Document:

FGL-12.31.2013-10-Q Ex. 10.20

Exhibit 10.20

FIDELITY & GUARANTY LIFE

2013 UNRESTRICTED STOCK AGREEMENT FOR COMPENSATION COMMITTEE MEMBER
This UNRESTRICTED STOCK AGREEMENT, dated as of December 12, 2013 (the “Grant Date”) (this “Agreement”) is entered into by and between Fidelity & Guaranty Life, a Delaware corporation (the “Company”) and [[FIRSTNAME]] [[LASTNAME]] (the “Employee”).
WHEREAS, the Company and the Employee intend hereby to enter into this Agreement to evidence the Award of Unrestricted Stock to the Employee.
NOW, THEREFORE, in consideration of the premises and subject to the terms and conditions set forth herein, the parties hereto agree as follows:
Section 1.Grant of Unrestricted Stock.  Subject to the terms of this Agreement, the Company hereby evidences and confirms, effective as of the date hereof, its grant to the Employee of the number of shares of Unrestricted Stock specified on the signature page hereof.  This grant is not made under the Plan; however, this Agreement shall be construed and administered as though it were subject to the terms of the Plan.  As of the Grant Date, the Unrestricted Stock will be registered in the Employee’s name.  
Section 2.Vesting.  The Unrestricted Stock granted pursuant to this Agreement shall be fully vested at all times.     
Section 3.Employee’s Representations and Warranties
(a)Access to Information, Etc.  The Employee represents and warrants as follows:
(i)the Employee understands the terms and conditions that apply to the Unrestricted Stock and the risks associated with the Unrestricted Stock; and
(ii)as of the Grant Date, the Employee is an officer, employee or director of the Company or one of its Subsidiaries.
(b)No Right to Awards.  The Employee acknowledges and agrees that the grant of any Unrestricted Stock (i) is being made on an exceptional basis and is not intended to be renewed or repeated, (ii) is entirely voluntary on the part of the Company and its Subsidiaries; and (iii) should not be construed as creating any obligation on the part of the Company or any of its Subsidiaries to offer any Unrestricted Stock in the future.
Section 4.Certain Definitions.  As used in this Agreement, capitalized terms that are not defined herein have the respective meanings given to them in the Plan, and the following additional terms shall have the following meanings:
“Agreement” means this Employee Unrestricted Stock Agreement, as amended from time to time in accordance with the terms hereof.
“Employee” means the grantee of the Unrestricted Stock whose name is set forth on the signature page of this Agreement (whether an employee, consultant or director); provided that following such person’s death the “Employee” shall be deemed to include such person’s beneficiary or estate and following such person’s Disability, the “Employee” shall be deemed to include such person’s legal representative. 

“Plan” means the Fidelity & Guaranty Life 2013 Stock Incentive Plan, as amended from time to time in accordance with its terms.  This grant is not made under the Plan; however, this Agreement shall be construed and administered as though it were subject to the terms of the Plan.
“Unrestricted Stock” means the Stock evidenced by (and subject to the terms and conditions of) this Agreement.  
“Securities Act” means the United States Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.
Section 5.Miscellaneous
(a)Withholding.  The Company or one of its Subsidiaries shall require the Employee to remit to the Company an amount in cash sufficient to satisfy any applicable U.S. federal, state and local and non-U.S. tax withholding obligations that arise upon grant of the Unrestricted Stock.  In order to give effect to this Section 5(a), if so permitted by the Committee, the Company may retain a number of shares of Unrestricted Stock that have an aggregate Fair Market Value as of the Grant Date equal to the amount of such taxes required to be withheld (and the Employee shall thereupon be deemed to have satisfied his obligations under this Section 5(a)).  The foregoing method of withholding shall not be applied to the extent that the Employee elects to satisfy his withholding obligation by delivery of cash to the Company from other sources.  In addition, the foregoing method of withholding shall not be available if withholding in this manner would violate any financing instrument of the Company or any of its Subsidiaries.  
(b)Authorization to Share Personal Data.  The Employee authorizes any affiliate of the Company that employs the Employee or that otherwise has or lawfully obtains personal data relating to the Employee to divulge such personal data to the Company if and to the extent appropriate in connection with this Agreement.   
(c)Notices.  All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered personally or sent by certified or express mail, return receipt requested, postage prepaid, or by any recognized international equivalent of such delivery, to the Company or the Employee, as the case may be, at the following addresses or to such other address as the Company or the Employee, as the case may be, shall specify by notice to the other:
(i)if to the Company, to it at:
Fidelity & Guaranty Life
1001 Fleet Street, 6th Floor
Baltimore, MD 21202
Att: General Counsel
With a copy to:
Harbinger Group, Inc.
450 Park Ave, 30th Floor
New York New York 10022
Att: General Counsel

(ii)if to the Employee, to the Employee at his or her most recent address as shown on the books and records of the Company or Subsidiary employing the Employee.
All such notices and communications shall be deemed to have been received on the date of delivery if delivered personally or on the third business day after the mailing thereof.  

(d)Binding Effect; Benefits.  This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns.  Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.
(e)Waiver.  Any party hereto or beneficiary hereof may by written notice to the other parties (A) extend the time for the performance of any of the obligations or other actions of the other parties under this Agreement, (B) waive compliance with any of the conditions or covenants of the other parties contained in this Agreement and (C) waive or modify performance of any of the obligations of the other parties under this Agreement.  Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of any party or beneficiary, shall be deemed to constitute a waiver by the party or beneficiary taking such action of compliance with any representations, warranties, covenants or agreements contained herein.  The waiver by any party hereto or beneficiary hereof of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by a party or beneficiary to exercise any right or privilege hereunder shall be deemed a waiver of such party’s or beneficiary’s rights or privileges hereunder or shall be deemed a waiver of such party’s or beneficiary’s rights to exercise the same at any subsequent time or times hereunder.
(f)Amendment.  This Agreement may not be amended, modified or supplemented orally, but only by a written instrument executed by the Employee and the Company.  
(g)Assignability.  Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by the Company or the Employee without the prior written consent of the other party.
(h)Applicable Law.  This Agreement shall be governed by and construed in accordance with the law of the State of Delaware regardless of the application of rules of conflict of law that would apply the laws of any other jurisdiction.
(i)Arbitration; Waiver of Jury Trial.  Any dispute, controversy or claim arising out of or pursuant to this Agreement, or any undertakings, covenants and agreements incorporated by reference into this Agreement, shall be adjudicated in accordance with Section 5 of the Plan (even though this grant is not made under the Plan).
(j)Titles and Headings.  The titles and headings of the sections in this Agreement are for convenience of reference only and shall not affect the meaning or interpretation of this Agreement.
(k)Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein shall also include the feminine; the plural shall include the singular and the singular shall include the plural.
(l)Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.
(m)No Right to Continued Employment. Nothing in this Agreement shall be deemed to confer on the Employee any right to continue in the employ of the Company or any Subsidiary, or to interfere with or limit in any way the right of the Company or any Subsidiary to terminate such employment at any time.
(n)Clawback.  Employee acknowledges and agrees to be bound by the clawback provisions set forth in Section 20(b) of the Plan (even though this grant is not made under the Plan).
 

IN WITNESS WHEREOF, the Company and the Employee have executed this Agreement as of the date first above written.
FIDELITY & GUARANTY LIFE
By:        
Name: Lee Launer
Title: President & CEO
THE EMPLOYEE:

            
[[FIRSTNAME]] [[LASTNAME]]   

	
		
	Total Number of Shares
of Unrestricted Stock (Common Stock)
Granted Pursuant to this Agreement:  
	[[SHARESGRANTED]]ex101.htm

DAVID BISANG

RIGISTRASSE 12,

CH-8802 KILCHBERG, ZH

Fax (41) 79-301-8218

January 30, 2014

Guido Hilekes, CEO

Octagon 88 Resources, Inc.

Hochwachtstrasse 4,

Steinhausen CH 6312

Re:           Placement Agent Agreement

Dear Mr. Hilekes:

This will confirm the understanding and agreement (the “Agreement”) between DAVID BISANG,  a Swiss citizen (“DVB”), and OCTAGON 88 RESOURCES INC., a Nevada corporation (the “Company”), as follows:

1.           The Company hereby engages DVB on a best efforts basis as its non-exclusive agent in the private placement or similar unregistered transaction of equity or equity-linked securities of the Company (the “Securities”) to a limited number of institutional, accredited individual or strategic investors (each an “Investor”) at a price and upon terms satisfactory to the Company (the “Transaction”). For purposes hereof, the term “Securities” also includes a convertible loan or other type of investment convertible into or exchangeable for or otherwise linked to the equity of the Company.

2.           The appointment and authorization of DVB under Section 1 of this Agreement shall commence on the date hereof and shall expire 12 months after the date hereof, (the “Term”).

3.           The Company acknowledges and agrees that DVB will be using, and relying upon, the Company to furnish DVB with written materials and information, including but not limited to financial statements, to be provided to potential Investors (the “Materials”) describing the Company and the Transaction (or Related Transaction, as defined below) concerning the Company’s business, operations, assets, liabilities and receivables, and DVB will be using, and relying upon, such Materials supplied by the Company, its officers, agents, and others and any other publicly available information without any independent investigation or verification thereof or independent appraisal by DVB of the Company or its business or assets. DVB does not assume responsibility for the accuracy or completeness of the Materials, including but not limited to any disclosure materials related to the Transaction (or Related Transaction), except for such information that is provided in writing by DVB to the Company that is independently produced by DVB and not based on Materials provided by the Company or information available from generally recognized public sources. The Company shall provide DVB with access to the Company’s officers, directors, accountants, counsel and other advisors, and shall keep DVB fully informed of any events that might have a material effect on the financial condition of the Company. The Company represents and warrants to 

 

 

  

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DVB that all information concerning the Company, including, without limitation, all information contained in the Materials, will be true, complete and accurate in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances under which such statements are made. If at any time prior to the completion of a Transaction (or Related Transaction) an event occurs which would cause the Materials (as supplemented or amended) to contain an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, the Company will notify DVB immediately of such event. Notwithstanding any previously executed non-disclosure agreement, Company agrees DVB is permitted to show Materials to prospective investors in order to induce them to participate in a Transaction as contemplated by this Agreement.

4.           The Company agrees to pay DVB, upon the closing of each Transaction with Investors (each, a “Closing”), the following compensation: (i) 8% of the aggregate consideration raised in each Closing, payable in cash by wire transfer at the time of the Closing, (ii) and (iii) warrants to purchase 5% of the number of shares of the common stock of the Company sold to Investors at such Closing, taking into consideration any increase in shares under a ratchet or similar provision pursuant to which the number of shares initially purchased is subsequently increased (the “Warrants”). The Warrants will be identical to any warrants issued to Investors.

 

The foregoing fees are payable for any sale of Securities that occurs during the Term or within 24 months thereafter with respect to Investors identified by DVB.

5.           For purposes of this Agreement:

(a)           Aggregate consideration shall mean the total consideration (stock, cash, assets and all other property (real or personal, tangible or intangible) plus debt and liabilities assumed (including, without limitation, loans, indebtedness for borrowed money, pension liabilities and guarantees), funding, advances, license fees, royalty fees, joint venture interests or other property, obligations or services) exchanged or received, or to be exchanged or received, directly or indirectly by the Company or any of its security holders in connection with any Transaction or Related Transaction, including, without limitation, any amounts paid or received, or to be paid or received, pursuant to any employment agreement, consulting agreement, loan agreement, covenant not to compete, option, warrant, escrow payment or any amount payable in the future when such funds are paid to the Company, earn-out or contingent payment right or similar arrangement, agreement or understanding, whether oral or written, associated with such Transaction or Related Transaction.

  

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(b)           In the event consideration is to be paid in whole or in part by installment payments, the portion of DVB’s fee relating thereto shall be calculated and paid when and as such installment payments are made.

(c)           Consideration received by the Company paid in whole or in part in the form of securities or other noncash consideration will be valued at its fair market value, as reasonably determined by an independent third party to be mutually agreed upon by the Company and DVB, as of the day prior to the Closing (or later date on which a contingent payment is made), provided, however, that if such consideration consists of securities with an existing trading market, such securities will be valued at the average of the last sales price for such securities on the five trading days prior to the date of the Closing (or later date on which a contingent payment is made).

6.           The Company shall reimburse DVB periodically for its reasonable and customary out-of-pocket and incidental expenses incurred during the term of its engagement hereunder, including the fees and expenses of its legal counsel and those of any advisor retained by DVB.    The Company shall pay out-of-pocket and incidental expenses including the fees and expenses of DVB’s legal counsel and any advisor retained by DVB to a maximum of $1,000 after which amount DVB shall get prior approval for any additional expenses prior to incurring such expenses.   The Company shall not be required to pay any additional fees and expenses for which DVB does not get prior approval.

7.           The Company agrees to provide indemnification as set forth in Annex A attached hereto and made a part hereof.

8.           Upon a Closing, the Company agrees that DVB has the right to place notices and/or advertisements in financial and other newspapers and journals (whether in print or on the internet), and to publicize on its own website and/or marketing materials, at its own expense, describing its services to the Company hereunder.

9.           The provisions of Sections 4, 6, and 7 (including, without limitation, the provisions of indemnification referred to in Section 7) shall survive the expiration or termination of this Agreement.

10.           Intentionally left blank.

11.           Nothing contained in this Agreement shall limit or restrict the right of DVB or of any member, employee, agent or representative of DVB, to be a shareholder, member, partner, director, officer, employee, agent or representative of, or to engage in, any other business, whether of a similar nature or not, nor to limit or restrict the right of DVB to render services of any kind to any other corporation, company, firm, individual or association.

12.           The failure or neglect of the parties hereto to insist, in any one or more instances, upon the strict performance of any of the terms or conditions of this Agreement, or their waiver of strict performance of any of the terms or conditions of this Agreement, shall not be construed as a waiver or relinquishment in the future of such term or condition, but the same shall continue in full force and effect.

  

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13.           Any notices hereunder shall be in writing, and shall be sent to the Company and to DVB at their respective addresses set forth above. Any notice shall be given by registered or certified mail, postage prepaid, and shall be deemed to have been given when deposited in the United States mail. Either party may designate any other address to which notice shall be given by giving written notice to the other party of such change of address in the manner herein provided.

14.           This Agreement shall inure to the benefit of and be binding upon the respective, Affiliates, successors and assigns of the parties hereto. The term “Affiliates” shall mean, with respect to any person or entity, any other person or entity who, directly or indirectly, through one or more intermediaries controls, is controlled by, or is under common control with such person or entity and any spouse, parent or issue of any such person; “control” means the power, directly or indirectly, to direct or cause the direction of the management and policies of a person or entity whether through ownership of voting securities, by contract or otherwise.

 

 

 15.           This Agreement has been made in Switzerland and shall be construed and governed in accordance with the laws thereof without giving effect to principles governing conflicts of law. The parties irrevocably agree that any legal action or proceeding under, arising out of or in any manner relating to this Agreement shall be brought exclusively in any court of competent jurisdiction in Switzerland. Each of the parties, by its execution and delivery of this Agreement, expressly and irrevocably assents and submits to the jurisdiction of any of such courts in any such action or proceeding. The parties further irrevocably consent to the service of any complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to such party by hand or by registered or certified mail in the manner prescribed in Section 13 hereof. The parties further irrevocably consent that any judgment rendered by such court in Switzerland may be entered in other court having competent jurisdiction thereof.

16.           This Agreement contains the entire agreement between the parties, may not be altered or modified, except in writing and signed by the party to be charged thereby, and supersedes any and all previous agreements between the parties relating to the subject matter hereof.

17.           DVB will not have any rights or obligations in connection with the sale and purchase of the Securities contemplated by this Agreement except as expressly provided in this Agreement. In no event will DVB be obligated to purchase the Securities for its own account or for the accounts of its customers. DVB will have the right, but not the obligation, however, to determine the allocation of the Securities among potential purchasers introduced by DVB, provided that such allocation is reasonably acceptable to the Company.

18.           DVB is acting as financial advisor and is not an expert on, and cannot render opinions regarding, legal, accounting, regulatory, or tax matters. The Company should consult with its other professional advisors concerning these matters before undertaking any Transaction or Related Transaction. All services, advice and information and reports provided by DVB to the Company in connection with this assignment shall be for the sole benefit of the Company and shall not be relied upon by any other person.

  

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DVB is delighted to accept this engagement and looks forward to working with you on this assignment. Please confirm that the foregoing correctly sets forth our understanding by signing the enclosed duplicate of this letter in the space provided and returning it, whereupon this letter shall constitute a binding agreement as of the date first above written.

Very truly yours,

DAVID BISANG

By:___________________________________

David Bisang

ACCEPTED AND AGREED

AS OF THE DATE FIRST

ABOVE WRITTEN:

OCTAGON 88 RESOURCES, INC.

By:______________________________________

Guido Hilekes, Chief Executive Officer

[Annex A follows]

 

  

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Annex A

 

Indemnification Provisions

In connection with the engagement of DVB by the Company pursuant to the Agreement, the Company hereby agrees as follows:

	
1.  

	
In connection with or arising out of or relating to the engagement of DVB under the Agreement, or any actions taken or omitted, services performed or matters contemplated by or in connection with the Agreement, the Company agrees to reimburse DVB, its affiliates and their respective members, officers, employees, agents and controlling persons (each an “Indemnified Party”) promptly upon demand for actual, out-of-pocket expenses (including reasonable fees and expenses for legal counsel) as they are incurred in connection with the investigation of, preparation for or defense of any pending or threatened claim, or any litigation, proceeding or other action in respect thereof (collectively, a “Claim”). The Company also agrees (in connection with the foregoing) to indemnify and hold harmless each Indemnified Party from and against any and all out-of-pocket losses, claims, damages and liabilities, joint or several, to which any Indemnified Party may become subject, including any amount paid in settlement of any litigation or other action (commenced or threatened) to which the Company shall have consented in writing (such consent not to be unreasonably withheld), whether or not any Indemnified Party is a party and whether or not liability resulted; provided, however, that the Company shall not be liable pursuant to this paragraph in respect of any loss, claim, damage or liability to the extent that a court or other agency having competent jurisdiction shall have determined by final judgment (not subject to further appeal) that such loss, claim, damage or liability was incurred solely as a direct result of the willful misconduct or gross negligence of such Indemnified Party. The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or its partners, security holders or creditors related to or arising out of the engagement of DVB pursuant to, or the performance by DVB of the services contemplated by, this Agreement except to the extent that any loss, claim, damage or liability is determined in a final judgment (not subject to further appeal) by a court to have resulted solely from willful misconduct or gross negligence of DVB.

	
2.  

	
An Indemnified Party shall have the right to retain separate legal counsel of its own choice to conduct the defense and all related matters in connection with any Claim. The Company shall pay the reasonable fees and expenses of such legal counsel, and such counsel shall to the fullest extent, consistent with its professional responsibilities, cooperate with the Company and any legal counsel designated by the Company.

	
3.  

	
The Company will not, without the prior written consent of each Indemnified Party, settle, compromise or consent to the entry of any judgment in any pending or threatened Claim in respect of which indemnification may be reasonably sought hereunder (whether or not any Indemnified Person is an actual or potential party to such Claim), unless such settlement, compromise or consent includes an unconditional, irrevocable release of each Indemnified Person against whom such Claim may be brought hereunder from any and all liability arising out of such Claim.

  

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4.  

	
In the event the indemnity provided for in paragraphs 1 and 2 of this Annex A is unavailable or insufficient to hold any Indemnified Party harmless, then the Company shall contribute to amounts paid or payable by an Indemnified Party in respect of such Indemnified Party’s losses, claims, damages and liabilities as to which the indemnity provided for in paragraphs 1 and 2 of this Annex A is unavailable or insufficient (i) in such portion as appropriately reflects the relative benefits received by the Company, on the one hand, and the Indemnified Party, on the other hand, in connection with the matters as to which losses, claims, damages or liabilities relate, or (ii) if the allocation provided by (i) above is not permitted by applicable law, in such proportion as appropriately reflects not only the relative benefits referred to in clause (i) but also the relative fault of the Company, on the one hand, and the Indemnified Parties, on the other hand, as well as any other equitable considerations. The amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed to include any reasonable legal or other out-of-pocket fees and expenses incurred in defending any litigation, proceeding or other action or claim. Notwithstanding the provisions hereof, DVB’s share of the liability hereunder shall not be in excess of the amount of fees actually received by DVB under the Agreement (excluding any amounts received as reimbursement of expenses by DVB).

	
5.  

	
In the event any Indemnified Party is requested or required to appear as a witness in any action, suit or proceeding brought by or on behalf of or against the Company or any affiliate or any participant in a Transaction (or Related Transaction) covered hereby in which such Indemnified Party is not named as a defendant, the Company agrees to reimburse DVB and such Indemnified Party for all reasonable disbursements incurred by them in connection with such Indemnified Party’s appearing and preparing to appear as a witness, including, without limitation, the fees and disbursements of their legal counsel, and to compensate DVB and such Indemnified Party in an amount to be mutually agreed upon.

	
6.  

	
All amounts due under the Indemnification Provisions of this Annex A shall be payable within ten (10) days after written notice of such event giving rise to the indemnification obligations, and if not paid within such 10-day period, such amounts shall bear interest at a rate of 1.5% per month or at the highest rate permitted under the laws of the State of New York, whichever rate is lower.

	
7.  

	
These Indemnification Provisions shall remain in full force and effect in connection with the transactions contemplated by the Agreement whether or not consummated, and shall survive the expiration or termination of the Agreement, and shall be in addition to any liability that the Company might otherwise have to any Indemnified Party under the Agreement or otherwise.

	
8.  

	
Each party hereto consents to personal jurisdiction and service of process and venue in any court in the State of New York in which any claim for indemnity is brought by any Indemnified Person.

DAVID BISANG                                                                           OCTAGON 88 RESOURCES, INC.

By:_____________________________                               By:___________________________

David Bisang                                                                                      Guido Hilekes

Chief Executive Officer                                                                      Chief Executive Officer

  

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