Document:

ex-10.5

 

 PROMISSORY NOTE
 

 	 	
	 $__________
	 _________, 2018

 

 FOR VALUE RECEIVED, the undersigned, HOLLY BROTHERS PICTURES, INC. (herein called the “Company”), a corporation organized and existing under the laws of the State of Nevada, with its principal place of business at 8221 E. Washington Street, Chagrin Falls, OH 44023, hereby promises to pay to the order of _____________, (the “Lenders”), at such place as the Lenders may from time to time designate in writing, the sum of the principal sum of ________________ DOLLARS, on or before July 31, 2018 (the “Maturity Date”), with interest on the unpaid balance thereof at the rate of ten percent (10%) per annum from the date hereof, payable on the Maturity Date, until this Note has been paid in full.  Payments of principal of and interest on this Note are to be made in lawful money of the United States of America.
 

 SECTION 1.
 PAYMENTS.
 

 Section 1.1.
 Payment on Maturity.  On the Maturity Date, the Company will pay the then outstanding principal amount of this Note together with any accrued and unpaid interest thereon.
 

 Section 1.2.
 Optional Prepayments.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, this Note, at 100% of the principal amount so prepaid, together with accrued and unpaid interest thereon but without any premium.
 

 SECTION 2.
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
 

 The Company represents and warrants to the Lenders that:
 

 Section 2.1.
 Organization; Power and Authority.  The Company is a corporation duly organized validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company.  The Company has the corporate power and authority to own or hold under lease the properties it owns or holds under lease, to transact the business it transacts, to execute and deliver this Note and to perform the provisions of this Note.
 

 Section 2.2.
 Authorization, Etc.  This Note has been duly authorized by all necessary corporate action on the part of the Company, and this Note constitutes the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
 

 

 

 
 

 Section 2.3.
 Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of this Note will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any lien in respect of any property of the Company under (1) its corporate charter or by-laws, or (2) any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease or any other material agreement or instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or governmental authority applicable to the Company or (c) violate any provision of any statute or other rule or regulation of any governmental authority applicable to the Company.
 

 SECTION 3.
 COVENANTS.
 

 The Company covenants that so long as this Note is outstanding:
 

 Section 3.1.
 Compliance with Law.  The Company will, and will cause each of its subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, environmental laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations hereunder or (c) the validity or enforceability of this Note (a “Material Adverse Effect”).
 

 Section 3.2.
 Corporate Existence, Etc.  The Company will at all times preserve and keep in full force and effect its corporate existence.  The Company will at all times preserve and keep in full force and effect the corporate existence of each of its subsidiaries (unless merged into the Company or a subsidiary) and all rights and franchises of the Company and its subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect.
 

 SECTION 4.
 EVENT OF DEFAULT.
 

 An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:
 

 (a)
 the Company defaults in the payment of (i) any principal on this Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or otherwise, or (ii) any interest on this Note for more than five days after the same becomes due and payable; or
 

 (b)
 the Company defaults in the performance of or compliance with any term contained in Section 3; or
 

 

 2
 

 
 

 (c)
 the Company (1) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (2) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, seeking to adjudicate it as a bankrupt or insolvent, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (3) makes a general assignment for the benefit of its creditors, (4) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property or (5) takes corporate action for the purpose of any of the foregoing; or
 

 (d)
 a court or governmental authority of competent jurisdiction enters an order appointing, without consent by the Company, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, or any such petition shall be filed against the Company and such petition shall not be dismissed within 60 days.
 

 SECTION 5.
 REMEDIES ON DEFAULT, ETC.
 

 Section 5.1.
 Acceleration.  (a) If an Event of Default with respect to the Company described in paragraph (c) or (d) of Section 4 (other than an Event of Default described in clause (1) of paragraph (c) or described in clause (5) of paragraph (c) by virtue of the fact that such clause encompasses clause (1) of paragraph (c)) has occurred this Note then shall automatically become immediately due and payable.
 

 (b)
 If any other Event of Default has occurred and is continuing or if any Event of Default described in clause (a) of Section 5.1 has occurred and is continuing, the Lenders may, at any time at its option, by notice to the Company, declare this Note to be immediately due and payable.
 

 Upon this Note becoming due and payable under this Section 5.1, whether automatically or by declaration, this Note will forthwith mature and the entire unpaid principal amount of this Note, plus all accrued and unpaid interest, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.
 

 Section 5.2.
 Rescission.  At any time after this Note has been declared due and payable pursuant to clause (b) of Section 5.1, the Lenders, by written notice to the Company, may rescind and annul any such declaration and its consequences.
 

 SECTION 6. 
 USE OF PROCEEDS.
 

 Section 6.1.
 Use of Proceeds.  The Lenders acknowledge that the sole use of proceeds from this Note shall be to repurchase and retire 2,661,172 shares of Company common stock.
 

 

 3
 

 
 

 SECTION 7.
 AMENDMENT AND WAIVER.
 

 This Note may be amended, and the observance of any term hereof may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Lenders.  Any amendment or waiver consented to as provided in this Section 7 is binding upon the Lenders, each subsequent holder of this Note and upon the Company without regard to whether this Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and the Lenders nor any delay in exercising any rights hereunder shall operate as a waiver of any rights of the Lenders.  As used herein, the term “this Note” and references hereto shall mean this Promissory Note as it may from time to time be amended or supplemented.
 

 SECTION 8.
 NOTICES.
 

 All notices and communications provided for hereunder shall be in writing and sent (a) by telefacsimile if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), (b) by registered or certified mail with return receipt requested (postage prepaid), (c) by a recognized overnight delivery service (charges prepaid) or (d) by hand delivery.  Any such notice must be sent:
 

 (1)
 if to the Lenders, to their addresses in the books and records of the Company, or at such other address as the Lenders shall have specified to the Company in writing,
 

 (2)
 if to any subsequent holder of this Note, to such holder at such address as such other holder shall have specified to the Company in writing, or
 

 (3)
 if to the Company, to the Company at its address set forth at the beginning hereof to the attention of the President, or at such other address as the Company shall have specified to the Lenders in writing.
 

 Notices under this Section 8 will be deemed given only when actually received.
 

 SECTION 9.
 MISCELLANEOUS.
 

 Section 9.1.
 Successors and Assigns.  All covenants and other agreements contained in this Note by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns,  whether so expressed or not. Notwithstanding the foregoing, this Note may only be enforced by the Lenders, and may not be transferred, sold, or assigned. Any attempted transfer, sale, or assignment by the Lenders shall be null and void.
 

 Section 9.2.
 Expenses.  The Company agrees to pay or reimburse the Lenders on demand for and save the Lenders harmless against any and all losses, liabilities, costs and expenses, including attorneys’ fees and expenses, incurred by the Lenders in connection with the enforcement or preservation of any of the Lenders’ rights and remedies under this Note including, without limitation, the collection of this Note.
 

 4
 

 
 

 Section 9.3.
 Survival of Representations and Warranties; Entire Agreement.  All representations and warranties contained herein shall survive the execution and delivery of this Note, the transfer by the Lenders of this Note or any portion hereof or interest herein and the payment of this Note, and may be relied upon by any subsequent holder of this Note, regardless of any investigation made at any time by or on behalf of the Lenders or any subsequent holder of this Note.  This Note embodies the entire agreement and understanding between the Company and the Lenders and supersedes all prior agreements and understandings relating to the subject matter hereof.
 

 Section 9.4.
 Severability.  Any provision of this Note that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.
 

 Section 9.4.
 Construction.  Each covenant contained in this Note shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision in this Note refers to action to be taken by any person, or which such person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such person.
 

 Section 9.5.
 Governing Law.  This Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of Nevada excluding choice-of-law principles of the law of such jurisdiction that would require the application of the laws of any other jurisdiction.
 

 HOLLY BROTHERS PICTURES, INC.
 

 

 

 By: ______________________________
 

 Name: ____________________________
 

 Title:______________________________
 

 

 

 

 

 

 

 

 

 

 

 

 5omn-11302017ex1010

EXHIBIT 10.10  OMNOVA Solutions Inc. Participant: [participant name] Global ID: [participant global ID] Award Type: Restricted Stock Units Plan Name: 2017 EIP - Restricted Share Units Award Date: [award date] Award Expiration Date: N/A Total Granted: [total granted] Award Price: USD [award price per share] Vesting Schedule Shares/Options Awarded Vest Date [amount vesting 1] [vest date 1] [amount vesting 2] [vest date 2] [amount vesting 3] [vest date 3]    

 

RESTRICTED SHARE UNITS AGREEMENT This RESTRICTED SHARE UNITS AGREEMENT (the “Agreement”) is made and entered into between OMNOVA Solutions Inc., an Ohio corporation (“Company”), and the individual identified as the “Participant” (such individual, the “Recipient”) on the cover page preceding this Agreement (such cover page, the “Grant Report”), effective as of the Award Date specified on the Grant Report. WHEREAS, under the terms of the OMNOVA Solutions Inc. 2017 Equity Incentive Plan as in effect on the date hereof (the “Plan”), the Company is authorized to issue restricted share units.  NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth in this Agreement and for other good and valuable consideration, the parties hereto agree as follows: 1. Grant of Restricted Share Units. In consideration for the services to be rendered by the Employee to the Company, the Company hereby issues to the Employee, the number of restricted share units under the Plan identified as the Total Granted on the Grant Report (the “Restricted Share Units”). Each Restricted Share Unit represents the right to receive one common share, par value $0.10 per share, of the Company (each, a “Common Share”), subject to the terms and conditions set forth in this Agreement and the Plan. The Restricted Share Units shall be credited to a separate account maintained for the Employee on the books and records of the Company (the “Account”). All amounts credited to the Account shall continue for all purposes to be part of the general assets of the Company.  2. Vesting.  (a) Ordinary Vesting.  Except as otherwise provided herein, the Restricted Share Units will vest and no longer be subject to any restrictions in accordance with the Vesting Schedule set forth in the Grant Report, in such vesting amounts and on such vesting dates as specified therein (each date on which Restricted Share Units vest, a “Vesting Date”), provided that the Recipient is an employee of the Company on each such Vesting Date (the period during which restrictions apply prior to each Vesting Date, the “Restricted Period”). (b) Separation from Service Due to Death or Disability. If Recipient experiences a Separation from Service from the Company by reason of his or her death or Disability, the Vesting Date for all unvested Restricted Share Units shall be deemed to be the date of such Separation from Service, all unvested Restricted Share Units shall vest, all restrictions thereon shall lapse, and the Common Shares underlying the unvested Restricted Share Units shall be delivered to the Recipient or the Recipient’s Beneficiary subject to the terms of this Agreement. (c) Separation from Service Due to Retirement. If Recipient’s experiences a Separation from Service from the Company by reason of his or her Retirement, the Restricted Share Units shall continue to vest in accordance with Section 2(a) hereof.  (d) Change in Control Vesting. i. Failure to Receive a Replacement Award. If, prior to or in connection with the Change in Control, Recipient does not receive a Replacement Award in exchange for his or her unvested Restricted Share Units, then the Vesting Date of the unvested Restricted Share Units shall be deemed to be the date and time that is immediately prior to the Change in Control, and at such time all restrictions thereon shall lapse and the Common Shares there underlying shall be delivered to Recipient. Any Replacement Award granted to Recipient shall be deemed a complete and full substitution for, and shall be accepted in full satisfaction of, the unvested Restricted Share Units. 

 

ii. Separation from Service Following Change in Control. If Recipient has received a Replacement Award prior to or in connection with a Change in Control and, following the Change in Control, Recipient terminates his or her employment for Good Reason, or Recipient is involuntarily terminated for reasons other than for Cause, in either case within twenty four (24) months of the Change in Control, then the Vesting Date of the Replacement Award shall be deemed to be the date of such termination, all restrictions thereon shall lapse, and the Common Shares there underlying shall be delivered to Recipient. (e) Other Separations from Service. If Recipient’s employment by the Company terminates other than as provided for in Sections 2(b), 2(c), or 2(d) above, then the Restricted Share Units which have not vested prior to such date of termination will be forfeited and cancelled as of such date. Notwithstanding the foregoing, by a majority vote, the Committee shall have the right, in its sole discretion, to waive the forfeiture of all or any portion of such unvested Restricted Share Units subject to such terms as it deems appropriate. 3. Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the Restricted Share Units are settled in accordance with Section 7, neither the Restricted Share Units nor any rights relating thereto may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Recipient. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Share Units or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Restricted Share Units will be forfeited by the Recipient and all of the Recipient’s rights to such units shall immediately terminate without any payment or consideration by the Company. 4. Shareholder Rights. The Recipient shall not have any rights of a shareholder with respect to the Common Shares underlying the Restricted Share Units unless and until the Restricted Share Units vest and are settled by the issuance of such Common Shares. Upon and following the settlement of the Restricted Share Units, the Recipient shall be the record owner of the Common Shares issued in satisfaction of the Restricted Share Units unless and until such shares are sold or otherwise disposed of by Recipient, and as record owner Recipient shall be entitled to all rights of a shareholder of the Company (including voting rights). 5. Automatic Dividend Reinvestment. If, prior to the settlement date, the Company declares a cash or stock dividend on its Common Shares, then, on the payment date of the dividend, the Account shall be credited with dividend equivalents in an amount equal to the dividends that would have been paid to Recipient if Recipient had held an amount of Common Shares equal to the number of Restricted Share Units on such payment date. The dividend equivalents credited to the Recipient’s Account will be deemed to be reinvested in additional Restricted Share Units (rounded to the nearest whole share) and will be subject to the same terms and conditions as the Restricted Share Units to which they are attributable and shall vest or be forfeited at the same time as the Restricted Share Units to which they are attributable. Such additional Restricted Share Units shall also be credited with additional Restricted Share Units as any further dividends are declared. 6. Adjustments. If any change is made to the outstanding Common Shares or the capital structure of the Company, the Restricted Share Units shall be adjusted or terminated to the extent contemplated by Section 11 of the Plan. 7. Settlement. Subject to Section 9 below, promptly following the Vesting Date, and in any event no later than two and one half months following the Vesting Date, the Company shall (a) deliver to Recipient the number of Common Shares equal to the number of Restricted Share Units so vesting; and (b) enter Recipient’s name on the books of the Company as the shareholder of record with respect to the Common Shares so delivered to Recipient (the date on which such settlement occurs, the “Settlement Date”). 

 

8. Beneficiary Designation. Recipient may designate any beneficiary or beneficiaries (contingently or successively) to whom the Restricted Share Units are to be paid if Recipient dies during the Restricted Period, and may at any time revoke or change any such designation. Absent such designation, any Common Shares which are to be delivered to the Recipient in respect of Restricted Share Units under this Agreement will be payable to Recipient’s estate upon Recipient’s death. The designation of a Beneficiary will be effective only when Recipient has delivered a completed Designation of Beneficiary form to the Company’s Secretary or followed other appropriate Beneficiary designation procedures established by the Company’s Secretary from time to time. A subsequent Beneficiary designation will revoke a prior designation. 9. Withholding of Taxes. Any taxes that the Company determines are required to be withheld upon settlement of the Restricted Share Units will be satisfied by the Company withholding from the Common Shares deliverable to Recipient an aggregate number of Common Shares having a value equal to Recipient’s tax withholding obligation (based on the Market Value per Share on the Settlement Date).  To the extent that the amount of such taxes exceeds the value of the Common Shares to be delivered under this Agreement (or such taxes are required to be withheld at any time other than the Settlement Date), then the Company shall have the right in its sole discretion to (a) require Recipient to pay or provide for payment of the required tax withholding, or (b) deduct the required tax withholding from any other compensation payable in cash to Recipient. 10. Defined Terms. Capitalized terms used, but not defined, herein, shall have the meetings provided to them in the Plan. 11. Disputes and Conflicts. The Committee shall have the authority to determine all disputes and controversies concerning the interpretation of this Agreement. All determinations and decisions made in good faith by the Committee pursuant to the provisions of the Plan and all related orders and resolutions of the Committee made in good faith shall be final, conclusive and binding on all persons. In the event of any conflict between this Agreement and the Plan, the terms of the Plan shall control. 12. Notices. All written notices and communications directed to the Company pursuant to this Agreement must be addressed to OMNOVA Solutions Inc., 25435 Harvard Road, Beachwood, Ohio 44122; Attention: Corporate Secretary. All communications directed to Recipient pursuant to this Agreement will be mailed to the Recipient’s current address as recorded on the payroll records of the Company. 13. Governing Law. To the extent not preempted by federal law, this Agreement will be governed by and interpreted in accordance with the laws of the State of Ohio. 14. Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this agreement comply with Section 409A of the Code and in no event shall the Company be liable hereunder for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Recipient on account of non-compliance with Section 409A of the Code. 15. Grant Acceptance. In consideration of my receipt of the grant of Restricted Share Units as specified on the Grant Report, I acknowledge by accepting the grant (evidenced in writing or through my acknowledgement of the grant through the Company’s third-party equity plan administrator), I agree to the terms, conditions and restrictions set forth in this Agreement and the Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]