Document:

Blueprint

 

Exhibit 10.1

 

AGREEMENT

 

This Agreement
(“Agreement”) is entered into by and between Park City
Group, Inc., a Nevada corporation (the “Company”),
Randall K. Fields (“RKF”) and Fields Management, Inc.,
a Utah Corporation (“Fields”), to be effective as of
the 1st day of July 2017.

 

Recitals:

 

A.

This Agreement is
entered into in order to amend the terms and conditions of that
certain Services Agreement between Fields and the Company dated
effective July 1, 2013 (the “Services Agreement”) as
amended, and that certain Employment Agreement between RKF and
Company dated effective July 1, 2013 (the “Employment
Agreement”) as amended; and

 

B.

This Agreement will
alter the vesting schedules of currently existing stock grants held
by Fields and RKF

 

Agreements:

 

Now,
Therefore, in
consideration of the mutual covenants and promises contained in,
and the mutual benefits to be derived from this Agreement, and for
other good and valuable consideration, the Company, RKF and Fields
agree as follows:

 

1.

Section 2.
Term of the Services. of the
Services Agreement shall be amended to extend the Term one (1) year
and shall read as follows:

 

This
Agreement shall be effective as of July 1, 2013 (the
“Effective Date”) and continue pursuant to the terms
hereof until the 30th day of June 2022
(the “Initial
Term”), unless sooner terminated pursuant to the terms
hereof or extended at the sole discretion of the Company’s
Board of Directors. The Initial Term and any subsequent terms will
automatically renew for additional one year periods unless, six
months prior to the expiration of the then current term, either
party gives notice to the other that the Agreement will not renew
for an additional term. In the event of such written notice being
timely provided by the Company, Fields shall not be required to
perform any responsibilities or duties to the Company during the
final two months of the then-existing term. In such event, the
Company will remain obligated to Fields for all compensation and
other benefits set forth herein and in any written modifications
hereto.

 

2.

Section 4. (j)
Vacation, Sick days, etc.
shall be added to the Services Agreement as of the Effective Date
of the Services Agreement and shall read as follows:

 

(j) Vacations, Sick Days, etc.
Executive shall have four (4) weeks paid vacation and twelve (12)
days sick leave during each year he provides services. Vacation
days will accrue from year to year if not taken. Upon request of
Fields, Company will pay, in cash, any part of the accrued
vacation.

 

3.

Section 2. Term of
the Employment. of the
Employment Agreement shall be amended to extend the
Initial Term one (1) year and shall read as follows:

 

The
employment of Employee by the Company will continue pursuant to the
terms of this Agreement effective as of July 1, 2013 and end on the
30th day
of June, 2022 (the “Initial
Term”), unless sooner terminated pursuant to the terms
hereof or extended at the sole discretion of the Company’s
Board of Directors. The Initial Term and any subsequent terms will
automatically renew for additional one year periods unless, six
months prior to the expiration of the then current term, either
party gives notice to the other that the Agreement will not renew
for an additional term. In the event of such written notice being
timely provided by the Company, Employee shall not be required to
perform any responsibilities or duties to the Company during the
final two months of the then-existing term. In such event, the
Company will remain obligated to Employee for all compensation and
other benefits set forth herein and in any written modifications
hereto.

 

 

 

 

 

4.

Section 4. (d)
Vacation, Sick days, etc. shall be amended as of the Effective Date
of the Employment Agreement and shall read as follows:

 

(d)           Vacations,
Sick days, etc. Employee shall have four (4) weeks paid
vacation and twelve (12) days sick leave during each year he is
employed. Vacation days will accrue from year to year if not taken.
Upon request of Employee, Company will pay, in cash, any part of
the accrued vacation.

 

5.

The stock grant
awarded to Fields pursuant to Subsection 4(h) of the Services
Agreement shall be amended such that the balance as of the date
hereof of the unvested stock in the amount of 480,000 shares will
be issued according to a pro-rata seven year vesting schedule
beginning on and the first issuance of which shall be on July 1,
2019.

 

6.

The stock grant
awarded to Fields pursuant to Subsection 4(h) of that certain
Services Agreement dated as of July 1, 2008 shall be amended such
that the balance of the unvested stock as of the date hereof in the
amount of 240,000 shares will be issued according to a pro-rata
three year vesting schedule beginning on and the first issuance of
which shall be on July 1, 2019.

 

7.

The stock grants
awarded to Fields and RKF dated as of February 18, 2011 shall be
amended such that the balance of the unvested stock as of the date
hereof in the amount of 56,743 shares will be issued according to a
pro-rata two year vesting schedule beginning on and the first
issuance of which shall be on July 1, 2019.

 

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and signed the 8th day of May, 2018.

 

 

Park City Group, Inc., a Nevada
corporation                               
FIELDS MANAGEMENT, INC., a Utah corporation

 
 

 

By: /s/ Ed Clissold    
                 
                 
  
                                
By: /s/ Randall K.
Fields

                                                                                                          
Name: Randall K. Fields, President

Name,
Title: Ed Clissold, General Counsel

                                                                                                           
/s/ Randall K.
Fields

                                                                                                           
Randall
K. FieldsEX-10.1

 EXHIBIT 10.1 
  

 
 FORM OF POPULAR, INC. 

2018 LONG-TERM EQUITY INCENTIVE AWARD 

AND AGREEMENT 

Recipient: 
 The
Compensation Committee of the Board of Directors of Popular, Inc. (the “Committee”) awarded you on February 23, 2018 (the “Grant Date”) a Long-Term Incentive Award consisting of Restricted Stock
(“Restricted Stock”) and Performance Shares (“Performance Shares” and, in conjunction with the Restricted Stock, the “Award”). 

This award agreement (the “Award Agreement”), dated as of the Grant Date, sets forth the terms and conditions of your Award.
This Award is made under the Popular, Inc. 2004 Omnibus Incentive Plan, as amended (the “Plan”) and, except as otherwise provided herein, is subject to the terms of the Plan. Capitalized terms used but not otherwise defined in this
Award Agreement have the meanings given in the Plan. 
 1. Award. The number of shares of Restricted Stock and Performance Shares
subject to this Award is set forth in Annex 1 hereto. The Award will vest as set forth below. 
 2. Vesting; Payout. 

(a) Restricted Stock Vesting. Except as otherwise stated in this Section 2, you shall become vested in the Restricted Stock as
follows (each of the dates described in (i) and (ii) below, a “Restricted Stock Vesting Date”): 
 (i) 80% of
your Restricted Stock shall vest in equal annual installments on each of the first four (4) anniversaries of the Grant Date specified in Annex 1, and 

(ii) 20% of your Restricted Stock shall vest upon termination of your employment after attaining (x) age 55 with 10 years of service with
the Corporation or (y) age 60 with 5 years of service with the Corporation. 
 Years of service shall be determined pursuant to the
Corporation’s personnel policies and procedures. 
 (b) Performance Shares Vesting. Except as otherwise stated in this
Section 2, you shall become vested in the Performance Shares on the third anniversary of the Grant Date specified in Annex 1, subject to the Corporation’s achievement of the Performance Goals specified in Annex 1 during the Performance
Cycle as certified by the Committee (hereinafter the “Performance Shares Vesting Date” and, together with the Restricted Stock Vesting Date, the “Vesting Date”). The Performance Goals will be based on two
performance metrics weighted equally: the Relative Total Shareholder Return (the “TSR”) and the Absolute Earnings per Share (the “EPS”) goals. The Performance Cycle is 

 
a three (3) year period beginning on January 1 of the calendar year of the Grant Date and ending on December 31 of the third year. Each Performance Goal will have a defined minimum
threshold (i.e., minimum result for which an incentive would be earned), target (i.e., result at which 100% of the incentive would be earned) and maximum level of performance (i.e., result at which 1.5 times the incentive target would be earned).

 (c) Approved Retirement. Upon an Approved Retirement after attaining (x) age 55 with 10 years of service with the Corporation
or (y) age 60 with 5 years of service with the Corporation: (1) your outstanding Restricted Stock shall fully vest; and (2) your outstanding Performance Shares shall continue outstanding and vest in full on the Performance Shares
Vesting Date in accordance with the actual results of the Performance Goals during the Performance Cycle. 
 (d) Vesting upon Retirement
on or after age 50 before attaining age 55 and 10 years of service. The Committee, at its discretion, may accord the same treatment accorded in Section 2(c) above if you retire from your employment on or after age 50, and before attaining
age 55 and 10 years of service, provided the sum of your age and years of service is at least 75. 
 (e) Death. Provided that on the
date of your death you are still employed by the Corporation and your rights in respect of your Award have not been previously terminated, any then unvested outstanding Award shall immediately vest and be paid to the representative of your estate
promptly after your death. In the case of the Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had in fact been earned. 

(f) Disability. If you become subject to Disability while you are still employed by the Corporation, any then unvested outstanding Award
shares shall vest and shall be paid to you promptly after you become subject to Disability. In the case of the Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had in fact been earned. 

(g) Change of Control. If your employment is terminated by the Corporation or any successor entity thereto without Cause, or if you
terminate your employment for Good Reason, in each case upon or within two years after a Change of Control, prior to a Vesting Date, and provided your rights in respect of the shares of your unvested Award have not previously terminated, the shares
of your unvested Award shall immediately vest and be delivered to you promptly after such termination of employment. In the case of the Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had in
fact been earned. 
 (h) Termination without Cause. If the Corporation terminates your employment without Cause you will receive
payment of the Award on a prorated basis based on the number of full months in the vesting schedule in which you were an active employee (with a partial month worked counted as a full month if you were an active employee for 15 days or more in the
month) and such reduced Award will vest immediately upon your termination of employment, calculated in the case of Performance Shares as if the target number of Performance Shares had in fact been earned, as provided in the Plan. 

  
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 (i) Payout. The transfer restrictions on the applicable number of whole shares of
Restricted Stock shall lapse on each Vesting Date or such other vesting date as determined in this Section 2 and in the terms of the Plan. In the case of the Performance Shares, the criteria that the Committee will utilize to determine the
number of shares earned will be based upon the actual performance results during the Performance Cycle. 
 3. Termination of Award.

 (a) Except as provided herein, your rights in respect of your outstanding unvested Award shares shall immediately terminate, and no shares
shall be paid in respect thereof, if at any time prior to the respective Vesting Date you terminate your employment. 
 (b) If the
Corporation terminates your employment for Cause, your Award shares shall be cancelled and the provisions under the Plan will apply. 
 4.
Non-transferability. This Award (or any rights and obligations hereunder) may not be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged, in any manner
(including through the use of any cash-settled instrument), whether voluntarily or involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution. 

5. Withholding, Consents and Legends. 

(a) You shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any
interest that accrues thereon, incurred in connection with your Award. The Corporation will withhold shares of Common Stock with a value equal to the payment of the taxes that the Corporation determines it is required to withhold under applicable
tax laws with respect to the Award (with such withholding obligation determined based on any applicable minimum statutory withholding rates), in connection with the vesting of the shares thereof, and cause the restrictions on the remainder of the
shares subject to your Award to lapse pursuant to Section 2(i). The Corporation will use the Fair Market Value of the Common Stock on the Vesting Date in order to determine the number of shares to be withheld. If you wish to remit cash to the
Corporation (through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of the Corporation to satisfy such withholding obligation, you must notify the Corporation in advance and do so in compliance with all
applicable laws and pursuant to such rules as the Corporation may establish from time to time, including, but not limited to, the Corporation’s Insider Trading Policy. 

(b) Your right to receive shares pursuant to the Award is conditioned on the receipt to the reasonable satisfaction of the Committee of any
required consent that the Committee may reasonably determine to be necessary or advisable. By accepting delivery of the shares, you acknowledge that you are subject to Corporation’s Insider Trading Policy. 

  
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 6. Section 409A. Shares awarded under this Award Agreement are intended
to be exempt from Section 409A of the U.S. Code, to the extent applicable, and this Award Agreement is intended to, and shall be interpreted, administered and construed consistent therewith. The Committee shall have full authority to give
effect to the intent of this Section 6. 
 7. No Rights to Continued Employment. Nothing in this Award Agreement shall be
construed as giving you any right to continued employment by the Corporation or any of its affiliates or affect any right that the Corporation or any of its affiliates may have to terminate or alter the terms and conditions of your employment. 

8. Successors and Assigns of the Corporation. The terms and conditions of this Award Agreement shall be binding upon, and shall inure to
the benefit of, the Corporation and its successor entities. 
 9. Committee Discretion. Subject to the terms of the Plan, the
Committee shall have full discretion with respect to any actions to be taken or determinations to be made in connection with this Award Agreement, and its determinations shall be final, binding and conclusive. 

10. Amendment. The Committee reserves the right at any time to amend the terms and conditions set forth in this Award Agreement;
provided that, notwithstanding the foregoing, no such amendment shall materially adversely affect your rights and obligations under this Award Agreement without your consent (or the consent of your estate, if such consent is obtained after
your death), and provided, further, that the Committee may not accelerate or postpone the payout of shares to occur at a time other than the applicable time provided for in this Award Agreement. Any amendment of this Award Agreement
shall be in writing signed by an authorized member of the Committee or a person or persons designated by the Committee. 
 11. Adjustment;
Other Plan Provisions. Subject to Section 10, the Committee shall adjust equitably the terms of this Award in accordance with Section 5.4 of the Plan, if applicable. 

Subject to the terms of this Award Agreement, the Restricted Stock shall be subject to the terms of the Plan, including, but not limited to,
the provisions of Section 8.4 related to dividends and voting rights. Cash dividends paid on the Restricted Stock and on all of the Common Stock that may be subsequently acquired with such cash dividends, will be invested in the purchase of
additional shares of Common Stock of the Corporation in accordance with the Popular, Inc. Dividend Reinvestment and Stock Purchase Plan (DRIP); such shares are not subject to the restrictions and are immediately vested. 

Performance Shares will accrue Dividend Equivalents prior to the Performance Shares Vesting Date. Accrued Dividend Equivalents with respect to
the Performance Shares (and on all Restricted Units subsequently acquired with such Dividend Equivalents) will be deemed to be invested in additional Restricted Units settled in shares of Common Stock as if such Restricted Units were shares of
Common Stock purchased in accordance with the DRIP. All Restricted Units will be subject to the terms and conditions of Section 2 and will vest on the Performance Shares Vesting Date based on the actual number of Performance Shares that vest on
that date. 

  
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 12. The Restricted Stock shall be held in custody by the Fiduciary Services Division of Banco
Popular de Puerto Rico. 
 13. Governing Law. This award shall be governed by and construed in accordance with the laws of Puerto
Rico, without regard to principles of conflicts of laws. 
 14. Incentive Recoupment. This award shall be subject to the terms of the
Popular, Inc. Incentive Recoupment Guideline in effect as of the Grant Date and as such guideline may be required to be modified in accordance with applicable law or regulation. 

15. Headings. The headings in this Award Agreement are for the purpose of convenience only and are not intended to define or limit the
construction of the provisions hereof. 
 IN WITNESS WHEREOF, POPULAR, INC. and the Recipient caused this Award Agreement to be duly executed and delivered
as of the Grant Date. 
  

									
	POPULAR, INC.	 		 	ACCEPTED:
					
	By:	 	[Insert Name of Representative]	 		 	By:	 	[Insert Name of Recipient]
	Title:	 	[Insert Title of Representative]	 		 		 	
		
	                                    
                	 	                                    
                    
	Signature	 	Signature

  
 5 

 ANNEX 1 

POPULAR, INC. 
 2018
LONG-TERM EQUITY INCENTIVE AWARD 
 Recipient: 

Employee Number: 
 Grant Date: 

Total Dollar Value of Award: 
 Common Stock Market Price as of
closing on Grant Date: 
 Restricted Stock Vesting Dates: 

Dollar Value of Restricted Stock Award: 
 Shares of Restricted
Stock Awarded: 
  

			
	 Shares (20%)
 Shares (20%)

Shares (20%)
 Shares (20%)
	  	 February 23, 2019
 February 23,
2020
 February 23, 2021
 February 23,
2022

		
	Shares (20%)	  	 Upon termination of your employment after attaining:

(i) age 55 with 10 years of service, or (ii) age 60 with 5 years of service.

  
 6 

 Performance Shares Vesting (Performance Shares Vesting Date: February 23, 2021): 

Dollar Value of Performance Shares Award: 
 Grant Date:
February 23, 2018 
 Common Stock Market Price as of closing on Grant Date: 

Total Target Number of Shares: (50% Total Shareholder Return / 50% Earnings per Share) 

 

					
	 Relative Total Shareholder Return (TSR)1 –
	  	 Percentile Rank among Comparator Group
	  	 Shares Earned

(% of Target)

	 Opening Price =
	  	 75th Percentile or above

(maximum)
	  	(1.5x target shares)
		  	 50th Percentile

(target)
	  	(1x target shares)
	 Target Number of Performance Shares:
	  	 25th Percentile

(threshold)
	  	(0.5x target shares)
		  	Below 25th Percentile	  	0
			
	Absolute Earnings Per Share (EPS)2 –	  	 EPS
	  	 Shares Earned

(% of Target)

	 Cumulative annual EPS 2018-2020
	  	(maximum)	  	(1.5x target shares)
		  	(target)	  	(1x target shares)
	 Target Number of Performance Shares:
	  	(threshold)	  	(0.5x target shares)
		  		  	0

 Results between threshold, target and maximum performance 

will be interpolated to determine vesting award 
  

	1 	TSR will be calculated as [(Closing Price at end of period * (1 + number of shares purchased assuming reinvestment of dividends))/Opening Price at beginning of period] – 1 

 

	 	•	 	Closing Price and Opening Price are based on the preceding 60 trading days average daily close price to mitigate against share price volatility of
point-in-time metrics. 

  

	 	•	 	Opening price = average price 10/5/17-12/29/17 

  

	 	•	 	Closing price = average price 10/7/20-12/31/20 

  

	 	•	 	TSR calculations shall assume that dividends are reinvested on the ex-dividend date (i.e., the date a dividend asset is guaranteed). 

Comparator Group — SNL US Banks greater than $10 billion in assets – Performance will be based on the composition of the group at the end of
the 3-year Performance Cycle. 
 If Popular’s absolute TSR is negative, payout will be limited to a maximum of
100% of target. 
  

	2 	Cumulative total of annual basic EPS for 3 years (2018-2020). The Committee may adjust the goal or results to reflect a core profitability that would not be unduly inflated or deflated by certain transactions that do
not reflect the underlying performance of Popular’s ongoing operations, including, but not limited to, the impact of significant tax reform, sales of non-earning assets, sales of branches or other
businesses, certain business acquisition costs and revenues, extraordinary events or charitable contributions, severance costs and certain litigation and settlement costs, and the effect of share repurchases, among others. 

  
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