Document:

Exhibit 10.32

 

MGP INGREDIENTS, INC.

NON-EMPLOYEE DIRECTORS’ RESTRICTED STOCK PLAN

(as amended)

 

1.             Introduction

 

1.1          The Plan; Effective Date; Duration.  This
MGP Ingredients, Inc. Non-Employee Directors’ Restricted Stock Plan (the “Plan”)
shall be effective as of the date of the 2006 Annual Meeting of Stockholders,
if approved by stockholders at such Annual Meeting.  No award shall be made under the Plan after October 31,
2016.  This Plan is intended to be exempt
from the provisions of Section 409A of the Internal Revenue Code of 1986,
as amended, as a plan which provides for the transfer of restricted property as
described in Prop. Reg. § 1.409A-1(b)(6), and is to be construed in accordance
with this intent.

 

1.2          Purpose.  The
purpose of the Plan is to provide each non-employee member (“Director”) of the
Board of Directors (the “Board”) of MGP Ingredients, Inc. (the “Company”)
with awards (“Restricted Stock Awards”) of shares of common stock, no par value
(“Stock”), of the Company, subject to the restrictions and other provisions of
the Plan.  It is intended that the plan
will (a) provide a means of compensating Directors that will help attract
and retain qualified candidates to serve as Directors, and (b) permit
Directors to increase their stock ownership and proprietary interest in the
Company and their identification with the interests of the Company’s
stockholders.

 

1.3          Shares of Stock Available Under the Plan.

 

(a)           Subject to the provisions of clause (c) below, the number of shares
of Stock that may be delivered under the Plan during the term of the Plan is
One Hundred Seventy Five Thousand (175,000). If there is an insufficient number
of shares available to deliver to all Directors on any date as of which an
award is made, the available shares shall be delivered to Directors on such
date pro-rata.

 

(b)           Shares of Stock awarded under the Plan (“Restricted Stock”) will be
previously-issued shares of Stock reacquired by the Company, including shares
purchased in the open market.

 

(c)           Appropriate and equitable adjustment shall be made in the number and kind
of shares of Stock available under the Plan and covered by Restricted Stock
Awards in the event of any recapitalization, reorganization, merger,
consolidation, spin-off, combination, repurchase, exchange of shares or other
securities of the Company, stock split, reverse stock split, stock dividend,
extraordinary dividend, liquidation, dissolution, or other similar corporate
transaction or event affecting the Company. If any such adjustment would result
in a fractional security being (i) available under this Plan, such
fractional security shall be disregarded; or (ii) subject to an award
under this Plan, the Company shall pay the holder of such award an amount in
cash determined by multiplying (x) the fraction of such security (rounded
to the nearest hundredth) by (y)  the Fair Market Value thereof on
the date of such adjustment. The decision of the Committee

 

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(as defined in Section 3.1)
regarding such adjustment or substitution shall be final, binding and
conclusive.

 

2.             Restricted Stock Awards

 

2.1          Award Dates.

 

(a)           During the term of this Plan, commencing in 2006, each Director in office
on the first business day following the date of each annual meeting of
stockholders (“Annual Meeting”) shall be awarded shares of Restricted Stock
with a Fair Market Value of $12,500, as determined on such first business day
following the Annual Meeting, subject in all cases to the limits imposed in Section 1.3.

 

(b)           A Director who is elected or appointed to the Board on a date other than
the date of an Annual Meeting shall be awarded shares of Restricted Stock as of
the first business day following such date of election or appointment with a
Fair Market Value of $12,500, as determined on such first business day
following the date of election or appointment, subject in all cases to the
limits imposed in Section 1.3

 

(c)           The “Fair Market Value” of a share of Restricted Stock on the date as of
which fair market value is to be determined shall be: (a) if the Stock is
reported on the NASDAQ Stock Market., the closing price of a share of Stock as
reported by NASDAQ as of the day on which the award was made; or (b) if
the Stock is listed on another established securities exchange or exchanges,
the highest reported closing price of a share of Stock on such exchange or
exchanges as of day on which the award was made.  The Fair Market Value of the Restricted
Stock, if not so reported or listed, and the Fair Market Value of any other
property on the date as of which Fair Market Value is to be determined, shall
mean the fair market value as determined by the Committee in its sole
discretion, using a reasonable valuation method consistently applied as
provided in Prop. Reg. § 1.409A-1(b)(5)(iv)(B).

 

2.2          Issuance of Stock.  As
promptly as practical after the date as of which an award is made, the Company
shall issue a certificate (“Certificate”), registered in the name of each
Director receiving an award, representing the number of shares of Restricted
Stock covered by the Director’s award.

 

2.3          Rights of Holders of Restricted Stock.  Upon
issuance of a Certificate, the Director in whose name the Certificate is
registered shall, subject to the provisions of the Plan, have all of the rights
of a stockholder with respect to the shares of Restricted Stock represented by
the Certificate, including the right to vote the shares and receive cash
dividends and other cash distributions thereon.

 

2.4          Vesting Period.  The
Restricted Stock shall be subject to the restrictions set forth in Sections 2.5
and 2.7 of the Plan. The Restricted Stock shall also be subject to a vesting
period (the “Vesting Period”) commencing on the date as of which the Restricted
Stock is awarded (the “Award Date”). The Restricted Stock becomes fully vested
on the occurrence of one of the following events (the “Vesting Events”): (1) the
third anniversary of the Award Date with respect to an award of Restricted
Stock to a Director; (2) the death of the Director; or (3) a

 

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Change in Control, as
defined below. Further, the Committee is authorized to accelerate vesting in
any given case in the event of the following terminations of the Director’s
Board service:

 

(a)           the retirement of the Director from the Board at the end of the Director’s
term;

 

(b)           the termination of the Director’s service on the Board as a result of the
Director’s not standing for reelection for the Board; or

 

(c)           the termination of the Director’s service on the Board because of the
Director’s inability to perform substantially such Director’s duties and
responsibilities as a Director of the Company due to a physical or mental
condition, as determined in the discretion of the Committee.

 

As
used herein the term “Change in Control” means:

 

(x)            The acquisition (other than from the Company) by any person, entity or “group,”
within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act, (excluding, for this purpose, the Company or its subsidiaries,
any employee benefit plan of the Company or its subsidiaries, trustees of the
MGP Ingredients, Inc. Voting Trust or of the Cray Family Trust, or any
person who acquires Common or Preferred Stock from Cloud L. Cray, Jr. or
from any trust controlled by or for the benefit of Cloud L. Cray, Jr.
prior to or as a result of his death) of beneficial ownership, (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of at least 30%
of the then outstanding shares of common stock and 50% of the then outstanding
shares of preferred stock, par value $10 per share,  or 30% of the combined voting power of the
Company’s then outstanding voting securities entitled to vote generally in the
election of directors; or

 

(y)           Individuals who, as of the date hereof, constitute the Board (as of the
date hereof the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
directors of the Company) shall be, for purposes of this Plan, considered as
though such person were a member of the Incumbent Board; or

 

(z)            Approval by the stockholders of the Company of a reorganization, merger,
consolidation, in each case, with respect to which persons who were the
stockholders of the Company immediately prior to such reorganization, merger or
consolidation do not, immediately thereafter, own collectively as a group more
than 50% of the combined voting power entitled to vote generally in the
election of directors of the reorganized, 
merged or consolidated company’s then outstanding voting securities, or
a liquidation or dissolution of the Company or of the sale of all or
substantially all of the assets of the Company.

 

If
any of the events enumerated in clauses (x) through (z) occur, the
Committee shall determine the effective date of the Change in Control resulting
therefrom for purposes of the Plan.

 

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2.5          Forfeiture of Restricted Stock.  As of
the date (“Resignation Date”) a Director resigns from the Board during the
Director’s term, the Director shall forfeit to the Company all Restricted Stock
awarded to the Director for which the Vesting Period has not ended as of or
prior to the Resignation Date.

 

2.6          Release of Restricted Stock. 
Restricted Stock shall be released to the Director, free and clear of
all restrictions and other provisions of the Plan, on the first business day
immediately following the last day of the Vesting Period with respect to such
Restricted Stock.

 

2.7          Restrictions.  Restricted
Stock shall be subject to the following restrictions during the Vesting Period:

 

(a)           The Restricted Stock shall be subject to forfeiture to the Company as
provided in Section 2.5 of the Plan.

 

(b)           The Restricted Stock may not be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of, and neither the right to receive
Restricted Stock nor any interest under the Plan may be assigned by a Director,
and any attempted assignment shall be void.

 

(c)           Each Certificate representing shares of Restricted Stock shall be held by
the Company and shall, at the option of the Company, bear an appropriate
restrictive legend and be subject to appropriate “stop transfer” orders.  The Director shall deliver to the Company a
stock power endorsed in blank to the Company to be used by the Company in the
event the Restricted Stock is forfeited.

 

(d)           Any additional Stock or other securities or property (other than cash)
that may be issued with respect to Restricted Stock as a result of any stock
dividend, stock split, business combination or other event, shall be subject to
the restrictions and other provisions of the Plan.

 

(e)           The issuance of any Restricted Stock award shall be subject to and
contingent upon (i) completion of any registration or qualification of the
Stock under any federal or state law or government rule or regulation that
the Company, in its sole discretion, determines to be necessary or advisable;
and (ii) the execution by the Director and delivery to the Company of (A) any
agreement reasonably required by the Company, and (B) the stock power
referred to in Section 2.7(c).

 

3.             General Provisions.

 

3.1          Administration.  The Plan
shall be administered by a committee (the “Committee”) that shall be the Human
Resources and Compensation Committee of the Board.  The Committee shall have full power,
discretion and authority to interpret and administer the Plan.  The Committee’s interpretations and actions
shall be final, conclusive and binding upon all persons for all purposes.  No member of the Board or the Committee, nor
any officer or employee of the Company acting on behalf of the Board or the
Committee, shall be personally liable for any action, determination or
interpretation taken or made in good faith with respect to the Plan, and all
members of the Board and the Committee and any officer or employee of the

 

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Company acting on their
behalf shall, to the extent permitted by law, be fully indemnified and
protected by the Company in respect to any such action, determination or
interpretation.

 

3.2          No Retention Rights.  Neither
the establishment of the Plan nor the awarding of Restricted Stock to a
Director shall be considered to give the Director the right to be retained on,
or nominated for reelection to, the Board, or to any benefits or awards not
specifically provided for by the Plan.

 

3.3          Interests Not Transferable. 
Except as to withholding of any tax required under the laws of the
United States or any state or locality, no benefit payable at any time under
the Plan shall be subject in any manner to alienation, sale, transfer,
assignment, pledge, attachment, or other legal process, or encumbrance of any
kind.  Any attempt to alienate, sell,
transfer, assign, pledge, attach or otherwise encumber any such benefits
whether currently or thereafter payable, shall be void.  No benefit shall, in any manner, be liable
for or subject to the debts or liabilities of any person entitled to such
benefits.  If any person shall attempt
to, or shall alienate, sell, transfer, assign, pledge or otherwise encumber
such person’s benefits under the Plan, or if by reason of such person’s
bankruptcy or any other event, such benefits would devolve upon any other
person or would not be enjoyed by the person entitled thereto under the Plan,
then the Committee, in its discretion, may terminate the interest in any such
benefits of the person entitled thereto under the Plan and hold or apply them
to or for the benefit of such person entitled thereto under the Plan or such
person’s spouse, children or other dependents, or any of them, in such manner
as the Committee may deem proper.

 

3.4          Amendment and Termination.  The
Board may at any time amend or terminate the Plan; provided that:

 

(a)           no amendment or termination shall, without the written consent of a
Director, adversely affect the Director’s rights under outstanding awards of
Restricted Stock; and

 

(b)           Stockholder approval of any amendment shall be required if stockholder
approval is required under applicable law or the rules of any national
securities exchange or automated quotation system on which are listed or quoted
any of the Company’s equity securities.

 

3.5          Severability.  If all or
any part of the Plan is declared by any court or governmental authority to be
unlawful or invalid, such unlawfulness or invalidity shall not serve to
invalidate any portion of the Plan not declared to be unlawful or invalid.  Any Section or part thereof so declared
to be unlawful or invalid shall, if possible, be construed in a manner which
will give effect to the terms of such Section or part thereof to the
fullest extent possible while remaining lawful and valid.

 

3.6          Controlling Law.  The law of
Kansas, except its law with respect to choice of law,  shall be controlling in all matters relating to the Plan.

 

 B - 5Exhibit 10.36

 

Guidelines for Issuance of Fiscal 2009 Restricted
Share Awards

Adopted by the Human Resources Committee of the Board of Directors

of MGP Ingredients, Inc.

 

RECITALS:

 

1.     MGP INGREDIENTS, INC. has adopted the
Stock Incentive Plan of 2004 (the “Plan”).

 

2.     Under the provisions of Section 5 of
the Plan, the Committee may grant Stock Incentives in the form of Stock Awards.

 

3.     Under the provisions of the Plan, the
Committee may provide for Stock Awards in the form of restricted shares (herein
“Restricted Shares”) to such eligible persons as may be selected by the
Committee in its discretion.

 

Pursuant
to the authority granted to it under the provisions of Section 13(c) of
the Plan, the Committee adopts the following guidelines with respect to the issuance
in 2009 of Stock Awards in the form of Restricted Shares.

 

A.    Terms of
Awards of Restricted Shares.  Restricted Shares
awarded under the Plan with respect to Fiscal 2009 are subject to the following
terms and conditions.

 

(i)            Vesting. 
Subject to the provisions of paragraphs C and D of these Guidelines, Restricted
Shares issued as Stock Awards under the Plan shall vest (i.e., become owned by
the Participant without a substantial risk of forfeiture) only upon the
Participant’s completion of five (5) full years of employment with the
Company, commencing on the grant date (June 11, 2009) and ending on the
fifth anniversary of such date (June 11, 2014) (the “Restriction Period”).

 

B.     Forfeiture.  Except as provided in
paragraph C, if the employment of the Participant to whom Restricted Shares has
been issued terminates for any reason prior to the end of the Restriction
Period, such Restricted Shares shall be immediately forfeited by such
Participant and cancelled by the Company.

 

C.   
Further Conditions on Vesting and Forfeiture.

 

(i)            In the event of a
Participant’s death, Disability, Retirement or, in the sole discretion of the
Committee, involuntary termination of employment without cause, in any such
case after three years from the date of grant specified in the agreement
evidencing the Stock Award, the Restricted Shares issued to such Participant
shall vest as to the number of Restricted Shares issued to such Participant
multiplied by a fraction, the numerator of which shall equal the number of months
(including fractional months as full months) that such Participant was employed
by the Company, commencing as of the first day of the Restriction Period and
ending on the date of termination of employment, and the denominator of which
shall be sixty.  The balance of Restricted Shares issued to such
Participant shall be forfeited by the Participant and cancelled by the Company.

 

(ii)           Any Restricted
Shares shall become fully vested in the Participant in the event of a Change of
Control, as defined in the Plan.

 

 

(iii)          As used herein,
 the term “Disability” shall mean the inability of a Participant to
perform substantially such Participant’s duties and responsibilities due to a
physical or mental condition that would entitle such Participant to benefits
under the Company’s Long-Term Disability Plan (or any successor to the plan in
effect on the date of adoption of these Guidelines) or, if no such plan is in
effect, such condition as would enable the Participant to receive an award for
permanent and total disability from the Social Security Administration, and the
term “Retirement” means the attainment by the Participant of age 62.

 

(iv)          The Committee’s
determinations to permit vesting in the event of involuntary terminations of
employment without cause need not be uniform and may be made selectively among
participants, whether or not such participants are similarly situated.

 

D.   
Issuance of Restricted Shares.  After the Committee has
approved the making of a Stock Award, a certificate or certificates representing
the number of shares awarded as a Stock Award in the form of Restricted Shares
shall be issued from the Company’s treasury shares and registered in the
Participant’s name and may bear substantially the following legend:

 

“The shares evidenced by this Certificate have been
issued pursuant to the MGP Ingredients, Inc. Stock Incentive Plan of 2004
and a related agreement (the “Agreement”) between the Company and the
registered holder.  The holder’s rights are subject to the restrictions,
terms and conditions of the Plan and to the Agreement, which restricts the
transfer of the shares and subjects them to forfeiture to the Company under the
circumstances referred to in the Agreement.  This legend may be removed
when the holder’s rights to the shares vest under the Agreement.”

 

All
certificates so registered in the Participant’s name shall be deposited with
the Company, together with stock powers or other instruments of assignment,
each endorsed in blank with a guarantee of signature deemed appropriate by the
Company which would permit transfer to the Company of all or a portion of the
Restricted Shares in the event such award is forfeited in whole or in
part.  Upon vesting and provision for taxes required to be withheld, such
certificate or certificates evidencing unrestricted ownership of the requisite
number of shares of Common Stock shall be delivered to the holder of such Stock
Award.

 

E.     Rights with Respect to
Restricted Shares.  The holder of an award of Restricted Shares
shall have the following rights of a stockholder of the Company: voting rights
and the right to receive dividends during any applicable Restriction Period.

 

F.     Non-Assignability.  Except as may be permitted by
the Plan, until they have vested, Restricted Shares may not, by operation of
law or otherwise, be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of by the holder thereof or be subject to execution,
attachment or other legal process.

 

G.   
Provisions of Plan Apply. 
Even though not set forth herein or in any related grant agreement, the
provisions of the Plan applicable to Stock Awards, including those relating to
adjustment of Stock Awards, shall apply to Restricted Shares.

 

H.   
Taxes.  No certificates evidencing ownership of shares shall be delivered
to the holder of a Stock Award upon vesting until the holder makes such
provision as the Company deems appropriate for the payment of any taxes which
the Company may withhold in connection 

 

 

with
the vesting of such Stock Award.   Withholding taxes resulting from
vesting of Stock Awards may be settled with cash or shares of the Company’s
Common Stock in accordance with the following guidelines.

 

(ii Holders may deliver to the Company a personal check satisfactory to
the Company in the amount of the tax liability;

 

(ii)           Holders may elect
to pay the tax liability in shares of the Company’s Common Stock by directing
the Company to withhold from the number of shares to be delivered upon vesting
that number of shares equal to the amount of the tax liability divided by the
fair market value (as defined by the Plan) of one share of the Company’s common
stock on the date the tax to be withheld is to be determined (the “Tax Date”);
or

 

(iii)          Holders may elect
to pay the tax liability in shares of the Company’s Common Stock by delivering
to the Company good and marketable title to that number of shares of Mature
Stock (as defined in the Plan) owned by the holder as shall equal the amount of
the tax liability divided by the fair market value of one share of the Company’s
common stock on the Tax Date.

 

(iv)          If a holder does not
notify the Company on or before the Tax Date as to the manner the holder wishes
to provide for withholding taxes, the Company may, without notice to the
holder, satisfy its withholding obligations as provided in clause (ii) above
or any other manner permitted by law.

 

(v)           No fractional shares
will be issued in connection with any election to satisfy a tax liability by
paying in shares. The balance of any tax liability representing a fraction of a
share will be settled in cash by the Participant.

 

(vi)          The amount of tax
which may be paid  pursuant to a stock payment election under clause (ii),
(iii) or (iv) above will be the Company’s minimum required federal
(including FICA and FUTA) and state withholding amounts at the time of the
election to pay the taxes with surrendered or withheld shares.

 

(vii)         The foregoing
provisions  relating to the use of stock to satisfy obligations may be
unilaterally revised by the Committee from time to time to conform the same to
any applicable laws or regulations.

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