Document:

a6720551_ex101.htm

Exhibit 10.1

Valpey-Fisher Corporation Key Employee Bonus Plan For

Fiscal Year 2011

 

Purpose of Plan

To provide an incentive to those employees who have a major impact on the success, growth and profitability of the company.

Eligibility

Must be a full time employee and be in continued employment of the Company for the entire fiscal year, unless a waiver of this provision is approved in advance of hiring by the Compensation Committee.

Participants

The plan participants will include the CEO and the Management Staff.

Bonus Pool

The 2011 bonus pool is based on achieving certain new orders and sales amounts and a targeted gross profit percentage and will be calculated based on the adjusted operating profit amounts listed below.  Adjusted operating profit is defined as operating profit before key employee bonus plan, stock-based compensation and 401K match expenses.

 

	 	
Adjusted Operating Profit

	  	
Cumulative Bonus Amount

	 
	 	  	  	  	 
	 	
   850,000

	  	
136,000

	 
	 	
   900,000

	  	
162,000

	 
	 	
   950,000

	  	
190,000

	 
	 	
1,000,000

	  	
220,000

	 
	 	
1,100,000

	  	
264,000

	 
	 	
1,250,000

	  	
325,000

	 

For adjusted operating profit amounts between the listed amounts, the bonus amount will be prorated.

For adjusted operating profit in excess of $1,250,000 the Board of Directors will determine the bonus amount.

The bonus amount may include a profit sharing contribution for the year ended December 31, 2011 as determined by the Board of Directors and would be limited to a maximum of 10% of the total bonus payout.  The CEO may also reserve up to 10% of the bonus amount for awards to employees who provided critical support for the growth and or operating performance of the Company and were not included in the management staff category

Bonus Payout

Each plan participant will have individual objectives based on their particular area of responsibilities.  An individual objective can make up to 50% of the individual’s bonus.  The CEO will decide the weights of the individual objective as part of the total payout.   In the case of the CEO the Compensation Committee will decide.

A plan participant’s bonus amount will range from 0% to 100% of base salary.

The Compensation Committee will recommend the bonus payout amount for the CEO to the Board of Directors for its approval. The CEO will recommend the distribution payout for the remaining participants, which will then be reviewed by the Compensation Committee before making recommendations to the Board of Directors for its approval.a6724004ex10-17.htm

Exhibit 10.17

 

ACCESSION AGREEMENT

 

Dated as of May 13, 2011

 

Reference is made to that certain Credit Agreement dated as of April 29, 2011 (as amended to date and as otherwise amended, amended and restated, supplemented or modified from time to time, the “Credit Agreement”; capitalized terms not otherwise defined herein shall have their respective meanings set forth in the Credit Agreement), by and between Summit Hotel OP, LP (“Borrower”), Summit Hotel Properties, Inc., the Subsidiary Guarantors party thereto, Deutsche Bank AG New York Branch, as administrative agent for the Lender Parties (in such capacity, “Administrative Agent”), the Lender Parties identified therein and the Arranger party thereto.  Each of the Administrative Agent, Borrower and U.S. Bank National Association, (“US Bank”) desires that US Bank become a Lender pursuant to the terms and conditions set forth below.

 

US Bank (in its capacity as a Lender Party, the “Acceding Lender”) agrees as follows:

 

1.           US Bank proposes to become an Acceding Lender pursuant to Section 2.17 of the Credit Agreement having a Revolving Credit Commitment of $20,000,000, and hereby agrees with the Administrative Agent and the Borrowers that it shall become a Lender for all purposes of the Credit Agreement on the Effective Date (as defined below).

 

2.           Acceding Lender (a) represents and warrants that it is legally authorized to enter into this Accession Agreement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Section 4.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Accession Agreement; (c) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender Party and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (d) confirms that it qualifies as an Eligible Assignee; (e) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; (f) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Credit Agreement are required to be performed by it as a Lender Party; (g) specifies as its Applicable Lending Offices the offices set forth on Exhibit A; and (h) attaches on Exhibit B any U.S. Internal Revenue Service forms required under Section 2.12 of the Credit Agreement.

 

3.           Following the execution of this Accession Agreement, it will be delivered to the Administrative Agent for acceptance and recording by the Administrative Agent in the Register.  The effective date for this Accession Agreement (the “Effective Date”) shall be the date first set forth above, which date shall constitute the Increase Date for purposes of Section 2.17 of the Credit Agreement.

 

4.           Upon satisfaction of the applicable conditions set forth in Section 2.17 of the Credit Agreement and upon such acceptance and recording by the Administrative Agent, as of the Effective Date, the Acceding Lender (i) shall be a party to the Credit Agreement, (ii) shall have all of the rights and obligations of a Lender under the Credit Agreement and (iii) shall have a Revolving Credit Commitment of $20,000,000.

 

5.           This Accession Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

  

  

  

 

6.           This Accession Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Accession Agreement by telecopier or e-mail (which e-mail shall include an attachment in .PDF or similar electronic format containing the legible signature of the person executing this Accession Agreement) shall be effective as delivery of an original executed counterpart of this Accession Agreement.

 

[Balance of page intentionally left blank]

 

  

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IN WITNESS WHEREOF, each of the undersigned has caused this Accession Agreement to be executed by its officers thereunto duly authorized as of the Effective Date.

 

	 	 
ACCEDING LENDER:

	 
	 	 	 
	 	 
U.S. BANK NATIONAL ASSOCIATION

	 
	 	 	 	 
	
 

	
By: 

	/s/ Scott C. DeJong	 
	 	 	Name: Scott C. DeJong	 
	 	 	Title:  Vice President	 
	 	 	 	 

 

 

 

[Signatures continued on next page]

 

 

Accession Agreement

  

S-1

  

 

Accepted and Approved as of May 13, 2011:

ADMINISTRATIVE AGENT:

DEUTSCHE BANK AG NEW YORK BRANCH,

as Administrative Agent

 

By           /s/ George R. Reynolds                                              

Name:  George R. Reynolds

Title:  Director

By           /s/ James Rolison                                   

Name:  James Rolison

Title:  Managing Director

BORROWER:

SUMMIT HOTEL OP, LP,

a Delaware limited partnership

By:      SUMMIT HOTEL GP, LLC,

a Delaware limited liability company,

its general partner

By:      SUMMIT HOTEL PROPERTIES, INC.,

a Maryland corporation,

its sole member

By:       /s/ Christopher Eng                                   

Name:  Christopher Eng

Title:    Secretary

 

 

Accession Agreement

  

S-2

  

 

EXHIBIT A

Acceding Lender Applicable Lending Offices:

400 City Center

Oshkosh, WI 54903

Phone:  920-237-7370

Fax:  920-237-7769

Email:  Complex_credits_oshkosh@usbank.com

Attn:  Barb Campbell – Work Coordinator

  

A-1

  

EXHIBIT B

None.

 

 

 

 

B-1a6723952_ex1010.htm

Exhibit 10.10

 

FOUR OAKS FINCORP, INC.

THIRD AMENDED AND RESTATED

DIVIDEND REINVESTMENT AND

STOCK PURCHASE PLAN

1.             PURPOSE

The purpose of the Plan is to provide the shareholders of record of the Company’s Common Stock with a simple and convenient method of investing cash dividends and optional cash payment in shares of Common Stock. To the extent that new shares of Common Stock will be purchased from the Company, the Company will receive additional funds to finance the continuing operations of the Company.

2.             FEATURES

 

Participants in the Plan:

	
●  

	
Will have cash dividends on their shares of Common Stock automatically reinvested in additional shares of Common Stock;

	
●  

	
May elect to make optional cash payments from $20.00 to $2,500.00 per quarter for additional Common Stock purchases;

	
●  

	
Will receive full investment use of funds because the Plan provides for crediting of fractional shares (calculated to four decimal places) and reinvestment in additional shares;

	
●  

	
Will pay no accountant fees for the reinvestment of dividends or optional cash payments;

	
●  

	
Will receive quarterly statements from the Agent reflecting total dividends and optional cash payments, the price paid for shares purchased, and the total shares held in the participant’s account; and

	
●  

	
Will enjoy safekeeping of shares purchased pursuant to the Plan, including protection against loss, theft, or inadvertent destruction of certificates.

 

  

  

  

 

3.             ADMINISTRATION

Registrar and Transfer Company will administer the Plan and serve as agent (the “Agent”) for Plan participants. The Agent keeps records, sends statements of account to each participant, and performs other duties related to the Plan.  Shares purchased under the Plan are registered in the name of the Agent or in the name of its nominee, and credited to the accounts of the participants in the Plan. Questions and communications regarding the Plan should include your account number and should be directed to:

Registrar and Transfer Company

10 Commerce Drive, Cranford, New Jersey  07016

Telephone:  1-800-368-5948; 1-908-497-2300

4.             PARTICIPATION

A.           ELIGIBILITY

Any holder of record of the Company’s Common Stock is eligible to participate in the Plan at any time. Beneficial owners of shares of Common Stock whose shares are registered in names other than their own (for example, in the name of a broker, bank, or other nominee) and who wish to participate in the Plan must become owners of record by having the number of shares they wish to enroll in the Plan transferred into their names. Tentatively, they must make arrangements for the nominees or other holders of record to participate in the Plan on behalf of such beneficial owners.

B.           ENROLLMENT IN THE PLAN

An eligible shareholder may join the Plan at any time by completing an Authorization Card and returning it to the Agent at the above address. Authorization Cards may be obtained at any time by contacting the Agent.

For new enrollees, participation will commence with the next dividend payable after receipt of authorization provided it is received by the Agent by the fifth business day prior to the record date for the dividend. If an Authorization Card is received after the fifth business day prior to the record date established for a particular dividend, the reinvestment of dividends under the Plan will begin with the next succeeding dividend. The Company expects to set quarterly dividend and record payment dates for Common Stock on or about the following dates:

	
Approximate Record Date

	
Approximate Payment Date

	
February 27

	
March 9

	
May 29

	
June 8

	
August 31

	
September 8

	
November 28

	
December 8

 

To participate in the optional cash payment feature, a personal check drawn on a U.S. bank and made payable to Registrar and Transfer Company should be sent together with the payment form which is attached to the quarterly statement participants receive after their initial dividend has been invested. Cash payments can only be made for participants who have had at least one dividend reinvested pursuant to the Plan.

  

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Shareholders enrolled in the Plan will remain enrolled unless they terminate their participation by giving written notice to the Agent as described below.

5.             NUMBER OF SHARES SUBJECT TO THE PLAN

Shareholders of record may participate in the Plan with respect to all or any portion of the shares of Common Stock registered in their name. If a shareholder wishes to participate in the Plan with less than all of such shareholder’s shares, the shareholder must notify the Agent in writing to that effect. Otherwise, it will be assumed that the shareholder intends to participate in the Plan with respect to all shares owned. Also, if a participant wishes to change the number of shares of Common Stock subject to the Plan, the participant must notify the Agent in writing to that effect. Any such notification received by the Agent after the fifth business day prior to a dividend payment date will not be effective until the next quarter.

6.             COSTS

The Agent will provide the service of reinvesting a participant’s dividends paid on the Company’s Common Stock or optional cash payments at no cost to the shareholder. No administrative costs of the Plan will be paid by the Company. No brokerage commissions or fees will be charged for purchases of shares made under the Plan by the Agent directly from the Company out of authorized but issued shares of the Company. The Company presently intends to bear the costs of brokerage commissions or fees incurred as a result of any purchases made under the Plan on the open market. The Company may change or eliminate this policy entirely upon written notice to participants. The reinvestment of dividends does not relieve the participant of any income tax that may be payable on the dividends or on any brokerage commissions or fees paid by the Company.

7.             PURCHASES UNDER THE PLAN

A.           METHOD OF PURCHASE

The Agent automatically will receive the full amount of dividends paid on both the shares held by participants and any additional full or fractional shares acquired under the Plan, as well as any optional cash payments made by participants. The Agent will use these funds to purchase shares of the Company’s Common Stock for Plan participants from the Company’s authorized but unissued shares. Purchases also may be made on any securities exchange where such shares are traded, in the over-the-counter market, or in negotiated transactions.

 

B.           NUMBER OF SHARES PURCHASED

The number of shares purchased under the Plan for each participant will depend on the amount of dividends reinvested and optional cash payments made to the participant’s account and the purchase price of the Common Stock. Therefore, each participant’s account will be credited with the number of shares, including a fractional share computed to four decimal places, equal to the total amount invested under the Plan by the participant (dividends and optional cash payment), divided by the applicable purchase price per share of the Common Stock.

  

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C.           TIMING OF PURCHASES

The Agent will purchase shares as soon as practicable after cash dividends are paid in the quarters when such payments are made. In other quarters, the Agent generally will purchase shares on the first business day of the quarter. Purchases will include dividends to be reinvested and optional cash payments as of the date of purchase, as applicable. The Agent will use every reasonable effort to reinvest all dividends promptly after receipt and in no event later than 30 days after receipt unless such investments are restricted by any applicable state or federal securities laws.

No interest will be paid on dividends or optional cash payments pending reinvestment for any reason the Agent is precluded from acquiring shares for 90 consecutive days, the Agent will promptly remit all cash dividends and optional cash payments held in the participant’s Plan account to the participant after such 90th day.

D.           PURCHASE PRICE

The purchase price of original issue shares of Common Stock purchased directly from the Company will be determined once each quarter by the Board of Directors of the Company based on an annual appraisal and trading activity. The appraisal will be conducted by an  independent appraisal firm selected by the Board of Directors. The purchase price for the first quarter shall be based on the first such appraisal. Each quarter thereafter, the Board of Directors of the Company shall set the purchase price based on a review of the most recent annual appraisal and trading activity during the preceding quarter. No brokerage commissions or fees will be charged for purchases made through the Plan directly from the Company. Shares purchased on the open market under the Plan will be purchased at the price per share payable to the broker-dealer(s) involved. The Company presently intends to bear any brokerage commission or fees incurred in connection with open market purchases.

8.             OPTIONAL CASH PAYMENTS

A.           METHOD OF PAYMENTS

Once a participant has received the first Dividend Reinvestment Statement (described below) for dividends reinvested, the participant may elect to make optional cash payments to his account for additional Common Stock purchases. Each optional cash payment must be accompanied by a payment form, which is furnished by the Agent with each Dividend Reinvestment Statement. The Agent will commingle all optional cash payments credited to a participant’s account with cash dividends and optional cash payment credited to all accounts under the Plan and all such funds will be applied to the purchase of Common Stock as provided above. Optional cash payments received by the fifth business day before a dividend payment date will be combined with cash dividends and invested by the Agent at the time cash dividends are reinvested and in any event will be invested with funds received by the fifth business day before purchases are made in other quarters, as provided above. Any optional cash payments received by the Agent more than 30 days prior to a dividend payment date will be returned to the shareholder.

  

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The Agent will hold the participant’s optional cash payments in non-interest bearing accounts. No interest will be paid on any optional cash payment for the period following receipt by the Agent but prior to investment.  Participants are encouraged to transmit optional cash payments so as to be received by the Agent as close as possible to the fifth day prior to a dividend payment date to avoid unnecessary accumulations of funds.

A participant may obtain a refund of his or her uninvested optional cash payment upon written request to the Agent received not less than two business days prior to the investment of such payment.

A participant is under no obligation to make an optional cash payment in any quarter, and the same amount of money does not need to be sent each quarter.

B.           LIMITATIONS

Any optional cash payment must not be less than $20.00, and payments may not exceed $2,500.00 per quarter in the aggregate for any participant or for each beneficial owner on whose behalf a participant may be investing.  Only one optional cash payment may be made in each quarter by any participant, or by each beneficial owner on whose behalf a participant may be investing, and optional cash payments are only invested quarterly, as provided above. The Company may change the minimum and maximum allowable optional cash payment amount or eliminate cash payments entirely upon written notice to participants.

Participants may not draw checks or drafts against their Plan accounts in respect of any shares or cash held therein and may not sell, assign, or transfer their account.

9.             CERTIFICATES FOR SHARES

Normally, certificates for shares of Common Stock purchased under the Plan will not be issued directly to participants. Shares will be held by or through the Agent, providing protection against loss, theft, or inadvertent destruction. The number of shares credited to a participant’s account will be shown on the next statement of account sent to the participant. The participant, however, may obtain from the Agent certificates for full shares upon receipt by the Agent of a written request from the participant. Any request for issuance of a certificate received by the Agent less than five days prior to the record date for a dividend payment shall become effective only after dividends paid for such record date have been reinvested. Also, the Agent generally processes requests for certificates only once each month on or about the l5th day of each month. No certificate will be issued for a fractional share, although dividends on a fractional interest in a share will be credited to the participant’s account.

  

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10.            REPORTS TO PARTICIPANTS

As soon as practicable after the end of each quarterly period, the Agent will send a statement of account (the “Dividend Reinvestment Statement”) to the participant. The Dividend Reinvestment Statement will include information regarding each purchase and other information regarding the status of the participant’s account as of the date of such statement. The Dividend Reinvestment Statements will provide a record of the cost basis of shares purchased under the Plan and should be retained for tax purposes.

11.           WITHDRAWALS OF SHARES PURCHASED UNDER THE PLAN

A participant may withdraw all or any portion of the full shares of Common Stock held in the participant’s account under the Plan for a fee of $10.00 by notifying the Agent in writing to that effect. Upon notification and payment, a certificate for the full shares withdrawn will be issued in the name of the participant and mailed to him. No certificate will be issued for a fractional share interest.

Withdrawals of some or all of the full shares in a participant’s account will not terminate the participant’s enrollment in the Plan

12.           TERMINATION OF PARTICIPATION

A participant may terminate his account by notifying the Agent in writing to that effect. Any notice of termination received by the Agent less than five days prior to the record date for a dividend payment shall become effective only after dividends paid for such record date have been reinvested. Upon termination, the Agent will issue to the participant a certificate for the number of full shares of Common Stock and a check for any fractional share in the participant’s account. The Agent generally issues such certificates and checks only once each month, on or about the 15th day of each month.

13.           OTHER FEATURES

A.           STOCK SPLITS, STOCK DIVIDENDS, AND RIGHTS OFFERINGS

Stock splits or stock dividends on shares held in a participant’s account will be credited to the account based on the number of shares (including fractional share interests) held in the account on the record date for such dividend or split. The Agent will report the amount of dividends received on shares or fractional shares held in each account.

In the event the Company offers rights or warrants to purchase additional shares of Common Stock or other securities to the holders of Common Stock, such rights or warrants will be made available to participants based on the number of shares, including fractional share interests to the Common Stock entitled to such rights or warrants.

  

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 B.            VOTING OF SHARES PURCHASED UNDER THE PLAN

All full and fractional shares credited to a participant’s account under the Plan will be added to the shares registered in the participant’s name on the shareholder records of the Company. The participant will receive one proxy covering the total of such shares, which proxy shall be voted as the participant directs; or, if the participant so elects, the participant may vote all of such shares in person at the shareholders’ meeting.

14.           FEDERAL INCOME TAX CONSEQUENCES

Dividends and other distributions by the Company to shareholders generally will be taxed as ordinary dividend income. Participants who acquire additional shares of Common Stock through the Plan directly from the Company with reinvested cash dividends will be treated for federal income tax purposes as having received a taxable stock distribution. As a result, an amount equal to the fair market value on the investment date of the shares acquired directly from the Company with reinvested cash dividends will be treated as a dividend paid to participants. The tax basis of the shares acquired directly from the Company with such reinvested dividends also will equal the fair market value of the shares on the investment date.

Participants who acquire additional shares of Common Stock through the Plan through open market purchases made with reinvested cash dividends will be deemed to have received a taxable dividend equal to the amount of the cash dividend reinvested plus the amount of any brokerage fees paid by the Company with respect to such additional shares. The participant’s tax basis in these shares acquired on the open market will equal the purchase price of the shares plus any brokerage fees paid with respect to the shares.

Participants in the Plan will not realize any taxable income at the time of investment of optional cash payments in additional shares of Common Stock acquired directly from the Company. The tax basis of shares purchased directly from the Company with an optional cash payment will be the fair market value of the shares on the investment date.

Participants who acquire additional shares of Common Stock through open market purchases made with optional cash payments will be treated as receiving a cash dividend equal to the amount of any brokerage fees paid by the Company with respect to such shares. The tax basis of shares purchased on the open market with an optional cash payment will equal the purchase price of the shares, plus any brokerage fees paid by the Company with respect to such shares.

The holding period of shares of Common Stock acquired through the Plan, whether purchased with reinvested dividends or optional cash payments, will begin on the day following the investment date.

Participants in the Plan will not realize any taxable income when they receive certificates for full shares credited to their accounts, whether upon their written requests for such certificates, upon full shares credited to their account, or upon withdrawal from or termination of participation in the Plan. Participants, however, will realize taxable gain or loss (which for most participants, will be capital gain or loss) when full shares acquired under the Plan are sold or exchanged by the participant and when participants receive a cash payment for a fractional share credited to their account. The amount of such gain or loss will be the difference between the amount that the participant receives for his shares or fractional share (net of brokerage commissions and other costs of sale) and the tax basis thereof.

  

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For foreign participants who elect to have their cash dividends reinvested and whose dividends are subject to United States income tax withholding, and any other participant for whom federal income tax withholding on dividends is required, an amount equal to the cash dividends payable to such participants, less the amount of tax required to be withheld, will be applied to the purchase of Common Stock through the Plan.

The foregoing is intended only as a general discussion of the current federal income tax consequences of participation in the Plan. It does not include a discussion of state and local income tax consequences of participation in the Plan. For specific information on the tax consequences of participation in the Plan, including any future changes in applicable law or interpretation thereof, participants should consult their own tax advisors.

15.           CHANGE AND TERMINATION OF THE PLAN; INTERPRETATION OF THE PLAN

The Company reserves the right to change, suspend, or terminate the Plan at any time. Participants shall be notified of any such change, suspension, or termination. Any question of interpretation arising under the Plan will be determined by the Company. The Plan and all transactions in connection with the Plan will be governed by and construed in accordance with the laws of the State of North Carolina.

This Third Amended and Restated Plan was adopted by the Board of Directors of Four Oaks Fincorp, Inc. effective as of August 27, 2008.

 

	 	/s/ Wanda J. Blow                       
	 	    Wanda J. Blow 
	 	    Secretary

 

 

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