Document:

Exhibit 10.13

 

AMENDED AND RESTATED 2003 STOCK PURCHASE AND
OPTION PLAN

FOR KEY EMPLOYEES OF

ITC HOLDINGS CORP. AND ITS SUBSIDIARIES

 

1.                                       Purpose
of Plan

 

The Amended and Restated 2003 Stock Purchase and Option Plan for Key
Employees of ITC Holdings Corp. and Its Subsidiaries (the “Plan”) is designed:

 

(a)                                  to
promote the long term financial interests and growth of ITC Holdings Corp. (the
“Company”) and its Subsidiaries (including, without limitation, International
Transmission Company (“ITC”)), by attracting and retaining management and other
personnel with the training, experience and ability to enable them to make a
substantial contribution to the success of the Company’s business;

 

(b)                                 to
motivate management personnel by means of growth-related incentives to achieve
long range goals; and

 

(c)                                  to
further the alignment of interests of participants with those of the
stockholders of the Company through opportunities for increased stock, or stock-based
ownership in the Company.

 

2.                                       Definitions

 

As used in the Plan, the following words shall have the following
meanings:

 

(a)                                  “Affiliate”
means with respect to any Person, any entity directly or indirectly
controlling, controlled by or under common control with such Person.

 

(b)                                 “Board”
means the Board of Directors of the Company.

 

(c)                                  “Change
of Ownership” means (i) the sale of all or substantially all of the assets of
the Company or ITC to an Unaffiliated Person; (ii) a sale resulting in more
than 50% of the voting stock of the Company or ITC being held by an Unaffiliated
Person; (iii) a merger, consolidation, recapitalization or reorganization of
the Company or ITC with or into another Unaffiliated Person; if and only if any such event listed in
clauses (i) through (iii) above results in the inability of ITH LP, Ironhill,
the Limited Partner Group, or any member or members of the Limited Partner
Group, to designate or elect a majority of the Board (or the board of directors
of the resulting entity or its parent company). 
For purposes of this definition, the term “Unaffiliated Person”
means any Person or Group who is not (x) ITH LP, Ironhill, the Limited Partner
Group or any member of the Limited Partner Group, (y) an Affiliate of ITH LP,
Ironhill, the Limited Partner Group or any member of the Limited Partner Group,
or (z) an entity in which ITH LP, Ironhill, the Limited Partner Group, or any
member of the Limited Partner Group holds, directly or indirectly, a majority
of the economic interests in such entity.

 

(d)                                 “Committee”
means the Compensation Committee of the Board.

 

 

(e)                                  “Common
Stock” or “Share” means common stock of the Company, which may be authorized
but unissued, or issued and reacquired.

 

(f)                                    “Employee”
means a person, including an officer, in the regular employment of the Company
or one of its Subsidiaries who, in the opinion of the Committee, is, or is
expected to have involvement in the management, growth or protection of some
part or all of the business of the Company.

 

(g)                                 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(h)                                 “Fair
Market Value” means the last reported sale price of a Share as reported by the
principal stock exchange on which the Common Stock is listed  or if the Common Stock is not listed on a
stock exchange, as determined in accordance with any applicable resolutions or
regulations of the Committee in effect at the relevant time.

 

(i)                                     “Grant”
means an award made to a Participant pursuant to the Plan and described in Section 5,
including, without limitation, an award of a Stock Option, Purchase Stock,
Restricted Stock, Stock Appreciation Right or Dividend Equivalent Right (as
such terms are defined in Section 5), or any combination of the foregoing.

 

(j)                                     “Grant
Agreement” means an agreement between the Company and a Participant that sets
forth the terms, conditions and limitations applicable to a Grant.

 

(k)                                  “Group”
means “group,” as such term is used for purposes of Section 13(d) or 14(d)
of the Exchange Act.

 

(l)                                     “Ironhill”
means Ironhill Transmission LLC, which is the general partner of ITH LP, of
which the Company is a majority-owned Subsidiary.

 

(m)                               “ITH
LP” means International Transmission Holdings Limited Partnership, a Michigan
limited partnership.

 

(n)                                 “Limited
Partner Group” shall mean the KKR Millennium Fund L.P., KKR Partners III, L.P.
(Series A) and Trimaran Capital Partners, collectively.

 

(o)                                 “Participant”
means an Employee, non-employee member of the Board, consultant or other person
having a relationship with the Company or one of its Subsidiaries, to whom one
or more Grants have been made and remain outstanding.

 

(p)                                 “Person”
means “person,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

 

(q)                                 “Subsidiary”
means any corporation in an unbroken chain of corporations beginning with the
Company if each of the corporations, or group of commonly controlled
corporations, other than the last corporation in the unbroken chain then owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

 

 

(r)                                    “Trimaran
Capital Partners” means, collectively, Trimaran Fund II, L.L.C., Trimaran
Parallel Fund II, L.P., Trimaran Capital, L.L.C., CIBC Employee Private Equity
Fund (Trimaran) Partners and CIBC MB Inc.

 

3.                                       Administration
of Plan

 

(a)                                  The
Plan shall be administered by the Committee. 
The Committee may adopt its own rules of procedure, and action of a
majority of the members of the Committee taken at a meeting, or action taken
without a meeting by unanimous written consent, shall constitute action by the
Committee.  The Committee shall have the
power and authority to administer, construe and interpret the Plan, to make
rules for carrying it out and to make changes in such rules.  Any such interpretations, rules, and
administration shall be consistent with the basic purposes of the Plan.

 

(b)                                 The
Committee may delegate to the Chief Executive Officer and to other senior
officers of the Company its duties under the Plan subject to such conditions
and limitations as the Committee shall prescribe except that only the Committee
may designate and make Grants to Participants who are subject to Section 16
of the Exchange Act.

 

(c)                                  The
Committee may employ counsel, consultants, accountants, appraisers, brokers or
other persons.  The Committee, the
Company, and the officers and directors of the Company shall be entitled to
rely upon the advice, opinions or valuations of any such persons.  All actions taken and all interpretations and
determinations made by the Committee in good faith shall be final and binding
upon all Participants, the Company and all other interested persons.  No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Grants, and all members of the Committee
shall be fully protected by the Company with respect to any such action,
determination or interpretation.

 

4.                                       Eligibility

 

The Committee may from time to time make Grants under the Plan to such
Employees, or other persons having a relationship with Company or any of its
Subsidiaries, and in such form and having such terms, conditions and
limitations as the Committee may determine. The terms, conditions and
limitations of each Grant under the Plan shall be set forth in a Grant
Agreement, in a form approved by the Committee, consistent, however, with the
terms of the Plan; provided, however, that such Grant Agreement
shall contain provisions dealing with the treatment of Grants in the event of
the termination of employment, death or disability of a Participant, and may
also include provisions concerning the treatment of Grants in the event of a
Change of Ownership of the Company.

 

5.                                       Grants

 

From time to time, the Committee will determine the forms and amounts
of Grants for Participants.  Such Grants
may take the following forms in the Committee’s sole discretion:

 

(a)                                  Stock
Options - These are options to purchase Common Stock.  At the time of Grant the Committee shall
determine, and shall include in the Grant Agreement or in the Plan rules, the
option exercise period, vesting requirements, and such other terms, conditions
or

 

 

restrictions on the grant or
exercise of the option as the Committee deems appropriate including, without
limitation, the right to receive dividend equivalent payments on vested and/or
unvested options; provided, however, that in no event shall any
option exercise price be less than the Fair Market Value of a Share on the date
the relevant option is granted.  In
addition to other restrictions contained in the Plan, an option granted under this
Section 5(a) may not be exercised more than 10 years after the date it is
granted.  Unless otherwise permitted by
the Committee, payment of the option exercise price shall be made in cash, in
accordance with the terms of the Plan, the Grant Agreement and of any
applicable guidelines of the Committee in effect at the time.

 

(b)                                 Stock
Appreciation Rights - The Committee may grant Stock Appreciation Rights in
connection with the grant of a Stock Option. 
Each Stock Appreciation Right shall be subject to such other terms as
the Committee may determine.  A Stock
Appreciation Right means the right to transfer and surrender to the Company all
or a portion of a Stock Option in exchange for a cash amount equal to the
excess of (i) the aggregate Fair Market Value, as of the date such Option or
portion thereof is transferred or surrendered, of the Common Stock underlying
by such Option or portion thereof, over (ii) the aggregate exercise price of
such Option or portion thereof, relating to such Common Stock.

 

(c)                                  Purchase
Stock - Purchase Stock are Shares offered to a Participant at such price as
determined by the Committee, the acquisition of which may make the Participant
eligible to receive Grants under the Plan, including, but not limited to, Stock
Options.

 

(d)                                 Restricted
Stock – Restricted Stock are Shares granted by the Committee to a
Participant, without charge to the Participant (other than as may be required
by applicable law).  The Restricted Stock
shall be subject to such other terms as the Committee may determine.

 

(e)                                  Dividend
Equivalent Rights – The Committee may grant Dividend Equivalent Rights
either alone or in connection with the grant of a Stock Option.  A Dividend Equivalent Right means the right
to receive a payment in respect of one share of Common Stock (whether or not
subject to a Stock Option) equal to the amount of any dividend paid in respect
of one share of Common Stock held by a shareholder in the Company. Each
Dividend Equivalent Right shall be subject to such terms as the Committee may determine.

 

6.                                       Limitations
and Conditions

 

(a)                                  The
number of Shares available for Grants under this Plan shall be 1,500,000.  Unless restricted by applicable law, Shares
related to Grants that are forfeited, terminated, canceled or expire
unexercised, shall immediately become available for new Grants.

 

(b)                                 No
Grants shall be made under the Plan beyond ten years after the effective date
of the Plan, but the terms of Grants made on or before the expiration of the
Plan may extend beyond such expiration. 
At the time a Grant is made or amended or the terms or conditions of a
Grant are changed in accordance with the terms of the Plan or the Grant
Agreement, the Committee may provide for limitations or conditions on such
Grant.

 

(c)                                  Nothing
contained herein shall affect the right of the Company or any of its
Subsidiaries to terminate any Participant’s employment at any time or for any
reason.

 

 

(d)                                 Other
than as specifically provided in the Form of Management Stockholder’s Agreement
attached hereto as Exhibit A, no benefit under the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to do so shall be void.  No such benefit shall, prior to receipt
thereof by the Participant, be in any manner liable for or subject to the
debts, contracts, liabilities, engagements, or torts of the Participant.

 

(e)                                  Participants
shall not be, and shall not have any of the rights or privileges of,
stockholders of the Company in respect of any Shares purchasable in connection
with any Grant unless and until certificates representing any such Shares have
been issued by the Company to such Participants (or book entry representing
such shares has been made and such Shares have been deposited with the appropriate
registered book-entry custodian).

 

(f)                                    No
election as to benefits or exercise of any Grant may be made during a
Participant’s lifetime by anyone other than the Participant except by a legal
representative appointed for or by the Participant.

 

(g)                                 Absent
express provisions to the contrary, any Grant under this Plan shall not be
deemed compensation for purposes of computing benefits or contributions under
any retirement plan of the Company or its Subsidiaries and shall not affect any
benefits under any other benefit plan of any kind now or subsequently in effect
under which the availability or amount of benefits is related to level of
compensation.  This Plan is not a “Retirement
Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of
1974, as amended.

 

(h)                                 Unless
the Committee determines otherwise, no benefit or promise under the Plan shall
be secured by any specific assets of the Company or any of its Subsidiaries,
nor shall any assets of the Company or any of its Subsidiaries be designated as
attributable or allocated to the satisfaction of the Company’s obligations
under the Plan.

 

7.                                       Transfers
and Leaves of Absence

 

For purposes of the Plan, unless the Committee determines otherwise:
(a) a transfer of a Participant’s employment without an intervening period of
separation among the Company and any Subsidiary (or among any Subsidiaries)
shall not be deemed a termination of employment, and (b) a Participant who is
granted in writing a leave of absence or who is entitled to a statutory leave
of absence shall be deemed to have remained in the employ of the Company (and
any Subsidiary) during such leave of absence.

 

8.                                       Adjustments

 

In the event of any change in the outstanding Common Stock by reason of
a stock split, spin-off, extraordinary dividend, stock dividend, stock
combination, reclassification, recapitalization, liquidation, dissolution,
reorganization, merger, Change of Ownership, or other event affecting the
capital stock of the Company, the Committee may adjust appropriately (a) the
number and kind of shares subject to the Plan and available for or covered by
Grants and (b) share prices related to outstanding Grants, and make such other
revisions to outstanding Grants as it

 

 

deems, in good faith, are equitably required (including, without
limitation, to the exercise price of Stock Options).

 

9.                                       Merger,
Consolidation, Exchange, Acquisition, Liquidation or Dissolution

 

In its absolute discretion, acting in good faith, and on such terms and
conditions as it deems appropriate, coincident with or after the grant of any
Grant, the Committee may provide that such Grant cannot be exercised after the
amalgamation, merger or consolidation of the Company with or into another
corporation, the exchange of all or substantially all of the assets of the
Company for the securities of another corporation, the acquisition by another
corporation of 80% or more of the Company’s then outstanding shares of voting
stock or the recapitalization, reorganization, reclassification, liquidation,
dissolution, or other event affecting the capital stock of the Company, and the
Committee shall, on such terms and conditions as it deems appropriate, acting
in good faith, also provide, either by the terms of such Grant or by a
resolution adopted prior to the occurrence of such amalgamation, merger,
consolidation, exchange, acquisition, recapitalization, reorganization,
reclassification, liquidation, dissolution or other event affecting the capital
stock of the Company, that, after written notice to all affected Participants
and for a reasonable period of time prior to such event, such Grant shall be
exercisable as to any Shares subject thereto which is being made unexercisable
after any such event, notwithstanding anything to the contrary herein (but
subject to the provisions of Section 6(b)) and that, upon the occurrence
of such event, such Grant shall terminate and be of no further force or effect;
provided, however, that the Committee may also provide, in its
absolute discretion, that (a) even if the Grant shall remain exercisable after
any such event, from and after such event, any such Grant shall be exercisable
only for, or (b) the Grant may be cancelled as of the date of such event only
in exchange for, the kind and amount of securities and/or other property, or
the cash equivalent thereof (as determined by the Committee in good faith),
receivable as a result of such event by the holder of a number of Shares for
which such Grant could have been exercised immediately prior to such event.

 

10.                                 Amendment
and Termination

 

(a)                                  The
Committee shall have the authority to make such amendments to any terms and
conditions applicable to outstanding Grants as are consistent with this Plan
provided that no such action shall modify any Grant in a manner adverse to the
Participant without the Participant’s consent except as such modification is
provided for or contemplated in the terms of the Grant or this Plan (except
that any adjustment that is made pursuant to Section 8 or 9 hereof may be
made by the Committee in good faith).

 

(b)                                 The
Board of Directors may amend, suspend or terminate the Plan except that no such
action, other than an action under Section 8 or 9 hereof or as may be
required to cause the Plan to comply with applicable law, may be taken which
would, without shareholder approval, increase the aggregate number of Shares
available for Grants under the Plan, decrease the price of outstanding Grants,
change the requirements relating to the Committee, extend the term of the Plan
or be materially adverse to all Participants with respect to any outstanding
Grants.

 

 

11.                                 Governing
Law; Foreign Options and Rights

 

(a)                                  This
Plan shall be governed by and construed in accordance with the laws of Michigan
applicable therein.

 

(b)                                 The
Committee may make Grants to Employees who are subject to the laws of
jurisdictions other than those of Michigan or the United States, which Grants
may have terms and conditions that differ from the terms thereof as provided
elsewhere in the Plan for the purpose of complying with foreign laws or otherwise
as deemed to be necessary or desirable by the Committee.

 

12.                                 Withholding
Taxes

 

The Company shall have the right to deduct from any cash payment made
under the Plan any minimum federal, state or local income or other taxes
required by law to be withheld with respect to such payment.  It shall be a condition to the obligation of
the Company to deliver Shares upon the exercise of a Stock Option that the
Participant pay to the Company such amount as may be requested by the Company
for the purpose of satisfying any liability for such minimum withholding taxes.

 

13.                                 Effective
Date and Termination Dates

 

The Plan became effective on February 25,
2003 and shall terminate on February 25, 2013, subject to earlier
termination by the Board pursuant to Section 10.

 

Original Plan approved by
stockholders on February 25, 2003.

 

Amended and Restated Plan
approved by stockholders on July 18, 2005.WWW.EXFILE.COM, INC. -- 13689 -- SCHNITZER STEEL INDUSTRIES, INC. -- FORM 8-K

EXHIBIT 10.1

 

 

Non-Employee Director Compensation Summary1

The following is a summary of the compensation provided to our non-employee directors effective as of September 1, 2005.

 

 

	
            Annual fee for all non-employee directors
 	
             
 	
            $
 	
            35,000
 
	
            Board meeting and Board committee meeting fees (where committee meeting held other than on the same day as a meeting of the Board)
 	
             
 	
            $
 	
            1,200
 
	
            Chairperson retainer – Audit Committee
 	
             
 	
            $
 	
            5,000
 
	
            Chairperson retainer – Compensation Committee
 	
             
 	
            $
 	
            5,000
 
	
            Chairperson retainer – Nominating and Corporate Governance Committee
 	
             
 	
            $
 	
            3,500
 
	
            Annual grant of restricted Class A common stock to all non-employee directors
 	
             
 	
            $
 	
            87,500
 

 

 

 

_________________________

1 The Chairman of the Board may receive additional compensation as determined by the Compensation Committee.

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