Document:

EX-10.5

 Exhibit 10.5 

LOCKHEED MARTIN CORPORATION 
 NONQUALIFIED
CAPITAL ACCUMULATION PLAN 
 2014 Amendment No. 1 

Lockheed Martin Corporation (the “Corporation”) wishes to amend the Lockheed Martin Corporation Nonqualified Capital Accumulation Plan (the “NCAP”
or the “Plan”) in coordination with certain changes being made to certain qualified and non-qualified defined benefit pensions plans maintained by the Corporation. Accordingly, pursuant to a Resolution of the Board of Directors of the
Corporation dated June 26, 2014 and the authority granted therein, the NCAP is amended as follows, effective as set forth herein. 
  

	 	1.	Article II of the Plan (DEFINITIONS) is amended by revising Section 12 thereof (Definition of Eligible Employee) in its entirety to read as follows: 

“An employee of the Company who participates in the Qualified CAP and either (i) accrues benefits under the Qualified CAP in excess of the Code section 415
limits for a Year; (ii) earns Compensation in excess of the Code section 401(s)(17) limit for a Year; or (iii) with respect to the period prior to January 1, 2016, is eligible to receive Incentive Compensation with respect to a Year
(which may be payable in the following Year); provided that such employee satisfies such additional requirements for participation in this NCAP as the Committee may from time to time establish; provided further that employees who are designated by
the Company as eligible to participate in a defined benefit-type non-qualified deferred compensation plan or who are Section 16 Persons shall not be eligible to participate in this NCAP . Notwithstanding the foregoing, effective January 1,
2016, an employee who is a Section 16 Person is eligible to participate in the NCAP , provided such Section 16 Person otherwise satisfies the requirements for participation set forth in the Plan. Furthermore, for purposes of clarification,
the fact that an employee has a benefit under a SERP Plan with respect to period prior to January 1, 2020 does not preclude participation in the NCAP with respect to the period after that date, provided such employee does not accrue further
service or benefit under the SERP Plan for the period after January 1, 2020.” 
 In the exercise of its authority under this provision, the Committee shall
limit participation in the Plan to employees whom the Committee believes to be a select group of management or highly compensated employees within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended. 

	 	2.	ARTICLE II of the Plan is further revised by adding thereto the following new definitions at the end thereof: 

“AUTOMATIC COMPANY CONTRIBUTION—The Contribution made by the Company under the Qualified SSP (or successor thereto) that is determined as a percentage of a
participant’s Base Salary, and is not a Company Matching Contribution.” 
 “BASE SALARY—A Participant’s or Limited Scope Participant’s
“Base Salary” as defined in the Qualified SSP.” 
 “LIMITED SCOPE PARTICIPANT—With respect to the period prior to January 1, 2020, a
person whose Account consists solely of Supplemental Automatic Company Contributions.” 
 “NQSSP—The Lockheed Martin Corporation Supplemental Savings
Plan.” 
 “QUALIFIED SSP—The Lockheed Martin Corporation Salaried Savings Plan.” 

“SERP PLAN—The Lockheed Martin Corporation Supplemental Retirement Plan, the Lockheed Martin Supplementary Pension Plan for Transferred Employees of GE
Operations, the Supplemental Retirement Benefit Plan for Certain Transferred Employees of Lockheed Martin Corporation, and/or the Lockheed Martin Pilots Supplemental Retirement Plan.” 

“SUPPLEMENTAL AUTOMATIC COMPANY CONTRIBUTION—with respect to an Eligible Employee and a Limited Scope Participant, an amount equal to the same percentage of
his/her Base Salary that would have been contributed to the Qualified SSP on his/her behalf as an Automatic Company Contribution for the previous year if not for the limits under Code Section 415 and 401(a)(17) for the previous Year.” 

 

	 	3.	Section 1. of Article III (Commencement of Participation) is revised in its entirety to read as follows: 

“Commencement of Participation. An Eligible Employee of the Company shall become a Participant in the Plan on the first date a Contribution is credited to
his Account in accordance with Article IV(2). A person who is not an Eligible Employee shall become a Limited Scope Participant on the first date a Supplemental Automatic Contribution is credited to his Account.” 

	 	4.	Section 2. Of Article III (Cessation of Eligibility While Still an Employee) is revised in its entirety to read as follows: 

“Cessation of Eligibility While Still an Employee. A Participant who has not terminated employment with the Company will nevertheless cease to be an Eligible
Employee on the first to occur of (i) the employee is no longer eligible to participate in the Qualified CAP; (ii) the employee is designated by the Company as eligible to participate in a defined benefit-type nonqualified deferred
compensation plan; or (iii) with respect to period before January 1, 2016, the employee becomes a Section 16 Person. Following the cessation of eligibility, the employee will continue to be a Participant in the NCAP but will no longer
be eligible to be credited with Contributions under Article IV.” 
  

	 	5.	Section 1 of Article IV (Amount of Contributions) is revised in its entirety to read as follows: 

“Amount of Contributions. The Company shall make annual Contributions on behalf of a Participant equal to: 

 

	 	a.	an amount based on the same percentage of the Participant’s Weekly Rate of Compensation that would have been contributed to the Qualified CAP on behalf of the Participant for the previous Year if not for the
application of the limits under Code sections 415 and 401(a)(17) for the previous Year; and 

  

	 	b.	with respect to the period before January 1, 2016, an amount equal to a Participant’s Incentive Compensation paid during the Year multiplied by the percentage that is used for calculating Company contributions
to the Participant’s account (if any) in the Qualified CAP in the Year in which the Incentive Compensation is earned (as opposed to paid); and 

  

	 	c.	The Supplemental Automatic Company Contribution, except to the extent an equivalent amount is contributed to the NQSSP. 

  

	 	6.	Section 2 of Article IV (Crediting of Contributions) is revised by adding the following additional sentence at the end thereof: 

“Contributions made pursuant to Article IV(1) (c) shall be credited to an Account for the Eligible Employee or the Limited Purpose Participant, as applicable,
no later than March 15 of the Year following the Year in which the Automatic Company Contributions reached the applicable Code limits.” 

	 	7.	Section 3 of Article IV (Vesting of Contributions) is revised by adding the following additional paragraph at the end thereof: 

“Effective July 1, 2016, a Participant or Limited Scope Participant who is an active employee shall be 100% vested in his Account.” 

IN WITNESS WHEREOF, Lockheed Martin Corporation has caused this instrument to be executed this 11th
day of July, 2014. 
  

			
	LOCKHEED MARTIN CORPORATION
		
	By:	 	/s/ John T. Lucas
		 	 John T. Lucas
 Senior Vice President, Human Resources

& Communicationsex10-1.htm

Exhibit 10.1

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, WHICH OPINION SHALL BE REASONABLY ACCEPTABLE TO THE ISSUER.

 

INNOVUS PHARMACEUTICALS, INC.

 

THIRD AMENDED AND RESTATED

 

8% CONVERTIBLE DEBENTURE

 

	$1,500,000	 San Diego, CA
	 	
 

Dated as of:  July 22, 2014

 

The undersigned, Innovus Pharmaceuticals, Inc., a Nevada corporation ("Issuer"), hereby promises to pay Bassam Damaj, Ph.D. ("Debenture Holder") or his assigns, on the Maturity Date (as hereinafter defined), up to One Million Five Hundred Thousand Dollars ($1,500,000) (as such amount may be adjusted by Section 1.6, the “Maximum Principal Amount”), or so much thereof as shall then equal the outstanding principal amount hereof following one or more advances as provided in Section 1.1(a) (such amount, as modified from time to time as provided herein, the "Principal Amount”), unless this Third Amended and Restated 8% Convertible Debenture ("Debenture") is earlier converted in accordance with Section 1.2 or Section 1.3, and interest shall accrue hereon from January 22, 2013 and be payable as provided herein, unless earlier converted in accordance with Section 1.2 or Section 1.3 hereof or earlier repaid in accordance with Section 1.4 hereof.  This Third Amended and Restated 8% Convertible Debenture amends and restates the Second Amended and Restated 8% Convertible Debenture, dated November 11, 2013 between the Issuer and Debenture Holder.  As of the date of this Debenture, the Principal Amount is One Hundred Seventy-One Thousand, Eight Hundred Seventy-Seven Dollars and Fifty Cents ($171,877.50).

 

1. Terms of the Debenture.

 

1.1 Advances; Interest; Interest Rate; Repayment.

 

(a) From time to time, Issuer may request advances by Debenture Holder up to the Maximum Principal Amount.  Debenture Holder may make such advance(s) or decline to make such advance(s) in his sole and absolute discretion.

 

(b) Notwithstanding Section 1.1(a) above, if Issuer will have insufficient liquidity to meet any material payment obligations arising in the ordinary course of business (“Obligations”) as they come due, then Issuer will request an advance under this Debenture in the amount of such shortfall, and, unless the maximum Principal Amount is outstanding, Debenture Holder must make the advance so requested.  The commitments in this Section 1.1(b) shall automatically terminate on the earlier to occur (the “Release Date”) of (i) the consummation of one or more transactions pursuant to which Issuer raises through the sale of additional equity capital or debt net proceeds at least equal to $4,000,000 or (ii) July 1, 2016.

 

(c) The Principal Amount shall bear interest at the rate of eight (8%) percent (the "Interest Rate") per annum based on a 365-day year.  Interest shall be payable on the Maturity Date.

  

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(d) The Convertible Amount shall be either (a) if a PIPE Financing (as hereinafter defined) occurs before July 1, 2016, automatically converted into securities of the Issuer at the price of such PIPE Financing on the date of closing of the PIPE Financing, subject to any other rights described in Section 1.2 or (b) if the PIPE financing does not occur by July 1, 2016, then automatically converted into the common stock (“Common Stock”) of the Issuer at eighty percent (80%) of the closing price of the Issuer’s common stock on the date of signing of this Second Amended and Restate 8% Convertible Debenture, subject to any other rights described in Section 1.3 (such earlier date being the “Maturity Date”).  “PIPE Financing” shall mean the private placement of equity, equity equivalent, convertible debt or debt financing in which Issuer receives gross proceeds, in one or more transactions, of at least Four Million Dollars ($4,000,000).

 

(e) The Principal Amount and interest thereon may be prepaid in whole or in part by Issuer at any time in cash.

 

(f) All monetary payments to be made by Issuer hereunder shall be made in lawful money of the United States by check or wire transfer of immediately available funds.

 

(g) If all or a portion of the principal amount of this Debenture or any interest payable thereon shall not be repaid when due, whether on the Maturity Date, by acceleration or otherwise, such overdue amounts shall bear interest at a rate per annum that is five percent (5%) above the Interest Rate (i.e., 13%), from the date of such non-payment until such amount is paid in full (as well after as before judgment), subject to the provisions of Section 4.1 below.

 

1.2 Automatic Conversion Upon PIPE Financing.  Upon the PIPE Financing, the Convertible Amount, as defined below, shall be converted automatically into securities to be issued by Issuer in the PIPE Financing at the same terms as the investors in the PIPE Financing (the "PIPE Securities").  The “Convertible Amount” means up to a maximum amount of One Million Dollars of the Principal Amount plus eight percent (8%) per annum simple interest, based on a 365-day year, with such interest accruing for the period commencing on January 22, 2013 and ending on the date of conversion.  No fractional PIPE Securities shall be issued upon conversion.  In lieu of any fractional PIPE Securities to which the Debenture Holder would otherwise be entitled, Issuer shall pay cash in an amount equal to such amount of Debenture not converted.

 

1.3 Automatic Conversion on July 1, 2016.  If the PIPE Financing described in Section 1.2 above does not occur prior to July 1, 2016, then on that date, the Convertible Amount shall be converted automatically into Common Stock of the Issuer at the Conversion Price, as defined below.  The “Conversion Price” means an amount equal to the closing price of the Issuer’s Common Stock trading on either the OTC Bulletin Board or on any other exchange on the date of signing of this Second Amended and Restated 8% Convertible Debenture, multiplied by 80%.  No fractional Common Stock shall be issued upon conversion. In lieu of any fractional Common Stock to which the Debenture Holder would otherwise be entitled, Issuer shall pay cash in an amount equal to such amount of Debenture not converted.

 

1.4 Conversion Procedures.  Upon conversion of this Debenture as provided in Section 1.2 hereof, the Debenture Holder shall surrender this Debenture, appropriately endorsed, to Issuer at Issuer's principal office, accompanied by written notice to Issuer setting forth the name or names (with address(es)) in which the PIPE Securities issuable upon such conversion shall be issued and registered on the books of Issuer.  This Debenture shall be marked cancelled on the books of Issuer as of the date of the PIPE Financing, whether or not surrendered.

 

1.5 Non-Convertible Principal Amount.  Upon either of the Automatic Conversions described in Section 1.2 and 1.3 above, the remaining Principal Amount plus interest eight percent (8%) per annum simple interest, based on a 365-day year, with such interest accruing for the period commencing on January 22, 2013 and ending on the date of conversion (the “Non-Convertible Principal Amount”), shall be repaid by Issuer to the Debenture Holder in cash.

  

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1.6 Other Assurances.  Issuer shall not, by amendment of its Articles of Incorporation or By-laws or through any reorganization, transfer of assets, consolidation, merger, dissolution, issuance or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by Issuer, but shall at all times in good faith assist in the carrying out of all the provisions of this Debenture and in taking of all such actions as may be necessary or appropriate in order to protect the rights of the Debenture Holder herein against impairment.

 

1.7 Payments under Employment Agreement.  If before the Release Date any cash salary, bonus or severance payments are actually paid to Debenture Holder under his Employment Agreement with the Issuer dated January 22, 2013, the gross amount of such payment(s) (before any tax withholding or deductions) shall be added to the Maximum Principal Amount.

 

2. Events of Default.  If any of the following events (each, an "Event of Default") shall occur and be continuing:

 

(i) Issuer shall fail to pay any amount payable under this Debenture, including but limited to installments of interest and/or principal, within three (3) business days after such payment becomes due (at the Maturity Date, an Interest Payment Date or other date) in accordance with the terms hereof;

 

(ii) Issuer shall fail to pay when due (following the expiration of applicable notice and cure periods), whether upon acceleration, prepayment obligation or otherwise, any indebtedness for money due, individually or in the aggregate, involving an amount in excess of $50,000;

 

(iii) Any representation, warranty, covenant or agreement made by Issuer that this Debenture was incorrect in any material respect on or as of the date made;

 

(iv) Issuer shall default, in any material respect, in the observance or performance of any other agreement contained in this Debenture or any other agreement or instrument contemplated by this Debenture, and such default shall continue remedied for a period of fifteen (15) days after written notice to Issuer of such default;

 

(v) (a) Issuer shall commence any case, proceeding or other action (x) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (y) seeking appointment or a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or Issuer shall make a general assignment for the benefit of its creditors; or (b) there shall be commenced against Issuer any case, proceeding or other action of a nature referred to in clause (a) above that (A) results in the entry of an order for relief of any such adjudication of appointment or (B) remains undismissed, undischarged or unbonded for a period of ninety (90) days; or (c) there shall be commenced against Issuer any case, proceeding other action seeking issuance of a warrant of attachment, execution, distrait or similar process against all or any substantial part of its assets that results in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within ninety (90) days from the entry thereof; or (d) Issuer shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in any of the acts set forth in clauses (a), (b) or (c) above; or (e) Issuer shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due then, and in any such event, (x) if such event is an Event of Default specified in subsection (v) above of this Section 2, automatically this Debenture (with all accrued and unpaid interest thereon) and all other amounts owing under this Debenture shall immediately become due and payable, and (y) if such event is any other Event of Default, the Debenture Holder may, by written notice to Issuer, declare this Debenture (with all accrued and unpaid interest thereon) and all other amounts owing under this Debenture to be due and payable forthwith, whereupon the same shall immediately become due and payable.  Except as expressly provided above in this Section 2, presentation, demand, protest and all other notices of any kind are hereby expressly waived by Issuer.

  

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3. Reservation of Stock.

 

3.1 Reservation of Common Stock.  The Issuer covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon conversion of the Debenture, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than such number of shares of the Common Stock as shall be issuable upon the conversion of the outstanding principal amount of the Debenture.  The Issuer covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid and nonassessable.

 

4. Miscellaneous.

 

4.1 Interest Rate.  Any interest payable hereunder that is in excess of the maximum interest rate permitted under applicable law shall be reduced to the maximum interest rate permitted under such applicable law.

 

4.2 Notices.  All notices and other communications hereunder shall be in writing and shall be deemed to have been given when delivered by hand or by facsimile transmission, when telexed, or upon receipt when mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

If to Issuer:

 

Innovus Pharmaceuticals, Inc.

9171 Towne Center Drive, Suite 440

San Diego, CA 92122

 

Attn: Chief Financial Officer

 

Facsimile: 858-249-7871

 

With a copy (which copy shall not constitute notice) to:

 

Innovus Pharmaceuticals, Inc.

9171 Towne Center Drive, Suite 440

San Diego, CA 92122

Attn:  Legal Department

Facsimile: (858) 249-7872

If to Debenture Holder at its address as furnished to Issuer.

 

4.3 Further Indebtedness.  No indebtedness of the Issuer is senior to this Debenture in right of payment, whether with respect to interest, damages or upon liquidation or dissolution or otherwise.  Without the Debenture Holder's consent, the Issuer will not, directly or indirectly, enter into, create, incur, assume or suffer to exist any indebtedness of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits there from that is senior or paripassu in any respect to the obligations of the Issuer under this Debenture.

 

4.4 Entire Agreement; Exercise of Rights.

 

(a) This Debenture embodies the entire agreement and understanding of the parties hereto with respect to the subject matter hereof.  No amendment of any provision of this Debenture shall be effective unless it is in writing and signed by each of the parties; and no waiver of any provision of this Debenture, nor consent to any departure by either party from it, shall be effective unless it is in writing and signed by the affected party, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

  

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(b) No failure on the part of a party to exercise, and no delay in exercising, any right under this Debenture, or any agreement contemplated hereby, shall operate as a waiver hereof by such party, nor shall any single or partial exercise of any right under this Debenture, or any agreement contemplated hereby, preclude any other or further exercise thereof or the exercise of any other right.

 

4.5 Governing Law.  This Debenture shall be governed by and construed in accordance with the laws of the State of California applicable to agreements made and to be performed entirely within such state, without regards to its conflicts of law provisions.

 

4.6 Transferability.  This Debenture shall not be transferable in any manner without the express written consent of Issuer, which consent may not be unreasonably withheld.

 

IN WITNESS WHEREOF, the parties hereto have executed this Debenture on the date first above written.

 

 

	 	 INNOVUS PHARMACEUTICALS, INC.
	 	 	 
	 	 	 
	 	 By:	
	 	 	Name: Henry Esber, Ph.D.
	 	 	Title: Chairman of the Board
	 	 	 
	 	 	 
	 	DEBENTURE HOLDER
	 	 By:	 
	 	 	Bassam Damaj, Ph.D.
	 	 	 

 

 

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