Document:

Exhibit 10.20

 

[Letterhead of World Fuel Services]

 

February 3, 2012

 

Re:  Notice of changes to your Restricted Stock Unit Agreements to address certain tax laws

 

Dear Ira,

 

You currently hold restricted stock units (“RSUs”) with respect to shares of World Fuel Service Corporation’s (the “Company”) common stock, par value U.S. $0.01 per share (“Shares”), that were granted to you under the Company’s 2006 Omnibus Plan, as it may be amended from time to time (the “Plan”), pursuant to RSU award agreements between you and the Company, dated March 15, 2010, as may be amended from time to time (the “RSU Agreement”).  In accordance with its authority pursuant to Section 21(a) of the RSU Agreement(s), the Compensation Committee of the Board of Directors of the Company has amended the RSU Agreement(s) to address certain requirements of Section 409A of the Internal Revenue Code of 1986. Accordingly, effective at 11:59 p.m. on December 31, 2011, your RSU Agreement(s) are deemed to incorporate the provisions of this notice.

 

Notwithstanding anything to the contrary set forth in any RSU Agreement or any other agreement that relates to your RSUs:

 

1.                                      Vesting and Forfeiture of Shares.  Section 3(b)(i) of your RSU Agreement(s) is hereby deleted in its entirety and replaced with the following:

 

“(i)  (A)  Except as otherwise determined by the Committee as set forth in Section 3(b)(i)(B) hereof, the RSUs shall become fully vested and nonforfeitable in the event that a Change of Control occurs while the Participant is employed by the Company or any Subsidiary.  The vested RSUs shall be converted, as of the effective date of the Change of Control, into a fully-vested fixed cash amount equal to the product of (x) fair market value (as determined by the Committee in its discretion) of the per Share consideration received by holders of Shares in the transaction constituting the Change of Control and (y) the number of Shares subject to the RSUs (the “CIC Cash-Out Amount”).  The CIC Cash-Out Amount shall be credited with interest at the 10-year U.S. Treasury Securities rate or, if greater as of the effective date of the Change of Control, the prime rate as published in the Wall Street Journal, during the period commencing upon consummation of the Change of Control and ending on the date that the CIC Cash-Out Amount is paid to the Participant in accordance with Section 5(b) hereof.  For the avoidance of doubt, the Participant will not forfeit any portion of the CIC Cash-Out Amount upon termination of employment for any reason, whether pursuant to Section 3(b)(ii), 3(b)(iii) or otherwise.  In the event that RSUs have been converted into the CIC Cash-Out Amount, the provisions of Sections 5(c) and 5(d) relating to settlement of RSUs shall apply to settlement of the CIC Cash-Out Amount.

 

 

(B)  Notwithstanding Section 3(b)(i)(A) hereof, if in the event of a Change of Control the Committee determines that the successor company shall assume or substitute the RSUs as of the date of the Change of Control, then the vesting of the RSUs that are assumed or substituted shall not be so accelerated as a result of such Change of Control.  For this purpose, the RSUs shall be considered assumed or substituted only if (1) the RSUs that are assumed or substituted vest at the times that such RSUs would vest pursuant to this Agreement and (2) immediately following the Change of Control, the RSUs confer the right to receive for each unvested RSU held immediately prior to the Change of Control, the consideration (whether stock, cash or other securities or property) received by holders of Shares in the transaction constituting a Change of Control for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the transaction constituting a Change of Control is not solely common stock of the successor company or its parent or subsidiary, the Committee may provide that the consideration to be received upon the vesting of any RSU will be solely common stock of the successor company or its parent or subsidiary substantially equal in fair market value (on a per share basis) to the per share consideration received by holders of Shares in the transaction constituting a Change of Control.  The determinations of (1) whether the RSUs shall be assumed or substituted in accordance with this Section 3(b)(i)(B) or shall convert into the CIC Cash-Out Amount in accordance with Section 3(b)(i)(A) hereof and (2) in the event that this Section 3(b)(i)(B) is applicable, such substantial equality of value of consideration shall be made by the Committee in its sole discretion and such determinations shall be conclusive and binding.  The award resulting from the assumption or substitution of the RSUs by the successor company shall continue to vest after the Change of Control transaction in accordance with the Vesting Schedule, and shall be referred to hereafter as the “Acquirer RSUs”.  From and after a Change of Control pursuant to which RSUs are treated in accordance with this Section 3(b)(i)(B), (x) all references in this Agreement to RSUs shall be deemed to refer to Acquirer RSUs, and (y) all references to “Shares corresponding to” or “Shares underlying” any RSUs shall be deemed to refer to the consideration corresponding to or underlying Acquirer RSUs.”

 

2.                                      Settlement of Awards.  Sections 5(a) and (b) of your RSU Agreement(s) are hereby deleted in their entirety and replaced with the following:

 

(a)  Delivery of Stock.  The Company shall deliver the Shares corresponding to the vested RSUs to the Participant within 30 days following the applicable Vesting Date; provided that, in the event that a pro-rata portion of the RSUs shall vest in connection with a termination of the Participant’s employment (i) due to death or a Section 409A Disability, the Company shall deliver the Shares with respect to such pro rata portion within 30 days following the Termination Date, or (ii) by the Company and its Subsidiaries without Cause or due to a Disability that does not constitute a Section 409A Disability (but that, in each case, constitutes a Separation from Service), the Company shall deliver the Shares attributable to such pro rata portion (to the extent such RSUs become vested) within 30 days following the last day of the Restricted Period.

 

 

(b)  Delivery of CIC Cash Amount.  The Company shall deliver to the Participant the CIC Cash-Out Amount (plus interest credited thereon) within 30 days following the Vesting Date applicable to the RSUs to which the CIC Cash-Out Amount relates, provided that in the event of the Participant’s termination of employment prior to the applicable Vesting Date (i) due to death or a Section 409A Disability, the Company shall deliver the CIC Cash-Out Amount within 30 days following the Termination Date, or (ii) due to a Separation from Service for any reason that is not covered by the preceding clause (i), the Company shall deliver the CIC Cash-Out Amount within 30 days following the last day of the Restricted Period.

 

3.                                      Dividend Equivalents.  In addition to the entirety of Section 6 of your RSU Agreement(s), the following sentence is hereby added to the end of Section 6(b)(i):

 

“In the event that RSUs are converted into the CIC Cash-Out Amount pursuant to Section 3(b)(i)(A) hereof, the Cash Account that relates to such RSUs shall be added to the CIC Cash Amount and shall be paid to the Participant in accordance with Section 5(b) hereof.”

 

4.                                      Compliance with Section 409A.  Section 21(b)(i) of your RSU Agreement(s) is hereby replaced in its entirety with the following:

 

“(i)  Payments or delivery of Shares or cash in respect of the Participant’s Cash Account or, if applicable, the CIC Cash-Out Amount, under this Agreement may not be made earlier than (u) the Participant’s Separation from Service, (v) the date the Participant incurs a Section 409A Disability, (w) the Participant’s death or (x) a “specified time (or pursuant to a fixed schedule)” specified in this Agreement at the date of the deferral of such compensation;”

 

5.                                      Usage and Interpretation.  For the avoidance of doubt, (a) with respect to Sections 6(b)(i), 7, 9, 21 and 22 of your RSU Agreement(s), references to the “Cash Account” shall be interpreted to include the CIC Cash-Out Amount, and (b) the reference to “Section 6(b)” in Section 9(c) of your RSU Agreement(s) shall be deemed to refer to “Section 5 (and, if applicable, Section 6)”.

 

6.                                      Definitions.  All capitalized terms used in this notice but not otherwise defined herein will have the same meaning as defined in the Plan or in the relevant RSU Agreement.  In addition, this notice and your RSU Agreement(s) shall be deemed to incorporate the following terms as defined in this Section 6:

 

(a)  “Section 409A” means Section 409A of Code and the Treasury Regulations thereunder;

 

(c)  “Section 409A Disability” means a “disability” within the meaning of Section 409A; and

 

(d)  “Separation from Service” means a termination of employment with the Company and its Subsidiaries that constitutes a “separation from service” within the meaning of Section 409A.

 

 

7.                                     Full Force and Effect.  Except as specifically set forth herein, this notice shall not, by implication or otherwise, alter, amend or modify in any way any terms of any RSU Agreement, all of which shall continue in full force and effect.

 

8.                                      Governing Law/Jurisdiction.  The validity and effect of this notice shall be governed by and construed and enforced in accordance with the laws of the State of Florida, without regard to any conflict-of-law rule or principle that would give effect to the laws of another jurisdiction.   Any dispute, controversy, or question of interpretation arising under, out of, in connection with, or in relation to the RSU Agreement(s) or any amendments thereof, or any breach or default hereunder, shall be submitted to, and determined and settled by, litigation in the state or federal courts in Miami-Dade County, Florida.  Each of the parties hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Miami-Dade County, Florida.  Each party hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of any litigation in Miami-Dade County, Florida.

 

9.                                      Entire Agreement.  This notice, together with the Plan and the RSU Agreement(s), contains the entire agreement between you and the Company concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between you and the Company with respect hereto.

 

February 3, 2012

 

WORLD FUEL SERVICES CORPORATION

 

 

	
 
    	
 
    
	
 
    	
By   
    
	
 
    	
 
    	
s/ Michael Kasbar
    
	
 
    	
 
    	
Name:   Michael Kasbar
    
	
 
    	
 
    	
Title:   President & CEOExhibit 10.29

 

SECOND AMENDMENT, dated as of December 28, 2011 (this “Second Amendment”), to the RECEIVABLES PURCHASE AGREEMENT, dated as of March 31, 2011 (as amended by the First Amendment, dated as of June 30, 2011, prior to the effective date of the Second Amendment, the “Original Agreement”; as amended by the Second Amendment and as further amended, supplemented or modified from time to time, the “Agreement”), among (i) WORLD FUEL SERVICES, INC., a Texas corporation, WORLD FUEL SERVICES EUROPE, LTD., a company organized under the laws of England and Wales, WORLD FUEL SERVICES (SINGAPORE) PTE LTD, a company organized under the laws of Singapore, WORLD FUEL SERVICES TRADING DMCC, a company organized under the rules and regulations of the Dubai Multi Commodities Center and the laws of Dubai (together with its and their successors and assigns, each individually, “Original Seller”, and also collectively, as applicable, “Original Seller”), (ii) WORLD FUEL SERVICES AVIATION LIMITED, a private limited company organized under the laws of England and Wales (together with its successors and assigns “WFSA”; the Original Seller and WFSA, together with its and their successors and assigns, each individually, “Seller”, and also collectively, as applicable, “Seller”), (iii) WORLD FUEL SERVICES CORPORATION, a Florida corporation (together with its successors and assigns, “Parent”), and (iv) WELLS FARGO BANK, NATIONAL ASSOCIATION, a U.S. national banking association (together with its successors and permitted assigns, “Wells”).  Terms not otherwise defined herein shall have the meanings set forth in the Original Agreement.

 

Original Seller and Wells each desires (i) to increase the receivables program under the Agreement and (ii) to include WFSA as a Seller of Receivables.

 

Accordingly, the parties to this Second Amendment hereby agree to amend the Original Agreement as follows.

 

1.             Amendments.

 

(a)           Section 1 of the Original Agreement is hereby amended by (i) deleting the defined terms “Outstanding Purchase Price - Base Receivables” and “Seller” in their entirety, and (ii) substituting therefor the following:

 

“Outstanding Purchase Price - Base Receivables” shall mean an amount equal to the sum of (i) the Outstanding Purchase Price - General Receivables plus (ii) the Outstanding Purchase Price - Transportation Receivables. Pursuant to Section 5.1(i), the maximum Outstanding Purchase Price - Base Receivables shall not exceed $75,000,000.

 

“Seller” shall mean, individually and collectively, WFSI, WFSE, WFSS, WFST and WFSA, together with their respective successors and assigns.

 

(b)           The defined term “Purchase Limit” appearing in Section 1 of the Original Agreement is hereby amended by (i) deleting the phrase “the maximum Outstanding Purchase Price - Base Receivables shall not exceed $50,000,000” appearing therein, and (ii) substituting therefor the phrase “the maximum Outstanding Purchase Price - Base Receivables shall not exceed $75,000,000”.

 

(c)           Section 1 of the Original Agreement is hereby amended by adding the following new defined terms and placing such defined terms in their appropriate alphabetical order:

 

 

“General Receivables” shall mean Base Receivables other than the Transportation Receivables.

 

“Outstanding Purchase Price - General Receivables” shall mean the amount equal to the aggregate amount of the Purchase Prices paid by Wells with respect to the Purchased General Receivables minus the aggregate amount of all Collections with respect to such Purchased General Receivables remitted to the Collection Account plus the amount of Collections netted out pursuant to the weekly settlement process described in Section 6.2(a).

 

“Outstanding Purchase Price - Transportation Receivables” shall mean the amount equal to the aggregate amount of the Purchase Prices paid by Wells with respect to the Purchased Transportation Receivables minus the aggregate amount of all Collections with respect to such Purchased Transportation Receivables remitted to the Collection Account plus the amount of Collections netted out pursuant to the weekly settlement process described in Section 6.2(a).

 

“Purchased General Receivable” shall mean any General Receivable that is purchased by Wells hereunder.

 

“Purchased Transportation Receivable” shall mean any Transportation Receivable that is purchased by Wells hereunder.

 

“Transportation Account Debtor” shall mean each of Cathay Pacific Airways Ltd., Deutsche Lufthansa AG and Singapore Airlines Ltd., and each of their respective subsidiaries.

 

“Transportation Receivables” shall mean those Base Receivables the Account Debtor of which is a Transportation Account Debtor.

 

“WFSA” shall mean World Fuel Services Aviation Limited, a private limited company organized under the laws of England and Wales.

 

(d)           Section 5.1(i) of the Original Agreement is hereby amended by (i) deleting such subclause in its entirety, and (ii) substituting therefor the following new subclause:

 

“(i)          Sales Volume. Except as otherwise agreed by Wells, the maximum Outstanding Purchase Price - Base Receivables shall not exceed $75,000,000 and the maximum Outstanding Purchase Price - DLA Receivables shall not exceed $50,000,000. Seller agrees to offer for sale to Wells sufficient volumes of Eligible Receivables in order for Wells to hold (i) an average quarterly balance of the Outstanding Purchase Price of Purchased General Receivables of $40,000,000 or greater, and (ii) an average quarterly balance of the Outstanding Purchase Price of Purchased Transportation Receivables of $12,500,000 or greater.  For each quarter during the initial term of this Agreement, and each quarter thereafter to the extent that the term of this Agreement is extended pursuant to Section 7.1 hereof (for the avoidance of doubt, to include the remaining term of this Agreement as extended regardless of the termination of this Agreement by Seller upon notice pursuant to Section 7.2, or by Wells upon the occurrence of a Termination Event,

 

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but not including any quarters after the quarter in which Wells may terminate this Agreement solely upon notice under Section 7.2), (A) if the average quarterly balance of the Purchased General Receivables is less than $40,000,000, then Seller agrees to pay to Wells a maintenance fee equal to (a) 0.50% multiplied by (b) $40,000,000 minus the sum of (i) the amount of the average Outstanding Purchase Price - General Receivables for such quarterly period, plus (ii) the difference (if positive) between $40,000,000 and the average amount of the Purchase Limits in effect for such quarterly period, plus (iii) 90% of the aggregate Net Invoice Amount of General Receivables constituting Eligible Receivables offered for purchase by Seller during such quarterly period that were not purchased by Wells, plus (B) if the average quarterly balance of the Purchased Transportation Receivables is less than $12,500,000, then Seller agrees to pay to Wells a maintenance fee equal to (a) 0.50% multiplied by (b) $12,500,000 minus the sum of (i) the amount of the average Outstanding Purchase Price - Transportation Receivables for such quarterly period, plus (ii) the difference (if positive) between $12,500,000 and the average amount of the Purchase Limits in effect for such quarterly period, plus (iii) 90% of the aggregate Net Invoice Amount of Transportation Receivables constituting Eligible Receivables offered for purchase by Seller during such quarterly period that were not purchased by Wells, (the sum of (A) plus (B) being the “Quarterly Maintenance Fee”). The Quarterly Maintenance Fee may be deducted from the Purchase Price for Purchased Receivables as a component of the first weekly settlement process set forth in Section 6.2(a) to occur following the end of a calendar quarter (or shall otherwise be paid in cash by Seller on the first Business Day following the end of a calendar quarter).”

 

(e)           Exhibit A of the Original Agreement is hereby amended by (i) deleting such Exhibit in its entirety, and (ii) substituting therefor Exhibit A attached hereto.

 

2.             Conditions Precedent.  This Second Amendment shall become effective on the date and time that Wells shall have received the agreements, documents, instruments and payments set forth on Exhibit D-2 hereto, each in form, substance and date reasonably satisfactory to Wells.

 

3.             Confirmation of Parent Guaranty.  By its execution of this Second Amendment, Parent hereby consents and acknowledges the additional terms set forth in this Second Amendment, including the increase of the Purchase Limit and addition of WFSA as a “Seller” under the Agreement and under the Parent Guaranty, and further acknowledges the continuing validity of the Parent Guaranty and reaffirms all of the terms and obligations contained in the Parent Guaranty, which shall remain in full force and effect for all obligations of Seller, including, without limitation, WFSA, now or hereafter owing to Wells and acknowledges, agrees, represents and warrants that no oral or other agreements, understandings, representations or warranties exist with respect to the Parent Guaranty or with respect to the obligations of the undersigned thereunder, except those specifically set forth herein.  Parent further acknowledges and agrees that neither further notice to, nor consent of, Parent with respect to the modifications effected by this Second Amendment is required under the terms of the Parent Guaranty.

 

4.             Governing Law; Consent to Jurisdiction.  This Second Amendment, and the Agreement as so amended by this Second Amendment, shall be interpreted in accordance with and governed by the laws of the State of New York without giving effect to conflicts of law

 

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principles that would cause the application of the law of any jurisdiction other than the laws of the State of New York. Each party hereto irrevocably consents and submits to the non-exclusive jurisdiction of the Supreme Court of New York in New York County and the United States District Court for the Southern District of New York and waives any objection based on venue or forum non conveniens with respect to any action instituted therein arising under or in connection with this Second Amendment.

 

5.             Costs and Expenses. Seller agrees to reimburse Wells for all reasonable costs and expenses, including attorneys’ fees and expenses and Wells’ due diligence expenses, in connection with the preparation, negotiation and documentation of this Second Amendment. Seller also agrees to pay, on demand, all stamp and other similar taxes and fees payable or determined to be payable in connection with the execution, delivery, filing and recording of this Second Amendment, and agrees to indemnify each Indemnified Party against any liabilities with respect to or resulting from any delay in paying or omission to pay such taxes and fees.

 

6.             Execution in Counterparts.  This Second Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Second Amendment by PDF copy, telefacsimile or other electronic means shall have the same force and effect as the delivery of an original executed counterpart of this Second Amendment.  Any party delivering an executed counterpart of this Second Amendment by PDF copy, telefacsimile or other electronic means shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Second Amendment or the Agreement as so amended by this Second Amendment.

 

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IN WITNESS WHEREOF each Seller, Wells and Parent have caused this Second Amendment to be executed by their respective officers thereunto duly authorized as of the date first above written.

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Purchaser
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Barbara Van Meerten
    
	
 
    	
 
    	
Name:   Barbara Van Meerten
    
	
 
    	
 
    	
Title:   Director
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

	
 
    	
WORLD   FUEL SERVICES, INC.,
    
	
 
    	
as   a Seller
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Richard D. McMichael
    
	
 
    	
 
    	
Name:   Richard D. McMichael
    
	
 
    	
 
    	
Title:   Senior Vice President—Finance
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

	
 
    	
WORLD   FUEL SERVICES EUROPE, LTD.,
    
	
 
    	
as   a Seller
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Richard D. McMichael
    
	
 
    	
 
    	
Name:   Richard D. McMichael
    
	
 
    	
 
    	
Title:   Director
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

	
 
    	
WORLD   FUEL SERVICES (SINGAPORE) PTE LTD,
    
	
 
    	
as   a Seller
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Francis Lee
    
	
 
    	
 
    	
Name:   Francis Lee
    
	
 
    	
 
    	
Title:   Managing Director
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

	
 
    	
WORLD   FUEL SERVICES TRADING DMCC,
    
	
 
    	
as   a Seller
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Timothy R. Bingham
    
	
 
    	
 
    	
Name:   Timothy R. Bingham
    
	
 
    	
 
    	
Title:   General Manager
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

	
 
    	
WORLD   FUEL SERVICES AVIATION LIMITED,
    
	
 
    	
as   a Seller
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Wade N. DeClaris
    
	
 
    	
 
    	
Name:   Wade N. DeClaris
    
	
 
    	
 
    	
Title:   Director
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

	
 
    	
WORLD   FUEL SERVICES CORPORATION,
    
	
 
    	
as   Parent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Ira M. Birns
    
	
 
    	
 
    	
Name:   Ira M. Birns
    
	
 
    	
 
    	
Title:   EVP & CFO
    

 

[Signature Page to 2nd Amendment to RPA]

 

 

Exhibits A and D-2 have been intentionally omitted.

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