Document:

exv10w23

Exhibit 10.23

RESTRICTED STOCK UNIT AGREEMENT

BELL MICROPRODUCTS, INC.

1998 STOCK PLAN

(AS AMENDED AND RESTATED THROUGH APRIL 30, 2002)

     THIS AGREEMENT is made effective as of                                          by and
between Bell Microproducts, Inc. a California corporation (the “Company”), and                                          (the “Service Provider”).

     WITNESSETH:

     WHEREAS, Service Provider is, on the date hereof, a Service Provider of the Company, as such
term is defined in the Plan; and

     WHEREAS, the Company wishes to grant a Restricted Stock Unit Award to Service Provider which
will permit the Service Provider to acquire shares of the Company’s Common Stock pursuant to the
Company’s 1998 Stock Award Plan (the “Plan”); and

     WHEREAS, the Administrator of the Plan has authorized the grant of a Restricted Stock Unit
Award to Service Provider;

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained,
the parties hereto agree as follows:

     1. Notice of Grant of Restricted Stock Unit Award. The Company hereby grants to
Service Provider on the date set forth above (the “Date of Award”) a Restricted Stock Unit Award
(the “Award”) for                       (        ,         ) Restricted Stock Units
on the terms and conditions set forth herein, which shares are subject to adjustment pursuant to
Section 14(a) of the Plan. Service Provider shall not be entitled to vote any shares of stock
which may be acquired through the Restricted Stock Units, shall not receive any dividends
attributable to such shares, and shall not have any other rights as a shareholder with respect to
such shares until the risks of forfeiture described in Section 2 have lapsed.

     2. Vesting of Restricted Stock. Except as otherwise provided in Section 4, the
Restricted Stock Units subject to this Award shall remain forfeitable until the risks of forfeiture
lapse according to the following vesting schedule:

 

 

	 	 	 	 	 
	Vesting Date	 	Cumulative Percentage of Units Vested
	 
	First Anniversary of Date of Award
	 	 	25	%
	Second Anniversary of Date of Award
	 	 	50	%
	Third Anniversary of Date of Award
	 	 	75	%
	Fourth Anniversary of Date of Award
	 	 	100	%

If Service Provider’s employment or other service relationship with the Company or any Subsidiary
terminates at any time prior to a Vesting Date for any reason, including but not limited to Service
Provider’s voluntary resignation, death, disability or termination by the Company, Service Provider
shall immediately forfeit all Restricted Stock Units subject to this Award which have not yet
vested and for which the risks of forfeiture have not lapsed. As the risks of forfeiture on
Restricted Stock Units lapse, the Company shall cause to be issued one or more stock certificates
representing shares of Common Stock in Service Provider’s name and shall deliver such certificates
to the Service Provider in satisfaction of the Restricted Stock Units.

     3. General Provisions.

          a. Employment. This Agreement shall not confer on Service Provider any right with
respect to continuance of employment or other relationship with the Company or any Subsidiary, nor
will it interfere in any way with the right of the Company or any Subsidiary to terminate such
employment or relationship.

          b. Securities Law Compliance. Service Provider shall not transfer or otherwise
dispose of the shares of Stock received pursuant to this Award until such time as the Company shall
have determined that such transfer or other disposition will not violate any state or federal
securities or other laws. Service Provider may be required by the Company, as a condition of the
effectiveness of this Award, to agree in writing that all Stock received pursuant to this Award
shall be held, until such time that such Stock is registered and freely tradable under applicable
state and federal securities laws, for Service Provider’s own account without a view to any further
distribution thereof, that the certificates for such shares shall bear an appropriate legend to
that effect, and that such shares will not be transferred or disposed of except in compliance with
applicable state and federal securities laws.

          c. Mergers, Recapitalizations, Stock Splits, Etc. Pursuant and subject to Section 14
of the Plan, certain changes in the number or character of the shares of Stock of the Company
(through sale, merger, liquidation, recapitalization, stock split, stock dividend, or otherwise)
shall result in an adjustment, reduction, or enlargement, as appropriate, in the number of
Restricted Stock Units subject to this Award. Any additional Restricted Stock Units that are
credited pursuant to such adjustment shall be subject to the same restrictions as are applicable to
the Restricted Stock Units with respect to which the adjustment relates.

2

 

          d. Shares Reserved. The Company shall at all times during the term of this Award
reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy
the requirements of this Agreement.

          e. Withholding Taxes. In order to permit the Company to comply with all applicable
federal or state income tax laws or regulations, the Company may take such action as it deems
appropriate to insure that, if necessary, all applicable federal or state payroll, income or other
taxes are withheld from any amounts payable by the Company to Service Provider. If the Company is
unable to withhold such federal and state taxes, for whatever reason, Service Provider hereby
agrees to pay to the Company an amount equal to the amount the Company would otherwise be required
to withhold under federal or state law prior to the transfer of any certificates for the shares of
Stock in satisfaction of the Restricted Stock Units subject to this Award. Service Provider may,
subject to the approval and discretion of the Administrator, or such other administrative rules it
may deem advisable, elect to have all or a portion of such tax withholding obligations satisfied by
delivering shares of the Company’s Common Stock having a fair market value, as of the date the
amount of tax to be withheld is determined under applicable tax law, equal to such obligations.

          f. Scope of Agreement. The terms of the Plan and this Agreement shall bind and inure
to the benefit of the Company and its successors and assigns and of Service Provider and any
successor or successors of Service Provider.

          g. 1998 Stock Plan. The Restricted Stock Unit Award evidenced by this Agreement is
granted pursuant to the Plan, a copy of which Plan has been made available to Service Provider and
is hereby incorporated into this Agreement. This Agreement is subject to and in all respects
limited and conditioned as provided in the Plan. All defined terms of the Plan shall have the same
meaning when used in this Agreement. The Plan governs this Restricted Stock Award and, in the
event of any questions as to the construction of this Agreement or in the event of a conflict
between the Plan and this Agreement, the Plan shall govern, except as the Plan otherwise provides.

     4. Severability. In the event that any provision of this Agreement is held invalid by
a court of competent jurisdiction, the remaining provisions shall nonetheless be enforceable
according to their terms. Any provision held overbroad as written shall be deemed amended to
narrow its application to the extent necessary to make the provision enforceable under applicable
law, and shall be enforced as amended.

3

 

     ACCORDINGLY, the parties hereto have caused this Agreement to be executed on the day and year
first above written.

	 	 	 	 	 
	 	BELL MICROPRODUCTS, INC.

 	 
	 	By:  	
 	 
	 	 	Title: Director, Human Resources 	 
	 	 	 	 
	 
	 	OPTIONEE:

 	 
	 	
 	 
	 	Signature 	 
	 
	 	
 	 
	 	Print Name 	 
	 

4exv10w24

Exhibit 10.24

Bell Microproducts, Inc.

Management Incentive Plan Description

Year 2006

The Management Incentive Plan, (“Plan), is established to provide the Chief Executive Officer,
other executive officers, and division heads with a financial incentive to meet and exceed
financial and strategic objectives. The following is a description of the Plan.

	1.	 	Participation:
	 
	 	 	The Compensation Committee of the Board of Directors, (“Committee”), upon the recommendation of
the Chief Executive Officer, is responsible to designate participants in the Plan, approve Plan
goals, establish target incentives and approve Plan payouts.
	 
	2.	 	Performance Targets:
	 
	 	 	Performance goals are normally established at the beginning of the year based on the Annual
Operation Plan, and consist of one or more of the following:

	 	a.	 	Earnings Per Share, Net Income, Pretax Profit (PTP) or Operating Contribution.
	 
	 	b.	 	Return on Equity (ROE), Return on Invested Capital (ROIC), or Return on Working Capital
(ROWC)
	 
	 	c.	 	Individual Objectives (MBOs)

Note:

	 	•	 	ROE is derived by dividing net income for accounting period by common shareholder
equity.
	 
	 	•	 	ROIC is derived by taking business unit pretax and dividing it into Bell Micro’s
investment/inter-company loans, including acquisition interest, to the business unit. At
the corporate level, after tax profit is used instead of pretax profit.
	 
	 	•	 	ROWC is derived by taking business unit pretax profit and dividing it into working
capital (A/R +Inventory – AP).

	3.	 	Payment of Incentives:

	 	a.	 	Quarterly Advance Payments
	 
	 	 	 	At the end of each fiscal quarter following the financial audit, the financial performance
for the quarter will be compared to the financial plan for the quarter and participants will
be paid an advance of their annual incentive based on the payment schedule shown below in
paragraph 3c below, except that there shall be no advance payments for achievement above
100% of plan. Incentives will be paid after quarter end financial results are finalized and
the Committee has approved the payments. The amount of target incentive assigned to each
quarter is generally based on the amount of planned corporate profit for each quarter vs.
the total year, and is as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Q1 05	 	Q2 05	 	Q3 05	 	Q4 05
	Quarterly Percentage
	 	 	20	%	 	 	20	%	 	 	25	%	 	 	35	%

 

 

Management Incentive Plan Description

Year 2006

Page 2

	 	b.	 	Year End Payments
	 
	 	 	 	After the financial audit and close of the year, financial performance for the year will be
compared to the financial plan for the year to determine the amount of incentive the participant
earned due to financial performance. In addition, the accomplishments of each participant’s
individual MBOs will be reviewed to determine the amount of incentive earned for MBO
accomplishment. The total incentive earned for the year, (for financial performance and MBO
performance), less the amount of quarterly advances will be paid following approval of the
Committee.
	 
	 	c.	 	Payout of incentives for profit and ROE/ROWC goals is based on the following metric.

	 	 	 	 	 
	% Of Plan Achieved	 	% Of Incentive Earned
	<80%
	 	 	0	%
	80%
	 	 	25	%
	90%
	 	 	50	%
	100%
	 	 	100	%
	> 100%
	 	Same % as overachievement

Use straight-line interpolation between metrics for calculations below 100% achievement

	 	d.	 	Objectives (MBOs):
	 
	 	 	 	Objectives must be in writing and approved at the beginning of the year by the Chief
Executive Officer. The written objectives must include a statement of the objective, the
delivery date, and the expected result (i.e., a definition of how the accomplishment is to be
measured). If there is more than one objective, each will be weighted equally, unless the
objective states otherwise.
	 
	 	 	 	Because the actions taken to accomplish most objectives will generally span several quarters,
and payment of the incentive is for accomplishment of the objective, not accomplishment of
individual actions steps, payout will generally be on an annual basis. However, if in the
judgment of the CEO it is clear that an objective is accomplished before year-end, the
incentive attributable to that objective may be paid following the quarter during which it
was accomplished.

	4.	 	The target incentive for Plan participants who become participants after the start of the
fiscal year will be prorated for the period of time as a participant.
	 
	5.	 	Participants must be employees of the company on the date incentives are paid to be eligible
for the quarterly or year-end MIP payments.
	 
	6.	 	The Company, in its sole discretion has the authority to change this plan at any time,
including but not limited to increasing incentive payouts above target in the event of
superior performance; in the event of significant over-achievement of goals, adjusting payouts
to prevent unwarranted “windfalls”, and make other changes in the Plan or Plan targets that
are in the best interests of the Company.

 

 

Management Incentive Plan Description

Year 2006

Page 3

	7.	 	In the event that the company raises new equity funds during the year, thereby eliminating
interest charges, the financial plan may be adjusted accordingly.
	 
	8.	 	In the event of an acquisition or divestiture, the Committee will make a determination as to
the impact on the financial plan and may modify the Plan accordingly.
	 
	9.	 	The Company, in its sole discretion has the authority to make incentive payments in cash,
restricted stock units or a combination thereof.

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