Document:

Exhibit 10.1

 

First Amendment to the

 

Amended and Restated

 

Limited Partnership Agreement

 

of

 

PennyMac Operating Partnership, L.P.

 

This First Amendment (this “Amendment”) is made as of March 9, 2017 by and among PennyMac GP OP, Inc., a Delaware corporation, as the general partner (the “General Partner”) of PennyMac Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”), and as attorney-in-fact for the Persons named on Exhibit A to the Amended and Restated Limited Partnership Agreement of PennyMac Operating Partnership, L.P., dated as of August 4, 2009, as amended (the “Partnership Agreement”), for the purpose of amending the Partnership Agreement.  Capitalized terms used herein and not defined shall have the meanings given to them in the Partnership Agreement.

 

WHEREAS, the Board of Trustees (the “Board”) of PennyMac Mortgage Investment Trust, a Maryland real estate investment trust (the “Company”), by resolutions duly adopted on September 10, 2015, and the Pricing Committee of the Board, by resolutions duly adopted on March 2, 2017, classified and designated 5,290,000 Preferred Shares (as defined in the Declaration of Trust of the Company (the “Declaration of Trust”)) as REIT Series A Preferred Shares (as defined below);

 

WHEREAS, the Company filed Articles Supplementary to the Declaration of Trust (the “Series A Articles Supplementary”) with the State Department of Assessments and Taxation of Maryland on March 6, 2017, establishing the REIT Series A Preferred Shares, with such preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and conditions of redemption as described in the Series A Articles Supplementary;

 

WHEREAS, on March 9, 2017, the Company issued 4,600,000 REIT Series A Preferred Shares and may issue up to an additional 690,000 REIT Series A Preferred Shares pursuant to a 30-day option granted by the Company to the Underwriters (as defined below) pursuant to that certain Purchase Agreement, dated March 2, 2017, by and among the Company, the Partnership and PNMAC Capital Management, LLC, on the one hand, and Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc. and RBC Capital Markets, LLC (the “Underwriters”), on the other hand; and

 

WHEREAS, the General Partner has determined that, in connection with the issuance of the REIT Series A Preferred Shares, it is necessary and desirable to amend the Partnership Agreement to create additional Partnership Units having designations, preferences and other rights which are substantially the same as the economic rights of the REIT Series A Preferred Shares.

 

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the General Partner hereby amends the Partnership Agreement as follows:

 

1. Article 1 of the Partnership Agreement is hereby amended by adding the following definitions:

 

“REIT Series A Preferred Shares” means the 8.125% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Shares of Beneficial Interest, $0.01 par value per share (liquidation preference Twenty-Five Dollars ($25.00) per share) of the Company, with such preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and conditions of redemption as described in the Series A Articles Supplementary; and

 

“Series A Articles Supplementary” means the Articles Supplementary of the Company in connection with its REIT Series A Preferred Shares, as filed with the State Department of Assessments and Taxation of Maryland on March 6, 2017.

 

“Series A Preferred Units” means the series of Partnership Units representing units of Limited Partnership Interest designated as the 8.125% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Units (liquidation preference Twenty-Five Dollars ($25.00) per share), with such preferences, conversion and other rights, voting powers, restrictions, limitations as to distributions, qualifications, and terms and conditions of redemption as described herein.

 

2. In accordance with Section 4.2.A of the Partnership Agreement, set forth below are the terms and conditions of the Series A Preferred Units hereby established and issued to the Company in consideration of the Company’s contribution to the Partnership of the net proceeds from the issuance and sale of the REIT Series A Preferred Shares by the Company:

 

A. Designation and Number.  A series of Partnership Units, designated as Series A Preferred Units, is hereby established.  The number of authorized Series A Preferred Units shall be 5,290,000.

 

B. Ranking.  The Series A Preferred Units shall rank, with respect to rights to the payment of distributions and the distribution of assets in the event of any liquidation, dissolution or winding up of the Partnership, (a) senior to the Common Units and to all other Partnership Interests other than the Partnership Interests referred to in clauses (b) and (c) of this Section 2.B.; (b) on a parity with all Partnership Interests with terms specifically providing that those Partnership Interests rank on a parity with the Series A Preferred Units with respect to rights to the payment of distributions and the distribution of assets upon any liquidation, dissolution or winding up of the Partnership; and (c) junior to all Partnership Interests with terms specifically providing that those Partnership Interests rank senior to the Series A Preferred Units with respect to rights to the payment of distributions and the distribution of assets upon any liquidation, dissolution or winding up of the Partnership.

 

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C. Distributions.

 

(i) Pursuant to Section 5.1 of the Partnership Agreement, holders of the Series A Preferred Units are entitled to receive, when, as and if authorized by the General Partner, out of Available Cash, cumulative cash distributions (i) from, and including, the date on which Series A Preferred Units are first issued (the “Original Issuance Date”) to, but not including, March 15, 2024 (the “Fixed Rate Period”), at a fixed rate equal to 8.125% per annum based on the Twenty-Five Dollars ($25.00) per unit liquidation preference per annum, or  $2.03125 per unit; and (ii) from, and including, March 15, 2024 and thereafter (the “Floating Rate Period”), at a floating rate equal to Three-Month LIBOR (as defined below) as calculated on each applicable Distribution Determination Date (as defined below) plus a spread of 5.831% per annum based on the Twenty-Five Dollars ($25.00) per unit liquidation preference.  Distributions on the Series A Preferred Units shall accumulate daily and shall be cumulative from, and including, the Original Issuance Date or, if later, the most recent Series A Preferred Unit Distribution Payment Date (as defined below) to which cumulative distributions have been paid in full (or declared and a sum sufficient for the payment thereof has been set apart for payment), and shall be payable quarterly in arrears on the 15th day of each March, June, September and December (each, a “Series A Preferred Unit Distribution Payment Date”) with respect to the immediately preceding Distribution Period; provided, that if any Series A Preferred Unit Distribution Payment Date is not a Business Day, then the distribution which would otherwise have been payable on that Series A Preferred Unit Distribution Payment Date may be paid on the next succeeding Business Day with the same force and effect as if paid on such Series A Preferred Unit Distribution Payment Date and no interest, additional distributions or other sums will accumulate on the amount so payable for the period from and after such Series A Preferred Unit Distribution Payment Date to such next succeeding Business Day. The first distribution on the Series A Preferred Units is scheduled to be paid on June 15, 2017 in the amount of $0.54167 per unit and will represent accrual for more than the full quarterly period, covering the period from, and including, the Original Issuance Date to, but not including, June 15, 2017. That distribution will be paid to the Persons who are the holders of record of the Series A Preferred Units at the close of business on the corresponding Series A Preferred Unit Distribution Record Date (as defined below), which will be June 1, 2017. Distributions payable on the Series A Preferred Units during the Fixed Rate Period, including distributions payable for the first Distribution Period and any partial Distribution Period, will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Distributions payable on the Series A Preferred Units during the Floating Rate Period, including distributions payable for any partial Distribution Period, will be computed based on the actual number of days and a 360-day year.  Distributions will be payable to holders of record as they appear in the records of the Partnership for the Series A Preferred Units at the close of business on the applicable Partnership Record Date, which shall be the 1st day of the calendar month, whether or not a Business Day, in which the applicable Series A Preferred Unit Distribution Payment Date occurs (each, a “Series A Preferred Unit Distribution Record Date”).  The distributions payable on any Series A Preferred Unit Distribution Payment Date shall include distributions accumulated to, but not including, such Series A Preferred Unit Distribution Payment Date.

 

(ii) No distribution on the Series A Preferred Units shall be authorized by the General Partner or paid or set apart for payment by the Partnership at any time when the terms

 

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and provisions of any agreement of the Partnership, including any agreement relating to any indebtedness of the Partnership, prohibit the authorization, payment or setting apart for payment thereof or provide that the authorization, payment or setting apart for payment thereof would constitute a breach of the agreement or a default under the agreement, or if the authorization, payment or setting apart for payment shall be restricted or prohibited by law.

 

(iii) Notwithstanding anything to the contrary contained herein, distributions on the Series A Preferred Units shall accumulate whether or not the Partnership has earnings, whether or not there is sufficient Available Cash for the payment of those distributions and whether or not those distributions are authorized.  No interest, or sum in lieu of interest, will be payable in respect of any distribution payment or payments on the Series A Preferred Units which may be in arrears, and holders of the Series A Preferred Units will not be entitled to any distributions in excess of full cumulative distributions described in Section 2.C.(i) hereof.  Any distribution payment made on the Series A Preferred Units shall first be credited against the earliest accumulated but unpaid distribution due with respect to the Series A Preferred Units.

 

(iv) Except as provided in Section 2.C.(v) hereof, unless full cumulative distributions on all Series A Preferred Units have been or contemporaneously are paid or authorized and a sum sufficient for the payment thereof is set apart for payment for all past Distribution Periods, (i) no distributions (other than distributions paid in Common Units or in any class or series of Partnership Interests ranking junior to the Series A Preferred Units as to distributions and upon liquidation) shall be paid or authorized and set apart for payment upon Common Units or any other class or series of Partnership Interests ranking junior to or on a parity with the Series A Preferred Units as to distributions or upon liquidation, (ii) no other distribution (other than a repurchase that is considered a distribution as to which clause (iii) would apply) shall be paid or authorized and set apart for payment upon Common Units or any other class or series of Partnership Interests ranking junior to or on a parity with the Series A Preferred Units as to distributions or upon liquidation and (iii) no Common Units or any other class or series of Partnership Interests ranking junior to or on a parity with the Series A Preferred Units as to distributions or upon liquidation shall be redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such Partnership Interests) by the Partnership (except, in the case of clause (iii), by conversion into or exchange for Common Units or any other class or series of Partnership Interests ranking junior to the Series A Preferred Units as to distributions and upon liquidation); provided, however, that neither the foregoing nor the restriction described in Section 2.C.(v) hereof shall prevent the purchase or acquisition by the Partnership of any class or series of Partnership Interests corresponding to any REIT Series A Preferred Shares or any other class or series of shares of beneficial interest of the Company to be purchased or acquired by the Company in accordance with the proviso set forth in Section 4(d) of the Series A Articles Supplementary.

 

(v) When distributions are not so paid in full (or authorized and a sum sufficient for such full payment is not so set apart) upon the Series A Preferred Units and any other class or series of Partnership Interests ranking on a parity as to distributions with the Series A Preferred Units, all distributions authorized upon the Series A Preferred Units and such other class or series of Partnership Interests shall be authorized pro rata so that the amount of distributions

 

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authorized per Series A Preferred Unit and per unit on such other class or series of Partnership Interests shall in all cases bear to each other the same ratio that accumulated distributions per Series A Preferred Unit and per unit on such other class or series of Partnership Interests (which shall not include any accrual in respect of unpaid distributions for prior Distribution Periods if such Partnership Interests do not have cumulative distributions) bear to each other.  No interest, or sum of money in lieu of interest, shall be payable in respect of any distribution payment or payments on the Series A Preferred Units which may be in arrears.

 

(vi) The term “Three-Month LIBOR” shall be calculated for each Distribution Period during the Floating Rate Period and shall mean, on any Distribution Determination Date: (i) the rate (expressed as a percentage per year) for deposits in U.S. dollars having an index maturity of three months, in amounts of at least $1,000,000, as such rate appears on “Reuters Page LIBOR01” at approximately 11:00 a.m. (London time) on the relevant Distribution Determination Date; or if no such rate appears on “Reuters Page LIBOR01” or if the “Reuters Page LIBOR01” is not available at approximately 11:00 a.m. (London time) on the relevant Distribution Determination Date, then the General Partner will select four nationally-recognized banks in the London interbank market and request that the principal London offices of those four selected banks provide the General Partner with their offered quotation for deposits in U.S. dollars for a period of three months, commencing on the first day of the applicable Distribution Period, to prime banks in the London interbank market at approximately 11:00 a.m. (London time) on the Distribution Determination Date for the applicable Distribution Period. Offered quotations must be based on a principal amount equal to an amount that, in the General Partner’s discretion, is representative of a single transaction in U.S. dollars in the London interbank market at that time. If at least two quotations are provided, the Three-Month LIBOR for such Distribution Period will be the arithmetic mean (rounded upward, if necessary, to the nearest 0.00001 of 1%) of those quotations. If fewer than two quotations are provided, the Three-Month LIBOR for such Distribution Period will be the arithmetic mean (rounded upward, if necessary, to the nearest 0.00001 of 1%) of the rates quoted at approximately 11:00 a.m. (New York City time) on the Distribution Determination Date for such Distribution Period by three nationally-recognized banks in New York, New York selected by the General Partner, for loans in U.S. dollars to nationally-recognized European banks (as selected by the General Partner), for a period of three months commencing on the first day of such Distribution Period. The rates quoted must be based on an amount that, in the General Partner’s discretion, is representative of a single transaction in U.S. dollars in that market at that time. If fewer than three New York, New York banks selected by the General Partner quote rates in the manner described above, the Three-Month LIBOR for the applicable Distribution Period will be the same as for the immediately preceding Distribution Period, or, if there was no such Distribution Period, the distribution shall be calculated at the distribution rate in effect for the immediately preceding Distribution Period.

 

(vii)  The term “Distribution Determination Date” shall mean the London Business Day (as defined below) immediately preceding the first day of the applicable Distribution Period.

 

(viii)  The term “Distribution Period” shall mean the period from, and including, a Distribution Payment Date to, but not including, the next succeeding Distribution Payment Date,

 

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except for the initial Distribution Period, which shall be the period from, and including, the Original Issuance Date to, but not including, June 15, 2017.

 

(ix) The term “London Business Day” shall mean any day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

 

(x) The term “Reuters Page LIBOR01” shall mean the display so designated on the Reuters 3000 Xtra (or such other page as may replace the LIBOR01 page on that service, or such other service as may be nominated by the ICE Benchmark Administration Limited (“ICE”), or its successor, or such other entity assuming the responsibility of ICE or its successor in the event ICE or its successor no longer does so, as the successor service, for the purpose of displaying London interbank offered rates for U.S. dollar deposits).

 

D. Allocations.

 

Allocations of the Partnership’s items of income, gain, loss and deduction shall be allocated among holders of Series A Preferred Units in accordance with Article 6 of the Partnership Agreement.

 

E. Liquidation Preference.

 

(i) In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Partnership, the holders of the Series A Preferred Units will be entitled to be paid out of the assets the Partnership has legally available for distribution to the Partners pursuant to Section 13.2.A of the Partnership Agreement, subject to the preferential rights of the holders of Partnership Interests of any class or series ranking senior to the Series A Preferred Units with respect to the distribution of assets upon liquidation, dissolution or winding up, a liquidation preference of Twenty-Five Dollars ($25.00) per Series A Preferred Unit, plus an amount equal to any accumulated and unpaid distributions (whether or not earned or authorized) to, but not including, the date of payment, before any distribution of assets upon liquidation, dissolution or winding up is made to holders of Common Units or any other class or series of Partnership Interests ranking junior to the Series A Preferred Units as to liquidation rights.

 

(ii) In the event that, upon any such voluntary or involuntary liquidation, dissolution or winding up, the available assets of the Partnership are insufficient to pay the amount of the liquidating distributions on all outstanding Series A Preferred Units and the corresponding amounts payable on Partnership Interests of all other classes or series ranking on a parity with the Series A Preferred Units in the distribution of assets, then the holders of the Series A Preferred Units and all other such classes or series of Partnership Interests shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled.

 

(iii) Holders of Series A Preferred Units shall be entitled to written notice of any such payment upon the voluntary or involuntary liquidation, dissolution or winding up of the Partnership no fewer than 30 days and no more than 60 days prior to the payment date. After payment of the full amount of the liquidating distributions to which they are entitled, the holders

 

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of Series A Preferred Units shall have no right or claim to any of the remaining assets of the Partnership.

 

(iv) The consolidation or merger of the Partnership with or into any other limited partnership, corporation or entity or of any other entity with or into the Partnership, or the sale, lease, transfer or conveyance of all or substantially all of the property or business of the Partnership, shall not be deemed to constitute a liquidation, dissolution or winding up of the Partnership.

 

F. Redemption.

 

In connection with redemption by the Company of any of its REIT Series A Preferred Shares in accordance with the provisions of the Series A Articles Supplementary, the Partnership shall provide cash to the Company for such purpose which shall be equal to the REIT Series A Preferred Share redemption price (as set forth in the Series A Articles Supplementary), plus any accumulated and unpaid distributions on the REIT Series A Preferred Shares to, but not including, the REIT Series A Preferred Share redemption date (as set forth in the Series A Articles Supplementary) (or, as applicable, any accumulated and unpaid distributions payable pursuant to Section 6(j) of the Series A Articles Supplementary), and one Series A Preferred Unit shall be concurrently redeemed with respect to each REIT Series A Preferred Share so redeemed by the Company.  From and after the REIT Series A Preferred Share redemption date, the Series A Preferred Units so redeemed shall no longer be outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series A Preferred Units shall cease.

 

G. Conversion.  The Series A Preferred Units are not convertible into or exchangeable for any other property or securities of the Partnership, except as provided in this Section 2.G.

 

(i) In the event of a conversion of any REIT Series A Preferred Shares into REIT Shares in accordance with the Series A Articles Supplementary, upon conversion of such REIT Series A Preferred Shares, the Partnership shall convert an equal whole number of the Series A Preferred Units into a number of Common Units equal to the number of REIT Shares into which such REIT Series A Preferred were converted.  In the event of the conversion of any REIT Series A Preferred Shares into Alternative Conversion Consideration (as defined in the Series A Articles Supplementary) in accordance with the Series A Articles Supplementary, the Partnership shall retire a number of Series A Preferred Units equal to the number of REIT Series A Preferred Shares converted into such Alternative Conversion Consideration.  In the event of a conversion of the REIT Series A Preferred Shares into REIT Shares, to the extent the Company is required to pay cash in lieu of fractional REIT Shares pursuant to the Series A Articles Supplementary in connection with such conversion, the Partnership shall distribute an equal amount of cash to the Company.

 

(ii) Following any such conversion and/or retirement by the Partnership pursuant to this Section G., the General Partner shall make such revisions to the Partnership Agreement as it determines are necessary to reflect such conversion.

 

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H. Voting Rights.  Except as required by applicable law, holders of Series A Preferred Units shall not have any voting or consent rights in respect of their Partnership Interests represented by the Series A Preferred Units.

 

I. Transfer Restrictions.  The Series A Preferred Units shall not be transferable except in accordance with Section 11.2 of the Partnership Agreement.

 

3. Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms and conditions the General Partner hereby ratifies and confirms.

 

4. This Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflict of laws.

 

5. If any provision of this Amendment is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first written above.

 

 

	
 
    	
PENNYMAC   GP OP, INC., a Delaware corporation, as General Partner of PennyMac   Operating Partnership, L.P. and on behalf of existing Limited Partners
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jeffrey P. Grogin
    
	
 
    	
 
    	
Name:     Jeffrey   P. Grogin 
    
	
 
    	
 
    	
Title:       Chief   Administrative and Legal Officer and SecretaryExhibit

Exhibit 10.22

GERMAN AMERICAN BANCORP, INC.
 
Restricted Stock Award Agreement (2016/2017 Additional Retainer)
for ____________________ (“Director”)
December 19, 2016
 
German American Bancorp, Inc. (the "Company") is pleased to grant to you an award pursuant to the resolution of the Company’s Board of Directors adopted as of the date of this document consisting of certain shares of Common Stock of the Company  (the "Common Stock") subject to certain restrictions under the Company's 2009 Long Term Equity Incentive Plan (the "Plan") and this Agreement ("Agreement").  This Agreement and the shares granted hereby are subject to the terms and conditions of the Plan, the terms of which are incorporated herein.  Any capitalized term that is not defined in this Agreement has the meaning described by the Plan.  Please see the Plan document for more information regarding your rights and obligations under this Agreement.

Please execute this Agreement by signing both copies.  Return one copy within sixty (60) days of its date to Terri Eckerle, Shareholder Relations, German American Bancorp, Inc., 711 Main Street, Box 810, Jasper, Indiana 47546.  Retain one copy of the Agreement for yourself along with the enclosed Plan.

1.    Grant of the Award.  The Company hereby grants you, as of the date specified above (the "Grant Date") an Award consisting of Two Hundred Eighty One (281) shares of Common Stock, with an aggregate value as of the Grant Date of approximately Fifteen Thousand Dollars    ($15,000).  We sometimes refer in this Agreement to the shares of Common Stock that are part of the Award (including any other securities distributed in respect of the shares of Common Stock, or in substitution for those shares, by reason of an adjustment provided for in Section 8) as the "Restricted Stock."  This Award is granted to you subject to the terms and conditions specified in this Agreement and the Plan.

2.    Vesting of the Award.  Subject to earlier forfeiture and cancellation pursuant to the Plan and this Agreement and possible acceleration as provided by Article VIII of the Plan, your rights to retain the Award (including the Restricted Stock) will vest as of 12:01 A.M. Jasper time on the morning of December 5, 2017 ("Vesting Date").  The period prior to the Vesting Date is referred to in this Agreement as the Restricted Period.  The Board of Directors, by the vote (or written consent in lieu thereof) of not fewer than a majority of the members of the Board of Directors then in office (other than you) who are independent directors for purposes of NASDAQ independence rules and who are “non-employee directors” as defined for purposes of the rules of the Securities and Exchange Commission under Section 16 of the Securities Exchange Act of 1934, as amended (the “Section 16 Non-Employee Directors”), shall have the authority, in its sole judgment (which shall be conclusive and binding), to determine whether the conditions to vesting specified by this Agreement and the Plan have been satisfied as of the Vesting Date or any other date.  The Board of Directors 

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by action of the Section 16 Non-Employee Directors may also waive the provisions of Section 5 or otherwise shorten the Restricted Period as to any or all of the Award, and in connection with such actions may cause the Award to vest at an earlier date, whenever the Board of Directors by the above-described vote may determine that such action is appropriate by reason of changes in applicable tax or other laws or accounting principles or interpretations, or by reason of other changes in circumstances occurring after the Grant Date.

3.    Your Rights in Award before Vesting.  Except as otherwise provided in this Agreement, you shall have all the rights of a holder of Common Stock in respect of each of your shares of Restricted Stock that are included in the Award during the Restricted Period, including, but not limited to, the right to receive all cash dividends paid on the Restricted Stock that are declared with a record date on or after the Grant Date and the right to vote the Restricted Stock on all matters to come for a vote by the holders of the Common Stock with a record date on or after the Grant Date.

4.    Non-Certificated Nature of Restricted Stock during the Restricted Period.  The Company has directed its registrar and transfer agent (the "Transfer Agent") to issue the shares of Restricted Stock in your name as of the Grant Date, and to evidence the issuance of such shares of Restricted Stock to you by crediting the number of such shares of Restricted Stock to an account that has been established in your name on the Transfer Agent's books (your "Restricted Stock Account").   During the Restricted Period, the Company shall have no obligation to cause a certificate evidencing any of the shares of Restricted Stock to be prepared or delivered.  Any cash dividends payable in respect of the Restricted Stock during the Restricted Period pursuant to Section 3 shall be paid to you in cash, unless you otherwise direct, in which event such dividends will be paid to such account as you direct.
  
5.    Forfeiture and Cancellation of the Award; Conversion of Award in Certain Cases

		
	(a)
	Continuing Board Service and Meeting Attendance Conditions.  If you should (x) not continue in service to the Company and its subsidiaries or affiliates as a director through December 5, 2017, for any reason other than your death or disability, or (y) for any reason other than disability, fail to attend in person at least seventy-five percent (75%) of the aggregate number of meetings of the Company’s Board of Directors and the other corporate or subsidiary or affiliate boards and committees on which you may be (from time to time) a member during the period commencing on January 1, 2017  through December 5, 2017, or (z) fail to attend (other than by reason of disability or illness or bona fide emergency as determined in the sole discretion of the Company’s lead independent director) the Company's annual meeting of shareholders held in 2017 (each, a “Disqualifying Circumstance”), your Award (including your Restricted Stock and all associated property and rights) shall be subject to a 50% forfeiture effective as of the date of the last fact that establishes the existence of the Disqualifying Circumstance (the “Disqualification Date”) (regardless of whether the date on which the Board of Directors makes the determination to that effect after the Disqualification Date). In the event of any forfeiture or cancellation of your Restricted Stock pursuant to this Section 5, your shares of Restricted Stock shall be deemed to have been reacquired by the Company 

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and cancelled effective as of the Disqualification Date, and you therefore shall not have the right to receive any cash dividends or other distributions with respect to the Restricted Stock that are declared with a record date after the Disqualification Date.  The existence or non-existence of a Disqualifying Circumstance (and the date of the associated Disqualification Date) shall, in the event of any uncertainty or dispute, be determined for all purposes under the Plan and this Agreement by the Board of Directors (by vote or consent as provided by Section 2), whose judgment on such matters shall be conclusive and binding.
		
	(b)
	Immediate Vesting Caused by an Extraordinary Event.  If an Extraordinary Event  (as defined by Section 6.06(d) of the Plan) occurs during the Restricted Period, and prior to the date of any forfeiture and cancellation of your Award, then the Vesting Date of your Award shall be deemed to have been accelerated to the date of the Extraordinary Event, and your Award (including the Restricted Stock and the LTI Cash Right) shall be deemed fully non-restricted and non-forfeitable as of such date.

6.    Non-Transferability.  Prior to expiration of the Restricted Period, you may not sell, assign, transfer, pledge or otherwise encumber any of your rights under the Award, including the Restricted Stock.

7.    Disclaimer of Contract.  Nothing contained in this Agreement shall be construed as an obligation of the Company or any of its Subsidiaries or any other person to retain you as a member of the Board of Directors, or in any other capacity.
  
8.    Adjustments for Changes in Capitalization of the Company. In the event of any change in the outstanding shares of Common Stock during the Restricted Period by reason of any reorganization, recapitalization, stock split, stock dividend, combination or exchange of shares, merger, consolidation, or any change in the corporate structure of the Company or in the shares of Common Stock, the number and class of the shares of your Restricted Stock covered by your Award shall be appropriately adjusted by the Board of Directors, whose determination shall be conclusive. Any shares of Common Stock or other securities distributed during the Restricted Period in respect of your Restricted Stock as a result of any of the foregoing to which you may be determined to be entitled shall be held without interest by the Transfer Agent for your account until the expiration of the Restricted Period, and shall be subject to the forfeiture and other provisions of this Agreement to the same extent and in the same manner as the previously issued shares of Restricted Stock in respect of which they were distributed.

9.    Securities Laws.  The Company's obligation to issue to you, or to deliver to you any stock certificates evidencing, shares of Common Stock hereunder shall, if the Board of Directors so requests, be conditioned upon the Company's receipt of a representation by you as to your investment intention, in such form as the Board of Directors shall determine to be necessary or advisable to comply with the provisions of the Securities Act of 1933, as amended, or any other federal, state or local securities legislation.  The Company shall not be required to deliver any certificates for shares under this Agreement or to issue any shares hereunder prior to (i) the admission of such shares to listing on any stock exchange on which the shares of Common Stock may then be listed, 

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and (ii) the completion of such registration or other qualification of such shares under any state or federal law, rule or regulation, as the Board of Directors shall determine to be necessary or advisable.

10.    Tax and Other Withholding Obligations.  The Company’s obligation to pay or deliver to you the Restricted Stock that constitutes the Award shall be subject to the Company’s compliance with applicable tax withholding and other required withholding or deductions, if any, with respect to the compensation realized by you as a result of having received the Award (including the non-cash compensation income that you may be deemed to realize for income tax purposes upon the lapsing of the restrictions upon the Award) including any deductions that may be required under the Company's employee benefit plans (collectively, the “Withholding”).  The Company may satisfy any such Withholding or other obligation by withholding from the Restricted Stock otherwise deliverable to you such number of shares as would have at such time a fair market value equal to the amount of such obligation.

11.    Agreement.  By signing this Agreement below, you acknowledge that you have received a copy of the Plan, and that you are familiar with the terms and provisions of the Plan and the Agreement, and that you accept their terms.  You also acknowledge your agreement (on behalf of yourself and your estate, including your personal representatives, guardians, executors and heirs) to accept as binding, conclusive, and final all decisions and interpretations of the Company’s Board of Directors (by the vote or consent of such members thereof as is determined in accordance with Section 2 of this Agreement) upon any question arising under the Plan or this Agreement.

	
				
	 
	 
	 
	GERMAN AMERICAN BANCORP, INC.

	 
	 
	 
	 

	 
	 
	By:
	 

	Director's Name
	 
	 
	Mark A Schroeder, Chairman and CEO

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