Document:

EXHIBIT 10.2
    

    
      COMMITMENT AMOUNT INCREASE REQUEST
    

    
      March 15, 2010
    

    
    	
          To:
        	
          Bank of Montreal, Chicago Branch, as Administrative Agent for the
          Lenders parties to the Second Amended and Restated Credit Agreement
          dated as of July 17, 2008 (as extended, renewed, amended or restated
          from time to time, the “Credit Agreement”), among
          LTC Properties, Inc., the Guarantors party thereto, the Lenders
          party thereto, and Bank of Montreal, Chicago Branch, as
          Administrative Agent.
        

    

    
      Ladies and Gentlemen:
    

    
      The undersigned, LTC Properties, Inc. (the “Borrower”)
      hereby refers to the Credit Agreement and requests that the
      Administrative Agent consent to an increase in the aggregate Commitments
      (the “Commitment Amount Increase”), in accordance
      with Section 1.14 of the Credit Agreement, to be effected by the
      addition of Bank of America, N.A. (the “New Lender”)
      as a Lender under the terms of the Credit Agreement.  Capitalized terms
      used herein without definition shall have the same meanings herein as
      such terms have in the Credit Agreement.
    

    
      After giving effect to such Commitment Amount Increase, the Revolving
      Credit Commitment of the New Lender shall be $30,000,000.          
    

    
      1. The New Lender hereby confirms that it has received a copy of the
      Loan Documents and the exhibits related thereto, together with copies of
      the documents which were required to be delivered under the Credit
      Agreement as a condition to the making of the Loans and other extensions
      of credit thereunder.  The New Lender acknowledges and agrees that it
      has made and will continue to make, independently and without reliance
      upon the Administrative Agent or any other Lender and based on such
      documents and information as it has deemed appropriate, its own credit
      analysis and decisions relating to the Credit Agreement.  The New Lender
      further acknowledges and agrees that the Administrative Agent has not
      made any representations or warranties about the credit worthiness of
      the Borrower or any other party to the Credit Agreement or any other
      Loan Document or with respect to the legality, validity, sufficiency or
      enforceability of the Credit Agreement or any other Loan Document or the
      value of any security therefor.          
    

    
      2. Except as otherwise provided in the Credit Agreement, and subject to
      New Lender’s receipt of all upfront fees payable to it, effective as of
      the date of acceptance hereof by the Administrative Agent, the New
      Lender (i) shall be deemed automatically to have become a party to the
      Credit Agreement and have all the rights and obligations of a “Lender”
      under the Credit Agreement as if it were an original signatory thereto
      and (ii) agrees to be bound by the terms and conditions set forth in the
      Credit Agreement as if it were an original signatory thereto.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      3.The New Lender shall deliver to the Administrative Agent an
      Administrative Questionnaire.
    

    
      THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND
      SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
      STATE OF NEW YORK.
    

    
      The Commitment Amount Increase shall be effective when the executed
      consent of the Administrative Agent is received or otherwise in
      accordance with Section 1.14 of the Credit Agreement, but not in any
      case prior to March 15, 2010.  It shall be a condition to the
      effectiveness of the Commitment Amount Increase that all expenses
      referred to in Section 1.14 of the Credit Agreement shall have been paid.
    

    
      The Borrower hereby certifies that no Default or Event of Default has
      occurred and is continuing.
    

    
      [SIGNATURE PAGE FOLLOWS]
    

    
      
        

        

      

      
        
          -2-
        

        
          

        

      

      
        

        

      

    

    
      Please indicate the Administrative Agent’s consent to such Commitment
      Amount Increase by signing the enclosed copy of this letter in the space
      provided below.
    

    

    

    
    	
           
        	
          Very truly yours,
        
	

        	
           
        
	

        	
          LTC PROPERTIES, INC.
        
	

        	
           
        
	

        	
          
            By /s/ Wendy Simpson
          

        
	

        	
          Name: Wendy Simpson
        
	

        	
          Title: CEO & President
        
	

        	
           
        
	

        	
          
            By /s/ Pamela Shelley-Kessler
          

        
	

        	
          Name: Pamela Shelley-Kessler
        
	

        	
          Title: SVP & Chief Financial Officer
        
	

        	
           
        
	

        	
          BANK OF AMERICA, N.A.
        
	

        	
           
        
	

        	
          
            By /s/ Amie L. Edwards
          

        
	

        	
          Name: Amie L. Edwards
        
	

        	
          Title Sr. Vice President
        

    

    
      The undersigned hereby consents on this 15th day of March, 2010 to the
      above-requested Commitment Amount Increase.
    

    
      BANK OF MONTREAL,
as Administrative Agent
    

    
    	
          
            By /s/ Mark W. Piekos
          

        
	
          Name: Mark W. Piekos
        
	
          Title: Managing Director
        

    

    
      [SIGNATURE PAGE TO COMMITMENT AMOUNT INCREASE AGREEMENT]formofnoticegrant.htm

 Exhibit 10.1

JCPenney

J. C. Penney Company, Inc.                      Notice
of 2010 Performance Unit Grant

	
2009 Long-Term 

Incentive Plan
	
Name   

 [Associate Name]
	
Employee ID                

 [EEID]

	 	
Date of Grant

3/16/2010
	 Number of Performance Units Granted
 [Grant Amount]
	
Performance Cycle 

Begins: 1/31/2010

Ends: 1/29/2011

You have been granted the number of Performance Units listed above in recognition of your expected future contributions to the success of JCPenney.   This Performance Unit grant is a “target” award, which may increase or decrease based on the Company’s actual results for the Performance Cycle as set forth in the Payout Matrix established by the independent members of the
JCPenney Board of Directors.   This grant is subject to all the terms, rules, and conditions of the J. C. Penney Company, Inc. 2009 Long-Term Incentive Plan (“Plan”) and the implementing resolutions (“Resolutions”) approved by the Human Resources and Compensation Committee (“Committee”) of the Board.  Capitalized terms not otherwise defined herein shall have the respective meanings assigned to
them in the Plan and the Resolutions.  In the event of a change in capitalization of the Company or other similar event, the number of units shall be adjusted as provided in the Plan.

Definitions

Payout Matrix – The payout matrix is established by the independent members of the Board at the beginning of the Performance Cycle and describes the percentage of units you shall earn based on the Company’s actual EPS for the Performance Cycle.

Performance Units – The performance units granted under this program are restricted stock units with both performance-based and time-based vesting features.  Each performance unit shall at all times be deemed to have a value equal to the then-current fair market
value of one share of J. C. Penney Company, Inc. Common Stock of 50¢ par value (“Common Stock”).  You can earn from 0% to 200% of the units granted based on the Company’s actual results for the Performance Cycle.

Performance Cycle – The performance cycle is a one-year period beginning on the first day of the Company’s fiscal year and ending on the last day of the fiscal year.

Performance Measurement – The Performance Measurement is the Company’s Diluted Earnings Per Share from continuing operations (“EPS”) over the Performance Cycle.  The Human Resources and Compensation Committee of the Board of Directors (Committee), based
on objective criteria selected by the  Committee may, in its sole discretion and in compliance with Internal Revenue Service regulations, adjust EPS.  Such adjustments may include, but are not limited to, extraordinary items as defined by the Extraordinary and Unusual Items Subtopic of the FASB Accounting Standards Codification or other items that are not reflective of normal ongoing operations, such as: asset impairments and write-downs;
the effects of losses, or gains as a result of  natural, or man made disasters; litigation and claims judgments; legal or tax settlements;  the effects of tax law changes; changes in accounting or the application of new accounting standards; the effects of restructuring or reorganization programs, including refinancing, debt or common stock repurchases, or other capital restructurings;   gains or losses, realized or unrealized, on real estate investments, or assets held for sale.

Disability – Disability means totally and permanently disabled within the meaning of the Social Security Act, provided you either (a) qualified for disability insurance benefits under such Act, or (b) in the opinion of the organization that administers the Company’s
disability plans, you have a disability which entitles you to such disability insurance benefits except for the fact that you do not have sufficient quarters of coverage or have not satisfied any age requirements under such law.

Retirement – Retirement means your separation from service either (1) at age 60 or above or (2) between ages 55 and 59 with at least 15 years of service.

 

How Your Actual Performance Units are Determined

The Company’s EPS for fiscal 2010 shall determine the actual number of Performance Units, if any, that are credited to your account.  The Payout Matrix shown below indicates the percentage of Performance Units that shall be credited for the respective EPS amounts.

 

The actual number of Performance Units that you earn shall be credited to your account as soon as practicable but in no event later than 2 1⁄2 months after the end of the Performance Cycle.

Vesting of Your Credited Performance Units

The actual Performance Units credited to your account shall vest, and the restrictions on your Performance Units shall lapse, according to the following Vesting Schedule, PROVIDED
YOU REMAIN CONTINUOUSLY EMPLOYED BY THE COMPANY THROUGH THE  VESTING DATE (unless your employment terminates due to your Retirement, Disability, death, job          1

restructuring/reduction in force/unit closing or an Involuntary Separation from Service without Cause under, and as defined in, the Executive Termination Pay Agreement). Your vested Performance Units shall be paid out in shares of Common Stock as soon as practicable on or following
the earlier of (i) your termination of employment as a result of your Retirement, Disability, death, or job restructuring/reduction in force/unit closing, or (ii) the applicable vesting date provided in the vesting table below.  Notwithstanding the foregoing, if you are a specified employee as defined under Section 409A of the Code and the related Treasury regulations thereunder and you terminate your employment with the Company as a result of your Retirement, Disability, death, or job restructuring/reduction
in force/unit closing, your vested Performance Units shall be paid out in shares of Common Stock as soon as practicable following the earlier of (i) the date that is six months following your termination of service due to Retirement, Disability, or job restructuring/reduction in force/unit closing, (ii) the date of your death, or (iii) the applicable vesting date provided in the vesting table below. You shall not be allowed to defer the payment of your shares of Common Stock to a later date.

	
Vesting Dates
	
Percent Vesting

	
March 16, 2011
	
33-1/3%

	
March 16, 2012
	
33-1/3%

	
March 16, 2013
	
33-1/3%

Dividend Equivalents

You shall not have any rights as a stockholder until your Performance Units vest and you are issued shares of Common Stock in cancellation of the vested Performance Units.  However, after your earned Performance Units have been credited to your account, you shall begin to accrue dividend equivalents on such Performance
Units in the amount of any quarterly dividend declared on the Common Stock.  Dividend equivalents shall continue to accrue until your Performance Units vest and you receive actual shares of Common Stock in cancellation of the vested Performance Units.  The dividend equivalents shall be credited as additional Performance Units in your account to be paid out in shares of Common Stock on the vesting date along with the Performance Units to which they relate.  The number of additional
Performance Units to be credited to your account shall be determined by dividing the aggregate dividend payable with respect to the number of Performance Units in your account by the closing price of the Common Stock on the New York Stock Exchange on the dividend payment date.  The additional Performance Units credited to your account are subject to all of the terms and conditions of this Performance Unit award and the Plan and you shall forfeit your additional Performance Units in the event that you
forfeit the Performance Units to which they relate.

Employment Termination

If your employment terminates during the Performance Cycle because of Retirement, Disability, death or job restructuring/reduction in force/unit closing, then you shall be entitled to a prorated number of the Performance Units earned in accordance with the Payout Matrix,
determined as of the end of the Performance Cycle. The proration shall be based on the ratio of (a) the number of calendar days from the Date of Grant to the effective date of termination to (b) the total number of calendar days in the vesting period.  Any Performance Units earned under this termination provision shall be immediately vested and will be distributed as provided in “Vesting of Your Credited Performance Units” above. The
beneficiary listed on your J. C. Penney Company Equity Plan Beneficiary Designation Form shall receive the vested shares covered by the Performance Unit award in the case of termination of employment due to death.

If your employment terminates following the end of the Performance Cycle because of Retirement, Disability, death or job restructuring/reduction in force/unit closing, you shall be entitled to a prorated number of the Performance Units earned under the Payout Matrix.  The proration shall be
based on the ratio of (a) the number of calendar days from the Date of Grant to the effective date of termination to (b) the total number of calendar days in the vesting period. Any Performance Units that have already vested shall be subtracted from the prorated amount and the remaining prorated Performance Units shall vest immediately and will be distributed as provided in “Vesting of Your Credited Performance Units” above.  Any Performance Units which have not already vested or for which
vesting is not accelerated shall expire on such employment termination.  The beneficiary listed on your J. C. Penney Company Equity Plan Beneficiary Designation Form shall receive the vested shares covered by the Performance Unit award in the case of termination of employment due to death.

If your employment terminates due to an Involuntary Separation from Service without Cause under, and as defined in, the Executive Termination Pay Agreement, any outstanding Performance Units shall immediately vest and be payable in shares of JCPenney Common Stock, in an amount equal to (1) if termination occurs prior to
the end of the Performance Cycle, the target number of Performance Units for such Performance Cycle, and (2) if the termination occurs after the end of the Performance Cycle, the number of Performance Units earned for such Performance Cycle, subject to (a) the execution and delivery of a release in such form as may be required by the Company and (b) the expiration of the applicable revocation period for such release.  If you fail to timely execute and deliver the required release or you revoke your
release before the expiration of the applicable revocation period, your Performance Units shall be forfeited and cancelled.

If your employment terminates for any reason other than those specified above, any unvested Performance Units shall be cancelled on the effective date of termination.

2

 

 

Change of Control

Upon Employment Termination (as defined in the Plan) in connection with a Change of Control (as defined in Attachment A) after the end of the Performance Cycle, any outstanding Performance Units shall immediately vest and be payable in shares of JCPenney Common Stock.  If Employment Termination in connection with a Change of
Control occurs prior to the end of the Performance Cycle, the target number of Performance Units for such Performance Cycle shall immediately vest and be payable in shares of JCPenney Common Stock.

Taxes and Withholding

The vesting of any Performance Units and the related issuance of shares of Common Stock, or cash in lieu of fractional shares, shall be subject to the satisfaction of all applicable federal, state and local income and employment tax withholding requirements.  Your withholding rate with respect to this award may not be higher
than the minimum statutory rate.  The Company shall retain and cancel the number of issued shares equal to the value of the required minimum tax withholding in payment of the required minimum tax withholding due or shall require that you satisfy the required minimum tax withholding, if any, or any other applicable federal, state or local income or employment tax withholding by such other means as the Company, in its sole discretion, deems reasonable.

Transferability of Your Performance Units

The Performance Units awarded hereunder are non-transferable.

Effect on Other Benefits

The value of the shares covered by the Performance Unit award shall not be included as compensation or earnings for purposes of any other compensation, retirement, or benefit plan offered to Company associates.

Administration

The Committee has full authority and discretion, subject only to the terms of the Plan, to decide all matters relating to the administration and interpretation of the Plan and this Performance Unit award.  The Committee’s determinations shall be final, conclusive, and binding on you and your heirs, legatees and designees.

This Performance Unit grant does not constitute an employment contract.  It does not guarantee employment for the length of the vesting period or for any portion thereof.

 

 

	
2010 Performance Unit Award Payout Matrix

	  	
2010 PBRSU Payout Matrix

	  	
EPS $
	
Payout %

	
Maximum
	
$1.86
	
200%

	  	
$1.79
	
175%

	  	
$1.72
	
150%

	  	
$1.65
	
125%

	
Target
	
$1.58
	
100%

	  	
$1.51
	
76%

	  	
$1.44
	
52%

	  	
$1.36
	
24%

	
Minimum
	
$1.29
	
0%

 

For EPS results that fall in between the intervals shown above, the payout percent change is approximately 3.5% for each $0.01 change in EPS.

3

 

 

 

 

Attachment A

A Change of Control Event shall have occurred if there is a change of ownership, a change of effective control, or a change in ownership of a substantial portion of the assets of the Company (as “Company” is defined in the J. C. Penney Company, Inc. 2009 Long-Term Incentive  Plan).

	
1.  
	
Change of ownership occurs on the date that a person or persons acting as a group acquires ownership of stock of the Company that together with stock held by such person or group constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company.

	
2.  
	
Notwithstanding whether the Company has undergone a change of ownership, a change of effective control occurs (a) when a person or persons acting as a group acquires within a 12-month period 30 percent of the total voting power of the stock of the Company or (b) a majority of the Board of Directors is replaced within 12 months if not previously approved
by a majority of the members.  A change in effective control also may occur in any transaction in which either of the two corporations involved in the transaction has a Change in Control Event, i.e. multiple change in control events.

	
3.  
	
Change in ownership of a substantial portion of the Company’s assets occurs when a person or persons acting as a group acquires assets that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all assets of the Company immediately prior to the acquisition.  A transfer of assets
by the Company is not treated as a change in the ownership of such assets if the assets are transferred to -

(i) A shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock;

(ii) An entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Company;

(iii) A person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding stock of the Company; or

(iv) An entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in paragraph (iii).

Persons will not be considered to be acting as a group solely because they purchase assets of the Company at the same time, or as a result of the same public offering.  However persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition
of assets, or similar business transaction with the Company.

4

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