Document:

The Photronics, Inc. Non-Qualified Stock Option Agreement

 Exhibit 10.1 
  

			
	 

	  	*NON-QUALIFIED STOCK OPTION AGREEMENT *

  
 PHOTRONICS, INC. (the
“Company”), a Connecticut corporation, hereby grants                           (the
“Optionee”) an option to purchase a total of              (            )
shares of Common Stock (“Common Stock”) of the Company, at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the 2000 Stock Option Plan (the “Plan”) adopted by the
Company which is incorporated herein by reference. 
  
 1) Nature of the Option 
  
 This option is not
intended to be an “incentive stock option” within the meaning of section 422A of the Internal Revenue Code of 1986. 
  
 2) Option Price 
  
 The Option Price is $             for each share. 
  
 3) Exercise of Option 
  
 This option shall be exercisable by written notice which shall state the
election to exercise the option, the number of shares in respect of which the option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as may be
required by the Company pursuant to the provisions of the Plan or this Agreement. Such written notice shall be signed by the Optionee or other person entitled to exercise the option pursuant to the provisions of this Agreement or the Plan and shall
be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the purchase price. Payment of the purchase price shall be in cash, currency and/or shares of Common pursuant to the
provisions of the Plan. Unless the shares of Common Stock have been registered under the Securities Act of 1933 pursuant to a registration statement filed on Form S-8 or otherwise, the certificate or certificates for shares of Common Stock as to
which the option shall be exercised shall be registered in the name of the Optionee and shall contain the following legend: 
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES
ONLY AND NOT WITH A VIEW TO THE DISTRIBUTION THEREOF, AND SUCH SECURITIES MAY NOT BE SOLD OR 

 
TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS REGISTERED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES
SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT, AND UNLESS SUCH SALE OR TRANSFER IS AUTHORIZED UNDER APPLICABLE STATE LAW.” 
  
 4) Forfeiture of Options and Repayment of Market Value of
Options 
  
 If, while an Employee or Director (as defined in
the Plan) or at any time within one (1) year after Optionee ceases to be an Employee or Outside Director, Optionee engages in any activity in competition with any activity of the Company, including, but not limited to: 
  

	 	(a)	conduct related to the Optionee’s employment for which either criminal or civil penalties against the Optionee may be sought; 

  

	 	(b)	violation of Company policies, including, without limitation, the Company’s insider trading policy; 

  

	 	(c)	accepting employment with or serving as a consultant, advisor or in any other capacity to an employer that is in competition with or acting against the interests of the Company,
including employing or recruiting any present, former or future employee of the Company; 

  

	 	(d)	disclosing or mis-using any confidential information or material concerning the Company; or 

  

	 	(e)	participating in a hostile takeover attempt, then: 

  

	 	i)	options under this Agreement and any other stock options and stock awards from the Company (collectively referred to as “Grants”) shall terminate effective the date on
which the Optionee enters into such activity, unless terminated sooner by operation of another term or condition of the Plan or the plan under which such Grants were granted; 

  

	 	ii)	the aggregate difference between the exercise price of options included in the Grants which were exercised within one (1) year prior to the date (the “Termination Date”)
Optionee ceased to be an Employee or Outside Consultant or within one (1) year after the Termination Date and the closing market value on the date of exercise of such shares covered by such options shall be paid by the Optionee to the Company; and

  

	 	iii)	the aggregate of the closing market value on the date the forfeiture provision expired for all shares subject to restricted stock awards included in the Grants as to which the
forfeiture provision expired within one (1) year prior to or after the Termination Date shall be paid by the Optionee to the Company. 

 By accepting the options subject to this Agreement, the Optionee consents to a deduction from any amounts
the Company owes the Optionee from time to time (including amounts owed as wages or other compensation, fringe benefits or vacation pay, as well as any other amounts owed by the Company), to the extent of the amounts the Optionee owes the Company
under the foregoing paragraph. Whether or not the Company elects to make any set-off in whole or in part, if the Company does not recover by means of set-off the full amount the Optionee owes it, calculated as set forth above, the Optionee agrees to
pay immediately the unpaid balance to the Company. In addition, if Optionee fails to pay the Company the full amount due within thirty (30) days of demand by the Company, Optionee agrees to pay the Company’s reasonable costs of collection
(including attorney’s fees) as well as interest on the unpaid amount at the rate of 1% per month or if less, the maximum rate allowed by law, for each day that such amount remains unpaid. Optionee may be released from his/her obligations under
this paragraph above only by the Board of Directors or the Compensation Committee of the Company. 
  
 5) Extent of Exercise 
  
 This option shall be exercisable (subject to the conditions as to employment and other matters contained herein or in the Plan) with respect to one
hundred percent (100%) of the shares purchasable hereunder on                     . 
  
 Notwithstanding the foregoing, if the Company is sold, or merged (pursuant
to which merger the Company is not the surviving entity), or substantially all of the assets of the Company are sold or there is a sale by any of the Company’s existing stockholders to a third party of 50% or more of the Company’s issued
and outstanding Common Stock, then all of the Options subject to this Agreement shall be immediately exercisable. 
  
 6) Restrictions on Exercise 
  
 This option may not be exercise if the issuance of such shares upon such exercise would constitute a violation of any applicable Federal or state
securities laws or other law or regulation. As a condition to the exercise of this option, the Company may require the Optionee to make any representation or warranty to the Company as may be required by any applicable law or regulation or may
otherwise be appropriate. 
  
 7)
Non-Transferability of Option 
  
 This option may not be
transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. The terms of this option shall be binding upon the executors, administrators,
heirs, successors and assigns of the Optionee. 
  
 8) Term of Option 
  
 This option may not be
exercised more than ten (10) years from the date of grant of this option and may be exercised during such term only in accordance with the Plan, including the terms thereof prohibiting or restricting exercise after a severance of the Optionee’s
relationship with the Company, and the terms of this option. 

 9) Withholding 
  
 The Company reserves the right to make whatever arrangements it deems appropriate for the withholding of any taxes in
connection with any transaction contemplated by this Agreement or the Plan. 
  
 10) Merger 
  
 This
Agreement supersedes any other agreement, written or oral, between the parties with respect to the subject matter hereof. 
  
 Date of Grant:
                         
  

			
	PHOTRONICS, INC.
		
	 By:
	 	  

	 	 	             Name

  
 Agreed to and accepted this
     day of                     , 20    . 
  

	
	  

 NameEXECUTIVE CASH BONUS PLAN DATED NOVEMBER 4, 2003

 EXHIBIT 10.11 
  
 2004 Variable Compensation (Executive Bonus) and Base 
 Program for CSP Inc. Vice Presidents and 
 General Managers 
  
 The 2004 Variable Compensation and Base Pay programs provide the opportunity
for incentive earnings for Vice Presidents and General Managers based on how well they and the company perform. 
  
 The Variable Compensation Program places emphasis on company performance and is focused on the business realities of the coming year. If CSPI does well,
Vice Presidents and General Managers will too. 
  
 The Base Pay
Program for Vice Presidents and General Managers contains a merit budget which places a premium on personal performance. Both programs are designed to encourage Vice Presidents and General Managers to provide the leadership and direction necessary
to achieve the company’s business goals. 
  
 These programs
have three important goals: 
  

	 	1.	 	motivate performance 

  

	 	2.	 	be competitive 

  

	 	3.	 	position the company to capitalize on the progress it makes this year. 

  

Competitive Compensation 
  
 The programs deliver a level of pay that is fully comparable to what other people in similar positions in different companies receive. The company knows
that its pay levels must be competitive to attract and retain the talent we need to succeed as a company. We need highly-trained and uniquely skilled people to make decisions and provide the leadership that will help us achieve our business goals.

  
 The review of the pay practices of our peer companies shows
that Vice President and General Manager level positions contain a merit pay component as well as variable compensation. Personal performance measured against individual goals will determine each Vice President and General Managers’ merit
increase. 
  
 Variable Compensation 
  
 The Variable Compensation target incentive for Vice Presidents and General
Managers is 5-30% of base pay. Each Vice President and General Manager will have their entire Variable Compensation based on a Revenue and Operating Income matrix for their specific operation or on Gross Profit attainment. 
  
 Individual Performance Component 
  
 The individual performance component determines the merit increase
percentage for Vice Presidents and General Managers 
  
 The
program scores individual performance for the following goals: 
  
 MBOs 
 Accountabilities 
 Group Performance Factors 
 Leadership 
  
 MBOs are
performance improvement initiatives. Accountabilities are the day-to-day responsibilities of the job. Group performance factors are team achievement targets. 
  

 1 

 Leadership is a critical success factor for CSP in 2004, because we need leaders to motivate and reward
people to drive the transition of our business in 2004. 
  
 In
evaluating leadership, CSP will measure several important factors linked to how well Vice Presidents and General Managers align their priorities and that of their people with the company’s business strategies. The leadership evaluation will be
determined by how well participants: 
  
 Communicate and
implement the strategic direction.    Foster the development of a vision for their unit which is consistent with and supportive of the company’s. Ensure that everyone in their organization has goals and accountabilities
linked to the strategies, and that they are held accountable for delivering on them. Understand that implementing strategies may entail significant changes, and that will mean changes in them as well as their organization. 
  
 Create and sustain a culture focused on customers, quality, and
people.    Seek to understand the emerging culture and lead by example. Personally engage in behaviors which reflect the new culture, and hold those in their organization accountable for that as well. Reinforce the importance
of the culture by the action they take: select people who demonstrate the capability for more responsibility; reward those who do and communicate your support. 
  

Motivate and develop your employees.    Set high performance standards, communicate expected results and behaviors, and
provide regular feedback to employees. Identify and remove barriers to employee success and be open to their ideas for improvement. Complete appraisals on time and reward employees for results. Insure that all employees have development plans which
reflect company and individual interests. Delegate responsibility to employees based on their capabilities and interests. Increase employee visibility, decision making and responsibility. Attract, retain and develop people of diverse backgrounds.

  
 Be open to developing
yourself.    Understand your own strengths and development needs, and strive to be more effective by building on the strengths and overcoming weak areas. Become an active learner, open to new ideas and approaches. Seek
feedback from others, including your peers, direct reports and boss. 
  

 2 

																													
	 	  	 	  	 	  	2004 CSP INC. EXECUTIVE BONUS MATRIX  

	 	  	 	  	 	  	PERFORMANCE MULTIPLIER  

	 	 		 	 	 	 	 	 	 	 	 	 	 	 
	 	  	110  	  	 	  	0.95	  	1.10	  	1.40	  	1.70	  	2.00	  	2.30	  	2.60	  	2.85	  	2.95	  	3.05	  	3.15	  	3.25
	 	 		 											 
	 	  	105  	  	 	  	0.90	  	1.05	  	1.35	  	1.65	  	1.95	  	2.25	  	2.55	  	2.80	  	2.90	  	3.00	  	3.10	  	3.20
	 	 		 											 
	 % OF
	  	100  	  	 	  	0.85	  	1.00	  	1.30	  	1.60	  	1.90	  	2.20	  	2.50	  	2.75	  	2.85	  	2.95	  	3.05	  	3.15
	 	 		 											 
	 REVENUE
	  	95  	  	 	  	0.80	  	0.95	  	1.25	  	1.55	  	1.85	  	2.15	  	2.45	  	2.70	  	2.80	  	2.90	  	3.00	  	3.10
	 	 		 											 
	 ATTAINED

 
	  	90    
	  	 	  	0.75  
	  	0.90  
	  	1.20  
	  	1.50  
	  	1.80  
	  	2.10  
	  	2.40  
	  	2.65  
	  	2.75  
	  	2.85  
	  	2.95  
	  	3.05  

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	0.02	  	0.06	  	0.10	  	0.14	  	0.18	  	0.22	  	0.26	  	0.30	  	0.34	  	0.38	  	0.42	  	0.46
	 	  	 	  	 	  	EPS ATTAINED  

  

 3

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