Document:

Unassociated Document

Exhibit 10.134

 

THIRD AMENDMENT TO CONSTRUCTION, ACQUISITION

AND INTERIM LOAN AGREEMENT AND TO GUARANTIES

 

This Third Amendment to Construction, Acquisition and Interim Loan Agreement and to Guaranties (this “Amendment”) is made as of April 8, 2011 (the “Amendment Effective Date”) by and among KEYBANK NATIONAL ASSOCIATION, a national banking association for itself and as Administrative Agent for the Lenders (as such capitalized terms, and any other capitalized terms used in this Amendment and not otherwise defined, are defined in the Loan Agreement described below), KIERLAND CROSSING, LLC, a Delaware limited liability company (“Borrower”), GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership (“Guarantor”) and the financial institutions which are signatories hereto (together with KeyBank National Association in its individual capacity, collectively the “Lenders”).

 

RECITALS

 

WHEREAS, the Administrative Agent, the Lenders and the Borrower entered into that certain Construction, Acquisition and Interim Loan Agreement dated as of November 30, 2007 (the “Original Agreement”), as amended by a First Amendment to Construction, Acquisition and Interim Loan Agreement and to Limited Payment and Performance Guaranty dated as of May 14, 2010 (the “First Amendment”) and a Second Amendment to Construction, Acquisition and Interim Loan Agreement and to Guaranties dated as of October 15, 2010 (the “Second Amendment” and collectively with the Original Agreement and the First Amendment, the “Loan Agreement”);

 

WHEREAS, in connection with the Loan Agreement, Guarantor has, among other things, executed and delivered that certain Limited Payment and Performance Guaranty dated as of November 30, 2007, as amended by the First Amendment and the Second Amendment, for the benefit of the Lenders with respect to the obligations of Borrower under the Loan Agreement and the other Loan Documents (the “Payment Guaranty”);

 

WHEREAS, in connection with the Loan Agreement, Guarantor has, among other things, executed and delivered that certain Completion and Payment Guaranty dated as of November 30, 2007, as amended by the Second Amendment, for the benefit of the Lenders with respect to the obligations of Borrower under the Loan Agreement and the other Loan Documents (the “Completion Guaranty”, and together with the Payment Guaranty, the “Guaranties”);

 

WHEREAS, the Borrower and Guarantor have requested that the Administrative Agent and the Lenders agree to increase the current Maximum Loan Amount, modify the conditions to the First Extension Option and make certain other modifications to the Loan Agreement and the Guaranties;

 

WHEREAS, the Administrative Agent and the Required Lenders are willing to make such modifications provided that the current maximum Loan Commitment is reduced, the maximum Loan Commitment applicable at the beginning of the Second Extension Period is reduced and no further increases therein are permitted during the Second Extension Period and certain other modifications to the Loan Agreement and the Guaranties are made;

 

NOW THEREFORE in consideration of the foregoing and the mutual covenants agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Amendment Effective Date. This Amendment shall become effective upon the Amendment Effective Date, which is the date on which this Amendment has been executed by the Borrower, the Guarantor and the Required Lenders and delivered to the Administrative Agent.

 

  

  

  

2. Changes to Defined Terms. Section 1 of the Loan Agreement, along with the Recitals thereto, shall be amended, as of the Amendment Effective Date, by deleting the existing definitions of “Loan Commitment” and “Pro Forma DSCR” in their entirety and replacing them with the following:

 

“Loan Commitment” means $165,000,000, subject to (i) reduction at the option of Borrower as provided in Section 2.1(a) below and (ii) mandatory reduction upon the first day of the Second Extension Period, if exercised, to the then-current Maximum Loan Amount.  The respective Percentages of the Lenders with respect to the Loan Commitment are set forth in Schedule 1.1.

 

“Pro Forma DSCR” means, as of any date, the ratio of (A) the then-current Pro Forma NOI  to (B) the then-current Implied Annual Debt Service using the then-current Maximum Loan Amount or, for purposes of determining any increase in the Maximum Loan Amount under Section 2.1(a) below based on an Appraisal which Borrower elects to direct the Administrative Agent to order prior to June 30, 2011, the greatest Maximum Loan Amount that will not cause the Pro Forma DSCR to be less than 1.25 to 1.0.

 

3. New Defined Terms.  The following new defined terms are added to Section 1 of the Loan Agreement as of the Amendment Effective Date:

 

“Third Amendment Effective Date” means April 8 , 2011.”

 

4. Maximum Loan Amount. Subsection (a) of Section 2.1 of the Loan Agreement shall be amended as of the Amendment Effective Date by deleting existing Subsection 2.1(a) and replacing it with the following:

 

“(a) The maximum aggregate amount of all Loans to be made hereunder (the “Maximum Loan Amount”) shall be $143,600,000 as of the Third Amendment Effective Date. Borrower shall have the option to seek a subsequent increase in the Maximum Loan Amount to an amount determined as set forth below by directing Administrative Agent not later than June 30, 2011 to order at Borrower’s expense an updated Appraisal.  The increased Maximum Loan Amount based on such Appraisal shall equal the lowest of (A) seventy-five percent (75%) of the projected value of the full Project on Stabilization as set out in such Appraisal and approved by the Administrative Agent or (B) the largest Maximum Loan Amount that will produce a Pro Forma DSCR of 1.25 to 1.0 or (C) one hundred percent (100%) of the projected value indicated in such updated Appraisal for Phase I and Phase II of the Project alone at Stabilization, provided that in no event shall the Maximum Loan Amount be increased as a result of such Appraisal to an amount in excess of $150,000,000. Any such increase in the Maximum Loan Amount shall become effective five (5) Business Days after such updated Appraisal of the Project has been approved by the Administrative Agent. If the Maximum Loan Amount shall at any time be less than the then current Outstanding Loan Amount, then Borrower shall, within five (5) business days after written demand from the Administrative Agent, either (i) repay a sufficient amount of Loans to reduce the Outstanding Loan Amount to an amount equal to or less than the reduced Maximum Loan Amount or (ii) deposit funds into a cash collateral account with the Administrative Agent for the benefit of the Lenders sufficient, when added to such Maximum Loan Amount, to equal or exceed the then current Outstanding Loan Amount.

 

The Maximum Loan Amount shall be subject to increase to a Maximum Loan Amount of up to $165,000,000 as selected by Borrower provided that (A) Tenants have either accepted possession of their demised premises for purposes of installing tenant improvements therein or taken occupancy of such demised premises for business purposes under their Leases (which Leases have been approved by the Administrative Agent to the extent required hereunder) at rental rates which would provide for an In-Place DSCR of at least 1.25 to 1.0 using such increased Maximum Loan Amount, (B) an updated Appraisal indicates a projected value of the Project at Stabilization sufficient to cause such increased Maximum Loan Amount to be seventy-five percent (75%) or less of such projected value and (C) if the Phase III Substantial Completion has not previously been achieved, the projected value indicated in such Appraisal for Phase I and Phase II of the Project alone at Stabilization is sufficient to cause such increased Maximum Loan Amount to be ninety percent (90%) or less of such projected value of Phase I and Phase II only. Such an increase shall be effected within five (5) Business Days after an updated Appraisal of the Project has been obtained upon request of Borrower and approved by the Administrative Agent and the Borrower has submitted to the Administrative Agent a certificate and such supporting documentation as the Administrative Agent may reasonably require to evidence that the foregoing conditions have been achieved.

 

  

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Borrower shall have the right at any time on not less than five (5) Business Days prior written notice to the Administrative Agent to elect to permanently reduce the Loan Commitment from $165,000,000 to such lesser amount as Borrower may specify in such notice. Notwithstanding anything else to the contrary in this Section 2.1(a), if Borrower so exercises its right to permanently reduce the Loan Commitment, (i) if the Maximum Loan Amount in effect at the time of such reduction exceeds the reduced Loan Commitment so specified, the Maximum Loan Amount shall be automatically reduced to such reduced Loan Commitment amount and (ii) the Maximum Loan Amount may not be thereafter increased beyond such reduced Loan Commitment amount. Any such reduction in the Loan Commitment shall reduce the Commitments of the Lenders on a pro rata basis and, if the Outstanding Loan Amount is in excess of such reduced Loan Commitment, such reduction shall be conditioned upon Borrower repaying a sufficient amount of Loans to reduce the Outstanding Loan Amount to an amount equal to or less than the proposed reduced Loan Commitment.  Borrower may not elect to make any such reduction in the Loan Commitment which would cause any increase in the Borrower’s Equity Requirement.

 

5. Extension Options. Article 2 of the Loan Agreement is hereby amended by deleting  Section 2.6 in its entirety and replacing it with the following:

 

“2.6           Extension of Maturity Date

 

.  The Borrower shall have two (2) options (“Extension Options”) to extend the Maturity Date, one for a period of twelve (12) months ending on the First Extended Maturity Date (the “First Extension Option”) and the second for a period of twelve (12) months ending on the Second Extended Maturity Date (the “Second Extension Option”), upon satisfaction of the following conditions precedent:

 

(a) As of the date of Borrower’s delivery of notice of its intent to exercise an Extension Option, and as of the then-current Maturity Date, no Event of Default shall have occurred and be continuing and Borrower shall so certify in writing;

 

(b) Borrower shall provide Administrative Agent with written notice of the Borrower’s intent to exercise an Extension Option not less than forty-five (45) days prior to the then-current Maturity Date;

 

(c) Substantial Completion shall have occurred;

 

(d) As of the initial Maturity Date, Borrower or Guarantor shall have entered into and collaterally assigned to the Administrative Agent for the benefit of the Lenders an interest rate swap agreement with a counterparty which is a Lender or another financial institution approved by the Administrative Agent pursuant to an interest rate swap agreement providing Borrower with payments at a fixed rate on a notional amount equal to $125,000,000 for the full twelve (12) months of the First Extension Option period in exchange for the counterparty’s agreement to make payments equal to the aggregate interest that would accrue on such notional amount during the First Extension Option Period, assuming interest accrues at the LIBOR Base Rate in a series of twelve (12) one-month LIBOR Interest Periods, provided however that such interest rate swap agreement shall not in any event be secured by the Project;

 

  

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(e) As of the date of Borrower’s delivery of notice of its intent to exercise the Second Extension Option and as of the First Extended Maturity Date, (A) the Actual DSCR is not less than 1.25 to 1.00 and (B) the Outstanding Loan Amount does not exceed seventy-five percent (75%) of the then-current value of the Project based on an Appraisal of the Project on an “as is” basis approved by the Administrative Agent, or if the Actual DSCR is less than 1.25 to 1.0, or the percentage of such value of the Project established by the Appraisal represented by the Outstanding Loan Amount is greater than 75% as of the date of delivery of such notice, then not later than the First Extended Maturity Date Borrower shall have made sufficient repayments of the Loans so that both of such criteria are satisfied (the “Second Extension Option Required Payment Amount”).  Notwithstanding anything herein to the contrary, no increase in the Outstanding Loan Amount shall be permitted after the First Extended Maturity Date under any circumstances.  In addition, not later than the First Extended Maturity Date, Borrower or Guarantor shall have entered into and collaterally assigned to the Administrative Agent for the benefit of the Lenders an interest rate swap agreement with a counterparty which is a Lender or another financial institution approved by the Administrative Agent pursuant to an interest rate swap agreement providing Borrower with payments at a fixed rate on a notional amount equal to $125,000,000 for the full twelve (12) months of the Second Extension Option period in exchange for the counterparty’s agreement to make payments equal to the aggregate interest that would accrue on such notional amount during the Second Extension Option Period, assuming interest accrues at the LIBOR Base Rate in a series of twelve (12) one-month LIBOR Interest Periods, provided however that such interest rate swap agreement shall not in any event be secured by the Project.

 

f) with respect each Extension Option on the last Business Day immediately preceding the first day of such Extension Option, Administrative Agent is paid a fee for the ratable benefit of the then-current Lenders equal to ten one-hundredths of one percent (0.10%) of the then-current  Outstanding Loan Amount (an “Extension Fee”).”

 

6. Amendments to Payment Guaranty. Guarantor hereby agrees that, as of the Amendment Effective Date, the Payment Guaranty shall be amended as follows:

 

(a) The second grammatical paragraph of Paragraph 1 of the Payment Guaranty shall be deleted and replaced with the following:

 

“Notwithstanding the foregoing, Guarantor’s aggregate liability remaining hereunder as of any date with respect to the principal of the Notes as described in subparagraph (a) of this Paragraph 1 shall in no event exceed the sum of (i) the amount obtained by multiplying the then-current Guaranteed Percentage by the then-current Maximum Loan Amount (as it may have been increased or decreased in accordance with Section 2.1(a) of the Loan Agreement) plus (ii) one hundred percent (100%) of an amount equal to the Second Extension Option Required Payment Amount, whether or not Borrower has elected to exercise the Second Extension Option under Section 2.6(e) of the Loan Agreement, with the obligation of Guarantor under this clause (ii) only commencing to accrue on the first to occur of (A) date of Borrower’s exercise of the Second Extension Option or (B) the First Extended Maturity Date and being released upon payment in full of such Second Extension Option Required Payment Amount, (collectively, the “Guaranteed Amount”).  Such limitation regarding the Guaranteed Percentage of the principal of the Notes shall not apply to interest, fees or any other amounts which comprise the Facility Indebtedness or to the Enforcement Costs, liability for which shall not be limited hereunder.  The term “Guaranteed Percentage” as used in this Paragraph 1 shall be fifty percent (50%).  In no event shall the Guaranteed Amount be reduced as a result of (i) principal payments made by Borrower, Guarantor or any other party with respect to the Facility Indebtedness unless and until (A) the Facility has been fully disbursed, (B) Phases I and II of the Project have been Substantially Completed, (C) unless the Borrower has properly elected not to construct the Phase III Retail Unit in accordance with Section 2.8 of the Loan Agreement, Phase III Substantial Completion has been achieved and (D) such principal payments have caused the remaining Outstanding Loan Amount to be less than the then-current Guaranteed Amount; or (ii) Administrative Agent’s foreclosure or acceptance of a deed in lieu of foreclosure with respect to any collateral securing the Indebtedness; or (iii) the payment to Administrative Agent by Guarantor of any amount pursuant to and under that certain Non-Recourse Exception Guaranty Agreement of even date herewith made by Guarantor, in favor of Administrative Agent, that certain Completion and Payment Guaranty of even date herewith made by Guarantor in favor of Administrative Agent or that certain Environmental Indemnity Agreement of even date herewith made by Guarantor and Borrower in favor of Administrative Agent. Guarantor’s obligations shall not be affected, impaired, lessened or released by loans, credits or other financial accommodations now existing or hereafter advanced by Administrative Agent or any Lender to Borrower in excess of the Guaranteed Amount”;

 

  

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and

 

(b) Paragraph 17 of the Payment Guaranty shall be deleted and replaced in its entirety by the following:

 

“17.           Guarantor covenants and agrees, at all times through the date of full and final payment of the Facility Indebtedness of Borrower to the Administrative Agent and the Lenders, to comply, and cause the Consolidated Group to comply, with those financial covenants set forth in Sections 6.17, 6.18(c) and 6.18(d) of that certain Second Amended and Restated Credit Agreement dated as of March 30, 2011, by and among Guarantor, KeyBank National Association, as Administrative Agent and individually as a lender, and certain other lenders, as such Sections, and the defined terms used therein, exist as of March 30, 2011.  Guarantor acknowledges and agrees that its obligation to comply with such financial covenants and the defined terms used therein as they exist on March 30, 2011 shall continue, notwithstanding any amendment, modification or termination of such Second Amended and Restated Credit Agreement thereafter unless the Requisite Lenders shall have agreed in writing to amend or modify such financial covenants or the defined terms used therein.”

 

7. Future Appraisals. Section 15.2 of the Loan Agreement shall be amended as of the Amendment Effective Date by deleting the existing first sentence of Section 15.2 and replacing it in its entirety by the following: “The Administrative Agent shall have the right to obtain new or updated Appraisals of the Project from time to time, provided that the Administrative Agent and the Lenders agree that any such new or updated Appraisal (other than the Appraisals expressly specifically required under this Agreement to be obtained as a condition to an increase in the Maximum Loan Amount under Section 2.1(a) hereof or as a condition to any extension of the Maturity Date under Section 2.6 hereof) shall not give rise to any adjustment to the Maximum Loan Amount or the Loan Commitment.”

 

8. Lender Assignments.  Section 18.7 of the Loan Agreement is hereby amended by adding the following new subsection (f) at the end of such Section:

 

“(f)           Notwithstanding anything to the contrary contained herein, the pledge or assignment by a Lender (the “Transferring Lender”) of all or any part of its rights under this Agreement and the other Loan Documents (the “Transferred Interest”) to a trustee, administrator or receiver or their respective nominees, collateral agents or collateral trustees (a “Security Trustee”) of a mortgage pool securing covered mortgage bonds issued by an eligible German bank (Pfandbriefbanken) permitted to issue covered mortgage bonds (Hypothekenpfandbriefe) under German bond law (Pfandbriefgesetz 2005, as the same may be amended or modified and in effect from time to time, and/or any substitute or successor legislation thereto) (any such pledge or assignment, a “Pfandbrief Transfer”) shall be included in the pledges and assignments permitted under the last sentence of Section 18.7(a) on the conditions stated in such sentence and subject to the following additional conditions:

 

  

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(a)           Any further pledge or assignment by the Security Trustee of the Transferred Interest or any acquisition of the Transferred Interest by any Person other than the Security Trustee (each, an “Additional Transfer”) shall require the prior written consent of Administrative Agent in accordance with this Agreement.

 

(b)           Neither the Pfandbrief Transfer, nor any foreclosure on the Transferred Interest, nor any Additional Transfer, shall result in the release of the Transferring Lender from any of its obligations under this Agreement or the other Loan Documents (and the Transferring Lender shall remain responsible for all of the obligations originally incurred by it under this Agreement and the other Loan Documents with respect to the Transferred Interest), except, in the case of any such Additional Transfer that complies with the terms and provisions of the Loan Documents pursuant to which the Transferring Lender would be released from its obligations accruing from and after the Additional Transfer, for the obligations accruing from and after such Additional Transfer.  Consequently, notwithstanding the Pfandbrief Transfer, nor any foreclosure on the Transferred Interest, nor any Additional Transfer, the Transferring Lender shall remain obligated to fund its share of all Loans, all expense reimbursements (including, without limitation, as required pursuant to Section 17.7), all indemnification payments (including, without limitation, as required pursuant to Section 17.7) and all other amounts originally required to be funded by the Transferring Lender under the Loan Documents to the same extent as if no Pfandbrief Transfer, foreclosure on the Transferred Interest, or any Additional Transfer had occurred (except if such Additional Transfer complies with the terms and provisions of the Loan Documents pursuant to which the Transferring Lender would be released from its obligations accruing from and after the Additional Transfer, in which case the Transferring Lender shall be released from any such obligations accruing from and after such Additional Transfer in accordance with the terms of the Loan Documents).

 

(c)           Notwithstanding the Pfandbrief Transfer, or any foreclosure on the Transferred Interest, or any Additional Transfer, the Transferring Lender (and not the Security Trustee or any other transferee or assignee) shall have the exclusive right and power to exercise any and all approval, consent and voting rights under the Loan Documents that relate to the Transferred Interest, except that, in the case of an Additional Transfer that complies with the terms and provisions of the Loan Documents pursuant to which the Transferring Lender would be released from its obligations accruing from and after the Additional Transfer, the transferee or assignee shall succeed to the rights and powers originally held by the Transferring Lender to exercise any and all approval, consent and voting rights under the Loan Documents with respect to the Transferred Interest.

 

(d)           The interest acquired by the Security Trustee pursuant to the Pfandbrief Transfer or any foreclosure on the Transferred Interest, and the interest acquired by any other Person pursuant to any Additional Transfer, shall remain subject to all rights, defenses, offsets, claims and counterclaims which Administrative Agent, any Lender or Borrower may have against the Transferring Lender (including, without limitation, any such rights, defenses, offsets, claims and counterclaims that arise pursuant to Section 18.26), except, in the case of an Additional Transfer that complies with the terms and provisions of the Loan Documents pursuant to which the Transferring Lender would be released from its obligations accruing from and after the Additional Transfer, for any rights, defenses, offsets, claims and counterclaims which Administrative Agent, any Lender or Borrower may have against the Transferring Lender as a result of any acts or occurrences from and after the date of such Additional Transfer.

 

  

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(e)           Notwithstanding the Pfandbrief Transfer, or any foreclosure on the Transferred Interest, or any Additional Transfer, Administrative Agent, any Lender and Borrower shall be entitled to deal exclusively with the Transferring Lender as the “Lender” with respect to the Transferred Interest, except in the case of an Additional Transfer which complies with the terms and provisions of the Loan Documents pursuant to which the Transferring Lender would be released from its obligations accruing from and after the Additional Transfer, in which case Administrative Agent, any Lender or Borrower shall be entitled to deal with the transferee or assignee of the Transferred Interest.

 

(f)           None of the Pfandbrief Transfer, nor any foreclosure on the Transferred Interest, nor any Additional Transfer shall affect or change in any way any of the rights or obligations with respect to the Transferred Interest. Without limiting the foregoing, any rights or claims of the pledgee or transferee of the Transferred Interest against Administrative Agent shall be subject to the same limitations and exculpations as are set forth with respect to the rights and claims of a “Lender” against Administrative Agent contained herein (including, without limitation, Article 17), and shall not in any event be greater than the rights or claims that could have been asserted by the Transferring Lender in accordance with the Loan Documents with respect to the Transferred Interest had such Pfandbrief Transfer, foreclosure on the Transferred Interest or Additional Transfer not occurred.

 

(g)           The pledgee or transferee of any interest pursuant to the Pfandbrief Transfer, any foreclosure on the Transferred Interest or any Additional Transfer shall be bound by the provisions of this Agreement as if it were a “Lender” hereunder.

 

(h)           The Transferring Lender shall promptly reimburse Administrative Agent for any and all out-of-pocket costs and expenses incurred by Administrative Agent in connection with Administrative Agent’s consideration of the request for the consent set forth herein and in connection with the negotiation and documentation of the same, including, without limitation, reasonable legal fees and expenses.”

 

9. References. Each of the parties hereby consents to all of the changes made to the Loan Agreement and to the Guaranties pursuant to this Amendment and agrees that each reference in the Loan Documents to the Loan Agreement and to the Guaranties shall deemed to be a reference to the Loan Agreement and the Guaranties as amended by this Amendment.

 

10. Representations and Warranties. Borrower hereby remakes, as of the Amendment Effective Date, all of the representations and warranties of Borrower in Section 4 of the Loan Agreement and each reference therein to “the date hereof” or “the Agreement Effective Date” shall be deemed to be a reference to the Amendment Effective Date.  Borrower hereby further represents and warrants to Agent and Lenders as follows:

 

(a) This Amendment constitutes the legal, valid and binding obligation of Borrower, and is enforceable in accordance with its terms;

 

(b) Except as expressly modified hereby, the Loan Documents are ratified and confirmed hereby, are in full force and effect, and Borrower has no defenses or offsets to the enforcement thereof or counterclaims which relate thereto;

 

(c) Upon execution and delivery of this Amendment and satisfaction of the conditions to the effectiveness of this Amendment, to the best of Borrower’s knowledge, information and belief, no Event of Default shall exist under the Loan Documents;

 

  

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(d) Borrower and Guarantor each have full power and authority to execute this Amendment; and

 

(e) The Advances have been and shall be requested by Borrower, and the proceeds of the Advances have been and shall be utilized by Borrower, for its own account.

 

11. Governing Law.  This Amendment shall be construed in accordance with the internal laws (and not the law of conflicts) of the State of Ohio, but giving effect to Federal laws applicable to national banks.

 

12. Release of Prior Claims

 

.  Borrower and Guarantor each do hereby release, remise, acquit and forever discharge the Administrative Agent and the other Lenders and their respective employees, agents, representatives, consultants, attorneys, fiduciaries, servants, officers, directors, partners, predecessors, successors and assigns, subsidiary corporations, parent corporations, and related corporate divisions (all of the foregoing hereinafter called the “Released Parties”), from any and all actions and causes of action, judgments, executions, suits, debts, claims, demands, liabilities, obligations, damages and expenses of any and every character, known or unknown, direct and/or indirect, at law or in equity, of whatever kind or nature, whether heretofore or hereafter arising, for or because of any matter or things done, omitted or suffered to be done by any of the Released Parties prior to and including the date of execution hereof, and in any way arising out of or in any way connected to the Loan Agreement, the Payment Guaranty or the other Loan Documents (all of the foregoing hereinafter called the “Released Matters”).  Borrower and Guarantor each acknowledges that the agreements herein are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Released Matters.  Borrower and Guarantor each represents and warrants to the Administrative Agent and the other Lenders that it has not purported to transfer, assign or otherwise convey any right, title or interest of Borrower or Guarantor in any Released Matter to any other Person and that the foregoing constitutes a full and complete release of all Released Matters.

13. Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute a single agreement.

 

  

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14. Continued Effect. Other than as expressly amended herein, both Borrower and Guarantor agree that the Loan Agreement, Payment Guaranty, the Completion Guaranty and all other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK –

SIGNATURE PAGES TO IMMEDIATELY FOLLOW]

 

  

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IN WITNESS WHEREOF, the Borrower, the Guarantor, the Administrative Agent and the Required Lenders have caused this Third Amendment to Construction, Acquisition and Interim Loan Agreement and to Guaranties to be duly executed as of the date first above written.

 

BORROWER:

 

KIERLAND CROSSING, LLC, a Delaware limited liability company

 

	
  

	
By:

	
Glimcher Kierland Crossing, LLC, a Delaware limited liability company, its managing member

 

	
  

	
By:

	
Glimcher Properties Limited Partnership, a Delaware limited partnership

 

	
  

	
By:

	
Glimcher Properties Corporation, a Delaware corporation, its general partner

 

By: /s/ Mark E. Yale 

	
  

	
Mark E. Yale

	
  

	
Executive Vice President,

	
  

	
Chief Financial Officer and

	
  

	
Treasurer

 

180 East Broad Street

Columbus, Ohio  43215

Attention:  Richard Burkhart

Phone:  614-887-5889

Facsimile:  614-621-2326

Email:  rburkhar@glimcher.com

 

With copies to:

 

Attention:  General Counsel

Phone:  614-887-5623

Facsimile:  614-621-8863

Email:  krieck@glimcher.com

 

 

  

  

  

 

GUARANTOR:

 

GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware limited partnership

 

By:           Glimcher Properties Corporation, a Delaware corporation, its general partner

 

By:  /s/ Mark E. Yale                                                      

Mark E. Yale

Executive Vice President, Chief

Financial Officer and Treasurer

 

 

180 East Broad Street

Columbus, Ohio  43215

Attention:  Richard Burkhart

Phone:  614-887-5889

Facsimile:  614-621-2326

Email:  rburkhar@glimcher.com

 

With copies to:

 

Attention:  General Counsel

Phone:  614-887-5623

Facsimile:  614-621-8863

Email:  krieck@glimcher.com

 

  

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ADMINISTRATIVE AGENT:

 

KEYBANK NATIONAL ASSOCIATION, a national banking association, as Administrative Agent

 

By:  /s/ Kevin P. Murray                                                                           

Name:   Kevin P. Murray                                                                

Title:     Senior Vice President 

 

Address:

 

KeyBank - Real Estate Capital

127 Public Square - 8th Floor

Mail Code: OH-01-27-0839

Cleveland, OH  44114

Phone:  216-689-4660

Facsimile:  216-689-4997

Attn:  Kevin Murray

 

LENDERS:

 

KEYBANK NATIONAL ASSOCIATION, a national banking association

 

By:  /s/ Kevin P. Murray                                                                           

Name:   Kevin P. Murray                                                                

Title:     Senior Vice President 

 

Address:

 

KeyBank - Real Estate Capital

127 Public Square - 8th Floor

Mail Code: OH-01-27-0839

Cleveland, OH  44114

Phone:  216-689-4660

Facsimile:  216-689-4997

Attn:  Kevin Murray

 

  

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EUROHYPO AG, NEW YORK BRANCH,

Individually and as Syndication Agent

 

By:  /s/ Erin Kerr                                                                           

Name:  Erin Kerr                                                                

Title:    Vice President 

 

By:  /s/ Stephen Cox 

Name:   Stephen Cox                                                                

Title:     Executive Director                                                                

 

Address for notices:

Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor

New York, NY  10036

Attention:  Head of Portfolio Operations

Facsimile:  866-267-7680

with copy to:

Eurohypo AG, New York Branch

1114 Avenue of the Americas, 29th Floor

New York, NY  10036

Attention:  Head of Legal Department

Facsimile:  866-267-7680

 

  

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THE HUNTINGTON NATIONAL BANK, individually and as Documentation Agent

 

By:  /s/ Michael Kauffman                                                                           

Name:   Michael Kauffman                                                                

Title:     Senior Vice President 

 

 

The Huntington National Bank

41 S. High Street, HC0840

Columbus, OH  43215

Attention:  Michael Kauffman, Senior Vice President

Phone:   216-515-6983

Facsimile:  877-297-9067

 

  

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U.S. BANK NATIONAL ASSOCIATION

By:  /s/ Anthony Mathena                                                                           

Name:   Anthony Mathena                                                                

Title:     Vice President 

 

U.S. Bank National Association

175 S. Third Street

Columbus, OH  43215

Attention:  Anthony Mathena, Vice President

Phone:  614-232-8013

Facsimile:  614-232-8033

 

 

  

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PNC BANK, NATIONAL ASSOCIATION

 

By:  /s/ Brent Sobczak

Name:  Brent Sobczak

Title:  Assistant Vice President, Real Estate Banking

 

PNC Bank

155 East Broad Street

Columbus, OH  43215

Attention:Brent Sobczak, Assistant Vice President

Real Estate Banking

Phone:  614-463-7233

Facsimile:  614-463-8058

 

  

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RAYMOND JAMES BANK, FSB

By:                                                                           

Name:                                                                          

Title:                                                                          

710 Carillon Parkway

St. Petersburg, FL  33716

Phone:  727-567-4196

Fax:  727-567-8830

Attention:  Thomas Scott

 

 

 

 

 

 

 

-8-WebFilings | EDGAR view

 

 
Exhibit 10.47
 
KLA-TENCOR CORPORATION
AMENDED AND RESTATED 1997 EMPLOYEE STOCK PURCHASE PLAN
 
(as amended and restated as of November 17, 1998
and as subsequently amended to date (February 11, 2011))
 
 
The following constitute the provisions of the 1997 Employee Stock Purchase Plan, as amended (the "Plan"), of KLA-Tencor Corporation (the "Company").  Certain definitions of terms used in the Plan are provided in Section 2 below.  This version of the Plan is effective for Offering Periods commencing on or after January 1, 2010.
 
		
	1.
	PURPOSE

 
The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions (or other methods, to the extent permitted by the Board pursuant to Section 6(a) below). It is the Company's intention that the Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. The Plan will also be extended to Employees of foreign Designated Subsidiaries subject to adjustments, in the sole discretion of the Board of Directors, to take into account the requirements of the local laws associated with the particular Subsidiary. These local requirements may not provide the same favorable tax consequences as are available to participants in the United States.
 
		
	2.
	DEFINITIONS

 
(a)"BOARD" shall mean the Board of Directors of the Company.
 
(b)"CODE" shall mean the Internal Revenue Code of 1986, as amended.
 
(c)"COMMON STOCK" shall mean the Common Stock, $.001 par value, of the Company.
 
(d)"COMPANY" shall mean KLA-Tencor Corporation, a Delaware corporation.
 
(e)"COMPENSATION" shall mean all amounts includable as "wages" subject to tax under Section 3101(a) of the Code without applying the dollar limitation of Section 3121(a) of the Code. Accordingly, Compensation shall include, without limitation, salaries, commissions, bonuses and overtime. Compensation shall not include reimbursements of expenses, allowances, or any amount deemed received without the actual transfer of cash or any Company contributions or payments to any trust, fund, or plan to provide retirement, pension, profit sharing, health, welfare, death, insurance or similar benefits to or on behalf of such Participant or any other payments not specifically referenced above, except to the extent that the inclusion of any such item with respect to all Participants on a nondiscriminatory basis is specifically approved by the Board.
 
(f)"CONTINUOUS STATUS AS AN EMPLOYEE" shall mean the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company, provided that such leave is for a period of not more than ninety (90) consecutive days or re-employment upon the expiration of such leave is guaranteed by contract or statute. 
 
(g)"DESIGNATED SUBSIDIARIES" shall mean the Subsidiaries which have been designated by the Board from time to time in its sole discretion as eligible to participate in the Plan.
 
(h)"EMPLOYEE" shall mean any person, including an officer, who is customarily employed for at least 20 hours per week and more than five months in a calendar year by the Company or one of its Designated Subsidiaries.
 
(i)"ENROLLMENT DATE" shall mean the first day of each Offering Period.
 
(j)"EXERCISE DATE" shall mean (i) June 30 of each year for each Offering Period that commences on the first trading day on or after January 1 and (ii) December 31 of each year for each Offering Period that commences on the first trading day on or after July 1.

 

 

 
(k)"OFFERING PERIOD" shall mean a period of six (6) months commencing on the first trading day on or after January 1 (ending on June 30) and on the first trading day on or after July 1 (ending on December 31) of each year during which an option granted pursuant to the Plan may be exercised.
 
(l)"PLAN" shall mean this Amended and Restated 1997 Employee Stock Purchase Plan.
 
(m)"SUBSIDIARY" shall mean a corporation, domestic or foreign, of which not less than fifty percent (50%) of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.
 
		
	3.
	ELIGIBILITY

 
(a)Any Employee who shall be employed by the Company or one of its Designated Subsidiaries on a given Enrollment Date and who has been so employed for at least 30 consecutive days immediately prior to such date shall be eligible to participate in the Plan, subject to limitations imposed by Section 423(b) of the Code or other applicable local law.  The Board, in its discretion, from time to time, may, prior to an Enrollment Date for all options to be granted on such Enrollment Date, determine (on a uniform and nondiscriminatory basis) the Employees who will or will not be eligible to participate in the Plan consistent with Section 423(b)(4) of the Code.
 
(b)Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary, or (ii) which permits such Employee's rights to purchase stock under all employee stock purchase plans of the Company and its Subsidiaries to accrue at a rate which exceeds US$25,000 of fair market value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time.
 
		
	4.
	OFFERING PERIODS

 
The Plan shall be implemented by consecutive Offering Periods with a new Offering Period commencing on the first trading day on or after January 1 and July 1 of each year, or as otherwise determined by the Board, until the Plan is terminated in accordance with Section 19 hereof.  The Board shall have the power to change the duration of Offering Periods, not to exceed twenty-seven (27) months, with respect to future offerings without stockholder approval if such change is announced at least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected.
 
		
	5.
	PARTICIPATION

 
(a)An eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions on the form provided by the Company and filing it with the Company's Plan administrator (or its designate) during the open enrollment period prior to the applicable Enrollment Date, unless a later time for filing the subscription agreement is set by the Board for all eligible Employees with respect to a given Offering Period.
 
(b)Payroll deductions for a participant shall commence on the first payroll date following the Enrollment Date and shall end on the last payroll date in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10.
 
		
	6.
	PAYROLL DEDUCTIONS

 
(a)At the time a participant files his subscription agreement, he shall elect to have payroll deductions made on each pay date during the Offering Period in an amount equal to a whole number percentage (not less than one percent (1%) and not exceeding ten percent (10%)) of the Compensation which he receives on each pay date during the Offering Period, and the aggregate of such payroll deductions during the Offering Period shall not exceed ten percent (10%) of his aggregate Compensation during said Offering Period.  If the Board determines that payroll deductions are not feasible in a particular country outside the United States, the Board may permit an eligible participant to participate in the Plan by an alternative means, such as by check; however, the rate of contributions may not exceed any whole number percentage (as determined by the Board) of the participant's aggregate Compensation up to ten percent (10%) (or such greater percentage, as specified by the Board) to apply to an Offering Period.
 
(b)All payroll deductions made by a participant shall be credited to his account under the Plan. A participant may 

 

 

not make any additional payments into such account, except as provided under Section 6(a).
 
(c)The deduction rate so authorized shall continue in effect for the entire Offering Period, unless the participant shall reduce such rate by filing the appropriate form with the Plan Administrator (or its designate). The reduced rate shall become effective as soon as practicable following the filing of such form.
 
(d)Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) herein, the Company may automatically decrease a participant's payroll deductions to zero percent (0%) at such time during any Offering Period which is scheduled to end during the current calendar year. Payroll deductions shall recommence at the rate provided in such participant's subscription agreement at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10.
 
		
	7.
	GRANT OF OPTION

 
(a)On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the applicable Exercise Date for the Offering Period (at the per share option price) up to a number of shares of the Company's Common Stock determined by dividing such Employee's payroll deductions accumulated during such Offering Period by eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided that (i) the number of shares subject to the option shall not exceed two hundred percent (200%) of the number of shares determined by dividing ten percent (10%) of the Employee's Compensation over the Offering Period by eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the Enrollment Date and (ii) notwithstanding anything to the contrary set forth herein, in no event will an eligible Employee be permitted to purchase during each Offering Period more than five thousand (5,000) shares of the Company's Common Stock (subject to any adjustment pursuant to Section 18), in each case subject to the limitations set forth in Sections 3(b) and 12 hereof.  The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of the Company's Common Stock that an eligible Employee may purchase during each Offering Period.  Fair market value of a share of the Company's Common Stock shall be determined as provided in Section 7(b) herein.
 
(b)The option price per share of the shares offered in a given Offering Period shall be the lower of: (i) eighty-five percent (85%) of the fair market value of a share of the Common Stock of the Company on the Enrollment Date; or (ii) eighty-five percent (85%) of the fair market value of a share of the Common Stock of the Company on the applicable Exercise Date. The option price per share may be determined for subsequent Offering Periods by the Board subject to compliance with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule) or pursuant to Section 19.  The fair market value of the Company's Common Stock on a given date shall be determined by the Board in its discretion; provided, however, that where there is a public market for the Common Stock, the fair market value per share shall be the closing price of the Common Stock for such date, as reported by the NASDAQ Stock Market. If a closing price is not available for an Enrollment Date or an Exercise Date, the fair market value of a share of the Common Stock of the Company on such date shall be the closing price of a share of the Common Stock of the Company on the last trading day prior to such date.
 
		
	8.
	EXERCISE OF OPTION

 
Unless a participant withdraws from the Plan as provided in Section 10, his option for the purchase of shares will be exercised automatically on each Exercise Date, and the maximum number of full shares subject to his option will be purchased for him at the applicable option price with the accumulated payroll deductions in his account. During his lifetime, a participant's option to purchase shares hereunder is exercisable only by him. Any amount remaining in the participant's account after an Exercise Date shall be refunded to the participant.
 
		
	9.
	DELIVERY

 
As promptly as practicable after each Exercise Date, the Company shall arrange the delivery to each participant, as appropriate, of a certificate representing the shares (or electronic delivery of such shares) purchased upon exercise of his option.
 
		
	10.
	WITHDRAWAL; TERMINATION OF EMPLOYMENT

 
(a)A participant may withdraw all but not less than all of the payroll deductions credited to his account under the Plan at any time by giving written notice to the Company. All of the participant's payroll deductions credited to his account will be paid to him as soon as practicable after receipt of his notice of withdrawal and his participation in the Plan will be automatically terminated, and no further payroll deductions for the purchase of shares will be made.  Payroll deductions will not resume on behalf of a participant who has withdrawn from the Plan unless written notice is delivered to the Company within the open 

 

 

enrollment period preceding the commencement of an Offering Period directing the Company to resume payroll deductions.
 
(b)Upon termination of the participant's Continuous Status as an Employee prior to the Exercise Date of an Offering Period for any reason, including retirement or death, the payroll deductions credited to the participant's account will be returned to the participant or, in the case of death, to the person or persons entitled thereto under Section 14, and such participant's option will be automatically terminated.
 
(c)If an Employee fails to maintain Continuous Status as an Employee for at least 20 hours per week during an Offering Period in which the Employee is a participant, he will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his account will be returned to him and his option terminated.
 
(d)A participant's withdrawal from an Offering Period will not have any effect upon his eligibility to participate in a succeeding Offering Period or in any similar plan which may hereafter be adopted by the Company. 
 
		
	11.
	INTEREST

 
No interest shall accrue on the payroll deductions of a participant in the Plan.
 
		
	12.
	STOCK

 
(a)Subject to adjustment as provided in Section 18, the maximum aggregate number of shares of the Company's Common Stock which shall be made available for sale under the Plan as of November 17, 1998 shall be 1,200,000, increased on the first day of each fiscal year of the Company beginning on and after July 1, 1999 by a number of shares of the Company's Common Stock equal to the lesser of (i) 2,000,000 shares, or (ii) the number of shares which the Company estimates (based on the previous 12-month period) it will be required to issue under the Plan during the forthcoming fiscal year.  Subject to adjustment as provided in Section 18, shares issuable under the Plan shall consist of authorized but unissued or reacquired shares of the Company's Common Stock or any combination thereof. If on a given Exercise Date the number of shares with respect to which options are to be exercised exceeds the number of shares then available, the Company shall make a pro rata allocation of the shares remaining available for option grant in as uniform a manner as shall be practicable and as it shall determine to be equitable.  In such event, the Company shall give written notice of such reduction of the number of shares subject to the option to each Employee affected thereby and shall similarly reduce the rate of payroll deductions, if necessary.
 
(b)The participant will have no interest or voting right in shares covered by his option until such option has been exercised.
 
(c)Shares to be delivered to a participant under the Plan will be registered in the name of the participant or in the name of the participant and his or her spouse.
 
		
	13.
	ADMINISTRATION

 
The Plan shall be administered by the Board of Directors of the Company or a committee appointed by the Board. The Board may delegate routine matters to management. The administration, interpretation or application of the Plan by the Board, its committee or their respective delegates shall be final, conclusive and binding upon all participants.
 
Members of the Board who are eligible Employees are permitted to participate in the Plan, provided that:
 
(a)Members of the Board who are eligible to participate in the Plan may not vote on any matter affecting the administration of the Plan or the grant of any option pursuant to the Plan.
 
(b)If a committee is established to administer the Plan, no member of the Board who is eligible to participate in the Plan may be a member of the committee.
 
		
	14.
	DESIGNATION OF BENEFICIARY (FOR EMPLOYEES IN THE UNITED STATES ONLY)

 
The provisions of this Section 14 apply only to participants in the United States:
 
(a)A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant's account under the Plan in the event of such participant's death subsequent to the end of the Offering Period but prior to delivery to him of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is 

 

 

to receive any cash from the participant's account under the Plan in the event of such participant's death prior to the end of an Offering Period.
 
(b)Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant's death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.
 
		
	15.
	TRANSFERABILITY

 
Neither payroll deductions credited to a participant's account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 14 hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10.
 
		
	16.
	USE OF FUNDS

 
All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions (unless otherwise required by local law).
 
		
	17.
	REPORTS

 
Individual accounts will be maintained for each participant in the Plan.  Statements of account will be given to participating Employees semi-annually promptly following each Exercise Date, which statements will set forth the amounts of payroll deductions, the per share purchase price, the number of shares purchased and the refunds, if any.
 
		
	18.
	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

 
Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised (including the increase set forth in Section 12 hereof) and the number of shares of Common Stock which have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the "Reserves"), as well as the price per share of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split or the payment of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.
 
In the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another entity, the Board, in its sole discretion, may provide that (i) each option under the Plan shall be assumed, (ii) an equivalent option shall be substituted by such successor entity or a parent or subsidiary of such successor entity, or in lieu of such assumption or substitution, that the participant shall have the right to exercise the option, including shares as to which the option would not otherwise be exercisable, or (iii) the Plan shall terminate and a shortened Offering Period will take place with a purchase occurring on a date determined by the Board or a participant's contributions returned.
 
The Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, if the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or decreases of the shares of its outstanding Common Stock, and if the Company is being consolidated with or merged into any other corporation.
 
		
	19.
	AMENDMENT OR TERMINATION

 

 

 
The Board may at any time terminate or amend the Plan. No such termination can affect options previously granted, nor may an amendment make any change in any option theretofore granted which adversely affects the rights of any participant, nor may an amendment be made without prior approval of the stockholders of the Company if such amendment is required by law or otherwise to be approved by the stockholders.
 
Amendments to the Code which impact the Plan shall be automatically implemented without further action by the Board unless such amendments require independent action by either the Board or the stockholders.
 
     In the event the Board determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences to the Company, the Board may in any manner it determines, in its sole discretion, and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to altering the purchase price for any Offering Period including an Offering Period underway at the time of the change in purchase price. Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants.
 
		
	20.
	NOTICES

 
All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.
 
		
	21.
	STOCKHOLDER APPROVAL

 
Continuance of the Plan shall be subject to approval by the stockholders of the Company within 12 months before or after the date the Plan is adopted. If such stockholder approval is obtained at a duly held stockholders meeting, it may be obtained by the affirmative vote of the holders of a majority of the outstanding shares of the Company present or represented and entitled to vote thereon, which approval shall be:
 
(a)      (i)  solicited substantially in accordance with Section 14(a) of the Securities Exchange Act of 1934, as amended (the "Act") and the rules and regulations promulgated thereunder, or
 
(ii) solicited after the Company has furnished in writing to the holders entitled to vote substantially the same information concerning the Plan as that which would be required by the rules and regulations in effect under Section 14(a) of the Act at the time such information is furnished; and 
 
(b)    obtained at or prior to the first annual meeting of stockholders held subsequent to the first registration of Common Stock under Section 12 of the Act.
 
In the case of approval by written consent, it must be obtained by the unanimous written consent of all stockholders of the Company.
 
		
	22.
	CONDITIONS UPON ISSUANCE OF SHARES

 
Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.
 
As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
 
		
	23.
	RULES FOR FOREIGN JURISDICTIONS

 
Notwithstanding any provision to the contrary in this Plan, the Board may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Board is specifically authorized to adopt rules and procedures regarding the definition of Compensation, handling of payroll deductions, making of contributions to the Plan in forms other than payroll deductions, 

 

 

establishment of bank or trust accounts to hold payroll deductions, payment of interest, conversion of local currency, obligations to pay payroll tax, withholding procedures and delivery of shares which vary with local requirements.

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