Document:

Exhibit 10 (v)

 

	
  

  	
   

  	
  RESTRICTED STOCK AWARD AGREEMENT

  

 

THIS
AGREEMENT is made as of this 28th day of November 2007 (the “Grant Date”),
by and between DNB Financial Corporation (“Holding Company”) and                       
(“Grantee”).

 

Background:

 

Grantee
is a valued employee or director of the Holding Company and/or DNB First,
National Association (the “Bank”) (the Holding Company and the Bank are
collectively referred to herein as the “Company”).  The Holding Company’s Board of Directors
adopted the DNB Financial Corporation Incentive Equity and Deferred
Compensation Plan on November 24, 2004 (“Plan”).  As additional compensation for Grantee’s past
and future services to the Company, and to induce the Grantee to continue
Grantee’s efforts to enhance the value of the Company for shareholders,
generally, the Company wishes to conditionally transfer rights to receive
shares of Common Stock of the Holding Company to Grantee pursuant to the terms
of the Plan, subject to the additional terms and conditions of this Agreement.

 

NOW,
THEREFORE, the Company and Grantee hereby agree as follows, intending to be
legally bound:

 

1. Subject to and
as soon as practicable following the satisfaction of the vesting condition set
forth in Paragraph 2, below, the Company agrees to transfer to Grantee on the “Vesting
Date” (defined below) November 28, 2010,             
shares of the Holding Company’s common stock, par value $1.00 per share (“Award
Shares”), minus that number of Award Shares, if any, required to pay taxes as
more fully described in Paragraph 3, below (such shares actually transferred to
Grantee are sometimes hereinafter referred to as “Transferred Shares”), subject
to the transfer restrictions in this Agreement and the Plan.  The number of Award Shares is subject to
adjustment as provided in Section 10.1 of the Plan.

 

2. Grantee shall first be entitled to the Award Shares on a date (the “Vesting Date”) that shall be the earlier of the third (3rd) anniversary of the Grant Date or the date on which a “Change in Control” (as hereinafter defined) of the Company first occurs, subject to such further terms and conditions of the Plan as may be applicable.  For this purpose, “Change in Control” shall mean a change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), provided that a “Change in Control” shall nevertheless be deemed to have occurred if either (a) any “persons” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act in effect on the Grant Date), other than the Company or any “person” who on the date hereof is a director of officer of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities, or (b) during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board of Directors cease for any reason to constitute at least a majority thereof, unless the election of each director who was not a director at the beginning of such period has been approved in advance by directors representing at least two-thirds of the directors then in office who were directors at the beginning of the period.  If Grantee’s employment as an employee and service as a director (collectively, “Service”) with the Company, terminates for any reason (including but not limited to Grantee’s death or disability or voluntary or involuntary termination of Service) prior to the Vesting Date, this Agreement shall automatically terminate, the Grantee shall forfeit all rights hereunder, and no shares of common stock or other consideration shall be transferred to Grantee pursuant to this Agreement.
 

3. At Grantee’s
written election, to be provided in writing to the Company on or prior to the
Vesting Date together with the cash necessary for such payment, Grantee shall
pay to the Company in cash an amount sufficient to fund all of the Federal,
state and local taxes the Company may be required to withhold with respect to
the Award Shares.  To the extent that the
Grantee shall not so have elected and paid the necessary amount on or prior to
the Vesting Date, the Company may reduce the Award Shares by that 

 

 

number of shares
having an aggregate Fair Market Value, as of the Vesting Date, equal to the
aggregate amount of Federal, state and local taxes required to be withheld with
respect to the Award Shares.

 

4.
Grantee shall not sell, assign, pledge, gift, encumber or otherwise alienate or
dispose of any of the Transferred Shares for one (1) year from
the Vesting Date.  Each certificate for the Transferred
Shares shall bear the following legend:

 

“Sale,
assignment, pledge, gift, encumbrance or other alienation or disposition of the
shares represented by this certificate may be restricted as provided under
applicable federal and state securities laws, and are also restricted and
prohibited until November 28, 2011 pursuant to the terms of a Restricted
Stock Award Agreement dated November 28, 2007, between DNB Financial
Corporation and the holder of the shares named on this certificate, and the
provisions of the DNB Financial Corporation Incentive Equity and Deferred
Compensation Plan approved on November 24, 2004, each of which may be
examined at the principal office of the Company, and any subsequent transfer is
subject to the terms and conditions of such Agreement and Plan.”

 

5.
As a condition to any transfer, encumbrance or other alienation of any of the
Transferred Shares, Grantee shall provide the Company and/or any transfer agent
or broker upon request with such certifications, legal opinions and other
documents as they may request with respect to applicable securities and tax
laws.

 

6.
Nothing in this Agreement confers on Grantee any right to continue as an
employee or director of the Company or any affiliate or interfere with or
restrict in any way the rights of the Company or its affiliates to terminate
Grantee’s employment or other Service at any time.

 

7.
Transfer of rights under this Agreement are further restricted as provided in
the Plan.  Grantee acknowledges receipt
of a copy of the Plan, which is incorporated into this Agreement.  Capitalized terms not otherwise defined in
this Agreement shall have the respective meanings, if any, assigned to such
terms in the Plan.  This Agreement is an “Award
Agreement” under the Plan.

 

8. This Agreement
is governed by the internal laws of Pennsylvania, without giving effect to the
choice of law or conflict of laws principles, subject to pre-emption by
applicable federal law and regulations.

 

The
parties hereby have duly entered into this Agreement as of the first date set
forth above.

 

	
  ATTEST:

  	
   

  	
  DNB
  FINANCIAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Print
  Name:

  	
   

  	
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  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  GRANTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
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  Address:QuickLinks
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Exhibit 10.1.1    
    

 
 

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT    
    

        This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment") is entered into as of November 1, 2007 by and among CHEROKEE INTERNATIONAL CORPORATION, a Delaware corporation (the
"Borrower"), the financial institutions party to the Credit Agreement described below, each as a Lender, GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation as Agent, and each of the other Persons who are signatories hereto (Borrower and each such other Person is individually referred to herein as a "Credit
Party" and collectively as the "Credit Parties"). 

W I T N E S S E T H :

        WHEREAS,
the Borrower, Lenders and Agent are parties to that certain Amended and Restated Credit Agreement dated as of February 25, 2004 (as the same has been and may hereafter be
amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), pursuant to which the Lenders made certain loans and
other financial accommodations to the Borrower. 

        WHEREAS,
Borrower has requested that Agent and Lenders eliminate the restrictions set forth in the Maximum Senior Leverage Covenant of Section 4.7 of the Credit Agreement, reduce
the aggregate Revolving Loan Commitment and otherwise and amend the Credit Agreement pursuant to the terms hereof, and Agent and Lenders are willing to grant such request upon the terms and subject to
the conditions set forth herein. 

        NOW
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows: 

        1.    Defined Terms.    Capitalized terms used but not defined herein shall have the meanings ascribed to them in the
Credit Agreement. 

        2.    Amendments to Credit Agreement.    Subject to the terms and conditions of this Amendment, the Credit Agreement
is amended as set forth below. 

        2.1   Annex A of the Credit Agreement is hereby amended by adding the following new defined term in its appropriate
alphabetic order: 

               "
'First Amendment Effective Date' means November 1, 2007" 

        2.2   Annex A of the Credit Agreement is further amended by deleting the definitions of "Borrowing Base" and of
"Revolving Loan Commitment" and substituting the following new definitions in lieu thereof: 

               "
'Borrowing Base' means, as of any date of determination by Agent, an amount equal to 85% of the book value
of Borrower's Eligible Accounts at such time." 

             'Revolving Loan Commitment' means (a) as to any Lender, the commitment of such Lender to make its Pro Rata Share of
Revolving Credit Advances or incur its Pro Rata Share of Letter of Credit Obligations (including, in the case of the Swing Line Lender, its commitment to make Swing Line Advances as a portion of its
Revolving Loan Commitment) as set forth on Annex B or in the most recent Assignment Agreement, if any, executed by such Lender and (b) as
to all Lenders, the aggregate commitment of all Lenders to make the Revolving Credit Advances (including, in the case of the Swing Line Lender, Swing Line Advances) or incur Letter of Credit
Obligations, which aggregate commitment shall be seven and one half million dollars ($7,500,000) on the First Amendment Effective Date, as such amount may be adjusted, if at all, from time to time in
accordance with the Agreement." 

        2.3   Annex A of the Credit Agreement is further amended by (i) deleting  Section 1.8 of the Credit Agreement in its entirety and substituting the caption
"Reserved"
therefor, (ii) deleting all 

 

references
to "Eligible Inventory" wherever it appears in the Credit Agreement and the other Loan Documents and revising such provisions as necessary to preserve, the grammatical integrity thereof but
without otherwise changing the meaning of such provisions, and (iii) deleting the defined terms and all references in the Loan Documents to "Senior Leverage Ratio" and "Senior Debt". 

        2.4   Annex B of the Credit Agreement is hereby deleted in its entirety and  Exhibit A of this Amendment is hereby substituted therefor as the new
Annex B.  

               Section 1.2(a) of the Credit Agreement is hereby amended by deleting the Applicable Margins at the end
thereof and substituting the following new Applicable Margins therefor: 

	Applicable Revolver Index Margin	 	2.00	%
	

Applicable Revolver LIBOR Margin	
 	

3.50	
%
	

Applicable L/C Margin	
 	

3.50	
%
	

Applicable Unused Line Fee Margin	
 	

1.00	
%

        2.5   Section 4.7 of the Credit Agreement ["Maximum Senior Leverage
Ratio"] is hereby amended by deleting said section in its entirety and substituting the following language therefor: 

               "Minimum EBITDA. Borrower and its Subsidiaries shall not permit their consolidated EBITDA for the Fiscal
Quarter ending December 31, 2007 to be less than $1,900,000." 

        3.    Covenant to Supply Projections and Establish Minimum EBITDA Thresholds.    The Borrower acknowledges and agrees
that the willingness of the Agent and Lenders to enter into this First Amendment is based, in part, on Borrower's agreement with and covenant to Lenders to deliver to
Agent financial projections reasonably acceptable to Agent and Lenders for Borrower's Fiscal Year ending December 31, 2008, and to cooperate with Agent in establishing Minimum EBITDA levels and
amending Section 4.7 of the Credit Agreement to include such subsequent testing periods and EBITDA levels by no later than December 31,
2007. The failure to amend the Credit Agreement in order to add Minimum EBITDA covenant levels for Borrower's Fiscal Quarters ending after December 31, 2007 as aforesaid shall constitute an
Event of Default hereunder. 

        4.    Amendment Fee.    In consideration of the entry into this Amendment by the Lenders, the Borrower hereby agrees
to pay to the Agent for the benefit of the Lenders on the date hereof, a fully-earned non-refundable amendment fee in the amount of $25,000 (the "Amendment
Fee"). 

        5.    Conditions.    The effectiveness of this Amendment is subject to the satisfaction of the following conditions
precedent: 

        (a)   the
execution and delivery of this Amendment by Borrower and the Lenders and the execution and delivery of the Acknowledgements and Reaffirmations attached hereto by the
parties noted therein; 

        (b)   the
receipt by the Agent, for the benefit of the Lenders, of the Amendment Fee referenced in Section 4 above; 

        (c)   the
truth and accuracy of the representations and warranties contained in Section 6 hereof; and 

        (d)   the
absence of any Default or Event of Default. 

2

 

        6.    Representations and Warranties.    Borrower hereby represents and warrants to Agent and the Lenders as follows: 

        (a)   after
giving effect to this Amendment, the representations and warranties of the Borrower contained in the Credit Agreement and the other Loan Documents are true and
correct as of the date hereof, except to the extent that any such representation or warranty relates to a specific date, in which case such representation and warranty shall have been true and correct
as of such earlier date; 

        (b)   the
execution, delivery and performance by the Borrower of this Amendment is within its power, requires no further action by or in respect of, or filing with, any
governmental body, agency or official and do not violate, conflict with or cause a breach or a default under any provision of applicable law or regulation or of the organizational documents of
Borrower or of any agreement, judgment, injunction, order, decree or other instrument binding upon it; 

        (c)   this
Amendment constitutes the valid and binding obligation of Borrower, enforceable against it in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, or similar laws relating to the enforcement of creditor's rights generally and by general equitable principles; and 

        (d)   no
Default or Event of Default exists. 

        7.    No Waiver.    Except as expressly amended hereby, the Credit Agreement and Other Agreements remain unmodified
and in full force and effect. All references in the Credit Agreement and the other Loan Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement as amended hereby. 

        8.    Fees and Expenses.    The Borrower agrees to reimburse the Agent for its reasonable out of pocket fees and
expenses (including reasonable attorney's fees) incurred with respect to the preparation of this Amendment and all matters directly related thereto. 

        9.    Further Assurances Covenant.    Borrower hereby covenants to do (or cause to be done), such acts and to execute
and deliver such documents or instruments as the Agent reasonably requests in order to evidence or otherwise protect the Agent or Lender's interests hereunder and to perfect the security interests
granted or contemplated under the Credit Agreement and the Loan Documents or to otherwise more fully effectuate the transactions contemplated hereunder. 

        10.    Severability.    In case any provision of or obligation under this Amendment shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any
way be affected or impaired thereby. 

        11.    Headings.    Headings and captions used in this Amendment are included for convenience of reference only and
shall not be given any substantive effect. 

        12    GOVERNING LAW; SUBMISSION TO
JURISDICTION.    THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF COOK, STATE OF ILLINOIS AND
IRREVOCABLY AGREES THAT, SUBJECT TO THE AGENT'S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS.
BORROWER EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. BORROWER HEREBY
WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF  

3

 

 PROCESS MAY BE MADE UPON BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED AT THE ADDRESS SET FORTH IN THE CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN
(10) DAYS AFTER THE SAME HAS BEEN POSTED.

        13.    WAIVER OF JURY TRIAL.    BORROWER
AND THE AGENT HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY
AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

        14.    Counterparts; Integration.    This Amendment may be executed and delivered via facsimile, pdf or similar
electronic transmission with the same force and effect as if an original were executed and may be signed in any number of counterparts, each of which shall be an original, with the same effect as if
the signatures hereto were upon the same instrument. This Amendment constitutes the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede
any and all prior agreements and understandings, oral or written, relating to the subject matter hereof. 

        15.    Reaffirmation.    Borrower and each other Credit Party, as debtor, grantor, pledgor, guarantor, assignor or in
any other similar capacity in which such Person grants liens or, security interests in its property or otherwise acts as accommodation party or guarantor, as the case may be, hereby
(i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under the Credit Agreement and each of the other Loan Documents to which it is a party (after
giving effect hereto) and (ii) to the extent such Person granted liens on or security interests in any of its property pursuant to any such Credit Agreement or other Loan Document as security
for or otherwise guaranteed the Borrower's Obligations under or with respect to the Credit Agreement and the other Loan Documents, ratifies and reaffirms such guarantee and grant of security interests
and liens and confirms and agrees that such security interests and liens hereafter secure all of the Obligations as amended hereby. Borrower hereby agrees that such liens and security interests
hereafter secure all of the Obligations, in each case as if each reference in such Credit Agreement or Loan Documents to the obligations secured thereby are construed to hereafter mean and refer to
such Obligations under the Credit Agreement
and other Loan Documents as hereby amended and that such security interests are and shall remain perfected under applicable law. The execution of this Amendment shall not operate as a novation, waiver
of any right, power or remedy of the Agent or any Lender nor constitute a waiver of any provision of the Credit Agreement or any of the other Loan Documents, except as expressly set forth herein and
shall be limited to the particular instance expressly set forth. 

—Remainder of Page Intentionally Left Blank; Signature Page Follows—  

4

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment to Amended and Restated Credit Agreement as of the date set forth above. 

BORROWER:

CHEROKEE INTERNATIONAL CORPORATION,
  a Delaware corporation 

	

By:	

/s/ LINSTER W. FOX
	
 	

 	

 
	Name:	Linster W. Fox	 	 	 
	Title:	EVP, CEO & Secretary	 	 	 
	

 	

 	
 	

THE AGENT AND LENDERS:
	

 	

 	
 	
GENERAL ELECTRIC CAPITAL CORPORATION, as Agent, an L/C Issuer and a Lender
	

 	

 	
 	

Name:	

    

	 	 	 	 	Its Duly Authorized Signatory

  
        IN WITNESS WHEREOF, the parties have executed this First Amendment to Amended and Restated Credit Agreement as of the date set forth above. 

BORROWER:

CHEROKEE INTERNATIONAL CORPORATION,
  a Delaware corporation 

	

By:	

    
	
 	

 	

 
	Name:	 	 	 	 
	Title:	 	 	 	 
	

 	

 	
 	

THE AGENT AND LENDERS:
	

 	

 	
 	
GENERAL ELECTRIC CAPITAL CORPORATION, as Agent, an L/C Issuer and a Lender
	

 	

 	
 	

Name:	

/s/ DANIEL E. KONOPACKI

	 	 	 	 	Its Duly Authorized Signatory

 

 
 

Acknowledgement and Reaffirmation    
    

        The undersigned hereby acknowledges receipt of a copy of the First Amendment to Amended and Restated Credit Agreement dated as of November 1, 2007 (the
"Amendment"; capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Amendment) to which this Acknowledgement and
Reaffirmation is attached and affirm that, except as expressly set forth below, nothing contained therein shall modify in any respect whatsoever the provisions and terms of that certain Intercreditor
Agreement dated as of February 25, 2004 (the "Intercreditor Agreement") between the undersigned and US Bank, N.A., in its capacity as
51/4% Trustee thereunder and hereby reaffirms that the Intercreditor Agreement is and shall continue to remain in full force and effect. 

        IN
WITNESS WHEREOF, the undersigned has executed this Acknowledgement and Reaffirmation as of the 13th day of November, 2007. 

	 	 	U.S. BANK, N.A., a Trustee
	

 	
 	

By:	

/s/  RICHARD PROKOSCH      
	 	 	 	

	 	 	Name:	Richard Prokosch
	 	 	Title:	Vice President

 

 
 

Exhibit A    
    

 
 

Annex B    
    

Pro
Rata Shares and Commitment Amounts 

 
 

PRO RATA SHARES AND COMMITMENT AMOUNTS    
    

	 	 	Lender(s)
	

Revolving Loan Commitment

(including a Swing Line Commitment

of $2,000,000)

$7,500,000	
 	

General Electric Capital Corporation

QuickLinks

Exhibit 10.1.1

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

Acknowledgement and Reaffirmation

Exhibit A

Annex B

PRO RATA SHARES AND COMMITMENT AMOUNTS

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