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american_ex102.htm

EXHIBIT 10.2

 

 

AMENDMENT NO. 4

TO

PROMISSORY NOTE

 

From:

 

AMERICAN EXPLORATION CORPORATION

 

 

To:

 

MAINLAND RESOURCES INC.

 

THIS AMENDMENT NO. 4 TO PROMISSORY NOTE (the “Amendment”) is made as of August 18, 2011

 

BETWEEN:

 

MAINLAND RESOURCES, INC., a company existing under the laws of the State of Nevada, USA

(“Mainland”)

 

AND:

 

AMERICAN EXPLORATION CORPORATION, a company existing under the laws of the State of Nevada, USA

(“American Exploration”)

 

WHEREAS:

 

(A) American Exploration (as Borrower) and Mainland (as Lender), entered into that certain Promissory Note dated September 27, 2010, as amended by Amendment No. 1 thereto dated December 23, 2010, as further amended by Amendment No. 2 thereto dated March 30, 2011, and as further amended by Amendment No. 3 thereto dated May 17, 2011 (such Promissory Note, as amended, the “Promissory Note”) whereby American Exploration promised to pay Mainland, or the holder of the Promissory Note, in accordance with the terms and conditions referenced therein, the aggregate Principal Sum of U.S.$60,000, together with Interest payable thereon commencing on the Effective Date of September 27, 2010 at the rate of twelve percent (12%) per annum, calculated daily and payable in full monthly during the continuance of any portion of the Principal Sum being outstanding thereunder prior to maturity, in the manner as set forth in such Promissory Note;

 

(B) The Promissory Note provides that the Principal Sum, together with all outstanding Interest thereon, is due and payable by American Exploration to Mainland on or before 5:00 p.m. (Vancouver, British Columbia, time) on the “Final Principal Sum Payment Date”, which is defined in the Promissory Note to mean August 31, 2011;

 

  

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(C) American Exploration and Mainland wish to amend the terms of the Promissory Note to extend the Final Principal Sum Payment Date to October 31, 2011;

 

THIS AMENDMENT WITNESSES that in consideration of the respective covenants and agreements herein contained, American Exploration and Mainland covenant and agree as follows:

 

Certain Definitions

 

1. Capitalized terms not otherwise herein defined shall have the meaning ascribed to them in the Promissory Note.

 

Termination Date

 

2. The Promissory Note is hereby amended to replace “August 31, 2011” with “October 31, 2011” in the definition of “Final Principal Sum Payment Date”.

 

Amendment

 

3. Except as expressly amended hereby, the Promissory Note is in all respects ratified and confirmed and all the terms, conditions, and provisions thereof shall remain in full force and effect as of the date hereof.

 

Effect of Amendment

 

4. This Amendment shall form a part of the Promissory Note for all purposes, and each of American Exploration and Mainland shall be bound hereby. From and after the execution of this Amendment by the parties hereto, any reference to the Promissory Note shall be deemed a reference to the Promissory Note as amended hereby.

 

Entire Agreement

 

5. This Amendment constitutes the entire agreement between the parties hereto, and supersedes every previous agreement, communication, expectation, negotiation, representation or understanding, whether oral or written, express or implied, statutory or otherwise between the parties hereto, with respect to the subject matter of this Amendment.  Nothing in this Section 5 will limit or restrict the effectiveness and validity of any document with respect to the subject matter of this Amendment that is executed and delivered contemporaneously with or pursuant to this Amendment.

 

  

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Governing Laws

 

6. This Amendment shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein and shall be treated in all respects as a British Columbia contract.

 

Counterparts

 

7. This Amendment may be executed in any number of counterparts, in original form or by facsimile, each of which will together, for all purposes, constitute one and the same instrument, binding on the parties hereto, and each of which will together be deemed to be an original, notwithstanding that each party hereto is not a signatory to the same counterpart.

 

Headings

 

8. The descriptive headings of the several Sections of this Amendment were formulated, used and inserted in this Amendment for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK

 

  

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IN WITNESS WHEREOF this Amendment has been executed by the parties hereto effective as of the day and year first above written.

 

	 	MAINLAND RESOURCES, INC.	 	 	AMERICAN EXPLORATION CORPORATION	 
	 	 	 	 	 	 
	By:	
/s/William D. Thomas

	 	By:	
/s/  Steven Harding

	 
	 	
Name: William D. Thomas

	 	 	
Name: Steven Harding

	 
	 	
Title: Chief Financial Officer

	 	 	
Title: President and CEO

	 

 

 

  

4Exhibit 10(a) 06.30.2011.Q4

Exhibit 10(a)
SUMMARY OF DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION
This summary sets forth the compensation of the Directors of Kimball International, Inc. (the "Company"). The summary also includes compensation of the Chief Executive Officer, Chief Financial Officer, and three most highly compensated executive officers (the "Named Executive Officers") of the Company as of the fiscal year ended June 30, 2011. 
For a detailed description of the compensation arrangements that the Directors and Named Executive Officers participate in, refer to the Company's most recent Proxy Statement filed with the Securities and Exchange Commission.
Director Compensation
All Outside (non-employee) Directors receive annual compensation of $55,000 for the year for service as Directors. The Chairperson of the Audit Committee of the Board of Directors receives $5,500 per committee meeting, and other Audit Committee members receive $4,000 per committee meeting. The Chairperson of the Compensation and Governance Committee receives $4,000 per committee meeting, and other members of the Compensation and Governance Committee receive $2,500 per committee meeting. Members of the Strategic Planning Committee receive $4,000 per committee meeting.
The Directors can elect to receive all of their annual retainer and/or meeting fees in shares of Class B Common Stock under the Company's 2003 Stock Option and Incentive Plan. Directors are also reimbursed for travel expenses incurred in connection with Board and Committee meeting attendance.
An Outside Director is a director who is not an employee of the Company or one of its subsidiaries. James C. Thyen, President and Chief Executive Officer, and Douglas A. Habig, Chairman of the Board, are Directors of the Company but do not receive compensation for their services as Directors.
Named Executive Officers
Base Pay
Periodically, the Compensation and Governance Committee of the Board of Directors reviews and approves the salaries that are paid to the Company's executive officers. The following are the current annualized base salaries for the Company's Named Executive Officers:
	
				
	James C. Thyen, President and Chief Executive Officer
	$
	897,572
	

	Donald D. Charron, Executive Vice President, President-Kimball Electronics Group
	$
	547,300
	

	Robert F. Schneider, Executive Vice President, Chief Financial Officer
	$
	434,200
	

	John H. Kahle, Executive Vice President, General Counsel, Secretary
	$
	369,200
	

	Donald W. Van Winkle, Vice President, President-Office Furniture Group
	$
	312,000
	

Cash Incentive Compensation
Each of the Named Executive Officers was eligible to participate in the Company's 2010 Profit Sharing Incentive Bonus Plan (the "Plan") for fiscal year 2011. A long-standing component of the Company's profit sharing incentive bonus plan is that it is linked to the performance of the Company which automatically lowers total compensation expense when profits are down. Under the Plan, cash incentives are accrued annually and paid in five installments over the succeeding fiscal year. Except for provisions relating to retirement, death, permanent disability, and certain other circumstances described in a participant's employment agreement, participants must be actively employed on each payment date to be eligible to receive any unpaid cash incentive installment. The total amount of cash incentives accrued and authorized to be paid to the Named Executive Officers based on the Company's fiscal year 2011 results is listed below. The Named Executive Officers received an installment of 50% of the payment in August 2011, and the remaining portions will be paid in equal installments in September 2011, January 2012, April 2012, and June 2012.
	
				
	James C. Thyen, President and Chief Executive Officer
	$
	130,004
	

	Donald D. Charron, Executive Vice President, President-Kimball Electronics Group
	$
	74,190
	

	Robert F. Schneider, Executive Vice President, Chief Financial Officer
	$
	63,891
	

	John H. Kahle, Executive Vice President, General Counsel, Secretary
	$
	53,901
	

	Donald W. Van Winkle, Vice President, President-Office Furniture Group
	$
	118,365
	

Stock Compensation
The Named Executive Officers may also receive a variety of stock incentive benefits under the 2003 Stock Option and Incentive Plan consisting of: restricted stock, restricted share units, unrestricted share grants, incentive stock options, nonqualified stock options, stock appreciation rights, performance shares, and performance units. During fiscal year 2011 Named Executive Officers were awarded grants of performance shares and unrestricted shares. Performance shares include both an annual performance share ("APS") award and a long-term performance share ("LTPS") award with one-fifth (1/5) of the LTPS award vesting annually over the succeeding five-year period.
The following table summarizes the performance shares issued in Class A Common Stock during August 2011 to the Company's Named Executive Officers pursuant to their fiscal year 2011 performance share awards:
	
						
	 
	APS Award (number of shares issued) (1)
	 
	LTPS Award (number of shares issued) (1)

	James C. Thyen, President and Chief Executive Officer
	21,450
	

	 
	45,240
	

	Donald D. Charron, Executive Vice President, President-Kimball Electronics Group
	1,050
	

	 
	12,135
	

	Robert F. Schneider, Executive Vice President, Chief Financial Officer
	1,125
	

	 
	9,360
	

	John H. Kahle, Executive Vice President, General Counsel, Secretary
	1,125
	

	 
	9,285
	

	Donald W. Van Winkle, Vice President, President-Office Furniture Group
	1,365
	

	 
	3,397
	

	 
	 
	 
	 

	(1) Shares have not been reduced by the number of shares withheld to satisfy tax withholding obligations.

The following table summarizes the maximum number of performance shares awarded in August 2011 to the Company's Named Executive Officers for fiscal year 2012: 
	
						
	 
	APS Award (number of shares)
	 
	LTPS Award (number of shares)

	James C. Thyen, President and Chief Executive Officer
	143,000
	

	 
	183,000
	

	Donald D. Charron, Executive Vice President, President-Kimball Electronics Group
	22,500
	

	 
	24,300
	

	Robert F. Schneider, Executive Vice President, Chief Financial Officer
	15,500
	

	 
	24,300
	

	John H. Kahle, Executive Vice President, General Counsel, Secretary
	15,500
	

	 
	24,300
	

	Donald W. Van Winkle, Vice President, President-Office Furniture Group
	17,500
	

	 
	24,300
	

The number of shares to be issued will be dependent upon the percentage payout under the Plan. Refer to the Company's Proxy Statement for further details.
The following table summarizes unrestricted shares issued in February 2011 to the Company's Named Executive Officers:
	
						
	 
	Class A (number of shares issued) (1)
	 
	Class B (number of shares issued) (1)

	Donald D. Charron, Executive Vice President, President-Kimball Electronics Group
	4,000
	

	 
	—
	

	Robert F. Schneider, Executive Vice President, Chief Financial Officer
	—
	

	 
	2,500
	

	John H. Kahle, Executive Vice President, General Counsel, Secretary
	—
	

	 
	2,000
	

	Donald W. Van Winkle, Vice President, President-Office Furniture Group
	3,000
	

	 
	—
	

	 
	 
	 
	 

	(1) Shares have not been reduced by the number of shares withheld to satisfy tax withholding obligations.

Retirement Plans
The Named Executive Officers participate in a defined contribution, participant-directed retirement plan with a 401(k) provision that all domestic employees are eligible to participate in (the "Retirement Plan"). The Retirement Plan provides for voluntary employee contributions as well as a discretionary annual Company contribution based on a percent of net income with certain minimum and maximum limits as determined annually by the Board of Directors. Each eligible employee's Company contribution is defined as a percent of eligible compensation, the percent being identical for all eligible employees, including Named Executive Officers. Participant contributions are fully vested immediately, and Company contributions are fully vested after five years of participation. All Named Executive Officers are fully vested. The Retirement Plan is fully funded. For those eligible employees who, under the 1986 Tax Reform Act, are deemed to be highly compensated, their individual Company contribution under the Retirement Plan is reduced. For employees who are eligible, including all Named Executive Officers, there is a nonqualified, Supplemental Employee Retirement Plan (SERP) in which the Company contributes to the account of each individual an amount equal to the reduction in the contribution under the Retirement Plan arising from the provisions of the 1986 Tax Reform Act. The SERP investment is primarily composed of employee contributions. 
Other
The Named Executive Officers receive nominal benefits such as financial counseling, medical reimbursement, executive preventive healthcare program, tax preparation, and other miscellaneous items. The Named Executive Officers may use the Company aircraft for transportation related to the executive preventive healthcare program and for limited personal reasons. The exact amounts received from these benefits are not predetermined and are disclosed annually in the Company's Proxy Statement.

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