Document:

vctr-ex1032_572.htm

 

Exhibit 10.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VICTORY CAPITAL HOLDINGS, INC. DIRECTORS DEFERRED COMPENSATION PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by

THE ERISA LAW GROUP

8700 MONROVIA STREET, SUITE 310

LENEXA, KANSAS 66215

(913) 647-7552

 

 

 

 

2019

 

 

 

VICTORY CAPITAL HOLDINGS, INC.

DIRECTORS DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

 

	
 
	
 
	
 
	
 
	
Page

	
ARTICLE 1 – 
	
 
	
DEFINITIONS
	
1

	
 
	
 
	
1.1
	
Account
	
1

	
 
	
 
	
1.2
	
Accrued Benefit
	
1

	
 
	
 
	
1.3
	
Beneficiary
	
1

	
 
	
 
	
1.4
	
Benefit or benefits
	
1

	
 
	
 
	
1.5
	
Board
	
1

	
 
	
 
	
1.6
	
Change in Control
	
1

	
 
	
 
	
1.7
	
Code
	
1

	
 
	
 
	
1.8
	
Compensation
	
2

	
 
	
 
	
1.9
	
Director
	
2

	
 
	
 
	
1.10
	
Disability
	
2

	
 
	
 
	
1.11
	
Earnings
	
2

	
 
	
 
	
1.12
	
Effective Date
	
2

	
 
	
 
	
1.13
	
Election Date
	
2

	
 
	
 
	
1.14
	
Employer
	
2

	
 
	
 
	
1.15
	
Participant
	
2

	
 
	
 
	
1.16
	
Payment Event
	
2

	
 
	
 
	
1.17
	
Plan
	
2

	
 
	
 
	
1.18
	
Plan Administrator
	
2

	
 
	
 
	
1.19
	
Plan Year
	
2

	
 
	
 
	
1.20
	
Salary Deferral Agreement
	
3

	
 
	
 
	
1.21
	
Salary Deferral Contribution Account
	
3

	
 
	
 
	
1.22
	
Salary Deferral Contributions
	
3

	
 
	
 
	
1.23
	
Segregated Investment Account
	
3

	
 
	
 
	
1.24
	
Separation from Service
	
3

	
 
	
 
	
1.25
	
Spouse
	
3

	
 
	
 
	
1.26
	
Valuation Date
	
3

	
 
	
 
	
1.27
	
Valuation Period
	
3

	
ARTICLE 2 –
	
 
	
PARTICIPATION
	
3

	
 
	
 
	
2.1
	
Eligibility
	
3

	
 
	
 
	
2.2
	
Change of Participation
	
3

	
ARTICLE 3 –
	
 
	
CONTRIBUTIONS, VESTING AND FORFEITURE
	
4

	
 
	
 
	
3.1
	
Salary Deferral Contributions
	
4

	
 
	
 
	
3.2
	
Vesting
	
4

	
ARTICLE 4 –
	
 
	
PLAN ACCOUNTING, EARNINGS AND FUNDING
	
5

	
 
	
 
	
4.1
	
Investment
	
5

	
 
	
 
	
4.2
	
Accounting
	
5

	
 
	
 
	
4.3
	
Account Adjustments
	
5

	
 
	
 
	
4.4
	
Allocation of Earnings
	
6

	
 
	
 
	
4.5
	
Participant Direction of Investment
	
6

	
 
	
 
	
4.6
	
No Funding
	
7

	
ARTICLE 5 –
	
 
	
TIME AND METHOD OF PAYMENT
	
7

	
 
	
 
	
5.1
	
Election of Payment
	
7

	
 
	
 
	
5.2
	
Payment Events
	
7

	
 
	
 
	
5.3
	
Method of Payment
	
8

	
 
	
 
	
5.4
	
Default Payment
	
8

	
 
	
 
	
5.5
	
Intervening Disability or Death
	
8

2

 
 

 

	
 
	
 
	
5.6
	
Change in Election
	
8

	
 
	
 
	
5.7
	
Permitted Payment Acceleration
	
9

	
 
	
 
	
5.8
	
Domestic Relations Orders
	
9

	
 
	
 
	
5.9
	
Overpayment
	
10

	
 
	
 
	
5.10
	
Facility of Payment
	
10

	
 
	
 
	
5.11
	
Taxes
	
10

	
 
	
 
	
5.12
	
Required Delay of Payment
	
10

	
ARTICLE 6 –
	
 
	
PARTICIPANT PROVISIONS
	
10

	
 
	
 
	
6.1
	
Beneficiary Designation
	
10

	
 
	
 
	
6.2
	
Community Property and Legal Effect
	
11

	
 
	
 
	
6.3
	
No Beneficiary Designation
	
11

	
 
	
 
	
6.4
	
Revocation Upon Divorce
	
11

	
 
	
 
	
6.5
	
Personal Data to Employer
	
11

	
 
	
 
	
6.6
	
Assignment or Alienation
	
11

	
ARTICLE 7 -
	
 
	
ADMINISTRATION
	
11

	
 
	
 
	
7.1
	
Authority and Responsibility of the Plan Administrator
	
11

	
 
	
 
	
7.2
	
Claims Procedures
	
12

	
 
	
 
	
7.3
	
Expenses
	
12

	
ARTICLE 8 -
	
 
	
MISCELLANEOUS
	
12

	
 
	
 
	
8.1
	
Amendment or Termination
	
12

	
 
	
 
	
8.2
	
No Liability
	
13

	
 
	
 
	
8.3
	
Employment Relations
	
13

	
 
	
 
	
8.4
	
Enforceability
	
13

	
 
	
 
	
8.5
	
Construction
	
13

	
 
	
 
	
8.6
	
Entire Agreement
	
14

	
 
	
 
	
8.7
	
Governing Law
	
14

 

 

 

3

 
 

 

VICTORY CAPITAL HOLDINGS, INC. DIRECTORS DEFERRED COMPENSATION PLAN

 

Victory Capital Holdings, Inc. (“Employer”) hereby adopts this unfunded Plan for the purpose of providing a deferred compensation opportunity for certain Directors of the Employer (“Participants” as defined below).

 

WITNESSETH:

 

WHEREAS, the services of the Participants and their experience and knowledge of the affairs of the Employer are extremely valuable to the Employer;

 

WHEREAS, the Employer desires that Participants remain in its service, and to motivate and reward them for their performance;

 

WHEREAS, to accomplish these goals the Employer has established and adopted this deferred compensation plan which allows for Participant contributions to it;

 

WHEREAS, the Employer desires that this Plan comply with applicable laws including the relevant provisions of the Internal Revenue Code, particularly, Section 409A; and

 

NOW THEREFORE, to accomplish these ends, the Plan is adopted and reads as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.1 “Account” means the one or more accounts maintained to record a Participant’s Salary Deferral Contributions and which are credited with Earnings pursuant to Article 4.

 

Section 1.2 “Accrued Benefit” means the Participant’s interest in the Plan, as determined under Section 4.2, of the amount credited to a Participant’s Account(s) as of any date.

 

Section 1.3 “Beneficiary” means a person or entity entitled to receive any Accrued Benefit which is payable by reason of a Participant’s death.

 

Section 1.4 “Benefits” or “benefits” means the Accrued Benefit(s) that is (are) payable under this Plan.

 

Section 1.5 “Board” means the Board of Directors of the Employer.

 

Section 1.6 “Change in Control” means a change in ownership or effective control of the Employer or a change in ownership of a substantial portion of the Employer’s assets, all in accordance with Code Section 409A.

 

Section 1.7 “Code” means the Internal Revenue Code of 1986, as amended.

 

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Section 1.8 “Compensation” means, with respect to each Plan Year, the fees paid in cash to Directors for services to the Employer including any Annual Retainer Fee, Committee Chair Fee, Committee Member Fee (as defined by Employer and understood by it and each Participant pursuant to the Participant’s engagement as a Director by the Employer) and any other fees that may be paid in cash from time to time to Directors for services to the Employer. A Participant’s Compensation under this Plan shall include only those fees that are paid in cash. A Participant’s Compensation under this Plan shall not include any fees or other remuneration that is paid or elected to be paid in shares of stock of the Employer, dividends on vested shares of stock of the Employer, or other forms of equity or non- cash property.

 

Section 1.9 “Director” means a member of the Board of Directors of the Employer.

 

Section 1.10 “Disability” A Participant is “Disabled” or incurs a “Disability” if the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months. The determination of Disability shall be made by the Employer.

 

Section 1.11 “Earnings” means gains and losses, realized and not realized.

 

Section 1.12 “Effective Date” means the effective date of this Plan, which is January 1, 2020.

 

Section 1.13 “Election Date” is the respective date prescribed in Sections 3.1(d) and 5.1(a).

 

Section 1.14 “Employer” means Victory Capital Holdings, Inc., incorporated in the State of Delaware.

 

Section 1.15 “Participant” means a Director who is not a common law employee of the Employer or a wholly-owned direct or indirect subsidiary of the Employer and who is designated in writing as a Participant by the Employer and who satisfies the eligibility requirements under Article 2 and has not received a distribution of his or her entire Accrued Benefit. References herein to Participant include references to the Participant’s Beneficiary each place where the context so requires or applies, as determined in the discretion of the Employer. Furthermore, the use of the word Beneficiary herein does not preclude the Employer’s interpretation of the word “Participant” to include a Beneficiary elsewhere in the Plan.

 

Section 1.16 “Payment Event” is defined in Section 5.2.

 

Section 1.17 “Plan” means the nonqualified deferred compensation plan established by the Employer in the form of this document, as it may be amended from time to time.

 

Section 1.18 “Plan Administrator” means the Employer, or such other person, persons, committee, organization, or entity to whom the Employer has delegated the authority of Plan Administrator in accordance with Article 7.

 

Section 1.19 “Plan Year” means the twelve (12) consecutive month  period  ending  every December 31.

 

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Section 1.20 “Salary Deferral Agreement” means the agreement a Participant executes in accordance with Section 3.1.

 

Section 1.21 “Salary Deferral Contribution Account” means the individual account for a Participant to record the Salary Deferral Contributions and which is credited for such Account’s Earnings pursuant to Article 4.

 

Section 1.22 “Salary Deferral Contributions” means the amounts credited on a Participant’s behalf in accordance with the Participant’s election to defer Compensation pursuant to Section 3.1.

 

Section 1.23 “Segregated Investment Account” means a Participant-directed Account pursuant to Section 4.5.

 

Section 1.24 “Separation from Service” means a severance for any reason of a Participant’s membership and service on the Board of Directors and all independent contractor relationships with the Employer or a wholly-owned direct or indirect subsidiary of the Employer. Notwithstanding the foregoing, a Participant’s Separation from Service under the Plan shall not occur unless such severance also qualifies as a “separation from service” within the meaning of Code Section 409A and the regulations thereunder.

 

Section 1.25 “Spouse” means the person who is legally married to the Participant under the laws of a state or other recognized jurisdiction as of any relevant date, as evidenced by a valid marriage certificate or other proof acceptable to the Employer. This includes married individuals of the same sex, even if the married couple resides in a state or jurisdiction that does not recognize the validity of same sex marriages.

 

Section 1.26 “Valuation Date” means each business day of the Plan Year on which Plan assets for which there is an established market are valued. Otherwise, the Valuation Date means the last day of each Plan Year, and/or such other Valuation Date(s) as selected by the Employer.

 

Section 1.27 “Valuation Period” with respect to any Valuation Date means the period since the preceding Valuation Date.

 

ARTICLE 2

PARTICIPATION

 

Section 2.1 Eligibility. Any Director who is not a common law employee of the Employer or a wholly-owned direct or indirect subsidiary of the Employer may participate in the Plan. Participation in the Plan does not create any right to be retained or engaged by the Employer or to earn future benefits of any kind. Except for Salary Deferral Contributions made pursuant to Section 3.1, nothing in the Plan shall be construed to require any contributions to the Plan on behalf of the Participant.

 

Section 2.2 Change of Participation. The Employer in its sole discretion may remove any Participant from the Plan or designate new Participants in the Plan. A Participant will cease to actively participate under the Plan upon a Separation from Service. Any Participant who ceases to actively participateunder the Plan shall, until the Participant’s Accrued Benefit has been distributed enjoy the rights afforded to the Participant as provided under the Plan.

3

 
 

 

 

ARTICLE 3

CONTRIBUTIONS, VESTING, AND FORFEITURE

 

Section 3.1 Salary Deferral Contributions

 

(a)In General. A Participant may elect to defer a percentage or amount of his or her Compensation for a Plan Year and have the Employer credit the deferred amount to the Plan. A Participant’s election to defer shall be made by executing a Salary Deferral Agreement in accordance with this Section 3.1.

 

(b)Form of Election. The Participant’s Salary Deferral Agreement must be in writing, must be dated and signed or otherwise authenticated by the Participant, and must be delivered to the Employer in the medium the Employer designates, together with all other documents or information required as determined by the Employer. The Salary Deferral Agreement shall be in the form provided by the Employer and shall include the Participant’s elections of the time and method of payment of the Participant’s Accrued Benefit in accordance with Article 5.

 

(c)Election Periods. The Employer shall schedule an annual election period during which Participants who elect to complete Salary Deferral Agreements must complete such agreements. Such periods shall end each Plan Year no later than the day immediately prior to the beginning of the next Plan Year during which the services that are performed by the Participant give rise to the Compensation that may be deferred. The Employer may, in writing to the Participant, designate that said election period will end on a specified date earlier than the day immediately prior to the beginning of such next Plan Year.

 

(d)Election Date/Irrevocability. A Participant’s Salary Deferral Agreement shall become irrevocable as of the end of the election period designated by the Employer (the “Election Date”) and shall remain irrevocable and in effect for Compensation paid (or deferred) with respect to services the Participant performs in the Plan Year the beginning of which next follows the Election Date.

 

(e)Amount and Compensation. A Participant’s Salary Deferral Contributions with respect to a Plan Year shall not be less than such amount the Employer prescribes in the Salary Deferral Agreement nor more than one hundred percent (100%) of the Participant’s Compensation (minus required payroll or other deductions and deductions for any other Employer-sponsored plan or program) or such other amount the Employer establishes in the Salary Deferral Agreement. A Salary Deferral Agreement shall be made (and/or limited) with respect to such Compensation prescribed by the Employer and set forth in one or more Salary Deferral Agreements.

 

(f)Failure to Elect. In the event a Salary Deferral Agreement is not properly completed and in effect for a Plan Year, the Participant shall be deemed to have elected to not make any Salary Deferral Contributions for the subject Plan Year, as applicable.

 

(g)Withholding and Deferral. The Employer shall withhold or cause to be withheld the amount or percentage of Compensation elected to be deferred from each payment of Compensation to the Participant. Subject to Section 409A requirements, Compensation payable after the last day of the Plan Year solely for services provided during the final payroll period containing the last day of the Plan Year is treated as Compensation for services performed in the subsequent Plan Year.

 

Section 3.2 Vesting.

 

(a)Full Vesting. A Participant shall have a nonforfeitable vested interest in all of his or her Accrued Benefit attributable to the Participant’s Salary Deferral Contribution Account.

 

4

 
 

 

(b)Forfeiture and Recoupment. Notwithstanding any other provision herein or any provision of any other agreement applicable to Participant’s service as a Director, a Participant’s Accrued Benefit hereunder is subject to complete forfeiture, or recoupment if such Accrued Benefit has been paid from the Plan, if the Employer determines that the Participant has engaged in Misconduct. For purposes of this Section 3.2, the term “Misconduct” means the willful commission of an illegal act, fraud, intentional misconduct or gross recklessness in the performance of Participant’s duties and responsibilities as a Director.

 

ARTICLE 4

PLAN ACCOUNTING, EARNINGS, AND FUNDING

 

Section 4.1 Investment. The Employer shall invest contributions under the Plan in one or more designated investment vehicles for investment within a period that is not longer than is reasonable for the proper administration of Accounts and in accordance with the participant direction of investments under section 4.5.

 

Section 4.2 Accounting.  The Plan shall maintain one or more bookkeeping Accounts in the name of each Participant to reflect the Participant’s Accrued Benefit under the Plan, including to record each contribution and Earnings thereon. A Participant’s Accrued Benefit as of any applicable date is the balance of his or her Account(s) as determined in accordance with this Article 4.

 

Section 4.3 Account Adjustments. Except for Earnings of a Segregated Investment Account, as of each Valuation Date the applicable Account of each Participant shall be credited or charged, as the case may be, with:

 

(a)distributions made to or withdrawals by the Participant or his or her Beneficiaries during the Valuation Period;

 

(b)Salary Deferral Contributions allocated to the Participant’s Account(s) during the Valuation Period;

 

(c)Earnings allocated to the Participant’s Account(s) during the Valuation Period;

 

(d)if contributions, Earnings, or other benefits under the Plan are subject to federal, state or local income, employment (e.g., taxes under the Federal Insurance Contributions Act or Federal Unemployment Tax Act), or other taxes, said taxes shall, in the discretion of the Employer, be withheld and deducted from a portion of the Participant’s compensation and/or charged against the applicable Participant Account as determined by the Employer; and

 

5

 
 

 

 

(e)other amounts, if any, allocated to or charged against the Participant’s Account(s) under the Plan (e.g., Plan expenses).

 

The provisions of Section 4.5 shall also apply to Accounts.

 

Section 4.4 Allocation of Earnings. As of each Valuation Date, and excluding for this purpose Segregated Investment Accounts, Earnings for all Accounts shall be allocated to each Participant’s Account pursuant to a fraction, the numerator of which is the value of such Account and the denominator of which is the value of all Accounts. To calculate each fraction, the Accounts to which Earnings shall be allocated will be valued as of the preceding applicable Valuation Date (the “opening Account balance”), provided, however, the Employer may establish procedures that are uniformly applied to similarly-situated Participants to determine the Earnings with respect to each Plan Year contribution and to value Accounts which recognize increases and decreases in Accounts that occur during the Valuation Period, including, without limitation, a procedure that provides that each Account, or portion thereof, which is distributed during the applicable Valuation Period shall either not share in Earnings, shall be deemed to share in Earnings at an imputed rate of return or shall share in Earnings based on that period of time prior to the distribution of the Account or portion thereof, and also including a procedure which credits to such opening Account balances contributions that are made during the applicable Valuation Period. For example, the Earnings may be credited and allocated among Accounts by using a weighted average method. Such method may treat a weighted portion of the applicable contributions as if includable in the Participant’s Account as of the beginning of the Valuation Period. The weighted portion may, without limitation, be a fraction, the numerator of which may be the number of months in the applicable Valuation Period following the date of the applicable contributions, and the denominator of which may be the total number of months in the Valuation Period.

 

Section 4.5 Participant Direction of Investment

 

(a)The Employer shall invest the contributions under the Plan, and shall establish and prescribe such rules and limitations it deems appropriate.

 

(b)Subject to Section 4.5(a) above, each Participant shall designate the investment(s) in which the Participant’s Account(s) shall be deemed to be invested for purposes of determining the Account’s Earnings and value of the Participant’s Accrued Benefit. The Employer will accept direction from each Participant on a written election form or by other means that the Employer may require pursuant to conditions, limitations and other provisions established by the Employer. The Employer may establish procedures relating to Participant direction of investment under this Section 4.5, including the establishment of a list of investments or funds selected by the Employer from which the Participant may choose for the deemed investment of the amounts allocated to the Participant’s Account(s).

 

(c)The Plan will maintain a Segregated Investment Account(s) to the extent a Participant’s Account(s) is subject to Participant investment direction and the Participant provides investment directions hereunder. A Segregated Investment Account will be deemed to receive Earnings credited/debited to it in accordance with the investment directions and will bear all of its expenses. A Segregated Investment Account, including one invested in a pooled fund (in which more than one Account is invested), shall be subject to such accounting procedures and/or Sections 4.3 and 4.4 as the Employer deems appropriate.

 

6

 
 

 

 

(d)The Participant’s investment elections shall remain in effect until the Participant makes a new investment election. If an investment election is not made or if for any reason the election becomes ineffective, the Earnings shall be determined by the Employer in accordance with the Plan.

 

(e)The Participant’s right to direct the deemed investment of his or her Account(s) does not give the Participant any vested interest or secured or preferred position with respect to any particular assets or any portion of the Participant’s Account over which the Participant provides investment instructions.

 

Section 4.6 No Funding

 

(a)The Employer may, in its sole discretion, retain and manage assets set aside by the Employer for payment of all or a portion of the Benefits payable pursuant to the Plan. Any Benefits payable pursuant to the Plan shall be paid solely from the Employer’s general assets. No special or separate fund shall be established and no other segregation of assets shall be made to provide the payment of any Accrued Benefit hereunder.

 

(b)All amounts contributed under the Plan and all Earnings thereon, including any amounts held in a trust, shall be subject to the claims of general creditors of the Employer. The obligations of the Employer to pay Benefits under the Plan constitute an unfunded, unsecured promise to pay and Participants shall have no greater rights than as general creditors of the Employer.

 

(c)The right of a Participant or his or her Beneficiary to an Accrued Benefit hereunder shall be an unsecured claim against the general assets of the Employer, and neither the Participant nor his or her Beneficiary shall have any rights in or against any amount credited to his or her Account(s) or any other specific property or assets of the Employer. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between the Plan and the Employer or any other person. Nothing contained in the Plan shall constitute a guarantee by the Employer that the assets of the Employer will be sufficient to pay any benefit to any person.

 

ARTICLE 5

TIME AND METHOD OF PAYMENT

 

Section 5.1 Election of Payment

 

(a)No later than the Election Date, the Participant will submit a written election form setting forth the time and method of payment of the Participant’s Accrued Benefit. The Election Date is defined in Section 3.1(d) for Salary Deferral Contributions. The “Election Date” is determined under Code Section 409A with respect to each “plan” (i.e., each source of Benefits provided under the Plan) as disaggregated to the greatest extent allowed under Code Section 409A.

 

(b)Subject to the other provisions herein, a Participant’s election (or nonelection) is irrevocable as of the Election Date. Each Participant’s election or change in election must be in compliance with this Article 5 and in accordance with and as limited by the election form the Employer provides. The Election Date, payment events and/or methods of payment provided in the election form may be sooner or narrower and more limited than as set forth in this Article, as determined each Plan Year by the Employer.

 

Section 5.2 Payment Events. A Participant’s Accrued Benefit shall commence to be paid upon one or more of the following times or events (“Payment Event”) as set forth and limited by the Participant’s election form:

 

(a)upon the Participant’s Separation from Service,

7

 
 

 

(b)a time or a fixed schedule under the Plan,

(c)upon a Change in Control,

(d)upon the Participant’s Disability,

(e)upon the Participant’s death,

 

(f)upon the earliest to occur of the events specified in Subsection (a) through (e).

The Participant’s Accrued Benefit shall be paid or commence to be paid within ninety (90) days following the date set forth in the payment election form that follows or coincides with the Participant’s Payment Event. The Employer, and specifically not the Participant, will determine and designate the exact date and taxable year of payment. This Section 5.2 is subject to a subsequent election made under Section 5.6.

Section 5.3 Method of Payment. A Participant’s Accrued Benefit, or portion thereof, shall be paid under one of the following methods as set forth and limited by the Participant’s election form:

(a)by payment in a lump sum; or

(b)by payment in any other form or under any other method approved by the Employer and set forth in the payment election form the Employer provides that is consistent with Code Section 409A.

 

Regardless of the method of payment, any distribution (including one that is not a lump sum payment) will be accelerated and paid in accordance with the second and third sentences of Section 5.2 upon the earliest to occur of the events as set forth in Section 5.2 and the election form (i.e., Separation from Service, death, Disability or a Change in Control).

 

Section 5.4 Default Payment. If the Participant does not properly and timely elect a time and/or method of payment, the Participant’s Accrued Benefit shall be paid in a lump sum to the Participant within the ninety (90) day period following his or her Separation from Service. The Employer, and specifically not the Participant, will determine and designate the exact date and taxable year of payment.

Section 5.5 Intervening Disability or Death. Unless the Participant elects otherwise in accordance with this Article 5, in the event the Participant incurs a Disability or death prior to payment or the completion of payment hereunder, the Participant’s remaining Accrued Benefit shall be paid to the Participant or Beneficiary in a lump sum within the ninety (90) day period following the Participant’s Disability or death. The Employer, and specifically not the Participant or Beneficiary, will determine and designate the exact date and taxable year of payment.

 

Section 5.6 Change in Election. In accordance with the written election form the Employer provides to the Participant, a Participant may change the time payment commences and/or method of payment established under Article 5 so long as the following conditions are satisfied:

(a)in the case of an election related to a payment to be made at a specified time or pursuant to a fixed schedule, the Participant’s election to delay a payment must be made no later than twelve (12) months prior to the date of the first scheduled payment;

 

8

 
 

 

(b)the Participant’s election must not take effect until at least twelve (12) months after the date on which the election is made;

(c)in the case of an election related to a payment other than a payment made on account of Disability, or death the payment with respect to which the election is made must be deferred for a period of at least five (5) years from the date such payment would otherwise have been made;

(d)a Participant may not accelerate the time or schedule of any payment under the Plan, except as provided in Code Section 409A; and

 

(e)the Participant may not elect payment earlier than the Participant’s Separation from Service, Disability, death, a specified time or pursuant to a fixed schedule, or a Change in Control all in accordance with Code Section 409A.

 

This Section 5.6 does not allow a payment change in the event payment is accelerated in accordance with the last sentence of Section 5.3 and/or the election form.

 

Section 5.7 Permitted Payment Acceleration. To the extent permitted by Code Section 409A, the Employer may, in its sole discretion, commence distribution to a Participant, Beneficiary or other appropriate payee of the portion of a Participant’s Accrued Benefit authorized for distribution for one or more of the following reasons: (a) a de minimis cashout payment that results in the termination of the entirety of a Participant’s interest in the Plan (and any required aggregated plan), if the payment is not greater than the applicable dollar amount under Code Section 402(g)(1)(B) and if the Employer exercises its discretion hereunder evidenced in writing no later than the date of such payment; (b) payment of the amount required to be included in a Participant’s income as a result of any failure to comply with Code Section 409A; (c) payment to pay the Federal Insurance Contributions Act tax imposed under the Code as permitted under Code Section 409A; (d) payment to a party other than to the Participant pursuant to a domestic relations order; (e) termination of the Plan; and (f) any other circumstance permitted under Code Section 409A.

 

Section 5.8 Domestic Relations Orders. Nothing contained in this Plan prevents the Employer from complying with the provisions of a domestic relations order under the Plan which awards a Participant’s Accrued Benefit to an alternate payee; provided, however, compliance with the order and payment will only be made to the extent the Employer determines such compliance and payment is in accordance with applicable law. For purposes of this Section, an alternate payee is the spouse, former spouse, child or other dependent of a Participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the Benefits payable under the Plan with respect to such Participant.

9

 
 

 

Section 5.9 Overpayment. If for any reason, including, without limitation, mathematical or administrative error, the amounts paid to the Participant or Beneficiary exceed the Accrued Benefit to which the Participant or Beneficiary is entitled under the Plan, such excess shall constitute an indebtedness of such party to the Employer. Such indebtedness shall be payable to the Employer by the Participant, or Beneficiary as the case may be, upon demand by the Employer, or as determined by the Employer, such indebtedness shall be charged against amounts credited to such Participant’s Account(s).

 

Section 5.10 Facility of Payment. Whenever, in the Employer’s opinion, a Participant or Beneficiary entitled to receive a payment of Benefits hereunder is under disability or is incapacitated so as to not receive or acknowledge payment hereunder, the Employer may make payments to the party’s representative, relative or other person for the party’s benefit or otherwise apply the payment for the benefit of such Participant or Beneficiary in such manner that the Employer considers advisable. Any payment of Benefits in accordance with the provision of this document shall be a complete discharge of any liability for the making of such payment under the provisions of the Plan.

Section 5.11 Taxes. Amounts payable hereunder or the Participant’s Compensation shall be reduced by applicable federal, state, and local taxes or charges that the Employer is required to withhold or the Employer deems appropriate.

 

Section 5.12 Required Delay of Payment. If the Employer reasonably determines that any payment of Benefits due under the Plan or any other amount that may become due to Participant after Separation from Service, is subject to Code § 409A, and also determines that Participant is a “specified employee,” as defined in Code § 409A(a)(2)(B)(i), upon the Participant’s Separation from Service, no amount may be paid to or on behalf of Participant earlier than six months after the date of Separation from Service (or, if earlier, the Participant’s death) if such payment would violate the provisions of Code § 409A and the regulations issued thereunder, and payment shall be made, or commence to be made, as the case may be, on the date that is six months and one day after the Separation from Service (or, if earlier, one day after the Participant’s death). For this purpose, Participant will be considered a “specified employee” if Participant is employed by an employer  that has its stock publicly traded on an established securities market or certain related entities have their stock traded on an established securities market and the Executive is a “key employee”, with the exact meaning of “specified employee”, “key employee” and “publicly traded” defined in Code § 409A(a)(2)(B)(i) and the regulations thereunder. Notwithstanding the above, the Employer hereby retains discretion to make determinations regarding the identification of “specified employees” and to take any necessary corporate action in connection with such determination.

 

ARTICLE 6

PARTICIPANT PROVISIONS

 

Section 6.1 Beneficiary Designation. Each Participant shall designate, in writing, any person or persons, who, contingently or successively, are to succeed to the Participant’s Accrued Benefit under the Plan in the event of the Participant’s death. The Employer shall prescribe a sample form for the written designation of the Beneficiary and, upon the Participant’s filing the form with the Employer, it shall effectively revoke all designations filed prior to that date by the Participant.

 

10

 
 

 

Section 6.2 Community Property and Legal Effect. The Participant, and specifically not the Employer or any other party, shall be responsible for ensuring the legal validity and enforceability of the Participant’s Beneficiary designation. The Participant is strongly encouraged to seek his or her own legal counsel for this purpose. If the Participant’s Accrued Benefit is subject to the Spouse’s or a former Spouse’s community property interest, the Participant’s designation of the Beneficiary shall be valid and enforceable only to the extent such Accrued Benefit is not subject to such community property interest and/or the Spouse has waived his or her election in accordance with applicable state law.

 

Section 6.3 No Beneficiary Designation. If a Participant fails to name a Beneficiary in accordance with Section 6.1, if the Beneficiary named by a Participant predeceases him or her or dies before complete distribution is made to the Beneficiary under the Plan, or there is a disclaimer pursuant to law, then the Beneficiary shall be the Participant’s Spouse, but if the Spouse predeceases the Participant, then the Beneficiary shall be the Participant’s descendants per stirpes, and if none survive the Participant, then the Beneficiary shall be the Participant’s estate.

 

Section 6.4 Revocation Upon Divorce. Notwithstanding any provision of the Plan to the contrary, if a Participant designates his or her Spouse as a Beneficiary, a subsequent divorce decree that relates to such Spouse shall automatically revoke the Participant’s designation of the Spouse as a Beneficiary unless the decree or a domestic relations order provides otherwise or unless the Participant designates such former Spouse as his or her Beneficiary, in accordance with this Article 6, at any time after the date of such divorce decree.

 

Section 6.5 Personal Data to Employer. Each Participant and each Beneficiary of a deceased Participant must furnish to the Employer such evidence, data or information as the Employer considers necessary or desirable for the purpose of administering the Plan. The provisions of this Plan are effective for the benefit of each Participant upon the condition precedent that each Participant will furnish promptly full, true and complete evidence, data and information when requested by the Employer.

 

Section 6.6 Assignment or Alienation. Neither a Participant nor a Beneficiary shall anticipate, transfer, assign or alienate (either at law or in equity) any Accrued Benefit provided under this Plan, and the Employer shall not recognize any such anticipation, transfer, assignment or alienation. To the extent permitted by law, the right of any Participant or any Beneficiary to any benefit or to any payment under this Plan shall not be subject in any manner to attachment or other legal process for the debts of such Participant or Beneficiary.

 

ARTICLE 7

ADMINISTRATION

 

Section 7.1 Authority and Responsibility of the Plan Administrator. Unless otherwise specifically provided herein, the Plan Administrator (i.e., the Employer) shall have full and complete authority, responsibility, discretion and control over the management, administration and operation of the Plan and investments hereunder, including but not limited to the authority to: (a) formulate, adopt, issue, revise and apply procedures and rules in accordance with law; (b) construe and apply the provisions of the Plan; (c) make all determinations under the Plan, including those concerning eligibility for Benefits and eligibility to receive payment of Benefits; (d) adopt and prescribe the use of necessary forms; (e) prepare and file reports, notices, and any other documents relating to the Plan which may be required by the United States Secretary of Labor or Secretary of the Treasury or other government 

11

 
 

 

entity or authority; (f) prepare and distribute to Participants any communication materials required by law or as necessary or desirable for the administration of the Plan; (g) employ or retain agents and/or other professionals (including those who may be employed by or represent the Employer) to aid it in the administration of the Plan; (h) be the agent for service of legal process; (i) make available for inspection and provide upon request documents and instruments required to be disclosed by law;

(j)direct the payment of Benefits under the Plan and issue such other directions and instructions as are necessary for the proper administration of the Plan; and (k) analyze and report Plan activity. Any decisions or determinations the Plan Administrator may make under or with respect to the Plan shall be made in its sole discretion and shall be final and binding.

 

The Employer, in its sole discretion as Plan Administrator, may delegate some or all of the authority, responsibility, discretion and control over the management, administration and operation of the Plan and investments provided herein to such person, persons, committee, organization, or entity as the Employer deems desirable or appropriate for the administration of the Plan. The Employer has delegated the authority, responsibility, and control over the management, administration and operation of the Plan and investments hereunder for the purposes of day-to-day administration of the Plan to its wholly-owned subsidiary Victory Capital Management Inc.

 

Section 7.2 Claims For Benefits

Each person entitled to Benefits under this Plan (“Claimant”) may submit a claim for Benefits to the Plan Administrator in such form or format as is provided or approved by the Plan Administrator. A Claimant shall have no right to seek review of a denial of Benefits, or to bring any action in any court to enforce a claim for Benefits prior to his or her filing a claim and exhausting his or her rights under this Section. When a claim for Benefits has been filed properly, such claim shall be evaluated and the Claimant shall be notified by the Plan Administrator (or its agent) of its approval or denial within a reasonable period of time after the Plan Administrator’s receipt of such claim unless special circumstances require an extension of time for processing the claim.

 

Section 7.3 Expenses. The Employer will pay all expenses, taxes and fees incurred in connection with the Plan (including without limitation recordkeeping, administration, attorneys’ fees, and investment fees). Such expenditures shall be charged against the Plan and as applicable the Participant’s Account(s) pursuant to Section 4.3 or otherwise as determined by the Employer in accordance with the Plan.

 

ARTICLE 8

MISCELLANEOUS

 

Section 8.1 Amendment or Termination

 

(a)In General. The Plan may be amended in whole or in part from time to time by the Employer and may be terminated by the Employer, in its sole discretion, but subject to compliance with Code Section 409A. Upon Plan termination, the Participants shall be entitled to receive their Accrued Benefits only in accordance with the Plan as if it had not terminated or as the Plan otherwise is amended or administered in compliance with the Code and applicable law.

 

12

 
 

 

(b)Amendments and Administration. The Plan may be amended and administered by the Employer at any time and retroactively, if required, if warranted in the opinion of the Employer, to conform the Plan to the provisions and requirements of the Code and any applicable law. Any reduction, elimination or change of a Participant’s Benefits under this Section 8.1 shall not be deemed to prejudice nor impermissibly reduce in contravention of this Plan any interest of a Participant or a Beneficiary hereunder. Any payment election or provision in effect prior to any Plan amendment shall be conformed and interpreted as warranted to comply with the Code.

 

Section 8.2 No Liability. The Employer, and each of the respective affiliates, officers, directors and employees shall not be liable to any person for any action taken or omitted in connection with the Plan unless attributable to such person’s own fraud or willful misconduct.

 

Section 8.3 Employment Relations. The adoption and maintenance of the Plan shall not be deemed to constitute a contract of employment or for the engagement or retention of services as a Director or independent contractor between the Employer and its Directors or to be consideration for, or an inducement or condition of, the employment, or engagement or retention of services of any person. Nothing contained herein shall be deemed to: (a) give to any person the right to be retained in the employ or service of the Employer; (b) affect the right of the Employer to discipline or discharge any person at any time; (c) give the Employer the right to require any person to remain in its employ or service; or (d) affect any person’s right to terminate his or her employment or engagement or retention as an independent contractor at any time.

 

Section 8.4 Enforceability. This Plan shall be binding upon the assigns, successors, and the legal representatives of the Participant and of the Employer, subject to Section 8.1, unless the Employer determines otherwise in writing.

 

Section 8.5 Construction

 

(a)Words used in the masculine shall apply to the feminine where applicable, and wherever the context of the Plan dictates, the plural shall be read as the singular and the singular as the plural. Reference to the provisions of any particular section of the Code, other statute, regulation or release by governing authorities shall be deemed to be a reference to any section of the authority which may hereafter contain the same or similar provisions.

 

(b)This Plan shall be administered, construed and limited in the manner appropriate for the Plan to comply with the provisions of applicable laws and the provisions of the Code, including without limitation Code Section 409A. Code sections and regulations are incorporated by reference as is necessary for such administration, interpretation and limitation.

 

(c)If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof and the Plan shall be construed and enforced as if such provisions, to the extent invalid or unenforceable, had not been included herein.

 

(d)The headings of Articles, Sections and subsections hereunder are included solely for convenience of reference, and if there is any conflict between such headings and the text of this Plan, the text shall control.

 

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Section 8.6 Entire Agreement. Except as otherwise amended or incorporated herein, or supplemented with addenda, in writing by the Employer, this Plan document constitutes the entire agreement between the Employer, Participants and Beneficiaries and contains all of the agreements among such parties with respect to the subject matter hereof, and furthermore, to the extent conflicting, this Plan supersedes any and all other agreements, either oral or in writing, without limitation including in any employment agreement among the parties hereto, with respect to the subject matter hereof. Any such other agreement shall be null, void, and of no effect with respect to the subject matter of this Plan. This Section in no way limits or abrogates the Employer’s right to amend or terminate the Plan in any respect, including without limitation pursuant to Section 8.1.

 

Section 8.7 Governing Law. The Plan and all matters arising with respect thereto shall be governed by the Code (and/or other federal law), except as otherwise not applicable, in which case New York State law shall govern.

 

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IN   WITNESS  WHEREOF,  the   Employer   has   executed  this Plan  this 12th day of December, 2019.

 

		
	
VICTORY CAPITAL HOLDINGS, INC.

	
 
	
 

	
 
	
 

	
By:
	
/s/ DAVID C. BROWN

	
 
	
David Brown, CEO

 

15amk-ex43_165.htm

Exhibit 4.3

 

Description of Capital Stock

The description below of our capital stock and provisions of our amended and restated certificate of incorporation and amended and restated bylaws are summaries and are qualified by reference to the amended and restated certificate of incorporation and the amended and restated bylaws, which are incorporated by reference as exhibits to the Annual Report on Form 10-K of which this Exhibit 4.3 is a part, and by the applicable provisions of Delaware law. 

General 

Our authorized capital stock consists of 675,000,000 shares of common stock, par value $0.001 per share, and 75,000,000 shares of preferred stock, par value $0.001 per share. 

Common stock 

Common stock outstanding. As of December 31, 2019 there were 72,390,080 shares of our common stock outstanding, which were held of record by 66 stockholders. 

Voting rights. The holders of common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. 

Dividend rights. Subject to preferences that may be applicable to any outstanding preferred stock, the holders of common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the board of directors out of funds legally available therefor. 

Rights upon liquidation. In the event of our liquidation, dissolution or winding up, the holders of our common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. 

Other rights. The holders of our common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. 

Preferred stock 

Our board of directors has the authority to issue the preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series or the designation of such series, without further vote or action by the stockholders. 

The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of AssetMark without further action by the stockholders and may adversely affect the voting and other rights of the holders of common stock. At present, no shares of preferred stock are outstanding and we have no plans to issue any of the preferred stock. 

Registration rights 

The Registration Rights Agreement that came into effect in connection with our initial public offering grants to HIIHL, a holder of more than 5% of our outstanding capital stock and an affiliate of certain of our directors, certain registration rights with respect to its shares of our common stock (the “registrable securities”), subject to certain exceptions. All 50,873,799 shares of our common stock held by HIIHL as of December 31, 2019 are entitled to the registration rights described below. The registration of shares of our common stock pursuant to the exercise of such registration rights would enable HIIHL to sell these shares without restriction under the Securities Act when the 

applicable registration statement is declared effective. We will pay the registration expenses, other than underwriting discounts and commissions and internal administrative and similar costs of the selling stockholder, of HIIHL associated with the registrable securities registered pursuant to the demand and piggyback registration rights described below. 

Generally, in an underwritten offering, the managing underwriter, if any, has the right, subject to specified conditions, to limit the number of shares such holders may include. The demand and piggyback registration rights described below will expire on the first date on which neither HIIHL nor an HIIHL affiliate to which HIIHL has transferred or assigned all or a portion of its rights under the Registration Rights Agreement holds any registrable shares. 

Demand registration rights. Parties to the Registration Rights Agreement holding in the aggregate at least 25% of the registrable securities then outstanding may request that we file a registration statement to register the offer and sale of their registrable securities. We are not required to effect a demand registration unless the aggregate gross proceeds expected to be received from the sale of the registrable shares by the requesting holders equals or exceeds $60,000,000, and we are not required to support more than one demand registration in any rolling six-month period or more than four demand registrations in total (other than demand registrations to be effected pursuant to a registration statement on Form S-3, for which an unlimited total number of demand registrations are permitted). We have the right to defer a demand registration in certain circumstances once during any period of six consecutive months and for not more than 180 days in any 12-month period. 

Piggyback registration rights. If we propose to register the offer and sale of shares of our common stock or other equity securities under the Securities Act, other than with respect to a demand registration, a registration statement on Form S-4, Form S-8 or similar forms, and certain other exceptions, the holders of registrable securities are entitled to notice of the registration and have the right to include their registrable securities in such registration, subject to certain marketing and other limitations, including limitations that the underwriters may impose on the number of share included in the offering. 

The foregoing summary is qualified in its entirety by reference to the Registration Rights Agreement, the form of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.3 is a part. 

Anti-takeover provisions 

Some provisions of our amended and restated certificate of incorporation and amended and restated bylaws could make the following more difficult: 

	
•
	
acquisition of control of us by means of a proxy contest or otherwise, or 

	
•
	
removal of our incumbent officers and directors. 

These provisions, as well as our ability to issue preferred stock, are designed to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us, and that the benefits of this increased protection outweigh the disadvantages of discouraging those proposals, because negotiation of those proposals could result in an improvement of their terms. 

Election of directors; no cumulative voting. Our board of directors consists of seven directors, or such other number as determined from time to time by our board of directors. Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our amended and restated certificate of incorporation does not authorize cumulative voting. 

Removal of directors; vacancies. Our amended and restated certificate of incorporation provides that directors may be removed with or without cause so long as HTSC or any of its affiliates collectively own at least 50% of the voting power of the stock of our company entitled to vote generally in the election of directors, and that directors may only be removed for cause, and only by the affirmative vote of holders of at least a majority of all outstanding shares of stock of our company entitled to vote thereon, voting together as a single class, if HTSC or any of its affiliates collectively own less than 50% in voting power of the stock of our company entitled to vote generally in the election of directors. Any vacancy occurring on the board of directors and any newly created directorship may be filled only by a majority of the remaining directors in office. 

Staggered board. Our board of directors is divided into three classes serving staggered three-year terms. Class I, Class II and Class III directors will serve until our annual meetings of stockholders in 2020, 2021 and 2022 respectively. At each annual meeting of stockholders, directors will be elected to succeed the class of directors whose terms have expired. This classification of our board of directors could have the effect of increasing the length of time necessary to change the composition of a majority of the board of directors. In general, at least two annual meetings of stockholders will be necessary for stockholders to effect a change in a majority of the members of the board of directors. 

Limits on written consents. Our amended and restated certificate of incorporation provides that holders of our common stock will not be able to act by written consent without a meeting, at any time when HTSC or any of its affiliates collectively own less than 50% in voting power of the stock of our company entitled to vote generally in the election of directors. 

Special stockholder meetings. Our amended and restated certificate of incorporation and our amended and restated bylaws provide that special meetings of our stockholders may be called only by the chairman of our board of directors or a majority of the directors. Our amended and restated certificate of incorporation and our amended and restated bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting; provided, however, that so long as HTSC or any of its affiliates collectively own at least 50% of the voting power of the stock of our company entitled to vote generally in the election of directors, any action required or permitted to be taken at an annual or special meeting may be taken by written consent without a meeting, without prior notice and without a vote. 

Amendment of certificate of incorporation. The provisions of our amended and restated certificate of incorporation described above under the sections titled “—Election of directors; no cumulative voting,” “—Removal of directors; vacancies,” “—Staggered board,” “—Limits on written consents” and “—Special stockholder meetings,” and the voting thresholds described in this section, may be amended, altered, repealed or rescinded only by the affirmative vote of the holders of at least two-thirds in voting power of all outstanding shares of stock of our company entitled to vote thereon, voting together as a single class. The affirmative vote of holders of at least a majority of the voting power of our outstanding shares of stock will generally be required to amend other provisions of our certificate of incorporation. 

Amendment of bylaws. Any amendment, alteration, rescission or repeal of certain provisions of our amended and restated bylaws requires either (i) the affirmative vote of a majority of directors present at any regular or special meeting of the board of directors called for that purpose; or (ii) the affirmative vote of the holders of two-thirds of the voting power of our outstanding shares of voting stock, voting together as a single class. 

Delaware business combination statute. From and after the time at which HTSC and its affiliates own, in the aggregate, less than 15% of the voting power of all outstanding shares of the stock of our company entitled to vote generally in the election of directors, we will elect to be subject to Section 203 of the DGCL, which regulates corporate acquisitions. Section 203 prevents an “interested stockholder,” which is defined generally as a person owning 15% or more of a corporation’s voting stock, or any affiliate or associate of that person, from engaging in a 

broad range of “business combinations” with the corporation for three years after becoming an interested stockholder unless: 

	
•
	
the board of directors of the corporation had previously approved either the business combination or the transaction that resulted in the stockholder’s becoming an interested stockholder; 

	
•
	
upon completion of the transaction that resulted in the stockholder’s becoming an interested stockholder, that person owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, other than statutorily excluded shares; or 

	
•
	
following the transaction in which that person became an interested stockholder, the business combination is approved by the board of directors of the corporation and holders of at least two-thirds of the outstanding voting stock not owned by the interested stockholder. 

Under Section 203, the restrictions described above also do not apply to specific business combinations proposed by an interested stockholder following the announcement or notification of designated extraordinary transactions involving the corporation and a person who had not been an interested stockholder during the previous three years or who became an interested stockholder with the approval of a majority of the corporation’s directors, if such extraordinary transaction is approved or not opposed by a majority of the directors who were directors prior to any person becoming an interested stockholder during the previous three years or were recommended for election or elected to succeed such directors by a majority of such directors. 

Section 203 may make it more difficult for a person who would be an interested stockholder to effect various business combinations with a corporation for a three-year period. Section 203 also may have the effect of preventing changes in our management and could make it more difficult to accomplish transactions which our stockholders may otherwise deem to be in their best interests. 

Other limitations on stockholder actions. Our amended and restated bylaws also impose some procedural requirements on stockholders who wish to: 

	
•
	
make nominations in the election of directors; 

	
•
	
propose that a director be removed; 

	
•
	
propose any repeal or change in our bylaws; or 

	
•
	
propose any other business to be brought before an annual or special meeting of stockholders. 

Under these procedural requirements, to bring a proposal before a meeting of stockholders, a stockholder must deliver timely notice of a proposal pertaining to a proper subject for presentation at the meeting to our corporate secretary along with the following: 

	
•
	
a description of the business or nomination to be brought before the meeting and the reasons for conducting such business at the meeting; 

	
•
	
the stockholder’s name and address; 

	
•
	
any material interest of the stockholder in the proposal; 

	
•
	
the number of shares beneficially owned by the stockholder and evidence of such ownership; and 

	
•
	
the names and addresses of all persons with whom the stockholder is acting in concert and a description of all arrangements and understandings with those persons, and the number of shares such persons beneficially own. 

To be timely, a stockholder must generally deliver notice: 

	
•
	
in connection with an annual meeting of stockholders, not less than 90 nor more than 120 days prior to the date on which the annual meeting of stockholders was held in the immediately preceding year, but in the event that the date of the annual meeting is more than 30 days before or more than 70 days after the anniversary date of the preceding annual meeting of stockholders, a stockholder notice will be timely if received by us not earlier than the 120th day prior to the annual meeting and not later than the close of business on the later of (1) the 90th day 

		
prior to the annual meeting and (2) the 10th day following the day on which we first publicly announce the date of the annual meeting; or 

	
•
	
in connection with the election of a director at a special meeting of stockholders, not less than 90 nor more than 120 days prior to the date of the special meeting, but in no event later than the 10th day following the day on which we first publicly announce the date of the special meeting and the nominees proposed by our board to be elected. 

To submit a nomination for our board of directors, a stockholder must also submit any information with respect to the nominee that we would be required to include in a proxy statement, as well as some other information. If a stockholder fails to follow the required procedures, the stockholder’s proposal or nominee will be ineligible and will not be voted on by our stockholders. 

Limitation of liability of directors and officers 

Our amended and restated certificate of incorporation provides that no director will be personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director, except as required by applicable law, as in effect from time to time. Currently, Delaware law requires that liability be imposed for the following: 

	
•
	
any breach of the director’s duty of loyalty to our company or our stockholders; 

	
•
	
any act or omission not in good faith or which involved intentional misconduct or a knowing violation of law; 

	
•
	
unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the DGCL; and 

	
•
	
any transaction from which the director derived an improper personal benefit. 

Any amendment to, or repeal of, these provisions will not eliminate or reduce the effect of these provisions in respect of any act, omission or claim that occurred or arose prior to that amendment or repeal. If the DGCL is amended to provide for further limitations on the personal liability of directors of corporations, then the personal liability of our directors will be further limited to the greatest extent permitted by the DGCL. 

As a result, neither we nor our stockholders have the right, through stockholders’ derivative suits on our behalf, to recover monetary damages against a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior, except in the situations described above. 

Such limitation of liability does not apply to liabilities arising under federal securities laws and does not affect the availability of equitable remedies such as injunctive relief or rescission. 

Indemnification and insurance 

Our amended and restated bylaws provide that, to the fullest extent permitted by law, we will indemnify any officer or director of our company against all damages, claims and liabilities arising out of the fact that the person is or was our director or officer, or served any other enterprise at our request as a director, officer, employee, agent or fiduciary. Amending this provision will not reduce our indemnification obligations relating to actions taken before an amendment. 

Further, our amended and restated certificate of incorporation provides that we will indemnify, to the fullest extent permitted by law, any person who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was one of our directors or officers or is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise. Our amended and restated certificate of incorporation also provides that we must advance expenses incurred by or on behalf of a director or officer, and that we may advance expenses incurred by or on behalf of an employee, trustee or agent, in advance of the final disposition of any civil or criminal action, suit or proceeding. In addition, we have entered into an indemnification agreement with each of our directors and executive officers. With certain exceptions, these agreements provide for indemnification for related expenses including attorneys’ fees, judgments, fines and 

settlement amounts incurred by any of these individuals in any action or proceeding. We believe that these provisions in our amended and restated certificate of incorporation and our amended and restated bylaws and indemnification agreements are necessary to attract and retain qualified persons as directors and officers. 

We also maintain standard policies of insurance under which coverage is provided to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act, and to us with respect to payments which may be made by us to such directors and officers pursuant to the above indemnification provision or otherwise as a matter of law. 

The indemnification provisions in our amended and restated certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and other stockholders. Further, a stockholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers as required by these indemnification provisions. 

Insofar as indemnification for liabilities arising under the Securities Act may be permitted for directors, executive officers or persons controlling us, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. 

Forum selection 

The Court of Chancery of the State of Delaware is, to the fullest extent permitted by applicable law, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of fiduciary duty owed by any of our directors, officers, employees, agents or trustees to us or our stockholders, (iii) any action asserting a claim against us or any director or officer or other employee of ours arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation or our amended and restated bylaws or (iv) any action asserting a claim against us or any director or officer or other employee of ours that is governed by the internal affairs doctrine, in each case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. This exclusive forum provision would not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the U.S. federal courts have exclusive jurisdiction. 

Our amended and restated certificate of incorporation further provides that, to the fullest extent permitted by applicable law, the federal district courts of the United States are the exclusive forum for resolving any complaint asserting a cause of action arising under the federal securities laws of the United States, subject to and contingent upon a final adjudication in the State of Delaware regarding the enforceability of such exclusive forum provision. The Court of Chancery of the State of Delaware recently determined that a provision stating that U.S. federal district courts are the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act is not enforceable. However, this decision may be reviewed and ultimately overturned by the Delaware Supreme Court. 

Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock is deemed to have notice of and consented to the foregoing forum selection provisions. These exclusive-forum provisions may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, employees or agents, which may discourage such lawsuits against us and such persons. 

Listing 

Our common stock is listed on the NYSE under the symbol “AMK.” 

Transfer agent and registrar 

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A. The transfer agent and registrar’s address is 250 Royall Street, Canton, Massachusetts 02021-1011.

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