Document:

2013.06.30 EX 10.4 StockAwardOther

Exhibit 10.4

STOCK AWARD AGREEMENT
THIS STOCK AWARD AGREEMENT (the “Agreement”) is made effective as of the _____ day of _______ 201_ (the “Date of Grant”), by and between CYS Investments, Inc., a Maryland corporation (the “Company”), and _________________ (the “Participant”).
R E C I T A L S:
WHEREAS, the Company has adopted the CYS Investments, Inc. 2013 Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement.  Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and
WHEREAS, the Committee has elected to grant the Stock Award provided for herein to the Participant, an employee of the Company, pursuant to the Company’s Incentive Compensation Plan for the year ended December 31, 201_.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1.Grant of the Stock Award.  Subject to the terms and conditions of the Plan and the additional terms and conditions set forth in this Agreement, the Company hereby grants to the Participant a Stock Award (the “Stock Award”) consisting of ____  restricted shares of Common Stock (the “Restricted Shares”).  The Restricted Shares shall vest and become nonforfeitable in accordance with Section 2 hereof.
2.    Vesting.
(a)Subject to the Participant’s continued employment with the Company or an Affiliate until the applicable anniversary of the Date of Grant, the Restricted Shares shall vest and become nonforfeitable with respect to ____ Restricted Shares on each of the ____ and ____ anniversaries of the Date of Grant and with respect to ____ Restricted Shares on the ____ anniversary of the Date of Grant. 
(b)    Notwithstanding any other provision of this Agreement to the contrary, any Restricted Shares not previously forfeited or vested shall become vested (i) on the date of the Participant’s death, (ii) on the date that the Participant ceases to be employed by the Company or an Affiliates on account of Disability (as defined below), or (iii) on a Control Change Date if the Participant remains in continuous employment from the Date of Grant until the date of the Participant’s death, termination on account of Disability or a Control Change Date, as applicable.
(c)    Any Restricted Shares that are not vested on or before the cessation of the Participant’s employment shall be forfeited by the Participant without consideration on the date on which the Participant’s employment with the Company or an Affiliate terminates or is terminated.

(d)    For purposes of this Agreement, “employment” means service provided by the Participant as an officer, director or employee of the Company or an Affiliate.
(e)    For purposes of this Agreement, “Disability” means that the Participant is, as a result of injury or physical or mental illness, absent from the full-time performance of his or her duties to the Company for a period of 180 consecutive calendar days.
3.    Certificates.  Certificates evidencing the Restricted Shares shall be issued by the Company and shall be registered in the Participant’s name on the stock transfer books of the Company promptly after the date hereof, but shall remain in the physical custody of the Company or its designee at all times prior to the vesting of such Restricted Shares pursuant to Section 2.  As a condition to the receipt of this Restricted Stock Award, the Participant shall deliver to the Company a stock power, duly endorsed in blank, relating to the Restricted Shares.  No certificates shall be issued for fractional Shares.
4.    Rights as a Stockholder.  The Participant shall be the record owner of the Restricted Shares until or unless such Restricted Shares are forfeited pursuant to Section 2 hereof, and as record owner shall be entitled to all rights of a common stockholder of the Company, including, without limitation, voting rights with respect to the Restricted Shares and the Participant shall receive, when paid, any dividends or distributions on all of the Restricted Shares granted hereunder as to which the Participant is the record holder on the applicable record date; provided that the Restricted Shares shall be subject to the limitations on transfer and encumbrance set forth in Section 7.  As soon as practicable following the vesting of any Restricted Shares pursuant to Section 2, certificates for the Restricted Shares which shall have vested shall be delivered to the Participant or to the Participant along with the stock powers relating thereto.
5.    Legend on Certificates.  The certificates representing the vested Restricted Shares delivered to the Participant shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
6.    No Right to Continued Service.  The granting of the Stock Award evidenced by this Agreement shall impose no obligation on the Company or an Affiliate to continue the employment or service of the Participant and shall not lessen or affect the right of the Company or an Affiliate to terminate the employment or service of such Participant.
7.    Transferability.  The Restricted Shares may not, at any time prior to becoming vested pursuant to Section 2, be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.
8.    Withholding.  The Participant shall make arrangements satisfactory to the Company with respect to the satisfaction of applicable income and employment tax withholding requirements and the Company is hereby authorized to withhold from the Participant’s compensation any 

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applicable withholding taxes in respect of the Restricted Shares, their grant or vesting or any payment or transfer with respect to the Restricted Shares and to take such action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.  Without limiting the generality of the foregoing, to the extent permitted by the Committee, the Participant may satisfy, in whole or in part, the foregoing withholding liability by delivery of shares of Common Stock held by the Participant (which are not subject to any pledge or other security interest [and which have been vested and held by the Participant for no less than six months (or such other period as established from time to time by the Committee or United States generally accepted accounting principles)]) or by having the Company withhold from the number of Restricted Shares otherwise deliverable to the Participant hereunder Restricted Shares with a Fair Market Value not in excess of the statutory minimum withholding liability.
9.    Securities Laws.  Upon the vesting of any Restricted Shares, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement.
10.    Notices.  Any notice necessary under this Agreement shall be addressed to the Company in care of its Secretary at the principal executive office of the Company and to the Participant at the address appearing in the corporate records of the Company for such Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed effective upon receipt thereof by the addressee.
11.    Choice of Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS.
12.    Stock Award Subject to Plan.  By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan.  The Stock Award and the Restricted Shares granted hereunder are subject to the Plan.  The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.
13.     Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
CYS INVESTMENTS, INC.
By:    _____________________________________
Kevin E. Grant, Chief Executive Officer
AGREED AND ACKNOWLEDGED:
_________________________________

4Exhibit 10.1

Exhibit 10.1

EXECUTION COPY

FOURTH AMENDMENT TO FORBEARANCE AGREEMENT

This Fourth Amendment to Forbearance Agreement (this “Amendment”), dated as of July  1, 2013, is entered into by and among Interactive Network, Inc., a Nevada corporation (“Interactive”) and FriendFinder Networks Inc., a Nevada corporation (“FFN” and, collectively with Interactive, the “Issuers”), each of the undersigned entities listed as guarantors (collectively, the “Guarantors”) and each of the undersigned holders of the Notes (collectively, together with any other holder of Notes who agrees to be bound by the Agreement, the “Forbearing Holders”). 

WHEREAS, the Issuers, the Guarantors and U.S. Bank National Association, as Trustee (the “Trustee”), have entered into that certain Indenture (as amended, modified or supplemented prior to the date hereof, the “Indenture”), dated as of October 27, 2010, in respect of the Issuers’ 14% Senior Secured Notes due 2013 (the “Notes”); 

WHEREAS, on November 5, 2012, February 4, 2013 and May 5, 2013, respectively, the Issuers, based upon Excess Cash Flow of the Issuers and their Subsidiaries for the quarterly periods ending September 30, 2012, December 31, 2012 and March 31, 2013, respectively, were obligated to prepay a portion of the Notes, plus any accrued and unpaid interest thereon, pursuant to the Indenture and the Notes (the payment of the amount of such prepayment with interest on such date, the “Third Quarter 2012, Fourth Quarter 2012 and First Quarter 2013 Excess Cash Flow Prepayments”), and the failure to make the Third Quarter 2012, Fourth Quarter 2012 and First Quarter 2013 Excess Cash Flow Prepayments within 10 calendar days of the date when due constituted an Event of Default under the Indenture (the “Third Quarter 2012, Fourth Quarter 2012 and First Quarter 2013 Excess Cash Flow Prepayment Defaults”); 

WHEREAS, the Forbearing Holders granted the Issuers’ and the Guarantors’ request to forbear from exercising certain of their rights and remedies under the Indenture and from directing the Trustee to exercise such rights and remedies on the Forbearing Holders’ behalf resulting from the Third Quarter 2012, Fourth Quarter 2012 and First Quarter 2013 Excess Cash Flow Prepayment Defaults by entering into that certain Forbearance Agreement on or about November 5, 2012 (the “Agreement”), that certain First Amendment to Forbearance Agreement, dated February 4, 2013 (the “First Amendment”), that certain Second Amendment to Forbearance Agreement, dated May 6, 2013 (the “Second Amendment”), and that certain Third Amendment to Forbearance Agreement, dated June 7, 2013 (the “Third Amendment”) (collectively, the Agreement as amended by the First Amendment, the Second Amendment and the Third Amendment, the “Amended Agreement”); 

WHEREAS, the Issuers and the Guarantors have requested that the Forbearing Holders amend the Amended Agreement in order to forbear from exercising certain of their rights and remedies under the Indenture and from directing the Trustee to exercise such rights and remedies on the Forbearing Holders’ behalf resulting from the Excess Cash Flow Prepayment Defaults; and 

WHEREAS, the Forbearing Holders are willing to grant the Issuers' and the Guarantors’ request to amend the Amended Agreement in order to forbear as described herein on the terms and subject to the conditions contained herein. 

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

1.

Definitions.  Capitalized terms used but not defined in this Amendment, have the meanings ascribed to such terms in the Amended Agreement.

2.

Amendments to the Amended Agreement.  

(a)

The definition of “Forbearance Termination Event” contained in Section 1 of the Amended Agreement is hereby amended to delete the reference to “July 1, 2013” and replace it with “July 31, 2013”.

(b)

Section 1 of the Amended Agreement is hereby amended to add the following definitions:

“Fourth Amendment” means the Fourth Amendment to Forbearance Agreement, dated July 1, 2013, by and among the Issuers, the Guarantors and the Forbearing Holders.

3.

Conditions to Effectiveness.  

This Amendment shall become effective on the date on which the following conditions precedent shall have been satisfied by the applicable parties or waived by the Forbearing Holders (the “Effective Date”): 

(a)

each Forbearing Holder shall have executed and delivered to the Issuers a counterpart of this Amendment and shall have received a list of all the Forbearing Holders;

(b)

each Forbearing Holder shall have received a duly executed counterpart of this Amendment from the Issuers and each Guarantor listed on the signature pages hereto; and

(c)

on the Effective Date and upon giving effect to this Amendment, no Default or Event of Default has occurred and is continuing, subject to the Third Quarter 2012, Fourth Quarter 2012 and First Quarter 2013 Excess Cash Flow Prepayment Defaults.

4.

Representations and Warranties of Issuers and Guarantors.

(a)

This Amendment has been duly executed and delivered by each Issuer and each Guarantor, and each of this Amendment and the Amended Agreement constitute its legal, valid and binding obligations, enforceable in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and principles of equity.

(b)

After giving effect to this Amendment, the representations and warranties of the Issuers and the Guarantors contained in Section 4(a) of the Amended Agreement are true and correct in all material respects on and as of the date hereof.

(c)

After giving effect to this Amendment, each Issuer and each Guarantor reaffirms all covenants and agreements contained in Section 4 of the Amended Agreement.

(d)

After giving effect to this Amendment, no Default or Event of Default other than the Third Quarter 2012, Fourth Quarter 2012 and First Quarter 2013 Excess Cash Flow Prepayment Defaults shall have occurred and be continuing.

5.

Counterparts.  This Amendment may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Photocopies, facsimiles, and electronic scans of original signatures shall have the same force and effect as the original signatures.

6.

Full Force and Effect.  Except as expressly provided in this Amendment, the Amended Agreement is not otherwise modified and the Amended Agreement, the Indenture, the Notes, the Security Documents and each of the other agreements related thereto remain unchanged, in full force and effect and are hereby ratified and confirmed.  Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Amended Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Amended Agreement giving effect hereto.  Except as expressly provided above, the execution, delivery and effectiveness of this Amendment shall neither operate as a waiver of any right, power or remedy of any Forbearing Holder or the Trustee, nor constitute an amendment or waiver of any provision of the Amended Agreement, the Indenture, the Notes, the Security Documents or any of the other agreements related thereto.

7.

Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

8.

Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[signature pages to follow]

IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be executed, sealed and delivered, as applicable, on the day and year first above written.

			
	 
	ISSUERS:

	 
	 
	 

	 
	INTERACTIVE NETWORK, INC., a Nevada corporation

	 
	 
	 

	 
	By:

	 

	 
	Name:

	Ezra Shashoua

	 
	Title:

	Chief Financial Officer

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	FRIENDFINDER NETWORKS INC., a Nevada corporation

	 
	 
	 

	 
	By:

	 

	 
	Name:

	Ezra Shashoua

	 
	Title:

	Chief Financial Officer

GUARANTORS:

GENERAL MEDIA ART HOLDING, INC.

GENERAL MEDIA COMMUNICATIONS, INC.

GENERAL MEDIA ENTERTAINMENT, INC.

GMCI INTERNET OPERATIONS, INC.

GMI ON-LINE VENTURES, LTD.

PENTHOUSE IMAGES ACQUISITIONS, LTD.

WEST COAST FACILITIES INC.

PMGI HOLDINGS INC.

PURE ENTERTAINMENT TELECOMMUNICATIONS, INC.

PENTHOUSE DIGITAL MEDIA PRODUCTIONS INC.

VIDEO BLISS, INC.

DANNI ASHE, INC.

SNAPSHOT PRODUCTIONS, LLC

VARIOUS, INC. 

			
	 
	By:

	 

	 
	Name:

	Ezra Shashoua

	 
	Title:

	Chief Financial Officer

TAN DOOR MEDIA INC. 

FIERCE WOMBAT GAMES INC. (f/k/a BIG EGO GAMES INC.)

NAFT NEWS CORPORATION

PLAYTIME GAMING INC.

			
	 
	By:

	 

	 
	Name:

	Ezra Shashoua

	 
	Title:

	Treasurer

ARGUS PAYMENTS INC.

BLUE HEN GROUP INC.

FRIENDFINDER VENTURES INC.

XVHUB GROUP INC. (f/k/a GIANT SWALLOWTAIL INC.)

PERFECTMATCH INC. (f/k/a GOLDENROD SPEAR INC.)

MAGNOLIA BLOSSOM INC.

GLOBAL ALPHABET, INC. 

SHARKFISH, INC. 

TRAFFIC CAT, INC. 

BIG ISLAND TECHNOLOGY GROUP, INC. 

FASTCUPID, INC. 

MEDLEY.COM INCORPORATED 

PPM TECHNOLOGY GROUP, INC. 

FRIENDFINDER CALIFORNIA INC.

STREAMRAY INC.

CONFIRM ID, INC. 

FRNK TECHNOLOGY GROUP 

TRANSBLOOM, INC. 

STREAMRAY STUDIOS INC.

			
	 
	By:

	 

	 
	Name:

	Ezra Shashoua

	 
	Title:

	Chief Financial Officer

FORBEARING HOLDERS:

			
	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	By:

	 

	 
	Name:

	 

	 
	Title:

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