Document:

Exhibit 10.1

 

FIRST AMENDMENT TO THE SL GREEN
REALTY CORP. AMENDED AND RESTATED 2005 STOCK OPTION AND INCENTIVE PLAN

 

This First Amendment (this “Amendment”)
to the SL Green Realty Corp. Amended and Restated 2005 Stock Option and
Incentive Plan (the “Plan”),
is made as of December 9, 2009 by SL Green Realty Corp., a Maryland
corporation (the “Company”).  All capitalized terms used but not defined in
this Amendment shall have the meanings ascribed to such terms in the Plan.

 

The Plan is amended as follows:

 

1.                                       Section 4(e) is amended and
restated as follows:

 

“(e) No award
may be granted under the Plan to any person who, assuming exercise of all
options and payment of all awards held by such person, would own or be deemed
to own more than 9.8% of the outstanding shares of Common Stock.  Subject to adjustments as provided in Section 14,
no Eligible Person shall be granted Awards (with Shares subject to Awards being
counted, depending on the type of Award, in the proportions ranging from 0.7 to
3.0, as described in Section 4(a)) in any one year covering more than
700,000 Shares, it being expressly contemplated that Awards in exclusively one
category (e.g., Options) can (but need not) be used in the discretion of the
Committee to reach the limitation set forth in this sentence; provided that
this limit shall only apply to Awards that are intended to qualify as “performance-based
compensation” under Section 162(m) of the Code and the regulations
promulgated thereunder.”

 

2.                                       Section 5.4 is amended and restated
as follows:

 

“5.4 Exercisability
Upon and After Termination of Optionee.

 

(a) Subject
to provisions of the Award Agreement, in the event the Optionee has a
Termination of Service other than by the Company or its Subsidiaries for Cause,
or other than by reason of death or Disability, no exercise of an Option may
occur after the expiration of the three-month period to follow the termination,
or if earlier, the expiration of the term of the Option as provided under Section 5.3(a);
provided that, if the Optionee should die after the Termination of Service,
such termination being for a reason other than Cause or Disability, but while
the Option is still in effect, the Option (if and to the extent otherwise
exercisable by the Optionee at the time of death) may be exercised until the
earlier of (i) one year from the date of the Termination of Service of the
Optionee, or (ii) the date on which the term of the Option expires in
accordance with Section 5.3(a).

 

(b) Subject
to provisions of the Award Agreement, in the event the Optionee has a
Termination of Service on account of death or Disability, the Option (whether
or not otherwise exercisable) may be exercised until the earlier of (i) one
year from the date of the Termination of Service of the Optionee, or (ii) the
date on which the term of the Option expires in accordance with Section 5.3.

 

(c) Notwithstanding
any other provision hereof, unless otherwise provided in the Award Agreement,
if the Optionee has a Termination of Service by the Company for Cause, the
Optionee’s Options, to the extent then unexercised, shall thereupon cease to be
exercisable and shall be forfeited forthwith.”

 

 

3.                                       Section 11 is amended and restated
as follows:

 

“11. TAX WITHHOLDING.

 

11.1  In General.

 

The Company shall
be entitled to withhold from any payments or deemed payments any amount of tax
withholding determined by the Committee to be required by law.  Without
limiting the generality of the foregoing, the Committee may, in its discretion,
require the Participant to pay to the Company at such time as the Committee
determines the amount that the Committee deems necessary to satisfy the Company’s
obligation to withhold federal, state or local income or other taxes incurred
by reason of (i) the exercise of any Option, (ii) the lapsing of any
restrictions applicable to any Restricted Stock, (iii) the receipt of a
distribution in respect of Phantom Shares or Dividend Equivalent Rights or (iv) any
other applicable income-recognition event (for example, an election under Section 83(b) of
the Code).

 

11.2  Share Withholding.

 

(a) Upon
exercise of an Option, the Optionee may, if approved by the Committee in its
discretion, make a written election to have Shares then issued withheld by the
Company from the Shares otherwise to be received, or to deliver previously
owned Shares, in order to satisfy the liability for the minimum withholding
taxes due.  Alternatively, if so provided in an Award Agreement, the
Committee may require the Optionee to satisfy such liability by having Shares
then issued withheld by the Company from the Shares otherwise to be received,
or require the Optionee to do so, subject to the Optionee’s ability to elect to
satisfy such liability in cash.  In the
event that the Optionee is to satisfy such liability in Shares, the number of Shares
so withheld or delivered shall have an aggregate Fair Market Value on the date
of exercise sufficient to satisfy the applicable minimum withholding
taxes.  Where the exercise of an Option does not give rise to an
obligation by the Company to withhold federal, state or local income or other
taxes on the date of exercise, but may give rise to such an obligation in the
future, the Committee may, in its discretion, make such arrangements and impose
such requirements as it deems necessary or appropriate.

 

(b) Upon
lapsing of restrictions on Restricted Stock (or other income-recognition
event), the Grantee may, if approved by the Committee in its discretion, make a
written election to have Shares withheld by the Company from the Shares
otherwise to be released from restriction, or to deliver previously owned
Shares (not subject to restrictions hereunder), in order to satisfy the
liability for the minimum withholding taxes due.  Alternatively, if so
provided in an Award Agreement, the Committee may require the Grantee to
satisfy such liability by having Shares withheld by the Company from the Shares
otherwise to be released from restriction, or require the Grantee to do so,
subject to the Grantee’s ability to elect to satisfy such liability in
cash.  In the event that the Grantee is
to satisfy such liability in Shares, the number of Shares so withheld or 

 

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delivered shall have an
aggregate Fair Market Value on the date of the lapsing of restrictions (or
other income-recognition event) sufficient to satisfy the applicable minimum
withholding taxes.

 

(c) Upon the
making of a distribution in respect of Phantom Shares or Dividend Equivalent
Rights, the Grantee may, if approved by the Committee in its discretion, make a
written election to have amounts (which may include Shares) withheld by the
Company from the distribution otherwise to be made, or to deliver previously
owned Shares (not subject to restrictions hereunder), in order to satisfy the
liability for the minimum withholding taxes due.  Alternatively, if so
provided in an Award Agreement, the Committee may require the Grantee to
satisfy such liability by having Shares withheld by the Company from the
distribution otherwise to be made, or require the Grantee to do so, subject to
the Grantee’s ability to elect to satisfy such liability in cash.  In the event that the Grantee is to satisfy
such liability in Shares, any Shares so withheld or delivered shall have an
aggregate Fair Market Value on the date of distribution sufficient to satisfy
the applicable minimum withholding taxes.

 

(d) Upon the
occurrence of any other income-recognition event with respect to an Award
granted under the Plan that occurs upon or concurrently with the issuance or
vesting of, or lapsing of restrictions on, Common Stock, the Grantee may, if
approved by the Committee in its discretion, make a written election to have
Shares withheld by the Company from the Shares otherwise to be issued, vested
or released from restriction, or to deliver previously owned Shares (not
subject to restrictions hereunder), in order to satisfy the liability for the
minimum withholding taxes due.  Alternatively, if so provided in an Award
Agreement, the Committee may require the Grantee to satisfy such liability by
having Shares withheld by the Company from the Shares otherwise to be issued,
vested or released from restriction, or require the Grantee to do so, subject
to the Grantee’s ability to elect to satisfy such liability in cash.  In the event that the Grantee is to satisfy
such liability in Shares, the number of Shares so withheld or delivered shall
have an aggregate Fair Market Value on the date of such income-recognition
event sufficient to satisfy the applicable minimum withholding taxes.

 

(e) For
purposes of determining the number of Shares to be withheld or delivered to
satisfy the applicable minimum withholding taxes pursuant to Section 11.2
of the Plan, the Fair Market Value of the Shares shall be calculated in the
same manner as the Shares are valued for purposes of determining the amount of
withholding taxes due.

 

11.3  Withholding Required.

 

Notwithstanding
anything contained in the Plan or the Award Agreement to the contrary, the
Participant’s satisfaction of any tax-withholding requirements imposed by the
Committee shall be a condition precedent to the Company’s obligation as may
otherwise be provided 

 

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hereunder to provide
Shares to the Participant and to the release of any restrictions as may otherwise
be provided hereunder, as applicable; and the applicable Option, Restricted
Stock, Phantom Shares, Dividend Equivalent Rights or other Award shall be
forfeited upon the failure of the Participant to satisfy such requirements with
respect to, as applicable, (i) the exercise of the Option, (ii) the
lapsing of restrictions on the Restricted Stock (or other income-recognition
event), (iii) distributions in respect of any Phantom Share or Dividend
Equivalent Right or (iv) any other income-recognition event with respect
an Award granted under the Plan.”

 

4.                                       Section 14 is amended by added the
following paragraph (f) to the end of such section:

 

“(f) Upon the
effective time of a Sale Event, with respect to Awards granted on or after the
date of this Amendment, at the election of the Committee, either (i) (A) such
Options and Stock Appreciation Rights that are not exercisable immediately
prior to the effective time of the Sale Event shall become fully exercisable as
of the effective time of the Sale Event, (B) all such other Awards with
time-based vesting, conditions or restrictions shall become fully vested and
nonforfeitable as of the effective time of the Sale Event, (C) all such
Awards with conditions and restrictions relating to the attainment of
performance goals may become vested and nonforfeitable in connection with a
Sale Event in the Committee’s discretion (to the extent not provided for in the
Award) and (D) all such outstanding Awards shall terminate or (ii) such
Awards shall be assumed by the successor entity and continue with appropriate
adjustment pursuant to Section 14(a) above.  In the event of the termination of Awards
pursuant to clause (i) of the prior sentence, (i) the Company shall
have the option (in its sole discretion) to make or provide for a cash payment
to the grantees holding Options and Stock Appreciation Rights, in exchange for
the cancellation thereof, in an amount equal to the difference between (A) the
Sale Price multiplied by the number of shares of Common Stock subject to
outstanding Options and Stock Appreciation Rights (to the extent then
exercisable (after taking into account any acceleration hereunder) at prices
not in excess of the Sale Price) and (B) the aggregate exercise price of
all such outstanding Options and Stock Appreciation Rights; or (ii) each
grantee shall be permitted, within a specified period of time prior to the
consummation of the Sale Event as determined by the Committee, to exercise all
outstanding Options and Stock Appreciation Rights held by such grantee effective
as of the effective time of such Sale Event. 
For purposes of the Plan, (i) “Sale Event”
shall mean (A) the sale of all or substantially all of the assets of the
Company on a consolidated basis to an unrelated person or entity, (B) a
merger, reorganization or consolidation in which the outstanding shares of
Common Stock are converted into or exchanged for securities of the successor
entity and the voting securities of the Company outstanding immediately prior
to such merger, reorganization or consolidation would represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) less than 50% of the total voting power of the voting
securities of the surviving entity outstanding immediately after such merger,
reorganization or consolidation or cease to have the power to elect at least a
majority of the board of directors or other governing body of such surviving
entity, or (C) the sale of all of the Common Stock of the Company to an
unrelated person or entity and (ii) “Sale Price” shall mean the value as
determined by the Committee of the consideration payable, or 

 

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otherwise to be received
by stockholders, per share of Common Stock pursuant to a Sale Event.”

 

5.                                       All other terms and conditions of the
Plan shall be unchanged and remain in full force and effect.

 

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IN WITNESS WHEREOF, the Company has executed this Amendment
as of the day and year first above written.

 

	
   

  	
  SL GREEN REALTY CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc Holliday

  
	
   

  	
   

  	
  Marc Holliday

  
	
   

  	
   

  	
  Chief Executive OfficerExhibit 10.1

 

MGP INGREDIENTS, INC. SHORT-TERM INCENTIVE PLAN

 

This MGP INGREDIENTS, INC. SHORT-TERM
INCENTIVE PLAN (“Plan”) is a program for measuring financial performance in
terms of increases in Modified Economic Profit (“MEP”), and providing eligible Employees
with incentive compensation based upon MEP results.  The objective of the Plan is to encourage
initiative, resourcefulness, teamwork, motivation, and efficiency on the part
of all Participants that will result in financial success for both the stockholders
of the Company and the Participants.  The
Plan provides annual incentive compensation for eligible Employees who are in a
position to make substantial contributions toward achievement of the financial
performance goals established pursuant to the Plan. The Plan replaces the
Short-Term Incentive Plan which was first effective July 1, 2007 and which
is terminated, effective June 30, 2009.

 

SECTION 1

ESTABLISHMENT OF PLAN

 

1.1                               Plan
Document

 

This instrument, as amended from time to
time, constitutes the governing document of the Plan.

 

1.2                               Effective
Dates

 

The effective date of the Plan is July 1,
2009.  The Plan will apply for Fiscal
Year 2010 and each year thereafter, unless otherwise determined by the
Committee.

 

1.3                               Incentive
Compensation Plan

 

The Plan is an annual compensation program
for eligible Employees.  Because the Plan
does not provide welfare benefits and does not provide for the deferral of
compensation to termination of employment, it is established with the intent
and understanding that it is not an employee benefit plan within the meaning of
the employee Retirement Income Security Act of 1974, as amended.  It is intended that any award under the Plan
will not be subject to Section 409A of the Code.

 

SECTION 2

DEFINITIONS

 

The following terms shall have the definition
stated, unless the context requires a different meaning:

 

2.1                               Beneficiary

 

“Beneficiary” means the individual, trust, or
other entity designated by the Participant to receive any incentive
compensation payable to the Participant under the Plan in the event of the
Participant’s death. A Participant may designate or change a Beneficiary by
filing a signed designation with the Secretary of the Company in a form
approved by the Committee.

 

 

If a designation has not been completed
properly and filed with the Company or is ineffective for any other reason, the
Beneficiary shall be the Participant’s Surviving Spouse. If there is no
effective designation and the Participant does not have a Surviving Spouse, the
remaining benefits, if any, shall be paid to the Participant’s estate.

 

2.2                               Board
of Directors

 

“Board” or “Board of Directors” means the
Board of Directors of the Company.

 

2.3                               Code

 

“Code” means the Internal Revenue Code of
1986, as amended.

 

2.4                               Change in Control

 

A Change in Control shall
mean:

 

(i)                                     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

 

(ii)                                  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

 

(iii)                               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 (i) through (iii) occur, the Board shall 

 

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determine
the effective date of the Change in Control resulting therefrom for purposes of
the Plan.

 

2.5                               Committee

 

“Committee” means the Human Resources and
Compensation Committee of the Board of Directors and shall be comprised
entirely of Directors who are considered “outside directors” under Section 162(m) of
the Code.

 

2.6                               Company

 

“Company” means MGP Ingredients, Inc., a
Kansas corporation.

 

2.7                               Director

 

“Director” means any individual who is a
member of the Board.

 

2.8                               Employee

 

“Employee” means a salaried, full-time
Employee of the Company.

 

2.9                               Fiscal Year

 

“Fiscal Year” means the financial
reporting and taxable year of MGP Ingredients, Inc.

 

2.10                        MEP

 

“MEP” refers to Modified Economic Profit and
means adjusted net income from operations (net income from operations, plus
depreciation less capital expenditures), net of 
taxes paid during the specified Fiscal Year (“Adjusted NOPAT”), minus a
charge representing the weighted economic cost of capital (“C”)  to the Company multiplied by the sum of
average monthly total funded indebtedness plus average monthly total equity (“TC”).  The formula for determining MEP is: MEP =
Adjusted NOPAT – (C x TC).  MEP for a
Fiscal Year shall be based upon the audited financial statements of the Company
for the Fiscal Year; provided, the Committee may determine in its sole
discretion whether the calculation of MEP should include or exclude, in whole
or in part, any unusual or non-recurring item or adjusted to reflect any
unusual or non-recurring item.

 

2.11                        Participant

 

“Participant” means an Employee designated to
participate in this Plan for a Plan Year pursuant to Section 4.

 

2.12                        Plan Year

 

“Plan Year” means the Fiscal
Year of the Company, as in effect at the time.

 

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2.13                        Surviving Spouse

 

“Surviving Spouse” means the spouse of the
Participant at the time of the Participant’s death who survives the
Participant. If the Participant and spouse die under circumstances that make
the order of their deaths uncertain, it shall be presumed for purposes of this
Plan that the Participant survived the spouse.

 

SECTION 3

ADMINISTRATION OF PLAN

 

3.1                               Administration of Plan by Committee

 

The Plan shall be administered by the
Committee. The Committee shall have full discretionary authority in the
operation and administration of the Plan. The Committee must approve any award under
the Plan and, subject to the limitations set forth below, may modify any award
prior to its payment. The Committee shall act by vote or consent of a majority
of its members. To the extent necessary or appropriate, the Committee will
adopt rules, policies, and forms for the administration, interpretation, and
implementation of the Plan. The Committee may delegate administrative authority
and responsibility from time to time to and among other committees approved by
the Committee and individual Employees of the Company, but all actions taken
pursuant to delegated authority and responsibility shall be subject to review
and change by the Committee.

 

A member of the Committee or individual or
group to whom authority is delegated shall not participate in any action of the
Committee directly affecting that member, individual or group.

 

3.2                               Responsibility; Indemnification

 

The
Committee and each member thereof, and any person acting pursuant to authority
delegated by the Committee, shall be entitled, in good faith, to rely or act
upon any report or other information furnished by any executive officer, other
officer or employee of the Company or a subsidiary or affiliate, the Company’s
independent auditors, consultants or any other agents assisting in the administration
of the Plan. Members of the Committee, any person acting pursuant to authority
delegated by the Committee, and any officer or employee of the Company or a
subsidiary or affiliate acting at the direction or on behalf of the Committee
or a delegee shall not be personally liable for any action or determination
taken or made in good faith with respect to the Plan, and shall, to the extent
permitted by law, be fully indemnified, held harmless  and protected by the Company with respect to
any such action or determination.

 

SECTION 4

ELIGIBILITY

 

4.1                               Participation

 

An Employee shall be a Participant in the
Plan for a Plan Year upon designation as a Participant for that year by the
Committee. When deemed appropriate by the Committee, the Committee may designate
an effective date for the commencement of participation by an Employee that is
subsequent to the first day of the Plan Year.

 

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Designated Participants shall be notified in
writing and provided either a copy of the Plan or a written summary of the
Plan.

 

4.2                               Continuing Participation

 

Designation as a Participant for a Plan Year
will continue in effect for each succeeding Plan Year that the Plan is in
effect until participation is terminated by the Committee. The Committee may
terminate participation by an Employee at any time with or without cause.

 

SECTION 5

MEASUREMENT OF COMPANY
PERFORMANCE

 

5.1                               MEP Performance

 

For purposes of the Plan,
financial performance of the Company shall be measured by MEP. In general, the
Plan shall be administered so that the incentive compensation provided to a
Participant under the Plan for each Plan Year is based on improved MEP
performance relative to prior MEP performance, initially measured for the
Fourth Quarter of Fiscal 2009 ( adjusted to eliminate assets held for sale and
determined on an annualized basis).

 

5.2                               Determination of MEP

 

MEP shall be determined for each Fiscal Year
by the Committee, subject to Section 5.4.

 

5.3                               MEP
Growth Target

 

The MEP growth performance targets for each
Plan Year shall be determined by the Committee and communicated to
Participants.

 

5.4                               Adjustments

 

The Committee may determine, in its sole
discretion, whether the calculation of MEP should include or exclude, in whole
or in part, any unusual or non-recurring item or adjusted to reflect any
unusual or non-recurring item and may make such other adjustments as permitted
by Section 9.

 

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SECTION 6

INCENTIVE COMPENSATION TARGETS

 

6.1                               Target Incentive Compensation

 

The target annual incentive
compensation for each Participant for each Plan Year shall be determined by the
Committee for each Plan Year in accordance with Section 7.2(a).

 

SECTION 7

DETERMINATION AND PAYMENT OF
INCENTIVE AMOUNTS

 

7.1                               Plan Year MEP

 

MEP and MEP growth performance, including any
necessary or appropriate adjustments required or permitted hereunder, shall be
determined as soon as administratively practicable following the availability
of financial results for the Plan Year.

 

7.2                               Determination of Incentive Compensation

 

Under rules established by the
Committee, the incentive compensation for each Participant for each Plan Year
shall be calculated by the following steps:

 

(a)                                  Targeted annual incentive compensation for each Participant
for the Plan Year shall be determined based upon a point system or a percentage
of base pay, as determined by the Committee. 
If a Participant’s base pay changes during a Plan Year, proportionate
annual compensation shall be calculated, under the rules established by
the Committee, for each period of the Plan Year that each level of base pay was
in effect. The proportionate targeted incentive compensation for each level of
base pay shall be calculated by annualizing that level of base pay, multiplying
by the applicable annual incentive percentage for that level of base pay, and
then multiplying the resulting amount by a fraction, the numerator of which is
the number of days during the Plan Year that the level of base pay was in
effect and the denominator of which is the number of days in the Plan Year.

 

(b)                                 Growth in MEP shall initially be measured from MEP for the
Fourth Quarter of Fiscal Year ending June 30, 2009, as provided in Section 5.1.  The amount of actual incentive compensation
payable to Participants with respect to Fiscal Year 2010 and subsequent Fiscal
Years that the Plan is in effect  will be
determined as follows.

 

·                  If growth in MEP is less than 80% of the growth target, no
incentive compensation will be paid.

 

·                  If growth in MEP is equal to or greater than 80% and less
than or equal to 90% of the growth target, 75% of targeted incentive
compensation will be paid.

 

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·                  If growth in MEP is greater than 90% and  less than or equal to 98% of the growth
target, 85% of targeted incentive compensation will be paid.

 

·                  If growth in MEP is greater than 98% and less than or equal
to 102% of growth target, 100% of targeted incentive compensation will be paid.

 

·                  If growth in MEP is greater than 102% and less than or equal
to 110% of the growth target, 115% of targeted incentive compensation will be
paid.

 

·                  If growth in MEP exceeds 110% of the growth target, 125% of
targeted incentive compensation will be paid.

 

7.3                               Payment of Incentive Amounts

 

The
dollar amount of the annual incentive compensation for a Plan Year shall be
paid in a lump sum to the Participant as soon as feasible following the
completion of the incentive compensation calculations for the Plan Year, but in
no event later than two and one-half months following the end of the calendar
year in which occurs the end of the Company’s applicable Fiscal Year.

 

7.4                               Partial Year Participation, Employment
Changes and Forfeitures

 

(a)           Partial Year Participation.  If an Employee is
designated to become a Participant in a Plan Year as of a date other than the
first day of the Plan Year, the Participant’s incentive compensation for the
Plan Year shall be determined on the basis of the Participant’s time of
participation during the Plan Year.

 

(b)           Employment Changes.  Target incentive
percentages and incentive awards for a Participant for a Plan Year will be
prorated in the event of any change in compensation or employment status or
location, or any other change that would effect the determination for the Plan
Year, in proportion to the duration of each applicable factor during the Plan
Year.

 

(c)           Termination of Employment.  Upon termination of
a Participant’s employment during a Plan Year for any reason, the Participant
shall not be entitled to the payment of incentive compensation for the Plan
Year.  Notwithstanding the preceding
sentence, the Committee shall have full discretion to determine that payment of
a prorated annual component may be made when termination of the Participant’s
employment results from job elimination, reduction in work force or other
similar Company initiative or is otherwise without cause, or is encouraged or
induced by incentives offered by the Company.

 

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SECTION 8

CHANGE IN CONTROL

 

Upon a Change
in Control, the Plan shall terminate. 
The Committee will determine MEP on an annualized basis, based on the
Company’s performance through the most recently completed fiscal quarter for
which financial results are available. 
Incentive compensation will be paid on a pro rata basis (measured
through the end of such fiscal quarter) 
in accordance with the guidelines set forth in Section 7.2(b).

 

SECTION 9

COMMITTEE DISCRETION

 

The Committee shall exercise all of its power
and duties as the Committee deems appropriate in its sole and absolute
discretion. All decisions of the Committee shall be final and binding on all
Participants and their respective heirs and representatives. In the event it is
determined, in the judgment and discretion of the Committee, that any factor
applicable in the ultimate determination of incentive compensation under the
Plan for a Plan Year is not appropriate with respect to one or more
Participants due to unusual events, unforeseen circumstances, or other factors deemed
material and relevant, the applicable factor or the amount of the resulting
incentive compensation may be adjusted or modified in any manner deemed
appropriate by the Committee.

 

SECTION 10

AMENDMENT AND TERMINATION

 

The Plan may be amended in
any manner or terminated at any time by action of the Board of Directors.

 

SECTION 11

GENERAL PROVISIONS

 

11.1                        Benefits Not Guaranteed

 

Neither the establishment
nor maintenance of the Plan nor participation in the Plan shall provide any
guarantee or other assurance that incentive compensation will be payable under
the Plan. The success of MGP Ingredients, Inc., as determined hereunder,
and adjusted as provided herein, and application of the administrative rules and
determinations by the Committee shall determine the extent to which
Participants are entitled to receive incentive compensation payments hereunder.

 

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11.2                        No Right to Participate

 

Nothing in this Plan shall
be deemed or interpreted to provide a Participant or any non-participating
Employee with any contractual right to participate in or receive benefits of
the Plan. No designation of an Employee as a Participant for all or any part of
a Plan Year shall create a right to incentive compensation or other benefits of
the Plan for any other Plan Year.

 

11.3                        No Employment Right

 

Participation in this Plan shall not be
construed as constituting a commitment, guarantee, agreement, or understanding
of any kind that the Company will continue to employ an individual, and this
Plan shall not be construed or applied as any type of employment contract or
obligation. Nothing herein shall abridge or diminish the rights of the Company
to determine the terms and conditions of employment of any Participant or other
employee or to terminate the employment of any Participant or other Employee
with or without cause at any time.

 

11.4                        No Assignment or Transfer

 

Neither a Participant nor any beneficiary or
other representative of a Participant shall have any right to assign, transfer,
attach, or hypothecate any incentive compensation amount or credit, potential
payment, or right to future payments of any incentive compensation amount or
credit, or any other benefit provided under this Plan. Payment of any amount
due or to become due under this Plan shall not be subject to the claims of
creditors of the Participant or to execution by attachment or garnishment or
any other legal or equitable proceeding or process.

 

11.5                        Withholding and Payroll Taxes

 

The Company shall deduct from any payment
made under this Plan all amounts required by federal, state, and local tax laws
to be withheld and shall subject any payments made under the Plan to all
applicable payroll taxes and assessments.

 

11.6                        Incompetent Payee

 

If the Committee determined
that a person entitled to a payment hereunder is incompetent, it may cause
benefits to be paid to another person for the use or benefit of the Participant
or the Participant’s Beneficiary at the time or times otherwise payable
hereunder, in total discharge of the Plan’s obligations to the Participant or
Beneficiary.

 

11.7                        Section 409A

 

It is intended that the Plan and awards
issued hereunder will be exempt from Section 409A of the Code (and any
regulations and guidelines issued thereunder) because the Plan and the awards
do not provide for the deferral of compensation, and the Plan and such awards
shall be interpreted on a basis consistent with such intent. The Plan and any
award agreements issued thereunder may be amended in any respect deemed by the
Board or the Committee to be necessary in order to preserve exemption with Section 409A
of the Code.

 

9

 

11.                               Governing Law

 

The provisions of the Plan
shall be construed and governed under the laws of the State of Kansas.

 

11.9                        Construction

 

The singular
includes the plural, and the plural includes the singular, and terms connoting
gender include both the masculine and feminine, unless the context clearly
indicates the contrary. Capitalized terms, except those at the beginning of a
sentence or part of a heading, have the meaning defined in the Plan.

 

SECTION 11

EXECUTION

 

IN WITNESS WHEREOF, MGP Ingredients, Inc.
has caused this Plan to be executed by its duly authorized officer this 10th of
December, 2009.

 

	
   

  	
  MGP
  INGREDIENTS, INC.

  
	
   

  	
   

  
	
   

  	
  /s/
  Timothy W. Newkirk

  
	
   

  	
  By:
  Timothy W. Newkirk

  
	
   

  	
  Title:
  President and CEO

  

 

10

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