Document:

dirrestrictedstockagreement.htm

     

    
EXHIBIT 10.5

     

     

    
      THIS
DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES

      THAT
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

    

     

    DIRECTOR

     

    RESTRICTED
STOCK AGREEMENT

     

    (PURSUANT
TO THE TERMS OF THE

     

    POOL
CORPORATION

     

    AMENDED
AND RESTATED 2007 LONG-TERM INCENTIVE PLAN)

     

     

    This
RESTRICTED STOCK AGREEMENT (this "Restricted Stock Agreement") is between Pool
Corporation, a Delaware corporation ("Company"), and _____________("Recipient"),
and is dated as of the date set forth immediately above the signatures
below.

     

     

    1.           Grant of
Restricted Stock. The Company hereby grants to Recipient all rights,
title and interest in the record and beneficial ownership of ________ shares
(the "Restricted Stock" or the “Incentive”) of common stock, $.001 par value per
share, of Company ("Common Stock") subject to the conditions described in
Paragraphs 4 and 5 as well as the other provisions of this Restricted Stock
Agreement. The Restricted Stock is granted pursuant to and to implement in part
Pool Corporation’s Amended and Restated 2007 Long-Term Incentive Plan (as
amended and in effect from time to time, the "Plan") and is subject to the
provisions of the Plan, which is hereby incorporated herein and is made a part
hereof, as well as the provisions of this Restricted Stock Agreement and in the
event of any inconsistency, the provisions of the Plan shall control. Recipient
agrees to be bound by all of the terms, provisions, conditions and limitations
of the Plan and this Restricted Stock Agreement. All capitalized terms have the
meanings set forth in the Plan unless otherwise specifically provided. All
references to specified paragraphs pertain to paragraphs of this Restricted
Stock Agreement unless otherwise specifically provided.

     

     

    2.           Custody
of Restricted Stock. Upon satisfaction of the vesting conditions set
forth in Paragraph 4 or the occurrence of any of the events contemplated by
Paragraph 5, Company shall issue and deliver to Recipient a certificate or
certificates for such number of shares of Restricted Stock as are required to be
issued and delivered under this Restricted Stock Agreement. Prior to the
satisfaction of such vesting conditions or the occurrence of such events, the
Restricted Stock is not transferable and shall be held in trust until such time
as the applicable restrictions on the transfer thereof have expired or otherwise
lapsed.

     

     

    3.           Risk of
Forfeiture. Subject to Paragraph 5, should Recipient's service as a
member of the Board of Directors of the Company and each Subsidiary terminate
prior to the vesting date set forth in Paragraph 4, Recipient shall forfeit the
Restricted Stock that would otherwise have vested on such dates.  For
purposes of this Restricted Stock Agreement, “Subsidiary” shall mean any
corporation or other entity of which the Company owns securities having a
majority of the ordinary voting power in electing the board of directors or
similar governing body, either directly or through one or more
Subsidiaries.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Vesting
Dates. Subject to Paragraph 5, the shares of Restricted Stock subject to
this Restricted Stock Agreement shall vest in full on May [ ],
2010.

     

     

    5.           Termination
of Service on the Board of Directors; Change of Control. Except as
otherwise provided in this Paragraph 5, if Recipient ceases to serve on the
Board of Directors prior to May [ ], 2010, then Recipient shall forfeit the
right to receive all of the shares of Restricted Stock.

     

     

    a.           Change of Control. If
a Change of Control shall occur, then immediately all nonvested Restricted Stock
shall fully vest, all restrictions (other than those described in Paragraph 9)
applicable to such Restricted Stock shall terminate and Company shall release
from escrow or trust and shall issue and deliver to Recipient a certificate or
certificates for all shares of Restricted Stock.

     

     

    b.           Death or Disability.
If Recipient's service on the Board of Directors is terminated by death or
Disability, then immediately all nonvested Restricted Stock shall fully vest,
all restrictions (other than described in Paragraph 9) applicable to Restricted
Stock shall terminate and Company shall release from escrow or trust and shall
issue and deliver to Recipient, or in the case of death, to the person or
persons to whom Recipient's rights under this Restricted Stock Agreement shall
pass by will or by the applicable laws of descent and distribution, or in the
case of Disability, to Recipient's personal representative, a certificate or
certificates for all Restricted Stock.

     

     

    c.           Definition of
Disability.  For purposes of this Restricted Stock Agreement,
“Disability” shall mean a disability that would entitle an employee to the
payment of disability payments under the Company’s or Subsidiary’s long-term
disability plan or as otherwise determined by the Committee.

     

     

    6.           Ownership
Rights. Subject to the restrictions set forth herein and subject to
Paragraph 9, Recipient is entitled to all voting and ownership rights applicable
to the Restricted Stock, including the right to receive any dividends that may
be paid on Restricted Stock, whether or not vested.

     

     

    7.           Reorganization
of Company and Subsidiaries. The existence of this Restricted Stock
Agreement shall not affect in any way the right or power of Company or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in Company's capital structure or its business,
or any merger or consolidation of Company or any issue of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Restricted Stock
or the rights thereof, or the dissolution or liquidation of Company, or any sale
or transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    8.           Adjustment
of Shares. In the event of stock dividends, spin-offs of assets or other
extraordinary dividends, stock splits, combinations of shares,
recapitalizations, mergers, consolidations, reorganizations, liquidations,
issuances of rights or warrants and similar transactions or events involving
Company ("Recapitalization Events"), then for all purposes references herein to
Common Stock or to Restricted Stock shall mean and include all securities or
other property that holders of Common Stock of Company are entitled to receive
in respect of Common Stock by reason of each successive Recapitalization Event,
which securities or other property shall be treated in the same manner and shall
be subject to the same restrictions as the underlying Restricted
Stock.

     

     

    9.           Certain
Restrictions. By accepting the Restricted Stock, Recipient agrees that if
at the time of delivery of certificates for shares of Restricted Stock issued
hereunder any sale of such shares is not covered by an effective registration
statement filed under the Securities Act of 1933 (the "Act"), Recipient will
acquire the Restricted Stock for Recipient's own account and without a view to
resale or distribution in violation of the Act or any other securities law, and
upon any such acquisition Recipient will enter into such written
representations, warranties and agreements as Company may reasonably request in
order to comply with the Act or any other securities law or with this Restricted
Stock Agreement.

     

     

    10.           Nontransferability
of Incentive. This Incentive is not
transferable other than by will, the laws of descent and distribution or by
domestic relations order. No right or benefit hereunder shall in any manner be
liable for or subject to any debts, contracts, liabilities, or torts of
Recipient.

     

     

    11.           Amendment
and Termination. No amendment or termination of this Restricted Stock
Agreement which would impair the rights of Recipient shall be made by the
Compensation Committee at any time without the written consent of Recipient. No
amendment or termination of the Plan will adversely affect the right, title and
interest of Recipient under this Restricted Stock Agreement or to Restricted
Stock granted hereunder without the written consent of Recipient.

     

     

    12.           No
Guarantee of Tax Consequences. Neither Company nor any Subsidiary nor the
Compensation Committee makes any commitment or guarantee that any federal or
state tax treatment will apply or be available to any person eligible for
benefits under this Restricted Stock Agreement.

     

     

    13.           Severability.
In the event that any provision of this Restricted Stock Agreement shall be held
illegal, invalid, or unenforceable for any reason, such provision shall be fully
severable, but shall not affect the remaining provisions of this Restricted
Stock Agreement and this Restricted Stock Agreement shall be construed and
enforced as if the illegal, invalid, or unenforceable provision had never been
included herein.

     

     

    14.           Governing
Law. The Restricted Stock Agreement shall be construed in accordance with
the laws of the State of Delaware to the extent federal law does not supersede
and preempt Delaware law.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    15.           Section
83(b) Election.  The Recipient has reviewed with the
Recipient’s own tax advisors the federal, state, local and foreign tax
consequences of this investment and the transactions contemplated by this
Restricted Stock Agreement.  The Recipient is relying solely on such
advisors and not on any statements or representations of the Company or any of
its agents.  The Recipient understands that the Recipient (and not the
Company) shall be responsible for the Recipient’s own tax liability that may
arise as a result of the transactions contemplated by this
Agreement.  The Recipient understands that the Recipient may elect to
be taxed at the time the shares are granted by filing an election under Section
83(b) of the Code with the IRS within thirty days from the date of
grant.  The Recipient acknowledges that it is the Recipient’s sole
responsibility and not the Company’s to file timely the election under Section
83(b), even if the Recipient requests the Company or its representatives, to
make this filing on the Recipient’s behalf.

     

     

    16.           Electronic
Delivery and Signatures. Recipient hereby consents and agrees to
electronic delivery of any Plan documents, proxy materials, annual reports and
other related documents. If the Company establishes procedures for an electronic
signature system for delivery and acceptance of Plan documents (including
documents relating to any programs adopted under the Plan), Recipient hereby
consents to such procedures and agrees that his or her electronic signature is
the same as, and shall have the same force and effect as, his or her manual
signature. Recipient consents and agrees that any such procedures and delivery
may be effected by a third party engaged by the Company to provide
administrative services related to the Plan, including any program adopted under
the Plan. 

     

     

    IN
WITNESS WHEREOF, the parties have entered into this Restricted Stock Agreement
as of the [  ] day of
[          ],
2009.

     

     

     

     

     

    "COMPANY"

     

    POOL
CORPORATION

     

     

    By: __________________________________

    Name:

    Title:

     

     

     

    "Recipient"

     

     

    _____________________________________

    Name:

     

     

     

     

     

     

     

    

    
      
        
           

        

         

      

      
        4EX-10.1

Exhibit 10.1

ALLIED HEALTHCARE INTERNATIONAL INC.

STOCK APPRECIATION RIGHTS AGREEMENT

     THIS STOCK APPRECIATION RIGHTS AGREEMENT (the “Agreement”) is hereby entered into effective as
of April 21, 2009 (the “Date of Grant”) by and between ALLIED HEALTHCARE INTERNATIONAL INC., a New
York corporation (the “Company”), having an address at 245 Park Avenue, New York, New York 10167
and Alexander Young, having an address at Fords Field, Smugglers Lane, Crowborough, East Sussex,
England TN6 1TG (the “Grantee”).

     1. PURPOSE. This Agreement is intended to constitute a one person special scheme and forms an
integral part of the Company’s compensation package offered to the Grantee in connection with the
Grantee’s agreement to become employed by the Company as its chief executive officer.

     2. GRANT OF AWARD. The Company hereby grants to the Grantee an award of 566,135 stock
appreciation rights (“SARs”) with respect to shares of the Company’s common stock, $.01 par value
per share (the “Shares”), subject to the terms and conditions set forth in this Agreement (the
“Award”). The SARs represent the right to receive from the Company, upon settlement of the Award
under the circumstances set forth herein, a payment, paid in Shares of the Company, equal to the
product of (A) the number of SARs granted pursuant to this Agreement that become vested pursuant to
Section 5 hereof and (B) the excess of (i) the Fair Market Value of one Share of the Company on the
date the vested SARs are paid to the Grantee over (ii) the Base Price.

     3. ADMINISTRATION. The terms and conditions of this Agreement are, to the extent
interpretation is required, to be determined by the Compensation Committee of the Company’s Board
of Directors, or such committee of the Board of Directors as may be established and charged with
such responsibilities from time to time. The Compensation Committee of the Board of Directors, any
other committee of the Board of Directors as may be charged with such responsibilities from time to
time, and/or the Board of Directors itself, when acting to administer and interpret this Agreement,
shall be referred to herein as the “Committee.”

     4. DEFINITIONS.

     For purposes of this Agreement, the following capitalized terms shall have the meanings
indicated:

          (a) “Base Price” means the Fair Market Value of one Share determined on the Date of Grant or
such greater price as is required pursuant to Section 7.

          (b) “Change of Control” shall be deemed to have occurred at such time as any person, or
persons acting as a group, acquires more than 50% of the outstanding voting equity of the Company,
or at such time as all or substantially all of the assets of the Company are sold or otherwise
disposed of to any person, or persons acting as a group. In the case of a sale or

 

 

disposition of assets of the Company, the acquiring party may be treated as a Surviving Entity
for purposes of paragraph 5(d).

          (c) “Fair Market Value” means, with respect to a Share as of any date of determination, in the
discretion of the Committee, (i) the last reported sale price (on that date) of the Common Stock on
the principal national securities exchange on which the Shares are traded; or (ii) the closing bid
price (or average of bid prices) last quoted (on that date) by an established quotation service for
over-the-counter securities, if the Shares are not reported on the NASDAQ Stock Market; or (iii) if
Shares are not publicly traded, the fair market value of such Share as determined by the Board in
good faith after taking into consideration all facts which it deems appropriate and in accordance
with applicable statutory and regulatory guidelines.

          (d) “Grantee’s Options” means those stock options granted by the Company to the Grantee on
February 6, 2008.

          (e) “Performance Period” means the four-year period beginning on October 1, 2007 and ending
September 30, 2011.

          (f) “Vesting Date” means September 30, 2011.

     5. VESTING.

          (a) Performance Vesting. Except as otherwise provided below, as soon as practicable
following the completion of the Performance Period, the Committee shall determine the number of
SARs that will be vested, as of the Vesting Date, based on the achievement of the Performance
Measures set forth on Exhibit A. If the Threshold performance level for all Performance Measures
(as set forth on Exhibit A) has not been achieved, the Award shall be forfeited without
consideration as of the last day of the Performance Period.

          (b) Time Vesting. The Award shall vest and become nonforfeitable with respect to the
number of SARs determined to be vested pursuant to Section 5(a) above provided that the Grantee
remains continuously employed with the Company for the three (3) year period beginning on January
14, 2008 and ending on January 13, 2011. Except as provided below, if the Grantee’s employment
with the Company is terminated by the Grantee or the Company prior to January 14, 2011, the Award
shall be immediately forfeited on the date of his termination of employment regardless of the
achievement of any of the Performance Measures set forth in Exhibit A.

          (c) Employment Termination: If, prior to January 14, 2011, the Grantee’s employment
with the Company is terminated by reason of the Grantee’s death, a condition that the Committee
determines constitutes a disability, injury or health condition making continued employment
impossible or impractical (which may include, but is not limited to a condition that constitutes a
“disability” for purposes of disability insurance or other benefits), or by reason of any other
circumstances the Committee determines, the Grantee shall become vested in the Award to the extent
determined by the Committee, which determination shall be made by determining the extent to which
the performance levels have been achieved, and further establishing the portion of the Award that
is to be considered vested by multiplying that portion of the Award that are deemed potentially to
have vested by reason of satisfaction of the

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applicable performance levels by a fraction, the numerator of which is the number of completed
months elapsed from October 1, 2007 through the date of the Grantee’s termination of employment,
and the denominator of which is forty-eight (48).

          (d) Change of Control: In the event there is a Change of Control, the Award shall
become immediately vested to the same extent as provided for in paragraph 5(c), above, and shall,
to the extent vested, be exercisable for a period of thirty (30) days following the Change of
Control. If not exercised within such thirty (30) day period, the Award shall be forfeited.
Notwithstanding the foregoing, however, if there is a surviving entity following the Change of
Control that is continuing the business operations of the Company as in place immediately prior to
the Change of Control (the “Surviving Entity”), and the Surviving Entity makes arrangements for the
continuation of the Award, with appropriate adjustments to take into account changes in the
business structure of the Surviving Entity as compared with the Company immediately prior to the
Change of Control, the Award shall only become vested at the time and to the extent provided in
this Agreement without regard to the accelerated vesting provided for in this paragraph 5(d).

          (e) Termination for Cause. If the Grantee’s employment with the Company is terminated
at any time by the Company for reasons the Committee constitutes Cause for the Grantee’s
termination, the Award shall be forfeited in its entirety, without regard to whether the Award had
previously become vested and exercisable. For this purpose, “Cause” includes the circumstances
that would permit the Company to terminate the Grantee’s employment pursuant to “Termination by
Events of Default” in that certain employment agreement in effect between the Grantee and the
Company dated December 22, 2007, (other than clause (e) (relating to becoming of unsound mind) and
clause (i) (relating to illness or injury).

     6. PAYMENT OF AWARD. Subject to the provisions of Sections 7 and 10 hereof, the Company shall
deliver to the Grantee a payment for each earned and vested SAR as determined in accordance with
this Agreement, with such payment to be made in Shares. Payment shall be made as soon as
practicable following the Committee’s determination of the number of vested SARs, based on the
achievement of the Performance Measures set forth on Exhibit A, but not later than January 31,
2012.

     7. LIMITS ON AWARD.

          (a) Notwithstanding any provisions contained herein to the contrary, the maximum aggregate
value of (i) the vested portion of the Award and (ii) the vested portion of the Grantee’s Options
(“Total Award Value”) shall be limited to £3,000,000, determined as of the date the Award is
settled. If the Total Award Value exceeds £3,000,000, the Base Price shall increase so that the
Total Award Value equals £3,000,000.

          (b) The value of the vested portion of the Grantee’s Options shall be determined, if still
outstanding on the date the Award is settled, as of the date the Award is settled and shall be
equal to the excess of (i) the Fair Market Value of the Shares subject to the vested portion of the
Grantee’s Options on such date, in the aggregate, over (ii) the exercise price required to purchase
such Shares in their entirety. The Grantee shall not be obligated to exercise

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the Grantee’s Options in connection with the settlement of the Award, and future increases in
value of the Grantee’s Options shall have no impact on the value of the Award.

          (c) If the vested portion of the Grantee’s Options have been exercised, in whole or in part,
prior to the date the Award is settled hereunder, the value of the vested portion of the Grantee’s
Options, to the extent already exercised, shall be equal to the excess of the Fair Market Value of
the Shares purchased upon exercise of the Option, determined as of the date the Option was
exercised over (ii) the exercise price required to purchase such Shares.

          (d) Because the limitation on the value of the Award in paragraph 6(b), above, is an
aggregate, the limitation shall be applied on a pro rata basis if the Award actually being
exercised represent less than all of the SARs.

     8. NONTRANSFERABILITY. The Award may be transferred only by will or the laws of descent and
distribution, but only to the extent vested as of the date of the Grantee’s death. During the
Grantee’s lifetime, the Award may be exercised only by the Grantee (or by the Grantee’s legal
representative in the event the Grantee is disabled and is incapable of acting on his own behalf).

     9. GRANTEE’S REPRESENTATIONS.

          (a) Grantee acknowledges that the Company may issue Shares upon the settlement of the Award
without registering such Shares under the Securities Act of 1933, as amended (the “1933 Act”), on
the basis of certain exemptions from such registration requirement. Accordingly, Grantee agrees
that the settlement of Award may be expressly conditioned upon his delivery to the Company of an
investment certificate including such representations and undertakings as the Company may
reasonably require in order to assure the availability of such exemptions, including a
representation that Grantee is acquiring the Shares for investment and not with a present intention
of selling or otherwise disposing thereof and an agreement by Grantee that the certificates
evidencing the Shares may bear a legend indicating such non registration under the 1933 Act and the
resulting restrictions on transfer. Grantee acknowledges that, because Shares received upon the
settlement of the Award may be unregistered, Grantee may be required to hold the Shares
indefinitely unless they are subsequently registered for resale under the 1933 Act or an exemption
from such registration is available.

          (b) Grantee hereby acknowledges that, in addition to certain restrictive legends that the
securities laws of the jurisdiction in which Grantee resides may require, each certificate
representing the Shares may be endorsed with the following legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY HAVE BEEN ACQUIRED
BY THE HOLDER FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED,
SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE 1933 ACT AND ANY

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APPLICABLE STATE SECURITIES LAW OF RECEIPT BY THE ISSUER OF AN
OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT REGISTRATION
UNDER THE ACT AND APPLICABLE STATE LAW IS NOT REQUIRED.

     10. ADJUSTMENT IN THE SHARES. If the Shares, as presently constituted, shall be changed into
or exchanged for a different number or kind of shares or other securities of the Company or of
another corporation (whether by reason of merger, consolidation, recapitalization,
reclassification, split, reverse split, combination of shares, or otherwise) or if the number of
Shares shall be increased through the payment of a share dividend, the determinations of value of
the Award and of the Shares that may be issued upon the settlement of the Award shall be modified
so as to preserve the intended economic benefits intended to be provided by the grant of the Award,
as determined by the Committee. The deemed exercise price and other terms of the hypothetical
nonqualified stock option to which the grant of the Award corresponds shall be appropriately
modified as determined by the Committee.

     11. TAX WITHHOLDING. The Company shall have the right to require the Grantee to remit to the
Company amount sufficient to satisfy any applicable foreign, federal, state and local tax
withholding requirements in respect of the settlement of the Award. The Grantee may give the
Company cash equal to the amount required to be withheld or the Company may withhold Shares
otherwise issuable upon the settlement of the Award having a Fair Market Value on the settlement
date equal to the amount required to be withheld (but only to the extent of the minimum amount that
must be withheld to comply with applicable foreign, state, federal and local income, employment and
wage tax laws.)

     12. NO LIMITATION ON RIGHTS OF COMPANY. The Award shall not in any way affect the right or
power of the Company to make adjustments, reclassifications, or changes in its capital or business
structure or to merge, consolidate, dissolve, liquidate, sell, or transfer all or any part of its
business or assets.

     13. NO RIGHTS AS A SHAREHOLDER. The Grantee shall have no rights of a shareholder with
respect to any shares that may be transferable to the Grantee in connection with the settlement of
the Award unless and until Shares are in fact issued to the Grantee.

     14. COMPLIANCE WITH APPLICABLE LAW. Notwithstanding anything herein to the contrary, the
Company shall not be obligated to cause to be issued or delivered any certificates for Shares
pursuant to the settlement of the Award, unless and until the Company is advised by its counsel
that the issuance and delivery of such certificates is in compliance with all applicable laws,
regulations of governmental authority, and the requirements of any exchange upon which Shares are
traded. The Company shall in no event be obligated to register any securities pursuant to the 1933
Act (as now in effect or as hereafter amended) or to take any other action in order to cause the
issuance and delivery of such certificates to comply with any such law, regulation or requirement.
The Board of Directors of the Company may require, as a condition of the issuance and delivery of
such certificates and in order to ensure compliance with such laws, regulations, and requirements,
that the Grantee make such covenants, agreements, and representations as the Board of Directors, in
its sole discretion, considers necessary or desirable.

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     15. NO OBLIGATION TO EXERCISE RIGHTS. The granting of the Award shall impose no obligation
upon the Grantee to exercise the Award.

     16. AGREEMENT NOT A CONTRACT OF EMPLOYMENT. This Agreement is not a contract of employment,
and the terms of service of the Grantee or the relationship of the Grantee with the Company or any
affiliate shall not be affected in any way by this Agreement except as specifically provided
herein. The execution of this Agreement shall not be construed as conferring any legal rights upon
the Grantee for a continuation of directorship or relationship with the Company or any affiliate,
nor shall it interfere with the right of the Company or any affiliate to discharge the Grantee and
to treat him without regard to the effect which that treatment might have upon him as a Grantee.

     17. NOTICES. Any notice or other communication required or permitted hereunder shall be in
writing and shall be delivered personally or sent by certified, registered, or express mail,
postage prepaid. Any such notice shall be deemed given when so delivered personally or, if mailed,
four days after the date of deposit in the United States mails, to each party at its address set
forth above or to such other address as may be designated in a notice given in accordance with this
paragraph 17.

     18. GOVERNING LAW. Except to the extent preempted by Federal law, this Agreement shall be
construed and enforced in accordance with, and governed by, New York law other than its conflicts
of law provisions.

     19. ENTIRE AGREEMENT. This Agreement contains all of the understandings and agreements
between the Company and its affiliates, and the Grantee concerning the Award and supersedes all
earlier negotiations and understandings, written or oral, between the parties with respect thereto.
The Company, its affiliates and the Grantee have made no promises, agreements, conditions or
understandings, either orally or in writing, that are not included in this Agreement.

     20. HEADINGS. The headings of paragraphs and subparagraphs herein are included solely for
convenience of reference and shall not affect the meaning of any of the provisions of the
Agreement.

     21. AMENDMENTS. This Agreement may be amended or modified at any time by an instrument in
writing signed by the parties hereto.

     IN WITNESS WHEREOF, the Company and the Grantee have duly executed this Agreement as of the
date first written above.

	 	 	 	 	 
	 	ALLIED HEALTHCARE INTERNATIONAL INC.

 	 
	 	By:  	/s/ Jeffrey Peris
 	 
	 	 	Title: Interim Chairman 	 
	 	 	 	 
	 
	 	GRANTEE

 	 
	 	/s/ Sandy Young
 	 
	 	Alexander Young 	 
	 	 	 

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EXHIBIT A

Schedule of Performance Measures

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Metric	 	Weighting	 	Measurement Period	 	Threshold	 	Base	 	Stretch
	Sales Growth
	 	 	40	%	 	Average of October	 	 	34.4	%	 	 	43.8	%	 	 	52.4	%
	 
	 	 	 	 	 	1, 2009 - September	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	30, 2011 vs. Base	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Year ending	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	September 30, 2007	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Earnings per Share
	 	 	30	%	 	Average of October	 	 	417.6	%	 	 	617.4	%	 	 	789.3	%
	Growth
	 	 	 	 	 	1, 2009 - September	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	30, 2011 vs. Base	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Year ending	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	September 30, 2007	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EBITA
(Earnings
Before Interest,
Taxes,
and
Amortization)
Growth	 	 	30	%	 	Average of
October 
1, 2009 - September
30, 2011 vs. Base
Year
ending
September 30, 2007 	 	 	150.6	%	 	 	228.5	%	 	 	311.7	%

Vesting Schedule

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Metric	 	< Threshold	 	Threshold	 	Base	 	Stretch	 	> Stretch
	Sales Growth
	 	 	0	%	 	 	4	%	 	 	22	%	 	 	40	%	 	 	40	%
	Earnings per Share Growth
	 	 	0	%	 	 	3	%	 	 	16.5	%	 	 	30	%	 	 	30	%
	EBITA Growth
	 	 	0	%	 	 	3	%	 	 	16.5	%	 	 	30	%	 	 	30	%
	Total Vesting
	 	 	0	%	 	 	10	%	 	 	55	%	 	 	100	%	 	 	100	%

     The above Metrics shall generally be applied to determine the vesting of the SARs as of
September 30, 2011, based on the following:

     1. The determination of vesting attributable to each performance metric shall be independent
from the other performance metrics. For example, a below threshold performance

-7-

 

on a single performance metric does not preclude vesting under either or both of the other
performance metrics.

     2. If the actual results fall between Threshold and Base, or Base and Stretch, the vesting of
the Award will be prorated.

     3. For purposes of measuring EBITA Growth and Earnings Per Share Growth, the accounting cost
of the long-term incentive plan share-based remuneration shall be included.

     4. The Committee may adjust the performance metrics attributable to the Award at its
discretion at any time to take into account exceptional events, such as mergers, acquisitions and
share buybacks.

     5. The performance metrics will be measured in the reporting currency for the Company’s
financial statements at the time of the payout of the Award. Any necessary currency conversions
shall be made using the average exchange rate over the course of the Performance Period.

     6. In the event a determination regarding vesting of the Award is required to be made before
September 30, 2011, the performance metrics described above will be annualized on the basis of the
period elapsed from October 1, 2009 through such date of determination. The Company shall be
deemed not to have achieved any portion of the above performance metrics prior to October 1, 2009,
so that no portion of the Award shall become vested prior to such date, except to the extent
expressly provided in the Agreement. The methodology used by the Committee in determining the
extent to which any of the performance metrics have been achieved as of a date prior to September
30, 2011 shall be determined at the discretion of the Committee, taking into account such factors
as it deems appropriate under the facts and circumstances existing at the time of any such
determination.

-8-

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