Document:

Exhibit 10.1

                                PAXAR CORPORATION
                      Performance Share Agreement for 2005
                                    Under the
               Paxar 2000 Long-Term Performance and Incentive Plan

This Performance Share Agreement (the "Agreement"), is between Paxar Corporation
("Paxar" or the "Company") and ______________ ("you" or the "Executive").

This Agreement grants an award to you under the Paxar 2000 Long-Term Performance
and Incentive Plan (the "Plan") of Performance Shares ("shares") based on
_________ shares of Paxar Common Stock. This award enables you to receive a
future number of shares from the Company in accordance with the terms and
conditions of this Agreement and the Plan.

1.   Purpose.  These shares have been granted by the Executive  Development  and
     Compensation  Committee of Paxar's Board of Directors (the "Committee") for
     the purposes of (a) rewarding you for contributing to the Company's success
     and (b) providing you with incentives to continue to do so in the future as
     a valued member of the Paxar team.

2.   Performance Period. The period commences July 1, 2005 and ends December 31,
     2007.

3.   Performance  Goals. (A) Earnings per share (EPS), as defined in 4 a. below,
     during the  Performance  Period and (B) the average of the annual return on
     invested capital (ROIC) of the last two years of the Performance Period.

4a.  EPS. EPS is defined as adjusted  net income (see below),  divided by the
     diluted   weighted   average  shares   outstanding  for  the  period  under
     consideration as reported in the Company's financial statements.

 b.  ROIC.  ROIC is  defined  as  adjusted  net  income,  divided  by the sum of
     long-term debt, minority interest, preferred stock and total common equity,
     each as reported in the Company's financial statements.

 c.  Adjusted Net Income.  Adjusted net income is defined as reported net income
     adjusted for (i) material one time  charges  related to  restructuring  and
     purchase  accounting,  (ii) the  purchase  accounting  impact of  recording
     inventories  at fair  value,  and  (iii)  material  changes  in  accounting
     policies (e.g., amortization of goodwill, option expensing).

<PAGE>

5.       Payout Value. Payout value at end of the Performance Period will depend
         on the number of shares earned and the value of the stock as of the
         distribution date.

                              2 1/2-Year Cumulative EPS
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------

ROIC

         Straight-line interpolation will be used to determine the percentage
         of shares earned if the Company's performance falls between those
         shown above.

6.   Distribution.  Distribution  will occur  following  the  completion  of the
     Performance  Period  and  certification  of the  results  by the  Executive
     Development & Compensation  Committee.  Payment will be made in the form of
     shares.

7.   Consequences of Termination of Employment.

     (a)  In the event of the  Executive's  termination  of employment  with the
          Company  prior to the end of the  Performance  Period,  except  as set
          forth in (b),  below,  all the shares shall be forfeited and the award
          shall be cancelled as of the date of such termination.

     (b)  If the Executive's employment with the Company is terminated for death
          or disability,  or for retirement with the Committee's  approval,  the
          number of shares  covered by this  Agreement  shall be prorated as the
          Committee, in its sole discretion,  deems appropriate, and paid at the
          conclusion of the Performance Period.

<PAGE>

8.   Change in Control.  Unless otherwise  specified in an employment  contract,
     awards  will be  treated  as  defined  below in the  event  of a change  in
     control:

 a.  Upon a change in control,  the performance  share  opportunity will convert
     into time-vesting restricted shares (or its equivalent), with the number of
     shares dependent on the portion of the cycle completed as described below:

          (i)  If more  than  50% of  performance  cycle  completed,  conversion
               occurs based on performance to date

          (ii) If less  than  50% of  performance  cycle  completed,  conversion
               occurs based on target award  opportunity  without  consideration
               for performance

 b.  If the  continuing  entity is  unwilling  or unable to replace  awards with
     restricted  stock (or its equivalent) or a qualifying  termination  occurs,
     vesting will accelerate as described below:

          (i)  If  more  than  50% of  performance  cycle  is  completed  at the
               applicable   date,  the  award   accelerates  in  full  based  on
               performance to date

          (ii) If  less  than  50% of  performance  cycle  is  completed  at the
               applicable date, the target award opportunity accelerates without
               consideration for performance to date

 c.  For purposes of the above, a qualifying  termination  includes  involuntary
     termination without cause or voluntary  termination with good reason within
     18 months of the change in control date.

9.   No Right  to  Employment  or  Other  Benefits.  Nothing  contained  in this
     Agreement shall confer on the Executive any right to continue in the employ
     of the  Company  or shall  limit  the  Company's  rights to  terminate  the
     Executive at any time,  provided,  however,  that nothing in this Agreement
     shall affect any other  contractual  rights existing  between the Executive
     and the Company.  Payments,  if any, made under this  Agreement will not be
     included in the definition or calculation of  compensation  for purposes of
     determining  the  amount  of  benefits  for the  Executive  under any other
     compensation or benefit plan of the Company.
<PAGE>

10.  Miscellaneous.  The  Agreement  (a) shall be binding  upon and inure to the
     benefit of any successor of the Company;  (b) shall be governed by the laws
     of the State of New York,  and any  applicable  law of the United States of
     America;  and (c) may not be amended except in writing. The Committee shall
     have  the  right  to  alter or  amend  this  Agreement  from  time to time,
     consistent  with the  purposes  of the Plan and in order to comply with any
     applicable  law or  regulation,  without  the  consent  of  the  Executive;
     provided, however, that any change is also applicable to similar Agreements
     with  other  Paxar  Executives.  In the event of a  conflict  between  this
     Agreement and the Plan, the Plan shall govern.

                  Paxar Corporation

                  By:
                  ---------------------------

                  Title: President and CEO

                  Accepted and Agreed to:

                  --------------------------
                  ExecutiveExhibit 10.1

 

KINRO, INC.

LIPPERT COMPONENTS, INC.

 

SENIOR NOTE

 

  No. R-1

 

	
            Original Principal Amount:

	
            $10,000,000
 
	
            Original Issue Date:
 	
            April 29, 2005
 
	
            Interest Rate:
 	
            5.01% per annum
 
	
            Interest Payment Dates:

	
            January 29, April 29, July 29 and

October 29 of each year commencing on July 29, 2005
 
	
            Final Maturity Date:
 	
            April 29, 2010
 
	
            Principal Prepayment Dates and

Amounts:
 	
            5.00% of the Original Principal Amount

($500,000) on each January 29, April 29, July 29 and October 29 of each year commencing on July 29, 2005
 
	
            PPN:
 	
            49714* AA 2
 

 

 

FOR VALUE RECEIVED, the

undersigned, KINRO, INC., a corporation organized and existing under the laws of the State of Ohio

(“Kinro”), and LIPPERT COMPONENTS, INC., a corporation organized and existing under the laws of the State of Delaware (“Lippert

Components” and together with Kinro, collectively, the “Co-Issuers”), hereby jointly and severally promise to pay to THE PRUDENTIAL INSURANCE COMPANY OF

AMERICA, or registered assigns, the principal sum of TEN MILLION DOLLARS

($10,000,000), payable on the
Principal Prepayment Dates and in the amounts specified above, and on the Final Maturity Date specified above in an amount equal to the unpaid balance of

the principal hereof, with interest (computed on the basis of a 360-day year, 30-day month) (a) subject to clause (b), on the unpaid balance thereof at the

Interest Rate per annum specified above, payable on each Interest Payment Date specified above and on the Final Maturity Date specified above,

commencing with the Interest Payment Date next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) following

the occurrence and during the continuance of an Event of Default, payable on each Interest Payment Date as aforesaid (or, at the option of the registered

holder hereof, on demand) on the unpaid balance of the principal, any overdue payment of interest, any overdue payment of any Yield-Maintenance Amount,

at a rate per annum from time to time equal to the greater of (i) 7.01% or (ii) 2%
over the rate of interest publicly announced by The Bank of New York from time to time in New York City as its prime rate.

Payments of principal of, interest on and any

Yield-Maintenance Amount payable with respect to this Note are to be made at the main office of The Bank of New York in New York City or at such other

place as the holder hereof shall designate to the Co-Issuers in writing, in lawful money of the United States of America.

 

Exhibit 10.1

 

 

This Note is one of the Shelf Notes (herein called the

“Notes”) issued pursuant to a Note Purchase and Private Shelf Agreement, dated as of

February 11, 2005 (the “Agreement”), between the Co-Issuers and the Parent, on the one

hand, and the other Persons named as parties thereto, on the other, and is entitled to the benefits thereof. As provided in the Agreement, this Note is subject to

optional prepayment, in whole or from time to time in part, on the terms specified in the Agreement. Capitalized terms used and not otherwise defined herein

shall have the meanings provided in the Agreement.

This Note is secured by, and entitled to the benefits of, the

Collateral described in the Pledge Agreement. Reference is made to the Pledge Agreement for the terms and conditions governing the collateral security for

the obligations of the Co-Issuers hereunder. 

Payment of the principal of, and Yield-Maintenance Amount, if

any, and interest on this Note has been guaranteed by the Parent in accordance with the terms of the Agreement and by the Subsidiary Guarantors in

accordance with the terms of the Subsidiary Guaranty.

This Note is a registered Note and, as provided in and subject

to the terms of the Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly

executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to,

and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Co-Issuers may treat the person in whose name this

Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Co-Issuers shall not be affected by any notice

to the contrary.

In case an Event of Default, as defined in the Agreement, shall

occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable

Yield-Maintenance Amount) and with the effect provided in the Agreement.

 

Exhibit 10.1

 

 

KINRO, INC.

LIPPERT COMPONENTS, INC.

 

SENIOR NOTE

 

  No. R-2

 

	
            Original Principal Amount:

	
            $7,000,000
 
	
            Original Issue Date:
 	
            April 29, 2005
 
	
            Interest Rate:
 	
            5.01% per annum
 
	
            Interest Payment Dates:

	
            January 29, April 29, July 29 and

October 29 of each year commencing on July 29, 2005
 
	
            Final Maturity Date:
 	
            April 29, 2010
 
	
            Principal Prepayment Dates and

Amounts:
 	
            5.00% of the Original Principal Amount

($350,000) on each January 29, April 29, July 29 and October 29 of each year commencing on July 29, 2005
 
	
            PPN:
 	
            49714* AA 2
 

 

 

FOR VALUE RECEIVED, the

undersigned, KINRO, INC., a corporation organized and existing under the laws of the State of Ohio

(“Kinro”), and LIPPERT COMPONENTS, INC., a corporation organized and existing under the laws of the State of Delaware (“Lippert

Components” and together with Kinro, collectively, the “Co-Issuers”), hereby jointly and severally promise to pay to ING USA ANNUITY AND LIFE INSURANCE

COMPANY, or registered assigns, the principal sum of SEVEN MILLION DOLLARS

($7,000,000), payable on the
Principal Prepayment Dates and in the amounts specified above, and on the Final Maturity Date specified above in an amount equal to the unpaid balance of

the principal hereof, with interest (computed on the basis of a 360-day year, 30-day month) (a) subject to clause (b), on the unpaid balance thereof at the

Interest Rate per annum specified above, payable on each Interest Payment Date specified above and on the Final Maturity Date specified above,

commencing with the Interest Payment Date next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) following

the occurrence and during the continuance of an Event of Default, payable on each Interest Payment Date as aforesaid (or, at the option of the registered

holder hereof, on demand) on the unpaid balance of the principal, any overdue payment of interest, any overdue payment of any Yield-Maintenance Amount,

at a rate per annum from time to time equal to the greater of (i) 7.01% or (ii) 2%
over the rate of interest publicly announced by The Bank of New York from time to time in New York City as its prime rate.

 

Payments of principal of, interest on and any

Yield-Maintenance Amount payable with respect to this Note are to be made at the main office of The Bank of New York in New York City or at such other

place as the holder hereof shall designate to the Co-Issuers in writing, in lawful money of the United States of America.

 

Exhibit 10.1

 

 

This Note is one of the Shelf Notes (herein called the

“Notes”) issued pursuant to a Note Purchase and Private Shelf Agreement, dated as of

February 11, 2005 (the “Agreement”), between the Co-Issuers and the Parent, on the one

hand, and the other Persons named as parties thereto, on the other, and is entitled to the benefits thereof. As provided in the Agreement, this Note is subject to

optional prepayment, in whole or from time to time in part, on the terms specified in the Agreement. Capitalized terms used and not otherwise defined herein

shall have the meanings provided in the Agreement.

This Note is secured by, and entitled to the benefits of, the

Collateral described in the Pledge Agreement. Reference is made to the Pledge Agreement for the terms and conditions governing the collateral security for

the obligations of the Co-Issuers hereunder. 

Payment of the principal of, and Yield-Maintenance Amount, if

any, and interest on this Note has been guaranteed by the Parent in accordance with the terms of the Agreement and by the Subsidiary Guarantors in

accordance with the terms of the Subsidiary Guaranty.

This Note is a registered Note and, as provided in and subject

to the terms of the Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly

executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to,

and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Co-Issuers may treat the person in whose name this

Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Co-Issuers shall not be affected by any notice

to the contrary.

In case an Event of Default, as defined in the Agreement, shall

occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable

Yield-Maintenance Amount) and with the effect provided in the Agreement.

 

Exhibit 10.1

 

 

KINRO, INC.

LIPPERT COMPONENTS, INC.

 

SENIOR NOTE

 

  No. R-3

 

	
            Original Principal Amount:

	
            $3,000,000
 
	
            Original Issue Date:
 	
            April 29, 2005
 
	
            Interest Rate:
 	
            5.01% per annum
 
	
            Interest Payment Dates:

	
            January 29, April 29, July 29 and

October 29 of each year commencing on July 29, 2005
 
	
            Final Maturity Date:
 	
            April 29, 2010
 
	
            Principal Prepayment Dates and

Amounts:
 	
            5.00% of the Original Principal Amount

($150,000) on each January 29, April 29, July 29 and October 29 of each year commencing on July 29, 2005
 
	
            PPN:
 	
            49714* AA 2
 

 

 

FOR VALUE RECEIVED, the

undersigned, KINRO, INC., a corporation organized and existing under the laws of the State of Ohio

(“Kinro”), and LIPPERT COMPONENTS, INC., a corporation organized and existing under the laws of the State of Delaware (“Lippert

Components” and together with Kinro, collectively, the “Co-Issuers”), hereby jointly and severally promise to pay to HOW & CO., or registered assigns, the

principal sum of THREE MILLION DOLLARS ($3,000,000), payable on the Principal Prepayment Dates

and in
the amounts specified above, and on the Final Maturity Date specified above in an amount equal to the unpaid balance of the principal hereof, with interest

(computed on the basis of a 360-day year, 30-day month) (a) subject to clause (b), on the unpaid balance thereof at the Interest Rate per annum specified

above, payable on each Interest Payment Date specified above and on the Final Maturity Date specified above, commencing with the Interest Payment Date

next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) following the occurrence and during the continuance of

an Event of Default, payable on each Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on demand) on the unpaid balance

of the principal, any overdue payment of interest, any overdue payment of any Yield-Maintenance Amount, at a rate per annum from time to time equal to the

greater of (i) 7.01% or (ii) 2% over the rate of interest publicly
announced by The Bank of New York from time to time in New York City as its prime rate.

Payments of principal of, interest on and any

Yield-Maintenance Amount payable with respect to this Note are to be made at the main office of The Bank of New York in New York City or at such other

place as the holder hereof shall designate to the Co-Issuers in writing, in lawful money of the United States of America.

 

Exhibit 10.1

 

 

This Note is one of the Shelf Notes (herein called the

“Notes”) issued pursuant to a Note Purchase and Private Shelf Agreement, dated as of

February 11, 2005 (the “Agreement”), between the Co-Issuers and the Parent, on the one

hand, and the other Persons named as parties thereto, on the other, and is entitled to the benefits thereof. As provided in the Agreement, this Note is subject to

optional prepayment, in whole or from time to time in part, on the terms specified in the Agreement. Capitalized terms used and not otherwise defined herein

shall have the meanings provided in the Agreement.

This Note is secured by, and entitled to the benefits of, the

Collateral described in the Pledge Agreement. Reference is made to the Pledge Agreement for the terms and conditions governing the collateral security for

the obligations of the Co-Issuers hereunder. 

Payment of the principal of, and Yield-Maintenance Amount, if

any, and interest on this Note has been guaranteed by the Parent in accordance with the terms of the Agreement and by the Subsidiary Guarantors in

accordance with the terms of the Subsidiary Guaranty.

This Note is a registered Note and, as provided in and subject

to the terms of the Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly

executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to,

and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Co-Issuers may treat the person in whose name this

Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Co-Issuers shall not be affected by any notice

to the contrary.

In case an Event of Default, as defined in the Agreement, shall

occur and be continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable

Yield-Maintenance Amount) and with the effect provided in the Agreement.

 

 

Exhibit 10.1

 

 

This Note is intended to be performed in the State of New

York and shall be construed and enforced in accordance with the internal law of such State.

 

KINRO, INC.

 

By:  _________________________

Name:

Title:

 

LIPPERT COMPONENTS, INC.

 

By:  _________________________

Name:

Title:

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