Document:

Exhibit 10.3

Confidential

 CIT GROUP INC.

LONG-TERM INCENTIVE PLAN

 2010 Annual Stock Salary Award Agreement

           “Participant”: John A. Thain

 CIT Group Inc., a Delaware corporation (“CIT” or the “Company”) is awarding the above-named Participant a regular, periodic grant of Restricted Stock Units (your “Annual Stock Salary”) pursuant to this Award Agreement and the Company’s Amended and Restated Long Term Incentive Plan (the “Plan”). Effective February 8, 2010, the Participant’s Annual Stock Salary pursuant to this Award Agreement will equal $2,500,000. References to “you” or “your” contained in this Award Agreement shall refer to the Participant. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.

      1. Annual Stock Salary.

           (a) Beginning on the date of this Award Agreement, your Annual Stock Salary will accrue and be earned equally over the course of the year, subject to your continued employment with the Company. Your Annual Stock Salary may be changed from time to time by the Compensation Committee (the “Committee”) of the Board.

          (b) On each date
that your base salary with the Company is payable in accordance with the
Company’s payroll practices as then in effect (each such date, a
“Grant Date”) you will be issued Restricted Stock Units equal
to (1) the amount of your Annual Stock Salary earned over the relevant payroll
period, net of any applicable FICA withholding pursuant to Section 5(a),
divided by (2) the closing price of a Share on the New York Stock
Exchange (or such other national securities exchange on which the Common Stock
is listed or traded as of the Grant Date) on that date (or, if such exchange is
closed on the Grant Date, on the last preceding date on which the Common Stock
was traded on such exchange) (the “Fair Market Value”). In the
event that Common Stock ceases to be listed or traded in the regular way on the
New York Stock Exchange or another national stock exchange, the value of a Share
shall be determined by a methodology approved by the Committee.

      2. Vesting; Settlement; Restrictions.

           (a) Each Restricted Stock Unit constitutes an unfunded and unsecured promise to pay the Fair Market Value of one Share on the applicable Redemption Date. Restricted Stock Units will be payable in Shares and, as a holder of Restricted Stock Units, you will have only the rights of a general unsecured creditor and no rights as a shareholder of CIT.

           (b) Restricted Stock Units granted pursuant to the Award Agreement shall be immediately vested on the applicable Grant Date.

          (c) Restricted
Stock Units issued in respect of a Grant Date will become payable on the first
anniversary of the Grant Date (the “Redemption Date”). The
Shares received in settlement of your Restricted Stock Units will be immediately
transferable and tax will be withheld by the Company in kind (unless otherwise
directed by the Participant). In addition, subject to Section 9, CIT will pay
you dividend equivalents (in the form distributed to shareholders) on the
Redemption Date of any dividend or distribution in respect of each underlying
share of Common Stock declared on or after the close of business on the Grant
Date and before the Redemption Date less (to the extent necessary to avoid a
duplicate payment to you) the amount of any actual dividends received after the
Redemption Date in respect of any such declaration, net of any applicable tax
withholding pursuant to Section 5(a). Payments of amounts owed under this
Section 2(c) will be made on the next immediately following payroll date that is
at least one week after the applicable Redemption Date, but no later than the
later of December 31 of the year in which such Redemption Date occurs or 45 days
following such Redemption Date.

          (d) Notwithstanding anything set forth herein, all Restricted Stock Units shall immediately be paid out (net of any applicable tax withholdings and deductions) in the event of your death, disability (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended) or a Change of Control.

     3. Termination. Your rights in respect of future grants under this Award Agreement shall immediately terminate if at any time your employment with the Company terminates for any reason, except that you shall be entitled to receive a final grant of Restricted Stock Units determined in accordance with Section 1 for any portion of your Annual Stock Salary that you had accrued through the date of your termination of employment but had not yet been granted.

     4. Nonassignability; No Hedging. No Award (or any rights and obligations under this Award Agreement) may be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged in any manner (including through the use of any cash-settled instrument), whether voluntarily or involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution. Any sale, exchange, transfer, assignment, pledge, hypothecation or other disposition in violation of this Section 4 will be null and void and any Award which is hedged in any manner will immediately be forfeited. All of the terms and conditions of this Award Agreement will be binding upon any permitted successors and assigns.

     5. Withholding.

          (a) The Company will satisfy applicable tax withholdings and make applicable deductions in respect of Annual Stock Salary earned by you over a payroll period and issue Restricted Stock Units pursuant to Section 1(b) in respect of the remainder. On each Redemption Date, the Company will satisfy any additional tax withholdings and make applicable deductions in respect of the amount to be paid to you and make payment to you pursuant to Section 2(c) in respect of the remainder. In the alternative, in each case, you may remit cash to the Company (through payroll deduction or otherwise), in an amount sufficient in the opinion of the Company to satisfy such withholding obligation.

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          (b) In all cases, you shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, that may be incurred in connection with the Award and/or settlement of the Restricted Stock Units.

     6. No Rights to Continued Employment. Nothing in this Award Agreement shall be construed as giving you any right to continued employment by the Company or affect any right that the Company may have to terminate or alter the terms and conditions of your employment with CIT.

     7. No Increase in Severance. Neither your Annual Stock Salary nor amounts you receive pursuant to this Award Agreement will increase the amounts payable to you pursuant to the Company’s severance plans, retirement plans, compensation plans, programs and arrangements.

     8. Offset. The Company has the right to offset against its obligation to deliver Shares under this Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans, repayment obligations under any awards, or amounts repayable to the Company pursuant to tax equalization, housing, automobile or other employee programs) that you then owe to the Company.

     9. Adjustment. The Committee shall adjust equitably the terms of this Award to preserve the benefits or potential benefits intended to be made available to you for any increase or decrease in the number of issued Shares resulting from a recapitalization, spin-off, split-off, stock split, stock dividend, combination or exchange of Shares, merger, consolidation, rights offering, separation, reorganization or liquidation, or any other change in the corporate structure or shares of CIT. Notwithstanding the foregoing, the Committee may, in its sole discretion, decline to adjust the terms of this Award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to you or to CIT.

     10. Section 409A.

          (a) Restricted Stock Units awarded under this Award Agreement are intended to be “deferred compensation” subject to Section 409A of the Internal Revenue Code of 1986, as amended, and this Award Agreement is intended to, and shall be interpreted, administered and construed to, comply with Section 409A with respect to the Restricted Stock Units. The Committee shall have full authority to give effect to the intent of this Section 10(a).

          (b) Each payment under the Restricted Stock Units shall be treated as a separate payment for purposes of Section 409A.

     11. Amendment; Committee Discretion. The Committee may at any time amend the terms and conditions set forth in this Award Agreement; provided that, notwithstanding the foregoing, no such amendment shall materially adversely affect your rights and obligations under this Award Agreement without your prior written consent (or the consent of your estate, if such consent is obtained after your death) with respect to amounts that you have already earned and accrued. The Committee shall have full discretion with respect to the interpretation of this Award

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Agreement and any actions to be taken or determinations to be made in connection with this Award Agreement, and its interpretations, actions and determinations shall be final, binding and conclusive.

     12. Compliance with Law. This Award Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required, or the Committee determines are advisable. You agree to take all steps the Company determines are necessary to comply with all applicable provisions of federal and state securities law in exercising his rights under this Award Agreement.

     13. Successors. All obligations of the Company under the Plan and this Award Agreement, with respect to the Annual Stock Salary and the Restricted Stock Units, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

     14. Governing Law. TO THE EXTENT NOT PREEMPTED BY FEDERAL LAW, THIS AWARD AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE.

     15. Refusal of Award. If you desire to refuse the Annual Stock Salary or Restricted Stock Units granted pursuant to this Award Agreement, you must notify the Company in writing. Such notification should be sent to CIT Group Inc., Human Resources Department, 1 CIT Drive, Livingston, New Jersey 07039, no later than thirty (30) days after receipt of this Award Agreement.

     IN WITNESS WHEREOF, the Company has caused this Award Agreement to be duly executed and delivered as of February 8, 2010.

				
	 	CIT GROUP INC.
	 
	 	By:	 
	 	 	
      

    
	 	 	Name:	 James J. Duffy
	 	 	Title: 	Executive Vice President and
	 	 	 	Global Head of Human Resources

	By:	 

    
	 	
      

    
	 	                              John A. Thain

-4-ex10-1.htm

 

 

AMENDMENT TO

ASSET PURCHASE AGREEMENT

 

Reference is made to that certain ASSET PURCHASE AGREEMENT, dated as of October 5, 2009 (the “Agreement”), by and among RONSON CONSUMER PRODUCTS CORPORATION, a New Jersey corporation, RONSON CORPORATION OF CANADA, LTD.,
an Ontario corporation, and RONSON CORPORATION, a New Jersey corporation, ZIPPO MANUFACTURING COMPANY, a Pennsylvania corporation, and NOSNOR, INC., a Delaware corporation, and, for purposes of Section 7.12(c) of the Agreement only, LOUIS V. ARONSON II.

 

WHEREAS, in light of new information and circumstances arising between the date the Agreement was first executed and the date hereof, the Selling Companies, the Purchasers, and Aronson (collectively, the “Parties”)
desire to amend certain provisions of the Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Amendment to Asset Purchase Agreement (this “Amendment”) and intending to be legally
bound, the Parties hereby agree as follows:

 

1.           Defined Terms.  Capitalized terms used in this Amendment, including those in the introductory paragraphs and recitals hereto,
and not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

2.           Amendments.

 

2.1.           Transition Services Agreement.  The Transition Services Agreement in the form attached to the Agreement as Attachment
D is hereby replaced in its entirety with the Transition Services Agreement in the form attached hereto as Attachment A.  References to the Transition Services Agreement in Section 1.1, Section 3.2(m), and Section 3.3(g) of the Agreement shall, for all purposes, be deemed to be to the version of the Transition Services Agreement attached to this Amendment.

 

2.2.           Flow of Funds Statement.  At the Closing, the relevant Parties shall execute a Flow of Funds Statement in substantially
the form attached hereto as Attachment B (the “Flow of Funds Statement”).  The Purchasers are authorized and directed by the Selling Companies to pay the Purchase Price directly to the Persons set forth on the Flow of Funds Statement in lieu of making payment of the Purchase Price directly to the Selling Companies.

 

2.3.           Purchase Price Adjustment.  The Parties acknowledge and agree that the Seller owes certain sums to the Business Purchaser
related to the production and sale of products by Seller pursuant to the Inventory Agreement and certain other matters, all as detailed on Attachment C hereto, the amount of which is set forth on the Flow of Funds Statement.  The Selling Companies agree that the Purchase Price shall be decreased by such amount as shown on the Flow of Funds Statement.

 

2.4.           Excluded Liabilities.  For the avoidance of any doubt, the Excluded Liabilities (as set forth in Section 2.3(b) of the
Agreement) shall include, regardless of any

 

  

  

  

disclosures made with respect thereto by the Selling Companies and any Knowledge thereof by the Purchasers and in addition to the Excluded Liabilities set forth in Section 2.3(b) of the Agreement, the following:

 

2.4.1.           all Liabilities of the Selling Companies arising under or relating to any Environmental Law, including CERCLA and the Spill Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.),
relating to any properties owned or used by any of the Selling Companies or their predecessors located in or around the Lower Passaic River Study Area (including the Diamond Alkali Superfund Site), including any claim that either of the Purchasers is a successor to any of the Selling Companies for purposes of such matters;

 

2.4.2.           all Liabilities arising out of or relating to the Ronson Corporation Retirement Plan or the action commenced against Ronson by the Pension Benefit Guaranty Corporation on or about December 30, 2009 relating thereto, including any claim that either
of the Purchasers is a successor to any of the Selling Companies for purposes of such matters; and

 

2.4.3.           all Liabilities arising out of the action filed by Yellow Freight against Seller or the facts and circumstances underlying such action.

 

2.5.            Additional Indemnifications.  Section 10.1 of the Agreement shall be amended to include the following additional
subsections:

 

(j)            any liability of the Selling Companies arising under or relating to any Environmental Law, including CERCLA and the Spill Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.),
relating to any properties owned or used by any of the Selling Companies or their predecessors located in or around the Lower Passaic River Study Area (including the Diamond Alkali Superfund Site), including any claim that either of the Purchasers is a successor to any of the Selling Companies for purposes of such matters;

 

(k)            any liability arising out of or relating to the Ronson Corporation Retirement Plan or the action commenced against Ronson by the Pension Benefit Guaranty Corporation on or about December 30, 2009 relating thereto, including any claim that
either of the Purchasers is a successor to any of the Selling Companies for purposes of such matters; and

 

(l)            any liability arising out of the action filed by Yellow Freight against Seller or the facts and circumstances underlying such action.

 

2.6.           Permits.  Notwithstanding any other provisions of the Agreement to the contrary, including Section 2.1(a)(vii), 3.2(a),
and 5.3(b) and any provisions of the Transition Services Agreement, the Transferred Permits shall be transferred or, at the option of Purchaser, terminated at such time as the Selling Companies shall no longer be operating at the Owned Real Property.

 

  

  

  

2.7.           Survival of Certain Obligations.  The sentence in Section 7.6(a) of the Agreement that reads “The provisions of
this Section 7.6(a) shall survive the Closing” is hereby deleted and replaced in its entirety with the following sentence “The provisions of this Section 7.6 shall survive the Closing.”

 

2.8.           Survival of Certain Indemnification Obligation.  Purchasers’ obligation to indemnify the Selling Companies for
all Liabilities arising out of the negligence or willful misconduct of Purchasers’ agents’ in connection with entry onto the Real Property contained in Section 7.3 of the Agreement shall survive the Closing.

 

2.9.           Acknowledgement of Waiver of Closing Condition; Survival of Indemnity.  The Selling Companies acknowledge and agree that
the representation and warranty contained in the last sentence of Section 5.14(e) is not accurate, and the Purchasers have agreed to waive the Closing condition with respect thereto.  Purchasers reserve all rights to indemnification relating to the inaccuracy of such representation and warranty, and the Selling Companies acknowledge and agree that all such rights to indemnification remain in effect despite any disclosure of such inaccuracy or knowledge of Purchasers thereof.

 

2.10.           No Set-Off.  Notwithstanding the provisions of Section 10.10 (Right of Set-Off), the Purchasers shall have no right
to set off any claims pursuant to Article X against consideration payable to the Selling Companies with respect to the Transition Services labeled “Operation of Ronsonol Production Line.”

 

2.11.           Reclaimed Materials.  The parties agree that (i) the inventory contained in certain pallets of containers intended to
be the subject of the Transition Service referred to as “Reclamation of Certain 12 Ounce Bottles” in the Transition Services Agreement plus (ii) inventory contained in certain other pallets of 5, 8, and 12 ounce bottles contained in two trailers have not been included in the calculation of the Transferred Inventory for purposes of the calculation of the Estimated Adjusted Current Asset Amount.  The parties agree that there will be an addition in favor of the Selling Companies equal to the
cost of the recovered fuel in the post-closing true-up calculation of the Adjusted Current Assets to include these Inventory items.

 

3.          Effect of Amendments.  All provisions of the Agreement, as amended by this Amendment, shall remain in full force and effect.

 

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed as of the Closing Date individually or by their respective officers or trustees, as the case may be, thereunto duly authorized.

 

	  	
RONSON CONSUMER PRODUCTS CORPORATION

 

 

 

	  	
By:

 
	
/s/Joel Getzler

 

	  	  	
Name:

 
	
Joel Getzler

 

	  	  	
Title:

 
	
CRO

  

 

	  	
RONSON CORPORATION

 

 

 

	  	
By:

 
	
/s/Joel Getzler

 

	  	  	
Name:

 
	
Joel Getzler

 

	  	  	
Title:

 
	
CRO

 

 

	  	
RONSON CORPORATION OF CANADA, LTD

 

 

 

	  	
By:

 
	
/s/Joel Getzler

 

	  	
 

 
	
Name:

 
	
Joel Getzler

 

	  	
 

 
	
Title:

 
	
CRO

 

 

	  	
ZIPPO MANUFACTURING COMPANY

 

 

 

	  	
By:

 
	
/s/ Richard a. Roupe

 

	  	  	
Name:

 
	
Richard A. Roupe

 

	  	  	
Title:

 
	
CFO

 

 

	  	
NOSNOR, INC.

 

 

 

	  	
By:

 
	
/s/ Richard A. Roupe

 

	  	  	
Name:

 
	
Richard A. Roupe

 

	  	  	
Title:

 
	
President

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