Document:

exv10w12

 

Exhibit 10.12

			
	 	 	 
	September 1, 2005
	 	$1,625,000

HOME DIAGNOSTICS, INC.

8% Promissory Note

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED OF, IN THE ABSENCE OF (I) AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR (II) AN OPINION OF COMPANY COUNSEL THAT SUCH REGISTRATION
IS NOT REQUIRED.

     Home Diagnostics, Inc., a Delaware corporation (the “Company”), for value received, promises
to pay to the order of George H. Holley, the registered holder hereof, the principal amount of One
Million Six Hundred Twenty-Five Thousand Dollars ($1,625,000), payable in five (5) equal
consecutive monthly installments of $325,000 each, due on the last day of each month beginning on
October 31, 2005; provided, however, that the Company reserves the right in its
sole discretion to defer any or all of said principal installments if and to the extent that the
Board of Directors of the Company determines that it is in the best interests of the Company to do
so, because of an adverse change in the Company’s cash flow and/or sales revenues.

     From and after the date hereof, until all outstanding principal has been paid in full,
interest on the unpaid principal shall accrue at the rate of eight percent (8%) per annum and shall
be paid monthly on the last day of each month beginning on September 30, 2005. Payments of
principal and interest hereunder shall be made in lawful money of the United States of America and
shall be made at such place as the holder of this Promissory Note may designate in writing to the
Company.

 

 

     The Company shall be permitted at any time without penalty to prepay in whole or in part any
principal and interest due hereunder.

     All principal and interest due under this Promissory Note shall immediately become payable in
any of the following events of default:

     (a) failure to make any cash payment due and payable hereunder
for one month after the same becomes due and payable;

     (b) if a distress, attachment or execution, either by writ or appointment of a
receiver, is levied on any part of the assets of the Company, and within six months
thereafter, the debt for which such levy is made or receiver appointed is not paid off or
such writ is not otherwise cancelled or such appointment of a receiver is not otherwise
withdrawn;

     (c) if the Company makes an assignment for the benefit of creditors or files a
petition in bankruptcy or is declared to be bankrupt or an order is made or a special
resolution passed for the dissolution and winding up of the Company; or

     (d) in the event any person(s), corporation, firm or other business entity, whether by
purchase, merger, liquidation or otherwise, shall acquire all or substantially all of the
assets or business or capital stock of the Company.

     The registered holder of this Promissory Note represents that said Promissory Note is being
purchased and held for investment purposes and not with a view to the distribution or resale
thereof. This Promissory Note has not been registered under the Securities Act of 1933 and may not
be sold, transferred, pledged, hypothecated or otherwise disposed of, in the absence of (i) an
effective registration statement for such security under said act or (ii) an opinion of Company
counsel that such registration is not required.

2

 

     This Promissory Note is the obligation of the Company only, and no recourse shall be had for
the payment thereof or interest thereon against any stockholder, officer or director of the
Company, whether by virtue of any constitution, statute, rule or law or otherwise, all such
liability, by the acceptance hereof, and as part of the consideration hereof, being expressly
waived.

     This Promissory Note replaces and supercedes in its entirety the First Replacement 8%
Subordinated Debenture dated September 3, 2002 issued by the Company in favor of the registered
holder hereof.

     This Promissory Note shall be governed by, and construed in accordance with, the law of the
State of Delaware (without giving effect to the conflict of law principles thereof) and cannot be
changed orally.

     IN WITNESS WHEREOF, the Company has signed and sealed this Promissory Note as of the 1st day
of September, 2005.

	 	 	 	 	 	 	 
	 	 	HOME DIAGNOSTICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. RICHARD DAMRON, JR.	 	 
	 

	 	 	 	 	 	 

	 	 	 
	ATTEST:
	 	 
	 
	 	 
	     /s/ BETH K. SCHWARTZ

	 	 
	 	 	 
	Secretary
	 	 

3EX-10.1

 

Exhibit 10.1

Nonqualified Stock Option Notice and Agreement

	 	 	 	 	 	 	 
	Bob Evans Farms, Inc.
	 	Optionee: 	 	Option Number: 
	ID: 31-4421866

3776 South High Street

Columbus, OH 43207

	 	 	 	Plan:
	 	First Amended and

Restated 1998 Stock

Option and Incentive 

Plan

	 

	 	 	 	ID:
	 	 

Effective      , you have been granted a nonqualified stock option to buy «SHARES»
shares of common stock, par value $0.01 per share, of Bob Evans Farms, Inc. (the
“Company”) at an exercise price of «PRICE_PER_SHARE» for each share.

The total exercise price for the shares subject to this Nonqualified Stock Option is
«VALUE».

This nonqualified stock option will vest and become exercisable over a period of three
years according to the following schedule:

	 	 	 
	Vesting Date	 	Number of Shares
	 

	 	 
	 

	 	 
	 

	 	 

	 	 	 	 	 
	 	 	BOB EVANS FARMS, INC.

	 

	 	By:
	 	 
	 

	 	 	 	[Name]

[Title]

Date: 

This Nonqualified Stock Option Notice and Agreement is not a stock certificate or a negotiable
instrument. The nonqualified stock option represented by this Nonqualified Stock Option Notice and
Agreement is non-transferable.

By your receipt of this Nonqualified Stock Option Notice and Agreement, you and the Company agree
that this nonqualified stock option is granted under and governed by the terms and conditions of
the Bob Evans Farms, Inc. First Amended and Restated 1998 Stock Option and Incentive Plan,
including the terms and conditions set forth on the reverse side of this Nonqualified Stock Option
Notice and Agreement.

Section 409A of the Internal Revenue Code (“Section 409A”) imposes substantial penalties on persons
who receive some forms of deferred compensation. Your nonqualified stock option has been designed
to avoid these penalties. However, because the Internal Revenue Service has not yet issued rules
fully defining the effect of Section 409A, it may be necessary to revise your Nonqualified Stock
Option Notice and Agreement if you are to avoid these penalties. By accepting this nonqualified
stock option, you agree to accept those revisions, without any further consideration, even if those
revisions change the terms of your nonqualified stock option and reduce its value or potential
value.

 

 

Bob Evans Farms, Inc.

First Amended and Restated

1998 Stock Option and Incentive Plan

Nonqualified Stock Option Notice and Agreement

Bob Evans Farms, Inc. (the “Company”) is pleased to inform you that you have been granted a
nonqualified stock option (“Option”) to purchase shares of common stock, par value $0.01, of the
Company (“Shares”). Your Option has been awarded under the Bob Evans Farms, Inc. First Amended and
Restated 1998 Stock Option and Incentive Plan (the “Plan”), which, together with this Nonqualified
Stock Option Notice and Agreement (“Agreement”), sets forth the terms and conditions of this Option
and is incorporated by reference into this Agreement. A prospectus describing the Plan in more
detail has been delivered to you. Copies of the Plan and the prospectus are also available through
our Compensation Department. The Plan and the prospectus contain important information and we urge
you to review them carefully.

	 	 	 
	Option Information:
	 	 
	Optionee:

	 	 
	Grant Date:

	 	 
	Shares Subject to the Option:

	 	 
	Exercise Price:

	 	 
	Last Exercise Date:

	 	 

Vesting: You may not exercise this Option until the Option has vested. The Option
will vest and become exercisable according to the following schedule with respect to each
installment of Shares:

	 	 	 
	Vesting
Date	 	Number
of Shares
	 
	 	 
	 

	 	 
	 

	 	 

This vesting schedule may be affected if (1) you die, (2) you retire, (3) your employment
with the Company is terminated or (4) there is a change in control of the Company, as explained
later in this Agreement.

Option Term: You must exercise this Option before the Last Exercise Date, or an earlier
date if you die or retire, if your employment with the Company is terminated, or if there is a
change in control of the Company (as explained later this Agreement). After that time, this Option
will become null and void.

Exercise: Exercising this Option means that you exchange this Option for a number of Shares
by purchasing each Share that you wish to buy at the Exercise Price. You can only buy the number
of Shares as to which the Option has vested on the exercise date. For example, if you were to
receive an option to buy 200 Shares that vests in two annual installments of 100 Shares, you can
buy up to 100 Shares on or after the first vesting date. You cannot buy the remaining 100 Shares
until on or after the second vesting date. The number of Shares you may purchase on any date
cannot exceed the total number of Shares as to which the Option is vested by that date, less any
Shares you previously acquired by exercising this Option.

To exercise this Option, you must deliver to the Company (1) a written notice that states the
number of Shares you wish to buy and (2) the Purchase Price. The “Purchase Price” is the Exercise
Price multiplied by the number of Shares you are buying. You may pay the Purchase Price in one of
the following ways:

(1) Cash: Deliver cash, a cashier’s check or a personal check to the Company in the
amount of the Purchase Price.

(2) Swap/Stock-for-Stock Exercise: Deliver to the Company Shares that you already own
which have a Fair Market Value equal to the Purchase Price. The “Fair Market Value” of the
Company’s Shares, on any given date, is the last reported sale price of the Shares on NASDAQ.

(3) Broker Assisted Exercise: Authorize a broker to sell some or all of the Shares to be
acquired through the exercise of the Option and instruct the broker to pay the Company the portion
of the sale proceeds equal to the Purchase Price and to pay you any sale proceeds remaining after
paying the Purchase Price and the broker’s fee.

Tax Withholding: The Company must withhold federal, state and local taxes in connection
with the exercise of this Option and the Company has the right to require these payments from you.
The Company permits you to make these payments (1) in cash (including cash resulting from a broker
assisted exercise), (2) by having the Company withhold from the Shares you are to receive upon
exercise a number of Shares having a Fair Market Value equal to the payment due, or (3) delivering
Shares to the Company that you already own which have a Fair Market Value equal to the payment due.
You must select one of these alternatives when you exercise this Option.

Exercise Following Retirement, Death, Disability, Termination of Employment or a Change in
Control of the Company:

Retirement (as defined in the Plan): If you retire, this Option will vest immediately and
become fully exercisable. You must exercise this Option by the Last Exercise Date.

Death: If you die while employed by the Company, this Option will vest immediately and
become fully exercisable . The legal representative of your estate must exercise this Option
by the Last Exercise Date or within one year of the date of your death, whichever is earlier.

Disability: If your employment with the Company is terminated because you become disabled,
this Option will vest immediately and become fully exercisable . You must exercise this
Option by the Last Exercise Date or within one year of the date of your termination of employment,
whichever is earlier.

Termination of Employment: If you voluntarily terminate your employment with the Company,
the unvested portion of this Option will be cancelled. You must exercise the vested portion of
this Option by the Last Exercise Date or within 90 days following the date you notify the Company
of your intention to terminate your employment, whichever is earlier. If your employment with the
Company is terminated by the Company for “cause” (as defined in the Plan), this Option will be
cancelled immediately (both the vested and unvested portions).

Change in Control of the Company: This Option will vest immediately and become fully
exercisable if, within 36 months after a change in control of the Company, the Plan is terminated
and not replaced simultaneously with a similar program providing comparable benefits. A “change in
control” is defined in the Plan.

Restrictions on Transfer of Option: You may not assign, alienate, pledge, sell or
otherwise transfer this Option, and any purported transfer will be void and unenforceable against
the Company. Notwithstanding this prohibition, this Option may be transferred by will or by the
laws of descent and distribution. During your lifetime, this Option may be exercised only by you
or your guardian or legal representative.

Tax Consequences: This brief discussion of the federal tax rules that affect this Option
is provided as general information (not as personal tax advice) and is based on the Company’s
understanding of federal tax laws and regulations in effect as of the Grant Date.

You should consult with a tax or financial adviser to ensure you fully understand the tax
ramifications of your Option.

You will not be required to pay ordinary income taxes on the value of this Option when it is issued
or when it becomes exercisable. However, you will be required to pay federal, state and local
taxes when you exercise this Option. The amount taxed is the difference between the Fair Market
Vale of each Share you buy when you exercise this Option minus the Exercise Price for each Share
you buy, multiplied by the number of Shares you buy. The Company must withhold these taxes (see
discussion of “Tax Withholding”). When you sell your Shares, the difference between their Fair
Market Value when sold and the Exercise Price will be taxed as a long term capital gain (or loss),
if you sell the Shares more than one year after you exercise the Option, or as a short term capital
gain (or loss), if you sell the Shares one year or less after you exercise the Option.

Plan Controls: The Company has developed the Plan to encourage your continued effort and
commitment to the Company. The terms contained in the Plan are incorporated into and made a part
of this Agreement and this Agreement shall be governed by and construed in accordance with the
terms of the Plan. In the event of any actual or alleged conflict between the terms of the Plan
and terms of this Agreement, the terms of the Plan shall be controlling and determinative.

Options as an Investment: Deciding whether and when to exercise this Option is an
important investment decision. The value of this Option is the difference between the Exercise
Price and the Fair Market Value of Shares on the Exercise Date. If the Fair Market Value of the
Shares rises, you may realize a gain. However, there is no guarantee that the value of the Shares
will rise. If the Fair Market Value of the Shares declines, you may lose all or some of your
investment.

No Rights as a Stockholder: You shall not have any rights as a stockholder of the Company
with respect to any of the Shares subject to this Option until you exercise the Option and the
Company issues a certificate to you evidencing such Shares.

Section 16 Officers and Affiliates: If you are an executive officer of the Company subject
to the requirements of Section 16 of the Securities Exchange Act of 1934, as amended, you are
responsible for ensuring that all the requirements of Section 16 are met, including filing notices
with the Securities and Exchange Commission on Form 4 when you receive and when you exercise this
Option. Additionally, the methods by which you may exercise this Option may be subject to
additional restrictions under the federal securities laws. Also, certain restrictions are imposed
by the federal securities laws on the resale of Shares acquired under the Plan by persons deemed to
be “affiliates” of the Company. An “affiliate” is a person who possesses the power (direct or
indirect) to direct or cause the direction of the Company’s management or policies.

IRS CIRCULAR 230 DISCLOSURE: In order to ensure compliance with requirements imposed by the U.S.
Internal Revenue Service, we inform you that any federal tax advice contained in this communication
(including any attachments) is not intended or written to be used, and it cannot be used, by any
taxpayer for the purpose of (i) avoiding penalties that may be imposed under the U.S. Internal
Revenue Code or (ii) promoting, marketing, or recommending to another person, any transaction or
other matter addressed herein.

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