Document:

ex_209779.htm

Exhibit 10.1

  

TWIN DISC, INCORPORATED

NON-EMPLOYEE DIRECTOR 

RESTRICTED STOCK AGREEMENT

 

 

This RESTRICTED STOCK AGREEMENT (the “Agreement”), by and between TWIN DISC, INCORPORATED (the “Company”) and _____________________ (the “Director”) is dated this ___ day of __________, 20___, to memorialize awards of restricted stock under Twin Disc, Incorporated 2020 Stock Incentive Plan for Non-Employee Directors (the “Plan”). Capitalized terms not otherwise defined in this Agreement shall have the definition ascribed to those terms by the Plan.

 

WHEREAS, the Company has adopted, and the shareholders of the Company have approved, the Plan, pursuant to which non-employee directors of the Company may receive a portion of their annual retainer in the form of restricted stock as of the day of each annual shareholders meeting, and pursuant to which non-employee directors of the Company may elect to receive all or a portion of the annual retainer they would otherwise receive in cash in the form of restricted stock; and

 

WHEREAS, the Director and the Company wish to memorialize their agreement with respect to awards of restricted stock to the Director under the Plan.

 

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements herein set forth, the parties hereto agree as follows:

 

1.          Restricted Stock Awards. Subject to the terms of the Plan, a copy of which has been provided to the Director and is incorporated herein by reference, and subject to the terms and conditions and restrictions set forth below, the Company agrees to grant to the Director the following number of shares of the common stock (“Restricted Stock”) of the Company:

 

	 	
			a.

				
			The portion of the Director’s annual retainer (exclusive of Board chair or meeting fees) that the Board determines shall be paid in the form of Restricted Stock. The number of shares of Restricted Stock shall be determined by dividing the dollar value of the portion of such annual retainer designated as payable in Restricted Stock by the Fair Market Value per share of Common Stock as of the date of the annual meeting of the Company’s shareholders, and rounding down to the nearest whole share.

			

 

 

 

 

	 	
			b.

				
			The portion of the Director’s annual retainer (exclusive of Board chair or committee fees) that would otherwise be paid in cash that the Director elects to receive in the form of Restricted Stock pursuant to a timely-filed and valid election delivered to the Company pursuant to the terms of the Plan. Any such retainer fee that the Director elects to receive in the form of Restricted Stock in lieu of cash shall be converted to a fixed number of shares of Restricted Stock by dividing the dollar value of the cash that would otherwise have been paid to the Director by the Fair Market Value per share of Common Stock as of the date such payment would have been made, and rounding down to the nearest whole share.

			

 

2.          Fair Market Value.  The Fair Market Value per share of Common Stock on the dates shares of Restricted Stock are granted shall be determined pursuant to the terms of the Plan, and shall be communicated to the Director by the Company.

 

3.          Restrictions on Transferability. Except as otherwise provided in Section 4, the shares granted shall not be subject to sale, assignment, pledge or other transfer or disposition by the Director, except by reason of an exchange or conversion of such shares because of merger, consolidation, reorganization or other corporate action. Any shares into which the granted shares may be converted or for which the granted shares may be exchanged in a merger, consolidation, reorganization or other corporate action shall be subject to the same transferability restrictions as the granted shares.

 

 

 

 

4.          Lapse of Restrictions on Transferability. The shares of Restricted Stock awarded under the Plan in accordance with Section 1(a) of this Agreement shall become freely transferable as of the date of the annual meeting of the Company’s shareholders that is subsequent to the date the Restricted Stock was awarded if the Director continues to serve on the Board of Directors of the Company up to such meeting, and the shares of Restricted Stock awarded under the Plan in accordance with Section 1(b) of this Agreement shall become freely transferable on the first anniversary of the date that the cash would have otherwise been paid to the Director; provided, however, that all Restricted Stock held by the Director shall become freely transferable upon the death or disability of the Director, as provided in Section 9.3 of the Plan.

 

5.          Forfeitability. Notwithstanding Section 4 of this Agreement:

 

	 	
			a.

				
			If the Director’s service as a member of the Board ends prior to the date the transfer restrictions lapse;

			

 

	 	
			b.

				
			If the Director is recommended by the Company to be re-elected to the Board and fails to be re-elected by the shareholders of the Company to the Board in that election; or

			

 

	 	
			c.

				
			If the Director is prohibited from serving on the Board by any court of competent jurisdiction or other government authority, or in the discretion of the Board is no longer competent to serve on the Board due to the Director’s violation of state or federal securities law or other rule of the NASDAQ Stock Market (or such other listing standards then applicable to the Company),

			

 

 

 

 

then any Restricted Stock held by the Director that remains subject to the transfer restrictions set forth in Section 3 shall be immediately forfeited.

 

6.          Rights of Shareholder. Except for the restrictions on transfer and risk of forfeiture, the Director shall have, with respect to shares of Restricted Stock, all of the rights of a shareholder of Common Stock, including, if applicable, the right to vote the shares and the right to receive any cash or stock dividends. Notwithstanding the foregoing, cash or stock dividends on shares of Restricted Stock shall be automatically deferred, and shall be paid to the Director only if and to the extent the underlying shares of Restricted Stock vest. Cash or stock dividends payable with respect to shares of Restricted Stock that are forfeited shall also be forfeited. Cash or stock dividends payable under this paragraph shall be paid within 30 days after the restrictions on the shares of Restricted Stock to which such dividends relate lapse. Cash dividends shall be paid with an appropriate rate of interest, as determined by the Board.

 

7.          Section 83(b) Election. The Director acknowledges that: (1) the stock granted pursuant to the Plan and this Agreement is restricted property for purposes of Section 83(b) of the Internal Revenue Code and that the shares granted are subject to a substantial risk of forfeiture as therein defined until the year in which such shares are no longer subject to a substantial risk of forfeiture; and (2) the Director may make an election to include the fair market value of the shares in income in the year of the grant in which case no income is included in the year the shares are no longer subject to a substantial risk of forfeiture. Responsibility for determining whether or not to make such an election and compliance with the necessary requirements is the sole responsibility of the Director.

 

 

 

 

8.          Restrictions on Transfer. The Director agrees for himself or herself, and his or her heirs, legatees and legal representatives, with respect to all shares granted hereunder (or any securities issued in lieu of or in substitution or exchange therefore) that such shares will not be sold or transferred except pursuant to an effective registration statement under the Securities Act of 1933, as amended, or pursuant to an applicable exemption from registration (such as SEC Rule 144). The Director represents that such shares are being acquired for the Director’s own account and for purposes of investment, and not with a view to, or for sale in connection with, the distribution of such shares, nor with any present intention of distributing such shares.

 

 

	 	
			TWIN DISC, INCORPORATED

			 

			By:     ____________________________________

			Its:      ____________________________________

			 

			DIRECTOR:

			 

			__________________________________________Document

Exhibit 10.1

			
	TRANSLATION OF A LETTER WRITTEN IN FRENCH;
In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

Monsieur Gaël Touya 
[Address]
France

Louveciennes, July 31, 2020

Strictly personal and confidential

Dear Gaël, 
    
In view of your responsibilities as President of the Pharma Segment and as a member of the Executive Committee of the Aptar Group, and in order to align your situation with that of the other members of the Group Executive Committee while taking into account the specificity of French law, we are pleased to grant you additional guarantees intended to compensate you for the prejudice that would result for you from the loss of your employment, in particular in the event of a change in control of the Aptar Group.

It is understood that the allowances referred to in A and B above are not cumulative.

A - Dismissal following a change in control

The definition of "Change in Control", as usually defined by the Aptar Group as a result of the listing of its ultimate shareholder Aptargroup, Inc. on the New York Stock Exchange, is set out in the Appendix.

In the event that, within two years following a change of control as defined in the appendix below, you are dismissed by the Company for any reason whatsoever, except in cases of serious or gross misconduct and dismissal for unfitness, Aptargroup UK Holdings Ltd-French Branch (the “Company”) undertakes to pay you compensation (called “Change in Control Compensation”) to offset the loss resulting for you from this termination. This Change in Control Indemnity will be in addition to the indemnities to which you may be entitled, as the case may be, in respect of such termination (legal or contractual termination indemnity). Its gross amount will be equal to:

–Six (6) months of the average gross salary that you will have received during the 12 calendar months preceding the notification of your dismissal, it being specified that the average salary will include, on the one hand, your fixed gross salary actually received during the 12 months preceding the notification of your dismissal and, on the other hand, your average gross annual bonus ("short term incentive") received during the last three years preceding your dismissal.

												
	Aptargroup UK Holdings Ltd.		Aptargroup UK Holdings Ltd. – Succursale française	
	5 Bruntcliffe Avenue	TEL + 44 113 220 3206 	36-38 rue de la Princesse, CS 42430	Téléphone +33 (0)1 3087 1980
	Leeds 27 Industrial Estate	FAX + 44 113 220 3217 	78431 Louveciennes Cedex, France	Télécopie +33 (0)1 3081 0909
	Leeds, Yorkshire LS27 0LL, United Kingdom		SIRET 807 468 921 00026 RCS Versailles 	
			APE 7010Z – TVA FR 70 807 468 921	

aptar.com

    

In addition to this Change in Control Indemnity, you will receive the financial compensation for your non-competition clause and your notice period as provided for in your employment contract.

B - Dismissal not resulting from a change in control

In the event that you are dismissed by the Company for any reason whatsoever, except in cases of serious or gross misconduct and dismissal for unfitness, the Company undertakes to pay you compensation (called “Additional Dismissal Compensation”) to offset the loss resulting for you from this termination. This additional termination indemnity will be in addition to the indemnities to which you may be entitled, as the case may be, in respect of such termination (legal or contractual termination indemnity). Its gross amount will be equal to:

–Six (6) months of the average gross salary that you will have received during the 12 calendar months prior to the notification of your dismissal, the average salary including, on the one hand, the gross fixed salary that you will have actually received during the 12 months prior to the notification of your dismissal and, on the other hand, the average gross annual bonus ("short term incentive") received during the last three years prior to your dismissal.

In addition to this additional severance pay, you will receive the financial compensation for your non-competition clause and your notice period as provided for in your employment contract.

The Change in Control Indemnity or the Additional Dismissal Compensation that will eventually be due to you as the case might be at the time of your dismissal will be paid in the form of a settlement indemnity in return for the signature of a settlement agreement confirming your waiver of all proceedings and actions against the Company and all the companies of the Aptar Group concerning the conclusion, performance and termination of your employment contract.

This undertaking supplements the provisions of your current employment contract and has neither the object nor the effect of modifying its terms.

Best regards.

						
	Anne Vergnaud	Gaël Touya

	Legal representative
	(“Read and approved, good for agreement”)

CC: Stephan Tanda and Shiela Vinczeller
Appendix: definition of Change in Control
												
	Aptargroup UK Holdings Ltd.		Aptargroup UK Holdings Ltd. – Succursale française	
	5 Bruntcliffe Avenue	TEL + 44 113 220 3206	36-38 rue de la Princesse, CS 42430	Téléphone +33 (0)1 3087 1980
	Leeds 27 Industrial Estate	FAX + 44 113 220 3217	78431 Louveciennes Cedex, France	Télécopie +33 (0)1 3081 0909
	Leeds, Yorkshire LS27 0LL, United Kingdom		SIRET 807 468 921 00026 RCS Versailles	
			APE 7010Z – TVA FR 70 807 468 921	

aptar.com

    

Annex: Definition of Change in Control

						
	Change in Control	For purposes of this side letter, “Change in Control” shall mean
		1.the acquisition by any individual, entity or group (a “Person”), including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of more than 50% of either (i) the then outstanding shares of common stock of Aptargroup, Inc. (the “Outstanding Aptar Common Stock”) or (ii) the combined voting power of the then outstanding securities of Aptargroup, Inc. entitled to vote generally in the election of directors (the “Outstanding Aptar Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from Aptargroup, Inc. (excluding any acquisition resulting from the exercise of a conversion or exchange privilege in respect of outstanding convertible or exchangeable securities unless such outstanding convertible or exchangeable securities were acquired directly from Aptargroup, Inc.), (B) any acquisition by Aptargroup, Inc., (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by Aptargroup, Inc. or any corporation controlled by Aptargroup, Inc. or (D) any acquisition by any corporation pursuant to a reorganization, merger or consolidation involving Aptargroup, Inc., if, immediately after such reorganization, merger or consolidation, each of the conditions described in clauses (i), (ii) and (iii) of Article 3 shall be satisfied; and provided further that, for purposes of clause (B), if any Person (other than Aptargroup, Inc. or any employee benefit plan (or related trust) sponsored or maintained by Aptargroup, Inc. or any corporation controlled by Aptargroup, Inc.) shall become the beneficial owner of more than 50% of the Outstanding Aptar Common Stock or more than 50% of the Outstanding Aptar Voting Securities by reason of an acquisition by Aptargroup, Inc. and such Person shall, after such acquisition by Aptargroup, Inc., become the beneficial owner of any additional shares of the Outstanding Aptar Common Stock or any additional Outstanding Aptar Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control;

		2.individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who becomes a director of Aptargroup, Inc. subsequent to the date hereof whose election, or nomination for election by Aptargroup, Inc.’s stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed to have been a member of the Incumbent Board; and provided further, that no individual who was initially elected as a director of Aptargroup, Inc. as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall be deemed to have been a member of the Incumbent Board;

												
	Aptargroup UK Holdings Ltd.		Aptargroup UK Holdings Ltd. – Succursale française	
	5 Bruntcliffe Avenue	TEL + 44 113 220 3206	36-38 rue de la Princesse, CS 42430	Téléphone +33 (0)1 3087 1980
	Leeds 27 Industrial Estate	FAX + 44 113 220 3217	78431 Louveciennes Cedex, France	Télécopie +33 (0)1 3081 0909
	Leeds, Yorkshire LS27 0LL, United Kingdom		SIRET 807 468 921 00026 RCS Versailles	
			APE 7010Z – TVA FR 70 807 468 921	

aptar.com

    

						
		3.consummation of a reorganization, merger or consolidation unless, in any such case, immediately after such reorganization, merger or consolidation, (i) 50% or more of the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation and 50% or more of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals or entities who were the beneficial owners, respectively, of the Outstanding Aptar Common Stock and the Outstanding Aptar Voting Securities immediately prior to such reorganization, merger or consolidation and in substantially the same proportions relative to each other as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Aptar Common Stock and the Outstanding Aptar Voting Securities, as the case may be, (ii) no Person (other than Aptargroup, Inc., any employee benefit plan (or related trust) sponsored or maintained by Aptargroup, Inc. or the corporation resulting from such reorganization, merger or consolidation (or any corporation controlled by Aptargroup, Inc.) and any Person which beneficially owned, immediately prior to such reorganization, merger or consolidation, directly or indirectly, more than 50% of the Outstanding Aptar Common Stock or the Outstanding Aptar Voting Securities, as the case may be) beneficially owns, directly or indirectly, more than 50% of the then outstanding shares of common stock of such corporation or more than 50% of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such reorganization, merger or consolidation; or

		4.consummation of (i) a plan of complete liquidation or dissolution of Aptargroup, Inc. or (ii) the sale or other disposition of all or substantially all of the assets of Aptargroup, Inc. other than to a corporation with respect to which, immediately after such sale or other disposition, (A) 50% or more of the then outstanding shares of common stock thereof and 50% or more of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Aptar Common Stock and the Outstanding Aptar Voting Securities immediately prior to such sale or other disposition and in substantially the same proportions relative to each other as their ownership, immediately prior to such sale or other disposition, of the Outstanding Aptar Common Stock and the Outstanding Aptar Voting Securities, as the case may be, (B) no Person (other than Aptargroup, Inc., any employee benefit plan (or related trust) sponsored or maintained by Aptargroup, Inc. or such corporation (or any corporation controlled by Aptargroup, Inc.) and any Person which beneficially owned, immediately prior to such sale or other disposition, directly or indirectly, more than 50% of the Outstanding Aptar Common Stock or the Outstanding Aptar Voting Securities, as the case may be) beneficially owns, directly or indirectly, more than 50% of the then outstanding shares of common stock thereof or more than 50% of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors thereof were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition.

												
	Aptargroup UK Holdings Ltd.		Aptargroup UK Holdings Ltd. – Succursale française	
	5 Bruntcliffe Avenue	TEL + 44 113 220 3206	36-38 rue de la Princesse, CS 42430	Téléphone +33 (0)1 3087 1980
	Leeds 27 Industrial Estate	FAX + 44 113 220 3217	78431 Louveciennes Cedex, France	Télécopie +33 (0)1 3081 0909
	Leeds, Yorkshire LS27 0LL, United Kingdom		SIRET 807 468 921 00026 RCS Versailles	
			APE 7010Z – TVA FR 70 807 468 921	

aptar.com

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