UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No.     )*

 

 

ENGlobal Corporation

(Name of Issuer)

Common Stock, $0.001 par value

(Title of Class of Securities)

293306106

(CUSIP Number)

William A. Coskey

3 Dashwood Court

The Hills, Texas 78738

Tel: (512) 351-9064

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

April 16, 2021

(Date of Event Which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ☒

 

 

Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

 

 

 

*

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


CUSIP No. 293306106      

 

  1    

  NAMES OF REPORTING PERSONS

 

  William A. Coskey

  2  

  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

  (a)  ☐        (b)  ☐

 

  3  

  SEC USE ONLY

 

  4  

  SOURCE OF FUNDS

 

  PF, OO

  5  

  CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  ☐

  6  

  CITIZENSHIP OR PLACE OF ORGANIZATION

 

  United States of America

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

     7     

  SOLE VOTING POWER

 

  0

     8   

  SHARED VOTING POWER

 

  8,840,697 (1)

     9   

  SOLE DISPOSITIVE POWER

 

  0

   10   

  SHARED DISPOSITIVE POWER

 

  8,840,697 (1)

11    

  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

  8,840,697

12  

  CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

 

  ☐

13  

  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

  32.1% (2)

14  

  TYPE OF REPORTING PERSON

 

  IN

 

(1)

The amount reported includes 8,840,597 shares of common stock, par value $0.001 per share (“Common Stock”), of ENGlobal Corporation (the “Company”) held by Alliance 2000, Ltd. (“Alliance”). As the President of BHC Management Corp., the sole general partner of Alliance, William A. Coskey may be deemed to have shared voting and/or dispositive power with respect to those shares held by Alliance. The amount reported also includes 100 shares of Common Stock of the Company jointly held by Mr. Coskey and his spouse.

(2)

Based on 27,526,176 shares of Common Stock outstanding on March 8, 2021, as reported in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2021.


CUSIP No. 293306106      

 

  1    

  NAMES OF REPORTING PERSONS

 

  Alliance 2000, Ltd.

  2  

  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

  (a)  ☐        (b)  ☐

 

  3  

  SEC USE ONLY

 

  4  

  SOURCE OF FUNDS

 

  WC, OO

  5  

  CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

  ☐

  6  

  CITIZENSHIP OR PLACE OF ORGANIZATION

 

  Texas, United States of America

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

     7     

  SOLE VOTING POWER

 

  0

     8   

  SHARED VOTING POWER

 

  8,840,597 (1)

     9   

  SOLE DISPOSITIVE POWER

 

  0

   10   

  SHARED DISPOSITIVE POWER

 

  8,840,597 (1)

11    

  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

  8,840,597

12  

  CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

 

  ☐

13  

  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

  32.1% (2)

14  

  TYPE OF REPORTING PERSON

 

  PN

 

(1)

The amount reported includes 8,840,597 shares of common stock, par value $0.001 per share (“Common Stock”), of ENGlobal Corporation (the “Company”) held by Alliance 2000, Ltd.

(2)

Based on 27,526,176 shares of Common Stock outstanding on March 8, 2021, as reported in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2021.


Preamble

This Schedule 13D supersedes the Schedule 13G as last amended by Amendment No. 3, filed on February 1, 2018 by William A. Coskey, a United States citizen, and Alliance 2000, Ltd., a Texas limited partnership.

 

Item 1.

Security and Issuer.

This Schedule 13D relates to shares of common stock, par value $0.001 per share (“Common Stock”), of ENGlobal Corporation, a Nevada corporation (the “Company”). The principal executive offices of the Company are located at 654 North Sam Houston Parkway East, Suite 400, Houston, Texas 77060.

 

Item 2.

Identity and Background.

(a) This Schedule 13D is filed jointly by William A. Coskey, a United States citizen, and Alliance 2000, Ltd., a Texas limited partnership (“Alliance”). Mr. Coskey and Alliance are referred to herein collectively as the “Reporting Persons” and individually as a “Reporting Person.”

(b) The principal business address of each of Mr. Coskey and Alliance, as well as BHC Management Corp., the sole general partner of Alliance (“BHC”), is 3 Dashwood Court, The Hills, Texas 78738.

(c) The principal business of Alliance is investments in securities and other assets. The principal occupation of Mr. Coskey is to serve as the President of BHC. Mr. Coskey also serves as a Director of the Company. The principal business of BHC is to serve as the general partner of Alliance.

(d) Neither Reporting Person, nor BHC, has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

(e) Neither Reporting Person, nor BHC, has, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining further violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

(f) Mr. Coskey is a United States citizen. Alliance is a Texas limited partnership. BHC is a Texas corporation.

 

Item 3.

Source and Amount of Funds or Other Consideration.

On August 1, 1994, the Company entered into an agreement to purchase all of the issued and outstanding shares of Industrial Data Systems, Inc., a Texas corporation, in a tax-free exchange of stock. The Company issued 4,750,000 shares of its Common Stock to Mr. Coskey in exchange for the consideration of 100,000 shares of Industrial Data Systems, Inc. The consideration for the issuance of 4,750,000 shares Common Stock of the Company to Mr. Coskey was valued at $351,131.

On October 27, 1997, Mr. Coskey and his spouse each transferred 4,750,000 shares of Common Stock of the Company to Alliance. No funds were exchanged for the transfer of these shares.

On June 16, 1998, Mr. Coskey and his spouse acquired an aggregate of 100 shares of Common Stock of the Company at the time the Company became listed with the American Stock Exchange. Mr. Coskey and his spouse purchased these shares of Common Stock using their own personal funds, for an aggregate purchase price of approximately $500.

From November 17, 2017 through December 8, 2017, Alliance acquired an aggregate of 171,662 shares of Common Stock of the Company through open market purchases. Alliance purchased these shares of Common Stock using its working capital, for an aggregate purchase price of approximately $135,615.

 

Item 4.

Purpose of Transaction.

The securities covered by this Schedule 13D were acquired for investment purposes.

Mr. Coskey currently serves on the Board of Directors of the Company. As a Director of the Company, Mr. Coskey may have influence over the corporate activities of the Company, including activities which may relate to the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.


On March 25, 2021, Alliance entered into a Rule 10b5-1 Stock Trading Plan (the “Plan”) with Goldman Sachs & Co. LLC (“GS & Co.”), relating to the sale of up to 3,000,000 shares of Common Stock of the Company. The Plan was established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Act”), and during an “open window” period as permitted by the Company’s insider trading policy. The Plan establishes predetermined trading parameters that do not permit Alliance to exercise subsequent influence over how, when or whether to effect any transactions under the Plan. The Plan will continue until the specified shares have been sold or the Plan is terminated by Alliance or GS & Co.

Except as set forth in this Item 4, none of the Reporting Persons have any present plans or proposals that relate to or that would result in any of the actions specified in clauses (a) through (j) of Item 4 of Schedule 13D of the Act. The Reporting Persons retain the right to change their investment intent, and may, from time to time, acquire additional shares of Common Stock or other securities of the Company, or sell or otherwise dispose of (or enter into plans or arrangements to sell or otherwise dispose of), all or part of the shares of Common Stock or other securities of the Company, if any, beneficially owned by them, in any manner permitted by law.

 

Item 5.

Interest in Securities of the Issuer.

(a) The Reporting Persons have the following beneficial ownership in the Company’s Common Stock:

(1) Mr. Coskey is the beneficial owner of 8,840,697 shares of Common Stock (100 shares of Common Stock jointly held by Mr. Coskey and his spouse, and 8,840,597 shares of Common Stock held by Alliance, over which he may be deemed to have shared voting and/or dispositive power as the President of BHC, the sole general partner of Alliance), which represents approximately 32.1% of the outstanding shares of Common Stock of the Company (based on 27,526,176 shares of Common Stock outstanding on March 8, 2021, as reported in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2021).

(2) Alliance is the beneficial owner of 8,840,597 shares of Common Stock (all held directly by Alliance), which represents approximately 32.1% of the outstanding shares of Common Stock of the Company (based on 27,526,176 shares of Common Stock outstanding on March 8, 2021, as reported in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2021).

(b)

 

     Shared
Voting
Power
     Sole
Voting
Power
     Shared
Dispositive
Power
     Sole
Dispositive
Power
 

William A Coskey

     8,840,697        0      8,840,697        0  

Alliance 2000, Ltd.

     8,840,597        0        8,840,597        0  

(c) None of the Reporting Persons has acquired or disposed of any securities of the Company during the 60 days prior to the filing of this Schedule 13D.

(d) Except as set forth herein, no other person is known by the Reporting Persons to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, Common Stock beneficially owned by the Reporting Persons.

(e) Not applicable.

 

Item 6.

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

Pursuant to Rule 13d-1(k) promulgated under the Act, the Reporting Persons entered into a Joint Filing Agreement (the “Joint Filing Agreement”) with respect to the joint filing of this Schedule 13D and any amendment or amendments hereto. The foregoing description of the Joint Filing Agreement does not purport to be complete and is qualified in its entirety by the contents of the Joint Filing Agreement, a copy of which is attached hereto as Exhibit 1 and is incorporated herein by reference.


As disclosed in Item 4 of this Schedule 13D, on March 25, 2021, Alliance entered into the Plan with GS & Co., relating to the sale of up to 3,000,000 shares of Common Stock of the Company. The Plan was established in accordance with Rule 10b5-1 under the Act, and during an “open window” period as permitted by the Company’s insider trading policy. The Plan establishes predetermined trading parameters that do not permit Alliance to exercise subsequent influence over how, when or whether to effect any transactions under the Plan. The Plan will continue until the specified shares have been sold or the Plan is otherwise terminated by Alliance or GS & Co. The foregoing description of the Rule 10b5-1 Plan does not purport to be complete and is qualified in its entirety by the contents of the Plan, a copy of which is attached hereto as Exhibit 2 and is incorporated herein by reference.

 

Item 7.

Material to be Filed as Exhibits.

 

Exhibit

  

Description

1    Joint Filing Agreement, dated as of April 16, 2021 by and between the Reporting Persons.
2    Rule 10b5-1 Stock Trading Plan, dated as of March 25, 2021, by and between Alliance 2000, Ltd. and Goldman Sachs & Co. LLC.


SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: April 16, 2021

 

/s/ William A. Coskey

William A. Coskey
Alliance 2000, Ltd.
By: BHC Management Corp., its general partner
By:  

/s/ William A. Coskey

Name:   William A. Coskey
Title:   President

EXHIBIT 1

JOINT FILING AGREEMENT

In accordance with Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of a statement on Schedule 13D (including amendments thereto) with respect to shares of common stock, $0.001 par value per share, of ENGlobal Corporation, a Nevada corporation, and further agree that this Joint Filing Agreement be included as an Exhibit to such joint filings.

In evidence thereof, the undersigned, being duly authorized, have executed this Joint Filing Agreement this 16th day of April, 2021.

 

/s/ William A. Coskey

William A. Coskey
Alliance 2000, Ltd.
By: BHC Management Corp., its general partner
By:  

/s/ William A. Coskey

Name:   William A. Coskey
Title:   President

EXHIBIT 2

RULE 10B5-1 STOCK TRADING PLAN

 

LOGO

 

   10b5-1 Plan

 

 

STOCK TRADING PLAN

This Stock Trading Plan (the “Plan”) is entered into between the parties below for the purpose of establishing a trading plan that complies with the requirements of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended (the

Exchange Act”). “Broker” shall mean Goldman Sachs & Co. LLC.

Referred to hereinafter, individually and collectively, as the “Client”:

 

 

Alliance 2000, Ltd.

 

   

 

    

 

 

   

 

Referred to hereinafter as the “Issuer”:    ENGlobal Corporation
                                 Bloomberg Ticker:    ENG

 

Issuer is a shell company or former shell company (as defined under Rule 144(i)(1)). If this box is checked, refer to ANNEX C.

 

Goldman Sachs entity (“GS Entity”):       Goldman Sachs & Co. LLC (“GS & Co.”)
      Goldman Sachs (Asia) LLC (“GSALLC”)
      Goldman Sachs (Singapore) Pte (“GSSP”)
      Goldman Sachs International (“GSI”)
      Goldman Sachs Bank AG (“GSBZ”)
      Goldman Sachs Bank Europe SE (“GSBE”)

GS Entity will be responsible for effecting one or more transactions in Client’s securities (the “Shares”) pursuant to the terms and conditions set forth below. The Client hereby authorizes GS Entity to execute and act through and/or arrange for one or more of its affiliates (as defined in Rule 405 under the Securities Act of 1933, as amended), including without limitation, the Broker in effecting the terms of the Plan.

 

Transaction Side:       Sale       Purchase
Section 16 Insider of Issuer:       Yes       No

 

Total Number of Plan Shares:   

3,000,000

 

    Plus additional number of shares to be determined according to ANNEX A

 

Plan Adoption Date:   

March 25 , 2021

 

First Trade Date:   

                    

 

Plan End Date:   

July 29, 2022

 

 

For GS Entity Only:
Client Account Number(s):  

 

Rep Code:       hou-2676      , Commission:               6               cents per share, or                                              bps / with a minimum of                                                  

 

 

 

      

 


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   10b5-1 Plan

 

CONTINUED

 

IN WITNESS WHEREOF, the undersigned have executed this Plan as of the date written by Client below.

By signing the Plan, Client confirms that Client has read and understands all terms and conditions of the Plan, inclusive of the applicable Trade Schedules and Annexes, and agrees to be bound by such terms and conditions, and gives all the applicable representations, warranties and covenants contained herein.

ALLIANCE 2000, LTD.

 

Signed:

X

/s/ William A. Coskey

    Print Name: William A. Coskey

Title: General Partner,

President

BHC Management Corp.

   

Date:

                March 25, 2021

 

Signed:

X

/s/ Hulda L. Coskey

    Print Name: Hulda L. Coskey

Title: General Partner

Vice President

BHC Management Corp.

   

Date:

                March 25, 2021

GS ENTITY

 

Signed:

X

/s/ Justin Tobe

   

Print Name:

            Justin Tobe

Title: Managing Director    

Date:

                3/26/21

 

Client and GS Entity acknowledge and agree that Issuer is not a party to the Plan.

Issuer acknowledges receipt of a copy of the Plan and has concluded that the Plan, assuming the transactions of Shares are executed in accordance with the terms and conditions hereof, does not violate any policy or trading restriction of the Issuer, including the Issuer’s Insider Trading Policy.

ISSUER

 

Signed:

X

/s/ Mark A. Hess

   

Print Name:

            Mark A. Hess

Title: CEO    

Date:

    3/26/21

 

 

 

 

      

 


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   10b5-1 Plan

 

CONTINUED

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

Client represents and warrants to, and agrees with, the GS Entity and Broker as follows:

 

1.1

As of the date hereof, Client is not aware of any material nonpublic information concerning Issuer or its securities, and is not subject to any legal, regulatory, or contractual restriction or undertaking that would prevent GS Entity and/or its affiliates from acting upon the instructions set forth in the Plan. Client is entering into the Plan in good faith and not as part of a plan or scheme to evade compliance with the federal or state securities laws.

 

1.2

Client has not entered and will not enter into or alter any corresponding or hedging transaction or position with respect to the securities covered by the Plan (including, without limitation, with respect to any securities convertible or exchangeable into the Shares).

 

1.3

Client acknowledges GS Entity and/or one of its affiliates, as applicable, may make a market in the Shares and will continue to engage in market-making activities while executing transactions on behalf of Client pursuant to the Plan.

 

1.4

Client does not have, and shall not attempt to exercise, any influence over how, when, or whether to effect transactions of Shares pursuant to the Plan and Client shall not discuss with GS Entity and its affiliates the timing of the transactions of Shares other than to confirm the trading instructions and describe them if necessary.

 

1.5

Client agrees to inform GS Entity as soon as possible of any of the following:

 

  a.

Any subsequent restrictions imposed on Client due to changes in the securities (or other) laws or due to other restrictions, regulatory or otherwise, or of any contractual or other restrictions imposed on Issuer that would prevent GS Entity and/or its affiliates or Client from complying with the Plan, and

 

  b.

The occurrence of any event as set forth in the Plan that would cause the Plan to be suspended or terminated under 3.4 or 3.5 of the Plan, respectively.

 

1.6

Client has consulted with Client’s own advisors as to the legal, tax, business, financial and related aspects of, and has not relied upon GS Entity or its affiliates, or any person affiliated with GS Entity and/or its affiliates in connection with, Client’s adoption and implementation of the Plan.

 

1.7

Other than any requirements set forth herein under 2.1 of the Plan, there are no contractual, regulatory, or other restrictions applicable to the sales of Shares contemplated under the Plan that would interfere with GS Entity’s or Broker’s ability to execute sales and effect delivery and settlement of such sales on behalf of Client, other than restrictions with respect to which the Client has obtained (and provided to GS Entity and Broker) all required consents, approvals and waivers; Client has, or will have , good, valid and marketable title to the Shares to be sold under the Plan, free and clear of all liens, encumbrances or adverse claims.

 

1.8

Client is solely responsible for, and will make, any required filing under Sections 13(d) or 13(g) of the Exchange Act.

 

1.9

Client shall notify Broker immediately in the event that any of the above representations or warranties become inaccurate or untrue, or Client fails to comply with any covenant, prior to the termination of this Plan.

 

      

 


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   10b5-1 Plan

 

CONTINUED

 

COMPLIANCE WITH RULE 144

 

2.1

Client understands and agrees that if Client is or becomes an affiliate or control person for purposes of Rule 144 under the Securities Act of 1933, as amended (“Securities Act”), or if the Shares subject to the Plan are restricted securities subject to limitations under Rule 144, then all sales of Shares under the Plan will be made in accordance with the applicable provisions of Rule 144.

 

  a.

Client requests and authorizes GS Entity to complete and file on Client’s behalf any Forms 144 (signed by Client) necessary to effect sales under the Plan.

 

  b.

If appropriate, Client understands and agrees that, upon Client’s prompt execution and delivery to GS Entity of Form 144, GS Entity will either: (i) make one Form 144 filing at the beginning of each three-month period commencing with the date of the first sale made in connection with the Plan or (ii) file a Form 144 for each sale made in connection with the Plan.

 

  c.

Each Form 144 shall state the following: “The sales of shares set forth herein are made in connection with a selling plan dated [the Plan’s adoption date] that is intended to comply with Rule 10b5-1(c). The representation below regarding the seller’s knowledge of material information was true as of the date the selling plan was entered into.”

 

  d.

GS Entity or one of its affiliates will conduct sales pursuant to the manner of sale requirements of Rule 144(f) and/or (g) if appropriate, and complying with the Rule 144(e) volume limitations as if the sales under the Plan were the only sales subject to the volume limitations.

 

  e.

Client agrees not to take any action or to cause or to permit any other person or entity to take any action that would require Client to aggregate sales of Shares subject to the Plan with any other sales of shares as may be required by Rule 144; and not to take any action that would cause the sales of Shares under the Plan not to comply with Rule 144.

 

      

 


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   10b5-1 Plan

 

CONTINUED

 

PLAN TERMS AND CONDITIONS

 

3.1

Execution, Average Pricing, and Pro Rata Allocation of Transactions

 

  a.

GS Entity will deem all orders as day orders only and not held. A “not held” order permits GS Entity to use reasonable judgment, exercising price and time discretion, as to when to execute the order.

 

  b.

GS Entity or one of its affiliates, as applicable, may execute Client’s order: (i) in a single transaction or multiple transactions during the course of the day, and/or (ii) in aggregate with other orders of Issuer’s securities that may or may not have been adopted pursuant to a Rule 10b5-1 plan.

 

3.2

In the event of a stock split or reverse stock split, the quantity and price at which the Shares are to be transacted will be adjusted proportionately.

 

3.3

In the event of a reincorporation or other corporate reorganization resulting in the substitution of other securities for the Shares, then the new securities will automatically replace the shares originally specified in the Plan.

 

3.4

Suspension: Transactions of Shares pursuant to the Plan shall be suspended where:

 

  a.

Trading of the Shares on the principal exchange or market on which the Shares trade is suspended for any reason;

 

  b.

GS Entity or one of its affiliates, in its sole discretion, determines that there is a legal, regulatory, or contractual reason why it cannot effect transactions of Shares pursuant to the Plan; or

 

  c.

GS Entity or one of its affiliates is notified in writing by Issuer, or by Client with the written acknowledgement of Issuer, that a transaction of Shares should not be effected due to legal, regulatory, or contractual restrictions applicable to Issuer or to Client (including, without limitation, Regulation M).

In the case of the occurrence of an event described in 3.4a. or 3.4b. above, GS Entity will resume transactions in accordance with the Plan when, in its sole discretion, GS Entity determines that transactions may resume.

In the case of the occurrence of an event described in 3.4c. above, GS Entity will resume transactions in accordance with the Plan as promptly as practicable after GS Entity receives notice in writing by Issuer, or by Client with the written acknowledgement of Issuer, that transactions may resume.

 

3.5

Client understands that GS Entity or Broker may be unable to effect sales under the Plan consistent with ordinary principles of best execution due to insufficient volume of trading, failure of the Shares to reach and sustain a limit order price, or other market factors in effect on the date of a sale.

Shares allocated under the Plan during a period that has elapsed due to a suspension arising from an event described in 3.4a., 3.4b., or 3.5.:

will carry forward as follows, in accordance with instructions described in, and assuming that orders related to such Shares did not expire pursuant to, ANNEX A

to the first trading day following such suspension

to be grouped with the following amount of shares in the next Trade Date

other:                                                                                                                                                                                                                      

will not carry forward and shall be cancelled

For the avoidance of doubt, all orders related to sales scheduled to be effected during a suspension arising from an event described in 3.4c. shall be deemed to be cancelled, and shall not be effected pursuant to this Plan.

 

3.6

Termination: The Plan shall terminate on the earliest to occur of the following:

 

  a.

The termination date specified in ANNEX A;

 

  b.

The completion of all transactions in ANNEX A;

 

  c.

GS Entity’s reasonable determination that: (i) the Plan does not comply with Rule 10b5-1(c) or other applicable laws, (ii) Client has not complied with the Plan, or (iii) Client’s representations or warranties are not true and correct, or Client can no longer make such representations and warranties;

 

      

 


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   10b5-1 Plan

 

CONTINUED

 

 

  d.

GS Entity receives notice of the death, dissolution, liquidation, bankruptcy, or insolvency of Client or Issuer, as applicable;

 

  e.

GS Entity receives notice of the closing of a merger, recapitalization, acquisition, tender or exchange offer, or other business combination or reorganization resulting in the exchange or conversion of Shares of Issuer into shares of another company;

 

  f.

The stock of Issuer is no longer listed on a national securities exchange; or

 

  g.

GS Entity receives notice in writing of termination of the Plan from Client substantially in the form of ANNEX B, with the written acknowledgement of Issuer.

 

3.7

Amendment: The Plan may be amended only in writing entered into by Client and GS Entity, and acknowledged in writing by Issuer:

 

  a.

at a time when Client is otherwise permitted to effect transactions under Issuer’s trading policies, and does not possess material non-public information about Issuer or its securities, and

 

  b.

such amendment is consistent with Issuer’s policies and trading restrictions, including the Issuer’s insider trading policy.

Client understands Plan amendments may bring into question the “good faith” aspect of Rule 10b5-1(c) and such instructions to amend a previously adopted trading plan could potentially jeopardize the affirmative defense described thereunder.

 

3.8

This Plan modifies and supplements any client agreement with the GS Entity (“Client Agreement”), solely for the purpose of effecting this Plan in accordance with the terms herein. In all other respects, the terms and conditions of such Client Agreement shall continue to govern the relationship with the GS Entity. Capitalized terms used in this Plan and not otherwise defined herein shall have the meanings specified in the Client Agreement. In the event of any inconsistency between the provisions of this Plan and the Client Agreement, this Plan shall prevail to the extent of such inconsistency.

 

3.9

Indemnification

Client agrees that GS Entity and its affiliates and their respective directors, officers, employees, and agents (collectively, “GS Persons”) shall not have any liability whatsoever to Client for any action taken or omitted to be taken in connection with the Plan, any transaction under the Plan, or any amendment, modification, or termination of the Plan, unless such liability is determined in a non-appealable order of a court of competent jurisdiction to have resulted solely from the gross negligence, willful misconduct, or bad faith of the GS Person. Client further agrees to hold each GS Person free and harmless from any and all losses, damages, liabilities, or expenses (including reasonable attorneys’ fees and costs) incurred or sustained by such GS Person in connection with or arising out of any suit, action, or proceeding relating to the Plan, any transaction under the Plan, or any amendment, modification, or termination of the Plan (each an “Action”) and to reimburse each GS Person for its expenses, as they are incurred, in connection with any Action, unless such loss, damage, liability, or expense is determined in a non-appealable order of a court of competent jurisdiction to be solely the result of such GS Person’s gross negligence, willful misconduct, or bad faith. This 3.9 shall survive termination of the Plan.

 

3.10

Where GSBZ is checked as the GS Entity on page 1, for the purpose of this Plan and any Transaction entered into hereunder, Client hereby explicitly authorizes GSBZ to communicate, forward any information and materials obtained from Client, or related to Client, including certain personal data relating to Client, beneficial owners, authorized signatories and other authorized persons on the account, to GSI, GSBE, Broker or their respective affiliates as is suitable. Client hereby release GSBZ from all statutory or contractual secrecy obligations (including Swiss banking secrecy, securities dealers’ secrecy, financial privacy and/or data protection) with respect to the matters set forth above. Client agrees to the processing, storage and/or transfer of such data and understands and acknowledges that the affiliates of GSBZ are established in jurisdictions outside Switzerland that may not have data protection laws that afford an equivalent protection.

Where GSBE is checked as the GS Entity on page 1, for the purpose of this Plan and any Transaction entered into hereunder, Client hereby explicitly authorizes GSBE to communicate, forward any information and materials obtained from Client, or related to Client, including certain personal data relating to Client, beneficial owners, authorized signatories and other authorized persons on the account, to GSI, Broker or their respective affiliates as is suitable. Client hereby release GSBE from all statutory or contractual secrecy obligations (including applicable banking secrecy, securities dealers’ secrecy, financial privacy and/or data protection) with respect to the matters set forth above. Client agrees to the processing, storage and/or transfer of such data and understands and acknowledges that the affiliates of GSBE are established in jurisdictions that may not have data protection laws that afford an equivalent protection.

 

      

 


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3.11

Governing Law

 

  a.

Subject to sub-paragraph (b) below, this Plan and each transaction entered into hereunder will be governed by, and construed and enforced in accordance with, the law of the State of New York without reference to its choice of law doctrine.

 

  b.

Notwithstanding the foregoing where this Plan is entered into between Client and:

 

  (i)

GSI, GSALLC or GSSP as GS Entity, this Plan and all non-contractual obligations arising out of or in relation to this Plan shall be governed by, and construed and enforced in accordance with, English law;

 

  (ii)

GSBE as GS Entity, this Plan and all non-contractual obligations arising out of or in relation to this Plan shall be governed by and construed in accordance with the governing law of the Client Agreement; or

 

  (iii)

GSBZ as GS Entity, this Plan is subject to Swiss law and in particular to Swiss mandate law according to art. 394 ss. of the Swiss Code of Obligations. For the avoidance of doubt the choice of Swiss law extends to the issues covered by the Hague Convention on the Law applicable to certain Rights in respect of Securities held with an Intermediary of 5 July 2006 (Hague Securities Convention). Place of performance, place for debt enforcement and collection proceedings for Client and venue for all proceedings is Zurich, Switzerland. GSBZ is, however, entitled to take legal action against the Client before any competent court or administrative authority in Switzerland or abroad. Swiss law shall also be applicable in such cases, provided that, all terms and phrases which are used in this Plan and which expressly refer to statutory provisions of the United States of America or any state thereof shall be governed by and construed in accordance with the federal laws of the United States of America and the law of the State of New York without regard to the choice of law provisions thereof.

 

      

 


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NOTICES

All notices to GS Entity under the Plan shall be provided in writing, and confirmed by telephone as follows:

Notices may also be sent via e-mail as follows, provided each of the Issuer and Client agrees not to communicate material non-public information in such e-mail notice:

 

Team e-mail:    
   

 

                                with further notice to:

All notices to Client under the Plan shall be provided in writing (including email) to:

 

Name:      Fax:   
 

 

     

 

Title:      Tel:   
 

 

     

 

Organization:      E-mail:   
 

 

     

 

All notices to Issuer under the Plan shall be provided in writing (including email) to:

 

Name:      Fax:   
 

 

     

 

Title:      Tel:   
 

 

     

 

Organization:      E-mail:   
 

 

     

 

All notices shall be effective when delivered if delivered by hand, on the next business day if delivered by overnight courier and otherwise when the notice is received.

If Client is subject to the reporting requirements of Section 16 of the Exchange Act:

 

  a.

Client understands that commercially reasonable efforts will be made to transmit transaction information for open market transactions under the Plan by close of business on the day of the transaction, but no later than the close of business on the first trading day following the transaction, to the attention of the contact names at the e-mail addresses provided below:

 

 

Contact Name

 

  

 

Firm / Company

  

 

E-mail Address

    

    

    

         

    

    

    

         

    

    

    

         

 

  b.

Client acknowledges that neither Broker nor its affiliates shall have responsibility or liability for filing a Form 4 with the SEC.

 

      

 


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ANNEX B

TERMINATION NOTICE

 

cc:    [Issuer]
To:    [GS Entity],

This notice hereby serves as my termination notice of the Plan, adopted on [Plan Adoption Date], to [buy/sell] shares of [Issuer]. I confirm that (a) I am terminating the Plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1, and (b) [Issuer] has reviewed, and not objected to, this termination notice.

 

Regards,
[Client Signature]
Print Name:
[Title: (if applicable)]

The undersigned Issuer confirms receipt of a copy of the Termination Notice, and that it has reviewed and does not object to the Termination Notice.

 

[Issuer]
[Issuer Signature]
Print Name:
Title:

 

      

 


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ANNEX C

ISSUER’S ADDITIONAL CONSIDERATIONS

If the foregoing is true, Issuer represents and warrants that it has filed with the Securities Exchange Commission the “Form 10 Information” as defined in Rule 144(i)(3), and agrees to use commercially reasonable efforts to provide notice to GS Entity in the event Issuer fails to comply with the timely filing of any quarterly or annual reports required by the SEC (“Periodic Reports”), and GS Entity shall terminate the Plan upon receipt of such notice. Without limiting the generality of the exculpation and indemnity provided in 3.9, Client understands and agrees that GS Entity and GS Persons will not be liable or responsible for (i) any sales that fail to comply with Rule 144 due to Issuer’s status as a company described in Rule 144(i)(1) or (ii) any sales that fail to comply with Rule 144 due to a delay or failure by Issuer in the timely filing of Periodic Reports.

ISSUER

 

Signed:     Print Name:

X

 

     
Title:     Date: