Document:

exv10w14xby

 

EXHIBIT 10.14 b

     SECOND AMENDMENT dated as of March 1, 2005 (this
“Amendment”) to the Senior Secured Credit Agreement dated as
of May 6, 2004, as amended by First Amendment dated as of December
21, 2004 (the “Credit Agreement”), among Metris Companies
Inc., a Delaware corporation (the “Borrower”), the lenders
signatory hereto (the “Required Lenders”), and Deutsche Bank
Trust Company Americas, as administrative agent and collateral agent
for the Lenders (in such capacities, the “Administrative
Agent” and “Collateral Agent”).

     WHEREAS, the Borrower, the Lenders (such term and other capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement),
the Administrative Agent and the Collateral Agent, are parties to the Credit Agreement providing
for the extension of credit to Borrower in the form of term loans in the aggregate principal amount
of $300,000,000;

     WHEREAS, the Borrower has requested that certain provisions of the Credit Agreement be
amended, and the Administrative Agent, the Collateral Agent and the Required Lenders are willing to
so amend the Credit Agreement, on the terms and conditions set forth in this Amendment;

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

     1. Amendments to Credit Agreement.

     (a) Definition of “Auction Rate Securities.” Section 1.01 of the Credit
Agreement is hereby amended by adding a new definition of “Auction Rate Securities” to read
as follows:

     “Auction Rate Securities” shall mean securities issued by the issuers
thereof in the form of Indebtedness, preferred stock, equity interests or undivided
beneficial interests in a trust whose interest rate (in the case of Indebtedness) or
dividend or distribution rate (in the case of preferred stock or other equity
interests or interests in a trust) is determined periodically by a remarketing agent
through an auction process.

     (b) Amendment to Definition of “Liquidity Amount.” The definition of
“Liquidity Amount” in Section 1.01 of the Credit Agreement is hereby amended and restated to
read in its entirety as follows:

     “Liquidity Amount” shall mean, with respect to the Borrower and its
Subsidiaries at any time, (a) the sum of (i) “Cash and cash equivalents,” (ii)
“Investment Securities Available for Sale” consisting of Auction Rate Securities
constituting Permitted Investments, (iii) “Liquidity reserve deposits” (or other
restricted cash), (iv) “Credit card loans held for sale,” (v) “Net credit

 

 

card loans” and (vi)(A) 90% multiplied by (B) the portion of “Retained
interests in loans securitized” that constitutes the “Excess transferor’s interests”
minus (b) the sum of (i) “Deposits” and (ii) Indebtedness for borrowed money
having scheduled principal payments or a final maturity prior to the date that is 91
days after the Maturity Date (other than the Indebtedness outstanding under this
Agreement and the other Loan Documents), in each case as such amounts would appear
on the Borrower’s consolidated balance sheet as of such date in conforming with GAAP
consistently applied.

     (c) Amendment to Definition of “Permitted Investments.” The definition of
“Permitted Investments” in Section 1.01 of the Credit Agreement is hereby amended by
deleting the word “and” at the end of clause (e) thereof, and at the end of clause (f)
thereof, deleting the period and inserting “; and” in lieu thereof, and adding a new clause
(g) thereto, to read as follows:

     (g) Auction Rate Securities (other than securities issued by the Borrower or
any of its Affiliates) with a date established for the next resetting of the rate or
dividend, as applicable, not later than 49 days after the date of acquisition
thereof (or, following the acquisition thereof, since the last reset date) and
having, at such date of acquisition and on each subsequent reset date, a rating from
S&P or from Moody’s of at least AA or Aa2 (or equivalent rating), respectively.

     2. Waiver.

(a) (i) Under Section 6.06 of the Credit Agreement, the Borrower agreed not to, or
permit its Subsidiaries, to make Investments other than Permitted Investments and
certain other exceptions enumerated in said Section 6.06. The Borrower has advised
the Administrative Agent and the Lenders that prior to the date hereof, the Borrower
and its Subsidiaries invested in Auction Rate Securities (as defined above in
Section 1(a)), having reset dates within 49 days after their acquisition and rated
not less than AA by S&P or Aa2 by Moody’s.

     (ii) Under Section 6.01(f) of the Credit Agreement, the Borrower agreed to not
permit the Liquidity Amount (as defined in the Credit Agreement) at any time to be
less than the amount specified in such Section 6.01(f). If Auction Rate Securities
were not to be considered “cash and cash equivalents” under GAAP, and therefore not
within the meaning of “Liquidity Amount,” then the Borrower’s investments in such
Auction Rate Securities prior to the date hereof may have caused the Liquidity
Amount to be less than the amount required under said Section 6.01(f).

     (b) The Administrative Agent and Collateral Agent, and the Lenders, hereby
waive, to the extent applicable, any possible default that may have occurred as a
result of the events described in paragraph (a) of this Section 2. This waiver is
limited to the express terms hereof and nothing herein shall be

2

 

deemed to be a waiver of any other term, condition, representation or covenant
applicable to the Borrower under the Credit Agreement.

     3. No Other Amendments or Waivers. Except as hereby amended, no other term, condition
or provision of the Credit Agreement shall be deemed modified or amended, and this Amendment shall
not be considered a novation. This Amendment is limited precisely as written and shall not be
deemed to (a) be a consent to a waiver or any other term or condition of the Credit Agreement, the
other Loan Documents or any of the documents referred to therein or executed in connection
therewith or (b) prejudice any right or rights the Lenders may now have or may have in the future
under or in connection with the Credit Agreement, the other Loan Documents or any documents
referred to therein or executed in connection therewith.

     4. Construction.

     (a) This Amendment is a document executed pursuant to the Credit Agreement and shall
(unless otherwise expressly indicated therein) be construed, administered or applied in
accordance with the terms and provisions thereof.

     (b) Whenever the Credit Agreement is referred to in the Credit Agreement or any of the
instruments, agreements or other documents or papers executed and delivered in connection
therewith, it shall be deemed to mean the Credit Agreement, as the case may be, as modified
by this Amendment.

     5. Binding Effect. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.

     6. Representations and Warranties. After giving effect to this Amendment, Borrower
hereby represents and warrants to the Administrative Agent and the Lenders that:

     (a) as of the date hereof, no Default or Event of Default has occurred and is
continuing; and

     (b) all representations and warranties of the Borrower set forth in the Credit
Agreement are true and correct in all material respects as of the date hereof, except to the
extent that any representation or warranty relates to an earlier date (in which case such
representation or warranty is true and correct in all material respects as of such earlier
date).

     7. Condition Precedent to Effectiveness. This Amendment shall become effective on the
date on which the Administrative Agent shall have received counterparts hereof duly executed and
delivered by the Borrower, the Collateral Agent, the Administrative Agent and the Required Lenders.

     8. Governing Law. This Amendment shall be governed and construed in accordance with
the applicable terms and provisions of Section 9.07 (Applicable Law) of the Credit Agreement, which
terms and provisions are incorporated herein by reference.

3

 

     9. Counterparts. This Amendment may be executed by the parties hereto in several
counterparts, each of which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement. The parties may execute facsimile copies of this
Amendment and the facsimile signature of any such party shall be deemed an original and fully
binding on said party.

     10. *

     11. Direction. The Required Lenders hereby direct and instruct the Administrative
Agent and Collateral Agent to execute this Amendment; provided, however, that such
direction and instruction in no way expands, amends, modified or changes any of the Administrative
Agent’s or Collateral Agent’s rights under the Credit Agreement.

[Remainder of Page Intentionally Left Blank. Signature Pages Follow.]

 

 

     IN WITNESS WHEREOF, the Borrower, the Required Lenders, the Administrative Agent and the
Collateral Agent have caused this Second Amendment to the Credit Agreement to be duly executed by
their respective authorized officers as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	METRIS COMPANIES INC. as Borrower	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Scott R. Fjellman	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Scott R. Fjellman	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President & Treasurer	 	 
	

	 	 	 	 	 	 

[Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Institution:
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent
and Collateral Agent for the Lenders	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Boris Treyger	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Boris Treyger	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Vice President	 	 
	

	 	 	 	 	 	 

[Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	The Assets Management Committee of the Coca-Cola
Company Master Retirement Trust
	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Fidelity Management Trust Company, as
Investment Manager under power of attorney	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/	 	 
	

	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	AXP Income Opportunities Fund,
a series of AXP Discovery Series, Inc.	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Vice President	 	 
	

	 	 	 	 	 	 
	

	 	 	 	AXP Discovery Series, Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	AXP Variable Portfolio – High Yield Bond Fund, a
series of AXP Variable Portfolio Income Series,
Inc.	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Vice President	 	 
	

	 	 	 	 	 	 
	

	 	 	 	AXP Variable Portfolio Income Series, Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	AXP Variable Portfolio – Income Opportunities
Fund, a series of AXP Variable Portfolio Income
Series, Inc.	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Vice President	 	 
	

	 	 	 	 	 	 
	

	 	 	 	AXP Variable Portfolio Income Series, Inc.	 	 

[Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Bear Stearns Investment Products Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jonathan Weiss	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Jonathan Weiss	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Authorized Signatory	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Calhoun CBO, Limited	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.,
its authorized signatory	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President – Fixed Income	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	California Public Exmployees’ Retirement System	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Highland Capital Management, L.P. As
Authorized Representatives of the Board	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Okada	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Okada	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Chief Investment Officer	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Highland Capital Management, L.P.	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Canpartners Investments IV, LLC	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Canpartners Investments IV, LLC,

a California limited liability company	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ R.Christian B. Evensen	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	R. Christian B. Evensen	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 

[Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Caspian Capital Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Mariner Investment Group	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Charles R. Howe II	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Charles R. Howe II	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Treasurer	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Cedar CBO, Limited	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.,
its authorized signatory	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President – Fixed Income	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Centennial CBO, Limited	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.,
its authorized signatory	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President – Fixed Income	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Centurion CDO I, Limited	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.,
its authorized signatory	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President – Fixed Income	 	 
	

	 	 	 	 	 	 

[Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Centurion CDO II, Ltd.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.,
as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Vincent P. Pham	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Vincent P. Pham	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Director — Operations	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Centurion CDO VI, Ltd.	 	 
	 
	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.
as Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Vincent P. Pham	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Vincent P. Pham	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Director — Operations	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Continental Casualty Company	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Marilou R. McGirr	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Marilou R. McGirr	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Vice President and Assistant Treasurer	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Credit Opportunities Funding, Inc.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Meredith J. Koslick	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Meredith J. Koslick	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Vice President	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Empyrean Investments, LLC	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Anthony Hynes	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Anthony Hynes	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Authorized Signer	 	 
	

	 	 	 	 	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Fidelity Advisor Series II:	 	 
	

	 	 	 	Fidelity Advisor Strategic Income Fund	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Treasurer	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Fidelity School Street Trust:	 	 
	

	 	 	 	Fidelity Strategic Income Fund	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Treasurer	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Fidelity Summer Street Trust:	 	 
	

	 	 	 	Fidelity Capital & Income Fund	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Treasurer	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Galaxy CLO 1999-1, Ltd.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: AIG Global Investment Corp., as Collateral
Manager	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Galaxy CLO 2003-1, Ltd.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: AIG Global Investment Corp. as Investment
Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Galaxy III CLO, Ltd.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: AIG Global Investment Corp. as Investment
Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Goldman Sachs Credit Partners L.P.	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Christopher Burns	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Christopher Burns	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Vice President	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Goldman Sachs Special Situations Investing	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Albert Dombrowski	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Albert Dombrowski	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Authorized Signatory	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Greywolf Capital Overseas Fund	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jim Gillespie	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Jim Gillespie	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Partner	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Greywolf Capital Partners II	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jim Gillespie	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Jim Gillespie	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Partner	 	 
	

	 	 	 	 	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Hammerman Capital
Master Fund, L.P.	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Andrew F. St. Pierre	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Andrew F. St. Pierre	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	CFO	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Hammerman Opportunity
Master Fund, L.P.	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Andrew F. St. Pierre	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Andrew F. St. Pierre	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	CFO	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Highland Floating Rate Advantage Fund	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Highland Capital Management, L.P., its
Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Okada	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Okada	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Chief Investment Officer	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Highland Capital Management, L.P.	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Highland Floating Rate Limited Liability Company	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Highland Capital Management, L.P., its
Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Okada	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Okada	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Chief Investment Officer	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Highland Capital Management, L.P.	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	High Yield Portfolio, a series of Income Trust	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Lorraine R. Hart	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Vice President, Income Trust	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Illinois Municipal Retirement Fund Master Trust	 	 
	 
	 	 	 	 
	

	 	 	 	By: Fidelity Management Trust Company, as
Investment Manager under power of attorney	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ James Carroll	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	James Carroll	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Isles CBO, Limited	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: American Express Asset Management Group, Inc.
its authorized signatory	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Michelle M. Keeley	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Vice President – Fixed Income	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Quadrangle Master Funding Ltd.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Quadrangle Master Funding Ltd.	 	 
	

	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Principal	 	 
	

	 	 	 	 	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Shepherd Investments	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Robert J. Barnard	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Robert J. Barnard	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Stark Trading	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Robert J. Barnard	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Robert J. Barnard	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	SunAmerica Life Insurance Company	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: AIG Global Investment Corp. as Investment
Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	John G. Lapham, III	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Managing Director	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Sunrise Partners Limited Partnership	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael J. Bemer	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Michael J. Bemer	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Vice President	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Dawn General Partner Corp.
General Partner	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Taconic Capital Partners L.P.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jon Jachman	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Jon Jachman	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Principal	 	 
	

	 	 	 	 	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Institution:
	 	Thracia, LLC	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Frank Argenziano	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Frank Argenziano	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	CFO	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Variable Insurance Products Fund IV:	 	 
	

	 	 	 	VIP Strategic Income Portfolio	 	 
	 
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Mark Osterheld	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Assistant Treasurer	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Watershed Capital Institutional Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: WS Partners, L.L.C.
Its General Partner	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Meridee Moore	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Meridee Moore	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Managing Member	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Watershed Capital Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: WS Partners, L.L.C.
Its General Partner	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Meridee Moore	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Meridee Moore	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Managing Member	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Institution:
	 	Watershed Capital Partners (Offshore), Ltd.	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By: Watershed Asset Management L.L.C. Its
Investment Manager	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	By:
	 	/s/ Meridee Moore	 	 
	

	 	 	 	 	 	 

 [Signature Page to Second Amendment to Senior Secured Credit Agreement]

 

 

	 	 	 	 	 	 	 
	

	 	Name:
	 	Meridee Moore	 	 
	

	 	 	 	 	 	 
	

	 	Title:
	 	Senior Managing Member	 	 
	

	 	 	 	 	 	 

*      Denotes confidential information that has been omitted from the exhibit and filed separately,
accompanied by a confidential treatment request, with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934.exv10w18xdy

 

EXHIBIT 10.18d

METRIS COMPANIES INC.

LONG-TERM INCENTIVE AND STOCK OPTION PLAN

RESTRICTED STOCK UNIT AGREEMENT

     THIS AGREEMENT made as of the «Grant_Day»th day of «Grant_Month», «Grant_Year», between Metris
Companies Inc., a Delaware corporation with its principal office in Minnetonka, Minnesota
(“Company”) and «First» «MI» «Last» (“Grantee”). This Agreement may be supplemented from time to
time by the grant of additional awards which shall be detailed in Addenda to this Agreement.

W I T N E S S E T H:

     WHEREAS, the Compensation Committee of the Board of Directors of the Company (“Committee”) has
determined to make an award of Restricted Stock Units to Grantee pursuant to the provisions of the
Metris Companies Inc. Long-Term Incentive and Stock Option Plan, as amended (“Plan”) and this
Restricted Stock Unit Agreement (“Agreement”).

     NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained
herein, and for other good and valuable consideration, the parties agree as follows:

	 	1.  	Definitions and Construction.

1.1 Definitions. Unless otherwise defined in this Agreement or the Deferred Stock
Award Election Form made available by the Company (“Election Form”), defined terms
not explicitly defined in this Agreement but defined in the Plan shall have the same
definitions as in the Plan.

1.2 Construction. Captions and titles contained herein are for convenience only and
shall not affect the meaning or interpretation of any provision of this Agreement.
Except when otherwise indicated by the context, the singular shall include the plural
and the plural shall include the singular. Use of the term “or” is not intended to
be exclusive, unless the context clearly requires otherwise.

	 	2.  	Grant of Restricted Stock Units.

2.1 Subject to the terms and conditions of the Plan and of this Agreement (and
subject to execution of this Agreement by Grantee), the Company has granted to
Grantee the number of Restricted Stock Units (“RSUs”) stated on the Addenda attached
as of the effective date stated and subject to the vesting and other restrictions
specified in such Addenda.

2.2 No RSUs may be sold, transferred, pledged, hypothecated or otherwise encumbered
or disposed of until such RSUs have vested in Grantee in accordance with all terms
and conditions of this Agreement. The RSUs shall remain restricted and subject to

 

 

	 	   	forfeiture by Grantee to the Company unless and until such RSUs have vested in
Grantee in accordance with all terms and conditions of this Agreement (including
specifically, all Addenda to this Agreement).
	 
	 	3.  	Scheduled Vesting.
	 
	 	   	Subject to Company performance terms and conditions. For purposes of this Agreement,
the term “Employment” and similar terms shall include the providing of services to
the Company, or an Affiliate thereof, in the capacity of Grantee, advisor or
consultant. The terms of vesting shall be specified in the Addendum for each grant
of RSUs, with respect to those RSUs.
	 
	 	4.  	Accelerated Vesting.
	 
	 	   	Notwithstanding the vesting provisions contained in the Addenda above, but subject to
the other terms and conditions set forth herein, if Grantee has been continuously
employed by the Company until the date of a “Change in Control” (as hereinafter
defined), Grantee shall be immediately vested as of the date of such Change in
Control in the Shares. For purposes of this Agreement, the following terms shall
have the definitions set forth below.

(i) “Change in Control” shall mean:

     (A) a change in control of a nature that would be required to be reported
in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under
the Securities Exchange Act of 1934, as amended (“Exchange Act”), whether or
not the Company is then subject to such reporting requirement;

     (B) the public announcement (which, for purposes of this definition,
shall include without limitation a report filed pursuant to Section 13(d) of
the Exchange Act) by the Company or any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) that such person has become the
“beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange
Act) directly or indirectly of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company’s then
outstanding securities; provided, however, that
notwithstanding the foregoing, no Change of Control shall be deemed to have
occurred for purposes of this Agreement by reason of ownership of fifty
percent (50%) or more of the total voting capital stock of the Company then
issued and outstanding by any subsidiary of the Company or any employee
benefit plan of the Company or of any subsidiary of the Company or any entity
holding shares of the Common Stock organized, appointed or established for, or
pursuant to the terms of, any such plan (any such person or entity described
in this proviso is referred to herein as a “Company Entity”);

2

 

     (C) the announcement of a tender offer by any person or entity (other
than a Company Entity) for thirty percent (30%) or more of the Company’s
voting capital stock then issued and outstanding, which tender offer has been
approved by the Board, a majority of the members of which are Continuing
Directors (as hereinafter defined), and recommended to the shareholders of the
Company;

     (D) the Continuing Directors (as hereinafter defined) cease to constitute
a majority of the Board; or

     (E) the shareholders of the Company approve (1) any consolidation or
merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of Company stock would be converted
into cash, securities or other property, other than a merger of the Company in
which shareholders immediately prior to the merger have the same proportionate
ownership of stock of the surviving corporation immediately after the merger;
(2) any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all or substantially all of the assets of
the Company; or (3) any plan of liquidation or dissolution of the Company.

	 	(ii)  	“Continuing Director” shall mean any person who is a member of
the Board, while such person is a member of the Board, who is not an Acquiring
Person (as defined below) or an Affiliate or Associate (as defined below) of an
Acquiring Person, or a representative of an Acquiring Person or of any such
Affiliate or Associate, and who (A) was a member of the Board on the date of
this Agreement as first written above or (B) subsequently becomes a member of
the Board, if such person’s initial nomination for election or initial election
to the Board is recommended or approved by a majority of the Continuing
Directors. For purposes of this subparagraph (ii), “Acquiring Person” shall
mean any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) who or which, together with all Affiliates and Associates of such
person, is the “beneficial owner” (as defined in Rule 13d-3 promulgated under
the Exchange Act), directly or indirectly of securities of the Company
representing fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding securities, but shall not include any Company Entity;
and “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 promulgated under the Exchange Act.

	 	5.  	Settlement of the RSUs.

5.1 No Additional Payment Required. Grantee shall not be required to make any
additional payment of consideration upon settlement of an RSU.

3

 

5.2 Issuance of Shares of Stock. Subject to the provisions of paragraph 5.5 below,
the Company shall issue to Grantee a number of whole Common Shares equal to the
number of vested RSUs then held by Grantee rounded down to the nearest whole number,
on a date (“Settlement Date”) within thirty (30) days following the earliest of (a)
the date an RSU becomes vested, unless Grantee has elected a Deferred Settlement Date
or Dates for such RSUs as defined in the Distribution Election Form; (b) the Deferred
Settlement Date or Dates (as defined by Grantee in the Distribution Election Form),
(c) the date on which Grantee terminates employment; or (d) the date of a Change in
Control. Such Common Shares shall not be subject to any restriction on transfer
other than any such restriction as may be required pursuant to paragraph 5.5 below
(including any Addenda to this Agreement) or any applicable law, rule or regulation.
On the Settlement Date, the Company may pay to Grantee cash in lieu of any fractional
Common Share represented by a fractional RSU subject to this Award in an amount equal
to the Fair Market Value on the earliest date specified in (a) through (d) above of
such fractional Common Share.

5.3 Tax Withholding. At the time the RSU is granted, or at any time thereafter as
requested by the Company, Grantee hereby authorizes withholding from the RSUs such
number of Common Shares, valued at their Fair Market Value on the date so used, as
may be required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company, if any, which arise in connection with the RSU or the
issuance of Common Shares in settlement thereof. The Company shall reduce the number
of shares issued to Grantee on the Settlement Date by the number of shares required
to cover the tax withholding as of such date, such shares to be valued at their Fair
Market Value on the earliest date specified in paragraph 5.2 (a) through (d) above.
The Company shall have no obligation to deliver Common Shares until the tax
withholding obligations of the Company have been satisfied by Grantee.

5.4 Certificate Registration. The certificate for the shares as to which the RSU is
settled shall be registered in the name of Grantee or, if applicable, in the names of
the heirs of Grantee.

5.5 Restrictions on Grant of the RSU and Issuance of Shares. The grant of the RSUs
and issuance of Common Shares upon settlement of the RSUs shall be subject to
compliance with all applicable requirements of federal, state or foreign law with
respect to such securities, including requirements as amended after grant of the RSU.
No Common Shares may be issued hereunder if the issuance of such shares would
constitute a violation of any applicable federal, state or foreign securities laws or
other law or regulations or the requirements of any stock exchange or market system
upon which the Common Stock may then be listed. The inability of the Company to
obtain from any regulatory body having jurisdiction the authority, if any, deemed by
the Company’s legal counsel to be necessary to the lawful issuance and sale of any
 shares subject to the RSU shall relieve the Company of any liability in respect of
the failure to issue or sell such shares as to which such requisite authority shall
not have been obtained. As a condition to the settlement of the RSU, the Company may
require

4

 

Grantee to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the Company.

5.6 Fractional Shares. The Company shall not be required to issue fractional shares
upon the settlement of an RSU.

6. Dividend Equivalent Rights. Effective on the date of payment of cash dividends
on the Common Shares occurring on and after the Date of Grant and before the Settlement
Date, the number of RSUs subject to this grant shall be increased by such additional whole
and/or fractional RSUs determined by the following formula:

X = (AxB)/C

where,

“X” is the number of whole and/or fractional RSUs to be credited with
respect to the grant;

“A” is the amount of cash dividends paid on one Common Share;

“B” is the number of whole and fractional RSUs subject to this grant as
of the cash dividend record date but immediately prior to the
application of this paragraph; and

“C” is the Fair Market Value of a Common Share on the cash dividend
payment date.

Such additional RSUs shall be subject to the same terms and conditions and shall be
settled in the same manner and at the same time as the RSUs originally subject to
this grant.

     7. Forfeiture. If Grantee’s employment with the Company, or an Affiliate thereof, is
terminated, other than by reason of Grantee’s retirement, death or disability (within the meaning
of Section 22(e)(3) of the Internal Revenue Code), then any RSUs that have not previously vested
shall be forfeited by Grantee to the Company. Grantee shall thereafter have no right, title or
interest whatever in such RSUs. If Grantee’s employment shall be terminated by Grantee’s
Retirement (as defined below), or if Grantee ceases to be an employee by reason of disability (as
defined in the Social Security eligibility provisions, 42 U.S.C. Section 421, and the regulations
promulgated thereunder) or death prior to the vesting of any Shares pursuant to Section 2 hereof,
Grantee or Grantee’s estate shall become immediately vested, as of the date of such retirement,
death, or disability, in the Shares. No transfer by will or by laws of descent and distribution of
any Shares which vest by reason of Grantee’s death shall be effective to bind the Company, unless
the Company shall have been furnished with written notice of such transfer and a copy of the will
or such other evidence as the Company may deem

5

 

necessary to establish the validity of the transfer.

	 	(1)  	For purposes of this Agreement, “Retirement” shall mean any termination
other than by death or gross and willful misconduct after (A) Grantee has attained
at least age fifty-five (55) and (B) Grantee’s age plus completed continuous years
of service equals sixty (60) or more; provided, however, that if
Grantee is less than age sixty-five (65) on the date of termination of employment
Grantee must have completed at least five (5) years of service.

8. The Committee; Adjustments. The Committee, in its sole and absolute discretion,
shall determine (i) whether Grantee has become disabled (as defined in the Social Security
eligibility provisions, 42 U.S.C. Section 421, and the regulations promulgated thereunder),
and (ii) any other terms and conditions relating to this grant. The Committee may modify
this grant, in its sole and absolute discretion, to adjust the number or type of securities
subject hereto in the event of a reorganization, merger, consolidation, recapitalization,
liquidation, reclassification, stock dividend, stock split, combination of shares, rights
offering, or extraordinary dividend or divestiture (including a spin-off), or any other
change in the corporate structure or Common Shares of the Company.

9. Employment. This Agreement shall not give Grantee any right to continued
employment with the Company or any Affiliate, and the Company or any Affiliate employing
Grantee may terminate such employment or otherwise treat Grantee without regard to the
effect it may have upon Grantee or any RSUs under this Agreement.

10. Other Benefit And Compensation Programs. Neither the RSUs nor the Common
Shares into which the RSUs are settled shall be deemed a part of Grantee’s regular,
recurring compensation for purposes of the termination, indemnity, or severance pay law of
any country, and shall not be included in, nor have any effect on, the determination of
benefits under any other Grantee benefit plan, contract, or similar arrangement provided by
the Company or any Affiliate unless expressly so provided by such other plan, contract, or
arrangement, or unless the Committee determines that the RSUs, or a portion thereof, should
be included to accurately recognize that the RSU grant has been made in lieu of a portion
of competitive cash compensation, if such is the case.

11. Rights as a Stockholder, Director, Grantee or Consultant. Grantee shall have no
rights as a stockholder with respect to any shares which may be issued in settlement of this
grant until the date of the issuance of a certificate for such shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other rights for
which the record date is prior to the date such certificate is issued, except as provided in
paragraph 8 or pursuant to the Dividend Equivalent Rights of paragraph 6.

6

 

12. Legends. The Company may at any time place legends referencing any applicable
federal, state or foreign securities law restrictions on all certificates representing
shares of stock issued pursuant to this Agreement. Grantee shall, at the request of the
Company, promptly present to the Company any and all certificates representing shares
acquired pursuant to this grant in the possession of Grantee in order to carry out the
provisions of this paragraph.

13. Interpretation of This Agreement. All decisions and interpretations made by
the Committee with regard to any question arising under this Agreement or the Plan shall be
binding and conclusive upon the Company, any Affiliate and Grantee. In the event that
there is any inconsistency between the provisions of this Agreement and the Plan, the
provisions of the Plan shall govern.

14. Miscellaneous. This Agreement is entered into pursuant to the Plan and is
subject to all of the terms and conditions contained in the Plan. A copy of the Plan is on
file with the Company; and, by acceptance hereof, Grantee agrees and accepts this Agreement
subject to the terms of the Plan. This Agreement shall be binding upon and inure to the
benefit of any successor of the Company. This Agreement shall be governed by and construed
in accordance with the laws of the State of Minnesota. This Agreement contains all terms
and conditions with respect to the subject matter hereof and no amendment, modification or
other change hereto shall be of any force or effect unless and until set forth in a writing
executed by Grantee and the Company.

     IN WITNESS WHEREOF, Grantee has executed this Agreement and the Company has caused this
Agreement to be executed by its duly authorized officer, all as of the day and year first above
written.

METRIS COMPANIES INC.

	 	 	 	 	 
	 	By	 	 	 
	 	 	David D. Wesselink,	 
	 	 	Chairman and CEO	 

	 	 	 	 	 
	 	 	 
	 	 	 	
«First» «MI» «Last»

Social Security #: «SSN»
 	 

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Date	 

7

 

METRIS COMPANIES INC.

RESTRICTED STOCK UNIT AGREEMENT

DATED AS OF «GRANT_DATE»

ADDENDUM A

	1.  	AWARD. The Company hereby grants to Grantee a compensation award of «RSUs_Granted» of
performance-based Restricted Stock Units (“RSUs”) effective as of «Grant_Date».

	2.  	PERFORMANCE OBJECTIVE. If the Company has positive Net Incomes in the relevant
cumulative performance periods, the units will vest as indicated in the schedule below. If the
Company does not have positive Net Incomes in the relevant performance period, the units
associated with the specific Net Income performance period shall be cancelled. The relevant
performance period is the period commencing on January 1, «Vest_Year1», and ending on the last
day of the fiscal year prior to the scheduled vesting date.

	3.  	RSU VESTING. If Grantee remains continuously employed by the Company or an
Affiliate thereof, and the Company has achieved a positive Net Income during the relevant
performance period, then the awarded RSUs will vest in accordance with the following schedule:

	 	 	 	 	 
	Date	 	Percentage of RSUs Vesting	 
	«Grant_Month» «Grant_Day», «Vest_Year1»
	 	 	16 2/3%	 
	 
	 	 	 	 
	«Grant_Month» «Grant_Day», «Vest_Year2»
	 	 	16 2/3%	 
	«Grant_Month» «Grant_Day», «Vest_Year3»
	 	 	16 2/3%	 
	«Grant_Month» «Grant_Day», «Vest_Year4»
	 	 	50% 	 

	4.  	ACCELERATED VESTING. The RSUs scheduled to vest on «Grant_Month» «Grant_Day»,
«Vest_Year4», may be accelerated if the Company attains the following Net Income targets:

	 	•  	If Net Income for «Grant_Year» is greater than or equal to «Grant_Yr_Tgt»
million, then 16 2/3% of the performance-based RSUs vest on «Grant_Month»
«Grant_Day», «Vest_Year1».
	 
	 	•  	If Net Income for «Vest_Year1» is greater than or equal to «Yr_1_Tgt» million,
then 16 2/3% of the performance-based RSUs are accelerated to vest on «Grant_Month»
«Grant_Day», «Vest_Year2».
	 
	 	•  	If Net Income for 2006 is greater than or equal to «Yr_2_Tgt» million, then 16
2/3% of the performance-based RSUs are accelerated to vest on «Grant_Month»
«Grant_Day», «Vest_Year3».

	5.  	HOLDING PERIOD REQUIREMENT. In addition to the vesting restrictions above, Grantee
shall be subject to a holding requirement for shares of Common Stock of the Company.

8

 

Grantee must certify each year that he/she holds a number of shares of Common Stock or
vested deferred RSUs equal to 33 1/3% of the total RSUs vested under this Agreement.

	 	 	 	 	 
	 	 	 
	 	
«First» «MI» «Last»

 	 

9

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