Document:

Exhibit 10.2

 

GERMAN AMERICAN BANCORP, INC.

 

2019 LONG-TERM EQUITY INCENTIVE PLAN

 

 

German American Bancorp, Inc. (“Company”) hereby establishes the German American Bancorp, Inc. 2019 Long-Term Equity Incentive Plan (“Plan”), effective May 16, 2019.

 

ARTICLE I
  APPROVAL AND PURPOSE

 

Section 1.01.                         Approval of Plan.  The Company’s Board of Directors approved this Plan on March 4, 2019, contingent on approval by the Company’s shareholders within 12 months following its adoption by the Board.

 

Section 1.02.                         Description of Plan.  The Plan is designed to promote the interests of the Company and its shareholders by providing a means by which the Board can award stock-based incentives to employees and directors of the Company or any Subsidiary (“Participants”).  The Plan permits the Board to grant Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock, and Stock Appreciation Rights, all as provided herein.

 

Section 1.03.                         Purpose of Plan.  The purpose of the Plan is to further the growth, development, and financial success of the Company by providing for stock-based incentives to Participants that align their interests more closely with those of the Company’s shareholders.  The Company also believes that the Plan will assist it in its efforts to attract and retain quality employees and directors.

 

ARTICLE II
  DEFINITIONS AND RULES OF CONSTRUCTION

 

Section 2.01.                         Definitions.  When capitalized in this Plan, the following terms shall have the meanings specified below, unless the context otherwise requires:

 

(a)                                 “Award” means a grant made to a Participant pursuant to Article VI.

 

(b)                                 “Award Agreement” means a written instrument between the Company and a Participant evidencing an Award and prescribing the terms, conditions, and restrictions applicable to the Award.

 

(c)                                  “Board of Directors” or “Board” means the Company’s Board of Directors, as constituted from time to time.

 

(d)                                 “Cause” means, with respect to a Participant, that, in the Board’s reasonable good faith judgment, the Participant (i) has materially breached the terms of any employment Agreement with the Employer and failed to correct the breach within ten (10) days after receiving the Board’s written notice of such cure; (ii) has committed gross negligence or willful misconduct in the performance or intentional non-performance of any material duty of his employment; and/or (iii)

 

 

has engaged in dishonesty, fraud, or intentional misconduct with respect to the business or affairs of the Employer (monetarily or otherwise).

 

(e)                                  “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

(f)                                   “Committee” means the committee described in Section 3.01; provided however, to the extent that the Board has not designated a Committee, “Committee” means the “Board.”

 

(g)                                  “Company” means German American Bancorp, Inc.

 

(h)                                 “Director” means a director of the Company or a Subsidiary who is not also an Employee.

 

(i)                                     “Employee” means any individual employed by the Company or a Subsidiary, including an employee who is a member of the Board or the board of directors of a Subsidiary.

 

(j)                                    “Employer” means the Company and/or a Subsidiary.

 

(k)                                 “Exercise Price” means the price, if any, required to be paid to the Company upon the exercise of an Award.

 

(l)                                     “Fair Market Value” means, with respect to a Share on any date, as follows:

 

(1)                                 if the Shares are listed or admitted to trade and are readily tradable on a national securities exchange, the closing price of a Share on the principal national securities exchange on which the Shares are listed or admitted to trade on such date, or, if there is no trading of the Shares on such date, the closing price of a Share as quoted on the next preceding date on which there was trading in Shares;

 

(2)                                 if the Shares are not subject to paragraph (1) above, but are readily tradable on an established securities market, the closing price of a Share on such date on such market, or if there is no trading of the Shares on such date, the closing price of a Share on the next preceding date on which there was trading in Shares; and

 

(3)                                 if the Shares are not subject to paragraph (1) or (2) above, the fair market value of the Shares on such date, as determined by the Committee in a manner that satisfies the requirements of Code Section 409A and the guidance thereunder for exempt equity-based compensation.

 

(m)                             “Grant Date” means the date on which the Committee approves the grant.

 

(n)                                 “Incentive Stock Option” means an option for Shares granted pursuant to the Plan that satisfies the requirements of Code Section 422.

 

(o)                                 “Named Executive Officer” means, at the time of receiving an Award under the Plan, an individual who is (i) serving as the Company’s principal executive officer or acting in a similar capacity, regardless of compensation level, (ii) serving as the Company’s principal financial officer or acting in a similar capacity, regardless of compensation level, or (iii) one of the

 

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Company’s three most highly compensated executive officers other than the aforementioned principal executive officer and principal financial officer, or any such similar officer set forth under Item 402 of Regulation S-K under the Securities Act of 1933, as amended, or under any successor rule or regulation.

 

(p)                                 “Non-Qualified Stock Option” means an option for Shares granted pursuant to the Plan that that is not an Incentive Stock Option.

 

(q)                                 “Option” means an Incentive Stock Option or a Non-Qualified Stock Option.

 

(r)                                    “Participant” means a person to whom an Award has been granted under the Plan, provided, however, a Participant shall cease to be such at such time as all Awards granted to him under the Plan have been exercised and/or forfeited.

 

(s)                                   “Performance-Based Compensation” means compensation described in Code Section 162(m)(4)(C) that is excluded from “applicable employee remuneration” under Code Section 162(m).

 

(t)                                    “Performance-Based Restricted Stock” means Restricted Stock that is subject to forfeiture unless specified Performance Targets are satisfied during the Performance Period.

 

(u)                                 “Performance Measures” means, with respect to Performance-Based Restricted Stock, the objective factors used to determine whether the restrictions on the Restricted Stock have lapsed.  “Performance Measures” shall be based on any of the factors listed below, alone or in combination, as determined by the Committee.  Such factors may be applied (i) on a corporate-wide or business-unit basis, (ii) including or excluding one or more Subsidiaries, (iii) in comparison with plan, budget, or prior performance, and/or (iv) on an absolute basis or in comparison with peer-group performance.  The factors that may be used as Performance Measures are: (i) return on assets; (ii) return on equity; (iii) total shareholder return; (iv) operating income; (v) net income; (vi) earnings per share; and (vii) income before interest and taxes.  Performance Measures may differ from Participant to Participant and Award to Award.

 

(v)                                 “Performance Period” means the period of time during which Performance Targets must be achieved with respect to an Award of Restricted Stock, as established by the Committee.

 

(w)                               “Performance Targets” means, with respect to an Award of Performance-Based Restricted Stock, the objective performance under the Performance Measures for that Performance Period that will result in payments under the Award.  Performance Targets may differ from Participant to Participant and Award to Award.

 

(x)                                 “Period of Restriction” means the period during which a Share of Restricted Stock is subject to restrictions and a substantial risk of forfeiture.

 

(y)                                 “Plan” means the German American Bancorp, Inc. 2019 Long-Term Equity Incentive Plan, as set out in this document, as amended from time to time.

 

(z)                                  “Restricted Stock” means Shares awarded pursuant to the Plan that, at the time of grant, are nontransferable and are subject to a substantial risk of forfeiture.

 

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(aa)                          “Rule 16b-3” means Rule 16b-3 under the Securities Exchange Act of 1934, as amended.

 

(bb)                          “Separation from Service,” “Separates from Service,” or any variation of such term means, (i) in the case of an Employee, a complete termination of the employment relationship between the Employee and all Employers and, (ii) in the case of a Director, termination of the Director’s service as a Director.

 

(cc)                            “Service-Based Restricted Stock” means Restricted Stock with restrictions based solely on the Participant’s continued service with the Company or an Affiliate.

 

(dd)                          “Share” means one of the Company’s common shares, no par value.

 

(ee)                            “Stock Appreciation Right” or “SAR” has the meaning given to it in Section 6.02(a).

 

(ff)                              “Subsidiary” means any company (other than the Company) that is a “subsidiary corporation” within the meaning of Code Section 424.

 

(gg)                            “Termination Date” has the meaning given to it in Section 9.02.

 

Section 2.02.                         Rules of Construction.  The following rules shall apply in construing the Plan and any Award Agreement:

 

(a)                                 Except as expressly provided below, this Plan, the Awards, all documents evidencing Awards and all other related documents shall be governed by, and construed in accordance with, the laws of the State of Indiana without regard to conflict of law principles.

 

(b)                                 Words used in the masculine shall be construed to include the feminine gender, where appropriate, and words used in the singular or plural shall be construed as being in the plural or singular, where appropriate.

 

(c)                                  Provisions of the Plan applicable to Incentive Stock Options shall be construed to effect compliance with Code Section 422.

 

(d)                                 Captions and headings are for convenience only, and they shall not affect the construction of the Plan or any Award Agreement.

 

(e)                                  Reference to any provision of the Code or other law shall be deemed to include a reference to the successor of such provision.

 

(f)                                   The Plan and the Awards are intended to comply with and shall be construed to effect compliance with, the exemptions under Rule 16b-3, in the case of Participants who are subject to Section 16 of the Securities Exchange Act of 1934; provided, however, the Company shall have no liability to any Participant for Section 16 consequences of an Award.

 

(g)                                  It is intended that Awards granted with an Exercise Price not less than Fair Market Value on the date of grant shall qualify as performance-based compensation or otherwise be

 

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exempt from deductibility limitations under Code Section 162(m), and the Plan and the Awards shall be construed accordingly.

 

(h)                                 It is intended that all Awards shall be exempt from the provisions of Code Section 409A, and the provisions of the Plan and any Agreement applicable to an Award shall be construed in accordance with such intent.

 

(i)                                     If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of the Plan shall continue in effect, provided that the essential economic terms of the Plan and any Award can still be enforced.

 

ARTICLE III
  ADMINISTRATION

 

Section 3.01.                         Committee.  Except as otherwise provided herein, the Plan shall be administered by the Board or, at the Board’s option, by a compensation committee thereof to which the Board has duly delegated the administration of the Plan.  The Committee shall consist solely of two or more non-employee directors (within the meaning of Rule 16b-3) who are “outside directors” for purposes of Code Section 162(m) and the regulations thereunder.  Any action of the Committee with respect to administration of the Plan shall be taken by a majority vote or written consent of its members.

 

Section 3.02.                         Powers of Committee.  Subject to the express provisions of the Plan and any express limitations on its delegated authority, the Committee is authorized and empowered to administer the Plan and to (i) designate those persons who are Participants; (ii) grant Awards; (iii) determine the effective date of each Award, the number of Shares subject to the Award, and the other terms and conditions of the Award, which terms and conditions need not be the same for each Award; (iv) interpret the Plan; (v) determine the Fair Market Value of the Shares; (vi) accelerate the time during which an Award may be exercised, either in accordance with Section 6.09 or otherwise, in each case notwithstanding the provisions of the Award Agreement stating the time during which the Award may be exercised; (vii) prescribe, amend, and rescind rules relating to the Plan; (viii) authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by the Committee; (ix) determine the rights and obligations of Participants under the Plan; and (x) make all other determinations deemed necessary or advisable for the administration of the Plan.  Notwithstanding the preceding provisions, the Committee is not authorized to take any action that would cause an Award hereunder to become subject to the provisions of Code Section 409A.

 

Section 3.03.                         Binding Determinations.  Any action taken by, or inaction of, the Company, the Board, or the Committee relating or pursuant to the Plan (including, without limitation, any determination of Fair Market Value) shall be within the sole discretion of that entity or body and shall be conclusive and binding upon all persons.  Subject only to compliance with the express provisions hereof, the Board and Committee may act in their sole discretion in matters within their authority related to the Plan.

 

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Section 3.04.                         Reliance on Experts.  In making any determination or in taking or not taking any action under the Plan, the Committee or the Board, as the case may be, may obtain and rely upon the advice of experts, including employees of and professional advisors to the Company.

 

Section 3.05.                         Delegation.  The Committee may delegate ministerial non-discretionary functions to one or more Company officers or employees.  Subject to applicable law, the Committee may delegate to the Company’s Chief Executive Officer all or part of its authority and duties with respect to the granting of Awards to individuals who are not (i) subject to the reporting and other provisions of Section 16 of the Securities Exchange Act of 1934 or (ii) covered employees within the meaning of Code Section 162(m)(3).  Any delegation pursuant to this Section shall specify the duration of the delegation and limit the amount of Awards that may be granted pursuant thereto.

 

Section 3.06.                         Limitations on Liability.  No director, officer, or agent of the Company shall be liable for any action, omission, or decision under the Plan that is taken, made, or omitted in good faith.

 

ARTICLE IV
  ELIGIBILITY

 

The Committee shall, from time to time, designate those persons eligible to receive Awards under the Plan from among employees and directors of the Company or any Subsidiary.  The Committee may grant more than one Award to any Participant.

 

ARTICLE V
  SHARES SUBJECT TO AWARDS

 

Section 5.01.                         Aggregate Share Limit.  Subject to adjustment as provided in Sections 5.02 and 5.04 and any limitations specified elsewhere in the Plan, the maximum number of Shares cumulatively available for issuance under the Plan shall not exceed 1,000,000 Shares.   At all times the Company shall reserve and keep available a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding Awards granted under the Plan.

 

Section 5.02.                         Share Counting, Shares Returned to the Plan and Limitations.  Subject to the application of Section 5.04, Shares that: (a) are subject to issuance upon exercise of an Option but cease to be subject to such Option for any reason other than exercise of such Option; (b) are subject to an Award granted hereunder but are forfeited or are repurchased by the Company at the original issue price; or (c) are subject to an Award that otherwise terminates without Shares being issued will again be available for grant and issuance in connection with future Awards under the Plan. The following Shares may not again be made available for future grant and issuance as Awards under the Plan: (x) Shares that are withheld to pay the Exercise Price of an Award or to satisfy any tax withholding obligations in connection with an Award; (y) Shares not issued or delivered as a result of the net settlement of an outstanding Option or SAR; or (z) shares of the Company’s Common Stock repurchased on the open market with the proceeds of an exercised Option.  In the case of Stock Appreciation Rights, only Shares delivered in connection with the settlement thereof shall be deducted from the aggregate Share limit set forth in Section 5.01.

 

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Section 5.03.                         Limitation Applicable to Specific Awards.  The maximum number of Shares that may be delivered pursuant to Incentive Stock Options granted under the Plan is 1,000,000 Shares.  The only limitation on the number of Shares available for Non-Qualified Stock Options, Stock Appreciation Rights, and Restricted Stock Awards shall be that specified in Sections 5.01.

 

Section 5.04.                         Adjustments Upon Recapitalization or Reorganization.  If the outstanding Shares are changed into, or exchanged for, a different number or kind of shares or securities of the Company through any capital reorganization or reclassification, or if the number of outstanding Shares is changed through a stock split or stock dividend, an appropriate adjustment shall be made by the Committee in the number, kind, and/or Exercise Price with respect to Shares as to which Awards may be granted under the Plan.  A corresponding adjustment shall likewise be made in the number, kind, and/or Exercise Price for Shares with respect to which there are unexercised outstanding Awards.  Any such adjustment in an outstanding Award, however, shall be made without change in the total price applicable to the unexercised portion of the Award but with a corresponding adjustment in the price for each Share covered by the Award.  In making such adjustments, or in determining that no such adjustments are necessary, the Committee may rely upon the advice of counsel and accountants to the Company, and the good faith determination of the Committee shall be final, conclusive, and binding.  No fractional shares of stock shall be issued or issuable under the Plan on account of any such adjustment.  No adjustment shall be made pursuant to this Section, if it would cause an Award to become subject to Code Section 409A.

 

ARTICLE VI
  AWARDS

 

Section 6.01.                         Grant of Awards.  Awards authorized under this Article VI may be granted pursuant to another incentive program that incorporates by reference the terms and conditions of this Plan.  Awards may be granted singly or in combination or tandem with other Awards.  Awards may also be granted in replacement of, or as substitution for, other awards granted by the Company, whether or not such other awards were granted under this Plan.  Without limiting the foregoing, if a Participant pays all or part of the Exercise Price or taxes associated with an Award by the transfer of Shares or the surrender of all or part of an Award (including the Award being exercised), the Committee may, in its discretion, grant a new Award to replace the Shares that were transferred or the Award that was surrendered.  The Company may assume awards granted by an organization acquired by the Company or may grant Awards in replacement of, or in substitution for, any such awards.

 

Section 6.02.                         Types of Awards.  Awards under the Plan shall consist of the following:

 

(a)                                 Stock Appreciation Rights.  A right to receive a payment, in cash or Shares, equal to the excess of (i) the Fair Market Value of a specified number of Shares on the date the right is exercised over (ii) the Fair Market Value of the same number of Shares on the date the right is granted, all as determined by the Committee (“Stock Appreciation Right” or “SAR”).  The right may be conditioned upon the occurrence of certain events, such as a change in control, or may be unconditional, as determined by the Committee.  No Stock Appreciation Right shall be exercisable after the tenth (10th) anniversary of its grant.

 

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(b)                                 Restricted Stock Award.  An Award that is made in Restricted Stock.  All or part of any Restricted Stock Award may be subject to conditions, restrictions, and risks of forfeiture, as and to the extent established by the Committee.  Such Shares may be either Performance-Based Restricted Stock or Service-Based Restricted Stock.

 

(c)                                  Option.  A right to purchase a specified number of Shares during a specified period and at a specified exercise price, all as determined by the Committee.  An Option may be an Incentive Stock Option or a Non-Qualified Stock Option.  In addition to the terms, conditions, vesting periods, and restrictions established by the Committee in the Award Agreement, Incentive Stock Options must comply with the requirements of Code Section 422, Section 6.04, and this Article VI.

 

Section 6.03.                         Terms and Conditions of Awards; Agreements.  Awards granted under the Plan shall be evidenced by an Award Agreement executed by the Company and the Participant, which shall contain such terms and be in such form as the Committee may from time to time approve, subject to the following limitations and conditions:

 

(a)                                 Grant and Notice of Award.  The date of an Award grant shall, for all purposes, be the date on which the Board makes the determination granting such an Award.  Notice of the determination shall be given to each Participant to whom an Award is granted within a reasonable time after the date of grant.  The grant of an Award shall not obligate the Participant to exercise it.

 

(b)                                 Number of Shares.  The Award Agreement shall state, as appropriate, the type and total number of Shares (i) granted as Restricted Stock, (ii) with respect to which Stock Appreciation Rights are granted, and/or (iii) with respect to which Options are granted.

 

(c)                                  Exercise Price.  The Award Agreement shall state, as applicable, the Exercise Price per share of the Shares with respect to which Options are issued, the Fair Market Value of Shares with respect to which Stock Appreciation Rights are issued, and the purchase price for any Restricted Stock.  The Exercise Price for an Option shall not be less than its Fair Market Value on the Grant Date.  For Incentive Stock Options, the Exercise Price shall satisfy the requirements of Section 6.04 and the provisions of the Code applicable to incentive stock options.

 

(d)                                 Exercise and Payment of Exercise Price.  A Participant may exercise a vested Option by (i) giving written notice to the Company specifying the number of Shares to be purchased and accompanied by payment of the full Exercise Price therefor in cash, by check, or in such other form of lawful consideration as the Committee may approve, including without limitation and in the sole discretion of the Committee, the transfer by the Participant to the Company of outstanding Shares held by the Participant in a manner intended to comply with the provisions of Rule 16b-3, if applicable, and (ii) satisfying any other requirements set forth herein (including, without limitation, the tax withholding requirements of Article VII) or in the applicable Award Agreements.  Any Shares delivered by the Participant in connection with the exercise of an Award must have been owned by the Participant for at least six months as of the date of delivery.  Shares used to satisfy the Exercise Price of an Award shall be valued at their Fair Market Value on the date of exercise.

 

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(e)                                  Restrictions on Grants.  Notwithstanding any other provisions set forth herein or in an Award Agreement, no Award may be granted under the Plan after the Termination Date.

 

(f)                                   Vesting of Awards.

 

(i)                                     General Requirement. Awards shall vest based on longevity of service and/or other schedules established by the Committee, as set forth in each Award Agreement.

 

(ii)                                  Minimum Vesting Requirements. Notwithstanding any other provision of the Plan, except in connection with Awards that may be settled only in cash, no portion of an Award may vest before the first anniversary of the date of grant, subject to accelerated vesting as contemplated under Section 6.09 and clause (vi) of Section 3.02; provided, however, that with respect to up to five percent (5%) of the maximum number of Shares reserved under Section 5.01, the Company may grant Awards or otherwise accelerate vesting without regard to the minimum vesting period set forth in this clause (ii).

 

(g)                                  Issuance of Shares and Compliance with Securities Laws.  The Company may postpone the issuance and delivery of certificates representing Shares until (i) the admission of such Shares to listing on any stock exchange on which Shares are then listed and (ii) the completion of such registration or other qualification of Shares under any state or federal law, rule, or regulation as the Company shall determine to be necessary or advisable, which registration or other qualification the Company shall use its best efforts to complete; provided, however, a person purchasing or otherwise receiving Shares pursuant to the Plan has no right to require the Company to register the Shares under federal or state securities laws at any time.  Any person purchasing or otherwise receiving Shares pursuant to the Plan may be required to make such representations and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit the Company, in light of the existence or non-existence with respect to such Shares of an effective registration under the Securities Act of 1933, as amended, or any similar state statute, to issue the Shares in compliance with the provisions of those or any comparable acts.

 

(h)                                 Named Executive Officer Grants and Minimum Holding Period.  Option and SAR Awards made or granted to any Named Executive Officer shall provide that any Shares received in connection with the exercise or vesting thereof shall be subject to an additional one year holding period before any sale or transfer of such Shares may take place, other than with respect to any Shares withheld by the Company to satisfy a Participant’s withholding tax obligation in connection with an Award.

 

Section 6.04.                         Additional Limitations Applicable to Incentive Stock Options.

 

(a)                                 General.  To the extent that any Award granted pursuant to this Plan contains an Incentive Stock Option, the limitations and conditions of this Section shall apply to such Incentive Stock Option and the Award Agreement relating thereto in addition to the terms and conditions otherwise specified by the Plan and the Award Agreement.

 

(b)                                 Price.  The price of an Incentive Stock Option shall be an amount per share not less than the Fair Market Value per share of the Shares on the Grant Date.  In the case of Incentive

 

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Stock Options granted to an employee of the Company who is a 10% shareholder, the option price shall be an amount per share not less than one hundred ten percent (110%) of the Fair Market Value per share of the Shares on the Grant Date.

 

(c)                                  Exercise Period.  Unless terminated earlier pursuant to other terms and provisions of the Award Agreement, the term of each Incentive Stock Option shall expire within the period prescribed in the Agreement relating thereto, which shall not be more than five years from the Grant Date, if the Participant is a 10% shareholder (as defined in Code Section 422(b)(6)), and not more than ten years from the Grant Date, if the Participant is not a 10% shareholder (as defined in Code Section 422(b)(6)).

 

(d)                                 Limitation on Grants.  No Incentive Stock Option shall be granted under this Plan after Termination Date.

 

(e)                                  Limitation on Transferability.  No Incentive Stock Option shall be assignable or transferable except by will or under the laws of descent and distribution.  During the lifetime of a Participant, an Incentive Stock Option shall be exercisable only by the Participant and may not be transferred or assigned.

 

(f)                                   Maximum Exercise Rule.  The aggregate Fair Market Value (determined as of the Grant Date) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year under this Plan and any other incentive stock option plan (within the meaning of Code Section 422) of the Company or any parent or subsidiary corporation of the Company shall not exceed $100,000.

 

(g)                                  Other Code Limits.  Incentive Stock Options may be granted only to employees of the Company (or a Subsidiary) that satisfy the other eligibility requirements of the Code.  There shall be imposed in any Award Agreement relating to Incentive Stock Options such other terms and conditions as from time to time are required for the Option be an “incentive stock option” within the meaning of Code Section 422.

 

Section 6.05.                         Additional Provisions Related to Restricted Stock.

 

(a)                                 The Committee may impose restrictions on Restricted Stock based upon any one or more of the following criteria: (i) the achievement of specific Performance Targets, (ii) vesting based on period of service with the Company and any of its Subsidiaries, (iii) applicable federal or state securities laws, or (iv) any other basis determined by the Committee, in its sole discretion.

 

(b)                                 Notwithstanding any other provision of this Section to the contrary, for purposes of qualifying grants of Restricted Stock as Performance-Based Compensation, the Committee shall establish restrictions based upon the achievement of pre-established Performance Targets.  The specific Performance Targets that must be satisfied for the Period of Restriction to lapse or terminate shall be established the Committee on or before the latest date permissible to enable the Restricted Stock to qualify as Performance-Based Compensation.  In granting Restricted Stock that is intended to qualify as Performance-Based Compensation, the Committee shall follow any procedures that it determines to be necessary, advisable, or appropriate to ensure such qualification.

 

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Section 6.06.                         Termination of Awards.

 

(a)                                 Each Award granted under the Plan shall set forth a termination date, which shall be not later than ten years from the Grant Date, subject to earlier termination as set forth in this Plan or the Award Agreement.

 

(b)                                 The Committee shall establish the effect of a Separation from Service on the rights and benefits under each Award and in so doing may make distinctions based upon, among other factors, the cause of termination and type of Award.  A Participant’s Separation from Service as a Director shall not, unless otherwise expressly provided by the Committee, accelerate or otherwise increase the number of Shares subject to an Award.  Following Separation from Service, an Award may be exercised only in accordance with the applicable Award Agreement and, unless otherwise expressly provided by the Committee, only with respect to that number of Shares for which the Award could have been exercised by the Participant on the date of Severance from Service.

 

(c)                                  The Committee may cancel any unexpired or unpaid Awards at any time, if the Participant is not in compliance with all applicable provisions of this Plan or with any Award Agreement, or if the Participant, whether or not he is currently employed by an Employer, engages in any of the following activities without the prior written consent of the Employer:

 

(1)                                 directly or indirectly renders services to or for an organization, or engages in a business, that is, in the judgment of the Committee, in competition with the Employer; or

 

(2)                                 discloses to anyone outside of the Employer, or uses for any purpose other than the Employer’s business, any confidential or proprietary information or material relating to the Employer, whether acquired by the Participant during or after employment with the Employer.

 

The Committee may, in its discretion and as a condition to the exercise of an Award, require a Participant to acknowledge in writing that he is in compliance with all applicable provisions of the Plan and of any Award Agreement and has not engaged in any activities referred to in clauses (1) and (2) above.

 

(d)                                 Subject to Section 6.09, (i) upon the dissolution, liquidation, or sale of all or substantially all of the business, properties, and assets of the Company, (ii) upon any reorganization, merger, consolidation, sale, or exchange of securities in which the Company does not survive, (iii) upon any sale, reorganization, merger, consolidation, or exchange of securities in which the Company does survive and any of the Company’s shareholders have the opportunity to receive cash, securities of another corporation, partnership, or limited liability company and/or other property in exchange for their capital stock of the Company, or (iv) upon any acquisition by any person or group (as defined in Section 13d of the Exchange Act) of beneficial ownership of more than 50% of the then outstanding Shares (each of the events described in clauses (i), (ii), (iii) or (iv) is referred to herein as an “Extraordinary Event”), the Plan and each outstanding Award shall terminate, subject to any provision that has been made by the Committee through a plan of reorganization or otherwise for the substitution, assumption, settlement, or other continuation of the Awards.  If Awards are to terminate (with no substitution, assumption, settlement, or other

 

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continuation) in such circumstances, each Participant shall have the right, by giving notice at least ten days before the effective date of the Extraordinary Event (“Effective Date”), to exercise on or before the Effective Date, in whole or in part, any unexpired Award issued to the Participant, to the extent that the Award is vested and exercisable as of the Effective Date.

 

Section 6.07.                         Rights as a Shareholder. Unless otherwise provided by the Board or the Committee, a Participant shall have rights as a shareholder with respect to Shares covered by an Award, including voting rights or rights to dividends, only upon the date of issuance of a certificate to him and, if payment is required, only after payment if full has been made for such Shares.

 

Section 6.08.                         Limits on Exercise and Transfer.

 

(a)                                 Except as expressly provided in (or pursuant to) Subsection (b), by applicable law, or by the Award Agreement, as the same may be amended:

 

(1)                                 all Awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance, or charge;

 

(2)                                 Awards must be exercised only by the Participant; and

 

(3)                                 amounts payable or shares issuable pursuant to an Award must be delivered only to (or for the account of) the Participant.

 

In addition, the Shares shall be subject to the restrictions, if any, imposed in the applicable Award Agreement.

 

(b)                                 The exercise and transfer restrictions in Subsection (a) shall not apply to:

 

(1)                                 transfers to the Company;

 

(2)                                 the designation of a beneficiary to receive benefits if the Participant dies or, if the Participant has died, transfers to or exercises by the Participant’s beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution; or

 

(3)                                 if the Participant has suffered a disability, transfers or exercises on behalf of the Participant by the Participant’s duly authorized legal representative in accordance with the applicable Award Agreement.

 

Section 6.09.                         Acceleration of Awards.

 

(a)                                 Notwithstanding the provisions of Article VI or any provision to the contrary contained in a particular Award Agreement, the Committee, in its sole discretion, may accelerate the vesting and exercisability of all or any portion of any Award then outstanding.  The decision by the Committee to accelerate an Award or to decline to accelerate an Award shall be final.  In the event of the acceleration of the exercisability of Awards as the result of a decision by the Committee pursuant to this Section, each outstanding Award so accelerated shall be exercisable for a period from and after the date of such acceleration and upon such other terms and conditions

 

12

 

as the Committee may determine in its sole discretion, provided that such terms and conditions (other than terms and conditions relating solely to the acceleration of exercisability and the related termination of an Award) may not materially adversely affect the rights of any Participant without the consent of that Participant.  Any outstanding Award that has not been exercised by the holder at the end of such period shall terminate automatically at that time.

 

(b)                                 If the vesting of an Award has been accelerated in anticipation of an event, and the Committee or the Board later determines that the event will not occur, the Committee may rescind the effect of the acceleration as to any then outstanding and unexercised or otherwise unvested Awards.

 

Section 6.10.                         Substitute Awards.  If the Company at any time should succeed to the business of another entity through a merger, consolidation, corporate reorganization or exchange, or through the acquisition of stock or assets of such entity or its subsidiaries or otherwise, Awards may be granted under the Plan to option holders of such entity or its subsidiaries, in substitution for options to purchase shares in such entity held by them at the time of succession.  The Committee, in its sole and absolute discretion, shall determine the extent to which such substitute Awards shall be granted (if at all), the person or persons to receive such substitute Awards (who need not be all option holders of such entity), the number of Awards to be received by each such person, the exercise price of such Award, and the other terms and conditions of such substitute Awards.

 

ARTICLE VII
 WITHHOLDING OF TAXES

 

The Company (or a Subsidiary) may deduct and withhold from the wages, salary, bonus, and other income paid by the Company (or Subsidiary) to the Participant the requisite tax upon the amount of taxable income, if any, recognized by the Participant in connection with the exercise in whole or in part of any Award, the lapse of restrictions with respect to Restricted Stock, or the sale of the Shares issued to the Participant upon the exercise of an Award, as may be required from time to time under any federal or state tax laws and regulations.  This withholding of tax shall be made from the Company’s (or Subsidiary’s) concurrent or next payment of wages, salary, bonus, or other income to the Participant or by payment to the Company by the Participant of the required withholding tax, as the Committee may determine; provided, however, that, in the sole discretion of the Committee, the Participant may pay such tax by reducing the number of Shares or amount of cash issued upon exercise of an Award (for which purpose such Shares shall be valued at Fair Market Value at the time of exercise).  Notwithstanding the foregoing, the Company shall not be obligated to issue certificates representing the Shares to be acquired through the exercise of an Award, if the Participant fails to provide the Company with adequate assurance that the Participant will pay such amounts to the Company as required herein.  Participants shall notify the Company in writing of any amounts included as income in the Participants’ federal income tax returns in connection with an Award.  Any Shares or cash withheld by the Company to satisfy a Participant’s withholding tax obligation in connection with an Award shall not exceed the number of Shares or amount of cash necessary to satisfy the minimum required levels of withholding under applicable law.

 

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ARTICLE VIII
 COMPLIANCE WITH LAWS

 

Section 8.01.                         General.  The Plan, the granting and vesting of Awards under the Plan, the offer, issuance, and delivery of the Shares, and the payment of money under the Plan or under Awards are subject to compliance with all applicable federal and state laws, rules, and regulations (including but not limited to state and federal securities laws and federal margin requirements) and to such approvals by any listing, regulatory, or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith.  A person acquiring any securities under the Plan shall, if requested by the Company, provide such assurances and representations to the Company as the Committee may deem necessary or desirable to assure compliance with all applicable legal and accounting requirements.

 

Section 8.02.                         Compliance with Securities Laws.  No Participant shall sell, pledge, or otherwise transfer Shares acquired pursuant to an Award or any interest in such Shares except in accordance with the express terms of the Plan and the applicable Award Agreement.  Any attempted transfer in violation of this Section shall be void and of no effect.  Without in any way limiting the provisions set forth above, no Participant shall make any disposition of all or any portion of Shares acquired or to be acquired pursuant to an Award, except in compliance with all applicable federal and state securities laws. Notwithstanding anything else herein to the contrary, the Company has no obligation to register the Shares or file any registration statement under either federal or state securities laws.

 

ARTICLE IX
 EFFECTIVENESS, TERMINATION AND AMENDMENTS

 

Section 9.01.                         Effective Date. The Plan shall become effective on the date it is approved by the Company’s shareholders, which shall be considered the date of its adoption for purposes of Treasury Regulation §1.422-2(b)(2)(i). No Awards shall be made under the Plan prior to its effective date. If the Company’s shareholders fail to approve the Plan within 12 months following its adoption by the Board, the Plan will be of no further force or effect.

 

Section 9.02.                         Duration of the Plan. The Plan shall remain in effect until all Shares subject to it are distributed, all Awards have expired or terminated, the Plan is terminated pursuant to Section 9.03, or the tenth (10th) anniversary of the effective date of the Plan, whichever occurs first (the “Termination Date”). Awards made before the Termination Date shall continue to be outstanding in accordance with their terms and the terms of the Plan unless otherwise provided in the applicable Agreements.

 

Section 9.03.                         Amendment and Termination of the Plan. The Board may at any time terminate, suspend or amend the Plan. Adjustments contemplated by Section 5.04 shall not be deemed to be amendments for purposes of the foregoing. The Company shall submit any amendment of the Plan to its shareholders for approval only to the extent required by applicable laws or regulations or the rules of any securities exchange on which the Shares may then be listed. Subject to Sections 6.06 and 6.09, no termination, suspension, or amendment of the Plan may materially impair the rights of any Participant under a previously granted Award without the

 

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Participant’s consent, unless such action is necessary to comply with applicable law or stock exchange rules.

 

Section 9.04.                         Amendment of Awards. Subject to Section 9.05, the Committee may unilaterally amend the terms of any Award Agreement evidencing an Award previously granted, except that no such amendment may materially impair the rights of any Participant under the applicable Award without the Participant’s consent, unless such amendment is necessary to comply with applicable law or stock exchange rules or any compensation recovery policy as provided in Article X.

 

Section 9.05.                         No Option or SAR Repricing. Except as provided in Section 5.04, no Option or Stock Appreciation Right Award granted under the Plan may be (a) amended to decrease the exercise price thereof, (b) cancelled in conjunction with the grant of any new Option or Stock Appreciation Right Award with a lower exercise price, (c) cancelled in exchange for cash, other property or the grant of any Restricted Stock Award at a time when the per share exercise price of the Option or Stock Appreciation Right Award is greater than the current Fair Market Value of a Share, or (d) otherwise subject to any action that would be treated under accounting rules as a “repricing” of such Option or Stock Appreciation Right Award, unless such action is first approved by the Company’s shareholders.

 

ARTICLE X
  CLAWBACK OF AWARDS

 

Section 10.01.                  Forfeiture under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, to the extent required by such Section 304, shall reimburse the Company for (a) the amount of any Award received by such individual under the Plan during the 12-month period following the first public issuance or filing with the Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement, and (b) any profits received from the sale of securities of the Company during that 12-month period.

 

Section 10.02.                  Repayment as a Result of Improper Conduct. If an Award has been paid to an executive officer of the Company or to his or her spouse or beneficiary, and the Committee later determines either (a) that financial results used to determine the amount of that Award must be materially restated and that the executive officer engaged in fraud or intentional misconduct related thereto, or (b) that recovery or repayment of the Award is required by applicable law, the Company will seek repayment or recovery, as appropriate, of the Award to the extent overpaid notwithstanding any contrary provision of the Plan. In addition, the Committee may provide that any Award, including any Shares subject to or issued under an Award, is subject to any other recovery, recoupment, clawback and/or other forfeiture policy maintained by the Company from time to time.

 

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ARTICLE XI
 INDEMNIFICATION

 

In addition to such other rights of indemnification as they may have as members of the Board, the members of the Committee shall be indemnified by the Company to the fullest extent permitted by law against reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit, or proceeding, or in connection with any appeal thereof, to which they or any of them may be a party by reason of any act or failure to act under or in connection with the Plan or any Award, and against all amounts paid by them in satisfaction of a judgment in any such action, suit, or proceeding except in relation to matters as to which it shall be adjudged in such action, suit, or proceeding that such Committee member is not entitled to indemnification under applicable law; provided, however, within 60 days after institution of any such action, suit, or proceeding, such Committee member shall in writing offer the Company the opportunity, at the Company’s expense, to handle and defend the same, and such Committee member shall cooperate with and assist the Company in the defense of any such action, suit, or proceeding.  The Company shall not be obligated to indemnify any Committee member with regard to the settlement of any action, suit, or proceeding to which the Company did not give its prior written consent.

 

ARTICLE XII
 NOT AN EMPLOYMENT OR CONSULTING AGREEMENT

 

Nothing contained in the Plan or in any Award Agreement shall confer, intend to confer, or imply any right of employment or right to continued employment by, or rights to a continued relationship with, the Company (or any affiliate) in favor of any Participant or limit the ability of the Company (or any affiliate) to terminate, with or without cause, in its sole and absolute discretion, the employment of any Participant, subject to the terms of any written employment to which a Participant is a party.  In addition, nothing contained in the Plan or in any Award Agreement shall preclude any lawful action by the Company or the Board.  Status as an eligible person under the Plan shall not be construed as a commitment that any Award will be granted to the eligible person.

 

ARTICLE XIII
 MISCELLANEOUS

 

Section 13.01.                  Non-Exclusivity of Plan.  Nothing in the Plan shall limit or be deemed to limit the authority of the Board or the Committee to grant awards or authorize any other compensation, with or without reference to the Shares, under any other plan or independent authority.

 

Section 13.02.                  No Restriction on Corporate Powers.  The existence of the Plan and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting the Company’s capital stock or the rights thereof, the dissolution or

 

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liquidation of the Company or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding.

 

Section 13.03.                  No Fiduciary Duties.  Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company and any Participant or other person.

 

* * * * *

 

Approved and adopted by the shareholders of German American Bancorp, Inc. on May 16, 2019.

 

17Exhibit

EXHIBIT 10.1

May 15, 2019

Contura Energy, Inc. 
340 Martin Luther King Jr. Blvd. 
Bristol, TN 37620 
Attention:  Mark Manno
		
	Re:
	Financing Commitment

$555,000,000 Senior Secured Term Loan Facility 
Ladies and Gentlemen: 
Contura Energy, Inc., a Delaware corporation (the “Company” or “you”), has advised the entities, listed on Schedule I attached hereto (such entities on their own behalf or on behalf of certain of their affiliates, related and/or advised funds and/or managed accounts, as set forth on Schedule I, the “Commitment Parties” or “us” and each, a “Commitment Party”) that the Company requires financing (i) to refinance certain existing indebtedness of the Company and its subsidiaries, and (ii) to pay fees and expenses related to the financing contemplated by this letter (together with the Term Sheet (as defined below) and any and all other attachments and schedules hereto, this “Commitment Letter”). 
In connection with the foregoing you have requested that the Commitment Parties provide the Company with a senior secured term loan facility in the aggregate principal amount of $555,000,000 (the “Term Loan Facility”) substantially on the terms and conditions set forth in this Commitment Letter and the Outline of Terms and Conditions for Term Loan Facility attached hereto as Exhibit A (the “Term Sheet”).  The Commitment Parties are pleased to advise you of their several, but not joint, commitment to provide the principal amount of the Term Loan Facility set forth opposite such Commitment Party’s name on Schedule 1 hereto.  The commitment of the Commitment Parties to provide the Term Loan Facility is subject in all respects to satisfaction of the terms and conditions contained in this Commitment Letter and in the Term Sheet.  The consummation of the Term Loan Facility and all other transactions contemplated to occur on the Closing Date (as defined in the Term Sheet) are hereinafter referred to as the “Transactions”.  Capitalized terms used but not defined herein are used with the meanings assigned to them in the Term Sheet.
As consideration for the commitment of the Commitment Parties hereunder and the Commitment Parties’ agreement to perform the services described herein, the Company agrees to pay or cause to be paid the fees set forth in that certain fee letter, dated the date hereof and delivered herewith with respect to the Term Loan Facility (the “Fee Letter”), if and to the extent payable in accordance with the terms thereof.  Once paid, such fees shall not be refundable under any circumstances, except as otherwise contemplated by the Fee Letter.
By its execution hereof and its acceptance of the commitment contained herein, the Company agrees to indemnify and hold harmless the Commitment Parties, the Agent (as defined in the Term Sheet) any other entity that becomes a Lender as contemplated by the Term Sheet and each of their respective assignees, affiliates, management companies and managed funds, and each of their respective shareholders, directors, partners, members, officers, employees, agents, advisors and other representatives (each an 

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“Indemnified Party”) from and against any and all losses, claims, damages, liabilities or other reasonable and documented out-of-pocket expenses to which such Indemnified Party may become subject, insofar as such losses, claims, damages, liabilities (or actions or other proceedings commenced or threatened in respect thereof) or other expenses arise out of or in connection with or result from, this Commitment Letter, the Fee Letter or the extension of the Term Loan Facility contemplated by this Commitment Letter, or in any way arise from any use or intended use of this Commitment Letter or the proceeds of the Term Loan Facility contemplated by this Commitment Letter, and the Company agrees to reimburse each Indemnified Party for any legal or other expenses incurred in connection with investigating, defending or participating in any such loss, claim, damage, liability or other expenses or action or other proceeding (whether or not such Indemnified Party is a party to any action or proceeding out of which indemnified expenses arise) (but limited, in the case of legal fees and expenses, to the reasonable, documented and invoiced out-of-pocket fees and expenses of one counsel, representing all of the Indemnified Parties, taken as a whole, and of a single local counsel in each appropriate jurisdiction (and, in the case of a potential or actual conflict of interest, one additional conflicts counsel for the affected Indemnified Parties)), but excluding therefrom all expenses, losses, claims, damages and liabilities which are determined in a final, non-appealable decision of a court of competent jurisdiction to (x) have resulted from the bad faith, gross negligence or willful misconduct of such Indemnified Party (or such Indemnified Party’s assignees, affiliates, management companies and managed funds, and any of their respective shareholders, directors, partners, members, officers, employees, agents, advisors and other representatives), (y) result from a material breach of such Indemnified Party’s obligations hereunder or under any other Loan Document or (z) have arisen out of or in connection with any claim, litigation, loss or proceeding not involving an act or omission of the Borrower or any other Loan Party and that is brought by an Indemnified Party against another Indemnified Party (other than any claims against an Indemnified Party in its capacity or in fulfilling its role as an administrative agent or arranger or any similar role under this Commitment Letter or any claims arising out of any act or omission of the Borrower or any of other Loan Party).  Notwithstanding the foregoing, this paragraph applies to each Commitment Party solely in its capacity as a Commitment Party or a Lender or as an investment manager or advisor to certain of its affiliates or managed funds that shall be Commitment Parties or Lenders, and not as a shareholder or in any other capacity in relation to the Company.  In the event of any litigation or dispute involving this Commitment Letter or the Term Loan Facility, no Commitment Party, Agent or Lender shall be responsible or liable to the Company or any other person (including the Borrower or Guarantor (as defined in the Term Sheet)), and neither the Company nor any Guarantor shall be responsible or liable to any Commitment Party, Agent, Lender or any other person, in each case for any special, indirect, consequential, incidental or punitive damages.
In addition, the Company agrees to reimburse the Commitment Parties for all reasonable fees and expenses (the “Expenses”) incurred by or on behalf of the Commitment Parties in connection with the negotiation, preparation, execution and delivery of this Commitment Letter, the Fee Letter, the Term Sheet, any related fee letter, and any and all definitive documentation relating hereto and thereto (limited, in the case of legal fees and expenses, to the reasonable and documented out-of-pocket fees and expenses of one counsel to the Commitment Parties taken as a whole and of a single local counsel in each appropriate jurisdiction).
The Company, on behalf of itself, the Borrower and the Guarantors represents and warrants that (i) all written information (other than the Projections (as defined below)) and other materials concerning the Company or any Guarantor, (collectively, the “Information”) which has been, or is hereafter, made available by, or on behalf of the Company or any Guarantor or any of their respective representatives, is, or when delivered will be, when considered as a whole, complete and correct in all material respects and does not, or will not when delivered, contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements contained therein not misleading in light of the circumstances under which such statement has been made and (ii) to the extent that any such Information contains projections 

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and other forward-looking materials (the “Projections”), such projections were prepared in good faith on the basis of (A) assumptions, methods and tests stated therein which are believed by the Company to be reasonable and (B) information believed by the Company to have been accurate based upon the information available to the Company at the time such projections were furnished to the Commitment Parties, it being understood that actual results may vary materially from the Projections.  The Company agrees that if at any time prior to the Closing Date, any of the representations in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations were being made, at such time, then the Company will promptly supplement, or cause to be supplemented, the Information and Projections so that such representations will be correct in all material respects under those circumstances.
This Commitment Letter is delivered to the Company upon the condition that neither the existence of this Commitment Letter, the Term Sheet, or the Fee Letter, nor any of their contents, or the identity of any of the Commitment Parties shall be disclosed, directly or indirectly, by the Company or any of their respective affiliates, except (a) as may be compelled to be disclosed in a judicial or administrative proceeding or as otherwise required by law (in which case you agree, to the extent permitted by law, to inform us promptly in advance thereof), (b) on a confidential and “need to know” basis, solely to the directors, officers, employees, advisors and agents of the Company and its subsidiaries, (c) as may be required by the rules, regulations, schedules and forms of the Securities and Exchange Commission in connection with any filings with the Securities and Exchange Commission, (d) if the Commitment Parties consent in writing to such proposed disclosure, (e) you may disclose the Term Sheet to bona-fide potential Lenders and to rating agencies in connection with obtaining, maintaining or updating (as applicable) ratings for the Borrower and the Term Loan Facility, (f) you may disclose the aggregate fee amounts contained in the Fee Letter as part of Projections, pro forma information or a generic disclosure of aggregate sources and uses related to fee amounts related to the Transactions to the extent customary or required in offering and marketing materials for the Term Loan Facility or in any public filing relating to the Transactions, (g) you may disclose this Commitment Letter, the Fee Letter and the contents hereof and thereof to the extent this Commitment Letter, the Fee Letter or the contents hereof or thereof, as applicable, become publicly available other than by reason of disclosure by you in breach of this Commitment Letter, (h) you may disclose, on a confidential basis, the Fee Letter and the contents thereof after the Closing Date for customary accounting purposes, including for deferred financing costs (including to the auditors of the Company) and (i) you may disclose this Commitment Letter, the Fee Letter and the contents hereof and thereof to the extent necessary to enforce your rights and remedies hereunder or thereunder.  In addition, the Company agrees that it will (i) consult with the Commitment Parties prior to the making of any filing in which reference is made to the commitments contained herein, and (ii) obtain the prior approval of the Commitment Parties before releasing any public announcement, filing or other release in which reference is made to any Commitment Party or any Commitment Party’s commitment contained herein.  Your obligations under this paragraph with regard to this Commitment Letter (but not the Fee Letter) shall terminate one year from the termination of the Commitment Letter in accordance with its terms.  The Company acknowledges that the Commitment Parties and their affiliates may now or hereafter provide financing or obtain other interests in other companies in respect of which the Company or its affiliates may be business competitors, and that the Commitment Parties and their affiliates will have no obligation to provide to the Company or any of its affiliates any confidential information obtained from or in respect of such other companies.
Each Commitment Party and its affiliates will use all confidential information provided to it or such affiliates by or on behalf of you hereunder solely for the purpose of providing the services which are the subject of this Commitment Letter and shall treat confidentially all such information, except (a) as may be compelled to be disclosed in a judicial or administrative proceeding or as otherwise required by law (in which case such Commitment Party agrees, to the extent permitted by law, to inform you promptly in advance thereof), (b) upon the request or demand of any regulatory authority having jurisdiction over such 

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Commitment Party or any of its affiliates (in which case such Commitment Party agrees to inform you promptly thereof prior to such disclosure to the extent practicable, unless such Commitment Party is prohibited by applicable law from so informing you, or except in connection with any request as part of a regulatory examination or routine audit), (c) to the extent that such information becomes publicly available other than by reason of improper disclosure by such Commitment Party or any of its affiliates in violation of this Commitment Letter, (d) to the extent that such information is received by such Commitment Party from a third party that is not to such Commitment Party’s knowledge subject to confidentiality obligations to you, (e) to the extent that such information is independently developed by such Commitment Party so long as not based on information obtained in a manner that would otherwise violate this provision, (f) on a confidential and “need to know” basis, solely to the directors, officers, employees, advisors, affiliates and agents (collectively, the “Representatives”) of each Commitment Party and its affiliates (provided that such Commitment Party shall be responsible for its affiliates’ and Representatives’ compliance with this paragraph), (g) to prospective Lenders, participants or assignees or any potential counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or any of its subsidiaries or any of their respective obligations, in each case who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph) or (h) to ratings agencies in connection with the Transactions, subject to our prior notification to you; provided, that (i) the disclosure of any such information to any Lenders or prospective Lenders or participants or assignees or prospective participants or assignees referred to above shall be made subject to the acknowledgement and acceptance by such Lender or prospective Lender or assignee or participant or prospective assignee or participant that such information is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you and such Commitment Party) in accordance with customary market standards for dissemination of such type of information and (ii) no disclosure shall be made by such Commitment Party to any Disqualified Institution except to the extent permitted under this paragraph.  “Disqualified Institution” means (i) any financial institutions and entities identified by the Company to the Commitment Parties by name in writing on or prior to the date hereof, (ii) any competitors of the Loan Parties identified by the Company to the Commitment Parties by name in writing from time to time and (iii) affiliates of the foregoing that are readily identifiable solely on the basis of similarity of their names; provided that (x) in the case of clauses (ii) and (iii) herein, “Disqualified Institutions” shall not include any bona fide diversified debt fund or a diversified investment vehicle that is engaged in the making, purchasing, holding or otherwise investing in, acquiring or trading commercial loans, bonds and similar extensions of credit in the ordinary course and (y) updates to the Disqualified Institution schedule shall not retroactively invalidate or otherwise affect any (A) assignments or participations made to, (B) any trades entered into with or (C) information provided to any person before it was designated as a Disqualified Institution.  Each Commitment Party’s obligations under this paragraph shall terminate one year from the termination of this Commitment Letter and shall otherwise automatically terminate and be superseded by the confidentiality provisions in the definitive documentation relating to Term Loan Facility upon the execution and delivery of the definitive documentation therefor.  The foregoing provisions as they relate to a Disqualified Institution are subject to the review and agreement of the Agent and its counsel.
You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between you and the Commitment Parties is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter, irrespective of whether the Commitment Parties have advised or are advising you on other matters, (b) the Commitment Parties, on the one hand, and you, on the other hand, have an arm’s length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty to you or your affiliates on the part of the Commitment Parties, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter, (d) you have been advised that the Commitment Parties are engaged in a broad range of transactions that may involve interests that differ from your interests and that the Commitment Parties have no obligation to disclose such interests and transactions to you, (e) 

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you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate, (f) each Commitment Party has been, is, and will be acting solely as a principal and, except as otherwise expressly agreed in writing by it and the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for you, any of your affiliates or any other person or entity, and (g) none of the Commitment Parties has any obligation to you or your affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein or in any other express writing executed and delivered by such Commitment Party and you or any such affiliate.  You agree that you will not assert any claim relating to the transaction contemplated hereby against any Commitment Party based on an alleged breach of agency or fiduciary duty.  Notwithstanding the foregoing, this paragraph applies to each Commitment Party solely in its capacity as a Commitment Party or Lender or as investment manager or advisor to certain of its affiliates or managed funds that shall be Commitment Parties or Lenders, and not as a shareholder or in any other capacity in relation to the Company.
Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of any state or federal court of the United States of America, in each case sitting in the Borough of Manhattan in New York, and the respective appellate courts thereof, as to any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and agrees that all claims in respect of any such action or proceeding shall be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court, and further agrees to not commence any such suit, action or proceeding other than in such New York State court or, to the extent permitted by law, in such Federal court, (b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby in any court in which such venue may be laid in accordance with clause (a) of this sentence, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Service of any process, summons, notice or document by registered mail or overnight courier addressed to any of the parties hereto at the addresses set forth above shall be effective service of process against such party for any suit, action or proceeding brought in any such court.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER, THE FEE LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.
Each of the Commitment Parties hereby notifies you that, pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law on October 26, 2001) (the “PATRIOT Act”), it is required to obtain, verify and record information that identifies the Borrowers and each Guarantor, which information includes names, addresses, tax identification numbers and other information that will allow such Lender to identify the Borrowers and each Guarantor in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act and is effective for the Commitment Parties and each Lender.
The offer made by the Commitment Parties in this Commitment Letter shall expire, unless otherwise agreed by the Commitment Parties in writing, at 9:00 a.m. (New York City time) on May 15, 2019, unless prior thereto the Commitment Parties have received a copy of this Commitment Letter, signed by the Company accepting the terms and conditions of this Commitment Letter and the Term Sheet.  The commitment by the Commitment Parties to provide the Term Loan Facility shall expire at 5:00 p.m. (New York City time) on July 31, 2019, unless prior thereto, (i) the Commitment Parties holding a majority of the commitments 

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in respect of the Term Loan Facility (the “Majority Commitment Parties”) have agreed to extend such time (which extension may be up to 30 days) or (ii) the Loan Documents (as defined in the Term Sheet) shall have been agreed to in writing by all parties and the conditions set forth therein shall have been satisfied (it being understood that the indemnification, fee, Expenses, absence of fiduciary relationship, jurisdiction and confidentiality provisions contained herein and in the Fee Letter shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the commitments hereunder; provided, that your obligations under this Commitment Letter, other than those relating to confidentiality, shall automatically terminate and be superseded by the definitive documentation relating to the Term Loan Facility upon the initial funding under the Term Loan Facility, and you shall be released from all liability in connection therewith at such time).
This Commitment Letter, the Fee Letter and the commitments hereunder shall not be assignable by any party hereto (other than by a Commitment Party to one or more of its affiliates, related or advised funds, managed accounts, or management companies) without the prior written consent of each other party hereto (and any attempted assignment without such consent shall be null and void).  This commitment letter may be amended, modified or waived only in a writing signed by each of the parties hereto.  This Commitment Letter, including the attached Term Sheet, and the Fee Letter (i) supersedes all prior discussions, agreements, commitments, arrangements, negotiations or understandings, whether oral or written, of the parties with respect thereto, (ii) shall be governed by the law of the State of New York, without giving effect to the conflict of laws provisions thereof, (iii) shall be binding upon the parties and their respective successors and permitted assigns, (iv) may not be relied upon or enforced by any other person or entity, and (v) may be signed in multiple counterparts and delivered by facsimile or other electronic transmission, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
Each Commitment Party hereby acknowledges and affirms that: (a) it has acted independently from each other Commitment Party in entering into this Commitment Letter and will continue to so act in exercising its rights and performing its obligations during the term hereof, irrespective of any joint representation by any adviser or joint participation in any transaction in respect of the Company; and (b) it is not acting as a “group” with the other Commitment Parties and therefore the Commitment Parties do not collectively constitute a “person” within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

 

[Remainder of Page Intentionally Left Blank.]

6

    

Should the terms and conditions of the offer contained herein meet with your approval, please indicate your acceptance by signing and returning a copy of this letter to the Commitment Parties.  
Very truly yours,

	
				
	 
	 
	 
	 

    

Accepted and agreed to as of 
the date first above written:
CONTURA ENERGY, INC. 

By /s/ C. Andrew Eidson                    
     Name: C. Andrew Eidson 
     Title:  EVP - CFO

	
					
	 
	 
	      [SIGNATURE PAGE TO COMMITMENT LETTER]

	 
	 

    

Exhibit A
CONTURA ENERGY, INC.
Outline of Terms and Conditions for Term Loan Facility
This Outline of Terms and Conditions for Term Loan Facility is part of the commitment letter, dated May 15, 2019 (the “Commitment Letter”), addressed to the Company by the Commitment Parties and is subject to the terms and conditions of the Commitment Letter.  Capitalized terms used herein shall have the meanings set forth in the Commitment Letter unless otherwise defined herein.
	
		
	Borrower:
	The Company (the “Borrower”).

	Guarantors:
	Consistent with the Documentation Principles.  Initially, each entity that, as of the date hereof, guarantees the Amended and Restated Credit Agreement, dated as of November 9, 2018 (as amended and in effect on the date hereof, the “Existing Term Loan Credit Agreement”), among the Borrower, as initial borrower, the lenders party thereto, and Jefferies Finance LLC, as administrative agent and collateral agent  (the “Guarantors” and, together with the Borrower, each a “Loan Party” and collectively, the “Loan Parties”).

	Agent:
	A financial institution determined by the Lenders and reasonably acceptable to the Borrower will act as administrative agent and collateral agent for the Lenders (in such capacity, together with its successors and assigns, the “Agent”).

	Lenders:
	A syndicate of lenders (each a “Lender” and collectively, the “Lenders”) arranged by the Commitment Parties; provided that prior to the Closing Date  up to $100 million of the Term Loan Facility may, at the option of the Borrower and subject to applicable laws, be allocated to existing shareholders of the Borrower that are not the Commitment Parties, with the respective amounts of the Term Loan Facility allocated thereto acceptable to the Borrower after consultation with the Commitment Parties.

	Term Loan Facility:
	A Term Loan Facility in an aggregate principal amount of $555,000,000 (the “Loan”).
The Loan shall be made in a single drawing on the Closing Date.  Any portion of the Loan that is repaid or prepaid may not be reborrowed.
The borrowing of the Loans on the Closing Date shall be subject to the conditions precedent referred to in the Section entitled “Conditions Precedent” below. 

	Closing Date:
	The first date on which all definitive loan documentation satisfactory to the Lenders (the “Loan Documents”) is executed by the Loan Parties, the Lenders, the Agent and the other persons parties thereto, and all conditions precedent set forth in such Loan Documents shall have been satisfied (the “Closing Date”).  

	Use of Proceeds:
	The Loan under the Term Loan Facility shall be used to (a) to repay in full all outstanding amounts under the Existing Term Loan Credit Agreement and (b) to pay fees and expenses relating to the Term Loan Facility and the transactions contemplated thereby.

	Original Issue Discount (“OID”):
	The Loan under the Term Loan Facility will be issued on the Closing Date to the Lenders participating in the Term Loan Facility at a price of 97.0% of their principal amount.

	
		
	Interest:
	The Loan shall bear interest at a rate per annum equal to (a) on or prior to the second (2nd) anniversary of the Closing Date, LIBOR plus 7.00%, and (b) thereafter, LIBOR plus 8.00%, in each case payable in arrears in cash at the end of each interest period (but not less frequently than quarterly).
“LIBOR” means the rate of interest determined by the Agent in accordance with its customary procedures, to be the rate at which dollar deposits are offered to major banks in the London interbank market for interest periods of 1, 2, or 3 months, as selected by the Borrower, adjusted by the reserve percentage prescribed by governmental authorities as determined by the Agent, provided that at no time shall LIBOR be less than 2.00%.

	 
	All interest and fees shall be computed on the basis of a year of 360 days for the actual days elapsed.  All interest shall accrue from the Closing Date and shall be payable in cash at the end of each interest period.  LIBOR shall be subject to customary provisions and shall contain “LIBOR fallback” provisions to be agreed upon.
If any event of default shall occur and be continuing, interest shall accrue at a rate per annum equal to 2.00% in excess of the rate of interest otherwise in effect and shall be payable on demand.  

	Maturity / Term:
	The Term Loan Facility shall terminate and the Loan and all other obligations outstanding under the Term Loan Facility shall be payable in full on the fifth (5th) anniversary of the Closing Date (the “Maturity Date”).  

	Amortization:
	The Term Loan Facility shall amortize by 0.25% of the original principal amount of the Loan, each quarter commencing with the first full quarter after the Closing Date, and continuing each quarter thereafter; provided, that, the final installment shall be equal to the principal balance of the Loan then outstanding.

	Optional Prepayments:
	The Borrower shall not be permitted to optionally prepay the Loan on or prior to the date that is six (6) months after the Closing Date except in connection with a Fundamental Change.  Thereafter, the Borrower may prepay the Loan in whole or in part without premium or penalty, subject to customary notice requirements and breakage fees. As used herein the term “Fundamental Change” means any merger or consolidation of the Borrower with or into another entity or person, or disposition of all or substantially all of the assets (whether now owned or hereafter acquired) of the Borrower and its subsidiaries, taken as a whole, to or in favor of any entity or person, in each case, as part of a change of control transaction.

	Mandatory Prepayments:
	All principal and interest on the Loan will be immediately repayable upon the occurrence of a Fundamental Change.  In addition, (i) asset sale proceeds (subject to exceptions to be agreed upon which shall be more restrictive that the existing credit facility and subject to a 6 month re-investment right capped at $50,000,000 for the life of the facility); and (ii) extraordinary receipts (to be defined in the Loan Documents and to exclude up to $100 million of a tax refund and $130 million restricted cash release previously identified by the Borrower to the Commitment Parties), in each case, will be applied first to all accrued and unpaid interest as of such date and thereafter as a mandatory prepayment of the then outstanding principal amount of the Loan.

	Ranking:
	Consistent with the Documentation Principles, the Loan will rank pari passu with all senior indebtedness of the Loan Parties, senior to all subordinated indebtedness of the Loan Parties, and effectively senior to (i) all unsecured indebtedness of the Loan Parties, and (ii) subject to permitted liens that are permitted to have priority over the liens securing the obligations under the Term Loan Facility pursuant to the terms of the Loan Documents, all other secured indebtedness of the Loan Parties.

	
		
	Security / Collateral:
	All obligations of the Loan Parties to the Lenders shall be secured by the following (the “Collateral”):  (a) a perfected, first priority lien on and security interest in all of the Loan Parties now owned and hereafter acquired assets (other than the Working Capital Assets (as defined below)), including, without limitation, all real property, fixtures, equipment, documents, general intangibles, payment intangibles, contract rights, chattel paper, instruments, investment property, commercial tort claims, trademarks, copyrights, patents and other intellectual property, deposit accounts, cash and cash equivalents and all other assets and property of the Loan Parties, real and personal, tangible and intangible, including, without limitation, all of the capital stock or other equity interests of each subsidiary of the Borrower, and all products and proceeds thereof, and (b) a perfected, second priority lien on and security interest in (subject solely to a first priority lien in favor of the collateral agent for that certain Amended And Restated Asset-Based Revolving Credit Agreement, dated as of November 9, 2018 (as amended prior to the date hereof, the “Existing ABL Credit Agreement”)) all of the Loan Parties’ now owned and hereafter acquired, and wherever located, accounts, inventory, and other working capital assets and all products and proceeds thereof (the “Working Capital Assets”).  The scope of the Collateral and the granting and perfection of the Lenders’ security interest therein shall be subject to the exceptions and thresholds consistent with the Existing Term Loan Credit Agreement.

	Definitive Documentation
	The definitive documentation for the Term Loan Facility (the “Documentation”) will contain representations, warranties, covenants and events of default which will be consistent with the Existing Term Loan Credit Agreement (and related security, collateral and guarantee agreements executed and/or delivered in connection therewith, in each case, as in effect on the date hereof) with changes and modifications that reflect the terms of this Term Sheet and other changes and modifications mutually agreed and other consequential changes to be negotiated in good faith (collectively, the “Documentation Principles”). 

	Conditions Precedent:
	The obligation of the Lenders to make the Loan or other financial accommodations under the Term Loan Facility will be subject solely to the following conditions precedent:

	 
	(a)   Negotiation, execution and delivery of the Loan Documents and the satisfaction of the conditions precedent contained therein, which Loan Documents shall be prepared by counsel to Commitment Parties and shall be in form and substance reasonably satisfactory to the Commitment Parties, the Agent and the Loan Parties.

	 
	(b)   No material adverse change since the date of the Commitment Letter with respect to the condition, financial or otherwise, business, operations, assets, liabilities or prospects of the Borrower and its subsidiaries shall have occurred.

	 
	(c)   The Agent shall have been granted a perfected lien on all Collateral, with the priority set forth under the heading “Security/Collateral,” and shall have received UCC, tax and judgment lien searches and other appropriate evidence, evidencing the absence of (i) any other liens on the Collateral, other than Permitted Liens (as defined in the Loan Documents), and (ii) any secured indebtedness, other than indebtedness in respect of the Existing ABL Credit Agreement.  

	 
	(d)   Customary opinions from the Loan Parties’ counsel (including, without limitation, local counsel) as to such matters as the Commitment Parties and their counsel may reasonably request.

	
		
	 
	(e)   Each Loan Party shall be in good standing in its respective jurisdiction of organization and duly qualified to do business in each other jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification.  

	 
	(f)   The Agent shall have received customary insurance certificates; such insurance certificates to include liability insurance for which the Agent will be named as an additional insured and property insurance with respect to the Collateral for which the Agent will be named as a lender’s loss payee.

	 
	(g)   All material required governmental, shareholder and third party approvals, consents, licenses, franchises and permits in connection with the Term Loan Facility shall have been obtained and remain in full force and effect.  

	 
	(h)   There shall exist no claim, action, suit, investigation, litigation or proceeding, pending or threatened in any court or before any arbitrator or governmental instrumentality which relates to the Term Loan Facility or which, in the opinion of the Commitment Parties, has any reasonable likelihood of having a material adverse effect on (i) the condition (financial or otherwise), operations, performance, properties, assets, liabilities or business of the Loan Parties, (ii) the ability of the Loan Parties to perform their obligations under the Loan Documents or (iii) the ability of the Lenders to enforce the Loan Documents.

	 
	(i)   The Existing Term Loan Credit Agreement shall be terminated, all amounts owed thereunder repaid in full and all liens and security interests thereunder shall be released concurrently with the funding of the Loan (or arrangements in respect thereof mutually satisfactory to the Borrower and the Commitment Parties  shall have been made).  

	 
	(j)   The Agent shall have received (i) a solvency certificate, in form and substance reasonably satisfactory to the Commitment Parties, from an authorized financial officer of Borrower, confirming the solvency of the Loan Parties after giving effect to the transactions contemplated by the Commitment Letter and this Term Sheet and (ii) customary payoff letters, evidence of authority, officers’ certificates, good standing certificates and a borrowing request. 

	 
	(k)   The Loan Parties shall have paid all fees and expenses then owing to the Agent, Commitment Parties and the Lenders, including, without limitation, all OID, commitment fees, audit fees, attorneys’ fees, search fees, title fees and documentation and filing fees.

	 
	(l)   [reserved]  

	 
	(m)   The Agent will have entered into a intercreditor agreement with the collateral agent for the Existing ABL Credit Agreement in form and substance reasonably acceptable to the Commitment Parties and the Agent. 
(n)         The Borrower shall have used its commercially reasonable efforts to procure public ratings for the Term Loan Facility (but no specific ratings) from each of Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”).

	
		
	 
	(o)   The Agent shall have received at least three (3) business days prior to the Closing Date all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act, that has been reasonably requested by the Agent, the Commitment Parties and the Lenders at least ten (10) business days prior to the Closing Date.

	 
	(p)   The accuracy in all material respects (and in all respects if qualified by materiality) of the representations and warranties in the Loan Documents (other than the “10b-5” or disclosure representations and warranties, in each case, to the extent relating to the Projections).

	 
	 

	 
	(q)          There being no default or event of default in existence at the time of, or after giving effect to, the extension of credit on the Closing Date.

	 
	 

	Representations 
And Warranties:
	The Loan Documents will contain such representations and warranties by Borrower and its subsidiaries consistent with the Documentation Principles.

	Affirmative Covenants:
	The Loan Documents will contain affirmative covenants consistent with the Documentation Principles.

	Negative Covenants:
	The Loan Documents will contain such negative covenants consistent with the Documentation Principles; provided that (i) dividends and equity repurchases by the Borrower will be permitted if (a) no default or event of default then exists, and (b) total leverage after giving effect to such dividend or equity repurchase is less than 3x, and (ii) the debt incurrence covenant will not allow more than $50 million of incremental indebtedness.

	Events of Default:
	The Loan Documents will contain such events of default (with customary exceptions, materiality, notice and grace provisions and other qualifications to be agreed) as are consistent with the Documentation Principles.

	Yield Protection and Taxes:
	Consistent with the Documentation Principles, the Loan Documents shall contain customary provisions (a) protecting the Lenders against increased costs or loss of yield resulting from changes in reserve, capital adequacy and other requirements of law (provided that (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or issued in connection therewith or in implementation thereof and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or United States regulatory authorities, shall in the case of each of clauses (i) and (ii), be deemed to constitute a change in requirements of law, regardless of the date enacted, adopted, issued, or implemented), in each case, subject to customary limitations and exceptions and (b) indemnifying the Lenders for “breakage costs” incurred in connection with, among other things, any prepayment of a Loan on a day other than the last day of an interest period with respect thereto.
Consistent with the Documentation Principles, the Loan Documents shall contain a tax gross up to afford the Lenders change of law protection.

	
		
	Indemnity and Expenses: 
	Consistent with the Documentation Principles, the Borrower shall pay (a) the expense and indemnification obligations as set forth in the Commitment Letter, and (b) all other reasonable and documented out-of-pocket expenses of the Agent and the Lenders within 10 days of a written demand therefor (but limited, in the case of legal fees and expenses, to the reasonable out-of-pocket fees, disbursements and other charges of one counsel to the Agent and one counsel to the Lenders, taken as a whole, and, solely in the event of any actual or potential conflict of interests, one additional counsel for each group of similarly-situated Lenders, and, if necessary, of one local counsel in any relevant jurisdiction to all such persons, taken as a whole) in connection with the enforcement of the Loan Documents.
Consistent with the Documentation Principles, the Agent and the Lenders (and their affiliates, management companies and managed funds and each of their respective shareholders, directors, partners, members, officers, employees, agents, advisors and other representatives) (each, an “indemnified person”) will be indemnified for and held harmless against, any losses, claims, damages and liabilities (but limited, in the case of legal fees and expenses, to the reasonable, documented and invoiced out-of-pocket fees and expenses of one counsel, representing all of the indemnified persons, taken as a whole, and of a single local counsel in each appropriate jurisdiction (and, in the case of a potential or actual conflict of interest, one additional conflicts counsel for the affected indemnified persons)) incurred in respect of the Term Loan Facility or the use or the proposed use of proceeds thereof, except to the extent they are determined in a final, non-appealable decision of a court of competent jurisdiction to (x) have resulted from the bad faith, gross negligence or willful misconduct of such indemnified person (or such indemnified person’s assignees, affiliates, management companies and managed funds, and any of their respective shareholders, directors, partners, members, officers, employees, agents, advisors and other representatives), (y) result from a material breach of such indemnified person’s obligations hereunder or under any other Loan Document or (z) have arisen out of or in connection with any claim, litigation, loss or proceeding not involving an act or omission of the Borrower or any other Loan Party and that is brought by an indemnified person against another indemnified person (other than any claims against an indemnified person in its capacity or in fulfilling its role as an administrative agent or arranger or any similar role under this Commitment Letter or any claims arising out of any act or omission of the Borrower or any of other Loan Party).  None of the Loan Parties, indemnified persons or any of their respective affiliates, management companies and managed funds and each of their respective shareholders, directors, partners, members, officers, employees, agents, advisors and other representatives shall be liable for any special, indirect, consequential or punitive damages in connection with the Term Loan Facility (including the use or intended use of the proceeds of the Term Loan Facility).

	 
	 

	Confidentiality:
	Consistent with the Documentation Principles, the Loan Documents will contain customary provisions limiting the disclosure by the Lender of confidential information of the Loan Parties.

	 
	 

	Governing Law; Jurisdiction:
	All documentation in connection with the Term Loan Facility shall be governed by the laws of the State of New York. The Loan Parties will submit to the non-exclusive jurisdiction and venue of the federal and state courts of the State of New York sitting in New York county, and shall waive any right to trial by jury.

	
		
	Assignments, Participations:
	Consistent with the Documentation Principles, the Lenders may assign all or, in amounts to be mutually agreed, any part of their respective shares of the Term Loan Facility to their affiliates, related funds or managed accounts, or one or more banks, financial institutions or other persons (but not to any natural person) that are “eligible assignees” (to be defined in the Loan Documents and to exclude any Disqualified Institution) which are acceptable to the Agent and the Borrower, each such consent not to be unreasonably withheld, conditioned or delayed; provided such consent of the Agent shall not be required if such assignment is made to another Lender or an affiliate, related fund or managed account of a Lender; provided further, (x) no consent of the Borrower will be required (a) if such assignment is made to another Lender or an affiliate, related fund or managed account of a Lender or (b) after the occurrence and during the continuance of an event of default and (y) the Borrower shall be deemed to have consented to any such assignment unless they shall object thereto by written notice to the Agent within ten (10) business days after having received notice thereof.  Upon such assignment, such affiliate, bank, financial institution or entity will become a Lender for all purposes under the Loan Documents.  Assignments made to another Lender or an affiliate, related fund or managed account of a Lender will not be subject to a minimum assignment amount.  Assignor will pay a $3,500 fee to the Agent upon each assignment, subject to exceptions as may be agreed upon with the Agent in the Loan Documents.
Consistent with the Documentation Principles, the Lenders will be permitted to sell participations in the Loan and commitments without restriction (provided that no participation may be sold to any Disqualified Institution).  Voting rights of participants will be limited to matters in respect of (a) any increase in commitments of such participant, (b) any reduction of principal, interest (but not default interest) or fees payable to such participant, (c) any extension of final maturity or scheduled amortization of the Loan or commitments in which such participant participates and (d) any release of all or substantially all of the Collateral or the value of the guarantees provided by the Guarantors taken as a whole (other than in connection with permitted asset sales).

	Amendments and Waivers:
	Amendments and waivers of the provisions of the Loan Documents will require the approval of the Required Lenders.
“Required Lenders” shall mean Lenders holding commitments and/or outstandings (as appropriate) representing more than 50% of the aggregate commitments and outstandings under the Term Loan Facility.
Notwithstanding the foregoing, (a) the consent of each Lender directly affected thereby will be required with respect to (i) any increase in commitment amounts, (ii) any reduction of principal, interest (other than default interest) or fees, (iii) any extension of scheduled payments of the Loan (including at final maturity) or times for payment of interest (other than default interest) or fees, and (iv) any modification to the pro rata sharing or payment provisions, assignment provisions or the voting percentages; and (b) the consent of all of the Lenders will be required with respect to any release of all or substantially all of the Collateral or the value of the guarantees provided by the Guarantors taken as a whole.

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