Document:

EXHIBIT 10.5

 

EXTENSION AGREEMENT

 

This extension agreement (the "Agreement) is made as of
June 29, 2016 by and between LATTICE INCORPORATED, a Delaware corporation ("Borrower"), and CANTONE ASSET MANAGEMENT,
LLC, a Pennsylvania limited liability company ("Lender") (collectively, the "Parties" and singularly, a "Party").

 

The Lender previously extended credit to the Borrower in the
amount of $580,000 on or about November 2, 2015 (the "Loan"). The Loan is evidenced and secured by (i) a Secured Promissory
Note dated November 2, 2015, and (ii) a Loan and Security Agreement dated November 2, 2015 (the "Loan Documents"). The
Loan is secured by a security interest in certain contracts of the Borrower. The original due date of the Note was May 2, 2016,
which was extended to July 2, 2016 by an extension agreement dated April 27, 2016 (the "Due Date"), which also increased
the principal amount of the Loan to $600,000.

 

Borrower has requested, and Lender is willing to grant, a one
hundred-twenty (120) day extension for payment of the Loan, with a new due date of November 2, 2016 (the "New Due Date"),
under the terms and conditions described below.

 

In consideration of the mutual promises contained in this Agreement,
and intending to be legally bound, the Parties agree as follows:

 

1. Representations by Borrower. The
Borrower represents as follows:

 

a) Borrower is able to pay interest on the Loan but not principal.
Lender acknowledges that Borrower has paid all interest due on the Loan as of June 2, 2016. As of the date of this Agreement, the
total principal due on the Loan is $600,000.

 

b) On the date of this Agreement, Borrower is not insolvent
and is financially able to pay interest on the Loan, as described below.

 

c) The Borrower makes no admission of default or non-compliance
under the Loan Documents. For purposes of financial statement reporting or obtaining credit, during the term of this Agreement,
if requested by Borrower, the Lender agrees to issue a statement to the effect that the Borrower is not now in default under the
Loan Documents.

 

2. Extension. Lender agrees to extend
the Due Date under the Loan Documents to the New Due Date, and to forbear from exercising any rights Lender might have under the
Loan Documents or otherwise until the New Due Date under the terms and conditions of this Agreement.

 

3. Conditions Precedent. Lender's
agreement to the New Due Date is expressly conditioned upon the timely occurrence of each of the following events:

 

a) Interest and Payments. Interest
will continue to accrue on the Loan at the rate of 14% per annum. Borrower has paid all accrued but unpaid interest on the Loans
as of June 2, 2016 upon execution of this Agreement and pay monthly interest in arrears on the 2nd of each month on the new principal
amount of $620,000 of $7,233.33 on the Loan, until principal of the Loan is fully repaid. Borrower will pay the principal and
all accrued but unpaid interest on the Loan on or before the New Due Date.

 

 

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b) If, at any time during which any indebtedness
under the Loan remains outstanding, Borrower defaults on any indebtedness owed by Borrower to any person (excluding trade payables
under $10,000.00), Borrower must give Lender written notice of such default within five (5) days. For the purposes of this Section
4(b), "default" shall have the same meaning as defined in the Loan Documents or in any loan document relating to the
indebtedness in default. Upon any such default that is not cured within five (5) days after the date of such notice (regardless
of any cure period found in the Loan Documents or any loan documents related to the indebtedness in default), the default provisions
found in the Loan Documents will apply: the Borrower will immediately issue to the Lender a certificate representing 2,500,000
shares of the Borrower's common stock as a late payment penalty and not as interest, and $50,000 shall be added to the principal
amount of the Loan and begin accruing Default interest at the Default rate of 18%.

 

c) Expenses. Borrower shall pay the
Lender's legal fee of $750.00 upon execution of this Agreement.

 

d) The Borrower shall not sell or transfer any part of the Collateral
without approval of Lender. The Borrower shall not incur any debt secured by a lien on the Collateral without prior written approval
of 100% of the members of the Borrower.

e) The principal amount of the Loan will increase to $620,000,
effective upon execution of this Agreement, to be evidenced by a new note (the "New Note") dated June 28,2016.

 

f) As
additional consideration for the Lender extending the Loan to the New Due Date, the Borrower will issue to the Lender, or to its
order, 2,000,000 shares of the Borrower's restricted common stock, to be issued as soon as practicable after the execution of
this Agreement.

 

4. Default. If Borrower causes any
event of default under the Loan Documents, the extension of the Loan under this Agreement will immediately end, and the Lender
may take any and all remedies available to the Lender under the Loan Documents for payment of principal and interest under the
Loan or hereunder.

 

5. Modifications. The Loan Documents
remain in full force and effect except as expressly modified by this Agreement. Neither this Agreement nor the Loan Documents
may be amended except by an instrument in writing signed by the Parties, their successors or assigns.

 

 

IN WITNESS WHEREOF, the Parties have signed this Extension Agreement
as of the 29th day of June, 2016.

 

 

LATTICE INCORPORATED

 

By: /s/ Paul Burgess                         

Paul Burgess, CEO

 

CANTONE ASSET MANAGEMENT, LLC:

 

By: /s/ Anthony J. Cantone                         

Anthony J. Cantone, Managing Member

 

 

 

    	 	2Exhibit 10.1

AMENDMENT NO. 2

TO

TRONOX LIMITED MANAGEMENT EQUITY INCENTIVE PLAN

 

WHEREAS, Tronox Limited (the “Company”) maintains the Tronox Limited Management Equity Incentive Plan (the “Plan”) which was amended on May 25, 2016 by Amendment No. 1.  Except as expressly set forth herein to the contrary, all capitalized terms set forth in this Amendment shall have the same meaning as ascribed to them in the Plan; and

WHEREAS, the Company desires to amend the Plan, to, among other things, prohibit the Committee to reprice Awards without the approval of the Company’s shareholders, to limit the provisions related to lapsed awards and to make certain clarifying and legal conforming changes under the Plan;

NOW, THEREFORE, the Plan is hereby amended as follows:

1.             The defined terms set forth below are hereby amended and restated to read in its entirety as follows:

“‘Award Agreement’ means the written or electronic agreement setting forth the terms and conditions applicable to an Award.”

“Good Reason” means with respect to a Participant’s Termination, the following (unless the applicable Award Agreement states otherwise): (i) the assignment of duties materially inconsistent with the Participant’s position, authority, duties or responsibilities, or a material diminution in such position, authority, duties or responsibilities, (ii) a reduction of the Participant’s aggregate annual compensation opportunity (i.e., base salary and annual bonus and incentive compensation target opportunity), and such reduction is not related to a reduction in either individual or corporate performance, (iii) a change of more than 50 miles in the Participant’s principal place of employment, or (iv) any other action or inaction that constitutes a material breach of the Plan.

2.             Subsection (i) of Section 3.2 of the Plan is hereby amended and restated to read in its entirety as follows:

“(i)        subject to Sections 6.4 and 8.4, extend the period during which an Option or SAR may be exercisable,”

3.             Subsection 3.3.1 of the Plan is hereby amended and restated to read in its entirety as follows:

 

“3.3.1    The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or any part of its authority and powers under the Plan to one or more Members of the Board of the Company and/or officers of the Company except for grants of Awards to persons (a) who are Non-Employee Directors or otherwise are subject to Section 16 of the Exchange Act or (b) who are, or who are reasonably expected to be, ‘covered employees’ for purposes of Section 162(m) of the Code; provided, however, that the Committee may not delegate its authority or power if prohibited by applicable law or the rules and regulations of the principal U.S. national securities exchange on which the Shares are listed.”

 

4.             Section 4.2 of the Plan is hereby amended and restated to read in its entirety as follows:

“4.2       Lapsed Awards.  To the extent that Shares subject to an outstanding Award have ceased to be deliverable to a Participant by reason of (i) expiration, cancellation, forfeiture or other termination of such Award, or (ii) the settlement of all or a portion of such Award in cash, then such Shares which have ceased to be deliverable by the Company shall not be counted toward the Share Reserve and shall again be available under this Plan; provided, however, that Shares surrendered in payment of the exercise price of an Option, Shares withheld or surrendered for payment of taxes with respect to any Award, and Shares repurchased by the Company on the open market with the proceeds of the exercise price of Options, shall be counted toward the Share Reserve and not be available for re-issuance under the Plan.  If SARs are exercised and settled in Shares, the full number of Shares subject to the SARs shall be considered issued under the Plan, without regard to the number of Shares issued upon settlement of the SARs.”

5.             The following is hereby added to the end of Section 5.6 of the Plan:

“Furthermore, to the extent required by applicable law (including, without limitation, Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) and the rules and regulations of the principal U.S. national securities exchange in which the Shares are listed, or if so required pursuant to a written policy adopted by the Company, and in accordance with the Company’s incentive clawback policy, originally adopted January 25, 2013 as in effect from time to time, Awards are and shall continue to be subject to clawback, forfeiture or similar requirements.”

6.             Sections 6.8 (Cashing Out of Option) and 6.9 (Certain Powers) of the Plan are hereby deleted in their entirety and each replaced with the word “Reserved.”

7.             A new Section 6.11 of the Plan is hereby added as follows:

“6.11     Prohibition on Repricing.  Notwithstanding anything in the Plan to the contrary, other than as may be permitted pursuant to Section 4.3, the Committee shall not without the approval of the Company’s shareholders (a) lower the Exercise Price of an Option after it is granted, (b) cancel an Option when the Exercise Price exceeds the Fair Market Value of one Share in exchange for cash or another Award (other than in connection with a Change in Control), or (c) take any other action with respect to an Option that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are listed.”

 

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8.             Subsection (a) of Section 7.5.5 of the Plan is hereby amended and restated to read in its entirety as follows:

“(a)       a Participant shall be entitled to receive all dividends and other distributions paid on Restricted Shares held by him or her provided, that any such dividends or other distributions shall be subject to the same vesting requirements as the underlying Share Awards and shall be accumulated and paid only at the time the Share Award becomes vested. In the case of a distribution paid other than in cash, the relevant amount shall be the value of the property distributed as at the date of the distribution, as determined by the Committee;”

9.             A new Subsection (c) of Section 7.5.5 of the Plan is hereby added as follows:

“(c)       for the avoidance of doubt, notwithstanding anything to contrary, cash dividends, stock and any other property (other than cash) distributed as a dividend, Dividend Equivalent Payment or otherwise with respect to any Award that vests based on achievement of performance goals shall either (i) not be paid or credited or (ii) be accumulated, subject to restrictions and risk of forfeiture to the same extent as the Award with respect to which such cash, stock or other property has been distributed and shall be paid at the time such restrictions and risk of forfeiture lapse.”

10.           The last sentence of Subsection 8.5.3 of the Plan is hereby deleted in its entirety.

11.           A new Section 8.8 of the Plan is hereby added as follows:

“8.8       Prohibition on Repricing.  Notwithstanding anything in the Plan to the contrary, other than as may be permitted pursuant to Section 4.3, the Committee shall not without the approval of the Company’s shareholders (a) lower the Base Price of an SAR after it is granted, (b) cancel a SAR when the Base Price exceeds the Fair Market Value of one Share in exchange for cash or another Award (other than in connection with a Change in Control) or (c) take any other action with respect to an SAR that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are listed.”

12.           Section 12.1 of the Plan is hereby amended and restated to read in its entirety as follows:

“12.1     Treatment of Awards in connection with a Change in Control. Unless provided otherwise by the Committee (as constituted prior to a Change in Control) in an Award Agreement or otherwise, or as provided in an employment agreement or similar agreement between the Company or any Subsidiary and the Participant, in the event of a Change in Control:

 

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12.1.1.   Any Options and Share Appreciation Rights outstanding as of the date such Change in Control is determined to have occurred shall be assumed by the successor (or its parent company) or cancelled in exchange for substitute options or share appreciation rights issued by the successor (or its parent company) in a manner consistent with the requirements of Treas. Reg. § 1.409A-1(b)(5)(v)(D) (or any successor regulation) in the case of a Non-Qualified Share Option, and Treas. Reg. §1.424-1(a) (or any successor regulation) in the case of an Incentive Stock Option and, if, during the 24-month period following the Change in Control date, the Participant’s employment is terminated by such successor (or an affiliate) without Cause or by the Participant for Good Reason, such Awards, to the extent then outstanding, shall fully vest and become exercisable. To the extent Options and Share Appreciation Rights that are outstanding as of the date of such Change in Control are not assumed or substituted, the Award shall, as determined by the Committee, (A) immediately become fully exercisable and vested to the full extent of the original grant, or (B) be cancelled in exchange for cash and/or other substitute consideration (if any) with respect to each Share subject to the Award as of the Change in Control date equal in value to the excess (if any) of (I) the per-Share value, as determined by the Committee in its discretion, of the property (including cash) received by the Company’s shareholders as a result of the transaction over (II) if applicable, the per-Share Exercise Price or Base Price of the applicable Award. If the value of the property (including cash) received by the holder of a Share as a result of the transaction does not exceed the per-Share Exercise Price or Base Price of the Award, the Award may be cancelled without providing any cash or other consideration to the Participant with respect to such Award.

12.1.2    Any Performance Awards outstanding as of the date such Change in Control is determined to have occurred shall be converted into, as applicable, time-based restricted stock of the successor (or its parent company) or time-based restricted stock units based on stock of the successor (or its parent company) and, if, during the 24-month period following the Change in Control date, the Participant’s employment is terminated by such successor (or an affiliate) without Cause or by the Participant for Good Reason, such Awards, to the extent then outstanding, shall fully vest. With respect to Performance Awards that are outstanding as of the date of such Change in Control and are not converted to a time-based Award, any deferral or other restriction shall lapse and such Performance Awards shall be settled in cash as promptly as is practicable (unless otherwise required by Section 409A of the Code and the applicable terms of the Performance Awards). In either case, unless otherwise determined by the Committee in an Award Agreement or otherwise, the value of the Performance Awards as of the date of the Change in Control shall be determined assuming target performance has been achieved, except that the value shall be determined based on actual performance as of such date if (A) more than half of the performance period has elapsed as of such date and (B) actual performance is determinable as of such date.

 

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12.1.3   Any other Share Awards and cash Awards outstanding as of the date such Change in Control is determined to have occurred shall be assumed by the successor (or its parent company) or cancelled in exchange for comparable awards issued by the successor (or its parent company), and, if, during the 24-month period following the Change in Control date, the Participant’s employment is terminated by such successor (or an affiliate) without Cause or by the Participant for Good Reason, such Awards, to the extent then outstanding, shall fully vest. With respect to such Awards that are outstanding as of the date of such Change in Control and are not assumed or substituted, any deferral or other restriction shall lapse and such Awards shall be settled in cash as promptly as is practicable (unless otherwise required by Section 409A of the Code and the applicable terms of the Awards).

12.1.4    For an Award to be validly assumed or substituted by a successor for purpose of this Section 12, it must (A) provide such Participant with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable under such Award, including, but not limited to, an identical or better exercise or vesting schedules; (B) have substantially equivalent value to such Award (determined at the time of the Change in Control); and (C) be based on stock that is listed and traded on an established U.S. securities market or an established securities market outside the United Stated upon which the Participants could readily trade the stock without administrative burdens or complexities.”

13.           All other terms and conditions of the Plan shall remain in full force and effect.

 

 

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