Document:

EX-10.1

 

Exhibit 10.1

STOCK OPTION AGREEMENT

AGREEMENT, made this Date, by and between COHESANT TECHNOLOGIES INC., a Delaware corporation
having its principal place of business at 5845 West 82nd Street, Indianapolis, Indiana 46278
(“Grantor”) and Employee (“Optionee”).

WITNESSETH:

WHEREAS, Optionee is employed by Grantor or one of its subsidiaries; and

WHEREAS, Grantor is desirous of increasing the incentive of Optionee to exert the Optionee’s
utmost effort to improve the business and increase the assets of the Grantor.

NOW, THEREFORE, in consideration of the promises of the Optionee to remain in the continuous
service of the Grantor or its subsidiary, and for other good and valuable consideration, the
Grantor hereby grants the Optionee options to purchase Common Stock of the Grantor on the
following terms and conditions:

	1)	 	OPTIONS. Pursuant to its 2005 Long-Term Incentive Plan (the “Plan”), the Grantor
hereby grants to Optionee non-qualified stock options (not intended to qualify under Section
422A of the Internal Revenue Code of 1986, as amended) to purchase up to Amount fully paid and
non-assessable shares of the Common Stock of the Grantor, par value $.001 per share. One-third
(1/3) of the foregoing options (rounded down to the nearest whole share) shall become
exercisable immediately, another one-third (1/3) of the options (rounded down to the nearest
whole share) shall become exercisable on November 30, 2006, and the remaining options shall
become exercisable on November 30, 2007. The options shall expire, if not previously
exercised or terminated pursuant to the terms set forth in Section 4, on December 19, 2010.

	2)	 	PURCHASE PRICE. The exercise price for each share of Common Stock that is subject to
an option shall be $Amount per share. The Grantor shall pay all original issue or transfer
taxes on the exercise of the options and all other fees and expenses necessarily incurred by
the Grantor in connection therewith.

	3)	 	EXERCISE OF OPTION. The Optionee shall notify the Grantor, in writing, addressed to
its principal office, as to the number of shares of Common Stock which Optionee desires to
purchase pursuant to the options herein granted, which notice shall be accompanied by payment
(by cash, check or as otherwise permitted by the Plan) of the option price therefore as
specified in Paragraph 2 above. As soon as practicable thereafter, the Grantor shall cause to
be delivered to the Optionee certificates issued in

 

 

	 	 	the Optionee’s name evidencing the shares of Common Stock purchased by the Optionee.

	4)	 	OPTION CONDITIONED ON CONTINUED EMPLOYMENT.

	 	a)	 	If the Optionee ceases to be employed with Grantor or a subsidiary for any reason other
than death, disability or termination for cause, such options may be exercised at any time
within the ninety (90) day period commencing with the date the Optionee ceases to be an
employee, subject to the provisions of subparagraph (d) of this Paragraph 4.

	 	b)	 	If the Optionee’s employment with Grantor or a subsidiary is terminated due to death or
disability (as defined in the Plan), such options may be exercised by the Optionee, or the
Optionee’s executor, administrator or other legal representative at any time within one (1)
year after such termination due to death or disability, subject to the provisions of
subparagraph (d) of this Paragraph 4.

	 	c)	 	If the Optionee ceases to be employed due to termination by Grantor or such subsidiary
for Cause (as defined in Optionee’s employment agreement or in the employer’s employment
manual or in the absence of such agreement or employment manual for such reasons as would
result in the denial of unemployment benefits under applicable law), such options will
terminate immediately upon such termination of employment.

	 	d)	 	Options may not be exercised pursuant to this Paragraph 4 except to the extent that the
Optionee was entitled to exercise the options at the time of termination of employment, and
in no event, may such options be exercised after December 19, 2010.

	 	 	In the event of a “change in control” of Grantor, Grantor’s Board of Directors may, in its
discretion, make all outstanding Options immediately exercisable notwithstanding any vesting
limitation otherwise previously imposed on such Options. Upon such acceleration, the termination
date of all such Options may be accelerated to the day following the date of the change in
control. The term “change in control” shall be deemed to have occurred if, as a result of a
tender offer, merger, consolidation, sale of assets or contested election, or any combination of
the foregoing transactions (a “Transaction”), the persons who were directors of the Company
immediately before the Transaction shall cease to constitute a majority of the Board or of any
successor to the Company; provided, however, that any Transaction shall not be deemed to be a
change in control if the Transaction causing such change shall have been approved by the
affirmative vote of at least a majority of the members of the Board in office immediately prior
to the change in control. The Board may also, in its discretion,

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	 	 	accelerate the exercisability of Options in circumstances that do not constitute a change in
control as defined herein.

	5)	 	DIVISIBILITY; NON-ASSIGNABILITY OF THE OPTIONS.

	 	a)	 	Except as otherwise provided herein, the Optionee may exercise the options herein
granted from time to time during the period of their effectiveness with respect to any
whole number of shares included therein, but in no event may the options be exercised as to
less than one hundred (100) Shares at any one time, or the remaining Shares covered by the
options be less than one hundred (100).

	 	b)	 	The Optionee may not give, grant, sell, exchange, transfer legal title, pledge, assign
or otherwise encumber or dispose of the options herein granted or any interest therein,
otherwise than by will or the laws of descent and distribution, and the options herein
granted, or any of them, shall be exercisable during the Optionee’s lifetime only by the
Optionee.

	6)	 	STOCK AS INVESTMENT. By accepting the options herein granted, the Optionee agrees
for himself, his heirs and legatees that any and all shares of Common Stock purchased
hereunder shall be acquired for investment purposes only and not for sale or distribution.
Grantor may place a “stop transfer” order with respect to such shares of Common Stock with its
transfer agent and place an appropriate restrictive legend on the stock certificate evidencing
such shares of Common Stock.

	7)	 	RESTRICTION ON ISSUANCE OF SHARES. The Grantor shall not be required to issue or
deliver any certificate for shares of Common Stock purchased upon the exercise of any options
granted hereunder unless (a) the issuance of such shares of Common Stock has been registered
with the Securities and Exchange Commission under the Securities Act of 1933, as amended, or
counsel to the grantor shall have given an opinion that such registration is not required and
(b) permission for the listing of such shares of Common Stock, if required, shall have been
given by any national securities exchange on which the shares of Common Stock of the Grantor
are, at the time of issuance, listed.

	8)	 	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

	 	a)	 	In the event of changes in the outstanding shares of Common Stock of the Grantor by
reason of stock dividends, stock splits, recapitalizations, reorganizations or
liquidations, the number and class of shares of Common Stock as to which the option may be
exercised shall be correspondingly increased to reflect an increase in the outstanding
            shares of Common Stock or decreased to reflect a decrease in the outstanding shares of
Common Stock, and the exercise price shall be inversely

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	 	 	 	adjusted by the Grantor so that the aggregate option price for all shares of Common Stock
covered after the change in outstanding shares of Common Stock shall be the same as the
aggregate option price for the shares of Common Stock remaining subject to such option
immediately prior to the change in the outstanding shares of Common Stock.

	 	b)	 	Any adjustment in the number of shares of Common Stock shall apply proportionately to
only the unexercised portion of the options granted hereunder. If fractions of a share of
Common Stock would result from any such adjustment, the adjustment shall be revised to the
next lower whole number of shares of Common Stock.

	9)	 	NO RIGHTS IN OPTION STOCK. Optionee shall have no rights as a stockholder in respect
of shares of Common Stock as to which the options granted hereunder shall not have been
exercised and payment made as herein provided.

	10)	 	EFFECT UPON EMPLOYMENT. This Agreement does not give the Optionee any right to
continued employment by the Grantor.

	11)	 	BINDING EFFECT. Except as herein otherwise expressly provided, this Agreement shall
be binding upon and inure to the benefit of the parties hereto, their legal representatives
and assigns.

	12)	 	AGREEMENT SUBJECT TO PLAN. Notwithstanding anything contained herein to the
contrary, this Agreement is subject to, and shall be construed in accordance with, the terms
of the Plan, and in the event of any inconsistency between the terms hereof and the terms of
the Plan, the terms of the Plan shall govern.

	13)	 	MISCELLANEOUS. The Agreement shall be construed under the laws of the State of
Delaware, without application to the principles of conflicts of law. Headings have been
included herein for convenience of reference only, and shall not be deemed a part of this
Agreement.

	 	 	 	 	 
	COHESANT TECHNOLOGIES INC.	 	ACCEPTED AND AGREED TO:
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	Robert Pawlak, Chief Financial Officer	 	Employee

4EX-10.1 NACCo Annual Incentive Compensation Plan

 

Exhibit 10.1

NACCO INDUSTRIES, INC.

2006 ANNUAL INCENTIVE COMPENSATION PLAN

1. Purpose of the Plan

     The purpose of the NACCO Industries, Inc. 2006 Annual Incentive Compensation Plan (the “Plan”)
is to further the profits and growth of NACCO Industries, Inc. (the “Company”) by enabling the
Company to attract and retain key employees of the Company by offering annual incentive
compensation to those key employees who will be in a position to help the Company to meet its
financial and business objectives.

2. Definitions

     (a) “Award” means cash paid to a Participant under the Plan for the Award Term in an amount
determined in accordance with Section 4. A Participant’s Award shall be equal to the sum of his
40% Award and his 60% Award, as further described in Section 4.

     (b) “Award Term” means the period from January 1, 2006 through December 31, 2006.

     (c) “60% Base Amount” means for any Participant a dollar amount, which shall be equal to the
salary midpoint for the Salary Points assigned to the Participant by the Committee for the Award
Term multiplied by 60% of the short-term incentive compensation target percent for those Salary
Points. Attached hereto as Exhibit A is a schedule listing the 60% Base Amount for each
Participant for the Award Term.

     (d) “40% Base Amount” means for any Participant a dollar amount, which shall be equal to the
salary midpoint for the Salary Points assigned to the Participant by the Committee for the Award
Term multiplied by 40% of the short-term incentive compensation target percent for those Salary
Points. Attached hereto as Exhibit B is a schedule listing the 40% Base Amount for each
Participant for the Award Term. Where applicable, the 40% Base Amount and the 60% Base Amount
shall be referred to herein collectively as the “Base Amount(s).”

     (e) “Committee” means the Compensation Committee of the Company’s Board of Directors or any
other committee appointed by the Company’s Board of Directors to administer this Plan in accordance
with Section 3, so long as any such committee consists of not less than two directors of the
Company and so long as each member of the Committee is not an employee of the Company or any of its
subsidiaries.

     (f) “Participant” means any person who is classified by the Company as a salaried employee, who in
the judgment of the Committee occupies a key position in which his efforts may significantly
contribute to the profits or growth of the Company; provided, however, that the Committee may
select any employee who is expected to contribute, or who has contributed, significantly to the
Company’s profitability to participate in the Plan and receive an Award hereunder; and further
provided, however, that following the end of the Award Term the Committee may make one or more
discretionary Awards to employees of the Company who were not previously designated as
Participants. Directors of the Company who are also employees of the Company are eligible to
participate in the Plan. Employees of the Company’s subsidiaries shall not be eligible to
participate in the Plan. The Committee shall have the power to add Participants at any later date
in the Award Term if individuals subsequently become eligible to participate in the Plan. Each
Participant shall be notified that he is eligible to receive a 60% Award and or a 40% Award for the
Award Term and the amount of his Base Amounts. If a Participant receives a change in Salary
Points, salary midpoint and/or short-term incentive compensation target percent, such change and
any resulting change in his Base Amount(s) will be reflected on an amended Exhibit A or
Exhibit B, as applicable. Unless otherwise determined by the Committee, a Participant must
be both employed by the Company and a Participant on December 31 of the Award Term, and the

 

 

amount of any Award to a Participant who was not also employed by the Company and a Participant on
the first day of the Award Term shall be not more than the pro-rated amount based upon the number
of days actually employed by the Company in the Award Term. Attached hereto as Exhibit A 
is a schedule listing the Participants eligible for a 60% Award for the Award Term and attached
hereto as Exhibit B is a schedule listing the Participants eligible for a 40% Award for the
Award Term.

     (g) “Salary Points” means the salary points assigned to a Participant by the Committee
pursuant to the Hay salary point system, or any successor salary point system adopted by the
Committee.

     (h) “Supplemental Plan” means the NACCO Industries, Inc. Supplemental Annual Incentive
Compensation Plan.

3. Administration

     This Plan shall be administered by the Committee. The Committee shall have complete authority
to interpret all provisions of this Plan consistent with law, to prescribe the form of any
instrument evidencing any Award granted or paid under this Plan, to adopt, amend and rescind
general and special rules and regulations for its administration, and to make all other
determinations necessary or advisable for the administration of this Plan. A majority of the
Committee shall constitute a quorum, and the action of members of the Committee present at any
meeting at which a quorum is present or acts unanimously approved in writing, shall be the act of
the Committee. All acts and decisions of the Committee with respect to any questions arising in
connection with the administration and interpretation of this Plan, including the severability of
any or all of the provisions hereof, shall be conclusive, final and binding upon the Company and
all present and former Participants, all other employees of the Company, and their respective
descendants, successors and assigns. No member of the Committee shall be liable for any such act
or decision made in good faith.

4. Awards

     The Committee may, from time to time and upon such conditions as it may determine, authorize
Awards for Participants, which Awards shall be not inconsistent with, and shall be subject to all
of the requirements of, the following provisions:

     (a) Performance Targets. The Committee shall determine performance target
descriptions, weightings and targets for the Award Term. The targets applicable to the 60% Awards
shall be attached hereto as Exhibit C. and the targets for the 40% Awards shall be attached
hereto as Exhibit D. The Committee shall have the power to add, delete and amend target
descriptions, weightings and targets during or after the Award Term, which shall be reflected on an
amended Exhibit C. or Exhibit D, as applicable. No performance targets used in
this Plan which are applicable to a Participant hereunder shall be used in the Supplemental Plan in
the same year for such Participant.

     (b) 60% Awards. Following the end of the Award Term, the Committee shall compare the
actual performance against the performance targets for each of the performance target descriptions
in Exhibit C which are applicable to the 60% Awards. Based thereupon, the Committee shall
determine the total payout percentage under the Plan for the 60% Awards (the “60% Payout
Percentage”). The Committee shall then determine the 60% Award for each Participant, which shall
be equal to the Participant’s 60% Base Amount, multiplied by the 60% Payout Percentage, and further
adjusted by such other factors, including an individual performance factor for each Participant, as
the Committee shall determine are appropriate; provided, however, that no 60% Award may be made to
any Participant which exceeds 150% of his 60% Base Amount.

     (c) 40% Awards. The amount of the 40% Awards shall be determined in accordance with
the provisions of Exhibit D hereto.

 

 

     (d) Payment Provisions. Promptly following the approval of the final Awards, the
Company shall pay the amount of such Awards to the Participants in cash, subject to all
withholdings and deductions pursuant to Section 5; provided, however, that (i) no Award shall be
payable to a Participant except as determined by the Committee and (ii) in no event shall the
Awards be paid later than two and one-half months after the close of the Award Term.

5. Withholding Taxes

     Any Award paid to a Participant under this Plan, shall be subject to all applicable federal,
state and local income tax, social security and other standard withholdings and deductions.

6. Amendment and Termination

     The Committee may alter or amend this Plan (including the Exhibits hereto) from time to time
or terminate it in its entirety; provided, however, that no such action shall, without the consent
of a Participant, affect the rights in an outstanding Award of such Participant.

7. General Provisions

     (a) No Right of Employment. Neither the adoption or operation of this Plan, nor any
document describing or referring to this Plan, or any part thereof, shall confer upon any employee
any right to continue in the employ of the Company, or shall in any way affect the right and power
of the Company to terminate the employment of any employee at any time with or without assigning a
reason therefor to the same extent as the Company might have done if this Plan had not been
adopted.

     (b) Governing Law. The provisions of this Plan shall be governed by and construed in
accordance with the laws of the State of Delaware.

     (c) Miscellaneous. Headings are given to the sections of this Plan solely as a
convenience to facilitate reference. Such headings, numbering and paragraphing shall not in any
case be deemed in any way material or relevant to the construction of this Plan or any provisions
thereof. The use of the masculine gender shall also include within its meaning the feminine. The
use of the singular shall also include within its meaning the plural, and vice versa.

     (d) American Jobs Creation Act. It is intended that this Plan be exempt from the
requirements of Section 409A of the Internal Revenue Code, as enacted by the American Jobs Creation
Act.

     (e) Limitation on Rights of Participants; No trust. No trust has been created by the
Company for the payment of Awards granted under this Plan; nor have the Participants been granted
any lien on any assets of the Company to secure payment of such benefits. This Plan represents
only an unfunded, unsecured promise to pay by the Company, and the Participants hereunder are
unsecured creditors of the Company.

     (f) Payment to Guardian. If an Award is payable to a minor, to a person declared
incompetent or to a person incapable of handling the disposition of his property, the Committee may
direct payment of such Award to the guardian, legal representative or person having the care and
custody of such minor, incompetent or person. The Committee may require such proof of
incompetency, minority, incapacity or guardianship as it may deem appropriate prior to the
distribution of such Award. Such distribution shall completely discharge the Company from all
liability with respect to such Award.

8. Effective Date

     This Plan shall become effective as of January 1, 2006.

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