Document:

Exhibit 10

Exhibit 10.1

 

AMENDMENT TO STEPAN COMPANY

MANAGEMENT INCENTIVE PLAN 

(As Amended and Restated 

Effective as of January 1, 2005)

 
The Stepan Company Management Incentive Plan (As Amended and Restated Effective as of January 1, 2005) (the "Plan") is hereby amended, effective as of January 1, 2008, in the following respects:

1.By deleting Section 7.1 of the Plan and inserting in lieu thereof the following:
"7.1Amendment and Termination.  The Board of Directors may from time to time amend the Plan in such respects as it deems advisable and may terminate the Plan at any time; provided, however, that no such amendment or termination shall adversely affect any right or obligation with respect to any Award theretofore made under the Plan or cause any amount deferred pursuant to the Plan to be included in gross income or subject to additional tax and interest under Code Section 409A(a)(1)."

2.By deleting the first sentence of Section 2.2 of the Plan and inserting in lieu thereof the following:
"The amount of an incentive award (the "Award") for any calendar year shall be determined by the Committee and shall be based upon the performance of the Company, the performance of the Participant's department (if relevant), and the performance of the Participant; provided, however, that the amount of an Award to any Participant for any calendar year shall not exceed 75 percent (125 percent for calendar years beginning on or after January 1, 2008) of the amount of the actual base salary payable to the Participant by the Company for the calendar year for which the Award is made, exclusive of the Award or any other form of executive compensation, stock option or other fringe benefit."ex10-1.htm

    
      

    

    Exhibit
10.1

    

    

    PERFORMANCE-BASED

    COMPENSATION
AGREEMENT

     

    THIS
AGREEMENT, entered into as of this 23rd day of
January 2008, between CHAPPARRAL BOATS, INC., a Georgia corporation (hereinafter
called the "Company"), and JAMES A. LANE, JR. (hereinafter called the
"Employee").

     

    W
I T N E S S E T H:

     

    WHEREAS,
the Company desires to employ Employee and Employee desires to accept employment
on the terms and conditions hereinafter stated; and

     

    NOW,
THEREFORE, in consideration of the employment of Employee by the Company, and
the promises and mutual covenants and agreements herein contained, the parties
agree as follows:

     

    1.
Definitions

     

    a) The
term "Pre-tax Profits" as used herein means the profits of the Company
determined in accordance with generally accepted accounting principles
consistently applied prior to:

     

    (i) any
provision being made for a Special Payment (as defined in Section
1(c);

     

    (ii) any
recognition of an extraordinary gain or loss;

     

    (iii) any
provision for federal and state income taxes;

     

    (iv) any
provision being made for the bonus provided for in Section 3(b) hereof and any
bonus provided for in Section 3(b) of the performance based compensation
agreement between the Company and William S. Pegg dated the date hereof;
and

     

    The
parties acknowledge that in determining Pre-tax Profits interest on the amount
of working capital employed for expansion through acquisitions and/or for
Capital Improvements shall accrue for the account of Parent at the rate of
one-half percent (1/2%) over the prime rate charged by SunTrust Bank, Atlanta,
Georgia at the date of such employment of funds, which interest shall accrue
from the date such funds are contributed or designated for such employment
through the date on which such funds are deemed repaid to Parent; and such
profit shall be determined by the independent certified public accountant
regularly employed by the Company in accordance with generally accepted
accounting principles consistently applied except as herein modified; and, in
particular, a sale of goods by the Company shall not be deemed to occur until
the purchaser accepts delivery thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) The
term "Parent" as used herein means Marine Products Corporation, a Delaware
corporation.

     

    (c) The
term "Special Payment" as used herein means any management fee or charge
assessed by Parent against the Company other than charges (which are no greater
than would be charged by an unrelated third party) for goods and services
furnished to the Company by Parent of a type which the Company customarily
obtains or requests and which the Company would require or would desire to
obtain from a third party but for their availability from or through Parent.
Additionally, the term "Special Payment" shall include intercompany overhead
allocation or general accounting fee.

     

    2. Term
and Duties

     

    (a)
Employee shall serve the Company as its President and Chief Executive Officer
for a term of five years beginning November 3, 2007 and ending November 3, 2012
unless earlier terminated.

     

    (b) In
addition to those duties and responsibilities set forth in the corporate bylaws
of the Company, Employee shall have the duties of leadership and responsibility
normally associated with the offices President, Chief Executive Officer, Chief
Financial Officer and Treasurer of and shall be responsible for marketing,
dealer relations, accounting and administration. He shall use his best efforts
to perform his duties in a manner which is in the best interest of the Company.
His responsibilities shall include the negotiation and execution of contracts on
behalf of the Company in the ordinary course of business, and the employment and
supervision of personnel required for the operation of the Company, and such
other duties consistent with his position with the Company as may from time to
time be assigned to him by the Chairman of the Board of Directors of the Company
or the President of the Parent if the Board of Directors of the Company shall so
designate.

     

    (c) For
so long as Employee is employed by the Company, Employee agrees

     

    (i) to
devote all his time, energy and skill during regular business hours to the
performance of the duties of his employment (accrued vacations and reasonable
absences due to illness excepted), and (ii) not to engage directly or indirectly
in any active work for which he receives compensation or other emolument without
the prior written consent of the Chairman of the Board of Directors of the
Company or such other person as the Board of Directors of the Company shall
designate from time to time, provided that nothing contained herein shall be
deemed to preclude Employee from owning 1% or less of the outstanding shares of
any publicly traded company or from serving on the board of directors of any
company in which Employee invests in accordance with the terms of this
Agreement.

     

    3.
Compensation

     

    (a)
Employee shall receive a base salary of $67,841 per year paid in approximately
equal weekly installments in arrears and in accordance with the Company's normal
payroll and withholding procedures.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (b) In
addition to the compensation provided for in Section 3(a) hereof, Employee shall
be paid an incentive bonus equal to ten (10%) percent of Pre-tax Profits. The
Pre-tax Profits for each fiscal year (or part thereof) during the term of this
Agreement shall be estimated at the end of each calendar month and an advance
payment of the amount of the estimated incentive bonus which has been earned
during such fiscal year (less previous advances) shall be paid to Employee
following such determination and prior to the end of the next following month.
The definitive amount of the incentive bonus shall be determined by the firm of
certified public accountants employed by the Parent in connection with their
examination of the financial statements of the Company for each fiscal year
during the term of this Agreement which determination shall be final and binding
on Employee and the Company. Following such determination the Company shall pay
Employee any additional incentive bonus due him or Employee shall reimburse the
Company for any over-payments of the incentive bonus, as the case may
be.

     

    4.
Notices

     

    Any
notice required or permitted to be given to one party by the other party hereto
pursuant to this Agreement shall be in writing and shall be personally delivered
or sent by United States Mail, certified or registered, return receipt
requested, first class postage and charges prepaid, in envelopes addressed to
the parties as follows:

     

    
      	 	Employee:	

              James A. Lane, Jr.

            
	 	 	

              Industrial
      Park Blvd.

            
	 	 	
              Nashville,
      Georgia   31639

            
	 	 	 
	 	Company:	

              Chaparral
      Boats, Inc.

            
	 	 	

              c/o
      Marine Products Corporation

            
	 	 	

              2170
      Piedmont Road, N.E.

            
	 	 	

              Atlanta,
      Georgia  30329

            
	 	 	

              Attention:  Richard
      A. Hubbell

            

    

    

    or at
such other addresses as shall be designated in writing as aforesaid by either
party to the other party hereto. Notices delivered in person shall be effective
on the date of delivery. Notices sent by United States Mail shall be effective
upon the date of actual receipt.

     

    5.
Assignment

     

    The
assignment by Employee of this Agreement or any interest herein, or of any money
due or to become due by reason of the terms hereof, without the prior written
consent of the Company, shall be void. This Agreement may be assigned by the
Company to any subsidiary or successor; provided, that in the event of any such
assignment, the Company shall obtain an instrument in writing from such assignee
assuming the obligations of the Company hereunder and shall deliver an executed
copy thereof to Employee.

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement and have
affixed their seals as of the date first above written.

     

    
      
        
        

      

      
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    COMPANY:

    CHAPARRAL
BOATS, INC.

    

    

    

    /s/ Richard A.
Hubbell

    Richard
A. Hubbell

    President
and Chief Executive Officer

    Marine
Products Corporation

    

    /s/ James A. Lane, Jr.

    James A.
Lane, Jr.

    President
and Chief Executive Officer

    Chaparral
Boats, Inc.

     

    

    Attest
or Witness:

     

    By: /s/ Ann
Baldree

    Ann
Baldree

    Sales
Manager

    Sales
Manager

     

     

     

    -4-

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