Document:

EXHIBIT 10.32

 

 

AMENDMENT NO. 01

 

AMENDMENT NUMBER ONE

TO

EMPLOYEE STOCK OWNERSHIP PLAN

OF

DIME COMMUNITY BANCSHARES, INC.

AND CERTAIN AFFILIATES

Pursuant to Section 16.1 of the Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates, Amended and restated as of January 1, 2008 ("Plan"), the Plan is hereby amended effective as of the dates set forth below:

1.            ARTICLE I – Effective for Plan Years commencing after December 31, 2008, Section 1.3, the definition of "Allocation Compensation," shall be amended by adding the following new paragraph as the second paragraph to read as follows and any subsequent paragraphs of such section shall follow accordingly:

Effective for Plan Years commencing after December 31, 2008, Allocation Compensation shall include "differential wage payments."  Differential wage payments means any payment which: is made by the Employer to an Employee with respect to any period during which the Employee is performing service in the uniformed services of the United States while on active duty for a period of more than thirty (30) days, and represents all or a portion of the wages the Employee would have received if such Employee were performing service for the Employer.  This paragraph shall only apply if all Employees receive differential wage payments on a reasonably equivalent basis, are eligible to participate in the Plan, and may make payments on reasonably equivalent terms.

2.            ARTICLE III – Effective as of January 1, 2007, Section 3.1, "Military Service," shall be amended by adding the following new paragraph to the end thereof to read as follows:

Effective as of January 1, 2007, a Participant who dies or becomes disabled while performing Qualified Military Service shall be deemed to be reemployed by the Employer, in accordance with his reemployment rights under the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"), on the day preceding his death or Disability, as applicable, and to have incurred a termination of service on the actual date of death or Disability.  In the case of any such treatment, any full or partial compliance by the Plan with respect to the benefit accrual requirements with respect to such Participant shall be treated as if such compliance were required under USERRA, provided all Participants performing Qualified Military Service who die or become disabled as a result of performing Qualified Military Service prior to reemployment by the Employer, are credited with service and benefits on reasonably equivalent terms.

3.            ARTICLE VIII – Effective for limitation years commencing on or after July 1, 2007, Section 8.2(c)(v), the definition of "Limitation Year," shall be amended by adding the following new sentence to the end thereof to read as follows:

Effective for Limitation years commencing on or after July 1, 2007, if the Plan is terminated as of a date other than the last day of the Limitation Year, the Plan shall be deemed to have changed the Limitation Year, and the Code Section 415(c)(1)(A) dollar limit shall be prorated for the short Limitation Year.

4.            ARTICLE X – Effective as of January 1, 2008, Section 10.3 shall be amended by replacing the plan name "The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust" with "The Dime Savings Bank of Williamsburgh 401(k) Savings Plan" wherever such plan name appears in such section.

5.            ARTICLE XIII – Section 13.5 shall be amended by adding the following new subsection (e) to the end thereof to read as follows:

(e)            Default to Discontinue 2009 RMDs.  Notwithstanding Section 13.5(b), a Participant or designated Beneficiary who would have been required to receive a Required Minimum Distribution for 2009 ("2009 RMD"), except for the enactment of Code Section 401(a)(9)(H), and who would have satisfied that requirement by receiving distributions that are (i) equal to the 2009 RMDs, or (ii) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant's designated Beneficiary, or for a period of at least ten (10) years ("Extended 2009 RMDs"), will not receive those distributions for 2009, unless the Participant or designated Beneficiary chooses to receive such distributions.  Participants and designated Beneficiaries described in the preceding sentence, shall be given the opportunity to elect to receive such distributions.

6.            ARTICLE XIII – Effective as of the dates set forth herein, Section 13.6 shall be amended in its entirety to read as follows:

(a)            For distributions made after December 31, 2001, and notwithstanding any provision of the Plan to the contrary that would otherwise limit a Participant or Distributee's election under this section, a Participant or Distributee may elect, at the time and in the manner prescribed by the Committee, to have any portion of an Eligible Rollover Distribution that is equal to at least five hundred dollars ($500) paid directly to an Eligible Retirement Plan specified by the Participant or Distributee in a Direct Rollover.  If an Eligible Rollover Distribution is less than five hundred dollars ($500), a Participant or Distributee may not make the election described in the preceding sentence to rollover a portion of the Eligible Rollover Distribution.

(b)            For purposes of this section, the following definitions shall apply:

(i)            "Direct Rollover" means a payment by the Plan to the Eligible Retirement Plan specified by the Distributee.

(ii)            "Distributee" means an Employee or former Employee.  In addition, the Employee's or former Employee's surviving Spouse and the Employee's or former Employee's Spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are Distributees with regard to the interest of the Spouse or former spouse.  Effective for Eligible Rollover Distributions made after December 31, 2008, a Distributee shall also include the Employee's nonspouse designated Beneficiary.  In the case of a nonspouse designated Beneficiary, the Direct Rollover may be made only to an individual retirement account or annuity described in Code Section 408(a) or Code Section 408(b) ("IRA") that is established on behalf of the designated Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Code Section 402(c)(11).  In addition, in this case, the determination of any required minimum distribution under Code Section 401(a)(9) that is ineligible for rollover shall be made in accordance with Notice 2007-7, Q&A 17 and 18, 2007-51 I.R.B. 395.

(iii)            "Eligible Retirement Plan" means (i) an individual retirement account described in Section 408(a) of the Code, (ii) an individual retirement annuity described in Section 408(b) of the Code, (iii) for distributions made after December 31, 2007, a Roth IRA described in Section 408A(e) of the Code, however, for distributions made prior to January 1, 2010, a Participant shall be subject to income limitations, (iv) an annuity plan described in Section 403(a) of the Code, (v) a qualified defined contribution plan described in Section 401(a) of the Code, (vi) an annuity contract described in Section 403(b) of the Code, and (vii) an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan, that accepts the Distributee's Eligible Rollover Distribution.  However, in the case of an Eligible Rollover Distribution to the surviving Spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity.  The definition of Eligible Retirement Plan shall also apply in the case of a distribution to a surviving Spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code.

(iv)            "Eligible Rollover Distribution" means any distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not include:  any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated Beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; the portion of any other distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and any other distributions(s) that is reasonably expected to total less than two hundred dollars ($200) during a year.

A portion of a distribution shall not fail to be an Eligible Rollover Distribu­tion merely because the portion consists of after-tax contributions which are not includable in gross income.  However, such portion may be transferred only to (i) an individual retirement account or individual retirement annuity described in Section 408(a) or (b) of the Code; (ii) for taxable years commencing after December 31, 2001 and before January 1, 2007, to a qualified trust which is part of a defined contribution plan that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible; or (iii) for taxable years commencing after December 31, 2006, to a qualified trust or to an annuity contract described in Code Section 403(b), if such trust or contract provides for separate accounting for amounts so transferred (including interest thereon), including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.

Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee's election under this Section, a Distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover.

7.            ARTICLE XIX – Effective as of January 1, 2008, Section 19.1 shall be amended by replacing the plan name "The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust" with "The Dime Savings Bank of Williamsburgh 401(k) Savings Plan" wherever such plan name appears in such section.

IN WITNESS WHEREOF, Dime Community Bancshares, Inc. has caused this Amendment to be executed this ____ day of __________________, 2009 pursuant to the authority in adopted resolutions granting the appropriate officer(s) the authority to take any action as may be necessary to maintain the tax-qualified status of the Plan.

DIME COMMUNITY BANCSHARES, INC.

       By:        _________________________

Print Name: _________________________

    Title:        _________________________

 

 

  

AMENDMENT NO. 02

Employee Stock Ownership Plan

Of

Dime Community Bancshares, Inc.

 And Certain Affiliates

(Amended and Restated

Effective January 1, 2008)

AMENDMENT

	1.	ARTICLE I – Section 1.51 of the Plan shall be amended to read in its entirety as follows:

Section 1.51                          Qualified Participant  means a Participant or Former Participant who has attained age 55 and who has been a Participant in the Plan for at least 10 years.

	2.	ARTICLE I – Section 1.54 of the Plan shall be amended to read in its entirety as follows:

Section 1.54                          Share means a share of any class of stock issued by the Employer or any Affiliated Employer; that is provided that such share is (a) common stock that is readily tradable on an established market; (b) common stock possessing the most favorable dividend rights and voting rights of any class of common stock issued by the Employer or Affiliated Employer; (c) noncallable preferred stock that is convertible at any time into common stock meeting the requirements of section 1.54(a) or (b) at a conversion price that is reasonable at the time the preferred stock is acquired by the Plan..

	3.	ARTICLE VI – The last sentence of section 6.1 of the Plan shall be amended to read in its entirety as follows:

Any such Share Acquisition Loan shall be primarily for the benefit Plan participants and their Beneficiaries, shall be obtained on such terms and conditions as the Committee may approve; provided, however, that such terms and conditions shall provide for a definite term, shall not provide for payment on demand, shall provide for the payment of interest at no more than a reasonable rate and shall otherwise permit such Share Acquisition Loan to satisfy the requirements of section 4975(d)(3) of the Code and section 408(b)(3) of ERISA.

	4.	ARTICLE VIII – Section 8.2(d) of the Plan shall be amended to read in its entirety as follows:

(d)            (i)            When a Participant's Annual Addition to this Plan must be reduced to satisfy the limitations of section 8.2(a) or (b) in a Limitation Year that begins before July 1 2007, such reduction shall be applied to ESOP Contributions and to Shares allocated as a result of a Loan Repayment Contribution which are included as an Annual Addition in such order as shall result in the smallest reduction in the number of Shares allocable to the Participant's Account. No reduction shall be applied to 401(k) Safe Harbor Contributions unless and until all other amounts included in the Participant's Annual Addition have been reduced to zero. The amount by which any Participant's Annual Addition to this Plan is reduced shall be allocated in accordance with Articles V and VII as a contribution by the Employer in the next succeeding Limitation Year.

(ii)            When a Participant's Annual Addition to this Plan must be reduced to satisfy the limitations of section 8.2(a) or (b) in a Limitation Year that begins on or after July 1 2007, such reduction shall be effected in accordance with the prevailing requirements of Employee Plans Compliance Resolution System or other applicable correction procedure then permitted by applicable law, rule or regulation.

	5.	ARTICLE IX – The last sentence of section 9.4 of the Plan shall be amended to read in its entirety as follows:

Section 9.4                          Forfeitures on Termination of Employment.

Upon the termination of employment of a Participant or Former Participant for any reason other than death, Disability, Retirement, that portion of the balance credited to his Account which is not vested at the date of such termination shall be forfeited as of the last Valuation Date for the Plan Year in which such termination of employment occurs. The proceeds of such forfeitures, less amounts, if any, required to be credited because of re‐employment pursuant to section 9.5, shall be treated as Forfeitures and shall be disposed of as provided in section 9.6.  If a Participant or Former Participant's Account includes assets other than Shares allocated in connection with the repayment of a Share Acquisition Loan, Forfeitures shall be applied first to such other assets, and if such Account includes more than one class of Shares, Forfeitures shall be applied proportionately to each class of Shares.

	6.	ARTICLE X– The last sentence of section 10.3 of the Plan shall be amended to read in its entirety as follows:

Section 10.3                          Distributions for Diversification of Investments.

(a)            Notwithstanding section 10.2, each Qualified Participant may:

(i)            during the first 90 days of each of the first five Plan Years to begin after the Plan Year in which he first becomes a Qualified Participant, elect that such percentage of the balance credited to his Account as he may specify, but in no event more than 25% of the balance credited to his Account, be either distributed to him pursuant to this section 10.3(a)(i) or transferred to The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust to the extent permitted by such plan, no later than 90 days after the last day that such election may be made; and

(ii)            during the first 90 days of the sixth Plan Year to begin after the Plan Year in which he first becomes a Qualified Participant or of any Plan Year thereafter, elect that such percentage of the balance credited to his Account as he may specify, but in no event more than 50% of the balance credited to his Account, be either distributed to him pursuant to this section 10.3(a)(ii) or transferred to The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust to the extent permitted by such plan, no later than 90 days after the last day that such election may be made.

For purposes of an election under this section 10.3, the balance credited to a Participant's Account shall be the balance credited to his Account determined as of the last Valuation Date to occur in the Plan Year immediately preceding the Plan Year in which such election is made and the 25% and 50% limitations shall apply to such balance after adjustment for all amounts previously distributed or transferred to The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust under this Section 10.3.  For this purpose, Account balances shall be expressed in Shares.

	
(a)

	
An election made under section 10.3(a) shall be made in writing, in the form and manner prescribed by the Plan Administrator, and shall be filed with the Plan Administrator during the election period specified in section 10.3(a). As soon as is practicable, and in no case later than 90 days following the end of the election period during which such election is made, the Plan Administrator shall take such actions as are necessary to cause the specified percentage of the balance credited to the Account of the Qualified Participant making the election to be distributed to such Qualified Participant.

(c)            An election made under section 10.3(a) may be changed or revoked at any time during the election period described in section 10.3(a) during which it is initially made. In no event, however, shall any election under this section 10.3 result in more than 25% of the balance credited to the Participant's Account being distributed to the Participant or transferred to The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust, if such election is made during a Plan Year to which section 10.3(a)(i) applies, or result in more than 50% of the balance distributed to the Participant or transferred to The Dime Savings Bank of Williamsburgh 401(k) Savings Plan in RSI Retirement Trust, if such election is made during the Plan Year to which section 10.3(a)(ii) applies or thereafter.

	7.	ARTICLE XIII – Section 13.8 of the Plan shall be amended to include a new subsection (e) to read in its entirety as follows:

(e)            The provisions of this section 13.8 are non-terminable and shall continue to apply following the repayment of an applicable Share Acquisition Loan, the termination of the Plan or the termination of the Plan's status as an employee stock ownership plan.

	8.	ARTICLE XIII – Section 13.9 of the Plan shall be amended to include a new subsection (e) to read in its entirety as follows:

(e)            The provisions of this section 13.9 are non-terminable and shall continue to apply following the repayment of an applicable Share Acquisition Loan, the termination of the Plan or the termination of the Plan's status as an employee stock ownership plan.

	9.	ARTICLE VII – Section 17.3 of the Plan shall be amended by adding the following new sentence at the end thereof:

	
(b)

	
An individual's Cumulative Accrued Benefits under this Plan as of a Determination Date are equal to the sum of:

	
(i)

	
the balance credited to such individual's Account under this Plan as of the most recent Valuation Date preceding the Determination Date;

	
(ii)

	
the amount of any ESOP Contributions or Loan Repayment Contributions made after such Valuation Date but on or before the Determination Date; and

	
(iii)

	
the amount of any distributions of such individual's Cumulative Accrued Benefits under the Plan during the five year period ending on the Determination Date other than distributions in Plan Years beginning after December 31, 2001 that are made more than one year after the Determination Date on account of severance from employment, death or disability .

For purposes of this section 17.4(a), the computation of an individual's Cumulative Accrued Benefits, and the extent to which distributions, rollovers and transfers are taken into account, will be made in accordance with section 416 of the Code and the regulations thereunder.

IN WITNESS WHEREOF, this Amendment has been executed by the undersigned officer of Dime Community Bancshares, Inc. pursuant to authority given by the Board of Directors.

Dime Community Bancshares, Inc.

By    ______________________________

Title: ________________________

Date: ________________________

 

AMENDMENT NO. 03

 

Employee Stock Ownership Plan

Of

Dime Community Bancshares, Inc.

 And Certain Affiliates

(Amended and Restated

Effective January 1, 2008)

AMENDMENT

	1.	ARTICLE VII – Section 7.2 of the Plan shall be amended by adding the following new sentences at the end thereof:

For all purposes of this section 7.2, the phrase "immediately preceding calendar year" means the calendar year ending on or immediately prior to the Plan Year in question.  If, after May 1, 2012, there is a short Plan Year that does not end on the last day of a calendar year, "immediately preceding calendar year" shall mean the period beginning on January 1 in the short Plan Year and ending on the last day of the short Plan Year.

	2.	ARTICLE VII – Section 7.3 of the Plan shall be amended by adding the following new sentence at the end thereof:

For all purposes of this section 7.3, the phrase "immediately preceding calendar year" means the calendar year ending on or immediately prior to the Plan Year in question.  If, after May 1, 2012, there is a short Plan Year that does not end on the last day of a calendar year, "immediately preceding calendar year" shall mean the period beginning on January 1 in the short Plan Year and ending on the last day of the short Plan Year.

IN WITNESS WHEREOF, this Amendment has been executed by the undersigned officer of Dime Community Bancshares, Inc. pursuant to authority given by the Board of Directors.

Dime Community Bancshares, Inc.

By    ______________________________

Title: ________________________

Date: ________________________

( of )ex41.htm

 

	Exhibit 4.1	 EXECUTION VERSION

 

This secured debenture has not been registered under the Securities Act of 1933, as amended (the "1933 Act"), or under the provisions of any applicable state securities laws, but has been acquired by the registered holder hereof for purposes of investment and in reliance on statutory exemptions under the 1933 Act, and under any applicable state securities laws.  This Debenture may not be sold, pledged, transferred or assigned except in a transaction which is exempt under provisions of the 1933 Act and any applicable state securities laws or pursuant to an effective registration statement; and in the case of an exemption, only if the Company has received an opinion of counsel satisfactory to the Company that such transaction does not require registration of this Debenture.

AMP TRUCKS INC.

 

	Date: March 13, 2013 	 $2,250,000

 

SECURED DEBENTURE

AMP Trucks Inc. (the “Company”) for value received, hereby promises to pay to WORKHORSE CUSTOM CHASSIS, LLC, or registered assigns (the "Holder") on or before March 13, 2016 (collectively, the "Maturity Date"), at the principal offices of the Company, the principal sum set forth above, and to pay interest on the outstanding principal sum at the rate of ten percent (10%) per annum (this "Debenture").  Interest shall commence accruing on the date hereof, computed on the basis of a 365-day year and the actual number of days elapsed, provided that any payment otherwise due on a Saturday, Sunday or legal Bank holiday may be paid on the following business day.  Interest shall compound annually and be payable on the Maturity Date.  All payments due hereunder, shall be made in lawful money of the United States of America. In the event that for any reason whatsoever any interest or other consideration payable with respect to this Debenture shall be deemed to be usurious by a court of competent jurisdiction under the laws of the State of Illinois or the laws of any other state governing the repayment hereof, then so much of such interest or other consideration as shall be deemed to be usurious shall be held by the holder as security for the repayment of the principal amount hereof and shall otherwise be waived.   The obligations of the Company under this Debenture shall be (a) secured by all of the assets of the Company as set forth in that certain Security Agreement, dated as of the date hereof, by and between the Company and the Holder (the “Security Agreement”) and (b) guaranteed by each party listed as a “Guarantor” on the signature pages hereto (collectively, the “Guarantors”).  Capitalized terms used but not defined herein shall have the meanings set forth in the Security Agreement.

 

1.            Transfers of Debenture to Comply with the 1933 Act

 

The Holder agrees that this Debenture may not be sold, transferred, pledged, hypothecated or otherwise disposed of except as follows:  (a) to a person whom the Debenture may legally be transferred without registration and without delivery of a current prospectus under the 1933 Act with respect thereto and then only against receipt of an agreement of such person to comply with the provisions of this Section 1 with respect to any resale or other disposition of the Debenture; or (b) to any person upon delivery of a prospectus then meeting the requirements of the 1933 Act relating to such securities and the offering thereof for such sale or disposition, and thereafter to all successive assignees.

 

 

2.            Right of Prepayment.  The Company may prepay outstanding principal and interest of the Debenture in full at any time.  In the event the Company prepays outstanding principal and interest, the Company shall pay an amount equal to all outstanding principal and interest multiplied by 105%.

 

3.            Waiver and Consent.  To the fullest extent permitted by law and except as otherwise provided herein, the Company waives demand, presentment, protest, notice of dishonor, suit against or joinder of any other person, and all other requirements necessary to charge or hold the Company liable with respect to this Debenture.

4.            Costs, Indemnities and Expenses.  Upon the occurrence of an Event of Default (as defined below), the Company agrees to pay all reasonable fees and costs incurred by the Holder in collecting or securing or attempting to collect or secure this Debenture, including reasonable attorneys’ fees and expenses, whether or not involving litigation, collecting upon any judgments and/or appellate or bankruptcy proceedings.  The Company agrees to pay any documentary stamp taxes, intangible taxes or other taxes which may now or hereafter apply to this Debenture or any payment made in respect of this Debenture, and the Company agrees to indemnify and hold the Holder harmless from and against any liability, costs, attorneys’ fees, penalties, interest or expenses relating to any such taxes, as and when the same may be incurred.

5.            Secured Nature of the Debenture.  This Debenture is secured by all of the assets of AMP Trucks as set forth in the Security Agreement.

6.            Representations and Warranties. Each of the Company and each Guarantor party hereto represents and warrants to the Holder that:

	
a.  

	
such party is duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction of its organization;

 

	
b.  

	
such party has authority to own its property and assets and to carry on its business as now conducted, except, in each case, where the failure to do so, or so possess, individually or in the aggregate would not reasonably be expected to result in a material adverse effect;

 

	
c.  

	
such party has all requisite organizational power and authority to execute and deliver and perform all its obligations under this Debenture.

 

	
d.  

	
such party is qualified to do business in, and is in good standing (where such concept exists) in, every jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary, except where the failure to be so qualified or in good standing individually or in the aggregate would not reasonably be expected to result in a material adverse effect;

 

 

  

1

  

 

	
e.  

	
the transactions contemplated hereby and by the Security Agreement are within such party’s organizational powers and have been duly authorized by all necessary corporate or limited liability company action;

 

	
f.  

	
this Debenture has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms;

 

	
g.  

	
the transactions to be entered into and contemplated by this Debenture and the Security Agreement (a) do not require any consent or approval of, registration or filing with, or any other action by, any governmental authority, (b) will not (i) violate any applicable law or (ii) the organizational documents, bylaws, charter, operating agreement, certificate of formation or certificate of incorporation of such party, (c) will not violate or result in a default under any indenture or any other agreement, instrument or other evidence of indebtedness, and (d) will not result in the creation or imposition of any lien on any asset of such party, except liens created under the Security Agreement.

 

7.            Event of Default.  An “Event of Default” shall be deemed to have occurred upon the occurrence of any of the following: (a) the Company shall fail to make any payment of the principal, interest, costs, indemnities, or expenses pursuant to this Debenture when and as the same shall become due and payable; (b) any default, whether in whole or in part, in the due observance or performance of any obligations or other covenants, terms or provisions to be performed by the Company under this Debenture; (c) the occurrence of any Event of Default (as defined in the Security Agreement) under the Security Agreement; (d) the direct or indirect change of control of the Company, whether by merger, consolidation, reorganization or the sale or other transfer of a controlling percentage of the stock or other equity interest of the Company; (e) the Company shall make a general assignment for the benefit of its creditors; (f) the Company shall apply for or consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, conservator, liquidator or similar official for itself or any of its assets and properties; (g) the Company shall voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief as a debtor under the United States Bankruptcy Code or any other liquidation, conservatorship, bankruptcy, general assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally (collectively, the “Debtor Relief Laws”); (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Company or its debts, or of a substantial part of its assets, under any Debtor Relief Law or (ii) the appointment of a receiver, trustee, assignee, custodian, sequestrator, conservator, liquidator or similar official for itself or any of its assets and properties and, in any such case, such proceeding or petition shall continue undismissed for thirty (30) days or an order or decree approving any of the foregoing shall be entered; (i) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) above; or (j) any lien purported to be created under any Security Agreement in any material portion of the Collateral and the proceeds thereof shall cease to be, or shall be asserted by the Company not to be, a valid and perfected lien on any material portion of the Collateral.  Upon the occurrence of an Event of Default, the Holder may declare that the entire principal balance and accrued and unpaid interest outstanding under this Debenture, and all other obligations of the Company under this Debenture, shall be immediately due and payable; provided, that upon the occurrence of an Event of Default pursuant to clauses (e), (f), (g), (h) or (i) of this Section 7, the entire principal balance and accrued and unpaid interest outstanding under this Debenture, and all other obligations of the Company under this Debenture, shall be immediately due and payable without any action on the part of the Holder.

 

 

  

2

  

8.            Remedies Upon Event of Default.  In case any one or more Events of Default shall have occurred and be continuing, the Holder may proceed to protect and enforce its rights and remedies under this Debenture or the Security Agreement by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of any covenant or agreement contained in this Debenture or the Security Agreement and proceed to enforce the payment thereof or any other legal or equitable right of the Holder.

9.            Maximum Interest Rate.  In no event shall any agreed to or actual interest charged, reserved or taken by the Holder as consideration for this Debenture exceed the limits imposed by Illinois law.  In the event that the interest provisions of this Debenture shall result at any time or for any reason in an effective rate of interest that exceeds the maximum interest rate permitted by applicable law, then without further agreement or notice the obligation to be fulfilled shall be automatically reduced to such limit and all sums received by the Holder in excess of those lawfully collectible as interest shall be applied against the principal of this Debenture immediately upon the Holder’s receipt thereof, with the same force and effect as though the Company had specifically designated such extra sums to be so applied to principal and the Holder had agreed to accept such extra payment(s) as a premium-free prepayment or prepayments.

10.          Indebtedness. The Company shall not, directly or indirectly, create, incur, assume or suffer to exist any indebtedness (other than indebtedness outstanding as of the date hereof) unless such indebtedness is subordinated in right of payment to the obligations of the Company under this Debenture and, to the extent such indebtedness is secured, any lien securing such indebtedness is junior in priority to the lien securing the obligations of the Company under this Debenture.

11.          Guarantee.  Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual payment of all Obligations (as defined in the Security Agreement) (collectively, the “Guaranteed Obligations”), including all such Guaranteed Obligations which shall become due.  Each Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon the Guarantee notwithstanding any extension or renewal of any Guaranteed Obligation.

12.          Guaranteed Obligations Not Waived or Affected.  To the fullest extent permitted by Applicable Law, each Guarantor expressly waives presentment to, demand of payment from and protest to the Company of any of the Guaranteed Obligations, and also waives notice of acceptance of this Debenture, notice of protest for nonpayment and all other notices of any kind.  To the fullest extent permitted by applicable law, the obligations of each Guarantor hereunder shall not be affected by (a) the failure of the Holder to assert any claim or demand or to enforce or exercise any right or remedy against the Company or any Guarantor under the provisions of this Debenture, the Security Agreement or otherwise or against any other party with respect to any of the Guaranteed Obligations, (b) any rescission, waiver, amendment or modification of (including, without limitation, any extension, renewal restructuring, any acceptance of late or partial payments under, or any change in the amount of borrowings), or any release from, any of the terms or provisions of this Debenture, the Security Agreement or any other agreement, with respect to any Holder or Guarantor or with respect to the Guaranteed Obligations, (c) the failure to perfect any security interest in, or the release of, any of the security held by or on behalf of the Holder (including, but not limited to, lapse in perfection, impairment of any security for any of the Guaranteed Obligations), (d) any lack of legality, validity or enforceability of this Debenture, the Security Agreement, or any other agreement or instrument creating, providing security for, or otherwise relating to any of the Guaranteed Obligations, (e) any existence, addition, modification, termination, reduction or impairment of value, or release of any other guaranty (or security therefor) of the Guaranteed Obligations or (f) the lack of legal existence of Holder or any Guarantor or legal obligation to discharge any of the Guaranteed Obligations by Holder or any Guarantor for any reason whatsoever, including, without limitation, in any insolvency, bankruptcy or reorganization of Holder or any Guarantor.  It is the express purpose and intent of the Guarantors party hereto that this Guarantee and the Guarantors’ Guaranteed Obligations hereunder shall be absolute and unconditional under any and all circumstances and shall not be discharged except by payment and performance as herein provided.

 

  

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13.          Agreement to Pay.  In furtherance of the foregoing and not in limitation of any other right that the Holder has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Company or any Guarantor to pay any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will promptly pay, or cause to be paid, to the Holder in cash the amount of such unpaid Guaranteed Obligations.  Upon payment by any Guarantor of any sums to the Holder as provided above, all rights of such Guarantor against the Company or any Guarantor arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subordinate and junior in right of payment to the prior payment in full in cash of all the Guaranteed Obligations.

14.          Cancellation of Debenture. Upon the repayment by the Company of all of its obligations hereunder to the Holder, including, without limitation, the principal amount of this Debenture, plus accrued but unpaid interest, the indebtedness evidenced hereby shall be deemed canceled and paid in full.  Except as otherwise required by law or by the provisions of this Debenture, payments received by the Holder hereunder shall be applied first against expenses and indemnities, next against interest accrued on this Debenture, and next in reduction of the outstanding principal balance of this Debenture.

15.          Severability.  If any provision of this Debenture is, for any reason, invalid or unenforceable, the remaining provisions of this Debenture will nevertheless be valid and enforceable and will remain in full force and effect.  Any provision of this Debenture that is held invalid or unenforceable by a court of competent jurisdiction will be deemed modified to the extent necessary to make it valid and enforceable and as so modified will remain in full force and effect.

16.          Amendment and Waiver.  This Debenture may be amended, or any provision of this Debenture may be waived only if such amendment or waiver is set forth in a writing executed by Holder.  The waiver by Holder of a breach of any provision of this Debenture shall not operate or be construed as a waiver of any other breach.

17.          Successors.  Except as otherwise provided herein, this Debenture shall bind and inure to the benefit of and be enforceable by the Holder and its permitted successors and assigns.

18.          Assignment.  This Debenture shall not be directly or indirectly assignable or delegable by the Company.

 

19.          Further Assurances.  The Company will execute all documents and take such other actions as the Holder may reasonably request in order to consummate the transactions provided for herein and to accomplish the purposes of this Debenture.

20.          Notices, Consents, etc.  Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) trading day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

  

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If to Company:

	
AMP Trucks Inc.

100 Commerce Boulevard

	  	
Loveland, Ohio 45140

	  	
Attention: Stephen Burns, CEO

	  	
Telephone: 513-297-3640

	  	
Facsimile:  888-666-2903

	 	 
	
With a Copy to:

	
Fleming PLLC

49 Front Street, Suite 206

Rockville Centre, New York 11570

Attention: Stephen M. Fleming, Esq.

Telephone: 516-833-5034

Facsimile: 516-977-1209

	 	 
	
If to the Holder:

	
Workhorse Custom Chassis, LLC

c/o Navistar, Inc.

2701 Navistar Drive

Lisle, IL 60532

Attention: General Counsel

Facsimile: 331-332-2261

	 	 
	
 

With a Copy to:

	
Kirkland & Ellis, LLP

300 N. LaSalle St.

Chicago, IL  60654

Attention:  Keith S. Crow, P.C.

                    Kevin L. Morris

Facsimile:  312-862-2200

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) trading days prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

21.          Governing Law.  All questions concerning the construction, validity and interpretation of this Debenture and any and all disputes or controversies arising out of the subject matter hereof (whether by contract, tort or otherwise) shall be governed by and construed in accordance with the domestic laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois.

 

  

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22.          Jurisdiction.  EACH PARTY HERETO AGREES THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY THE HOLDER PURSUANT TO THIS DEBENTURE SHALL PROPERLY (BUT NOT EXCLUSIVELY) LIE IN ANY FEDERAL OR STATE COURT LOCATED IN COOK COUNTY, ILLINOIS.  BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT TO SUCH ACTION.  EACH PARTY HERETO IRREVOCABLY AGREES THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVES ANY OBJECTION THAT SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  EACH PARTY HERETO FURTHER AGREES THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT.

 

23.          No Inconsistent Agreements.  No party hereto will hereafter enter into any agreement, which is inconsistent with the rights granted to the Holder in this Debenture.

 

24.          Third Parties.  Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or entity, other than the Holder and its permitted successor and assigns, any rights or remedies under or by reason of this Debenture.

 

25.          Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS DEBENTURE. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY HERETO UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY HERETO MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HERETO HAS BEEN INDUCED TO ENTER INTO THIS DEBENTURE BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS ‎SECTION 25.

 

26.          Entire Agreement.  This Debenture (including any recitals hereto) set forth the entire understanding of the parties with respect to the subject matter hereof, and shall not be modified or affected by any offer, proposal, statement or representation, oral or written, made by or for any party in connection with the negotiation of the terms hereof, and may be modified only by instruments signed by all of the parties hereto.

 

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

  

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IN WITNESS WHEREOF, this Secured Debenture is executed by the undersigned as of the date hereof.

 

 

“COMPANY”

 

	
AMP Trucks Inc.

	  
	  	  
	
By: /s/Stephen Burns

	  
	
Name: Stephen Burns

	  
	
Title:   Chief Executive Officer

	  

“GUARANTORS”

	
AMP Electric Vehicles, Inc.

	 
	  	 
	
By: /s/Stephen Burns

	 
	
Name: Stephen Burns

	 
	
Title:   Chief Executive Officer

	 

	
AMP Holding Inc.

	 
	  	 
	
By: /s/Stephen Burns

	 
	
Name: Stephen Burns

	 
	
Title:   Chief Executive Officer

	 

 

 

 

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