Document:

exv10w1

 

EXHIBIT 10.1

AMENDMENT NO. 1

TO THE

UNITED DEFENSE STOCK OPTION PLAN

     WHEREAS, the Corporation sponsors the United Defense Stock Option Plan
(the “Plan”);

     WHEREAS, in order to strengthen the Corporation’s ability to attract and
retain appropriately skilled personnel, it would be in the Company’s best
interest to amend the Plan to increase the number of authorized shares which
may be issued pursuant to awards granted under the Plan, and to provide for
issuance of restricted stock to certain eligible individuals;

     WHEREAS, pursuant to Section 7.3 of the Plan, the Corporation, by action
of its Board of Directors, is authorized to amend the Plan;

     NOW, THEREFORE, BE IT RESOLVED, that effective April 1, 2002, the
following amendment to the Plan be and hereby is adopted to (i) increase the
number of authorized shares which may be issued pursuant to awards granted
under the Plan and (ii) provide for the issuance of restricted stock under the
Plan:

1.     Each reference to the term Option that is intended to refer to a grant of an
Option or to an award of Restricted Stock shall be replaced with the term
“Award.”

2.     Each reference to the term Optionee that is intended to refer to an
individual in receipt of a grant of Option or to an individual in receipt of an
award of Restricted Stock shall be replaced with the term “Participant.”

3.     Each reference to the term “Stock Option Agreement” that is intended to
refer to a stock option agreement or to a restricted stock agreement shall be
replaced with the words “Stock Option Agreement or Restricted Stock Agreement,
as the case may be.”

4.     Article I shall be amended to add the following definitions after Section
1.29:

		
	 	     Section 1.30 Award

		
	 	     “Award” shall mean an award of an option or of restricted stock made
under the Plan.

		
	 	     Section 1.31 Participant

		
	 	     “Participant” shall mean any Employee, Independent Director, or
Advisor eligible to participate in this Plan pursuant to Section 3.1.

		
	 	     Section 1.32 Restricted Stock

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	 	     “Restricted Stock” shall mean shares of Common Stock awarded to a
Participant subject to certain restrictions as set forth in this Plan and
in the Restricted Stock Agreement between the Participant and the
Company.

		
	 	     Section 1.33 Restricted Stock Agreement

		
	 	     “Restricted Stock Agreement” shall mean an agreement by and between
a Participant and the Company setting forth the specific terms and
conditions of an award of Restricted Stock under this Plan. Such
Restricted Stock Agreement shall be subject to the provisions of this
Plan (which shall be incorporated by reference therein) and shall contain
such provisions as the Board, in its sole discretion, may authorize.

5.     Article II shall be replaced with the following:

		
	 	     Section 2.1 Shares Subject to the Plan

		
	 	     The shares of stock subject to an Award shall be shares of Common
Stock. Subject to Section 8.1, the aggregate number of such shares which
may be issued upon exercise of Options or upon an award of Restricted
Stock shall not exceed 7,375,000.

		
	 	     Section 2.2 Unexercised or Unvested Awards

		
	 	     If any Award (or portion thereof) expires or is cancelled without
having been fully exercised or vested, the number of shares subject to
such Award (or portion thereof) that have not exercised or vested prior
to the Award’s expiration or cancellation may again be awarded hereunder,
subject to the limitations of Section 2.1.

6.     Article III shall be renamed “Eligibility for Awards”

7.     The following shall be added after 3.3(a)(iii), 3.4(a)(iii), and
3.5(a)(iii):

		
	 	     (iv) Determine the terms and conditions of the Restricted Stock
Agreement to evidence an award of Restricted Stock, including the
restrictions applicable to such Restricted Stock.

8.     Section 4.3(a) shall be deleted and replaced with the following:

		
	 	     (a) The price of the shares subject to each Option shall be set by
the Committee (or the Board, in the case of Options granted to
Independent Directors) provided, however, that the price per share shall
not be less than 100% of the fair market value of such shares on the date
such Option is granted; and that in the case of an individual then owning
(within the meaning of Section 424(d) of the Code) more than 10% of the
total combined voting power of all classes of stock of the Company, the
price per share of an Incentive Stock Option shall not be less than 110%
of the fair market value of such shares on the date such Incentive Stock
Option is granted.

9.     The following Article shall be added after Article V and all subsequent
section numbers shall be renumbered accordingly:

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ARTICLE VI

RESTRICTED STOCK

		
	 	     Section 6.1 Restricted Stock Agreement

		
	 	     Each award of Restricted Stock shall be evidenced by a written
Restricted Stock Agreement, which shall be executed by the Participant
and an authorized Officer of the Company and which shall contain such
terms and conditions as the Committee (or the Board, if applicable) shall
determine, consistent with the Plan.

		
	 	     Section 6.2 Stockholder Rights and Restrictions

		
	 	     (a) Subject to paragraphs 6.2(b) and 6.2(d) below, upon delivery of
the shares of Restricted Stock to the escrow holder pursuant to paragraph
6.2(d), the Participant shall have, unless otherwise provided by the
Board, all the rights of a stockholder with respect to said shares,
subject to the restrictions in his Restricted Stock Agreement, including
the right to receive all dividends and other distributions paid or made
with respect to the shares; provided, however, that in the discretion of
the Board, any extraordinary distributions with respect to the Restricted
Stock shall be subject to the restrictions set forth in paragraph (b).

		
	 	     (b) All shares of Restricted Stock issued under the Plan (including
any shares received by Participants thereof with respect to shares of
Restricted Stock as a result of stock dividends, stock splits or any
other form of recapitalization) shall, in the terms of each individual
Restricted Stock Agreement, be subject to such restrictions as the Board
shall provide, which restrictions may include, without limitation,
restrictions concerning voting rights and transferability and
restrictions based on duration of employment with the Company, Company
performance and individual performance; provided, however, that, unless
the Board otherwise provides in the terms of the Restricted Stock
Agreement or otherwise, no share of Restricted Stock granted to a person
subject to Section 16 of the Exchange Act shall be sold, assigned or
otherwise transferred until at least six months and one day have elapsed
from the date on which such person last acquired shares of the Company’s
stock in an acquisition required to be reported pursuant to Section 16,
and provided, further, that, except with respect to shares of Restricted
Stock granted to “covered employees” within the meaning of Section 162(m)
of the Code, by action taken after the Restricted Stock is issued, the
Board may, on such terms and conditions as it may determine to be
appropriate, remove any or all of the restrictions imposed by the terms
of the Restricted Stock Agreement. Restricted Stock shall not be sold or
encumbered until all restrictions are terminated or expire. If no
consideration was paid by the Participant upon issuance, a Participant’s
rights in unvested Restricted Stock shall lapse, and such Restricted
Stock shall be surrendered to the Company without consideration, upon
Termination of Employment with the Company; provided, however, that the
Board in its sole and absolute discretion may provide that such rights
shall not lapse in the event of a Termination of Employment following a
“change of ownership or control” (within the meaning of Treasury
Regulation Section 1.162-27(e)(2)(v) or any successor regulation thereto)
of the Company or because of the Participant’s death or

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	 	disability; provided, further, except with respect to shares of
Restricted Stock granted to “covered employees” within the meaning of
Section 162(m) of the Code, the Board in its sole and absolute discretion
may provide that no such lapse or surrender shall occur in the event of a
Termination of Employment, a Termination of Directorship, or a
Termination of Consultancy, without cause or following any “change of
ownership or control” (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or
because of the Participant’s retirement, or otherwise.

		
	 	     (c) The Board shall provide in the terms of each individual
Restricted Stock Agreement that the Company shall have the right to
repurchase from the Participant the Restricted Stock then subject to
restrictions under the Restricted Stock Agreement immediately upon a
Termination of Employment between the Participant and the Company, at a
cash price per share equal to the price paid by the Participant for such
Restricted Stock; provided, however, that the Board in its sole and
absolute discretion may provide that no such right of repurchase shall
exist in the event of a Termination of Employment following a “change of
ownership or control” (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or
because of the Participant’s death or disability; provided, further,
that, except with respect to shares of Restricted Stock granted to
“covered employees” within the meaning of Section 162(m) of the Code,
the Board in its sole and absolute discretion may provide that no such
right of repurchase shall exist in the event of a Termination of
Employment without cause or following any “change of ownership or
control” (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or
because of the Participant’s retirement, or otherwise.

		
	 	     (d) The Secretary of the Company or such other escrow holder as the
Board may appoint shall retain physical custody of each certificate
representing Restricted Stock until all of the restrictions imposed under
the Restricted Stock Agreement with respect to the shares evidenced by
such certificate expire or shall have been removed.

		
	 	     (e) In order to enforce the restrictions imposed upon shares of
Restricted Stock hereunder, the Board shall cause a legend or legends to
be placed on certificates representing all shares of Restricted Stock
that are still subject to restrictions under Restricted Stock Agreements,
which legend or legends shall make appropriate reference to the
conditions imposed thereby.

		
	 	     Section 6.3 Purchase Price

		
	 	     (a) The Board may from time to time, in its absolute discretion,
determine the purchase price, if any, and other terms and conditions
applicable to any award of Restricted Stock, consistent with the Plan.

		
	 	     (b) The Board shall establish the purchase price, if any, and form
of payment for Restricted Stock; provided, however, that such purchase
price shall be no less than the par value of the Common Stock to be
purchased, unless otherwise permitted by

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	 	applicable state law. In all cases, legal consideration shall be
required for each issuance of Restricted Stock.

		
	 	     (c) If a Participant makes an election under Section 83 of the Code,
or any successor section thereto, to be taxed with respect to the
Restricted Stock as of the date of transfer of the Restricted Stock
rather than as of the date or dates upon which the Participant would
otherwise be taxable under Section 83(a) of the Code, the Participant
shall deliver a copy of such election to the Company immediately.

5exv10w2

 

Exhibit 10.2

WRITTEN CONSENT IN LIEU OF

A SPECIAL MEETING OF THE COMPENSATION

COMMITTEE OF THE BOARD OF DIRECTORS

OF UNITED DEFENSE INDUSTRIES, INC.

The undersigned, being the Compensation Committee of the Board of Directors of United Industries, Inc., a Delaware Corporation
(the “Corporation”), in lieu of a special meeting, hereby consents in writing, pursuant to Section 141(f) of the General Corporation Law of the
State of Delaware, to the adoption of the following resolutions as of the ______day of October, 2002:

Amendment No. 2 to the

United Defense Stock Option Plan

	
WHEREAS, by resolution date July 25, 1998, the Committee adopted the United Defense Stock Option Plan,
and by resolution dated April 1, 2002 the Board of Directors adopted an amendment to such plan (as amended
to date, the “Plan”);

WHEREAS, Section 5.3 of the Plan provides that an option may be exercised “solely by delivery [of certain enumerated items] to the Secretary
[of the Corporation]...”;

WHEREAS, the Corporation desires to permit the delegation of certain ministerial functions associated with the regular administration of the Plan to other
employees of the Corporation and/or to one or more third-party service providers; and

WHEREAS, pursuant to Section 7.3 of the Plan, the Committee is authorized to amend the Plan;

NOW, THEREFORE, BE IT RESOLVED, that Section 5.3 of the Plan be and hereby is amended to permit any options under the Plan to be exercised by delivery (including
by electronic means) of the enumerated items to the Secretary of the Corporation (the “Secretary”) or the Secretary’s designee(s) by adding (i) “(including by electronic means, to the extent deemed
appropriate by the Secretary)” after the word “delivery” in the introductory clause, and (ii) “(or any person(s) or entity(ies) designated by the Secretary)” after the word “Secretary” in the introductory clause;

RESOLVED FURTHER, that the Secretary may delegate to one or more employees of the Corporation and/or third-party service providers (i) the duty and responsibility to track the number of shares available for issuance and exercise under the Plan, (ii) the authority to process notices of exercise submitted by

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optionees, and (iii) the authority to provide periodic reports and other routine administrative services to assist in the efficient and regular implementation of options and/or shares of the Corporation’s stock authorized from time to time by the Committee or the Board of Directors;

RESOLVED FURTHER, that the President and Chief Executive Officer, the Vice President and Chief Financial Officer, and the Vice President, General Counsel, and Secretary (collectively, the “Authorized Officers”) of the Corporation be, and each of them hereby is, authorized and empowered (acting in the name
and on behalf of the Corporation) to execute, deliver, and perform all such documents, instruments, and certificates and take such further actions as may be necessary, appropriate, advisable, or desirable to effectuate any or all of the foregoing resolutions, and any and all actions heretofore or hereafter taken by any such Authorized
Officer) in furtherance of the objectives set forth in this resolution and all transactions related thereto, are hereby authorized, approved, ratified, and confirmed in all respects.

     The undersigned, being the Compensation Committee of the Board of Directors of the Corporation, do hereby consent to the foregoing actions as of the date first above written.

	 	 
	 	 
	 	

Peter J. Clare
	 	 
	 	 
	 	

	 	Gen. J.H. Binford Peay, III
	 	(USA Ret.)

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