Document:

Exhibit 4.1

 

	
  

  	
  This
  Certificate is Transferable in Jersey City, NJ, New York, NY and Pittsburgh,
  PA COMMON STOCK PAR VALUE $.01 PER SHARE C This Certifies that is the record
  holder of FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, PAR VALUE
  $.01 PER SHARE, OF CLST Holdings, Inc. (herein called the “Corporation”)
  transferable on the books of the Corporation in person or by duly authorized
  Attorney upon surrender of this Certificate properly endorsed or assigned.
  This Certificate and the shares represented hereby are issued and shall be
  subject to the laws of the State of Delaware and to all provisions of the
  Certificate of Incorporation and By-Laws of the Corporation as amended from
  time to time. This Certificate is not valid unless countersigned and
  registered by the Transfer Agent and Registrar. Witness the facsimile seal of
  the Corporation and the facsimile signatures of its duly authorized officers.
  PRESIDENT AND CHIEF EXECUTIVE OFFICER SECRETARY CLST Holdings, Inc. SEAL
  DELAWARE CORPORATE INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE
  COUNTERSIGNED AND REGISTERED: MELLON INVESTOR SERVICES LLC TRANSFER AGENT AND
  REGISTRAR BY AUTHORIZED SIGNATURE CUSIP 12564R 10 3 SEE REVERSE FOR CERTAIN
  DEFINITIONS AND PROVISIONS PLEASE INITIAL THE APPROPRIATE SELECTION FOR THIS
  PROOF: OK AS IS OK WITH CHANGES MAKE CHANGES AND SEND ANOTHER PROOF Colors
  Selected for Printing: SEAL: 10% Black screen behind Seal. Intaglio prints in
  SC-3 Dark Green. COLOR: This proof was printed from a digital file or artwork
  on a graphics quality, color laser printer. It is a good representation of
  the color as it will appear on the final product. However, it is not an exact
  color rendition, and the final printed product may appear slightly different
  from the proof due to the difference between the dyes and printing ink. CLST
  Holdings, Inc. DATED: AMERICAN BANK NOTE COMPANY 711 ARMSTRONG LANE COLUMBIA,
  TENNESSEE 38401 (931) 388-3003 SALES: E. BUCKLEY 951-340-1950 7 / LIVE JOBS /
  C / 32212 CLST FC PRODUCTION COORDINATOR: TODD DEROSSETT 931-490-1720 PROOF
  OF: APRIL 3, 2009 CLST HOLDINGS, INC. TSB 32212 FC OPERATOR: AP NEW 

  

 

 

	
  

  	
  PLEASE INITIAL
  THE APPROPRIATE SELECTION FOR THIS PROOF: OK AS IS OK WITH CHANGES MAKE
  CHANGES AND SEND ANOTHER PROOF CLST Holdings, Inc. This certificate also
  evidences and entitles the holder hereof to certain Rights as set forth in
  the Rights Agreement between CLST Holdings, Inc. and Mellon Investor Services
  LLC, as Rights Agent, dated as of February 13, 2009 and as amended from time
  to time (the “Rights Agreement”), the terms of which are hereby incorporated
  herein by reference and a copy of which is on file at the principal executive
  offices of CLST Holdings, Inc. The Rights are not exercisable prior to the
  occurrence of certain events specified in the Rights Agreement. Under certain
  circumstances, as set forth in the Rights Agreement, such Rights may be
  redeemed, may be exchanged, may expire, may be amended, or may be evidenced
  by separate certificates and no longer be evidenced by this certificate. CLST
  Holdings, Inc. shall mail to the holder of this certificate a copy of the
  Rights Agreement, as in effect on the date of mailing, without charge
  promptly after receipt of a written request therefor. Under certain
  circumstances as set forth in the Rights Agreement, Rights that are or were
  beneficially owned by an Acquiring Person or any Affiliate or Associate of an
  Acquiring Person (as such terms are defined in the Rights Agreement) may
  become null and void. AMERICAN BANK NOTE COMPANY 711 ARMSTRONG LANE COLUMBIA,
  TENNESSEE 38401 (931) 388-3003 SALES: E. BUCKLEY 951-340-1950 7 / LIVE JOBS /
  C / 32212 CLST BK PRODUCTION COORDINATOR: TODD DEROSSETT 931-490-1720 PROOF
  OF: APRIL 3, 2009 CLST HOLDINGS, INC. TSB 32212 BK OPERATOR: AP NEWExhibit 10.13

 

	
  

  	
  1345 AVENUE OF THE AMERICAS

  46TH FLOOR

  NEW YORK, NY 10105

  TEL 212 798-6100

  

 

December 2, 2009

 

VIA
FACSIMILE AND OVERNIGHT MAIL

 

SUMMIT
ALTERNATIVE INVESTMENTS, 

LLC

50
West Liberty Street, Suite 980

Reno,
Nevada 89501

 

SUMMIT
CONSUMER RECEIVABLES 

FUND, L.P.

50
West Liberty Street, Suite 980

Reno,
Nevada 89501

 

SSPE,
LLC

50
West Liberty Street, Suite 980 

Reno,
Nevada 89501

Attention:
Eric J. Gangloff

 

SSPE
INVESTMENT TRUST I 

50
West Liberty Street, Suite 980 

Reno,
Nevada 89501

 

CLST
ASSET TRUST II 

815
E. Market Street

Akron,
Ohio 44305

 

Re:
Notice of Default and Servicer Default 

 

Ladies
and Gentlemen:

 

Reference
is made herein to that certain Second Amended and Restated Revolving Credit
Agreement, dated as of December 10, 2008 (as amended, modified, supplemented or
restated from time to time, the “Credit
Agreement”), by and among CLST Asset Trust II, a Delaware statutory
trust, as a borrower (“Trust II”),
SSPE Investment Trust I, a Delaware statutory trust, as a borrower (“Trust I”), SSPE, LLC, a
Delaware limited liability company, as a borrower (the “LLC Borrower” and, together with Trust I and Trust II, the
“Borrowers”), Summit Consumer
Receivables Fund, L.P., a Delaware limited partnership, as the originator (the “Originator”) and as a guarantor,
Summit Alternative Investments, LLC, a Nevada limited liability company, as the
servicer (the “Servicer”), Eric
J. Gangloff, as a guarantor, the Lenders party thereto, Fortress Credit Corp. (“Fortress”), as the administrative
agent for the Lenders (in such capacity, the

 

 

“Administrative Agent”), U.S. Bank National
Association, as the Collateral Custodian and Lyon Financial Services, Inc.
(d/b/a U.S. Bank Portfolio Services), as the Backup Servicer. Capitalized terms
used herein but not otherwise defined shall have the meanings assigned to such
terms in the Credit Agreement.

 

We
hereby call to your attention that a Servicer Default has occurred and is
continuing pursuant to Section 6.12(h) of the Credit Agreement as a result of a
Material Adverse Effect with respect to the Servicer. In particular, the event
giving rise to the Material Adverse Effect is the failure of Fair Finance
Company, in its capacity as a Sub-Servicer, to perform its servicing duties
with respect to that portion of the Receivables portfolio for which it has been
retained as Sub-Servicer under its Sub-Servicing Agreement as a result of the
ongoing federal investigation of each of Timothy Durham and Fair Finance
Company. Since Summit Alternative Investments, LLC does not actively service
the referenced Receivables, the consequence of this event is that there is no
entity performing the primary “Servicer” functions set forth in the Credit
Agreement. As you are aware, a Servicer Default gives rise to an Event of
Default pursuant to Section 10.1(g) of the Credit Agreement.

 

Under
the terms of the Credit Agreement and the other Transaction Documents, the
existence of such an Event of Default entitles the Administrative Agent, for
the benefit of the Lenders, to exercise any and all of the rights and remedies
provided in the Credit Agreement, the Securities Account Control Agreement and
other Transaction Documents as set forth therein and/or as provided for under
applicable law, including without limitation, declaring the Variable Funding
Notes to be immediately due and payable in full without presentment, demand,
protest or notice of any kind and enforcing all rights and remedies with
respect to the Collateral.

 

The
Administrative Agent and the Lenders have reserved, and continue to reserve,
their rights to, at any time, take any and all actions, and exercise any and
all rights, powers, privileges and remedies authorized or permitted under the
Credit Agreement, the Securities Account Control Agreement or any other
Transaction Document and/or applicable law, at any time in its sole and
absolute discretion. No delay by the Administrative Agent or the Lenders in the
exercise of any right, power, privilege or remedy against the Borrowers or
against any Collateral shall constitute or be deemed a waiver of any such
right, power, privilege or remedy, each of which is and shall be expressly
reserved. Furthermore, any prior or current discussions (oral and written) or
course of conduct between Fortress, on the one hand, and any Borrower, the Originator,
the Servicer or any Guarantor, on the other hand, is not and has not been
intended to constitute a waiver of any such rights, powers, privileges or
remedies, or an amendment of the Credit Agreement, the Securities Account
Control Agreement or any other Transaction Document.

 

Notwithstanding
the foregoing, Fortress, as it continues to evaluate the situation, expects and
requires each Borrower, the Servicer and the Originator each to timely comply
with its respective duties and obligations under the provisions of the Credit
Agreement and the other Transaction Documents.

 

Should
you have any questions concerning the above, please contact DeWayne Chin at
(212) 515-4659.

 

2

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  FORTRESS CREDIT CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/ Constantine M. Dakolias

  
	
   

  	
  Name:
  

  	
  CONSTANTINE M. DAKOLIAS

  
	
   

  	
  Title:

  	
  PRESIDENT

  

 

3ex101.htm

     

    Exhibit
10.1

     

    DELTA
OIL & GAS, INC.

     

    2010
INCENTIVE COMPENSATION PLAN

     

    
      	
              I.  

            	
              INTRODUCTION.

            

    

     

    1.01 Purpose.  The
Delta Oil & Gas, Inc. 2010 Incentive Compensation Plan (the "Plan") is
intended to provide incentives that will attract and retain the best available
(a) directors of Delta Oil & Gas, Inc. (the “Company”), (b) employees of the
Company or any Subsidiary that now exists or hereafter is organized or acquired
by the Company, and (c) appropriate third parties who can provide valuable
services to the Company, provide additional incentive to such persons and
promote the success and growth of the Company.  These purposes may be
achieved through the grant of Options to purchase Common Stock of the Company,
the grant of Stock Appreciation Rights, the grant of Restricted Stock Awards,
the grant of Performance Stock Awards and the grant of Phantom Stock Awards, as
described below.

     

    1.02 Effective
Date.  The effective date of the Plan shall be March 8,
2010.

     

    
      	
              II.  

            	
              DEFINITIONS.

            

    

     

    2.01 “Award” means an
Incentive Stock Option, Non-Qualified Stock Option, Stock Appreciation Right,
Restricted Stock Award, Performance Stock Award or Phantom Stock Award, as
appropriate.

     

    2.02 “Award Agreement”
means the agreement between the Company and the Grantee specifying the terms and
conditions as described thereunder.

     

    2.03 “Board” means the
Board of Directors of Delta Oil & Gas, Inc.

     

    2.04 “Change in Control”
means a change in ownership or control of the Company effected through any of
the following transactions:  (a) a statutory share exchange, merger,
consolidation or reorganization approved by the Company’s stockholders, unless
securities representing more than 50% of the total combined voting power of the
voting securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly, by the persons who beneficially
owned the Company’s outstanding voting securities immediately prior to such
transaction;  (b) any stockholder approved transfer or other
disposition of all or substantially all of the Company’s assets (whether held
directly or indirectly through one or more controlled subsidiaries) except to or
with a wholly-owned subsidiary of the Company); or (c) the acquisition, directly
or indirectly by any person or related group of persons of beneficial ownership
(within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) of securities possessing more than 50% of the total
combined voting power of the Company’s outstanding securities pursuant to
transactions with the Company’s stockholders.

     

    2.05 “Code” means the
Internal Revenue Code of 1986, as it may be amended from time to
time.

     

     

    
      
         

      

      
        - 1
-

        
          

        

      

      
         

      

    

     

    2.06 “Committee” means the
committee described in Article IV or the person or persons to whom the committee
has delegated its power and responsibilities under Article IV.

     

    2.07 “Common Stock” or
“Stock” means
the common stock of the Company.

     

    2.08 “Company” means Delta
Oil & Gas, Inc., a Colorado corporation.

     

    2.09 “Fair Market Value”
means, as of any date of determination, (a) the closing sale price of a share of
Stock on the New York Stock Exchange (or on such other recognized market or
quotation system on which the trading prices of Stock are traded or quoted at
the relevant time) as reported on the composite list used by The Wall Street
Journal for reporting stock prices, or (b) if no such sale shall have been made
on that day, on the last preceding day on which there was such a sale. If such
Stock is not then listed or quoted as referenced above, Fair Market Value shall
be an amount determined in good faith by the Committee.

     

    2.10 “Grant Date” means the
date on which an Award is deemed granted, which shall be the date on which the
Committee authorizes the Award or such later date as the Committee shall
determine in its sole discretion.

     

    2.11 “Grantee” means an
individual who has been granted an Award.

     

    2.12 “Incentive Stock
Option” or “ISO” means an option
that is intended to meet the requirements of Section 422 of the Code and
regulations thereunder.  No Option may be treated as an Incentive
Stock Option unless the Plan is approved by the Company's
shareholders.

     

    2.13 “Non-Qualified Stock
Option” or “NSO” means an option
other than an Incentive Stock Option.

     

    2.14 “Option” means an
Incentive Stock Option or Non-Qualified Stock Option, as
appropriate.

     

    2.15 “Performance Goal”
means a performance goal established by the Committee prior to the grant of an
Award that is based on the attainment of goals relating to one or more of the
following business criteria measured on an absolute basis or in terms of growth
or reduction:  return on assets employed ("ROAE"), earnings per share,
total shareholder return, net income (pre-tax or after-tax and with adjustments
as stipulated), return on equity, return on capital employed, return on assets,
return on tangible book value, operating income, earnings before depreciation,
interest, taxes and amortization (“EBITDA”), loss ratio, expense ratio, stock
price, economic value added, operating cash flow and such other subjective or
objective performance goals, including individual goals, that it deems
appropriate.

     

    2.16 “Performance Stock
Award” means an Award under Article VIII of the Plan, that is conditioned
upon the satisfaction pre-established performance goals.

     

    2.17 “Phantom Stock Award”
means the right to receive in cash the Fair Market Value of a share of Common
Stock under Article IX of the Plan.

     

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    2.18 “Plan” means the Delta
Oil & Gas, Inc. 2010 Incentive Compensation Plan as set forth herein, as it
may be amended from time to time.

     

    2.19 “Restricted Stock
Award” means a restricted stock award under Article VII of the
Plan.

     

    2.20 “Stock Appreciation
Right” or “SAR” means the right
to receive cash or shares of Common Stock based upon the excess of the Fair
Market Value of one share of Common Stock on the date the SAR is exercised over
the grant price (which shall be not less than the Fair Market Value of a share
of Common Stock on the Grant Date).

     

    2.21 “Subsidiary” means any
corporation in which the Company or another entity qualifying as a Subsidiary
within this definition owns 50% or more of the total combined voting power of
all classes of stock, or any other entity (including, but not limited to,
partnerships and joint ventures) in which the Company or another entity
qualifying as a Subsidiary within this definition owns 50% or more of the
combined equity thereof.

     

    
      	
              III.  

            	
              SHARES
      SUBJECT TO AWARD.

            

    

     

    3.01 Share
Limit.  Subject to adjustment as provided in Section 3.02
below, the number of shares of Common Stock of the Company that may be issued
under the Plan shall not exceed Two Million (2,000,000) shares (the "Share
Limit"), all of which may be issued in the form of Incentive Stock Options;
provided that no individual may be granted Awards covering, in the aggregate,
more than One Million (1,000,000) shares of Common Stock in any calendar
year.  If any Award granted under this Plan is canceled, terminates,
expires, or lapses for any reason, any shares subject to such Award again shall
be available for the grant of an Award under the Plan.  Any Awards or
portions thereof that are settled in cash and not in shares of Common Stock
shall not be counted against the foregoing Share Limit.

     

    3.02 Changes in Common
Stock.  If any stock dividend is declared upon the Common
Stock, or if there is any stock split, stock distribution, or other
recapitalization of the Company with respect to the Common Stock, resulting in a
split or combination or exchange of shares, the Committee shall make or provide
for such adjustment in the number of and class of shares that may be delivered
under the Plan, and in the number and class of and/or price of shares subject to
outstanding Awards as it may, in its discretion, deem to be
equitable.

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    
      	
              IV.  

            	
              ADMINISTRATION.

            

    

     

    4.01 Administration by the
Committee.  For purposes of the power to grant Awards to
Company directors, the Committee shall consist of the entire
Board.  For other Plan purposes, the Plan shall be administered by a
committee designated by the Board to administer the Plan and shall be the
Officer Nomination and Compensation Committee of the Board.  The
Committee shall be constituted to permit the Plan to comply with the provisions
of Rule 16b-3 under the Securities Exchange Act of 1934, as amended or any
successor rule, and Section 162(m) of the Code.  A majority of the
members of the Committee shall constitute a quorum.  The approval of
such a quorum, expressed by a vote at a meeting held either in person or by
conference telephone call, or the unanimous consent of all members in writing
without a meeting, shall constitute the action of the Committee and shall be
valid and effective for all purposes of the Plan.

     

    4.02 Committee
Powers.  The Committee is empowered to adopt such rules,
regulations and procedures and take such other action as it shall deem necessary
or proper for the administration of the Plan.  The Committee shall
also have authority to interpret the Plan, and the decision of the Committee on
any questions concerning the interpretation of the Plan shall be final and
conclusive.  The Committee may consult with counsel, who may be
counsel for the Company, and shall not incur any liability for any action taken
in good faith in reliance upon the advice of counsel.  Subject to the
provisions of the Plan, the Committee shall have full and final authority
to:

     

    
      	
              (a)  

            	
              designate
      the persons to whom Awards shall be
granted;

            

    

     

    
      	
              (b)  

            	
              grant
      Awards in such form and amount as the Committee shall
      determine;

            

    

     

    
      	
              (c)  

            	
              impose
      such limitations, restrictions and conditions upon any such Award as the
      Committee shall deem appropriate;

            

    

     

    
      	
              (d)  

            	
              waive
      in whole or in part any limitations, restrictions or conditions imposed
      upon any such Award as the Committee shall deem appropriate;
      and

            

    

     

    
      	
              (e)  

            	
              modify,
      extend or renew any Award previously
granted.

            

    

     

    4.03 Delegation by
Committee. The Committee may delegate all or any part of its
responsibilities and powers to any executive officer or officers of the Company
selected by it.  Any such delegation may be revoked by the Board or by
the Committee at any time.

     

    
      	
              V.  

            	
              STOCK
      OPTIONS.

            

    

     

    5.01 Granting of Stock
Options.  Options may be granted to non-employee directors of
the Company, officers and key employees of the Company and any of its
Subsidiaries, and to appropriate third parties who can provide valuable services
to the Company.  In selecting the individuals to whom Options shall be
granted, as well as in determining the number of Options granted, the Committee
shall take into consideration such factors as it deems relevant pursuant to
accomplishing the purposes of the Plan.  A Grantee may, if he or she
is otherwise eligible, be granted an additional Option or Options if the
Committee shall so determine.  Option grants under the Plan shall be
evidenced by an Award Agreement in such form and containing such provisions as
are consistent with the Plan as the Committee shall from time to time
approve.

     

     

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    5.02 Type of
Option.  At the time each Option is granted, the Committee
shall designate the Option as an Incentive Stock Option or a Non-Qualified Stock
Option. Any Option designated as an Incentive Stock Option shall comply with the
requirements of Section 422 of the Code, including the requirement that the Plan
be approved by the Company's shareholders.  If required by applicable
tax rules regarding a particular grant, to the extent that the aggregate Fair
Market Value (determined as of the date an Incentive Stock Option is granted) of
the shares with respect to which an Incentive Stock Option grant under this Plan
(when aggregated, if appropriate, with shares subject to other Incentive Stock
Option grants made before said grant under this Plan or another plan maintained
by the Company or any ISO Group member) is exercisable for the first time by an
optionee during any calendar year exceeds $100,000 (or such other limit as is
prescribed by the Code), such option grant shall be treated as a grant of
Non-Qualified Stock Options pursuant to Code Section 422(d).

     

    5.03 Option
Terms.  Each option grant Award Agreement shall specify the
number of Options being granted; one option shall be deemed granted for each
share of stock.  In addition, each option grant Award Agreement shall
specify the exercisability and/or vesting schedule of such options, if
any.  No Incentive Stock Option shall be exercisable in whole or in
part more than ten years from the date it is granted.

     

    5.04 Purchase
Price.  The purchase price for a share subject to Option shall
not be less than 100% of the Fair Market Value of the share on the date the
Option is granted, provided, however, the purchase price of an Incentive Stock
Option shall not be less than 110% of the Fair Market Value of such share on the
date the Option is granted if the Grantee then owns (after the application of
the family and other attribution rules of Section 424(d) or any successor rule
of the Code) more than 10% of the total combined voting power of all classes of
stock of the Company.

     

    5.05 Method of
Exercise.  An Option that has become exercisable may be
exercised from time to time by written notice to the Company stating the number
of shares being purchased and accompanied by the payment in full of the Option
price for such shares.  The purchase price may be paid (a) in cash,
(b) by check, (c) with the approval of the Committee, or if the applicable
Agreement so provides, by delivering shares of Common Stock (“Delivered Stock”),
(d) by surrendering to the Corporation shares of Common Stock otherwise
receivable upon exercise of the Stock Option (a “Net Exercise”), or (e) any
combination of the foregoing.  For purposes of the foregoing,
Delivered Stock shall be valued at its Fair Market Value determined as of the
business day immediately preceding the date of exercise of the Stock Option and
shares of Common Stock used in a Net Exercise shall be valued at their Fair
Market Value determined as of the date of exercise of the Stock Option. No
Participant shall be under any obligation to exercise any Stock Option
hereunder.

     

    
      	
              VI.  

            	
              STOCK
      APPRECIATION RIGHTS.

            

    

     

    6.01 Granting of
SARs.  The Committee may, in its discretion, grant SARs to
non-employee directors of the Company, to officers and key employees of the
Company and any of its Subsidiaries, and to well as appropriate third parties
who can provide valuable services to the Company.

     

     

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

     

    6.02 SAR
Terms.  Each SAR grant shall be evidenced by an Award Agreement
that shall specify the number of SARs granted, the grant price (which shall be
not less than the Fair Market Value of a share of Common Stock on the Grant
Date), the term of the SAR, and such other provisions as the Committee shall
determine.

     

    6.03 Method of
Exercise.  An SAR that has become exercisable may be exercised
by written notice to the Company stating the number of SARs being
exercised.

     

    6.04 Payment upon
Exercise.  Upon the exercise of SARs, the Grantee shall be
entitled to receive an amount determined by multiplying (a) the difference
obtained by subtracting the grant price from the Fair Market Value of a share of
Common Stock on the date of exercise, by (b) the number of SARs
exercised.  At the discretion of the Committee, the payment upon the
exercise of the SARs may be in cash, in shares of Common Stock of equivalent
value (valued at the Fair Market Value of the Common Stock on the date of
exercise), or in some combination thereof.  The number of available
shares under Section 3.01 shall not be affected by any cash
payments.

     

    
      	
              VII.  

            	
              RESTRICTED
      STOCK AWARDS.

            

    

     

    7.01 Administration.  Shares
of Restricted Stock may be issued either alone or in addition to other Awards
granted under the Plan.  The Committee shall determine the eligible
persons to whom and the time or times at which grants of Restricted Stock will
be made, the number of shares of restricted Common Stock to be awarded, the time
or times within which such Awards may be subject to forfeiture and any other
terms and conditions of the Awards.  The Committee may condition the
grant of Restricted Stock upon the attainment of Performance Goals so that the
grant qualifies as “performance-based compensation” within the meaning of
Section 162(m) of the Code.  The Committee may also condition the
grant of Restricted Stock upon such other conditions, restrictions and
contingencies as the Committee may determine.  The provisions of
Restricted Stock Awards need not be the same with respect to each
recipient.

     

    7.02 Registration.  Any
Restricted Stock Award granted hereunder may be evidenced in such manner as the
Committee may deem appropriate, including, without limitation, book-entry
registration or issuance of a stock certificate or certificates. In the event
any stock certificate is issued in respect of shares of Restricted Stock, such
certificate shall be registered in the name of the Grantee and shall bear an
appropriate legend (as determined by the Committee) referring to the terms,
conditions and restrictions applicable to such Restricted Stock. In the event
such Restricted Stock is issued in book-entry form, the depository and the
Company’s transfer agent shall be provided with notice referring to the terms,
conditions and restrictions applicable to such Restricted Stock, together with
such stop-transfer instructions as the Committee deems appropriate.

     

    7.03 Terms and
Conditions.  Restricted Stock
Awards shall be subject to the following terms and conditions:

     

    
      	
              (a)  

            	
              Until
      the applicable restrictions lapse or the conditions are satisfied, the
      Grantee shall not be permitted to sell, assign, transfer, pledge or
      otherwise encumber the Restricted Stock
Award.

            

    

     

    
      	
              (b)  

            	
              Except
      to the extent otherwise provided in the applicable Award Agreement and (c)
      below, the portion of the Award still subject to restriction shall be
      forfeited by the Grantee upon termination of a Grantee’s service for any
      reason.

            

    

     

     

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

     

    
      	
              (c)  

            	
              In
      the event of hardship or other special circumstances of a Grantee whose
      employment is terminated (other than for cause), the Committee may waive
      in whole or in part any or all remaining restrictions with respect to such
      Grantee’s shares of Restricted
Stock.

            

    

     

    
      	
              (d)  

            	
              If
      and when the applicable restrictions lapse, unlegended certificates for
      such shares shall be delivered to the
Grantee.

            

    

     

    
      	
              (e)  

            	
              Each
      Award shall be confirmed by, and be subject to the terms of, an Award
      Agreement identifying the restrictions applicable to the
      Award.

            

    

     

    7.04 Rights as
Shareholder.  A Grantee
receiving a Restricted Stock Award shall have all of the rights of a shareholder
of the Company, including the right to vote the shares and the right to receive
any cash dividends.  Unless otherwise determined by the Committee,
cash dividends shall be automatically paid in cash and dividends payable in
stock shall be paid in the form of additional Restricted Stock.

     

    
      	
              VIII.  

            	
              PERFORMANCE
      STOCK AWARDS.

            

    

     

    8.01 Administration.  Performance
Stock Awards entitle a Grantee to receive shares of Common Stock if
predetermined conditions are satisfied.  The Committee shall determine
the eligible employees and appropriate third parties to whom and the time or
times at which Performance Stock Awards will be made, the number of shares to be
awarded, the time or times within which such Awards may be subject to forfeiture
and any other terms and conditions of the Awards.  The Committee may
condition the grant of a Performance Stock Award upon the attainment of
Performance Goals so that the grant qualifies as “performance-based
compensation” within the meaning of Section 162(m) of the Code.  The
Committee may also condition the grant of a Performance Stock Award upon such
other conditions, restrictions and contingencies as the Committee may
determine.  The provisions of Performance Stock Awards need not be the
same with respect to each recipient.

     

    8.02 Terms and
Conditions.  Performance
Stock Awards shall be subject to the following terms and
conditions:

     

    
      	
              (a)  

            	
              Until
      the applicable restrictions lapse or the conditions are satisfied, the
      Grantee shall not be permitted to sell, assign, transfer, pledge or
      otherwise encumber the Performance Stock
Award.

            

    

     

    
      	
              (b)  

            	
              Except
      to the extent otherwise provided in the applicable Award Agreement and (c)
      below, the portion of the Award still subject to restriction shall be
      forfeited by the Grantee upon termination of a Grantee’s service for any
      reason.

            

    

     

    
      	
              (c)  

            	
              In
      the event of hardship or other special circumstances of a Grantee whose
      employment is terminated (other than for cause), the Committee may waive
      in whole or in part any or all remaining restrictions with respect to such
      Grantee’s Performance Stock Award.

            

    

     

     

    
      
         

      

      
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              (d)  

            	
              If
      and when the applicable restrictions lapse, if any, unlegended
      certificates for such shares shall be delivered to the
      Grantee.

            

    

     

    
      	
              (e)  

            	
              Each
      Award shall be confirmed by, and be subject to the terms of, an Award
      Agreement identifying the restrictions applicable to the Award, if
      any.

            

    

     

    
      	
              IX.  

            	
              PHANTOM
      STOCK AWARDS.

            

    

     

    9.01 Administration.  Phantom
Stock Awards entitle a Grantee to receive cash payments based upon the Fair
Market Value of shares of Common Stock if predetermined conditions are
satisfied.  The Committee shall determine the eligible employees and
appropriate third parties to whom and the time or times at which Phantom Stock
Awards will be made, the number of shares to be covered by the Award, the time
or times within which such Awards may be subject to forfeiture and any other
terms and conditions of the Awards.  The Committee may condition the
grant of a Phantom Stock Award upon the attainment of Performance Goals so that
the grant qualifies as “performance-based compensation” within the meaning of
Section 162(m) of the Code.  The Committee may also condition the
grant of a Phantom Stock Award upon such other conditions, restrictions and
contingencies as the Committee may determine.  The provisions of
Phantom Stock Awards need not be the same with respect to each
recipient.

     

    9.02 Terms and
Conditions.  Phantom Stock
Awards shall be subject to the following terms and conditions:

     

    
      	
              (a)  

            	
              Until
      the applicable restrictions lapse or the conditions are satisfied, the
      Grantee shall not be permitted to sell, assign, transfer, pledge or
      otherwise encumber the Phantom Stock
Award.

            

    

     

    
      	
              (b)  

            	
              Except
      to the extent otherwise provided in the applicable Award Agreement and (c)
      below, the portion of the Award still subject to restriction shall be
      forfeited by the Grantee upon termination of a Grantee’s service for any
      reason.

            

    

     

    
      	
              (c)  

            	
              In
      the event of hardship or other special circumstances of a Grantee whose
      employment is terminated (other than for cause), the Committee may waive
      in whole or in part any or all remaining restrictions with respect to such
      Grantee’s Phantom Stock Award.

            

    

     

    
      	
              (d)  

            	
              If
      and when the applicable restrictions lapse, the Company shall pay to
      Grantee an amount equal to the Fair Market Value of a share of Common
      Stock multiplied by the number of shares covered by the Award for which
      the restrictions have then lapsed.

            

    

     

    
      	
              (e)  

            	
              Each
      Award shall be confirmed by, and be subject to the terms of, an Award
      Agreement identifying the restrictions applicable to the
      Award.

            

    

     

     

    
      
         

      

      
        - 8
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              X.  

            	
              EFFECT
      OF CORPORATE TRANSACTIONS.

            

    

     

    10.01 Merger, Consolidation or
Reorganization.  In the event of a merger, consolidation or
reorganization with another corporation in which the Company is not the
surviving corporation or a merger, consolidation or reorganization involving the
Company in which the Common Stock ceases to be publicly traded, the Committee
shall, subject to the approval of the Board, or the board of directors of any
corporation assuming the obligations of the Company hereunder, take action
regarding each outstanding and unexercised Award pursuant to either clause (a)
or (b) below:

     

    
      	
              (a)  

            	
              Appropriate
      provision may be made for the protection of such Award by the substitution
      on an equitable basis of appropriate shares of the surviving or related
      corporation, provided that the excess of the aggregate Fair Market Value
      of the shares subject to such Award immediately before such substitution
      over the exercise price thereof is not more than the excess of the
      aggregate fair market value of the substituted shares made subject to
      Award immediately after such substitution over the exercise price thereof;
      or

            

    

     

    
      	
              (b)  

            	
              The
      Committee may cancel such Award.  In the event any Option or SAR
      is canceled, the Company, or the corporation assuming the obligations of
      the Company hereunder, shall pay the Grantee an amount of cash (less
      normal withholding taxes) equal to the excess of (i) the value, as
      determined by the Committee, of the property (including cash) received by
      the holder of a share of Company Stock as a result of such event over (ii)
      the exercise price of such option or the grant price of the SAR,
      multiplied by the number of shares subject to such Award.  In
      the event any other Award is canceled, the Company, or the corporation
      assuming the obligations of the Company hereunder, shall pay the Grantee
      an amount of cash or stock, as determined by the Committee, based upon the
      value, as determined by the Committee, of the property (including cash)
      received by the holder of a share of Company Stock as a result of such
      event. No payment shall be made to a Grantee for any Option or SAR if the
      purchase or grant price for such Option or SAR exceeds the value, as
      determined by the Committee, of the property (including cash) received by
      the holder of a share of Company Stock as a result of such
      event.

            

    

     

    10.02 Change in
Control.  Notwithstanding any provision in the Plan to the
contrary, unless the particular Award Agreement provides otherwise, the unvested
Awards held by each Grantee shall automatically become vested upon the
occurrence, before the expiration or termination of such Award, of a Change in
Control.  Further, the Committee shall have the right to cancel such
Awards and pay the Grantee an amount determined under Section 10.01(b)
above.

     

    
      	
              XI.  

            	
              MISCELLANEOUS.

            

    

     

    11.01 Withholding.  The
Company shall have the power and the right to deduct or withhold, or require a
Grantee to remit to the Company, an amount sufficient to satisfy Federal, state,
and local taxes (including the Grantee’s FICA obligation) required by law to be
withheld with respect to any taxable event arising as a result of this
Plan. With respect
to withholding required upon the exercise of Options or SARs, upon the lapse of
restrictions on Restricted Stock or the payment of Performance Stock, Grantees
may elect to satisfy the withholding requirement, in whole or in part, by having
the Company withhold shares having a Fair Market Value on the date the tax is to
be determined equal to the minimum statutory total tax that could be imposed on
the transaction.

     

     

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

     

    11.02 No Employment or Retention
Agreement Intended.  Neither the establishment of, nor the
awarding of Awards under this Plan shall be construed to create a contract of
employment or service between any Grantee and the Company or its Subsidiaries;
it does not give any Grantee the right to continued service in any capacity with
the Company or its Subsidiaries or limit in any way the right of the Company or
its Subsidiaries to discharge any Grantee at any time and without notice, with
or without cause, or to any benefits not specifically provided by this Plan, or
in any manner modify the Company’s right to establish, modify, amend or
terminate any profit sharing or retirement plans.

     

    11.03 Non-transferability of
Awards.  Any Award granted hereunder shall, by its terms, be
non-transferable by a Grantee other than by will or the laws of descent and
shall be exercisable during the Grantee’s lifetime solely by the Grantee or the
Grantee’s duly appointed guardian or personal
representative.  Notwithstanding the foregoing, the Committee may
permit a Grantee to transfer a Non-Qualified Stock Option or SAR to a family
member or a trust or partnership for the benefit of a family member, in
accordance with rules established by the Committee.

     

    11.04 Securities
Laws.  No shares of Common Stock will be issued or transferred
pursuant to an Award unless and until all then applicable requirements imposed
by Federal and state securities and other laws, rules and regulations and by any
regulatory agencies having jurisdiction, and by any exchanges upon which the
shares of Common Stock may be listed, have been fully met. The Committee may
impose such conditions on any shares of Common Stock issuable under the Plan as
it may deem advisable, including, without limitation, restrictions under the
Securities Act of 1933, as amended, under the requirements of any exchange upon
which such shares of the same class are then listed, and under any blue sky or
other securities laws applicable to such shares. The Committee may also require
the Grantee to represent and warrant at the time of issuance or transfer that
the shares of Common Stock are being acquired only for investment purposes and
without any current intention to sell or distribute such shares.

     

    11.05 Rights as
Shareholder.  A Grantee
receiving a Performance Stock Award shall not be deemed the holder of any shares
covered by the Award, or have any rights as a shareholder with respect thereto,
until such shares are issued to him/her following the lapse of the applicable
restrictions, if any.

     

    11.06 Dissolution or
Liquidation.  Upon the dissolution or liquidation of the
Company, any outstanding Awards theretofore granted under this Plan shall be
deemed canceled.

     

    11.07 Controlling
Law.  The law of the State of Colorado, except its law with
respect to choice of law, shall be controlling in all matters relating to the
Plan.

     

    11.08 Termination and Amendment of
the Plan.  The Board may from time to time amend, modify,
suspend or terminate the Plan; provided, however, that no such action shall
impair without the Grantee’s consent any Award theretofore granted under the
Plan.

     

    
      
         

      

      
        - 10
-

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