Document:

Non-Qualified Performance-Based Stock Option Agreement

 Exhibit 10.3 
 NON-QUALIFIED PERFORMANCE-BASED 
 STOCK OPTION AGREEMENT 

FOR COMPANY EMPLOYEES 
 UNDER NORTHEAST BANCORP 
 2010 STOCK OPTION AND INCENTIVE PLAN

  

					
	Name of Optionee:	  	 Matthew Botein
	  	
			
	Type of Stock:	  	 Non-Voting Common Stock
	  	
			
	No. of Option Shares:	  	 40,503
	  	
			
	Option Exercise Price per Share:	  	 $14.52
	  	
			
	Grant Date:	  	 March 24, 2011
	  	
			
	Vesting Commencement Date:	  	 December 29, 2010
	  	
			
	Expiration Date:	  	 December 29, 2020
	  	

 Pursuant to the Northeast Bancorp 2010 Stock Option and Incentive Plan as amended through the date
hereof (the “Plan”), Northeast Bancorp (the “Company”) hereby grants to the Optionee named above, who is a director of or an adviser to the Company, an option (the “Stock Option”) to purchase on or prior to the
Expiration Date specified above all or part of the number of shares of Non-Voting Common Stock of the Company specified above at the Option Exercise Price per Share specified above subject to the terms and conditions set forth herein and in the
Plan. This Stock Option is not intended to be an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 

1. Exercisability Schedule. This Stock Option shall be deemed vested in full as of the Grant Date; however, no portion of this
Stock Option may be exercised until such portion shall have become exercisable. Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule
hereunder, this Stock Option shall be exercisable upon satisfaction of the performance goals set forth below. 
 (a) Performance Conditions. This Stock Option shall be exercisable with respect to the number of Option Shares set forth below upon the date as of which both of the following conditions have been
satisfied: (i) during the Time Period set forth below, the closing price of the Stock exceeds the applicable Hurdle Price for at least 50 of the previous 75 consecutive trading days (such 50th day, the “Determination Date”) and (ii) the most
recent annual assessment completed prior to the applicable Determination Date (or, if the most recent annual assessment completed prior to such Determination Date fails to satisfy the following condition, the first annual assessment completed after
the Determination Date that satisfies such condition) of the Company’s internal controls, conducted using criteria established in Internal 

 
Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, concluded that the Company maintained effective internal control over
financial reporting, and, if applicable, the attestation report of the Company’s registered public accounting firm regarding internal controls over financial reporting verified such conclusion. 

 

							
	 Incremental
No.
of
Option
Shares
	  	 Performance Conditions
	 
	  	 Time Period
	  	Hurdle Price	 
	13,501	  	Prior to the 5th anniversary of the Grant Date	  	$	27.86	  
		  	Between the 5th and 6th
anniversaries of the Grant Date	  	$	31.34	  
		  	Between the 6th and 7th
anniversaries of the Grant Date	  	$	34.83	  
	13,501	  	Prior to the 6th anniversary of the Grant Date	  	$	31.34	  
		  	Between the 6th and 7th
anniversaries of the Grant Date	  	$	34.83	  
	13,501	  	Prior to the 7th anniversary of the Grant Date	  	$	34.83	  

 Once exercisable,
this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan. 

(b) Termination of Unexercisable Stock Option. Any portion of this Stock Option that is not exercisable as of the seventh
anniversary of the Grant Date shall terminate immediately and be of no further force or effect. 
 (c) Sale Event. Upon a
Sale Event, this Stock Option shall become exercisable in accordance with the exercisability schedule set forth above to the extent the Sale Price (as defined in Section 1 of the Plan) exceeds the applicable Hurdle Price. Notwithstanding the
foregoing, in the event the Sale Event is a stock transaction such that the then-existing investors of the Company have a continuing interest in the acquiring company, the parties will use good faith efforts to provide the same economics to the
Optionee with respect to this Stock Option. 
 2. Manner of Exercise. 

(a) The Optionee may exercise this Stock Option, to the extent exercisable, only in the following manner: from time to time on or prior to
the Expiration Date of this Stock Option, the Optionee may give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice. This notice shall specify the number of
Option Shares to be purchased. 

  
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 Payment of the purchase price for the Option Shares may be made by one or more of the
following methods: (i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the
open market or that are beneficially owned by the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee
delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that
in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as
a condition of such payment procedure; (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value
that does not exceed the aggregate exercise price; or (v) a combination of (i), (ii), (iii) and (iv) above. Payment instruments will be received subject to collection. 

The transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon
(i) the Company’s receipt from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of
laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise of Stock Options under the Plan and any
subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations. In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares
of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested to. 
 (b) The
shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon compliance to the satisfaction of the Administrator with all requirements under applicable
laws or regulations in connection with such issuance and with the requirements hereof and of the Plan. The determination of the Administrator as to such compliance shall be final and binding on the Optionee. The Optionee shall not be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent
shall have transferred the shares to the Optionee, and the Optionee’s name shall have been entered as the stockholder of record on the books of the Company. Thereupon, the Optionee shall have full voting, dividend and other ownership rights
with respect to such shares of Stock. 
 (c) The minimum number of shares with respect to which this Stock Option may be
exercised at any one time shall be 100 shares, unless the number of shares with respect to which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time. 

  
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 (d) Notwithstanding any other provision hereof or of the Plan, no portion of this Stock
Option shall be exercisable after the Expiration Date hereof. 
 3. Restriction on Sale of Issued Shares. None of the
shares acquired upon exercise of this Stock Option may be sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of or encumbered, until the earlier of (i) three years following the exercisability of this
Stock Option with respect to such shares or (ii) the sale of at least 50% of the Stock of the Company to an unrelated person or entity in a single transaction. Notwithstanding the foregoing, nothing contained in this Section 3 shall
prohibit the Optionee from selling and/or otherwise disposing of the shares resulting from exercise of the Stock Option in order to satisfy the payment of the aggregate exercise price or any Federal, state or local taxes incurred on account of the
exercise of the Stock Option. 
 4. Incorporation of Plan. Notwithstanding anything herein to the contrary, this Stock
Option shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the meaning specified in the
Plan, unless a different meaning is specified herein. 
 5. Transferability. This Agreement is personal to the Optionee,
is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution. This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and
thereafter, only by the Optionee’s legal representative or legatee. 
 6. No Obligation to Continue as a Director or
Adviser. Neither the Plan nor this Stock Option confers upon the Grantee any rights with respect to continuance as a director or adviser to the Company. 
 7. Notices. Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Optionee at the address on file with the Company
or, in either case, at such other address as one party may subsequently furnish to the other party in writing. 

  
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	NORTHEAST BANCORP
		
	By:	 	 /s/ Robert Glauber

		 	Name:	 	Robert Glauber
		 	Title:	 	Chairman of the Board of Directors

 The foregoing
Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned. 
  

							
	Dated:	 	March 24, 2011	 		 	 /s/ Matthew Botein

		 		 		 	Optionee’s Signature
				
		 		 		 	Optionee’s name and address:
				
		 		 		 	  

				
		 		 		 	  

				
		 		 		 	  

 Signature Page to Non-Qualified Performance-Based Stock Option Agreement 

  
 5Amendment to Employment Agreement between the Company and Richard Lundin

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT AMENDMENT 
 This Employment Agreement Amendment (this
“Amendment”) between Da-Lite Screen Company, Inc., an Indiana corporation (the “Company”), and Richard E. Lundin (the “Executive”) is dated as of March 29, 2011. 

WHEREAS, the Company and the Executive desire to amend certain provisions of the Executive’s Employment Agreement dated as of
April 5, 2004, as thereafter amended (the “Employment Agreement”). 
 NOW, THEREFORE, in consideration of the
premises and the mutual agreements contained herein, the Company and the Executive hereby agree as follows: 
 1. All of the
provisions of the Employment Agreement not amended hereby shall remain in full force and effect. Unless otherwise indicated, capitalized terms shall have the same meaning as referenced in the Employment Agreement. 

2. The Executive acknowledges and agrees that entering into this Amendment and the modifications to the Employment Agreement as a result
thereof do not constitute Good Reason and do not entitle the Executive to terminate employment for Good Reason. 
 3. The
Company shall pay the Executive a lump sum amount of $750,000 (“Closing Payment”), payable concurrently with the closing of the transactions contemplated by that certain Agreement and Plan of Merger, dated as of March 30, 2011, by and
among Milestone AV Technologies LLC, a Delaware limited liability company, Milestone Holding Corporation, a Delaware corporation (“Buyer”), DLI Acquisition Corporation, an Indiana corporation and a wholly owned subsidiary of Buyer, the
Company, and the Shareholders Representative (the “Merger”). If the transactions contemplated by the Merger are not consummated by the parties and a closing thereunder does not occur, then this Amendment will become null and void without
any further action by the Company or the Executive and the Executive will not be entitled to receive the Closing Payment. 
 4.
In consideration for the Closing Payment, the Executive has entered into this Amendment and agrees that if the Employment Period is not extended after the one (1) year anniversary of the closing of the Merger, for a one (1) year period
thereafter, the Executive will be available to the Company for general business consulting with compensation for such consulting services at a reasonable rate, as determined by mutual agreement between the Company and the Executive. 

5. This Amendment, and the amendments to the Employment Agreement set forth below, shall not go into effect or be binding on the Company
or the Executive until the closing of the Merger. 

 6. Section 1 of the Employment Agreement is amended by deleting the second sentence
thereof and replacing it with the following: 
 “The term of employment of the Executive by the Company pursuant to this
Agreement (the “Employment Period”) shall commence on the date that the Merger (as defined below) is consummated (the “Closing Date”) and end on the first (1st) anniversary of the Closing Date, unless earlier terminated
pursuant to Section 4 of this Agreement. During the Employment Period, the parties will determine whether it is mutually beneficial to negotiate a new longer-term employment agreement. The term “Merger” shall mean the transactions
contemplated by that certain Agreement and Plan of Merger, dated as of  
 March 30, 2011, by and among Milestone AV
Technologies LLC, a Delaware limited liability company, Milestone Holding Corporation, a Delaware corporation (“Buyer”), DLI Acquisition Corporation, an Indiana corporation and a wholly owned subsidiary of Buyer, the Company, and the
Shareholders Representative (the “Merger”).” 
 7. Section 3(a) of the Employment Agreement is amended by
deleting the first sentence thereof and replacing it with the following: 
 “During the Employment Period, the Company shall
pay to the Executive cash compensation (“Salary”) at the rate of $450,000 per annum, payable in accordance with the Company’s executive payroll policy.” 
 8. The first sentence of Section 2 of the Employment Agreement shall be amended and restated by deleting the first sentence in its entirety and replacing it with the following: “The Company
shall employ the Executive during the Employment Period as its President.” 
 9. The Employment Agreement is amended by
adding the following new Section 19 as a part thereof: 
 “19. Code Section 409A. It
is intended that this Agreement will comply with Section 409A of the Internal Revenue Code (the “Code”), and any regulations and guidelines issued thereunder, to the extent this Agreement is subject thereto, and this Agreement shall
be interpreted on a basis consistent with such intent.” 
 IN WITNESS WHEREOF the parties have executed this Amendment as
of the date above written. 
  

									
	Da-Lite Screen Company, Inc.	  		  	Executive	  	
					
	By:	 	 /s/ Jerry C. Young
	  		  	 /s/ Richard E. Lundin
	  	

									
					
	Name:	 	 Jerry C. Young
	  		  	Richard E. Lundin	  	

									
					
	Title:	 	 Vice President – Finance and Chief Financial Officer

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