Document:

exhibit10d.htm

FIRST AMENDMENT TO GLOBAL FORBEARANCE AGREEMENT

This FIRST AMENDMENT TO GLOBAL FORBEARANCE AGREEMENT (this “Amendment”) is dated as of June __, 2010, by and between (i) VIRIDIS CAPITAL, LLC (“Viridis”), (ii) GREENSHIFT CORPORATION (“GreenShift”), (iii) the subsidiaries and affiliates of GreenShift and Viridis listed on Schedule 1 attached hereto (the “Subsidiaries”) (Viridis, GreenShift and the Subsidiaries shall be collectively referred to herein as the “Obligors”), and (ii) YA GLOBAL INVESTMENTS, L.P., formerly known as Cornell Capital Partners, LP, a Cayman Island exempt limited partnership (the “Lender”), and having offices located at 101 Hudson Street Suite 3700, Jersey City, New Jersey 07302.

 

	
  

	
Background

Reference is made to that certain Global Forbearance Agreement dated as of December 9, 2009 entered into by and among the Lender and the Obligors (the “Agreement”).  All capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Agreement.

Pursuant to the terms of the Agreement, the Lender’s agreement to forbear from exercising its rights and remedies against the Obligors as a result of the Stated Defaults was expressly conditioned upon the Obligors satisfying the Conditions Subsequent on or before December 31, 2009.  The Obligors have requested that the Lender extend the date by which the Obligors must satisfy the Conditions Subsequent, and the Lender has agreed to extend such date, but only upon the terms and conditions set forth herein.

Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by and among the Obligors and the Lender as follows:

Acknowledgement of Debt

	
1.  

	
The Obligors hereby acknowledge and agree that, in accordance with the terms and conditions of the Agreement, the Financing Documents, and the Related Documents, the Obligors are unconditionally, collectively, jointly, and severally liable to the Lender for all of the Obligations, without set off, counterclaim or offset.

Waiver of Claims

 

	
2.  

	
The Obligors hereby acknowledge and agree that none of the Obligors have any offsets, defenses, claims, or counterclaims against the Lender, its general partner, and its investment manager, and each of their respective agents, servants, attorneys, advisors, officers, directors, employees, affiliates, partners, members, managers, predecessors, successors, and assigns (singly and collectively, as the “Released Parties”), with respect to the Obligations, the Financing Documents, the Agreement, the Related Documents, the transactions set forth or otherwise contemplated therein, or otherwise, and that if the Obligors now have, or ever did have, any offsets, defenses, claims, or counterclaims against any of the Released Parties, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time of execution of this Amendment, all of them are hereby expressly WAIVED, and the Obligors each hereby RELEASE each of the Released Parties from any and all liability therefor.

 

Conditions Precedent

	
3.  

	
The Lender’s agreements, all as more particularly set forth herein, shall not be effective unless and until each of the following conditions precedent have been fulfilled, all as determined by the Lender in its sole and exclusive discretion:

 

	
a.  

	
All action on the part of the Obligors necessary for the valid execution, delivery and performance by the Obligors of this Amendment shall have been duly and effectively taken and evidence thereof, including, without limitation, an opinion of the Obligors’ counsel, satisfactory to the Lender in all respects shall have been provided to the Lender; and

 

	
b.  

	
This Amendment shall be executed and delivered to the Lender by the parties thereto, shall be in full force and effect and shall be form and substance satisfactory to the Lender.

Amendments to Agreement

 

	
4.  

	
Subject to the satisfaction of the conditions set forth in Section 3 above, the Lender and the Obligors hereby agree that the Agreement is hereby amended as follows:

 

	
a.  

	
The date “March 31, 2011” contained in the third paragraph of the Background section of the Agreement is hereby deleted and the date “December 31, 2012” is inserted in its place.

 

	
b.  

	
The date “December 31, 2009” contained in Section 5 of the Agreement is hereby deleted and the date “[June ___, 2010]” inserted in its place.

 

	
c.  

	
Section 10 of the Agreement shall be deleted in its entirety and replaced with the following:

 

[Reserved.]

 

	
d.  

	
Section 13 of the Agreement shall be deleted in its entirety and replaced with the following:

 

From and after the later to occur of the Effective Date, and the date of the satisfaction of the Conditions Subsequent in accordance with Section 5 hereof, and in consideration of the Obligors’ performance in accordance with this Agreement, the Lender shall forbear (except with respect to the exercise of rights against (A) the Pledged Shares under the Pledge Agreement pursuant to Section 9, above, and (B) the COES Systems (as defined below)) from enforcing the Lender’s rights and remedies as a result of the Stated Defaults until the earlier of (a) the occurrence of a Termination Event (as defined below), or (b) the Termination Date.  Notwithstanding the foregoing, nothing contained in this Agreement or the other Financing Documents shall constitute a waiver by the Lender of any default or event of default, whether now existing or hereafter arising (including, without limitation, the Stated Defaults).  This Agreement shall only constitute an agreement by the Lender to forbear from enforcing its rights and remedies upon the terms and conditions set forth herein.  For the avoidance of doubt, the Obligors expressly acknowledge and agree that the Lender shall be entirely free to exercise any and all of its rights and remedies whether under the Financing Documents or otherwise (i) unless and until the satisfaction of the Conditions Subsequent in accordance with the provisions of Section 5 hereof; and (ii) at any time (even after satisfaction of the Conditions Subsequent) with respect to the (x) Pledged Shares, and (y) the corn oil extraction systems owned and operated by GS COES (Yorkville I), LLC at the ethanol plants listed on the attached Schedule 2-b, and/or any contracts, licenses, agreements, or other personal property related thereto or used in connection therewith (collectively, the “COES Systems”).

 

	
e.  

	
Section 15 of the Agreement shall be amended by inserting the following as new Section 15(k):

 

	
  

	
k.

	
The Obligors (i) make any payments, or (ii) sell, issue, transfer, or assign stock in any of the Obligors, to JMJ Financial Corporation or its affiliates.

 

Notwithstanding anything to the contrary contained in the Financing Documents, this Agreement, and/or the Related Documents, the Obligors and the Lender acknowledge and agree that the occurrence of a default under that certain Management Agreement dated as of June __, 2010 by and between GreenShift and YA Corn Oil Systems, LLC shall not be deemed to be a Termination Event under this Agreement or an Event of Default under that certain Amended and Restated Secured Convertible Debenture dated as of June __, 2010 issued by GreenShift in favor of the Lender in the original principal amount of $[______________].

 

	
f.  

	
Section 18 of the Agreement shall be deleted in its entirety and replaced with the following:

 

All notices hereunder to any party hereto shall be in writing and (i) hand delivered, (ii) sent by a nationally recognized overnight courier, or (iii) posted in the United States mail by registered or certified mail, return receipt requested, addressed to such party at its address indicated below:

 

	
If to any Obligor:

	
c/o GreenShift Corporation

	  	
One Penn Plaza, Suite 1612

	  	
New York, NY  10119

	  	
Attn: Kevin Kreisler

	  	
Telephone: 212-994-5374

	  	
Facsimile:  646-572-6336

	  	  
	
With a Copy to:

	
Glenn Schoenfeld, Esquire

	  	
405 Park Avenue, Suite 502

	  	
New York, New York 10022

	  	
Telephone: 212-754-7000

	  	
Facsimile:  212-758-0143

	  	  
	
If to the Lender:

	
YA Global Investments, L.P.

	  	
c/o Yorkville Advisors, LLC

	  	
101 Hudson Street, Suite 3700

	  	
Jersey City, New Jersey 07302

	  	
Attention:  Mr. Troy Rillo

	  	  
	
With a copy to:

	
Douglas K. Clarke, Esquire

	  	
Riemer & Braunstein LLP

	  	
Three Center Plaza

	  	
Boston, Massachusetts 02108

	  	
Telephone: 617-880-3485

	  	
Facsimile:  617-692-3485

 

or at any other address specified by such party in writing upon seven (7) days’ written notice to the other parties.  Any such notice shall be treated as having been given upon the earlier of (i) actual receipt (by any method of delivery) by the person to whom the notice is addressed, or (ii) upon delivery to such address (or refusal to accept delivery).

	
g.  

	
Schedule 1 to the Agreement shall be deleted in its entirety and the Exhibit “A” attached hereto shall be inserted in its place.

 

	
h.  

	
The attached Exhibit “B” shall be inserted into the Agreement as new “Schedule 2-b”.

 

	
5.  

	
The Obligors hereby ratify, confirm, and reaffirm all and singular the terms and conditions of the Agreement, the Financing Documents, and the Related Documents, and acknowledge and agree that, except as otherwise expressly amended pursuant to the terms and conditions of this Amendment, all terms and conditions of the Agreement, the Financing Documents, and the Related Documents shall remain in full force and effect;

 

 

Costs of Collection

 

	
6.  

	
The Obligors shall be liable to the Lender for any and all unreimbursed costs, expenses, and costs of collection (including attorneys’ fees and expenses) heretofore or hereafter incurred by the Lender in connection with the protection, preservation, and enforcement by the Lender of its rights and remedies under the Financing Documents, and/or this Amendment, including, without limitation, the negotiation and preparation of this Amendment and/or any matters related thereto.

Waiver of Jury Trial

	
7.  

	
The Obligors and the Lender hereby make the following waiver knowingly, voluntarily, and intentionally, and understand that the other, in entering into this Amendment, is relying on such a waiver: THE OBLIGORS AND THE LENDER EACH HEREBY IRREVOCABLY WAIVE ANY PRESENT OR FUTURE RIGHT TO A JURY IN ANY TRIAL OF ANY CASE OR CONTROVERSY IN WHICH THE OTHER BECOMES A PARTY (WHETHER SUCH CASE OR CONTROVERSY IS INITIATED BY OR AGAINST SUCH PARTY OR IN WHICH SUCH PARTY IS JOINED AS A PARTY LITIGANT), WHICH CASE OR CONTROVERSY ARISES OUT OF, OR IS IN RESPECT OF, ANY RELATIONSHIP BETWEEN THE OBLIGORS, OR ANY OTHER PERSON, AND THE LENDER.

[Remainder of Page Intentionally Left Blank]

1227630.1

  

  

  

  

IN WITNESS WHEREOF, this Amendment has been executed as of the date first set forth above.

	
YA GLOBAL INVESTMENTS, L.P.

By Yorkville Advisors, LLC, its investment manager,

 

By:_______________________________

Name: Troy Rillo

Title:   Senior Managing Director

	
 

	  	  	  
	  	  	  
	  	  	  

	  	  
	  	  
	  	  

[YA Global Signature Page to First Amendment to Global Forbearance Agreement]

[Signatures continued on following page]

  

  

_________________________________

Kevin Kreisler, Individually

VIRIDIS CAPITAL LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

GREENSHIFT CORPORATION (f/k/a GS CleanTech Corporation)

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

GS CLEANTECH CORPORATION (f/k/a GS Ethanol Technologies, Inc.)

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

GS COES (YORKVILLE I), LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

GS CARBON DIOXIDE TECHNOLOGIES, INC.

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

 

GS GLOBAL BIODIESEL, LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

 

GS AGRIFUELS CORPORATION

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

NEXTGEN ACQUISITION, INC.

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

NEXTGEN FUEL INC.

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

SUSTAINABLE SYSTEMS, INC.

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

SUSTAINABLE SYSTEMS LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

GS DESIGN, INC. (f/k/a Warnecke Design Service, Inc.)

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Chairman

 

GS RENTALS LLC (f/k/a Warnecke Rentals, LLC)

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

[Obligors’ Signature Page to First Amendment to Global Forbearance Agreement]

[Signatures continued on following page]

  

  

  

  

ECOSYSTEM TECHNOLOGIES, LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

GS BIG MANAGEMENT, LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

GS COES (ADRIAN I), LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing Member

GS TECHNOLOGY, LLC

 

By_______________________________

Name:               Kevin Kreisler

Title:                 Managing MemberWebFilings | EDGAR view

 

Exhibit 10.67
THOMAS PROPERTIES GROUP, INC. 2011 PHANTOM SHARE PLAN
EFFECTIVE AS OF MARCH 1, 2011
		
	1.    
	PURPOSE. 

 
The purpose of this Thomas Properties Group, Inc. 2011 Phantom Share Plan is to reward and retain senior executive officers of Thomas Properties Group, Inc. and its Affiliates and Subsidiaries.  This Plan is an incentive award plan that pays cash or, if the stockholders of the Company approve and authorize the issuance of sufficient equity to settle awards under this Plan, Common Shares to Grantees generally while they are still employed with the Company.  This Plan is neither a welfare plan nor a pension plan and, thus, is not governed by the Employee Retirement Income Security Act of 1974, as amended (ERISA).
		
	2.    
	DEFINITIONS. 

 
Capitalized terms used in this Plan shall have the meanings set forth in the Equity Incentive Plan except as otherwise expressly provided herein.  Additional capitalized terms shall have the meaning provided in this Section 2 or set forth in Section 4. 
		
	(a)    
	“Actual Vesting Date” shall have the meaning set forth in Section 4(c).

		
	(b)    
	“Anniversary Date” means an anniversary of the Grant Date.

		
	(c)    
	“Annual Return” means the annual total stockholder return (stock price plus dividends) for the Company during the 12-month period immediately preceding an applicable Anniversary Date.

		
	(d)    
	“Authorization Date” means the first date on which the stockholders of the Company, pursuant to the Equity Incentive Plan, have both (i) approved the settlement of all outstanding Grants of Phantom Shares awarded under this Plan in Common Shares and (ii) authorized additional Common Shares under the Equity Incentive Plan in an amount equal to (x) a sufficient number of Common Shares required to settle all outstanding Grants of Phantom Shares awarded under this Plan, plus (y) 750,000 Common Shares. 

		
	(e)    
	“Dividend Equivalent Right” means a right to receive an amount equal to the aggregate amount of dividends, if any, paid to the Company's shareholders on one Common Share where the record date(s) for such dividends occurred during the period from the Grant Date through and including the day immediately preceding the date cash or Common Shares are distributed to a Grantee to settle Phantom Shares pursuant to Section 7.

		
	(f)    
	“Equity Incentive Plan” means the Thomas Properties Group, Inc. 2004 Equity Incentive Plan, as amended from time to time, or any successor thereto.

		
	(g)    
	“Grant” means the award of Phantom Shares under this Plan, as evidenced by a Grant Agreement.

		
	(h)    
	“Grant Agreement” means the written agreement between the Company and a Grantee describing the number of Phantom Shares awarded and any other terms and conditions of the Grant that are additional to those described in this Plan. 

		
	(i)    
	“Grant Date” means the date specified by the Board on which a Grant shall become effective (which date shall not be earlier than the date on which the Board takes action with respect thereto). 

		
	(j)    
	“Grantee” means a senior executive officer of the Company selected by the Board to receive a Grant Agreement under this Plan.

		
	(k)    
	“Phantom Share” means a phantom interest in a Common Share of the Company that is 

 

 

awarded to a Grantee as provided in this Plan.
		
	(l)    
	“Phantom Share Value” means the value of a Phantom Share as of a particular date based on the Fair Market Value of a Common Share on such date. 

		
	(m)    
	“Plan” means this Thomas Properties Group, Inc. 2011 Phantom Share Plan, effective as of March 1, 2011, and as amended from time to time.

		
	(n)    
	“Scheduled Vesting Date” means the date that a Phantom Share would vest under Section 4(a) or Section 4(b), as applicable, absent any delay in vesting pursuant to Section 4(c).

		
	(o)    
	“Short-Term Deferral Deadline” means, with regard to any Phantom Share, the later of:  (i) the fifteenth day of the third month following Grantee's first taxable year in which such Phantom Share is no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth day of the third month following the first taxable year of the Company in which such Phantom Share is no longer subject to a substantial risk of forfeiture, in each case, as determined in accordance with Code Section 409A and any Treasury Regulations and other guidance issued thereunder.

		
	(p)    
	“Threshold Percent” means twelve percent (12%).

 
		
	3.    
	PARTICIPATION; AWARD OF PHANTOM SHARES

 
The Board may, upon such terms and conditions as it may determine consistent with this Plan, authorize Grants to be made to those senior executive officers that it designates in its sole discretion.  Each Grant shall specify the number of Phantom Shares to be granted to each such Grantee, and shall contain any additional terms and conditions relating to the Phantom Shares not otherwise specified in this Plan and approved by the Board.
		
	4.    
	VESTING

 
		
	(a)    
	Subject to a possible delayed vesting date as set forth in Section 4(c) and the Grantee's continued employment with the Company through the Actual Vesting Date, an Affiliate or Subsidiary, fifty percent (50%) of the Phantom Shares awarded in a Grant (“Performance Vested Phantom Shares”) shall vest as follows:

 
		
	(i)    
	On each of the first three (3) Anniversary Dates, Grantee shall vest in a percentage of the Performance Vested Phantom Shares determined by multiplying thirty-three and one-third percent (33.33%) by a fraction, (a) the numerator of which is equal to the Annual Return, provided that any negative Annual Return shall be expressed in the numerator as zero percent (0%) and provided further that the numerator shall not exceed the Threshold Percent, and (b) the denominator of which is equal to the Threshold Percent; and

 
		
	(ii)    
	If (a) Grantee vests in thirty-three and one-third percent (33.33%) of the Performance Vested Phantom Shares on any of the second or third Anniversary Dates pursuant to Section 4 (a)(i) of this Agreement, (any such Anniversary Date,  together with the fourth  and fifth anniversaries of the Date of Grant of the Performance Vested Phantom Shares  is referred to herein as a “Makeup Anniversary Date”), (b) the Annual Return as of such Makeup Anniversary Date exceeds the Threshold Percent, and (c) the  Grantee vested in less than thirty-three and one-third percent (33.33%) of the Performance Vested Phantom Shares pursuant to Section 4(a)(i) of  this Agreement on any of the first through third Anniversary Dates prior to such Makeup Anniversary Date, then Grantee shall vest 

 

 

in an additional number of the Performance Vested Phantom Shares on such Makeup Anniversary Date (such additional  number, the “Makeup Phantom Shares ”).  The number of Makeup Phantom Shares shall be calculated by (i) multiplying the fraction, expressed as a percentage not to be less than 0% or greater than 100%, where (a) the numerator is the total of all Annual Returns calculated for the current and preceding Anniversary Dates and (b) the denominator is the Threshold Percent times the number of Anniversary Dates to and including the Makeup Anniversary Date times (ii) the maximum number of Performance Vested Phantom Shares in which Grantee can vest as of such Makeup Anniversary Date, and then (iii) subtracting from such product the number of Performance Vested Phantom Shares in which Grantee has previously vested as of such Makeup Anniversary Date.  As an example of the foregoing calculation, if the Annual Return for the first Anniversary Date is 5%, the Annual Return for the second Anniversary Date is 12% and the Annual Return for the third Anniversary Date is 22%, there would be no Makeup Phantom Shares vested on the second Anniversary Date (since the Annual Return on that date did not exceed the Threshold Percent), but there would be Makeup Phantom Shares vested on the third Anniversary Date.  The number of Makeup Phantom Shares on the third Anniversary Date would be calculated as follows: Step 1: divide (a) the cumulative Annual Returns through the Makeup Anniversary Date (5% plus 12% plus 22% (i.e.39%)) by (b) the cumulative Threshold Percent through the Makeup Anniversary Date (12% times 3 equals 36%), to determine a percentage not to be less than 0% nor greater than 100% (product equals 108.33% thus  capped at 100%); Step 2: multiply such percentage (100%) by the maximum number of Performance Vested Phantom Shares in which Grantee can vest as of such Makeup Anniversary Date (55,000 Phantom Shares times 33.33% per year times 3 years), which product equal 55,000 Phantom Shares; Step 3: subtract from that product the number of Performance Vested Phantom Shares in which  Grantee has previously vested (7,638 Phantom Shares in year 1, 18,333 Phantom Shares in year 2 and 18,333 Phantom Shares in year 3, for a total of 44,304 Phantom Shares), resulting in a total number of 10,696 Makeup Phantom Shares. 
 
		
	(b)    
	Subject to a possible delayed vesting date as set forth in Section 4(c) and the Grantee's continued employment with the Company through the Actual Vesting Date, an Affiliate or Subsidiary, the remaining fifty percent (50%) of such Phantom Shares (the “Discretionary Vested Phantom Shares”) shall vest as follows:

 
		
	(i)    
	Sixty percent (60%) of the Discretionary Vested Phantom Shares (the “Discretionary Performance Vested Phantom Shares”) shall vest as follows: up to thirty-three and one-third percent (33.33%) of the Discretionary Performance Vested Phantom Shares shall vest on each Anniversary Date, subject to the achievement of individual goals (“Performance Goals”) for the 12-month period immediately preceding each such Anniversary Date, as determined by the Board in its sole discretion following recommendations by the Company's Chief Executive Officer, provided that if the Grantee vests in less than thirty-three and one-third percent (33.33%) of the Discretionary Performance Vested Phantom Shares on any Anniversary Date, the Board may allow the Performance Goals for the 12-month period immediately preceding such Anniversary Date to be carried forward to a future period or periods so that the Grantee has an opportunity to vest in all or a 

 

 

portion of such unvested percentage on one or more future Anniversary Dates up to the fifth (5th) Anniversary Date.
 
		
	(ii)    
	The remaining forty percent (40%) of the Discretionary Vested Phantom Shares (the “Board Discretionary Vested Phantom Shares”) shall vest as follows: up to thirty-three and one-third percent (33.33%) of the Board Discretionary Vested Phantom Shares shall vest on each Anniversary Date as determined by the Board in its sole discretion following recommendations by the Company's Chief Executive Office, provided that if the Grantee vests in less than thirty-three and one-third percent (33.33%) of the Board Discretionary Vested Phantom Shares on any Anniversary Date, the Grantee may vest in all or a portion of such unvested percentage on any future Anniversary Date up to the fifth (5th) Anniversary Date, as determined by the Board in its sole discretion.

 
		
	(c)    
	Notwithstanding Sections 4(a) and (b), if the Scheduled Vesting Date occurs before the Authorization Date, the Phantom Shares that would otherwise vest on such Scheduled Vesting Date will not vest unless and until the Grantee continues employment with the Company, an Affiliate or Subsidiary through the Authorization Date or, if earlier, the fifth (5th) Anniversary Date.  The date on which a Phantom Share vests pursuant to Sections 4(a) and 4(b), after giving effect to the application of this Section 4(c), is referred to herein as an “Actual Vesting Date.”

 
		
	(d)    
	Notwithstanding the provisions of Sections 4(a) through 4(c) above, all Phantom Shares awarded in a Grant shall become immediately vested upon the occurrence of a Change in Control.  Notwithstanding anything in this Plan to the contrary, in the event that a Phantom Share vesting is accelerated by application of this Section 4(d), the Actual Vesting Date with respect to such Phantom Shares shall be the date immediately preceding the date of the Change in Control.

 
		
	(e)    
	Notwithstanding the provisions in Sections 4(a) through 4(c) above, the Board, in its sole discretion, may determine that any or all Phantom Shares awarded in a Grant shall become immediately vested (i) if the Grantee becomes permanently disabled (as determined by the Board), or (ii) if the Grantee dies while in the employ of the Company, an Affiliate or a Subsidiary.  Notwithstanding anything in this Plan to the contrary, in the event that a Phantom Share vesting is accelerated by the Board in accordance with this Section 4(e), the Actual Vesting Date with respect to such Phantom Shares shall be the date of the Board action authorizing such acceleration.

 
		
	5.    
	FORFEITURE OF PHANTOM SHARES. 

 
Any unvested Phantom Shares shall be forfeited if the Grantee ceases for any reason to be employed by the Company or any Affiliate or Subsidiary at any time prior to such Phantom Shares vesting in accordance with Section 4.  For the purposes of this Plan, the Grantee's employment with the Company or an Affiliate or a Subsidiary shall not be deemed to have been interrupted, and Grantee shall not be deemed to have ceased to be an employee of the Company, an Affiliate or a Subsidiary, by reason of (i) the transfer of Grantee's employment among the Company and its Affiliates and Subsidiaries, (ii) an approved leave of absence of not more than 90 days, or (iii) the period of any leave of absence required to be granted by the Company under any law, rule, regulation or contract applicable to Grantee's employment with the Company or any Affiliate or Subsidiary.

 

 

		
	6.    
	ADJUSTMENTS.

 
Unless determined otherwise by the Board, in the event of (a) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, or (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing, the number of Phantom Shares that have been issued under the Plan shall be adjusted in the same manner as Common Shares are adjusted.  In the event of any such transaction or event, the Board, in its discretion, may provide in substitution for any or all outstanding Grants under this Plan such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection therewith the surrender of all Grants so replaced.
		
	7.    
	SETTLEMENT OF PHANTOM SHARES.

 
		
	(a)    
	As soon as administratively practicable following the Actual Vesting Date pursuant to Section 4, but in no event later than the Short-Term Deferral Deadline, such Phantom Shares will be settled through the payment of cash or, if the Authorization Date shall have occurred, Common Shares as follows:

 
		
	(i)    
	If the Authorization Date has occurred on or prior to the Actual Vesting Date, the Company shall settle all Phantom Shares by delivery to a Grantee of one Common Share for each vested Phantom Share held by such Grantee.

 
		
	(ii)    
	If the Authorization Date has not occurred on or prior to the Actual Vesting Date, Phantom Shares will be settled in cash, and the Grantee will be entitled to receive a lump sum payment equal to (1) the number of vested Phantom Shares held by the Grantee on such Actual Vesting Date, multiplied by (2) the Phantom Share Value on the Actual Vesting Date.

 
		
	(b)    
	Notwithstanding the foregoing, the issuance of Common Shares to settle Phantom Shares shall be delayed in the event the Company reasonably anticipates that the issuance of Common Shares will violate Federal securities laws or other applicable law; provided that such Common Shares will be issued on the earliest date at which the Company reasonably anticipates that issuing the Common Shares will not cause such violation.  For purposes of this paragraph, the issuance of Common Shares that would cause inclusion in gross income or the application of any penalty provision or other provision of the Code is not treated as a violation of applicable law.

 
		
	8.    
	DIVIDEND EQUIVALENTS.

 
Each Grantee is entitled to Dividend Equivalent Rights with respect to each Phantom Share held by the Grantee that vests pursuant to Section 4.  Dividend Equivalent Rights shall be paid, if at all, in cash at the time cash or Common Shares are distributed in settlement of the Phantom Shares held by the Grantee pursuant to Section 7.  Each Dividend Equivalent Right shall terminate as of the date the Phantom Share is settled pursuant to Section 7.  Dividend Equivalent Rights shall not be paid to Grantee for any Phantom Shares that do not vest pursuant to Section 4.
		
	9.    
	TRANSFERABILITY. 

 

 

 
Except as otherwise determined by the Board, Phantom Shares may not be transferred, sold, pledged, exchanged, assigned or otherwise encumbered or disposed of by Grantee other than by will or the laws of descent and distribution.  Any purported transfer, encumbrance or other disposition of Phantom Shares in violation of this section shall be null and void, and the other party to such purported transaction shall not obtain any rights to or interest in the Phantom Shares.
 
		
	10.    
	UNFUNDED, UNSECURED OBLIGATIONS.

  
The obligations of the Company under this Plan and any Grant shall be unfunded and unsecured, and nothing contained herein shall be construed as providing for assets to be held in trust or escrow or any other form of segregation of the assets of the Company for the benefit of a Grantee or any other person.  A Grantee shall have only the rights of a general, unsecured creditor of the Company with respect to the Phantom Shares, unless and until cash or Common Shares are distributed to such Grantee under the terms and conditions set forth herein and in the Grant Agreement.
		
	11.    
	WITHHOLDING TAXES. 

 
To the extent that the Company is required to withhold federal, state, local or foreign taxes in connection with any payment made or benefit realized by a Grantee or other person under this Plan, and the amounts available to the Company for such withholding are insufficient, it shall be a condition to the receipt of such payment or the realization of such benefit that the Grantee or such other person make arrangements satisfactory to the Company for payment of the balance of such taxes required to be withheld, which arrangements (in the discretion of the Board) may include relinquishment of a portion of such benefit. 
		
	12.    
	CODE SECTION 409A

 
The Company intends that any payments or benefits that a Grantee may become entitled to receive under this Plan be exempt from or comply with Section 409A of the Code and guidance promulgated thereunder.  This Plan, and any Grant Agreement issued hereunder, shall be interpreted and administered in accordance with such intent.
		
	13.    
	ADMINISTRATION OF THE PLAN. 

 
		
	(a)    
	This Plan shall be administered by the Board, which may from time to time delegate all or any part of its authority under this Plan to a committee of the Board (or a subcommittee thereof), as constituted from time to time. To the extent of any such delegation, references in this Plan to the Board shall be deemed to be references to such committee or subcommittee.

 
		
	(b)    
	The interpretation and construction by the Board of any provision of this Plan or of any Grant Agreement and any determination by the Board pursuant to any provision of this Plan or of any such Grant Agreement shall be final and conclusive. No member of the Board shall be liable for any such action or determination made in good faith. 

 
		
	14.    
	NO EMPLOYMENT RIGHTS. 

 
This Plan shall not confer upon any Grantee any right with respect to continuance of employment or other 

 

 

service with the Company or an Affiliate or Subsidiary, nor shall it interfere in any way with any right the Company or any Affiliate or Subsidiary would otherwise have to terminate such Grantee's employment or other service at any time. 
		
	15.    
	AMENDMENT AND TERMINATION OF PLAN. 

 
The Board may from time to time and at any time amend or terminate this Plan in whole or in part; provided, however, that no such action shall adversely affect the terms of any outstanding Grant without the Grantee's consent. 
 
		
	16.    
	GOVERNING LAW. 

 
The Plan and all grants and Awards and actions taken thereunder shall be governed by and construed in accordance with the internal substantive laws of the State of Delaware. 
		
	17.    
	GENERAL PROVISIONS.

 
		
	(a)    
	No Grantee shall have any rights as a stockholder under this Plan or a Grant until the date, if any, that he or she is actually recorded as the holder of Common Shares upon the stock records of the Company following the issuance of Common Shares to settle Phantom Shares. 

 
		
	(b)    
	All notices under this Plan shall be in writing, and if to the Company, shall be delivered to the Secretary of the Company or mailed to its principal office, City National Plaza, 515 South Flower Street, Los Angeles, California 90071, addressed to the attention of the Secretary; and if to a Grantee, shall be delivered personally or mailed to the Grantee at the address appearing in the records of the Company or an Affiliate or Subsidiary. Such addresses may be changed at any time by written notice to the other party.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]