Document:

ex10_17.htm

EXHIBIT 10.17

 

Uncommitted Line of Credit Agreement

 

This Uncommitted Line of Credit Agreement (as amended, restated or otherwise modified from time to time, this “Agreement”), dated as of September 27, 2011, is between Raymond James Financial, Inc. (the “Borrower”) and Fifth Third Bank, an Ohio banking corporation (the “Lender”).

 

The Borrower and the Lender hereby agree as follows:

 

              1.The Lender agrees to consider from time to time, from the Effective Date (as defined in Section 7) until September 26, 2012 (such date, or any earlier date pursuant to Section 11, being the “Termination Date”), the Borrower’s requests that the Lender make advances (“Advances”) to it in an aggregate amount not to exceed $50,000,000.00 at any one time outstanding. The proceeds of the Advances are to be used for general corporate purposes.  This Agreement is not a commitment to lend but rather establishes an uncommitted credit facility and sets forth the procedures to be used in connection with the Borrower’s requests for the Lender’s making of Advances to the Borrower from time to time on or prior to the Termination Date and, if the Lender makes Advances to the Borrower hereunder, the Borrower’s obligations to the Lender with respect thereto.

 

       All Advances shall be made against and evidenced by the Borrower’s promissory note payable to the Lender in the principal amount of $50,000,000.00, such note to be in the form of Exhibit A attached hereto (the “Note”).  The Lender agrees that, notwithstanding the principal amount of the Note stated on its face, the Note shall evidence only the actual unpaid principal balance of Advances made hereunder.  The Borrower agrees that in any action or proceeding instituted to collect or enforce collection of the Note, the amount shown as owing the Lender on its records shall be prima facie evidence of the unpaid balance of principal and interest on the Note.

 

              2.Each request by the Borrower to the Lender for an Advance will be given not later than 11:00 a.m. (Eastern Time) on the date (or, with respect to Advances of LIBOR Portions, as defined below, three days prior to such date) of such proposed Advance.  Each request will specify (i) the date on which the Borrower wishes the Advance to be made (which will be a day of the year which is a Business Day, as defined below), (ii) the amount it wishes to borrow (which will be in the amount of $1,000,000 or an integral multiple thereof) and (iii) whether the Advance will be part of the Base Rate Portion or will be a LIBOR Portion, each as defined below.  Notwithstanding anything to the contrary herein, the Borrower may not select any LIBOR Portion if its Interest Period would end after the Termination Date.  Whenever the last day of an Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period will be extended to occur on the next succeeding Business Day and any such extension shall be included in computing interest under this Agreement.  If the Lender agrees, in its sole discretion, to make such Advance, it will make such funds available to the Borrower in same day funds by crediting the account maintained with the Lender that is specified by the Borrower prior to the making of such Advance.

  

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              3. The Borrower will repay the principal amount of each Advance on the earlier to occur of DEMAND and, with respect to LIBOR Portions, the last day of the Interest Period for such Advance, together with accrued interest thereon.  The Borrower may prepay any Advance made to it in whole or in part on any Business Day, provided that (i) the Borrower has given the Lender at least three Business Days’ irrevocable written notice of such prepayment (and on the date specified for such prepayment in such notice, the Borrower will prepay the amount of the Advance to be prepaid, together with accrued interest thereon to the date of prepayment and any other amounts payable by the Borrower pursuant to Section 15), and (ii) each partial prepayment will be in a principal amount of at least $1,000,000.

 

              4.(a) The outstanding principal balance of the Advances (the principal balance of the Advances bearing interest at the same rate for the same period of time being hereinafter referred to as a “Portion”) shall bear interest, at the Borrower’s election subject to the terms and conditions hereof, with reference to the Base Rate (the “Base Rate Portion”) or, with reference to an Adjusted LIBOR (“LIBOR Portions”).  Subject to the terms and conditions hereof, Portions may be converted from time to time from one basis to another.  All principal of the Advances that bears interest with reference to a particular Adjusted LIBOR for a particular Interest Period shall constitute a single LIBOR Portion.  All principal of the Advances that is not part of a LIBOR Portion shall constitute a single Base Rate Portion.  There shall not be more than 6 LIBOR Portions outstanding at any one time.  Anything contained herein to the contrary notwithstanding, no LIBOR Portion shall be created, continued or effected by conversion after any demand for payment of the Advances or any non-compliance by the Borrower with any of the terms or conditions of this Agreement.  The Borrower hereby promises to pay interest on each Portion at the rates and times specified herein.  The interest rate payable under this Agreement shall be subject, however, to the limitation that such interest rate shall never exceed the highest rate that the Borrower may contract to pay under applicable law.

 

              (b)The Base Rate Portion shall bear interest at the rate per annum equal to the Base Rate as in effect from time to time, provided that if the Base Rate Portion or any part thereof is not paid when due (whether by demand or otherwise), such Portion shall bear interest, whether before or after judgment, until payment in full thereof at the rate per annum determined by adding 2.0% to the interest rate which would otherwise be applicable thereto.  Interest on the Base Rate Portion shall be payable monthly in arrears on the first day of each calendar month in each year; and interest shall also be due and payable upon demand.

  

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              (c)Each LIBOR Portion shall bear interest for each Interest Period selected therefor at a rate per annum determined by adding 1.45% to the Adjusted LIBOR for such Interest Period, provided that if any LIBOR Portion is not paid when due (whether by demand or otherwise), such Portion shall bear interest, whether before or after judgment, until payment in full thereof through the end of the Interest Period then applicable thereto at the rate per annum determined by adding 2.0% to the interest rate which would otherwise be applicable thereto, and effective at the end of such Interest Period such LIBOR Portion shall automatically be converted into and added to the Base Rate Portion and shall thereafter bear interest at the interest rate applicable to the Base Rate Portion after default.  Interest on each LIBOR Portion shall be due and payable on the last day of each Interest Period applicable thereto; and interest shall also be due and payable upon demand.  The Borrower shall notify the Lender on or before 11:00 a.m. (Eastern time) on the third Business Day preceding the end of an Interest Period applicable to a LIBOR Portion whether such LIBOR Portion is to continue as a LIBOR Portion; and in the event the Borrower shall fail to so notify the Lender, such LIBOR Portion shall automatically be converted into and added to the Base Rate Portion as of and on the last day of such Interest Period.

 

              (d)Manner of Rate Selection.

 

(i)                LIBOR Portions.  The Borrower shall notify the Lender by 11:00 a.m. (Eastern time) at least 3 Business Days prior to the date upon which the Borrower requests that any LIBOR Portion be created or that any part of the Base Rate Portion be converted into a LIBOR Portion (each such notice to specify in each instance the amount thereof).  If any request is made to convert a LIBOR Portion into the Base Portion, such conversion shall only be made so as to become effective as of the last day of the Interest Period applicable thereto.

 

(ii)              Interest Rate Selections.  All requests for the creation, continuance and conversion of LIBOR Portions under this Agreement shall be irrevocable.  Such requests may be written or oral and the Lender is hereby authorized to honor telephonic requests for creations, continuances and conversions received by it from any person the Lender in good faith believes to be the Borrower, or any of its Designated Officers, without the need of independent investigation, the Borrower hereby indemnifying the Lender from any liability or loss ensuing from so acting.

 

  

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(e)        Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

 

“Adjusted LIBOR” means a rate per annum determined by the Lender in accordance with the following formula:

 

Adjusted LIBOR =                                           LIBOR            

         1-Reserve Percentage

 

“Reserve Percentage” means the maximum reserve percentage, expressed as a decimal, at which reserves (including, without limitation, any emergency, marginal, special, and supplemental reserves) are imposed by the Board of Governors of the Federal Reserve System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or any successor thereto), subject to any amendments of such reserve requirement by such Board or its successor, taking into account any transitional adjustments thereto.  For purposes of this definition, the relevant Portions of the Advances shall be deemed to be “eurocurrency liabilities” as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation D. The Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any such reserve percentage.  “LIBOR” means, for each Interest Period, (a) the LIBOR Index Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of interest per annum (rounded upward, if necessary, to the nearest 1/16th of 1%) at which deposits in U.S. Dollars in immediately available funds are offered to the Lender at 11:00 a.m. (London, England time) 2 Business Days before the beginning of such Interest Period by 3 or more major banks in the interbank eurodollar market selected by the Lender for a period equal to such Interest Period and in an amount equal or comparable to the applicable LIBOR Portion scheduled to be outstanding from the Lender during such Interest Period.  “LIBOR Index Rate” means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a period equal to such Interest Period, which appears on the LIBOR Page as of 11:00 a.m. (London, England time) on the day 2 Business Days before the commencement of such Interest Period.  “LIBOR Page” means the display on the Bloomberg LP service quoting the London InterBank Offered Rates on U.S. Dollar deposits (or such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for U.S. Dollar deposits).  Each determination of LIBOR made by the Lender shall be conclusive and binding for all purposes absent manifest error.

  

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“Base Rate” means, for any day, the rate per annum equal to the greatest of:  (a) the rate of interest announced or otherwise established by the Lender from time to time as its prime commercial rate as in effect on such day, with any change in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate (it being acknowledged and agreed that such rate may not be the Lender’s best or lowest rate), (b) the sum of (i) the rate determined by the Lender to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to the Lender at approximately 10:00 a.m. (Eastern time) (or as soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers selected by the Lender for sale to the Lender at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount for which such rate is being determined, plus (ii) 1/2 of 1%, and (c) the LIBOR Quoted Rate for such day plus 1.00%.  As used herein, the term “LIBOR Quoted Rate” means, for any day, the rate per annum equal to the quotient of (i) the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a one-month interest period which appears on the LIBOR01 Page as of 11:00 a.m. (London, England time) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) divided by (ii) one (1) minus the Reserve Percentage.

 

“Business Day” means any day other than a Saturday or Sunday on which the Lender is not authorized or required to close in Cincinnati , Ohio and, when used with respect to LIBOR Portions, a day on which the Lender is also dealing in United States Dollar deposits in London, England and Nassau, Bahamas.

 

“Interest Period” means, with respect to any LIBOR Portion, the period commencing on, as the case may be, the creation, continuation or conversion date with respect to such LIBOR Portion and ending one month thereafter; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

  

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(i)           if any Interest Period would otherwise end on a day which is not a Business Day, that Interest Period shall be extended to the next succeeding Business Day, unless in the case of an Interest Period for a LIBOR Portion the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day; and

 

(ii)           the interest rate to be applicable to each LIBOR Portion for each Interest Period shall apply from and including the first day of such Interest Period to but excluding the last day thereof.

 

For purposes of determining an Interest Period, a month means a period starting on one day in a calendar month and ending on a numerically corresponding day in the next calendar month, provided, however, if an Interest Period begins on the last day of a month or if there is no numerically corresponding day in the month in which an Interest Period is to end, then such Interest Period shall end on the last Business Day of such month.

 

              5.(a) Change of Law.  Notwithstanding any other provisions hereof, if at any time the Lender shall determine that any change in applicable laws, treaties or regulations or in the interpretation thereof makes it unlawful for the Lender to create or continue to maintain any LIBOR Portion, it shall promptly so notify the Borrower and at the Lender’s option it may demand repayment of the Advances or only the affected LIBOR Portion and, even absent such demand, no LIBOR Portion shall be created, continued or maintained after the date of such determination until it is no longer unlawful for the Lender to create, continue or maintain such LIBOR Portion.  Upon such a demand by the Lender for payment, the Borrower shall thereupon pay the outstanding principal amount of the Advances so demanded, together with all interest accrued thereon and all other amounts payable to the Lender with respect thereto under this Agreement (including without limitation any amount due the Lender under the funding indemnity section below); provided, however, that unless the Lender makes demand for repayment of the Advances in full, the Borrower may elect to convert the principal amount of the affected LIBOR Portion into the Base Rate Portion, subject to the terms and conditions hereof (including, without limitation, the payment of interest and other amounts payable to the Lender hereunder).

  

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              (b)Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, Adjusted LIBOR.  Notwithstanding any other provision hereof, if the Lender shall determine prior to the commencement of any Interest Period that deposits in the amount of any LIBOR Portion scheduled to be outstanding during such Interest Period are not readily available to the Lender in the relevant market or, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining Adjusted LIBOR or that LIBOR as determined hereby will not adequately and fairly reflect the cost to the Lender of funding any LIBOR Portion for such Interest Period or that the making or funding of LIBOR Portions has become impracticable, then the Lender shall promptly give notice thereof to the Borrower and at the Lender’s option it may demand repayment of the Advances or only the affected LIBOR Portion and, even absent such demand, no LIBOR Portion shall be created, continued or effected by conversion, as the case may be, in such amount and for such Interest Period until deposits in such amount and for the Interest Period selected by the Borrower shall again be readily available to the Lender in the relevant market and adequate and reasonable means exist for ascertaining Adjusted LIBOR.

 

              (c)Taxes and Increased Costs. With respect to any LIBOR Portion, if the Lender shall determine that any change in any applicable law, treaty, regulation or guideline (including, without limitation, Regulation D of the Board of Governors of the Federal Reserve System) or any new law, treaty, regulation or guideline, or any interpretation of any of the foregoing by any governmental authority charged with the administration thereof or any central bank or other fiscal, monetary or other authority having jurisdiction over the Lender or its lending branch or the LIBOR Portions contemplated hereby (whether or not having the force of law), shall: (i) impose, increase, or deem applicable any reserve, special deposit or similar requirement against assets held by, or deposits in or for the account of, or loans by, or any other acquisition of funds or disbursements by, the Lender which is not in any instance already accounted for in computing the interest rate applicable to such LIBOR Portion; (ii) subject the Lender, this Agreement or any LIBOR Portion to any tax (including, without limitation, any United States interest equalization tax or similar tax however named applicable to the acquisition or holding of debt obligations and any interest or penalties with respect thereto), duty, charge, stamp tax, fee, deduction or withholding in respect of this Agreement or any LIBOR Portion, except such taxes as may be measured by the overall net income or gross receipts of the Lender or its lending branches and imposed by the jurisdiction, or any political subdivision or taxing authority thereof, in which the Lender’s principal executive office or its lending branch is located; (iii) change the basis of taxation of payments of principal and interest due from the Borrower to the Lender hereunder (other than by a change in taxation of the overall net income or gross receipts of the Lender); or (iv) impose on the Lender any penalty with respect to the foregoing or any other condition regarding this Agreement or any LIBOR Portion, and the Lender shall determine that the result of any of the foregoing is to increase the cost (whether by incurring a cost or adding to a cost) to the Lender of creating or maintaining any LIBOR Portion hereunder or to reduce the amount of principal or interest received or receivable by the Lender (without benefit of, or credit for, any prorations, exemption, credits or other offsets available under any such laws, treaties, regulations, guidelines or interpretations thereof), then the Borrower shall pay on demand (which need not but may at the Lender’s option be combined with a demand for repayment of the Advances) to the Lender from time to time as specified by the Lender such additional amounts as the Lender shall reasonably determine are sufficient to compensate and indemnify it for such increased cost or reduced amount.  If the Lender makes such a claim for compensation, it shall provide to the Borrower a certificate setting forth the computation of the increased cost or reduced amount as a result of any event mentioned herein in reasonable detail and such certificate shall be conclusive and binding for all purposes, absent manifest error.

  

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              6.The Borrower will make each payment (whether in respect of principal, interest or otherwise) payable by it hereunder, irrespective of any right of counterclaim or set-off, and without reduction for, and free from, any and all present or future taxes, levies, imposts, duties, fees, charges, deductions, withholdings, restrictions, and conditions of any nature imposed by any government or any political subdivision or taxing authority thereof (but excluding any taxes imposed on or measured by the net income of the Lender) not later than 2:00 P.M. (Eastern time) on the day when due in U.S. dollars in immediately available funds  to the Lender at 201 East Kennedy Blvd., Suite 1600, Tampa, Florida  33602 (or such other location specified by the Lender to the Borrower) in same day funds.  The Borrower hereby authorizes the Lender, if and to the extent payment owed to the Lender is not made when due hereunder, to charge from time to time against any or all of the Borrower’s accounts with the Lender or any of the Lender’s affiliates any amount so due.  All computations of interest will be made by the Lender on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable.  Each determination by the Lender of an interest rate hereunder will be conclusive and binding for all purposes, absent manifest error.  Whenever any payment hereunder is stated to be due on a day other than a Business Day, such payment will be made on the next succeeding Business Day, and such extension of time will in such case be included in the computation of payment of interest.

 

              7.This Agreement will become effective on and as of the first date (the “Effective Date”) on which the Lender has received the following, each in form and substance satisfactory to the Lender: (i) a counterpart of this Agreement duly executed by the Lender and the Borrower; (ii) the Note duly executed by the Borrower, (iii) certified copies of the resolutions of the Borrower’s Board of Directors approving this Agreement, and of all other documents, including articles of incorporation certified by the appropriate governmental authority and bylaws, evidencing necessary corporate action and governmental and other third party approvals, if any, with respect to this Agreement; and (iv) a certificate of the Borrower’s Secretary or Assistant Secretary certifying the names and true signatures of the Borrower’s officers authorized to sign this Agreement and the other documents to be delivered hereunder and to request Advances hereunder (“Designated Officers”).

 

              8. Each request by the Borrower for an Advance and the acceptance by the Borrower of the proceeds of such Advance will constitute a representation and warranty by the Borrower that on the date of such Advance the representations and warranties contained in Section 9 are correct on and as of the date of such Advance, before and after giving effect to such Advance and to the application of the proceeds therefrom, as though made on and as of such date (other than any such representations or warranties that, by their terms, refer to a date other than the date of such Advance).  In addition, the Borrower agrees to deliver to the Lender such other documents and other information reasonably requested by the Lender in connection with an Advance requested by the Borrower.

  

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              9.The Borrower represents and warrants as follows:

 

(a)           It is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation.

 

(b)          The execution, delivery and performance by the Borrower of this Agreement, and the consummation of the transactions contemplated hereby, are within the Borrower’s corporate powers and authority, have been duly authorized by all necessary corporate action, and do not contravene (i) its charter or by-laws or (ii) any law or any contractual restriction binding on or affecting it.

 

(c)           No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by the Borrower of this Agreement.

 

(d)          This Agreement has been duly executed and delivered by the Borrower, and is its legal, valid and binding obligation enforceable against the Borrower in accordance with its terms.

 

(e)          The consolidated balance sheet of the Borrower and its subsidiaries as at September 30, 2010, and the related consolidated statements of income and cash flow of the Borrower and its subsidiaries for the fiscal year then ended, accompanied by an opinion of the Borrower’s independent certified public accountants, fairly present the consolidated financial condition of the Borrower and its subsidiaries as at such date and the consolidated results of operations of the Borrower and its subsidiaries for the period ended on such date, all in accordance with generally accepted accounting principles consistently applied.

 

(f)            Except as set forth in Borrower’s reports filed pursuant to Section 13 of the Securities Exchange Act of 1934 (the “34 Act Reports”), since September 30, 2010, there has been no material adverse change in the business, operations, condition (financial or otherwise) or prospects of the Borrower and its subsidiaries taken as a whole.

 

(g)           Except as set forth in the Borrower’s Act 34 Reports, there is no pending or threatened action, suit, investigation, litigation or proceeding affecting the Borrower or its subsidiaries before any court, governmental agency or arbitrator that (i) could be reasonably likely to have a material adverse effect on the business, operations, condition (financial or otherwise) or prospects of the Borrower and its subsidiaries taken as a whole, the Lender’s rights and remedies under this Agreement, or the Borrower’s ability to perform its obligations under this Agreement, or (ii) purports to affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated hereby.

 

(h)          The Borrower is not an “investment company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended.

 

(i)            No report, financial statement, certificate or other information furnished (whether in writing or orally) by or on behalf of the Borrower to the Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to any projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

  

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(j)No proceeds of any Advance will be used to purchase or carry any margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of purchasing or carrying any margin stock.

 

              10.The Borrower shall maintain a standard system of accounting in accordance with generally accepted accounting principles and shall furnish to the Lender and its duly authorized representatives such information respecting the Borrower’s business and financial condition as the Lender may reasonably request; and without any request, the Borrower shall furnish to the Lender:  (a) as soon as available, and in any event within 25 days after the last day of each month, a copy of Raymond James & Associates, Inc.’s Financial and Operational Combined Uniform Single Report for such month, as required by the U.S. Securities and Exchange Commission, (b) as soon as available, and in any event within 45 days after the last day of the first three fiscal quarters of the Borrower, a copy of the Borrower’s balance sheet as of the last day of such quarter and the Borrower’s statements of income, retained earnings, and cash flows for the fiscal quarter then ended, each in reasonable detail, prepared by the Borrower in accordance with generally accepted accounting principles, (c) as soon as available, and in any event within 120 days after the last day of each fiscal year of the Borrower, a copy of the Borrower’s balance sheet as of the last day of such year and the Borrower’s statements of income, retained earnings, and cash flows for the fiscal year then ended, each in reasonable detail, prepared by the Borrower in accordance with generally accepted accounting principles and accompanied by an unqualified audit report on such financial statements prepared by the Borrower’s independent public accountants, (d) at the time of the delivery of the reports required pursuant to the foregoing clauses (b) and (c), a certificate from the Borrower’s Chief Financial Officer (or another officer of the Borrower acceptable to the Lender) certifying that the Borrower is in compliance with Section 24, and (e) promptly after knowledge thereof shall have come to the actual knowledge of the Borrower, written notice of any threatened or pending litigation or governmental or arbitration proceeding or labor action against the Borrower which, if adversely determined, would materially and adversely effect the Borrower’s condition (financial or otherwise) or operations.

 

              11.The Lender may terminate the availability of additional Advances under this Agreement On Demand.  The Lender reserves the right at any time without notice to refuse any Advance request or any request for a LIBOR Rate Portion even though the Borrower has complied with all of the terms of this Agreement.  No termination under this Section shall affect the Lender’s rights or the Borrower’s obligations regarding payment or default under this Agreement.  Such termination shall not affect the Borrower’s obligation to pay all Advances and the interest accrued through the date of final payment.  The Lender agrees to notify the Borrower of any amendment or modification made by the Lender pursuant to Section 17, provided that neither the Lender’s agreement to so notify the Borrower, nor the Lender’s failure to so notify the Borrower, will affect the uncommitted, demand nature of this Agreement.

 

              12. All notices and other communications provided for hereunder will be in writing (including fax or e-mail communication) and mailed, faxed, e-mailed or delivered, if to the Borrower, at its address at Raymond James Financial, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, Attention:  Treasury Department/Cash Management (fax number: 727-567-8986) (e-mail c/o: Ron.Whitaker@RaymondJames.com); if to the Lender, at its address at 201 East Kennedy Blvd., Suite 1600, Tampa, Florida  33602, Attention: John Marian (fax number 813-306-2531) (e-mail: john.marian@53.com); or, as to either party, at such other address as is designated by such party in a written notice to the other party.  Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received.  Notices sent by facsimile shall be deemed to have been given when received (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that, if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

  

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              13.The Borrower shall pay to the Lender the principal balance of outstanding Advances together with any accrued interest On Demand.  The Lender can demand payment in full of the Advances at any time in its sole discretion even if the Borrower has complied with all of the terms of this Agreement.  No failure on the Lender’s part to exercise, and no delay in exercising, any right hereunder will operate as a waiver thereof; nor will any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

 

              14.        (a)  The Borrower agrees to pay On Demand all of the Lender’s out-of-pocket costs and expenses (including without limitation, reasonable counsel fees and expenses) in connection with the preparation, execution, delivery, administration, modification, amendment and enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement.

 

(b)  The Borrower will indemnify and hold harmless the Lender, its affiliates and each of its and their respective officers, directors, employees, agents, advisors and representatives (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including without limitation, fees and disbursements of counsel), that may be incurred by or asserted or awarded against any Indemnified Party (including without limitation, in connection with any investigation, litigation or proceeding, or the preparation of a defense in connection therewith), in each case arising out of or in connection with this Agreement, any of the transactions contemplated hereby or any actual or proposed use of the proceeds of the Advances, except to the extent such claim, damage, loss, liability or expense is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted primarily from such Indemnified Party's gross negligence or willful misconduct.  In the case of an investigation, litigation or other proceeding to which the indemnity in this Section applies, such indemnity will be effective whether or not such investigation, litigation or proceeding is brought by the Borrower, any of its directors, security holders or creditors, an Indemnified Party or any other person, or any Indemnified Party is otherwise a party thereto, and whether or not the transactions contemplated hereby are consummated.

 

                   (c)No Indemnified Party will have any liability (whether in contract, tort or otherwise) to the Borrower or any of its security holders or creditors for or in connection with the transactions contemplated hereby, except for direct damages (as opposed to special, indirect, consequential or punitive damages (including without limitation, any loss of profits, business or anticipated savings)) determined in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct.

 

              15.In the event the Lender shall incur any loss, cost or expense (including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired or contracted to be acquired by the Lender to fund or maintain any LIBOR Portion or the relending or reinvesting of such deposits or other funds or amounts paid or prepaid to the Lender) as a result of:

 

(i)      any payment of a LIBOR Portion on a date other than the last day of the then applicable Interest Period for any reason, whether before or after default, and whether or not such payment is required by any provisions of this Agreement; or

 

(ii)any failure by the Borrower to create, borrow, continue or effect by conversion a LIBOR Portion on the date specified in a notice given pursuant to this Agreement;

 

then the Borrower shall pay to the Lender upon its demand (which need not but may at the Lender’s option be combined with a demand for repayment of the Advances) such amount as will reimburse the Lender for such loss, cost or expense.  If the Lender requests compensation under this Section, it shall provide to the Borrower a certificate setting forth the computation of the loss, cost or expense giving rise to the request for compensation in reasonable detail and such certificate shall be conclusive and binding for all purposes absent manifest error.

  

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16.     This Agreement is binding upon and will inure to the benefit of the Borrower, the Lender and their respective successors and assigns, except that the Borrower will not have the right to assign its rights or obligations hereunder or any interest herein without the Lender’s prior written consent.  The Lender may, with the written consent of the Borrower (which consent will not be unreasonably withheld), assign to one or more persons all or a portion of its rights and obligations under this Agreement, provided that the consent of the Borrower will not be required in connection with an assignment to an affiliate of the Lender.  Notwithstanding any other provisions set forth in this Agreement, the Lender may at any time create a security interest in all or any portion of the Lender’s rights under this Agreement, including without limitation, in favor of any Federal Reserve Bank.

 

              17.This Agreement will be governed by, and construed in accordance with, the internal laws of the State of New York (including Section 5-1401 of the General Obligations Law of New York), without regard to conflicts of laws principles that would require application of another law.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed will be deemed to be an original and all of which taken together will constitute one and the same agreement.  The Borrower waives presentment and notice of dishonor.  This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby.  No amendment or waiver of any provision of this Agreement or the Note, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender; provided that, the Lender may amend or modify the terms and conditions of this Agreement at any time without prior notice to the Borrower and without the Borrower’s consent, but no such amendment or modification will affect the Borrower’s obligations with respect to Advances outstanding at the time of such amendment or modification.  If any part of this Agreement is unenforceable, that will not make any other part unenforceable.

 

              18.The Borrower irrevocably and unconditionally (i) submits to the non-exclusive jurisdiction of any New York State or Federal court located in the City of New York over any suit, action or proceeding arising out of or relating to this Agreement, (ii) accepts for itself and in respect of its property the jurisdiction of such courts, (iii) waives any objection to the laying of venue of any such suit, action or proceeding brought in any such courts and any claim that any such suit, action or proceeding has been brought in an inconvenient forum and (iv) consents to the service of any process, summons, notice or document in any such suit, action or proceeding by registered mail addressed to the Borrower at its address specified in Section 12.  A final judgment in any such suit, action or proceeding will be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing herein will affect the right of the Lender to serve legal process in any other manner permitted by law or affect the Lender’s right to bring any suit, action or proceeding against the Borrower or its property in the courts of other jurisdictions.  To the extent that the Borrower has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, the Borrower irrevocably waives such immunity in respect of its obligations under this Agreement.

  

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              19.If a payment has not been made by the Borrower when due hereunder, the Lender and each of its affiliates is authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by the Lender or any of its affiliates to or for the Borrower’s credit or account against any and all of the Borrower’s obligations now or hereafter existing under this Agreement, irrespective of whether the Lender has made demand under this Agreement and although such obligations may be unmatured.  The Lender’s rights under this Section are in addition to other rights and remedies (including without limitation, other rights of set-off) which the Lender may have.

 

              20.Each of the parties hereto hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement, the Advances or the Lender’s actions in the negotiation, administration, performance or enforcement hereof or thereof.

 

              21.The status of all Advances as constituting part of the Base Rate Portion or a LIBOR Portion, and, in the case of any LIBOR Portion, the rates of interest and Interest Periods applicable to such Portions shall be recorded by the Lender on its books and records or, at its option in any instance, endorsed on a schedule to the Note and the unpaid principal balance and status, rates and Interest Periods so recorded or endorsed by the Lender shall be prima facie evidence in any court or other proceeding brought to enforce the Note and the principal amount of Advances remaining unpaid thereon, the status of the Advances evidenced by the Note, and the interest rates and Interest Periods applicable thereto; provided that the failure of the Lender to record any of the foregoing shall not limit or otherwise affect the obligation of the Borrower to repay the principal balance of the Advances together with accrued interest thereon.  Prior to any negotiation of the Note, the Lender shall record on a schedule hereto the status of all amounts evidenced thereby as constituting part of the Base Rate Portion or a LIBOR Portion and, in the case of any LIBOR Portion, the rates of interest and the Interest Periods applicable thereto.

 

              22.All indemnities and other provisions relative to reimbursement to the Lender of amounts sufficient to protect the yield of the Lender with respect to the Advances, including, but not limited to, Sections 5 and 15 hereof, shall survive the termination of this Agreement and the payment of the Advances.

 

              23.The Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the Act.

 

              24.The Borrower agrees that it shall not at any time have uncommitted borrowing arrangements with more than four banks and that it shall not cause the total borrowings under such uncommitted credit facilities to exceed $250 million.

[Signature Page to Follow]

  

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In Witness Whereof, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

Raymond James Financial, Inc.

 

By:  /s/ Jeffrey P. Julien                                       

Name: Jeffrey P. Julien

Title:   Executive Vice President, Finance and

            Chief Financial Officer

 

Fifth Third Bank, an Ohio banking corporation

 

By:  /s/ Joseph A. Wemhoff                                 

Name:  Joseph A. Wemhoff

Title:    Vice President

  

176

  

Exhibit A

 

Promissory Note

 

$50,000,000.00                                                                                                                                                                     September September 27, 2011

 

On Demand, for value received, the undersigned, Raymond James Financial, Inc., a Florida corporation, promises to pay to the order of Fifth Third Bank, an Ohio banking corporation (the “Lender”) at its offices at 201 East Kennedy Blvd., Suite 1600, Tampa, Florida  33602 (or at such other place as the Lender may specify), the principal sum of Fifty Million and 00/100 Dollars ($50,000,000.00) or, if less, the amount outstanding under the Uncommitted Line of Credit Agreement referred to below together with interest payable at the times and at the rates and in the manner set forth in the Uncommitted Line of Credit Agreement referred to below.

 

This Note evidences borrowings by the undersigned under that certain Uncommitted Line of Credit Agreement dated as of September 27, 2011, between the undersigned and the Lender; and this Note and the holder hereof are entitled to all the benefits provided for under the Uncommitted Line of Credit Agreement, to which reference is hereby made for a statement thereof.  The undersigned hereby waives presentment and notice of dishonor.  The undersigned agrees to pay to the holder hereof all expenses incurred or paid by such holder, including reasonable attorneys’ fees and court costs, in connection with the collection of this Note.  It is agreed that this Note and the rights and remedies of the holder hereof shall be construed in accordance with and governed by the laws of the State of New York (including Section 5-1401 of the General Obligations Law of New York), without regard to the conflicts of laws principles that would require application of another law.

Raymond James Financial, Inc.

By:    

Name: Jeffrey P. Julien

Title:   Executive Vice President, Finance and

            Chief Financial Officer

  

177ex10_18.htm

EXHIBIT 10.18

 

 

                AMENDED AND RESTATED RAYMOND JAMES FINANCIAL LONG-TERM INCENTIVE PLAN

 

  PREAMBLE

 

Raymond  James  Financial,  Inc.  (the "Company")  has  previously  established  the Raymond James Financial Long-Term Incentive Plan (the "Plan"), effective October 1, 2000, for a select group of management or highly compensated employees in order to attract, retain and motivate qualified personnel for the Company and its Related Employers.

 

  This  Plan has  been  amended previously, primarily to conform its provisions to the American Jobs Creation Act of 2004 (the "Act"), and in particular Section 409A of the Internal Revenue Code of 1986, as amended, which section was added to the Code by the Act.   Code Section 409A provides rules that relate to deferred compensation plans, including the Plan.

 

               The latest guidance that has been issued with respect to Code Section 409A is the final regulations, generally effective January 1, 2009.  This amendment and restatement is intended to make sure that the Plan complies with Code Section 409A, the final regulations and any other applicable guidance issued to date with respect thereto.

 

  In  accordance with  the  foregoing, the  Plan  is  hereby  amended  and  restated, as  of December 31, 2007, to read as follows:

 

 

ARTICLE I 

Definitions

 

(a)         "Account"  shall mean a Participant's   Employer  Contribution  Account  as described in Article IV.

 

(b)         "Code" shall mean the Internal Revenue Code of 1986, as it may be amended from time to time. Reference to a specific Code Section shall include any successor provision.

 

            (c)         "Committee" shall mean the Compensation Committee of the Board of Directors of the Company.

 

(d)         "Company" shall mean Raymond James Financial, Inc., a Florida corporation, and its successor or successors.

 

(e)         "Disability" shall mean a disability within the meaning of the provisions of the Raymond James, Financial, Inc. Long-Term Disability Plan; provided, however, that such event is also an event of disability within the meaning of Code Section 409A.

 

 

  

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(f)        "Early Retirement Date" shall mean, with respect to a Participant, the date that is the earliest of (1) the date at or after the Participant attains age 55 when the number of the Participant's years of service plus the age of the Participant equals 75 or (2) the date at or after the Participant  attains age 60 when the Participant  has at least five years of service.   For these purposes, "years of service" shall be determined in accordance with the vesting provisions of the Raymond James Financial,  Inc. and Affiliates Profit Sharing Plan as it may exist from time to time.

 

(g)        "Normal Retirement Date" shall mean, with respect to a Participant, the date on which the Participant attains age 65.

 

(h)        "Participant" shall mean any employee of the Company or a Related Employer who is covered by this Plan as provided in Article III.

 

(i)        "Period of Credited Service" shall mean the period from October 1 of one year through September 30 of the next year.

 

(j)        "Plan" shall mean the Raymond  James Financial  Long-Term  Incentive Plan as set forth herein and as it may be amended from time to time.

 

(k)        "Plan Administrator" shall mean the Committee or its designee(s).

 

(l)        "Plan Year" shall mean the 12-month period ending on the last day of September.

 

(m)        "Related Employer" shall mean a corporation, limited liability company or other business entity that is affiliated with the Company, that has elected to adopt the Plan, and that the Company, in its sole discretion, allows to participate in the Plan as a participating employer.

 

(n)        "Separation  from  Service"  shall  mean  the  termination  of  employment  of  a Participant  (whether  for  death,  disability,  retirement  or  otherwise)  with  his  or  her  Service Recipient if such termination  qualifies as a separation from service within the meaning of Code Section 409A.

 

(o)        "Service   Recipient"  shall   mean   a   Participant's   employer   and   all   other corporations  and  other  persons  with  whom  such  employer  would  be  considered  as  a  single employer under Code Section 414(b) or Code Section 414(c).

 

(p)        "Specified  Employee" shall mean a Participant  who,  at the date of his or her Separation  from  Service  (other  than  by  reason  of  death),  is  a  key  employee  of  a  Service Recipient.    For  these  purposes,  the  Participant  is  a  key  employee  if  he  or  she  meets  the requirements  of a key  employee  (as defined in Code Section  416(i)  (without  regard to Code Section 416(i)(5)) at any time during the 12-month period ending on a September 30 as long as any  stock  of  the Service  Recipient  is  publicly  traded  on  an  established  securities  market  or otherwise.    Any  such  person  shall  be  treated  as a Specified  Employee  during  the 12-month period beginning on January 1 following such September 30.

  

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ARTICLE II 

Administration

 

 

(a)           Plan Administrator.

 

(1)       The  Plan  Administrator  shall  have  complete  control  and  discretion  to manage   the  operation   and  administration   of  the  Plan.     Not  in  limitation,   but  in amplification of the foregoing, the Plan Administrator shall have the following powers:

 

    (A)      to determine all questions relating to the eligibility of employees to participate or continue to participate;

 

(B)     to maintain all records and books of account necessary for the administration of the Plan;

 

(C)       to interpret the provisions of the Plan and to make and to publish such interpretive or procedural rules as are not inconsistent with the Plan and applicable law;

 

(D)      to  compute,  certify  and  arrange  for  the  payment  of  benefits  to which any Participant or beneficiary is entitled;

 

(E)      to process claims for benefits under the Plan by Participants or beneficiaries;

 

(F)           to   engage   consultants   and   professionals   to   assist   the   Plan

 

Administrator in carrying out its duties under this Plan;

 

    (G)      to  develop  and  maintain  such  instruments  as  may  be  deemed necessary from time to time by the Plan Administrator to facilitate payment of benefits under the Plan; and

 

(H)      to  establish   such   accounting   procedures   as  are  necessary   to implement the provisions of the Plan.

 

(2)       The   Plan   Administrator   may   designate   a  committee,   one   or   more employees   or   other   individuals,   one   or   more   Company   positions,   and/or   other designee(s), to assist the Plan Administrator in the administration of the Plan and the performance of the duties required of the Plan Administrator hereunder.

 

(b)           Plan  Administrator's Authority.    The  Plan  Administrator  may  consult  with Company officers, legal and financial advisers to the Company and others, but nevertheless the Plan   Administrator   shall  have   the   full   authority   and   discretion   to   act,   and  the   Plan Administrator's actions shall be final and conclusive on all parties.

  

180

  

 

	
  

	
                                      ARTICLE III

	
  

	
                                   Eligibility and Participation

 

(a)          Eligibility.  The Company  or a Related  Employer  shall determine  those of its employees  who  are  eligible  to  participate  in  the  Plan,  subject  to  standards  of  eligibility  as established by the Committee  from time to time and subject to the requirement that the Plan be maintained  primarily for the purpose of providing deferred compensation  for a select group of management or highly compensated employees (within the meaning of the Employee Retirement Income  Security  Act of 1974,  as amended).   Accordingly,  an employee  of the Company  or a Related Employer who, in the opinion of the Company or a Related Employer based upon the then applicable Committee-established  guidelines, has contributed or is expected to contribute significantly  to the growth and successful operations  of the Company  or a Related Employer, who is a member of a select group of management or highly compensated  employees, and who meets any additional criteria for eligibility established by the Plan Administrator will be eligible to become a Participant.

 

(b)         Participation.  An eligible  employee  shall become  a Participant  in the Plan  at such time as a contribution is credited to the Account of such person in accordance with the provisions of Article IV.

  ARTICLE IV

Company Contributions, Participant Accounts and Investment of Accounts

 

(a)         Discretionary Contributions.  The Company or a Related Employer may, in accordance with the provisions of Article III, determine to credit an eligible employee with a discretionary  contribution  with respect to a Plan Year.   The amount to be contributed  shall be determined by the Plan Administrator in its sole discretion.

 

 

(b)         Participant Accounts.

 

 

    (1)       Amounts, if any, credited to a Participant  pursuant  to this Plan shall be recorded by the Plan Administrator in an Employer Contribution  Account maintained in the name of the Participant.   A separate Account shall be maintained for each Plan Year that a person receives a contribution.

 

 

    (2)       All amounts that are credited to a Participant's Account shall be credited solely for purposes of accounting and computation,  and no fund shall be set aside with respect thereto, except as may be provided in paragraph  (e) below.   A Participant  shall not have any interest in or right to any such Account at any time.

 

 

    (3)       The  Plan  shall  be  unfunded  for  all federal  tax  purposes.    All  amounts recorded in Accounts, a Participant's  interest in the Plan and any amounts provided under the Plan shall constitute an unsecured promise by the Company or a Related Employer to pay benefits in the future, and a Participant shall have the status of a general unsecured creditor of the Company  or Related Employer.   All amounts credited to a Participant's Account(s) will remain as general assets of the Company or a Related Employer and shall remain subject to the claims of the Company's  or the Related Employer's creditors until such time as the amounts are distributed to the Participant.

  

181

  

(c)       Crediting and Debiting of Accounts.

 

(1)       As provided in paragraph (b)(1) above, a Participant's  Account shall be credited with the amounts contributed to the Plan on behalf of the Participant with respect to a Plan Year.   The Account thereafter shall be credited (or debited) from time to time based upon the Participant's allocable share of the return (including any negative return) on  the investment  or deemed  investment  of  the amounts  credited  to  the Participant's Account (which investments or deemed investments shall be determined by the Plan Administrator).   Upon distribution  or forfeiture of amounts in the Account, the Account shall be debited with the amount of the distribution or forfeiture, as the case may be.

 

(2)      The Plan Administrator shall establish such rules and procedures as are necessary for purposes of crediting and debiting the Participants'  Accounts from time to time.  Without limitation on the foregoing, lump sum distributions  shall be based on the value of the Account(s)  of a Participant  as of October 31 of the year of payment  (for payments to be made in accordance with Article V(c)(1) or (3)) or the end of the month in which the Participant Separates from Service by reason of death or Disability  (for payments to be made in accordance with Article V(c)(2)).

 

(d)       Account Valuation.

 

(1)       The value of a Participant's Account(s)  shall be determined  by the Plan Administrator,  and the Plan Administrator  may establish such accounting  procedures as are necessary to account for the Participant's interest in the Plan.  Each Participant's Account(s) shall be valued as of the last day of each Plan Year and/or such other date or dates as may be determined from time to time by the Plan Administrator.

 

(2)       At least  annually,  the Plan  Administrator  shall  furnish  each  Participant with a statement of the value of his or her Account(s).

 

(e)       Establishment of Trust.

 

(1)       The Company  and/or one or more  Related  Employers  may, but are not required to, establish a trust substantially in conformity with the terms of the model trust described   in  Revenue   Procedure   92-64   to   assist   in  meeting   their   obligations   to Participants  under this Plan.   Except  as provided in subparagraph  (4) below, any such trust shall be established in such manner so as to permit the assets transferred to the trust and the earnings  thereon to be used by the trustee  solely  to satisfy  the liability  of the Company or a Related Employer in accordance with the Plan and to preclude the use of such assets for any other purpose.

 

(2)       The Company or a Related Employer, in its sole discretion, and from time to time, may make contributions to the trust.

  

182

  

 

 

(3)        The powers,  duties  and responsibilities of the trustee  shall  be as set forth m  the   trust   agreement   and  nothing   contained   in  the  Plan,   either   expressly   or  by implication,  shall  impose   any  additional  powers,   duties  or  responsibilities  upon   the trustee.

 

(4)        Unless otherwise paid by the Company or a Related  Employer,  all benefits under  the  Plan  and  expenses   chargeable to  the  Plan  and  the  trust,  if  one  has  been established, shall be paid from the trust.

          ARTICLE V

 

Vesting and Payment of Benefits under the Plan

 

(a)          General Vesting Rules.  A Participant shall become  100%  vested  in the amount credited   to  his  or  her  Account  (including   earnings   and  other  adjustments) with  respect  to  a contribution for a specific  Plan Year on the first to occur of the following:

 

(1)           the date  that the Participant has  five  (5) consecutive Periods  of Credited

 

Service  with respect  to such contribution;

 

 

(2)           the Participant's Separation from Service  by reason  of death or Disability;

 

or

 

 

(3)           the  Participant's Separation from  Service  following the  attainment  of his or her Normal  Retirement Date.

 

	
  

	
In addition, any Participant who was 100% vested in any Account  prior to October  1, 2005 under the terms of the Plan as then in existence  shall remain  100% vested therein.

 

For purposes  of subparagraph (1) above,  and subject  to the provisions of paragraph (b) below,  a Participant has five consecutive Periods  of Credited  Service  only  if the Participant is employed by the Company or a Related  Employer for the full five-year  period  beginning on October  1 of the year following the Plan  Year with respect  to which  the contribution is made  and continuing through  September 30 of the fifth year thereafter.   For example,  if a contribution is credited  to a Participant with respect  to the Plan Year ended September 30, 2005 (regardless whether  the contribution is  actually   credited  to  the  Account   of  the  Participant in  September 2005  or  in subsequent months),  the Participant will have five consecutive Periods  of Credited  Service  only if the  Participant remains  employed  by  the Company or a Related  Employer during  the  entire period from October  1, 2005 through  September 30, 2010.

 

Except  as expressly provided  in this paragraph (a) or in paragraph (b) below,  the Separation from Service  of a Participant from  the Company and Related  Employers before  the vesting  date will result in a forfeiture  of all of the balances  in a Participant's Employer Contribution Accounts  that are not then vested.

  

183

  

 

 

(b)          Special Vesting Rule for Early Retirement.

 

(1)       Notwithstanding  the provisions  of paragraph (a) above, if a Participant's Separation  from Service occurs after his or her Early Retirement Date but before his or her Normal Retirement  Date, then solely  for vesting purposes,  the Participant  shall be treated as if he or she continued employment  with the Company or a Related Employer and will vest 100% with respect to a contribution under the rule described in paragraph (a)(1) above at the end of five consecutive actual or deemed Periods of Credited Service with respect to such contribution.   Such continued vesting, however, shall be subject to and conditioned  upon the Participant not engaging in competition  with the Company or any Related  Employer  during such  five year period.   The Participant  engaging  in any such competition will result in an immediate forfeiture of all of the balances in the Participant's Employer Contribution Accounts that are not then vested.

 

(2)       For purposes of this paragraph (b), a Participant  shall be deemed to have engaged in competition with the Company or a Related Employer if he or she:

 

(i)        discloses  the  list  of  the  Company's  or  a  Related  Employer's customers,  or any part thereof,  to any person,  firm, corporation,  association  or other entity for any reason or purposes whatsoever;

 

(ii)       discloses  to  any  person,  firm,  corporation,  association  or  other entity any information regarding the Company's or a Related Employer's general business practices or procedures, methods of sale, list of products, personnel information  and any other valuable, special information unique to the Company's or a Related Employer's business;

 

 

(iii)      owns,  manages,  operates,  controls,  is  employed  by,  acts  as  an agent for, participates in or is connected in any manner with the ownership, management, operation or control of any business that is engaged in one or more businesses  that are or may be competitive  to the business  of the Company or a Related Employer; provided that this restriction shall encompass (A) the State of Florida, (B) all other states in the United States where the Company or a Related Employer is engaged in business (and every city, county and other political subdivision of such states); and (C) any other countries where the Company or a Related  Employer  is engaged  in business  (and every city, county,  province  and other political subdivision of such countries);

 

(iv)      solicits or calls either for himself or herself, or for any other person or  firm,  corporation,  association  or  other  entity,  any  of  the  customers  of  the Company or a Related Employer on whom the Participant called, with whom the Participant became acquainted, or of whom the Participant learned during his employment; or

  

184

  

 

 

               (v)       solicits  any of  the  employees or  agents of  the  Company or  a Related Employer to terminate his or her employment or relationship with the Company or a Related Employer.

 

(3)       It is  the  intention  of  the  Company  and  the  Related  Employers that paragraph (b)(2) be given the broadest protection allowed by law with regard to the restrictions contained herein.  Each restriction set forth in paragraph (b)(2) shall be construed as a condition separate and apart from each other restriction or condition.  To the extent that any restriction contained in paragraph (b)(2) is determined by any court of competent jurisdiction to be unenforceable by reason of it being extended for too great a period of time, or as encompassing too large of a geographic area, or over too great a range of activity, or any combination of these elements, then such restriction shall be interpreted to extend only over the maximum period of time, geographic area, and range of activities that the court deems reasonable and enforceable.

 

(c)         Payment Date.  Except as provided in paragraphs (d) and (e) below, payments due with respect to any contribution shall be made in cash in a lump sum on the first to occur of the following dates:

 

(1)       in  December  immediately  following the  end  of  the  five  consecutive Periods of Credited Service with respect to such contribution (including under the special deemed credited service provisions set forth in section (b) above);

 

(2)       as soon as practicable after the Participant's Separation from Service by reason of death or Disability; or

 

(3)       in December immediately following the end of the Period of Credited Service in which the Participant incurred a Separation from Service following attainment of his or her Normal Retirement Age.

 

	
  

	
Notwithstanding the foregoing, payments due with respect to an Account that is 100% vested in accordance with the special grandfather rule contained at the end of the first paragraph of Article V (a) shall be paid in cash in a lump sum in December immediately following the end of the Period of Service in which the Participant incurred a Separation from Service.

  

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(d)          One Time Right to Defer.  Notwithstanding the provisions of paragraph (c) above:

 

          (1)        A Participant shall have the right to defer the payment of any Employer · Contribution Account balance otherwise payable under paragraph (c)(1) or (c)(3) above until a later date.  Any such election to defer may be made only once with respect to any Plan Year balance, may not take effect until at least twelve (12) months after the date on which such election is made, must be made no later than September 30 of the calendar year prior to the calendar year in which the normal vesting date with respect to such Plan Year balance would occur under paragraph (a)(1) above (or, if paragraph (b) above is applicable, no later than the date which is the earlier of (i) the date of the Participant's Separation from Service occurring after his or her Early Retirement Date but before his or her  Normal  Retirement  Date  or  (ii)  September  30  of  the  calendar  year  prior  to  the calendar  year in which the normal vesting date with respect to such Plan Year balance would occur under paragraph (b) above), and must establish  a beginning  payment date that is at least five (5) years after the date that payment would have otherwise been made under paragraph (c)(l) or (c)(3) above absent the deferral election.

 

 

           (2)       As  a  general  rule,  the  deferral  election  shall  not  affect  the  form  of payment,  which  shall  be  in  cash  in  a lump  sum.    However,  if  the  date  selected  for payment is a date after the Participant's  Early Retirement  Date or Normal  Retirement Date,  then  at the  same  time  as the election  to defer  is made  under  the provisions  of paragraph  (d)(l)  above,  the  Participant   may   elect  to  have  the  payment  made  in substantially equal annual installments over a specified period oftime that is not less than three (3) years and not more than fifteen (15) years, with the first installment being paid on the date selected (which date must comply with the requirements of paragraph (d)(l) above) and each subsequent installment being made on the same date in each succeeding year.

 

 

          (3)       Notwithstanding  the foregoing, in the event that the Participant has begun receiving installment  payments and then incurs a Separation  from Service by reason of death  or  Disability,  the  installment  payments  shall  be  terminated  and  the  remaining balance  shall  be  paid  in  a  lump  sum  as  soon  as  practicable  after  the  Participant's Separation from Service by reason of death or Disability.

 

         (e)        Required Payment Deferral.  Notwithstanding  anything  in  this  Plan  to  the contrary, in the event that a payment is scheduled to be made to a Specified Employee as a result of such Participant's  Separation  from Service (other than by reason of death), then no payment may be made to such Participant during the six (6) month period immediately following the date of the  Participant's   Separation  from  Service.    In the event  any payment  is delayed  under  the provisions of this paragraph (e), then all amounts that the Participant  would otherwise have been entitled  to during  the six-month  period  shall be accumulated  and paid  on the first day of the seventh month following the date of the Participant's  Separation from Service.

 

         (f)         As Soon As Is Practicable. For purposes of this Article V, whenever payment is to be made "as soon as practicable" following a specified event, such payment shall be made in all events during the period beginning on the date of the specified event and ending no later than the later of (1) the end of the taxable year of the Participant  in which the event occurs or (2) ninety (90)  days  after  the date  of the  event,  provided,  that  the  Participant  does  not  have  a right  to designate the taxable year of the payment.

  

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                                        ARTICLE VI

                  Amendment and Termination

 

 

   (a)           In General.

 

(1)           The  Plan may be  amended  at any time,  and from  time  to time, by the Committee or by any officer of the Company authorrized by the Committee. 

 

 

(2)    The Plan may be terminated at any time by the Committee.

 

         (b)         Effect of Amendment or Termination.  No amendment  or termination  of the Plan, without  the consent  of the affected Participant,  shall materially  and adversely  affect the rights  of  any  Participant  with  respect  to  any  contribution  credited  to  the  Account(s)  of  a Participant   prior  to  such  amendment   or  termination.     Notwithstanding   the  foregoing,  the Committee reserves the right to amend this Plan, without the consent of any Participant, in order to conform the Plan to the provisions of Code Section 409A.

              ARTICLE VII 

                     Miscellaneous

 

(a)         Payments to  Incompetents. If  the  Plan  Administrator  receives  satisfactory evidence  that a person who is entitled to receive any benefit under the Plan, at the time such benefit becomes available, is physically unable, mentally incompetent, or not otherwise legally competent to receive such benefit and to give a valid release therefore, and that another person or an institution is then maintaining or has custody of such person, and that no guardian or other representatives   of  the  estate  of  such  person  shall  have  been  duly  appointed,   the  Plan Administrator may authorize payment of such benefit otherwise payable to such person or institution;  and  the  release  of  such  other  person  or  institution  shall  be  valid  and  complete discharge for the payment of such benefit.

 

(b)         Plan  Not  a  Contract  of  Employment.  The  Plan  shall  not  be  deemed  to constitute a contract between the Company or a Related Employer and any Participant, nor to be consideration for the employment of any Participant.  Nothing in the Plan shall give a Participant the right to be retained  in the employ of the Company or a Related Employer; all Participants shall remain subject to discharge or discipline as employees to the same extent as if the Plan had not been adopted.

 

(c)         No Interest in Assets.  Nothing contained in the Plan shall be deemed to give any Participant  any equity  or other interest  in the assets, business  or affairs of the Company  or a Related Employer.   No Participant  in the Plan shall have any security or other legal interest in assets of the Company or a Related Employer used to make contributions or pay benefits.

 

  

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      (d)         Non-Alienation of Benefits.  No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void.  No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person.   If any person entitled to benefits under the Plan shall become bankrupt or shall attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt shall be made to subject any such benefit to the debts, contracts, liabilities, engagements or torts of the person entitled to any such benefit, except as specifically provided in the Plan, then such benefits shall cease and terminate at the discretion of the Plan Administrator.   The Plan Administrator may then hold or apply the same or any part thereof to or for the benefit of such person or any dependent or beneficiary of such person in such manner and proportions as it shall deem proper.

 

   (e)          Governing  Law.   This Plan shall be governed by and construed in accordance with the substantive laws of the State of Florida, without regard to any conflict of law principles.

 

 

       (f)         Corporate Successors.  The Plan shall automatically terminate upon the sale or other transfer of substantially all of the assets of the Company, by the merger of the Company into any other corporation or other entity, or by the consolidation of the Company with any other corporation or other entity unless the transferee, purchaser or successor entity expressly agrees to continue the Plan.   No such termination shall automatically result in the immediate or other accelerated payment of amounts previously deferred under this Plan.

 

  (g)          Liability Limited.

 

      (1)       Notwithstanding any of the preceding provisions of the Plan, neither the Company nor a Related Employer, nor any individual acting as an employee or agent of the Company or Related Employer, shall be liable to any Participant, former Participant or other person for any claim, loss, liability or expense incurred in connection with the Plan.

 

          (2)      The Plan Administrator, and its officers, directors and employees, shall be entitled to rely conclusively on all tables, valuations, certificates, opinions and reports furnished by any actuary, accountant, trustee, insurance company, consultant or other expert who shall be employed or engaged by the Plan Administrator in good faith.

IN WITNESS WHEREOF, the Company has caused this Amendment and Restatement to be executed by its duly authorized officer on this 31st day of December, 2007.

	  	
RAYMOND JAMES FINANCIAL, INC.

 

 

By:           /s/ Jeffrey P. Julien                                                      

Its:           Chief Financial Officer                                                     

	  	
"COMPANY"

 

  

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