Document:

EX-4.66

 Exhibit 4.66 
  

 
  

SHARE PURCHASE AGREEMENT 
 Dated
October 24, 2016 
 between 

CAPITAL MARITIME & TRADING CORP. 

and 
 CAPITAL PRODUCT PARTNERS
L.P. 
 one hundred (100) Shares 
  

 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page	 
	
	ARTICLE I	  
	
	Interpretation	  
		
	 Definitions
	  	 	2	  
	
	ARTICLE II	  
	
	Purchase and Sale of Shares; Closing	  
		
	 Purchase and Sale of Shares
	  	 	4	  
	 Closing
	  	 	5	  
	 Place of Closing
	  	 	5	  
	 Purchase Price for Shares
	  	 	5	  
	 Payment of the Purchase Price
	  	 	5	  
	
	ARTICLE III	  
	
	Representations and Warranties of the Buyer	  
		
	 Organization and Limited Partnership Authority
	  	 	5	  
	 Agreement Not in Breach of Other Instruments
	  	 	5	  
	 No Legal Bar
	  	 	5	  
	 Issuance of Transferred Common Units
	  	 	6	  
	 The Transferred Common Units
	  	 	6	  
	 Securities Act
	  	 	6	  
	 Private Offering
	  	 	6	  
	 Independent Investigation
	  	 	7	  
	
	ARTICLE IV	  
	
	Representations and Warranties of the Seller	  
		
	 Organization and Corporate Authority
	  	 	7	  
	 Agreement Not in Breach
	  	 	7	  
	 No Legal Bar
	  	 	7	  
	 Good and Marketable Title to Shares
	  	 	7	  
	 The Shares
	  	 	7	  
	 Securities Act
	  	 	8	  
	 Independent Investigation
	  	 	8	  

  
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	 	  	Page	 
	
	ARTICLE V	  
	
	 Representations and Warranties of

the Seller Regarding the Vessel Owning Subsidiary
	   
   

		
	 Organization Good Standing and Authority
	  	 	8	  
	 Capitalization; Title to Shares
	  	 	9	  
	 Organizational Documents
	  	 	9	  
	 Agreement Not in Breach
	  	 	9	  
	 Litigation
	  	 	9	  
	 Indebtedness to and from Officers, etc.
	  	 	9	  
	 Personnel
	  	 	9	  
	 Contracts and Agreements
	  	 	10	  
	 Compliance with Law
	  	 	10	  
	 No Undisclosed Liabilities
	  	 	10	  
	 Disclosure of Information
	  	 	11	  
	 Payment of Taxes
	  	 	11	  
	 Permits
	  	 	11	  
	 No Material Adverse Change in Business
	  	 	11	  
	
	ARTICLE VI	  
	
	 Representations and Warranties of

the Seller regarding the Vessel
	   
   

		
	 Title to Vessel
	  	 	12	  
	 No Encumbrances
	  	 	12	  
	 Condition
	  	 	12	  
	
	ARTICLE VII	  
	
	Covenants	  
		
	 Financial Statements
	  	 	12	  
	 Expenses
	  	 	12	  
	 Subsequent Share Purchase Agreement.
	  	 	13	  
	
	ARTICLE VIII	  
	
	Amendments and Waivers	  
		
	 Amendments and Waivers
	  	 	13	  
	
	ARTICLE IX	  
	
	Indemnification	  
		
	 Indemnity by the Seller
	  	 	13	  
	 Indemnity by the Buyer
	  	 	14	  
	 Exclusive Post-Closing Remedy
	  	 	14	  

  
 ii 

					
	 	  	Page	 
	
	ARTICLE X	  
	
	Miscellaneous	  
		
	 Governing Law
	  	 	14	  
	 Counterparts
	  	 	14	  
	 Complete Agreement
	  	 	15	  
	 Interpretation
	  	 	15	  
	 Severability
	  	 	15	  
	 Third Party Rights
	  	 	15	  
	 Notices
	  	 	15	  
	 Representations and Warranties to Survive
	  	 	15	  
	 Remedies
	  	 	16	  
	 Non-recourse to General Partner
	  	 	16	  

  
 iii 

 SHARE PURCHASE AGREEMENT (the “Agreement”), dated as of October 24, 2016,
by and between CAPITAL MARITIME & TRADING CORP. (the “Seller”), a corporation organized under the laws of the Republic of the Marshall Islands, and CAPITAL PRODUCT PARTNERS L.P. (the “Buyer”), a limited
partnership organized under the laws of the Republic of the Marshall Islands. 
 WHEREAS, the Buyer wishes to purchase from the Seller, and
the Seller wishes to sell to the Buyer, the one hundred (100) shares of capital stock (the “Shares”) representing all of the issued and outstanding shares of capital stock of Filonikis Product Carrier S.A., a corporation
organized under the laws of Liberia with its registered office at 80 Broad Street, Monrovia, Liberia (the “Vessel Owning Subsidiary”), for a purchase price of approximately $32.75 million, consisting of: (i) $16,000,000 in cash
consideration, as referenced in Section 2.04, (ii) 283,696 Common Units (as defined below), as referenced in Section 2.04 (resulting in consideration from such Common Units of approximately $1,000,000, valuing the Common Units at a price
per Common Unit of $3.5429, which is the volume weighted average price per Common Unit on the NASDAQ Global Market for the trading day period beginning on July 14, 2016 and ending on October 14, 2016), and (iii) assumption of
approximately $15,750,000 in debt owed by the Vessel Owning Subsidiary under the Loan Agreement (as defined below) to which the Vessel Owning Subsidiary is a party, as referenced in Section 5.10. 

WHEREAS, the Vessel Owning Subsidiary is the registered owner of the Liberian flagged 50,072 DWT MR Tanker “AMOR” (the
“Vessel”). 
 WHEREAS, the Vessel is employed under a charter time charter dated December 18, 2015 by Cargill
International S.A., a corporation organized under the laws of Switzerland with its registered office at Chemin De-Normandie 14 1206 Geneva, Switzerland, as charterer (the “Charterer”), for a
duration of 24 months (with 30 days less or more, exact period in Charterer’s option) commencing in October 2015 (the “Initial Charter”). 

WHEREAS, the Vessel Owning Subsidiary has entered into a time charter dated October 20, 2016 with Product & Crude Tanker
Chartering Inc., a corporation organized under the laws of the Republic of the Marshall Islands with its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands and a wholly-owned subsidiary of the
Seller, as charterer, for a duration of two months commencing upon completion of the Initial Charter, at a rate of US$14,000 per day with a 50/50 profit sharing component above such daily rate (the “Second Charter” and, together
with the Initial Charter, the “Charter”). 
 WHEREAS, contemporaneously with the Closing (as defined below), the Buyer and
Capital Ship Management Corp. (“CSM”) will execute an amendment to the Floating Rate Management Agreement dated the 9th day of June 2011 and entered into between the Buyer and CSM
as same has been amended and/or supplemented from time to time (the “Amendment to the Management Agreement”). 

 NOW, THEREFORE, the parties hereto agree as follows: 

ARTICLE I 

Interpretation 
 SECTION
1.01. Definitions. In this Agreement, unless the context requires otherwise or unless otherwise specifically provided herein, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall
have corresponding meanings: 
 “Agreement” means this Agreement, including its recitals and schedules, as amended,
supplemented, restated or otherwise modified from time to time; 
 “Amendment to the Management Agreement” has the meaning
given to it in the recitals; 
 “Applicable Law” in respect of any Person, property, transaction or event, means all laws,
statutes, ordinances, regulations, municipal by-laws, treaties, judgments and decrees applicable to that Person, property, transaction or event and, whether or not having the force of law, all applicable
official directives, rules, consents, approvals, authorizations, guidelines, orders, codes of practice and policies of any Governmental Authority having or purporting to have authority over that Person, property, transaction or event and all general
principles of common law and equity; 
 “Buyer” has the meaning given to it in the preamble; 

“Buyer Entities” means the Buyer and its subsidiaries; 

“Buyer Indemnitees” has the meaning given to it in Section 9.01; 

“Charter” has the meaning given to it in the recitals; 

“Charterer” has the meaning given to it in the recitals; 

“Closing” has the meaning given to it in Section 2.02; 

“Closing Date” has the meaning given to it in Section 2.02; 

“Commitment” means (a) options, warrants, convertible securities, exchangeable securities, subscription rights,
conversion rights, exchange rights or other contracts that could require a Person to issue any of its equity interests or to sell any equity interests it owns in another Person (other than this Agreement and the related transaction documents); (b)
any other securities convertible into, exchangeable or exercisable for, or representing the right to subscribe for any equity interest of a Person or owned by a Person; and (c) stock appreciation rights, phantom stock, profit participation, or
other similar rights with respect to a Person; 
 “Common Units” has the meaning ascribed to such term in the Partnership
Agreement; 

  
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 “Contracts” has the meaning given to it in Section 5.08; 

“CSM” has the meaning given to it in the recitals; 

“Encumbrance” means any mortgage, lien, charge, assignment, adverse claim, hypothecation, restriction, option, covenant,
condition or encumbrance, whether fixed or floating, on, or any security interest in, any property whether real, personal or mixed, tangible or intangible, any pledge or hypothecation of any property, any deposit arrangement, priority, conditional
sale agreement, other title retention agreement or equipment trust, capital lease or other security arrangements of any kind; 

“Equity Interest” means (a) with respect to any entity, any and all shares of capital stock or other ownership interest
and any Commitments with respect thereto, (b) any other direct equity ownership or participation in a Person and (c) any Commitments with respect to the interests described in (a) or (b); 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time; 

“Governmental Authority” means any domestic or foreign government, including federal, provincial, state, municipal, county or
regional government or governmental or regulatory authority, domestic or foreign, and includes any department, commission, bureau, board, administrative agency or regulatory body of any of the foregoing and any multinational or supranational
organization; 
 “Initial Charter” has the meaning given to it in the recitals; 

“Loan Agreement” means that certain Loan Agreement, dated 19 November 2015, among the Vessel Owning Subsidiary, Helios
Product Carrier S.A., Hercules Product Carrier S.A., Iason Product Carrier S.A. and Archon Product Carrier S.A., as joint and several borrowers, the Banks and Financial Institutions listed on Schedule 1 thereto, ING Bank N.V., London Brach, as
Facility Agent and Security Trustee, and ING Bank N.V., as Swap Bank.  
 “Losses” means, with respect to any
matter, all losses, claims, damages, liabilities, deficiencies, costs, expenses (including all costs of investigation, legal and other professional fees and disbursements, interest, penalties and amounts paid in settlement) or diminution of value,
whether or not involving a claim from a third party, however specifically excluding consequential, special and indirect losses, loss of profit and loss of opportunity; 

“Notice” means any notice, citation, directive, order, claim, litigation, investigation, proceeding, judgment, letter or
other communication, written or oral, actual or threatened, from any Person; 
 “Organizational Documents” has the meaning
given to it in Section 5.03; 
 “Parties” means all parties to this Agreement and “Party” means any
one of them; 

  
 3 

 “Partnership Agreement” means the Second Amended and Restated Agreement of
Limited Partnership of the Buyer dated February 22, 2010, as amended from time to time. 
 “Person” means an
individual, entity or association, including any legal personal representative, corporation, body corporate, firm, partnership, trust, trustee, syndicate, joint venture, unincorporated organization or Governmental Authority; 

“Permits” has the meaning given to it in Section 5.13; 

“Purchase Price” has the meaning given to it in Section 2.04; 

“SEC Documents” means all filings the Buyer is required to make pursuant to the Securities Act and the Exchange Act, as
amended from time to time; 
 “Second Charter” has the meaning given to it in the recitals; 

“Securities Act” means the Securities Act of 1933, as amended from time to time; 

“Seller” has the meaning given to it in the preamble; 

“Seller Entities” means the Seller and its affiliates other than the Buyer Entities; 

“Seller Indemnities” has the meaning given to it in Section 9.02; 

“Shares” has the meaning given to it in the recitals; 

“Taxes” means all income, franchise, business, property, sales, use, goods and services or value added, withholding, excise,
alternate minimum capital, transfer, excise, customs, anti-dumping, stumpage, countervail, net worth, stamp, registration, franchise, payroll, employment, health, education, business, school, property, local improvement, development, education
development and occupation taxes, surtaxes, duties, levies, imposts, rates, fees, assessments, dues and charges and other taxes required to be reported upon or paid to any domestic or foreign jurisdiction and all interest and penalties thereon; 

“Transferred Common Units” has the meaning given to it in Section 2.04; 

“Vessel” has the meaning given to it in the recitals; and 

“Vessel Owning Subsidiary” has the meaning given to it in the recitals. 

ARTICLE II 
 Purchase
and Sale of Shares; Closing 
 SECTION 2.01. Purchase and Sale of Shares. The Seller agrees to sell and transfer to the Buyer,
and the Buyer agrees to purchase from the Seller for the Purchase Price and in accordance with and subject to the terms and conditions set forth in this Agreement, the Shares which in turn shall result in the Buyer indirectly owning the Vessel.

  
 4 

 SECTION 2.02. Closing. On the terms of this Agreement, the sale and transfer of the Shares
and payment of the Purchase Price shall take place on the date hereof (the “Closing Date”). The sale and transfer of the Shares is hereinafter referred to as the “Closing.” 

SECTION 2.03. Place of Closing. The Closing shall take place at the premises of CSM at 3 Iassonos Street, Piraeus, Greece. 

SECTION 2.04. Purchase Price for Shares. On the Closing Date, the Buyer shall pay to the Seller (to such account as the Seller shall
nominate) the amount of $16,000,000 US Dollars and shall issue to the Seller 283,696 Common Units (the “Transferred Common Units” and, together with such cash consideration, the “Purchase Price”). The Buyer
shall have no responsibility or liability hereunder for the Seller’s allocation and distribution of the Purchase Price among the Seller Entities. 

SECTION 2.05. Payment of the Purchase Price. The Purchase Price (i) (to the extent paid in US Dollars) will be paid by the Buyer to the
Seller of the Shares by wire transfer of immediately available funds to an account designated in writing by the Seller and (ii) (to the extent paid in Common Units) will be paid by the Buyer to the Seller of the Shares by delivery of certificates
representing the Transferred Common Units. 
 ARTICLE III 

Representations and Warranties of the Buyer 

The Buyer represents and warrants to the Seller that as of the date hereof: 

SECTION 3.01. Organization and Limited Partnership Authority. The Buyer is duly formed, validly existing and in good standing under the
laws of the Republic of the Marshall Islands, and has all requisite limited partnership power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by
the Buyer, has been effectively authorized by all necessary action, limited partnership or otherwise, and constitutes legal, valid and binding obligations of the Buyer. No meeting has been convened or resolution proposed or petition presented and no
order has been made to wind up the Buyer. 
 SECTION 3.02. Agreement Not in Breach of Other Instruments. The execution and delivery
of this Agreement, the consummation of the transactions contemplated hereby and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, or conflict with, any agreement or
other instrument to which the Buyer is a party or by which it is bound, the Certificate of Formation and the Partnership Agreement, any judgment, decree, order or award of any court, governmental body or arbitrator by which the Buyer is bound, or
any law, rule or regulation applicable to the Buyer which would have a material effect on the transactions contemplated hereby. 
 SECTION
3.03. No Legal Bar. The Buyer is not prohibited by any order, writ, injunction or decree of any body of competent jurisdiction from consummating the transactions contemplated by this Agreement and no such action or proceeding is pending or,
to the best of its 

  
 5 

 
knowledge and belief, threatened against the Buyer which questions the validity of this Agreement, any of the transactions contemplated hereby or any action which has been taken by any of the
parties in connection herewith or in connection with any of the transactions contemplated hereby. 
 SECTION 3.04. Issuance of
Transferred Common Units. The Transferred Common Units have been duly authorized and validly issued and are fully paid and non-assessable. The Transferred Common Units shall have been approved for listing
on Nasdaq Global Select Market. 
 SECTION 3.05. The Transferred Common Units. Assuming the Seller has the requisite power and
authority to be the lawful owner of the Transferred Common Units, upon delivery to the Seller at the Closing of certificates representing the Transferred Common Units, or delivery of such Transferred Common Units by electronic means, and upon the
consummation of the purchase contemplated hereby, the Seller shall own good and valid title to the Transferred Common Units, free and clear of any Encumbrances, other than those arising from acts of the Seller Entities. Other than those created by
or described in this Agreement and the related transaction documents, the Buyer’s organizational documents, restrictions imposed by Applicable Law or as disclosed in the SEC Documents, at the Closing, the Transferred Common Units will not be
subject to any voting trust agreement or other contract, agreement, arrangement, commitment or understanding restricting or otherwise relating to the voting, dividend rights or disposition of the Transferred Common Units other than any agreement to
which any Seller Entity is a party. 
 SECTION 3.06. Securities Act. The Shares purchased by the Buyer pursuant to this Agreement are
being acquired for investment purposes only and not with a view to any public distribution thereof, and the Buyer shall not offer to sell or otherwise dispose of the Shares so acquired by it in violation of any of the registration requirements of
the Securities Act. The Buyer acknowledges that it is able to fend for itself, can bear the economic risk of its investment in the Shares, and has such knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of an investment in all of the Shares. The Buyer is an “accredited investor” as such term is defined in Regulation D under the Securities Act. The Buyer understands that, when issued to the Buyer at the Closing, none of
the Shares will be registered pursuant to the Securities Act and that all of the Shares will constitute “restricted securities” under the federal securities laws of the United States. 

SECTION 3.07. Private Offering. None of the Buyer, its affiliates and its representatives has issued, sold or offered any security of
the Buyer to any person under circumstances that would cause the issuance and delivery of the Transferred Common Units as contemplated by this Agreement to be subject to the registration requirements of the Securities Act. None of the Buyer, its
affiliates and its representatives will offer the Transferred Common Units or any part thereof or any similar securities for issuance or sale to, or solicit any offer to acquire any of the same from, any person so as to make the issuance and sale of
the Transferred Common Units subject to the registration requirements of the Securities Act. Assuming the representations of the Seller contained in Section 4.06 are true and correct, the issuance and delivery of the Transferred Common Units on
or prior to the Closing Date will be exempt from the registration and prospectus delivery requirements of the Securities Act. 

  
 6 

 SECTION 3.08. Independent Investigation. The Buyer has had the opportunity to conduct to
its own satisfaction independent investigation, review and analysis of the business, operations, assets, liabilities, results of operations, financial condition and prospects of the Vessel Owning Subsidiary and, in making the determination to
proceed with the transactions contemplated hereby, has relied solely on the results of its own independent investigation and the representations and warranties set forth in Articles IV, V and VI. 

ARTICLE IV 

Representations and Warranties of the Seller 

The Seller represents and warrants to the Buyer that as of the date hereof: 

SECTION 4.01. Organization and Corporate Authority. The Seller is duly incorporated, validly existing and in good standing under the
laws of the Republic of the Marshall Islands, and has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Seller,
has been effectively authorized by all necessary action, corporate or otherwise, and constitutes legal, valid and binding obligations of the Seller. No meeting has been convened or resolution proposed or petition presented and no order has been made
to wind up the Seller. 
 SECTION 4.02. Agreement Not in Breach. The execution and delivery of this Agreement, the consummation of
the transactions contemplated hereby and the fulfillment of the terms hereof will not result in a breach of any of the terms or provisions of, or constitute a default under, or conflict with, any agreement or other instrument to which the Seller is
a party or by which it is bound, the Articles of Incorporation and Bylaws of the Seller, any judgment, decree, order or award of any court, governmental body or arbitrator by which the Seller is bound, or any law, rule or regulation applicable to
the Seller. 
 SECTION 4.03. No Legal Bar. The Seller is not prohibited by any order, writ, injunction or decree of any body of
competent jurisdiction from consummating the transactions contemplated by this Agreement and no such action or proceeding is pending or, to the best of its knowledge and belief, threatened against the Seller which questions the validity of this
Agreement, any of the transactions contemplated hereby or any action which has been taken by any of the parties in connection herewith or in connection with any of the transactions contemplated hereby. 

SECTION 4.04. Good and Marketable Title to Shares. The Seller is the owner (of record and beneficially) of all of the Shares and has
good and marketable title to the Shares, free and clear of any and all Encumbrances other than under the Loan Agreement. The Shares constitute 100% of the issued and outstanding Equity Interests of the Vessel Owning Subsidiary. 

SECTION 4.05. The Shares. Assuming the Buyer has the requisite power and authority to be the lawful owner of the Shares, upon delivery
to the Buyer at the Closing of certificates representing the Shares, duly endorsed by the Seller for transfer to the Buyer or accompanied by appropriate instruments sufficient to evidence the transfer from the Seller to the

  
 7 

 
Buyer of the Shares under the Applicable Laws of the relevant jurisdiction, or delivery of such Shares by electronic means, and upon the Seller’s receipt of the Purchase Price, the Buyer
shall own good and valid title to the Shares, free and clear of any Encumbrances, other than those arising from acts of the Buyer Entities or arising under the Loan Agreement. Other than this Agreement and any related transaction documents, the
Organizational Documents and restrictions imposed by Applicable Law, at the Closing, the Shares will not be subject to any voting trust agreement or other contract, agreement, arrangement, commitment or understanding restricting or otherwise
relating to the voting, dividend rights or disposition of the Shares, other than any agreement to which any Buyer Entity is a party. 

SECTION 4.06. Securities Act. The Transferred Common Units transferred to the Seller pursuant to this Agreement are being acquired for
investment purposes only and not with a view to any public distribution thereof, and the Seller shall not offer to sell or otherwise dispose of the Transferred Common Units so acquired by it in violation of any of the registration requirements of
the Securities Act. The Seller acknowledges that it is able to fend for itself, can bear the economic risk of its investment in the Transferred Common Units, and has such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of an investment in all of the Transferred Common Units. The Seller is an “accredited investor” as such term is defined in Regulation D under the Securities Act. The Seller understands that, when issued
to the Seller at the Closing, none of the Transferred Common Units will be registered pursuant to the Securities Act and that all of the Transferred Common Units will constitute “restricted securities” under the federal securities laws of
the United States. 
 SECTION 4.07. Independent Investigation. The Seller has had the opportunity to conduct to its own satisfaction
independent investigation, review and analysis of the business, operations, assets, liabilities, results of operations, financial condition and prospects of the Buyer and, in making the determination to proceed with the transactions contemplated
hereby, has relied solely on the results of its own independent investigation and the representations and warranties set forth in Article III. 

ARTICLE V 
 Representations and
Warranties of 
 the Seller Regarding the Vessel Owning Subsidiary 

The Seller represents and warrants to the Buyer that as of the date hereof: 

SECTION 5.01. Organization Good Standing and Authority. The Vessel Owning Subsidiary is a corporation duly incorporated, validly
existing and in good standing under the laws of Liberia. The Vessel Owning Subsidiary has full corporate power and authority to carry on its business as it is now, and has since its incorporation been, conducted, and is entitled to own, lease or
operate the properties and assets it now owns, leases or operates and to enter into legal and binding contracts. No meeting has been convened or resolution proposed or petition presented and no order has been made to wind up the Vessel Owning
Subsidiary. 

  
 8 

 SECTION 5.02. Capitalization; Title to Shares. The Shares consist of the 100 shares of
capital stock without par value and have been duly authorized and validly issued and are fully paid and non-assessable, and constitute the total issued and outstanding Equity Interests of the Vessel Owning
Subsidiary. There are not outstanding (i) any options, warrants or other rights to purchase from the Vessel Owning Subsidiary any equity interests of the Vessel Owning Subsidiary, (ii) any securities convertible into or exchangeable for
shares of such equity interests of the Vessel Owning Subsidiary or (iii) any other commitments of any kind for the issuance of additional shares of equity interests or options, warrants or other securities of the Vessel Owning Subsidiary. 

SECTION 5.03. Organizational Documents. The Seller has supplied to the Buyer true and correct copies of the organizational documents of
the Vessel Owning Subsidiary, as in effect as of the date hereof (the “Organizational Documents”). 
 SECTION 5.04.
Agreement Not in Breach. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will violate, or result in a breach of, any of the terms and provisions of, or constitute a default
under, or conflict with, or give any other party thereto a right to terminate any agreement or other instrument to which the Vessel Owning Subsidiary is a party or by which it is bound including, without limitation, any of the Organizational
Documents, or any judgment, decree, order or award of any court, governmental body or arbitrator applicable to the Vessel Owning Subsidiary. 

SECTION 5.05. Litigation. 

(a) There is no action, suit or proceeding to which the Vessel Owning Subsidiary is a party (either as a plaintiff or defendant) pending
before any court or governmental agency, authority or body or arbitrator; there is no action, suit or proceeding threatened against the Vessel Owning Subsidiary; and, to the best knowledge of the Seller, there is no basis for any such action, suit
or proceeding; 
 (b) The Vessel Owning Subsidiary has not been permanently or temporarily enjoined by any order, judgment or decree of any
court or any governmental agency, authority or body from engaging in or continuing any conduct or practice in connection with the business, assets, or properties of the Vessel Owning Subsidiary; and 

(c) There is not in existence any order, judgment or decree of any court or other tribunal or other agency enjoining or requiring the Vessel
Owning Subsidiary to take any action of any kind with respect to its business, assets or properties. 
 SECTION 5.06. Indebtedness to and
from Officers, etc. The Vessel Owning Subsidiary will not be indebted, directly or indirectly, to any person who is an officer, director, stockholder or employee of the Seller or any spouse, child, or other relative or any affiliate of
any such person, nor shall any such officer, director, stockholder, employee, relative or affiliate be indebted to the Vessel Owning Subsidiary. 

SECTION 5.07. Personnel. The Vessel Owning Subsidiary has no employees. 

  
 9 

 SECTION 5.08. Contracts and Agreements. Other than the Charter, the Amendment to the
Management Agreement and the Loan Agreement (together, the “Contracts”), there are no material contracts or agreements, written or oral, to which the Vessel Owning Subsidiary is a party or by which any of its assets are bound. 

(a) Each of the Contracts is (or, in the case of the Amendment to the Management Agreement, will be at Closing) a valid and binding agreement
of the Vessel Owning Subsidiary, and to the best knowledge of the Seller, of all other parties thereto; 
 (b) The Vessel Owning Subsidiary
has fulfilled all material obligations required pursuant to its Contracts to have been performed by it prior to the date hereof and has not waived any material rights thereunder, including payment in full of the purchase price for the Vessel,
together with any other payments of the Vessel Owning Subsidiary due thereunder; 
 (c) The Vessel Owning Subsidiary and the Buyer Loan
Parties (as defined below) have no obligations with respect to, or any liability for any breach or default of the Loan Agreement by, any of the other borrowers or other party under the Loan Agreement (other than with respect to obligations, breaches
or defaults of the Buyer or any such borrowers that are wholly owned subsidiaries of the Buyer (collectively, “Buyer Loan Parties”)) (“Third Party Loan Agreement Breaches”); no Third Party Loan Agreement Breaches
shall result in a breach or default of the Loan Agreement by the Vessel Owning Subsidiary or the Buyer Loan Parties, result in any payment obligation of the Vessel Owning Subsidiary or the Buyer Loan Parties under the Loan Agreement, or otherwise
affect the rights and obligations of the Vessel Owning Subsidiary or the Buyer Loan Parties under the Loan Agreement; and the Vessel Owning Subsidiary and the Buyer Loan Parties are not jointly liable for any obligations under the Loan Agreement
other than in respect of the Vessel Owning Subsidiary or the Buyer Loan Parties. 
 (d) There has not occurred any material default under
any of the Contracts on the part of the Vessel Owning Subsidiary, or to the best knowledge of the Seller, on the part of any other party thereto nor has any event occurred which with the giving of notice or the lapse of time, or both, would
constitute any material default on the part of the Vessel Owning Subsidiary under any of the Contracts nor, to the best knowledge of the Seller, has any event occurred which with the giving of notice or the lapse of time, or both, would constitute
any material default on the part of any other party to any of the Contracts. 
 SECTION 5.09. Compliance with Law. The conduct of
business by the Vessel Owning Subsidiary does not and the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate any laws, statutes, ordinances, rules, regulations, decrees, orders,
permits or other similar items in force (including, but not limited to, any of the foregoing relating to employment discrimination, environmental protection or conservation) of any country, province, state or other governing body, the enforcement of
which would materially and adversely affect the business, assets, condition (financial or otherwise) or prospects of the Vessel Owning Subsidiary taken as a whole, nor has the Vessel Owning Subsidiary received any notice of any such violation. 

SECTION 5.10. No Undisclosed Liabilities. The Vessel Owning Subsidiary (or the Vessel owned by it) has no liabilities or obligations of
any nature, whether absolute, accrued, 

  
 10 

 
contingent or otherwise, and whether due or to become due (including, without limitation, any liability for Taxes and interest, penalties and other charges payable with respect to any such
liability or obligation, including under the Loan Agreement), other than under the Loan Agreement solely with respect to the approximately $15,750,000 aggregate principal amount borrowed and outstanding thereunder to fund the purchase of the Vessel,
plus accrued interest thereon, if any, from the last payment date. Notwithstanding the foregoing, the Parties acknowledge and agree that there may be obligations under the Contracts that are not due and payable as of the date hereof and that will be
the responsibility of the Seller pursuant to Section 9.01(c) of this Agreement. 
 SECTION 5.11. Disclosure of Information. The
Seller has disclosed to the Buyer all material information on, and about, the Vessel Owning Subsidiary and the Vessel and all such information is true, accurate and not misleading in any material respect. Nothing has been withheld from the material
provided to the Buyer which would render such information untrue or misleading. 
 SECTION 5.12. Payment of Taxes. The Vessel Owning
Subsidiary has filed all foreign, federal, state and local income and franchise tax returns required to be filed, which returns are correct and complete in all material respects, and has timely paid all taxes due from it, and the Vessel is in good
standing with respect to the payment of past and current Taxes, fees and other amounts payable under the laws of the jurisdiction where it is registered as would affect its registry with the ship registry of such jurisdiction. 

SECTION 5.13. Permits. The Vessel Owning Subsidiary has such permits, consents, licenses, franchises, concessions, certificates and
authorizations (“Permits”) of, and has all declarations and filings with, and is qualified and in good standing in each jurisdiction of, all federal, provincial, state, local or foreign Governmental Authorities and other Persons, as
are necessary to own or lease its properties and to conduct its business in the manner that is standard and customary for a business of its nature other than such Permits the absence of which, individually or in the aggregate, has not and could not
reasonably be expected to materially or adversely affect the Vessel Owning Subsidiary. The Vessel Owning Subsidiary has fulfilled and performed all its obligations with respect to such Permits which are or will be due to have been fulfilled and
performed by such date and no event has occurred that would prevent the Permits from being renewed or reissued or that allows, or after notice or lapse of time would allow, revocation or termination thereof or results or would result in any
impairment of the rights of the holder of any such Permit, except for such non-renewals, non-issues, revocations, terminations and impairments that would not,
individually or in the aggregate, materially or adversely affect the Vessel Owning Subsidiary, and none of such Permits contains any restriction that is materially burdensome to the Vessel Owning Subsidiary. 

SECTION 5.14. No Material Adverse Change in Business. Since December 31, 2014, there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, properties, business affairs or business prospects of the Vessel Owning Subsidiary, whether or not arising in the ordinary course of business, that would have or could reasonably be expected to
have a material adverse effect on the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Vessel Owning Subsidiary. 

  
 11 

 ARTICLE VI 

Representations and Warranties of 

the Seller regarding the Vessel 

The Seller represents and warrants to the Buyer that as of the date hereof 

SECTION 6.01. Title to Vessel. The Vessel Owning Subsidiary is the owner (beneficially and of record) of the Vessel and has good and
marketable title to the Vessel. 
 SECTION 6.02. No Encumbrances. The assets of the Vessel Owning Subsidiary and the Vessel are free
of all Encumbrances other than the Encumbrances arising under the Charter or the Loan Agreement. 
 SECTION 6.03. Condition. The
Vessel is (i) adequate and suitable for use by the Vessel Owning Subsidiary in the manner that is standard and customary for a vessel of its type, ordinary wear and tear excepted; (ii) seaworthy in all material respects for hull and
machinery insurance warranty purposes and in good running order and repair; (iii) insured against all risks, and in amounts, consistent with common industry practices; (iv) in compliance with maritime laws and regulations; and (v) in
compliance in all material respects with the requirements of its class and classification society; and all class certificates of the Vessel are clean and valid and free of recommendations affecting class; and the Buyer acknowledges and agrees that,
subject only to the representations and warranties in this Agreement, it is acquiring the Vessel on an “as is, where is” basis. 

ARTICLE VII 
 Covenants

 SECTION 7.01. Financial Statements. The Seller agrees to cause the Vessel Owning Subsidiary to provide access to the books and
records of the Vessel Owning Subsidiary to allow the Buyer’s outside auditing firm to prepare at the Buyer’s expense any information, review or audit the Buyer reasonably believes is required to be furnished or provided by the Buyer
pursuant to applicable securities laws. The Seller will (A) direct its auditors to provide the Buyer’s auditors access to the auditors’ work papers and (B) use its commercially reasonable efforts to assist the Buyer with any such
information, review or audit and to provide other financial information reasonably requested by the Buyer or its auditors, including the delivery by the Seller Entities of any information, letters and similar documentation, including reasonable
“management representation letters” and attestations. 
 SECTION 7.02. Expenses. All costs, fees and expenses incurred in
connection with this Agreement and the related transaction documents shall be paid by the Buyer, including all costs, fees and expenses incurred in connection with conveyance fees, recording charges and other fees and charges applicable to the
transfer of the Shares. For the avoidance of doubt, all costs and expenses incurred by the Buyer to load the Vessel with fuel oil, lubricating oil, greases, fresh water and other stores necessary to operate the Vessel after the Closing as well as in
connection with the delivery of the Vessel to the delivery port (ballast) shall be for the Buyer’s account. 

  
 12 

 SECTION 7.03. Subsequent Share Purchase Agreements. Seller agrees to negotiate in good
faith mutually agreeable terms (including a “market” based price) upon which the Parties potentially could agree to execute (i) a purchase agreement pursuant to which Seller would sell (directly or indirectly) to Buyer (on or shortly
after completion) the Aristaios, a 115,000 DWT Aframax tanker currently being constructed and expected to be delivered in November/December 2016 and (ii) a purchase agreement pursuant to which Seller would sell (directly or indirectly) to Buyer
(on or shortly after completion) the Aristoklis, a 115,000 DWT Aframax tanker currently being constructed and expected to be delivered in January 2017. Other than the obligation to negotiate in good faith, this Section does not create any
obligations on either Party with respect to the Aristaios or Aristoklis, and neither Party would have any additional obligations unless and until each Party (in its sole discretion) is satisfied with the terms of any applicable definitive agreements
and has obtained any necessary or desirable approvals, including, without limitation, approvals of any management group, board of directors or similar authority and the Conflicts Committee of Buyer, which approvals or rejections would be within the
sole discretion of each applicable individual, entity or authority. 
 ARTICLE VIII 

Amendments and Waivers 

SECTION 8.01. Amendments and Waivers. This Agreement may not be amended except by an instrument in writing signed on behalf of each
parties hereto. By an instrument in writing the Buyer, on the one hand, or the Seller, on the other hand, may waive compliance by the other with any term or provision of this Agreement that such other party was or is obligated to comply with or
perform. 
 ARTICLE IX 

Indemnification 
 SECTION
9.01. Indemnity by the Seller. The Seller shall be liable for, and shall indemnify the Buyer and each of its subsidiaries and each of their directors, employees, agents and representatives (the “Buyer Indemnitees”) against
and hold them harmless from, any Losses, suffered or incurred by such Buyer Indemnitee: 
 (a) by reason of, arising out of
or otherwise in respect of any inaccuracy in, or breach of, any representation or warranty (without giving effect to any supplement to the schedules or qualifications as to materiality or dollar amount or other similar qualifications), or a failure
to perform or observe any covenant, agreement or obligation of, the Seller in or under this Agreement or in or under any document, instrument or agreement delivered pursuant to this Agreement by the Seller; 

(b) any fees, expenses or other payments incurred or owed by the Seller or the Vessel Owning Subsidiary to any brokers,
financial advisors or comparable other persons retained or employed by it in connection with the transactions contemplated by this Agreement; or 

(c) by reason of, arising out of or otherwise in respect of (i) Third Party Loan Agreement Breaches or
(ii) obligations, liabilities, expenses, cost and claims relating to, arising from or otherwise attributable to (x) the Loan Agreement (other than those attributable to the Buyer Loan Parties, excluding any resulting from joint liability
(or similar concepts) thereunder), including with respect to any amounts borrowed or otherwise owing thereunder other than the aggregate principal amount specified in Section 5.10) or (y) assets owned by the Vessel Owning Subsidiary or the
assets, operations, and obligations of the Vessel Owning Subsidiary or the businesses thereof, in each case under clause (y), to the extent relating to, arising from, or otherwise attributable to facts, circumstances or events occurring prior to the
Closing Date. 

  
 13 

 SECTION 9.02. Indemnity by the Buyer. The Buyer shall indemnify the Seller and its
subsidiaries other than any Buyer Indemnitees and each of their respective officers, directors, employees, agents and representatives (the “Seller Indemnitees”) against and hold them harmless from, any Losses, suffered or incurred
by such Seller Indemnitee by reason of, arising out of or otherwise in respect of any inaccuracy in, or breach of, any representation or warranty (without giving effect to any supplement to the schedules occurring after the date hereof or
qualifications as to materiality or dollar amount or other similar qualifications), or a failure to perform or observe any covenant, agreement or obligation of, the Buyer in or under this Agreement or in or under any document, instrument or
agreement delivered pursuant to this Agreement by the Buyer. 
 SECTION 9.03. Exclusive Post-Closing Remedy. After the Closing, and
except for any non-monetary, equitable relief to which any Party may be entitled, or any remedies for willful misconduct or actual fraud, the rights and remedies set forth in this Article IX shall constitute
the sole and exclusive rights and remedies of the Parties under or with respect to the subject matter of this Agreement. 
 ARTICLE X

 Miscellaneous 

SECTION 10.01. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York
applicable to contracts made and to be performed wholly within such jurisdiction without giving effect to conflict of law principles thereof other than Section 5-1401 of the New York General Obligations
Law, except to the extent that it is mandatory that the law of some other jurisdiction, wherein the Vessel is located, shall apply. 

SECTION 10.02. Counterparts. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed
an original, but all of which shall constitute but one and the same instrument. 

  
 14 

 SECTION 10.03. Complete Agreement. This Agreement and Schedules hereto contain the entire
agreement between the parties hereto with respect to the transactions contemplated herein and, except as provided herein, supersede all previous oral and written and all contemporaneous oral negotiations, commitments, writings and understandings.

 SECTION 10.04. Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in
any way the meaning or interpretation of this Agreement. 
 SECTION 10.05. Severability. If any of the provisions of this Agreement
are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any governmental body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement.
Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid, and an equitable adjustment shall be made and necessary provision added so as to give effect, as nearly as possible, to
the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement. 
 SECTION 10.06. Third Party
Rights. Except to the extent provided in Article X, a Person who is not a party to this Agreement has no right to enforce or to enjoy the benefit of any term of this Agreement. 

SECTION 10.07. Notices. Any notice, claim or demand in connection with this Agreement shall be delivered to the parties at the
following addresses (or at such other address or facsimile number for a party as may be designated by notice by such party to the other party): 

(a) if to Capital Maritime & Trading Corp., as follows: 

c/o Capital Ship Management Corp., 

3 Iassonos Street, Piraeus, Greece 

Attention: Gerassimos Kalogiratos 

Facsimile: +30 210 428 4286 

(b) if to Capital Product Partners L.P., as follows: 

c/o Capital Ship Management Corp., 

3 Iassonos Street, Piraeus, Greece 

Attention: CEO/CFO 
 Facsimile:
+30 210 428 4285 
 and any such notice shall be deemed to have been received (i) on the next working day in the place to which it is sent, if sent by
facsimile or (ii) forty eight (48) hours from the time of dispatch, if sent by courier. 
 SECTION 10.08. Representations and
Warranties to Survive. All representations and warranties of the Buyer and Seller contained in this Agreement shall survive the Closing and shall remain operative and in full force and effect after the Closing, regardless of (a) any
investigation made by or on behalf of any Party or its affiliates, any Person controlling any Party, its officers or directors, and (b) delivery of and payment for the Shares. 

  
 15 

 SECTION 10.09. Remedies. Except as expressly provided in Section 9.03, the rights,
obligations and remedies created by this Agreement are cumulative and in addition to any other rights, obligations or remedies otherwise available at law or in equity. Except as expressly provided in this Agreement, nothing in this Agreement will be
considered an election of remedies. 
 SECTION 10.10. Non-recourse to General Partner.
Neither the Buyer’s general partner nor any other owner of Equity Interests in the Buyer shall be liable for the obligations of the Buyer under this Agreement or any of the related transaction documents, including, in each case, by reason of
any payment obligation imposed by governing partnership statutes. 
 IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be signed as of the date first above written. 

  
 16 

 
									
	CAPITAL MARITIME & TRADING CORP.,
			
		 	by	 	 /s/ Gerasimos Kalogiratos

		 		 	Name:	 	Gerasimos Kalogiratos
		 		 	Title:	 	Chief Financial Officer
	
	CAPITAL PRODUCT PARTNERS L.P.
		
		 	by Capital GP L.L.C., its general partner
				
		 		 	by	 	 /s/ Gerasimos Kalogiratos

		 		 		 	Name:	 	Gerasimos Kalogiratos
		 		 		 	Title:	 	Chief Executive Officer and Chief Financial Officer of Capital GP, L.L.C.crvl-ex101_434.htm

Exhibit 10.1

 

	

Notice of Grant of Stock Options

and Option Agreement
	
 
	
CorVel Corporation

ID: 33-0282651

2010 Main Street Suite 600

Irvine, California 92614

 

	
 
	
 
	
 

	
Michael G. Combs
	
 
	
 

	
 
	
 
	
 

	
ID:
	
 
	
 

Effective 11/3/2016, you have been granted a(n) Non-Qualified Stock Option to buy 20,000.0000 shares of CORVEL CORPORATION (the Company) stock at $32.1000 per share.

The total option price of the shares granted is $642,000.00.

Shares in each period will become fully vested on the date shown.

 

	
 
	
 
	
 
	
 
	
 

	
Non-Qualified Stock Option Grant No.
	
 
	
 
	
006417
	
  

	
Date of Grant
	
 
	
 
	
11/3/2016
	
  

	
Stock Option Plan
	
 
	
 
	
1988
	
  

	
Option Price Per Share
	
 
	
$
	
32.10
	
  

	
Total Number of Shares Granted
	
 
	
 
	
20,000.00
	
  

	
Total Price of Shares Granted
	
 
	
$
	
642,000.00
	
  

	
Expiration Date
	
 
	
 
	
11/3/2021
	
  

Provided you continue to be a Service Provider (as defined in the Stock Option Agreement attached hereto as Exhibit A) throughout the specified period, this option will vest based on the achievement of certain performance criteria relating to the Company’s earnings per share (“EPS”) growth.  The specific EPS Targets for calendar years 2017, 2018, and 2019, are listed on Schedule A of the Stock Option Agreement. 

Optionee hereby agrees that the option is granted pursuant to and in accordance with the express terms and conditions of the Stock Option Agreement and the Corporation’s Restated Omnibus Incentive Plan. 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
    
	
 
	
 
	
 
	
November 18, 2016

	
CorVel Corporation
	
 
	
 
	
 
	
Date

	
 
	
 
	
 

	
 

 
	
 
	
 
	
 
	
 

 

	
Michael G. Combs
	
 
	
 
	
 
	
Date

	
 
	
 
	
 

	
 

 
	
 
	
 
	
 
	
 

 

	
Spouse
	
 
	
 
	
 
	
Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 16 Insiders Discretionary Option Grant Program 

CorVel Corporation 

Stock Option Agreement 

A. The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board (or the board of directors of any Parent or Subsidiary) and consultants and advisors who provide services to the Company (or any Parent or Subsidiary). 

B. Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 

C. All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 

Now, therefore, it is hereby agreed as follows: 

1. Grant of Option. Subject to and upon the terms and conditions set forth in this Agreement, Optionee is hereby granted, as of the Grant Date, an option to purchase the Option Shares. The Option Shares shall be purchasable from time to time during the option term at the Exercise Price. 

2. Option Term. This option shall expire at the close of business on the Expiration Date, unless sooner terminated in accordance with this Agreement. 

3. Limited Transferability. 

(a) During Optionee’s lifetime, this option shall be exercisable only by Optionee and shall not be assignable or transferable other than by will, by the laws of descent and distribution following the Optionee’s death, or to any “Family Member” (as such term is defined in the General Instructions to Form S-8 (or any successor to such Instructions or such Form) under the Securities Act), provided that Optionee may not receive any consideration for such transfer, the Family Member may not make any subsequent transfers other than by will or by the laws of descent and distribution and the Company receives written notice of such transfer. This assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Company may deem appropriate. 

(b) Should Optionee die while holding this option, then this option shall be transferred in accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 

4. Exercisability. This option shall become exercisable in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term. 

5. Effect of Cessation of Service. 

(a) Should Optionee cease to be a Service Provider for any reason (other than death, Permanent Disability or Misconduct) while this option is outstanding, then this option shall remain exercisable until the earlier of (i) the expiration of the three month period commencing with the date of such cessation of Service Provider status or (ii) the Expiration Date. 

(b) Should Optionee cease to be a Service Provider by reason of Permanent Disability or death while this option is outstanding, then the option shall remain exercisable until the earlier of (i) the expiration of the twelve month period commencing with the date of such cessation of Service Provider status or (ii) the Expiration Date. 

(c) Should Optionee cease to be a Service Provider due to termination for Misconduct, then this option shall terminate immediately. 

(d) During the limited period of post-service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which the option is exercisable at the time Optionee ceased to be a Service Provider. This option shall, immediately when Optionee ceases to be a Service Provider for any reason, terminate with respect to any Option Shares for which this option is not otherwise at that time exercisable. Upon the expiration of the limited post-service exercise period or (if earlier) upon the Expiration Date, this option shall terminate entirely. 

6. Effect of Corporate Transaction. 

(a) This option, to the extent outstanding at the time of a Corporate Transaction but not otherwise fully exercisable, shall automatically accelerate so that this option shall, immediately prior to the effective date of such Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option. However, this option shall not become exercisable on such an accelerated basis, if and to the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the successor corporation (or parent thereof) or to be replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing at the time of the Corporate Transaction on any Option Shares for which this option is not otherwise at that time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent payout in accordance with the same exercise schedule for those Option Shares set forth in the Grant Notice. 

(b) Upon the consummation of the Corporate Transaction, this option shall terminate, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 

(c) If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have been issuable to Optionee as a result of the consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. 

(d) This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

7. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, exchange of shares, reorganization, merger, consolidation, split-up, spin-off, or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (a) the total number and/or class of securities subject to this option and (b) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 

8. Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person shall have exercised the option in accordance with the provisions of Paragraph 9, paid the Exercise Price and become a holder of record of the purchased shares. 

9. Manner of Exercising Option. 

(a) In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 

(i) Execute and deliver to the Company (A) a Notice of Exercise, in substantially the form attached hereto as Exhibit I, that specifies the number of Option Shares for which the option is being exercised and (B) any additional documents which the Committee may, in its discretion, deem advisable. 

(ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms: 

(A) cash or check payable to the Company’s order; 

(B) shares of Common Stock held by Optionee for the requisite period necessary to avoid a charge to the Company’s reported earnings and valued at Fair Market Value on the Exercise Date; or 

(C) through a special sale and remittance procedure pursuant to which Optionee is to provide irrevocable written instructions (1) to a brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, an amount sufficient to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal and state income and employment taxes required to be withheld by the Company by reason of such purchase and (2) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction. 

(iii) Furnish to the Company appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

(iv) Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state and local income and employment tax withholding requirements applicable to the option exercise. 

(b) If payment of the exercise price is made by means of the surrender of shares of Common Stock which are subject to certain restrictions, the number of shares of Common Stock issued upon the exercise of the option equal to the number of shares of restricted stock surrendered shall be subject to the same restrictions as the restricted stock that was surrendered. 

(c) Except to the extent the sale and remittance procedure specified in Paragraph 9(a)(ii)(C) is utilized in connection with the option exercise, payment of the option price for the purchased shares must accompany the Notice of Exercise. 

(d) Assuming Optionee does not sell the purchased shares of Common Stock on the Exercise Date, as soon as practical after the Exercise Date, the Company shall either (i) issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto, or (ii) instruct the Company’s transfer agent to make a book-entry reflecting the purchase on its stockholder ledger. 

(e) In no event may this option be exercised for any fractional shares. 

10. Tax Withholding. The Committee may, in its discretion and upon such terms and conditions as it may deem appropriate (including the applicable safe-harbor provisions of Securities and Exchange Commission Rule 16b-3 or any successor rule or regulation) provide Optionee (if Optionee is an Employee) with the election to surrender previously acquired shares of Common Stock or have shares withheld in satisfaction of the tax withholding obligations. To the extent necessary to avoid adverse accounting treatment, the number of shares that may be withheld for this purpose shall not exceed the minimum number needed to satisfy the applicable income and employment tax withholding rules. If Common Stock is used to satisfy the Company’s tax withholding obligations, the shares of Common Stock shall have been held by Optionee for the requisite period necessary to avoid a charge to the Company’s reported earnings and shall be valued at their Fair Market Value when the tax withholding is required to be made. 

11. Compliance with Laws and Regulations. 

(a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange (or the Nasdaq Stock Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance. 

(b) The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use reasonable efforts to obtain all such approvals. 

12. Successors and Assigns. Except to the extent otherwise provided in this Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option designated by Optionee. 

13. Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or three days after deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

14. Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall prevail. All decisions of the Committee with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 

15. Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to its conflict-of-laws rules. 

16. No Employment/Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue to be a Service Provider of the Company (or any Parent or Subsidiary) for any period of specific duration or otherwise interfere with or restrict in any way the rights of the Company (or such Parent or Subsidiary) or Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service Provider status at any time and for any reason whatsoever, with or without cause. 

 

 

EXHIBIT I 

NOTICE OF EXERCISE OF STOCK OPTION 

I hereby notify CorVel Corporation (the “Company”) that I,                     , elect to purchase             shares of Common Stock of the Corporation (the “Purchased Shares”) at an option price of $             per share (the “Option Price”) pursuant to the option (the “Option”) granted to me on             . 

My option was granted as a non-qualified stock option. I will need to report taxable income at the time I exercise this Option and pay the corresponding withholding tax (the “Withholding Tax”) to the Corporation. The Withholding Tax is computed on the difference between the Option Price and the Fair Market Value of the stock on the date I exercise the Option. 

Concurrently with the delivery of the Exercise Notice to the Chief Financial Officer of the Corporation, I shall hereby pay to the Corporation the Option Price and Withholding Tax for the Purchased Shares in accordance with the provisions of my agreement with the Corporation evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a condition for exercise. 

 

	
 
	
 
	
 
	
 
	
 

	
Date
	
 
	
 
	
  
	
Optionee’s Signature

	
 
	
 
	
 

	
If applicable, print name in exact manner it is to appear on the stock certificate:
	
 
	
 
	
  
	
 

	
 
	
 
	
 

	
Optionee’s Mailing Address:
	
 
	
 
	
  
	
 

	
 
	
 
	
 
	
  
	
 

	
 
	
 
	
 

	
Address to which certificate is to be sent, if different from address above:
	
 
	
 
	
  
	
 

	
 
	
 
	
 
	
  
	
 

	
 
	
 
	
 

	
Brokerage Account Information
	
 
	
 
	
  
	
 

	
(Broker Name, Contact Info., Account #)
	
 
	
 
	
  
	
 

	
 
	
 
	
 
	
  
	
 

 

APPENDIX 

The following definitions shall be in effect under this Agreement: 

A. Agreement shall mean this Stock Option Agreement. 

B. Board shall mean the Board of Directors of the Company. 

C. Common Stock shall mean shares of the Company’s common stock, $0.0001 par value. 

D. Code shall mean the Internal Revenue Code of 1986, as amended. 

E. Committee shall mean a committee designated by the Board to administer the Plan, which initially shall be the compensation committee of the Board. The Committee shall be comprised of at least two directors but not less than such number of directors as shall be required to permit awards granted under the Plan to qualify under Rule 16b-3 under the Securities Act and Section 162(m) of the Code, and each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 under the Securities Act and an “Outside Director” within the meaning of Section 162(m) of the Code. 

F. Company shall mean CorVel Corporation, a Delaware corporation, or any corporate successor which shall assume the Plan. 

G. Corporate Transaction shall mean any of the following transactions for which the approval of the Company’s stockholders is obtained: 

(i) a merger or acquisition in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation, 

(ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company to any entity other than a parent or subsidiary of the Company, or 

(iii) any reverse merger in which the Company is the surviving entity but in which fifty percent (50%) or more of the Company’s outstanding voting stock is transferred to holders different from those who held such fifty percent (50%) or greater interest immediately prior to such merger. 

H. Employee shall mean an individual for whom the Company or one or more of its Parent or Subsidiaries reports his or her earnings on a Form W-2. 

I. Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9. 

J. Exercise Price shall mean the exercise price per Option Share as specified in the Grant Notice. 

K. Expiration Date shall mean the date on which the option expires as specified in the Grant Notice. 

L. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 

(i) If the Common Stock is at the time listed on the Nasdaq National Market or the Nasdaq Capital Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market or the Nasdaq Capital Market and published in The Wall Street Journal. 

(ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Committee to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. 

(iii) If the Common Stock is not listed on the Nasdaq National Market, Nasdaq Capital Market or a national securities exchange, the Fair Market Value shall be the average of the closing bid and ask prices of the Common Stock on that day as reported by the Nasdaq bulletin board or any comparable system on that day. 

(iv) If the Common Stock is not traded included in the Nasdaq bulletin board or any comparable system, the Fair Market Value shall be the average of the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 

(v) If the date in question is not a trading day, then the Fair Market Value shall be determined based on prices for the trading day prior to the date in question. 

M. Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 

N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying this Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 

O. Misconduct shall mean any of the following: 

(i) Optionee’s intentional misconduct or continuing gross neglect of duties which materially and adversely affects the business and operations of the Company or any Parent or Subsidiary employing Optionee; 

(ii) Optionee’s unauthorized use or disclosure of (or attempt to use or disclose) confidential information or trade secrets of the Company or any Parent or Subsidiary; or 

(iii) Optionee’s commission of an act involving embezzlement, theft, fraud, falsification of records, destruction of property or commission of a crime or other offense involving money or other property of the Company or any Parent or Subsidiary employing Optionee. 

The reasons for termination of Optionee as a Service Provider set forth in this subparagraph are not intended to be an exclusive list of all acts or omissions which the Company (or any Parent or Subsidiary) may deem to constitute misconduct or other grounds for terminating Optionee (or any other individual). 

P. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

Q. Notice of Exercise shall mean the notice of exercise in the form attached hereto as Exhibit I. 

R. Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice. 

S. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

T. Parent shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

U. Permanent Disability shall have the meaning assigned to “permanent and total disability” as set forth in Code Section 22(e)(3). 

V. Plan shall mean the CorVel Corporation Restated Omnibus Incentive Plan (Formerly The Restated 1988 Executive Stock Option Plan). 

W. Securities Act shall mean the Securities Act of 1933, as amended. 

X. Service Provider shall mean an individual who renders service on a periodic basis to the Company, its Parent and/or any of its Subsidiaries as an Employee, a non-Employee member of the board of directors or a consultant or independent advisor. 

Y. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange, or any other national stock exchange. 

 

Z. Subsidiary shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, provided such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. For purposes of all Non-Statutory Option grants under the Plan and all Corporate Transaction provisions of the Plan, the term “Subsidiary” shall also include any partnership, joint venture or other business entity of which the Company owns, directly or indirectly through another entity, more than a fifty percent (50%) interest in voting power, capital or profits. 

 

 

 

 

 

 

 

Schedule A: Performance Option

CorVel Corporation 

Percentage of shares earned by tranche 

CY 2017, 2018, 2019

 

	
 
	
CY 2017
	
 
	
CY 2018
	
 
	
CY 2019

	
EPS Target for each calendar year
	
$***
	
 
	
$***
	
 
	
$***

	
Percentage of option grant for tranche (totals 100%)
	
30%
	
 
	
30%
	
 
	
40%

	
To earn 100% of tranche (105% of EPS target)
	
$***
	
 
	
$***
	
 
	
$***

	
To earn 80% of tranche (100% of EPS target)
	
$***
	
 
	
$***
	
 
	
$***

	
To earn 30% of tranche (95% of EPS target)
	
$***
	
 
	
$***
	
 
	
$***

	
EPS at Zero earned (90% of EPS target)
	
$***
	
 
	
$***
	
 
	
$***

 

 

 

*** Confidential treatment requested to Rule 24b-2 under the Securities Exchange Act of 1934. In accordance with Rule 24b-2, these confidential portions have been omitted from this exhibit and filed separately with the Securities and Exchange Commission.

 

 

 

SCHEDULE A

CORVEL CORPORATION

Shares earned by EPS number by Tranche year

CY 2017, 2018, 2019

 

	
Option grant:
	
 
	
20,000 Shares option grant

	
CY 2017 Tranche
	
 
	
6000 30% of total grant

	
CY 2018 Tranche
	
 
	
6000 30% of total grant

	
CY 2019 Tranche
	
 
	
8000 40% of total grant

 

	
 
	
CY 2017
	
 
	
CY 2018
	
 
	
CY 2019

	
 
	
Percentage
	
Shares
	
 
	
Percentage
	
Shares
	
 
	
Percentage
	
Shares

	
$***
	
0.0%
	
0
	
$***
	
0.0%
	
0
	
$***
	
0.0%
	
0

	
$***
	
3.8%
	
225
	
$***
	
3.0%
	
180
	
$***
	
2.7%
	
218

	
$***
	
7.5%
	
450
	
$***
	
6.0%
	
360
	
$***
	
5.5%
	
436

	
$***
	
11.3%
	
675
	
$***
	
9.0%
	
540
	
$***
	
8.2%
	
655

	
$***
	
15.0%
	
900
	
$***
	
12.0%
	
720
	
$***
	
10.9%
	
873

	
$***
	
18.8%
	
1,125
	
$***
	
15.0%
	
900
	
$***
	
13.6%
	
1,091

	
$***
	
22.5%
	
1,350
	
$***
	
18.0%
	
1,080
	
$***
	
16.4%
	
1,309

	
$***
	
26.3%
	
1,575
	
$***
	
21.0%
	
1,260
	
$***
	
19.1%
	
1,527

	
$***
	
30.0%
	
1,800
	
$***
	
24.0%
	
1,440
	
$***
	
21.8%
	
1,745

	
$***
	
35.6%
	
2,133
	
$***
	
27.0%
	
1,620
	
$***
	
24.5%
	
1,964

	
$***
	
41.1%
	
2,467
	
$***
	
30.0%
	
1,800
	
$***
	
27.3%
	
2,182

	
$***
	
46.7%
	
2,800
	
$***
	
35.6%
	
2,133
	
$***
	
30.0%
	
2,400

	
$***
	
52.2%
	
3,133
	
$***
	
41.1%
	
2,467
	
$***
	
35.0%
	
2,800

	
$***
	
57.8%
	
3,467
	
$***
	
46.7%
	
2,800
	
$***
	
40.0%
	
3,200

	
$***
	
63.3%
	
3,800
	
$***
	
52.2%
	
3,133
	
$***
	
45.0%
	
3,600

	
$***
	
68.9%
	
4,133
	
$***
	
57.8%
	
3,467
	
$***
	
50.0%
	
4,000

	
$***
	
74.4%
	
4,467
	
$***
	
63.3%
	
3,800
	
$***
	
55.0%
	
4,400

	
$***
	
80.0%
	
4,800
	
$***
	
68.9%
	
4,133
	
$***
	
60.0%
	
4,800

	
$***
	
82.2%
	
4,933
	
$***
	
74.4%
	
4,467
	
$***
	
65.0%
	
5,200

	
$***
	
84.4%
	
5,067
	
$***
	
80.0%
	
4,800
	
$***
	
70.0%
	
5,600

	
$***
	
86.7%
	
5,200
	
$***
	
82.0%
	
4,920
	
$***
	
75.0%
	
6,000

	
$***
	
88.9%
	
5,333
	
$***
	
84.0%
	
5,040
	
$***
	
80.0%
	
6,400

	
$***
	
91.1%
	
5,467
	
$***
	
86.0%
	
5,160
	
$***
	
82.0%
	
6,560

	
$***
	
93.3%
	
5,600
	
$***
	
88.0%
	
5,280
	
$***
	
84.0%
	
6,720

	
$***
	
95.6%
	
5,733
	
$***
	
90.0%
	
5,400
	
$***
	
86.0%
	
6,880

	
$***
	
97.8%
	
5,867
	
$***
	
92.0%
	
5,520
	
$***
	
88.0%
	
7,040

	
$***
	
100.0%
	
6,000
	
$***
	
94.0%
	
5,640
	
$***
	
90.0%
	
7,200

	
 
	
 
	
 
	
$***
	
96.0%
	
5,760
	
$***
	
92.0%
	
7,360

	
 
	
 
	
 
	
$***
	
98.0%
	
5,880
	
$***
	
94.0%
	
7,520

	
 
	
 
	
 
	
$***
	
100.0%
	
6,000
	
$***
	
96.0%
	
7,680

	
 
	
 
	
 
	
 
	
 
	
 
	
$***
	
98.0%
	
7,840

	
 
	
 
	
 
	
 
	
 
	
 
	
$***
	
100.0%
	
8,000

 

*** Confidential treatment requested pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. In accordance with Rule 24b-2, these confidential portions have been omitted from this exhibit and filed separately with the Securities and Exchange Commission.

Notwithstanding anything to the contrary in this Schedule A or the Stock Option Agreement to which this Schedule A is attached, the Company shall have the right, in its sole discretion, with or without the consent of the Optionee, to amend this Schedule A to adjust any or all of the targets, dates and/or target EPS amounts as it deems equitable to recognize unusual or non-recurring events, including, but not limited to the Company's acquisition of another business entity or assets, a corporate merger or other consolidation, or the sale or discontinuation of significant business operations or business units of the Company; changes in tax laws or accounting procedures; and any other extraordinary circumstances.

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