Document:

MANAGEMENT
INCENTIVE COMPENSATION PLAN (MICP)

 

PLAN DOCUMENT

 

 

 

                Table of Contents

 

	
   

  	
   

  	
   

  	
   

  
	
  1.0

  	
   

  	
  Plan Objectives

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.0

  	
   

  	
  Participation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.0

  	
   

  	
  Target Bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.0

  	
   

  	
  Funding

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.0

  	
   

  	
  Payout Calculation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.0

  	
   

  	
  Payment of Awards

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.0

  	
   

  	
  Plan Administration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.0

  	
   

  	
  Plan Approval

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

1.0          PLAN OBJECTIVES

 

The Dade Behring Management Incentive Compensation Plan was developed
to link a significant portion of Dade Behring’s management employees’ total
cash compensation to the financial success of the company.

 

This program is an integral component of the company’s “pay-for-performance”
philosophy.  The objectives of the Plan
are to:

 

•                  Support Dade Behring’s business plans and financial goals;

•                  Motivate and reward both individual performance and teamwork;

•                  Enable Dade Behring to attract and retain high quality managers.

 

The MICP plan structure is kept mostly consistent year over year for
continuity and simplicity purposes.  The
emphasis on global Dade Behring results reinforce one Dade Behring/functional
concepts.  In addition, the understanding
by participants will enhance the drive for results.  Financial measures are reviewed each year to
ensure they correlate with the Dade Behring overall strategy and creation of
shareholder value.  The plan continues to
place emphasis on global Dade Behring results to encourage a company-wide focus
on teamwork.  Having said that, individual
performance is also a vital part of the plan.

 

2.0          PARTICIPATION

 

All US employees in salary grade level 17 and above are eligible to
participate in the Plan.  Salary grade
level 16 Product Managers are also eligible to participate in the Plan.

 

For non-US employees, the participation is based on the US equivalent
grade level since global compensation structure is not formally in place in all
countries.

 

All participants will be reviewed and approved by the Compensation
Administrative Committee contingent upon the participant’s submission of
Individual Performance Objectives (IPOs).

 

Individuals hired or promoted into a bonus eligible position on or
before the close of the third fiscal quarter are eligible for a pro-rated bonus
target based on the number of full months of participation in the Plan.  (Note: 
The third quarter close deadline does not apply to job changes impacting
current participants in the plan.  See
Section 3.1 for clarification.)

 

Individuals hired or promoted into a bonus eligible position after the
close of the third fiscal quarter are not eligible to participate in the
Plan until the succeeding Plan year.

 

3.0          TARGET
BONUS

 

The target bonus percentage will be communicated directly to individuals
through a participant letter from the CEO.

 

The MICP target bonus amount is determined by multiplying the
participant’s annual base salary as of the close of the fiscal year by the
participant’s target bonus percentage.

 

2

 

 

3.1          Pro-rated
Target Bonus

 

An individual hired or promoted into a bonus eligible position on or
before September 30, is eligible for a pro-rated bonus target based on the
number of full months of participation in the Plan.  The participant’s target bonus percentage and
pro-ration (number of eligible months in the Plan) should be outlined and
communicated in the offer or promotion letter.

 

For Example:

 

	
  Example

  	
   

  	
  Hire or Promotion

  Date

  	
   

  	
  Proration

  (# of mo)

  	
   

  	
  Target

  %

  	
   

  	
  12/31/05 

  Annual Salary

  	
   

  	
  Calculation

  	
   

  	
  Target 

  Bonus $

  	
   

  
	
  #1

  	
   

  	
  3/7/XX

  	
   

  	
  10

  	
   

  	
  10

  	
  %

  	
  $70,000

  	
   

  	
  ($70,000 x 10%) x 10/12

  	
   

  	
  $5,833

  	
   

  
	
  #2

  	
   

  	
  7/18/XX

  	
   

  	
  5

  	
   

  	
  15

  	
  %

  	
  $80,000

  	
   

  	
  ($80,000 x 15%) x 5/12

  	
   

  	
  $5,000

  	
   

  

 

If a participant changes jobs during the year, resulting in a higher or
lower target bonus percentage, the MICP target bonus amount is calculated on a
pro-rated basis.  The total target bonus
amount is determined by multiplying the participant’s fiscal year end annual
base salary by each applicable target percentage for the number of full months
at that target percentage level.

 

For Example:

 

	
  Effective

  Date

  	
   

  	
  Grade
 Level

  	
   

  	
  Proration

  (# of mo)

  	
   

  	
  Target

  %

  	
   

  	
  12/31/05

  Annual Salary

  	
   

  	
  Calculation

  	
   

  	
  Target

  Bonus $

  	
   

  
	
  1/1/XX

  	
   

  	
  17

  	
   

  	
  5

  	
   

  	
  10

  	
  %

  	
  $90,000

  	
   

  	
  ($90,000 x 10%) x 5/12

  	
   

  	
  $3,750

  	
   

  
	
  5/23/XX

  	
   

  	
  18

  	
   

  	
  7

  	
   

  	
  15

  	
  %

  	
  $90,000

  	
   

  	
  ($90,000 x 15%) x 7/12

  	
   

  	
  $7,875

  	
   

  
	
  Total
  Target Bonus:

   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $11,625

  	
   

  

 

3

3.2          Pro-ration
Rule

 

The number of months of full participation will be based on Dade
Behring’s “15th Day Rule”. That is, the effective date of the job
change or hire date must be on or before the 15th day of the month
for the whole month to be counted.  If
the job change or hire date takes place after the 15th of the month,
the pro-ration will count from the following month.

 

 

4.0          FUNDING

 

Plan funding reflects performance of four financial measures.  These measures fund independently of each
other, meaning that one may fund while the others may not.

 

	
  •

  	
   

  	
  Net Income:

  	
   

  	
  Earnings less interest and taxes (defined by US GAAP
  and presented in SEC submitted financial statements). Target will be adjusted
  for changes in foreign currency.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •

  	
   

  	
  Cash Flow:

  	
   

  	
  For MICP purposes: Cash from operations less capital
  spending and sale of assets as presented in SEC filed financial statements,
  plus cash from the exercise of stock options and employee stock purchase plan
  contributions. Target will be adjusted for changes in foreign currency.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •

  	
   

  	
  EBITDA:

  	
   

  	
  Earnings Before Interest, Taxes, Depreciation,
  Amortization and non-recurring and non-cash charges. Target will be adjusted
  for changes in foreign currency.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •

  	
   

  	
  Revenue Growth:

  	
   

  	
  Sales growth over prior year actual base. Target
  will be adjusted for changes in foreign currency.

  	
   

  

 

Note:  Since Dade
Behring financials are globally based, they are affected by changes in foreign
exchange rates.  The MICP financial
targets published in this document are developed using the Annual Operating
Plan exchange rates at the beginning of the year (“plan rates”).  At the end of the year, however, the targets
are re-calculated using the actual exchange rates during the year (“actual
rates”).  This is done so that a
comparison may be made on an equivalent basis to the year-end financial
results, which are based on the actual rates.

 

4.1          Global
Dade Behring Plan Funding

 

The MICP will fund 50% based on Dade Behring’s Net Income
performance, 20% on Cash Flow performance, 20% on EBITDA performance, and 10%
on Revenue Growth performance.

 

The funding measurement targets have been approved by
the Board of Directors and may be subject to technical adjustments as a result
of business events or accounting transactions. 
Results that fall between performance levels will be interpolated.

 

4

5.0          PAYOUT
CALCULATION

 

Once the MICP payout pools have been funded and approved by the Board
of Directors, individual bonus payouts will be calculated.  The actual MICP award will be based on two
components:

 

a)              Dade
Behring Overall Financial Performance

 

Sixty percent (60%) of a
participant’s MICP award is based on how well Global Dade Behring has met its
financial objectives (Net Income, Cash Flow, EBITDA and Revenue Growth).

 

b)              Individual
Performance

 

Forty percent (40%) of a
participant’s award is based upon individual performance.  Each participant’s overall performance rating
will be determined by his or her supervisor, using the LEADR process.

 

Some functions may
mandate that 15% of the 40% individual performance payout will be measured by individual
financial objectives.  These financial
objectives should reflect the way an individual supports his/her organization
(such as region target, functional target, cost center budget, etc.).  One financial target should be of immediate
control (country target or cost center budget), with another financial target
measured at a higher level to reinforce teamwork (region instead of countries,
functional instead of departmental).

 

Other functions will
measure individual performance based primarily on the overall LEADR performance
rating as well as the results of individual performance objectives.  These IPO’s may still include individual
financial objectives, along with other project or initiative based goals.

 

Using the payout pool and
distribution of performance ratings, the Corporate Compensation Department will
develop a payout schedule.  Final
performance ratings and payouts will be approved by Dade Behring’s CEO.  The total dollars granted under this portion
cannot exceed the funded pool.  Also, the
total MICP payout for all participants cannot exceed the total funded pool.

 

5

 

5.1          Example
2005 Payout Calculation

 

The following example assumes that
the participant’s target bonus is $10,000 and the participant’s individual
performance is at target.

 

	
  Measures

  	
   

  	
  Performance
 to Plan

  	
   

  	
  Funding
 Percent

  	
   

  	
  Threshold

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  	
  Bonus Payout

  	
   

  
	
  Global
  Dade Behring Results (60%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30.0% Global DB
  Net Income

  	
   

  	
  105

  	
  %

  	
  125

  	
  %

  	
  $600

  	
   

  	
  $3,000

  	
   

  	
  $6,000

  	
   

  	
  $3,750

  	
   

  
	
  12.0% Global DB
  Cash Flow

  	
   

  	
  108

  	
  %

  	
  160

  	
  %

  	
  $300

  	
   

  	
  $1,200

  	
   

  	
  $2,400

  	
   

  	
  $1,920

  	
   

  
	
  12.0% Global DB
  EBITDA

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  	
  $600

  	
   

  	
  $1,200

  	
   

  	
  $2,400

  	
   

  	
  $1,200

  	
   

  
	
  6.0% Global DB
  Revenue Growth

  	
   

  	
  Per schedule

  	
   

  	
  80

  	
  %

  	
  $120

  	
   

  	
  $600

  	
   

  	
  $1,200

  	
   

  	
  $480

  	
   

  
	
  Individual
  Performance (40%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40.0% Individual
  Performance

  	
   

  	
  100

  	
  %

  	
   

  	
   

  	
  $0

  	
   

  	
  $4,000

  	
   

  	
  $8,000

  	
   

  	
  $4,000

  	
   

  
	
  Total
  Bonus Opportunity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $1,620

  	
   

  	
  $10,000

  	
   

  	
  $20,000

  	
   

  	
   

  	
   

  
	
  Total
  MICP Payout

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $11,350

  	
   

  

 

6.0          PAYMENT
OF AWARDS

 

Awards are typically paid out during the first quarter of the following
year.  A participant must be an active employee
at the close of the fiscal year in order to receive a MICP award.

 

If a participant dies, retires at age fifty-five (55) or older, or is
involuntarily terminated (except for cause), plan participation will be
pro-rated.  If the termination date is on
or before the 15th of the month, that month will not be
counted.  If the termination takes place
after the 15th of the month, the pro-ration will include that month.

 

If a participant resigns prior to January 1 of the succeeding Plan year,
or is terminated for cause at any time prior to the MICP payout, no bonus award
will be granted.  Note:  “Cause” is defined per Dade Behring’s “Performance
and Conduct” policy.

 

The attainment of financial objectives does not
guarantee a payment of an MICP award. 
MICP awards may be adjusted at the discretion of management based upon,
but not limited to, the employee’s performance, conduct, and contribution.

 

In the United States, appropriate withholdings are deducted from the
bonus award, such as income taxes, FICA, Saving Investment Plan (SIP) and
Employee Stock Purchase Plan (ESPP).  Withholdings
will be made as appropriate for those employees who are subject to the tax laws
of other countries.

 

 

7.0       PLAN ADMINISTRATION

 

This document outlines the Management Incentive
Compensation Plan (Plan) for Dade Behring Inc. 
This Plan is a statement of intention and does not constitute a
guarantee of a 

 

 

6

particular payment. 
This Plan does not create a contractual relationship or any
contractually enforceable rights between Dade Behring and the participants.

 

The Dade Behring Management Incentive Compensation Plan is
administered by the Compensation Administrative Committee, as directed by the
Board of Directors.  The Compensation
Administrative Committee consists of the CEO, the SVP Human Resources and VP
Compensation, Benefits and HRIS.

 

The Board of Directors reserves the right within its sole
discretion:

 

•                  To amend, modify or cancel any
provision of the Plan in whole or in part at any time;

•                  To eliminate, reduce, modify, or
withhold awards based on such factors as changes in business conditions,
individual performance, company performance, or any other reason;

•                  To interpret the Plan and make decisions
on all questions and issues arising under the Plan and its decisions are final.

 

Any questions about this document should be directed to the Corporate
Compensation Department.

 

 

8.0                               PLAN APPROVAL

 

The MICP plan was approved by the Dade Behring Board of Directors.

 

7Exhibit
4.1

 

 

 

 

NEW PLAN EXCEL REALTY TRUST, INC.,

as Primary Obligor

 

and

 

U.S. BANK TRUST NATIONAL ASSOCIATION,

as Trustee

 

 

 

 

SUPPLEMENTAL INDENTURE

 

DATED AS OF DECEMBER 17, 2004

 

TO

 

INDENTURE

 

DATED AS OF FEBRUARY 3, 1999

 

AS SUPPLEMENTED BY

 

OFFICERS’ CERTIFICATE

 

DATED AS OF MAY 19, 2003

 

 

 

 

 

 

SUPPLEMENTAL INDENTURE dated as of December 17, 2004,
among NEW PLAN EXCEL REALTY TRUST, INC., a Maryland corporation, as primary
obligor (hereinafter called the “Company”), having its principal office
at 1120 Avenue of the Americas, New York, New York 10036, and U.S. BANK TRUST
NATIONAL ASSOCIATION (as successor to State Street Bank and Trust Company), a
national banking corporation, as trustee (hereinafter called the “Trustee”),
having its Corporate Trust Office at 100 Wall Street, New York, New York 10005.

WHEREAS,
the Company has heretofore executed and delivered an indenture dated as of
February 3, 1999 (the “Base  Indenture”),
by and among the Company, New Plan Realty
Trust, as guarantor, and the Trustee, to provide for the issuance from
time to time of senior debt securities, unlimited as to principal amount, to
bear interest at the rates or formulas, to mature at such times and to have
such other provisions as shall be fixed as provided in the Base Indenture;

WHEREAS,
the Company has heretofore executed an officers’ certificate dated as of May
19, 2003, pursuant Sections 301 and 303 of the Base Indenture (the “Officers’
Certificate,” and, together with the Base Indenture, the “Indenture”),
pursuant to which the Company has issued $115,000,000 aggregate principal
amount of 3.75% Convertible Senior Notes due 2023 (the “Notes”);

WHEREAS,
Section 901 of the Base Indenture provides that, without the consent of any
Holders of the Notes, the Company and the Trustee may enter into a supplemental
indenture to surrender any right or power conferred upon the Company;

WHEREAS,
Section 4.11 of the Officers’ Certificate provides that, subject to certain
conditions, the Company may, in its sole discretion, elect to pay for the Notes
to be purchased at the option of the Holder on a Purchase Date or to be
purchased at the option of the Holder upon the occurrence of a Fundamental
Change in cash or Common Stock, or in any combination of cash and Common Stock;

WHEREAS,
the Company has determined that it is in its best interests to surrender the
power under Section 4.11 to pay for the Notes to be purchased at the option of
the Holder on a Purchase Date or to be purchased at the option of the Holder
upon the occurrence of a Fundamental Change in Common Stock or in a combination
of cash and Common Stock;

WHEREAS,
Section 4.12 of the Officers’ Certificate provides that the Company may, in its
sole and absolute discretion, elect to satisfy all or a portion of any
Conversion Obligation in cash;

WHEREAS,
the Company has determined that it is in its best interests to irrevocably
elect under Section 4.12 to satisfy 100% of the principal amount of any Notes surrendered for conversion in cash and thereby surrender
its right to satisfy such amount in Common Stock;

WHEREAS, all conditions to
the entering of this Supplemental Indenture have been satisfied; and

 

WHEREAS, the Company and the Trustee desire to enter
into this Supplemental Indenture to supplement the Indenture.

 

1

 

NOW, THEREFORE, in consideration of the promises and of
the mutual covenants herein contained, and of the acceptance of this trust by
the Trustee, and of other valuable consideration, the receipt whereof is hereby
acknowledged, it is hereby covenanted, declared and agreed by and between the
parties hereto, for the benefit of Holders of the Notes, as follows:

SECTION 1.

DEFINITIONS

Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to such terms in the Indenture.

 

 

SECTION 2.

EFFECTIVENESS OF
SUPPLEMENTAL INDENTURE

Upon the execution and delivery of this Supplemental
Indenture by the Company and the Trustee, this Supplemental Indenture shall
become effective and the Indenture and the Notes issued thereunder shall be
supplemented in accordance herewith, and this Supplemental Indenture shall form
a part of the Indenture for all purposes, and every holder of Notes
authenticated and delivered under the Indenture shall be bound hereby.  Notwithstanding the foregoing, this
Supplemental Indenture will not amend or supplement the terms of any Securities
issued under the Indenture other than the Notes.

 

 

SECTION 3.

SURRENDER OF POWERS AND ELECTIONS PURSUANT TO THE
INDENTURE

The Company hereby: (i) irrevocably elects, under
Section 4.11 of the Officers’ Certificate, to pay cash for any Notes to be
purchased at the option of the Holder on a Purchase Date or to be purchased at the option of the
Holder upon the occurrence of a Fundamental
Change, and thereby surrenders the power to satisfy such amount in
Common Stock or a combination of cash and Common Stock and (ii) irrevocably
elects, under Section 4.12 of the Officers’ Certificate, to satisfy 100% of the
principal amount of any Notes surrendered for conversion in cash, and thereby
surrenders the power to satisfy such amount in Common Stock.

 

SECTION 4.

MISCELLANEOUS

SECTION 4.1         Execution
as Supplemental Indenture.  This
Supplemental Indenture is executed and shall be construed as an indenture
supplemental to the Indenture and, as provided in the Indenture, this
Supplemental Indenture forms a part thereof. 
Except as herein expressly otherwise defined, the use of the terms and
expressions herein is in accordance with the definitions, uses and constructions
contained in the Indenture.

 

2

 

SECTION 4.2         No Other
Amendments or Supplements. 
Except as expressly amended or supplemented hereby, the Indenture shall
continue in full force and effect in accordance with the provisions thereof.

SECTION 4.3         Provisions
Binding on the Company’s Successors. 
All the covenants, stipulations, promises and agreements contained in
this Supplemental Indenture made by the Company shall bind its successors and
assigns whether so expressed or not.

SECTION
4.4         Governing Law.  THIS SUPPLEMENTAL INDENTURE AND EACH NOTE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
NEW YORK APPLICABLE TO AGREEMENTS MADE OR INSTRUMENTS ENTERED INTO AND
PERFORMED IN SAID STATE.  THIS
SUPPLEMENTAL INDENTURE IS SUBJECT TO THE PROVISIONS OF THE TIA THAT ARE
REQUIRED TO BE PART OF THIS SUPPLEMENTAL INDENTURE AND SHALL, TO THE EXTENT
APPLICABLE, BE GOVERNED BY SUCH PROVISIONS.

SECTION 4.5         Execution
and Counterparts.  This Supplemental
Indenture may be executed in any number of counterparts, each of which shall be
an original but such counterparts shall together constitute but one and the
same instrument.

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to
be duly executed as of the date first written above.

 

	
   

  	
  NEW
  PLAN EXCEL REALTY TRUST, INC.,

  as Primary Obligor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven F. Siegel

  
	
   

  	
  Name:

  	
  Steven
  F. Siegel

  
	
   

  	
  Title:

  	
  Executive
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK TRUST NATIONAL ASSOCIATION,

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas E. Tabor

  
	
   

  	
  Name:

  	
  Thomas
  E. Tabor

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

4

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