Document:

eh1300593_ex1006.htm

 

 

EXHIBIT 10.6

 

HEMISPHERE MEDIA GROUP, INC.

2013 EQUITY INCENTIVE PLAN

 

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”), is made, effective as of April 9, 2013 (hereinafter the “Date of Grant”), between Hemisphere Media Group, Inc. (the “Company”), and Craig D. Fischer (the “Participant”).

 

R E C I T A L S:

 

WHEREAS, the Company has adopted the Hemisphere Media Group, Inc. 2013 Equity Incentive Plan (the “Plan”), pursuant to which awards of Restricted Stock may be granted; and

 

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) has determined that it is in the best interests of the Company and its stockholders to grant to the Participant an award of Restricted Stock as provided herein and subject to the terms set forth herein.

 

NOW THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

 

1.           Grant of Restricted Stock.  The Company hereby grants on the Date of Grant to the Participant a total of 250,000 shares of Restricted Stock (the “Restricted Shares”), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan.  The Restricted Shares shall vest in accordance with Section 3 hereof as follows: (x) 150,000 Restricted Shares shall vest in accordance with Section 3(a)(i) (the “Time-Based Restricted Shares”), (y) 50,000 Restricted Shares shall vest in accordance with Section 3(a)(ii) (the “$12.50 Performance Restricted Shares”), and (z) 50,000 Restricted Shares shall vest in accordance with Section 3(a)(iii) (the $15.00 Performance Restricted Shares”, and together with the $12.50 Performance Restricted Shares, the “Performance Restricted Shares”).

 

2.           Incorporation by Reference, Etc.  The provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan.  In the event of a conflict between the Plan and this Agreement, the terms and conditions of this Agreement shall govern.  The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon the Participant and his legal representative in respect of any questions arising under the Plan or this Agreement.

 

 

  

 

  

 

3.           Terms and Conditions.

 

(a)           Vesting and Forfeiture.  The Restricted Shares subject hereto shall be one hundred percent (100%) unvested as of the Date of Grant.

 

(i)           Time-Based Restricted Shares.  Except as otherwise provided in the Plan and this Agreement, subject to the Participant’s continued employment with the Company, the Time-Based Restricted Shares shall vest and become non-forfeitable in equal installments on each of the first three (3) anniversaries of the Effective Date.

 

(ii)           $12.50 Performance Restricted Shares.  Except as otherwise provided in the Plan and this Agreement, subject to the Participant’s continued employment with the Company, the $12.50 Performance Restricted Shares shall vest and become non-forfeitable upon the Fair Market Value of the Common Stock equaling or exceeding $12.50 per share of Common Stock on at least ten (10) trading days (which need not be consecutive) following the Effective Date.

 

(iii)           $15.00 Performance Restricted Shares.  Except as otherwise provided in the Plan and this Agreement, subject to the Participant’s continued employment with the Company, the $15.00 Performance Restricted Shares shall vest and become non-forfeitable upon the Fair Market Value of the Common Stock equaling or exceeding $15.00 per share of Common Stock on at least ten (10) trading days (which need not be consecutive) following the Effective Date.

 

(iv)           Notwithstanding the foregoing, if Participant's employment with the Company is terminated by the Company without Cause (as such term is defined in the Employment Agreement), due to death or Disability (as such term is defined in the Employment Agreement), upon the Expiration Date (as such term is defined in the Employment Agreement), or if Executive terminates his employment for Good Reason (as such term is defined in the Employment Agreement), then (A) 100% of the Time-Based Restricted Shares shall vest and become non-forfeitable, and (B) the Performance Restricted Shares shall remain outstanding for six (6) months following such termination of employment and shall be eligible to vest to the extent provided in Section 3(a)(ii) and 3(a)(iii) hereof.  For purposes of this Agreement, “Employment Agreement” means that certain Employment Agreement between the Participant and the Company, dated as of April 9, 2013.

 

(b)           Transfer Restrictions; Holding Requirement.  Prior to the Restricted Shares vesting in accordance with Section 3(a) hereof, unvested Restricted Shares granted hereunder may not be sold, pledged, loaned, gifted or otherwise transferred (other than by will or the laws of descent and distribution) and may not be subject to lien, garnishment, attachment or other legal process.  In addition, the Participant agrees to comply with any written holding requirement policy adopted by the Company for employees.

 

(c)           Issuance.  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 in book-entry form, subject to the Company’s directions at all 

 

 

  

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times prior to the date the Restricted Shares vest.  As a condition to the receipt of the Restricted Shares, the Participant shall at the request of the Company deliver to the Company one or more stock powers, duly endorsed in blank, relating to the Restricted Shares.  The Committee may cause a legend or legends to be put on any stock certificate relating to the Restricted Shares to make appropriate reference to such restrictions as the Committee may deem advisable under the Plan or as may be required by the rules, regulations, and other requirements of the Securities and Exchange Commission, any exchange that lists the Restricted Shares, and any applicable federal or state laws.

 

(d)           Effect of Termination of Employment.  Except as otherwise provided herein (or in an employment, consulting or other written agreement between the Participant and the Company or any of its Affiliates), if the Participant’s employment with the Company terminates for any reason prior to the Restricted Shares vesting in accordance with Section 3(a) hereof, any unvested Restricted Shares shall be forfeited without consideration to the Participant on the date of termination of employment.

 

(e)           Rights as a Stockholder; Dividends.  The Participant shall be the record owner of the Restricted Shares unless and until such shares are forfeited pursuant to Section 3(d) hereof or sold or otherwise disposed of, and as record owner shall be entitled to all rights of a common stockholder of the Company, including, without limitation, voting rights, if any, with respect to the Restricted Shares; provided, that any cash or in-kind dividends paid with respect to unvested Restricted Shares shall be withheld by the Company and shall be paid to the Participant, without interest, only when, and if, such Restricted Shares shall become vested.

 

(f)           Taxes and Withholding.  The Participant shall be responsible for all income taxes payable in respect of the Restricted Shares.  Upon the vesting of the Restricted Shares, the Participant shall be required to pay to the Company, and the Company shall have the right and is hereby authorized to withhold any cash, shares of Common Stock, other securities or other property deliverable under the Restricted Shares or from any compensation or other amounts owing to the Participant, the amount (in cash, Restricted Shares, other securities or other property) of any required withholding taxes in respect of the Restricted Shares, and to take such other action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes, if applicable.  In addition, unless required pursuant to the terms of an employment, consulting or other written agreement between the Participant and the Company or any of its Affiliates, the Committee may permit the Participant to satisfy, in whole or in part, the foregoing withholding liability by (A) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest and which would not result in adverse accounting to the Company) owned by the Participant having a Fair Market Value equal to such withholding liability or (B) having the Company withhold from the number of Restricted Shares otherwise issuable or deliverable pursuant to the vesting of the Restricted Shares  a number of shares with a Fair Market Value equal to such withholding liability (but no more than the minimum required statutory withholding liability).  The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company will, to the extent permitted by law, have the right to deduct any such withholding taxes from any payment of any kind otherwise due to Participant.

 

 

  

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4.           Miscellaneous.

 

(a)           Notices.  All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested, telecopier, courier service or personal delivery:

 

	 	
if to the Company:

	
Hemisphere Media Group, Inc.

	 	  	
405 Lexington Avenue, 48th Floor

	 	  	
New York, NY, 10174

	 	  	
Attention:  Legal Department

	 	  	  
	 	
if to the Participant:

	
at the Participant’s last known address on file with the Company.

All such notices, demands and other communications shall be deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five business days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically acknowledged, if telecopied.

 

(b)           Clawback/Forfeiture.  If the Participant receives any amount in excess of what the Participant should have received with respect to the Restricted Shares by reason of a financial restatement, mistake in calculations or other administrative error, in each case, as determined by the Company’s auditors, then the Participant shall be required to repay any such excess amount to the Company upon 30 days prior written demand by the Committee.  To the extent required by applicable law (including without limitation Section 304 of the Sarbanes Oxley Act and Section 954 of the Dodd Frank Act), the Restricted Shares shall be subject to any required clawback, forfeiture or similar requirement.

 

(c)           Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

(d)           No Rights to Service.  Nothing contained in this Agreement shall be construed as giving the Participant any right to be retained, in any position as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the rights of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Participant at any time for any reason whatsoever.

 

(e)           Bound by Plan.  By signing this Agreement, the Participant acknowledges that he has received a copy of the Plan and has had an opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan.

 

(f)           Beneficiary.  The Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation.  If no designated beneficiary survives 

 

  

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the Participant, the executor or administrator of the Participant’s estate shall be deemed to be the Participant’s beneficiary.

 

(g)           Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

(h)           Section 409A.  It is intended that the Restricted Shares be exempt from or comply with Section 409A of the Code and this Agreement shall be interpreted consistent therewith.  This Agreement is subject to Section 14(t) of the Plan.

 

(i)           Electronic Delivery.  By executing this Agreement, the Participant hereby consents to the electronic delivery of prospectuses, annual reports and other information required to be delivered by Securities and Exchange Commission rules.  This consent may be revoked in writing by the Participant at any time upon three business days’ notice to the Company, in which case subsequent prospectuses, annual reports and other information will be delivered in hard copy to the Participant.

 

(j)           Securities Laws.  The Participant agrees that the obligation of the Company to issue Restricted Shares shall also be subject, as conditions precedent, to compliance with applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, state securities or corporation laws, rules and regulations under any of the foregoing and applicable requirements of any securities exchange upon which the Company’s securities shall be listed.

 

(k)           Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.  No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto.

 

(l)           Governing Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.

 

(m)           Headings.  The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

 

(n)           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.

 

[Remainder of page intentionally blank]

 

 

  

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IN WITNESS WHEREOF, this Agreement has been executed by the Company and the Participant as of the day first written above.

 

	 	
HEMISPHERE MEDIA GROUP, INC.

	  
	 	  	  	  
	 	  	  	  
	 	
By:

	
/s/ PETER M. KERN

	  
	 	
Name:

	
Peter M. Kern

	  
	 	
Title:

	
Chairman of the Board and Director

	
 

	 	  	  	  
	 	  	  	  
	 	
/s/ CRAIG D. FISCHER

	  
	 	
CRAIG D. FISCHER

	  

 

 

 6ex101.htm

Exhibit 10.1

Contract No.________________

House Lease Contract

(Origin Water Building)

September 2012

  

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Landlord: Beijing Origin Water Technology Co., Ltd. (hereinafter referred to as “Party A”)

Address: 23-2 Life Science Park Road, Beiqing Road, Haidian District, Beijing

Telephone: 86-10-80768888-8621

Legal Representative: Wen Jianping

Tenant: Beijing Sunway New Power Medical Technology Co., Ltd. (hereinafter referred to as “Party B”)

Address: Room 1508-1510, Zhongguancun Building, 27 Zhongguancun Avenue, Haidian District, Beijing

Telephone: 86-10-51905959

Legal Representative: Liang Deli

This Contract was entered into by and between Party A and Party B for the matters that Party B leases the premises and their accessory facilities from Party A through friendly negotiation on the basis of equality, free will and good faith.

Chapter I Basic Information of the Premises

Article 1 Name: the third floor of the wing building of the Origin Water Buiding, located at 23-2 Life Science Park Road in Beiqing Road in Haidian District, Beijing.

Article 2 Floor area: 1,050 square kilometers.

Article 3 Party A is the owner of the aforementioned premises and enjoys the legal rights to lease them.

Article 4 The Purpose of Use: offices.

Article 5 See appendix 1 for housing inspection.

Chapter II Term of Tenancy and Rent-free Period

Article 6 The term of tenancy of the premises herein will commence from the 25th day of October 2012 and will expire on the 26th day of October 2015. Of this, the rent-free period will be from the 25th day of October 25 2012 to the 10th day of November 2012.

Chapter III Rent, Security Deposit, Property Management Fee and Other Fees

Article 7 Both parties agree that the rent per year (including 365 days) totals RMB 845,000 (Eight hundred and forty five thousand yuan). The rent per month is RMB 70,417 (Seventy thousand four hundred and seventeen yuan). Mode of payment: pay the three-month rent and the security deposit which is equal to the one-month rent, in advance.

Article 8 Rent Payment:

1. The rent will be paid by three months;

2. The first-phased rent totals RMB 176,042 (One hundred and seventy six thousand forty two yuan), which shall be paid within 7 days as of the date of signature of the Contract. The following rents shall be paid within 10 days in advance of the 25th day of January 2013, the 25th day of April 2013, the 25th day of July 2013 and so on.

 

 

  

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3. Party A shall provide Party B with the lease invoice after receiving the payment.

4. Party B shall pay the one-time renovation fee of RMB 175,000 (One hundred and seventy five thousand yuan) within 7 days as of the date of the signature of the Contract to Party A, which shall invoice Party B for that.

5. Bank Information:

Account Name: Beijing Origin Water Technology Co., Ltd.

Opening Bank: ________________________________

Account No.:  _________________________________

Article 9 Party B agrees to pay RMB 70,417 (Seventy thousand four hundred and seventeen yuan) as the deposit, namely, the tenancy security deposit, to Party A in order to ensure that Party B will have paid all payable rents and other incidental charges at the time of its surrender of tenancy . The security deposit hereof shall be paid by Party B to Party A when both parties sign this contract. Party A will deduct the unpaid fees from the security deposit and will return the rest interest-free deposit to Party B within 15 working days as f the date of termination of the Contract.

Article 10 During the period of tenancy, Party A shall bear property management and cold/hot air-conditioning fees and Party B shall bear the electric charge, the telephone rate, the network fee and the cleaning fee.

Chapter IV Delivery of the Premises

Article 11 Party A shall deliver the keys to the premises to Party B on October 25, 2012. Party A and Party B will inspect the premises in accordance with the Property List.

Article 12 Party A shall pay all fees which are related to the premises prior to the signature of this Contract.

 

Chapter V Renovation and Return of the Premises

Article 13 Party B may renovate and reconstruct the premises with Party A’s approval. The renovation and reconstruction scheme shall satisfy the requirements of fire and engineering security. Party B may not reconstruct main facilities and structures such as the major structure of the premises.

Article 14 Party B shall return the premises to Party A as of the date of termination of this Contract and shall ensure that the fixed attachments, equipment and facilities are intact without any damage (exclusive of natural wear and tear). Party B shall be responsible for repair and make compensations due to damages caused by its faults. The fixed attachments are not allowed to be removed by principle when Party B moves out of the premises as the Contract expires. Party B shall restore the premises in the event that the fixed attachments are removed.

Chapter VI Rights and Duties of Party A

Article 15 Rights and Duties of Party A

1. Party A shall make commitment that it is the legal owner of the premises and is entitled to lease the premises. Party A shall bear all losses caused by illegal ownership and lease of the premises.

2. Party A ensures that the premises are available for normal use in the term of tenancy and may not interfere with the normal use of Party B without any cause or reason.

3. Party A shall provide Party B with materials as required by industrial and commercial administrative departments and revenue departments for registration.

4. Party A shall bear the costs of maintenance or change of all facilities due to reasons such as natural ageing and reconstructions as required by governments.

5. Party A shall pay the property management fees and heating fees to the property management company in order not to affect the rights of Party B. Party B has the right to deduct the aforementioned fees from the rent to the property management company in case that Party B’s rights are damaged due to Party A’s failure to pay the aforementioned fees to the property management company.

6. Party A shall give a three-day written notice to Party B in case of transfer of rights of the landlord, change of the owner of the premises or mortgage of the premises and shall ensure that all terms and conditions of this Contract will remain valid for the proposed landlord (the property owner).

 

  

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Chapter VII Rights and Duties of Party B

Article 16 Rights and duties of Party B

1. Party B shall ensure that the materials related to identity are intact and accurate and that it will legally use the premises in the term of tenancy.

2. Party B shall pay the rent specified in Chapter III herein.

3. Party B shall be responsible for repair and bear the costs concerned due to damages caused by illegal and irrational use of the premises.

4. Party B may not sublease the premises without the written approval of Party A.

5. Party B shall notify Party A in advance in case of its separation and merger during in the term of tenancy and shall ensure that the linked organization will perform its rights and duties herein.

6. Party B shall undertake the due responsibilities and consequences arising out of its operation, without any liability of Party A. Party B promises not to engage in illegal and rule-breaking activities.

7.  The articles which are left by Party B in the premises as of the date of termination of the Contract are deemed to be abandoned by Party B.  Party A may have the power to dispose of them.

8.  Within 60 days prior to the expiration or termination of the Contract, Party B shall allow Party A to lead its clients to inspect the premises when receiving the notice in advance.

9. Party B ensures that the employees working in the premises shall be less than 50.

Chapter VIII   Liabilities for Breach of Contract

Article 17 Each party shall indemnity the other party for the losses caused by breach of the Contract.

Article 18 Party A shall pay the liquidated damages, equal to the twofold rent per day, to Party B in case of delivery of the premises for one day late. Party B has the right to terminate the Contract in case that the delivery is 7days late.  Party A shall return the twofold security deposit and the twofold paid rent.

Article 19 Party B shall pay the liquidated damages, which are equal to the twofold rent per day and will be deducted from the security deposit, to Party A in case of its return of the premises for one day late as the Contract expires.

Article 20 Party B shall pay the liquidated damages, accounting for 10‰ of the payable rent, to Party A in the event that Party B pays the rent for one day late.  Party A has the right to terminate the Contract and take the premises back in the event that Party B pays the rent 7 days late.

Article 21 Party B shall give a 90-day notice to Party A in case of termination of the Contract. Party A will not return the security deposit.

Article 22 Party A shall pay the liquidated damages, accounting for 10‰ of the security deposit, to Party B in case that Party A returns the security deposit for one day late.

Chapter IX Modification and Renewal

Article 23 Each party who intends to modify the articles hereof shall give a written notice to the other party in advance. Both parties will make the supplementary agreement related to modifications through negotiation.

Article 24 Party B has the priority to renew the contract under the same conditions of the premises. The renewal conditions shall be fair and rationale. Each party is not allowed to disregard the opinions of the other party and ignore the market quotations to damage interests of the other party. Party A and Party B may negotiate the renewal of the Contract in two months prior to the expiration of the Contract.

  

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Chapter X Force Majeure

Article 25 Party A and Party B may bear no liability for damages of the premises, losses of Party A or Party B or failure to perform the contract due to the force majeure.

Chapter XI Dispute Resolution

Article 26 All disputes arising out of the Contract shall be resolved by Party A and Party B through friendly negotiation.  In the event that the dispute is not resolved through negotiation, any party may submit the dispute for arbitration to Beijing Arbitration Commission.

Chapter XII Execution of the Contract and Other Conditions

Article 27 All matters not provided herein shall be determined by Party A and Party B through negotiation.

Article 28 The appendix is a necessary part of the Contract and has the same effect.

Article 29 The Contract will come into effect with the signature (stamp) and the payments made. The Contract is in four copies with the same effect. Party A, Party B and the wittiness respectively hold one copy.

Article 30 The date of signature:

Article 31 The place of signature: Haidian District, Beijing

 

Party A: Beijing Origin Water Technology Co., Ltd. Party B: Beijing Sunway New Power Medical Technology Co., Ltd

 

	Authorized Representative:    	 Authorized Representative:	 	 

 

Witness:

Agent:

Telephone of the Witness:

Appendix I: Property List

1. Roof: _______________________________________________________

2. Wall Surface: _________________________________________________

3. Floor: _______________________________________________________

4. Housing Structures: ____________________________________________

5. Air-conditioners:_______________________________________________

6. Keys to Door: _________________________________________________

7. Keys to Partitions:______________________________________________

8. Keys to Mailbox: _______________________________________________

9. Electricity Card: ________________________________________________

10. The Readings of the Electricity Meter:_______________________________

11. Other Items: __________________________________________________

 

	Party A:      	Party B:	 	 
	Agent:    	Agent:	 	 
	Witness:	 	 	 

 

Witness:

Telephone:

Date:

 

 

 

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