Document:

EXHIBIT (10)T

 

NON-EMPLOYEE DIRECTOR COMPENSATION AND
BENEFITS SUMMARY

(Revised January 1, 2008)

 

COMPENSATION

 

	
  Annual Payments

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Annual Retainer

  	
   

  	
  $     70,000

  
	
  Committee
  Chair Fee

  	
   

  	
   

  
	
  - Audit

  	
   

  	
  $     15,000 / 7,500 (for other members)

  
	
  -
  Compensation and Finance

  	
   

  	
  $     10,000

  
	
  - Governance
  / Presiding Director

  	
   

  	
  $     15,000

  

 

In addition, a number of shares of stock units are credited annually to
each director’s deferred stock unit account. The Board has fixed the annual
value of the stock units to one-half the value of the annual retainer, or
$35,000.

 

All reasonable travel, telephone and other expenses incurred on behalf
of Ecolab are reimbursable.

 

Directors may choose, at the time of initial election to the Board and
annually thereafter, to have the portions of their compensation which are paid
in cash deferred into an interest bearing deferred account or the stock unit
account.

 

Deferred Accounts

 

Deferred accounts are of two types: (i) stock unit accounts which
are comprised of stock equivalents, which increase/decrease with Ecolab’s stock
price and are credited with dividend equivalents; and (ii) interest-bearing
accounts, which are credited with interest at the prime rate.

 

Deferred accounts for a director are tax deferred until the director
ceases Board service. At that time, the proceeds are paid in a lump sum or in
equal annual installments for up to 10 years depending on the director’s
election, which can be made, generally, as late as one year prior to leaving
the Board for amounts deferred before 2005. Amounts deferred in 2005 or later
must be paid in a lump sum. Amounts deferred to the interest-bearing account,
are paid in cash. Amounts in the stock unit account are paid in Ecolab stock.
Upon death, a lump sum of any remaining amounts will be paid to the director’s
beneficiary.

 

BENEFITS

 

Stock Option Plan

 

Directors receive a non-qualified option to purchase a number of shares
of Common Stock, as fixed from time-to-time by the fair market value on such
date. The right to exercise the option vests on grant. Currently, the Board has
fixed the value of the annual stock option grant at $55,000.

 

 

Options may be exercised for a period of 10 years from grant. However,
in the event a director ceases to be a director, the exercise period is
shortened to the lesser of five years from the date the director terminates
director status or the remaining term of the original option period.

 

Matching Gifts

 

Ecolab will match, up to $1,000 per fiscal year, a director’s
contributions to accredited U.S. educational institutions and an additional
$100 for contributions to qualifying U.S. public radio and television stations.

 

Eligibility for this program continues through the calendar year in
which a director ceases to be a director.

 

Travel Insurance

 

Directors are covered by $150,000 business travel accident coverage
while traveling on Ecolab business.

 

Director Liability Protection

 

·                  The current D&O coverage is $75
million. There is no individual deductible.

 

·                  Ecolab’s Certificate of Incorporation
eliminates the ability of Ecolab or its stockholders to recover monetary
damages resulting from good-faith breaches of certain fiduciary duties by a
director.

 

·                  Directors are entitled to
indemnification by Ecolab for actions as a director taken in good faith and in
a manner reasonably believed to be in, or not opposed to, the best interests of
Ecolab.Exhibit 10.1

SECOND AMENDMENT TO

 

AMENDED AND RESTATED NOTE AND WARRANT PURCHASE
AGREEMENT

 

This Second
Amendment to Amended and Restated Note and Warrant Purchase Agreement (this “Amendment”)
is made effective as of February 19, 2008, by and among Thomas Group, Inc.,
a Delaware corporation (the “Company”), General John T. Chain, Jr.,
an individual (“Chain”), and Edward P. Evans, an individual (“Evans,”
and collectively with Chain, “Purchasers” and each individually, a “Purchaser”),
to amend that certain Amended and Restated Note and Warrant Purchase Agreement
dated as of October 17, 2002 (the “Agreement”).

 

RECITALS

 

WHEREAS,
as of October 17, 2002, the Company and Purchasers entered into the
Agreement;

 

WHEREAS,
effective December 4, 2006, the Company and Purchasers entered into an
amendment to the Agreement;

 

WHEREAS,
Section 5.2(b) of the Agreement provides for certain rights of the
Purchasers with respect to the nomination or designation of directors for
election to the Board of Directors of the Company (the “Board’);

 

WHEREAS,
the Company and Purchasers desire to amend and clarify the rights of Purchasers
to designate individuals to be considered as nominees for election to the Board
and the requirements applicable to such designees; and

 

WHEREAS,
capitalized terms used and not otherwise defined herein shall have the
respective meanings ascribed thereto in the Agreement;

 

NOW THEREFORE, in consideration of the premises set
forth above and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Section 5.2(b) of the
Agreement is hereby amended and restated to read in its entirety as follows:

 

“(b)         Nominating Rights.  Chain shall have the right to designate
nominees to fill three of the five director positions on the Board until the
earlier of (i) the first date on which Chain is no longer the beneficial
owner of at least ten percent of the outstanding Common Stock of the Company or
(ii) the 2009 Annual Meeting.  Chain
agrees that one of his designated nominees will always be the Company’s
then-current Executive Chairman and one of his designated nominees will always
be himself.  If the position of Executive
Chairman is vacant, Chain agrees that one of his designated nominees will be
the Company’s then-current President and Chief Executive Officer.  Evans shall have the right to designate
nominees to fill two of the five director positions on the Board until the

 

 

 

earlier of (i) the
first date on which Evans is no longer the beneficial owner of at least ten
percent of the outstanding Common Stock of the Company or (ii) the 2009
Annual Meeting. Evans agrees that one of his designated nominees will always be
himself.”

 

2.             All
other terms and conditions of the Agreement remain unchanged and in full force
and effect.

 

IN WITNESS WHEREOF, the
parties have executed this Amendment as of the date first above written.

 

 

	
   

  	
  THOMAS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Taylor

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James Taylor

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL JOHN T. CHAIN, JR.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signed:

  	
  /s/ John T.
  Chain, Jr.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EDWARD P. EVANS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signed:

  	
  /s/ Edward P. EvansExhibit 10.2

 

Thomas Group, Inc.

5221 N. O’Connor
Boulevard, Suite 500

Irving, Texas 75039-3714

 

 

 

PRIVATE &
CONFIDENTIAL

 

February 19, 2008

 

Mr. Michael E. McGrath

One Hanover Place

16633 Dallas Parkway

Suite 280

Dallas, Texas  75001

 

Re:  Terms and Conditions of Employment

 

Dear Mr. McGrath:

 

This letter (this “Employment
Letter”) will evidence the terms and conditions relating to your employment by Thomas
Group, Inc. (the “Company”) and appointment to the office of Executive
Chairman.  This Employment Letter shall be
effective as of February 19, 2008 (the “Effective Date”).

 

1.  Terms of Employment

 

(a)                                  Appointment
as Executive Chairman.  You
are being hired by the Company as an officer with the title “Executive
Chairman.”

 

(b)                                 Duties;
Reporting.  You will
have such duties and responsibilities as are established by the Board of
Directors of the Company, commensurate with your position as Executive
Chairman.  Among these duties will be to (i) assist
the Company in recruiting other management members as needed, (ii) focus
on increasing the Company’s revenues and diversifying the Company’s business
and (iii) work closely with the President and CEO of the Company to
develop and implement the Company’s strategy. 
In connection with your employment as provided herein, you are being
appointed to serve as a member of the Board of Directors.  As Executive Chairman, you will report
directly to the Board of Directors of the Company and, at least annually, your
performance will be reviewed by the Board of Directors or the Compensation and
Corporate Governance Committee of the Board of Directors (the “Compensation
Committee”).

 

(c)                                  Time
Commitment.  You shall devote at least 33% of
your business time and energy to your duties as Executive Chairman during the
period beginning on the Effective Date and ending on the first anniversary of
the Effective Date (the “Year One Period”). 
During successive annual periods, you shall devote at least 25% of your
business time and energy to your duties as Executive Chairman.

 

(d)                                 Compensation.  Your base salary for the Year One Period
shall be $330,000 and your base salary for successive annual periods shall be
$250,000.  Your base salary shall be
payable in accordance with the Company’s standard payroll policies and subject
to standard withholdings and deductions.

 

 

 

(e)                                  Employment
Status.  Your employment shall be “at-will.”  Your employment may be terminated by the
Company by action of the Board of Directors at any time and for any or no
reason.  Your employment may be
terminated by you with 30 days’ prior written notice to the Board of Directors.  Upon your termination of employment, you will
tender your resignation as a member of the Board of Directors of the Company.

 

2.  Share Awards; Bonus and other Benefits

 

(a)                                  Share
Awards.  No later than 15 business days
following the execution of this Employment Letter, the Compensation Committee
shall convene a meeting to consider appropriate equity-based awards to be
granted to you under the 2005 Omnibus Stock and Incentive Plan of the Company
(the “2005 Plan”).  As a condition to the
issuance of shares under such awards, you agree to make such representations,
warranties and undertakings and execute such agreements, instruments and other
documents as the Company may deem necessary or advisable to assure compliance
with any law or regulation.

 

(b)                                 Restrictions
on Shares.  In addition
to any transfer restrictions set forth in the awards referenced above or in any
other applicable agreement, you will not be permitted to sell any shares of the
Company’s common stock that you receive, except (i) in compliance with
Company policies applicable to the Company’s directors and executive officers
and (ii) in compliance with applicable securities laws.

 

(c)                                  Annual
Bonus.  For each calendar year that
you are employed hereunder, beginning in 2008, you will be eligible to receive
an annual performance bonus upon achievement of such performance objectives as are
established during the first quarter of the applicable year by the Compensation
Committee and communicated to you.  The
target amount for your annual performance bonus for calendar 2008 and for each calendar
year thereafter shall be $200,000 (subject to pro rata reduction in 2008 based
on the number of days in 2008 after the Effective Date divided by 366).  Any bonus payment shall be made in accordance
with the policies established from time to time by the Compensation Committee
and shall be subject to standard withholdings and deductions.

 

(d)                                 Benefits.  You will be entitled to participate in all
employee benefit, fringe and perquisite plans, practices, programs, policies
and arrangements generally provided to executives of the Company at a level
commensurate with your position.

 

(e)                                  Business
Expenses.  The Company
will reimburse you for the travel, entertainment and other business expenses
incurred by you in the performance of your duties in accordance with the
Company’s policies applicable to senior executives as in effect from time to
time.  The Company acknowledges that you
intend to travel by commercial airline between your home in Maine and Dallas,
Texas on frequent occasions while employed by the Company and, with respect to
such travel, the Company agrees to reimburse you for the actual cost of first-class
commercial airline fares for such travel, not to exceed $30,000 in any 12-month
period.  Reimbursement for such travel
will be made in accordance with the Company’s regular expense reimbursement
processes following presentment of documentation therefor.

 

(f)                                    Termination.  Upon termination of your employment, the
Company will pay you: (i) any earned but unpaid annual base salary through
the date of termination, (ii) any earned but unpaid annual 

 

2

 

bonus for any preceding year, as determined
in good faith by the Compensation Committee, (iii) any unreimbursed business
expenses and (iv) any other amounts due under the terms of any of the
Company’s benefit plans.  All such payments
shall be subject to standard withholdings and deductions.

 

3.  Miscellaneous Terms

 

(a)                                  Indemnification
and Employee Representations.  The Company will indemnify you to the fullest
extent permitted by law and the Company’s Certificate of Incorporation as in
effect as of the Effective Date with respect to your activities on behalf of the
Company.

 

It is the policy and practice of the Company
to reasonably ensure that the Company and all new employees honor the terms of
any reasonable post-employment restrictions contained in agreements with prior
employers of such new employees.  Furthermore,
you will never be asked to share, utilize or disclose in any way the
proprietary or confidential information of a prior employer as part of your
duties on behalf of the Company.  You
agree to promptly notify the Board of Directors if you find yourself in a
position of possibly violating your contractual agreement(s) with prior
employers.

 

You will be covered under the Company’s
D&O liability insurance on the same basis as other directors and senior
level executives of the Company.

 

(b)                                 Confidential
Information.  The Company
agrees to provide you with specialized knowledge and training regarding the
business in which the Company is involved, and to provide you with initial and
ongoing confidential information and trade secrets of the Company (“Confidential
Information”).  For purposes of this
Employment Letter, Confidential Information includes: information regarding the
use and application of Total Cycle Time methodologies and other information and
concepts developed by the Company to improve the business processes of
corporations and other organizations; software or other technology developed by
the Company and any research data or other documentation related to the
development of such software/technology; client lists and prospects lists developed
by the Company; information regarding the Company’s clients which you acquire
as a result of employment with the Company, including client contracts, work
performed for clients, client contacts, client requirements and needs, data
used by the Company to formulate client bids, client financial information, and
other information regarding the client’s business; information related to the
Company’s business, including but not limited to marketing strategies and
plans, sales procedures, operating policies and procedures, pricing and pricing
strategies, business plans, sales, profits, and other business and financial
information of the Company; training materials developed by and utilized by the
Company; and any other information which you acquire as a result of your
employment with the Company and which you have a reasonable basis to believe
the Company would not want disclosed to a business competitor or to the general
public.

 

You understand and acknowledge that such
Confidential Information gives the Company a competitive advantage over others
who do not have this information, and that the Company would be harmed if the
Confidential Information were disclosed. 
You agree that you will hold all Confidential Information in trust and
will not use the information for any purpose other than the benefit of the
Company, or disclose to any person or entity any Confidential Information
except as necessary during your employment with the Company to perform services
on behalf of the 

 

3

 

Company. You will also take reasonable steps
to safeguard such Confidential Information and prevent its disclosure to
unauthorized persons.

 

(c)                                  Intellectual
Property.  All
intellectual property owned or created by you prior to, during, or after the
expiration of this agreement (except for intellectual property created during
the term of this agreement specifically for the Company or the Company’s
clients, including but not limited to any such inventions, processes, manuals,
articles or other materials utilized by the Company in the conduct of its
business or provided by the Company to its clients in the course of providing
services to such clients, all of which, as between the Company and you, shall
be owned by the Company and are hereby assigned to the Company) shall be your
exclusive property and may be utilized by you in any manner consistent with
paragraph 3(b) above.  This includes
literary, television, video, internet, training, software and related
properties and also encompasses all underlying and associated copyright,
trademark, and publicity right interests. 
Any other treatment of your intellectual property rights hereunder must
be conferred by a separate written agreement, including any work made for hire
or other property with title that may vest in the Company.  The foregoing shall not be deemed to convey
any rights in the Company’s intellectual property, including any rights to
create derivative works of the Company’s intellectual property.

 

(d)                                 Amendments;
Choice of Law.  This
Employment Letter can be amended only in writing signed by both you and the
Company.  The terms and conditions of
this Employment Letter shall be governed by and construed in accordance with
the internal laws of the State of Texas.

 

(e)                                  Notices.  For the purpose of this Employment Letter,
notices and all other communications provided for in this Employment Letter
shall be in writing and shall be deemed to have been duly given when delivered
personally or by overnight service or delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed to the Company at its executive office or to you at the address on
the records of the Company (provided that all notices to the Company shall be
directed to the attention of the Chairman of the Compensation Committee) or to
such other address as either party may have furnished to the other in writing
in accordance herewith, except that notice of change of address shall be
effective only upon receipt.

 

(f)                                    Survival;
Waiver and Counterparts.  If
any provision of this Employment Letter or any portion thereof is declared
invalid, illegal, or incapable of being enforced by any court of competent
jurisdiction, the remainder of such provisions and all of the remaining provisions
of this Employment Letter shall continue in full force and effect.  Failure to insist upon strict compliance with
any of the terms, covenants, or conditions of this Employment Letter shall not
be deemed a waiver of such term, covenant, or condition, nor shall any waiver
or relinquishment of, or failure to insist upon strict compliance with, any
right or power hereunder at anyone or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.  This Employment Letter may be executed in
several counterparts, each of which shall be deemed to be an original but all
of which together will constitute one and the same instrument.

 

(g)                                 Section 409A.  It is intended that this Employment Letter
will comply with Section 409A of the Internal Revenue Code and this
Employment Letter shall be interpreted in a manner consistent with such intent.  If any provision of this Employment Letter
(or of any award of compensation, including deferred compensation or benefits)
would cause you to incur any additional tax or interest under Section 409A
or any regulations or Treasury guidance promulgated thereunder, the Company
shall reform such provision; provided that the Company agrees to maintain, to
the 

 

4

 

maximum extent practicable and without
additional cost to the Company, the original intent and economic benefit to you
of the applicable provision without violating the provisions of Section 409A;
provided, further, in no event shall you be required to defer the date on which
you are entitled to receive any payment or benefit hereunder for a period in
excess of six months.

 

(h)                                 Entire
Agreement.  The items
in this Employment Letter and the other items referred to above represent the
Company’s and your entire agreement with respect to the terms and conditions of
your employment following the Effective Date. 
Any contrary representations that may have been made to you at any time
are superseded by this Employment Letter. 
By signing below, you agree to the terms and conditions of employment
specified in this Employment Letter and the accompanying documents.

 

If you agree that the
foregoing terms and conditions accurately evidence our agreement concerning
your employment after the Effective Date, please sign and return this
Employment Letter.

 

Very truly yours,

 

	
  /s/ David B. Mathis

  	
   

  
	
   

  	
   

  
	
  David B. Mathis

  	
   

  
	
  Chairman, Compensation and
  Corporate Governance Committee

  	
   

  
	
  Thomas Group, Inc.

  	
   

  

 

	
   

  	
   

  	
   

  	
  ACCEPTED:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Michael E. McGrath

  
	
   

  	
   

  	
   

  	
  Michael E. McGrath

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]