Document:

EXHIBIT 10.5

 

Commercial Note

Line of Credit 

 

	$100,000.00	November 12, 2015

 

Subject to the terms and conditions of
this Commercial Note for Line of Credit (the “Note”), Beechwood Properties, LLC (“Lender”) has made a Line
of Credit Loan (the “Line of Credit”) to RedHawk Holdings Corp., a Nevada corporation (the “Borrower”),
in the maximum principal amount of ONE HUNDRED THOUSAND and no/100 ($100,000.00) dollars. This Line of Credit is a non-revolving
loan, and the principal amount available under this Line of Credit shall be reduced by the amount of each advance and shall not
be increased after payments have reduced the amount outstanding.

 

	REPAYMENT:	 	All outstanding principal and accrued interest shall be due and payable in full on October 31, 2016 (the “Maturity Date”). Upon fifteen (15) business day’s advance notice, Borrower may prepay without penalty any principal on this Note in whole or in part and any prepayments made on this Note shall be applied to the principal payment(s) due on this Note.
	 	 	 
	INTEREST:	 	Interest shall accrue on this Note at the rate of 5.0% per annum from date of advance until paid, payable in monthly installments of interest only, payable in arrears, commencing on November 30, 2015 and continuing on the same day of each month thereafter, with a final payment of all principal and outstanding interest due (along with any other fees and expenses) and payable on the Maturity Date. 
	 	 	 
	DEFAULT RATE:	 	After maturity, whether that maturity results from acceleration or otherwise, interest shall, to the extent permitted by law, accrue at the Default Rate.  Additionally, upon the occurrence of any Default (and from and after the date of such occurrence) and following the declaration of the Borrower’s Default, interest shall, to the extent permitted by law, accrue at the Default Rate.  The “Default Rate” shall be the maximum rate authorized by applicable law, and if applicable law establishes no maximum rate, then Eighteen Percent (18%) per annum.  All interest shall be computed on the basis of the actual number of days elapsed over a year composed of 360 days.  Interest shall accrue from the first date that funds are advanced to Borrower until all sums due hereunder are paid in full.
	 	 	 
	ADVANCES:	 	Advances totaling approximately $44,000.00 have been made through the date of this Note. 
	 	 	 
	 	 	From time to time, and as a condition to each advance under the Line of Credit, Borrower shall submit to Lender a borrowing request, setting forth the principal amount of the advance requested by Borrower from Lender pursuant to the terms hereof, the total amount advanced to date and the requested date of funding. The amount of the requested advance when added to the then outstanding principal balance of the Line of Credit shall not exceed $100,000.00.  Such borrowing request shall be made no later than seven (7) business days prior to the requested day of funding. Lender is not obligated to make any additional advances pursuant to any borrowing request and all future advances are in the sole discretion of the Lender. 
	 	 	 
	 	 	Each advance under this Note and each payment on this Note shall be evidenced by entries in the Lender’s and Borrower’s internal records, which shall be prima facie evidence of (a) the amount of principal and interest owing on this Note from time to time; (b) the amount of each advance made to Borrower under this Note; and (c) the amount of each principal and/or interest payment received by Lender on this Note. The failure to make an accurate entry of advances and payments shall not limit or otherwise affect the obligation of Borrower to repay funds actually advanced by Lender hereunder.  
	 	 	 
	OPTIONAL CONVERSION:	 	Subject to the conditions herein, Lender shall have the right, but not the obligation, to convert the amount of any prepayment and all outstanding principal, accrued but unpaid interest, and any other fees, costs and expenses owing to the Lender at maturity into shares of the Company’s Series A preferred stock, par value $1,000.00 per share (the “Preferred Stock”). Such conversions may be made at the Lender’s option upon maturity or any prepayment. 

 

    	 	 	 

     

    

 

	 	 	In order to convert the amounts outstanding into Preferred Stock, no later than ten (10) business days prior to the Maturity Date, or within seven (7) business days of Borrower’s notice of prepayment, the Lender shall provide written notice of its option to convert amounts owed into shares of the Company Preferred Stock. The number of whole shares of Preferred Stock to be issued shall be equal to: (1) the aggregate amount (including accrued but unpaid interest and fees) owed, or in the event of a conversion upon prepayment, the amount prepaid, by Borrower to Lender divided by (2) the par value of each share of Preferred Stock. The Borrower shall pay Lender cash in lieu of any fractional shares of Preferred Stock that would otherwise be issued. 
	 	 	 
	 	 	THE PREFERRED STOCK INTO WHICH THIS NOTE IS CONVERTIBLE, AND THE COMMON STOCK INTO WHICH THE PREFERRED STOCK IS CONVERTIBLE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  
	  	 	 
	DEFAULT:	 	The occurrence of the failure of Borrower to make any payment of principal or interest under this Note when due shall be considered an event of default (“Default”). In the event of a Default, Lender will be under no further obligation to comply with any obligations with respect to this Note.  
	 	 	 
	 	 	Upon the occurrence of a Default, Lender may pursue any one or more of the following remedies:
	 	 	 
	 	 	(i)	cancel this Note by written notice to Borrower, in which event Lender shall be fully released and relieved of all further obligations and liabilities to Borrower hereunder; provided however, that Borrower shall not be released from any of its obligations and liabilities owed to Lender hereunder;
	 	 	 	 
	 	 	(ii)	institute appropriate proceedings to specifically enforce performance hereof; or
	 	 	 	 
	 	 	(iii)	accelerate maturity of the Note, and demand payment (or conversion into Preferred Stock) of the principal sums due hereunder with interest, advances and costs, and in default of said payment or any part hereof and pursue any or all of its other rights and remedies provided by law.
	 	 	 
	 	 	The remedies herein provided shall be in addition to and not in substitution for the rights and remedies which would otherwise be vested in Lender at law or in equity, all of which rights and remedies are specifically reserved by Lender.  The remedies herein provided or otherwise available to Lender shall be cumulative and may be exercised concurrently.  The failure to exercise any of the remedies herein provided shall not constitute a waiver thereof, nor shall exercise of any of the remedies hereby provided prevent the subsequent or concurrent resort to any other remedy or remedies.  It is intended that all remedies herein provided or otherwise available to Lender shall continue and be available to Lender until all sums due it by reason of this Note have been paid to it in full and all obligations of Borrower pursuant to this Note have been satisfied.

 

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Each party to this Note waives presentment
for payment, demand, notice of dishonor, protest, pleas of discussion and division. To secure the indebtedness evidenced by this
Note, including, without limitation, future advances, with interest, reasonable and documented attorneys' fees, documented expenses
of collection and documented costs, Borrower further agrees to pay any and all documented charges, documented fees, documented
costs and/or documented taxes levied or assessed against Lender in connection with this Note. If any payment on this Note is eleven
(11) days or more late, Borrower agrees to pay to the Lender, in addition to the amount otherwise due hereunder, a delinquency
charge of 5.00% of the unpaid amount of payment, or $50.00, whichever is greater. Late charges will not be assessed following declaration
of default and acceleration of maturity of this Note. In the event that any payment under this Note by check or preauthorized charge
is later dishonored or returned to Lender unpaid due to nonsufficient funds, Borrower agrees to pay Lender an additional NSF check
charge equal to $50.00. The provisions of this Note may not be waived or modified except in writing, signed by Lender. No failure
or delay of Lender in exercising its rights shall be construed as a waiver.

 

SUCCESSORS AND ASSIGNS. This Note
is binding upon and shall inure to the benefit of the Lender and the Borrower and their respective successors and assigns, except
that the Borrower may not assign or transfer any of its rights or obligations under this Note without the prior written consent
of the Lender.

 

ENTIRE AGREEMENT; AMENDMENT; WAIVERS.
This Note embodies the final, entire agreement among the parties hereto and supersedes any and all prior commitments, agreements,
representations, and understandings, whether written or oral, relating to the subject matter hereof and may not be contradicted
or varied by evidence of prior, contemporaneous, or subsequent oral agreements or discussions of the parties hereto. There are
no oral agreements among the parties hereto. The provisions of this Note to which the Borrower is a party may be amended or waived
only by an instrument in writing signed by the parties hereto.

 

COUNTERPARTS. This Note may be executed
in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

 

SEVERABILITY. Any provision of this
Note held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Note and the effect thereof shall be confined to the provision held to be invalid or illegal.

 

APPLICABLE LAW. This Note shall
be governed by and construed and enforced in accordance with the internal laws of the State of Louisiana, without regard to the
principals of conflict of laws thereof.

 

Lender:

Beechwood Properties, LLC

 

	By: 	/s/ G. Darcy Klug	 
	Name: G. Darcy Klug	 
	Title:  Manager	 

 

Borrower:

RedHawk Holdings Corp.

 

	By: 	/s/ Daniel J. Schreiber	 
	Name: Daniel J. Schreiber	 
	Title:  Chief Executive Officer	 

 

    	 	3Exhibit 10.1

 

CIFC CORP.

 

2011 STOCK OPTION AND INCENTIVE PLAN

 

AMENDED AND RESTATED RESTRICTED STOCK UNIT AWARD AGREEMENT

 

This Amended and Restated Restricted Stock Unit Award Agreement (“Agreement”) is entered into on December 31, 2015 (the “Effective Date”), and is between CIFC Corp., a Delaware corporation (the “Company”), and Oliver Wriedt (the “Participant”).  This Agreement amends and restates in its entirety the Restricted Stock Unit Award Agreement dated as of June 13, 2014 between the Company and the Participant, as amended to date (the “Existing Award Agreement”) pursuant to which the Company granted the Participant 300,000 time-based Restricted Stock Units under the terms of the CIFC Corp. 2011 Stock Option and Incentive Plan, as amended from time to time (the “Plan”).  Any term capitalized but not defined in this Agreement will have the meaning set forth in the Plan.

 

1.             Restricted Stock Unit Award.  In accordance with the terms of the Plan, the Company granted to the Participant the right to receive an aggregate award of 300,000 Restricted Stock Units pursuant to the Existing Award Agreement.  Each Restricted Stock Unit represents the right to acquire one share of Common Stock, subject to the terms and conditions herein.  Unless the context dictates otherwise, all Restricted Stock Units shall be referred to hereinafter as the “Units.”  From and after the Effective Date, the Units shall be subject to the terms and conditions of this Agreement, not the Existing Award Agreement.

 

2.             Vesting.

 

(a)           Except as provided in Section 6, the Units shall become vested and nonforfeitable (or, to the extent such date has already passed, have become vested and non-forfeitable) in installments as set forth below, subject to the Participant remaining in continuous Service on each Vesting Date:

 

	
Vesting
   Date
    	
 
    	
Units
   Vesting
    	
 
    	
Vesting
   Date
    	
 
    	
Units
   Vesting
    	
 
    	
Vesting
   Date
    	
 
    	
Units
   Vesting
    	
 
    
	
December 31,   2014
    	
 
    	
12,000
    	
 
    	
September 30, 2016
    	
 
    	
6,000
    	
 
    	
June 30, 2018
    	
 
    	
6,000
    	
 
    
	
March 31,   2015
    	
 
    	
3,000
    	
 
    	
December 31, 2016
    	
 
    	
6,000
    	
 
    	
September 30, 2018
    	
 
    	
6,000
    	
 
    
	
June 30,   2015
    	
 
    	
3,000
    	
 
    	
March 31, 2017
    	
 
    	
66,000
    	
 
    	
December 31, 2018
    	
 
    	
6,000
    	
 
    

 

 

	
September 30,   2015
    	
 
    	
3,000
    	
 
    	
June 30, 2017
    	
 
    	
6,000
    	
 
    	
March 31, 2019
    	
 
    	
63,000
    	
 
    
	
December 31,   2015
    	
 
    	
15,000
    	
 
    	
September 30, 2017
    	
 
    	
6,000
    	
 
    	
June 30, 2019
    	
 
    	
3,000
    	
 
    
	
March 31,   2016
    	
 
    	
6,000
    	
 
    	
December 31, 2017
    	
 
    	
6,000
    	
 
    	
September 30, 2019
    	
 
    	
3,000
    	
 
    
	
June 30,   2016
    	
 
    	
6,000
    	
 
    	
March 31, 2018
    	
 
    	
66,000
    	
 
    	
November 28, 2019
    	
 
    	
3,000
    	
 
    

 

(b)           “Service” means the provision of services in the capacity of (i) an employee of the Company or its Subsidiaries, (ii) a non-employee member of the Company’s Board or the board of directors of a Subsidiary, or (iii) a consultant or other independent advisor to the Company or its Subsidiaries.

 

3.             Settlement Date.  The date on which any Units become vested and nonforfeitable pursuant to Section 2(a) or Section 6 shall be referred to herein as a “Settlement Date.” Dividends shall not accrue with respect to the Units unless and until such Units vest and are settled pursuant to this Agreement.

 

4.             Form and Timing of Settlement.

 

(a)           As soon as practicable following each Settlement Date (and in no event later than 30 days after the Settlement Date), the Company shall settle the Units that vested on such Settlement Date by issuing to the Participant the number of shares of Common Stock equal to the aggregate number of Units that vested on such Settlement Date and the Participant shall thereafter have all the rights of a stockholder of the Company with respect to such shares.  No payment will be made hereunder for a fractional Unit, and any fractional Unit subject hereto on a Settlement Date will be forfeited.

 

(b)           The Participant shall, no later than the date as of which the value of any Units or other amounts received hereunder first becomes includable in the gross income of the Participant for Federal income tax purposes, pay to the Company or a Subsidiary thereof, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company or a Subsidiary thereof with respect to such income.  If the Participant elects to satisfy such obligation by withholding shares of Common Stock to be issued pursuant to settlement of a Unit, the Company and its Subsidiaries shall use best efforts to satisfy the minimum required tax withholding obligation by withholding from shares of Common Stock to be issued pursuant to settlement of a Unit a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the minimum withholding amount due.

 

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5.             Shares Subject to Holding Period.  Upon settlement of any Units, 50% of the shares of Common Stock acquired by the Participant (net of shares used to satisfy tax withholding obligations) shall be subject to a holding period during which the Participant may not transfer, sell or otherwise dispose of such shares of Common Stock, lasting until the earlier of (i) June 13, 2019 or (ii) 6 months after the Participant’s termination of Service.  Notwithstanding the foregoing, if the Participant’s Service terminates upon his or her death, disability or Qualified Retirement, or if the Participant’s Service is terminated as described in Section 6(b) or Section 6(c), then the holding period shall expire upon such termination of Service.  Additionally, no Holding Period shall apply following a Sale Event.  The Company reserves the right to enforce the holding period by any reasonable means that it deems advisable.  For purposes of this Agreement, “Qualified Retirement” means the Participant’s voluntary termination of Service after reaching age 65 and completing 10 years of service with the Company, its Subsidiaries or predecessors.

 

6.             Termination of Service.

 

(a)           Termination of Service upon Death or Disability.  Except as otherwise provided in Section 6(e), upon termination of Service due to the Participant’s death or by the Company or a Subsidiary thereof due to the Participant’s disability, (i) the Participant will receive accelerated vesting with respect to any Units that would have vested in the 24 month period following the termination and (ii) the Participant will forfeit any remaining unvested Units.

 

(b)           Termination of Service by the Company Without Cause or Termination of Service by the Participant for Good Reason.  Except as otherwise provided in Section 6(e), upon any termination of Service by the Company or a Subsidiary thereof without Cause (but not due to disability) or by the Participant for Good Reason, (i) the Participant will receive accelerated vesting with respect to any Units that would have vested in the six (6) month period following such termination of Service and (ii) the Participant will forfeit any remaining unvested Units.

 

(i)            “Cause” means:

 

(A)          the breach by the Participant of any of the restrictive covenant provisions contained in Section 7 of this Agreement;

 

(B)          the Participant’s commission of a felony or violation of any law involving moral turpitude, dishonesty, disloyalty or fraud;

 

(C)          any failure by the Participant to substantially comply with any written rule, regulation, policy or procedure of the Company or its Subsidiaries applicable to the Participant, which noncompliance could reasonably be expected to have a material adverse effect on the business of the Company or any Subsidiary;

 

(D)          any failure by the Participant to comply with the Company’s or its Subsidiaries’ policies with respect to insider trading applicable to the Participant;

 

(E)           a willful material misrepresentation at any time by the Participant to any member of the Board or any director or superior executive officer of the Company or its Subsidiaries;

 

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(F)           the Participant’s willful failure or refusal to comply with any of his or her material obligations to the Company or any of its Subsidiaries or a reasonable and lawful instruction of the Board or the person to whom the Participant reports; or

 

(G)          commission by the Participant of any act of fraud or gross negligence in the course of his or her Service or any other action by the Participant, in either case that is determined to be materially detrimental to the Company or any of its Subsidiaries (which determination, in the case of gross negligence or such other action, shall be made by the Administrator in its reasonable discretion);

 

provided that, except for any willful or grossly negligent acts or omissions, the commission of any act or omission described in clause (A) or (C) that is capable of being cured shall not constitute Cause hereunder unless and until the Participant, after written notice from the Company to him specifying the circumstances giving rise to Cause under such clause, shall have failed to cure such act or omission to the reasonable satisfaction of the Administrator within 10 business days after such notice; and

 

provided further, that the Participant’s Service shall be deemed to have terminated for Cause if, after the Participant’s Service has terminated, facts and circumstances are discovered that would have justified a termination for Cause.

 

(ii)           “Good Reason” shall mean, without the Participant’s consent, the occurrence of any of the following events:

 

(A)          a material reduction in the Participant’s base salary;

 

(B)          a material adverse change in the Participant’s responsibilities; or

 

(C)          any requirement that the Participant’s primary place of employment be based anywhere more than 50 miles outside the city limits of New York, NY (provided that the same materially increases the Participant’s commute).

 

Notwithstanding the foregoing, “Good Reason” shall not exist with respect to the matters set forth in clauses (A), (B) or (C) above unless, after written notice from the Participant to the Administrator within 90 days after the first occurrence of the event alleged to give rise to Good Reason specifying the circumstances giving rise to Good Reason under such clause, the Company shall fail to cure the circumstances giving rise to Good Reason to the reasonable satisfaction of the Participant within 10 business days after such notice and the Participant terminates Service within 30 days after such failure to cure.

 

(c)           Voluntary Termination of Service by the Participant Without Good Reason.  Except as otherwise provided in Section 6(e), upon any termination of Service by the Participant without Good Reason, the Participant will forfeit any unvested Units.

 

(d)           Termination of Service by the Company or a Subsidiary Thereof for Cause.  Upon any termination of Service by the Company or a Subsidiary thereof for Cause, the Participant will forfeit any unvested Units.  In addition, the Company, at its option, will have the

 

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right to repurchase shares held by the Participant that were acquired through settlement of any Units at the Fair Market Value of such shares.

 

(e)           Termination of Service in Connection with a Sale Event.

 

(i)            If a Sale Event occurs and the Participant either (A) has his Service terminated by the Company or a Subsidiary thereof without Cause 6 months prior to the effective date of a Sale Event or at any time thereafter, (B) resigns for Good Reason 6 months prior to the effective date of a Sale Event or at any time thereafter or (C) terminates Service for any reason other than for Cause on or after the later of January 2, 2018 and the 18 month anniversary of such Sale Event, the Participant will receive accelerated vesting of the entirety of his or her unvested Units, with the Settlement Date to be the later of the date of such termination or such Sale Event.  Any vesting required under Section 6(b) as the result of a termination of Service without Cause or for Good Reason shall continue to occur upon such termination in accordance with Section 6(b) (this Section 6(e) may provide additional vesting upon such termination or at a later date).

 

(ii)           “Sale Event” shall mean the occurrence of any of the following events, provided that such event satisfies the requirements of Treasury Regulation 1.409A-3(i)(5)(v), (vi) or (vii):

 

(A)          the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity;

 

(B)          a merger, reorganization or consolidation pursuant to which the largest holder of the Company’s outstanding voting power immediately prior to such transaction ceases to be the largest owner of outstanding voting power of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of such transaction;

 

(C)          the sale of all of the Stock of the Company to an unrelated person or entity; or

 

(D)          any other transaction in which the largest owner of the Company’s outstanding voting power prior to such transaction ceases to be the largest owner of the outstanding voting power of the Company or any successor entity immediately upon completion of the transaction.

 

Notwithstanding anything contained in this Agreement to the contrary, to the extent permitted by Code Section 409A, upon the occurrence of a Sale Event in which the purchaser or its ultimate parent is a privately held company or a publicly traded company with limited liquidity (as determined by the Board prior to such Sale Event in its sole discretion),  if the Units are not terminated and cashed out in accordance with Treasury Regulation 1.409A-3(j) (which decision to so cash out such Units shall be within the sole discretion of the Board), each then-unvested Unit shall be converted into a cash amount equal to the per share of Common Stock amount paid by the acquiror in such Sale Event and shall not thereafter increase or decrease in value.  Upon such conversion, the Company shall, or shall cause the acquiror to, deposit the cash value of such unvested Units in an irrevocable rabbi trust that satisfies the requirements of IRS Revenue

 

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Procedure 92-64 with a bank reasonably acceptable to the Participant.  Within 30 days after a Unit becomes vested in accordance with Section 2(a) or this Section 6, the cash value of such Unit shall be paid to the Participant (less applicable withholdings and deductions).  From and after such Sale Event, the Participant shall cease to have any right to receive Common Stock or other equity securities in respect of the Units.

 

Notwithstanding anything contained in this Agreement or the Plan to the contrary, the settlement of the Units shall not be accelerated other than as provided in this Section 6 (unless such acceleration is done in compliance with a permitted exception under Code Section 409A).

 

7.             Confidentiality; Nondisparagement.

 

(a)           Nondisclosure and Nonuse of Confidential Information.  The Participant shall not disclose or use at any time, either during the Participant’s Service or thereafter, any Confidential Information (as defined below) of which the Participant is or becomes aware, whether or not such information is developed by the Participant, except to the extent that such disclosure or use is directly related to and required by the Participant’s performance of duties assigned to the Participant by the Company or its Subsidiaries.  The Participant shall take all appropriate steps to safeguard Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft.  For purposes of this Agreement, the term “Confidential Information” is defined to include all proprietary information or data relating to the business of Company or its Subsidiaries to which the Participant has access and/or learns prior to or during the Participant’s Service, including business and financial information; new product development; formulas, identities of and information concerning clients, vendors and suppliers; development, expansion and business strategies, plans and techniques; computer programs, devices, methods, techniques, processes and inventions; research and development activities; compilations and other materials developed by or on behalf of the Company or its Subsidiaries (whether in written, graphic, audio-visual, electronic or other media, including computer software).  Confidential Information also includes information of any third party doing business with the Company or its Subsidiaries that such third party identifies as being confidential or that is subject to a confidentiality agreement with such third party.  Confidential Information shall not include any information that is in the public domain or otherwise publicly available (other than as a result of a wrongful act of the Participant or an agent or other employee of the Company or its Subsidiaries, including a breach of this Section 7(a)).

 

(b)           Non-disparagement.  The Participant agrees not to make any communication to any third party (including, without limitation, any client (including potential clients) or employee of the Company or its Subsidiaries) that would, or is reasonably likely to, disparage, create a negative impression of, or in any way be harmful to the business or business reputation of the Company or its Subsidiaries or their respective successors and assigns, and the then current and former officers, directors, shareholders, partners, members, employees, agents and consultants (or person acting in a similar capacity) of each of the foregoing.

 

(c)           Judicial Modification.  If the final judgment of a court of competent jurisdiction declares that any term or provision of this Section 7 is invalid or unenforceable, the parties agree that (i) the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or geographic area of the term or provision, to delete specific

 

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words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, (ii) the parties shall request that the court exercise that power, and (iii) this Agreement shall be enforceable as so modified after the expiration of the time within which the judgment or decision may be appealed.

 

(d)           Remedy for Breach.  In addition to the remedies available to the Company under this Agreement upon a breach or threatened breach of any of the covenants contained in this Section 7 (including termination of the Participant’s Service for Cause as described in Section 6), the Company shall also have and may seek enforcement of any other penalties or restrictions that may apply under any employment agreement, state law, or otherwise.

 

8.             Unit Transfer: Restriction on Settlement.

 

(a)           Except as provided in subsection (c) below, the Participant may not sell, transfer, pledge, assign or otherwise alienate or hypothecate this Agreement or any of the Units.

 

(b)           Except as provided in subsection (c) below, during the Participant’s lifetime and subject to the terms of this Agreement and the Plan, only the Participant or his or her guardian or legal representative may receive any shares of Common Stock pursuant to settlement of any Units.  The Administrator may, in its discretion, require a guardian or legal representative to supply it with the evidence the Administrator reasonably deems necessary to establish the authority of the guardian or legal representative to receive any shares of Common Stock pursuant to settlement of any Units on behalf of the Participant or transferee, as the case may be.

 

(c)           This Agreement and the Units shall not be assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order (as defined in Code Section 414(p)(1)(B)) in settlement of marital property rights.  Except to the extent required by law, no right or interest of any Participant shall be subject to any lien, obligation or liability of the Participant.

 

9.             Securities Law Requirements.  If at any time the Administrator determines that issuing shares of Stock pursuant to this Agreement would violate applicable securities laws, the Units will not be settled, and the Company will not be required to issue shares of Stock.  The Administrator may declare any provision of this Agreement or action of its own null and void, if it determines the provision or action fails to comply with the short-swing trading rules.  As a condition to settlement of any Unit, the Company may require the Participant to make written representations it deems necessary or desirable to comply with applicable securities laws.

 

10.          Section 409A.  This Agreement is intended to comply with or be exempt from Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance that may be issued after the Effective Date, “Section 409A”) and, to the extent applicable, this Agreement shall be interpreted in accordance with Section 409A.  However, notwithstanding any other provision of the Plan or this Agreement, if at any time the Company determines that the Units may be subject to Section 409A, the Company shall have the right in its sole discretion (without any obligation to do so or to indemnify the Participant or any other person for failure to do so) to adopt such amendments to the Plan or this Agreement, or adopt other policies and procedures

 

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(including amendments, policies and procedures with retroactive effect), or take any other actions, as the Company determines are necessary or appropriate either for the Units to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.  Notwithstanding the foregoing or anything contained herein to the contrary, no provision of the Plan or this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from the Participant or any other individual to the Company or any of its affiliates.  Each settlement of a Unit in connection with a Settlement Date shall be treated as a separate payment for purposes of Section 409A.  To the extent that any Units are determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A, then if the Participant is a “specified employee” (within the meaning of Section 409A) at the time of his “separation from service” (within the meaning of Section 409A), then to the extent required by Section 409A, any Units that otherwise would have been settled within 6 months after the date of such separation from service instead shall be settled on the earlier of (i) six (6) months and one (1) day after the Participant’s separation from service and (ii) the date of the Participant’s death.  Further, the settlement of any Units may not be accelerated except to the extent permitted by Section 409A.

 

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

 

12.          Plan and Agreement Not a Contract of Employment or Service.  Neither the Plan nor this Agreement is a contract of employment, and no terms of the Participant’s Service will be affected in any way by the Plan, this Agreement or related instruments, except to the extent specifically expressed therein.  Neither the Plan nor this Agreement will be construed as conferring any legal rights on the Participant to continue to be employed or remain in service with the Company or any of its Subsidiaries, nor will it interfere with the Company’s or any of its Subsidiaries’ right to discharge the Participant or to deal with him or her regardless of the existence of the Plan, this Agreement or the Units.

 

13.          Participant to Have No Rights as a Common Shareholder.  Before the date as of which he or she is recorded on the books of the Company as the holder of any shares of Stock issued pursuant to settlement of a Unit, the Participant will have no rights as a shareholder with respect to those shares of Stock.

 

14.          Legend on Certificates.  The certificates representing the shares of Stock issued pursuant to the settlement of any Unit shall be subject to such stop transfer orders and other restrictions as the Administrator may deem reasonably advisable under the Plan (including, but not limited to, in connection with the enforcement of the holding period described in Section 5 of this Agreement) or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares of Stock are listed, any applicable federal or state laws and the Company’s certificate of incorporation and bylaws, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

15.          Notice.  Any notice or other communication required or permitted under this Agreement must be in writing and must be delivered personally, sent by certified, registered or express

 

8

 

mail, or sent by overnight courier, at the sender’s expense.  Notice will be deemed given when delivered personally or, if mailed, three (3) days after the date of deposit in the mail or, if sent by overnight courier, on the regular business day following the date sent.  Notice to the Company should be sent to CIFC Corp., 250 Park Avenue, 4th Floor, New York, NY 10177.  Notice to the Participant should be sent to the address set forth on the signature page below.

 

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

 

17.          Governing Law.  To the extent not preempted by federal law, this Agreement will be construed and enforced in accordance with, and governed by, the laws of the State of New York, without giving effect to its conflicts of law principles that would require the application of the law of any other jurisdiction.

 

18.          Conflict.  The rights granted under this Agreement are in all respects subject to the provisions set forth in the Plan to the same extent and with the same effect as if set forth fully in this Agreement; provided, however, that if the terms of this Agreement conflict with the terms of the Plan document, this Agreement will control (provided that to the extent possible, this Agreement and the Plan will be construed to not be in conflict).

 

19.          Amendment of the Agreement.  The Company and the Participant may amend this Agreement only by a written instrument signed by both parties.

 

20.          Counterparts.  The parties may execute this Agreement in one or more counterparts, all of which together shall constitute but one Agreement.

 

[signature page follows]

 

9

 

IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first written above.

 

 

	
CIFC Corp.
    	
 
    	
PARTICIPANT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Julian Weldon
    	
 
    	
/s/ Oliver Wriedt
    
	
By: Julian Weldon
    	
 
    	
Oliver Wriedt
    
	
Title: General Counsel

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