Document:

LG-2012.12.31-EX10.1

Exhibit 10.1
The Laclede Group
2006 Equity Incentive Plan

Performance Contingent
Stock Unit Award Agreement
THIS AGREEMENT, made as of the 3rd day of December 2012, between The Laclede Group, Inc. (“Company”) and [Name] (“Participant”).
Pursuant to the terms of the Company's 2006 Equity Incentive Plan as approved by shareholders in January 2011 (“Plan”), the Participant has been awarded [high performance number of units] performance contingent stock units subject to the terms and conditions of the Plan and this Award Agreement (“Units”).  This number represents the High Performance level of achievement and is the maximum number of Units that can be earned under this Award Agreement.

NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement, the parties hereto hereby agree as follows:
		
	1.
	Performance Contingent Stock Unit Award.  Subject to the potential reduction as set forth in Section 5, and further subject to the other terms and conditions of this Agreement, the Units will become non-forfeitable (“Vested”) on December 3, 2015 (Vesting Date), provided that (i) the Compensation Committee of the Company's Board of Directors (“Committee”) has certified that the Company has achieved Dividend Related Earnings (as defined in Appendix A) for the performance period from October 1, 2012 through September 30, 2015 (“Performance Period”) and (ii) the Participant is continuously employed by the Company until the Vesting Date.  

		
	(a)
	Dividend Equivalents.  Any cash dividends declared before the Vesting Date on the shares of common stock underlying the Units (“Shares”) shall not be paid currently but shall be accumulated during the Performance Period for such Units (“Dividend Equivalents”) and become payable, if at all, on the Vesting Date.  If all or a portion of the Units and shares of common stock underlying such Units are forfeited, the Dividend Equivalents relating to such forfeited Units and Shares shall also be forfeited.  Dividend Equivalents shall be paid as provided below in Section 5 and shall not accrue any earnings or interest during the Performance Period.  

		
	2.
	Award Date.  The Award Date of the Units awarded under this Agreement is December 3, 2012.

		
	3.
	Incorporation of Plan.  All terms, conditions and restrictions of the Plan are incorporated herein and made a part hereof as if stated herein.  If there is any conflict between the terms and conditions of the Plan and 

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this Agreement, the terms and conditions of the Plan, as interpreted by the Administrator, shall govern.  All capitalized terms used herein, but not otherwise defined, shall have the meaning given to such terms in the Plan.
		
	4.
	Restrictions and Conditions.  Except as otherwise provided in this Agreement, Participant shall forfeit any and all right to the Units and related Dividend Equivalents if the Participant is terminated with or without cause or the Participant voluntarily terminates employment with the Company and its subsidiaries prior to the Vesting Date.

		
	5.
	Lapse of Restrictions.  The Participant accepts the award under this Agreement (“Award”) and agrees that the restrictions relative to such Award shall lapse only following the conclusion of the Performance Period and only to the extent that there are Dividend Related Earnings certified by the Committee.  If there are no Dividend Related Earnings, the Units and related Dividend Equivalents shall be forfeited.

The actual number of Units that vest after achieving Dividend Related Earnings during the Performance Period may be reduced by the Committee in its sole and absolute discretion based on such factors as the Committee determines to be appropriate and/or advisable including, without limitation, the Company's achievement relative to the metrics set forth in Appendix A to this Agreement for the Performance Period (“Performance Metrics Formula”).  It is the intention of the Committee that the Committee will exercise its discretion to reduce the number of Units that will vest based on the Performance Metrics Formula, provided that the Committee reserves the right to deviate from the Performance Metrics Formula and may reduce the number of Units that will vest based on such other factors as the Committee in its sole and absolute discretion determines to be appropriate and/or advisable; provided, however, that it is the intention of the Committee that it will deviate from the Performance Metrics Formula only in extreme and unusual circumstances. 

Any Dividend Equivalents that the Committee certifies are earned relative to the Units will be paid to the Participant in no event later than March 15 of the calendar year following the end of the Vesting Date.  Any Shares underlying the Units that the Committee certifies are earned will be issued and delivered to the Participant in no event later than March 15 of the calendar year following the Vesting Date.  
Notwithstanding the foregoing,
		
	(A)
	In the event of a Change in Control, [target # of units] of the Units and related Dividend Equivalents shall be deemed earned and prorated based on the number of months in the Performance Period to the date of the Change in Control, and the shares relative to such Units shall be issued and related Dividend 

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Equivalents payable within 30 days following such Change in Control if:
(i) the Award has not otherwise been forfeited and
(ii) the successor or surviving corporation (or parent thereof) does not assume this Award or replace it with a comparable award, provided further that if the Award is assumed or replaced, such assumed or replaced Award shall provide that the restrictions shall lapse if Participant is involuntarily terminated without Cause within 24 months of the Change in Control (a “Change in Control Termination”);
		
	(B)
	If a Participant leaves the employment of the Company and its subsidiaries due to death, disability or retirement (including early retirement and disability retirement) prior to the end of the Performance Period, the Participant will be eligible to earn a prorated Award (including Dividend Equivalents), as the Administrator in its sole discretion may determine, based on the number of full months as a Participant during the Performance Period and will be eligible to receive the Shares (and related Dividend Equivalents) to the extent certified by the Committee as provided in Section 5 above.

		
	6.
	How Dividend Equivalents Held.  Dividend Equivalents are intended to constitute an “unfunded” obligation of the Company and nothing in the Plan or this Agreement shall give the Participant any rights that are greater than those of a general unsecured creditor of the Company.  All amounts accumulated on the Participant's behalf under this Agreement shall continue for all purposes to be part of the general assets of the Company.  Shares underlying the Units, when earned, shall be issued and delivered as provided in Section 5.  

		
	7.
	Units Non-Transferable.  The Units (and any related Dividend Equivalents) shall not be transferable by Participant and may not be sold, assigned, disposed of, or pledged or hypothecated as collateral for a loan or as security for performance of any obligation or for any other purpose until after Shares underlying the Units have been issued and delivered to the Participant.

		
	8.
	No Right to Continued Employment.  Nothing in this Agreement shall confer on the Participant any right to continuance of employment by the Company or a subsidiary, nor shall it interfere in any way with the right of Participant's employer to terminate Participant's employment at any time.

		
	9.
	Tax Withholding and Tax Election.  The Company shall not be obligated to deliver any Shares underlying the Units until Participant pays to the Company in cash, or any other form of property acceptable to the Company, the amount required to be withheld for any federal, state or 

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local income, FICA or other taxes of any kind with respect to such shares.  The Participant may, by notice to the Company, elect to have such withholding satisfied by a reduction of the number of whole Shares otherwise so deliverable, such reduction to be calculated based on the Fair Market Value of the Shares on the Vesting Date.  The value of Shares withheld will not exceed the minimum amount of tax required to be withheld by law.  The Company and its subsidiaries shall, to the extent permitted by law, have the right to deduct such taxes, from any payment of any kind otherwise due to Participant.  Dividend Equivalents that become payable as provided in this Agreement shall be subject to tax withholdings in accordance with tax laws then in effect. 
		
	10.
	Confidential Information and Restrictions on Soliciting Employees.  Notwithstanding any provision of this Agreement to the contrary, the Participant shall pay to the Company the Fair Market Value of the Shares underlying the Units that vest and are issued to Participant under this Agreement if, during the period beginning on the date hereof and ending 18 months following the date the Participant's employment with the Company and its subsidiaries terminates (provided that such termination is other than a Change in Control Termination), the Participant: (1) discloses Confidential Information, as defined below, to any person not employed by the Company or any of its subsidiaries or not engaged to render services to the Company or any of its subsidiaries; or (2) Solicits Employees, as defined below.  Fair Market Value shall be calculated on the date of the first violation of this Section 10.

For purposes of this Section 10, “Confidential Information” means information concerning the Company, its subsidiaries and their business that is not generally known outside the Company, and includes (A) trade secrets; (B) intellectual property; (C) methods of operation and processes; (D) information regarding present and/or future products, developments, processes and systems; (E) information on customers or potential customers, including customers' names, sales records, prices, and other terms of sales and cost information; (F) personnel data; (G) business plans, marketing plans, financial data and projections; and (H) information received in confidence from third parties.  This provision shall not preclude the Participant from use or disclosure of information known generally to the public other than by his or her disclosure of such information or of information not considered confidential by persons engaged in the business conducted by the Company or subsidiary or from disclosure required by law or court order.
“Solicits Employees” means the Participant's direct or indirect hire of, solicit to hire, or attempt to induce (or Participant's assisting of any third party to hire, solicit or attempt to induce) any employee of the Company or a subsidiary (who is an employee of the Company or a subsidiary as of the time of such hire or solicitation or attempt to hire) or any former employee of the Company or a subsidiary (who was employed by the Company or a subsidiary within the 12-month period immediately 

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preceding the date of such hire or solicitation or attempt to hire) to leave the employment of the Company or a subsidiary.
		
	11.
	Integration.  This Agreement, and the other documents referred to herein or delivered pursuant hereto which form a part hereof, contains the entire understanding of the parties with respect to its subject matter.  There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein.  This Agreement, including without limitation the Plan, supersedes all prior agreements and understandings between the parties with respect to its subject matter and may only be amended by mutual written consent of the parties.

		
	12.
	Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Missouri, without regard to the provisions governing conflict of laws.

		
	13.
	Compliance with Laws and Regulations.  The obligations of the Company under this Agreement shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. 

		
	14.
	Participant Acknowledgment.  By accepting the award under this Agreement, the Participant acknowledges receipt of a copy of the Plan, and acknowledges that all decisions, determinations and interpretations of the Administrator in respect of the Plan and this Agreement shall be final and conclusive.  Participant acknowledges that this award is subject to the company's recoupment policy. 

In addition, the Participant expressly acknowledges that violation by the Participant of Section 10 of this Agreement will obligate the Participant to pay to the Company the Fair Market Value of the Shares underlying the Units that become vested or are issued pursuant to Section 5.

	
		
	The Laclede Group, Inc.

	 

	By:
	 

	 
	Suzanne Sitherwood

	Title:
	President & Chief Executive Officer

	 
	 

	 

	 

	 

	[Name]

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Appendix A to Performance Contingent Stock Unit Award
Performance Period.  The Performance Period begins October 1, 2012 and ends September 30, 2015.
Dividend Related Earnings.  Dividend Related Earnings means average Earnings Per Share over the Performance Period in excess of the annualized declared dividend per share for the Common Stock as of the Award Date.
Earnings Per Share.  For purposes of this Agreement, Earnings Per Share means net economic earnings per share as reported in the Company's periodic reports filed with the Securities and Exchanges Commission reporting the results for quarterly and annual periods in the Performance Period.  The number of shares of Common Stock used in calculating Earnings Per Share will be consistent with that number used to calculate the Company's basic earnings per share in its periodic reports.
Performance Metrics.  The Performance Metrics Formula for this Award that the Committee will use to exercise its discretion to reduce the number of Units that will Vest upon the Company's achievement of Dividend Related Earnings include three performance metrics:  Average Earnings Per Share (50% weighting), Growth Investments (25% weighting), and Relative Total Shareholder Return (25% weighting) as described in more detail below:
Metric 1 - Average Earnings Per Share - Achieve Company average Earnings Per Share over the Performance Period as specified below.  
	
				
	 
	Threshold
	Target
	High Performance

	Level of Performance
	$X.XX/share
	X.XX/share
	$X.XX/share

	Units earned
	XXXX
	XXXX
	XXXX

Metric 2 - Growth Investments.
	
				
	 
	Threshold
	Target
	High Performance

	Level of Performance
	Investment of $XXX million
	Investment of $XXX million
	Investment of $XXX million

	Units earned
	XXXX
	XXXX
	XXXX

Metric 3 - Relative Total Shareholder Return (TSR) - Achieve level of TSR relative to established comparator group using average stock price for last quarter of fiscal year 2012 and average stock price for last quarter of fiscal year 2015, plus the value of reinvested dividends as provided below.
	
				
	 
	Threshold
	Target
	High Performance

	Level of Performance
	TSR ≥ XXX percentile of peers
	TSR ≥ XXX percentile of peers
	TSR = XXX percentile of peers

	Units earned
	XXXX
	XXXX
	XXXX

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Performance Metrics Formula.
		
	◦
	If performance on each of the Performance Metrics is below threshold, then no Units shall vest, and all Units and related Dividend Equivalents shall be forfeited.

		
	◦
	If performance on one or more of the Performance Metrics is achieved at or above Threshold, the number of Units that vest (and the amount of Dividend Equivalents that shall be payable) will equal the aggregate of Units earned under each Performance Metric.

		
	◦
	If performance on one or more of the Performance Metrics has been achieved between the Threshold and Target or Target and High Performance levels of performance, the Administrator shall interpolate for performance between the applicable levels and shall determine the number of Units that shall vest (and the amount of Dividend Equivalents that shall be payable). 

Because the Company cannot issue fractional shares, the Administrator will round down to the nearest whole number of Units in all calculations.

2globalexh10_1.htm

Exhibit 10.1

 

 

SUBSCRIPTION AGREEMENT

GLOBAL TECH SOLUTIONS, INC.,

a Nevada corporation

On the terms and subject to the conditions specified in that certain Prospectus dated February_____, 2013 (the “Prospectus”) and filed with the Securities and Exchange Commission (the “SEC”), GLOBAL TECH SOLUTIONS, INC., a Nevada corporation (the “Company”), is offering for sale a maximum of 10,000,000 shares of its common stock (“Offered Shares”) at a purchase price of $0.01 per Offered Share.

Those defined (capitalized) terms used in this Subscription Agreement without definitions specified in this Subscription Agreement shall have the same definitions and meanings specified by the applicable provisions of the Prospectus.

This Subscription Agreement must be completed and delivered to:

Global Tech Solutions, Inc.

80713 Alexandria Court

Indio, California 92201

Subscriptions must be funded (at a price of $0.01 per Offered Share) by check, bank draft or wire transfer.

Subscriptions will only be accepted from persons or entities that, in the opinion of management of the Company, are capable of bearing the risks associated with an investment in the Company.

How to Subscribe

To subscribe for Offered Shares, you must complete this Subscription Agreement and pay the appropriate subscription price.

Directions for the Subscription Agreement are as follows:

	
1.

	
Be sure to provide your correct name and address, as this information will appear on the official records of the Company.

 

	
2.

	
Sign and be sure that you have checked and initialed the appropriate type of ownership.

 

	
3.

	
Signature and Supporting Material Requirements - The following requirements have been established for the various ways in which Offered Shares may be purchased and held other than by you as an individual:

JOINT TENANTS WITH RIGHT OF SURVIVORSHIP: The signatures of both joint tenants are required.

COMMUNITY PROPERTY: The signatures of both husband and wife are required, unless a separate document signed by both parties and designating either party as agent of the other party for purposes of signing accompanies the Subscription Agreement.

TENANTS IN COMMON: The signatures of all parties are required.

 

 

  

1

  

 

TENANTS BY THE ENTIRETY: The signatures of all parties are required.

PARTNERSHIP: The Subscription Agreement must be accompanied by a copy of the signed partnership agreement.

TRUST: The Subscription Agreement must be accompanied by a copy of the signed trust agreement.

CORPORATION: The Subscription Agreement must be accompanied by a certified copy of the resolution of the Board of Directors of the subscribing corporation designating the officer(s) of that corporation authorized to sign on behalf of that corporation and of the resolution of that Board of Directors authorizing the purchase of Offered Shares.

 

	
4.

	
Furnish the following:

 

	
  

	
(a)

	
Completed Subscription Agreement

	
  

	
(b)

	
Supporting material if required (Item 3 above).

	
  

	
(c)

	
A check, bank draft or bank wire in the amount of your subscription (see below).

By signing this Subscription Agreement, without waiving any of your rights pursuant to applicable federal or state laws, you covenant and agree as follows:

 

	
1.

	
You acknowledge that you have received a copy of the Prospectus. You acknowledge that you have read the Prospectus completely, including, without limitation, the Risk Factors specified therein.

 

	
2.

	
On the terms and subject to the conditions of the Prospectus and this Subscription Agreement, you hereby subscribe for the number of Offered Shares specified below for a subscription price of $0.001 per Offered Share.  You hereby agree that this subscription shall be irrevocable and shall survive your death or disability.  Payment of the purchase price for Offered Shares is due upon subscription.

 

	
3.

	
You acknowledge and agree that (i) management of the Company has the right to accept or reject this subscription in whole or in part, and (ii) this subscription shall be deemed to be accepted by the Company only when this Subscription Agreement is signed by the officers of the Company authorized to sign this Subscription Agreement on behalf of the Company. You agree that subscriptions need not be accepted by the Company.  You agree that subscriptions need not be accepted by the Company in the order in which subscriptions are received.

 

	
4.

	
You are not relying on the Company or its affiliates with respect to economic considerations involved in connection with your purchase of Offered Shares. You have relied solely upon such independent investigations made by you or by your representatives in making your decision to purchase Offered Shares, and except for the Prospectus, no oral or written representations have been made to, or relied upon by, you in connection with that decision.

 

	
5.

	
You have the requisite knowledge and experience to evaluate the relative business aspects and risks, or you have relied upon the advice of experienced advisors with regard to business aspects and risks, and other considerations involved in purchasing Offered Shares.

 

	
6.

	
You acknowledge that although the Offered Shares are registered with the SEC pursuant to the Securities Act of 1933, there may be restrictions regarding the resale of the Offered Shares imposed by the securities laws of the particular jurisdiction in which you reside. Accordingly, you will not offer or sell Offered Shares in any jurisdiction, unless you obtain all required consents, if any.

 

 

  

2

  

 

 

	
7.

	
You understand that a purchase of Offered Shares is a speculative investment, which involves significant risks and the potential loss of the entire amount you paid for Offered Shares.

 

	
9.

	
You acknowledge that no federal or state agency has (a) made any finding or determination as to the fairness of a purchase of Offered Shares, (b) made any recommendation or endorsement of the Offered Shares, or (c) guaranteed or insured any investment in the Offered Shares or any investment made by the Company.

 

	
10.

	
You understand that the price of the Offered Shares has no relation to the assets, book value or net worth of the Company and has been determined arbitrarily by the Company.

 

	
11.

	
It has been called to your attention by the Prospectus that the Company has been formed quite recently and has no history of earnings.

 

	
12.

	
It has been called to your attention by the Prospectus that the amount you pay the Company for your purchase of Offered Shares will not be deposited in an escrow or similar account; but, rather, that amount shall be made available to the Company immediately upon its acceptance of your subscription.

 

	
13.

	
You and your representatives have had the opportunity to discuss all material aspects regarding a purchase of Offered Shares with management of the Company, and any and all questions asked have been answered to the full and complete satisfaction of you and your representatives.

 

	
14.

	
You have adequate net worth and means of providing for your current needs and contingencies to sustain a complete loss of your investment in the Company at the time of investment, and have no need for liquidity in connection with the Offered Shares purchased by you. You currently can afford a complete loss of the amount you will pay for those Offered Shares.

 

	
15.

	
You have attained the age of majority (as established in the state in which you reside), if an individual, and you have no legal disability with respect to entering into a contractual relationship with the Company and executing this Subscription Agreement.

 

	
16.

	
If and when this Subscription Agreement is accepted by the Company, you will have purchased the number of Offered Shares set forth above your signature on the signature page of this Subscription Agreement. The Offered Shares which you offer to purchase hereby shall not be deemed issued to, or owned by, you until (a) you have fully paid the applicable purchase price for the Offered Shares and (b) the Company has accepted your offer to purchase. The Company shall have until the closing date of the offering of Offered Shares or any extension of that offering to accept or reject your offer, at its sole discretion.

 

Number of Offered Shares Subscribed for:

 

You are subscribing to purchase a total of ________ Offered Shares at $0.01 per Offered Share ($_______________) by (check and initial applicable line):

 

	o	
____________

	
$____________

	
(for _____ Offered Shares) paid by check

	 	  	  	  
	o	
____________

	
$____________

	
(for _____ Offered Shares) paid by bank draft

	 	  	  	  
	o	
____________

	
$____________

	
(for _____ Offered Shares) paid by wire transfer

 

 

  

3

  

 

 

Payment Instructions

	
MAKE CHECK PAYABLE TO:

	
“Global Tech Solutions, Inc.”

MAIL TO: Global Tech Solutions, Inc., 80713 Alexandria Court, Indio, California 92201=

WIRE TRANSFER INSTRUCTIONS:

__________ Bank

________________

________________

________________

Routing Number: __________

Swift Code: ______________

Account Number: _________

Print name(s) in which Offered Shares are to be registered:

For details, see How to Subscribe (above)

NAME: (1)   __________________________________________________________

NAME: (2)   __________________________________________________________

Address:   ___________________________________________________________

 

   __________________________________________________________________

 

Title to your purchased Offered Shares is to be held as follows (check and initial one):

 

	  	
(a)

	__________	
Husband & Wife, as community property

	  	  
	  	
(b)

	__________	
Joint Tenants

	  	  
	  	
(c)

	__________	
Tenants in Common

	  	  
	  	
(d)

	__________	
Individual

	  	  
	  	
(e)

	__________	
Corporation

	  	  
	  	
(f)

	__________	
Partnership

	  	  
	  	
(g)

	__________	
Trust

	  	  
	  	
(h)

	__________	
Other

	
Please describe:

	_________________________________

 

NOTE:  BY SIGNING THIS SUBSCRIPTION AGREEMENT AND UPON ACCEPTANCE THEREOF, YOU ARE ENTERING INTO AN AGREEMENT AND AGREEING TO INVEST MONEY WITH THE COMPANY.

 

The undersigned hereby certifies that the undersigned has answered the foregoing to the best of the undersigned’s knowledge, that the undersigned’s answers are complete and accurate, and the undersigned declares under penalty of perjury that the foregoing is true and correct.

 

 

  

4

  

 

 

This Subscription Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof.

DATED: _________________________________, 2013, at ___________________________________

(1) ______________________________________           (2) ___________________________________

 

NOTE: If Offered Shares are to be registered in more than one name, all subscribers must sign.

Acceptance of Subscription

Agreed to and accepted:

By:          Global Tech Solutions, Inc.

a Nevada corporation

By:           _______________________________

Its:           President

 

 

 

 

 

 

 

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