Document:

Exhibit 10.1

 

 

FOURTH AMENDMENT TO THE

PERCEPTRON, INC.

FIRST AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

 

 

Pursuant to the amendment provisions in Section 10.7 of the Perceptron,
Inc. First Amended and Restated 2004 Stock Incentive Plan (“Plan”) and the approval of the Board of Directors of Perceptron,
Inc. (“Company”), the Plan is hereby amended as set forth below:

 

1.          The following Section 9.2 (c) shall be added to the Plan, effective immediately,:

 

(c) No Change in Control shall be deemed to have occurred or otherwise trigger
the provisions of this Section 9.2 or any provision in a Participant’s Agreement until the consummation of the transaction
or acquisition of securities of the Corporation resulting in such Change in Control.

 

THIS FOURTH AMENDMENT is hereby adopted as of September 25, 2017.

 

 

	 	PERCEPTRON, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ David L. Watza	 
	 	 	David L. Watza,	 
	 	 	President, Chief Executive Officer 
	 	 	  and Chief Financial Officer

 

 

 

BOARD OF DIRECTORS APPROVAL: September 25, 2017

SHAREHOLDER APPROVAL: Not requiredExhibit 10.2

 

FIFTH AMENDMENT TO THE

PERCEPTRON, INC.

FIRST AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

 

 

Pursuant to the amendment provisions in Section 10.7 of the Perceptron,
Inc. First Amended and Restated 2004 Stock Incentive Plan (“Plan”) and the approval of the Board of Directors of Perceptron,
Inc. (“Company”), the Plan is hereby amended as set forth below:

 

1.                 
Subject to approval of the shareholders of the Company, Section 1.6 of the Plan (Stock) shall be amended and restated in its entirety
to read as follows:

 

1.6 Stock. The Corporation has reserved
2,600,000 shares of Common Stock for issuance in conjunction with all Options and other stock-based awards to be granted under
the Plan. All of the 2,600,000 shares of Common Stock so reserved may be granted as ISOs. Each share of Common Stock subject to
any Award shall be counted against the reserved share limit as one share. Shares of Common Stock subject to any unexercised portion
of any Award that is terminated, cancelled, forfeited or expired or is settled only in cash may again be subjected to grants and
awards under the Plan. For the avoidance of doubt, the following shares of Common Stock, however, may not again be made available
for issuance as Awards under the Plan: (i) the full number of shares not issued or delivered as a result of the net settlement
of an outstanding Option or Stock Appreciation Right, regardless of the number of shares actually used to make such settlement;
(ii) shares used to pay the exercise price or for settlement of any Award; (iii) shares used to satisfy withholding taxes related
to the exercise, vesting or settlement of any Award; (iv) shares repurchased on the open market with the proceeds of the option
exercise price; and (v) shares granted pursuant to a settled Stock Appreciation Right if such Stock Appreciation Right may be settled
in shares of Common Stock, whether settled in cash or shares. All provisions in this Section 1.6 shall be adjusted, as applicable,
in accordance with Article VIII.

 

2.       Subject
to approval of the shareholders of the Company, the following Section 1.7 (Dividends and Dividend Equivalents) should be added
to the Plan:

 

1.7 Dividends and Dividend Equivalents.
No dividends or Dividend Equivalents will be paid on Options or Stock Appreciation Rights. Dividends and Dividend Equivalents
paid on Restricted Stock, Restricted Stock Units, Performance Shares, Performance Share Award Units and Deferred Stock Units shall
be treated as set forth in Sections 4.8 (Dividends and Other Distributions), 5.2(i), and 7.2(b) and shall be subject to the same
terms and conditions and shall vest in the same manner as the Award on which they were paid.

 

3.       Subject
to approval of the shareholders of the Company, Section 4.8 of the Plan (Dividends and Other Distributions) shall be amended and
restated in its entirety to read as follows:

 

    	 	1	 

     

    

 

4.8 Dividends and Other Distributions.

 

(a)       Except
as otherwise provided in Section 4.9 or in the Participant’s Agreement, (i) with respect to Restricted Stock grants
made prior to September 25, 2017, during the Restriction Period, a Participant shall be entitled to receive all dividends and other
distributions paid with respect to shares of Common Stock subject to a Restricted Stock grant, (ii) with respect to Restricted
Stock grants made on or after September 25, 2017, during the Restriction Period, all cash dividends and other distributions paid
on Restricted Stock shall be paid in cash or the amount or value thereof automatically reinvested in additional Restricted Stock,
as the Committee shall determine, consistent with Code Section 409A; provided that, dividends or other distributions with respect
to Restricted Stock or additional Restricted Stock in which they are reinvested shall be subject to the same terms and conditions
and shall vest in the same manner as the Restricted Stock on which they were paid, and (iii) if any dividends or distributions
are paid in shares of Common Stock during the Restriction Period, the dividend or other distribution shares shall be subject to
the same terms and conditions and shall vest in the same manner as the Restricted Stock on which they were paid.

 

(b)       The
Committee, in its discretion, may provide in the Agreement evidencing any Restricted Stock Unit that the Participant shall be entitled
to receive Dividend Equivalents with respect to the payment of cash dividends on Common Stock having a record date prior to date
on which Restricted Stock Units held by such Participant are vested or settled. Such Dividend Equivalents, if any, shall be paid
by crediting the Participant with additional whole Restricted Stock Units as of the date of payment of such cash dividends on Common
Stock. The number of additional Restricted Stock Units (rounded to the nearest whole number) to be so credited shall be determined
by dividing (a) the amount of cash dividends paid on such date with respect to the number of shares of Common Stock represented
by the Restricted Stock Units previously credited to the Participant by (b) the Fair Market Value per share of Common Stock on
such date. Such additional Restricted Stock Units shall be subject to the same terms and conditions and shall be vested or settled
in the same manner and at the same time (or as soon thereafter as practicable) as the Restricted Stock Units originally subject
to the Restricted Stock Unit. In the event of a dividend or distribution paid in shares of Common Stock or any other adjustment
made upon a change in the capital structure of the Corporation as described in Section 9.1, appropriate adjustments shall be made
in the Participant's Restricted Stock Unit so that it represents the right to receive upon vesting or settlement any and all new,
substituted or additional securities or other property (other than normal cash dividends) to which the Participant would be entitled
by reason of the shares of Common Stock issuable upon vesting or settlement of the Restricted Stock Unit, and all such new, substituted
or additional securities or other property shall be immediately subject to the same restrictions as are applicable to the Restricted
Stock Unit.

 

    	 	2	 

     

    

 

THIS FIFTH AMENDMENT is hereby adopted as of September 25, 2017.

 

	 	PERCEPTRON, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ David L. Watza	 
	 	 	David L. Watza,	 
	 	 	President, Chief Executive Officer 
	 	 	  and Chief Financial Officer

 

 

BOARD OF DIRECTORS APPROVAL: September 25, 2017

SHAREHOLDER APPROVAL: ___________________, 2017

 

 

 

 

 

 

 

 

 

 

 

 

3Exhibit 10.3

 

 

SUMMARY OF FISCAL EXECUTIVE
SHORT TERM INCENTIVE PLAN AND FISCAL 2018 EXECUTIVE LONG TERM INCENTIVE PLAN

 

Fiscal 2018 Executive Short Term Incentive Plan

 

Under the Fiscal 2018 Executive Short Term Incentive
plan (the “Executive Short Term Incentive Plan”), the Company’s key executives, including the named executive
officers, can earn annual incentive cash compensation based upon the Company’s achievement of specified results with respect
to corporate revenue and operating income targets for Fiscal 2018.

 

The targets and weightings relevant to the cash
incentive determination for Fiscal 2018 under the Executive Short Term Incentive Plan will be as follows:

 

	Fiscal 2018 Financial Targets	Weighting
	Company Revenue	50%
	Company Operating Income Before Incentive Compensation	50%

 

The Company’s Operating Income Before
Incentive Compensation must be at least 75% of the target level under the Company’s Fiscal 2018 Operating Budget for any
annual incentive cash compensation payout to be made under the Executive Short Term Incentive Plan.

 

The financial targets include progressive threshold
(90% of target for Company Revenue and 75% of target for Company Operating Income Before Incentive Compensation), target and maximum
(110% of target for Company Revenue and 150% of target for Company Operating Income Before Incentive Compensation) performance
level incentive objectives. The Committee may adjust the calculation of the Company Revenue target and the Company Operating Income
Before Incentive Compensation target to account for unforeseen, unanticipated, unusual and/or non-ordinary course events and issues.

 

If the threshold financial performance objectives
are met, participants will receive a cash incentive payment under the Executive Short Term Incentive Plan, with the specific amount
that such participant receives equal to their predetermined participation level (55% for our President and Chief Executive Officer
and 35% for the other officers) stated as a percentage of base salary multiplied by the Percentage of the Bonus Target Earned.
The Percentage of the Bonus Target Earned is calculated as follows: (i) Percentage of Company Revenue Bonus Target Earned multiplied
by 0.50 plus (ii) Percentage of Company Operating Income Before Incentive Compensation Bonus Target multiplied by 0.50. The Percentage
of Company Revenue Bonus Target earned and Percentage of Company Operating Income Before Incentive Compensation Bonus Target Earned
will be determined as follows:

 

     

    	Page 2 of 4

    

 

	 	Company Revenue

(50% Weighting)	Company Operating Income 

(50% Weighting)
	 	Performance 

Level	
        % of Bonus

        Target Earned
	Performance 

Level	
        % of Bonus

        Target Earned

	Threshold	90%	50%	75%	75%
	Target	100%	100%	100%	100%
	Maximum	110%	150%	150%	200%

 

For performance between the performance levels, the percentage will be determined based
upon interpolation between the performance levels. Participants cannot earn a cash incentive in excess of the maximum levels specified
above.

 

Under the Executive Short Term Incentive Plan,
the possible outcomes of the percentage of base salary that could be received by the Company’s President and Chief Executive
Officer is 0% of base salary for performance below the threshold performance standards, and an amount between 20.625% and 96.25%
of base salary for performance at or above the threshold performance standards, with 55% payable if both of the target financial
performance objectives are met. Under the Executive Short Term Incentive Plan, the possible outcomes of the percentage of base
salary that could be received by other officers of the Company is 0% of base salary for performance below the threshold performance
standards, and an amount between 13.125% to 61.25% of base salary for performance at or above the threshold performance standards,
with 35% payable if both of the target financial performance objectives are met.

 

After completion of each of fiscal 2018, the
Committee will determine the extent to which the financial targets have been achieved and the actual cash amounts to be paid under
the Executive Short Term Incentive Plan.

 

The Committee reserves the right, in its sole
and absolute discretion, to change the eligibility for participation under the Executive Short Term Incentive Plan, to revise,
eliminate or otherwise modify any performance targets, to modify any participant’s target cash incentive, or otherwise to
increase, decrease or eliminate any incentive payouts to any participant under the Executive Short Term Incentive Plan, regardless
of the level of performance targets that have been achieved. Participants must be employed by the Company at the date of the payment
in fiscal 2019, except to the extent otherwise provided by separate agreement.

 

Participants under the Executive Long Term Incentive
Plan must be employed on or before December 31, 2017 in order to be eligible. Those hired between July 1, 2017 and December 31,
2017 will receive a pro-rata portion of their equity award.

 

Fiscal 2018 Executive Long Term Incentive Plan

 

Under the Fiscal 2018 Executive Long Term Incentive
Plan (the “Executive Long Term Incentive Plan”), the Company’s key executives, including the named executive
officers, can earn incentive restricted stock units and performance share award units under the 2004 Stock Incentive Plan. The
equity awards granted under the Executive Long Term Incentive Plan will be targeted to be 50% in the form of restricted stock units
and 50% in the form of performance share award units.

 

     

    	Page 3 of 4

    

 

The equity awards will be granted on October
1, 2017. The specific number of shares of restricted stock units and the specific target number of performance share award units
that each participant receives will be determined by dividing an award amount denominated in dollars by the closing price of the
Company’s Common Stock on the Nasdaq Stock Market’s Global Market on the date the restricted stock units and performance
share award units are awarded. The award amount is equal to a predetermined percentage of the participant’s base salary (40%
for our President and Chief Executive Officer and 30% for the other executive officers).

 

The restricted stock units vest 33-1/3% on the
first anniversary of the grant date, 33-1/3% on the second anniversary of the grant date and 33-1/3% on the third anniversary of
the grant date, provided the participant remains employed with the Company on each of the relevant vesting dates. The restricted
stock units will become fully vested in the event a successor corporation refuses to assume the restricted stock units or the participant’s
employment is terminated without Cause (as defined in the award agreement) in connection with or within three years following a
Change in Control of the Company (as defined in the award agreement).

 

Subject to the Company’s achievement of
specified results with respect to corporate revenue and operating income targets for fiscal years 2018, 2019 and 2020 (the “Performance
Measures”), performance share award units vest 33-1/3% based upon the achievement of Performance Measures for fiscal 2018,
33-1/3% based upon the achievement of Performance Measures for fiscal 2019 and 33-1/3% based upon the achievement of Performance
Measures for fiscal 2020, provided the participant remains employed with the Company on each of the relevant vesting dates. The
Performance Measures are set at the date of grant based upon the Company’s 3 Year Long Range Plan. The weightings of the
Performance Measures for determining the number of performance share award units that will vest for each participant in fiscal
years 2018, 2019 and 2020 will be as follows:

 

	Performance Measure	 	Weighting
	Company Revenue	 	50%
	Company Operating Income Before Incentive Compensation	 	50%

 

The financial targets included in the Performance
Measures include progressive threshold (90% of target for Company Revenue and 75% of target for Company Operating Income Before
Incentive Compensation), target and maximum (110% of target for Company Revenue and 150% of target for Company Operating Income
Before Incentive Compensation) performance level incentive objectives. The Committee may adjust the calculation of the Company
Revenue target and the Company Operating Income Before Incentive Compensation target to account for unforeseen, unanticipated,
unusual and/or non-ordinary course events and issues.

 

Performance share award units will vest under
the Executive Long Term Incentive Plan only if Company Operating Income Before Incentive Compensation for the fiscal year equals
or exceeds 75% of the target performance level and, in the case of the Company Revenue target, if Company Revenue for the fiscal
year equals or exceeds 90% of the target performance level. The number of performance share award units that will vest each year
will equal the number of performance share awards units granted for that year (33-1/3% of the total units granted) multiplied by
the Percentage of the Award Goal Earned. The Percentage of the Award Goal Earned is calculated as follows: (i) Percentage of Company
Revenue Award Goal Earned multiplied by 0.50 plus (ii) Percentage of Company Operating Income Before Incentive Compensation Goal
Earned multiplied by 0.50. The Percentage of Company Revenue Award Goal Earned and Percentage of Company Operating Income Before
Incentive Compensation Award Goal Earned will be determined as follows:

 

     

    	Page 4 of 4

    

 

	 	Company Revenue

(50% Weighting)	Company Operating Income

(50% Weighting)
	 	Performance 

Level	
        % of Bonus

        Target Earned
	Performance 

Level	
        % of Bonus

        Target Earned

	Threshold	90%	50%	75%	75%
	Target	100%	100%	100%	100%
	Maximum	110%	150%	150%	200%

 

For performance between the performance levels, the percentage will be determined based
upon interpolation between the performance levels. Participants earn a cool incentive in excess of the maximum levels specified
above.

 

After completion of each of fiscal 2018, 2019
and 2020, by October 1 of the following fiscal year, the Committee will determine the extent to which the Performance Measures
for that year have been achieved and the actual number of performance share award units vesting in that year.

 

The performance share award units will become
fully vested at the target level in the event a successor corporation refuses to assume the performance share award units or the
participant’s employment is terminated without Cause (as defined in the award agreement) (or, in the case of the President
and Chief Executive Officer, the executive officers and certain other executives, if they terminate for Good Reason (as defined
in the award agreement)) in connection with or within three years following a Change in Control of the Company (as defined in the
award agreement). In the event a successor corporation assumes the performance share award units, the unvested portions of the
performance share award units shall vest at the time and in the amount they would have vested at if the Performance Measures had
been achieved at the target level for those years.

 

Participants under the Executive Long Term Incentive
Plan must be employed on or before December 31, 2017 in order to be eligible. Those hired between July 1, 2017 and December 31,
2017 will receive a pro-rata portion of their equity award.

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