Document:

EX-10.2

 

Exhibit 10.2

PSYCHIATRIC SOLUTIONS, INC.

2007 LONG-TERM EQUITY COMPENSATION PLAN

     The 2007 Long-Term Equity Compensation Plan (the “Plan”) of Psychiatric Solutions, Inc. (the
“Company”) will be administered by the Compensation Committee of the Board of Directors (the
“Committee”). The Company’s executive officers and certain key employees (together, the “Eligible
Employees”) will be eligible to participate in the Plan.

	1.	 	Equity Awards.

	 	(a)	 	If the Company’s adjusted EPS for the current fiscal year (the “Current Year EPS”) does
not exceed the Company’s adjusted EPS for the prior fiscal year (the “Prior Year EPS”) by
at least 20%, no equity awards will be granted.
	 
	 	(b)	 	If the Company’s Current Year EPS exceeds the Company’s Prior Year EPS by not less than
20%, and not more than 30%, the Company will grant stock options to the Eligible Employees
to purchase that number of shares of Common Stock which is equal to not less than 2.00%,
and not more than 3.00%, of the Company’s aggregate total of issued and outstanding shares
of Common Stock as of the grant date, the exact number to be determined in the sole
discretion of the Committee.
	 
	 	(c)	 	If the Company’s Current Year EPS exceeds the Company’s Prior Year EPS by more than
30%, the Company will grant stock options to the Eligible Employees to purchase that number
of shares of Common Stock which is equal to 3.00% of the Company’s aggregate total of
issued and outstanding shares of Common Stock as of the grant date.
	 
	 	(d)	 	At the Committee’s discretion, the Company may issue restricted stock awards in
combination with or in lieu of stock options.

	2.	 	Allocation of Equity Awards. In the event equity awards are made under the Plan, the
Committee shall meet with the Company’s Chief Executive Officer on or before March 31 of the
following fiscal year to determine the allocation of the equity awards to the Eligible
Employees.
	 
	3.	 	Vesting and Terms of Equity Awards. Any equity awards granted pursuant to the Plan
shall be issued under the Company’s Equity Incentive Plan and subject to all of the terms and
conditions of the Company’s Equity Incentive Plan. Any stock options shall vest and become
exercisable over four years, with 25% vesting on each anniversary of the date of grant over
the next four years. Any restricted stock awards shall vest over four years, with 25% vesting
on each anniversary of the date of grant over the next four years.Exhibit 10.1

 

Exhibit 10.1

PUT AGREEMENT

     THIS PUT AGREEMENT (the “Agreement”) entered into as of February 20, 2007, by and between
CANPARTNERS REALTY HOLDING COMPANY IV LLC, a Delaware limited liability company (“Senior
Participant”) and WINN LIMITED PARTNERSHIP, a North Carolina limited partnership (“Junior
Participant”) recites and provides:

RECITALS:

     A. Senior Participant and Junior Participant entered into a certain Participation Agreement
(“Participation Agreement”) dated May 5, 2006, pursuant to which in connection with Senior
Participant’s Sixty-Six Million Dollar ($66,000,000.00) loan (“Loan”) to Downtown Resorts, LLC
(“Borrower”), Junior Participant purchased, and Senior Participant assigned to Junior Participant,
a Twenty Million Three Hundred Seven Thousand Six Hundred Ninety-Two Dollar and Thirty-One Cents
($20,307,692.31) junior participation interest (the “Junior Participation”).

     B. The parties wish to establish a put option which permits the Junior Participant to put its
Junior Participation to Senior Participant.

AGREEMENT:

     In consideration of the agreements herein contained, the parties agree as follows:

     1. Creation of Put Option. At any time within seven calendar (7) days of the date
hereof (“Expiration Date”), the Junior Participant at its sole option may, by written notice (the
“Put Notice”) to Senior Participant, elect to sell to Senior Participant, and Senior Participant
shall be obligated to purchase from Junior Participant, all, but not less than all, of the Junior
Participation (the “Put Option”).

     2. Put Price. The put price for the purchase of the Junior Participation by Senior
Participant shall be $15,230,769.23 (“Put Price”). The Put Price shall be payable by Senior
Participant to Junior Participant in immediately available funds at the Closing.

     3. Consideration. In consideration for the creation, exercise and consummation of the
Put Option hereunder, Junior Participant shall pay Senior Participant the sum of One Hundred Fifty
Thousand Dollars ($150,000.00) payable in immediately available funds by no later than 4:00 p.m. on
the second Business Day after the date of this Agreement.

     4. Closing. The closing (“Closing”) of the purchase and sale of the Junior
Participation shall take place within five (5) Business Days after the receipt of the Put Notice by
Senior Participant. At the Closing, upon delivery of the Put Price by wire transfer in immediately
available funds, Junior Participant shall execute and deliver an instrument in the form of
Exhibit A attached hereto endorsing, conveying and assigning over to Senior Participant the
Junior Participation or so much thereof which remains outstanding.

 

 

     5. Representations and Warranties.

          (a) Junior Participant represents and warrants to Senior Participant that it owns the entire
Junior Participation free and clear of all claims, liens, encumbrances, pledges and interests of
any kind of any other person or entity. Junior Participant shall reaffirm this representation and
warranty as of the Closing.

          (b) Senior Participant represents and warrants to Junior Participant that Senior Participant
has the financial wherewithal to purchase the Junior Participation for the Put Price, that Senior
Participant has available to it to purchase the Junior Participation separate accounts with
aggregate liquid assets in excess of $400,000,000 and a fund with liquid assets in excess of
$1,000,000,000 and that, upon any exercise of the Put Option by the Junior Participant, Senior
Participant’s obligation to close the purchase of the Junior Participation for the Put Price will
not be subject to any financing contingency.

     6. Miscellaneous.

          (a) Notices. All notices, demands and request required or desired to be given
hereunder shall be in writing and shall be delivered in person, by United States registered or
certified mail, return receipt requested, postage prepaid, or by overnight courier addressed as
follows:

If to Senior Participant:

Canpartners Realty Holding Company IV LLC

c/o Canyon Capital Realty Advisors

9665 Wilshire Boulevard

Beverly Hills, CA 90212

Attention: Mr. K. Robert Turner

                 Mr. Jonathan P. Roth

Facsimile: (310) 247-8067

With a copy to:

Canpartners Realty Holding Company IV LLC

c/o Canyon Capital Realty Advisors

9665 Wilshire Boulevard

Beverly Hills, CA 90212

Attention: Head of Asset Management

Facsimile: (310) 247-8067

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and

Sidley Austin LLP

555 West Fifth Street, 40th Floor

Los Angeles, CA 90013

Attention: Bruce W. Fraser, Esq.

Facsimile: (213) 896-6600

To Junior Participant:

WINN Limited Partnership

c/o Winston Hotels, Inc.

2626 Glenwood Avenue, Suite 200

Raleigh, NC 27608

Attention: Joseph V. Green, President

Facsimile: (919) 510-5251

With a copy to:

Hunton & Williams LLP

1900 K Street, NW, Suite 1200

Washington, DC 20006-1109

Attention: Philip M. Battles, III, Esq.

Facsimile: (202) 778-2201

or at such other addresses or to the attention of such other persons or entities as may from time
to time be designated by the party to be addressed by written notice to the other in the manner
herein provided. Notices, demands and requests given in the manner aforesaid shall be deemed
sufficiently served or given for all purposes hereunder when received or when delivery is refused
or when the same are returned to sender for failure to be called for.

          (b) Business Day. Shall mean any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions in New York City are authorized or
required by law, regulation or executive order to close.

          (c) Governing Law. In all respects, including, without limitation, matters of
construction and performance of this Agreement and the obligations arising hereunder, this
Agreement shall be governed by, and construed in accordance with, the internal laws of the State of
New York.

          (d) Entire Agreement. This Agreement and the documents to be executed pursuant hereto
at Closing, embody the entire agreement and understanding between Senior Participant and Junior
Participant regarding the Put Option and supersede all prior agreements and understandings between
said parties relating to the Put Option.

          (e) Further Assurances. Senior Participant and Junior Participant will execute,
acknowledge and deliver upon the reasonable prior request of the other, any other instruments or
agreements reasonably required in order to carry out the provisions of this Agreement or to
effectuate the intent and purposes hereof.

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          (f) Counterpart Originals. This Agreement may be executed in counterpart originals,
each of which shall constitute an original, and all of which together shall constitute one and the
same agreement.

          (g) Assignment. Junior Participant may not assign its rights under this Agreement to
any person or entity without the consent of Senior Participant, which consent may be withheld in
Senior Participant’s sole discretion. Any purported assignment by Junior Participant without the
consent of Senior Participant shall be void.

          (h) Waiver of Jury Trial. Senior Participant and Junior Participant hereby agree not
to elect a trial by jury of any issue triable of right by jury, and waive any right to trial by
jury fully to the extent that any such right shall now or hereafter exist with regard to this
Agreement or any claim, counterclaim or other action arising in connection therewith. This waiver
of right to trial by jury is given knowingly and voluntarily by Senior Participant and Junior
Participant, and is intended to encompass individually each instance and each issue as to which the
right to a trial by jury would otherwise accrue. Senior Participant and Junior Participant are
hereby authorized to file a copy of this paragraph in any proceeding as conclusive evidence of this
waiver by the other. This provision shall survive the termination or expiration of this Agreement.

          (i) Costs and Expenses. Except to the extent payable by Borrower under the Loan, each
of Senior Participant and Junior Participant shall bear its own costs and expenses incurred in
connection with this Agreement and Closing, including, without limitation, attorneys’ fees and
costs.

          (j) Specific Performance. Senior Participant acknowledges that monetary damages may
not be an adequate remedy to redress any failure by Senior Participant to purchase the Junior
Participation if required under this Agreement. Accordingly, Senior Participant agrees that upon
any breach of this Agreement by Senior Participant, the remedy of specific performance shall be
available to Junior Participant.

[Signature Page Follows]

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     IN WITNESS WHEREOF, intending to be legally bound, the parties have executed this Agreement as
of the date first above written.

	 	 	 	 	 	 	 
	 

	 	SENIOR PARTICIPANT:
	 
	 	 	 	 	 	 
	 

	 	CANPARTNERS REALTY HOLDING COMPANY IV LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jonathan P. Roth
	 

	 	 	 	 
	 

	 	Name:
	 	Jonathan P. Roth
	 

	 	Its:
	 	Principal
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	JUNIOR PARTICIPANT:
	 
	 	 	 	 	 	 
	 

	 	WINN LIMITED PARTNERSHIP,

a North Carolina limited partnership
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Winston Hotels, Inc.

a North Carolina corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Joseph V. Green
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Joseph V. Green
	 

	 	 	 	Title:
	 	President

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