Document:

SCSC 10K EX 10.31

Exhibit 10.31

RESTRICTED STOCK UNIT AWARD CERTIFICATE
Non-transferable
GRANT TO
JOHN J. ELLSWORTH
(the “Grantee”)
by ScanSource, Inc. (the “Company”) of
the right to acquire 1,563 shares of its common stock, no par value (the “Shares”)
On May 14, 2012 (the “Grant Date”)
pursuant to and subject to the provisions of the ScanSource, Inc. Amended and Restated 2002 Long-Term Incentive Plan (the “Plan”) and to the terms and conditions set forth in this Award Certificate (the “Award Certificate”). This Award Certificate describes terms and conditions of the Restricted Stock Unit Award (or the “Award”) granted herein and constitutes an agreement between the Grantee and the Company. 
The Award shall become earned and vested only if and to the extent that the conditions stated in Section 2 or Section 3 of the Certificate are met, subject to the other terms of the Award Certificate and the Plan.
IN WITNESS WHEREOF, ScanSource, Inc., acting by and through its duly authorized officers, has caused this Award Certificate to be duly executed. 

	
			
	SCANSOURCE, INC.

	 
	 
	 

	By:
	 
	/s/ Michael L. Baur

	 
	 
	Its:  Authorized Officer

	 
	 
	Grant Date:  May 14, 2012

Exhibit 10.31

AWARD CERTIFICATE TERMS AND CONDITIONS 
1.    Grant of Award. The Company hereby grants to the Grantee, subject to the restrictions and the other terms and conditions set forth in the Plan and in this Award Certificate, a Restricted Stock Unit Award (or the “Award”) for the number of Shares indicated on Page 1 hereof. For the purposes herein, the Shares subject to the Award are units that will be reflected in a book account maintained by the Company and that will be settled in shares of Stock if and only to the extent permitted under the Plan and this Award Certificate. Prior to issuance of any Shares upon vesting of the Award, the Award shall represent an unsecured obligation of the Company, payable (if at all) only from the Company’s general assets. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan. 
2.    Vesting and Earning of the Award. 
(a) The Award shall be deemed earned and vested only if (and to the extent that) the conditions stated in Section 2 are met. The Committee has sole discretion to determine if the Award (or portion thereof) has been earned and vested. 
(b) The Award is subject to both continued service and performance requirements as follows: 
(i) First tranche: Up to fifty percent (50%) of the Shares subject to the Award (that is, 781 shares) shall (except as otherwise provided in Section 2(c) herein) vest and be earned if (A) the Grantee is employed by the Company on June 30, 2013 and has been an employee continuously since the Grant Date and (B) operating income (as defined below, “operating income”) for the Company for the fiscal year ended June 30, 2013 equals or exceeds $114,904,000. If both the continued service condition described in Section 2(b)(i)(A) and the performance condition described in Section 2(b)(i)(B) are not met, then none of the Shares subject to the first tranche of the Award shall vest; that is, both conditions must be met in order for any of such Shares to vest. 
(ii) Second tranche: Up to fifty percent (50%) of the Shares subject to the Award (that is, 782 shares) shall (except as otherwise provided in Section 2(c) herein) vest and be earned if (A) the Grantee is employed by the Company on June 30, 2014 and has been an employee continuously since the Grant Date and (B) operating income for the fiscal year ended June 30, 2014 equals or exceeds $121,627,000. If both the continued service condition described in Section 2(b)(ii)(A) and the performance condition described in Section 2(b)(ii)(B) are not met, then none of the Shares subject to the second tranche of the Award shall vest; that is, both conditions must be met in order for any of such Shares to vest. 
(iii) The Award shall not be deemed vested and earned with respect to a particular tranche until both of the following events have occurred: (A) the completion of the Company’s audited financial statements for the particular fiscal year and (B) the Committee’s written certification regarding if and to the extent the applicable performance goals have been met. 
(iv) For the purposes herein, “operating income” shall mean the amount reflected for the line item identified as Operating Income on the Company’s audited consolidated financial statements for each respective fiscal year referenced above. The Company’s calculation of operating income shall be conclusive and binding absent fraud or manifest and material error. 
(c) Notwithstanding that the conditions referenced in Section 2(b)(i) and/or Section 2(b)(ii) herein may have been met, the Committee shall have sole discretion to reduce (but not increase) the number of Shares deemed earned and vested (but not below 391 shares, that is 50% of the number of shares subject to the particular tranche) if the Committee determines that such reduction is appropriate based on the Committee’s evaluation of the Grantee’s performance in the following areas: (1) acquisitions and integration of acquisitions; (2) organizational development and succession planning; (3) acquisition and implementation of the Company-wide information technology project involving a new enterprise resource planning software package; and (4) any other corporate, divisional or individual criteria determined by the Compensation Committee. 

Exhibit 10.31

The period during which the Shares (or portion thereof) have not yet vested and been earned (or been forfeited) shall be referred to herein as the “Restricted Period.” 
3.     Effect of Termination; Forfeiture. 
(a) If the Grantee’s employment with the Company terminates for any reason other than as set forth in Section 3(b) herein, then the Grantee shall forfeit all of the Grantee’s right, title and interest in the Award (and the underlying Shares), to the extent not vested and earned as of the date of the Grantee’s termination of employment, and such Restricted Shares shall revert to the Company (without the payment by the Company of any consideration for such Shares) immediately following the event of forfeiture. 
(b) Notwithstanding the provisions of Section 2 and Section 3(a) herein, the Award shall be deemed earned and vested on the earliest to occur of the following: 
(i) as to all of the Shares, upon the termination of the Grantee’s employment due to death or Disability; or 
(ii) as to all of the Shares, upon the Grantee’s termination of employment by the Company without Cause or by the Grantee for Good Reason if such termination occurs within twelve (12) months after the effective date of a Change in Control (or as may otherwise be permitted under the Plan). 
4.     Restrictions. The Award and the underlying Shares are subject to the following restrictions:  No right or interest of the Grantee in the Award, to the extent restricted, may be pledged, encumbered or hypothecated to or in favor of any party other than the Company or an Affiliate or shall be subject to any lien, obligation or liability of the Grantee to any other party other than the Company or an Affiliate. Except as otherwise provided in the Plan, the Award to the extent restricted, shall not be assignable or transferable by the Grantee other than by will or the laws of descent and distribution. Prior to vesting, the Shares subject to the Award may not be sold, transferred, exchanged, assigned, pledged, hypothecated or otherwise encumbered. The restrictions imposed under this section shall apply to all Shares or other securities issued with respect to Shares hereunder in connection with any merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure affecting the Stock of the Company. 
5.     Settlement of Award; Delivery of Shares. No certificate or certificates for the Shares shall be issued at the time of grant of the Award. A certificate or certificates for the Shares underlying the Award (or, in the case of uncertificated Shares, other written evidence of ownership in accordance with applicable laws) shall be issued in the name of the Grantee (or his beneficiary) only in the event, and to the extent, that the Award has vested. Notwithstanding the foregoing, the following provisions shall apply: (a) any Shares or other benefits payable pursuant to the Award shall, upon vesting of the Award, be distributed to the Grantee (or his beneficiary) no later than the later of (i) the 15th day of the third month following the end of the Grantee’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or (ii) the 15th day of the third month following the end of the Company’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture; (b)  if the Grantee is or may be a “specified employee” (as defined under Code Section 409A), and the distribution is due to separation from service, then such distribution shall be subject to delay as provided in Section 16.16(c) of the Plan (or any successor provision thereto); and (c) delivery of the Shares may be postponed for such period as may be required for the Company with reasonable diligence to comply, if deemed advisable by the Company, with registration requirements under the 1933 Act, listing requirements under the rules of any stock exchange, and requirements under any other law or regulation applicable to the issuance or transfer of the Shares.
6.     Voting and Dividend Rights. The Grantee shall not be deemed to be the holder of any Shares subject to the Award and shall not have any dividend rights, voting rights or other rights as a shareholder unless and until (and only to the extent that) the Award has vested and certificates for such Shares have been issued to him (or, in the case of uncertificated shares, other written evidence of ownership in accordance with applicable laws shall have been provided). 
7.     No Right of Continued Employment. Nothing in this Award Certificate shall interfere with or limit in any way the right of the Company or any Affiliate to terminate the Grantee’s employment or service at any time, nor confer upon the Grantee any right to continue in the employ or service of the Company or any Affiliate. 

Exhibit 10.31

8.     Payment of Taxes. The Grantee will, no later than the date as of which any amount related to the Shares first becomes includable in the Grantee’s gross income for federal income tax purposes, pay to the Company, or make other arrangements satisfactory to the Committee regarding payment of, any federal, state, local and foreign taxes (including FICA taxes) required by law to be withheld with respect to such amount. The withholding requirement may be satisfied, in whole or in part, at the election of the Company, by withholding from this award Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. The obligations of the Company under this Award Certificate will be conditional on such payment or arrangements, and the Company, or, where applicable, its Affiliates, will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Grantee. The Grantee acknowledges that the Company has made no warranties or representations to the Grantee with respect to the legal, tax or investment consequences (including but not limited to income tax consequences) related to the grant of the Award or receipt or disposition of the Shares (or any other benefit), and the Grantee is in no manner relying on the Company or its representatives for legal, tax or investment advice related to the Award or the Shares. The Grantee acknowledges that there may be adverse tax consequences upon the grant of the Award and/or the acquisition or disposition of the Shares (or other benefit) subject to the Award and that the Grantee has been advised that he should consult with his or her own attorney, accountant and/or tax advisor regarding the transactions contemplated by the Award and this Award Certificate. The Grantee also acknowledges that the Company has no responsibility to take or refrain from taking any actions in order to achieve a certain tax result for the Grantee. 
9.     Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Award Certificate and this Award Certificate shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Certificate, the provisions of the Plan shall be controlling and determinative (unless the Committee determines otherwise). 
10.     Successors. This Award Certificate shall be binding upon any successor of the Company, in accordance with the terms of this Award Certificate and the Plan. 
11.     Severability. If any one or more of the provisions contained in this Award Certificate is invalid, illegal or unenforceable, the other provisions of this Award Certificate will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 
12.     Notice. Notices and communications under this Award Certificate must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to ScanSource, Inc., 6 Logue Court, Greenville, South Carolina 29615, Attn: Secretary, or any other address designated by the Company in a written notice to the Grantee. Notices to the Grantee will be directed to the address of the Grantee then currently on file with the Company, or at any other address given by the Grantee in a written notice to the Company. 
13.     Beneficiary Designation. The Grantee may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Grantee hereunder and to receive any distribution with respect to the Award upon the Grantee’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights hereunder is subject to all terms and conditions of this Award Certificate and the Plan and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Grantee, the Grantee’s rights with respect to the Award may be exercised by the legal representative of the Grantee’s estate, and payment shall be made to the Grantee’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by the Grantee at any time provided the change or revocation is filed with the Company.exhibit4a.htm

Exhibit 4(a)

 

 

PPL ELECTRIC UTILITIES CORPORATION

 

TO

 

 

THE BANK OF NEW YORK MELLON

 

 

Trustee

 

_____________________________

 

 

Supplemental Indenture No. 14

Dated as of August 1, 2012

 

_____________________________

 

 

Supplemental to the Indenture

dated as of August 1, 2001

 

_____________________________

 

 

Establishing Terms of

First Mortgage Bonds, 2.50% Series due 2022

 

  

  

  

Supplemental Indenture No. 14

 

SUPPLEMENTAL INDENTURE No. 14, dated as of August 1, 2012, made and entered into by and between PPL ELECTRIC UTILITIES CORPORATION, a corporation of the Commonwealth of Pennsylvania, having its principal corporate offices at Two North Ninth Street, Allentown, Pennsylvania 18101 (hereinafter sometimes called the “Company”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, having its corporate trust office at 101 Barclay Street, 4th Floor, New York, New York 10286 (hereinafter sometimes called the “Trustee”), as Trustee under the Indenture, dated as of August 1, 2001 (hereinafter called the “Original Indenture”), this Supplemental Indenture No. 14 being supplemental thereto.  The Original Indenture and any and all indentures and instruments supplemental thereto are hereinafter sometimes collectively called the “Indenture.”

 

RECITALS OF THE COMPANY

 

The Original Indenture was authorized, executed and delivered by the Company to provide for the issuance from time to time of its Securities (such term and all other capitalized terms used herein without definition having the meanings assigned to them in the Original Indenture), to be issued in one or more series as contemplated therein, and to provide security for the payment of the principal of and premium, if any, and interest, if any, on such Securities.

 

The Company has heretofore executed and delivered to the Trustee Supplemental Indentures for the purposes recited therein and for the purpose of creating series of securities as set forth in Schedule A hereto.

 

Pursuant to Article Three of the Original Indenture, the Company wishes to establish a fifteenth series of Securities, such series of Securities to be hereinafter sometimes called “Securities of the Fifteenth Series.”

 

As contemplated in Section 301 of the Original Indenture, the Company further wishes to establish the designation and certain terms of the Securities of the Fifteenth Series.  The Company has duly authorized the execution and delivery of this Supplemental Indenture No. 14 to establish the designation and certain terms of the Securities of the Fifteenth Series and has duly authorized the issuance of such Securities; and all acts necessary to make this Supplemental Indenture No. 14 a valid agreement of the Company, and to make the Securities of the Fifteenth Series valid obligations of the Company, have been performed.

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 14 WITNESSETH, that, for and in consideration of the premises and of the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of the Holders of the Securities of the Fifteenth Series, as follows:

 

ARTICLE ONE

 

Fifteenth Series of Securities

 

SECTION 101. There is hereby created a series of Securities designated “First Mortgage Bonds, 2.50% Series due 2022,” and the Securities of such series shall have the terms provided therefor in this Article One of this Supplemental Indenture No. 14, shall be limited in aggregate principal amount (except as contemplated in Section 301(b) of the Original Indenture) to $250,000,000, and shall have such terms as are hereby established for such Securities of the Fifteenth Series as contemplated in Section 301 of the Original Indenture.  The form or forms and additional terms of the Securities of the Fifteenth Series shall be established in an Officer’s Certificate of the Company, as contemplated by Section 201 of the Original Indenture.

 

SECTION 102. Covenants.  So long as any Securities of the Fifteenth Series shall remain Outstanding, the following shall be an additional covenant of the Company under the Indenture:  So long as any Securities of the Fifteenth Series shall remain Outstanding, the Company shall not cause or permit the Release Date to be established, as contemplated in Section 1811 of the Original Indenture.

 

SECTION 103. Satisfaction and Discharge.  The Company hereby agrees that, if the Company shall make any deposit of money and/or Eligible Obligations with respect to any Securities of the Fifteenth Series, or any portion of the principal amount thereof, as contemplated by Section 801 of the Indenture, the Company shall not deliver an Officer’s Certificate described in clause (z) in the first paragraph of said Section 801 unless the Company shall also deliver to the Trustee, together with such Officer’s Certificate, either:

 

(a) an instrument wherein the Company, notwithstanding the satisfaction and discharge of its indebtedness in respect of such Securities, shall retain the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee or Paying Agent such additional sums of money, if any, or additional Eligible Obligations (meeting the requirements of Section 801), if any, or any combination thereof, at such time or times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Securities or portions thereof, all in accordance with and subject to the provisions of said Section 801; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an independent public accountant of nationally recognized standing, selected by the Trustee, showing the calculation thereof (which opinion shall be obtained at the expense of the Company); or

 

(b) an Opinion of Counsel to the effect that the Holders of such Securities, or portions of the principal and amount thereof, will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect thereof and will be subject to United States federal income tax on the same amounts, at the same times and in the same manner as if such satisfaction and discharge had not been effected.

 

ARTICLE TWO

 

Miscellaneous Provisions

 

SECTION 201. This Supplemental Indenture No. 14 is a supplement to the Original Indenture, as heretofore amended and supplemented.  As supplemented by this Supplemental Indenture No 14, the Original Indenture, as heretofore amended and supplemented, is in all respects ratified, approved and confirmed, and the Original Indenture, as heretofore amended and supplemented, and this Supplemental Indenture No. 14 shall together constitute the Indenture.

 

SECTION 202. The recitals contained in this Supplemental Indenture No. 14 shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness and makes no representations as to the validity or sufficiency of this Supplemental Indenture No. 14.

 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

  

  

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 14 to be duly executed as of the day and year first written above.

 

PPL ELECTRIC UTILITIES CORPORATION

 

	  	  	
By

	

/s/ Russell R. Clelland                                                  

	  	  	  	
Name:  Russell R. Clelland

	  	  	  	
Title:  Assistant Treasurer

	  	  	  	  

 

 

THE BANK OF NEW YORK MELLON, as Trustee

 

	  	  	
By

	

   /s/ Teisha Wright                                                           

	  	  	  	
Name:  Teisha Wright

	  	  	  	
Title:  Vice President

 

  

  

  

	
COMMONWEALTH OF PENNSYLVANIA

	
)

	  
	  	
)

	
ss.:

	
COUNTY OF LEHIGH

	
)

	  

 

On this 22nd day of August, 2012, before me, a notary public, the undersigned, personally appeared Russell R. Clelland, who acknowledged himself to be the Assistant Treasurer of PPL ELECTRIC UTILITIES CORPORATION, a corporation of the Commonwealth of Pennsylvania and that he, as such Assistant Treasurer, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Assistant Treasurer.

 

In witness whereof, I hereunto set my hand and official seal.

 

	  	  	

   /s/ Diane M. Koch                                                              

	  	  	
Notary Public

	  	  	
[Seal]

	  	  	  

  

  

  

 

	STATE OF NEW YORK	
)

	  
	  	
)

	
ss.:

	
COUNTY OF NEW YORK

	
)

	  

On this 24th day of August, 2012, before me, a notary public, the undersigned, personally appeared Teisha Wright, who acknowledged himself/herself to be a Vice President of THE BANK OF NEW YORK MELLON, a corporation and that he/she, as Vice President, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself or herself as Vice President.

 

In witness whereof, I hereunto set my hand and official seal.

 

	  	By:	

/s/Peter Lopez                                                

	  	  	Notary Public 
	 	 	[Seal]

 

The Bank of New York Mellon hereby certifies that its precise name and address as Trustee hereunder are:

 

The Bank of New York Mellon

101 Barclay Street, 4th Floor

New York, New York 10286

Attn:  Global Structured Finance

 

	  	THE BANK OF NEW YORK MELLON, as Trustee
	  	  	  
	  	  	  
	  	By:   	

/s/                                                                                

  

  

  

 

SCHEDULE A

 

	
Supplemental Indenture No.

	
Dated as of

	
Series

	
Series Designation

	
Principal Amount Authorized

	
Principal Amount Issued

	
Principal Amount Outstanding1

	
1

	
August 1, 2001

	
First

	
Senior Secured Bonds,

5 7/8% Series due 2007

	
$300,000,000

	
$300,000,000

	
None

	
1

	
August 1, 2001

	
Second

	
Senior Secured bonds,

6 1⁄4% Series due 2009

	
$500,000,000

	
$500,000,000

	
None

	
2

	
February 1, 2003

	
Third

	
Senior Secured Bonds, 3.125% Pollution Control Series due 2008

	
$90,000,000

	
$90,000,000

	
None

	
3

	
May 1, 2003

	
Fourth

	
Senior Secured Bonds, 4.30% Series due 2013

	
$100,000,000

	
$100,000,000

	
None

	
4

	
February 1, 2005

	
Fifth

	
Senior Secured Bonds, 4.70% Pollution Control Series due 2029

	
$115,500,000

	
$115,500,000

	
$115,500,000

	
5

	
May 1, 2005

	
Sixth

	
Senior Secured Bonds, 4.75% Pollution Control Series due 2027

	
$108,250,000

	
$108,250,000

	
$108,250,000

	
6

	
December 1, 2005

	
Seventh

	
Senior Secured Bonds, 4.95% Series due 2015

	
$100,000,000

	
$100,000,000

	
$100,000,000

	
6

	
December 1, 2005

	
Eighth

	
Senior Secured Bonds, 5.15% Series due 2020

	
$100,000,000

	
$100,000,000

	
$100,000,000

	
7

	
August 1, 2007

	
Ninth

	
Senior Secured Bonds, 6.45% Series due 2037

	
$250,000,000

	
$250,000,000

	
$250,000,000

	
8

	
October 1, 2008

	
Tenth

	
Senior Secured Bonds, 7.125% Series due 2013

	
$400,000,000

	
$400,000,000

	
None

	
9

	
October 1, 2008

	
Eleventh

	
Senior Secured Bonds, Variable Rate Pollution Control Series 2008

	
$90,000,000

	
$90,000,000

	
$90,000,000

	
10

	
May 1, 2009

	
Twelfth

	
First Mortgage Bonds, 6.25% Series due 2039

	
$300,000,000

	
$300,000,000

	
$300,000,000

	
11

	
July 1, 20112

	
—

	
—

	
—

	
—

	
—

	
12

	
July 1, 2011

	
Thirteenth

	
First Mortgage Bonds, 5.20% Series due 2041

	
$250,000,000

	
$250,000,000

	
$250,000,000

	
13

	
August 1, 2011

	
Fourteenth

	
First Mortgage Bonds, 3.00% Series due 2021

	
$400,000,000

	
$400,000,000

	
$400,000,000

__________________________________ 

1   As of August 1, 2012. 

2   Supplemental Indenture No. 11 provided for certain amendments to the Original Indenture and did not provide for the establishment of any series of Securities.

 

A-1

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