Document:

EXHIBIT 10.1

 

AMENDMENT TO THE ORLEANS
HOMEBUILDERS, INC. 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(Amended and Restated,
Effective as of September 27, 2007)

 

Orleans Homebuilders, Inc.,
a Delaware corporation (“Employer”), hereby adopts this amendment to the
Orleans Homebuilders, Inc. Supplemental Executive Retirement Plan (“Plan”).  This amendment is adopted pursuant to Section 10.1
of the Plan.

 

BACKGROUND:

 

The Employer has been the
sponsor of the Plan since September 1, 2005.  The Employer amended and restated the Plan on
September 27, 2007, which included provisions to comply with Section 409A
of the Internal Revenue Code of 1986, as amended. The Plan had been intended to
provide lifetime retirement benefits to a key management or highly compensated
employee who becomes a participant and who earns and vests in a retirement
benefit.  No participant has accrued a
retirement benefit or suffered a “Disability,” as defined in the Plan, as of
the effective date of this Amendment.  In
addition, the Plan provides a death benefit to an eligible participant who dies
while employed by the Employer.  The
Employer desires to amend the Plan to terminate, effective on and after June 30,
2009 (“Effective Date”), all benefits under the Plan other than the death
benefit, and to rename the Plan the “Orleans Homebuilders, Inc. Executive
Survivor Benefit Plan.”  As amended, this
Plan is intended to be a “death benefit plan” that is not subject to Code Section 409A.

 

NOW, THEREFORE, the Employer
hereby amends the Plan as follows:

 

1.             Section 5 of the Plan entitled: “Retirement
Benefit,” all subsections thereunder, and all of the Plan’s definitions and
other provisions to the extent needed to implement the provisions of Section 5,
are hereby deleted and, notwithstanding anything in the Plan to the contrary,
no benefits described therein shall be payable pursuant to this Plan, paid by
the Employer or accrued with regard to any participation in the Plan before, or
on or after, June 30, 2009.

 

2.             Section 7 of the Plan entitled: “Disability Benefit
and Authorized Leave of Absence,” all subsections thereunder, and all of the
Plan’s definitions and other provisions to the 

 

 

extent needed to implement the provisions of Section 7
are hereby deleted and notwithstanding anything in the Plan to the contrary, no
benefits described therein shall be payable pursuant to this Plan, paid by the
Employer or accrued with regard to any participation in the Plan before, or on
or after, June 30, 2009.

 

3.             Section 6 of the Plan entitled: “Pre-Retirement
Survivor Benefit,” all of the Plan’s definitions and other provisions to the
extent needed to implement the provisions of Section 6 shall continue in
full force and effect subject to the reserved right of the Employer to amend or
terminate the Plan at any time in its sole discretion without notice to any
Participant.  In the event that an amount
becomes payable under Section 6, the initial payment shall be made no
later that the end of the calendar year during which the Participant’s death
occurs and each installment payment shall be made no later than the end of the
calendar year during which the applicable anniversary of the Participant’s
death occurs.

 

4.             Section 11.13 of the Plan entitled: “Special
Provisions on the Occurrence of a Change in Control,” all of the Plan’s
definitions and other provisions to the extent needed to implement the
provisions of Section 11.13 are hereby deleted and notwithstanding
anything in the Plan to the contrary, no benefits described therein shall be
payable pursuant to this Plan, paid by the Employer or accrued with regard to
any participation in the Plan before, or on or after, June 30, 2009.

 

5.             This Plan shall be renamed:  the “Orleans Homebuilders, Inc.
Executive Survivor Benefit Plan.”

 

6.             This Amendment shall be effective on June 30, 2009
and with regard to all periods on and after such date.

 

2

 

IN WITNESS WHEREOF, and as
evidence of the adoption of this Amendment, the Employer has caused the same to
be executed this 29th day of June, 2009.

 

	
   

  	
  ORLEANS
  HOMEBUILDERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  Michael
  T. Vesey

  
	
   

  	
  Title: 

  	
  President

  

 

3Exhibit 10.1

 

THE SHARES RECEIVED
PURSUANT TO THIS STOCK OPTION SHALL BE SUBJECT TO THE RIGHTS, RESTRICTIONS, AND
OBLIGATIONS APPLICABLE TO SUCH SECURITIES, ALL AS PROVIDED IN THE SHAREHOLDERS
AGREEMENT DATED AS OF JUNE 12, 2006 BETWEEN THE COMPANY AND ITS SHAREHOLDERS,
AS AMENDED AND IN EFFECT FROM TIME TO TIME (THE “SHAREHOLDERS AGREEMENT”).

 

Performance Stock
Option

 

Granted Under

 

Cellu Parent
Corporation

2006 Stock Option
and Restricted Stock Plan

 

1.                                      Grant of Option.

 

This certificate
evidences an performance stock option (this “Stock Option”) granted by Cellu
Parent Corporation,  a Delaware
corporation (the “Company”), on April 13, 2009, to David Morris, an
employee of the Company or its subsidiaries (the “Participant”) pursuant to the
Company’s 2006 Stock Option and Restricted Stock Plan (as from time to time in
effect, the “Plan”).  Under this Stock
Option, the Participant or the Participant’s permitted transferee may purchase,
in whole or in part, on the terms herein provided, up to 723 shares of common
stock of the Company (the “Shares”), (the exact number of shares to be
determined according to the cash return conditions set forth below) at $883.27
per Share, which is not less than the fair market value of the Shares on the
date of grant.  The latest date on which
this Stock Option, or any part thereof, may be exercised is April 13, 2019
(the “Final Exercise Date”).  The Stock
Option evidenced by this certificate is intended to be an incentive stock
option as defined in section 422 of the Internal Revenue Code of 1986, as
amended from time to time (the “Code”).

 

This Stock Option is
exercisable in the following circumstances prior to the Final Exercise Date:

 

(a)          340
shares may be earned and vest if the majority owner, Weston Presidio, realizes
a return of 2.5 times its total cash investment in the Company (as determined
by the amount of its investment as of April 13, 2009) at the time of a
sale or any other transfer for value, which also shall include the earning and
vesting of a pro rata percentage in the event of sale or any transfer for value
of less than all its ownership for a 2.5 times multiple; and

 

(b)         an additional 102 shares (for a total of 442 shares)
may be earned and vest if the majority owner, Weston Presidio, realizes a
return of 2.75 times its total cash investment in the Company (as determined by
the 

 

 

amount of its investment
as of April 13, 2009) at the time of a sale or any other transfer for
value, which also shall include the earning and vesting of a pro rata
percentage in the event of sale or any transfer for value of less than all its
ownership for a 2.75 times multiple; and

 

(c)          an additional 77 shares (for a total of 519
shares) may be earned and vest if the majority owner, Weston Presidio, realizes
a return of 3.00 times its total cash investment in the Company (as determined
by the amount of its investment as of April 13, 2009) at the time of a
sale or any other transfer for value, which also shall include the earning and
vesting of a pro rata percentage in the event of sale or any transfer for value
of less than all its ownership for a 3.00 times multiple; and

 

(d)         an additional 102 shares (for a total of 621
shares) may be earned and vest if the majority owner, Weston Presidio, realizes
a return of 3.25 times its total cash investment in the Company (as determined
by the amount of its investment as of April 13, 2009) at the time of a
sale or any other transfer for value, which also shall include the earning and
vesting of a pro rata percentage in the event of sale or any transfer for value
of less than all its ownership for a 3.25 times multiple; and

 

(e)          an additional 102 shares (for a total of
723 shares) may be earned and vest if the majority owner, Weston Presidio,
realizes a return of 3.5 times its total cash investment in the Company (as
determined by the amount of its investment as of April 13, 2009) at the
time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any
transfer for value of less than all its ownership for a 3.5 times multiple.

 

Notwithstanding the
foregoing, upon termination of the Participant’s Employment, any portion of
this Stock Option that is not then exercisable shall immediately expire and the
remainder of this Stock Option shall remain exercisable for a period equal to
the lesser of (1) thirty days (30) or (2) the period ending on the
latest date this Stock Option could have been exercised without regard to
clause (1), and shall then expire and terminate; provided,
that if the Administrator in its sole discretion determines that such cessation
of the Participant’s Employment has resulted for reasons which constitute cause
for termination of employment, this entire Stock Option shall expire and
terminate immediately upon termination of Employment and no portion thereof
shall thereafter remain exercisable; further provided,
that any portion of this Stock Option that is outstanding immediately prior to
the Participant’s death, to the extent then exercisable, will remain
exercisable for a period equal to the lesser of (1) one year following the
Participant’s death or (2) the period ending on the latest date this Stock
Option could have been exercised without regard to clause (1), and shall then
expire and terminate; and further provided,
that in no event shall any portion of this Stock Option be exercisable after
the Final Exercise Date.

 

 

For purposes of
this Stock Option, cause for termination shall be defined as (i) the
Participant’s repeated and willful refusal or failure (other than during
periods of illness, disability or vacation) to perform the Participant’s duties
hereunder or under any lawful directive of the Board; (ii) the Participant’s
willful misconduct or gross neglect in the performance of the Participant’s
duties hereunder which in either case is materially injurious to the Company or
any of its Subsidiaries, monetarily or otherwise; (iii) the conviction of
the Participant of any felony or any other crime involving dishonesty or moral
turpitude or the Participant’s pleading guilty to any felony, other than motor
vehicle offenses, or
any other crime involving dishonesty or moral turpitude; (iv) the commission of fraud, embezzlement,
theft or other dishonesty by the Participant with respect to the Company or any
of its Affiliates; (v) any other conduct that involves a breach of fiduciary
obligation on the part of the Participant or otherwise could reasonably be
expected to have a material adverse effect upon the business, interests or
reputation of the Company or any of its Affiliates; or (vi) a previous
employer of Participant shall commence against Participant and/or Company an
action, suit, proceeding or demand arising from an alleged violation of a
non-competition or other similar agreement between Participant and such
previous employer.

 

No
act, or failure to act, on the Participant’s part, will be considered “willful”
unless done or omitted to be done by Participant not in good faith and without
a reasonable belief that the Participant’s action or omission was in
furtherance of the Company’s business.

 

2.                                      Exercise of Stock Option.

 

Each
election to exercise this Stock Option shall be in writing, signed by the
Participant or the Participant’s permitted transferee (the “Option Holder”),
and received by the Company at its principal office, accompanied by this
certificate and payment in full as provided in the Plan.  Subject to the further terms and conditions
provided in the Plan, the purchase price may be paid as follows:  (i) by delivery of cash or check acceptable
to the Administrator; (ii) upon and following an initial public offering
of the Company, through a broker-assisted exercise program acceptable to the
Administrator; (iii) if so permitted by the Administrator, through the
delivery of Shares that have been outstanding for at least six months (unless
the Administrator approves a shorter period) and that have a fair market value
equal to the exercise price); (iv) if so permitted by the Administrator,
by delivery to the Company of a promissory note of the person exercising this
Stock Option, payable on such terms as are specified by the Administrator; or (v) through
any combination of the foregoing.  In the
event that this Stock Option is exercised by an Option Holder other than the
Participant, the Company will be under no obligation to deliver Shares
hereunder unless and until it is satisfied as to the authority of the Option
Holder to exercise this Stock Option.

 

3.                                      Restrictions on Transfer of Shares.

 

The
granting of this Stock Option and the issuance of Shares received under this
Stock Option shall be subject to the Plan and the Shareholders Agreement,
and the issuance of this Award shall be conditional upon the execution and
delivery by the undersigned of the Shareholders Agreement.  Any Shares received under this Award shall be
subject to the 

 

 

rights,
restrictions and obligations applicable to options and shares of Stock of the
Company as provided from time to time in such Shareholders Agreement.

 

If at the time this Stock
Option is exercised the Company or any of its stockholders is a party to any
other agreement restricting the transfer of any outstanding shares of the
Company’s common stock, the Administrator may provide that this Stock Option
may be exercised only if the Shares so acquired are made subject to the
transfer restrictions set forth in that agreement (or if more than one such
agreement is then in effect, the agreement or agreements specified by the
Administrator).

 

4.                                      Withholding; Agreement to Provide
Security.

 

If at the time this Stock
Option is exercised the Company determines that under applicable law and
regulations it could be liable for the withholding of any federal or state tax
upon exercise or with respect to a disposition of any Shares acquired upon
exercise of this Stock Option, this Stock Option may not be exercised unless
the person exercising this Stock Option remits to the Company any amounts
determined by the Company to be required to be withheld (or makes other
arrangements satisfactory to the Company for the payment of such taxes).

 

5.                                      Nontransferability of Stock Option.

 

This Stock Option is not
transferable by the Participant otherwise than by will or the laws of descent
and distribution and is exercisable during the Participant’s lifetime only by
the Participant (or in the event of the Participant’s incapacity, the person or
persons legally appointed to act on the Participant’s behalf).

 

6.                                      Provisions of the Plan.

 

This Stock Option is
subject to the provisions of the Plan, which are incorporated herein by reference.  A copy of the Plan as in effect on the date
of the grant of this Stock Option has been furnished to the Participant.  By exercising all or any part of this Stock
Option, the Participant agrees to be bound by the terms of the Plan and this
certificate.  All initially capitalized
terms used herein will have the meaning specified in the Plan, unless another
meaning is specified herein.

 

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be executed by its duly authorized
officer.

 

	
   

  	
  CELLU PARENT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Russell C. Taylor

  
	
   

  	
  Name: Russell C. Taylor

  
	
   

  	
  Title: Officer

  
	
   

  	
   

  
	
  Dated:  April 13,
  2009

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Acknowledged:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David Morris

  
	
   

  	
  David Morris

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  April 17,
  2009

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