Document:

Exhibit 10.32

 

xG TECHNOLOGY, INC.

 

2016 INCENTIVE COMPENSATION PLAN

 

1. PURPOSE

 

The purpose of the XG Technology, Inc.
2016 Incentive Compensation Plan (the “Plan”) is to promote the interests of XG Technology, Inc. (the “Company”)
and its stockholders by allowing the Company to attract and retain consultants, professionals, and service providers who provide
services to the Company (“Eligible Persons”). The Plan is expected to contribute to the attainment of these objectives
by enabling the Company to pay Eligible Persons utilizing shares of Common Stock, par value $0.00001 per share (“Shares”)
of the Company in addition to cash, the grant to such Eligible Persons of Shares which are restricted as provided in Section 5
of this Plan (“Restricted Shares”). In addition, the Plan also is expected to contribute to the attainment of these
objectives by enabling the Company to pay Eligible Persons utilizing stock options (“Options”), which Options may be
exercised for Shares.

 

2. ADMINISTRATION

 

The Plan shall be administered by the Company’s
Board of Directors or the Compensation Committee (collectively referred to as the “Board”). Subject to the provisions
of the Plan, the Board shall be authorized to interpret the Plan; to establish, amend and rescind any rules and regulations relating
to the Plan; and to make all determinations necessary or advisable for the administration of the Plan. The determinations of the
Board in the administration of the Plan, as described herein, shall be final and conclusive. Each of the Chief Executive Officer
or the Chief Financial Officer and the Secretary of the Company shall be authorized to implement the Plan in accordance with its
terms and to take such actions of a ministerial nature as shall be necessary to effectuate the intent and purposes of the Plan.
The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance
with the laws of the State of Delaware.

 

3. ELIGIBILITY

 

The class of individuals eligible to receive
Restricted Shares or Options (the “Awards”) under the Plan, shall be persons who are Eligible Persons. Eligible Persons
are those individuals who are or have been providing bona fide services to the Company that are not of a capital raising nature.
Any holder of an Award granted under the Plan shall hereinafter be referred to as a “Participant,” an “Awardee,”
or collectively as “Participants” or “Awardees.”

 

4. SHARES SUBJECT TO THE PLAN

 

(a) Subject to adjustment
as provided in Section 6, the maximum number of Shares (including Shares underlying Options) that may be delivered to Participants
under the Plan shall be $3,500,000 value of Shares (including Shares underlying Options); provided, however, that the maximum number
of Shares of Common Stock (including Shares underlying Options) with respect to which Awards may be granted to any participant
in any year is $250,000 worth of Shares. The Shares to be delivered under the Plan may consist of either Shares authorized and
reserved for the Plan or Shares subsequently acquired by the Company as treasury Shares, including Shares purchased in the open
market or in private transactions.

 

(b) In the event that
prior to the date the Plan shall terminate in accordance with Section 10, any Award granted under the Plan expires unexercised
or unvested or is terminated, surrendered or cancelled without the delivery of Shares, or any Restricted Shares are forfeited back
to the Company, then the Shares subject to such Award may be made available for subsequent Awards under the terms of the Plan.

 

     

     

    

 

5. GRANT, TERMS AND CONDITIONS OF RESTRICTED
SHARES AND/OR OPTIONS

 

(a) The Board may from
time to time grant Restricted Shares or Options under the Plan to Eligible Persons, subject to such restrictions, conditions, vesting
conditions, conditions to exercise Options, and other terms as the Board may determine. At the time a grant of an Award is made,
the Board shall determine the duration of the period (the “Restricted Period”) (if Restricted Shares are being Awarded)
during which, and the conditions under which, the Restricted Shares shall vest and no longer be subject to forfeiture to the Company.
The Board may, in its discretion, at the time a grant of Restricted Shares is made, prescribe restrictions in addition to or other
than the expiration of the Restricted Period. The Shares may deemed to be Restricted Shares by virtue of time vesting or performance
vesting milestones placed on the Shares when granted to a Participant.

 

(b) The Restricted Shares
granted under this Plan shall have the following terms and conditions:

 

(i) Nontransferability
of Restricted Shares. Restricted Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred, encumbered
or disposed of during the applicable Restricted Period or prior to the satisfaction of any other restrictions prescribed by the
Board with respect to such Restricted Shares. Notwithstanding the foregoing, Restricted Shares may be transferred pursuant to a
qualified domestic relations order, as defined in Section 414(p) of the Internal Revenue Code of 1986, as amended, or any successor
provision.

 

(ii) Termination
of Service as Eligible Person. Any Restricted Shares granted to a Participant pursuant to this Plan may be forfeited if the
Participant terminates service as a consultant to the Company for any reason other than death or total disability prior to the
expiration or termination of the applicable Restricted Period and the satisfaction of any other conditions applicable to such Restricted
Shares. Upon such forfeiture, the Chief Executive Officer, the Chief Financial Officer or the Secretary of the Company shall cause
the Restricted Shares that are forfeited to the Company to be either cancelled or retained as treasury Shares. If a Participant
shall die while serving as a consultant or if a Participant’s service as a consultant to the Company ceases as a result of
the Participant’s becoming totally disabled, all restrictions and conditions applicable to the Restricted Shares held by
the Participant shall immediately lapse.

 

(iii) Change
of Control. Upon the occurrence of a Change of Control, all restrictions and conditions applicable to the Restricted Shares
held by Participants shall immediately lapse. `Change in Control` shall mean a merger or consolidation in which securities possessing
more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred
to a person or persons different from the persons holding those securities immediately prior to such transaction, or the sale,
transfer or other disposition of all or substantially all of the Company’s assets to a non-Affiliate of the Company.

 

(iv) Award
Agreement. Each grant of Restricted Shares under this Plan shall be evidenced by an agreement with the Company which shall
contain the terms and conditions of the Restricted Shares and shall otherwise be consistent with the provisions of this Plan.

 

(c) The Board will designate
each Eligible Person to whom an Option is to be granted and will specify the number of shares of Common Stock covered by such Option.

 

(i) Option
Price. The exercise price per share for Common Stock subject to an Option shall be determined by the Board, but shall comply
with the following:

 

(a) The exercise
price per share for Common Stock subject to an Option shall not be less than one hundred percent (100%) of the Fair Market Value
on the date of grant.

 

(ii) Maximum
Option Period. The maximum period during which an Option may be exercised shall be ten (10) years from the date such Option
was granted.

 

(d) If the Board deems
it necessary or appropriate, the Company may issue, in the name of each Participant to whom Restricted Shares have been granted,
one or more stock certificates representing the total number of Restricted Shares granted to the Participant; provided that such
stock certificates bear an appropriate legend or other restriction on transfer. The Chief Executive Officer, the Chief Financial
Officer or the Secretary of the Company shall hold such stock certificates, properly endorsed for transfer, for the Participant’s
benefit until such time as the Restricted Shares are forfeited to the Company, or the applicable Restricted Period expires and
any other conditions applicable to the Restricted Shares are satisfied.

 

     

     

    

 

(e) Holders of Restricted
Shares shall not have the right to vote such Restricted Shares or the right to receive any dividends with respect to such Restricted
Shares. All distributions, if any, received by a Participant with respect to Restricted Shares as a result of any split-up, distribution,
combination of shares, or other similar transaction affecting the Shares, shall be subject to the restrictions of this Section
5.

 

(f) Upon the expiration
or termination of the applicable Restricted Period and the satisfaction of any other conditions prescribed by the Board, the restrictions
applicable to the Restricted Shares shall lapse and a stock certificate for or other appropriate documentation evidencing the number
of Restricted Shares with respect to which the restrictions have lapsed shall be delivered, free of all such restrictions, to the
Eligible Person or the Eligible Person’s beneficiary or estate, as the case may be.

 

6. ADJUSTMENT AND CHANGES IN SHARES

 

If, after the Effective Date, there is
a Share dividend or Share split, recapitalization (including payment of an extraordinary dividend), merger, consolidation, combination,
spin-off, distribution of assets to stockholders, exchange of shares, or other similar corporate change affecting the Shares, the
Board shall appropriately adjust the aggregate number of Shares (including Shares underlying Options) available for Awards under
the Plan or subject to outstanding Awards, and any other factors, limits or terms affecting any outstanding or subsequently issuable
Awards as may be appropriate.

 

7. PLAN AMENDMENT AND TERMINATION

 

The Plan shall automatically terminate
on the tenth anniversary of the Plan’s Effective Date. The Board may terminate, suspend or amend the Plan at any time without
stockholder approval except to the extent that stockholder approval is required to satisfy applicable requirements imposed by (a)
Rule 16b-3 under the Exchange Act, or any successor rule or regulation; or (b) the rules of any exchange on or through which the
Shares are then listed or traded. If the Plan is terminated, the terms of the Plan, notwithstanding such termination, shall continue
to apply to Awards granted prior to such termination.

 

8. APPLICABLE LAW AND REGISTRATION

 

The grant of Awards and the issuance of
Shares (including Shares underlying Options upon their exercise) shall be subject to all applicable laws, rules and regulations,
and to such approvals of any governmental agencies or exchanges as may be required. Notwithstanding the foregoing, no Shares or
Options shall be issued under the Plan unless the Company is satisfied that such issuance will be in compliance with applicable
federal and state securities laws. Shares issued under the Plan may be subject to such stop transfer orders and other restrictions
as the Board may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission,
any exchange on or through which the Shares are then listed or traded, or any applicable federal or state securities law. The Board
may cause a legend or legends to be placed on any certificates issued under the Plan to make appropriate reference to restrictions
within the scope of this Section 8 or other provisions of the Plan.

 

9. TAX CONSEQUENCES

 

The 2016 Incentive Compensation Plan
is not qualified under Section 401(a) of the Code. Stock awarded to an Awardee may be subject to any number of restrictions
(including deferred vesting, limitations on transfer, and forfeit-ability) imposed by the Board. In general, the receipt of
stock with restrictions will not result in the recognition of income by an Awardee until such time as the shares are either
not forfeitable or are freely transferable.

 

There are no Incentive Stock Options (as
that term is defined in Section 422 of the Code) to be awarded under the 2016 Incentive Compensation Plan. All Options awarded
will be considered Non-qualified Stock Options.

 

     

     

    

 

10. EFFECTIVE DATE AND DURATION OF PLAN

 

The Plan shall become effective on the
date of the adoption of the Plan by the Board and the Shareholders (“Effective Date”). Subject to the provisions of
Section 7, the Plan shall continue until the tenth anniversary of the Effective Date unless the Plan is terminated by exhaustion
of the Shares available for issuance under the Plan.Exhibit 4.1

EXECUTION COPY

SECOND SUPPLEMENTAL INDENTURE

SECOND SUPPLEMENTAL INDENTURE, dated as of June 24, 2016 (this "Second Supplemental Indenture"), among Coca-Cola European Partners plc (formerly known as Coca-Cola European Partners Limited), a public limited company organized under the laws of England and Wales (the "Company" or the "Guarantor"), whose registered office is located at Enterprises House, Bakers Road, Uxbridge UB8 1EZ, United Kingdom, Coca-Cola European Partners US, LLC (as successor by merger to Coca-Cola Enterprises, Inc. (formerly named International CCE Inc.) ("CCE")), a Delaware limited liability company (the "Issuer"), whose principal office is located at 2500 Windy Ridge Parkway, Atlanta, Georgia, 30339, and Deutsche Bank Trust Company Americas, as trustee (the "Trustee").

W I T N E S S E T H

WHEREAS, CCE issued $250,000,000 aggregate principal amount of 2.000% Notes due 2016 (the "2016 Notes") on August 19, 2011, $525,000,000 aggregate principal amount of 3.500% Notes due 2020 (the "2020 Notes") on September 14, 2010, $250,000,000 aggregate principal amount of 3.250% Notes due 2021 (the "2021A Notes") on August 19, 2011 and $300,000,000 aggregate principal amount of 4.500% Notes due 2021 (together with the 2016 Notes, the 2020 Notes and the 2021A Notes, the "Notes", and each, a "series" of Notes) on February 18, 2011, each pursuant to an Indenture, dated as of September 14, 2010 (the "Base Indenture") as amended and supplemented by a First Supplemental Indenture, dated as of June 14, 2016 (the "First Supplemental Indenture" and together with the Base Indenture, as amended and supplemented by this Second Supplemental Indenture, the "Indenture"), between the Issuer and the Trustee; and

WHEREAS, pursuant to a Merger Agreement, dated as of August 6, 2015 (the "Merger Agreement") among the Issuer, the Company, Coca-Cola European Partners Holdings US, Inc. (formerly known as Orange U.S. HoldCo, LLC) and CCE, CCE has merged with and into the Issuer (the "Merger"), with the Issuer continuing as the surviving company and an indirect wholly owned subsidiary of the Company as part of the combination of CCE and the companies that own the Coca-Cola bottling operations in Germany, the Iberian Region and Iceland under the Company, a newly-formed holding company organized under the laws of England and Wales (such combination, the "Combination"); and

WHEREAS, as a result of the Merger, the Issuer has assumed the due and punctual payment of the principal of (and premium, if any) and interest on CCE's outstanding Notes and affirmed, pursuant to the First Supplemental Indenture, such assumption and its assumption of performance of every covenant of the Base Indenture, on the part of CCE to be performed or observed by CCE; and

WHEREAS, the Company desires to provide its guarantee with respect to each series of the Notes, pursuant to this Second Supplemental Indenture; and

WHEREAS, Section 901(9) of the Base Indenture expressly permits the Issuer and the Trustee, subject to certain conditions, to enter into one or more supplemental indentures for the purposes, inter alia, of making any other provisions with respect to matters or questions arising under the Indenture, provided such action shall not adversely affect the interests of the Holders of the Notes of any series and any related coupons in any material respect, and permits the execution of such supplemental indentures without the consent of the Holders of any Notes then outstanding; and

 

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WHEREAS, the Issuer has determined that the provision of the Company's guarantee of the Notes will not adversely affect the rights of any Holder of the Notes in any material respect; and

WHEREAS, for the purposes recited above, and pursuant to due corporate action, the Company and the Issuer have duly determined to execute and deliver to the Trustee this Second Supplemental Indenture; and

WHEREAS, all conditions and requirements necessary to make this Second Supplemental Indenture a valid instrument in accordance with its terms have been done and performed, and the execution and delivery hereof have been in all respects duly authorized.

NOW, THEREFORE, in consideration of the premises, the Company, the Issuer and the Trustee mutually covenant and agree as follows:

ARTICLE 1. DEFINITIONS.

1.1     All terms contained in this Second Supplemental Indenture shall, except as specifically provided herein or except as the context may otherwise require, have the meanings given to such terms in the Base Indenture.

ARTICLE 2. GUARANTEE

2.1     Guarantee.     (a)     The Guarantor hereby fully and unconditionally guarantees (the "Guarantee") to each Holder, the due and punctual payment of the principal of (and premium, if any, on) and interest (including, in case of default, interest on principal and, to the extent permitted by applicable law, on overdue interest and including any additional interest required to be paid according to the terms of the Notes), if any, on each Note, when and as the same shall become due and payable, whether at the Maturity, upon redemption, upon acceleration, upon tender for repayment at the option of any Holder or otherwise, according to the terms of the Notes and of the Indenture (the "Guarantor Obligations"). In case of the failure of the Issuer or any successor thereto punctually to pay any such principal, premium or interest payment, the Guarantor hereby agrees to cause any such payment to be made punctually when and as the same shall become due and payable, whether at the Maturity, upon redemption, upon declaration of acceleration, upon tender for repayment at the option of any Holder or otherwise, as if such payment were made by the Issuer. The Guarantor agrees that the Guarantee is a guarantee of payment and not merely of collection. The Guarantor further agrees that the Guarantor Obligations may be extended or renewed, in whole or in part, without notice or further assent from the Guarantor, and that the Guarantor shall remain bound under this Guarantee notwithstanding any such extension or renewal.

 

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(b)          The Guarantor hereby agrees that its Guarantor Obligations hereunder shall be as if it were principal debtor and not merely surety and shall be absolute and unconditional, irrespective of the identity of the Issuer, the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver, forbearance or consent by the Holder with respect to any provisions thereof, the recovery of any judgment against the Issuer or any action to enforce the same, or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the Guarantor.  The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest, notice and all demands whatsoever and covenants that the Guarantee will not be discharged except by complete performance of its obligations contained in the Notes and in this Guarantee.

(c)          The Guarantor hereby agrees that, in the event of a default in payment of principal or premium, if any, or interest on any Note, whether at its Maturity, by acceleration, purchase or otherwise, legal proceedings may be instituted by the Holder of any Note, subject to the terms and conditions set forth in the Notes and the Indenture, directly against the Guarantor to enforce its Guarantee without first proceeding against the Issuer.

(d)          If any Holder, the Trustee or any Paying Agent is required by any court or otherwise to return to the Issuer or the Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuer or the Guarantor, any amount paid in respect of a Note by any of them to the Trustee, any Paying Agent or such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

(e)          This Guarantee shall remain in full force and effect and continue to be effective should any petition be filed by or against the Issuer for liquidation, reorganization, should the Issuer become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of the Issuer's assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of any Note are, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on any Note, whether as a "voidable preference", "fraudulent transfer" or otherwise, all as though such payment or performance had not been made. In the event that any payment or any part thereof is rescinded, reduced, restored or returned, any Note shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

2.2     Severability.     In case any provision of this Guarantee shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

2.3     Priority of Guarantee.     This Guarantee shall be an unsecured and unsubordinated obligation of the Guarantor, ranking pari passu with all other existing and future unsubordinated and unsecured indebtedness of the Issuer and the Guarantor, respectively.

 

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2.4     Limitation of Guarantor's Liability.     The Guarantor and by its acceptance hereof each Holder confirms that it is the intention of all such parties that this Guarantee does not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal, state or other applicable law or the provisions of its local law relating to fraudulent transfer or conveyance. To effectuate the foregoing intention, the Holders and the Guarantor hereby irrevocably agree that the obligations of the Guarantor under this Guarantee shall be limited to the maximum amount that will not, after giving effect to all other contingent and fixed liabilities of the Guarantor, result in the obligations of the Guarantor under this Guarantee constituting such fraudulent transfer or conveyance.

2.5     Subrogation.     The Guarantor shall be subrogated to all rights of Holders against the Issuer in respect of any amounts paid by the Guarantor on account of the Notes or the Indenture; provided, however, that, if an Event of Default has occurred and is continuing, the Guarantor shall not be entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation until all amounts then due and payable by the Issuer under the Indenture or the Notes shall have been paid in full.

2.6     Reinstatement.     The Guarantor hereby agrees that its Guarantee provided for in Section 2.1 shall continue to be effective or be reinstated, as the case may be, if at any time, payment, or any part thereof, of any obligations or interest thereon is rescinded or must otherwise be restored by a Holder to the Issuer upon the bankruptcy or insolvency of the Issuer or the Guarantor. Subject to the preceding sentence, once released in accordance with its terms, the Guarantee shall not be required to be reinstated for any reason.

2.7     Release of Guarantor.    (a)     So long as no Event of Default exists or upon the occurrence of the following events, with notice or lapse of time or both, would exist, this Guarantee and any Liens securing this Guarantee shall be automatically and unconditionally released and discharged:

(i)     upon any sale, exchange or transfer to any Person that is not an affiliate of the Guarantor of all of the Guarantor's capital stock in the Issuer, which transaction is otherwise in compliance with the Indenture and the Notes;

(ii)     upon any consolidation or merger of the Issuer with or into the Guarantor, which transaction is otherwise in compliance with the Indenture and the Notes; or

(iii)     with respect to any series of Notes, upon the redemption, defeasance, retirement or any other discharge in full of such series of Notes.

(b)     Upon written instruction from the Issuer, the Trustee shall execute and deliver any documents, instructions or instruments evidencing any release of the Guarantee.

2.8     Benefits Acknowledged.     The Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and the Notes and that its guarantee and waivers pursuant to the Guarantee are knowingly made in contemplation of such benefits.

 

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ARTICLE 3. MISCELLANEOUS.

3.1     Ratification of Indenture.  The Indenture, as supplemented by this Second Supplemental Indenture, is in all respects ratified and confirmed, and this Second Supplemental Indenture shall be deemed a part of the Indenture in the manner and to the extent herein and therein provided.

3.2     Governing Law.  This Second Supplemental Indenture and the Guarantee shall be governed by, and construed in accordance with, the laws of the State of New York without regard to conflicts of law principles of such State other than New York General Obligations Law Section 5-1401.

3.3     Counterparts.  This Second Supplemental Indenture may be executed in several counterparts, each of which shall be an original, and all collectively but one and the same instrument.

3.4     The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Second Supplemental Indenture or for or in respect of the recitals contained herein, all of which are made solely by the Company and the Issuer.  All rights, privileges, protections, indemnities and benefits granted or afforded to the Trustee under the Indenture shall be deemed incorporated herein by this reference and shall be applicable to all actions taken, suffered or omitted by the Trustee under this Second Supplemental Indenture.

[Signature page follows]

 

 

 

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be executed as of the date first above written.

	 	
COCA-COLA EUROPEAN PARTNERS PLC, as Guarantor

	 	 	
 

	
 

	
By:

	
/s/ Joyce King-Lavinder

	 	
Name:

	
Joyce King-Lavinder

	 	
Title:

	
Attorney in fact

	 	
COCA-COLA EUROPEAN PARTNERS US, LLC,

as Issuer

	 	 	
 

	
 

	
By:

	
/s/ Joyce King-Lavinder

	 	
Name:

	
Joyce King-Lavinder

	 	
Title:

	
Authorized Manager

 

 

[Second Supplemental Indenture Signature Page]

 

	 	
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

	 	 	
 

	
 

	
By:

	
/s/ Carol Ng

	 	
Name:

	
Carol Ng

	 	
Title:

	
Vice President

 

	
 

	
By:

	
/s/ Li Jiang

	 	
Name:

	
Li Jiang

	 	
Title:

	
Vice President

 

 

 

 

 

 

[Second Supplemental Indenture Signature Page]

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