Document:

exv10w5

 

Exhibit 10.5

PERFORMANCE SHARE AWARD

PURSUANT TO THE SPARTECH CORPORATION

2004 EQUITY COMPENSATION PLAN

	 	 	 
	 
	 	 
	Award No.:

	 	PS-20_-________
	 
	 	 
	Award Date:

	 	_____________, 20___
	 
	 	 
	Participant:

	 	_______________________
	 
	 	 
	Performance Shares:

	 	__________
	 
	 	 
	Performance Period:

	 	__________ [Specify, e.g. 2007-2009 for December 2006 Awards]
	 
	 	 
	Payment Date:

	 	__________, 20___[First trading day in January after close of Performance
Period — e.g. January 4, 2010 for December 2006 Awards]

     This Performance Share Award (“Award”) is granted by Spartech Corporation (the
“Company”) to the individual named above (“Participant”), as of the date specified above (the
“Award Date”), pursuant to the Spartech Corporation 2004 Equity Compensation Plan (as amended and
in effect from time to time, the “Plan”). Capitalized terms not defined herein have the meanings
given to them in the Plan.

     Subject to the terms and conditions set forth in this Award and the Plan, and subject to the
Participant’s written acknowledgment and acceptance of this Award, the Company hereby grants to the
Participant, as deferred compensation, that number of Performance Shares specified above (the
“Performance Shares”), each Performance Share representing the right to receive, on the Payment
Date specified above (the “Payment Date”), a number of shares of Company common stock, $.75 par
value per share (“Common Stock”) in the amount and subject to the conditions specified in this
Award.

     This Award is subject to the terms of the Plan, to the achievement of the Performance Criteria
attached hereto (the “Performance Criteria”), and to the other terms and conditions contained in
Exhibit A attached hereto. Among other things, Exhibit A contains important
additional information on vesting and forfeiture of the Performance Shares.

     This Award is void unless signed by the Participant and returned to the Company by the
60th day after the Award Date.

	 	 	 	 	 
	 	SPARTECH CORPORATION

 	 
	 	By:  	 	 
	 	 	(Name)  	 	 
	 	 	(Title)  	 	 
	 

* * * * *

     By signing below, the Participant hereby acknowledges and accepts the above Award subject to
the terms set forth above and in the Plan, and also acknowledges receipt of a copy of the Plan and
the current Prospectus for the Performance Shares and the underlying Common Stock.

	 	 	 	 	 	 
	 
	 	 	 	 	 
	

	 	Participant:	 	 	 
	 

	 	 	 	 
	 

	 	Date Signed:	 	 	 
	 

	 	 	 	 

 

Performance Criteria for 20_-20__ Performance Period

Award No. PS-20_-___

Dated ___________

[To be specified for each Award or group of Awards]

 

 

A-1

EXHIBIT A

TO

PERFORMANCE SHARE AWARD

     1. Rights of the Participant with Respect to the Performance Shares. The
Performance Shares are a form of deferred compensation. They do not and shall not entitle the
Participant to any of the rights of a holder of Common Stock, and no shares of Common Stock shall
be issued to Participant prior to the Payment Date, as hereafter defined. The Performance Shares
shall not entitle the holder to any voting rights nor to any dividends or payments except as
expressly set forth herein. Neither this Award nor any action taken pursuant to or in accordance
with this Award shall be construed to create a trust of any kind.

     2. Additional Performance Shares. On each date on or before the
Payment Date that the Company pays a cash dividend to holders of Common Stock generally, the
Company shall credit to the Participant an additional number of Performance Shares equal to the
total number of Performance Shares previously credited to the Participant under this Award
multiplied by the dollar amount of the cash dividend per share of Common Stock paid by the Company
on such date, divided by the fair market value of a share of Common Stock on such date, as
determined by the Company in good faith. Any fractional amount resulting from such calculation
shall be included to at least two decimal places.

     3. Nontransferability of Award and Performance Shares. Neither this Award
nor the Performance Shares shall be transferable other than by the Participant’s last will and
testament or the laws of descent and distribution, or by court order. No right or benefit
hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities, or
torts of the Participant.

     4. Conversion of Performance Shares; Issuance of Deferred Shares.

     (a) After the close of the Performance Period and on or before the Payment Date set forth in
this Award, the Compensation Committee of the Company’s Board of Directors (the “Committee”) shall
certify in writing the extent to which the specific performance targets specified in the
Performance Criteria have been met, and the resulting Performance Factor(s) to be applied to the
Performance Shares (as specified in the Performance Criteria). The determination of the Committee
as to the extent to which the Performance Criteria have been met shall be conclusive and binding on
all parties. If for any reason the Committee is unable to determine the applicable Performance
Factor(s) by the Payment Date specified above, then the Payment Date shall be extended until the
first trading day after the Committee makes such determination. If the Common Stock is trading
ex-dividend on the specified or extended Payment Date, then the Payment Date shall be further
extended until the first trading day after the payment of the dividend.

     (b) On the Payment Date, the Performance Shares shall be converted into the right to receive a
number of shares of Common Stock (the “Deferred Shares”) equal to (i) the number of Performance
Shares (or the various weighted percentages thereof, if applicable) multiplied by (ii) the
applicable Performance Factor(s). The resulting number shall be rounded to the nearest whole
share.

     (c) The Company shall as promptly as practicable thereafter cause certificates for the
Deferred Shares to be issued and delivered to or as directed by the Participant or, in the case of
the

 

 

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Participant’s death, to the person or persons to whom the Participant’s rights under this
Award shall have passed by will or by the applicable laws of descent and distribution, subject to
Section 5.

     5. Taxes.

     (a) Tax Withholding. Unless the Participant makes advance arrangements satisfactory
to the Company to reimburse the Company in a timely manner for the withholding taxes payable by the
Company under any federal, state or local tax law related to the grant of this Award or the vesting
and receipt of the Deferred Shares, the Company:

	 	(i)	 	May withhold from the Deferred Shares otherwise deliverable to the Participant under
this Award, a number of such shares having a fair market value sufficient to satisfy its
tax withholding obligations at the minimum statutory rate, in which case the calculation
shall be made prior to any rounding pursuant to paragraph 4(b), and/or
	 
	 	(ii)	 	May take such other action as may be necessary or appropriate to satisfy any such tax
withholding obligations.

     (b) Valuation for Tax Purposes. For income and withholding tax purposes, the
per-share fair market value of the Deferred Shares on a given date shall be deemed to be the
closing price of the Company’s common stock on the New York Stock Exchange on such date (or if such
date is not a trading day, then the opening price on the next trading day), except to the extent a
different valuation method may be required to be used by applicable tax laws or regulations.

     (c) No Commitment As to Tax Treatment. Neither the Company nor any subsidiary makes
any commitment or guarantee that any federal or state tax treatment will apply or be available to
the Participant. The Participant agrees to indemnify the Company for the Participant’s portion of
any social insurance obligations or taxes arising under any foreign law with respect to the grant
of this Award, the vesting or receipt of the Deferred Shares, or the sale or other disposition of
the Deferred Shares.

     6. Termination of Employment.

     (a) If prior to the Payment Date, the Participant’s Employment is terminated by the Company
for Cause or the Participant voluntarily resigns his or her Employment, then this Award shall
automatically be cancelled and the Company shall have no further liability to the Participant by
reason of this Award.

     (b) If prior to the Payment Date the Participant’s Employment is terminated by the Company
without Cause or the Participant’s employment terminates because of a Change in Control or the
Participant’s death, Disability or Retirement, then the number of Performance Shares shall be
multiplied by a fraction the numerator of which is the number of years (rounded down to the next
lower full year) the Participant was Employed during the Performance Period and the denominator of
which is the total number of years (rounded to the nearest full year) in the Performance Period;
but the Award as so adjusted shall continue in effect in accordance with its terms. For purposes
of this paragraph, a year means a twelve-month period beginning on the Award Date or its
anniversary.

     7. Additional Definitions. For purposes of this Award:

     (a) “Cause” means any of the following:

	 	(i)	 	Conviction of a misdemeanor involving physical harm, moral turpitude, fraud or
misappropriation, or conviction of any felony; or

 

 

A-3

	 	(ii)	 	Dishonesty or theft materially adversely affecting the Company’s assets,
business reputation or standing in the community; or
	 
	 	(iii)	 	Drunkenness or drug abuse in violation of the Company policies or affecting the
Participant’s performance of his or her usual and customary employment duties or
materially adversely affecting the Company’s assets, business reputation or standing
in the community; or
	 
	 	(iv)	 	The failure of the Participant, within ten days after receipt of written notice
thereof from his or her supervisor, to correct, cease or otherwise alter any failure
to comply with the Company’s lawful policies or instructions concerning the
Participant’s employment; or
	 
	 	(v)	 	Any other act or circumstance constituting “cause” under any applicable
employment contract or collective bargaining agreement, or constituting “cause” under
common law if the act or circumstance is determined by Spartech Corporation’s Board
of Directors (the “Board”) or Chief Executive Officer to have a substantial
likelihood of materially adversely affecting the Company’s assets or business, or, if
it is or were to become publicly known, the Company’s business reputation or standing
in the community.

For purposes of this definition, “the Company” includes any of the Company’s subsidiaries.

     (b) “Change in Control” means:

     (i) The occurrence of the “Distribution Date” as such term is defined in the Rights
Agreement dated as of April 2, 2001 between the Company and Mellon Investor Services LLC; or

     (ii) If the “Redemption Date” or the “Final Expiration Date,” as such terms are defined
in the aforesaid Rights Agreement, has occurred, the acquisition by any Person of 50% or more
of the combined voting power of all the Company’s then outstanding voting securities, unless
prior to such acquisition the Board has approved such acquisition and determined that it is in
the best interests of the Company and its shareholders; or

     (iii) The approval by the Board of any merger, consolidation or other transaction
involving the Company, or of any one of a series of related transactions, as a result of which
(A) the Company would not be the surviving corporation, or (B) the holders of the Company’s
common stock immediately prior to such transaction would not own at least a majority of the
voting power of the Company immediately after the transaction in substantially the same
relative proportions as they owned the Company’s common stock immediately prior to the
transaction, or (C) the Company’s common stock would be converted into cash or other
securities of the Company other than voting securities having substantially the same relative
and proportionate voting power in the entity or entities surviving the transaction as the
common stock has immediately prior to the transaction; or

     (iv) The commencement of any tender offer subject to Section 14(d) of the Exchange Act
for 20% or more of the Company’s common stock; if the person making such offer could own 50%
or more of such common stock when the tender offer terminates; or

     (v) Any change or changes in the composition of the Board within any twenty-four month
period such that the individuals constituting the Board at the beginning of such period,
together with any individuals who became directors after the beginning of such period whose
election by the Board or nomination for election by the Company’s shareholders was

 

 

A-4

approved by at least a majority of the directors who were on the Board at the beginning
of such period or whose election was previously approved in the same manner, cease to
constitute a majority of the Board; or

     (vi) The approval by the stockholders of the Company of a plan of complete liquidation of
the Company or an agreement for the sale or disposition by the Company of all or substantially
all the Company’s assets.

For purposes of this definition, “Person” shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however, a Person shall not
include (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its subsidiaries, (3) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of Company stock.

However, in the event that any provision of this definition of Change in Control provides for a
smaller degree of change of ownership than that required in the corresponding meaning of change in
the ownership or effective control of a corporation, or change in the ownership of a substantial
portion of the assets of a corporation in Proposed Treasury Regulation 1.409A-3(g)(5) or any
successor regulation, the determination as to whether there has been a Change in Control shall be
determined by the provisions of such Proposed Treasury Regulation 1.409A-3(g)(5) or such successor
regulation.

On the date a Change in Control occurs, notwithstanding anything else to the contrary herein, (i)
if the Performance Period has not been completed, the Performance Period shall be deemed to have
ended and the applicable Performance Criteria and formulas or standards shall be appropriately
adjusted by the Committee to reflect the length of the Performance Period in comparison to the
original Performance Period; and (ii) the fair market value of the Deferred Shares payable with
respect to the Performance Period shall be determined by the Committee in its best judgment and
such value shall be immediately payable in cash in full satisfaction of this Award; and (iii) if by
reason of this Section 7 an excise or other special tax (“Excise Tax”) is imposed on such payment
(the “Award Payment”), the amount of the Award Payment shall be increased by an amount which, after
payment of income taxes, payroll taxes and Excise Tax thereon, will equal such Excise Tax on the
Award Payment.

     (c) “Disability” means the condition of being “disabled” as defined in Section
409A(a)(2)(C) of the Internal Revenue Code (the “Code”). Unless otherwise required under
applicable provisions of the Code, the Disability of a Participant shall be determined by a
licensed physician chosen by the Company.

     (d) “Employment” means substantially full-time employment by the Company or a
subsidiary. In this regard, the transfer of the Participant’s employment between the Company and a
subsidiary or between subsidiaries shall not be deemed to be a termination of Employment.
Moreover, the Participant’s Employment shall not be deemed to have been terminated because of
absence from active employment on account of temporary illness or authorized vacation or temporary
leaves of absence from active employment granted by the Company or a subsidiary for reasons of
professional advancement, education, health, or government service, or during military leave for
any period if the Participant returns to active employment within 90 days after the termination of
military leave, or during any period required to be treated as a leave of absence by virtue of any
valid law or agreement. The Committee’s determination in good faith regarding whether a
termination of Employment has occurred shall be conclusive.

 

 

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     (e) “Retirement” means the permanent withdrawal of the Participant from the conduct of
regular, active business activities, on or after the Participant reaches the age of 60. Retirement
does not preclude part-time employment, consulting or other activities expressly approved by the
Company, or passive activities such as the management of the Participant’s investments.

     8. Additional Payment in Certain Events. In the event a payment or benefit
pursuant to this Award is determined to be an “excess parachute payment” subject to an excise tax
under Section 4999 of the Internal Revenue Code, the Company shall pay the Participant, within ten
days of such determination, an amount equal to such excise tax plus an additional amount so that
the net after tax effect on the Participant, considering Federal income, Insurance Contributions
Act and Unemployment Tax Act taxes, state income taxes and the excise tax under Section 4999 of the
Code, is the same as if such excise tax had not been imposed.

     9. Securities Law Restrictions. The Participant agrees that if at the
Payment Date the sale of the Deferred Shares is not covered by an effective registration statement
filed under the Securities Act of 1933 (the “Act”), the Participant will acquire the Deferred
Shares for the Participant’s own account and without a view to resale or distribution in violation
of the Act or any other securities law, and that the Participant will enter into such written
representations, warranties and agreements as the Company may reasonably request in order to comply
with the Act or any other securities law or with this Award.

     10. Reorganization of the Company; Adjustment of Deferred Shares. The
existence of this Award shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or
other changes in the Company’s capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of the Company’s assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise. However, if the Common
Stock is subdivided, consolidated, increased, decreased, changed into or exchanged for a different
number or kind of shares or other securities, whether through reorganization, merger,
recapitalization, reclassification, capital adjustment or otherwise, or if the Company shall issue
common stock or other securities as a dividend or upon a stock split, then for all purposes,
references herein to Deferred Shares shall mean and include all securities or other property (other
than cash) that holders of the Common Stock are entitled to receive in respect of the Common Stock
by reason of each such event, which securities or other property (other than cash) shall be treated
in the same manner and shall be subject to the same restrictions as the underlying Deferred Shares.
However, in computing any adjustment hereunder, any fractional share or other fractional security
which might otherwise become subject to issuance may be eliminated.

     11. No Guarantee of Employment or Other Contract Right. This Award is not a
contract of employment, and neither this Award nor the Plan shall confer upon the Participant any
right with respect to continuance of employment or other service with the Company or any
subsidiary, or interfere in any way with any right the Company or any subsidiary would otherwise
have to terminate the Participant’s employment or other service. Receipt of this Award shall not
be deemed to create a right to receive any future performance share or performance unit, restricted
stock unit, restricted stock, stock option, stock appreciation right or other award or bonus in any
form, and shall not constitute an acquired labor right for purposes of any foreign law. This Award
is not a part of the Participant’s salary or wages and shall not afford the Participant any
additional right to severance payments or other termination awards or compensation under any
Company

 

 

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policy or any domestic or foreign law as a result of the termination of the Participant’s
employment for any reason whatsoever.

     12. Amendment and Termination. No amendment or termination of this Award
which would impair the rights of the Participant may be made without the written consent of the
Participant. No amendment or termination of the Plan may impair the rights of the Participant
under this Award without the written consent of the Participant.

     13. Severability. If any provision of this Award shall be held illegal,
invalid, or unenforceable for any reason, such provision shall be fully severable and shall not
affect the remaining provisions of this Award, and this Award shall be construed and enforced as if
the illegal, invalid, or unenforceable provision had never been included herein.

     14. Governing Law. This Award shall be construed in accordance with the laws
of the State of Missouri.

End of Exhibit Aexv10w7

 

Exhibit 10.7

RESTRICTED STOCK AWARD

(DIRECTOR)

PURSUANT TO THE SPARTECH CORPORATION

2004 EQUITY COMPENSATION PLAN

	 	 	 
	 
	 	 
	Award No.:

	 	RS(D)-20___-____
	 
	 	 
	Award Date:

	 	_________, 20___
	 
	 	 
	Director:

	 	________________________
	 
	 	 
	Award Shares:

	 	____________
	 
	 	 
	Vesting Date(s):

	 	___________, 20___ [For 2007, TBD; for future years,
first trading day in January after the Award Date]

     This Restricted Stock Award (“Award”) is granted by Spartech Corporation (the
“Company”) to the individual member of the Company’s Board of Directors named above (“Director”),
as of the date specified above (the “Award Date”), pursuant to the Spartech Corporation 2004 Equity
Compensation Plan (as amended and in effect from time to time, the “Plan”). Capitalized terms not
defined herein have the meanings given to them in the Plan.

     Subject to the terms and conditions set forth in this Award and the Plan, and subject to the
Director’s written acknowledgment and acceptance of this Award, the Company hereby grants to the
Director all rights, title and interest in and to the number of shares of Company common stock,
$.75 par value per share (“Common Stock”) specified above (the “Award Shares”).

     This Award is subject to the terms of the Plan and to all of the terms and conditions
contained in Exhibit A, which begins on the following page and which is a part of this
Award. Among other things, Exhibit A contains important additional information on vesting
and forfeiture of the Award Shares.

     This Award is void unless it is signed by the Director and returned to the Company by the
60th day after the Award Date.

	 	 	 	 	 
	 	SPARTECH CORPORATION

 	 
	 	By:  	 	 
	 	 	(Name)  	 	 
	 	 	(Title)  	 	 
	 

* * * * *

     By signing below, the Director hereby acknowledges and accepts the above Award subject to the
terms set forth above and in the Plan, and also acknowledges receipt of a copy of the Plan and the
current Prospectus for the Award Shares.

	 	 	 	 	 	 
	 
	 	 	 	 	 
	

	 	Director:	 	 	 
	 

	 	 	 	 
	 

	 	Date Signed:	 	 	 
	 

	 	 	 	 

 

 

A-1

EXHIBIT A

TO

RESTRICTED STOCK AWARD

     1. Rights of Director with Respect to Award Shares. Subject to the
restrictions set forth in this Award, the Director shall have all rights as a stockholder with
respect to the Award Shares, including the right to vote and receive dividends and other
distributions on the Award Shares.

     2. Certain Restrictions with Respect to Award and Award Shares.

     (a) Non-Transferability of Award. This Award, and any unvested Award Shares, shall
not be transferable other than by the Director’s last will and testament or the laws of descent and
distribution, or by court order. No right or benefit hereunder shall in any manner be liable for
or subject to any debts, contracts, liabilities, or torts of the Director.

     (b) Non-Transferability Covenant. Notwithstanding the vesting of any Award Shares,
the Director agrees not to voluntarily transfer the Award Shares during his or her lifetime until
the last to occur of the following events:

	 	(i)	 	Six (6) months after the Grant Date, or
	 
	 	(ii)	 	Until the Director has achieved the minimum ownership of common stock then required
by the Director Stock Ownership Policy adopted by the Board of Directors effective
December 15, 2006, as the same may have from time to time have been amended; provided that
no transfer of Award Shares shall be made which would cause the director’s stock ownership
to fall below the minimum required by such Policy.

     (c) Assurance of Compliance. To ensure compliance with the terms of this Award, and
as a condition of the issuance of the Award Shares, the Director hereby:

	 	(i)	 	Agrees that certificates or accounts for unvested Award Shares may bear a legend or
otherwise be subject to the restrictions imposed by this Award;
	 
	 	(ii)	 	Agrees that the Company may retain custody, either directly or through an agent, of
any unvested Award Shares either in certificate or book entry form at the Company’s
option;
	 
	 	(iii)	 	Agrees to execute such stock powers or other documents, if required, as the Company
may require in order to transfer and/or redeliver any unvested Award Shares to the Company
if and when provided by this Award; and
	 
	 	(iv)	 	Irrevocably appoints the Secretary or Assistant Secretary of the Company as the
Director’s attorney-in-fact to take any other action necessary to ensure such compliance.

     3. Vesting of Award Shares.

     (a) Vesting Date. Except as otherwise provided in this Award, the Award Shares shall
become non-forfeitable, or “vest,” on the “Vesting Date(s)” set forth above. Upon vesting of the
Award Shares, the Company shall release the Award Shares which have vested to or as directed by the
Director, subject to Section 5.

 

 

A-2

     (b) Acceleration of Vesting Upon Death or Disability. Upon the Director ’s death or
Disability, all unvested Award Shares shall immediately vest, and, subject to Section 5, the
Company shall deliver the Award Shares which have become vested:

	 	(i)	 	In the case of the Director’s death, to or as directed by the person or persons to
whom the Director’s rights under this Award shall have passed by will or by the applicable
laws of descent and distribution; or
	 
	 	(ii)	 	In the case of the Director’s Disability, to or as directed by the Director or the
Director’s personal representative.

     (c) Acceleration of Vesting Upon Change in Control. If a Change in Control shall
occur, whether or not the Director’s service as a director is terminated, then all unvested Award
Shares shall immediately vest, and, subject to Section 5, the Company shall deliver to or as
directed by the Director the Award Shares which have become vested.

     4. Forfeiture of Unvested Award Shares. If, prior to the vesting of all of
the Award Shares, the Director’s service as a director terminates for any reason (whether voluntary
or involuntary and whether with or without cause) other than because of a Change in Control or the
Director’s death, Disability or Retirement, then immediately after such termination all unvested
Award Shares shall be forfeited by the Director and transferred back to the Company.

     5. Taxes.

     (a) Tax Withholding. If any withholding taxes are payable by the Company under any
federal, state or local tax law related to the grant of this Award or the vesting of the Award
Shares, then unless the Director makes advance arrangements satisfactory to the Company to
reimburse the Company in a timely manner for such taxes, the Company:

	 	(i)	 	May withhold, or cause to be withheld, from the Award Shares otherwise deliverable to
the Director under this Award, a number of such shares having a fair market value on the
applicable Vesting Date sufficient to satisfy its tax withholding obligations at the
minimum statutory rate, and
	 
	 	(ii)	 	May take such other action as may be necessary or appropriate to satisfy any such tax
withholding obligations.

     (b) Valuation for Tax Purposes. For income and withholding tax purposes, the
per-share fair market value of the Award Shares on a given date shall be deemed to be the closing
price of the Company’s common stock on the New York Stock Exchange on such date (or if such date is
not a trading day, then the opening price on the next trading day), except to the extent a
different valuation method may be required to be used by applicable tax laws or regulations.

     (c) No Commitment As to Tax Treatment. Neither the Company nor any subsidiary makes
any commitment or guarantee that any federal or state tax treatment will apply or be available to
the Director. The Director agrees to indemnify the Company for the Director’s portion of any
social insurance obligations or taxes arising under any foreign law with respect to the grant of
this Award, the vesting of the Award Shares, or the sale or other disposition of the Award Shares.

     6. Additional Definitions. For purposes of this Award:

     (a) “Change in Control” means:

	 	(i)	 	The occurrence of the “Distribution Date” as such term is defined in the Rights
Agreement dated as of April 2, 2001 between the Company and Mellon Investor Services LLC;
or

 

 

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	 	(ii)	 	If the “Redemption Date” or the “Final Expiration Date,” as such terms are defined in
the aforesaid Rights Agreement, has occurred, the acquisition by any Person of 50% or more
of the combined voting power of all the Company’s then outstanding voting securities,
unless prior to such acquisition the Board has approved such acquisition and determined
that it is in the best interests of the Company and its shareholders; or
	 
	 	(iii)	 	The approval by the Board of any merger, consolidation or other transaction
involving the Company, or of any one of a series of related transactions, as a result of
which (A) the Company would not be the surviving corporation, or (B) the holders of the
Company’s common stock immediately prior to such transaction would not own at least a
majority of the voting power of the Company immediately after the transaction in
substantially the same relative proportions as they owned the Company’s common stock
immediately prior to the transaction, or (C) the Company’s common stock would be converted
into cash or other securities of the Company other than voting securities having
substantially the same relative and proportionate voting power in the entity or entities
surviving the transaction as the common stock has immediately prior to the transaction; or
	 
	 	(iv)	 	The commencement of any tender offer subject to Section 14(d) of the Exchange Act for
20% or more of the Company’s common stock; if the person making such offer could own 50%
or more of such common stock when the tender offer terminates; or
	 
	 	(v)	 	Any change or changes in the composition of the Board within any twenty-four month
period such that the individuals constituting the Board at the beginning of such period,
together with any individuals who became directors after the beginning of such period
whose election by the Board or nomination for election by the Company’s shareholders was
approved by at least a majority of the directors who were on the Board at the beginning of
such period or whose election was previously approved in the same manner, cease to
constitute a majority of the Board; or
	 
	 	(vi)	 	The approval by the stockholders of the Company of a plan of complete liquidation of
the Company or an agreement for the sale or disposition by the Company of all or
substantially all the Company’s assets.

For purposes of this definition, “Person” shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however, a Person shall not
include (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its subsidiaries, (3) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (4) a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of Company stock.

     (b) “Disability” means the condition of being “disabled” as defined in Section
409A(a)(2)(C) of the Internal Revenue Code (the “Code”). Unless otherwise required under
applicable provisions of the Code, the Disability of a Director shall be determined by a licensed
physician chosen by the Company.

     7. Securities Law Restrictions. The Director agrees that if at the time of
acquisition or delivery of any Award Shares issued hereunder the sale of such shares is not covered
by an effective registration statement filed under the Securities Act of 1933 (the “Act”), the
Director will acquire the Award Shares for the Director’s own account and without a view to resale
or distribution in violation of the Act or any other securities law, and that the Director will
enter into such written representations, warranties and agreements as the Company may reasonably
request in order to comply with the Act or any other securities law or with this Award.

 

 

A-4

     8. Reorganization of the Company; Adjustment of Award Shares. The existence
of this Award shall not affect in any way the right or power of the Company or its stockholders to
make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in
the Company’s capital structure or its business, or any merger or consolidation of the Company, or
any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the Award
Shares or the rights thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise. However, if the Common Stock is
subdivided, consolidated, increased, decreased, changed into or exchanged for a different number or
kind of shares or other securities, whether through reorganization, merger, recapitalization,
reclassification, capital adjustment or otherwise, or if the Company shall issue common stock or
other securities as a dividend or upon a stock split, then for all purposes, references herein to
Common Stock or to Award Shares shall mean and include all securities or other property (other than
cash) that holders of the Common Stock are entitled to receive in respect of the Common Stock by
reason of each such event, which securities or other property (other than cash) shall be treated in
the same manner and shall be subject to the same restrictions as the underlying Award Shares. In
computing any adjustment hereunder, any fractional share or other fractional security which might
otherwise become subject to issuance may be eliminated.

     9. No Guarantee of Service As A Director or Other Contract Right. This Award
is not a contract of service as a director, and neither this Award nor the Plan shall confer upon
the Director any right with respect to continuance of service as a director, or interfere in any
way with any right the Company would otherwise have to terminate the Director’s service as a
director. Receipt of this Award shall not be deemed to create a right to receive any future
restricted stock, restricted stock unit, performance share or performance unit, stock option, stock
appreciation right or other award or bonus in any form, and shall not constitute an acquired labor
right for purposes of any foreign law. This Award is not a part of the Director’s salary or wages
and shall not afford the Director any additional right to severance payments or other termination
awards or compensation under any Company policy or any domestic or foreign law as a result of the
termination of the Director’s service as a director for any reason whatsoever.

     10. Amendment and Termination. No amendment or termination of this Award
which would impair the rights of the Director may be made without the written consent of the
Director. No amendment or termination of the Plan may impair the rights of the Director under this
Award without the written consent of the Director.

     11. Severability. If any provision of this Award shall be held illegal,
invalid, or unenforceable for any reason, such provision shall be fully severable and shall not
affect the remaining provisions of this Award, and this Award shall be construed and enforced as if
the illegal, invalid, or unenforceable provision had never been included herein.

     12. Governing Law. This Award shall be construed in accordance with the laws
of the State of Missouri.

End of Exhibit A

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