Document:

Exhibit 10.1

 

Demand Note and Loan Agreement

 

 

	 	Boca Raton, Florida
	$471,825	    December 31, 2016

 

For
Value Received, Banyan Rail Services Inc., a Delaware Corporation (“Company”), promises to pay to Boca
Equity Partners LLC, a Delaware limited liability company, its successors and assigns (“Holder”), the principal
advanced by Holder to the Company hereunder as reflected on the attached loan schedule (each an “Advance”),
plus interest on the aggregate unpaid principal balance from time to time outstanding at the rate of 10.0% per annum from the date
advanced, in accordance with the terms of this Demand Note and Loan Agreement (this “Note”). Holder may, but
is not required to, make Advances to the Company as the Company may from time to time request, and the attached loan schedule shall
be updated to reflect each Advance as and when it is made. This Note replaces a $250,000 Demand Note and Loan Agreement from the
Company to Holder dated July 27, 2016 (the “July Note”), and the July Note is hereby cancelled and terminated.
The initial principal amount of this Note represent advances from Holder to Company under the July Note, advances made since the
date of the July Note, and interest accrued thereon, which totals $471,825 as of December 31, 2016.

 

		1.	Maturity Date. The Holder may call for payments of outstanding principal and interest under
this Note at any time or from time to time by giving notice in writing to the Company at least five business days before the date
payment is due (the “Maturity Date”). This Note may be prepaid in whole or in part at any time without penalty.

 

		2.	Events of Default. The occurrence of any of the following constitutes an “Event of
Default:”

 

		a)	the Company fails to make full and timely payments when due under this Note;

 

		b)	the Company breaches any material representation or warranty made herein;

 

		c)	the Company fails to comply with any covenant set forth herein and such failure is not cured within
five business days after Holder has notified the Company of the failure; or

 

		d)	the Company files or consents to a filing against it of bankruptcy or a bankruptcy proceeding is
begun against it and not dismissed or stayed within thirty (30) days or it consents to the appointment of a receiver, custodian
or trustee.

 

		3.	Remedies. If an Event of Default occurs and continues to exist, then the Company will pay
to Holder, in addition to all amounts due under this Note, all costs of collection, including reasonable attorneys’ fees.

 

     

     

    

 

		4.	Miscellaneous.

 

		a)	The Company hereby waives presentment, demand, protest and notice of dishonor or non-payment, and
hereby waives, to the extent permitted by law, any right to have a jury participate in resolving or determining any dispute, whether
sounding in contract, tort or otherwise, between Company and the Holder arising out of or in any way relating to this Note.

 

		b)	Holder’s failure to exercise any right or remedy available to it hereunder or at law or in
equity, or any delay in exercising any such right or remedy, shall not operate as a waiver of any of Holder’s rights.

 

		c)	This Note shall be governed and construed in accordance with the laws of the State of Florida.
Any action arising out of or relating to this Note must be brought, if at all, in the courts of the State of Florida. The parties
hereby waive any objections they might otherwise have to such venue and forum, whether on the basis of inconvenience, lack of personal
jurisdiction or otherwise and hereby irrevocably consent to personal jurisdiction in such forum and venue.

 

		d)	The provisions hereof shall inure to the benefit of, and shall be binding upon, the Company, Holder
and their respective, successors and permitted assigns.

 

 

Banyan
Rail Services Inc.

 

 

 

	/s/ Paul S. Dennis	 
	By Paul S. Dennis, Interim CEO and CFO	 

 

     

     

    

 

Loan Schedule

 

	Date of Advance	Amount Advanced
	December 31, 2016 (beginning balance)	$471,825
	Total:	$471,825pmts_EX10_10

		

			Exhibit 10.10

		

		

			 

		

		

			

		

		

			 

		

		
			 
		

		
			Lillian Etzkorn
		

		
			Broomfield Hills, Michigan
		

		
			 
		

		
			December 1, 2016
		

		
			 
		

		
			Dear Lillian,
		

		
			 
		

		
			Thank you for taking the time over the past few weeks getting to know more about CPI and meeting with members of our executive leadership team. Through these discussions, you have impressed us with your accomplishments, expertise and your personal attributes. We believe you would be an excellent addition to the leadership team at CPI and are pleased to present you with this offer to join CPI in the position of Chief Financial Officer.
		

		
			 
		

		
			In this position, you will report to Steve Montross, our Chief Executive Officer and your anticipated start date will be January 1, 2017. This position is located in our corporate headquarters, 10026 W. San Juan Way, Suite 200, Littleton, CO, 80127.
		

		
			 
		

		
			Your bi-weekly base salary in this position will be $15,769 when annualized equals $410,000 per year. Under this compensation plan you will have a target annual bonus of 50% percent of your annual base salary. The bonus will be based upon the achievement of company financial objectives as well as individual performance objectives. This is provided that you are employed at CPI at the time of payout, which is typically the end of March following the plan year. Your bonus eligibility will begin as part of the 2017 plan year and your merit eligibility will begin as part of the 2018 plan year.
		

		
			 
		

		
			The Board of Directors of CPI believes that it is critically important for the senior management team and shareholders of CPI to have aligned interests. To that end, we are pleased to offer you the opportunity to participate in the CPI Card Group Omnibus Incentive Plan. Subject to Board of Directors approval, CPI intends to grant you an award value of $350,000. Your award will be made in 60% non-qualified stock options ($210,000) and 40% restricted stock units, or RSUs ($140,000). The grant date is anticipated to be January 2nd, 2017, if you start on or prior to this date. Otherwise, it will be as soon as administratively feasible.
		

		
			
		

		
			

		 

 

		

			

		

		

			 

		

		

		
			The number of options will be calculated using our Black-Scholes factor applied to the 30 trading day average of the market closing price, up to and including the grant date. The number of RSUs will be calculated using the same 30 trading day average of the market close price. The options will vest and become exercisable in three roughly equal installments on each of the first, second and third anniversaries of the grant date; and the RSUs will become vested on the third anniversary of the grant date, as long as you remain employed by the Company or one of its affiliates through the vesting dates and meet the other requirements contained in the award agreements. This role will be eligible for an annual long-term incentive award. The final target amount will be determined by CPI Board of Directors.
		

		
			 
		

		
			Change in Control – In the event of a Change in Control, you will be immediately entitled to exercise equity, whether vested or unvested, if you experience a Qualifying Termination, as outlined in and provided you have signed the Stock Award Agreement. 
		

		
			 
		

		
			Severance - In the event that CPI terminates your employment without cause or you terminate your employment for good reason, CPI shall pay to you on the last day of each of the twelve (12) months following the month in which notice of such termination occurred, a severance payment equal to your monthly installment of your Base Salary plus one-twelfth (1/12th) of your estimated Short term Incentive Compensation as determined by the Board in good faith. These severance payments would be conditioned upon your execution of a customary release and observance with any continued obligations under your employment agreements.
		

		
			 
		

		
			We are also pleased to offer you a sign-on cash award of $200,000 payable in two equal instalments. The first instalment ($100,000) will be paid with your first bi-weekly paycheck (ie. January 19 if you start on January 2) and the second instalment ($100,000) will be paid in July 2017.
		

		
			 
		

		
			Additionally, you will be offered our standard executive relocation benefits. A summary of the benefits is attached.
		

		
			 
		

		
			As an employee of CPI, you will be eligible for coverage under the company benefits package effective the first of the month following thirty (30) days from your employment date. Please note that 401k eligibility is the first of the quarter after 90 days of employment. Some benefits from CPI will be available to you at no cost, while others will require a contribution on your part. Briefly, these benefits consist of the following:
		

		
			 
		

			
	
			
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			Health and dental coverage which include a prescription drug program

			
	
			
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			Eye Care Discount Program

			
	
			
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			Short and Long Term Disability Insurance

			
	
			
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			Flexible Spending Account

			
	
			
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			Life and Accidental Death and Dismemberment Insurance

			
	
			
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			20 days of paid vacation time each year (accrued per pay period)

			
	
			
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			24 hours of sick time 

			
	
			
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			8 paid holidays 

			
	
			
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			401(k) plan with a company match of 100% of the first 3% of employee contributions and 50% match on the 4th and 5th percent of employee contributions. 

		
			
		

		
			

		 

		

			10368 W. Centennial Road, Littleton, CO 80127  ● Telephone 303.973.9311 ● Fax 303.973.8420
www.cpicardgroup.com

		

 

		

			

		

		

			 

		

		

		
			This offer of employment is conditioned on the following:
		

		
			 
		

		
			Documentation- Satisfactory completion of the application, and your ability to furnish CPI with the identification required to demonstrate that you are legally permitted to work in the United States, and you signing the Confidentiality Agreement. Background Check / Referencing- Satisfactory completion of a customary background investigation and completion of the reference process.
		

		
			 
		

		
			Association Required Security Checks- Satisfactory completion of all checks performed by CPI in accordance to the standards of Visa, MasterCard, American Express and Discover.
		

		
			 
		

		
			Your relationship with CPI is one in which employment is “at will.” With this, CPI reserves the right to set and modify your terms and conditions of employment up to and including the termination of your employment. Conversely, you have the right to terminate your employment relationship with CPI at any time. If you voluntarily leave CPI employment within the first year of your start date, you will be required to reimburse CPI for 100% of your sign-on cash award and actual relocation expenses (including any tax gross-up amounts).
		

		
			 
		

		
			We would like to confirm your decision regarding this offer as soon as possible by signing the offer and sending me a scanned copy. If you have any questions, do not hesitate to contact me at (303) 345-2424. 
		

		
			 
		

		
			We at CPI are looking forward to you joining the organization!
		

		
			 
		

		
			Sincerely,
		

		
			 
		

		
			/s/ Lisa Jacoba
		

		
			 
		

		
			Lisa Jacoba
		

		
			Chief Human Resources Officer
		

		
			 
		

		
			 
		

		
			 
		

		
			I accept the attached offer of employment with the stated terms and conditions.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Lillian Etzkorn

					
					
						    

					
					
						December 5, 2016

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Lillian Etzkorn

					
					
						 

					
					
						Date

					
					
						 

				

		
			 
		

		 

		

			10368 W. Centennial Road, Littleton, CO 80127  ● Telephone 303.973.9311 ● Fax 303.973.8420
www.cpicardgroup.com

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