Document:

Exhibit 4.26

 

---------------------------------------------------------------------Indian-Non   Judicial Stamp Haryana Government Non Judicial Date : 28/08/2017 Stamp Duty   Paid : (Rs. Only Penalty: (Rs Zero Only) 200 0 G0282017H1915 30084165   Certificate No GRN No. 1111 1111m111111W1111111111111111111111111 11111111   III IIHIIIIIII1 11 111 Seller I First Party Detail Name H.No/Fioor   CityNillage : Phone: Yatra Online Pvt ltd Sector/Ward : Na District :Gurugram   LandMark : State : Na Haryana Na Gurugram 9871372500 Bu er I Second Par   Detail Name : H.No/Fioor : CityNillage· Phone: lnnoven Capital India pvt ltd   Na Gurugram 0 Sector/Ward : Na District : Gurugram LandMark : State : Na   Haryana Purpose : UNCONDITIONAL GUARANTEE The authenticity of this document   can be verified by scanning this QrCode Through smart phone or on the website   https://egrashry.nic.in fUncon&:_ll.ono_t en. 0a.& jcm-n:) <QXec.   ecf 0t:()Jf"nf-> uru .cvn-t f' ern fCLn.t Dm.cf{).e-twpert\   \.fo.h,_C\. O'T\.lo--c <?Y'LU.lct{Q Ont:fnt . lD-n.:ie{ -..-u:\J +e   Capa-cJ. '--to-lna._ -:l:o-\...1-<?cf cfi.a... Ctrntt'9--nnD\fe.'T\ 1 3efA   'tn('tf.n 1?., '-1 CYI 

    

 

UNCONDITIONAL   GUARANTEE This continuing unconditional guarantee ("Guarantee") is   entered into as of September 12, 2017 by 1. Yatra Online, Inc., a company   incorporated under the laws of Cayman Islands, and having its registered   office at c/o Maples Corporate Services Ltd., PO Box 309, Ugland House, Grand   Cayman, KYI-1104 Cayman Islands (hereinafter referred to as the   "Guarantor" which expression shall, unless repugnant to the context   or meaning thereof, include its successors and permitted assigns). AND   lnnoVen Capital India Private Limited, a private limited company incorporated   under the Companies Act, 1956 and registered as a Non-Banking Financial   Company within the meaning of the Reserve Bank of India Act, 1934 having its   registered office at 12th Floor, Express Towers, Nariman Point, Mumbai 400021   (hereinafter referred to as "lnnoVen", which expression shall,   unless it be repugnant to the subject or context thereof, include its   successors and permitted assigns). AND 2. Yatra Online Private Limited, a   company incorporated under the Companies Act, 1956 and having its registered   office at B2, 202, 2nd Floor ,Marathon lnnova, Marathon Nextgen Complex, Off.   Ganpatrao Kadam Marg, Lower Parel 0/1/), Mumbai Maharashtra, 400013and   corporate office at 1101-03, Tower B, 111 h Floor, Unitech Cyber Park,   Sector-39, Gurgaon-122001, India (hereinafter referred to as the   "Borrower" which expression shall, unless repugnant to the context   or meaning thereof, include its successors and permitted assigns). The   Guarantor and lnnoVen are hereinafter, where the context so requires,   collectively referred to as the "Parties" and individually as   "Party". Capitalized terms used but not otherwise defined herein   shall have the meanings ascribed to them in the Term Loan Agreement (as   defined hereunder). RECITALS A. Concurrently herewith, lnnoVen and the   Borrower, are entering into that certain Term Loan Agreement dated as of September   12, 2017 (as amended, restated, or otherwise modified from time to time, the   "Term Loan Agreement") pursuant to which lnnoVen has agreed to   advance a term loan of INR 495,000,000 (Rupees Four Hundred and Ninety Five   Million only) ("Term Loan"), subject to the terms and conditions   set forth therein. B. In consideration of the agreement of lnnoVen to make   the Term Loan to Borrower under the Term Loan Agreement, Guarantor is willing   to guarantee the full payment and performance by Borrower of all of its   obligations thereunder and under the other Loan Documents, all as further set   forth herein. I I 

    

 

C. The   Guarantor holds directly and indirectly, 100% of the issued and paid-up share   capital of the Borrower. Now, THEREFORE, in order for lnnoVen to enter into   the Term Loan Agreement, and for other good and valuable consideration, the   receipt and adequacy of which are hereby acknowledged, and intending to be   legally bound, Guarantor hereby represents, warrants, covenants and agrees as   follows: Section 1. Guarantee. (a) Unconditional Guarantee of Payment. In   consideration of the foregoing, Guarantor hereby irrevocably, absolutely and   unconditionally guarantees to lnnoVen, the prompt and complete payment and   performance when due (whether at stated maturity, by acceleration or   otherwise) of all Obligations of the Borrower. Guarantor agrees that it shall   execute such other documents or agreements and take such action as lnnoVen   shall reasonably request to effect the purposes of this Guarantee. (b)   Independent Obligation: The Guarantor shall without prejudice to the other   provisions contained herein, as primary obligor and not merely as surety, on   a full indemnity basis, indemnify lnnoVen as a result of the whole or any of   the Obligations being or becoming void, voidable, unenforceable or   ineffective as against the Borrower for any reason whatsoever irrespective of   whether such reason or any related fact or circumstance was known or ought to   have been known to lnnoVen or any of its officers, employees, agents or   advisers. The amount of such loss shall be equal to the amount, which lnnoVen   would othery.tise have been entitled to recover from the Borrower in respect   of the Obligations. (c) The Guarantor covenants that, it shall ensure, save   as otherwise provided in this Guarantee and the other Loan Documents, that   its obligations under this Guarantee do and will rank above and prior to all   its other present and future obligations, unless the same is approved by   lnnoVen. (d) The Guarantor hereby covenants and agrees that until all the   Obligations of the Borrower under the Loan Documents are fully discharged and   performed to the reasonable satisfaction of lnnoVen, the Guarantor shall not,   without the prior written approval of lnnoVen, create or permit to subsist   any Encumbrance (save and except for securing borrowings for working capital   requirements in the ordinary course of business up to the limit as maybe   approved by lnnoVen in writing) or any type of preferential arrangement   (including retention arrangements or escrow arrangements having the effect of   granting security), in any form whatsoever on any of the Assets or (whether   voluntarily or involuntarily) sell, transfer, grant lease or otherwise   dispose of or deal with (or agree to do any of the foregoing at any future   time), all or any of the Assets. (e) The Guarantor hereby appoints and   authorizes lnnoVen, to sell or dispose off any or all assets of the Guarantor   ("Assets") in the event the Guarantor fails to make a payment to   lnnoVen towards the outstanding Obligations under this Guarantee   ("Guarantor's Obligations") within 10 days of receipt of notice   from lnnoVen to pay such amounts ("Default") and remit the sale   consideration to lnnoVen towards fulfillment of the Guarantor's Obligations.   (f) Notwithstanding anything contained in this Guarantee, in the event the   proceeds realised as a result of sale of the Assets do not satisfy the   Obligations in full, the Guarantor shall continue to be liable to lnnoVenfor   such deficiency. (g) 2 

    

 

Section 2.   Representations and Warranties. Guarantor hereby represents and warrants   that: (a) Guarantor (i) is a limited liability company duly organized,   validly existing and in good standing under the laws of Cayman Islands; (ii)   is duly qualified to do business and is in good standing in every   jurisdiction where the nature of its business requires it to be so qualified   (except where the failure to so qualify would not reasonably be expected to   have a Material Adverse Change on Guarantor's condition, financial or   otherwise, or on Guarantor's ability to pay or perform the obligations   hereunder); and (iii) has all requisite power and authority to execute and   deliver this Guarantee and to perform its obligations hereunder. (b) The   execution, delivery and performance by the Guarantor of this Guarantee (i) is   within Guarantor's powers and have been duly authorized by all necessary   action; (ii) do not contravene Guarantor's charter documents or any law or   any contractual restriction binding on or affecting the Guarantor or by which   Guarantor's property may be affected; (iii) does not require any   authorization or approval or other action by, or any notice to or filing   with, any governmental authority or any other Person under any indenture, mortgage,   deed of trust, lease, agreement or other instrument to which Guarantor is a   party or by which Guarantor or any of its property is bound, except such as   have been obtained or made; and (iv) does not result in the imposition or   creation of any Lien upon any property of Guarantor. (c) This Guarantee is a   valid and binding obligation of Guarantor, enforceable against Guarantor in   accordance with its terms, except as the enforceability thereof may be   subject to or limited by bankruptcy, insolvency, reorganization, arrangement,   moratorium or other similar laws relating to or affecting the rights of   creditors generally. (d) There is no action, suit or proceeding affecting   Guarantor or its assets, pending or threatened before any court, arbitrator,   or governmental authority, domestic or foreign, which would reasonably be   expected to have a Material Adverse Change on the ability of Guarantor to   perform its obligations under this Guarantee. (e) Guarantor's obligations   hereunder are not subject to any offset or defense against lnnoVen or   Borrower of any kind. The financial statements of the Guarantor for the   Financial year 2017 (audited), copies of which have been furnished to   lnnoVen, fairly present the financial position and results of operations for   the Guarantor for the dates and periods purported to be covered thereby, all   in accordance with IFRS, and there has been no Material Adverse Change in the   financial position or operations of Guarantor since the date of such   financial statements. (f) (g) The incurrence of Guarantor's obligations under   this Guarantee will not cause Guarantor to (i) become insolvent; (ii) be left   with unreasonably small capital for any business or transaction in which   Guarantor is presently engaged or plans to be engaged; or (iii) be unable to   pay its debts as such debts mature. (h) No order has been made, petition   presented, resolution passed or meeting convened for the winding up (or other   process whereby the business is terminated or a substantial part of the   assets of the Guarantor or its subsidiaries are distribu d amongst its   creditors and/or shareholders or other contributories) of the Guarantor   0.'.,.ur l c 3 ,....:. <{ ""r 

    

 

and there are   no cases or proceedings under any applicable insolvency, reorganization, or   similar laws concerning the Guarantor. (i) Guarantor covenants, warrants, and   represents to lnnoVen that all representations and warranties contained in   this Guarantee shall be true at the time of Guarantor's execution of this   Guarantee, and shall continue to be true so long as this Guarantee remains in   effect. Neither the Guarantor nor any Person acting for or on behalf of the   Guarantor has made any representation, warranty, or other statement now or   later in each Loan Document executed and delivered by the Guarantor pursuant   to the Term Loan Agreement or this Guarantee and to perform its obligations   thereunder and hereunder that is incorrect in any material respect when made.   0) Section 3. General Waivers. The Guarantor hereby specifically waives: (a)   Any right to require lnnoVen to (i) proceed against Borrower or any other   Person; (ii) proceed against or exhaust any Collateral or (iii) pursue any   other remedy. lnnoVen may exercise or not exercise any right or remedy it has   against Borrower or any Collateral it holds (including the right to foreclose   by judicial or non­ judicial sale) without affecting Guarantor's liability   hereunder. (b) Any setoff, defense or counterclaim against lnnoVen. (c) Any   defense from the absence, impairment or loss of any right of reimbursement or   subrogation or any other rights against Borrower. Until Borrower's   obligations to lnnoVen have been paid, Guarantor has no right of subrogation   or reimbursement or other rights against Borrower. (d) Any right to enforce   any remedy that lnnoVen has against Borrower. (e) Any right to participate in   any Collateral held by lnnoVen. (f) Any demand for performance, notice of   non-performance or of new or additional indebtedness incurred by Borrower to   lnnoVen. Guarantor is responsible for being and keeping itself informed of   Borrower's financial condition. (g) All the rights available to the Guarantor   as surety under Sections 133, 134, 135, 139 and 141 of the Indian Contract   Act, 1872. Section 4. Reinstatement. Notwithstanding any provision of the   Term Loan Agreement to the contrary, the liability of Guarantor hereunder   shall be reinstated and revived and the rights of lnnoVen shall continue if   and to the extent that for any reason any payment by or on behalf of   Guarantor or Borrower is rescinded or must be otherwise restored by lnnoVen,   whether as a result of any proceedings in bankruptcy or reorganization or   otherwise, all as though such amount had not been 

    

 

Guarantor   agrees to indemnify and hold harmless lnnoVen from all costs and expenses   (including, without limitation, reasonable attorneys' fees) of such   litigation. To the extent any payment is rescinded or restored, Guarantor's   obligations hereunder shall be revived in full force and effect without   reduction or discharge for that payment. Section 5. No Waiver; Amendments. No   failure on the part of lnnoVen to exercise, no delay in exercising and no   course of dealing with respect to, any right hereunder shall operate as a   waiver thereof; nor shall any single or partial exercise of any right   hereunder preclude any other or further exercise thereof or the exercise of   any other right. No waiver by lnnoVen under any of the Loan Documents shall   constitute as a waiver by lnnoVen under this Guarantee. The remedies herein   provided are cumulative and not exclusive of any remedies provided by law.   This Guarantee may not be amended or modified except by written agreement   between Guarantor and lnnoVen, and no consent or waiver hereunder shall be   valid unless in writing and signed by lnnoVen. Section 6. Compromise,   Settlement and Term. (a) No renewal, extension, indulgence, change in, or   modification of any of the Obligations of Borrower from the performance of   any of the Obligations shall release or discharge Guarantor from this   Guarantee or the performance of the obligations hereunder. (b) This Guarantee   shall remain in force and effect until expiration or termination of all of   the Borrower's Obligations under the Loan Documents. The obligations of the   Guarantor under this Guarantee shall be co­ terminus with the Obligations of   the Borrower under the Loan Documents. Upon expiration, this Guarantee shall   become null and void and any claims, notices, statements and demands received   by the Guarantor after such expiration shall be ineffective hereunder whether   or not this Guarantee is returned for cancellation. Section 7. Notices. (a)   Unless otherwise provided herein, all notices or other communications to be   given shall be made in writing and by letter or facsimile transmission (save   as otherwise stated) and shall be deemed to be duly given or made, in the   case of personal delivery, when delivered; in the case of facsimile   transmission, provided that the sender has received a receipt indicating   proper transmission, when dispatched, or, in the case of a letter, ten (10)   Business Days after being deposited in the post (by registered post, with   acknowledgment due), postage prepaid, to such Party at its address or   facsimile number specified herein or at such other address or facsimile   number as such Party may hereafter specify for such purposes to the other by   notice in writing. (b) The addresses referred to above are: (i) In the case   of a notice to lnnoVen: Address: 12th Floor, Express Towers, Nariman Point,   Mumbai 40002184 Facsimile number: +91 22 6744 6565 Marked to the attention   of: Mr. Ankit Agarwal (ii) 5 

    

 

Address:   1101-03, 111 h Floor, Tower-B. Unitech Cyber Park, Sector-39, Gurgaon - 122002   Email: alok.vaish@yatra.com Facsimile: +91 124 3395500 Marked to the   attention of: Mr. Alok Vaish (c) A notice or other communication received on   a day other than a Business Day, or after business hours in the place of   receipt, shall be deemed to be given on the next following Business Day in   such place. (d) The address or facsimile numbers for serving notices can be   changed by any Party by properly serving notices on the other Parties   informing them of the changes of address. (e) In the event that a Party   refuses delivery or acceptance of a notice, request or other communication,   under this Guarantee, it shall be deemed that the notice was given upon proof   of the refused delivery, provided the same was sent in the manner specified   in this Guarantee. (f) The Guarantor acknowledges and confirms that notice,   if any, provided by lnnoVen as specified herein above, of any changes to the   terms contained herein, or under other Loan Documents, shall be treated by   the Guarantor as sufficient and reasonable notice to the Guarantor and   lnnoVen is not bound to issue any further notice of such changes to the   Guarantor. Section 8. Entire Agreement. This Guarantee constitutes and   contains the entire agreement of the Parties and supersedes any and all prior   and contemporaneous agreements, negotiations, correspondence, understandings   and communications between Guarantor and lnnoVen, whether written or oral,   respecting the subject matter hereof. Section 9. Severability. If any   provision of this Guarantee is held to be unenforceable under applicable law   for any reason, it shall be adjusted, if possible, rather than voided in   order to achieve the intent of Guarantor and lnnoVen to the extent possible.   In any event, all other provisions of this Guarantee shall be deemed valid and   enforceable to the full extent possible under applicable law. Section 10.   Subordination of Indebtedness. Any indebtedness or other obligation of   Borrower now or hereafter held by or owing to Guarantor is hereby   subordinated in time and right of payment to all obligations of Borrower to   lnnoVen ; and such indebtedness of Borrower to Guarantor is assigned to   lnnoVen as Collateral for this Guarantee, and if lnnoVen so requests   following an Event of Default under the Term Loan Agreement, shall be   collected, enforced and received by Guarantor in trust for lnnoVen and to be   paid over to lnnoVen on account of the Obligations of Borrower to lnnoVen,   but without reducing or affecting in any manner the liability of Guarantor   under the other provisions of this Guarantee. Any notes now or hereafter   evidencing such indebtedness of Borrower to Guarantor shall be marked with a   legend that the same are subject to this Guarantee and shall be delivered to   lnnoVen. 6 

    

 

Section 11.   Payment of Expenses. Guarantor shall pay, promptly on demand, all Expenses   incurred by lnnoVen in defending and/or enforcing this Guarantee. For   purposes of this Section 11, "Expenses" shall mean reasonable costs   and expenses (including reasonable fees and disbursements of any law firm or   other external counsel and the allocated cost of internal legal services and   all disbursements of internal counsel) for defending and/or enforcing this   Guarantee (including those incurred in connection with appeals or proceedings   by or against Guarantor under any bankruptcy or insolvency law, including   assignments for the benefit of creditors, compositions, extensions generally   with its creditors, or proceedings seeking reorganization, arrangement, or   other relief). Section 12. Assignment. This Guarantee shall be binding upon   and inure to the benefit of Guarantor and lnnoVen and their respective   successors and assigns, except that Guarantor shall not have the right to   assign its rights hereunder or any interest herein without the prior written consent   of lnnoVen, which may be granted or withheld in lnnoVen's sole discretion.   Any such purported assignment by Guarantor without lnnoVen's written consent   shall be void. Section 13. Governing Law and Arbitration. This Guarantee   shall be governed by, and construed in accordance with, the laws of the   Republic of India. Any dispute relating to the Guarantee hereunder, or in   respect of any rights, liabilities and obligations arising out of this   Guarantee shall be resolved by arbitration by a sole arbitrator appointed by   both parties. If the parties are unable to decide on a sole arbitrator, then   each of the parties shall appoint one arbitrator, and the two arbitrators   shall, in conjunction, appoint a third arbitrator, who shall preside over the   arbitration. The arbitration proceedings shall be carried out in accordance   with the provisions laid down by the Arbitration and Conciliation Act, 1996   ("Arbitration Act") and rules framed thereunder. The place of   arbitration shall be Mumbai. The arbitration proceedings shall be conducted   in the English language. The Parties shall equally share the costs of the   arbitrator's fees, but shall bear the costs of their own legal counsel   engaged for the purposes of the arbitration. The Parties agree that the   arbitrators 7 

    

 

IN WITNESS   WHEREOF, each of the aforenamed Parties has signed and executed this   Guarantee, and all the original copies hereto, on the date first above   referred and written. 8 FoR lnnoVen ' NAME: DESIGNATION : PLACE: DATE:   GUARANTOR NAME: ALOK VAISH DESIGNATION: CFQ PLACE :GURGAON DATE: BORROWER   NAME: ALOK VAISH DESIGNATION: CFQ PLACE :GURGAON DATE:aaww-ex101_718.htm

Exhibit 10.1

 

ATLAS AIR WORLDWIDE HOLDINGS, INC.

2018 LONG TERM CASH INCENTIVE PROGRAM

 

 

 

ATLAS AIR WORLDWIDE HOLDINGS, INC.

2018 LONG TERM CASH INCENTIVE PROGRAM

Section 1.Purpose.

The purpose of the Program is to set forth certain terms and conditions governing cash awards made under Atlas Air Worldwide Holdings, Inc.’s (“AAWW”) 2016 Incentive Plan (the “Plan”).  The Program shall be treated for all purposes as a sub-plan or arrangement for the grant of Cash Awards under the Plan and shall be subject to the Plan, which is incorporated herein by reference.  The Program shall be effective as of January 1, 2018, and shall be applicable for the 2018-2020 Performance Period.  Capitalized terms not defined herein shall have the meanings given in the Plan.

Section 2.Definitions.

2.1.Award shall mean an opportunity to earn benefits under the Program.

2.2.Board shall mean the Board of Directors of AAWW.

2.3.Beneficiary shall mean a Participant’s beneficiary designated pursuant to Section 8.

2.4.Code shall mean the Internal Revenue Code of 1986, as amended from time to time.

2.5.Committee shall mean the Compensation Committee of the Board.

2.6.Company shall mean AAWW or its subsidiaries.

2.7.Eligible Participant shall mean any of the Chief Executive Officer, President, Executive Vice Presidents, Senior Vice Presidents, Vice Presidents and Staff Vice Presidents of the Company, and such other Company officers as may from time to time be designated by the Committee.

2.8.Participant shall mean any Eligible Participant during such Eligible Participant’s period of participation in the Program.

2.9.Performance Period shall mean January 1, 2018 through December 31, 2020.

2.10.Program shall mean this Atlas Air Worldwide Holdings, Inc. 2018 Long Term Cash Incentive Program, as it may be amended from time to time.

Section 3.Administration.

The Program shall be administered by the Committee in accordance with and subject to the provisions of Section 3 of the Plan.

 

 

Section 4.Participation.

Each individual who is employed as an Eligible Participant on the first day of the Performance Period shall participate in the Program.  An individual who first becomes employed as an Eligible Participant on or prior to September 30, 2018 may participate in the Program in the discretion of the Committee (or, in the case of officers below the level of Senior Vice President, its delegate).  An individual employed by the Company, including an Eligible Participant, may be awarded incentive compensation outside the Program in lieu of or in addition to Awards, if any, under the Program.

Section 5.Determination of Awards.

5.1.Target Bonus Award.  The target cash bonus payable under an Award for the Performance Period will be the amount established by the Committee (or, in the case of officers below the level of Senior Vice President, its delegate) for each Participant classification (the “Target Bonus Amount”).

5.2.Performance Measures.  Payment of an Award is conditioned upon written certification by the Committee of satisfaction of the achievement of certain internal ROIC and EBITDA Growth levels, as may be modified by Comparative TSR attainment, as described below (the “Performance Criteria”) during the Performance Period.  The actual amount payable pursuant to an Award (the “Payable Amount”) shall be determined in accordance with Annex A hereto (the “Performance Plan Schedule”).  In no event shall the Payable Amount exceed, for any Participant, the maximum amount specified in Section 4(c) of the Plan.

(1)“ROIC” for the Company shall be an average of the Company’s actual ROIC for 2018, 2019 and 2020 and shall mean a fraction where the numerator is NOPAT and the denominator is Average Invested Capital.  “NOPAT” is defined as adjusted operating income, as included in the Company’s press release, minus Cash Tax Paid as reported in the SEC Form 10-K.  “Average Invested Capital” is defined as the average of the beginning and ending Invested Capital during the year.  “Invested Capital” is defined as capital lease obligations, plus short-and long-term debt, plus total stockholders equity, minus an amount equal to cash, cash equivalents, restricted cash, and short-term investments.  Invested Capital shall exclude investment amounts associated with aircraft acquisition until the first time that such aircraft is flown under a customer contract, at which time all amounts accrued with respect to such aircraft shall be considered in the Average Invested Capital calculation from such date.  Invested Capital shall be reduced by the amount of any investments held in the Company’s direct or indirect debt securities that remain outstanding and that have not otherwise been defeased.

(2)“EBITDA” for the Company shall mean adjusted income from continuing operations, before interest, income taxes, depreciation expense and amortization expense as included in the Company’s press release.  “EBITDA Growth” shall be calculated by averaging the percentage increase or decrease in EBITDA for each of the three years ended December 31 in the Performance Period.  EBITDA increase or decrease for each twelve month period shall be calculated by subtracting EBITDA for the twelve months ended December 31 for the prior year from EBITDA for the twelve months ended December 31 for the current year and 

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dividing the resulting difference in EBITDA by the EBITDA for the twelve months ended December 31 for the prior year.

(3)In the calculation of EBITDA Growth and NOPAT, amounts objectively demonstrated to be attributable to the following items will not be taken into account: (i) any benefit or detriment resulting from changes in the Company’s financial reporting (including but not limited to changes in accounting principles) or from statutory changes in federal, state or foreign income tax rates; (ii) any aggregate costs in excess of $500,000 for business initiatives not specified in the Company’s operating plans; (iii) any costs related to retention, recruitment, or termination of executive officers; (iv) any costs related to collective bargaining, other labor negotiations, grievances, union motivated work disruptions determined to be in violation of the preliminary injunction issued by the Federal District Court for the District of Columbia on November 30, 2017, or other disputes including labor unions in excess of the Company’s operating plans; and (v) any costs or the payment of any fines, penalties, deposits or settlement amounts in connection with (A) foreign or domestic antitrust investigations and related lawsuits, (B) Brazilian customs or labor claims or investigations, or (C) environmental, regulatory or compliance matters (including any related compliance or other costs or actions) resulting from changes in applicable law or otherwise.  These adjustments shall be made on a pre-tax basis. The ROIC ratio will exclude the unconsolidated results of Polar Air Cargo Worldwide, Inc.

(4)“Comparative TSR” shall mean the Absolute TSR, on a percentile basis, of the Company relative to the Absolute TSR of the component companies of the Comparator Group set forth in Annex A hereto, in each case measured over the applicable Performance Period, as reasonably determined by the Committee. 

(5)“Absolute TSR” shall mean, on a percentage basis, with respect to the Company or any component company of the Comparator Group set forth in Annex A hereto, the price appreciation of such entity’s common stock plus the value of reinvested dividends, calculated using the average closing price for the 20 consecutive trading days ending immediately prior to the first day of the relevant period and the 20 consecutive trading days ending immediately prior to and including the last day of the relevant period, as reasonably determined by the Committee.

Section 6.Payment of Awards under this Program.

6.1.General.  A Participant will be entitled to receive payment, if any, under an Award if the Participant’s Employment continues through December 31, 2020, subject to this Section 6 and Section 7.  A Participant will receive an Award in the manner and at the times set forth in Sections 6.2, 6.3, 6.4 and Section 7.

6.2.Time of Payment.  In connection with the completion of performance, the Committee shall certify whether and at what level the Performance Criteria have been achieved.  For the purposes of this Program, the term “Determination Date” means the date in 2021 on which the Committee makes such certification. Any Payable Amount for an Award for the Performance Period shall be paid by the Company within two weeks following the Determination Date, but in no event later than March 15, 2021.

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6.3.Form of Payment.  All Payable Amounts for an Award shall be paid in cash.

6.4.Termination of Employment.

(a)General.  Except as provided otherwise in this Section 6.4 or Section 7, a Participant whose Employment terminates for any reason prior to the last day of the Performance Period shall forfeit such Award.

(b)Termination by Reason of Death or Disability; Termination by the Company Not For Cause.  In the event of the termination of the Participant’s Employment (i) due to death, (ii) by the Company by reason of the Participant’s Disability (as defined below), or (iii) by reason of an involuntary termination by the Company not for Cause (as defined below), in each case occurring after January 1, 2018, but before the end of the Performance Period and before the occurrence of a Change in Control of the Company (as defined below), the portion of the Award that will be payable is calculated by dividing the number of days from January 1, 2018 until the date of such termination of Employment, by the total number of days in the Performance Period, and multiplying that fraction by the Payable Amount.  Subject to Section 7, the reduced (prorated) Payable Amount, if any (calculated as provided in Section 5.2) shall not be payable until after the Determination Date in accordance with Section 6.2 above.

(c)Definitions.  For purposes of this Program:

(1) A termination of Employment shall be deemed to be by reason of “Disability” if immediately prior to such termination of Employment, the Participant shall have been continuously disabled from performing the duties assigned to the Participant for a period of not less than six consecutive calendar months, in which case such Disability shall be deemed to have commenced on the date following the end of such six consecutive calendar month period; and

(2) “Cause” shall mean (i) the Participant’s refusal or failure (other than during periods of illness or disability) to perform the Participant’s material duties and responsibilities to the Company, (ii) the conviction or plea of guilty or nolo contendere of the Participant in respect of any felony, other than a motor vehicle offense, (iii) the commission of any act which causes material injury to the reputation, business or business relationships of the Company including, without limitation, any breach of written policies of the Company with respect to trading in securities, (iv) any other act of fraud, including, without limitation, misappropriation, theft or embezzlement, or (v) a violation of any applicable material policy of the Company, including, without limitation, a violation of the laws against workplace discrimination.

(d)Retirement of the Chief Executive Officer.  In the event of a termination of Employment of the Chief Executive Officer of the Company (the “Chief Executive Officer”) by reason of the Chief Executive Officer’s Retirement (as defined below) 

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occurring after the date hereof and before the end of the Performance Period and before the occurrence of a Change in Control of the Company, the Payable Amount shall be payable as if the Chief Executive Officer’s Employment had continued during the entire Performance Period.  Subject to Section 7, the Payable Amount, if any (calculated as provided in Section 5.2) shall not be delivered until after the Determination Date.  For purposes of this Program, “Retirement” shall mean a termination of the Chief Executive Officer’s Employment with the Company for any reason other than Cause on or after the Chief Executive Officer’s attainment of age sixty (60) and ten (10) years of service with the Company; provided, however, that a voluntary resignation from Employment shall not be considered Retirement for purposes of the Program unless (1) the Chief Executive Officer shall have given not less than six (6) months’ advance written notice of such proposed retirement to the Chair of the Board (or such lesser period of notice as may be determined by the Board) and (2) a majority of the members of the Board (disregarding the Employee’s membership on the Board for these purposes) has approved such proposed retirement as a Retirement entitling the Employee to vesting under this Section 6.4(d) or Section 7, as applicable.

(e)Other Terminations of Employment.  Except as provided in this Section 6.4 or in Section 7, any termination of Employment of the Participant occurring prior to the end of the Performance Period (including a termination of Employment initiated by the Participant) shall result in the immediate and automatic termination and forfeiture of the Award.

Section 7.Change in Control.

7.1.Vesting; Determination of Payable Amount.  Immediately following a Change in Control of the Company (as defined below) unless in connection therewith an Award is assumed (or a substitute award granted) pursuant to Section 7(a)(1) of the Plan, if an Award is then outstanding, ROIC and EBITDA Growth shall each be deemed to have been satisfied based on assumed achievement at the maximum achievement level, and Comparative TSR shall be deemed satisfied based on actual performance over a shortened performance period ending as of (and taking into account) the Change in Control of the Company (collectively, “Deemed CIC Achievement”) and the Company shall pay to the Participant (except with respect to the Chief Executive Officer, as provided below), in full satisfaction of its obligations with respect thereto, cash in an amount equal to the Payable Amount on the basis of such Deemed CIC Achievement, within ten (10) days following the Change in Control of the Company.  Notwithstanding the immediately preceding sentence, if in connection with the Change in Control of the Company, an Award is assumed (or a substitute award granted) pursuant to Section 7(a)(1) of the Plan, then such Award shall become payable (except with respect to the Chief Executive Officer) only if (A) the Participant’s Employment continues until the end of the Performance Period, in which case this Award will become fully payable at the end of the Performance Period, or (B) there is a Change in Control Termination before the end of the Performance Period, in which case this Award will become fully payable in connection with the Change in Control Termination.  The Company shall pay to the Participant the vested portion of the Payable Amount on the basis of the Deemed CIC Achievement within ten (10) days following the earliest of (x) the period specified in (A), (y) the time specified in (B), and (z) in the event a termination of Employment described in Section 6.4(b) has occurred prior to such Change in Control of the Company, the 

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Change in Control of the Company.  Solely in the case of the Chief Executive Officer, in the event of a Change in Control of the Company, the Company shall pay the Payable Amount, on the basis of the Deemed CIC Achievement, upon the earliest of (1) as soon as practicable following the end of the Performance Period, but in any event no later than March 15, 2021, (2) within ten (10) days following such Change in Control of the Company, if such Change in Control of the Company occurs following a termination of the Chief Executive Officer’s Employment as described in Section 6.4(b) or Section 6.4(d), and (3) within ten (10) days following a Change in Control Termination.

7.2.Definitions.  For purposes of this Program, the following definitions shall apply:

(a)“Change in Control Termination” means the termination of a Participant’s Employment following a Change in Control of the Company (i) by the Company and its subsidiaries not for Cause, (ii) by the Participant for Good Reason, (iii) by reason of the Participant’s death or Disability, or (iv) solely in the case of the Chief Executive Officer, by reason of his Retirement which is approved by a majority of the members of the Board (disregarding the Chief Executive Officer’s membership on the Board for these purposes) in accordance with Section 6.4(d) hereof.

(b)“Change in Control of the Company” means a “change in control event” (as that term is defined at Section 1.409A-3(i)(5) of the Treasury Regulations) with respect to the Company, which generally will include the following events, subject to such additional rules and requirements as may be set forth in the Treasury Regulations and related guidance:

(1) a transfer or issuance of stock of the Company, where stock in the Company remains outstanding after the transaction, and one person, or more than one person acting as a group (as determined under the Treasury Regulations), acquires ownership of stock in the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company (however, if a person or group is considered to own more than 50% of the total fair market value or 30% of the total voting power of the stock of the Company, the acquisition of additional stock by the same person or group will not be considered a change in control for purposes of this Section 7);

(2) the acquisition by a person or group, during the 12-month period ending on the date of the most recent acquisition by such person or group, of ownership of stock possessing 30% or more of the total voting power of the Company (however, if a person or group is considered to control the Company within the meaning of this sentence (i.e., owns stock of the Company possessing 30% or more of the total voting power of the Company), then the acquisition of additional control will not be considered a change in control for purposes of this Section 7);

(3) the replacement of a majority of members of the Company’s Board of Directors during any 12-month period by directors whose appointment or 

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election is not endorsed by a majority of the members of the Company’s Board of Directors before the appointment or election; or

(4) the acquisition by a person or group, during the 12-month period ending on the date of the most recent acquisition by such person or group, of assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all the assets of the Company, as determined under the Treasury Regulations (however, a transfer of assets to certain related persons, as provided under the Treasury Regulations, or to an entity that is controlled by the shareholders of the Company immediately after the transfer, will not be considered a change in control for purposes of this Section 7).

(c)“Good Reason” means (i) a material reduction in a Participant’s duties and responsibilities from those of the Participant’s most recent position with the Company, (ii) a reduction of a Participant’s aggregate salary, benefits and other compensation (including incentive opportunity) from that which the Participant was most recently entitled during Employment with the Company other than in connection with a reduction as part of a general reduction applicable to all similarly-situated Participants of the Company, or (iii) a relocation of a Participant to a position that is located greater than 40 miles from the location of such Participant’s most recent principal location of Employment; provided, however, that a Participant will be treated as having resigned for Good Reason only if he or she provides the Company with a notice of termination within 90 days of the initial existence of one of the conditions described above, following which the Company shall have 30 days from the receipt of the notice of termination to cure the event specified in the notice of termination and, if the Company fails to so cure the event, the Participant must terminate his or her Employment not later than 30 days following the end of such cure period.

Section 8.Beneficiary Designation.

8.1.Designation and Change of Designation.  Each Participant shall file with the Company a written designation of one or more persons as the Beneficiary who shall be entitled to receive the Award, if any, payable under the Program upon the Participant’s death.  A Participant may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Company.  The last such designation received by the Company shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Company prior to the Participant’s death, and in no event shall it be effective as of any date prior to such receipt.

8.2.Absence of Valid Designation.  If no such Beneficiary designation is in effect at the time of a Participant’s death, or if no designated Beneficiary survives the Participant, or if such designation conflicts with law, the Participant’s estate shall be deemed to have been designated as the Participant’s Beneficiary and shall receive the payment of the amount, if any, payable under the Program upon the Participant’s death.  If the Company is in doubt as to the right of any person to receive such amount, the Company may retain such amount, without 

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liability for any interest thereon, until the rights thereto are determined, or the Company may pay such amount into any court of appropriate jurisdiction and such payment shall be a complete discharge of the liability of the Program and the Company therefor.

Section 9.General Provisions.

9.1.Program to be Unfunded.  The Program is intended to constitute an unfunded incentive compensation arrangement.  Nothing contained in the Program, and no action taken pursuant to the Program, shall create or be construed to create a trust of any kind.  A Participant’s right to receive an Award shall be no greater than the right of an unsecured general creditor of the Company.  All Awards shall be paid from the general funds of the Company, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such Awards.  There shall not vest in any Participant or Beneficiary any right, title, or interest in and to any specific assets of the Company.

9.2.Section 409A of the Code.  Awards under the Program are intended to be exempt from, or comply with, the requirements of Section 409A of the Code and shall be construed and administered accordingly.  Notwithstanding anything to the contrary in this Program, if at the time of the Participant’s termination of employment, the Participant is a “specified employee,” as defined below, any and all amounts payable under this Program on account of such separation from service that constitute deferred compensation and would (but for this provision) be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the expiration of such six (6) month period or, if earlier, upon the Participant’s death; except (A) to the extent of amounts that do not constitute a deferral of compensation within the meaning of Section 1.409A-1(b) of the Treasury Regulations, as determined by the Company in its reasonable good faith discretion or (B) other amounts or benefits that are not subject to the requirements of Section 409A.  For purposes of this Program, all references to “termination of employment” and correlative phrases shall be construed to require a “separation from service” (as defined in Section 1.409A-1(h) of the Treasury Regulations after giving effect to the presumptions contained therein), and the term “specified employee” means an individual determined by the Company to be a specified employee under Section 1.409A-1(i) of the Treasury Regulations.  Notwithstanding anything to the contrary in the Program, neither the Company, nor any affiliate, nor the Committee, nor any person acting on behalf of the Company, any affiliate, or the Committee, shall be liable to any Participant or to the estate or beneficiary of any Participant or to any other holder of an Award by reason of any acceleration of income, or any additional tax, asserted by reason of the failure of an Award to be exempt from the requirements of Section 409A or by reason of Section 4999 of the Code; provided, that nothing in this Section 9.2 shall limit the ability of the Committee or the Company to provide by separate express written agreement with a Participant for a gross-up payment or other payment in connection with any such tax or additional tax.

9.3.Rights Limited.  Nothing contained in the Program shall give any Eligible Participant the right to continue in the employment of the Company, or limit the right of the Company to discharge an Eligible Participant.

9.4.Governing Law.  The Program shall be construed and governed in accordance with the laws of the State of New York.

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9.5.Taxes.  There shall be deducted from all amounts paid under the Program all federal, state, local and other taxes required by law to be withheld with respect to such payments.

Section 10.Amendment, Suspension, or Termination.

The Committee reserves the right to amend, suspend, or terminate the Program at any time.

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