Document:

Exhibit 10.90

 

May 20, 2003

 

Horizon Group Properties, Inc.

77 West Wacker Drive

Suite 4200

Chicago, Illinois 60601

 

Re:                               $2.0
Million Loan to Horizon Group Properties, Inc.

 

Gentlemen:

 

This letter is to confirm our agreement with respect to the proposed loan
to be made to Horizon Group Properties, Inc. (“Horizon”) by Pleasant Lake Apts.
Limited Partnership and Pleasant Lake Apts. Corp. (jointly “Pleasant Lake”) in
the amount of Two Million Dollars ($2,000,000.00), subject to and upon the
following terms and conditions:

 

1.                                       Pleasant
Lake shall loan to Horizon the principal sum of Two Million Dollars
($2,000,000.00), the proceeds of which shall be used to (a) purchase the
existing outstanding mortgage loans from Wells Fargo Bank Minnesota, N.A., as
Trustee (“Wells Fargo”), on the Daleville Outlet Center and the Somerset Outlet
Center, owned by the Daleville, Sommerset, Tulare Outlet Centers, L.P. (the
“Partnership”) located in Daleville, Indiana and Somerset, Pennsylvania (the
“Daleville and Somerset Properties”), in the original amounts of Ten Million
Eight Hundred Seventy-Five Thousand Dollars ($10,875,000.00) on the Daleville
Outlet Center and Two Million Six Hundred Fifty Thousand Dollars
($2,650,000.00) on the Somerset Outlet Center (the “AR Cap Mortgage Loans”);
and (b) bring current the approximately Eight Million Nine Hundred Thousand
Dollar ($8,900,000.00) outstanding mortgage loan from Wells Fargo on the outlet
center owned by the Partnership in Tulare, California (“Tulare Property”).

 

2.                                       The
loan shall bear interest at the rate of five percent (5%) per annum and be
evidenced by a demand promissory note in form and substance satisfactory to
Pleasant Lake.

 

 

3.                                       Upon
acquisition of the AR Cap Mortgage Loans, Horizon shall cancel the indebtedness
underlying same and agrees to sell or cause to be sold to Pleasant Lake and/or
its nominees all of the limited partnership interests of Horizon Group
Properties, L.P. (a Delaware limited partnership) in the Partnership and all of
the general partnership interest of Daleville, Sommerset, Tulare Finance
Company, Inc. in the Partnership for an aggregate purchase price of One Million
Nine Hundred Eighty Thousand Dollars ($1,980,000.00).

 

4.                                       Horizon
covenants and agrees not to transfer or further encumber the Daleville and
Somerset Properties or permit any transfer or issuance of partnership interests
in the Partnership without the prior consent of Pleasant Lake and shall, upon
the written request of Pleasant Lake, grant or cause to be granted to Pleasant
Lake and/or its affiliates, a security interest in (a) all of the outstanding
partnership interests in the Partnership; (b) the shares of stock owned by
Horizon in Daleville, Sommerset, Tulare Finance Company, Inc.; and (c) upon
acquisition by Horizon, the AR Cap Mortgage Loans (if not canceled as provided
in Paragraph 3 above).

 

5.                                       Horizon
represents and warrants to Pleasant Lake that it has obtained authorization and
approval of this agreement and the loan transaction contemplated hereby from
its Board of Directors and any other necessary party and that such loan and the
transaction contemplated hereby do not and willnot violate any other agreement,
promissory note or other instrument to which Horizon is a party or may be
bound.

 

Please
confirm your agreement to the foregoing by signing where indicated below.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  PLEASANT LAKE APTS.

  LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Pleasant
  Lake Apts. Corp.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Howard
  Amster, President

  
	
   

  	
   

  
	
   

  	
  Approved
  and Agreed:

  
	
   

  	
   

  
	
   

  	
  HORIZON GROUP PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

2Exhibit
10.1

 

AMENDMENT

TO THE QUANEX CORPORATION

1996 EMPLOYEE STOCK OPTION AND RESTRICTED STOCK PLAN

 

THIS AGREEMENT by Quanex Corporation (the
“Company”),

 

WITNESSETH:

 

WHEREAS, the Company maintains the Plan
known as the “Quanex Corporation 1996 Employee Stock Option and Restricted
Stock Plan” (the “Plan”);

 

WHEREAS, the Company retained the right in
Section 12 of the Plan to amend the Plan from time to time; and

 

WHEREAS, the directors of the Company have
approved resolutions to amend the Plan to increase the number of shares of the
Company’s Common Stock, $.50 par value, by 1,200,000 shares and to permit
non-employee directors of the Company to participate in the Plan.

 

NOW, THEREFORE, effective December 5, 2002,
the Company agrees that, subject to and contingent upon the approval of this
Agreement by the Company’s stockholders, the Plan is hereby amended to provide
as follows:

 

(1)           Section 1 of the Plan is amended in
its entirety to provide as follows:

 

SECTION 1.  Purpose

 

The purpose of the Quanex
Corporation 1996 Employee Stock Option and Restricted Stock Plan is to promote
the interests of Quanex Corporation (the “Company”) and its shareholders by
providing it with a mechanism to enable the Company and its subsidiaries to
attract, retain and motivate their key employees and directors with
compensatory arrangements and benefits that make use of the Company’s stock so
as to provide for or increase the proprietary interests of such employees and
directors in the Company.

 

(2)           Paragraph
(H) of Section 2 of the Plan is amended in its entirety to provide as follows:

 

 

(H)   “Disability” shall mean, in the case of an
Employee, a mental or physical disability which, in the opinion of a physician
selected by the Committee, shall prevent the Employee from earning a reasonable
livelihood with the Company or any Subsidiary and which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months and which: (a) was not contracted, suffered
or incurred while the Employee was engaged in, or did not result from having
engaged in, a felonious criminal enterprise; (b) did not result from alcoholism
or addiction to narcotics; and (c) did not result from an injury incurred while
a member of the Armed Forces of the United States for which the Employee
receives a military pension.  “Disability”
shall mean, in the case of a non-employee director of the Company, a mental or
physical disability of the director which, in the opinion of a physician
selected by the Chief Executive Officer of the Company, (i) shall prevent the
director from adequately performing his services as a director of the Company
and (ii) can be expected to result in death or has lasted or can be expected to
last for a continuous period of not less than 12 months.

 

(3)           Paragraph
(V) of Section 2 of the Plan is amended in its entirety to provide as follows:

 

(V)  “Retire”
or “Retirement”
shall mean, in the case of an Employee, retirement in accordance with the terms
of a retirement plan that is qualified under Section 401(a) of the Code
and maintained by the Company or a Subsidiary in which the employee is a
participant.  “Retire” or “Retirement”
shall mean, in the case of a non-employee director, the cessation of the
director’s services as a director of the Company after completing either two
full terms or six years of service as a director of the Company.

 

(4)           Section 3 of the Plan is amended in
its entirety to provide as follows:

 

SECTION 3.  Stock
Subject to the Plan

 

The total amount of the
Common Stock with respect to which Awards may be granted shall not exceed in
the aggregate 2,550,000 shares.  The
class and aggregate number of shares which may be subject to the Options
granted under the Plan shall be subject to adjustment under Section 7.  The class and aggregate number of shares
which may be subject to the Restricted Stock Awards granted under the Plan
shall also be subject to adjustment under Section 8.  Shares may be treasury shares or authorized
but unissued shares.  If any Award under
the Plan shall expire or terminate for any reason without having been exercised
in full, or if any Award shall be forfeited, the shares subject to the
unexercised or forfeited portion of such Award shall again be available for the
purposes of the Plan.

 

2

 

(5)           Section 5 of the Plan is amended in
its entirety to provide as follows:

 

SECTION 5. 
Eligibility

 

The individuals who shall
be eligible to participate in the Plan shall be those full-time key Employees
and directors, as the Committee shall determine during the term of the Plan.

 

No Employee who owns
stock possessing more than 10% of the total combined voting power of all
classes of stock of the corporation employing the Employee or of its parent or
subsidiary corporation shall be eligible to receive an Option which is an
Incentive Stock Option unless at the time that the Option is granted the option
price is at least 110% of the Fair Market Value of the Common Stock at the time
the Option is granted and the Option by its own terms is not exercisable after
the expiration of five years from the date the Option is granted.

 

An Employee will be
considered as owning the stock owned, directly or indirectly, by or for his
brothers and sisters (whether by the whole or half blood), spouse, ancestors,
and lineal descendants.  Stock owned,
directly or indirectly, by or for a corporation, partnership, estate or trust
will be considered as being owned proportionately by or for its shareholders,
partners or beneficiaries.  For all
purposes of the Plan, a parent corporation is any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, on
the date of grant of the Option in question, each of the corporations other
than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in that chain;
and a subsidiary corporation is any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, on the date of
grant of the Option in question, each of the corporations, other than the last
corporation in the chain, owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations
in that chain.

 

(6)           Paragraph A of Section 7 of the Plan
is amended in its entirety to provide as follows:

 

A.  Authority to
Grant Options.  The Committee
may grant an Incentive Stock Option at any time during the term of the Plan to
any key Employee that it chooses.  The
Committee may grant a Non-Incentive Stock Option at any time during the term of
the Plan to any director of the Company or to any key Employee that it chooses.  Each Option granted shall be approved by the
Committee.  Subject only to any
applicable limitations set forth in the Plan, the number of shares of Common
Stock to be covered by an Option shall be as determined by the Committee.

 

3

 

(7)           Paragraph E of Section 7 of the Plan
is amended in its entirety to provide as follows:

 

E.  Amount
Exercisable.  The usual form
of agreement granting an Option (whether Incentive or Non-Incentive) shall,
subject to any limitation on exercise contained in the Agreement which is not
inconsistent with the Plan, contain the following terms of exercise:

 

(a)           No
Option granted under the Plan may be exercised until an optionee has completed
one year of continuous employment with the Company or any Subsidiary following
the date of grant, or, in the case of an Option awarded in consideration of the
optionee serving as a director of the Company, until he has served as a
director on the Board for one year following the date of grant;

 

(b)           beginning
on the day after the first anniversary of the date of grant, an Option may be
exercised up to 1/3 of the shares subject to the Option;

 

(c)           after
the expiration of each succeeding anniversary date of the date of grant, the
Option may be exercised up to an additional 1/3 of the shares subject to the
Option, so that after the expiration of the third anniversary of the date of
grant, the Option shall be exercisable in full; and

 

(d)           to
the extent not exercised, installments shall be cumulative and may be exercised
in whole or in part until the Option expires on the tenth anniversary of the
date of the grant.

 

However, the Committee, in its discretion, may change the terms of
exercise so that any Option may be exercised so long as it is valid and
outstanding from time to time in part or as a whole in such manner and subject
to such conditions as it may set.  In
addition, the Committee, in its discretion, may accelerate the time in which
any outstanding Option may be exercised. 
But in no event shall any Option be exercisable after the tenth
anniversary of the date of the grant.

 

(8)           Paragraph H of Section 7 of the Plan
is amended in its entirety to provide as follows:

 

H.  Termination of Employment or Affiliation
Relationship of Optionee. 
Except as may be otherwise expressly provided herein with respect to an
Option that is a Non-Incentive Stock Option, all Options shall terminate on the
earlier of the date of the expiration of the Option or one day less than three
months after the date of severance of the employment or affiliation
relationship between the Company and the optionee, whether with or without
cause, for any reason other than the death, Disability or, in the case of
Non-Incentive Stock

 

4

 

Options only, Retirement of the optionee, during which
period the optionee shall be entitled to exercise the Option in respect of the
number of shares that the optionee would have been entitled to purchase had the
optionee exercised the Option on the date of such severance of employment or
affiliation relationship.  Whether
authorized leave of absence, or absence on military or government service,
shall constitute severance of the employment relationship between the Company
and the optionee shall be determined by the Committee at the time thereof.  In the event of severance of employment
because of the Disability of the holder of any Incentive Stock Option while in
the employ of the Company and before the date of expiration of such Incentive
Stock Option, such Incentive Stock Option shall terminate on the earlier of
such date of expiration or one year following the date of such severance
because of Disability, during which period the optionee shall be entitled to
exercise the Incentive Stock Option in respect to the number of shares that the
optionee would have been entitled to purchase had the optionee exercised the
Incentive Stock Option on the date of such severance because of
Disability.  In the event of the death
of the holder of any Incentive Stock Option while in the employ of the Company
and before the date of expiration of such Incentive Stock Option, such
Incentive Stock Option shall terminate on the earlier of such date of
expiration or one year following the date of death.  After the death of the optionee, his executors, administrators or
any person or persons to whom his Incentive Stock Option may be transferred by
will or by the laws of descent and distribution, shall have the right, at any
time prior to the termination of an Incentive Stock Option to exercise the
Incentive Stock Option, in respect to the number of shares that the optionee
would have been entitled to exercise if he had exercised the Incentive Stock
Option on the date of his death while in employment.  For purposes of Incentive Stock Options issued under the Plan, an
employment relationship between the Company and the optionee shall be deemed to
exist during any period in which the optionee is employed by the Company, a
corporation issuing or assuming an option in a transaction to which
Section 424(a) of the Code applies, or a parent or subsidiary corporation
of such corporation issuing or assuming an option.  For this purpose, the phrase “corporation issuing or assuming an
option” shall be substituted for the word “Company” in the definitions of parent
and subsidiary corporations in Section 5 and the parent-subsidiary
relationship shall be determined at the time of the corporate action described
in Section 424(a) of the Code.

 

In the event of the
death, Disability or Retirement of a holder of a Non-Incentive Stock Option,
before the date of expiration of such Non-Incentive Stock Option, such
Non-Incentive Stock Option shall continue fully in effect, including provisions
providing for subsequent vesting of such Option, for a period of not more than
three years commencing on the date of the optionee’s death, Disability or
Retirement and shall terminate on the earlier of the date of the expiration of
such three-year period or the date of expiration of the Non-Incentive Stock
Option.  After the death of the
optionee, his executors, administrators or any person or persons to whom his
Non-Incentive Stock Option may be transferred by will or by the laws of descent
and distribution, shall have the right, at any time prior to the termination of
the Non-Incentive Stock Option to exercise

 

5

 

the Non-Incentive Stock Option, in respect to the
number of shares that the optionee would have been entitled to exercise if he
were still alive.  Notwithstanding the
foregoing provisions of this Section, in the case of a Non-Incentive Stock
Option the Committee may provide for a different option termination date in the
Option Agreement with respect to such Option.

 

For purposes of the Plan,
a person is “affiliated” with the Company if he is serving as a non-employee
director on the Board.

 

(9)           Paragraph A of Section 8 of the Plan
is amended in its entirety to provide as follows:

 

A.  Awards.  The Committee may make an Award of
Restricted Stock to selected eligible Employees and directors.  The amount of each Restricted Stock Award
and the respective terms and conditions of each Award (which terms and
conditions need not be the same in each case) shall be determined by the
Committee in its sole discretion. 
However, the terms and conditions of an Award shall not be inconsistent
with the terms of the Plan.

 

(10)         Paragraph C of Section 8 of the Plan is
amended in its entirety to provide as follows:

 

C.  Vesting of
Restricted Stock.  Restricted
Stock Awards shall be subject to such vesting restrictions, if any, as the
Committee shall determine in its sole discretion; provided that any Restricted
Stock Award that is granted to a person who is then subject to the reporting
and short-swing profit provisions of Section 16 of the Exchange Act and
the rules thereunder shall vest no earlier than six months following the date
on which the Restricted Stock is deemed awarded for purposes of such
provisions.

 

(11)         Section 15 of the Plan is amended in
its entirety to provide as follows:

 

SECTION 15. 
Section 83(b) Elections.

 

No Award recipient shall
exercise the election permitted under Section 83(b) of the Code with
respect to an Award without written approval of the Committee.  If the Committee permits such an election
with respect to any Award, the Company shall require the Award recipient to pay
the Company an amount necessary to satisfy the Company’s tax withholding
obligation.

 

6

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