Document:

ex10-2.htm

Exhibit 10.2

2013 NON-EMPLOYEE DIRECTORS EQUITY PLAN

 

RESTRICTED STOCK AGREEMENT

 

This Restricted Stock Agreement (the “Agreement”) is made as of _________ (the “Grant Date”) between KAYDON CORPORATION, a Delaware corporation (the “Company”), and (“Grantee”).  Pursuant to the Kaydon Corporation 2013 Non-Employee Directors Equity Plan (the “Plan”) the Grantee has been granted shares of common stock of the Company, subject to the terms and conditions contained in this Agreement and in the Plan.  Capitalized terms not otherwise defined herein shall have the meanings given to them in the Plan.

 

1.            Grant of Restricted Stock.  The Company grants to Grantee, and Grantee accepts, _________shares of $0.10 par value common stock of the Company, subject to the terms and conditions of this Agreement and the Plan (the “Restricted Stock”).  Grantee acknowledges receipt of a copy of the Prospectus for the Plan.

 

2.            Restrictions on and Forfeiture of Restricted Stock.  The Company awards the Restricted Stock to Grantee subject to the restrictions described below.

 

(a)           Unless the Compensation Committee (the “Committee”) of the Company’s Board of Directors otherwise consents or the Plan otherwise explicitly provides, Grantee will not sell, exchange, transfer, pledge, or otherwise dispose of any shares of the Restricted Stock at any time, whether voluntarily or involuntarily, by operation of law or otherwise.  If Grantee violates this restriction, Grantee’s right to shares of Restricted Stock remaining subject to restrictions will immediately cease and terminate and Grantee will immediately forfeit and surrender all shares of Restricted Stock that are still subject to restrictions or which have not yet vested to the Company.  This restriction on transferability must lapse before Grantee will receive any stock under this Agreement.

 

(b)           Except as otherwise determined by the Committee, if the Grantee incurs a Termination of Service other than by reason of death, Disability or Retirement, all shares of Restricted Stock which are still subject to the foregoing restriction on transferability shall, upon such Termination of Service, be forfeited and transferred back to the Company.  In addition, if the Grantee continues to hold Restricted Stock following his or her Termination of Service due to his or her Retirement, the shares of Restricted Stock which remain subject to the foregoing restriction on transferability shall nonetheless be forfeited and transferred back to the Company if the Committee at any time thereafter determines that the Grantee has engaged in any activity detrimental to the interests of the Company.

 

3.            Lapse of Restrictions.  The restrictions on transferability shall lapse with respect to all shares of Restricted Stock on the January 5th following the Grant Date.  The lapse of restrictions on transferability shall also be accelerated as provided in Section 5.

 

4.            Delivery of Shares.  At the time all restrictions have lapsed with respect to shares of Restricted Stock, the Company shall deliver the shares as to which such restrictions have lapsed as follows:

 

(i)           if an assignment to a trust has been made, to such trust; or

 

(ii)          if the restriction on transferability has expired by reason of death and a beneficiary has been designated in a form approved by the Company, to the beneficiary so designated; or

 

(iii)         in all other cases, to the Grantee or the legal representative of the Grantee’s estate.

 

5.            Acceleration of Lapsing Only Upon Death or Disability.  Notwithstanding the provisions of Section 3, if the Grantee incurs a Termination of Service due to death or Disability, or if the Grantee dies following a Termination of Service due to Retirement, then all restrictions in effect at the date of such Termination of Service or at such date of death shall immediately lapse and all shares shall be free of, and no longer subject to, any restrictions.

 

  

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(a)           Retirement.  If the Grantee incurs a Termination of Service due to Retirement, any restrictions on shares of Restricted Stock remaining at the time of Retirement shall continue in effect and shall lapse as provided in Section 3.

 

6.            Tax Withholding and Deferred Compensation.  The Company shall have the right to require the Grantee to make adequate provisions for any federal, state, local or foreign taxes (including, any taxes arising under Sections 409A or 4999 of the Code, except to the extent otherwise specifically provided in a written agreement with the Company), if any, required by law to be withheld by the Company with respect to the income realized by such Grantee as a result of the lapsing of restrictions with respect to shares of Restricted Stock.  The Company shall have no obligation to deliver shares of Stock that were previously Restricted Stock until the Company’s tax withholding obligations have been satisfied.  Neither the Company nor any of its employees, officers, directors, or service providers shall have any obligation whatsoever to pay such taxes, to prevent the Grantee from incurring them, or to mitigate or protect the Grantee from any such tax liabilities.  Nevertheless, if the Company reasonably determines that the Grantee’s receipt of payments or benefits pursuant to Sections 5 and 7 of the Plan as a result of the Grantee’s termination of membership on the Board constitutes “nonqualified deferred compensation” within the meaning of Section 409A, payment of such amounts shall not commence until the Grantee incur a “separation from service” within the meaning of Treasury Regulation § 1.409A-1(h) (“Separation from Service”).  If, at the time of the Grantee’s Separation from Service, the Grantee is a “specified employee” (under Internal Revenue Code Section 409A), any amount that constitutes “nonqualified deferred compensation” within the meaning of Code Section 409A that becomes payable to the Grantee on account of the Grantee’s Separation from Service (including any amounts payable pursuant to the preceding sentence) will not be paid until after the end of the sixth calendar month beginning after the Grantee’s Separation from Service (the “409A Suspension Period”). Within 14 calendar days after the end of the 409A Suspension Period, the Grantee shall be paid a lump sum payment in cash equal to any payments delayed because of the preceding sentence, without interest. Thereafter, the Grantee shall receive any remaining benefits as if there had not been an earlier delay.

 

7.            Change in Control.  In the event of a Change in Control, all restrictions relating to any shares of Restricted Stock shall lapse and be of no further effect, upon, but, immediately prior to, the date of the Change in Control.  The lapsing of the restriction on transferability with respect to shares of Restricted Stock that results solely by reason of this Section 7, shall be conditioned upon the consummation of the Change in Control.

 

8.            Issuance of Stock.  The issuance or delivery of any shares of stock upon the lapsing of restrictions on Restricted Stock may be postponed by the Company for any period required to comply with any applicable requirements under the federal securities laws, any applicable listing requirement of the NYSE or any other requirements of applicable laws or regulations.  The Company is not obligated to deliver or issue any shares of stock if such delivery or issuance would constitute a violation of any provision of any law or regulation or any rule of the NYSE.  So long as the Company’s stock is listed on the NYSE, issuance of any shares of Restricted Stock, is conditioned on such shares to be issued also being listed on the NYSE.  In addition, if at any time counsel to the Company is of the opinion that the sale or issuance of shares of Restricted Stock is or may be unlawful under the circumstances, the Company shall have no obligation to make such sale or issuance.

 

9.            Rights as a Shareholder.  Grantee will have certain rights as a shareholder with respect to the Restricted Stock, including but not limited to the right to vote the Restricted Stock at shareholders’ meetings, the right to receive, without restriction, all cash dividends paid with respect to the Restricted Stock, and the right to participate with respect to the Restricted Stock in any stock dividend, stock split, recapitalization, or other adjustment in the capital stock of the Company, or any merger, consolidation, or other reorganization involving an increase, decrease, or adjustment in the capital stock of the Company.

 

10.          Substitute Shares.  Any shares or other security received as a result of any stock dividend, stock split, or reorganization will be subject to the same terms, conditions, and restrictions as those relating to the Restricted Stock granted under this Agreement.

 

  

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11.           Registration.  Certificates for the shares of stock evidencing the Restricted Stock will not be issued but the shares will be registered in Grantee’s name in book entry form as soon as administratively feasible after Grantee’s acceptance of this Agreement.

 

12.           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

 

13.           Binding Effect and Amendment.  This Agreement is the entire agreement between the parties and will be binding upon, and will inure to the benefit of, the parties to this Agreement and their respective heirs, successors, and assigns, and may be modified only by a writing signed by the parties.

 

Executed this ___ day of _____, 20__.

 

	
KAYDON CORPORATION 

	  	
  GRANTEE 

	  	  	  	  
	
By: 

	  	  	  
	  	  	  	  	  
	
Its: 

	  	  	
Print 

Name: 

	  

 

3ex10-3.htm

Exhibit 10.3

 

2013 NON-EMPLOYEE DIRECTORS EQUITY PLAN

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

THIS NONSTATUTORY STOCK OPTION AGREEMENT (the “Option Agreement”) is made and entered into as of _________ by and between  KAYDON CORPORATION, a Delaware corporation (the “Company”), and (the “Optionee”).  The Company has granted to the Optionee an option to purchase certain shares of Stock, upon the terms and conditions set forth in this Option Agreement (the “Option”).

 

1.             Definitions and Construction.  Capitalized terms not defined herein shall have the meaning given to them in the Director Plan.  Whenever used herein, the following terms shall have their respective meanings set forth below:

 

(a)           “Annual Grant Date” means ________, 20__.

 

(b)           “Director Plan” means the Kaydon Corporation 2013 Non-Employee Directors Equity Plan, as approved by stockholders of the Company on May 8, 2013.

 

(c)           “Number of Option Shares” means  ___________________  (    ) shares of Stock, as adjusted from time to time pursuant to Section 14.

 

(d)           “Exercise Price” means $ _____________  per share of Stock, as adjusted from time to time pursuant to Section 14.

 

(e)           “Option Expiration Date” means the tenth, (10th) anniversary after the Annual Grant Date.

 

(f)           “Securities Act” means the Securities Act of 1933, as amended.

 

(g)           “Service” means the Optionee’s service as a director.

 

2.             Tax Status of the Option.  This Option is intended to be a nonstatutory stock option and shall not be treated as an incentive stock option within the meaning of Section 422(b) of the Code.

 

3.             Administration.  All questions of interpretation concerning this Option Agreement shall be determined by the Committee of the Board.  All determinations by the Board shall be final and binding upon all persons having an interest in the Option.

 

4.             Exercise of the Option.

 

(a)           Except as otherwise provided herein, the Option shall become fully vested and  exercisable on and after the first anniversary of the Annual Grant Date and prior to the termination of the Option (as provided in Section 11) in an amount not to exceed the Number of Option Shares less the number of shares previously acquired upon exercise of the Option.  In no event shall the Option be exercisable for more shares than the Number of Option Shares.  Notwithstanding the foregoing, in the event that the adoption of the Plan or any amendment of the Plan is subject to the approval of the Company’s stockholders in order for the Plan or the grant of the Option to comply with the requirements of Rule 16b-3, the Option shall not be exercisable prior to such stockholder approval.

 

(b)           Exercise of the Option shall be by written notice to the Company which must state the election to exercise the Option, the number of whole shares of Stock for which the Option is being exercised and such other representations and agreements as to the Optionee’s investment intent with respect to such shares as may be required pursuant to the provisions of this Option Agreement.  The written notice must be signed by the Optionee and must be delivered in person, by certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such other means as the Company may permit, to the Vice President and General Counsel of the Company, or other authorized representative of the Company, prior to the termination of the Option as set forth in Section 11, accompanied by full payment of the aggregate Exercise Price for the number of shares of Stock being purchased.  The Option shall be deemed to be exercised upon receipt by the Company of such written notice and the aggregate Exercise Price.

 

  

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5.             Payment of Consideration.  Except as otherwise provided below, payment of the aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised shall be made (i) in cash, by check, or cash equivalent, (ii) by tender to the Company of whole shares of Stock owned by the Optionee having a Fair Market Value not less than the aggregate Exercise Price, or (iii) by any combination of the foregoing.  Notwithstanding the foregoing, the Option may not be exercised by tender to the Company of shares of Stock to the extent such tender of Stock would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock.

 

6.             Tax Withholding and Deferred Compensation.  The Company shall have the right, but not the obligation, to deduct from the shares of Stock issuable upon the exercise of an Option, or to accept from the Optionee the tender of, a number of whole shares of Stock having a Fair Market Value equal to all or any part of the federal, state, local and foreign taxes, if any, required by law (including, any taxes arising under Sections 409A or 4999 of the Code) to be withheld by the Company with respect to such Option or the shares acquired upon exercise thereof.  Alternatively or in addition, in its sole discretion, the Company shall have the right to require the Optionee to make adequate provisions for any such tax withholding obligations of the Company arising in connection with the Option or the shares acquired upon exercise thereof.  The Company shall have no obligation to deliver shares of Stock until the Company’s tax withholding obligations have been satisfied. Neither the Company nor any of its employees, officers, directors, or service providers shall have any obligation whatsoever to pay such taxes, to prevent the Optionee from incurring them, or to mitigate or protect the Optionee from any such tax liabilities.  Nevertheless, if the Company reasonably determines that the Optionee’s receipt of payments or benefits pursuant to Sections 5 or 6 of the Plan constitutes “nonqualified deferred compensation” within the meaning of Section 409A, payment of such amounts shall not commence until the Optionee incurs a “separation from service” within the meaning of Treasury Regulation § 1.409A-1(h) (“Separation from Service”).  If, at the time of the Optionee’s Separation from Service, the Optionee is a “specified employee” (under Internal Revenue Code Section 409A), any amount that constitutes “nonqualified deferred compensation” within the meaning of Code Section 409A that becomes payable to the Optionee on account of the Optionee’s Separation from Service (including any amounts payable pursuant to the preceding sentence) will not be paid until after the end of the sixth calendar month beginning after the Optionee’s Separation from Service (the “409A Suspension Period”). Within 14 calendar days after the end of the 409A Suspension Period, the Optionee shall be paid a lump sum payment in cash equal to any payments delayed because of the preceding sentence, without interest. Thereafter, the Optionee shall receive any remaining benefits as if there had not been an earlier delay. that period. Thereafter, the Grantee shall receive any remaining benefits as if there had not been an earlier delay.

 

7.             Certificate Registration.  The certificate for the shares as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, the heirs of the Optionee.  The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of Stock subject to the provisions of this Option Agreement.  The Optionee shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to the Option in the possession of the Optionee in order to carry out the provisions of this Section.

 

8.             Restrictions on Grant of the Option and Issuance of Shares.  The grant of the Option and the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.  The Option may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  In addition, the Option may not be exercised unless (i) a registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act.  THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Option shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained.  As a condition to the exercise of the Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.

 

  

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9.             Fractional Shares.  The Company shall not be required to issue fractional shares upon the exercise of the Option.

 

10.           Nontransferability of the Option.  The Option may be exercised during the lifetime of the Optionee only by the Optionee or the Optionee’s guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution.  Following the death of the Optionee, the Option, to the extent provided in Section 6 of the Director Plan, may be exercised by the Optionee’s legal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution.

 

11.           Expiration of the Option.  The Option shall terminate and cease to be exercisable on the first to occur of the following events:

 

(a)           the date which is the tenth (10th) anniversary of the Annual Grant Date unless earlier terminated pursuant to clause (c) below;

 

(b)           the expiration of one (1) month from the date of a person’s Termination of Service for any reason other than death, Disability or Retirement; or

 

(c)           the expiration of five (5) years from the date of a person’s death, whether before or after a Termination of Service.

 

12.           Option Exercisability.  Notwithstanding the foregoing, if the Optionee incurs a Termination of Service other than due to death, Disability or Retirement, any portion of the Option that is not exercisable at the date of such Termination of Service shall never become exercisable and shall be immediately forfeited.  If an Optionee incurs a Termination of Service due to death or dies following a Termination of Service while holding Options that are unexercisable, then 100% of the Option shall immediately become vested and exercisable.  If the Optionee incurs a Termination of Service due to Disability or Retirement, the Option shall continue to become exercisable in accordance with the Vested Percentage schedule, but the exercise thereof shall be subject to the provisions of Section 11, and, in addition, the Option shall be cancelled and forfeited if the Committee at any time thereafter determines that the former Director has engaged in any activity detrimental to the interests of the Company. 

 

13.           Change in Control.  In the event of a Change in Control, any unexercisable portion of the Option shall become immediately exercisable and vested in full upon, but immediately prior to, the date of the Change in Control.  The exercise or vesting of any Option that results solely by reason of this Section 13, shall be conditioned upon the consummation of the Change in Control.  In addition, the surviving, continuing, successor, or purchasing corporation or parent corporation thereof, as the case may be (the “Acquiring Corporation”), may either assume the Company’s rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for the Acquiring Corporation’s stock.  Any Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control.

 

  

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14.           Adjustments for Changes in Capital Structure.  Upon the occurrence of any dividend or other distribution (whether in the form of cash (other than regular, quarterly cash dividends), Stock, other securities or other property), change in the capital or shares of capital stock, recapitalization, stock split, reverse stock split, reorganization, merger, consolidation split-up, spin-off, combination, or exchange of Stock or other securities of the Company, or other extraordinary transaction or event which affects the Stock, appropriate adjustments shall be made in the number, Exercise Price and class of shares of stock subject to the Option. If a majority of the shares which are of the same class as the shares that are subject to the Option are exchanged for, converted into, or otherwise become (whether or not pursuant to a Change in Control) shares of another corporation (the “New Shares”), the Committee may unilaterally amend the Option to provide that the Option is exercisable for New Shares. In the event of any such amendment, the Number of Option Shares and the Exercise Price shall be adjusted in a fair and equitable manner, as determined by the Committee, in its sole discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 14 shall be rounded down to the nearest whole number, and in no event may the Exercise Price be decreased to an amount less than the par value, if any, of the stock subject to the Option.

 

15.           Rights as a Stockholder.  The Optionee shall have no rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a certificate for the shares for which the Option has been exercised (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 14.

 

16.           Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Option Agreement. Except when otherwise indicated by the context, the singular shall include the plural, the plural shall include the singular, and use of the term “or” shall not be exclusive.

 

17.           Binding Effect.  Subject to the restrictions on transfer set forth herein, this Option Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns.

 

18.           Termination or Amendment.  The Board may terminate or amend the Plan or the Option at any time; provided, however, that no such termination or amendment may adversely affect the Option or any unexercised portion hereof without the consent of the Optionee unless such termination or amendment is necessary to comply with any applicable law or government regulation. No amendment or addition to this Option Agreement shall be effective unless in writing.

 

19.           Integrated Agreement.  This Option Agreement constitutes the entire understanding and agreement of the Optionee and the Company with respect to the subject matter contained herein, and there are no agreements, understandings, restrictions, representations, or warranties among the Optionee and the Company with respect to such subject matter other than those as set forth or provided for herein. To the extent contemplated herein, the provisions of this Option Agreement shall survive any exercise of the Option and shall remain in full force and effect.

 

20.           Applicable Law.  This Option Agreement shall be governed by the laws of the State of Delaware as such laws are applied to agreements between Delaware residents entered into and to be performed entirely within the State of Delaware.

 

  

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KAYDON CORPORATION

	  	  	  	  
	  	  	
By: 

	  
	  	  	  	  
	  	  	
Its:

	  

 

The Optionee represents that the Optionee is familiar with the terms and provisions of this Option Agreement and hereby accepts the Option subject to all of the terms and provisions thereof.  The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under this Option Agreement.

 

	  	  	
OPTIONEE

	 	 	 
	
Dated:   

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	
Print 

Name: 

	  

 

 

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