Document:

EX-10.28

    EXHIBIT 10.28

 

    GRAHAM
    CORPORATION

 

    ANNUAL
    EXECUTIVE CASH BONUS PLAN

 

    (As
    Amended and Restated Effective March 12, 2009.)

 

    Summary

 

    The objective of this Annual Executive Cash Bonus Plan (the
    “Plan”) is to compensate the Chief Executive Officer
    and his direct reports for above-average performance through
    annual bonuses related to both Company and individual
    performance.

 

    Eligibility
    and Participation

 

			
	 	    1. 
	
    Eligible employees shall include the Chief Executive Officer and
    his direct reports. “Direct reports” means
    (a) the Vice President, Finance and Administration and
    Chief Financial Officer, (b) the Vice President of
    Operations, (c) the Chief Accounting Officer and
    (d) such other employees of the Company selected by the
    Chief Executive Officer to participate in this plan, subject to
    the approval by the Compensation Committee of such participation.

	 
	 	    2. 
	
    Target participation levels shall be established by the
    Compensation Committee before the start of each fiscal year.

	 
	 	    3. 
	
    Newly hired or promoted employees are eligible for participation
    in the Plan upon employment unless otherwise determined by the
    Chief Executive Officer for direct reports and by the
    Compensation Committee in the case of the Chief Executive
    Officer.

	 
	 	    4. 
	
    Participants who resign before the end of the fiscal year shall
    receive no bonus except as approved by the Compensation
    Committee, in its sole discretion.

 

    Establishment
    and Level of Goals

 

			
	 	    1. 
	
    Financial goals shall be set during the annual budgeting process
    and shall be approved by the Board of Directors along with the
    annual budget.

	 
	 	    2. 
	
    Individual goals shall be set on or before the annual budget.
    The Chairman shall approve individual goals for the Chief
    Executive Officer. The Chief Executive Officer shall approve
    individual goals for direct reports. The Chairman or Chief
    Executive Officer, as applicable, shall determine the number and
    weighting of goals.

 

    Payment
    Calculation

 

    At the end of each fiscal year, the Compensation Committee shall
    determine the extent to which the applicable financial goals and
    individual goals have been satisfied and the corresponding goal
    payout factors. The Compensation Committee shall then determine
    each Participant’s preliminary payout value, which shall be
    the Participant’s Target Participation Level multiplied by
    the product of each performance goal’s weighting times its
    payout factor. The Compensation Committee may then adjust each
    Participant’s preliminary payout value, either upwards or
    downwards, in the Compensation Committee’s sole discretion,
    to determine each Participant’s final payout value.

 

    The final payout values, as determined by the Compensation
    Committee, will be paid to Participant’s as soon as
    practicable after the end of the fiscal year, but in no event
    later than 75 days immediately following the end of the
    fiscal year.

 

    Other
    Considerations

 

			
	 	    1. 
	
    Participants who change position during the fiscal year shall
    receive bonus on a pro rated basis.

	 
	 	    2. 
	
    Special awards may be made to any executive or employee who has
    made an extra ordinary contribution to the Company during the
    year. Such awards must be recommended in writing by the Chief
    Executive Officer to the Chairman of the Compensation Committee
    and may be approved by the Compensation Committee.

	 
	 	    3. 
	
    Extraordinary events that either positively or negatively affect
    financial performance may be included or excluded in financial
    calculations at the discretion of the Compensation Committee.

	 
	 	    4. 
	
    Nothing herein shall be construed to limit or affect the normal
    and usual powers of management, including right to terminate any
    individual at any time.

	 
	 	    5. 
	
    The Compensation Committee shall have final and conclusive
    authority on the existence and administration of this plan.

	 
	 	    6. 
	
    In the event of death, a Participant’s designated
    beneficiary will be entitled to the Participant’s plan
    benefits. If the Participant has not designated a beneficiary,
    the Participant’s beneficiary or beneficiaries will be
    determined in accordance with the Participant’s will. If
    there is no will, the beneficiary or beneficiaries shall be
    determined by the laws of descent and distribution in the state
    in which the Participant was a resident at the time of death.

 

    ANNUAL
    EXECUTIVE CASH BONUS PLAN

 

    2010
    FISCAL YEAR TERMS

 

    Target
    Participation Levels

 

	 	 	 	 	 
	

    Position

	
 
	
    % Base Pay
	
 

	 

	

    President and Chief Executive Officer

	
 
	
 
	
    60
	
    %

	

    Vice President, Finance and Administration and Chief Financial
    Officer

	
 
	
 
	
    35
	
    %

	

    Vice President of Operations

	
 
	
 
	
    35
	
    %

	

    Chief Accounting Officer

	
 
	
 
	
    25
	
    %

 

    Goal
    Weightings

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
    Net

    
	
 
	
 
	
    Working

    
	
 
	
 
	
    Personal

    
	
 

	

    Position

	
 
	
    Income
	
 
	
 
	
    Capital%
	
 
	
 
	
    Goals
	
 

	 

	

    President and Chief Executive Officer

	
 
	
 
	
    70
	
    %
	
 
	
 
	
    20
	
    %
	
 
	
 
	
    10
	
    %

	

    Vice President, Finance and Administration and Chief Financial
    Officer

	
 
	
 
	
    60
	
    %
	
 
	
 
	
    15
	
    %
	
 
	
 
	
    25
	
    %

	

    Vice President of Operations

	
 
	
 
	
    60
	
    %
	
 
	
 
	
    15
	
    %
	
 
	
 
	
    25
	
    %

	

    Chief Accounting Officer

	
 
	
 
	
    55
	
    %
	
 
	
 
	
    15
	
    %
	
 
	
 
	
    30
	
    %

 

    Average Working Capital% is defined as gross inventory plus
    gross trade accounts receivable minus trade payables divided by
    sales. The working capital calculation for bonus purposes shall
    be the average of the end of each fiscal month divided by full
    fiscal year sales.

 

    Net Income shall be based upon year-end results.

 

    Currency exchange rates will be calculated monthly at a fixed
    rate to eliminate currency fluctuations from incentive
    calculations.exv4w1

Exhibit 4.1

	WARRANT CERTIFICATE #: NUMBER OF WARRANTS: THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN
THE COMPANY’S PROSPECTUS SUPPLEMENT DATED JUNE 2, 2009 (THE “PROSPECTUS SUPPLEMENT”) AND ARE
INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS SUPPLEMENT ARE AVAILABLE UPON REQUEST
FROM GEORGESON, INC., THE INFORMATION AGENT. Allis-Chalmers Energy Inc. Incorporated under the
laws of the State of Delaware NON-TRANSFERABLE WARRANT CERTIFICATE Evidencing a Non-Transferable
Right to Purchase Shares of Common Stock of Allis-Chalmers Energy Inc. Subscription Price: $2.50
per Share THE WARRANT WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., NEW YORK CITY TIME, ON
JUNE 19, 2009, UNLESS EXTENDED BY THE COMPANY REGISTERED OWNER: THIS CERTIFIES THAT the
registered owner whose name is inscribed hereon is the owner of the Right (the “Excess Shares”),
any Warrant holder that exercises his Basic Subscription Right in number of non-transferable
warrants (“Warrants”) set forth above. Each Warrant entitles the holder full may subscribe for a
number of Excess Shares pursuant to the terms and conditions of the Offering, thereof to subscribe
for and purchase one share of Common Stock, with a par value of $0.01 per subject to proration, as
described in the Prospectus Supplement (the “Oversubscription Right”). The share, of
Allis-Chalmers Energy Inc., a Delaware corporation, at a subscription price of $2.50 per
Warrants represented by this Warrant Certificate may be exercised by completing Form 1 and any
share (the “Basic Subscription Right”), pursuant to an offering (the “Offering”), on the
terms and other appropriate forms on the reverse side hereof and by retuning this Warrant
certificate and the subject to the conditions set forth in the Prospectus Supplement and the
“Instructions as to Use of full payment of the subscription price for each share of Common Stock in
accordance with the Allis-Chalmers Energy Inc. Warrant Certificates” accompanying this Warrant
Certificate. If any “Instructions as to Use of Allis-Chalmers Energy Inc. Warrant Certificates”
that accompany this shares of Common Stock available for purchase in the Offering are not purchased
by other Warrant Certificate. holders of Warrants pursuant to the exercise of their Basic
Subscription This Warrant Certificate is not valid unless countersigned by the subscription agent
and registered by the registrar. Witness the signatures of the duly authorized officers of
Allis-Chalmers Energy Inc. Dated: ___
___Chairman and Chief Executive Officer
General Counsel and Secretary

 

DELIVERY OPTIONS FOR WARRANT CERTIFICATE

Delivery other than in the manner or to the addresses listed below will not constitute valid delivery.

	 	 	 
	If delivering by hand:
	 	If delivering by mail or overnight courier:
	American Stock Transfer & Trust Company
	 	American Stock Transfer & Trust Company
	Attn: Reorganization Department
	 	Operations Center
	59 Maiden Lane
	 	Attn: Reorganization Department
	New York, New York 10038
	 	6201 15th Avenue
	 
	 	Brooklyn, New York 11219

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS

To subscribe for shares of Common Stock pursuant to your Basic Subscription Right, please
complete lines (a) and (c) and sign under Form 3 below. To subscribe for shares of Common
Stock pursuant to your Oversubscription Right, please also complete line (b) and sign under
Form 3 below. To the extent you subscribe for more shares than you are entitled to purchase
under either the Basic Subscription Right or the Oversubscription Right, you will be deemed
to have elected to purchase the maximum number of shares for which you are entitled to
subscribe under the Basic Subscription Right or Oversubscription Right, as applicable.

(a) EXERCISE OF BASIC SUBSCRIPTION RIGHT:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	I apply for

	 	 	 	shares x $2.50	 	 	=	 	$	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	(no. of new shares)	 	(subscription price)	 	 	 	 	 	 	(amount enclosed)

(b) EXERCISE OF OVERSUBSCRIPTION RIGHT:

If you have exercised your Basic Subscription Right in full and wish
to subscribe for additional shares pursuant to your Oversubscription Right:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	I apply for

	 	 	 	shares x $2.50	 	 	=	 	$	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	(no. of new shares)	 	(subscription price)	 	 	 	 	 	 	(amount enclosed)

	 	 	 	 	 	 	 	 	 	 	 
	(c) Total Amount of Payment Enclosed

	 	=
	 	 	$	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

METHOD OF PAYMENT (CHECK ONE):

	o	 	Certified check or bank draft drawn on a U.S. bank, or postal, telegraphic or express
money order, payable to “American Stock Transfer & Trust Company, as Subscription
Agent.”

	 
	o	 	Wire transfer of immediately available funds directly to the account maintained by
American Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes of
accepting subscriptions in the Offering at JPMorgan Chase Bank, 55 Water Street, New
York, New York 10005, ABA #021000021, Account # 957-341334, American Stock Transfer FBO
Allis-Chalmers Energy Inc., with reference to the warrant holder’s name.

FORM 2-DELIVERY TO DIFFERENT ADDRESS

If you wish for the shares of Common Stock you purchase or a certificate representing
unexercised warrants to be delivered to an address different from that shown on the face of
this Warrant Certificate, please enter the alternate address below, sign under Form 3 and have
your signature guaranteed under Form 4.

 

 

 

FORM 3-SIGNATURE

TO SUBSCRIBE: I acknowledge that I have received the Prospectus Supplement for this Offering
and I hereby irrevocably subscribe for the number of shares of Common Stock of Allis-Chalmers
Energy Inc. indicated above on the terms and conditions specified in the Prospectus
Supplement.

	 	 	 
	Signature(s):
	 	 
	 

	 	 

IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of
this Warrant Certificate in every particular, without alteration or enlargement, or any other
change whatsoever.

FORM 4-SIGNATURE GUARANTEE

This form must be completed if you have completed any portion of Form 2.

	 	 	 
	Signature Guaranteed:
	 	 
	 

	 	 
	 

	 	(Name of Bank or Firm)

	 	 	 
	By:
	 	 
	 

	 	 
	 

	 	(Signature of Officer)

IMPORTANT: The signature(s) should be guaranteed by an eligible guarantor institution
(bank, stock broker, savings & loan association or credit union) with membership in an
approved signature guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15.

FOR INSTRUCTIONS ON THE USE OF ALLIS-CHALMERS ENERGY INC. WARRANT CERTIFICATES, CALL GEORGESON, INC.,
THE INFORMATION AGENT, AT (866) 577-4988.

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