Document:

ex10-3.htm

Exhibit 10.3

 

AMENDMENT NO. 1 TO LOAN AGREEMENT AND PROMISSORY NOTE

 

This Amendment No. 1 to Loan Agreement and Promissory Note (“Amendment”) dated as of November 16, 2012, is between POLY SHIELD TECHNOLOGIES, INC. (“Borrower”), a corporation incorporated in the State of Delaware (formerly known as GlobeTrac Inc.) and ACAMAR INVESTMENTS, INC. (“Lender”), a corporation incorporated in the State of Washington.

 

RECITALS

 

	 	
A. 

	
Borrower and Lender entered into a certain Loan Agreement dated as of April19, 2012 (“Loan Agreement”).

 

	 	
B. 

	
Borrower and Lender entered into a certain Promissory Note dated as of April19, 2012, for the principal sum of Two Hundred and Sixty Thousand Dollars (US$260,000.00).

 

	 	
C.

	
At the time Borrower entered into the Loan Agreement, it was named GlobeTrac Inc.  As of July 11, 2012, GlobeTrac Inc. changed its name to Poly Shield Technologies, Inc.

 

	 	
D.

	
Borrower and Lender wish to extend the due date for all outstanding principal, interest and sums due under the Loan Documents to April 19, 2013.

 

	 	
E. 

	
Borrower wishes to borrow from Lender an additional sum of Twenty FiveThousand Dollars (US$25,000.00).

 

AGREEMENT

 

	
1.

	
Definitions. Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Loan Agreement.

 

	
2.

	
Amendments.

 

2.1          Each reference to GlobeTrac Inc. in the Loan Documents, including but not limited to those listed below, is hereby replaced with Poly Shield Technologies, Inc.:

 

(a)           Promissory Note, dated as of April 19, 2012, by GlobeTrac Inc.

 

(b)           Security Agreement, dated as of April 19, 2012, by GlobeTrac Inc.

 

2.2          Section 1 of the Loan Agreement is hereby renamed “First Loan.”

 

2.3          A new facility, 1A, is hereby inserted after Section 1 in the Loan Agreement as follows:

  

  

  

 

1A.          SECOND LOAN

 

1A.1           Loan Amount.

 

Subject to the terms set forth below, the Lender agrees to provide a term loan to the Borrower in the amount of Twenty Five Thousand Dollars ($25,000) (the “Second Loan”).

 

1A.2           Availability Period.

 

Subject to the terms set forth below, the Loan is available in one disbursement from the Lender on the date of this Loan Agreement.

 

1A.3           Repayment Terms.

 

(a)           The Borrower will pay interest and principal in accordance with the Note until payment in full of any outstanding principal

 

(b)           The Loan and all accrued interest and other amounts due under this Loan Agreement and the Loan Documents must be repaid in full no later than April 19, 2013.

 

(c)           The unpaid principal balance will bear interest at rate of 3.5% per month, compounded monthly. All accrued interest will be due December 19, 2012 with monthly payments of all accrued interest to be made on the same day of each month thereafter.

 

(d)           Subject to Section 1A.3 (e), The Borrower may prepay the Loan in full or in part at any time. The prepayment will be applied first against fees, expenses and indemnities due hereunder; secondly, against interest due on amounts in default, if any; thirdly, against interest due; and thereafter against principal.

 

(e)           The Loan cannot be repaid until the Lender has received interest or a substitute payment of not less than one months’ interest.

 

2.4          Section 2 of the Promissory Note by Poly Shield (formerly known as GlobeTrac Inc.), dated as of April 19, 2012, for the principal sum of Two Hundred and Sixty Thousand Dollars (US$260,000.00), is hereby amended as follows:

 

PAYMENTS.  Any advance will be conclusively presumed to have been made to or for the benefit of the Borrower when made in accordance with the Loan Agreement.  The Borrower promises to pay principal and interest on the principal balance hereof as set forth in the Loan Agreement.  ALL OUTSTANDING PRINCIPAL, INTEREST, AND SUMS DUE UNDER THIS NOTE WILL BE DUE AND PAYABLE ON APRIL 19, 2013.

  

  

  

 

3.             CONDITIONS

 

Before the Lender is required to extend any credit to the Borrower under this Amendment, it must receive any documents and other items it may reasonably require, in form and content acceptable to the Lender, including any items specifically listed below, and each condition listed below must be satisfied.

 

3.1           Authorizations and Good Standing.

 

Evidence that the execution, delivery and performance by the Borrower of this Amendment, the Amendment Loan Documents, and any instrument or agreement required under this Amendment have been duly authorized, and a certificate of good standing from each jurisdiction in which Borrower is required to qualify to conduct its business.

 

3.2           Amendment Loan Documents.

 

The Lender will have received fully executed originals of the following:

 

(a)           this Amendment;

 

(b)           Poly Shield Technologies Inc. Resolutions;

 

(c)           Promissory Note by Poly Shield Technologies Inc., dated as of November 16, 2012; and

 

(d)           all other Loan Documents as may be reasonably required by the Lender.

 

3.3           Payment of Fees.

 

Payment of all fees and other amounts due and owing to the Lender, including without limitation payment of all accrued and unpaid expenses incurred by the Lender.

 

3.4           Economic and Financial Conditions.

 

Economic conditions have not deteriorated to the point that advancing funds to the Borrower is not prudent, in Lender’s sole discretion.  There shall have been no material adverse change, as determined by Lender, in the financial condition or business of Borrower hereunder, nor any material decline, as determined by Lender, in the market value of any Collateral required hereunder or a substantial or material portion of the assets of Borrower.

 

  

  

  

3.5           Transaction.

 

The final terms and conditions of each aspect of the transaction shall be satisfactory to Lender.  All conditions precedent to the consummation of each aspect of the transaction shall have been satisfied or, with the prior written approval of the Lender, waived, none of which shall be been altered, amended or otherwise changed or supplemented or any condition therein waived without the prior written consent of the Lender.

 

3.6           Disbursements.

 

Upon satisfaction of all of the foregoing conditions, the Borrower may receive the Loan.

 

4.             REPRESENTATIONS AND WARRANTIES

 

When the Borrower signs this Amendment, and until the Lender is repaid in full, the Borrower makes the following representations and warranties.  Each request for an extension of credit constitutes a renewal of these representations and warranties as of the date of the request:

 

4.1           Formation.

 

The Borrower is duly formed, in good standing, and existing under the laws of the State of Delaware.

 

4.2           Authorization.

 

This Amendment and any instrument or agreement required hereunder are within the Borrower’s powers, have been duly authorized, and do not conflict with any of its organizational papers.

 

4.3           Enforceable Agreement.

 

Each Amendment Loan Document is a legal, valid and binding agreement of the Borrower, enforceable against the Borrower in accordance with its terms, and any instrument or agreement required hereunder, when executed and delivered, will be similarly legal, valid, binding and enforceable.

 

4.4           Good Standing.

 

In each jurisdiction in which the Borrower does business, it is properly licensed, in good standing, and, where required, in compliance with fictitious name statutes.  Such jurisdictions are as follows:  the State of Delaware and the Province of British Columbia.

 

4.5           No Conflicts.

 

No Loan Document conflicts with any law, agreement, or obligation by which the Borrower is bound.

 

  

  

  

 

4.6           Financial Information.

 

All financial and other information that has been or will be supplied to the Lender is sufficiently complete to give the Lender accurate knowledge of the Borrower’s financial condition, including all material contingent liabilities.  Since the date of the most recent financial statement provided to the Lender, there has been no material adverse change in the business condition (financial or otherwise), operations, properties or prospects of the Borrower with the exception of the change of Borrower’s name and this Amendment.

 

4.7           Lawsuits.

 

There is no lawsuit, tax claim or other dispute pending or threatened against the Borrower which, if lost, would impair the Borrower’s financial condition or ability to repay the Loan, except as have been disclosed in writing to the Lender.

 

4.8           Collateral.

 

All Collateral required in this Loan Agreement is owned by the Borrower free of any title defects or any liens or interests of others, except those which have been approved by the Lender in writing.

 

4.9           Other Obligations.

 

The Borrower is not in default on any obligation for borrowed money, any purchase money obligation or any other material lease, commitment, contract, instrument or obligation, except as have been disclosed in writing to the Lender.

 

4.10           Tax Matters.

 

The Borrower has no knowledge of any pending assessments or adjustments of its income tax for any year and all taxes due have been paid, except as have been disclosed in writing to the Lender.

 

4.11           No Event of Default.

 

There is no event which is, or with notice or lapse of time or both would be, an Event of Default under this Amendment.

 

4.12           Location of Borrower.

 

The place of business of the Borrower (or, if the Borrower has more than one place of business, its chief executive office) is located at the address listed on the signature page of this Amendment.

 

  

  

  

 

4.13           Governmental Authorization.

 

No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any governmental authority (including, without limitation, any nation, state or other political subdivision thereof, any central bank, and any entity exercising executive, legislative, judicial, regulatory or administrative functions, and any corporation or other entity owned or controlled by any of the foregoing) is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower of the Loan Agreement or any other instrument or agreement required hereunder.

 

5.             PAYMENT SCHEDULE

 

Borrower acknowledges and confirms that the payment schedule, attached as Exhibit A to this Amendment, is true and correct as of November 15, 2012.

 

6.             EFFECT OF AMENDMENT

 

Except as provided in this Amendment, all of the terms and conditions of the Loan Agreement and Loan Documents shall remain in full force and effect.

 

7.             COUNTERPARTS

 

This Amendment may be executed in as many counterparts as necessary or convenient, and by the different parties on separate counterparts each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same agreement.  Delivery of an executed counterpart of this Amendment (or of any agreement or document required by this Amendment) by telecopy or other electronic imaging means shall be as effective as delivery of a manually executed counterpart of this Amendment; provided, however, that the telecopy or other electronic image shall be promptly followed by delivery of an original if required by Lender.

 

STATUTE OF FRAUDS DISCLOSURE.  ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

 

[signature page follows]

 

  

  

  

 

	BORROWER:	 	 	LENDER:	 
	 	 	 	 	 	 	 
	POLY SHIELD TECHNOLOGIES INC.	 	 	ACAMAR INVESTMENTS, INC.	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Per:	
/s/ Mitchell R. Miller

	 	 	Per:	
/s/ Bernie Van Maren

	 
	 	

Mitchell R. Miller – Chief Executive Officer and President

	 	 	 	

Bernie Van Maren – Secretary

	 
	 	 	 	 	 	 	 
	
Address where notices to the Borrower are to be sent:

Poly Shield Technologies Inc.

c/o Da Costa Management Corp.

789 Pender Street West, Suite #810

Vancouver, BC Canada, V6C 1H2

	 	 	 	
Address where notices to the Lender are to be sent:

Acamar Investments, Inc.

45793 Luckakuck Way, Suite 202

Chilliwack, British Columbia

CANADA  V2R 5S3

	 

 

  

  

  

 

	
EXHIBIT A

	  
	  
	
Poly Shield Technologies Inc.

	
Loan from Acamar Investment

	
November 15, 2012

	  	  	  	  	  	  	  	  	  
	
Terms:

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Loan amount

	
$260,000

	  	  	  	  	  	  	  
	
Interest Rate

	
3.50%

	  	
per month

	  	  	  	  	  
	
Effective Rate

	
51.1%

	  	
per year

	  	  	  	  	  
	
Due date

	
19-Oct-12

	  	
Extended  6 months - Maturity now April 19, 2012

	  
	
Minimum interest payment

	
 $      26,000

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  

 

	  Poly Shield Technologies calculation
	
Description

	
Date

	
 Days

	
Advances

	
Principal

	
Interet Expense Accrued

	
Interest Expense Applied

	
 Payments

	
Principal & Interest

	  	  	  	  	  	  	  	  	  
	
Advance

	
19-Apr-12

	  	
 $  20,000.00

	
 $  20,000.00

	  	  	  	
     20,000.00

	
Advance

	
19-Apr-12

	
      -

	
   230,000.00

	
   250,000.00

	  	  	  	
   250,000.00

	
Holmes Weddle Invoice

	
20-Apr-12

	
        1

	
      6,311.50

	
   256,311.50

	
         291.67

	  	  	
   256,311.50

	
Advance - Globetrac

	
20-Apr-12

	
      -

	
      3,688.50

	
   260,000.00

	  	  	  	
   260,000.00

	  	
19-May-12

	
      29

	  	
   260,000.00

	
       8,796.67

	
      9,088.33

	  	
   269,088.33

	
Interest Payment

	
18-Jun-12

	
      30

	  	
   260,000.00

	
       9,114.28

	  	
   (18,506.43)

	
   250,581.90

	  	
19-Jun-12

	
        1

	  	
   260,000.00

	
         292.35

	
      9,406.63

	  	
   259,988.53

	
Interest Payment

	
16-Jul-12

	
      27

	  	
   260,000.00

	
       8,189.64

	  	
    (9,100.00)

	
   250,888.53

	  	
19-Jul-12

	
        3

	  	
   260,000.00

	
         878.11

	
      9,067.75

	  	
   259,956.28

	  	
19-Aug-12

	
      31

	  	
   260,000.00

	
       9,098.47

	
      9,098.47

	
               -

	
   269,054.75

	
Interest Payment

	
31-Aug-12

	
      12

	  	
   260,000.00

	
       3,645.26

	  	
    (9,100.00)

	
   259,954.75

	  	
19-Sep-12

	
      19

	  	
   260,000.00

	
       5,576.45

	
      9,221.71

	
               -

	
   269,176.46

	
Interest Payment

	
2-Oct-12

	
      13

	  	
   260,000.00

	
       4,082.51

	  	
    (9,100.00)

	
   260,076.46

	
interest Payment

	
18-Oct-12

	
      16

	  	
   260,000.00

	
       4,854.76

	  	
    (9,318.96)

	
   250,757.50

	  	
19-Oct-12

	
        1

	  	
   260,000.00

	
         292.55

	
      9,229.82

	  	
   259,987.32

	  	
15-Nov-12

	
      27

	  	
   260,000.00

	
       7,925.42

	
      7,925.42

	  	
   267,912.74

	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Balance at November 15, 2012

	  	  	  	
 $260,000.00

	
 $  63,038.13

	
 $ 63,038.13

	
   (55,125.39)

	
 $267,912.74

	  	  	  	  	  	  	  	  	  

 

	
Interest is calculated on the principal and interest outstanding at the 19th of the month less any payments made since the 19th of the month.

	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
November 15, 2012

	
  Principal

	  	
 $260,000.00

	  	  	  	  	  
	
November 15, 2012

	
  Interest

	  	
      7,912.74

	  	  	  	  	  
	
November 15, 2012

	
  Total

	  	
 $267,912.74

	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
I agree that the above loan balance is correct

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
/s/ John da Costa

	  	  	  	  	  	  	  	  
	
Authorized Signatory

	  	  	  	  	  	  	  	  
	
Poly Shield Technologies Inc.

	  	  	  	  	  	  	  	  

 

  

  

  

 

PROMISSORY NOTE

 

	Principal Amount: US$25,000.00  	Dated: November 16, 2012

 

                                                    

1.           PROMISE TO PAY. FOR VALUE RECEIVED, POLY SHIELD TECHNOLOGIES INC., a Delaware corporation (the “Borrower”) promises to pay, in lawful money of the United States of America, to the order of ACAMAR INVESTMENTS, INC., a Washington corporation (the “Lender”), the principal sum of Twenty Five Thousand Dollars (US$25,000.00), together with the Interest Rate (as hereinafter defined) on each advance from the date it is disbursed until the date it is repaid, payable at the rates and in the manner provided below. The Borrower and the Lender are parties to a certain Loan Agreement dated April 19, 2012, and as amended by Amendment No. 1 to Loan Agreement and Promissory Note dated as of November 16, 2012 (the “Loan Agreement”). All capitalized terms in this Note will have the same meaning as set forth in the Loan Agreement unless otherwise defined herein (such meanings to be equally applicable to both the singular and plural forms of the terms defined).

 

2.           PAYMENTS. Any advance will be conclusively presumed to have been made to or for the benefit of the Borrower when made in accordance with the Loan Agreement. The Borrower promises to pay principal and interest on the principal balance hereof as set forth in the Loan Agreement. ALL OUTSTANDING PRINCIPAL, INTEREST, AND SUMS DUE UNDER THIS NOTE WILL BE DUE AND PAYABLE ON APRIL 19, 2013 (“Maturity Date”).

 

3.           INTEREST RATE. The payment and accumulation of interest shall be governed by the Loan Agreement.

 

4.           APPLICATION OF PAYMENTS. Payments made hereunder will be applied first against fees, expenses and indemnities due hereunder; secondly, against interest due on amounts in default, if any; thirdly, against interest due; and thereafter against principal.

 

5.           DEFAULT. The Borrower will be in default if any of the following happens: (a) the Borrower fails to make any payment when due; (b) the Borrower breaks any promise the Borrower has made to the Lender; or (c) an “Event of Default” occurs under the Loan Agreement.

 

6.           LENDER’S RIGHTS. The Lender may declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due upon default, without notice, and then the Borrower will pay that amount. The Lender has all other rights available under the Loan Agreement and under applicable law. The Lender may hire or pay someone else to help collect this Note and/or any judgment resulting therefrom if the Borrower does not pay. The Borrower also will pay Lender the amount incurred for collection on this Note. This includes, subject to any limits under applicable law, the Lender’s attorneys’ fees and the Lender’s legal expenses whether or not there is a lawsuit, including attorneys’ fees, legal and collection expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction) and appeals. If not prohibited by applicable law, the Borrower also will pay any court costs, in addition to all other sums provided by law.

 

PROMISSORY NOTE - Page 1

  

  

  

 

7.           LATE CHARGE. If payment is 30 days or more past due, the Borrower will be charged a late charge of 4% of the delinquent payment as per the terms of the Loan Agreement.

 

8.           PREPAYMENT FEE. The Borrower may prepay the Loan in full at any time prior to the Maturity Date, but the Lender is entitled to not less than one months’ interest on the Note amount. Therefore, if the interest already paid at that time is less than one months’ interest, Borrower will pay a prepayment fee in an amount equal to one months’ interest less the amount of interest already paid at the time of prepayment.

 

9.           GENERAL PROVISIONS. The Lender may delay or forego enforcing any of its rights or remedies under this Note without losing them. The Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor.

 

10.         GOVERNING LAW. This Note will be governed by and construed in accordance with the laws of the State of Washington, subject to any such rights and remedies that may be available to the Lender under federal law.

 

STATUTE OF FRAUDS DISCLOSURE.  ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

 

	BORROWER:	 	 	 	 
	 	 	 	 	 
	
POLY SHIELD TECHNOLOGIES INC.

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
/s/ Mitchell R. Miller

	 	 	
 

	 
	
By: Mitchell R. Miller

	 	 	
 

	 
	
Its: Chief Executive Officer and President

	 	 	
 

	 

 

 

 

PROMISSORY NOTE - Page 2ex10-1.htm

EXHIBIT 10.1

 

FORM OF

RESTRICTED STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made and entered into by and between Omega Protein Corporation, a corporation organized under the laws of the State of Nevada (the “Company”), and _________________, an individual (“Grantee”) on the 4th day of December, 2012 (the “Grant Date”), pursuant to the Omega Protein Corporation 2006 Incentive Plan (the “Plan”).  The Plan is incorporated by reference herein in its entirety.  Capitalized terms not otherwise defined in this agreement shall have the meaning given to such terms in the Plan.

 

WHEREAS, Grantee is an employee of the Company, and in connection therewith, the Company desires to grant to Grantee _______ shares of the Company’s common stock, par value $.01 per share (the “Common Stock”), which is calculated with a value of $6.31 on the Grant Date based on a price per share of common stock of $_____, which represents the average high and low stock prices of the Common Stock or the New York Stock Exchange on the Grant Date, subject to the terms and conditions of this Agreement and the Plan, with a view to increasing Grantee’s interest in the Company’s welfare and growth; and

 

WHEREAS, Grantee desires to have the opportunity to be a holder of shares of the Common Stock subject to the terms and conditions of this Agreement and the Plan.

 

NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.           Grant of Common Stock and Administration.

 

Subject to the restrictions, forfeiture provisions and other terms and conditions set forth herein (i) the Company grants to Grantee _____________ (_______) shares of Common Stock (“Restricted Shares”), and (ii) Grantee shall have and may exercise all rights and privileges of ownership of such shares, including, without limitation, the voting rights of such shares and the right to receive any dividends declared in respect thereof.  This Agreement and its grant of Restricted Shares is subject to the terms and conditions of the Plan, and the terms and conditions of the Plan shall control except to the extent otherwise permitted or authorized in the Plan and specifically addressed in this Agreement.  The Plan and this Agreement shall be administered by the Committee pursuant to the Plan.

 

2.           Transfer Restrictions.

 

a.           General.  Grantee shall not sell, assign, transfer, exchange, pledge, encumber, gift, devise, hypothecate or otherwise dispose of (collectively, “Transfer”) any Restricted Shares. The transfer restrictions imposed by this Section 2 shall lapse as to 100% of the Restricted Shares on the third anniversary of the Grant Date; provided, however, that, subject to Sections 3 and 4, Grantee then is, and continuously since the Grant Date has been an employee of the Company.  The Restricted Shares as to which such restrictions so lapse are referred to as “Vested Shares.”

 

  

  

  

 

b.           Dividends, etc.  If the Company (i) declares a dividend or makes a distribution on Common Stock in shares of Common Stock, (ii) subdivides or reclassifies outstanding shares of Common Stock into a greater number of shares of Common Stock or (iii) combines or reclassifies outstanding shares of Common Stock into a smaller number of shares of Common Stock, then the number of shares of Grantee’s Common Stock subject to the transfer restrictions of this Section 2 may be proportionately increased or reduced so as to prevent the enlargement or dilution of Grantee’s rights and duties hereunder as determined by the Committee in its sole discretion.  The determination of the Committee regarding such adjustments shall be final and binding.

 

c.           Change in Control.  If there is a Change in Control (as defined in the Plan) of the Company, the transfer restrictions of this Section 2 shall automatically cease as of the date immediately preceding the Change in Control, and all the Restricted Shares shall be 100% vested.

 

3.           Forfeiture.

 

If Grantee’s employment with the Company is terminated by the Company or Grantee for any reason other than as described in Section 4 below, then Grantee shall immediately forfeit all Restricted Shares which are not Vested Shares.  Any Restricted Shares forfeited under this Agreement shall automatically revert to the Company and become canceled and such shares shall be again subject to the Plan.  Any certificate(s) representing Restricted Shares which include forfeited shares shall only represent that number of Restricted Shares which have not been forfeited hereunder.  Upon the Company’s request, Grantee agrees for himself and any other holder(s) to tender to the Company any certificate(s) representing Restricted Shares which include forfeited shares for a new certificate representing the unforfeited number of Restricted Shares.

 

4.           Disability or Death.

 

If Grantee’s employment is terminated with the Company on account of “Disability” or death, the Restricted Shares shall be 100% vested on the date of Grantee’s Disability or death.  For the purposes of this Agreement, Disability shall mean the Grantee’s inability to perform his duties to the Company or an Affiliate on account of mental or physical disability lasting continuously for a period of 90 days or more as determined by the Committee in its sole discretion.  Grantee hereby agrees to provide Committee with access to such information as necessary for the Committee to  make such determination and Grantee hereby agrees to provide the necessary consents for the Committee to have access to such information.

 

5.           Issuance of Certificate.

 

a.           The Restricted Shares may not be Transferred until they become Vested Shares.  Further, the Restricted Shares may not be transferred and the Vested Shares may not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities laws, any rules of the national securities exchange on which the Company’s securities are traded, listed or quoted, or violation of Company policy.  The Company shall cause to be issued a stock certificate, registered in the name of the Grantee, evidencing the Restricted Shares upon receipt of a stock power duly endorsed in blank with respect to such shares.  Each such stock certificate shall bear the following legend:

 

  

  

  

 

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE RESTRICTIONS, TERMS AND CONDITIONS (INCLUDING FORFEITURE AND RESTRICTIONS AGAINST TRANSFER) CONTAINED IN THE OMEGA PROTEIN CORPORATION 2006 INCENTIVE PLAN AND A RESTRICTED STOCK AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER OF SUCH SHARES AND OMEGA PROTEIN CORPORATION.  A COPY OF THE PLAN AND A RESTRICTED STOCK AGREEMENT ARE ON FILE IN THE CORPORATE OFFICES OF OMEGA PROTEIN CORPORATION

 

Such legend shall not be removed from the certificate evidencing Restricted Shares until such time as the restrictions imposed by Section 2 hereof have lapsed.

 

b.           The certificate issued pursuant to this Section 5, together with the stock powers relating to the Restricted Shares evidenced by such certificate, shall be held by the Company.  The Company shall issue to the Grantee a receipt evidencing the certificates held by it which are registered in the name of the Grantee.

 

6.           Tax Requirements.

 

a.           Taxes and Tax Withholding.  This grant of Restricted Shares is subject to all federal, state, local taxes domestic or foreign and the Company shall have the power and the right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of the Plan and this Agreement.

 

b.           Share Withholding.  With respect to tax withholding required upon any taxable event arising as a result of this Agreement, Grantee may elect in whole or in part to have the Company withhold shares of Common Stock having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed on the transaction.  (In the absence of any IRS or other applicable guidance, the date the tax is to be determined shall be deemed to be the date of receipt of income arising from such taxable event.)  All such elections shall be made in writing, signed by the Grantee, and shall be subject to any restrictions or limitations that the Committee, in its discretion, deems appropriate.  Any fraction of a Share required to satisfy such obligation shall be disregarded and the amount due shall instead be paid in cash by the Grantee.

 

  

  

  

 

7.           Miscellaneous.

 

a.           Certain Transfers Void.  Any purported Transfer of shares of Common Stock or Restricted Shares in breach of any provision of this Agreement shall be void and ineffectual, and shall not operate to Transfer any interest or title in the purported transferee.

 

b.           No Fractional Shares.  All provisions of this Agreement concern whole shares of Common Stock.  If the application of any provision hereunder would yield a fractional share, such fractional share shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the next whole share if it is 0.5 or more.

 

c.           Not an Employment or Service Agreement.  This Agreement is not an employment agreement, and this Agreement shall not be, and no provision of this Agreement shall be construed or interpreted to create (i) any right of Grantee to continue employment with or provide services to the Company or any of its Affiliates.

 

d.           Notices. Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, by telegram, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the address indicated beneath its signature on the execution page of this Agreement, and to Grantee at his address indicated on the Company’s records, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered and receipted for (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

 

e.           Amendment and Waiver.  This Agreement may be amended, modified or superseded only by written instrument executed by the Company and Grantee.  Any waiver of the terms or conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than Grantee.  The failure of any party at any time or times to require performance of any provisions hereof, shall in no manner effect the right to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement in one or more instances shall be deemed to be, or construed as, a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term or condition.

 

f.           Governing Law and Severability.  This Agreement shall be governed by the internal laws, and not the laws of conflict, of the State of Nevada.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

 

  

  

  

 

g.           Successors and Assigns.  Subject to the limitations which this Agreement imposes upon transferability of shares of Common Stock, this Agreement shall bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and Grantee, and Grantee’s permitted assigns and upon death, estate and beneficiaries thereof (whether by will or the laws of descent and distribution), executors, administrators, agents, legal and personal representatives.

 

h.           Community Property.   Each spouse individually is bound by, and such spouse’s interest, if any, in any Shares is subject to, the terms of this Agreement. Nothing in this Agreement shall create a community property interest where none otherwise exists.

 

i.           Entire Agreement.  This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect.

 

j.           Compliance with Other Laws and Regulations.  This Agreement, the grant of Restricted Shares and issuance of Common Stock shall be subject to all applicable federal and state laws, rules, regulations and applicable rules and regulations of any exchanges on which such securities are traded or listed, and Company rules or policies.  Any determination in which connection by the Committee shall be final, binding and conclusive on the parties hereto and on any third parties, including any individual or entity.

 

k.           Independent Legal and Tax Advice.  The Grantee has been advised and Grantee hereby acknowledges that he has been advised to obtain independent legal and tax advice regarding this Agreement, grant of the Restricted Shares and the disposition of such shares, including, without limitation, the election available under Section 83(b) of the Internal Revenue Code.  Grantee acknowledges that none of the Company, its Affiliates or any of their officers, directors, employees or agents guarantee or are otherwise responsible for any tax consequences to Grantee in connection with this Agreement, the Restricted Shares or the vesting or disposition thereof under any federal, state, local domestic or foreign law.

 

8.           Counterparts.

 

This Agreement may be executed in multiple original counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and. the same instrument.

 

9.           Grantee’s Other Acknowledgments.

 

 The Grantee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Agreement subject to all the terms and provisions of the Plan and this Agreement. The Grantee hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

  

  

  

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first above written.

 

COMPANY:

 

OMEGA PROTEIN CORPORATION

By:  _________________________________

Name:

Title:

 

 

GRANTEE:

 

 

________________________________________

Name

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