Document:

magex10-5_20101003.htm

EXHIBIT 10.5

Magnetek, Inc.

 

Restricted Stock Award Agreement

(“Incentive Stock Document”)

(Form Restricted Stock Award Agreement Retention Based)

 

 FOR GOOD AND VALUABLE CONSIDERATION, MAGNETEK, INC., a Delaware corporation, hereby grants to the Grantee named below, an award of restricted $0.01 par value Common Stock (the “Restricted Stock”), upon the terms and subject to the conditions set forth in this Restricted Stock Award Agreement (the “Agreement”).  The award is granted pursuant to the Second Amended and Restated 2004 Stock Incentive Plan of Magnetek, Inc., November 5, 2009 (the “Plan”) and is subject to the terms and conditions of the Plan, which are incorporated herein by reference.  In the event of any conflict between the provisions of this Agreement and the provisions of the Plan, the terms of the Plan shall control, except as expressly stated otherwise in this Agreement. The Committee, as defined in the Plan, shall have the authority to interpret this Agreement and may change or modify its terms, subject to the terms of the Plan.

 

	
Grantee:

	  
	  	  
	
Number of Shares

Awarded:

	  
	
*Subject to restrictions in

  the Plan and this Agreement

	  
	  	  
	
Date of Award:

	  
	  	  
	
Vesting:

	
Your rights in and to the Restricted Stock shall not be vested as of the  Date of the Award and shall be subject to the forfeiture provisions set forth below unless and until otherwise vested pursuant to the terms of this Agreement. Provided that you remain continuously employed by the Company through [vesting date], 100% of the Restricted Stock will vest on [vesting date]. There are no other vesting requirements for these shares.

	  	  
	
Restrictions:

	
Until the Restricted Stock vests, it shall not be liable for any of your debts, contracts or obligations nor is it subject to transfer, sale, pledge, encumbrance, assignment or any other means of disposition, whether voluntary, involuntary or by operation of law as a result of a judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy). Any attempted disposition of the Restricted Stock prior to vesting shall be null and void and of no effect; provided, however, that nothing in this section shall prevent a transfer by will or by the applicable laws of descent and distribution, except as limited by the Plan.

 

	
Forfeiture:

	
In the event that your employment is terminated voluntarily or you have given notice of your intent to terminate your employment prior to the above vesting date, all of the Restricted Stock awarded to you under this Agreement will be forfeited. In the event your employment is involuntarily terminated prior to the above vesting date, all of the Restricted Stock awarded to you under this Agreement will be forfeited unless the Committee, in its sole and absolute discretion, elects to accelerate the vesting of some or all of the Restricted Stock awarded under this Agreement. In the event that your employment is terminated as a result of a “Change of Control”, as defined in Section 13.2 of the Plan, your rights with respect to the Restricted Stock awarded pursuant to the retention-based award shall accelerate and vest in full upon the Change of Control.

	  	  
	
Stockholder Status;

Voting:

	
From and after the Grant Date, you will be recorded as a shareholder of the Company with respect to the shares of Restricted Stock (whether vested or unvested) and shall have voting rights with respect to such shares unless and until any such shares are forfeited pursuant to this Agreement or transferred back to the Company.

	  	  
	
Dividends:

	
From and after the Grant Date and unless and until the Shares are forfeited pursuant to this Agreement or otherwise transferred back to the Company, you will be entitled to receive all dividends and other distributions paid with respect to the Restricted Stock, if any. Dividends payable by the Company to public stockholders in cash shall, with respect to any unvested shares of Restricted Stock, be paid in cash on or about the date such dividends are payable to public stockholders, subject to any applicable tax withholding requirements.

	  	  
	
Transferability:

	
Neither the Restricted Stock award, nor any interest in the award, are transferable, subject to the provisions of Section 11.1 of the Plan.

  

  

  

	
 Payment of Withholding

Taxes:

	
If at any time the Company becomes obligated to withhold any amount for federal, state or local taxes imposed as a result of the grant of this Restricted Stock to you, including, without limitation, any employment tax, income tax, F.I.C.A., or state disability insurance (the date upon which the Company becomes so obligated shall be referred to herein as the “Withholding Date”), then you shall pay any such tax liability, in cash or by check with immediately available funds, to the Company on or before the Withholding Date or shall assign to the Company from the proceeds of any agreed upon sale of Restricted Stock the amount necessary to pay the tax liability. Execution of this Agreement constitutes your authorization and consent to the Company withholding the full amount of any tax liability from compensation or other amounts due and otherwise payable to you in the event that you do not pay the tax liability to the Company on or before the Withholding Date or assign to the Company sufficient proceeds from a sale of Restricted Stock to pay the tax liability and you further agree that any such withholding and payment of any tax liability by the Company to the relevant taxing authority shall constitute full satisfaction of the Company’s obligation to pay such compensation or other amounts to you.

 

In addition to the foregoing, all or any portion of the taxes required to be withheld by the Company in connection with the exercise, vesting, settlement or transfer of any Restricted Stock award, may, at your election, be paid by the Company by withholding shares of the Company’s capital stock otherwise issuable or subject to the Restricted Stock Award, having a fair market value equal to the amount required or elected to be withheld or paid.  Any such election is subject to such conditions or procedures as may be established by the Committee and may be subject to disapproval by the Committee.

	  	  
	
Taxable Income and

Section 83(b) Election:

	
You understand that the taxable income recognized by you as a result of the award of Restricted Stock pursuant to this Agreement, and the overall tax liability and Withholding Date would be affected by your decision within 30 days of the Grant Date to make an election under Section 83(b) of the United States Internal Revenue Code (an “83(b) Election”). You understand and agree that it is your sole responsibility to decide whether to make an 83(b) Election with respect to the award of Restricted Stock and for properly making the election and filing the proper form with the relevant taxing authorities on a timely basis. You acknowledge and agree that you have not and will not rely on the Company for advice in connection with this decision and you further acknowledge that the Company has advised you to contact your own tax advisor to discuss the desirability of making an 83(b) Election with respect to this grant. You further agree that it is your responsibility to timely notify the Company of your decision and to immediately submit to the Company a signed copy of any 83(b) Election form that you file with respect to this grant of Restricted Stock and to pay applicable withholding taxes to the Company at the time that the 83(b) Election is filed.

  

  

  

	
 Escrow:

	
Until the Restricted Stock vests, the record address of the holder of record shall be “c/o the Secretary of Magnetek, Inc.” at the address of the Corporate Offices of the Company. The stock will be held in escrow in the custody of the Secretary of the Company and shall contain the following legend: “THE TRANSFER AND REGISTRATION OF TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AS PROVIDED IN A RESTRICTED STOCK AGREEMENT DATED AS OF [DATE] BY AND BETWEEN MAGNETEK, INC. AND [NAME].” After the stock vests, you are entitled, provided you have paid any tax liability, to receive the certificate representing the Restricted Stock, which shall no longer contain the above legend.

	  	  
	
No Employment Rights:

	
This Agreement does not confer upon you any right to continue in the employment of Magnetek, Inc. or any of its subsidiaries or affiliates, nor does it affect the Company’s right to terminate your employment, with or without cause, or confer any right upon you to participate in any welfare or benefit plan of the Company.

 

 

 

	
  

	
 

	
MAGNETEK, INC.

	  	
GRANTEE

	  	  	  	  
	
By:

	  	  	  
	  	
[Name & Title]

	  	
Name:

	  	  	  	  
	  	  	  	  
	
By:

	  	  	  
	  	
[Name & Title]

	  	
AddressWebFilings | EDGAR view

Exhibit 10.1
AMENDMENT NO. 4
TO
THE NORTH AMERICAN COAL CORPORATION
VALUE APPRECIATION PLAN FOR YEARS 2006 TO 2015
 
 
The North American Coal Corporation, a Delaware corporation, hereby adopts this Amendment No. 4 to The North American Coal Corporation Value Appreciation Plan for Years 2006 to 2015 (the “Plan” or “VAP”). Words and phrases used herein with initial capital letters which are defined in the Plan are used herein as so defined. Except as otherwise described herein, the provisions of this Amendment shall be effective November 15, 2010 (the “Effective Date”).
 
Section 1
 
Effective as of January 1, 2006, Section 3(l) is hereby amended in its entirety to read as follows:
 
“(l) Separation From Service” means, with respect to any Participant's relationship with the Employers and their affiliates, a separation from service as defined in Code Section 409A (and the regulations and guidance issued thereunder). A Participant's “vacation pay-through” days shall not extend the date of a Participant's Separation From Service under the Plan.” 
 
Section 2
 
The first paragraph of Section 6.1 of the Plan is hereby amended in its entirety to read as follows:
 
“6.1    Awards. As to each Award under this Plan, the Committee shall determine and approve (a) the VAP Target Amount that may be awarded for each Salary Grade, (b) the employees to whom VAP Amounts are to be awarded and (c) the VAP Amount to be awarded to each individual employee. Except as otherwise provided on Exhibit C hereto, (i) all Awards under this Plan shall be credited to a Participant's Account as of the January 1 of the year in which the Award is approved by the Committee and (ii) each Award shall vest and the amount represented thereby shall be payable upon the terms and conditions set forth in Section 6.2.”
        
Section 3
 
Section 6.2 of the Plan is hereby amended by adding the following new Subsection (f) to the end thereof, to read as follows:
 
“(f) Each of the foregoing provisions of this Section 6.2 is hereby subject to the provisions of Exhibit C hereto in respect of the Liberty Fuels Kemper County IGCC Project only. In furtherance of, but without limiting, the foregoing, in the event of any inconsistency between the provisions of this Section 6.2 and the provisions of Exhibit C, the provisions of Exhibit C shall control.”
 
Section 4
 
Section 6.3 of the Plan is hereby amended in its entirety to read as follows:
 
“6.3    Forfeiture/Account Adjustments/Recoupment. Notwithstanding anything to the contrary contained in this Plan:
 

(a) Prior to Payment.
 
		
	(i)    
	In the event a Participant shall intentionally commit an act materially adverse to the interests of the Employers or that materially disrupts, damages, impairs or interferes with the business of the Company and its affiliates, and the Board of Directors of the Company or the Committee shall so find, all outstanding Awards (if any) shall be deemed to have terminated at the time of such act and his interest in his VAP Account shall immediately be terminated and forfeited.

 
		
	(ii)    
	The Committee shall have the sole and absolute discretion to reduce (or eliminate) all or any portion of a Participant's interest in his VAP Account (whether vested or not vested, including amounts provided on Exhibit C hereto), in the event the Committee makes an adjustment under Section 9(e) hereof.

 
(b) After Payment. The Employers may recover all or a specified portion of any Award paid after the Effective Date under the Plan (i) in the event of an adjustment under Section 9(e) hereof or (ii) in the event the Participant, either during employment with the Employers or within two years after termination of such employment, commits an act materially adverse to the interests of the Employers or that materially disrupts, damages, impairs or interferes with the business of the Company and its affiliates. The Committee shall make written demand to the Participant requiring such repayment. Any amount to be repaid pursuant to this Section 6.3(b) shall be held by the Participant in constructive trust for the benefit of the Employer and paid by the Participant to the Employer within 90 days of the Participant's receipt of written demand from the Committee. The Employer shall have the right to offset such amount against any amounts otherwise owed to the Participant by the Employer to the extent such amounts do not constitute nonqualified deferred compensation for purposes of Code Section 409A.
 
(c) Interpretation. Subsequent changes in Participant status, including retirement or termination of employment, shall not affect the Committee's rights to reduce or recover Awards under this Section.”     
 
Section 5
 
Section 9(d) of the Plan is hereby amended in its entirety to read as follows:
 
“(d)    Total VAP Amount for Current and New Projects
Except as otherwise provided on Exhibit C hereto, the total VAP Amount to be credited to each Participant's VAP Account shall be determined as of December 31 of each year by adding the VAP Amounts for Current and New Projects (as determined under Section 9(a) and 9(b)) to the VAP Amounts for the Acquisition of New Projects (as determined under Section 9(c)).”
 
Section 6
 
Section 9(e) of the Plan is hereby amended in its entirety to read as follows:
 
“(e) Committee Discretion. Notwithstanding the provisions of this Plan or any Schedule thereto, the Committee, in its sole discretion, may approve an Award where one otherwise would not be made and may make equitable adjustments by increasing or decreasing (i) the VAP Amount to be credited (or that was previously credited) to a Participant's VAP Account and/or (ii) the amount of any Award that was previously granted or paid to a Participant. The Committee will administer this provision and exercise its discretion and business judgment in the application of this provision based on the facts and circumstances as it deems relevant in its sole discretion. More specifically, the Committee shall determine in its discretion any appropriate amounts to reduce or recoup and may base such adjustment on any factor, including, without limitation, finding that the financial information and performance metrics initially used by the Committee to determine the amount of the Award were unreasonable.”

Section 7
 
With respect to Awards that are issued after the Effective Date, Section 10(a) of the Plan is hereby amended in its entirety to read as follows:
 
“(a) The Committee or the Board of Directors of the Company, in its sole and absolute discretion, may alter or amend this Plan from time to time.”
Section 8
 
With respect to Awards that are issued after the Effective Date, the first sentence of Section 10(b) of the Plan is hereby amended in its entirety to read as follows:
 
“The Committee or the Board of Directors of the Company, in its sole and absolute discretion, may terminate this Plan in its entirety (or a portion thereof) at any time.”
Section 9
 
The Plan is hereby amended by adding the following new Exhibit C at the end thereof:
 
“EXHIBIT C
LIBERTY FUELS KEMPER COUNTY IGCC PROJECT 
 
Notwithstanding anything in the Plan to the contrary, Awards attributable to the Liberty Fuels Kemper County IGCC Project in Kemper County, MS arising from the contract with Mississippi Power Company which was effective June 1, 2010 shall be subject to the terms and conditions set forth in this Exhibit C:
 
		
	1.    
	As of the Effective Date, no VAP amounts have been earned or credited with respect to the Liberty Fuels Kemper County IGCC Project.

 
		
	2.    
	The Committee, in its sole discretion, shall determine the amount and timing of the Value Appreciation and the corresponding VAP Amounts that will be credited to Participants' VAP Accounts with respect to the Liberty Fuels Kemper County IGCC Project (the “Liberty VAP Amount”).

 
		
	3.    
	The portion of any (i) VAP Amount for the Acquisition of New Projects; (ii) VAP Amount for annual Value Appreciation of Current and New Projects and/or (iii) VAP Amount for Cumulative Value Appreciation of Current and New Projects that is attributable to the Liberty VAP Amount shall be “contingently” credited to a Participant's VAP Account as of the January 1 of the year in which such amount is approved by the Committee. 

 
		
	4.    
	No Participant shall be entitled to receive payment of any Liberty VAP Amount for the Acquisition of New Projects unless and until the Compensation Committee, in its sole discretion, determines, based on evidence that the Certificate of Public Convenience and Necessity for the Kemper County IGCC Project issued by the Mississippi Public Service Commission exists (the “Liberty Certificate Date”). Any Liberty VAP Amounts for the Acquisition of New Projects that are “contingently” credited to a Participant's VAP Account shall be officially credited to such Participant's VAP Account on the Liberty Certificate Date, and the Participant shall become entitled to receive payment of the vested portion of the Liberty VAP Amount for the Acquisition of New Projects on the later of (i) the Liberty Certificate Date or (ii) the earliest to occur of the Payment Dates set forth in Section 6.2(b).    

 

		
	5.    
	No Participant shall be entitled to receive payment of any Liberty VAP Amount for the (i) Annual Value Appreciation of Current and New Projects and/or (ii) Cumulative Value Appreciation of Current and New Projects, unless and until the Compensation Committee, in its sole discretion, determines, based on evidence that the financial information, and performance metrics initially used by the Committee to determine the Liberty VAP Amount were reasonable (the “Ongoing Liberty Completion Dates”). The amounts that are “contingently” credited to a Participant's VAP Account under this Item 5 shall be officially credited to such Participant's VAP Account on each Ongoing Liberty Completion Date and the Participant shall become entitled to receive payment of the vested portion of such amount on the later of (i) the applicable Ongoing Liberty Completion Date or (ii) the earliest to occur of the Payment Dates set forth in Section 6.2(b).

 
    
		
	6.    
	In furtherance of, but without limiting the provisions of Section 9(e) of the Plan, the Committee, in its sole discretion, may increase or decrease (or eliminate) any Liberty VAP Amount that was contingently credited to a Participant's VAP Account at any time.”

 
 
 
 
EXECUTED this 11th day of November, 2010.
 
 
                    
				
	 
	THE NORTH AMERICAN COAL CORPORATION
	 

	 
	 
	 
	 

	 
	By:
	/s/  Charles A. Bittenbender
	 

	 
	Name:
	Charles A. Bittenbender
	 

	 
	Title:
	Assistant Secretary

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