Document:

Exhibit 10.2

 

FOUR SPRINGS CAPITAL , LLC

SHARE AWARD CERTIFICATE

 

[Name]

[Address]

[Telephone]:  (___) ____-_____

 

Dear ________:

 

You (the “Recipient”) have been granted common shares of Four Springs Capital Trust, a Maryland real estate investment trust (the “Trust”), by Four Springs Capital, LLC, a Delaware limited liability company (the “Company”).  This Restricted Share Award Certificate (the “Award Certificate”) sets forth the aggregate number of common shares under this award (the “Award”) and its terms and conditions.  This Award is contingent upon your acknowledgement and acceptance of the terms and conditions as set forth in this Award Certificate.

 

	
Grant Date:
    	
 
    	
________, 2014
    
	
 
    	
 
    	
 
    
	
Number of Shares:
    	
 
    	
_____________(the “Award Shares”)
    
	
 
    	
 
    	
 
    
	
Vesting:
    	
 
    	
You are receiving this Award in your capacity as an   employee or a registered representative of the Company arising from your work   related to the Trust, or as an employee of the Trust (each, as the case may   be, “Relationship”). Therefore, your award will vest provided that you   continue in your Relationship, through the following:
    
   First Anniversary of Grant   Date                                              1/3 of Shares
   Second Anniversary of Grant   Date                                         1/3 of Shares
   Third Anniversary of the Grant Date                                      1/3 of Shares
    
   Additionally,
   (a) if your Relationship is with the Company, all of your unvested Award   Shares will vest if either (i) the Company undergoes a Change in Control   (as defined in Schedule 1) and your Relationship is terminated within   one year of such Change in Control, or (b)  the Trust undergoes a Change   in Control; or
   (b) if your Relationship is with the Trust, all of your Award Shares   will vest if the Trust undergoes a Change in Control and your Relationship is   terminated within one year of such Change in Control.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If your Relationship terminates by reason of death   or Disability, then your Award Shares will become fully vested. Acceleration   as a result of a Change of Control, death or Disability are collectively   referred to herein as an “Acceleration Event.”
    
   In the event that your Relationship terminates prior to the full vesting of   your Award Shares for any reason other than an Acceleration Event, you shall   forfeit any remaining unvested Award Shares as of the date your Relationship   terminates. Upon a forfeiture, unvested Award Shares and related dividends   shall be transferred to the Company. For 
    

 

 

	
 
    	
 
    	
the avoidance of doubt, the term “Award Shares”   refers to all such Award Shares presently held by the Recipient and to all   securities received on account of the Award Shares or in replacement thereof   pursuant to or in consequence of any stock dividend, stock split,   recapitalization, merger, reorganization, exchange of Award Shares or other   similar event, but shall exclude any Award Shares that have vested in   accordance with this Award Certificate and all securities received on account   of such vested Award Shares or in replacement thereof pursuant to or in   consequence of any stock dividend, stock split, recapitalization, merger,   reorganization, exchange of shares or other similar event.
    
	
 
    	
 
    	
 
    
	
Repurchase Rights
    	
 
    	
The Award Shares shall be subject to a right (but   not an obligation) of repurchase in favor of the Company on the following   terms and conditions: in the event that the Recipient’s Relationship is   terminated for any reason or no reason, the Company may purchase the then   unvested Award Shares at a purchase price of $.001 per Incentive Share,   except and to the extent, however, that the Relationship terminates because   of an Acceleration Event (the “Right of Repurchase”). The first date   on which the Recipient’s Relationship terminates is hereinafter referred to   as the “Relationship Termination Date.”
    
	
 
    	
 
    	
 
    
	
Repurchase Procedure:
    	
 
    	
The Company’s Right of Repurchase shall be deemed   exercised effective as of the Relationship Termination Date with respect to   the number of Award Shares then subject to the Right of Repurchase upon   payment of the total repurchase price to the Recipient for such Award Shares   and without any further action on the part of the Company, unless the Company   provides written notice to the Recipient within five (5) business days   of the Relationship Termination Date of the Company’s intention not to   exercise its Right of Repurchase. The Recipient hereby authorizes the   endorsement and delivery to the Company of the share   certificate(s) representing the Award Shares being repurchased upon a   deemed exercise by the Company of its Right of Repurchase in accordance with   the foregoing sentence.
    
	
 
    	
 
    	
 
    
	
Escrow of Award Shares
    	
 
    	
For purposes of facilitating the enforcement of the   provisions of Right of Repurchase above, concurrently with the execution of   this Award Certificate, the Recipient shall deliver the   certificate(s) representing the Award Shares that are subject to the   Right of Repurchase, together with an Assignment Separate from Certificate in   the form attached hereto as Exhibit A executed by the Recipient   in blank, to the Secretary of the Company, or the Secretary’s designee, to   hold such certificate(s) and Assignment Separate from Certificate in   escrow and to take all such actions and to effectuate all such transfers   and/or releases as are in accordance with the terms of this Agreement. The   Recipient hereby acknowledges that the Secretary of the Company, or the   Secretary’s designee, is so appointed as the escrow holder with the foregoing   authorities as a material inducement to make this Agreement and that such   appointment is coupled with an interest and is accordingly 
    

 

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irrevocable. The Recipient agrees that such escrow   holder shall not be liable to any party hereof (or to any other party). The   escrow holder may rely upon any letter, notice or other document executed by   any signature purported to be genuine and may resign at any time. The   Recipient agrees that, if the Secretary of the Company, or the Secretary’s   designee, resigns as escrow holder for any or no reason, the Company shall   have the power to appoint a successor to serve as escrow holder pursuant to   the terms of this Agreement.
    
	
 
    	
 
    	
 
    
	
Rights a Shareholder:
    	
 
    	
Except as otherwise provided in this Award   Certificate, you shall have all the rights of a shareholder of the Trust with   respect to the Award Shares, subject to the restrictions, including, without   limitation, voting rights and allocation of cash or stock dividends, in   respect of the Award Shares subject to the vesting of the Award.
    
   The Company and/or the Trust may require you to execute an “Investment   Representation Statement” and enter into a shareholder’s agreement or any   other agreement required by the Board of Trustees or shareholders in general,   with such terms and conditions as the Company may prescribe.
    
	
 
    	
 
    	
 
    
	
Stock Certificate Restrictive Legend:
    	
 
    	
Stock certificates evidencing Award Shares may bear   such restrictive legends as the Company and/or the Trust and the Company’s   and/or the Trust’s counsel deem necessary or advisable under applicable law   or pursuant to this Award Certificate, or any other agreement to which the   Recipient is a party, including, without limitation, the following legends:
    
   THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE SUBJECT TO A RIGHT   OF REPURCHASE BY FOUR SPRINGS CAPITAL, LLC, PURSUANT TO THE PROVISIONS OF A   SHARE RESTRICTION AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF   SUCH SECURITIES RELATING TO SUCH SECURITIES, AND SUCH SECURITIES MAY NOT   BE SOLD OR OTHERWISE TRANSFERRED IF SUCH SECURITIES ARE SUBJECT TO SUCH RIGHT   OF REPURCHASE.
    
   THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR   INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR   THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE SOLD OR   TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM   UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.
    
	
 
    	
 
    	
 
    
	
Tax Liability of the Participant and Payment of   Taxes:
    	
 
    	
You acknowledge and agree that any income or other   taxes due from you with respect to the Award Shares issued pursuant to this   Award Certificate shall be your responsibility. Upon vesting, you may elect   to have a portion of your vested shares withheld in order to satisfy your tax   obligations.
    

 

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Upon execution of this Award Certificate, you may   file an election under Section 83(b) of the Code of the Internal   Revenue Code. You have been given the opportunity to obtain the advice of   your tax advisors with respect to the tax consequences of the Award Shares   and the provisions of this Award Certificate. You assume all responsibility   for filing the Section 83(b) election and paying any taxes resulting   from such election or from failure to file the election and paying taxes   resulting from the lapse of the restrictions on the unvested shares. Tax   obligations arising from the Section 83(b) election must be paid by   you and cannot be satisfied by withholding shares.
    
	
 
    	
 
    	
 
    
	
Transferability:
    	
 
    	
The Recipient may not transfer, assign, hypothecate,   donate, encumber or otherwise dispose of any Award Shares, and any such   attempted transfer shall be null and void; provided, however,   that the foregoing restrictions shall not apply to a transfer of Award Shares   by the Recipient for bona fide estate planning purposes to his/her spouse,   child (natural or adopted), or any other direct lineal descendant or   ascendant of the shareholder (or his/her spouse) (all of the foregoing   collectively referred to as “Family Members”), or any custodian or   trustee of any trust, partnership or limited liability company set up for the   benefit of, or the ownership interests of which are owned wholly by, the   Recipient or any such Family Member(s), so long as the transferee shall enter   into an agreement with the Company on terms and conditions substantially   equivalent, mutatis mutandis, to the terms   and conditions of this Agreement. The Company shall not be required   (a) to transfer on its books any Award Shares that shall have been   transferred in violation of any of the provisions set forth in this Award   Certificate, or (b) to treat as owner of such Award Shares or to accord   the right to vote as such owner or to pay dividends to any transferee to whom   such Award Shares shall have been so transferred.
    
	
 
    	
 
    	
 
    
	
Restrictions on Resale:
    	
 
    	
By accepting this Award Certificate, you agree not   to sell any Award Shares acquired under this Award Certificate at a time when   applicable laws, Trust or Company policies, any agreement to which you are a   party or any agreement between the Company and its underwriters, prohibit a   sale.
    
	
 
    	
 
    	
 
    
	
Miscellaneous:
    	
 
    	
As a condition of the granting of this Award, you   agree, for yourself and your legal representatives and/or guardians, that   this Award Certificate shall be interpreted by the Company (or a committee   thereof) and that any such interpretation of the terms of this Award   Certificate and any determination made by the Company (or a committee   thereof) pursuant to this Award Certificate shall be final, binding and   conclusive. This Award Certificate may be executed in counterparts. This   Award Certificate and the Award Shares granted hereunder shall be governed by   Maryland Law.
    

 

This Award Certificate and the Award Shares granted hereunder are granted under and governed by the terms and conditions of this Award Certificate.  The invalidity or unenforceability of any provisions of this Award Certificate shall not affect the validity or enforceability of any other provision of

 

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this Award Certificate, which shall remain in full force and effect.  In the event that any provision of this Award Certificate or any word, phrase, clause, sentence, or other portion hereof (or omission thereof) should be held to be unenforceable or invalid for any reason, such provision or portion thereof shall be modified or deleted in such a manner so as to make this Award Certificate as so modified legal and enforceable to the fullest extent permitted under applicable law.

 

BY SIGNING BELOW AND ACCEPTING THIS AWARD CERTIFICATE AND THE AWARD SHARES GRANTED HEREUNDER, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN.

 

FOUR SPRINGS CAPITAL, LLC

 

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
William P. Dioguardi,   CEO
    	
 
    	
Recipient
    

 

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SCHEDULE 1 TO THE SHARE RESTRICTION AGREEMENT

 

Notwithstanding anything to the contrary set forth above, the Right of Repurchase shall terminate under each of the followings circumstances (each, an “Acceleration Event”):

 

1.                                      As to all of the Award Shares, immediately prior to the consummation of the Company’s first firm commitment underwritten public offering registered under the Securities Act of 1933, as amended, or a Change of Control (as defined below).

 

2.                                      As to all of the Award Shares, in the event of the Recipient’s death or Disability (as defined below).

 

3.                                      As used in this Agreement, the following terms shall have the meanings set forth below.

 

(a)                                 “Disability” shall mean the failure or inability of the Recipient to substantially perform, with or without reasonable accommodation, his/her duties to the Company or the Trust, as the case may be, for an aggregate of ninety (90) calendar days during any consecutive three hundred sixty-five (365) day period as a result of a physical or mental illness or injury, as determined in good faith by the Company upon the advice of an independent physician experienced in treating the condition(s) allegedly giving rise to the disability.

 

(b)                                 “Change of Control” shall mean, in each case as approved by the Board of Trustees of the Trust and the requisite shareholders of the Trust, or the Managers and the requisite members of the Company, as the case may be:

 

(i) any consolidation or merger of the Trust or the Company, as the case may be (the “Subject Entity”), with or into any other corporation or other entity or person, or any other corporate reorganization, in which the shareholders of the Subject Entity immediately prior to such consolidation, merger or reorganization, own, in the aggregate, less than (50%) of the surviving entity’s voting power and/or outstanding capital stock immediately after such consolidation, merger or reorganization, or any transaction or series of related transactions (including any transaction which results from an option agreement or binding letter of intent with a third party) to which the Subject Entity is a party in which in excess of (50%) of the Subject Entity’s voting power and/or outstanding capital stock is transferred, or pursuant to which any person or group of affiliated persons obtains in excess of 50% of the Subject Entity’s voting power and/or outstanding capital stock, excluding any consolidation or merger effected exclusively to change the domicile of the Subject Entity; or

 

(ii) a merger (including a reverse merger) (each, a “Merger”) in which the Subject Entity is the surviving corporation but (A) the outstanding capital stock of Subject Entity outstanding immediately preceding the merger are converted by virtue of the merger into other property (whether in the form of securities, cash or otherwise) or (B) the voting securities of the Subject Entity outstanding immediately preceding the Merger represent less than fifty percent (50%) of the total voting power represented by the voting securities of the entity surviving such Merger (other than, with respect to events otherwise described in this item (ii), the formation of a

 

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holding company by the Subject Entity, a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Subject Entity in a different jurisdiction, or other transaction in which there is no substantial change after the Merger in the shareholders of the Subject Entity or their relative stock holdings, and the management of the Subject Entity continues in substantially the same manner as prior to the Merger to manage the entity surviving the Merger ); or

 

(iii) any sale, lease or other disposition (including through a Board of Trustees or Manager, as the case may be, and shareholder approved division or spin-off transaction) of all or substantially all of the assets of the Subject Entity and/or any of its subsidiaries; provided, however that none of the following shall constitute a Change of Control:  (A) transfers of capital stock by an existing shareholder as a result of death or otherwise for estate planning purposes or to such shareholders affiliates or to any of the Subject Entity’s other existing shareholders, and (B) issuances of equity securities of the Subject Entity in connection with financings for working capital and other general corporate purposes.

 

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ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED and pursuant to that certain Award Shares Award Certificate between the undersigned (the “Recipient”) and Four Springs Capital, LLC (the “Company”) dated     , 2014 (the “Agreement”), the Recipient hereby sells, assigns and transfers unto the Company                          (       ) common shares of Four Springs Capital Trust (the “Trust”), standing in the Recipient’s name on the books of the Trust and represented by Certificate No.    and does hereby irrevocably constitute and appoint                       to transfer said stock on the books of the Trust with full power of substitution in the premises.  THIS ASSIGNMENT MAY BE USED ONLY AS AUTHORIZED BY THE AGREEMENT AND THE ATTACHMENTS THERETO.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness:
    	
 
    	
Signature   of Recipient:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name   of Recipient:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Instruction:  Please do not fill in any blanks other than the signature line.  The purpose of this assignment is to enable the Company to exercise its Right of Repurchase set forth in the Agreement without requiring additional signatures on the part of the Recipient.Exhibit 10.3

 

FOUR SPRINGS CAPITAL TRUST
 2014 EQUITY INCENTIVE PLAN
 FORM OF NONQUALIFIED OPTION AGREEMENT

 

This Nonqualified Option Agreement (the “Agreement”) is between Four Springs Capital Trust, a Maryland real estate investment trust (the “Company”), and James S. Vaccaro (the “Participant”), pursuant to the Company’s 2014 Equity Incentive Plan (the “Plan”).  All capitalized terms used in this Agreement shall have the meaning ascribed to such terms in the Plan unless otherwise defined herein.  The Company and the Participant agree as follows:

 

1.                                      Grant of Nonqualified Options.  The terms and conditions of the Nonqualified Option Award set forth in this Agreement and the terms and conditions of the Plan are incorporated into and made a part of this Agreement.  The Nonqualified Option is not intended to be an incentive stock option within the meaning of Section 422 of the Code.

 

	
Name of Participant:
    	
 
    	
James S. Vaccaro
    
	
 
    	
 
    	
 
    
	
Number of Shares subject to Option:
    	
 
    	
Five Thousand (5,000)
    
	
 
    	
 
    	
 
    
	
Exercise Price per Share:
    	
 
    	
$0.001
    
	
 
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
March 31, 2014
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
x   10 years after Grant Date
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
The Nonqualified Option granted under this Agreement   shall vest on the following dates as follows (each a “Vesting Date”):
    
	
 
    	
 
    
	
 
    	
 
    	
 

·                  33   1/3% shall vest on the first anniversary of the Grant Date; 

 

·                  33   1/3% shall vest on the second anniversary of the Grant Date; and 

 

·                  33   1/3% shall vest on the third anniversary of the Grant Date.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

2.                                      Time of Exercise of Nonqualified Option.  Until the Nonqualified Option expires or terminates as provided in this Agreement, the Participant may exercise the Nonqualified Option from time to time to purchase whole Shares as to which the Nonqualified Option is exercisable.  The Nonqualified Option becomes exercisable, to the extent vested, on the Vesting Dates as set forth in the Vesting Schedule in Section 1 of this Agreement.

 

 

3.                                      Termination of Continuous Status as a Participant.

 

(a)                                 General Rule.  Except as provided in this Section 3, the Nonqualified Option may not be exercised unless at the time of exercise the Participant is in Continuous Status as a Participant.

 

(b)                                 Termination of Continuous Status as a Participant.

 

(i)                                     In the event of termination of the Participant’s Continuous Status as a Participant for any reason other than Cause, the Participant shall have the right to exercise the Nonqualified Option at any time within 90 days following such termination to the extent the Participant was entitled to exercise such Nonqualified Option on the date of such termination of the Participant’s Continuous Status as a Participant.

 

(ii)                                  In the event of termination of the Participant’s Continuous Status as a Participant for Cause, all outstanding Shares subject to the Nonqualified Option shall be forfeited as of date of the determination by the Board or Committee that Cause to terminate the Participant exists.

 

(c)                                  Failure to Exercise Nonqualified Option.  To the extent that following termination of Continuous Status as a Participant, the Participant does not exercise the Nonqualified Option within the applicable post-employment periods described above in this Section 3, all rights to purchase Shares pursuant to the Nonqualified Option cease and terminate as of the date of expiration of the applicable post-employment period for exercise, and the Participant shall have no rights or interest with respect to such Nonqualified Option following such expiration date.

 

(d)                                 Change in Control.  Upon a Change in Control, the Nonqualified Option will automatically become One Hundred Percent (100%) vested and exercisable no later than immediately prior to such Change in Control.

 

4.                                      Method of Exercise of Nonqualified Option.  Unless otherwise authorized by the Committee or its authorized designee, the Nonqualified Option may only be exercised by using the exercise notice attached to this Agreement as Exhibit A by:

 

(a)                                 Cash;

 

(b)                                 Check payable to the Company; or

 

(c)                                  A payment of such other lawful consideration as the Committee may determine.

 

5.                                      Securities Laws Restrictions and Other Restrictions on Transfer of Shares.  The Participant represents and warrants that if and when the Participant exercises the Nonqualified Option, the Participant shall purchase Shares only for the Participant’s own account and not on behalf of any others.  The Participant understands and acknowledges that federal and state securities laws govern and restrict the Participant’s right to offer, sell or otherwise dispose of any Shares unless the Participant’s offer, sale or other disposition thereof is

 

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registered or qualified under the 1933 Act and applicable state securities laws, or in the opinion of the Company’s counsel, such offer, sale or other disposition is exempt from registration or qualification thereunder.  The Participant agrees that the Participant shall not offer, sell or otherwise dispose of any Shares in any manner which would:  (i) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar filing under state law) or to amend or supplement any such filing or (ii) violate or cause the Company to violate the 1933 Act, the rules and regulations promulgated thereunder or any other state or federal law.  The Participant further understands that the certificates for any Shares the Participant purchases shall bear such legends as the Company deems necessary or desirable in connection with the 1933 Act or other rules, regulations or laws.

 

6.                                      Nontransferability.  Except as provided in this Section 6, no right or interest of the Participant in the Nonqualified Option may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company.  During a Participant’s lifetime, the Nonqualified Option may be exercised only by the Participant or, in the case of the Participant’s Disability, by the Participant’s guardian or legal representative.  The Nonqualified Option is assignable and transferable by the Participant by will and pursuant to the laws of descent and distribution, provided, however, that any such assignment or transfer is permitted under any agreement between the Company and the Participant.

 

7.                                      No Rights to Awards; Non-Uniform Determinations.  The Participant shall not have any claim to be granted any Nonqualified Option under the Plan.  Neither the Company nor the Committee is obligated to treat Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Participants who receive, or are eligible to receive, Nonqualified Options (whether or not such Participants are similarly situated).

 

8.                                      No Right to Continued Status as a Participant.  Nothing in the Plan, this Agreement or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the Company to terminate the Participant’s employment or status as an officer, director or consultant at any time, nor confer upon the Participant any right to continue as an employee, officer, director or consultant of the Company, whether for the duration of the Participant’s Nonqualified Option or otherwise.

 

9.                                      Notices.

 

(i)                                     Notices to the Company.  Notices intended for the Company shall be deemed validly given only if delivered in person to, or duly sent, postage and fees prepaid, by registered mail or national courier service addressed to the Company at its principal office and to the attention of the [Chief Financial Officer] or another person as designated by the Committee, or to such other address or officer as the Company or its successors may hereafter designate by written notice.

 

(ii)                                  Notice to the Participant.  Notices intended for the Participant (or any transferee of the Participant) shall be deemed validly given only if delivered in person or duly sent, postage and fees prepaid, by mail or national courier service to the last known address of

 

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the Participant (or such transferee) as it appears on the records of the Company or to such other address as the Participant (or such transferee) shall designate by written notice.

 

(iii)                               General.  Notices under this Agreement must be in writing.  Notices may be sent by nationally or internationally recognized overnight couriers (UPS, Fedex, DHL or other commercial delivery service).  Notices are effective when actually delivered or, if mailed (A) by the United States Postal Service, three days after deposit into the United States mail by registered or certified mail, postage prepaid or (B) by a nationally or internationally recognized overnight courier, the next business day after deposit if within the United States, or the second business day after deposit, if not within the United States.

 

10.                               No Shareholder Rights.  This Nonqualified Option does not give the Participant any of the rights of a shareholder of the Company unless and until Shares are in fact issued to such person in connection with such Nonqualified Option.

 

11.                               Other Agreements.  The Participant hereby voluntarily agrees to sign any shareholder’s agreement of the Company which applies to similarly-situated stockholders or to Participants under the Plan or any similar agreement as prescribed by the Committee and in the form approved by the Committee in its sole discretion.  Participant hereby expressly acknowledges that the Nonqualified Option has been granted to Participant conditioned upon Participant’s agreement and actual execution of documents in accordance with the immediately preceding sentence and upon Participant’s agreement that any transferee of Shares that have been acquired by the Participant pursuant to the Nonqualified Option shall be subject to the terms of the Plan and this Agreement, including without limitation this Section 11, as if such transferee was or is the Participant.  Accordingly, if the Participant (or transferee of Shares, as the case may be) does not sign the shareholder’s agreement of the Company which applies to similarly-situated stockholders or other documents, all of the Shares subject to any outstanding Nonqualified Option and all of the Shares granted pursuant to any Nonqualified Option shall be forfeited hereby.

 

12.                               Amendments.  This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.  Notwithstanding the foregoing or Section 15.1 of the Plan, neither the requirement that the Participant (or a transferee of Shares) execute any shareholders agreement of the Company which applies to similarly-situated stockholders or similar agreement pursuant to Section 11 of this Agreement, nor the actual execution of any such agreement shall be considered to adversely affect the Nonqualified Option, even if such agreement contains provisions which are more restrictive than the Plan or this Agreement.

 

13.                               Governing Law.  To the extent not governed by federal law, this Agreement shall be construed in accordance with and governed by the laws of the State of Maryland.

 

14.                               Complete Agreement.  This Agreement constitutes the entire agreement between the Participant and the Company, both oral and written concerning the matters addressed in this Agreement, and all prior agreements or representations concerning the matters addressed in this Agreement, whether written or oral, express or implied, are terminated and of no further effect.  In the event of any dispute or disagreement as to the interpretation of the Plan or this Agreement

 

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or of any rule, regulation or procedure, or as to any question, right or obligation arising or related to the Plan o this Agreement, the decision of the Committee shall be final and binding upon all persons.

 

15.                               Severability.  If any one or more of the provisions contained in this Agreement is invalid, illegal or unenforceable, the other provisions of this Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

 

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By executing this Agreement, the Participant agrees to be bound by all of the terms and conditions of the Plan.  In addition, the Participant recognizes and agrees that all determinations, interpretations, or other actions respecting the Plan and this Agreement will be made by the Committee or any authorized designee, and shall be final, conclusive and binding on all parties.

 

	
 
    	
FOUR   SPRINGS CAPITAL TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   William P. Dioguardi
    
	
 
    	
 
    	
Name:   William P. Dioguardi
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
I agree to the terms of   this Agreement and the Plan.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   James S. Vaccaro
    
	
 
    	
 
    	
Name:   James S. Vaccaro
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
613   North Edgemere Drive
    
	
 
    	
 
    
	
 
    	
West   Allenhurst, NJ 07711
    

 

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Exhibit A
 FOUR SPRINGS CAPITAL TRUST 
 2014 EQUITY INCENTIVE PLAN
  Nonqualified Option Exercise Notice

 

Four Springs Capital Trust 
 1901 Main Street
 Lake Como, NJ  07719

 

Subject to acceptance by the Committee, effective as of today,                     , 20    , this constitutes notice under my Nonqualified Option referenced below that I elect to purchase the number of shares for the price set forth below.  I hereby elect to exercise my Nonqualified Option.  I represent and warrant that I am buying the shares for investment purposes only and without any intention of selling of distributing them.  All capitalized terms used herein shall have the meaning ascribed to such terms in the Plan or applicable Award Agreement unless otherwise defined herein.

 

	
Type of Option:
    	
 
    
	
 
    	
 
    
	
Grant Date:
    	
 
    
	
 
    	
 
    
	
Number   of shares as to which the option is exercised:
    	
 
    
	
 
    	
 
    
	
Exercise   Price:
    	
 
    
	
 
    	
 
    
	
Total   Exercise Price:
    	
 
    

 

o  Cash                          o  Check                               o  Promissory Note                                                 o  Other Permitted Method:

 

By this exercise, I agree (i) to provide such other documents as Four Springs Capital Trust (the “Company”) may require pursuant to the Company’s 2014 Equity Incentive Plan, and (ii) to provide for the payment by me to you (in the manner designated by you) of the withholding obligation, if any, relating to the exercise of this Nonqualified Option.

 

	
 
    	
 
    	
Accepted by: 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Participant:
    	
 
    	
Four Springs Capital Trust
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Print Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
Title:

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