Document:

EX-10.11

 

Exhibit 10.11

FORM OF CONSENT AND AMENDMENT

     THIS CONSENT AND AMENDMENT (this “Consent”) is made and entered into as of September 30, 2005,
by and among VOLUME SERVICES AMERICA, INC., a Delaware corporation (“VSA”), VOLUME SERVICES, INC.,
a Delaware corporation (“VS”), SERVICE AMERICA CORPORATION, a Delaware corporation (“SAC”) (VSA, VS
and SAC are sometimes collectively referred to herein as the “Borrowers” and individually as a
“Borrower”), CENTERPLATE, INC., a Delaware corporation (“Holdings”), the Lenders signatory hereto,
and GENERAL ELECTRIC CAPITAL CORPORATION, as a Lender and as the Administrative Agent (the
“Administrative Agent”).

Statement of Facts

     A. Borrowers, Holdings, the Lenders, and the Administrative Agent are parties to that certain
Credit Agreement, dated as of April 1, 2005 (the “Credit Agreement”; capitalized terms used but not
defined in this Consent have the meanings given in the Credit Agreement, as amended by this
Consent), whereby the Lenders have made certain extensions of credit to Borrowers.

     B. Borrowers and the other Loan Parties seek the Lenders’ consent to (i) enter into New
Service Contract A (defined below) which would require Capital Expenditures in excess of the amount
permitted pursuant to Section 6.15(c), (ii) enter into the New Service Contract B (defined below)
which would require Capital Expenditures in excess of the amount permitted pursuant to Section
6.15(b) of the Credit Agreement, (iii) amend Section 6.15(a) of the Credit Agreement to increase
the amount of permitted Capital Expenditures made under New Service Contract A, (iv) exclude from
the limitations of Section 6.15 any Capital Expenditures made under New Service Contract B, and (v)
amend certain defined terms as set forth herein.

Statement of Terms

     NOW THEREFORE, in consideration of the premises and mutual covenants contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. Consent. (a) Subject to the terms and conditions of this Consent, the
Administrative Agent and the Lenders hereby consent to Borrowers’ and/or any other Loan Party’s
entering into that New Service Contract with respect to the parties and venue as identified in a
writing making reference to this Consent and dated on or prior to the date hereof by Holdings
addressed and delivered to the Administrative Agent and identified as “New Service Contract A”
(such proposed New Service Contract referred to herein as the “New Service Contract A”),
provided the following conditions are satisfied at the time such contract is entered into:
(i) the New Service Contract A must constitute a Permitted Service Contract in all respects, and
the terms and provisions of the New Service Contract A must not violate any of the terms of the
Credit Agreement (as amended by this Consent), (ii) Capital Expenditures made or to be made by any
of the Loan Parties under the New Service Contract A must not exceed the limits set forth in the
Credit Agreement (as amended by this Consent), and (iii) immediately prior to entering into such
New Service Contract A, the Borrowers shall have demonstrated to the

 

 

reasonable satisfaction of the Administrative Agent that immediately prior to and after giving
effect to all of the Capital Expenditures required to be made by any of the Loan Parties under the
New Service Contract A, the Borrowers are in compliance with each of the financial covenant tests
set forth in Section 6.19 (as amended hereby).

     (b) Subject to the terms and conditions of this Consent, the Administrative Agent and the
Lenders hereby consent to a Borrower’s and/or any other Loan Party’s entering into a New Service
Contract with respect to the parties and venue as identified in a writing making reference to this
Consent and dated on or prior to the date hereof by Holdings addressed and delivered to the
Administrative Agent and identified as “New Service Contract B” (“New Service Contract B”). Upon
entering into the New Service Contract B, so long as the following conditions are satisfied at such
time, any Capital Expenditures made under such New Service Contract B shall not be subject to the
limitations set forth in Section 6.15 of the Credit Agreement (as amended by this Consent): (i) the
New Service Contract B must constitute a Permitted Service Contract in all respects, and the terms
and provisions of the New Service Contract B must not violate any of the terms of the Credit
Agreement (as amended by this Consent), and (ii) immediately prior to entering into such New
Service Contract B, the Borrowers shall have demonstrated to the reasonable satisfaction of the
Administrative Agent that immediately prior to and after giving effect to all of the Capital
Expenditures required to be made by any of the Loan Parties under the New Service Contract B, the
Borrowers are in compliance with each of the financial covenant tests set forth in Section 6.19 (as
amended hereby).

     (c) The consents provided in Sections 1(a) and 1(b) above relate solely to the specific
transactions described therein, and nothing in this Consent is intended (or shall be construed) to
be an approval, consent or waiver by the Lenders or the Administrative Agent of any other
covenants, terms or provisions of the Credit Agreement or of the other Loan Documents. Without
limiting the generality of the foregoing, nothing in this Consent is intended to be, nor shall be
construed as (i) a consent or approval by any Lender or the Administrative Agent to any increase or
modification, now or hereafter, in any of the Commitments of any Lender or in the Total Revolving
Loan Commitment Amount or the Term Loan Commitments, or (ii) an amendment or modification to
Section 6.15 as it relates to the Dollar limits on Capital Expenditures made in connection with the
Material Service Contract as in effect on the Closing Date and prior to the termination of such
Service Contract and the replacement thereof with the New Service Contract B.

     2. Amendment. Subject to the terms and conditions of this Consent, including without
limitation Section 4 hereof, the Credit Agreement is hereby amended as follows:

          (a) Section 1.1 of the Credit Agreement is hereby amended by inserting the following
new definitions in proper alphabetical order:

     “Consent” shall mean that certain Consent and Amendment dated as of September
___, 2005 by and among Holdings, the Borrowers, the Lenders party thereto and the
Administrative Agent.”

 

 

     ““Incremental New Service Contract B EBITDA” shall mean, for any twelve
consecutive Monthly Fiscal Periods, the amount, if any, by which the EBITDA attributable to
the New Service Contract B for such period exceeds the average annual EBITDA attributable to
the Material Service Contract for the last three full calendar years prior to the
commencement of operations at the new venue to which New Service Contract B relates.”

     ““New Service Contract A” shall have the meaning set forth in the Consent.”

     ““New Service Contract B” shall have the meaning set forth in the Consent.”

          (b) Section 1.1 of the Credit Agreement is hereby amended by amending the definition of
“Adjusted EBITDA” to read in full as follows:

     “Adjusted EBITDA” shall mean, for any Fiscal Period, (a) EBITDA for such Fiscal
Period, minus (b) Incremental New Service Contract B EBITDA, plus (c) to the extent deducted
in calculating EBITDA for such period, the Non-Cash Items for such Fiscal Period.”

          (c) Section 1.1 of the Credit Agreement is hereby amended by amending the definition of
“Available Cash” to read in full as follows:

     “Available Cash” shall mean, for any Monthly Fiscal Period, (a) Adjusted EBITDA for the
twelve Monthly Fiscal Periods ending with such Monthly Fiscal Period, less (b) the sum of
(i) Cash Interest Expense related to the Senior Indebtedness (other than Cash Interest
Expense in respect of Loans outstanding hereunder to the extent that the proceeds of such
Loans were used to fund the Consolidated Service Contract Capital Expenditures made by the
Borrowers and their Subsidiaries under New Service Contract B after the effective date of
such Service Contract that are permitted hereunder), (ii) principal payments (if any)
required or made with respect to the Senior Indebtedness, (iii) Capital Expenditures made in
cash (other than (x) Capital Expenditures made with Asset Sale Proceeds, proceeds of asset
sales described in the first proviso of the definition of “Asset Sale Proceeds”, Insurance
Proceeds, funds from the Dividend/CapEx Funding Account and the CapEx Funding Account, the
Equity Offering Proceeds from the issuance of IDSs to the extent not required to be applied
to prepay the Obligations under Section 2.10, equity issuance proceeds described in clause
(b) of the first parenthetical phrase of the definition of “Equity Offering Proceeds”, and
repayments of loans or returns of capital under Service Contracts, and (y) Consolidated
Service Contract Capital Expenditures made by the Loan Parties under New Service Contract B
after the effective date of such Service Contract to the extent that such Capital
Expenditures are permitted to be made hereunder), (iv) Tax Provisions paid in cash and (v)
Holdings Administrative Expenses, in each case for the twelve Monthly Fiscal Periods ending
with such Monthly Fiscal Period, plus (c) all tax credits and net operating loss
carryforwards used during the twelve Monthly Fiscal Periods ending with such Monthly Fiscal
Period, divided by (d) 12.

 

 

          (d) Section 1.1 of the Credit Agreement is hereby amended by amending the definition of
“Interest Coverage Ratio” by amending the parenthetical appearing after the reference to Cash
Interest Expense in the second line thereof to read in full as follows:

     “(excluding for any period of calculation, without duplication (i) Deferred
Subordinated Note Interest to the extent paid in cash during such period, from funds
withdrawn from the Dividend/CapEx Funding Account and, to the extent permitted in Section
2.22, the CapEx Funding Account, (ii) the amount of any required prepayment premium paid in
cash by the Borrowers to the Prior Creditors in connection with the prepayment of the term
loan under the Prior Credit Agreement on or prior to the Closing Date, and (iii) the amount
of Cash Interest Expense paid in cash during such period in respect of Loans outstanding
hereunder to the extent that the proceeds of such Loans were used to fund the Consolidated
Service Contract Capital Expenditures made by the Borrowers and their Subsidiaries under New
Service Contract B after the effective date of such Service Contract that are permitted
hereunder).”

          (e) Section 1.1 of the Credit Agreement is hereby amended by deleting the second to
last sentence of the definition of “Net Debt” and substituting in lieu thereof, the following:

     “Net Debt” shall not include, without duplication (i) obligations of Holdings or any of
its Subsidiaries to make minimum payments or to provide minimum or guaranteed commissions
under any service contract or any reasonable and customary indemnification obligations
incurred by Holdings or its Subsidiaries, (ii) any early termination payments that would be
owed by Holdings and its Subsidiaries on such date if all outstanding interest rate
protection agreements, foreign currency exchange agreements or other interest or exchange
rate hedging arrangements were terminated, and (iii) the principal amount of Loans
outstanding hereunder equal to the cumulative amount of Consolidated Service Contract
Capital Expenditures made by the Loan Parties after the effective date of such Service
Contract under New Service Contract B that are permitted hereunder.”

          (f) Section 1.1 of the Credit Agreement is hereby amended by deleting the second to
last sentence of the definition of “Net Senior Debt” and substituting in lieu thereof, the
following:

     “Net Senior Debt” shall not include (i) the outstanding principal amount of any
Holdings Subordinated Notes and any Deferred Subordinated Note Interest, (ii) any early
termination payments that would be owed if all outstanding interest rate protection
agreements, foreign currency exchange agreements or other interest or exchange rate hedging
arrangements were terminated, (iii) obligations of Holdings or any of its Subsidiaries to
make minimum payments or to provide minimum or guaranteed commissions under any Service
Contract or any reasonable and customary indemnification obligation incurred by Holdings or
its Subsidiaries, and (iv) the principal amount of Loans outstanding hereunder equal to the
cumulative amount of Consolidated Service Contract Capital Expenditures under New Service
Contract B made by the Loan

 

 

Parties after the effective date of such Service Contract to the extent such Capital
Expenditures were permitted hereunder.”

          (g) Section 2.10(j) of the Credit Agreement is hereby amended by deleting subclause (i)
in clause (b) of the proviso in Section 2.10(j) in its entirety and substituting in lieu thereof a
new subclause (i) to read in full as follows:

“(i) outstanding Revolving Loans, the proceeds of which were used to (x) finance Permitted
Business Acquisitions in an amount up to, but not exceeding, the specific dollar limitations
on such acquisitions set forth in Section 6.5(a) (without giving effect to any increase in
such dollar limitations that may apply in Section 6.5(a) from the receipt of net proceeds of
certain equity issuances made after the closing), and (y) fund Consolidated Service Contract
Capital Expenditures under New Service Contract B made by the Loan Parties after the
effective date of such Service Contract to the extent such Capital Expenditures were
permitted hereunder, and

          (h) Section 6.15(a) of the Credit Agreement is hereby amended by deleting the “.” at
the end of such Section 6.15(a) and inserting in lieu thereof the following proviso:

“; provided, further that (i) upon the delivery to the Administrative Agent of
a certificate of a Responsible Officer required pursuant to Section 5.4(h) hereof certifying
entry of Holdings or any of its Subsidiaries of the entry into New Service Contract A and
confirming that New Service Contract A is a Permitted Service Contract after giving effect
to the Consent, in addition to the Capital Expenditures otherwise permitted to be made under
this Section 6.15(a), the Loan Parties may make additional Capital Expenditures in
connection with New Service Contract A after the effective date of such Service Contract in
an aggregate amount for all such Capital Expenditures not to exceed $14,000,000 (the
“Maximum New Service Contract A Amount”), and (ii) any Capital Expenditures made by
any of the Loan Parties in connection with New Service Contract B after the effective date
of such Service Contract shall not be subject to any of the Dollar limitations set forth
above in this Section 6.15(a).”

          (i) Section 6.15(b) of the Credit Agreement is hereby amended by deleting such Section
in its entirety and substituting in lieu thereof the following:

          “(b) Maximum Capital Expenditures for Existing Service Contracts. Holdings and
its Subsidiaries on a consolidated basis shall not make, or enter into any renewal or
extension of any Existing Service Contract that requires the making of, Capital Expenditures
under the renewal or extension of any Existing Service Contract in excess of $10,000,000 in
the aggregate at any time after the Closing Date; provided, however, that: (i)
with respect to the Material Service Contract, such Dollar limitation on Capital
Expenditures set forth above in this Section 6.15(b) shall be deemed to be $15,000,000; and
(ii) upon the written request of the Borrowers to the Administrative Agent and the Lenders
made after the Closing Date, the Required Lenders may approve an increase in the Capital
Expenditure Dollar limit set forth above in this Section 6.15(b)(i) in excess of $15,000,000
with respect to the Material Service Contract, such

 

 

approval not to be unreasonably withheld by the Lenders so long as (x) no Default or Event
of Default exists or would result therefrom, (y) the Borrowers have demonstrated to the
satisfaction of Required Lenders that the Borrowers have the financial capacity to make such
additional Capital Expenditures and that, immediately prior to and after giving effect to
such additional Capital Expenditures, the Borrowers are in compliance with each of the
financial covenant tests set forth in Section 6.19; provided, further,
however, that, notwithstanding the foregoing and subject to the terms and conditions
set forth in the Consent, Holdings and its Subsidiaries may enter into the New Service
Contract B, which shall not be subject to the Dollar limitations on Capital Expenditures set
forth above in this Section 6.15(b).”

          (j) Section 6.15(c) of the Credit Agreement is hereby amended by deleting such Section
in its entirety and substituting in lieu thereof the following:

          “(c) Maximum Capital Expenditures for New Service Contracts. Holdings and its
Subsidiaries on a consolidated basis shall not make, or enter into any New Service Contract
after the Closing Date that requires the making of, Capital Expenditures under any New
Service Contract in excess of $7,500,000 in the aggregate at any time after the Closing
Date, provided, however, that Administrative Agent may (but is not under any
obligation to) approve Capital Expenditures under New Service Contracts in excess of
$7,500,000 that are proposed to be entered into by the Borrowers and identified to the
Administrative Agent in writing prior to the Closing Date; provided, further,
however, that, notwithstanding the foregoing and subject to the terms and conditions
set forth in the Consent, Holdings and its Subsidiaries may enter into and make Capital
Expenditures under the New Service Contract A so long as the Capital Expenditures made or
required to be made thereunder do not exceed the Maximum New Service Contract A Amount.”

     3. Representations and Warranties. Each Borrower hereby represents and warrants to the
Administrative Agent and the Lenders that (a) this Consent and the Confirmation attached hereto
have been duly authorized, executed and delivered by such Borrower and any other Loan Party
signatory thereto, (b) no Default or Event of Default has occurred and is continuing as of this
date, and (c) all of the representations and warranties made by Holdings, Borrowers or any of the
other Loan Parties in the Credit Agreement are true and correct in all material respects on and as
of the date of this Consent and after giving effect to this Consent (except to the extent that any
such representations or warranties (i) expressly referred to a specific prior date, or (ii) have
changed based upon events expressly permitted by the Credit Agreement).

     4. Ratification. Each Borrower hereby ratifies and reaffirms each and every term,
covenant and condition set forth in the Credit Agreement and all other documents delivered by such
Borrower in connection therewith (including without limitation the other Loan Documents to which
such Borrower is a party), effective as of the date hereof and after giving effect to this Consent.

 

 

     5. Release. (a) Each Loan Party, on behalf of itself and its successors, assigns, and
other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises
and forever discharges the Administrative Agent and Lenders, in their respective capacities as
Administrative Agent and Lenders under the Credit Agreement, and their successors and assigns, and
their present and former shareholders, affiliates, subsidiaries, divisions, predecessors,
directors, officers, attorneys, employees, agents and other representatives (the Administrative
Agent, each Lender and all such other Persons being hereinafter referred to collectively as the
“Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action,
suits, controversies, sums of money, accounts, bills, reckonings, damages and any and all other
claims, counterclaims, defenses, rights of set off, demands and liabilities whatsoever
(individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown,
suspected or unsuspected, both at law and in equity, which such Loan Party or any of its
successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim
to have against the Releasees or any of them for, upon, or by reason of any circumstance, action,
cause or thing whatsoever which arises at any time on or prior to the date that this Consent is
executed by all parties, in each case solely for or on account of or relating to the Credit
Agreement, any of the other Loan Documents or the transactions thereunder or related thereto, but
not including any Claims based on (i) any unfulfilled Borrowing request that remains outstanding as
of the date of this Consent and for which a request for Borrowing has been properly given by
Borrower Representative under the Credit Agreement but not yet funded by Lenders, or (ii) checks,
wire transfers or other matters which are ancillary to the credit transactions contemplated by the
Credit Agreement.

     (b) Each Loan Party understands, acknowledges and agrees that its release set forth above may
be pleaded as a full and complete defense and may be used as a basis for an injunction against any
action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the
provisions of such release.

     (c) Each Loan Party agrees that no fact, event, circumstance, evidence or transaction which
could now be asserted or which may hereafter be discovered shall affect in any manner the final,
absolute and unconditional nature of the release set forth above.

     6. Reimbursement of Expenses. Additionally, Borrowers hereby agree, on a joint and
several basis, to reimburse the Administrative Agent and the Lenders on demand for all reasonable
costs and expenses (including without limitation reasonable attorney’s fees) incurred by such
parties in connection with the negotiation, documentation and consummation of this Consent and the
other documents executed in connection herewith and therewith and the transactions contemplated
hereby and thereby.

     7. Conditions to Effectiveness. This Consent shall be effective as of the date of
this Consent (the “Consent Effective Date”), subject to the Administrative Agent’s receipt of (i)
this Consent, duly executed, completed and delivered by the Administrative Agent, the Required
Lenders, Holdings and each Borrower, (ii) the attached Confirmation, duly executed and delivered by
each other Loan Party, (iii) the written notices from Holdings referred to in Section 1 identifying
the parties and venue relating to New Service Contract A and New Service

 

 

Contract B, which notices must be in form and substance satisfactory to Administrative Agent, and
(iv) payment of all other reasonable fees, costs and expenses (including the fees, costs and
expenses of counsel or other advisors) incurred by or on behalf of the Administrative Agent in
connection with this Consent and any of the other Loan Documents relating to this Consent.

     8. Governing Law. THIS CONSENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK FOR CONTRACTS TO BE PERFORMED ENTIRELY WITHIN SAID STATE.

     9. Severability of Provisions. Any provision of this Consent which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction. To the
extent permitted by applicable law, each Borrower hereby waives any provision of law that renders
any provision hereof prohibited or unenforceable in any respect.

     10. Counterparts. This Consent may be executed in any number of counterparts, all of
which shall be deemed to constitute but one original and shall be binding upon all parties, their
successors and permitted assigns.

     11. Entire Agreement. The Credit Agreement as amended by this Consent embodies the
entire agreement between the parties hereto relating to the subject matter hereof and supersedes
all prior agreements, representations and understandings, if any, relating to the subject matter
hereof.

     12. No Other Consents, Waivers or Consents. Except for the consent expressly set forth
and referred to in Section 1 above, the Credit Agreement and the other Loan Documents shall
remain unchanged and in full force and effect. Nothing in this Consent is intended, or shall be
construed, to constitute a novation or an accord and satisfaction of any of the Obligations or to
modify, affect or impair the perfection or continuity of the Administrative Agent’s and the
Lenders’ security interests in, security titles to or other Liens on any Collateral.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the parties have caused this Consent to be duly executed by their
respective duly authorized officers, as of the date first above written.

      

VOLUME SERVICES AMERICA, INC.

 

 

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

 

VOLUME SERVICES, INC.

 

 

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

 

SERVICE AMERICA CORPORATION

 

 

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

 

CENTERPLATE, INC.

 

 

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

      

[Signature Page to Consent and Amendment dated September __, 2005]

 

 

      

GENERAL ELECTRIC CAPITAL

CORPORATION, as a Lender and

as Administrative Agent

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

      

[Signature Page to Consent and Amendment dated September __, 2005]

 

 

      

_______________________________________, as a Lender

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

      

[Signature Page to Consent and Amendment dated September __, 2005]

 

 

CONFIRMATION

     Each of the undersigned Persons hereby acknowledges, consents and agrees to the terms of the
foregoing Consent and Amendment and agrees and confirms that its obligations under each Loan
Document to which it is a party will continue in full force and effect after giving effect to such
Consent.

     This ___day of September, 2005.

	 	 	 	 	 
	 	SERVICE AMERICA CONCESSIONS CORPORATION,
a Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SERVICE AMERICA OF TEXAS, INC.,
 a Texas corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SERVICE AMERICA CORPORATION OF WISCONSIN,
a Wisconsin corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Consent and Amendment dated September __, 2005]

 

 

	 	 	 	 	 
	 	V.S.I. OF MARYLAND, INC.,
a Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Consent and Amendment dated September __, 2005]exv10w1

 

Exhibit 10.1

GARTNER, INC.

2003 LONG-TERM INCENTIVE PLAN

STOCK APPRECIATION RIGHT AGREEMENT

Grant # ________

NOTICE OF GRANT

     Gartner, Inc. (the “Company”) hereby grants you, [NAME OF EMPLOYEE] (the “Grantee”), a stock
appreciation right (the “SAR”) under the Company’s 2003 Long-Term Incentive Plan (the “Plan”), to
exercise in exchange for a payment from the Company pursuant to this SAR. The date of this
Agreement is [DATE] (the “Grant Date”). In general, the latest date this SAR will expire is [DATE]
(the “Expiration Date”). However, as provided in Appendix A (attached hereto), this SAR may
expire earlier than the Expiration Date. Subject to the provisions of Appendix A and of the Plan,
the principal features of this SAR are as follows:

Number of Shares to which this SAR pertains: [NUMBER]

Exercise Price per Share: $0.0005

Vesting Commencement Date: [DATE]

Vesting Schedule:

Twenty-five percent (25%) of the Shares to which this SAR pertains shall vest on the one (1)
year anniversary of the Vesting Commencement Date, and twenty-five percent (25%) of the
Shares to which this SAR pertains shall vest on each subsequent anniversary of the Vesting
Commencement Date, subject to Grantee’s Continued Service through each such date.

	 	 	 
	Event Triggering	 	Maximum Time to Exercise
	Termination of SAR:	 	After Triggering Event*:
	Termination of Service due to Disability

	 	6 months
	Termination of Service due to death

	 	1 year
	All other Terminations of Service

	 	90 days

 

			
	*	 	However, in no event may this SAR be exercised after the Expiration Date.

     Your signature below indicates your agreement and understanding that this SAR is subject to
all of the terms and conditions contained in this the Plan and this SAR Agreement (the
“Agreement”), which includes this Notice of Grant and Appendix A. For example, important
additional information on vesting and termination of this SAR is contained in Paragraphs 3 through
5 of Appendix A. ACCORDINGLY, PLEASE BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE
SPECIFIC TERMS AND CONDITIONS OF THIS SAR.

	 	 	 	 	 	 	 
	GARTNER, INC.	 	 	 	GRANTEE
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Title:
	 	 	 	[NAME]

 

 

APPENDIX A

TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

     1. Grant of SAR. The Company hereby grants to the Grantee under the Plan, as a
separate incentive in connection with his or her employment and not in lieu of any salary or other
compensation for his or her services, a SAR pertaining to all or any part of an aggregate of
[NUMBER] Shares, which SAR entitles the Grantee to exercise the SAR in exchange for Shares in the
amount determined under Paragraph 9 below.

     2. Exercise Price. The purchase price per Share for this SAR (the “Exercise Price”)
shall be $0.0005, which is the Fair Market Value of a Share on the Grant Date. When the SAR is
exercised, the purchase price will be deemed paid by the Grantee for the exercised portion of the
SAR through the past services rendered by the Grantee, and will be subject to the appropriate tax
withholdings.

     3. Vesting Schedule. Except as otherwise provided in this Agreement, the right to
exercise this SAR will vest in accordance with the vesting schedule set forth in the Notice of
Grant which constitutes part of this Agreement. Shares scheduled to vest on any date will vest
only if the Grantee remains in Continued Service on such date. The Committee, in its discretion,
may accelerate the vesting of the balance, or some lesser portion of the balance, of the SARs at
any time, subject to the terms of the Plan. If so accelerated, such SARs will be considered as
having vested as of the date specified by the Committee.

     4. Termination of SAR. In the event of the Grantee’s termination of Continued Service
for any reason other than Disability or death, the Grantee may, within ninety (90) days after the
date of such termination of Continued Service, or prior to the Expiration Date, whichever shall
first occur, exercise any vested but unexercised portion of this SAR. In the event of the
Grantee’s termination of Continued Service due to Disability, the Grantee may, within six (6)
months after the date of such termination, or prior to the Expiration Date, whichever shall first
occur, exercise any vested but unexercised portion of this SAR.

     5. Death of Grantee. In the event that the Grantee dies while in the employ of the
Company and/or a Parent or Subsidiary, the administrator or executor of the Grantee’s estate (or
such other person to whom the SAR is transferred pursuant to the Grantee’s will or in accordance
with the laws of descent and distribution), may, within one (1) year after the date of death,
exercise any vested but unexercised portion of the SAR. Any such transferee must furnish the
Company (a) written notice of his or her status as a transferee, (b) evidence satisfactory to the
Company to establish the validity of the transfer of this SAR and compliance with any laws or
regulations pertaining to such transfer, and (c) written acceptance of the terms and conditions of
this SAR as set forth in this Agreement.

     6. Persons Eligible to Exercise SAR. Except as provided in Paragraph 5 above or as
otherwise determined by the Committee in its discretion, this SAR shall be exercisable during the
Grantee’s lifetime only by the Grantee.

Page 2 of 6

 

     7. SAR is Not Transferable. Except as otherwise expressly provided herein, this SAR
and the rights and privileges conferred hereby may not be transferred, pledged, assigned or
otherwise hypothecated in any way (whether by operation of law or otherwise) and shall not be
subject to sale under execution, attachment or similar process. Upon any attempt to transfer,
pledge, assign, hypothecate or otherwise dispose of this SAR, or of any right or privilege
conferred hereby, or upon any attempted sale under any execution, attachment or similar process,
this SAR and the rights and privileges conferred hereby immediately shall become null and void.

     8. Exercise of SAR. This SAR may be exercised by the person then entitled to do so as
to any Shares, and such exercise must be in accordance with the Company’s published exercise
procedures, as in effect from time to time, which may require the Grantee to exercise this SAR
through the Company’s designated broker or administrator. All exercises must be accompanied by
payment of the aggregate exercise price together with all taxes the Company determines are
required to be withheld by reason of the exercise of this SAR or as are otherwise required under
Paragraph 10 below. Exercise forms are available from the Stock Plan Administration. Payment of
the aggregate exercise price must be (i) in cash (including check, bank draft or money order), or
(ii) for “cashless exercises” during the open trading window, by delivery of such documentation as
the Committee and any broker of deposit, if applicable, shall require to effect an exercise of the
SAR and delivery to the Company of the sale or loan proceeds required to pay the exercise price, in
each case plus any applicable withholding taxes.

     9. Payment of SAR Amount. Upon exercise of this SAR, the Grantee shall be entitled to
receive the number of Shares (the “SAR Amount”), less applicable withholdings, determined by (i)
multiplying (a) the difference between the Fair Market Value of a Share on the date of exercise
over the Exercise Price; times (b) the number of Shares with respect to which this SAR is
exercised, and (ii) dividing the product of (a) and (b) by the Fair Market Value of a Share on the
date of exercise. The SAR Amount shall be paid solely in whole Shares; any fractional amount shall
be rounded down to the nearest whole share. Shares issued pursuant to the exercise of this SAR may
be delivered in book form or listed in street name with a brokerage company of the Company’s
choice.

     10. Tax Withholding and Payment Obligations. When the Shares are issued as payment
for exercised SARs, the Grantee will recognize immediate U.S. taxable income if the Grantee is a
U.S. taxpayer. If the Grantee is a non-U.S. taxpayer, the Grantee will be subject to applicable
taxes in his or her jurisdiction. The Company (or the employing Parent or Subsidiary) will
withhold a portion of the Shares otherwise issuable in payment for exercised SARs that have an
aggregate market value sufficient to pay the minimum federal, state and local income, employment
and any other applicable taxes required to be withheld by the Company (or the employing Parent or
Subsidiary) with respect to the Shares. No fractional Shares will be withheld or issued pursuant
to the exercise of SARs and the issuance of Shares thereunder. The Company (or the employing
Parent or Subsidiary) may instead, in its discretion, withhold an amount necessary to pay the
applicable taxes from the Grantee’s paycheck, with no withholding of Shares. In the event the
withholding requirements are not satisfied through the withholding of Shares (or, through the
Grantee’s paycheck, as indicated above), no payment will be made to the Grantee (or his or her
estate) for SARs unless and until satisfactory arrangements (as determined by the Committee) have
been made by the Grantee with respect to the payment of any income and other taxes which the
Company determines must be withheld or collected with respect to such SARs. By accepting this
award of SARs, the

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Grantee expressly consents to the withholding of Shares and to any cash or Share withholding
as provided for in this paragraph 10. All income and other taxes related to the SAR award and any
Shares delivered in payment thereof are the sole responsibility of the Grantee.

     11. Suspension of Exercisability. If at any time the Company shall determine, in its
discretion, that the listing, registration or qualification of the SARs upon any securities
exchange or under any state or federal law, or the consent or approval of any governmental
regulatory authority, is necessary or desirable as a condition of the exercise of SARs hereunder,
this SAR may not be exercised, in whole or in part, unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Company. The Company shall make reasonable efforts to meet the requirements of
any such state or federal law or securities exchange and to obtain any such consent or approval of
any such governmental authority.

     12. No Rights of Stockholder. Neither the Grantee (nor any transferee) shall be or
have any of the rights or privileges of a stockholder of the Company in respect of any of the
Shares covered by this SAR.

     13. No Effect on Employment. The Grantee’s employment with the Company and any Parent
or Subsidiary is on an at-will basis only, subject to the provisions of applicable law.
Accordingly, subject to any written, express employment contract with the Grantee, nothing in this
Agreement or the Plan shall confer upon the Grantee any right to continue to be employed by the
Company or any Parent or Subsidiary or shall interfere with or restrict in any way the rights of
the Company or the employing Parent or Subsidiary, which are hereby expressly reserved, to
terminate the employment of the Grantee at any time for any reason whatsoever, with or without good
cause. Such reservation of rights can be modified only in an express written contract executed by
a duly authorized officer of the Company or the Parent or Subsidiary employing the Grantee.

     14. Address for Notices. Any notice to be given to the Company under the terms of
this Agreement shall be addressed to the Company, in care of its Secretary at the Company’s
headquarters, P.O. Box 10212, 56 Top Gallant Road, Stamford, CT 06902-7700, or at such other
address as the Company may hereafter designate in writing.

     15. Maximum Term of SAR. Notwithstanding any other provision of this Agreement, this
SAR is not exercisable after the Expiration Date.

     16. Binding Agreement. Subject to the limitation on the transferability of this SAR
contained herein, this Agreement shall be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.

     17. Governing Law. This Agreement shall be construed in accordance with and governed
by the laws of the State of Connecticut, other than its conflicts of laws provisions.

     18. Plan Governs. This Agreement is subject to all of the terms and provisions of the
Plan. In the event of a conflict between one or more provisions of this Agreement and one or

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more provisions of the Plan, the provisions of the Plan shall govern. Capitalized terms and
phrases used and not defined in this Agreement shall have the meaning set forth in the Plan.

     19. Committee Authority. The Committee shall have all discretion, power, and
authority to interpret the Plan and this Agreement and to adopt such rules for the administration,
interpretation and application of the Plan as are consistent therewith (including, but not limited
to, the determination of whether or not any SARs have vested). All actions taken and all
interpretations and determinations made by the Committee in good faith shall be final and binding
upon the Grantee, the Company and all other interested persons, and shall be given the maximum
deference permitted by law. No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or this Agreement.

     20. Captions. The captions provided herein are for convenience only and are not to
serve as a basis for the interpretation or construction of this Agreement.

     21. Agreement Severable. In the event that any provision in this Agreement shall be
held invalid or unenforceable, such provision shall be severable from, and such invalidity or
unenforceability shall not be construed to have any effect on, the remaining provisions of this
Agreement.

     22. Modifications to the Agreement. This Agreement constitutes the entire
understanding of the parties on the subjects covered. The Grantee expressly warrants that he or
she is not executing this Agreement in reliance on any promises, representations, or inducements
other than those contained herein. Except as otherwise provided herein, modifications to this
Agreement or the Plan can be made only in an express written contract executed by a duly authorized
officer of the Company.

     23. Amendment, Suspension, Termination. By accepting this SAR, the Grantee expressly
warrants that he or she has received an SAR to purchase stock under the Plan, and has received,
read and understood a description of the Plan. The Grantee understands that the Plan is
discretionary in nature and may be modified, suspended or terminated by the Company at any time.

     24. Defined Terms: Capitalized terms used in this Agreement without definition will
have the meanings provided for in the Plan. When used in this Agreement, the following capitalized
terms will have the following meanings:

“Continued Service” means that your employment relationship is not
interrupted or terminated by you, the Company, or any Parent or Subsidiary of
the Company. Your employment relationship will not be considered interrupted
in the case of: (i) any leave of absence approved in accordance with the
Company’s written personnel policies, including sick leave, family leave,
military leave, or any other personal leave; or (ii) transfers between
locations of the Company or between the Company and any Parent, Subsidiary or
successor; provided, however, that, unless otherwise provided in the
Company’s written personnel policies, in this Agreement or under applicable
laws, rules or regulations, or unless the Committee has otherwise expressly

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provided for different treatment with respect to this Agreement, (x) no such
leave may exceed ninety (90) days, and (y) any vesting shall cease on the
ninety-first (91st) consecutive date of any leave of absence
during which your employment relationship is deemed to continue and will not
recommence until such date, if any, upon which you resume service with the
Company, its Parent, Subsidiary or successor. If you resume such service in
accordance with the terms of the Company’s military leave policy, upon
resumption of service you will be given vesting credit for the full duration
of your leave of absence. Continuous employment will be deemed interrupted
and terminated for an Employee if the Grantee’s weekly work hours change from
full time to part time. Part-time status for the purpose of vesting
continuation will be determined in accordance with policies adopted by the
Company from time to time, which policies, if any, shall supersede the
determination of part-time status set forth in the Company’s posted “employee
status definitions”.

“Disability” means total and permanent disability as defined in
Section 22(e)(3) of the Code.

o 0 o

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