Document:

exhibit106vivintgroupinc

                                                                     Exhibit 10.6                                     FORM OF                     RESTRICTED STOCK UNIT AGREEMENT                                     under the                                VIVINT GROUP, INC.                            AMENDED AND RESTATED                          2013 OMNIBUS INCENTIVE PLAN                                                      THIS AGREEMENT (the “Agreement”) by and between Vivint Group, Inc., a  Delaware corporation (the “Company”), and the individual named on the signature page hereto  (the “Participant”) is made as of the date set forth on such signature page. Capitalized terms not  otherwise defined herein shall have the same meanings as in the Plan.                                   RECITALS:               WHEREAS, the Company has adopted the Amended and Restated 2013 Omnibus  Incentive Plan attached hereto as Exhibit A, and as may be amended or supplemented from time  to time in accordance with the terms thereof (the “Plan”), the terms of which are hereby  incorporated by reference and made a part of this Agreement; and               WHEREAS, the Committee (as defined in the Plan) has determined that it would  be in the best interests of the Company and its stockholders to grant the Restricted Stock Units  provided for herein to the Participant pursuant to the Plan and the terms set forth herein.               NOW, THEREFORE, in consideration of the mutual covenants hereinafter set  forth, the parties agree as follows:               1.    Grant of Restricted Stock Units.                 (a) Grant. The Company hereby grants to the Participant on the date of grant set  forth on the signature page hereto (the “Date of Grant”) Restricted Stock Units, on the terms and  conditions hereinafter set forth, with respect to the number of shares of Common Stock set forth  on the signature page hereto (the “RSU Award”), subject to adjustment as set forth in the Plan  and this Agreement.                (b) Vesting.  Subject to the Participant’s continued Employment through the  applicable vesting date, the RSU Award shall vest and become exercisable with respect to one- third (1/3) of the Restricted Stock Units on each of the first three anniversaries of the date  specified as the “Vesting Start Date” on the signature page hereto; provided, that upon a Change  of Control prior to the applicable vesting date, all then-unvested Restricted Stock Units shall  become fully vested immediately prior to the effective time of such Change of Control.  For the  avoidance of doubt, an initial public offering of the Company or its affiliates shall not be  considered a Change of Control. Upon a Termination for any reason all unvested Restricted  Stock Units shall be forfeited for no consideration.  Any Restricted Stock Unit which has become  vested in accordance with the foregoing shall be referred to as a “Vested Restricted Stock Unit”,  and any Restricted Stock Unit which is not a Vested Restricted Stock Unit, an “Unvested  Restricted Stock Unit”.    001366-0001-15794-Active.25831013.6   

 

                                                                             2                (c) Settlement of Restricted Stock Units.                      (i)   The provisions of Section 9(d)(ii) of the Plan are incorporated        herein by reference and made a part hereof and, in accordance therewith, subject to        Section 2(b)(i), any Vested Restricted Stock Units shall be settled as soon as reasonably        practicable (and, in any event, within two and one-half months) following the earliest to        occur of (x) the termination of the Participant’s Employment by the Company or the        Participant for any reason other than (1) by the Company for Cause or (2) by the        Participant at a time when grounds exist for a termination with Cause, (y) a Change of        Control and (z) the fifth (5th) anniversary of the Date of Grant.                       (ii)  Upon the settlement of a Vested Restricted Stock Unit, the        Company shall (or shall cause 313 Acquisition LLC, a Delaware limited liability        company (“Parent”) to) pay to the Participant an amount equal to one share of Common        Stock.  As determined by the Committee, the Company or Parent shall pay such amount        in (w) cash, (x) shares of Common Stock valued at Fair Market Value, (y) shares or units        of capital stock of Parent or one of Parent’s majority-owned Subsidiaries that beneficially       owns, directly or indirectly, a majority of the voting power of the Company’s capital       stock (“Alternative Equity”) valued at Fair Market Value (measured as though all        references to Common Stock in such definition of “Fair Market Value” in the Plan were        replaced with Alternative Equity) or (z) any combination thereof.  For the avoidance of        doubt, it is the expectation of the Committee that the RSU Award will be settled in shares        of Common Stock or Alternative Equity issued by Parent or another majority parent        entity to the Company. Any fractional shares of Common Stock or Alternative Equity        may be settled in cash, at the Committee’s election.                       (iii) Notwithstanding anything in this Agreement to the contrary,        neither the Company nor Parent shall have any obligation to issue or transfer any shares        of Common Stock or Alternative Equity as contemplated by this Agreement unless and        until such issuance or transfer complies with all relevant provisions of law.  As a        condition to the settlement of any portion of the RSU Award evidenced by this        Agreement, the Participant shall execute the Stockholders’ Agreement (provided that, if        the Participant is already a party to the Stockholders’ Agreement, then the shares of        Common Stock or Alternative Equity acquired as a result of the settlement of the RSU        Award shall automatically become subject to such agreement(s) without any further        action).               2.    Certain Sales Upon Termination of Employment.               (a) Put Option.                       (i)   Prior to a Public Offering, if the Participant’s Employment with        the Company, its Affiliates and its Subsidiaries is terminated (x) due to the death of the        Participant or (y) by the Company, its Affiliates and its and/or Subsidiaries as a result of        the Disability of the Participant, then the Participant and the Participant’s Permitted        Transferees (as defined in Section 8 hereof, and together with the Participant hereinafter        sometimes collectively referred to as the “Participant’s Family Group”) shall have the    001366-0001-15794-Active.25831013.6   

 

                                                                             3          right, subject to the provisions of Section 3 hereof, for 180 days following the later of (A)        the date that is 210 days after the date of termination of Participant’s Employment and        (B) the date that is six months and one day after the date on which the any Vested        Restricted Stock Units are settled, to sell to the issuer (the “Issuer”) of the shares of        Common Stock or Alternative Equity (as applicable, the “Issuer Equity”) (the “Put        Right”), and the Issuer shall be required to purchase (subject to the provisions of Section        3 hereof), on one occasion from each member of the Participant’s Family Group, all (but        not less than all) of the Issuer Equity acquired pursuant to the settlement of Vested        Restricted Stock Units then held by the Participant’s Family Group at a price equal to        Fair Market Value of such Issuer Equity (measured as of the date that the relevant        election to purchase such Issuer Equity is delivered (the “Repurchase Notice Date”)).  In        order to exercise its rights with respect to Issuer Equity pursuant to this Section 2(a)(i),        the Participant’s Family Group shall also be required to simultaneously exercise any        similar rights it may have with respect to any other Issuer Equity held by the Participant’s        Family Group in accordance with the terms of the agreements pursuant to which such        other Issuer Equity was acquired from the applicable Issuer.                       (ii)  If the Participant’s Family Group desires to exercise the Put Right,        the members of the Participant’s Family Group shall send one written notice to the        Company setting forth such members’ intention to collectively sell all of their Issuer        Equity pursuant to Section 2(a)(i), which notice shall include the signature of each        member of the Participant’s Family Group.  Subject to the provisions of Section 3(a), the        closing of the purchase shall take place at the principal office of the Company on a date        specified by the Company no later than the 60th day after the giving of such notice.               (b) Call Option.                      (i)   If the Participant’s Employment terminates for any reason or in the        event of the Participant’s engaging in a Competitive Activity, the Issuer shall have the        right and option, but not the obligation, to purchase any or all of the Issuer Equity held by        the Participant and the Participant’s Family Group, during either of the one-year periods       following each of (x) the date of termination of Participant’s Employment, (y) the date on       which a Competitive Activity occurs (or, if later, the date on which the Board has actual       knowledge thereof) or (z) the date that is six months and one day after the date on which       the Participant acquires such Issuer Equity pursuant to the settlement of a Vested       Restricted Stock Unit(or such later date as is necessary in order to avoid the application       of adverse accounting treatment to the Company) (the “Call Option”), in each case, at a        price determined as follows (it being understood that if Issuer Equity subject to        repurchase hereunder may be repurchased at different prices, the Issuer may elect to        repurchase only the portion of the Issuer Equity subject to repurchase hereunder at the        lower price):                     (A)   Death or Disability.  If the Participant’s Employment is terminated           (x) due to the death of the Participant or (y) by the Company and its Subsidiaries as a           result of the Disability of the Participant, then the purchase price will be Fair Market          Value of such Issuer Equity (measured as of the Repurchase Notice Date);    001366-0001-15794-Active.25831013.6   

 

                                                                             4                      (B)   Termination without Cause; Other Resignation. If the Participant’s           Employment is terminated (x) by the Company without Cause or (y) by the           Participant at a time when grounds do not exist for a termination with Cause, then the           purchase price will be Fair Market Value of the Issuer Equity (measured as of the           Repurchase Notice Date);                     (C)   Competitive Activity. In the event the Participant engages in           Competitive Activity not constituting a Restrictive Covenant Violation, then the           purchase price will be Fair Market Value of the Issuer Equity (measured as of the           Repurchase Notice Date).   The Call Option (except in the case of any event described in Section 2(b)(i)(B)) shall expire  upon the occurrence of a Public Offering.                       (ii)  Notwithstanding the foregoing, in the event (1) that the        Participant’s Employment is terminated (A) by the Company or any of its Subsidiaries        with Cause or (B) by the Participant at a time when grounds exist for a termination with        Cause, or (2) of a Restrictive Covenant Violation any Issuer Equity acquired pursuant to        the settlement of a Vested Restricted Stock Unit shall be forfeited without consideration.                       (iii) If the Issuer desires to exercise the Call Option pursuant to this        Section 2(b), the Company shall, not later than the expiration of the period set forth in        Section 2(b) send written notice to each member of the Participant’s Family Group of its        intention to purchase Issuer Equity, specifying the number or portion of the Issuer Equity        to be purchased (the “Call Notice”).  Subject to the provisions of Section 3, the closing of        the purchase shall take place at the principal office of the Company on a date specified by        the Company no later than the 30th day after the giving of the Call Notice.                     (iv)  Notwithstanding the foregoing, if the Issuer elects not to exercise        the Call Option pursuant to this Section 2(b), Parent or The Blackstone Group L.P.        (through one of its Affiliates) may elect to cause one of its Affiliates or another designee        to purchase such Issuer Equity at any time on the same terms and conditions set forth in        this Section 2(b) by providing written notice to each member of the Participant’s Family        Group of its intention to purchase Issuer Equity.               (c) Obligation to Sell Several.  If there is more than one member of the  Participant’s Family Group, the failure of any one member thereof to perform its obligations  hereunder shall not excuse or affect the obligations of any other member thereof, and the closing  of the purchases from such other members by the Issuer or a designee shall not excuse, or  constitute a waiver of its rights against, the defaulting member.               3.    Certain Limitations on the Company’s Obligations to Purchase Issuer                    Equity.               (a) Deferral of Purchases. Notwithstanding anything to the contrary contained  herein, the Issuer shall not be obligated to purchase any portion of Issuer Equity at any time  pursuant to Section 2, regardless of whether it has delivered a Call Notice or received a Put  Notice, (i) to the extent that the purchase of such Issuer Equity would result in (A) a violation of    001366-0001-15794-Active.25831013.6   

 

                                                                              5      any law, statute, rule, regulation, policy, order, writ, injunction, decree or judgment promulgated   or entered by any federal, state, local or foreign court or governmental authority applicable to the   Issuer or any of its Affiliates or any of its or their property, or (B) after giving effect thereto, an   event which would constitute (or with notice or lapse of time or both would constitute) an event   of default under any of the financing documents of Issuer or its Affiliates from time to time and   any restrictive financial covenants contained in the organizational documents of Issuer or its   Affiliates (a “Financing Default”); (ii) if immediately prior to such purchase there exists a   Financing Default which prohibits such purchase; or (iii) to the extent that there is a lack of   available cash on hand of the Issuer.  The Issuer shall, within fifteen (15) days of learning of any   such fact, so notify the Participant (or the Participant’s Family Group, as applicable) that it is not   obligated to purchase hereunder.                  (b) Notwithstanding anything to the contrary contained herein, any Issuer Equity   which the Issuer elects or is required to purchase, but which in accordance with Section 3(a) is   not purchased at the applicable time provided in Section 2, shall be purchased by the Issuer (x)   by delivery of a promissory note for the applicable purchase price payable at such time as would   not result in a Financing Default, bearing interest at the prime lending rate in effect as of the date   of the exercise of the Call Option or Put Right or at the Applicable Federal Rate at such time, if   greater; or (y) if purchase by delivery of a promissory note as described in clause (x) is not   permitted due to the terms of any outstanding Issuer indebtedness, or otherwise, then, for the   applicable purchase price (measured as of the actual purchase date) on or prior to the fifteenth   (15th) day after such date or dates that the purchase of such Issuer Equity is no longer prohibited   under Section 3(a) and the Issuer shall give the Participant (or the Participant’s Family Group, as   applicable) five (5) days’ prior notice of any such purchase.                (c)   Payment for Issuer Equity. If at any time the Issuer elects or is required to   purchase any Issuer Equity pursuant to Section 2, the Issuer shall pay the purchase price for the   Issuer Equity it purchases (i) first, by the cancellation of any indebtedness, if any, owing from   the Participant to the Issuer or any of its Affiliates (which indebtedness shall be applied pro rata   against the proceeds receivable by each member of the Participant’s Family Group receiving   consideration in such repurchase) and (ii) then, by the Issuer’s delivery of a check or wire  transfer of immediately available funds for the remainder of the purchase price, if any, against  delivery of the certificates or other instruments, if any, representing the Issuer Equity so  purchased, duly endorsed; provided that if (x) any of the conditions set forth in Section 3(a)  exists or (y) such purchase of Issuer Equity would result in a Financing Default, in each case  which prohibits such cash payment (either directly or indirectly as a result of the prohibition of a  related cash dividend or distribution) (each a “Cash Payment Restriction”), the portion of the   cash payment so prohibited may be made, to the extent such payment is not prohibited, by the   Issuer’s delivery of a junior subordinated promissory note (which shall be subordinated and  subject in right of payment to the prior payment of any debt outstanding under the senior  financing agreements and any modifications, renewals, extensions, replacements and refunding  of all such indebtedness) of the Issuer (a “Junior Subordinated Note”) in a principal amount   equal to the balance of the purchase price, payable within ten days after the Cash Payment   Restriction no longer exists, and bearing interest payable (and compounded to the extent not so   paid) as of the last day of each year at the “prime rate” as published for JP Morgan Chase Bank   from time to time, and all such accrued and unpaid interest payable on the date of the payment of   principal (or, if applicable, the last installment of principal), with payments to be applied in the     001366-0001-15794-Active.25831013.6   

 

                                                                              6      order of: first to any enforcement costs incurred by the Participant or the Participant’s Family   Group, second to interest and third to principal.  The Issuer shall have the rights set forth in   clause (i) of the first sentence of this Section 3(b) whether or not the member of the Participant’s   Family Group selling such Issuer Equity is an obligor of the Issuer.  The principal of, and   accrued interest on, any such Junior Subordinated Note may be prepaid in whole or in part at any   time at the option of the Issuer.  To the extent that the Issuer is prohibited from paying accrued   interest, that is required to be paid on any Junior Subordinated Note prior to maturity, due to the   existence of any Cash Payment Restriction, such interest shall be cumulated, compounded   annually, and accrued until and to the extent that such Cash Payment Restriction no longer   exists, at which time such accrued interest shall be immediately paid.  Notwithstanding any other   provision in this Agreement, the Issuer may elect to pay the purchase price hereunder in shares   or other equity securities of one of its respective direct or indirect Affiliates with a fair market   value equal to the applicable purchase price, provided that such Affiliate promptly repurchases   such shares or other equity securities for cash equal to the applicable purchase price or a Junior   Subordinated Note with a principal amount equal to the applicable purchase price.                 4.    Restrictive Covenants (Appendix A). The Participant acknowledges and   recognizes the highly competitive nature of the businesses of the Company and accordingly   agrees, in the Participant’s capacity as an investor and equity holder in the Company and its   Affiliates, to the Restrictive Covenants contained in Appendix A to this Agreement and/or   incorporated herein by reference. The Participant acknowledges and agrees that the Company’s   remedies at law for a breach or threatened breach of any of the provisions of Appendix A would   be inadequate and the Company would suffer irreparable damages as a result of such breach or   threatened breach.  In recognition of this fact, the Participant agrees that, in the event of such a   breach or threatened breach by the Participant, regardless of whether a transfer of the RSU   Award or Issuer Equity to a Permitted Transferee has occurred and in addition to any remedies   at law, the Company, without posting any bond, shall be entitled to cease making any payments   or providing any benefit otherwise required by this Agreement and obtain equitable relief in the   form of specific performance, temporary restraining order, temporary or permanent injunction   or any other equitable remedy which may then be available.  For the purposes of this   Agreement, the Participant shall have engaged in “Competitive Activity” if the Participant   engages in any activity otherwise prohibited by Appendix A after the time limitations set forth   in Appendix A.                5.    Repayment of Proceeds.  If the Participant’s Employment is terminated by   the Company with Cause or a Restrictive Covenant Violation occurs, or the Company discovers  after any termination of Employment that grounds for a termination with Cause existed at the  time thereof, then the Participant shall be required to pay to the Company, within 10 business  days’ of the Company’s request to the Participant therefor, an amount equal to the aggregate  after-tax proceeds (taking into account all amounts of tax that would be recoverable upon a claim  of loss for payment of such proceeds in the year of repayment) the Participant received either in  cash in respect to the settlement of Restricted Stock Units, or upon the sale or other disposition  of, or dividends or distributions in respect of, Issuer Equity acquired upon the settlement of the  RSU Award. Any reference in this Agreement to grounds existing for a termination with Cause  shall be determined without regard to any notice period, cure period or other procedural delay or     001366-0001-15794-Active.25831013.6   

 

                                                                             7    event required prior to finding of, or termination for, Cause. The foregoing remedy shall not be  exclusive.               6.    No Right to Continued Employment.  Neither the Plan nor this Agreement  shall be construed as giving the Participant the right to be retained in the employ of, or in any  consulting relationship to, the Company or any Affiliate. Further, the Company or any Affiliate  may at any time dismiss the Participant or discontinue any consulting relationship, free from any  liability or any claim under the Plan or this Agreement, except as otherwise expressly provided  herein.               7.    Legend on Certificates.  The certificates representing the Issuer Equity  received upon settlement of the RSU Award, if any, shall be subject to such stop transfer orders  and other restrictions as the Committee may deem advisable under the Plan or the rules,  regulations, and other requirements of the Securities and Exchange Commission, any stock  exchange upon which such Issuer Equity is listed or quoted or market to which the Issuer Equity  is admitted for trading and, any applicable federal or state or any other applicable laws and the  Company’s Certificate of Incorporation and Bylaws, and the Committee may cause a legend or  legends to be put on any such certificates to make appropriate reference to such restrictions.               8.    Transferability.  The RSU Award, and the Restricted Stock Units granted  hereunder, may not be assigned, alienated, pledged, attached, sold or otherwise transferred or  encumbered by the Participant otherwise than by will or by the laws of descent and distribution,  and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance  shall be void and unenforceable against the Company or any Affiliate; provided that the  designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment,  sale, transfer or encumbrance.  No such permitted transfer of the RSU Award or any Restricted  Stock Units to heirs or legatees of the Participant shall be effective to bind the Company unless  the Committee shall have been furnished with written notice thereof and a copy of such evidence  as the Committee may deem necessary to establish the validity of the transfer and the acceptance  by the transferee or transferees of the terms and conditions thereof.  During the Participant’s  lifetime, the RSU Award is exercisable only by the Participant.                 9.    Withholding.  The provisions of Section 14(d) of the Plan are incorporated  herein by reference and made a part hereof.               10.   Securities Laws.  Upon the acquisition of any Issuer Equity upon  settlement of the RSU Award, the Participant will make or enter into such written  representations, warranties and agreements as the Committee may reasonably request in order to  comply with applicable securities laws or with this Agreement.                 11.   Notices.  Any notice under this Agreement shall be addressed as follows:               if to the Company:                                  Vivint Group, Inc.                    c/o 313 Acquisition LLC                    4931 North 300 West    001366-0001-15794-Active.25831013.6   

 

                                                                             8                      Provo, Utah 84604                    Attention:  General Counsel                            with copies (which shall not constitute notice) to:                                  The Blackstone Group, L.P.                    345 Park Avenue                    New York, NY 10152                    Attention: Peter Wallace                            and                                  Simpson Thacher & Bartlett LLP                    425 Lexington Avenue                    New York, NY 10017                    Attention:  Gregory T. Grogan                            If to the Participant:                             At the address appearing in the personnel records of the Company for the              Participant.    Following the date hereof, notice may be delivered to either party at such other address as either  party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed  effective upon receipt thereof by the addressee.                12.   Governing Law.  This Agreement shall be governed by and construed and  enforced  in accordance with the laws of the State of Utah applicable to contracts made and to be  performed wholly within the state of Utah (except that the provisions of Section 1 of Appendix A  shall be governed by the law of the state where Participant is principally employed by the  Company or its Subsidiaries or, if the Participant and the Company or its Subsidiaries are party  to any employment agreement, the law of the state that governs such employment agreement),  without giving effect to the conflict of law provisions that would direct the application of the law  of any other jurisdiction. Any suit, action or proceeding with respect to this Agreement, or any  judgment entered by any court in respect of any thereof, shall be brought exclusively in any court  of competent jurisdiction in Salt Lake City, Utah, and each of the Company and the members of  Participant’s Family Group hereby submits to the exclusive jurisdiction of such courts for the  purpose of any such suit, action, proceeding or judgment.  Each of the members of Participant’s  Family Group and the Company hereby irrevocably waives (i) any objections which it may now  or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or  relating to this Agreement brought in any court of competent jurisdiction in Salt Lake City, Utah,  (ii) any claim that any such suit, action or proceeding brought in any such court has been brought  in any inconvenient forum and (iii) any right to a jury trial.               13.   RSU Award Subject to Plan and Stockholders Agreement.  By entering  into this Agreement the Participant agrees and acknowledges that the Participant has received  and read a copy of the Plan.  The RSU Award and the Issuer Equity received upon settlement of    001366-0001-15794-Active.25831013.6   

 

                                                                              9      the RSU Award are subject to the Plan and the Stockholders’ Agreement.  The terms and   provisions of the Plan and the Stockholders’ Agreement, as each may be adopted or amended   from time to time are hereby incorporated by reference. In the event of a conflict between any  term or provision contained herein and a term or provision of the Plan and the Stockholders’  Agreement, the applicable terms and provisions of the Plan will govern and prevail. In the event  of a conflict between any applicable term or provision of the Plan and any term or provision of  the Stockholders’ Agreement, the applicable terms and provisions of the Stockholders’  Agreement will govern and prevail.                 14.   Amendment.  The Committee may waive any conditions or rights under,   amend any terms of, or alter, suspend, discontinue, cancel or terminate this Agreement, but no   such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination   shall materially diminish the rights of the Participant hereunder without the consent of the   Participant unless such action is made in accordance with the terms of the Plan.                  15.   Entire Agreement. This Agreement and the documents referred to herein   or delivered pursuant hereto which form a part hereof contain the entire understanding of the   parties with respect to the subject matter hereof and thereof, provided, that if the Company or its   Affiliates is a party to one or more agreements with the Participant related to the matters subject   to Section 4 and Appendix A, such other agreements shall remain in full force and effect and   continue in addition to this Agreement and nothing in this Agreement or incorporated by   reference shall supersede or replace any other confidentiality, non-competition,  non-solicitation,   non-disparagement or similar agreement entered into between the Participant and the Company   (or any subsidiary or Affiliate) to the extent that such agreement is more protective of the   business of the Company or any subsidiary or Affiliate), and provided, further, that to the extent   a Participant is party to any agreement that would, by its terms, vary the terms of this Agreement   (other than with respect to the matters subject to Section 4 hereof) or the Stockholders’   Agreement (or provide more favorable rights and remedies to the Participant), such terms will be   deemed amended and shall not apply to the RSU Award granted herein or any shares of   Common Stock or Alternative Equity acquired as a result of the settlement of the RSU Award.    There are no restrictions, agreements, promises, representations, warranties, covenants or   undertakings with respect to the subject matter hereof other than those expressly set forth herein   and therein.  This Agreement supersedes all prior agreements and understandings between the   parties with respect to such subject matter, other than as specifically provided for herein.   PARTICIPANT ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL NOT BE   ENTITLED TO ANY ADDITIONAL AWARDS UNDER THE PLAN UNLESS   SEPARATELY AGREED TO BY THE COMPANY FOLLOWING THE DATE HEREOF.                16.   Injunctive Relief.  Participant and Participant’s Permitted Transferees each   acknowledges and agrees that a violation of any of the terms of this Agreement will cause the   Company and its Affiliates irreparable injury for which adequate remedy at law is not available.    Accordingly, it is agreed that the Company shall be entitled to an injunction, restraining order or   other equitable relief to prevent breaches of the provisions of this Agreement and to enforce   specifically the terms and provisions hereof in any court of competent jurisdiction in the United   States or any state thereof, in addition to any other remedy to which it may be entitled at law or   equity.        001366-0001-15794-Active.25831013.6   

 

                                                                            10                17.   Rights Cumulative; Waiver.  The rights and remedies of Participant and  the Company and/or its Affiliates under this Agreement shall be cumulative and not exclusive of  any rights or remedies which either would otherwise have hereunder or at law or in equity or by  statute, and no failure or delay by either party in exercising any right or remedy shall impair any  such right or remedy or operate as a waiver of such right or remedy, nor shall any single or  partial exercise of any power or right preclude such party’s other or further exercise or the  exercise of any other power or right.  The waiver by any party hereto of a breach of any  provision of this Agreement shall not operate or be construed as a waiver of any preceding or  succeeding breach and no failure by either party to exercise any right or privilege hereunder shall  be deemed a waiver of such party’s rights or privileges hereunder or shall be deemed a waiver of  such party’s rights to exercise the same at any subsequent time or times hereunder.                18.   Section 409A.  It is intended that the Restricted Stock Units granted  hereunder shall comply with Section 409A of the Code, and all provisions of this Agreement  shall be construed and interpreted in a manner consistent with the requirements for avoiding  taxes or penalties under Section 409A of the Code.                 19.   Signature in Counterparts.  This Agreement may be signed in counterparts,  each of which shall be an original, with the same effect as if the signatures thereto and hereto  were upon the same instrument.                                               [Signature page follows]    001366-0001-15794-Active.25831013.6   

 

            IN WITNESS WHEREOF, this Agreement has been executed and delivered by  the parties hereto as of the Date of Grant.                                         Participant                                                                                                                  ____________________________________                                      Name:       Date of Grant:    Restricted Stock Units:    Vesting Start Date:                                                  001366-0001-15794-Active.25831013.6   

 

   Acknowledged and agreed as of the date above first written:                                                                              VIVINT GROUP, INC., for itself and on behalf of                                      any “Issuer” (as defined in the Agreement)                                                                                                                  ____________________________________                                      Name:                                       Title: Authorized Signatory                                                001366-0001-15794-Active.25831013.6   

 

                                                                  Appendix A-1                                     Appendix A                                                                        Restrictive Covenants                                                       1.    Non-Competition; Non-Solicitation; Non-Disparagement.                (a)   The Participant acknowledges and recognizes the highly competitive  nature of the businesses of the Company and its Affiliates and Subsidiaries, and accordingly  agrees as follows:                  (i)   During the Participant’s employment with the Company or its        Affiliates or Subsidiaries (the “Employment Term”) and for a period of one year        following the date the Participant ceases to be employed by the Company or its Affiliates       or Subsidiaries (the “Restricted Period”), the Participant will not, whether on the        Participant’s own behalf or on behalf of or in conjunction with any person, firm,        partnership, joint venture, association, corporation or other business organization, entity        or enterprise whatsoever (for the purposes of this Appendix A, a “Person”), directly or        indirectly solicit or assist in soliciting the business of any then-current or prospective        client or customer of any member of the Restricted Group in competition with the        Restricted Group in the Business.                  (ii)  During the Restricted Period, the Participant will not directly or        indirectly:                     (A)   engage in the Business anywhere in the United States, or in any           geographical area that is within 100 miles of any geographical area where the           Restricted Group engages in the Business, including, for the avoidance of doubt, by           entering into the employment of or rendering any services to a Core Competitor,           except where such employment or services do not relate in any manner to the           Business;                    (B)   acquire a financial interest in, or otherwise become actively          involved with, any Person engaged in the Business, directly or indirectly, as an          individual, partner, shareholder, officer, director, principal, agent, trustee or          consultant; or                    (C)   intentionally and adversely interfere with, or attempt to adversely          interfere with, business relationships between the members of the Restricted Group          and any of their clients, customers, suppliers, partners, members or investors.                  (iii) Notwithstanding anything to the contrary in this Appendix A, the       Participant may, directly or indirectly own, solely as an investment, securities of any       Person engaged in a Business (including, without limitation, a Core Competitor) which       are publicly traded on a national or regional stock exchange or on the over-the-counter       market if the Participant (i) is not a controlling person of, or a member of a group which       controls, such person and (ii) does not, directly or indirectly, own 2% or more of any       class of securities of such Person.                                             001366-0001-15794-Active.25831013.6   

 

                                                                  Appendix A-2                   (iv)  During the Employment Term and the Restricted Period, the        Participant will not, whether on the Participant’s own behalf or on behalf of or in        conjunction with any Person, directly or indirectly:                     (A)   solicit or encourage any employee of the Restricted Group to leave           the employment of the Restricted Group;                      (B) hire any executive-level employee, key personnel, or manager-level           employee (i.e., any operations manager or district sales manager) who was employed           by the Restricted Group as of the date of the Participant’s termination of employment          with the Company or who left the employment of the Restricted Group coincident          with, or within one year prior to or after, the termination of the Participant’s          employment with the Company; or                     (C)   encourage any consultant of the Restricted Group to cease working           with the Restricted Group.                  (v)   For purposes of this Agreement:                     (A)   “Restricted Group” shall mean, collectively, the Company and its           subsidiaries and, to the extent engaged in the Business, their respective Affiliates           (including The Blackstone Group L.P. and its Affiliates).                     (B)   “Business” shall mean (1) origination, installation, or monitoring           services related to residential or commercial security, life-safety, energy management          or home automation services, (2) installation or servicing of residential or commercial          solar panels or sale of electricity generated by solar panels, (3) design, engineering or          manufacturing of technology or products related to residential or commercial          security, life-safety, energy management or home automation services and/or (4)          provision of television, wireless voice and/or data services, including internet,          through a common internet connectivity pipeline into the home.                      (C) “Core Competitor” shall mean ADT Security Services/Tyco Integrated           Security, Security Networks, LLC, Protection 1, Inc., Protect America, Inc., Stanley           Security Solutions, Inc., Vector Security, Inc., Slomins, Inc., Monitronics           International, Inc., Life Alert, Comcast Corporation, Time Warner, Inc., AT&T Inc.,           Verizon Communications, Inc., DISH Network Corp., DIRECTV, Pinnacle, JAB           Wireless, Inc., Clearwire Corporation, CenturyLink, Inc., Cox Communication, Inc.           and any of their respective Affiliates and current or future dealers, and Sungevity,           Inc., RPS, Sunrun Inc., Solar City Corporation, Clean Power Finance, SunPower           Corporation, Corbin Solar Solutions LLC, Galkos Construction, Inc., Zing Solar,           Terrawatt, Inc., and any of their respective Affiliates or current or future dealers.                  (vi)  Notwithstanding the foregoing, if Executive’s principal place of        employment is located in California, then the provisions of Sections 1(a)(i) and 1(a)(ii) of        this Appendix A shall not apply following Executive’s termination of employment to the        extent any such provision is prohibited by applicable California law.                                              001366-0001-15794-Active.25831013.6   

 

                                                                   Appendix A-3                                  (b)   During the Employment Term and the three-year period beginning  immediately following the Employment Term, the Participant agrees not to make, or cause any  other person to make, any communication that is intended to criticize or disparage, or has the  effect of criticizing or disparaging, the Company or any of its affiliates, agents or advisors (or  any of its or their respective employees, officers or directors (it being understood that comments  made in the Participant’s good faith performance of his duties hereunder shall not be deemed  disparaging or defamatory for purposes of this Agreement).   Nothing set forth herein shall be  interpreted to prohibit the Participant from responding truthfully to incorrect public statements,  making truthful statements when required by law, subpoena or court order and/or from  responding to any inquiry by any regulatory or investigatory organization.               (c)   It is expressly understood and agreed that although the Participant and the  Company consider the restrictions contained in this Section 1 to be reasonable, if a final judicial  determination is made by a court of competent jurisdiction that the time or territory or any other  restriction contained in this Appendix A is an unenforceable restriction against the Participant,  the provisions of this Appendix A shall not be rendered void but shall be deemed amended to  apply as to such maximum time and territory and to such maximum extent as such court may  judicially determine or indicate to be enforceable.  Alternatively, if any court of competent  jurisdiction finds that any restriction contained in this Appendix A is unenforceable, and such  restriction cannot be amended so as to make it enforceable, such finding shall not affect the  enforceability of any of the other restrictions contained herein.               (d)   The period of time during which the provisions of this Section 1 shall be  in effect shall be extended by the length of time during which the Participant is in breach of the  terms hereof as determined by any court of competent jurisdiction on the Company’s application  for injunctive relief.               (e)   The provisions of Section 1 hereof shall survive the termination of the  Participant’s employment for any reason.                2.    Confidentiality; Intellectual Property.                (a)   Confidentiality.                     (i)   The Participant will not at any time (whether during or after the         Participant’s employment with the Company) (x) retain or use for the benefit, purposes or         account of the Participant or any other Person; or (y) disclose, divulge, reveal,         communicate, share, transfer or provide access to any Person outside the Company (other         than the Participant’s professional advisers who are bound by confidentiality obligations         or otherwise in performance of the Participant’s duties under the Participant’s         employment and pursuant to customary industry practice), any non-public, proprietary or         confidential information --including without limitation trade secrets, know-how, research        and development, software, databases, inventions, processes, formulae, technology,        designs and other intellectual property, information concerning finances, investments,        profits, pricing, costs, products, services, vendors, customers, clients, partners, investors,                                               001366-0001-15794-Active.25831013.6   

 

                                                                  Appendix A-4          personnel, compensation, recruiting, training, advertising, sales, marketing, promotions,        government and regulatory activities and approvals -- concerning the past, current or        future business, activities and operations of the Company, its Affiliates or Subsidiaries        and/or any third party that has disclosed or provided any of same to the Company on a        confidential basis (“Confidential Information”) without the prior written authorization of        the Board.                  (ii)  “Confidential Information” shall not include any information that is (a)        generally known to the industry or the public other than as a result of the Participant’s        breach of this covenant; (b) made legitimately available to the Participant by a third party        without breach of any confidentiality obligation of which the Participant has knowledge;        or (c) required by law to be disclosed; provided that with respect to subsection (c) the        Participant shall give prompt written notice to the Company of such requirement, disclose        no more information than is so required, and reasonably cooperate with any attempts by        the Company to obtain a protective order or similar treatment.                  (iii) Except as required by law, the Participant will not disclose to anyone,        other than the Participant’s family (it being understood that, in this Agreement, the term        “family” refers to the Participant, the Participant’s spouse, children, parents and spouse’s        parents) and advisors, the existence or contents of this Agreement; provided that the        Participant may disclose to any prospective future employer the provisions of this        Appendix A.  This Section 2(a)(iii) shall terminate if the Company publicly discloses a        copy of this Agreement (or, if the Company publicly discloses summaries or excerpts of        this Agreement, to the extent so disclosed).                  (iv)  Upon termination of the Participant’s employment with the Company        for any reason, the Participant shall (x) cease and not thereafter commence use of any        Confidential Information or intellectual property (including without limitation, any        patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or        other source indicator) owned or used by the Company, its Subsidiaries or Affiliates; and        (y) immediately destroy, delete, or return to the Company, at the Company’s option, all        originals and copies in any form or medium (including memoranda, books, papers, plans,        computer files, letters and other data) in the Participant’s possession or control (including        any of the foregoing stored or located in the Participant’s office, home, laptop or other        computer, whether or not Company property) that contain Confidential Information,        except that the Participant may retain only those portions of any personal notes,        notebooks and diaries that do not contain any Confidential Information.                  (b) Intellectual Property.                      (i)   If the Participant creates, invents, designs, develops, contributes to or        improves any works of authorship, inventions, intellectual property, materials, documents        or other work product (including without limitation, research, reports, software,        databases, systems, applications, presentations, textual works, content, or audiovisual        materials) (“Works”), either alone or with third parties, at any time during the        Participant’s employment by the Company and within the scope of such employment        and/or with the use of any the Company resources (“Company Works”), the Participant                                             001366-0001-15794-Active.25831013.6   

 

                                                                  Appendix A-5          shall promptly and fully disclose same to the Company and hereby irrevocably assigns,        transfers and conveys, to the maximum extent permitted by applicable law, all of the        Participant’s right, title, and interest therein (including rights under patent, industrial        property, copyright, trademark, trade secret, unfair competition, other intellectual        property laws, and related laws) to the Company to the extent ownership of any such        rights does not vest originally in the Company.  If the Participant creates any written        records (in the form of notes, sketches, drawings, or any other tangible form or media) of        any Company Works, the Participant will keep and maintain same.  The records will be        available to and remain the sole property and intellectual property of the Company at all        times.                   (ii)  The Participant shall take all requested actions and execute all        requested documents (including any licenses or assignments required by a government        contract) at the Company’s expense (but without further remuneration) to assist the        Company in validating, maintaining, protecting, enforcing, perfecting, recording,        patenting or registering any of the Company’s rights in the Company Works.                  (iii) The Participant shall not improperly use for the benefit of, bring to any        premises of, divulge, disclose, communicate, reveal, transfer or provide access to, or        share with the Company any confidential, proprietary or non-public information or       intellectual property relating to a former employer or other third party without the prior       written permission of such third party. The Participant shall comply with all relevant       policies and guidelines of the Company that are from time to time previously disclosed to       the Participant, including regarding the protection of Confidential Information and       intellectual property and potential conflicts of interest.                   (iv)  The provisions of Section 2 hereof shall survive the termination of the        Participant’s employment for any reason.                                                                                                                                                                      001366-0001-15794-Active.25831013.6   

 

                                     Exhibit A          Vivint Group, Inc. Amended and Restated 2013 Omnibus Incentive Plan                               (Distributed Separately)                                                                                      001366-0001-15794-Active.25831013.6Exhibit

Exhibit 10.1

Execution Version

AMENDMENT NO. 9 TO RECEIVABLES PURCHASE AGREEMENT
THIS AMENDMENT NO. 9 TO RECEIVABLES PURCHASE AGREEMENT (this “Amendment”), dated as of October 31, 2018 (the “Effective Date”), is entered into by and among:
(a)    SUPERIOR COMMERCE LLC, a Delaware limited liability company (the “Seller”), 
(b)    SCP DISTRIBUTORS LLC, a Delaware limited liability company (the “Servicer”), and
(c)    MUFG BANK, LTD. (f/k/a/THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.), individually (“BTMU” or a “Committed Purchaser”) and as agent for the Victory Group (the “Victory Group Co-Agent”), BANK OF AMERICA, N.A., individually (“BAML” or a “Committed Purchaser”) and as agent for the BAML Group (the “BAML Group Co-Agent”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, individually (“Wells” or a “Commitment Purchaser”), as agent for the Wells Group (the “Wells Group Co-Agent”, and together with the Victory Group Co-Agent and the BAML Group Co-Agent, the “Co-Agents”), and as administrative agent for the Purchasers and the Co-Agents (the “Administrative Agent”).
Capitalized terms used and not otherwise defined herein shall have the meanings thereto in that certain Receivables Purchase Agreement, dated as of October 11, 2013, by and among the parties hereto (as amended or otherwise modified from time to time, the “Receivables Purchase Agreement”).
PRELIMINARY STATEMENT
The parties hereto wish to amend the Receivables Purchase Agreement as hereinafter provided.
In consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Amendments.  On the terms and subject to the conditions set forth in this Amendment, the parties hereto agree as follows:

1.1All references in the Receivables Purchase Agreement and the other Transaction Documents (including in the schedules and exhibits thereto) to “The Bank of Tokyo-Mitsubishi UFJ, Ltd.” or “BTMU” (in each of the foregoing cases, whether such reference is alone or part of another defined term) are hereby replaced with “MUFG Bank, Ltd. (f/k/a The Bank of Tokyo-Mitsubishi UFJ, Ltd.)” and “MUFG”, respectively.

1.2Exhibit I to the Receivables Purchase Agreement is hereby amended to add the following new defined terms thereto in their appropriate alphabetical order:

“Beneficial Ownership Rule” means 31 C.F.R. § 1010.230.
“Certification of Beneficial Owner(s)” means a certificate in form and substance satisfactory to the Agents regarding beneficial ownership of the Seller as required by the Beneficial Ownership Rule. 
“Replacement Rate” has the meaning specified in Section 1.8.

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1.3The definitions of the following terms set forth in Exhibit I to the Receivables Purchase Agreement are hereby amended and restated in their entirety to read, respectively, as set forth below:

“Applicable Law” means, as to any Person or its property, all domestic , international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law, to which such Person or its property is subject.
“Facility Limit” means, for each month beginning on or after November 1, 2018, (a) the amount specified in the second column of the table below (the “Base Facility Limit”), plus (b) the amount (if any) specified in the third column below (the “Seasonal Facility Limit”); provided, however, that the Facility Limit may be increased up to an amount to be determined by agreement of Seller and the Co-Agents, so long as no Amortization Event or Potential Amortization Event exists and is continuing (it being understood that the Commitments associated with any increase in the Facility Limit may be provided by existing Purchasers and/or new Purchasers):
	
							
	 
	 
	 
	 

	Month*
	Base
Facility Limit
	Seasonal
Facility Limit
	Facility Limit

	January
	$95,000,000
	 
	$95,000,000
	 

	February
	$135,000,000
	 
	$135,000,000
	 

	March
	$170,000,000
	$40,000,000
	$210,000,000
	 

	April
	$220,000,000
	$40,000,000
	$260,000,000
	 

	May
	$255,000,000
	$40,000,000
	$295,000,000
	 

	June
	$240,000,000
	$40,000,000
	$280,000,000
	 

	July
	$205,000,000
	$40,000,000
	$245,000,000
	 

	August
	$190,000,000
	 
	$190,000,000
	 

	September
	$170,000,000
	 
	$170,000,000
	 

	October
	$150,000,000
	 
	$150,000,000
	 

	November
	$135,000,000
	 
	$135,000,000
	 

	December
	$115,000,000
	 
	$115,000,000
	 

*Nothing in this table shall be deemed to imply that any Commitment or the Facility Limit extends beyond the Facility Termination Date.

“Facility Termination Date” means the earlier of (i) October 30, 2020, and (ii) the Amortization Date.
“LIBOR Market Index Rate” means, subject to the implementation of a Replacement Rate in accordance with Section 1.8(c), for any day, the one-month Eurodollar Rate for U.S. dollar deposits as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent for the purpose of displaying offered rates of leading banks for London interbank deposits in United States dollars, at approximately 11:00 a.m. (London time) on such date, or if such day is not a Business Day, then the immediately preceding Business Day (or if not so reported, then as determined by the Administrative 

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Agent from another recognized source for interbank quotation), in each case, changing when and as such rate changes; provided, however, that if, on any day, such one-month Eurodollar Rate for U.S. dollar deposits is reported to be a less than 0%, for purposes of the Transaction Documents, the “LIBOR Market Index Rate” shall be deemed to be 0% for such day.  Notwithstanding the foregoing, unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 1.8(c), in the event that a Replacement Rate with respect to the Eurodollar Rate is implemented, then all references herein to LIBOR Market Index Rate shall be deemed references to such Replacement Rate.
“MUFG LIBO Rate”1 Prior to giving effect to Section 1.1 of this Amendment, this term was the “BTMU LIBO Rate” means, subject to the implementation of a Replacement Rate in accordance with Section 1.8(c), for any Interest Period either (a) the interest rate per annum designated as the MUFG Bank, Ltd. LIBO Rate for a period of time comparable to such Interest Period as of 11:00 a.m. (London, England time) on the second Business Day preceding the first day of such Interest Period or (b) if a rate cannot be determined under clause (a), an annual rate equal to the average (rounded upwards if necessary to the nearest 1/100th of 1%) of the rates per annum at which deposits in U.S. Dollars with a duration comparable to such Interest Period in a principal amount substantially equal to the applicable Rate Tranche are offered to the principal London office of MUFG by three London banks, selected by MUFG in good faith, at approximately 11:00 a.m. London time on the second Business Day preceding the first day of such Interest Period.  Notwithstanding the foregoing, unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 1.8(c), in the event that a Replacement Rate with respect to the MUFG LIBO Rate is implemented then all references herein to MUFG LIBO Rate shall be deemed references to such Replacement Rate.
1.4Section 1.8 of the Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows:
Section 1.8.  Changed Circumstances.
(a) Circumstances Affecting MUFG LIBO Rate or LMIR Availability.  Unless and until a Replacement Rate is implemented in accordance with Section 1.8(c) below, if any Co-Agent notifies Seller and the other Agents that it has determined that funding an investment in any Receivable Interest at a rate based on the MUFG LIBO Rate or LMIR, as applicable, would violate any Applicable Law, or compliance by any of the Committed Purchasers (or any of their respective Funding Offices) that are in such Co-Agent’s Purchaser Group with any Applicable Law of any Governmental Authority, central bank or comparable agency having jurisdiction over such Committed Purchaser or its applicable Funding Office, or that (i) deposits of a type and maturity appropriate to match-fund its Receivable Interest at a rate based on the MUFG LIBO Rate or LMIR, as applicable, are not available or (ii) the MUFG LIBO Rate or LMIR, as applicable, does not accurately reflect the cost of acquiring or maintaining an investment in any Receivable Interest at a rate based on the MUFG LIBO Rate or LMIR, then the applicable Co-Agent shall suspend the availability of the MUFG LIBO Rate or LMIR, as applicable, from its Purchaser Group, and Yield on each applicable Committed Purchaser’s investments in the Receivable Interests shall accrue at the Alternate Base Rate.

____________________________________
1Prior to giving effect to Section 1.1 of this Amendment, this term was the "BTMU LIBO Rate"

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(b) Laws Affecting MUFG LIBO Rate or LMIR Availability.  If, after the date hereof, the introduction of, or any change in, any Applicable Law, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any of the Committed Purchasers (or any of their respective Funding Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Committed Purchasers (or any of their respective Funding Offices) to honor its obligations hereunder to make or maintain any investment in any Receivable Interest at a rate based on the MUFG LIBO Rate or LMIR, as applicable, the applicable Co-Agent shall promptly give notice thereof to the Seller and the other Agents.  Thereafter, until such Co-Agent notifies the Seller and the other Agents that such circumstances no longer exist, (i) the obligations of such Committed Purchaser to make investments in any Receivable Interest at a rate based on the MUFG LIBO Rate or LMIR, as applicable, shall be suspended and all such investments in Receivable Interests of such Committed Purchaser shall thereafter accrue Yield at the Alternate Base Rate, and (ii) if any of the Committed Purchasers may not lawfully continue to maintain an investment in any Receivable Interest at a rate based on the MUFG LIBO Rate or LMIR, as applicable, to the end of the then current Interest Period, the applicable Committed Purchaser’s investment shall immediately be converted to an investment at the Alternate Base Rate for the remainder of such Interest Period.
(c) Alternative Rate of Interest.  Notwithstanding anything to the contrary in Section 1.8(a) above, if the applicable Co-Agent has made the determination (such determination to be conclusive absent manifest error) that (i) the circumstances described in Section 1.8(a)(i) or 1.8(a)(ii) have arisen and that such circumstances are unlikely to be temporary, (ii) any applicable interest rate specified herein as the basis for computing the LIBOR Market Index Rate or the MUFG LIBO Rate, as applicable, is no longer a widely recognized benchmark rate for newly-originated loans in United States dollars in the U.S. syndicated loan market or (iii) the applicable supervisor or administrator (if any) of any applicable interest rate specified herein or any Governmental Authority having, or purporting to have, jurisdiction over such Co-Agent has made a public statement identifying a specific date after which any applicable interest rate specified herein shall no longer be used for determining interest rates for United States dollar loans in the U.S. syndicated loan market, then such Co-Agent may, to the extent practicable (in consultation with Seller and as determined by such Co-Agent to be generally in accordance with similar situations in other transactions in which it is serving as an agent or otherwise consistent with market practice generally), establish a replacement interest rate for the Committed Purchaser(s) in its Purchase Group (a “Replacement Rate”), in which case, such Replacement Rate shall, subject to the next two sentences, replace such applicable interest rate for such Committed Purchaser(s) for all purposes under the Transaction Documents unless and until (A) an event described in Section 1.8(a)(i), (a)(ii), (c)(i), (c)(ii) or (c)(iii) occurs with respect to such Replacement Rate or (B) such Co-Agent notifies Seller and the other Agents that such Replacement Rate does not adequately and fairly reflect the cost to the Committed Purchaser(s) in its Purchaser Group of making investments in the Receivable Interests at such Replacement Rate.  In connection with the establishment and application of a Replacement Rate by any Co-Agent, this Agreement and the other Transaction Documents shall be amended solely with the consent of such Co-Agent, the Administrative Agent and Seller as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 1.8(c).  Notwithstanding anything to the contrary in this Agreement or the other Transaction Documents (including, without limitation, Section 12.1), such amendment shall become effective without any further action or consent of any other party to this Agreement or such other Transaction Document so long as the Administrative Agent shall not have received, within five (5) Business Days of the delivery of such amendment to the Co-Agents, written notices from such Co-Agents that in the aggregate constitute Required Co-Agents, with each such notice stating that such Co-Agent objects to such amendment (which such notice shall note with specificity the particular provisions of the amendment to which such Co-Agent objects).  To the extent the Replacement Rate 

4

is approved by a Co-Agent in connection with this clause (c), the Replacement Rate shall be applied in a manner consistent with market practice; provided that, in each case, to the extent such market practice is not administratively feasible for the applicable Co-Agent, such Replacement Rate shall be applied as otherwise reasonably determined by such Co-Agent (it being understood that any such modification by the applicable Co-Agent shall not require the consent of, or consultation with, any of the other Agents or Purchasers).

1.5A new Section 3.1(y) is hereby added to the Receivables Purchase Agreement which reads as follows:

(y) Beneficial Ownership Rule.  The Seller is an entity that is organized under the laws of the United States or of any State thereof and at least 51 percent of whose common stock or analogous equity interest is owned, directly or indirectly by a Person whose common stock or analogous equity interests are listed on the New York Stock Exchange or the American Stock Exchange or have been designated as a NASDAQ National Market Security listed on the NASDAQ stock exchange and is excluded on that basis from the definition of Legal Entity Customer as defined in the Beneficial Ownership Rule.

1.6Section 4.2(a) is hereby amended to insert the following immediate before the semi-colon at the end thereof:
“and all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, and the Beneficial Ownership Rule upon request by the Administrative Agent or any Purchaser”

1.7Section 5.1(a)(viii) is hereby amended and restated in its entirety to read as follows:

(viii) Beneficial Ownership Rule; Other Information.  (A) Promptly following any change that would result in a change to the status of the Seller as an excluded “Legal Entity Customer” under the Beneficial Ownership Rule, a duly executed Certification of Beneficial Owner(s) complying with the Beneficial Ownership Rule, in form and substance reasonably acceptable to the Administrative Agent; and (B) promptly, from time to time upon request of the Administrative Agent or any Purchaser, such other information, documents, records or reports relating to the Receivables, the financial condition, operations or business of such Seller Party, or the aggregate principal amount of outstanding purchase money Indebtedness that is subject to a priming lien in respect of each Originator’s inventory as the Administrative Agent or any Purchaser may from time to time reasonably request in order to protect the interests of the Administrative Agent and the Purchasers under or as contemplated by this Agreement. 
1.8The first sentence of Section 12.1(b) is hereby amended and restated in its entirety to read as follows:

No provision of this Agreement may be amended, supplemented, modified or waived except in writing in accordance with the provisions of Section 1.8(c) or this Section 12.1(b) or without satisfaction of the Rating Agency Condition, if applicable.

5

1.9Schedule A to the Receivables Purchase Agreement is hereby amended and restated in its entirety to read as set forth in Schedule A to this Amendment.

Except as specifically amended hereby, the Receivables Purchase Agreement and all exhibits and schedules attached thereto shall remain unaltered and in full force and effect.
2.Binding Effect.  This Amendment shall be binding upon and inure to the benefit of each of the parties to the Receivables Purchase Agreement, whether or not they are parties hereto, and their successors and permitted assigns.

3.Effectiveness.  Effectiveness of this Amendment is subject to the prior or contemporaneous satisfaction of each of the following conditions precedent:
(a)The Administrative Agent shall have received counterparts hereof, duly executed by each of the parties hereto; 

(b)The Administrative Agent shall have received counterparts of the Amendment Fee Letter of even date herewith, duly executed by the Administrative Agent and the Co-Agents, and each of the Co-Agents shall have received payment of the Upfront Fee due and owing to its Purchaser Group; and

(c)Each of the representations and warranties contained in Article III of the Receivables Purchase Agreement as amended hereby is true and correct in all material respects on and as of the date hereof as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case each of such representations and warranties is true and correct in all material respects as of such earlier date; provided that the materiality threshold in this clause (b) shall not be applicable to any representation or warranty which itself contains a materiality threshold.

4.Miscellaneous.

4.1CHOICE OF LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL APPLY HERETO).

4.2CONSENT TO JURISDICTION.  EACH PARTY TO THIS AMENDMENT HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT, AND EACH OF THE PARTIES HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY OF THE AGENTS OR THE PURCHASERS TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY ANY SELLER PARTY AGAINST ANY OF THE AGENTS OR THE PURCHASERS OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AMENDMENT SHALL BE BROUGHT ONLY IN A COURT IN THE BOROUGH OF MANHATTAN, NEW YORK.

4.3WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AMENDMENT.

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4.4Counterparts; Severability.  This Amendment may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or electronic mail message attaching a “PDF” or other image of a signed signature page shall be effective as delivery of a manually executed counterpart of a signature page to this Amendment.  Any provisions of this Amendment which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

<Balance of Page Intentionally Left Blank>

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their duly authorized officers or attorneys-in-fact as of the date hereof.
SUPERIOR COMMERCE LLC, as Seller

By:  ___/s/ Steven Cassanova___________________
Name:    Steven Cassanova
Title:     Treasurer

SCP DISTRIBUTORS LLC, as Servicer

By:  ___/s/ Melanie Housey Hart________________
Name:    Melanie Housey Hart
Title:     Chief Accounting Officer

[Additional Signatures to Follow]

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MUFG BANK, LTD. (f/k/a/ THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.), individually and as Victory Group Co-Agent

By:  ___/s/ Nicolas Mounier_____________________
Name:    Nicolas Mounier
Title:     Director

[Additional Signatures to Follow]

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BANK OF AMERICA, N.A., individually and as BAML Group Co-Agent

By:  ___/s/ Christopher Haynes___________________
Name:    Christopher Haynes
Title:     Vice President

Address for Notices:

Trade Receivables Securitization Finance
Bank of America Merrill Lynch
13510 Ballantyne Corporate Pl
Charlotte, NC 28277
Attn:  Christopher Haynes
Phone: 980.683.4585
Email: christopher.haynes@baml.com
Fax: 704.409.0588

[Additional Signatures to Follow]

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WELLS FARGO BANK, NATIONAL ASSOCIATION, INDIVIDUALLY, as Wells Group Co-Agent and as Administrative Agent

By:  ___/s/ William P. Rutkowski________________
Name:    William P. Rutkowski
Title:     Director

[End of Signatures]

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