Document:

exhibit10-94.htm

EXHIBIT 10.94

 

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.  THE SYMBOL “[***]” HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED.

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of June 24, 2011 among PINNACLE AIRLINES, INC., a Georgia corporation (“Pinnacle”), COLGAN AIR, INC., a Virginia corporation (“Colgan”), and MESABA AVIATION, INC., a Minnesota corporation (“Mesaba”, and together with Pinnacle and Colgan, each a “Borrower” and collectively, the “Borrowers”), the Loan Parties party hereto (the “Loan Parties”), the lenders party hereto (the “Lenders”), and C.I.T. LEASING CORPORATION, as Administrative Agent (in such capacity, “Administrative Agent”) and Collateral Agent.

 

W I T N E S S E T H:

 

WHEREAS, each of Pinnacle, Colgan, the Loan Parties, the Lenders, Administrative Agent and certain other parties have entered into that certain Credit Agreement dated as of July 30, 2009, as amended by that certain First Amendment to Credit Agreement dated as of January 13, 2010 and that certain Second Amendment to Credit Agreement dated as of August 20, 2010 (collectively, the “Credit Agreement”), pursuant to which the Lenders have provided certain credit facilities to the Borrowers; and

 

WHEREAS, the parties hereto now desire to amend the Credit Agreement pursuant to this Amendment to, among other items, (i) provide for a new term Loan B in the amount of $17,000,000 and (ii) add Mesaba as a Borrower hereunder.

 

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties, intending to be bound, hereby agree as follows:

 

1. Defined Terms; Incorporation of the Credit Agreement.  All capitalized terms which are not defined hereunder shall have the same meanings as set forth in the Credit Agreement, and the Credit Agreement, to the extent not inconsistent with this Amendment, is incorporated herein by this reference as though the same were set forth in its entirety.  To the extent any terms and provisions of the Credit Agreement are inconsistent with the amendments set forth in paragraph 2 below, such terms and provisions shall be deemed superseded hereby.  Except as specifically set forth herein, the Credit Agreement shall remain in full force and effect and its provisions shall be binding on the Borrowers, Administrative Agent, Collateral Agent, Lenders and the Loan Parties.

 

2. Amendment to the Credit Agreement.

 

(a) Section 1.1 of the Credit Agreement is hereby amended by adding the definitions “Delta Indebtedness”, “LIBOR Margin”, “Term Loan A”, “Term Loan A Commitment”, “Term Loan B”, “Term Loan B Commitment” and “Third Amendment Effective Date” to read as follows:

 

 

  

1

  

 

“Delta Indebtedness” means the Indebtedness represented by that certain Promissory Note dated as of July 1, 2010 executed by the Borrowers in favor of Delta Air Lines, Inc. in the original principal amount of $62,000,000.

 

“LIBOR Margin” means, for any day, the rate per annum set forth below, based on the “Availability Ratio” defined as the percentage by which the Borrowing Base exceeds the aggregate outstanding principal amount of all Term Loans determined upon the delivery of each Borrowing Base Certificate as required below:

 

	
Level

	 	
Availability Ratio

	 	
LIBOR

Margin

	 
	 	         I	 	
Less than 5.0%

	 	 	***	 
	
II

	 	
Greater than or equal to 5.0% but less than 10.0%

	 	 	***	 
	
III

	 	
Greater than or equal to 10.0% but less than 15.0%

	 	 	***	 
	
IV

	 	
Greater than or equal to 15.0%

	 	 	***	 

The LIBOR Margin shall be adjusted, to the extent applicable, on the fifth (5th) day after the Borrowers provide or are required to provide their Borrowing Base Certificate.  Notwithstanding anything contained in this paragraph to the contrary, (a) if the Borrowers fail to deliver a quarterly Borrowing Base Certificate reflecting the quarterly and annual appraisal results of the Collateral in accordance with and at the times required by Section 5.1(h), the LIBOR Margin shall be based upon Level I above beginning on the date such Borrowing Base Certificate was required to be delivered until the fifth (5th) day after such Borrowing Base Certificate is actually delivered, whereupon the LIBOR Margin shall be determined by the then current Level; (b) no reduction to any LIBOR Margin shall become effective at any time when an Event of Default has occurred and is continuing; and (c) the initial LIBOR Margin on the Third Amendment Effective Date shall be based on Level II until the fifth (5th) day after the Borrowers provide the Borrowing Base Certificate in accordance with the terms set forth above for the month ending June 30, 2011.

 

Notwithstanding the foregoing, in the event that any Borrowing Base Certificate is shown to be inaccurate (regardless of whether this Agreement or the Term Loan Commitment is in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher LIBOR Margin for any period (an “Applicable Period”) than the LIBOR Margin applied for such Applicable

 

	  	
 

	  

 

  

2

  

 Period, then (i) the Borrowers shall immediately deliver to Administrative Agent a correct Borrowing Base Certificate for such Applicable Period, (ii) the LIBOR Margin shall be the higher level determined by such correct Borrowing Base Certificate for such Applicable Period, and (iii) the Borrowers shall immediately pay to Administrative Agent the accrued additional interest owing as a result of such increased LIBOR Margin for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with Section 2.11.  This paragraph shall not limit the rights of the Administrative Agent or the Lenders with respect to Section 7.1.

 

“Term Loan A” shall mean the Term Loan A made pursuant to Section 2.1(a).

 

“Term Loan A Commitment” shall mean each Lender’s commitment to make Term Loan A.

 

“Term Loan B” shall mean the Term Loan B made pursuant to Section 2.1(a).

 

“Term Loan B Commitment” shall mean each Lender’s commitment to make Term Loan B.

 

“Third Amendment Effective Date” shall mean June 24, 2011.

 

(b) The definition of the terms “ABR Borrowing”, “Applicable ABR Rate”, “Borrowing Base”, “LIBOR Rate”, “Prepayment Fee”, “Security Agreement”, “Term Loan”, “Term Loan Commitment”, “Term Loan Maturity Date” and “Three Month LIBOR Rate” set forth in Section 1.1 of the Credit Agreement are hereby amended and restated to read as follows:

 

“ABR Borrowing” refers to Term Loan A when it is bearing interest at a rate determined by reference to the Alternate Base Rate plus the Applicable ABR Rate.

 

“Applicable ABR Rate” means, with respect to ABR Borrowings, ***.

 

“Borrowing Base” shall mean an amount equal to the total of:

 

(i)(A) seventy-five percent (75%) of the OLV determined for an 18-month period of Eligible Bombardier Rotable Parts; plus (B) sixty-five percent (65%) for the period beginning on the Third Amendment Effective Date until December 31, 2011 and sixty percent (60%) at all times thereafter, of the OLV determined for an 18-month period of Eligible Saab340 Rotable parts; plus

 

	  	
 

	  

 

  

3

  

 

(ii)(A) sixty-five percent (65%) of the OLV determined for an 18-month period of Eligible Bombardier Consumable/Expendable Parts; plus (B) fifty-five percent (55%) for the period beginning on the Third Amendment Effective Date through December 31, 2011 and fifty percent (50%) at all times thereafter, of the OLV determined for an 18-month period of Eligible Saab340 Consumable/Expendable Parts; plus

 

(iii)(A) seventy-five percent (75%) of the CMV of Eligible Bombardier Spare Engines; plus (B) sixty percent (60%) for the period beginning on the Third Amendment Effective Date through December 31, 2011 and fifty-five percent (55%) at all times thereafter, of the CMV of Eligible Saab340 Spare Engines; minus

 

(iv) such reserves and allowances specifically relating to the Collateral Administrative Agent establishes from time to time in the exercise of its reasonable business judgment after 5 Business Days prior written notice from Administrative Agent to the Borrower Representative.  The Borrowing Base will be computed on a monthly basis as of the last day of the calendar month and the Borrowers’ calculation of the Borrowing Base shall be provided to Administrative Agent within eighteen (18) calendar days of each calendar month end for Administrative Agent’s review and approval.

 

“LIBOR Rate” means, with respect to a Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of: (a) one percent (1.0%); and (b) the rate determined by the Administrative Agent to be the offered rate that appears on the Bloomberg BBAM Screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in dollars (for delivery on the first day of such Interest Period) with a term equivalent to such interest period, determined as of approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period.  In the event that such rate is not available at such time for any reason, then the “LIBOR Rate” with respect to the Eurodollar Borrowing for such Interest Period shall be determined by the Administrative Agent by reference to such other comparable publicly available service for displaying the offered rate for dollar deposits in the London interbank market as may be selected by the Administrative Agent and, in the absence of availability, such other method as may be selected by the Administrative Agent in the exercise of its reasonable business judgment.

 

	  	
 

	  

 

  

4

  

 

“Prepayment Fee” shall be an amount equal to (i) for any prepayment of Term Loan A or Term Loan B (excluding all regularly scheduled principal payments required under Section 2.8(a)) made on or prior to the first anniversary of the Third Amendment Effective Date, *** of the outstanding principal amount of the Term Loan prepaid; or (ii) for any prepayment of Term Loan A or Term Loan B (excluding all regularly scheduled principal payments required under Section 2.8(a)) made after the first anniversary of the Third Amendment Effective Date, and on or prior to the second anniversary of the Third Amendment Effective Date, *** of the outstanding principal amount of Term Loan A or Term Loan B prepaid.  Notwithstanding the foregoing, up to 7.50% of the combined principal amount of Term Loan A and Term Loan B (based on the outstanding principal amount of Term Loan A and Term Loan B on the Third Amendment Effective Date) may be repaid hereunder without any Prepayment Fee.

 

“Security Agreement” means, collectively, (i) the Equipment Mortgage and Security Agreement dated as of June 30, 2009, between Pinnacle, as Grantor and the Administrative Agent, as Collateral Agent, for its own benefit and for the ratable benefit of the Lenders, as amended, restated, modified or supplemented from time to time, (ii) the Equipment Mortgage and Security Agreement dated as of June 30, 2009, between Colgan, as Grantor and the Administrative Agent, as Collateral Agent, for its own benefit and for the ratable benefit of the Lenders, as each may be amended, restated, modified or supplemented from time to time and (iii) the Equipment Mortgage and Security Agreement dated as of June 24, 2011, between Mesaba, as Grantor and the Administrative Agent, as Collateral Agent, for its own benefit and for the ratable benefit of the Lenders, as each may be amended, restated, modified or supplemented from time to time.

 

“Term Loan” means, collectively, Term Loan A and Term Loan B, unless the context shall otherwise require.

 

“Term Loan Commitment” means, collectively with respect to each Lender, the commitment of such Lender to make Term Loan A and Term Loan B in accordance with Section 2.1(a).  The amount of each Lender’s Term Loan Commitments on the Third Amendment Effective Date is set forth on Schedule 2.1.  The aggregate amount of the Lenders’ Term Loan Commitments on the Third Amendment Effective Date is $37,000,000.  Effective upon the assignment of an interest pursuant to Section 10.4, Schedule 2.1 may be amended by the Administrative Agent to reflect such assignment.

 

	  	
 

	  

  

5

  

 

“Term Loan Maturity Date” means December 31, 2015 or such earlier date on which the Term Loans are terminated in accordance with this Agreement.

 

“Three Month LIBOR Rate” means, for any day, the greater of (a) the rate per annum equal to the rate determined by Administrative Agent to be the offered rate that appears on the Bloomberg BBAM Screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on such day) with a term equivalent to three months, determined as of approximately 11:00 a.m. (London time) on such day (or if such day is not a Business Day, the immediately preceding Business Day), and (b) one percent (1.0%).  In the event that such rate is not available at such time for any reason, then the “Three Month LIBOR Rate” for such day shall be determined by Administrative Agent by reference to such other comparable publicly available service for displaying the offered rate for dollar deposits in the London interbank market as may be selected by Administrative Agent and, in the absence of availability, such other method as may be selected by Administrative Agent in its sole discretion.

 

(c) The definition of the terms “Applicable Rate” and “Incremental Term Loan” set forth in Section 1.1 of the Credit Agreement are hereby deleted.

 

(d) Section 2.1(a) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

(a)           (i) Subject to the terms and conditions set forth herein, on the Third Amendment Effective Date, each Lender, severally and not jointly, agrees to advance Term Loan A and Term Loan B to the Borrowers (less the current outstanding principal amount of the prior Term Loan advanced prior to the date hereof which remains outstanding as of the Third Amendment Effective Date and continues to be represented by the Notes executed and delivered on the Third Amendment Effective Date), in a principal amount not to exceed such Lender’s pro rata share of the Term Loan A Commitment and the Term Loan B Commitment.  Notwithstanding the foregoing, the aggregate principal amount of the Term Loans outstanding at any time (collectively, the “Outstanding Term Loan”) shall not exceed the lesser of (“Maximum Availability”):

 

(x)           the total amount of the Lenders’ Term Loan Commitments as reduced from time to time as a result of payments required to be made in accordance with Sections 2.8 and 2.9 herein;  and

 

(y)           the Borrowing Base.

 

	  	
 

	  

 

  

6

  

 

(e) Section 2.6(a) and Section 2.6(c) of the Credit Agreement are hereby amended and restated to read in their entirety as follows:

 

(a)           The Borrower Representative may elect different Interest Periods for Term Loan A with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing.

 

(c)           Each telephonic and written Interest Election Request for Term Loan A shall specify the following information in compliance with Section 2.2;

 

(i)           the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; and

 

(ii)           the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”.

 

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower Representative shall be deemed to have selected an Interest Period of one (1) month’s duration.

 

(f) The first sentence of Section 2.6(e) is hereby amended and restated in its entirety to read as follows:

 

(e)           If the Borrower Representative fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Eurodollar Borrowing is repaid as provided herein at the end of such Interest Period, then the Borrower Representative shall be deemed to have selected an Interest Period of one (1) month’s duration.

 

(g) Section 2.8(a) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

(a)           The Borrowers hereby unconditionally promise to pay to the Administrative Agent, for the account of each Lender, the outstanding amount of the Obligations on the Term Loan Maturity Date.  In addition to the foregoing, the aggregate principal amount of the Term Loan A shall be payable in equal consecutive quarterly installments (the date of each such installment, a “Repayment Date”) beginning September 30, 2011 in the amount of $1,111,111.11, with the entire unpaid principal balance of Term Loan A, if not sooner paid, being due and payable, without notice or demand, on the Term Loan Maturity Date.  The outstanding principal amount of Term Loan B, if not sooner paid, shall be due and payable on

 

	  	
 

	  

 

  

7

  

the Term Loan Maturity Date.  All such payments shall be distributed ratably among the Lenders in accordance with their respective Term Loan Commitments.

 

(h) Section 2.9(a) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

 

(a)           The Borrowers shall have the right at any time and from time to time to prepay the Term Loans in whole or in part, subject to (i) prior notice in accordance with paragraph (b) of this Section, (ii) the provisions of Section 2.14 below in an amount of $500,000 or any integral of $100,000 in excess thereof, or the full amount of the Term Loans and (iii) receipt by Administrative Agent (for the benefit of the Lenders) of the Prepayment Fee.  Notwithstanding the foregoing, all voluntary prepayments will be applied to all remaining principal payments on Term Loan A either in inverse order of maturity or ratably with respect to all required principal payments, at the option of the Borrowers, until paid in full and then to all remaining principal payments on Term Loan B (as required following the payment in full of Term Loan A) either in inverse order of maturity or ratably with respect to all required principal payments, at the option of the Borrowers, until paid in full.  To the extent that the Borrowers do not specify the application of such voluntary prepayment, Administrative Agent shall apply any such voluntary prepayment in inverse order of maturity.

 

(i) Section 2.9(e) of the Credit Agreement is hereby amended and restated to read as follows:

 

(e)           Each prepayment of Loans required by subsections (c) and (d) of this Section shall be made ratably among the Lenders and such prepayments shall be applied to prepay Term Loan A and Term Loan B on a pro rata basis between such Term Loans and shall be allocated in inverse order of maturity to all remaining payments of principal required by Section 2.8(a).

 

(j) Section 2.11(a) and (b) shall be amended and restated to read as follows:

 

(a)           Term Loan A shall bear interest for each day during each Interest Period applicable thereto at the Adjusted LIBOR Rate for such Interest Period plus the LIBOR Margin for such day.

 

(b)           Term Loan B shall bear interest for each day on which any principal of such Loan remains outstanding at a fixed interest rate of  ***.

 

	  	
 

	  

 

  

8

  

 

(k) Section 2.11(c) of the Credit Agreement is hereby amended and restated to read as follows:

 

(c)            Notwithstanding the foregoing, (i) automatically upon the occurrence and during the continuance of any Event of Default under clause (g), clause (h) or clause (r) of Section 7.1, and (ii) upon written notice from the Administrative Agent (or the Required Lenders, through the Administrative Agent) upon the occurrence and continuance of any other Event of Default, (i) the Loans shall bear interest at a rate per annum equal to two percent (2.0%) plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or as otherwise provided pursuant to the terms of this Agreement and (ii) all other Obligations hereunder and pursuant to the Financing Documents shall bear interest at a rate per annum equal to two percent (2.0%) plus the rate applicable to an ABR Borrowing.

 

(l) Section 6.5(a) of the Credit Agreement is hereby amended and restated to read as follows:

 

(a)            No Borrower will, nor will it permit any Subsidiary to, directly or indirectly prepay, to the extent such prepayment is optional or at Borrower’s discretion, redeem, purchase, repurchase or retire (or offer to prepay, redeem, purchase, repurchase or retire), or make any cash interest or principal payments in excess of regularly scheduled payments with respect to any Indebtedness, other than Indebtedness incurred hereunder, provided, however, (i) so long as no Default or Event of Default has occurred, is continuing or would occur after giving effect to the foregoing, and (ii) the Borrowers are in compliance with the Minimum Liquidity covenant set forth in Section 6.11 before and after giving effect to any such payment, the Borrowers may (x) prepay amounts owing to each of Synovus Capital Finance and Cessna Finance Corporation with respect to the Saab 340 aircraft in accordance with the terms of loan documents evidencing such loans in effect on the date hereof.

 

(m) Section 6.13 of the Credit Agreement is hereby amended and restated to read as follows:

 

SECTION 6.13.  Permitted Sales or Dispositions.  Except to the extent otherwise permitted in the Security Agreement, no Borrower will, nor will any Borrower permit any Subsidiary or any other Person acting by, through or under it, to sell, transfer, lease or dispose of any of the Collateral without the prior written consent of  the Administrative Agent, which consent may be withheld in the Administrative Agent’s sole discretion other than (i) sales for cash or exchanges of parts in the ordinary course of business, not to exceed *** in the aggregate in any fiscal year or

 

	  	
 

	  

 

  

9

  

*** in the aggregate in any calendar month, (ii) sales or other dispositions for cash of damaged, obsolete, obsolescent, unmerchantable or excess parts, and (iii) as permitted by the Security Agreement.  Notwithstanding the foregoing, the Borrowers may enter into sale leaseback transactions with respect to the sale of Bombardier CRJ 900 or Dash 8-Q400 aircraft provided that (i) no Default or Event of Default has occurred, is continuing or would occur after giving effect to such sale, (ii) the Borrowers provide Administrative Agent with copies of all executed operative transaction documents promptly following the execution thereof, and (iii) the Borrowers pay down any advances under the Term Loan Commitment secured by such aircraft promptly following receipt of such proceeds from each such sale.

 

(n) Exhibit B to the Credit Agreement is hereby replaced with Exhibit B-1 and Exhibit B-2 attached hereto.

 

(o) Schedules 1, 2.1, 3.6, 3.17 and 3.23 to the Credit Agreement are hereby deleted and shall be replaced with Schedule 1, Schedule 2.1, Schedule 3.6, Schedule 3.17 and Schedule 3.23 attached hereto.

 

3. Representations and Warranties; No Default.  Except for the representations and warranties of the Loan Parties made as of a particular date, the representations and warranties set forth in Article III of the Credit Agreement shall be deemed (i) made by Mesaba as of the date hereof and (ii) remade as of the date hereof by each of the other Loan Parties; provided, however, that any and all references to the Credit Agreement in such representations and warranties shall be deemed to include this Amendment.  The Loan Parties hereby represent, warrant and covenant that after giving effect to the amendments contained in this Amendment, no Default or Event of Default has occurred and is continuing.

 

4. Affirmation.  Except as specifically amended pursuant to the terms hereof, the Credit Agreement and the other Financing Documents (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by each of the Borrowers.  The Borrowers covenant and agree to comply with all of the terms, covenants and conditions of the Credit Agreement, as amended hereby, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Administrative Agent’s or any Lender’s part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions.  The Borrowers hereby represent and warrant to Administrative Agent and Lenders that as of the date hereof, there are no claims, counterclaims, offsets or defenses arising out of or with respect to the Obligations.  Each Borrower hereby confirms and/or reaffirms, as applicable, its existing grant to Administrative Agent of a Lien on and security interest in the Collateral.  Each Borrower hereby confirms that all Liens and security interests at any time granted by it to Administrative Agent continue in full force and effect and secure and shall continue to secure the Obligations.  Nothing herein contained is intended to in any manner impair or limit the validity, priority and extent of Administrative Agent’s existing security interest in and Liens upon the Collateral.

 

	  	
 

	  

 

  

10

  

 

5. Joinder of New Borrower.

 

(a) Mesaba hereby (a) confirms that it has received a copy of the Credit Agreement, as amended by this Amendment, the other Financing Documents executed in connection therewith and such other documents and information as it has deemed appropriate and (b) agrees that it will be bound by the provisions of the Credit Agreement, as amended by this Amendment, and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Borrower.

 

(b) From and after the date hereof, Mesaba shall be a party to the Credit Agreement, as amended by this Amendment, and have the rights and obligations of a Borrower thereunder and under the other loan documents executed in connection therewith and shall be bound by the provisions thereof.  Mesaba hereby acknowledges and confirms the grant of a first priority security interest in all of the Collateral to Administrative Agent as security for all Obligations in accordance with the Security Agreement executed by Mesaba in connection with this Amendment.

 

6. Fees and Expenses.  The Borrowers agree to pay on demand all reasonable costs and expenses actually incurred by Administrative Agent and the Lenders in connection with the drafting, negotiation, execution and implementation of this Amendment including, but not limited to, the expenses and reasonable fees of counsel for Administrative Agent and the Lenders.  In addition to the foregoing, the Borrowers agree to pay to the Administrative Agent for the benefit of the Lenders, a closing fee pursuant to the Fee Letter of even date herewith executed by the Loan Parties in favor of the Administrative Agent which shall be fully earned and non-refundable as of the Third Amendment Effective Date.

 

7. Closing Documents.  This Amendment shall be deemed effective as of the date hereof provided that Borrowers shall deliver to Administrative Agent the following documents and/or complete the following requirements (collectively, the “Closing Requirements”) upon execution hereof (in each case in form and substance satisfactory to Administrative Agent and the Lenders):

 

(a) this Amendment executed by the Loan Parties, Administrative Agent and the Lenders;

 

(b) the Substitute Term Loan A Note executed by the Borrowers;

 

(c) the Term Loan B Note executed by the Borrowers;

 

(d) a combined Borrowing Base Certificate reflecting the Collateral of all Borrowers as of May 31, 2011;

 

(e) the documents, instruments and agreements set forth on the Closing Document List attached hereto as Annex 1; and

 

	  	
 

	  

 

  

11

  

 

(f) such other documents, instruments, agreements, opinions or certificates as reasonably required by Administrative Agent.

 

8. Effectuation.  Upon the full execution of this Amendment and delivery or completion, as applicable, of the Closing Requirements, without any further action required by the parties hereto, the amendments to the Credit Agreement contemplated by this Amendment shall be deemed effective as of the date hereof.  There are no other conditions precedent or subsequent to the effectiveness of this Amendment.

 

9. Continuing Effect.  Except as otherwise specifically set forth herein, the provisions of the Credit Agreement shall remain in full force and effect.

 

10. Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  A facsimile or other electronic signature to this Amendment shall be deemed an original signature hereunder.

 

[SIGNATURE PAGE FOLLOWS]

	  	
 

	  

 

  

12

  

Signature Page to Third Amendment to Credit Agreement

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Third Amendment to Credit Agreement as of the date first above written.

 

	
LOAN PARTIES:

	
PINNACLE AIRLINES, INC., a Georgia corporation

By:  /s/ Ron Kay                                                                         

Ron Kay

Vice President and Treasurer

	  	
COLGAN AIR, INC., a Virginia corporation

By:  /s/ Ron Kay                                                                         

Ron Kay

Vice President and Treasurer

	  	
MESABA AVIATION, INC., a Minnesota corporation

By:  /s/ Ron Kay                                                                         

Ron Kay

Vice President and Treasurer

 

  

13

  

Signature Page to Third Amendment to Credit Agreement

 

	
LOAN PARTIES:

	
PINNACLE AIRLINES CORP., a Delaware corporation

By:          /s/ Brian T. Hunt                                                      

Brian T. Hunt

Vice President

 

 

  

14

  

Signature Page to Third Amendment to Credit Agreement

 

	
ADMINISTRATIVE AGENT:

 

	
C.I.T. LEASING CORPORATION, as Administrative Agent and Collateral Agent

By:  /s/ John Heskin                                                              

John Heskin

Vice President

 

  

15

  

Signature Page to Third Amendment to Credit Agreement

 

	
LENDER:

 

	
CIT BANK, as a Lender

By:        /s/ John Heskin                                                        

Name:   John Heskin                                                             

Title:     Vice President                                                           

 

  

16

  

Annex 1

 

CLOSING DOCUMENT LIST

 

 

(See Attached)

 

 

  

17

  

EXHIBIT B-1

SUBSTITUTE TERM LOAN A NOTE

(See Attached)

 

  

18

  

EXHIBIT B-2

TERM LOAN B NOTE

(See Attached)

 

  

19

  

Schedule 1

 

COLGAN

 

	
Address

	
Colgan Air, Inc. 

Albany International Airport 

Albany Hangar 

85 Sicker Road 

Latham, NY 12110

	
Colgan Air, Inc. 

Logan Airport 

200 Terminal B 

East Boston, MA 02128

	
Colgan Air, Inc. 

Newark International Airport 

Terminal C Gate 115 Office 

Newark, NJ 07114

	
Colgan Air, Inc. 

Washington Dulles International Airport 

Dulles Hangar 

23321 Autopilot Drive 

Sterling, VA 20166

	
Colgan Air, Inc. 

George Bush Intercontinental-Houston Airport 

Houston Hangar 

17555 John F Kennedy Blvd. 

Houston, TX 77032

	
Colgan Air, Inc. 

LaGuardia Airport 

Hangar 4 

Central Terminal Drive 

Flushing, NY 11731

 

  

20

  

Schedule 1

 

PINNACLE

 

	
Pinnacle Airlines, Inc. 

Hartsfield-Jackson Atlanta International Airport 

11700 Spine Road, Gate 32 Ramp Level, Door D32-1-D1 

Atlanta, GA 30320

	
Pinnacle Airlines, Inc. 

Detroit Metropolitan Wayne County Airport 

2640 World Gateway, B2-348, BC Concourse, below C21 

Romulus, MI 48174

	
Pinnacle Airlines, Inc. 

Municipal/Baerfield Airport 

FWA Hangar 

11102 West Perimeter Road 

Fort Wayne, IN 46809

	
Pinnacle Airlines, Inc. 

Indianapolis International Airport 

7800 Col. H. Weir, Suite 50 or Door 05A.215, under A Concourse between A6 and A8 

Indianapolis, IN 46241

	
Pinnacle Airlines, Inc. 

Memphis International Airport 

MEM Hangar 

2934 Winchester 

Memphis, TN 38118

	
Pinnacle Airlines, Inc. 

Minneapolis-St. Paul International Airport 

4300 Glumack Dr. RM C-1348, below Gates C8 and C10 

St. Paul, MN 55111

	
Pinnacle Airlines, Inc. 

South Bend Regional Airport 

Studebaker Hangar 

4819 Lincoln Way West 

South Bend, IN 46628

	
Pinnacle Airlines, Inc. 

Mc Ghee Tyson Airport 

TYS Hangar 

330 Flagship Dr. 

Alcoa, TN 37701

	  	  	  

 

  

21

  

Schedule 1

 

	
Pinnacle Airlines, Inc. 

Benedum Airport 

2400 Aviation Way

Bridgeport, WV  26330

	
Pinnacle Airlines, Inc. 

Greenville-Spartanburg International Airport

Cargo Building

1900 GSP Drive, Suite 34 

Greer, SC 29651

 

  

22

  

Schedule 1

MESABA

 

(see attached)

	  	  	  

 

  

23

  

 

Schedule 2.1

 

List of Lenders and Commitments

 

 

	
Lender

	 	
Term Loan A Commitment

	 	 	
Term Loan B Commitment

	 
	
CIT Bank

	 	$	20,000,000.00	 	 	$	17,000,000.00	 

 

  

24

  

Schedule 3.6

***

 

  

25

  

Schedule 3.17

 

***

 

 

  

26

  

Schedule 3.23

 

Schedule of Customary Airline Insurance

 

***

	  	  	  

  

27ex10-1.htm

Exhibit 10.1

 

ARQULE, INC.

Amended and Restated

1994 Equity Incentive Plan

 

Section 1.  Purpose

 

The purpose of the Plan is to attract and retain key employees and consultants of the Company and its Affiliates, to provide an incentive for them to achieve long-range performance goals, and to enable them to participate in the long-term growth of the Company. Independent contractors and leased employees of the Company shall not be eligible to participate in the Plan notwithstanding that they may be deemed to be “common law” employees of the Company for other purposes.

 

Section 2.  Definitions

 

“Affiliate” means any business entity that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the Company. For purposes hereof, “Control” (and with correlative meanings, the terms “controlled by” and “under common control with”) shall mean the possession of the power to direct or cause the direction of the management and policies of the Company, whether through the ownership of voting stock, by contract or otherwise. In the case of a corporation “control” shall mean, among other things, the direct or indirect ownership of more than fifty percent (50%) of its outstanding voting stock. In the case of an Incentive Stock Option, the term “Affiliate” shall only include each entity which is either a “parent corporation” or a “subsidiary corporation,” both as defined in Section 424 of the Code, with respect to the Company (and any entity which becomes such a “parent corporation” or “subsidiary corporation” after the adoption of the Plan).

 

“Award” means any Option, Stock Appreciation Right, Performance Share, Restricted Stock, Stock Unit or Other Stock-Based Award awarded under the Plan or any Award previously granted under the 1994 Equity Incentive Plan of the Company or the Amended and Restated 1994 Equity Incentive Plan of the Company as in effect prior to date this Plan was adopted by the Board of Directors.

 

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

 

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

 

“Committee” means a committee of not fewer than two members of the Board appointed by the Board to administer the Plan. If a Committee is authorized to grant Options to a Reporting Person or a “covered employee” within the meaning of Section 162(m) of the Code, each member shall be a “non-employee director” or the equivalent within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934 and an “outside director” or the equivalent within the meaning of Section 162(m) of the Code, respectively. Until such committee is appointed, “Committee” means the Board.

 

“Common Stock” or “Stock” means the Common Stock, $0.01 par value, of the Company.

 

“Company” means ArQule, Inc.

 

“Designated Beneficiary” means the beneficiary designated by a Participant, in a manner determined by the Committee, to receive amounts due or exercise rights of the Participant in the event of the Participant’s death. In the absence of an effective designation of a beneficiary by a Participant, “Designated Beneficiary” shall mean (i) the Participant’s estate, if such amounts or rights are, under applicable law, deemed to be part of the Participant’s estate, or (ii) such person who acquired the right to receive amounts due or exercise rights of the Participant by bequest or inheritance.

 

“Effective Date” means October 28, 1994.

 

“Fair Market Value” means, with respect to a share of Common Stock its closing price on the NASDAQ National Market on the date an Award is made and if the Company’s Common Stock shall cease to be listed or any other security, constitutes a part of the Award the fair market value thereof shall be as determined by the Committee in good faith or in the manner established by the Committee from time to time.

 

“Full Value Award” means any Award of Performance Shares, Restricted Stock, or Stock Units or any combination thereof and any Other Stock-Based Award other than an Option or Stock Appreciation Right awarded under the Plan.

 

  

  

  

 

“Incentive Stock Option” means an option to purchase shares of Common Stock awarded to a Participant under Section 6 that is intended to meet the requirements of Section 422 of the Code or any successor provision and is designated by the Committee as such.

 

“Nonstatutory Stock Option” means an option to purchase shares of Common Stock awarded to a Participant under Section 6 that is not intended to be an Incentive Stock Option.

 

“Option” means an Incentive Stock Option or a Nonstatutory Stock Option.

 

“Other Stock-Based Award” means an Award, other than an Option, Stock Appreciation Right, Performance Share, Restricted Stock or Stock Unit, having a Common Stock element and awarded to a Participant under Section 11.

 

“Participant” means, subject to Section 4 hereof, a person selected by the Committee to receive an Award under the Plan.

 

“Performance Cycle” or “Cycle” means the period of time selected by the Committee during which performance is measured for the purpose of determining the extent to which an award of Performance Shares has been earned.

 

“Performance Shares” mean shares of Common Stock, which may be earned by the achievement of performance goals, awarded to a Participant under Section 8.

 

“Reporting Person” means a person subject to Section 16 of the Securities Exchange Act of 1934 or any successor provision.

 

“Restricted Period” means the period of time selected by the Committee during which an Award may be forfeited to the Company pursuant to the terms and conditions of such Award.

 

“Restricted Stock” means shares of Common Stock subject to forfeiture awarded to a Participant under Section 9.

 

“Stock Appreciation Right” or “SAR” means a right to receive any excess in value of shares of Common Stock over the exercise price awarded to a Participant under Section 7.

 

“Stock Unit” means an award of Common Stock or units that are valued in whole or in part by reference to, or otherwise based on, the value of Common Stock, awarded to a Participant under Section 10.

 

“Ten-Percent Stockholder” shall mean a Participant who, at the time of grant of an Incentive Stock Option, owns, applying Section 424(d) of the Code, stock possessing more than ten percent of the total combined voting power of all classes of stock of the Company or a “parent corporation” or “subsidiary corporation” (both as defined in Section 424 of the Code) with respect to the Company.

 

Section 3.  Administration

 

The Plan shall be administered by the Committee. The Committee shall have authority and discretion to adopt, alter and repeal such administrative rules, guidelines and practices governing the operation of the Plan as it shall from time to time consider advisable, to interpret the provisions of the Plan, subject to the provisions of the Plan, to grant Awards to Participants and determine the terms of all such Awards, to determine the identity of a Participant’s Designated Beneficiary and to determine the identity of a Participant’s (or Designated Beneficiary’s) legal representative in the event such person becomes legally disabled. The Committee’s decisions shall be final and binding. The Committee may also recommend Awards to the full Board for approval. To the extent permitted by applicable law, the Committee may delegate to one or more executive officers of the Company the power to make Awards to Participants who are not Reporting Persons or covered employees and all determinations under the Plan with respect thereto, provided that the Committee shall fix the maximum amount of such Awards for all such Participants and a maximum for any one Participant.

 

Section 4.  Eligibility

 

All employees (but excluding any independent contractor or leased employee who is deemed to be a “common law” employee of the Company or any Affiliate) and, in the case of Awards other than Incentive Stock Options, any consultant of the Company or any Affiliate, capable of contributing significantly to the successful performance of the Company, other than a person who has irrevocably elected not to be eligible, are eligible to be Participants in the Plan.

 

  

  

  

 

Section 5.  Stock Available for Awards

 

(a)           Subject to adjustment under subsection (b), the maximum number of shares of Common Stock that may be issued under the Plan is 15,500,000 shares of Common Stock. If any Award in respect of shares of Common Stock expires or is terminated unexercised or is forfeited without the Participant having had the benefits of ownership (other than voting rights, if any), the shares subject to such Award, to the extent of such expiration, termination or forfeiture, shall again be available for award under the Plan to the same extent such shares would have been available if such expired, terminated or forfeited Award had not been made. Common Stock issued through the assumption or substitution of outstanding grants from an acquired company shall not reduce the shares available for Awards under the Plan to the extent permitted under Section 422 of the Code. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares; provided, however, that shares of Common Stock that have actually been issued under the Plan, whether upon exercise or of an Award or issuance with respect thereto, shall not be returned to the Plan and shall not become available for future Awards under the Plan, except that if unvested Shares of Restricted Stock or Restricted Stock Units are repurchased by or forfeited to the Company, such Shares shall become available for future grant under the Plan.

 

(b)           Notwithstanding the provisions of Section 5(a), for any two (2) shares of Common Stock issued in connection with a Full Value Award, three (3) fewer shares of Common Stock will be available for issuance in connection with Awards under Section 5(a).

 

(c)           In the event that the Committee determines that any stock dividend, extraordinary cash dividend, creation of a class of equity securities, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares, warrants or rights offering to purchase Common Stock at a price substantially below fair market value, or other similar transaction affects the Common Stock such that an adjustment is required or desirable in order to preserve the benefits or potential benefits intended to be made available under the Plan, then the Committee (subject, in the case of Incentive Stock Options, to any limitation required under the Code) may in its discretion equitably adjust any or all of, or provide substitution for, (i) the number and kind of shares in respect of which Awards may be made under the Plan, (ii) the number and kind of shares subject to outstanding Awards, and (iii) the award, exercise or conversion price with respect to any of the foregoing, and if considered appropriate, the Committee may make provision for a cash payment with respect to an outstanding Award, provided that the number of shares subject to any Award shall always be a whole number.

 

Section 6.  Stock Options

 

(a)           Subject to the provisions of the Plan, the Committee may award Incentive Stock Options and Nonstatutory Stock Options and determine the number of shares to be covered by each Option, the option price therefor and the conditions and limitations applicable to the exercise of the Option. The terms and conditions of Incentive Stock Options shall be subject to and comply with Section 422 of the Code or any successor provision and any regulations thereunder, and no Incentive Stock Option may be granted hereunder more than ten years after May 19, 2004.

 

(b)           The Committee shall establish the option price at the time each Option is awarded, which price shall not be less than 100% (110% in the case of a Ten-Percent Stockholder) of the Fair Market Value of the Common Stock on the date of award with respect to Incentive Stock Options.

 

(c)           Each Option shall be exercisable at such times and subject to such terms and conditions as the Committee may specify in the applicable Award or thereafter, provided, however, that no Option may be exercised more than ten years (five years in the case of a Ten-Percent Stockholder) from the date of award. The Committee may impose such conditions with respect to the exercise of Options, including conditions relating to applicable federal or state securities laws, as it considers necessary or advisable.

 

(d)           No shares shall be delivered pursuant to any exercise of an Option until payment in full of the option price therefor is received by the Company. Such payment may be made in whole or in part in cash or (A) to the extent permitted by the Committee at or after the award of the Option, by delivery (i) of a note or (ii) shares of Common Stock owned by the optionee, including, if vested, shares of Restricted Stock, or (B) to the extent permitted under the terms of the written agreement evidencing the grant of an Option, by (i) retaining shares otherwise issuable pursuant to the Option, in each case valued at their Fair Market Value on the date of delivery or retention, or (ii) such other lawful consideration as the Committee may determine.

 

  

  

  

 

(e)           The Committee may provide that, subject to such conditions as it considers appropriate, upon the delivery or retention of shares to the Company in payment of an Option, the Participant automatically be awarded an Option for up to the number of shares so delivered.

 

Section 7.  Stock Appreciation Rights

 

(a)           Subject to the provisions of the Plan, the Committee may award SARs in tandem with an Option (at or after the award of the Option), or alone and unrelated to an Option. SARs in tandem with an Option shall terminate to the extent that the related Option is exercised, and the related Option shall terminate to the extent that the tandem SARs are exercised. SARs granted in tandem with Options shall have an exercise price not less than the exercise price of the related Option. SARs granted alone and unrelated to an Option may be granted at such exercise prices as the Committee may determine; provided, however, such exercise price shall not be less than 100% (110% in the case of a Ten-Percent Stockholder) of the Fair Market Value of the Common Stock on the date of the Award of such SARs.

 

(b)           An SAR related to an Option, which SAR can only be exercised upon or during limited periods following a change in control of the Company, may entitle the Participant to receive an amount based upon the highest price paid or offered for Common Stock in any transaction relating to the change in control or paid during the thirty-day period immediately preceding the occurrence of the change in control in any transaction reported in the stock market in which the Common Stock is normally traded. No SAR may be exercised more than ten years (five years in the case of a Ten-Percent Stockholder) from the date of award.

 

Section 8.  Performance Shares

 

(a)           Subject to the provisions of the Plan, the Committee may award Performance Shares and determine the number of such shares for each Performance Cycle and the duration of each Performance Cycle. There may be more than one Performance Cycle in existence at any one time, and the duration of Performance Cycles may differ from each other. The payment value of Performance Shares shall be equal to the Fair Market Value of the Common Stock on the date the Performance Shares are earned or, in the discretion of the Committee, on the date the Committee determines that the Performance Shares have been earned.

 

(b)           The Committee shall establish performance goals for each Cycle, for the purpose of determining the extent to which Performance Shares awarded for such Cycle are earned, on the basis of such criteria and to accomplish such objectives as the Committee may from time to time select. During any Cycle, the Committee may adjust the performance goals for such Cycle as it deems equitable in recognition of unusual or non-recurring events affecting the Company, changes in applicable tax laws or accounting principles, or such other factors as the Committee may determine.

 

(c)           As soon as practicable after the end of a Performance Cycle, the Committee shall determine the number of Performance Shares that have been earned on the basis of performance in relation to the established performance goals. The payment values of earned Performance Shares shall be distributed to the Participant or, if the Participant has died, to the Participant’s Designated Beneficiary, as soon as practicable thereafter. The Committee shall determine, at or after the time of award, whether payment values will be settled in whole or in part in cash or other property, including Common Stock or Awards.

 

Section 9.  Restricted Stock

 

(a)           Subject to the provisions of the Plan, the Committee may award shares of Restricted Stock and determine the duration of the Restricted Period during which, and the conditions under which, the shares may be forfeited to the Company and the other terms and conditions of such Awards. Shares of Restricted Stock may be issued for no cash consideration or such minimum consideration as may be required by applicable law.

 

(b)           Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered, except as permitted by the Committee, during the Restricted Period. Shares of Restricted Stock shall be evidenced in such manner as the Committee may determine. Any certificates issued in respect of shares of Restricted Stock shall be registered in the name of the Participant and unless otherwise determined by the Committee, deposited by the Participant, together with a stock power endorsed in blank, with the Company. At the expiration of the Restricted Period, the Company shall deliver such certificates to the Participant or if the Participant has died, to the Participant’s Designated Beneficiary.

 

  

  

  

 

Section 10.  Stock Units

 

(a)           Subject to the provisions of the Plan, the Committee may award Stock Units subject to such terms, restrictions, conditions, performance criteria, vesting requirements and payment rules as the Committee shall determine.

 

(b)           Shares of Common Stock awarded in connection with a Stock Unit Award shall be issued for no cash consideration or such minimum consideration as may be required by applicable law.

 

Section 11.  Other Stock-Based Awards

 

(a)           Subject to the provisions of the Plan, the Committee may make other awards of Common Stock and other awards that are valued in whole or in part by reference to, or are otherwise based on, Common Stock, including without limitation convertible preferred stock, convertible debentures, exchangeable securities and Common Stock awards or options. Other Stock-Based Awards may be granted either alone or in tandem with other Awards granted under the Plan and/or cash awards made outside of the Plan.

 

(b)           The Committee may establish performance goals, which may be based on performance goals related to book value, subsidiary performance or such other criteria as the Committee may determine, Restricted Periods, Performance Cycles, conversion prices, maturities and security, if any, for any Other Stock-Based Award. Other Stock-Based Awards may be sold to Participants at the face value thereof or any discount therefrom or awarded for no consideration or such minimum consideration as may be required by applicable law.

 

Section 12.  General Provisions Applicable to Awards

 

(a)           Vesting of Full Value Awards.   Notwithstanding anything to the contrary contained herein, the minimum vesting periods for a Full Value Award shall be (i) for three years for Awards that vest based on continued service to the Company and (ii) for one year for Awards that vest based upon the accomplishment of performance criteria (where such performance criteria are determined in the discretion of the Board or the Committee.

 

(b)           Documentation.  Each Award under the Plan shall be evidenced by a writing delivered to the Participant or accessible by electronic means specifying the terms and conditions thereof and containing such other terms and conditions not inconsistent with the provisions of the Plan as the Committee considers necessary or advisable to achieve the purposes of the Plan or to comply with applicable tax and regulatory laws and accounting principles.

 

(c)           Committee Discretion.  Each type of Award may be made alone, in addition to or in relation to any other type of Award. The terms of each type of Award need not be identical, and the Committee need not treat Participants uniformly. Except as otherwise provided by the Plan or a particular Award, any determination with respect to an Award may be made by the Committee at the time of award or at any time thereafter.

 

(d)           Settlement.  The Committee shall determine whether Awards are settled in whole or in part in cash, Common Stock, other securities of the Company, Awards or other property. The Committee may permit a Participant to defer all or any portion of a payment under the Plan, including the crediting of interest on deferred amounts denominated in cash and dividend equivalents on amounts denominated in Common Stock.

 

(e)           Dividends and Cash Awards.  In the discretion of the Committee, any Award under the Plan may provide the Participant with (i) dividends or dividend equivalents payable currently or deferred with or without interest, and (ii) cash payments in lieu of or in addition to an Award.

 

(f)           Termination of Employment.  The Committee shall determine the effect on an Award of the disability, death, retirement or other termination of employment of a Participant and the extent to which, and the period during which, the Participant’s legal representative, guardian or Designated Beneficiary may receive payment of an Award or exercise rights thereunder.

 

  

  

  

 

(g)           Change in Control.  In order to preserve a Participant’s rights under an Award in the event of a change in control of the Company, the Committee in its discretion may, at the time an Award is made or at any time thereafter, take one or more of the following actions: (i) provide for the acceleration of any time period relating to the exercise or realization of the Award, (ii) provide for the purchase of the Award upon the Participant’s request for an amount of cash or other property that could have been received upon the exercise or realization of the Award had the Award been currently exercisable or payable, (iii) adjust the terms of the Award in a manner determined by the Committee to reflect the change in control, (iv) cause the Award to be assumed, or new rights substituted therefor, by another entity, or (v) make such other provision as the Committee may consider equitable and in the best interests of the Company.

 

(h)           Withholding Taxes.  The Participant shall pay to the Company, or make provision satisfactory to the Committee for payment of, any taxes required by law to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company’s obligation to issue or deliver shares of Common Stock or pay any amount pursuant to any Award shall be subject to the Participant’s satisfaction of his or her obligations under the preceding sentence. In the Committee’s discretion, such tax obligations may be paid in whole or in part in shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value on the date of delivery. The Company and its Affiliates may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the Participant.

 

(i)           Foreign Nationals.  Awards may be made to Participants who are foreign nationals or employed outside the United States on such terms and conditions different from those specified in the Plan as the Committee considers necessary or advisable to achieve the purposes of the Plan or to comply with applicable laws.

 

(j)           Amendment of Award.  The Committee may amend, modify or terminate any outstanding Award, including substituting therefor another Award of the same or a different type, changing the date of exercise or realization and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that the Participant’s consent to such action shall be required unless the Committee determines that the action, taking into account any related action, would not materially and adversely affect the Participant Notwithstanding the foregoing sentence, unless such action is approved by the Company’s stockholders or is an adjustment resulting from the operation of Section 5 (b) of the Plan: (A) no outstanding Option granted under the Plan may be amended to provide an exercise price per share that is lower than the then-current exercise price per share stated in such outstanding Option, and (B) the Committee may not cancel any outstanding Option and grant in substitution therefor new Awards under the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled Option.

 

(k)           Transferability.  In the discretion of the Committee, any Award may be made transferable upon such terms and conditions and to such extent as the Committee determines (which terms and conditions may be waived by the Committee in its discretion), provided that Incentive Stock Options may be transferable only to the extent permitted by the Code.

 

Section 13.  Miscellaneous

 

(a)           No Right To Employment.  No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment. The Company expressly reserves the right at any time to dismiss a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award.

 

(b)           No Rights As Stockholder.  Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed under the Plan until he or she becomes the holder thereof. A Participant to whom Common Stock is awarded shall be considered the holder of the Stock at the time of the Award except as otherwise provided in the applicable Award.

 

(c)           Effective Date.  Subject to the approval of the stockholders of the Company, the Plan shall be effective on the Effective Date. Before such approval, Awards may be made under the Plan expressly subject to such approval.

 

(d)           Amendment of Plan.  The Board may amend, suspend or terminate the Plan or any portion thereof at any time, subject to any stockholder approval that the Board determines to be necessary or advisable.

 

  

  

  

 

(e)           Governing Law.  The provisions of the Plan shall be governed by and interpreted in accordance with the laws of Delaware.

 

This Plan was approved by the Board of Directors on October 17, 1994.

 

This Plan was approved by the stockholders on October 17, 1994.

 

The Board of Directors amended and restated this Plan on April 8, 1998.

 

The amendment and restatement was approved by the stockholders at the Annual Meeting of Stockholders on May 14, 1998.

 

The Board of Directors amended and restated this Plan on March 16, 2000.

 

The amendment and restatement was approved by the stockholders at the Annual Meeting of Stockholders on May 18, 2000.

 

The Board of Directors amended and restated this Plan on March 23, 2001.

 

The amendment and restatement was approved by the stockholders at the Annual Meeting of Stockholders on May 17, 2001.

 

The Board of Directors amended and restated this Plan on March 21, 2002.

 

The amendment and restatement was approved by the stockholders at the Annual Meeting of Stockholders on May 16, 2002.

 

The Board of Directors amended and restated this Plan on April 7, 2004.

 

The amendment and restatement was approved by the stockholders at the Annual Meeting of Stockholders on May 19, 2004.

 

The Board of Directors amended and restated this Plan on April 4, 2005.

 

The amendment and restatement was approved by the stockholders at the Annual Meeting of Stockholders on May 18, 2005.

 

The Board of Directors authorized the amendment and restatement of this Plan on May 11, 2005, effective September 13, 2005.

 

Pursuant to Section 13 (d) of the Plan, the Board determined that it was not necessary or advisable to obtain stockholder approval of the amendment and restatement.

 

The Board of Directors amended and restated this Plan on January 21, 2008.

 

These amendments and restatement were submitted to the stockholders for approval at the Annual Meeting of Stockholders on May 14, 2008 but were not approved.

 

The Board of Directors amended and restated this Plan on January 21, 2009.

 

The amendments and restatement were approved by the stockholders at the Annual Meeting of Stockholders on May 13, 2009.

 

The Board of Directors amended and restated this Plan on March 11, 2010.

 

The amendments and restatement were approved by the stockholders at the Annual Meeting of Stockholders on May 13, 2010.

 

  

  

  

 

The Board of Directors amended and restated this Plan on March 11, 2010.

 

The amendments and restatement were approved by the stockholders at the Annual Meeting of Stockholders on May 13, 2010.

 

The Board of Directors amended and restated this Plan on March 14, 2011.

 

The amendments and restatement were approved by the stockholders at the Annual Meeting of Stockholders on June 1, 2011.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00192-of-00352.parquet"}]]