Document:

EXHIBIT 10.1

 

FORM OF RESTRICTED STOCK AGREEMENT

 

This Restricted Stock Agreement (“Agreement”), is made as of              (the “Grant Date”), by and between Hansen Natural Corporation, a Delaware corporation (the “Company”), and              (“Participant”).

 

Preliminary Recitals

 

A.        Participant is an employee of the Company or its Subsidiaries.

 

B.         Pursuant to the Hansen Natural Corporation 2011 Omnibus Incentive Plan (the “Plan”), the Company desires to grant Participant Shares of Restricted Stock subject to the terms and conditions of the Plan and subject further to the terms and conditions set forth below.

 

C.        Capitalized terms not otherwise defined in this Agreement shall have the meaning given to them in the Plan.

 

NOW, THEREFORE, the Company and Participant agree as follows:

 

1.         Grant of Restricted Stock.  The Company hereby grants to the Participant, subject to the terms and conditions set forth herein and in the Plan,              Shares of Restricted Stock.  The Restricted Period (as such term is described in Section 2 below) for the Shares of Restricted Stock shall lapse and the Restricted Stock shall become nonforfeitable in accordance with Section 2 hereof.

 

2.         Restricted Period.  Subject to the Participant’s continued employment with the Company or its Subsidiaries, the Restricted Period with respect to the Shares of Restricted Stock shall lapse with respect to the number of Shares of Restricted Stock listed in column A from and after the Lapse Date listed in column B,

 

	
Column   “A”
    	
Column “B”
    
	
 
    	
 
    
	
Number of Shares   of Restricted Stock
    	
Lapse Date
    

 

 

3.         Termination of Employment.  In the event that the Participant’s employment terminates for any reason, the Shares of Restricted Stock, to the extent that the applicable Restricted Period has not lapsed, shall be forfeited without the payment of consideration.

 

4.         Nontransferability.  Except as permitted by the Plan, prior to the lapse of the Restricted Period, the Shares of Restricted Stock shall not be transferable other than by will or by the laws of descent and distribution.

 

5.         Adjustments.  Subject to Section 12.2 of the Plan, in the event of any change in the outstanding Shares after the Grant Date by reason of any Share dividend or split, reorganization, recapitalization, merger, consolidation, spin-off, combination, combination or transaction or exchange of Shares or other corporate exchange, or any distribution to shareholders of Shares other than regular cash dividends or any transaction similar to the foregoing, the Committee in its sole discretion and without liability to any person shall make such substitution or adjustment, if any, as it deems to be equitable, as to the number and/or kinds of shares or other securities subject to this Agreement, if any.  Any adjustment under this clause 6 shall be made by the Committee, whose determination as to what adjustments shall be made, if any, and the extent thereof, will be final, binding and conclusive.  No fractional Shares of Restricted Stock will be issued under this Agreement resulting from any such adjustment.

 

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6.         Rights as a Stockholder.  The Participant shall have the right to vote the Shares of Restricted Stock for which the Restricted Period has not lapsed.  All distributions or other payments, if any, received by the Participant with respect to the Shares of Restricted Stock, including, without limitation, as a result of any merger, sale, dividend, stock split, stock distribution, a combination of shares, or other similar transactions shall be subject to the restrictions set forth in this Agreement.

 

7.         No Right to Continue Employment.  This Agreement shall not confer upon Participant any right with respect to continuance of employment with the Company or its Subsidiaries nor shall it interfere in any way with the right of the Company or its Subsidiaries to terminate the Participant’s employment at any time.

 

8.         Compliance With Law and Regulation.  This Agreement and the obligation of the Company hereunder shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.

 

9.         Notices.  Any notice hereunder to the Company shall be addressed to it at its office at 550 Monica Circle, Suite 201, Corona, California 92880, Attention: Rodney C. Sacks with a copy to Laurence M. Moss, Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022, and any notice hereunder to Participant shall be addressed to him at             , subject to the right of either party to designate at any time hereafter in writing some other address.

 

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10.       Amendment.  No modification, amendment or waiver of any of the provisions of this Agreement shall be effective unless in writing specifically referring hereto, and signed by both parties.

 

11.       Tax Withholding Requirements.  The Company shall have the right to require Participant to remit to the Company an amount sufficient to satisfy any federal, state or local withholding tax requirements related to any payment or benefit under this Agreement and to take such other action as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such withholding taxes.

 

12.       Governing Law.  This Agreement shall be construed according to the laws of the State of Delaware and all provisions hereof shall be administered according to and its validity shall be determined under, the laws of such State, except where preempted by federal laws.

 

13.       Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, Hansen Natural Corporation has caused this Agreement to be executed by a duly authorized officer and Participant has executed this Agreement both as of the day and year first above written.

 

 

	
 
    	
 
    	
HANSEN NATURAL   CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Hilton H. Schlosberg
    

 

-4-Exhibit 10.1

 

UNITED STATES OF AMERICA

BEFORE THE

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

WASHINGTON, D.C.

 

	
Written   Agreement by and between
    	
 
    
	
 
    	
Docket   No. 11-088-WA /RB-HC
    
	
OLD   SECOND BANCORP, INC.
    	
 
    
	
Aurora,   Illinois
    	
 
    
	
 
    	
 
    
	
and
    	
 
    
	
 
    	
 
    
	
FEDERAL   RESERVE BANK OF
    	
 
    
	
CHICAGO
    	
 
    
	
Chicago,   Illinois
    	
 
    

 

WHEREAS, Old Second Bancorp, Inc., Aurora, Illinois (“Old Second”), a registered bank holding company, owns and controls Old Second National Bank, Aurora, Illinois (the “Bank”), and various nonbank subsidiaries; 

 

WHEREAS, it is the common goal of Old Second and the Federal Reserve Bank of Chicago (the “Reserve Bank”) to maintain the financial soundness of Old Second so that Old Second may serve as a source of strength to the Bank; 

 

WHEREAS, Old Second and the Reserve Bank have mutually agreed to enter into this Written Agreement (the “Agreement”); and  

 

WHEREAS, on July 19, 2011, the board of directors of Old Second, at a duly constituted meeting, adopted a resolution authorizing and directing William B. Skoglund to enter into this Agreement on behalf of Old Second, and consenting to compliance with each and every provision of this Agreement by Old Second and its institution-affiliated parties, as defined in 

 

 

sections 3(u) and 8(b)(3) of the Federal Deposit Insurance Act, as amended (the “FDI Act”) (12 U.S.C. §§ 1813(u) and 1818 (b)(3)).

 

NOW, THEREFORE, Old Second and the Reserve Bank agree as follows:

 

Source of Strength

 

1.             The board of directors of Old Second shall take appropriate steps to fully utilize Old Second’s financial and managerial resources, pursuant to section 225.4 (a) of Regulation Y of the Board of Governors of the Federal Reserve System (the “Board of Governors”) (12 C.F.R. §225.4(a)), to serve as a source of strength to the Bank, including, but not limited to, taking steps to ensure that the Bank complies with the Consent Order issued by the Office of the Comptroller of the Currency on May 16, 2011, and any other supervisory action taken by the Bank’s federal regulator.

 

Dividends and Distributions

 

2.             (a)           Old Second shall not declare or pay any dividends without the prior written approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation (the “Director”) of the Board of Governors.

 

(b)           Old Second shall not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without the prior written approval of the Reserve Bank.

 

(c)           Old Second and its nonbank subsidiaries shall not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Director.

 

(d)           All requests for prior approval shall be received by the Reserve Bank at least 30 days prior to the proposed dividend declaration date, proposed distribution on

 

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subordinated debentures, and required notice of deferral on trust preferred securities. All requests shall contain, at a minimum, current and projected information on Old Second’s capital, earnings, and cash flow; the Bank’s capital, asset quality, earnings, and allowance for loan and lease losses; and identification of the sources of funds for the proposed payment or distribution. For requests to declare or pay dividends, Old Second must also demonstrate that the requested declaration or payment of dividends is consistent with the Board of Governors’ Policy Statement on the Payment of Cash Dividends by State Member Banks and Bank Holding Companies, dated November 14, 1985 (Federal Reserve Regulatory Service, 4-877 at page 4-323).

 

Debt and Stock Redemption

 

3.             (a)           Old Second and its nonbank subsidiaries shall not, directly or indirectly, incur, increase, or guarantee any debt without the prior written approval of the Reserve Bank. All requests for prior written approval shall contain, but not be limited to, a statement regarding the purpose of the debt, the terms of the debt, and the planned source(s) for debt repayment, and an analysis of the cash flow resources available to meet such debt repayment.

 

(b)           Old Second shall not, directly or indirectly, purchase or redeem any shares of its stock without the prior written approval of the Reserve Bank.

 

Capital Plan

 

4.             Within 60 days of this Agreement, Old Second shall submit to the Reserve Bank an acceptable written plan to maintain sufficient capital at Old Second on a consolidated basis. The plan shall, at a minimum, address, consider, and include:

 

(a)           The consolidated organization’s and the Bank’s current and future capital requirements, including compliance with the Capital Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure and Tier 1 Leverage Measure, Appendices A and D of

 

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Regulation Y of the Board of Governors (12 C.F.R. Part 225, App. A and D) and the applicable capital adequacy guidelines for the Bank issued by the Bank’s federal regulator;

 

(b)           the adequacy of the Bank’s capital, taking into account the volume of classified credits, concentrations of credit, allowance for loan and lease losses, current and projected asset growth, and projected retained earnings;

 

(c)           the source and timing of additional funds necessary to fulfill the consolidated organization’s and the Bank’s future capital requirements;

 

(d)           supervisory requests for additional capital at the Bank or the requirements of any supervisory action imposed on the Bank by its federal regulator; and

 

(e)           the requirements of section 225.4(a) of Regulation Y of the Board of Governors that Old Second serve as a source of strength to the Bank.

 

5.             Old Second shall notify the Reserve Bank, in writing, no more than 45 days after the end of any quarter in which any of Old Second’s capital ratios fall below the approved plan’s minimum ratios. Together with the notification, Old Second shall submit an acceptable written plan that details the steps that Old Second will take to increase Old Second’s capital ratios to or above the approved plan’s minimums.

 

Cash Flow Projections

 

6.             Within 60 days of this Agreement, Old Second shall submit to the Reserve Bank a written statement of its planned sources and uses of cash for debt service, operating expenses, and other purposes (“Cash Flow Projection”) for the remainder of 2011. Old Second shall submit to the Reserve Bank a Cash Flow Projection for each calendar year subsequent to 2011 at least one month prior to the beginning of that calendar year.

 

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Compliance with Laws and Regulations

 

7.             (a)           In appointing any new director or senior executive officer, or changing the responsibilities of any senior executive officer so that the officer would assume a different senior executive officer position, Old Second shall comply with the notice provisions of section 32 of the FDI Act (12 U.S.C. §1831i) and Subpart H of Regulation Y of the Board of Governors (12 C.F.R. §§ 225.71 et seq.).

 

(b)           Old Second shall comply with the restrictions on indemnification and severance payments of section 18 (k) of the FDI Act (12 U.S.C. §1828(k)) and Part 359 of the Federal Deposit Insurance Corporation’s regulations (12 C.F.R. Part 359).

 

Progress Reports

 

8.             Within 45 days after the end of each calendar quarter following the date of this Agreement, the board of directors shall submit to the Reserve Bank written progress reports detailing the form and manner of all actions taken to secure compliance with the provisions of this Agreement and the results thereof, and a parent company only balance sheet, income statement, and, as applicable, report of changes in stockholders’ equity.

 

Approval and Implementation of Plan

 

9.             (a)           Old Second shall submit a written capital plan that is acceptable to the Reserve Bank within the applicable time period set forth in paragraph 4 of this Agreement.

 

(b)           Within 10 days of approval by the Reserve Bank, Old Second shall adopt the approved capital plan. Upon adoption, Old Second shall promptly implement the approved plan, and thereafter fully comply with it.

 

(c)           During the term of this Agreement, the approved capital plan shall not be amended or rescinded without the prior written approval of the Reserve Bank.

 

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Communications

 

10.           All communications regarding this Agreement shall be sent to:

 

	
(a)
    	
Mr.   David A. Ward
    
	
 
    	
Assistant   Vice President
    
	
 
    	
Federal   Reserve Bank of Chicago
    
	
 
    	
230   South LaSalle Street
    
	
 
    	
Chicago,   Illinois 60604-1413
    
	
 
    	
 
    
	
(b)
    	
Mr.   William Skoglund
    
	
 
    	
Chairman   and Chief Executive Officer
    
	
 
    	
Old   Second Bancorp, Inc.
    
	
 
    	
37   South River Street
    
	
 
    	
Aurora,   Illinois 60506
    

 

Miscellaneous

 

11.           Notwithstanding any provision of this Agreement, the Reserve Bank may, in its sole discretion, grant written extensions of time to Old Second to comply with any provision of this Agreement.

 

12.           The provisions of this Agreement shall be binding upon Old Second and its institution-affiliated parties, in their capacities as such, and their successors and assigns.

 

13.           Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated, or suspended in writing by the Reserve Bank.

 

14.           The provisions of this Agreement shall not bar, estop, or otherwise prevent the Board of Governors, the Reserve Bank, or any other federal or state agency from taking any other action affecting Old Second, the Bank, any nonbank subsidiary of Old Second, or any of their current or former institution-affiliated parties and their successors and assigns.

 

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15.           Pursuant to section 50 of the FDI Act (12 U.S.C. §1831aa), this Agreement is enforceable by the Board of Governors under section 8 of the FDI Act (12 U.S.C. §1818).

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the 22nd day of July, 2011.

 

 

	
OLD SECOND BANCORP, INC.
    	
 
    	
FEDERAL   RESERVE BANK
    
	
 
    	
 
    	
OF   CHICAGO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   William B. Skoglund
    	
 
    	
By:
    	
/s/   Mark H. Kawa
    
	
 
    	
William   B. Skoglund
    	
 
    	
 
    	
Mark   H. Kawa
    
	
 
    	
Chairman   and Chief Executive Officer
    	
 
    	
 
    	
Vice   President
    

 

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