but deferred annual cash incentive bonus awarded in respect of fiscal years 2015 and 2016, together with any and all interest payable thereon through the date of payment, calculated in in accordance with the Company’s past practice, less applicable withholdings and deductions (the “Deferred Bonus”).  The Deferred Bonus will be paid within seven (7) days following the Release Effective Date.    

		
	(e)
	Equity Awards. The Employee has previously been granted awards of restricted stock (the “Restricted Stock”) and stock options (“Stock Options”) with respect to the common stock of the Company pursuant to the terms of the Era Group Inc. 2012 Share Incentive Plan.  Effective upon the Termination Date, any shares of Restricted Stock that have not previously become vested shall become vested and non-forfeitable and any Stock Options that have not previously become vested shall become vested and shall remain exercisable until the earlier of (A) ninety (90) days following the end of the Consulting Period or (B) the expiration of the original term of the applicable Stock Option, in each case, in accordance with the treatment contemplated under terms of the applicable award agreement upon a “termination without Cause.”  Except to the extent modified hereby, the Restricted Stock and Stock Options shall continue to be subject to the terms and conditions as provided by the respective award agreements for each such award and the plan pursuant to which each award is granted.

		
	(f)
	No Additional Benefits. The Employee acknowledges and agrees that, except as provided in this Section 2, the Employee's participation as an active employee under any benefit plan, program, policy or arrangement sponsored or maintained by the Company Group shall cease and be terminated as of the Termination Date. Without limiting the generality of the foregoing, the Employee's eligibility for and active participation in any of the tax-qualified plans maintained by the Company Group will end on the Termination Date and the Employee will earn no additional benefits under those plans after that date. The Employee shall be treated as a terminated employee for purposes of all such benefit plans and programs effective as of the Termination Date, and shall receive all payments and benefits due to him under such plans and programs in accordance with the terms and conditions thereof.

		
	(g)
	Acknowledgement. The Employee understands and agrees that absent this Agreement, he would not otherwise be entitled to any payments and benefits as set forth in Sections 2(c) and 3 and his right to receive the payments and benefits set forth herein shall be an unsecured contractual obligation of the Company and he shall have no greater rights than any other employee, consultant or general unsecured creditor of the Company.

		
	(h)
	Tax Withholding. Notwithstanding anything contained herein to the contrary, all payments made by the Company or its subsidiaries to the Employee pursuant to this Section 2 shall be reduced by applicable tax withholdings and any other deductions required by law.

3.    Consulting Services

		
	(a)
	Consulting Period. The Employee shall be retained by the Company as a consultant for the period commencing on the Release Effective Date and terminating on the 4-month anniversary of the Release Effective Date, subject to early termination pursuant to Section 3(h) below (as applicable, the “Consulting Period”). 

		
	(b)
	Scope of Consulting Services. During the Consulting Period, the Employee shall consult with the Company Group and its executive officers on an as-needed basis regarding the business and operations of the Company and the Company Group, as well as the transition of duties of the Employee to other employees of the Company (the “Consulting Services”). The Employee shall report directly to, and shall perform the Consulting Services as directed by, the President and Chief Executive Officer of the Company, or such other officer or director of the Company Group as may be determined from time to time by the Company, in its sole discretion.  During the Consulting Period and thereafter, the Employee also will cooperate with the Company and its affiliates in any pending or future litigation or investigations or other disputes concerning third parties in which the Employee, by virtue of his prior employment with or service to the Company or its subsidiaries, affiliates or predecessors, has relevant knowledge or information; provided however that Employee shall be reimbursed for his time at an hourly rate equivalent to his current effective hourly rate and previously approved expenses in connection with such cooperation provided following the end of the Consulting Period. In connection with providing the Consulting Services, the Employee shall comply in full with all applicable law, and rules and regulations and with the Company Group's Code of Business Conduct & Ethics (as such Code applies to consultants of the Company).

		
	(c)
	Confidential Information.  In connection with the Consulting Services described herein, the Employee will receive, and the Company hereby agrees to provide, certain Company Information (as defined in Section 5(a)(i) below) on an as-needed basis during the term of the Consulting Period.  The Employee agrees to be bound by the terms of Section 5(a) below, and further promises that he will not disclose such Confidential Information to any person inside or outside the Company without its express written consent to do so, and further agrees that he will not use the Confidential Information for any purpose other than the performance of the Consulting Services.

		
	(d)
	Performance of Consulting Services. The Consulting Services shall be required at such times and such places as shall not result in unreasonable inconvenience to the Employee, recognizing the Employee's other business commitments that he may have to accord priority over the performance of the Consulting Services. In order to minimize interference with the Employee's other commitments, the Consulting Services, to the extent practicable and not prejudicial to the Company Group, may be rendered by personal consultation at his residence or office wherever maintained, or by correspondence through mail, telephone, e-mail or other similar mode of communication at times most convenient to him. It is hereby understood and agreed that during the Consulting Period, the Employee shall have the right to engage in full-time or part-time employment with other business enterprises; provided that the Employee does not breach the restrictive covenants set forth in Section 5 hereof. The parties hereto reasonably anticipate that the level of bona fide services that the Employee is to perform for the Company and its subsidiaries during the Consulting Period will not exceed more than twenty percent (20%) of the average level of bona fide services that the Employee performed for the Company and its subsidiaries over the immediately preceding 36-month period (or, if less, since the date the Employee commenced employment with the Company).

		
	(e)
	Status as Independent Contractor. The Employee acknowledges and agrees that his status at all times during the Consulting Period shall be that of an independent contractor, and that he may not, at any time, act as a representative for or on behalf of the Company Group for any purpose or transaction, and may not bind or otherwise obligate the Company Group in any manner whatsoever without obtaining the prior written approval of an authorized representative of the Company Group therefor. The Employee hereby waives any rights to be treated as an employee or deemed employee of the Company Group for any purpose during the Consulting Period, and that he shall not be entitled to the benefits of being an employee or deemed employee of the Company Group during the Consulting Period. The Employee hereby acknowledges and agrees that, except as provided in Section 2(c) hereof, he shall not be eligible for, shall not actively participate in, and shall not otherwise accrue benefits under, any of the Company Group's benefit plans during the Consulting Period.

		
	(f)
	Consulting Fees. In consideration for the Consulting Services, subject to the terms hereof, the Company shall pay the Employee a consulting fee of $22,916.67 per month for the Consulting Period (the “Consulting Fees”).  The Consulting Fees shall be paid to the Employee, in arrears, on or about the last business day of each month to which such Consulting Fees relate commencing with the last day of the month of the Release Effective Date and to the extent the Employee performs Consulting Services for only a portion of any month, the Consulting Fee payable to the Employee in respect of such month shall be pro-rated.  The parties hereby acknowledge and agree that the Consulting Fees shall not be deemed to be wages, and therefore, shall not be subject to any withholdings or deductions. The Employee will receive a Form 1099 with regard to the Consulting Fees, and the Employee shall be solely responsible for, and shall pay, all taxes assessed on such fees under the applicable laws of any federal, state, or local jurisdiction.

		
	(g)
	Expenses. The Company will be responsible for any reasonable and necessary out-of-pocket expenses incurred by the Employee during the Consulting Period that are directly related to the provision of Consulting Services by the Employee 

in accordance with the Company's standard expense reimbursement policies applicable to independent contractors, provided that (i) the incurrence of such expenses are approved in advance by the Company, and (ii) appropriate receipts and vouchers for such expenses are submitted to the Company within thirty (30) days after the expenses are incurred.

		
	(h)
	Early Termination. The Consulting Period shall continue for the term described in Section 3(a) unless terminated earlier upon the Employee’s death or Disability or upon the Company’s election to terminate the Consulting Services upon a breach of the terms of this Agreement by the Employee. In the event of any such termination, the Consulting Fees shall cease upon the date on which the termination occurs. For purposes of this Agreement, “Disability” shall be defined as a physical or mental impairment that prevents the Employee from performing the Consulting Services, as determined by the Company in its sole discretion.  

4.    Release of Claims

Notwithstanding anything to the contrary in this Agreement, the Company shall not be obligated to make any payment to the Employee under this Agreement until and unless the Employee shall have executed and delivered to the Company the Release of Claims attached hereto as Exhibit A (the “Release”) within seven (7) days following the Termination Date.  The Release becomes effective on the date of delivery of the executed Release to the Company (the “Release Effective Date”).  

The Company hereby provides the Employee the opportunity to review and consider this Agreement for seven (7) days from June 16, 2017, the date Employee receives this Agreement.  At the Employee’s option and sole discretion, the Employee may waive the seven (7) day review period and execute this Agreement before the expiration of seven (7) days.  In electing to waive the seven (7)  day review period, the Employee acknowledges and admits that he was given a reasonable period of time within which to consider this Agreement and his waiver is made freely and voluntarily, without duress or any coercion by any other person.

5.    Restrictive Covenants

In consideration of his rights and benefits under this Agreement, the Employee agrees as follows:

		
	(a)
	Non-disclosure. As a part of this Agreement, the Employee acknowledges that he is being compensated, in part, in consideration for not disclosing information about the Company Group. The Employee specifically acknowledges and agrees that:

(i)“Company Information” shall include all of the Company Group's trade secrets (that is, any information that derives independent economic value from not being generally known or readily ascertainable by the public, whether or not written or stored in any medium); the identity, preferences and selling and purchasing tendencies of actual Company Group suppliers and customers and their respective decision-makers; the Company's marketing plans, information and/or strategies for the development and growth of the Company Group's products, its business and/or its customer base; the terms of the Company Group's deals and dealings with its customers and suppliers; information regarding Company Group employees, including but not limited to their skills, training, contacts, prospects and abilities; the Company Group's training techniques and programs; the Company Group's costs, prices, technical data, inventory position and data processing and management information systems, programs, and practices; the 

Company Group's personnel policies and procedures and any other information regarding human resources at the Company Group that the Employee obtained in the course of his employment with the Company. To ensure the continued secrecy of Company Information, the Employee agrees that he will not divulge, furnish or make accessible to anyone, Company Information at any time (including both during and following the Consulting Period), except with the consent of or pursuant to the Company's instructions or pursuant to mandatory court order, subpoena or other legal process.

(ii)Upon the Termination Date, the Employee will immediately turn over to the Company any and all Company Information. The Employee agrees that he has no right to retain any copies of Company Information for any reason. Notwithstanding the foregoing provisions of this subsection (ii), during the Employee's provision of Consulting Services, the Company Group may provide the Employee certain Company Information, and this will not be a violation of this subsection (ii) for so long as the Company Group permits the Employee to retain such information and provided that the Employee immediately turns over to the Company any and all such Company Information upon the conclusion of the Consulting Services.  Notwithstanding the language set forth hereinabove, it is agreed that Employee will remove any Company Information from his mobile phone and other electronic devices and media.

		
	(b)
	Non-disparagement. The Employee agrees that he shall not make nor cause to be made any negative, adverse or derogatory comments or communications that could constitute disparagement of any member of the Company Group or their respective officers or directors, or that may be considered to be derogatory or detrimental to the good name or business reputation of any of the foregoing, including but not limited to the business affairs, financial condition or prospects of any of the Company Group, including comments to any media outlet, industry group, financial institution, client, customer or employee of the Company Group. The Company agrees that it will not make, and agrees to instruct the members of its board of directors, its executive officers and spokespersons of the Company Group to refrain from making, any external statements (or authorizing any statements to be reported as being attributed to the Company Group), that disparage, defame, or denigrate the Employee.  Nothing in this Section 5(b) shall be construed to prevent the Employee from providing information in any governmental agency or court proceeding to the extent required by law, or giving truthful testimony in response to direct questions asked pursuant to a lawful subpoena or other legal process.

		
	(c)
	Noncompetition. The Employee acknowledges that the Employee has and will continue to perform services of a unique nature for the Company that are irreplaceable, that he will receive Confidential Information in connection with his provision of these services, and the Employee's performance of such services to a competing business will result in irreparable harm to the Company. Accordingly, and ancillary to and in consideration for the mutual promises between the Employee and the Company contained in this Agreement (including, but not limited to, the Company’s promise to provide Confidential Information and the Employee’s promise not to disclose the same), the Employee agrees that the Employee will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or render services to any of the following entities or their affiliates: Bristow Group Inc., PHI, Inc., CHC Helicopter, HNZ Group, Gulf 

Helicopters, Omni, Paiwan Hans Helicopters Ltd., Heli-Union, Weststar, Pegaso, NHV, SonAir, Hevilift, Heliservicio, Blueway, MHS Aviation, Travira Air, Starlite Aviation Group, Senior Taxi Aereo, Helicol-Pas, Helistar, Heliportugal, Silkway, Bel Air, Global Vectra Helicorp Ltd., RLC, LLC, VIH Aviation Group, Milestone Aviation Group, Waypoint Leasing, Lease Corporation International, LOBO Leasing, Macquarie Rotocraft Leasing, and any entity, affiliate or principal of any entity leasing helicopter aircraft to or buying helicopter aircraft from any of the Company's leasing clients or any of their affiliates, subsidiaries and/or related entities, including any other person, firm, corporation or other entity, in whatever form, which following the date hereof is or subsequently becomes principally engaged in the business of providing helicopter aviation services (collectively, the “Prohibited Activities”) during the period from the date hereof until the later of (i) the last day of the Consulting Period and (ii) the 4-month anniversary of the Termination Date (in either case, the “Restricted Period”).  Notwithstanding the foregoing, nothing herein shall prohibit the Employee from being (i) a passive owner of not more than one percent (1%) of the equity securities of a publicly traded corporation engaged in the Prohibited Activities, so long as the Employee has no active participation in the business of such corporation; or (ii) employed by, or providing services to, a subsidiary, division or unit of any entity that engages in any such Prohibited Activities so long as the Employee does not provide any services to such portion of the entity's business that engages in such Prohibited Activities.

		
	(d)
	Nonsolicitation; Noninterference. During the period from the date hereof until the first anniversary of the Termination Date, the Employee agrees that the Employee shall not, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, (i) solicit, aid or induce any employee, representative or agent of the Company Group to leave such employment or retention or, in the case of employees, to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company Group, or hire or retain any such employee, or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or soliciting any such employee, or (ii) interfere, or aid or induce any other person or entity in interfering, with the relationship between the Company Group and any of their respective vendors, joint venturers or licensors.  An employee, representative or agent shall be deemed covered by this Section 5(d) while so employed or retained and for a period of six (6) months thereafter.

6.    Enforcement of Restrictions

		
	(a)
	Reasonableness. The Employee hereby acknowledges that: (i) the restrictions provided in this Agreement (including, without limitation, those contained in Section 5 hereof) are reasonable in light of the necessity of the protection of the business of the Company Group; (ii) his ability to work and earn a living will not be unreasonably restrained by the application of these restrictions; and (iii) if a court concludes that any restrictions in this Agreement are overbroad or unenforceable for any reason, the court shall modify the relevant provision to the least extent necessary and such provision shall be enforced as modified.

 

		
	(b)
	Injunctive and Other Relief. The Employee recognizes and agrees that should he fail to comply with the restrictions set forth in this Agreement (including, without 

limitation, those contained in Section 5 hereof), which restrictions are vital to the protection of the Company Group's business, the Company Group will suffer irreparable injury and harm for which there is no adequate remedy at law. Therefore, the Employee agrees that in the event of the breach or threatened breach by him of any of the restrictive covenants in this Agreement, the Company Group shall be entitled to preliminary and permanent injunctive relief against him and any other relief as may be awarded by a court having jurisdiction over the dispute. In the event of a breach by the Employee of such provisions, the Company Group shall have the right to cease making any payments, or providing other benefits, under this Agreement. The rights and remedies enumerated in this Section 6 shall be independent of each other, and shall be severally enforced, and such rights and remedies shall be in addition to, and not in lieu of, any other rights or remedies available to the Company Group in law or in equity.

7.    Return of Property

Except as set forth in Section 5(a)(ii) above, and concurrently with the Termination Date, the Employee shall deliver to a designated Company representative all records, documents, hardware, software, and all other Company property and all copies thereof in the Employee's possession. The Employee acknowledges and agrees that all such materials are the sole property of the Company. Notwithstanding anything to the contrary contained herein, the Employee will be entitled to remove, transfer and retain (i) papers and other materials of a personal nature, including without limitation photographs, personal correspondence, personal diaries, personal calendars and rolodexes, personal phone books and files relating exclusively to his personal affairs, (ii) information the Employee reasonably believes may be needed for the planning and preparation of the Employee's personal tax returns; and (iii) copies of compensation and benefit plans and agreements relating to the Employee's employment with or termination from the Company.

8.    Miscellaneous

		
	(a)
	Entire Agreement. This Agreement and the Release set forth the entire agreement between the parties with respect to the subject matter hereof. This Agreement supersedes any and all prior understandings and agreements between the parties and neither party shall have any obligation toward the other except as set forth herein.  The Company confirms and acknowledges that the Company is obligated to indemnify the Employee pursuant to that certain Officer Indemnification Agreement between the Company and the Employee dated September 14, 2015.  Without limiting the generality of the foregoing, the Employee agrees that the execution of this Agreement and the payments made hereunder shall constitute satisfaction in full of the Company's obligations to the Employee under any and all plans, programs or arrangements made by the Company under which the Employee may be entitled to severance or similar payment and/or benefits. This Agreement may not be superseded, amended, or modified except in writing signed by both parties.

		
	(b)
	Severability and Reformation. Each of the provisions of this Agreement constitutes independent and separable covenants. Any portion of this Agreement that is determined by a court of competent jurisdiction to be overly broad in scope, duration, or area of applicability or in conflict with any applicable statute or rule will be deemed, if possible, to be modified or altered so that it is not overly broad or in conflict or, if not possible, to be omitted from this Agreement. The invalidity 

of any portion of the Agreement will not affect the validity of the remaining sections of this Agreement.

		
	(c)
	No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

		
	(d)
	Successors and Assigns. This Agreement and any rights herein granted are personal to the parties hereto and will not be assigned, sublicensed, encumbered, pledged or otherwise transferred by either party without the prior written consent of the other party, and any attempt at violative assignment, sublicense, encumbrance or any other transfer, whether voluntary or by operation of law, will be void and of no force and effect, except that this Agreement may be assigned to by the Company to any successor in interest to the business of the Company. This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors, affiliates and any person or other entity that succeeds to all or substantially all of the business, assets or property of the Company. This Agreement and all of the Employee's rights hereunder shall inure to the benefit of and be enforceable by the Employee's heirs and estate.

		
	(e)
	No Conflict; Governing Law. Each party represents that the performance of all of the terms of this Agreement will not result in a breach of, or constitute a conflict with, any other agreement or obligation of that party. This Agreement is made in, governed by, and is to be construed and enforced in accordance with the internal laws of the State of Texas, without giving effect to principles of conflicts of law. The Employee agrees that any legal action or proceeding brought under or in connection with this Agreement or the Employee's employment shall be initiated and maintained in a state or federal court located in Texas.

		
	(f)
	Code Section 409A. The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and applicable guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on the Employee by Code Section 409A or any damages for failing to comply with Code Section 409A. To the extent any taxable expense reimbursement or in-kind benefits under this Agreement is subject to Code Section 409A, the amount thereof eligible in any calendar year shall not affect the amount eligible for any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the year in which the Employee incurred such expenses, and in no event shall any right to reimbursement or receipt of in-kind benefits be subject to liquidation or exchange for another benefit.  Notwithstanding any provisions of this Agreement to the contrary, if the Employee is a “specified employee” (within the meaning of Code Section 409A and determined pursuant to any policies adopted by the Company consistent with Code Section 409A), at the time of the Employee’s separation from service and if any portion of the payments or benefits to be received by the Employee upon separation from service would be considered deferred compensation under Code Section 409A and cannot be paid or provided to the Employee without the Employee incurring taxes, interest or penalties under Code Section 409A, amounts that would otherwise be payable pursuant to this Agreement 

and benefits that would otherwise be provided pursuant to this Agreement, in each case, during the six-month period immediately following the Employee’s separation from service will instead be paid or made available on the earlier of (i) the first business day of the seventh month following the date of the Employee’s separation from service or (ii) the Employee’s death.

9.    Confidential Agreement

The Employee agrees that, as a condition of this Agreement, the Employee will not disclose or in any other manner communicate the terms and provisions of this Agreement to or with any other person except to the Employee's legal counsel, financial or tax advisor(s), or the Employee's significant other (each, an “Authorized Person”). The Employee also acknowledges and agrees that each Authorized Person must be informed by the Employee of, and agree to be bound by, the confidentiality provisions of this Agreement. In the event that the Employee or an Authorized Person is required by law, court order, or subpoena to make any disclosure concerning the Company Group or this Agreement, the Employee will promptly notify the Company of the intended disclosure so as to afford the Company sufficient opportunity to protect and/or enforce the confidentiality provisions of this Agreement.

10.    Protected Disclosures

		
	(a)
	Nothing in this Agreement or the Release will preclude, prohibit or restrict the Employee from (i) communicating with, any federal, state or local administrative or regulatory agency or authority, including but not limited to the Securities and Exchange Commission (the “SEC”); or (ii) participating or cooperating in any investigation conducted by any governmental agency or authority.

		
	(b)
	Nothing in this Agreement, the Release, or any other agreement between the parties, prohibits or is intended in any manner to prohibit, the Employee from (i) reporting a possible violation of federal or other applicable law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the SEC, the U.S. Congress, and any governmental agency Inspector General, or (ii) making other disclosures that are protected under whistleblower provisions of federal law or regulation.  Notwithstanding anything in the Release, this Agreement and the Release do not limit the Employee’s right to receive an award (including, without limitation, a monetary reward) for information provided to the SEC.  The Employee does not need the prior authorization of anyone at the Company to make any such reports or disclosures, and the Employee is not required to notify the Company that the Employee has made such reports or disclosures.

11.    Notices

All notices and other communications hereunder shall be in writing. Any notice or other communication hereunder shall be deemed duly given if it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient at the addresses maintained in the Company's records. Notices sent to the Company should be directed to the attention of the Company’s General Counsel.

12.    Counterpart Agreements

This Agreement may be executed in multiple counterparts, whether or not all signatories appear on these counterparts, and each counterpart shall be deemed an original for all purposes.

13.    Captions and Headings

The captions and headings are for convenience of reference only and shall not be used to construe the terms or meaning of any provisions of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.
	
			
	 

	 
	 
	 

	 
	 
	ERA HELICOPTERS, LLC

	 
	 
	 

	 
	 
	/s/ Shefali Shah

	 
	 
	By:  Shefali Shah

	 
	 
	Title:  SVP, General Counsel
Date:  June 22, 2017

	 
	 
	 

	 
	 
	ANDREW PUHALA

	 
	 
	 

	 
	 
	/s/ Andrew Puhala

            Date: ____June 22, 2017_________________

EXHIBIT A
RELEASE OF CLAIMS
1.    Terms of Release. This general release is entered into by and between Andrew Puhala (the “Employee”) and Era Helicopters, LLC (the “Company”), as of the date hereof (the “General Release”), pursuant to the terms of the Separation and Consulting Agreement dated as of June _22 , 2017, and to which this General Release is attached (the “Separation Agreement”), which provides the Employee with certain significant benefits, subject to the Employee's executing this General Release.

2.    General. In exchange for and in consideration of the incentive bonus and other payments and benefits described in the Separation Agreement, the Employee, on behalf of himself, his agents, representatives, administrators, receivers, trustees, estates, spouse, heirs, devisees, assignees, transferees, legal representatives and attorneys, past or present (as the case may be and collectively, the “Releasors”), hereby irrevocably and unconditionally releases, discharges, and acquits all of the Released Parties (as defined below) from any and all claims, promises, demands, liabilities, contracts, debts, losses, damages, attorneys' fees and causes of action of every kind and nature, known and unknown, which the Employee may have against them up to the Effective Date of this General Release (as defined below), including but not limited to causes of action, claims or rights arising out of, or which might be considered to arise out of or to be connected in any way with: (i) the Employee's employment with the Company or the termination thereof; (ii) any treatment of the Employee by any of the Released Parties, which shall include, without limitation, any treatment or decisions with respect to hiring, placement, promotion, work hours, discipline, transfer, termination, compensation, performance review or training; (iii) any damages or injury that the Employee may have suffered, including without limitation, emotional or physical injury, or compensatory damages; (iv) employment discrimination, which shall include, without limitation, any individual or class claims of discrimination on the basis of age, disability, sex, race, religion, national origin, citizenship status, marital status, sexual preference, or any other basis whatsoever; and (v) all such other claims that the Employee could assert against any, some, or all of the Released Parties in any forum, accrued or unaccrued, liquidated or contingent, direct or indirect.

3.    Broad Construction. This General Release shall be construed as broadly as possible and shall also extend to release each and all of the Released Parties, without limitation, from any and all claims that the Employee or any of the Releasors has alleged or could have alleged, whether known or unknown, accrued or unaccrued, based on acts, omissions, transactions or occurrences that occurred up to the Effective Date against any Released Party for violation(s) of any of the following, in each case, as amended: the National Labor Relations Act; Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; Sections 1981-1988 of Title 42 of the United States Code; the Equal Pay Act; the Employee Retirement Income Security Act of 1974; the Immigration Reform Control Act; the Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the Occupational Safety and Health Act; the Sarbanes-Oxley Act of 2002; the Texas Labor Code; the Texas Commission on Human Rights Act; the Texas Pay Day Act; Chapter 38 of the Texas Civil Practices and Remedies Code; any other federal, state, or local law or ordinance; any public policy, whistleblower, contract, tort, or common law, including any claim for breach of the covenant of good faith and fair dealing, and any demand for costs or litigation expenses (collectively, with the release of claims set forth in Section 2, the (“Released Claims”).  The severance payments and other rights and benefits of the Employee expressly provided for under the Separation Agreement and this General Release, any vested rights and benefits under any benefit plan, program,, policy, or arrangement sponsored or maintained by the Company, as well as any rights that the Employee may have to be indemnified by the Company pursuant to that certain Officer Indemnification Agreement between the Company and the 

Employee dated September 14, 2015, the Company's Certificate of Incorporation or By-laws are excluded from this General Release.  

4.    Released Parties. The term “Released Parties” or “Released Party” as used herein shall mean and include: (i) the Company; (ii) the Company's former, current and future parents, subsidiaries, affiliates, shareholders and lenders; (iii) any predecessor or successor of any person listed in clauses (i) and (ii); and (iv) each former, current, and future officer, director, agent, representative, employee, servant, owner, shareholder, partner, joint venturer, attorney, employee benefit plan, employee benefit plan administrator, insurer, administrator, and fiduciary of any of the persons listed in clauses (i) through (iii), and any other person acting by, through, under, or in concert with any of the persons or entities listed herein.

5.    Representations by the Employee. The Employee confirms that no claim, charge, or complaint against any of the Released Parties, brought by him, exists before any federal, state, or local court or administrative agency. The Employee represents and warrants that he has no knowledge of any improper or illegal actions or omissions by the Company, nor does he know of any basis on which any third party or governmental entity could assert such a claim. This expressly includes any and all conduct that potentially could give rise to claims under the Sarbanes-Oxley Act of 2002 (Public Law 107-204).

6.    No Right to File Action or Proceeding. The Employee agrees that he will not, unless otherwise prohibited by law, at any time hereafter, voluntarily participate in as a party, or permit to be filed by any other person on his behalf or as a member of any alleged class of persons, any action or proceeding of any kind, against the Company, or  its past, present, or future parents, subsidiaries, divisions, affiliates, successors and assigns and any of their past, present or future directors, officers, agents, trustees, administrators, attorneys, employees or assigns (whether acting as agents for the Company or in their individual capacities), with respect to any Released Claims; in addition, the Employee agrees to have himself removed from any such action or proceeding with respect to which he has involuntarily become a party. The Employee further agrees that he will not seek or accept any award or settlement from any source or proceeding with respect to any claim or right covered by this General Release and that this General Release shall act as a bar to recovery in any such proceedings. This General Release does not purport to limit any right Employee may have to file a charge under the Age Discrimination in Employment Act or other civil rights statute or to participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission or other investigative agency. This General Release does, however, waive and release any right to recover damages under civil rights statutes.

7.    No Admission of Liability. The Employee agrees that neither this General Release nor the furnishing of the consideration for the general release set forth in this General Release shall be deemed or construed at any time for any purpose as an admission by the Released Parties of any liability or unlawful conduct of any kind. The Employee further acknowledges and agrees that the consideration provided for herein is adequate consideration for the Employee's obligations under this General Release.

8.    Governing Law. This General Release shall be governed by and construed in accordance with the laws of the State of Texas without regard to its conflict of laws provisions. If any provision of the General Release is declared legally or factually invalid or unenforceable by any court of competent jurisdiction and if such provision cannot be modified to be enforceable to any extent or in any application, then such provision immediately shall become null and void, leaving the remainder of this General Release in full force and affect.

9.    Prior Agreements. This General Release and the Separation Agreement sets forth the entire agreement between the Employee and the Released Parties and it supersedes any and all prior agreements or understandings, whether written or oral, between the parties, except as otherwise specified in this General Release or the Separation Agreement. The Employee acknowledges that he has not relied on any 

representations, promises, or agreements of any kind made to him in connection with his decision to sign this General Release, except for those set forth in this General Release and the Separation Agreement.

10.    Amendment. This General Release may not be amended except by a written agreement signed by both parties, which specifically refers to this General Release.

11.    Counterparts; Execution Signatures. This General Release may be executed in any number of counterparts by the parties hereto and in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.

THE EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS GENERAL RELEASE; THAT HE HAS HAD THE OPPORTUNITY TO THOROUGHLY DISCUSS ITS TERMS WITH COUNSEL OF HIS CHOOSING; THAT HE FULLY UNDERSTANDS ITS TERMS AND ITS FINAL AND BINDING EFFECT; THAT THE ONLY PROMISES MADE TO SIGN THIS GENERAL RELEASE ARE THOSE STATED AND CONTAINED IN THIS GENERAL RELEASE; AND THAT HE IS SIGNING THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY. THE EMPLOYEE STATES THAT HE IS IN GOOD HEALTH AND IS FULLY COMPETENT TO MANAGE HIS BUSINESS AFFAIRS AND UNDERSTANDS THAT HE MAY BE WAIVING SIGNIFICANT LEGAL RIGHTS BY SIGNING THIS GENERAL RELEASE.
(SIGNATURE PAGE TO FOLLOW)

IN WITNESS WHEREOF, the parties have executed this General Release as of the _22__ day of June, 2017.
	
			
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	ANDREW PUHALA

	 
	 
	 

	 
	 
	/s/ Andrew PuhalaExhibit 10.7

 

JANUS HENDERSON GROUP PLC
 FOURTH AMENDED AND RESTATED MUTUAL FUND SHARE INVESTMENT PLAN

 

(effective May 30, 2017)

 

Article 1.                                         History, Effective Date, Objectives

 

1.1                              The name of the plan is the Janus Henderson Group plc Fourth Amended and Restated Mutual Fund Share Investment Plan (as may be amended from time to time, the “Plan”).  Janus Capital Group Inc. (“JCG”) established the Plan effective January 20, 2005, amended and restated the Plan effective January 22, 2008, amended and restated the Plan effective January 1, 2012, and amended and restated the Plan effective July 22, 2013.  The Plan is intended to align the interests of key personnel with shareholders through the use of phantom investments in the Company’s (as defined below) retail mutual funds.

 

1.2                              On October 3, 2016, JCG entered into an Agreement and Plan of Merger (the “Merger Agreement”) by among JCG, Henderson Group plc (“Henderson” or the “Company”) and Horizon Orbit Corp., pursuant to which, among other things, as of the Effective Time (as defined in the Merger Agreement) (i) Horizon Orbit Corp. will merge with and into JCG, with JCG being the surviving corporation and a wholly-owned subsidiary of Henderson (the “Merger”), and (ii) Henderson shall change its name to “Janus Henderson Group plc” and shall list its ordinary shares on the New York Stock Exchange.  Following the Effective Time, (iii) Henderson has elected to assume sponsorship of the Plan, to be amended and restated as set forth herein, and (iv) each Award issued and outstanding under the Plan immediately prior to the Effective Time shall remain outstanding subject to the same terms and conditions as in effect immediately prior to the Effective Time, in each case, effective as of the Effective Time and contingent on the consummation of the Merger.

 

1.3                              The Plan is hereby amended and restated in its entirety, as set forth herein, effective as of May 30, 2017 (the “Effective Date”), provided, however, the Plan as amended and restated herein is contingent on the consummation of the Merger, and shall automatically terminate and be of no force and effect (with the Plan as in effect as of immediately prior to the Effective Time remaining in full force and effect) upon the termination of the Merger Agreement.

 

Article 2.                                         Definitions

 

2.1                              Administrator means the Committee or the person or persons designated by the Committee to administer the Plan.

 

2.2                              Award means an amount payable in cash by the Company to a Participant as determined by the Administrator.

 

2.3                              Board means the Board of Directors of the Company.

 

 

2.4                              Cause shall have the meaning assigned to such term in the Participant’s Award Agreement, or if not defined therein, the meaning assigned to such term in the Participant’s individual employment or severance agreement, or if the Participant is not a party to an such an agreement in which Cause is defined, the meaning assigned to such term in the Janus Henderson Group plc Second Amended and Restated 2010 Long-Term Incentive Stock Plan (or successor plan thereto).

 

2.5                              Code means the Internal Revenue Code of 1986, as amended, and any regulations or guidance issued there under.

 

2.6                              A Change in Control shall be deemed to have occurred (unless otherwise provided in an award agreement) if the event set forth in any one of the following paragraphs shall have occurred:

 

(a)                                 a change in the composition of the Board such that the individuals who, as of the effective date of the this Agreement, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this definition, that any individual who becomes a member of the Board subsequent to the effective date hereof, whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act of 1934, as modified) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or

 

(b)                                Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of the assets or stock of another entity (“Business Combination”); excluding, however, such a Business Combination pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding Company voting securities immediately prior to such Business Combination will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of common stock, and the combined Voting Power, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the outstanding Company Common Stock and outstanding Company voting securities, as the case may be, (2) no Person (other than the Company or any employee benefit plan (or related trust) of the Company or the corporation resulting from such Business Combination) will beneficially own, directly or indirectly, 20% or more of, respectively, the outstanding shares of common

 

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stock of the corporation resulting from such Business Combination or the combined Voting Power of such corporation except to the extent that such ownership existed prior to the Business Combination; and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Business Combination; or

 

(c)                                 The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

Notwithstanding the above, for each Award subject to Section 409A of the Code, a Change in Control shall be deemed to have occurred under this Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code.

 

2.7                              Common Stock means an ordinary share, $1.50 par value, of the Company.

 

2.8                              Company has the meaning set forth in Section 1.1(a), and shall include the Company’s permitted successors and assigns.

 

2.9                              Committee means the Compensation Committee of the Board, or a separate committee appointed by the Board to administer the Plan.

 

2.10                       Disability shall mean (unless otherwise provided in an award agreement) that a Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Company or a Subsidiary.

 

2.11                       Eligible Employee means an employee or director of the Company or any Subsidiary that is eligible to participate in the Plan as designated by the Committee or the Administrator.

 

2.12                       Good Reason shall have the meaning assigned to such term in the Participant’s Award Agreement, or if not defined therein, the meaning assigned to such term in the Participant’s individual employment or severance agreement, or if the Participant is not a party to such an agreement in which Good Reason is defined, Good Reason shall mean the occurrence of any of the events or conditions described below which are not cured by the Company (if susceptible to cure by the Company) within thirty (30) days after the Company has received written notice from the Participant (which notice must be provided by the Participant within ninety (90) days of the initial existence of the event or condition constituting Good Reason): (i) a material adverse alteration in the nature or status of the Participant’s responsibilities from those in effect immediately prior to the Change in Control other than any such alteration primarily attributable to the fact that the Company may no longer be a public company or to other changes in the identity, nature

 

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or structure of the Company; and provided, that a change in the Participant’s title or reporting relationships shall not of itself constitute Good Reason (unless such change results in a material adverse alteration as described above), (ii) any material reduction in the Participant’s base salary except for any across-the-board reduction similarly affecting similarly-situated employees of the Company, or (iii) the relocation of the Participant’s principal place of employment to a location more than 40 miles from the Participant’s principal place of employment immediately prior to the Change in Control, provided that such relocation results in a material negative change to the Participant’s employment.

 

2.13                       Grant Date means the effective date on which the Committee grants the Award.

 

2.14                       Mutual Fund Share Investment Account means the book-keeping entry account maintained by the Company for each Participant that reflects such Participant’s Award (including gains, losses and expenses) and adjustments thereto.

 

2.15                       Participant means an Eligible Employee who has been selected by the Committee, in its sole discretion, to participate in the Plan.

 

2.16                       Person shall have the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as modified and used in Sections 13(d) and 14(d) thereof.

 

2.17                       Plan has the meaning set forth in Section 1.1(a).

 

2.18                       Retirement means (unless otherwise provided in an award agreement) a Participant’s Termination of Affiliation following: (1) having both attained age fifty-five (55) and completed at least ten (10) years of service with the Company or a Subsidiary; or (2) having attained age sixty (60).

 

2.19                       Subsidiary means a United States or foreign corporation or limited liability company, partnership or other similar entity with respect to which the Company owns, directly or indirectly, 50% or more of the Voting Power of such corporation, limited liability company, partnership or other similar entity.

 

2.20                       Termination of Affiliation means the occurrence of the first day on which an individual is for any reason no longer an employee, director or consultant of the Company or any Subsidiary, or with respect to an individual who is an employee or director of, or consultant to, a corporation which is a Subsidiary, the first day on which such corporation ceases to be a Subsidiary; provided, however, that for each Award subject to Section 409A of the Code a Termination of Affiliation shall be deemed to have occurred under this Plan with respect to such Award on the first day on which an individual has experienced a “separation from service” within the meaning of Section 409A of the Code.

 

2.21                       Valuation Date means the last business day of each month, or such other date specified by the Administrator.

 

2.22                       Vested means a Participant has a nonforfeitable interest in a portion of his or her Mutual Fund Share Investment Account with respect to an Award.

 

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2.23                       Voting Power means the combined voting power of the then-outstanding securities of a corporation entitled to vote generally in the election of directors.

 

Article 3.                                         Eligibility

 

3.1                              Eligibility. The Committee may grant Awards to any Eligible Employee, whether or not he or she has previously received an Award.

 

3.2                              Award Agreement. To the extent not set forth in the Plan, the terms and conditions of each Award (which need not be the same for each Award or for each Participant) shall be set forth in an Award Agreement (an “Award Agreement”).

 

Article 4.                                         Vesting

 

4.1                              Award Amount. Except as set forth in Section 4.2 below, a Participant will become Vested with respect to amounts credited to his or her Mutual Fund Share Investment Account in respect of an Award in accordance with the vesting schedule designated by the Committee and as set forth in the Award Agreement, provided that the Participant is employed by the Company or any Subsidiary on such date.

 

4.2                              Vesting Upon Certain Events.

 

(a)                                 The treatment of amounts credited to Participant’s Mutual Fund Share Investment Account upon meeting the applicable Retirement requirement(s) shall be set forth in the Award Agreement.

 

(b)                                Except as otherwise provided in an Award Agreement or determined by the Committee at the time an Award is granted, following a Change in Control, each outstanding Award shall remain outstanding and shall continue to vest in accordance with its terms; provided, however, that, in the event of a termination of a Participant’s employment or service without Cause or for Good Reason during the 24-month period following such Change in Control, on the date of such termination (i) such Award shall become fully and immediately Vested in all amounts credited to his or her Mutual Fund Share Investment Account, (ii) the restrictions, payment conditions, and forfeiture conditions applicable to any such Award granted shall lapse, and (iii) any performance conditions imposed with respect to Awards shall be deemed to be fully achieved at target levels. Where such acceleration would result in adverse tax consequences under Section 409A of the Code with respect to an Award, the Committee may, in its sole discretion, provide that such Award shall become Vested and non-forfeitable upon the occurrence of the Change in Control; provided, however, that the Award shall not become payable, except in accordance with the terms of such Award or until such earlier time as the payment complies with Section 409A of the Code.

 

4.3                              Forfeiture. Except as otherwise set forth by the Committee or in the applicable Award Agreement, upon a Participant’s Termination of Affiliation for any reason, the portion of the Participant’s Mutual Fund Share Investment Account which is not Vested as of the date of such termination shall be forfeited and shall revert in its entirety to the Company.

 

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Article 5.                                         Phantom Investment of the Mutual Fund Share Investment Account

 

5.1                              Crediting of Awards to Mutual Fund Share Investment Accounts. A Participant’s Award shall be credited to his or her Mutual Fund Share Investment Account as soon as administratively practicable following the Grant Date.

 

5.2                              Deemed Investment Fund Allocation. Except as otherwise provided in an Award Agreement or as determined by the Committee at the time an Award is granted, each Participant’s Award shall be deemed invested in one of the phantom investment options set forth in Section 5.3 below.

 

5.3                              Phantom Investment Options. The phantom investment options that are available under this Plan for a Participant’s Mutual Fund Share Investment Account shall be designated by the Committee and shall initially include all of those Company mutual funds that are offered to participants under the JCG 401(k) and Employee Stock Ownership Plan, subject to applicable prospectus requirements. An amount transferred into one of these phantom investments is converted to phantom units of such phantom investments by dividing such amount by the value of a unit in the applicable fund on the date as of which the amount is treated as invested in this phantom investment by the Administrator. Thereafter, a Participant’s interest in each such phantom investment is valued as of a Valuation Date by multiplying the number of phantom units credited to his or her Account on such date by the value of a unit in the applicable fund on such date. In the event the Participant does not make an election, the Participant shall be deemed to have directed that the undesignated portion of the Mutual Fund Share Investment Account be invested in a money market phantom investment option offered under the Plan (or if no money market investment option is offered, the investment option that most nearly resembles a money market investment option).

 

5.4                              Administrator Discretion. The Administrator shall have the sole discretion to determine the phantom investment options available under the Plan and may change, limit or eliminate an investment fund provided hereunder from time to time. If any phantom investment option ceases to be available under the Plan, the Administrator shall have the authority to credit to any or all other then-available phantom investment options all amounts previously allocated to the terminated phantom investment option (along with deemed earnings, gains and losses relating thereto).

 

5.5                              Phantom Investment Options Directions. In connection with a Participant’s first deferral election form submitted under the Plan, the Participant shall specify in one (1) percent increments how the amounts in his or her Mutual Fund Share Investment Account with respect to an Award are to be invested in one or more of the phantom investment options offered under this Section; provided however all elections under this Section 5.5 must meet the applicable prospectus requirements. Thereafter, the Participant (i) may specify a different investment direction that shall apply to his or her future Awards, and (ii) may reallocate the investment of his or her Mutual Fund Share Investment Account attributable to an outstanding Award by specifying, in one (1) percent increments, how such amounts are to be invested among the phantom investment options then offered under the Plan. The Administrator may provide that such initial allocations or

 

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reallocations are to be made in a different increment specified by the Administrator. A new investment direction for future Awards and a reallocation of a Participant’s Mutual Fund Share Investment Account attributable to outstanding Awards shall be made using the investment procedures that are provided by the Administrator’s delegate for this purpose. This procedure may include the use of written or electronic forms, as well as the use of a voice-response system, as determined by the Administrator’s delegate.

 

5.6                              Phantom Investment Options Reallocations. Any investment reallocation of a Participant’s Mutual Fund Share Investment Account attributable to outstanding Awards shall be effective within five (5) business days after the date the investment reallocation is received by the Administrator’s delegate. If more than one reallocation is received on a timely basis, the reallocation that the Administrator’s delegate determines to be the most recent shall be followed.

 

5.7                              Direction and Reallocation Default Rules. If the Administrator’s delegate possesses at any time investment directions as to the phantom investment of less than all of a Participant’s Mutual Fund Share Investment Account, the Participant shall be deemed to have directed that the undesignated portion of the Mutual Fund Share Investment Account be invested in a money market phantom investment option offered under the Plan (or if no money market investment option is offered, the investment option that most nearly resembles a money market investment option).

 

5.8                              Earnings or Losses. As of each Valuation Date, a Participant’s Mutual Fund Share Investment Account shall be credited with earnings and gains (and shall be debited for expenses and losses) determined as if the amounts credited to his or her Mutual Fund Share Investment Account had actually been invested as directed by the Participant in accordance with this Article. The Plan provides only for “phantom investments,” and therefore such earnings, gains, expenses and losses are hypothetical and not actual. However, they shall be applied to measure the value of a Participant’s Mutual Fund Share Investment Account and the amount of the Company’s liability to make payments to or on behalf of the Participant.

 

Article 6.                                         Distributions

 

6.1                              General. Except as otherwise determined by the Committee in its sole discretion in a manner compliant with Section 409A of the Code, a Participant shall receive a lump sum cash distribution in respect of the Vested portion of his or her Mutual Fund Share Investment Account as soon as practicable following the date such portion becomes Vested, but subject to the provisions of Section 6.3, in no case later than 2.5 months following the end of the taxable year in which such portion becomes Vested.

 

6.2                              Termination of Affiliation. If the Committee determines in the Award Agreement or otherwise that any portion of a Participant’s Mutual Fund Share Investment Account shall become Vested upon a Participant’s Termination of Affiliation, the portion of the Participant’s Mutual Fund Share Investment Account which is Vested on Termination of Affiliation shall be distributed as soon as practicable following the date of such Termination of Affiliation, but subject to the provisions of Section 6.3, in no case later

 

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than 2.5 months following the end of the taxable year in which such Termination of Affiliation occurs.

 

6.3                              Six-Month Delay. To the extent subject to Section 409A of the Code, if any distributions due to a Participant hereunder would cause the application of an accelerated or additional tax under Section 409A of the Code such distributions shall be restructured in a manner which does not cause such an accelerated or additional tax. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Award Agreement during the six-month period immediately following a Participant’s separation from service shall instead be paid on the first business day after the date that is six months following the Participant’s separation from service (or death, if earlier).

 

Article 7.                                         Beneficiary Designation

 

7.1                              Beneficiary Designation. Each Participant shall have the right, at any time, to designate any person or persons as beneficiary or beneficiaries (both principal as well as contingent) to whom a lump sum cash payment of the balance of the Participant’s Mutual Fund Share Investment Account shall be made in the event of the Participant’s death. In the event of multiple beneficiaries, such payment shall be apportioned among the beneficiaries in accordance with the designation forms. A beneficiary designation may be changed by a Participant by filing such change on a form prescribed by the Administrator. The receipt of a new beneficiary designation form will cancel all previously filed beneficiary designations.

 

7.2                              Failure to Designate. If a Participant fails to designate a beneficiary as provided above, or if all designated beneficiaries predecease the Participant, then all payments hereunder in respect of the Participant shall be made to the Participant’s estate.

 

Article 8.                                         Plan Administration.

 

8.1                              Administrator. The Administrator is responsible for the administration of the Plan. The Administrator has the authority to name one or more delegates to carry out certain responsibilities hereunder. Any such delegation shall state the scope of responsibilities being delegated.

 

8.2                              Action. Action by the Administrator may be taken in accordance with procedures that the Administrator adopts from time to time and that the Company’s Legal Department determines are legally permissible.

 

8.3                              Powers of the Administrator. The Administrator shall administer and manage the Plan and shall have (and shall be permitted to delegate) all powers necessary to accomplish that purpose, including (but not limited to) the following:

 

(a)                                 To exercise its discretionary authority to construe, interpret, and administer this Plan;

 

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(b)                                To exercise its discretionary authority to make all decisions regarding eligibility, participation and deferrals, to make allocations and determinations required by this Plan, and to maintain records regarding Participants’ Mutual Fund Share Investment Accounts;

 

(c)                                 To compute and certify to the Company the amount and kinds of payments to Participants or their beneficiaries, and to determine the time and manner in which such payments are to be paid;

 

(d)                                To authorize all disbursements by the Company pursuant to this Plan;

 

(e)                                 To maintain (or cause to be maintained) all the necessary records for administration of this Plan;

 

(f)                                   To make and publish such rules for the regulation of this Plan as are not inconsistent with the terms hereof;

 

(g)                                To authorize its delegates to delegate to other individuals or entities from time to time the performance of any of its delegates’ duties or responsibilities hereunder;

 

(h)                                 To establish or to change the phantom investment options or arrangements under Article 5;

 

(i)                                     To hire agents, accountants, actuaries, consultants and legal counsel to assist in operating and administering the Plan; and

 

(j)                                     Notwithstanding any other provision of this Plan, the Administrator may take any action it deems appropriate in furtherance of any policy of the Company or any Subsidiary respecting insider trading as may be in effect from time to time. Such actions may include, but are not limited to, altering the effective date of allocations or distributions of the Mutual Fund Share Investment Account.

 

The Administrator has the exclusive and discretionary authority to construe and to interpret the Plan, to decide all questions of eligibility for benefits, to determine the amount and manner of payment of such benefits and to make any determinations that are contemplated by (or permissible under) the terms of this Plan, and its decisions on such matters will be final and conclusive on all parties. Any such decision or determination shall be made in the absolute and unrestricted discretion of the Administrator, even if (1) such discretion is not expressly granted by the Plan provisions in question, or (2) a determination is not expressly called for by the Plan provisions in question, and even though other Plan provisions expressly grant discretion or call for a determination. As a result, benefits under this Plan will be paid only if the Administrator decides in its discretion that the applicant is entitled to them. In the event of a review by a court, arbitrator or any other tribunal, any exercise of the Administrator’s discretionary authority shall not be disturbed unless it is clearly shown to be arbitrary and capricious.

 

8.4                              Compensation, Indemnity and Liability. The Administrator will serve without bond and without compensation for services hereunder. All expenses of the Plan and the Administrator will be paid by the Company. To the extent deemed appropriate by the

 

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Administrator, any such expense may be charged against specific Participant Mutual Fund Share Investment Accounts, thereby reducing the obligation of the Company. No member of the Committee, and no individual acting as the delegate of the Committee, shall be liable for any act or omission of any other member or individual, nor for any act or omission on his or her own part, excepting his or her own willful misconduct. The Company will indemnify and hold harmless each member of the Committee and any employee of the Company (or an affiliate, if recognized as an affiliate for this purpose by the Administrator) acting as the delegate of the Committee against any and all expenses and liabilities, including reasonable legal fees and expenses, arising out of his or her membership on the Committee (or his or her serving as the delegate of the Committee), excepting only expenses and liabilities arising out of his or her own willful misconduct.

 

8.5                              Taxes. If the whole or any part of any Participant’s Mutual Fund Share Investment Account becomes liable for the payment of any estate, inheritance, income, employment, or other tax which the Company or any Subsidiary may be required to pay or withhold, the Company or any Subsidiary will have the full power and authority to withhold and pay such tax out of any moneys or other property in its hand for the  account of the Participant. To the extent practicable, the Company will provide the Participant notice of such withholding. Prior to making any payment, the Company may require such releases or other documents from any lawful taxing authority as it shall deem necessary.

 

Article 9.                                         Claims Procedures

 

9.1                              Claims for Benefits. If a Participant, beneficiary or other person (hereafter, “Claimant”) does not receive timely payment of any benefits which he or she believes are due and payable under the Plan, he or she may make a claim for benefits to the Administrator. The claim for benefits must be in writing and addressed to the Administrator. If the claim for benefits is denied, the Administrator will notify the Claimant within 90 days after the Administrator initially received the benefit claim. However, if special circumstances require an extension of time for processing the claim, the Administrator will furnish notice of the extension to the Claimant prior to the termination of the initial 90-day period and such extension may not exceed one additional, consecutive 90-day period. Any notice of a denial of benefits should advise the Claimant of the basis for the denial, any additional material or information necessary for the Claimant to perfect his or her claim, and the steps which the Claimant must take to appeal his or her claim for benefits.

 

9.2                              Appeals of Denied Claims. Each Claimant whose claim for benefits has been denied may file a written appeal for a review of his or her claim by the Administrator. The request for review must be filed by the Claimant within 60 days after he or she received the notice denying his or her claim. The decision of the Administrator will be communicated to the Claimant within 60 days after receipt of a request for appeal. The notice shall set forth the basis for the Administrator’s decision. If there are special circumstances which require an extension of time for completing the review, the Administrator’s decision may be rendered not later than 120 days after receipt of a request for appeal.

 

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Article 10.         Amendment and Termination

 

10.1      Amendments. The Committee has the right in its sole discretion to amend this Plan in whole or in part at any time and in any manner, including the manner of making deferral elections, the terms on which distributions are made, and the form and timing of distributions. Notwithstanding any other provision of the Plan to the contrary, except for clarifying amendments necessary to avoid an inappropriate windfall, no Plan amendment shall reduce the amount credited to the Mutual Fund Share Investment Account of any Participant as of the date such amendment is adopted or otherwise adversely affect in any material way any Award previously granted under the Plan, without the written consent of the such Participant. Any amendment shall be in writing and adopted by the Committee. All Participants and beneficiaries shall be bound by such amendment.

 

10.2      Termination of Plan. The Company expects to continue this Plan, but does not obligate itself to do so. The Company, acting by the Committee or through the Board, reserves the right to discontinue and terminate the Plan at any time, in whole or in part, for any reason (including a change, or an impending change, in the tax laws of the United States or any State). Termination of the Plan will be binding on all Participants (and a partial termination shall be binding upon all affected Participants) and their beneficiaries, but in no event may such termination reduce the amounts credited at that time to any Participant’s Mutual Fund Share Investment Account or otherwise adversely affect in any way any Award previously granted under the Plan, without the written consent of the such Participant. If this Plan is terminated (in whole or in part), the termination resolution shall provide for how amounts theretofore credited to affected Participants’ Mutual Fund Share Investment Accounts will be distributed. In accordance with these restrictions, the Company intends to have the maximum discretionary authority to terminate the Plan and make distributions in connection with a Change in Control, and the maximum flexibility with respect to how and to what extent to carry this out following a Change in Control.

 

10.3      Awards Previously Granted.  Without limiting the generality of Sections 10.1 and 10.2, the Plan as amended and restated as set forth herein as of the Effective Time shall not adversely impact in any way any Award previously granted under the Plan prior to the Effective Time, including without limitation, the full vesting, lapse of restrictions and deemed achievement of performance conditions of such Award  in the event of a termination of a Participant’s employment or service by the Company without Cause or for Good Reason during the 24-month period following the Effective Date, and the Merger shall constitute a Change of Control with respect to any such previously granted Award, unless otherwise explicitly stated in the applicable Award Agreement.

 

10.4      409A Compliance. Notwithstanding anything to the contrary contained in the Plan or in any Award Agreement, to the extent that the Committee determines that the Plan or any Award is subject to Section 409A of the Code and fails to comply with the requirements of Section 409A of the Code, the Committee reserves the right to amend or terminate the Plan and/or amend, restructure, terminate or replace the Award in order to cause the Award to either not be subject to Section 409A of the Code or to comply with the applicable provisions of such section.

 

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Article 11.         Miscellaneous

 

11.1      Limitation on Participant’s Rights. No employee shall have any claim to receive any Award under the Plan, and there is no obligation for uniformity of treatment of employees under the Plan. Participation in this Plan does not give any Participant the right to be employed by the Company or any Subsidiary (or any right or interest in this Plan or any assets of the Company or any Subsidiary other than as herein provided). The Company or any Subsidiary reserves the right to terminate the employment of any Participant without any liability for any claim against the Company or any Subsidiary under this Plan, except for a claim for payment of deferrals as provided herein.

 

11.2      Unfunded Obligation of Company. The benefits provided by this Plan are unfunded. All amounts payable under this Plan to Participants are paid from the general assets of the Company. Nothing contained in this Plan requires the Company to set aside or hold in trust any amounts or assets for the purpose of paying benefits to Participants. Neither a Participant, beneficiary, nor any other person shall have any property interest, legal or equitable, in any specific Company asset. This Plan creates only a contractual obligation on the part of the Company, and the Participant has the status of a general unsecured creditor of this Company with respect to amounts of compensation deferred hereunder. Such a Participant shall not have any preference or priority over, the rights of any other unsecured general creditor of the Company. No other entity guarantees or shares such obligation, and no other entity shall have any liability to the Participant or his or her beneficiary.

 

11.3      Offset. Amounts due to or in respect of Participants under the Plan shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or any Subsidiary may have against a Participant or others.

 

11.4      Other Plans. This Plan shall not affect the right of any Eligible Employee or Participant to participate in and receive benefits under and in accordance with the provisions of any other benefit plans which are now or hereafter maintained by the Company or any Subsidiary, unless the terms of such other benefit plan or plans specifically provide otherwise or it would cause such other plan to violate a requirement for tax favored treatment.

 

11.5      Receipt or Release. Any payment to a Participant in accordance with the provisions of this Plan shall, to the extent thereof, be in full satisfaction of all claims against the Administrator and the Company and any Subsidiary, and the Administrator may require such Participant, as a condition precedent to such payment, to execute a receipt and release to such effect.

 

11.6      Governing Law. This Plan shall be construed, administered, and governed in all respects in accordance with applicable federal law and, to the extent not preempted by federal law, in accordance with the laws of the State of Delaware (other than its laws relating to choice of law). If any provisions of this instrument shall be held by a court of competent

 

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jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.

 

11.7      Status a Foreign Private Issuer.  As of the Effective Date and for a certain period of time thereafter, Henderson will qualify as a “foreign private issuer” (as defined in Rule 405 of the Securities Act of 1933, as modified, and Rule 3b-4 of the Securities Exchange Act of 1934, as modified), which permits the Company to operate the Plan and to grant Awards under the Plan under different laws, rules or regulations than those that may be expressly referenced herein. Notwithstanding any provision of the Plan or an Award Agreement to the contrary, the Plan shall only be required to be administered in compliance with applicable laws, rules and regulations.  However, the Committee, if it deems it necessary or advisable, may decide in its discretion to administer the Plan in compliance with such laws, rules and regulations as may become applicable upon Henderson ceasing to qualify as a foreign private issuer.

 

11.8      Gender, Tense and Examples. In this Plan, whenever the context so indicates, the singular or plural number and the masculine, feminine, or neuter gender shall be deemed to include the other. Whenever an example is provided or the text uses the term “including” followed by a specific item or items, or there is a passage having a similar effect, such passage of the Plan shall be construed as if the phrase “without limitation” followed such example or term (or otherwise applied to such passage in a manner that avoids limitation on its breadth of application).

 

11.9      Successors and Assigns; Nonalienation of Benefits. This Plan inures to the benefit of and is binding upon the parties hereto and their successors, heirs and assigns; provided, however, that the amounts credited to the Mutual Fund Share Investment Account of a Participant are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any right to any benefits payable hereunder, including, any assignment or alienation in connection with a separation, divorce, child support or similar arrangement, will be null and void and not binding on the Plan or the Company. Notwithstanding the foregoing, the Administrator reserves the right to make payments in accordance with a divorce decree, judgment or other court order as and when cash payments are made in accordance with the terms of this Plan from the Mutual Fund Share Investment Account of a Participant. Any such payment shall be charged against and reduce the Participant’s account.

 

11.10    Facility of Payment. Whenever, in the Administrator’s opinion, a Participant or beneficiary entitled to receive any payment hereunder is under a legal disability or is incapacitated in any way so as to be unable to manage his or her financial affairs, the Administrator may direct the Company to make payments to such person or to the legal representative of such person for his or her benefit, or to apply the payment for the benefit of such person in such manner as the Administrator considers advisable. Any payment in accordance with the provisions of this Section shall be a complete discharge of any liability for the making of such payment to the Participant or beneficiary under the Plan.

 

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