Document:

r08032009103.htm

RESTRICTED STOCK GRANT AGREEMENT

THIS AGREEMENT, by and between TWIN DISC, INCORPORATED (the “Company”) and ______________________ (the “Employee”) is dated this 3rd day of August 2009.

 

WHEREAS, the Company adopted a Long Term Incentive Compensation Plan in 2004, as amended in 2006 (the “Plan”), whereby the Compensation Committee of the Board of Directors (the “Committee”) is authorized to award shares of common stock of the Company to officers and key employees carrying restrictions such as a
prohibition against disposition and establishing a substantial risk of forfeiture; and

WHEREAS, the Committee has determined it to be in its best interests of the Company to provide the Employee with an inducement to acquire or increase his equity interest in the Company.

 

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements herein set forth, the parties hereto agree as follows:

 

1. Stock Grant.  Subject to the terms of the Plan, a copy of which has been provided to the Employee and is incorporated herein by reference, the Company grants
to the Employee _________ shares of the common stock of the Company, subject to the terms and conditions and restrictions set forth below.

 

If at any time while this Agreement is in effect (or shares of common stock granted hereunder shall be or remain unvested while Employee’s employment continues and has not yet terminated or ceased for any reason), there shall be any increase or decrease in the number of issued and outstanding shares of the Company through the declaration
of a stock dividend or through any recapitalization resulting in a stock split-up, combination or exchange of such shares, then the Committee shall make any adjustments it deems fair and appropriate (in view of such change) in the number of shares of common stock then subject to this Agreement.  If any such adjustment shall result in a fractional share, such fraction shall be disregarded.

 

2. Fair Market Value.  The fair market value of the shares granted was Eight and 89/100 Dollars ($8.89) per share on the date of grant.

 

3. Price Paid by Employee.  The price to be paid by the Employee for the shares granted shall be         No          Dollars
($ 0.00) per share.

 

4. Transferability.  For a period of three (3) years from the date of grant the shares granted shall not be subject to sale, assignment, pledge or other transfer
of disposition by the Employee, except as provided in Sections 6 or 7, or except by reason of an exchange or conversion of such shares because of merger, consolidation, reorganization or other corporate action.  Any shares into which the granted shares may be converted or for which the granted shares may be exchanged in a merger, consolidation, reorganization or other corporate action shall be subject to the same transferability restrictions as the granted shares.

 

On the third anniversary of the date of grant, one hundred percent (100%) of the shares granted shall become freely transferable.

 

5. Forfeitability.  Except as provided in Section 6 of this Agreement, if the employment of the Employee shall terminate prior to the expiration of three (3) years
from the date of grant other than by reason of death or permanent disability, the shares granted (or any shares into which they may have been converted or for which they may have been exchanged) shall be forfeited.  If the Employee continues to be employed on the third anniversary of the date of grant, the shares shall become non-forfeitable.

 

6. Termination Following Change in Control.  Notwithstanding Sections 4 and 5 of this Agreement, if an event constituting a Change in Control of the Company occurs
and the Employee thereafter either terminates employment for Good Reason or is involuntarily terminated by the Company without cause, the transferability provisions and the forfeitability provisions shall immediately cease to apply.  Employee’s continued employment with the Company, for whatever duration, following a Change in Control of the Company shall not constitute a waiver of his or her rights with respect to this Section 6. Employee's right to terminate his or her employment pursuant to
this Subsection shall not be affected by his or her incapacity due to physical or mental illness.  For purposes of this Section 6:

 

	
  
	
(a)
	
“Good Reason” shall mean any of the following, without the Employee’s written consent:

	
  
	
(i)
	
the assignment to Employee of duties, responsibilities or status that constitute a material diminution from his or her present duties, responsibilities and status or a material diminution in the nature or status of Employee's duties and responsibilities from those in effect as of the date hereof;

	
  
	
(ii)
	
a material reduction by the Company in Employee's base salary as in effect on the date hereof or as the same shall be increased from time to time ("Base Salary");

	
  
	
(iii)
	
a material change in the geographic location at which the Employee must provide services; or

	
  
	
(iv)
	
a material change in or termination of the Company’s benefit plans or programs or the Employee’s participation in such plans or programs (outside of a good faith, across-the-board reduction of general application) in a manner that effectively reduces their aggregate value.

	
  
	
(b)
	
“Change in Control of the Company” shall be deemed to occur in any of the following circumstances:

	
  
	
(i)
	
if there occurs a change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) whether or not the Company is then subject to such reporting requirement;

	
  
	
(ii)
	
if any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act) other than Michael Batten or any member of his family (the “Batten Family”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's
then outstanding securities;

	
  
	
(iii)
	
if during any period of two (2) consecutive years (not including any period prior to the execution of this Agreement) there shall cease to be a majority of the Board comprised as follows:  individuals who at the beginning of such period constitute the Board and any new director(s) whose election by the Board or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved; or

	
  
	
(iv)
	
if the shareholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 80% of the combined voting power of
the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all the Company's assets.

(c)           To constitute a termination for Good Reason hereunder:

	
  
	
(i)
	
Termination of employment must occur within two years following the existence of a condition that would constitute Good Reason hereunder; and

	
  
	
(ii)
	
Employee must provide notice to the Company of the existence of a condition that would constitute Good Reason within 90 days following the initial existence of such condition.  The Company shall be provided a provided a period of 30 days following such notice during which it may remedy the condition.  If the condition is remedied, the Employee’s subsequent voluntary termination of employment
shall not constitute termination for Good Reason based upon the prior existence of such condition.

7. Death/Disability.  Upon the death or permanent disability of the Employee while employed by the Company the transferability provisions and the forfeitability
provisions shall cease to apply.  Whether the Employee shall be considered permanently disabled for purposes of this Plan shall be conclusively determined by the Committee.

 

8. Rights of Shareholder.  Upon the date of issuance of certificates for shares granted, the Employee shall otherwise have all the rights of a shareholder including
the right to receive dividends and to vote shares.  Cash and stock dividends shall be payable to the Employee as they are paid by the Company, even if the restrictions on the shares to which such dividends relate have not yet lapsed.  The certificates representing such shares shall be held by the Company for account of the Employee, and shall be delivered to the Employee as and when the shares represented thereby become non-forfeitable.

 

9. Section 83(b) Election.  The Employee acknowledges that:  (1) the stock granted pursuant to the Plan and this Agreement is restricted property
for purposes of Section 83(b) of the Internal Revenue Code and that the shares granted are subject to a substantial risk of forfeiture as therein defined until the year in which such shares are no longer subject to a substantial risk of forfeiture; and (2) that the Employee may make an election to include the fair market value of the shares in income in the year of the grant in which case no income is included in the year the shares are no longer subject to a substantial risk of forfeiture.  Responsibility
for determining whether or not to make such an election and compliance with the necessary requirements is the sole responsibility of the Employee.

 

10. Restrictions on Transfer.  The Employee agrees for himself and his heirs, legatees and legal representatives, with respect to all shares granted hereunder
(or any securities issued in lieu of or in substitution or exchange therefore) that such shares will not be sold or transferred except pursuant to an effective registration statement under the Securities Act of 1933, as amended, or until the Company is provided with an opinion of counsel that a proposed sale or transfer will not violate the Securities Act of 1993, as amended.  The Employee represents that such shares are being acquired for the Employee’s own account and for purposes of investment,
and not with a view to, or for sale in connection with, the distribution of such shares, nor with any present intention of distributing such shares.

 

11. Employment Status.  Neither this Agreement nor the Plan impose on the Company any obligation to continue the employment of the Employee.

 

         TWIN DISC, INCORPORATED

        

            By:        ____________________________________

         Its:        ____________________________________

         EMPLOYEE:

         __________________________________________

         [NAME]

 

 

 

Exhibit 10 3 - Restricted Stock Grant Agreement.DOCexhibit41.htm

    AMENDMENT
NO. 2 TO RIGHTS AGREEMENT

    

    THIS
AMENDMENT NO. 2 TO RIGHTS AGREEMENT (“Amendment No. 2”) is dated as
of the 5th day of August, 2009, by and between Checkpoint Systems, Inc., a
Pennsylvania corporation (the “Company”), and American Stock
Transfer & Trust Company, LLC, a New York limited liability trust company
(formerly American Stock Transfer & Trust Company) (the “Rights Agent”).

     

    WHEREAS,
the Company and the Rights Agent are parties to that certain Rights Agreement,
dated as of March 10, 1997, as amended by that certain Amendment No. 1 to Rights
Agreement, dated as of March 2, 2007 (as so amended, the “Rights
Agreement”);

     

    WHEREAS,
the Board of Directors of the Company has considered and discussed the corporate
governance implications of certain provisions of the Rights Agreement that
require approval of Continuing Directors (as defined in the Rights Agreement)
for actions of the Board of Directors of the Company under the Rights
Agreement;

     

    WHEREAS,
the Company and the Rights Agent desire to amend the Rights Agreement to, among
other things, remove the Continuing Director provisions; and

     

    WHEREAS,
following such consideration and discussion, the Board of Directors of the
Company has authorized this Amendment No. 2;

     

    NOW,
THEREFORE, in consideration of the premises and mutual agreements set forth in
the Rights Agreement and this Amendment No. 2, the parties, intending to be
legally bound, hereby agree as follow:

     

    1. Amendment to Section
11(n).  Section 11(n) of the Rights Agreement is hereby amended
and restated in its entirety to read as follows:

     

    “n.           In
the event that the Rights become exercisable following a Section 11(a)(ii)
Event, the Company, by action of the Board of Directors, may permit the Rights,
subject to Section 7(e), to be exercised for 50% of the Common Shares (or cash,
other securities or property) that would otherwise be purchasable under Section
11(a), in consideration of the surrender to the Company of the Rights so
exercised and without other payment of the Purchase
Price.  Notwithstanding the foregoing, the Board of Directors of the
Company shall not be empowered to permit such exercise at any time after any
Acquiring Person shall have become the Beneficial Owner of 50% or more of the
Common Shares then outstanding.  Rights exercised under this Section
11(n) shall be deemed to have been exercised in full and shall be
canceled.”

     

    2. Amendment to Section
13(e).  Section 13(e) of the Rights Agreement is hereby amended
and restated in its entirety to read as follows:

     

    “e.           Notwithstanding
anything herein to the contrary, Section 13 shall not be applicable to a
transaction described in Section 13(a)(x) or (y) if such transaction has
received the approval of the Board of Directors of the Company prior to any
Person becoming an Acquiring Person.”

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3. Amendment to Section
25(a).  Section 25(a) of the Rights Agreement is hereby amended
and restated in its entirety to read as follows:

     

    “a.           Subject
to paragraph (c) of this Section 25, the Board of Directors of the Company may,
at its option, after the occurrence of a Section 11(a)(ii) Event, exchange all
or part of the then outstanding and exercisable Rights (which shall not include
Rights that have become void pursuant to the provisions of Section 7(e) hereof)
for Common Shares at an exchange ratio of one Common Share per Right,
appropriately adjusted to reflect any stock split, stock dividend,
reclassification or similar transaction occurring after the date hereof (such
exchange being hereinafter referred to as the “Exchange” and such exchange
ratio being hereinafter referred to as the “Exchange
Ratio”).  Notwithstanding the foregoing, the Board of Directors
of the Company shall not be empowered to effect such exchange at any time after
any Acquiring Person shall have become the Beneficial Owner of 50% or more of
the Common Shares then outstanding.  From and after the occurrence of
an event specified in Section 13(a), any Rights that theretofore have not been
exchanged pursuant to this Section 25(a) shall thereafter be exercisable only in
accordance with Section 13 and may not be exchanged pursuant to this Section
25(a).  The exchange of the Rights by the Board of Directors may be
made effective at such time, on such basis and with such conditions as the Board
of Directors in its sole discretion may establish.  Without limiting
the foregoing, prior to effecting an exchange pursuant to this Section 25, the
Board of Directors may direct the Company to enter into a Trust Agreement in
such form and with such terms as the Board of Directors shall then approve (the
“Trust
Agreement”).  If the Board of Directors so directs, the Company
shall enter into the Trust Agreement and shall issue to the trust created by
such agreement (the “Trust”) all of the Common
Shares issuable pursuant to the exchange (or any portion thereof that have not
theretofore been issued in connection with the exchange).  From and
after the time at which such Common Shares are issued to the Trust, all
stockholders then entitled to receive Common Shares pursuant to the exchange
shall be entitled to receive such Common Shares (and any dividends or
distributions made thereon after the date on which such Common Shares are
deposited in the Trust) only from the Trust and solely upon compliance with the
relevant terms and provisions of the Trust Agreement.  Any Common
Shares issued at the direction of the Board of Directors in connection herewith
shall be validly issued, fully paid and nonassessable Common Shares, and the
Company shall be deemed to have received as consideration for such issuance a
benefit having a value that is at least equal to the aggregate par value of the
shares so issued.”

     

    4. Amendment to Section
30.  Section 30 of the Rights Agreement is hereby amended and
restated in its entirety to read as follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Section
30.                                Determination and Actions by
the Board of Directors.  The Board of Directors of the Company
shall have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board of Directors or
to the Company, or as may be necessary or advisable in the administration of
this Agreement, including, without limitation, the right and power to (i)
interpret the provisions of this Agreement, and (ii) make all calculations and
determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not to redeem the Rights
pursuant to Section 24 hereof, to exchange or not to exchange the Rights
pursuant to Section 25 hereof or to supplement or amend the Agreement). All such
actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing) shall
be presumed to have been done or made by the Board of Directors of the Company
in good faith and shall (x) be final, conclusive and binding on the Company, the
Rights Agent, the holders of the Rights and all other parties, and (y) not
subject the Board of Directors to any liability to the holders of the
Rights.”

     

    5. Amendment to Section
32.  Section 32 of the Rights Agreement is hereby amended and
restated in its entirety to read as follows:

     

    “Section
32.                                Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.”

    

    6. Amendment to Exhibit
B.  Exhibit B to the Rights Agreement is hereby amended by
adding the following sentence at the end of the sixth paragraph of Exhibit
B:

     

    “The Board of Directors of the Company
may not exchange the rights at any time after any Acquiring Person has become
the Beneficial Owner of 50% or more of the Common Shares.”

     

    7. References to
“Agreement”.  The term “Agreement” as used in the
Rights Agreement shall be deemed to refer to the Rights Agreement as amended by
Amendment No. 1, dated March 2, 2007, and as further amended by this Amendment
No. 2.

     

    8. Effectiveness.  This
Amendment No. 2 shall be effective as of the date hereof and, except as set
forth herein, the Rights Agreement shall remain in full force and effect and
shall be otherwise unaffected hereby.

     

    9. Counterparts.  This
Amendment No. 2 may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

     

    Signature
page follows.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to be duly
executed as of the day and year first above written.

    
      
        	 ATTEST:	 	 	 CHECKPOINT
      SYSTEMS, INC.	 
	
                /s/
      Raymond D. Andrews

              	 	 	
                /s/
      John R. Van Zile

              	 
	
                Name:  
      Raymond D. Andrews

              	 	 	
                Name:
       John R. Van Zile

              	 
	
                Title:    
      Senior Vice President and Chief Financial Officer

              	 	 	
                Title:  
      Senior Vice President, General Counsel and Secretary

              	 

      

      
        	 	 	 	 	 
	
                 

                ATTEST:

              	 	 	 
      
                AMERICAN
      STOCK TRANSFER & TRUST
      COMPANY, LLC

              	 
	
                /s/
      Susan Silber

              	 	 	
                /s/
      Herbert Lemmer

              	 
	
                Name:  
      Susan Silber

              	 	 	
                Name:  
      Herbert Lemmer

              	 
	
                Title:    
      Assistant Secretary

              	 	 	
                Title:    
      Vice President

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