Document:

Exhibit1031AssumptionAgreement

Exhibit 10.31
 
ASSUMPTION AGREEMENT
 
ASSUMPTION AGREEMENT, dated as of March 6, 2015, is made by CRC  CONSTRUCTION SERVICES, LLC, a Delaware limited liability company (the “Additional Obligor”), in favor of JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for the banks and other financial institutions (the “Lenders”) parties to the Credit Agreement referred to below and all other Secured Parties.
 
R E C I T A L S
 
A.            Reference is made to that certain Credit Agreement, dated as of September 24, 2014 (the “Credit Agreement”) among California Resources Corporation, a Delaware corporation, (the “Borrower”), the Lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, a Swingline Lender and a Letter of Credit Issuer.
 
B.            In connection with the Credit Agreement, certain Restricted Subsidiaries (other than the Additional Obligor) have entered into the Guarantee, dated as of even date with the Credit Agreement (as amended, supplemented or otherwise modified from time to time, the “Guarantee”) in favor of the Administrative Agent and the other Secured Parties.
 
C.            Capitalized terms used herein and not otherwise defined herein (including in the preamble and the recitals hereto) shall have the meanings assigned to such terms in the Guarantee or the Credit Agreement, as applicable. The rules of construction and the interpretive provisions specified in Section 1.1(b)) of the Guarantee shall apply to this Assumption Agreement, including terms defined in the preamble and recitals hereto.
 
D.            The Guarantors have entered into the Guarantee in order to induce the Administrative Agent, the Lenders, the Swingline Lender and the Letter of Credit Issuer to enter into the Credit Agreement and to (a) induce the Lenders, the Swingline Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrower under the Credit Agreement, (b) to induce one or more Hedge Banks to enter into Secured Hedge Agreements with the Borrower or any Restricted Subsidiary of the Borrower and (c) induce one or more Cash Management Banks to provide Cash Management Services pursuant to Secured Cash Management Agreements to the Borrower or any Restricted Subsidiary of the Borrower.
 
E.            Section 5.13 of the Guarantee provides that each Subsidiary of the Borrower that is required to become a party to the Guarantee pursuant to Section 10.10 of the Credit Agreement and the terms thereof shall become a Guarantor, with the same force and effect as if originally named as a Guarantor therein, for all purposes of the Guarantee upon execution and delivery by such Subsidiary of an instrument in the form of this Assumption Agreement. The Additional Obligor is executing this Assumption Agreement in accordance with the requirements of the Guarantee to become a Guarantor under the Guarantee in order to induce (a) the Lenders, the Swingline Lenders and the Letter of Credit Issuer to make additional Extensions of Credit to the Borrower under the Credit Agreement and as consideration for Extensions of Credit previously made, (b) one or more Hedge Banks to enter into Secured Hedge Agreements with the Borrower or any Restricted Subsidiary of the Borrower and (c) one or more Cash Management Banks may from time to time provide Cash Management Services pursuant to Secured Cash Management Agreements to the Borrower or any Restricted Subsidiary of the Borrower.
 
F.             Now, therefore, it is agreed:
 
SECTION 1.         By executing and delivering this Assumption Agreement, the Additional Obligor, as provided in Section 5.13 of the Guarantee, hereby becomes a party to the Guarantee as a Guarantor thereunder with the same force and effect as if originally named therein as a Guarantor and, without limiting the generality of the foregoing, hereby expressly agrees to all the terms and provisions of the Guarantee applicable to it as a Guarantor thereunder and expressly guarantees, jointly and severally, to the Secured Parties the Obligations.  The Additional Obligor hereby represents and warrants that each of the representations and warranties contained in Section 3 of the 

Guarantee is true and correct on and as of the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date). Each reference to a Guarantor in the Guarantee shall be deemed to include each Additional Obligor.  The Guarantee is hereby incorporated herein by reference.
 
SECTION 2.         Each Additional Obligor represents and warrants to the Administrative Agent and the other Secured Parties that this Assumption Agreement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws relating to or affecting creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or law).
 
SECTION 3.         This Assumption Agreement may be executed by one or more of the parties to this Assumption Agreement on any number of separate counterparts (including by facsimile or other electronic transmission (i.e. a “pdf” or a tif”)), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Assumption Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.  This Assumption Agreement shall become effective as to each Additional Obligor when the Administrative Agent shall have received counterparts of this Assumption Agreement that, when taken together, bear the signatures of such Additional Obligor and the Administrative Agent.
 
SECTION 4.         Except as expressly supplemented hereby, the Guarantee shall remain in full force and effect.
 
SECTION 5.        THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
 
SECTION 6.         Any provision of this Assumption Agreement 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 of the Guarantee, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
 
SECTION 7.         All notices, requests and demands pursuant hereto shall be made in accordance with Section 14.2 of the Credit Agreement.  All communications and notices hereunder to each Additional Obligor shall be given to it in care of the Borrower at the Borrower’s address set forth in Section 14.2 of the Credit Agreement.
 
IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered by its duly Authorized Officer as of the date first above written.
 
	
			
	 
	CRC CONSTRUCTION CERVICES, LLC, 
as Guarantor

	 
	 
	 

	 
	By:
	/s/ Michael L. Preston

	 
	Name: 
	Michael L. Preston

	 
	Title:
	Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, its Sole Member

 
Signature Page
California Resources Corporation
Assumption Agreement to Guarantee

 

 
Acknowledged and Consented to:
 
	
			
	JPMORGAN CHASE BANK, N.A., 
as Administrative Agent
	 

	 
	 

	 
	 
	 

	By:
	/s/ David Adam Katz
	 

	Name:
	David Adam Katz
	 

	Title
	Executive Director
	 

	 
	 
	 

 
Signature Page
California Resources Corporation
Assumption Agreement to GuaranteeExhibit 10.8

 

Allied Motion Technologies Inc.

 

Stock Ownership Plan

 

For Non-Employee Directors

 

(adopted November 3, 2010 and amended and restated as of May 13, 2014)

 

Stock Ownership and Retention Requirements

 

It is generally desirable for directors to own shares of stock of Allied Motion Technologies Inc. (the “Company”), and for new directors to work toward that goal.  By becoming equity owners, the outside directors assume a personal stake in the success or failure of the Company, and it aligns their financial interests with those of long-term shareholders of the Company.

 

Pursuant to the Company’s “Stock Ownership Guideline for Non-Employee Directors” (the “Original Guideline”) which was originally adopted on November 3, 2010 and is hereby amended, restated and recaptioned as the “Allied Motion Technologies Inc. Stock Ownership Plan for Non-Employee Directors” (the “Plan”), a new non-employee director is required to make a minimum investment in the purchase of shares of the Company’s common stock equal to three (3) times the annual cash and stock retainer (as defined below) paid or payable to the director during the first twelve (12) months following his or her election or appointment to the Company’s Board of Directors (hereinafter referred to as the “Stock Ownership Requirement”).

 

The amount of the Stock Ownership Requirement for a new non-employee director is determined at the time he or she is appointed or elected and shall not change during their tenure on the Board.  (By way of example, assuming the cash portion of the Board’s annual cash retainer is $35,000 and the value of the annual stock retainer (which vests over 3 years) is $50,000 at the time a new director is appointed, the investment required to comply with the Stock Ownership Requirement for such director would be $255,000.)  For current non-employee directors (that is, directors serving on the Board prior to the time this Plan was adopted, namely May 12, 2014), the Stock Ownership Requirement shall remain the same $50,000 as required under the Original Guideline.

 

A director’s annual retainer includes: (a) any shares of the Company’s stock, including restricted stock, issued or issuable to the director as part of the director’s annual retainer, and (b) the annual cash retainer fees (currently paid quarterly), but will not include chairperson fees or Board or Committee attendance fees.

 

All directors shall retain the required minimum cumulative number of shares purchased in accordance with the Stock Ownership Requirement under this Plan as long as they remain a

 

 

member of the Company’s Board of Directors, subject to any exceptions granted pursuant to the hardship exception provisions set forth below.

 

For purposes of this Plan, the term “purchase” includes: (a) shares of the Company’s common stock purchased directly by a director, including upon the exercise of stock options, (b) shares of the Company’s common stock purchased by or in the director’s individual retirement account (IRA) or other tax qualified retirement plan, (c) shares of the Company’s common stock purchased by a director’s spouse living in the same household, and (d) shares of the Company’s common stock purchased by a trust for the benefit of the director or his or her spouse, children, grandchildren, parents, brothers and/or sisters.  Awards of restricted stock made pursuant to the Company’s 2007 Stock Incentive Plan, or any successor plans, shall count towards the Stock Ownership Requirement.

 

A new non-employee director will be allowed a grace period to meet the Stock Ownership Requirement in full, from the date of initial election or appointment to the Board through the fifth (5th) anniversary of such election or appointment (the “Grace Period”).  For current non-employee directors, the five-year Grace Period shall begin as of the original effective date of the Original Guideline (namely, November 3, 2010).

 

Non-employee directors may satisfy the Stock Ownership Requirement in part over the course of the Grace Period, as follows:

 

	
Anniversary Following
   Initial Election
   or Appointment
    	
 
    	
Minimum Percent of the Stock Ownership
   Requirement
   (Cumulative)
    	
 
    
	
1st
    	
 
    	
20
    	
%
    
	
2nd
    	
 
    	
40
    	
%
    
	
3rd
    	
 
    	
60
    	
%
    
	
4th
    	
 
    	
80
    	
%
    
	
5th and   Thereafter
    	
 
    	
100
    	
%
    

 

In the event that a director has not satisfied the minimum cumulative percentage ownership level on each anniversary date following the director’s initial election or appointment during the Grace Period, the director must apply not less than 50% of each subsequent quarterly cash retainer to the purchase of Company stock until the minimum cumulative percentage ownership level is achieved. Any such required purchases may be made directly by the director in the open market or from the Company pursuant to the stock-in-lieu provisions set forth below.

 

Until such time as the director satisfies the Stock Ownership Requirement, the director must hold 100% of the shares of Common Stock received as stock awards pursuant to any equity

 

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compensation plan, upon lapse of the restrictions upon restricted stock and upon exercise of stock options (net of any shares used to pay for the exercise price of the option and/or tax withholding).

 

Hardship exceptions to any of the terms, conditions and requirements under this Plan may be made at the discretion of the Chair of the Governance and Nominating Committee. Any hardship exception requested by the Chair of the Governance and Nominating Committee shall be directed to, and decided by, the other members of the Governance and Nominating Committee.

 

Stock-in-Lieu of Cash Retainer

 

Each non-employee director may elect to forego receipt of all or a portion of any Board, Committee or special retainer otherwise payable in cash under the Company’s non-employee director compensation program in exchange for Common Stock issued in accordance with the following provisions:

 

Shares Applicable to Stock Ownership Requirement. All shares acquired by a non-employee director pursuant to an election to take stock in lieu of cash, as provided below, shall qualify in satisfying such director’s Stock Ownership Requirement.

 

Election Procedure. The number of shares of Common Stock received by any non-employee director with respect to a payment date shall equal the amount of foregone cash retainer divided by the Fair Market Value (as defined below) of a share of Common Stock on the relevant payment date, rounded down to the nearest whole share, with the dollar amount of any fractional share paid in cash on the payment date.  If the cash retainer would be paid during a blackout period as defined in the Company’s Insider Trading Policy, then the payment date as used herein for the purchase of shares will be the first day of the next Trading Window as defined in the Insider Trading Policy.  For the purpose of this Plan, the Fair Market Value of a share of common stock on a given date shall be the consolidated closing bid price on that date as reported by the NASDAQ Stock Market.  If there are no common stock transactions on such date, the Fair Market Value shall be determined as of the immediately preceding date on which there were common stock transactions.

 

Election.  A non-employee director may elect Common Stock in place of cash by submitting a written or electronic election to the Company’s Secretary, in such form as the Company determines, by the date established by the Company prior to such payment date.

 

Number of Authorized Shares.  There are 100,000 shares of the Company’s Common Stock reserved for issuance pursuant to this Plan.

 

Adjustments in Authorized Shares.  If a dividend or other distribution, recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution, or other similar corporate transaction or event affects the Company’s Common Stock, then the Company’s Board of Directors shall, in such manner as it may determine equitable, substitute or adjust any or all of the remaining limits on the number and kind of shares available under the Plan. The decision of the Board of Directors shall be final and binding.

 

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Share Shortfalls.  If any election under this Plan would cause the number of shares of Common Stock required to be issued under this Plan to exceed the authorized shares, then any then current elections of non-employee directors shall be reduced or disregarded to the extent necessary, as determined by the Compensation Committee of the Board of Directors in an equitable manner, to avoid exceeding the authorized shares.  The decision of the Compensation Committee shall be final and binding. No further elections shall be made or shall be valid until such time, if any, as additional shares of Common Stock become available for purchase under this Plan.

 

Inside Information.  All purchases of Company stock are subject to compliance with Section 16 of the Securities Exchange Act of 1934, as amended, and the Company’s Insider Trading Policy including the defined Trading Window.

 

*********

 

This Plan can be amended, modified and terminated at any time, on a prospective basis, by the Company’s Board of Directors in its sole and absolute discretion.

 

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