Document:

EXHIBIT 10.1

 

Exhibit 10.1

	 	 	 
	DATE:

	 	                    , 2005
	 
	 	 
	TO:

	 	[insert Name]
	

	 	[insert Business Unit]
	 
	 	 
	FROM:

	 	                    
	 
	 	 
	SUBJ:

	 	Stock Option and Cash Performance Award

We are pleased to inform you that the Compensation Committee of Dover Corporation (“Dover”) has
granted you a stock option and cash performance program award under the terms of the Dover
Corporation 2005 Equity and Cash Incentive Plan (the “Plan”). Congratulations!

Grants are made only to key officers and employees who are in a position to materially affect the
profitability and growth of their organizations. Grants are given to those recognized as key to
their operations, but the actual reward can only be earned in the future, as Dover stock
appreciates and your business performs well.

Non-Qualified Stock Option

Here are the details for your non-qualified stock option grant:

Number of shares of Dover Common Stock – [ ]

Option exercise price per share – $ [ ]

Date of Grant – [ ]

Your option is subject to all of the terms and provisions of the Plan (other than those terms and
provisions contained in Parts C or D thereof or that otherwise relate solely to restricted stock or
the cash performance program), which terms and provisions are expressly incorporated into and made
a part of your option as if set forth in full herein. A copy of the Plan is included with this
award agreement. In addition, your option is subject to the following:

     1. Your option shall expire on the tenth anniversary of the Date of Grant (the “Expiration
Date”), subject to earlier termination as provided in the Plan.

     2. Subject to the other provisions of the Plan regarding the exercisability of options granted
thereunder, including without limitation Paragraphs 11 through 15 thereof, your option may be
exercised, in whole or in part (but not for less than 500 option shares) with respect to full
shares of Dover Common Stock, at any time commencing on the third anniversary of the Date of Grant
(or, if earlier, the occurrence of a change in control as defined in Paragraph 35 of the Plan) and
on or prior to the Expiration Date by giving written notice to Dover of the number of shares to be
purchased accompanied by payment of the full purchase price of such shares as set forth in
Paragraph 8 of the Plan.

 

 

     3. As provided in Paragraph 32 of the Plan, at the time you exercise your option, in whole or
in part, or at any time thereafter as requested by Dover, you hereby authorize withholding from
payroll and any other amounts payable to you, and otherwise agree to make adequate provision as
directed by Dover, for any sums required to satisfy the minimum federal, state, local and foreign
tax withholding obligations of Dover or any of its affiliates, if any, which arise in connection
with the exercise of your option. Dover may, in its sole discretion, and in compliance with any
applicable conditions or restrictions of law, withhold from fully vested shares of Dover Common
Stock otherwise issuable to you upon the exercise of your option that number of whole shares of
Dover Common Stock having a fair market value, determined by Dover as of the date of exercise, not
in excess of the minimum amount of tax required to be withheld by law.

     4. Your option is not transferable by you other than by will or the laws of descent and
distribution, except that all or any part (but in no event with respect to less than 500 option
shares) of your option may be transferred to members of your immediate family (defined as your
spouse, children and/or grandchildren), or to one or more trusts for the benefit of such family
members. You may not receive any consideration for the transfer. All references in Paragraphs 11
through 13 of the Plan to the death, disability or retirement of the option holder or the
termination of the option holder’s employment with Dover shall continue to refer to you, and any
portion of your option so transferred shall continue to be subject to the same terms and conditions
that were applicable to your option immediately prior to its transfer (except that such transferred
option or portion thereof may not be further transferred by the transferee during the transferee’s
lifetime).

     5. Your option is a non-qualified stock option and shall not be treated for tax purposes as an
incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder (the “Code”).

     6. If you are not a resident of the United States, the exercise of the option, or the sale of
the Dover stock bought under the option, within certain time periods could subject you and/or Dover
to adverse tax consequences. If you are located in such a jurisdiction, Dover may advise you as to
a minimum required holding period of the option or Dover stock and you will not be permitted to
exercise the option or sell the Dover stock, as the case may be, during the minimum required
holding period specified by Dover. Any minimum required holding period communicated to you by Dover
will have the effect of amending this award agreement or any other award agreements issued to you
under the Plan.

Cash Performance Program Award 

Here are the details for your cash performance program award.

Your business unit is [ ]

The base year is [ ]

The performance period is the three-year period commencing [ ]

Your performance grant at the 100% level is $[ ]. The actual cash distribution will

be derived from the Cash Performance Award Matrix attached hereto.

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Your cash performance program award is subject to all the terms and provisions of the Plan (other
than those terms and provisions contained in Part B or C thereof or that otherwise relate solely to
stock options or restricted stock), which terms and conditions are expressly incorporated into and
made a part of the award as if set forth in full herein. A copy of the Plan is included with this
award agreement. In addition, your award is subject to the following:

     1. Within 90 days following the end of the performance period, Dover will pay you a cash
performance payment if your Business Unit has reached certain performance targets, as more fully
described below, and the other conditions of your award are satisfied.

     If your Business Unit’s average annual percentage rate of growth in earnings during the
performance period (determined by applying the Implicit Price Deflator for Gross Domestic Product,
as calculated by the U.S. Commerce Department, or other applicable service, as may be appropriate
for Business Units based outside the U.S., to nominal earnings) over base year earnings is not less
than 0% and if your Business Unit’s average return on capital employed is not less than 10%, you
will be entitled to receive your cash performance payment as derived from the attached Cash
Performance Award Matrix, on a sliding grid scale with interpolations to the nearest 1/10 of 1%
between the percentage points with respect to earnings and return on total capital employed. The
base year earnings (from which earnings growth is measured) for each Business Unit shall be not
less than an amount equal to a 10% return on capital employed by such Business Unit during the base
year.

     2. For purposes of the New York Corporate Office Business Unit, earnings shall mean Dover’s
consolidated fully diluted earnings per share after taxes and after the cost of this Plan. For
purposes of any other Business Unit, earnings shall mean before-tax earnings of that particular
Business Unit after its applicable share of the cost of the Plan, but excluding gains and losses
from the disposition of businesses. For all Business Units, extraordinary gains shall be excluded
from earnings. Extraordinary gains shall be determined under generally accepted accounting
principles and shall apply only to material items and transactions that are distinguished both by
their unusual nature and by the infrequency of their occurrence.

     3. For purposes of New York Corporate Office Business Unit participants, average return on
capital means the average annual consolidated net earnings of Dover after the cost of the Plan, but
before extraordinary gains, during the performance period, divided by the average sum of the
stockholders’ equity at the beginning and end of each calendar quarter during the performance
period. For purposes of participants at any other Business Unit, return on capital shall be
computed in the manner indicated in Dover’s Accounting Manual as amended from time to time.

     4. The aggregate maximum cash payout for each Business Unit shall not exceed 30% of its annual
earnings increase over the performance period. In no event will your cash performance payment
exceed US$2 million (or the equivalent amount in local currency) as provided in Paragraph 26 of the
Plan.

     5. The following rules will apply if you are transferred from one Business Unit (the
“Transferor Business Unit”) in the Dover Controlled Group to another Business Unit (the

3

 

     “Transferee Business Unit”) in such group during the performance period. The term “Dover
Controlled Group” means Dover and its subsidiaries and divisions.

     (a) If the transfer occurs during the third year of the performance period, your cash
performance payment, if any, shall be based on the performance of the Transferor Business
Unit.

     (b) . If the transfer occurs during the first two years of the performance period, your
cash performance payment, if any, shall be based on the performance of the Transferor
Business Unit or the Transferee Business Unit, whichever you choose, provided that,
if you have chosen to have the payout of any other Cash Performance Program award based on
the performance of the Transferee Business Unit, then the payout of this award, if any,
shall also be based on the performance of the Transferee Business Unit.

     (c) In both (a) and (b) above, your cash performance payment, if any, will be based
upon the original performance grant dollar amount.

     6. The following rules will apply in the event of a change of control (as defined in Paragraph
35 of the Plan) of Dover.

     (a) The performance period will end on the last day of the month prior to the month in
which the change of control occurs.

     (b) The cash performance payment, if any, to which you will be entitled will be equal
to the cash performance payment, as determined under the provisions of the Plan and as set
forth herein (but without regard to this subparagraph 6 (b)), multiplied by a fraction, the
numerator of which is the number of months in the performance period as shortened by
subparagraph 6(a) and the denominator of which is 36.

     (c) Any cash performance payment to which you are entitled will be made promptly, but,
except to the extent required by Section 409A of the Code to avoid any penalties on you, in
no event more than five days after the change of control.

The stock option and cash performance program awards made to you do not confer any benefits, rights
or privileges on you other than those explicitly set forth in the Plan or this award agreement. By
accepting this award, you agree that any benefits that you may realize under the Plan shall not be
treated as wages, salary or any other form of remuneration in the event of severance, redundancy,
or resignation, or for purposes of calculating any pension, benefits or other remuneration to which
you may become entitled. You also acknowledge that benefits provided under the Plan are ex gratia
and entirely at the discretion of Dover and your employer. Dover and your employer reserve the
right to amend, modify or terminate the Plan at any time in their discretion without notice. By
accepting this award, you consent to the transfer of any information relating to your participation
in the Plan to Dover and its affiliates.

In consideration of the benefits conferred on you by this instrument, as well as your continued
employment by Dover Corporation or one or more of its affiliates, you expressly recognize the

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obligations you may have under Paragraph 36 (Non-compete) of the Plan with respect to all your
stock option and cash performance program awards under the Plan.

You expressly acknowledge that neither Dover nor any of its affiliates shall be responsible for, or
have any liability to you or any other person with respect to, any taxes or penalties which may be
imposed on you in connection with any stock option or cash performance program awards granted under
the Plan, in the event that such award becomes subject to Section 409A of the Code and the
regulations promulgated thereunder.

If and to the extent required by Section 409A of the Code to avoid any penalties on you, payments
to you hereunder after termination of your employment may be distributed on the later of (i) the
dates specified in this award agreement or any other agreement with Dover, and (ii) six (6) months
after the date your employment with Dover or any of its affiliates terminates.

Please acknowledge receipt of a copy of the Plan and your agreement to the terms and conditions set
forth herein and therein by signing and returning one copy of this award agreement, whereupon your
stock option and cash performance program award will become a binding agreement between you and
Dover Corporation. The other copy is for your files.

	 	 	 	 	 
	
	 	

	Employee	 	[insert Title]
	

	 	For Dover
	 	

	 
	 	 	 	 
	

	 	 	 	 
	Date
	 	 	 	 

5<PAGE>
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                                                                    Exhibit 10.1

                               AVISTA CORPORATION
                        2005 NEO BASE COMPENSATION TABLE

<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITION                CURRENT BASE COMPENSATION            NEW BASE COMPENSATION
---------------------------                -------------------------            ---------------------
<S>                                        <C>                                  <C>
Gary G. Ely
Chairman of the Board, President and               $625,000                           $687,500
Chief Executive Officer

Malyn K. Malquist                                  $300,000                           $314,000
Senior Vice President, Chief Financial
Officer and Treasurer

Scott L. Morris                                    $275,000                           $302,500
Senior Vice President

David J. Meyer                                     $240,000                           $240,000
Vice President and Chief Counsel for
Regulatory and Governmental Affairs

Ronald R. Peterson                                 $216,000                           $218,000
Vice President
</TABLE>

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