Document:

EMCI 2013.12.31 Ex 10.3.6

EXHIBIT 10.3.6
EMPLOYERS MUTUAL CASUALTY COMPANY
SENIOR EXECUTIVE LONG TERM INCENTIVE PLAN
The Senior Executive Long Term Incentive Plan (LTIP) is a bonus program based on long term Company results that incorporate the criteria and results of the Senior Executive Compensation Bonus Program on a rolling three year basis for calculation purposes.

Purpose:

1.  To provide a motivational tool in the form of compensation to help executives focus on long term results for specific corporate goals and objectives.

2.  To maintain a competitive advantage in terms of recruitment and retention of senior executives.

3.  To provide a mechanism that encourages adequate notice to the Company from senior executives regarding their retirement plans.

4.  To reward superior, long term results.

Eligibility:

All members of the Policy Committee (with the exception of the President of EMC National Life Company) will be eligible for the LTIP if they have been eligible for the Senior Executive Compensation Bonus Program for at least three years.  All vice presidents of Employers Mutual Casualty Company, not covered by a separate program, will be eligible for the LTIP if they have been eligible for the Senior Executive Compensation Bonus Program for the past three years.  In addition, retiring senior executives will be eligible during the year of their retirement and the next two years should bonuses be paid.  Each LTIP bonus will be calculated according to the terms and conditions of the Program and using each executive’s final status as an officer and his or her base salary for the most recent year.

General LTIP Bonus Calculation

The LTIP uses the results of the latest three years Senior Executive Compensation Bonus Program calculations, except that no minimums or maximums are applied for the annual calculations. The results from three years of the Bonus Program are averaged and multiplied by an adjustment factor determined by the EMCC Executive Compensation and Stock Option Committee.

Example:  (Year 1) 25% + (Year 2)  35% + (Year 3)  30% = 30% X .50 (adjustment factor) = 15% X Base Salary                      3

Plan Administration

		
	1.
	 An executive must be in the position of vice president or above a minimum of three years before he/she is eligible for a LTIP bonus payment.

		
	2.
	An executive terminating employment prior to the end of a year is not eligible for any future LTIP payments reflecting that year’s results.

222

		
	3.
	Executives retiring, deceased or disabled will continue eligibility based on a calculation using subsequent year results and based on their final status as an officer according to the following:

		
	A.
	1st payment  X  3/3 after last full year of employment (Y1)

		
	B.
	2nd payment X 2/3 after year Y1 + 1

		
	C.
	3rd payment X 1/3 after year Y1 + 2

		
	4.
	 For those retired, deceased or disabled, the LTIP percentage will be applied to the final full year of base salary.

		
	5.
	If retirement notification is provided 360 days or more in advance, the final two payments will be multiplied by a factor of 1.50.

		
	6.
	If retirement notification is provided 180 days or less in advance, the final two payments will be multiplied by a factor of 1.00.

		
	7.
	For notifications between those two time frames, the multiplying factor will be prorated.

		
	8.
	Deductions for federal and state income taxes, and FICA, if applicable, will be made from each bonus on the basis of IRS regulations.

		
	9.
	Amounts received under the LTIP may not be deferred into the Board and Executive Non-qualified Excess Plan due to IRS limitations.

		
	10.
	The Executive Compensation Committee may, at its discretion, adjust the bonus calculation due to unusual or extenuating circumstances.

		
	11.
	Final calculations for LTIP amounts will be made after “final” A.M. Best industry estimates are released in late March or early April, subject to Committee discretion.

		
	12.
	Due to the long term nature of the LTIP, beneficiary forms will be necessary from each eligible executive.  Failure to submit a beneficiary form will result in a default payment according to the following:

		
	A.
	 Spouse.  The eligible executive’s surviving spouse, and if no surviving spouse, to

		
	B.
	Descendants.  The eligible executive’s children (including adopted children), in equal shares by right of representation (one share for each surviving child and one share for each child who predeceases the eligible executive with living descendents) and if none to

		
	C.
	Parents.  The eligible executive’s surviving parents, in equal shares, and if none to

		
	D.
	Estate.  The eligible executive’s estate.

		
	13.
	If there is a disagreement or misunderstanding regarding the basis for the bonus or in the calculation of the amounts, the decision of the Senior Executive Compensation and Incentive Stock Option Committee will be final.  The Committee may, at its discretion, choose to pay the bonus amount earlier than the “final” A.M. Best estimates of industry results if those final numbers will have little or no impact on the final bonus percentage.

Effective Date
The effective date of the Long Term Incentive Plan will be January 1, 2009, with the first calculation based on the results of the Senior Executive Compensation Bonus Plans for 2007, 2008, and 2009.  Only those executives who have been eligible for the short term bonus plan during those full three years at the end of 2009 will be eligible for the first payment in 2010.

223Ex10.1

Exhibit 10.1

AWARD AGREEMENT - EMPLOYEES
(For Performance Shares Award)

	
					
	To:
	[Insert Name]
	 
	Number:  [Insert Grant Number]
	 

	 
	(Name of Award Recipient)
	 
	 
	 

	 
	 
	 
	Date of Grant:  [Insert Date]
	 

                 
There hereby is granted to you, as a key employee of Invacare Corporation (“Invacare”) or of a subsidiary, an award of XX,XXX performance shares (the “Target Number”).  This award is granted to you pursuant to the Invacare Corporation 2013 Equity Compensation Plan (the “Plan”) and is subject to the terms and conditions set forth below and in the Plan.  This award is granted for valuable future services to be rendered by you to Invacare or a subsidiary. Please acknowledge your acceptance of the terms of this award by signing below.

 /s/ A. Malachi Mixon, III
       A. Malachi Mixon, III
       Chairman of the Board

I.  VESTING AND DELIVERY OF SHARES.  The Performance Period (as defined in the Plan) for the performance shares granted hereunder shall start on January 1, 2014 and end on December 31, 2016.  Subject to your continuous employment with Invacare or a subsidiary (except as provided in the case of your Retirement (as defined in Article II), death or disability) through the final date of the Performance Period (the “Vesting Date”), you will be entitled to receive a number of shares of Invacare common stock (the “Shares”) equal to the number of performance shares that vest based on the levels of achievement of the performance goals set forth in Exhibit A, which may range from 0% to 150% of the Target Number.  To the extent deliverable, the Shares will be delivered to you no later than sixty (60) days following the Vesting Date, subject to any applicable withholding.

II.  TERM OF AWARD. Your award shall not be affected by any temporary leave of absence approved in writing by Invacare and described in Section 1.421-7(h) of the Federal Income Tax Regulations.  If, prior to the Vesting Date, you cease to be an employee for any reason other than Retirement, death or disability, you will forfeit any and all rights you have to the performance shares.  

If you die or become disabled prior to the Vesting Date and while you are an employee, you, or your estate or personal representative, shall become vested in a prorated number of performance shares.  The prorated number of performance shares shall be equal to (a) times (b), in which (a) is the Target Number of performance shares and (b) is (i) the number of completed months between the first day of the Performance Period and the date of your death or termination due to disability divided by (ii) 36.  If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share.  Any Shares to which you (or your estate or personal representative) become entitled pursuant to this paragraph shall be delivered to you (or your estate or personal representative) no later than sixty (60) days following the date of your termination of employment due to disability or death.

If you Retire prior to the Vesting Date, you will be entitled to receive a pro-rata portion of the performance shares based on the level at which performance goals are attained during the Performance Period.  The prorated number of performance shares shall be equal to (a) times (b), in which (a) is the actual number of performance shares that would have otherwise vested, pursuant to Article I, if you had remained employed through the end of the Performance Period and (b) is (i) the number of completed months between the first day of the Performance Period and the date of your Retirement divided by (ii) 36. If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share.  Any Shares to which you become entitled pursuant to this paragraph shall be delivered to you no later than sixty (60) days following the Vesting Date.  For purposes of this Agreement, “Retirement” or “Retire” means a termination of your employment with Invacare or a subsidiary after you have attained either (i) age fifty-five (55) with ten (10) years of service to Invacare or a subsidiary or (ii) age sixty-five (65) with five (5) years of service to Invacare or a subsidiary.

If, prior to the Vesting Date, the Compensation and Management Development Committee of the Board of Directors of Invacare (the “Committee”) finds that you intentionally committed an act materially inimical to the interests of Invacare or a subsidiary, you shall forfeit all of the performance shares as of the time you committed such act, as determined by the Committee.

Revised March 7, 2014

III.  TERMINATION OF AWARD UNDER
CERTAIN CIRCUMSTANCES. The Committee may cancel your award at any time prior to the Vesting Date, in which case you shall forfeit all of the performance shares as of the date of such cancellation, if you are not in compliance with all applicable provisions of this Agreement or the Plan or if you, without the prior written consent of the Committee, engage in any of the following activities:  (i)  you render services for an organization, or engage in a business, that is, in the judgment of the Committee, in competition with Invacare; or (ii) you disclose to anyone outside of Invacare, or use for any purpose other than Invacare's business, any confidential  information or material relating to Invacare, whether acquired by you during or after employment with Invacare, in a fashion or with a result that is or may be injurious to the best interests of Invacare, as determined by the Committee.

The Committee may, in its discretion and as a condition to the continuance of this award, require you to represent in writing that you are in compliance with all applicable provisions of this Agreement and the Plan and have not engaged in any activities referred to in clauses (i) and (ii) above.

IV.  DIVIDEND EQUIVALENTS. The performance shares shall not entitle you to receive any dividends that are paid with respect to Invacare’s common stock prior to the Vesting Date.  Upon the vesting of the performance shares, if any, and the issuance of Shares to you, you shall become entitled to any dividends that are paid with respect to such Shares after the Vesting Date.

V.  TRANSFERABILITY.  This Agreement shall be binding upon and inure to the benefit of any successor of Invacare and your heirs, estate and personal representative.  Your award shall not be transferable other than by will or the laws of descent and distribution. 

VI.  ADJUSTMENTS OR AMENDMENTS.  Subject to Section 4.06 of the Plan, in the event that, subsequent to the date of this Agreement and prior to the Vesting Date, the outstanding common shares of Invacare are, as a result of a stock split, stock dividend, combination or exchange of shares, exchange of other securities, reclassification, reorganization, redesignation, merger, consolidation, recapitalization, liquidation, dissolution, sale of assets or other such change, including, without limitation, any transaction described in Section 424(a) of the Internal Revenue Code (the “Code”), increased, decreased, changed into or exchanged for a different number or kind of shares of stock or other securities of Invacare or another entity or converted into cash, then, except as otherwise provided below, there shall automatically be substituted for each Invacare common share subject to the award, the amount of cash or other securities or property into which each outstanding Invacare common share shall be converted or exchanged. Notwithstanding the preceding provisions of this Paragraph VI, the Committee may, in its sole discretion, make other adjustments or amendments to the securities subject to the award and/or amend the provisions of the Plan and/or this Agreement (including, without limitation, accelerating the date on which performance shares shall vest), to the extent appropriate, equitable and in compliance with the provisions of Sections 409A and 162(m) of the Code to the extent applicable and any such adjustment or amendment shall be final, binding and conclusive.  Any such adjustment or amendment shall provide for the elimination of fractional shares.

VII.  PROVISIONS OF PLAN CONTROL.  This Agreement is subject to all of the terms, conditions and provisions of the Plan (all of which are incorporated herein by reference) and to such rules, regulations, and interpretations related to the Plan as may be adopted by the Committee and as may be in effect from time to time.  In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly.  The Committee has authority to interpret and construe any provision of this Agreement and its interpretation and construction shall be binding and conclusive.

VIII.   LIABILITY.  The liability of Invacare under this Agreement and any distribution of Shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no term or provision of this Agreement shall be construed to impose any liability on Invacare, its officers, employees or any subsidiary with respect to any loss, cost or expense which you may incur in connection with or arising out of any transaction in connection with this Agreement.

IX.  WITHHOLDING.  You agree that, as a condition to your receipt of the Shares upon vesting of the performance shares hereunder, Invacare may make appropriate provision for tax withholding, if required, with respect to the transactions contemplated by this Agreement.  Unless you make other arrangements that are satisfactory to the Committee to cover Invacare’s or its subsidiary’s withholding obligations, at any time that taxes are required to be withheld in connection with the performance shares, Invacare or its subsidiary shall withhold Shares from the Shares otherwise deliverable to you with a Fair Market Value (as defined in the Plan) equal to the amount required to satisfy the minimum tax withholding obligations applicable to you relating to this Agreement.

X. ADJUSTMENT AND RECAPTURE POLICY. You acknowledge that this award and any payment made hereunder is subject to Invacare’s Executive Compensation Adjustment and Recapture Policy.  In addition, you acknowledge that the Plan will be administered in compliance with Section 10D of the Securities Exchange Act of 1934, as amended, any applicable rules or 

Revised March 7, 2014

regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which Invacare’s shares may be traded, and any policy of Invacare adopted pursuant to such law, rules, or regulations. This Agreement may be amended to further such purpose without your consent.

XII. SECTION 409A OF THE CODE.  It is intended that this Agreement and the compensation and benefits hereunder meet the requirements for compliance with, or exemption from, Section 409A of the Code (“Section 409A”), and this Agreement shall be so interpreted and administered.  In addition to the general amendment rights of Invacare with respect to the Plan, Invacare specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Agreement or any related document as it deems necessary or desirable to more fully address issues in connection with exemption from (or compliance with) Section 409A and other laws.  In no event, however, shall this section or any other provisions of this Agreement be construed to require Invacare to provide any gross‐up for the tax consequences of any provisions of, or payments under, this Agreement.  Except as may be provided in another agreement to which Invacare is bound, Invacare and its affiliates shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of this Agreement or the Plan.

ACCEPTANCE

The undersigned hereby accepts the terms of the performance shares award granted herein and acknowledges receipt of a copy of the Invacare Corporation 2013 Equity Compensation Plan.

_________________________        ___________________
(Signature of Award Recipient)            (Date)

    

Revised March 7, 2014

EXHIBIT A

Performance Goals for the 3 year performance measurement period and details about those goals are documented in this Exhibit.

Revised March 7, 2014

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}]]