Document:

Ex102-FirstAmendmenttoSecondARCreditAgreement

FIRST AMENDMENT TO 
SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of June 5, 2015 is by and among SABRA HEALTH CARE LIMITED PARTNERSHIP, a Delaware limited partnership (the “Borrower”), SABRA HEALTH CARE REIT, INC., a Maryland corporation (together with its successors, the “REIT Guarantor”), the other Guarantors identified on the signature pages hereto, the lenders identified on the signature pages hereto (the “Lenders”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

W I T N E S S E T H

WHEREAS, the Borrower, the REIT Guarantor, the other Guarantors, the Lenders and the Administrative Agent have entered into that certain Second Amended and Restated Credit Agreement dated as of September 10, 2014, as amended, supplemented or otherwise modified prior to the date hereof (the “Existing Credit Agreement”);

WHEREAS, the Borrower, the REIT Guarantor, the other Guarantors, the Lenders and the Administrative Agent have agreed to amend the Existing Credit Agreement as set forth herein;

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

PART 1 
DEFINITIONS

SUBPART 1.1    Certain Definitions.  The following terms used in this Amendment, including its preamble and recitals, have the following meanings:

“First Amendment Effective Date” is defined in Subpart 3.1.

SUBPART 1.2    Other Definitions.  Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement.

PART 2 
AMENDMENTS TO 
EXISTING CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the First Amendment Effective Date, the Existing Credit Agreement is hereby amended in accordance with this Part 2.  Except as so amended, the Existing Credit Agreement shall continue in full force and effect.

SUBPART 2.1    Section 1.01 of the Existing Credit Agreement is hereby amended as follows:

(a)    The definition of “Base Rate” is hereby deleted in its entirety and replaced with the following:  

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate” and (c) the Eurodollar Rate determined on such day (or if no such rate is determined on such day, the next preceding day for which a Eurodollar Rate is determined) for a Eurodollar Loan with an Interest Period of one month plus 1.00%, and if Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in the “prime rate” announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.   

(b)    The definition of “Consolidated Unsecured Interest Coverage Ratio” is hereby deleted in its entirety and replaced with the following:  

“Consolidated Unsecured Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Unencumbered Net Revenue plus interest income from Qualified Mortgage Loans (provided, however, that the aggregate amount of Qualified Mortgage Loans attributable to second mortgages or second deeds of trust shall not exceed $75,000,000) as of the end of the most recently completed fiscal quarter to (b) the Consolidated Unsecured Interest Expense for the most recently completed fiscal quarter.

(c)    The definition of “Eurodollar Rate” is hereby deleted in its entirety and replaced with the following:  

“Eurodollar Rate” means
(a)    For any Interest Period with respect to a Eurodollar Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published by Bloomberg (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) (in such case, the “LIBOR Rate”) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; 

(b)    For any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the LIBOR Rate, at approximately 11:00 a.m., London time, determined two (2) Business Days prior to such date for Dollar deposits with a term of one month commencing that day;

2

provided, that (i) to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; and, provided, further, that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent, and (ii) if the Eurodollar Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.
(d)    The definition of “Negative Pledge” is hereby deleted in its entirety and replaced with the following:  

“Negative Pledge” means any agreement (other than this Credit Agreement or any other Credit Document) that in whole or in part prohibits the creation of any Lien on any assets of a Person; provided, however, that neither (a) an agreement that establishes a maximum ratio of unsecured debt to unencumbered assets, or of secured debt to total assets, or that otherwise conditions a Person’s ability to encumber its assets upon the maintenance of one or more specified ratios that limit such Person’s ability to encumber its assets but that do not generally prohibit the encumbrance of its assets, or the encumbrance of specific assets nor (b) a provision in any agreement governing unsecured Funded Debt generally prohibiting the encumbrance of assets (so long as such provision is generally consistent with a comparable provision of the Credit Documents) shall constitute a “Negative Pledge” for purposes of this Credit Agreement; and provided further, however, that any provision under either of the Sabra Senior Note Indentures and/or any other document relating to the Sabra Senior Notes that may be included within this definition of “Negative Pledge” shall not constitute a “Negative Pledge” for purposes of the Credit Agreement. 

SUBPART 2.2    Section 7.13 of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following:

7.13    No Further Negative Pledges.  

No Credit Party will, nor will it permit any Subsidiary to, enter into, assume or become subject to any Negative Pledges or agreement prohibiting or otherwise restricting the existence of any Lien upon any of its Property in favor of the Administrative Agent (for the benefit of the Lenders) for the purpose of securing the Obligations, whether now owned or hereafter acquired, or requiring the grant of any security for any obligation if such Property is given as security for the Obligations, except (a) in connection with any Permitted Lien described in clauses (a) through (j) in Section 7.01 or any document or instrument governing any Permitted Lien described in clauses (a) through (j) in Section 7.01, provided that any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien, (b) pursuant to customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under Section 7.07, pending the consummation of such sale, (c) a provision in any agreement governing unsecured Funded Debt generally prohibiting the encumbrance of assets (so long as such provision is generally consistent with a comparable provision of the Credit Documents) and (d) restrictions arising in connection with the Sabra Senior Notes.

3

SUBPART 2.3    Section 7.14 of the Existing Credit Agreement is hereby deleted in its entirety and replaced with the following:

7.14    Limitation on Restricted Actions.  

No Credit Party will, nor will it permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Person to (a) pay dividends or make any other distributions to the REIT Guarantor on its Capital Stock or with respect to any other interest or participation in, or measured by, its profits, (b) pay any Indebtedness or other obligation owed to any Credit Party, (c) make loans or advances to any Credit Party, (d) sell, lease or transfer any of its properties or assets to any Credit Party, or (e) pledge its assets pursuant to the Credit Documents or any renewals, refinancings, exchanges, refundings or extension thereof, except (i) in respect of any of the matters referred to in clauses (a)‐(d) above, for such encumbrances or restrictions existing under or by reason of (A) this Credit Agreement and the other Credit Documents, (B) applicable Law, (C) any Lien or any documentation or instrument governing any Lien permitted under Section 7.01 provided that any such restriction contained therein relates only to the asset or assets subject to such Lien, (D) customary restrictions and conditions contained in any agreement relating to the sale of any Unencumbered Property permitted under Section 7.07, pending the consummation of such sale, and (E) the Sabra Senior Note Indentures and (ii) in respect of any of the matters referred to in clauses (c) through (e) above, pursuant to a provision in any agreement governing unsecured Funded Debt so long as such provision is generally consistent with a comparable provision of the Credit Documents. 

PART 3 
CONDITIONS TO EFFECTIVENESS

SUBPART 3.1    First Amendment Effective Date.  This Amendment shall be and become effective as of the date hereof (the “First Amendment Effective Date”) when all of the conditions set forth in this Part 3 shall have been satisfied, and thereafter this Amendment shall be known, and may be referred to, as the “First Amendment”.

SUBPART 3.2    Execution of Counterparts of Amendment.  The Administrative Agent shall have received counterparts (or other evidence of execution, including telephonic message or other electronic imaging means, satisfactory to the Administrative Agent) of this Amendment, which collectively shall have been duly executed on behalf of the Borrower, the REIT Guarantor, the other Guarantors, the Required Lenders and the Administrative Agent.  

PART 4 
MISCELLANEOUS

SUBPART 4.1    Cross‐References.  References in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment.

4

SUBPART 4.2    Construction.  This Amendment is a Credit Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement.

SUBPART 4.3    Counterparts.  This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.  Delivery by facsimile or other electronic imaging means by any of the parties hereto of an executed counterpart of this Amendment shall be effective as an original executed counterpart hereof and shall be deemed a representation that an original executed counterpart will be delivered.

SUBPART 4.4    Representations and Warranties.  The Credit Parties hereby represent and warrant to the Administrative Agent and the Lenders that, (a) no Default or Event of Default exists under the Existing Credit Agreement, after giving effect to this Amendment and (b) the representations and warranties set forth in Article V of the Existing Credit Agreement as amended by this Amendment are, subject to the limitations set forth therein, true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date, in which case, they were true and correct in all material respects as of such earlier date).

SUBPART 4.5    Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

SUBPART 4.6    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

SUBPART 4.7    Acknowledgment.  The Credit Parties acknowledge and consent to all of the terms and conditions of this Amendment and agree that this Amendment does not operate to reduce or discharge the Credit Parties’ obligations under the Existing Credit Agreement or the other Credit Documents.  The Credit Parties further acknowledge and agree that the Credit Parties have no claims, counterclaims, offsets, or defenses to the Credit Documents and the performance of the Credit Parties’ obligations thereunder.  

SUBPART 4.8    Binding Effect.  This Amendment, the Existing Credit Agreement as amended by this Amendment and the other Credit Documents embody the entire agreement between the parties and supersede all prior agreements and understandings, if any, relating to the subject matter hereof.  The Credit Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  

SUBPART 4.9    General.  Except as amended hereby, the Existing Credit Agreement and all other Credit Documents shall continue in full force and effect.

SUBPART 4.10    Severability.  If any provision of this Amendment is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

SUBPART 4.11.  FATCA.  For purposes of determining withholding Taxes imposed under the Foreign Account Tax Compliance Act (FATCA), from and after the effective date of this Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Credit Agreement as not qualifying as a "grandfathered obligation" within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

5

[The remainder of this page is intentionally left blank.]

6

IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

		
	BORROWER: 
	SABRA HEALTH CARE LIMITED PARTNERSHIP,  
a Delaware limited partnership

By:    SABRA HEALTH CARE REIT, INC., 
its general partner

By:    /s/ Harold W. Andrews, Jr.        
Name:    Harold W. Andrews, Jr.
Title:   Chief Financial Officer

REIT GUARANTOR:    SABRA HEALTH CARE REIT, INC.,
a Maryland corporation

By:    /s/ Harold W. Andrews, Jr.        
Name:    Harold W. Andrews, Jr.
Title:   Chief Financial Officer

GUARANTORS:    BAY TREE NURSING CENTER, LLC, 
OAKHURST MANOR NURSING CENTER LLC,
ORCHARD RIDGE NURSING CENTER LLC,
SUNSET POINT NURSING CENTER LLC, and
WEST BAY NURSING CENTER LLC,
each a Massachusetts limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:  Harold W. Andrews, Jr.
Title:      Chief Financial Officer

C.H.P. LIMITED LIABILITY COMPANY,
C.H.R. LIMITED LIABILITY COMPANY, and
DJB REALTY L.L.C.,
each a New Hampshire limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:  Harold W. Andrews, Jr.
Title:      Chief Financial Officer

1104 WESLEY AVENUE, LLC, 
395 HARDING STREET, LLC, 
CONNECTICUT HOLDINGS I, LLC, 
KENTUCKY HOLDINGS I, LLC, 
NEW HAMPSHIRE HOLDINGS, LLC, 
NORTHWEST HOLDINGS I, LLC, 
RESERVOIR REAL ESTATE HOLDINGS, LLC
SABRA ALPENA LLC,
SABRA BEAUMONT PREFERRED EQUITY, LLC,
SABRA BEAVERCREEK PREFERRED EQUITY, LLC, 
SABRA CADILLAC LLC, 
SABRA CALIFORNIA II, LLC,
SABRA CANADIAN HOLDINGS, LLC
SABRA CONNECTICUT II, LLC,
SABRA GAYLORD LLC, 
SABRA GREENVILLE LLC, 
SABRA HEALTH CARE FRANKENMUTH, LLC, 
SABRA HEALTH CARE HOLDINGS I, LLC, 
SABRA HEALTH CARE HOLDINGS II, LLC, 
SABRA HEALTH CARE HOLDINGS III, LLC, 
SABRA HEALTH CARE HOLDINGS IV, LLC, 
SABRA HEALTH CARE NORTHEAST, LLC, 
SABRA HEALTH CARE PENNSYLVANIA, LLC, 
SABRA HEALTH CARE VIRGINIA, LLC, 
SABRA HEALTH CARE VIRGINIA II, LLC, 
SABRA HEALTH CARE, L.L.C., 
SABRA HEALTH CARE DELAWARE, LLC,
SABRA IDAHO, LLC,
SABRA KENTUCKY, LLC,
SABRA LAKE DRIVE, LLC, 
SABRA MANISTEE LLC, 
SABRA MASON LLC, 
SABRA MECOSTA LLC, 
SABRA MICHIGAN, LLC, 
SABRA MIDLAND LLC, and
SABRA MONTANA, LLC, 
each a Delaware limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA NC, LLC,
SABRA NEW BRAUNFELS PREFERRED EQUITY, LLC, 
SABRA NEW MEXICO, LLC,
SABRA OHIO, LLC,
SABRA PHOENIX TRS VENTURE, LLC,
SABRA PHOENIX TRS VENTURE II, LLC,
SABRA PHOENIX WISCONSIN, LLC, and
SABRA TAWAS LLC, 
each a Delaware limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

HHC 1998-I TRUST, 
a Massachusetts business trust

By:      /s/ Harold W. Andrews, Jr.    
Name:     Harold W. Andrews, Jr.
Title:      As Trustee and not individually

SABLE-AURORA, LLC,
a Colorado limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:    Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA CANADIAN GP I INC., 
a British Columbia corporation

By:     /s/ Harold W. Andrews, Jr.    
Name:    Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA CANADIAN PROPERTIES I, LIMITED PARTNERSHIP, a British Columbia limited partnership

		
	By: 
	SABRA CANADIAN GP I INC.,  
a British Columbia corporation,  
its general partner

By:      /s/ Harold W. Andrews, Jr.
Name: Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA CAPITAL CORPORATION, 
a Delaware corporation

By:      /s/ Harold W. Andrews, Jr.    
Name:    Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA TEXAS GP, LLC, and
SABRA TEXAS HOLDINGS GP, LLC,
each a Texas limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA TEXAS HOLDINGS, L.P.,  
a Texas limited partnership

By:    SABRA TEXAS HOLDINGS GP, LLC,
a Texas limited liability company, 
its general partner

By:      /s/ Harold W. Andrews, Jr.
Name:    Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA TEXAS PROPERTIES, L.P.,  
SABRA TEXAS PROPERTIES II, L.P.,  
SABRA TEXAS PROPERTIES III, L.P., and
SABRA TEXAS PROPERTIES IV, L.P.,  
each a Texas limited partnership

By:    SABRA TEXAS GP, LLC,
a Texas limited liability company, 
its general partner

By:      /s/ Harold W. Andrews, Jr.
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SB FOUNTAIN CITY, LLC,
a Georgia limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SB NEW MARTINSVILLE, LLC,
a West Virginia limited liability company

By:      /s/ Harold W. Andrews, Jr.    
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

SABRA HEALTH CARE INVESTMENTS, LP,  
a Delaware limited partnership

By:    SABRA PHOENIX TRS VENTURE, LLC,
a Delaware limited liability company, 
its general partner

By:      /s/ Harold W. Andrews, Jr.
Name:     Harold W. Andrews, Jr.
Title:      Chief Financial Officer

ADMINISTRATIVE AGENT
AND LENDERS:                BANK OF AMERICA, N.A.,
as Administrative Agent

By:    /s/ Yinghua Zhang            
Name:    Yinghua Zhang
Title:    Director

BANK OF AMERICA, N.A., as L/C Issuer, Swing Line Lender and as a Lender

By:    /s/ Yinghua Zhang            
Name:    Yinghua Zhang
Title:    Director

CITIZENS BANK, NATIONAL ASSOCIATION, as a Lender

By:    /s/ Craig Afrarne        
Name:    Craig Afrarne
Title: V.P.    

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender

By:    /s/ Thomas Randolph            
Name:    Thomas Randolph
Title:    Managing Director

By:    /s/ Roger E. Heflin, Jr.        
Name:    Roger E. Heflin, Jr.
Title:    Managing Director    

BARCLAYS BANK PLC, as a Lender

By:                        
Name:
Title:

CITIBANK, N.A., as a Lender

By:    /s/ Michael Chlopak            
Name:    Michael Chlopak
Title:    Vice President    

ROYAL BANK OF CANADA, as a Lender

By:    /s/ Joshua Freedman            
Name:    Joshua Freedman
Title:    Authorized Signatory

WELLS FARGO BANK, N.A., as a Lender

By:    /s/ Darin Mullis            
Name:    Darin Mullis
Title:    Director

JPMORGAN CHASE BANK, N.A., as a Lender

By:    /s/ Rita Lai                
Name:    Rita Lai
Title:    Authorized Signer    

SUNTRUST BANK, as a Lender

By:    /s/ John Cappellari            
Name:    John Cappellari
Title:    Director

THE HUNTINGTON NATIONAL BANK, as a Lender

By:    /s/ Michael Shiferaw            
Name:    Michael Shiferaw
Title:    Vice President

RAYMOND JAMES BANK, N.A., as a Lender

By:    /s/ James M. Armstrong        
Name:    James M. Armstrong
Title:    Senior Vice President    

STIFEL BANK & TRUST, as a Lender

By:    /s/ Joseph L. Sooter, Jr.        
Name:    Joseph L. Sooter, Jr.
Title:    Senior Vice President    

CHANG HWA COMMERCIAL BANK LTD., LOS ANGELES BRANCH, as a Lender

By:                        
Name:
Title:

CHANG HWA COMMERCIAL BANK LTD., as a Lender

By:                        
Name:
Title:Ex103-DirectorsCompensationPolicy

SABRA HEALTH CARE REIT, INC.
DIRECTORS’ COMPENSATION POLICY 
(Effective June 17, 2015)
Directors of Sabra Health Care REIT, Inc., a Maryland corporation (the “Company”), who are not employed by the Company or one of its subsidiaries (“non-employee directors”) are entitled to the compensation set forth below for their service as a member of the Board of Directors (the “Board”) of the Company.  The Board has the right to amend this policy from time to time.
	
		
	Cash Compensation
	 

	Annual Retainer
	$55,000

	Additional Chair/Lead Independent Director Retainer
	$20,000

	Additional Committee Chair Retainers
	 

	Audit Committee Chair
	$15,000

	Compensation Committee Chair
	$10,000

	Nominating and Governance Committee Chair
	$10,000

	Committee Meeting Fee (per meeting)
	$1,000

	 
	 

	Equity Compensation
	 

	Annual Equity Award
	$90,000

Cash Compensation 
Each non-employee director will be entitled to an annual cash retainer while serving on the Board in the amount set forth above (the “Annual Retainer”).  A non-employee director who serves as the Chair of the Board or the Company’s Lead Independent Director will be entitled to an additional annual cash retainer while serving in that position in the amount set forth above (the “Additional Chair/Lead Independent Director Retainer”).  A non-employee director who serves as the Chair of the Audit Committee, the Compensation Committee or the Nominating and Governance Committee of the Board will be entitled to an additional annual cash retainer while serving in that position in the applicable amount set forth above (an “Additional Committee Chair Retainer”).  A non-employee director who attends a meeting of the Audit Committee, the Compensation Committee or the Nominating and Governance Committee of the Board (each, a “Committee Meeting”) will be entitled to a fee for attendance at the meeting in the amount set forth above (a “Committee Meeting Fee”); provided that the Committee Meeting Fee for a particular Committee Meeting will be reduced to $500 if the meeting is either (1) a telephonic meeting lasting for less than thirty minutes, or (2) a meeting that is held as an in-person meeting but the non-employee director attends the meeting other than in person. 
The amounts of the Annual Retainer, Additional Chair/Lead Independent Director Retainer, and Additional Committee Chair Retainers reflected above are expressed as annualized amounts.  These retainers will be paid on a quarterly basis, at the end of each quarter in arrears, and will be pro-rated if a non-employee director serves (or serves in the corresponding position, as the case may be) for only a portion of the quarter (with the proration based on the number of calendar days in the quarter that the director served as a non-employee director or held the particular position, as the case may be).  Committee Meeting Fees for attendance at one or more meetings that occur in a particular quarter will be paid at the end of that quarter.
Equity Awards
Annual Equity Awards for Non-Employee Directors 
On the date of each annual meeting of the Company’s stockholders, each non-employee director then in office will automatically be granted an award of restricted stock units (an “Annual RSU Award”) determined by dividing (1) the Annual Equity Award grant value set forth above by (2) the per-share closing price of the Company’s common stock on the date of such annual meeting (rounded down to the nearest whole unit).  Each Annual RSU 

1

 

Award will vest in equal monthly installments over the one-year period following the date of grant.  Should the annual meeting of the Company’s stockholders in the year following the year in which the award was granted occur prior to the last vesting date of the award, the outstanding and unvested portion of the award will vest on the day prior to that annual meeting.  In the event that more than one annual meeting of the Company’s stockholders occurs during a given fiscal year, Annual RSU Awards will be made only in connection with the first such meeting to occur in that year. 
For each new non-employee director appointed or elected to the Board other than on the date of an annual meeting of the Company’s stockholders, on the date that the new non-employee director first becomes a member of the Board, the new non-employee director will automatically be granted a pro-rata portion of the Annual RSU Award (a “Pro-Rata Annual RSU Award”) determined by dividing (1) a pro-rata portion of the Annual Equity Award grant value set forth above by (2) the per-share closing price of the Company’s common stock on the date the new non-employee director first became a member of the Board.  The pro-rata portion of the Annual Equity Award grant value for purposes of a Pro-Rata Annual RSU Award will equal the Annual Equity Award grant value set forth above multiplied by a fraction (not greater than one), the numerator of which is 12 minus the number of whole months that as of the particular grant date had elapsed since the Company’s last annual meeting of stockholders at which Annual RSU Awards were granted by the Company to non-employee directors, and the denominator of which is 12, with the result to be rounded down to the nearest whole unit.  Each Pro-Rata Annual RSU Award will vest in equal monthly installments based on the number of whole months remaining in the period beginning with the month following the month in which the Pro-Rata Annual RSU Award was granted and ending with the month in which the next scheduled annual meeting of the Company’s stockholders in which Annual RSU Awards will be granted.
Provisions Applicable to All Non-Employee Director Equity Awards
Each restricted stock unit award will be made under and subject to the terms and conditions of the Company’s 2009 Performance Incentive Plan (the “2009 Plan”) or any successor equity compensation plan approved by the Company’s stockholders and in effect at the time of grant, and will be evidenced by, and subject to the terms and conditions of, an award agreement in the form approved by the Board to evidence such type of grant pursuant to this policy (the “Form of Award Agreement”).  To the extent then vested, restricted stock units will generally be paid in an equal number of shares of the Company’s common stock on the earlier to occur of (1) that date that is five years following the original grant date, (2) the date the non-employee director ceases to be a member of the Board, or (3) the occurrence of a “change in control.”
Restricted stock unit awards granted under the 2009 Plan are generally forfeited as to the unvested portion of the award upon the non-employee director’s termination of service as a director for any reason.  However, vesting of a non-employee director’s outstanding and unvested restricted stock units will accelerate upon a change in control of the Company or should the director’s services terminate due to the director’s death or disability.
Non-employee directors are entitled to receive dividend equivalents with respect to outstanding and unpaid restricted stock units granted pursuant to this policy.  Dividend equivalents, if any, are paid in the form of a credit of additional restricted stock units under the 2009 Plan and are subject to the same vesting, payment and other provisions as the underlying restricted stock units.
  The definition of “change in control” and specific payment, termination and dividend equivalent provisions applicable to an award are set forth in the related Form of Award Agreement.
Elective Grants of Equity Awards
Non-employee directors may participate in the Company’s Non-Employee Directors Stock-For-Fees Program, pursuant to which they may elect that certain of their cash retainers be converted into the right to receive an award of stock units under the 2009 Plan.
Expense Reimbursement 
All non-employee directors will be entitled to reimbursement from the Company for their reasonable travel (including airfare and ground transportation), lodging and meal expenses incident to meetings of the Board or committees thereof or in connection with other Board-related business.  The Company will make reimbursement to a non-employee director within a reasonable amount of time following submission by the non-employee director of reasonable written substantiation for the expenses.

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]