Document:

a50173114_ex4c1.htm

Exhibit 4-C-1

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT (this "Amendment"), dated as of December 15, 2011, amends and modifies a certain Second Amended and Restated Credit Agreement, dated as of May 4, 2010 (the "Credit Agreement"), among OTTER TAIL CORPORATION (the "Borrower"), U.S. BANK NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the "Agent"), and the Lenders, as defined therein.  Terms not otherwise expressly defined herein shall have the meanings set forth in the Credit Agreement.

FOR VALUE RECEIVED, the Borrower, the Lenders and the Agent agree that the Credit Agreement is amended as follows.

ARTICLE I - AMENDMENT

1.1  Section 9.2(c) is hereby amended to add at the end thereof the following:

“, and the sale of DMS Health Technologies, Inc. and its subsidiaries and E.W. Wylie Corporation.”

 

ARTICLE II - REPRESENTATIONS AND WARRANTIES

To induce the Agent and the Lenders to enter into this Amendment and to make and maintain the Loans under the Credit Agreement as amended hereby, the Borrower hereby warrants and represents to the Agent and the Lenders that it is duly authorized to execute and deliver this Amendment, and to perform its obligations under the Credit Agreement as amended hereby, and that this Amendment constitutes the legal, valid and binding agreement of the Borrower, enforceable in accordance with its terms.

ARTICLE III - CONDITIONS PRECEDENT

This Amendment shall become effective on the date first set forth above, provided, however, that the effectiveness of this Amendment is subject to the satisfaction of each of the following conditions precedent:

3.1 Warranties.  Before and after giving effect to this Amendment, the representations and warranties in the Credit Agreement shall be true and correct as though made on the date hereof with respect to representations and warranties containing qualifications as to materiality, and true and correct as though made on the date hereof in all material respects with respect to representations and warranties without qualifications as to materiality, except for changes that are permitted by the terms of the Credit Agreement.  The execution by the Borrower of this Amendment shall be deemed a representation that the Borrower has complied with the foregoing condition.

 

  

  

  

 

3.2 Defaults.  Before and after giving effect to this Amendment, no Default and no Event of Default shall have occurred and be continuing under the Credit Agreement.  The execution by the Borrower of this Amendment shall be deemed a representation that the Borrower has complied with the foregoing condition.

3.3 Documents.  The Borrower, the Agent and the Required Lenders shall have executed and delivered this Amendment.

ARTICLE IV - GENERAL

4.1 Expenses.  The Borrower agrees to reimburse the Agent upon demand for all reasonable expenses (including reasonable attorneys' fees and legal expenses) incurred by the Agent in the preparation, negotiation and execution of this Amendment and any other document required to be furnished herewith.

4.2 Counterparts.  This Amendment may be executed in as many counterparts as may be deemed necessary or convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same instrument.

4.3 Severability.  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provisions in any other jurisdiction.

4.4 Governing Law.  This Amendment shall be a contract made under the laws of the State of Minnesota, which laws shall govern all the rights and duties hereunder.

4.5 Successors; Enforceability.  This Amendment shall be binding upon the Borrower, the Agent and the Lenders and their respective successors and assigns, and shall inure to the benefit of the Borrower, the Agent and the Lenders and the successors and assigns of the Agent and the Lenders.  Except as hereby amended, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the date first written above.

 

(signature pages follow)

 

  

  

  

                                                                       

	  	
OTTER TAIL CORPORATION

	  
	  
	  	
By:

	
/s/ Kevin Moug

	  
	  	
Title:

	
Chief Financial Officer

	  	  	  
	  	4334 18th Avenue South
	  	Suite 200
	  	Fargo, North Dakota 58103
	  	Attention:   Mr. Kevin G. Moug,
	  	                     Chief Financial Officer
	  	Telephone: (701) 451-3562
	  	Fax: (701) 232-4108

  

3

  

 

	  	
U.S. BANK NATIONAL ASSOCIATION,

	  	
as Agent, Lead Arranger and a Bank

	  
	  	
By:

	
/s/ Jacquelyn Ness

	 	 	 
	  	
Title:

	
Vice President

	  	  	  
	  	505 Second Avenue North
	  	Mail Code EP-ND-0630
	  	Fargo, ND 58102
	  	Attention:   Jacquelyn Ness, Vice President
	  	Telephone: (701) 280-3553
	  	Fax: (701) 280-3580

  

4

  

	  	
BANK OF AMERICA, N.A., as Co-Syndication

	  	Agent and as a Bank
	  
	  	
By:

	
/s/ A. Quinn Richardson

	 	 	 
	  	
Title:

	
Senior Vice President

	  
	  	
IL-4135-07-65

	  	135 S. LaSalle Street
	  	Chicago, IL 60603
	  	Attention:   A. Quinn Richardson
	  	                     Senior Vice President
	  	Telephone: (312) 992-2160
	  	Fax: (312) 904-6546

  

5

  

	  	
JPMORGAN CHASE BANK, N.A.,

	  	
as Co-Syndication Agent and as a Bank

	  
	  	
By:

	
/s/ Helen Davis

	 	 	 
	  	
Title:

	
Vice President

	  
	  	10 South Dearborn, 9th Floor, IL1-0090
	  	Chicago, IL 60603
	  	Attention: Helen Davis
	  	Telephone: (312) 732-1759
	  	Fax: (312) 732-1762

 

  

6

  

 

	  	
KEYBANK NATIONAL ASSOCIATION, as

	  	
Documentation Agent and as a Bank

	  
	  	
By:

	
/s/ Keven D. Smith

	 	 	 
	  	
Title:

	
Senior Vice President

	 	 	 
	  	601 108th Avenue N.E.
	  	Mail Code: WA-31-18-0512
	  	Bellevue, WA 98004
	  	Attention: Keven D. Smith
	  	Telephone: (425) 709-4579
	  	Fax: (425) 709-4565

 

  

7

  

 

	  	
BANK OF THE WEST, as a Bank

	  
	  	
By:

	
/s/ Philip P. Krump

	  
	  	
Title:

	
Vice President

	  
	  	250 Marquette Ave., Suite 575
	  	Minneapolis, MN 55401
	  	Attention: Philip P. Krump
	  	Telephone: (612) 359-3600
	  	Fax: (612) 339-6362

 

 

8a50173114_ex10n11.htm

Exhibit 10-N-11

Otter Tail Corporation

Executive Annual Incentive Plan

February 2, 2012

BACKGROUND

Otter Tail Corporation (the “Corporation”) has established the Executive Annual Incentive Plan (the “Plan”) to reward top Corporate executives (“Participants”) who are directly involved in ensuring that the Corporation reaches its performance goals.  The key objectives of the Plan are to focus the Participants’ attention on the Corporation’s operating results to ensure that the Corporation will achieve its desired results currently and in the future.

ELIGIBILITY

Participants include the executive officers of the Corporation as named by the President and Chief Executive Officer and the Compensation Committee of the Board of Directors.  Participants who terminate employment, for reasons other than death, disability, retirement or transfer to a Corporation subsidiary before the end of a calendar year will receive payments under this Plan, if any, under the terms of their Employment Agreements.  Prorated annual incentive payments will be paid to the estates of Participants who die during a year for which a Plan payment is made and to Participants who terminate employment due to disability, retirement or transfer to a subsidiary.

DEFINITIONS

Base Pay is the annualized base amount paid to Participants as of December 31 of the current plan year.  Base Pay includes amounts deferred under Section 401(k) of the Internal Revenue Code, salary reduction amounts under Section 125 of the Internal Revenue Code, and amounts deferred under any deferred compensation program sponsored by Otter Tail Corporation.  Base Pay does not include incentive payments, moving expenses, expense reimbursements, imputed income or any similar amounts.

Target Annual Incentive is the percentage of Base Pay payable if all applicable performance goals are achieved at the stated target level.  The Target Annual Incentive levels shall be established by the Compensation Committee.

Corporate Earnings per Share (EPS) is diluted earnings per share for the calendar year, as reported in the Corporation’s year-end financial reports, subject to adjustment for items deemed to be unusual or extraordinary by the Compensation Committee.  The Compensation Committee shall establish performance standards for EPS for each year.

Corporate Return on Equity (ROE) is the combined average return, as a percentage of total outstanding equity for all business operations, as reported in the Corporation’s annual year-end financial reports, subject to adjustment for items deemed to be unusual or extraordinary by the Compensation Committee.  The Compensation Committee shall establish performance standards for ROE for each year.

  

  

  

 

Safety is measured against the composite weighted average case rate for the industries of Otter Tail Corporation companies (or the applicable platform).  The Compensation Committee shall establish the performance standards for safety for each year.

Net Income is the difference between total revenues and total costs and expenses after taxes.  The Compensation Committee shall establish the performance standards for net income each year.

Return on Invested Capital (ROIC) is the percentage calculated by dividing earnings before interest, taxes, and dividends, by total capital (common and preferred stock equity plus long-term funded debt).  The Compensation Committee shall establish the performance standards for ROIC each year.

Individual Performance Goals are established for the Participant by the CEO on an annual basis, in furtherance of the Corporation’s strategic objectives.

CASH ANNUAL INCENTIVE

Payment of any cash annual incentive under the Plan is subject to achievement of the applicable Otter Tail Corporation annual performance goals.  The Participant’s Target Annual Incentive is based on competitive market practice, internal equity needs and the Corporation’s philosophy of pay for performance.

Earning the Target Annual Incentive payout is dependent upon achieving the corporate performance goals as identified for each executive officer by the Compensation Committee on an annual basis.  For financial metrics, 50% of the target amount payable is paid if minimum performance level is achieved; 100% of the target amount payable is paid if the target performance level is achieved; and 200% of the target amount payable is paid if the maximum performance level is achieved.  When applicable for the financial metrics, for performance between the minimum performance level and the target performance level, the payment amount shall increase at an even rate and similarly from the target performance level to the maximum performance level the payment amount shall increase at an even rate.  For Safety, 100% of the target amount payable is paid if the target performance level is achieved.  For individual performance goals, payment is made at the discretion of the CEO.

The treatment of extraordinary gains, write-offs and similar unusual events will be at the discretion of the Compensation Committee.  Subject to the discretion of the Compensation Committee, the safety component shall not be paid if there is a workplace fatality resulting from a workplace accident.

ADMINISTRATION

The Plan is not funded and all annual incentive payments will be paid out of the Corporation’s general assets.

Annual incentive payments will be paid in cash, through the appropriate payroll system, as soon as administratively possible after annual performance results are approved by the Board of Directors, but not later than March 15th.  The Corporation will deduct from any Plan payment and transmit to the proper taxing authority, such amount as it may be required to withhold under any applicable federal, state or other law.

 

  

2

  

The Corporation retains sole discretion, authority, and responsibility to decide all factual and legal questions under the Plan.

MISCELLANEOUS

The terms of this document shall not constitute a term of employment for any Participant, and the Corporation shall not be obligated to continue the Plan.  The terms of this document shall not give any Participant the right to be retained in employment with the Corporation.

Payments under this Plan are not considered part of base pay and, except for contributions to the Corporation’s Retirement Savings Plan, will not be considered in any Corporation or subsidiary tax-qualified Participant benefit plan.  Payments under this Plan will be considered part of Recognized Compensation under the Otter Tail Corporation Retirement Savings Plan, or its successor, and will, therefore, be included in determining the Participant’s Retirement Savings Plan contributions.

AMENDMENT AND TERMINATION

The Plan’s performance goals and payment structure will be reviewed annually and adjusted to reflect current market conditions and Corporation needs.  The Corporation, by action of the Compensation Committee of the Board of Directors, reserves the right to amend or terminate this Plan at any time.

FOR THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS:

 

 

	 
/s/ Arvid Liebe

	 	 
2/2/2012

	 
	 
Arvid Liebe, Compensation Committee Chair

	 	 
 
Date

	 
	 	 	 	 	 
	 	 	 	 	 
	 
OTTER TAIL CORPORATION

	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
By:

	 
/s/ Edward J. McIntyre

	 	 
2/2/2012

	 
	 	 
Edward J. McIntyre

	 	 
Date

	 
	 	 
Its:  President and CEO

	 	 	 

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}]]