Amendment to Letter Agreement Regarding Acquisition Look Back for Employment Agreement (APL – Spectrum Acquisition)

Contract Categories: Human Resources › Employment Agreements
Summary

This amendment to a letter agreement outlines the calculation method for an acquisition-related incentive under an employment agreement, specifically for the APL – Spectrum Acquisition. It details how the incentive is determined based on distributed cash flow, yield, and unit price, resulting in the issuance of a specific number of units as compensation. The agreement involves the parties to the original employment agreement and clarifies the financial metrics and formula used to calculate the incentive award.

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EX-10.5B 6 dex105b.htm AMENDMENT TO LETTER AGREEMENT Amendment to Letter Agreement

Exhibit 10.5(b)

Exhibit A

APL – Spectrum Acquisition

Acquisition Look Back Example For Employment Agreement

 

Most recent quarterly distribution

      0.63  

Multiplied by four

      4  
        

Annualized distribution

    $ 2.52  

Closing price of APL common unit on 12/31/2008

    $ 38.00  

Yield (distribution/Closing price)

      7.20 %

Distributed Cash Flow generated by acquisition during the 12 months ended 12/31/2008

    $ 10,000,000  

Imputed Value (Dist Cash Flow / Yield)

    $ 138,888,889  

Incentive %

      1.50 %

Incentive amount (Imputed value * Incentive %)

    $ 2,083,333  

# of units issued (Incentive amount / unit price)

      59,524