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    EXHIBIT
      10.2                              

    
 

    AMENDED
      AND RESTATED 1997 EQUITY PLAN FOR NON-EMPLOYEE

    DIRECTORS
      OF HNI CORPORATION

    

    

    1. Establishment
      and Purpose. HNI
      Corporation, an Iowa corporation (the "Corporation"), previously established
      this 1997 Equity Plan for Non-Employee Directors of HNI Corporation (the
      "Plan"). The Corporation hereby restates the Plan effective as of August 8,
      2006, as set forth herein. 

    

    The
      purposes of the Plan are to: (1) promote the growth and long-term success of
      HNI
      Corporation, an Iowa corporation (the "Corporation"), by offering Non-Employee
      Directors the ability to acquire Common Stock of the Corporation; (2) enable
      the
      Corporation to attract and retain qualified persons to serve as Non-Employee
      Directors, which services are considered essential to the long-term success
      of
      the Corporation, by offering them an opportunity to own Common Stock of the
      Corporation; and (3) provide Non-Employee Directors with the opportunity to
      invest certain amounts of their compensation payable for services as a Director
      in shares of Common Stock.

    

    2. Definitions.
      In
      addition to the other terms defined elsewhere herein, wherever the following
      terms are used in this Plan with initial capital letters, they shall have the
      meanings specified below, unless the context clearly indicates
      otherwise.

    

    "1995
      Plan"
      shall
      mean the HNI Corporation Stock-Based Compensation Plan, as amended and restated
      effective February 11, 1998.

    

    "Accounting
      Month"
      shall
      mean any calendar month during an Accounting Period in which Fees subject to
      payment hereunder as Mandatory Shares or Voluntary Shares are
      earned.

    

    "Accounting
      Period"
      shall
      mean the calendar year.

    

    "Award"
      shall
      mean an award of an Option Right, Restricted Stock or Common Stock Grant under
      this Plan.

    

    "Board"
      shall
      mean the Board of Directors of the Corporation.

    

    "Code"
      shall
      mean the Internal Revenue Code of 1986, as amended from time to
      time.

    

    "Common
      Stock"
      shall
      mean the Common Stock, $1.00 par value, of the Corporation, and any security
      into which such Common Stock may be converted or for which such Common Stock
      may
      be exchanged by reason of any transaction or event of the type described in
      Section 8 of this Plan.

    

    "Common
      Stock Grant"
      shall
      mean Common Stock, other than Restricted Stock, awarded pursuant to Section
      5 of
      this Plan.

    

    "Corporation"
      shall
      have the meaning set forth in Section 1, and shall include its
      successors.

    

    "Date
      of Award"
      shall
      mean the date specified by the Board on which an Award shall become effective,
      which shall not be earlier than the date on which the Board takes action with
      respect thereto.

    

    "Election
      Fees"
      shall
      mean: (i) prior to May 12, 1998, the Fees, less the Mandatory Retainer Amount
      for the applicable Accounting Period; and (ii) on or after May 12, 1998, the
      Fees.

    

    "Employee"
      shall
      mean any officer or other employee of the Corporation or of any corporation
      which is then a Subsidiary.

    

    "Fair
      Market Value" shall
      mean the average of the high and low transaction prices of a share of Common
      Stock as reported on the New York Stock Exchange on the date as of which such
      value is being determined, or, if there shall be no reported transactions for
      such date, on the next preceding date for which transactions were reported;
      provided, however, that if Fair Market Value for any date cannot be so
      determined, Fair Market Value shall be determined by the Board by whatever
      means
      or method as it, in the good faith exercise of its discretion, shall at such
      time deem appropriate.

    

    "Fees"
      means
      the Retainer and other Non-Employee Director compensation payable in
      cash.

    

    "Issuance
      Date" shall
      have the
      meaning set forth in Section 6(a). 

    

    "Mandatory
      Retainer Amount"
      shall
      have the meaning set forth in Section 6(a).

    

    "Mandatory
      Shares"
      shall
      have the meaning set forth in Section 6(a).

    

    "Market
      Value per Share,"
      as used
      in Sections 6(a) and 6(c) herein, shall have the meaning set forth in the Plan,
      as in effect prior to August 8, 2006. 

    

    "Non-Employee
      Director"
      shall
      mean a member of the Board who is not an Employee.

    

    "Optionee"
      shall
      mean a Non-Employee Director to whom an Option Right is awarded under this
      Plan.

    

    "Option
      Price"
      shall
      mean the purchase price payable upon the exercise of an Option
      Right.

    

    "Option
      Right"
      shall
      mean the right to purchase shares of Common Stock from the Corporation upon
      the
      exercise of an option awarded hereunder.

    

    "Participant"
      shall
      mean a Non-Employee Director (or a person who has agreed to commence serving
      in
      such capacity) who is selected by the Board to receive Awards or Mandatory
      Shares under this Plan or who has elected to receive Voluntary
      Shares.

    

    "Participation
      Agreement"
      shall
      mean the agreement submitted by a Non-Employee Director to the Secretary of
      the
      Corporation pursuant to which the Non-Employee Director may elect to receive
      all
      or any portion of his or her Election Fees in the form of Voluntary Shares
      for a
      specified period in the future.

    

    "Performance
      Objectives"
      shall
      mean the performance objectives that may be established by the Board pursuant
      to
      this Plan for Participants who have received Awards.

    

    "Plan"
      shall
      mean the Amended and Restated 1997 Equity Plan for Non-Employee Directors of
      HNI
      Corporation as set forth herein, as the same may be amended or restated from
      time to time.

    

    "Restricted
      Stock"
      shall
      mean Common Stock awarded pursuant to Section 5 of this Plan as to which neither
      the substantial risk of forfeiture nor the restrictions on transfer referred
      to
      in Section 5 hereof have expired.

    

    "Restricted
      Stockholder"
      shall
      mean a Non-Employee Director to whom Restricted Stock has been awarded under
      this Plan.

    

    "Retainer"
      shall
      mean the portion of a Non-Employee Director's annual compensation that is
      payable without regard to number of board or committee meetings attended or
      committee positions.

    

    "Rule
      16b-3"
      shall
      mean Rule 16b-3 under the Securities Exchange Act of 1934, or any successor
      rule.

    

    "Subsidiary"
      shall
      mean any corporation, partnership, joint venture, limited liability Corporation,
      unincorporated association or other entity (each, an "Entity") in an unbroken
      chain of Entities beginning with the Corporation if each of the Entities other
      than the last Entity in the unbroken chain then owns stock or other interests
      possessing 50 percent or more of the total combined voting power of all classes
      of stock or other interests in one of the other Entities in such
      chain.

    

    "Termination
      of Directorship"
      shall
      mean the time when a Participant ceases to be a Director for any reason,
      including, without limitation, a termination by resignation, removal, failure
      to
      be elected or reelected, death or retirement.

    

    "Voluntary
      Shares"
      shall
      have the meaning set forth in Section 6(b).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Shares
      Available under the Plan.
      Subject
      to adjustment as provided in Section 8 of this Plan, the number of shares of
      Common Stock issued or transferred, plus the number of shares of Common Stock
      covered by outstanding Awards and not forfeited under this Plan, shall not
      in
      the aggregate exceed 400,000 shares, which may be shares of original issuance
      or
      shares held in treasury or a combination thereof. If an Option Right lapses
      or
      terminates before such Option is exercised or shares of Restricted Stock or
      Common Stock Grants are forfeited, for any reason, the shares covered thereby
      may again be made subject to Awards, Mandatory Shares or Voluntary Shares under
      this Plan.

    

    4. Option
      Rights.
      The
      Board may from time to time authorize Awards to Participants of Options to
      purchase shares of Common Stock upon such terms and conditions as the Board
      may
      determine in accordance with the following provisions:

    

    (a) Each
      Award shall specify the number of shares of Common Stock to which the Option
      Rights pertain.

    

    (b) Each
      Award of Option Rights shall specify an Option Price per share of Common Stock,
      which shall be equal to or greater than the Fair Market Value on the Date of
      Award.

    

    (c) Each
      Award of Option Rights shall specify the form of consideration to be paid in
      satisfaction of the Option Price and the manner of payment of such
      consideration, which may include: (i) cash in the form of currency or check
      or
      other cash equivalent acceptable to the Corporation; (ii) nonforfeitable,
      nonrestricted shares of Common Stock, which are already owned by the Optionee
      and have a value at the time of exercise that is equal to the Option Price;
      (iii) any other legal consideration that the Board may deem appropriate,
      including (without limitation) any form of consideration authorized under
      Section 4(d) below, on such basis as the Board may determine in accordance
      with
      this Plan; and (iv) any combination of the foregoing.

    

    (d) On
      or
      after the Date of Award of any Option Right, the Board may determine that
      payment of the Option Price may also be made in whole or in part in the form
      of
      shares of Restricted Stock or other shares of Common Stock that are subject
      to
      risk of forfeiture or restrictions on transfer. Unless otherwise determined
      by
      the Board on or after the Date of Award, whenever any Option Price is paid
      in
      whole or in part by means of any of the forms of consideration specified in
      this
      Section 4(d), the shares of Common Stock received by the Optionee upon the
      exercise of the Option Right shall be subject to the same risks of forfeiture
      or
      restrictions on transfer as those that applied to the consideration surrendered
      by the Optionee; provided,
      however,
      that
      such risks of forfeiture and restrictions on transfer shall apply only to the
      same number of shares of Common Stock received by the Optionee as applied to
      the
      forfeitable or restricted shares of Common Stock surrendered by the
      Optionee.

    

    (e) Any
      Award
      of Option Rights may provide for the deferred payment of the Option Price from
      the proceeds of sale through a broker of some or all of the shares of Common
      Stock to which the exercise relates.

    

    (f) Successive
      Awards may be made to the same Participant regardless of whether any Option
      Rights previously awarded to the Participant remain unexercised.

    

    (g) Each
      Award shall specify the period or periods of continuous service as a
      Non-Employee Director by the Optionee that are necessary or Performance
      Objectives that must be achieved before the Option Rights or installments
      thereof shall become exercisable, and any Award may provide for the earlier
      exercise of the Option Rights in the event of a change in control of the
      Corporation or other transaction or event.

    

    (h) On
      or
      after the Date of Award of any Option Right, the Board may provide for the
      payment to the Optionee of dividend equivalents thereon in cash or shares of
      Common Stock on a current or contingent basis.

    

    (i) The
      term
      of an Option Right shall be set by the Board; provided,
      however,
      that no
      Option Right awarded pursuant to this Section 4 may have a term of more than
      10
      years from the Date of Award.

    

    (j) Each
      Award of an Option Right shall be evidenced by a written Stock Option Agreement,
      which shall be executed on behalf of the Corporation by any officer thereof
      and
      delivered to and accepted by the Optionee and shall contain such terms and
      provisions as the Board may determine consistent with this Plan.

    

    5. Common
      Stock Grants and Restricted Stock.
      The
      Board may also authorize Awards to Participants of Common Stock Grants and
      Restricted Stock upon such terms and conditions as the Board may determine
      in
      accordance with the following provisions:

    

    (a) A
      Common
      Stock Grant consists of the transfer by the Corporation to a Participant of
      shares of Common Stock in consideration and as additional compensation for
      services performed for the Corporation. Each Award of Common Stock Grants and
      Restricted Stock shall constitute an immediate transfer of the ownership of
      shares of Common Stock to the Participant in consideration of the performance
      of
      services, entitling such Participant to dividend, voting and other ownership
      rights, subject to, in the case of Awards of Restricted Stock, the substantial
      risk of forfeiture and restrictions on transfer hereinafter referred
      to.

    

    (b) Each
      Award of Restricted Stock shall provide that the shares of Restricted Stock
      covered thereby shall be subject to a "substantial risk of forfeiture" within
      the meaning of Section 83 of the Code for a period to be determined by the
      Board
      on the Date of Award, and may provide for the termination of such risk of
      forfeiture upon the achievement of certain Performance Objectives, in the event
      of a change in control of the Corporation, or upon any other transaction or
      event.

    

    (c) Each
      Award of Restricted Stock shall provide during the period for which such
      substantial risk of forfeiture is to continue, and any Award of Common Stock
      Grants may provide, that the transferability of the shares of Common Stock
      subject to such Awards shall be prohibited or restricted in the manner and
      to
      the extent prescribed by the Board on the Date of Award. Such restrictions
      may
      include, without limitations, rights of repurchase or first refusal in the
      Corporation or provisions subjecting the shares of Restricted Stock to a
      continuing substantial risk of forfeiture in the hands of any
      transferee.

    

    (d) Any
      Award
      of a Common Stock Grant or Restricted Stock may be made in consideration of
      payment by the Participant of an amount that is less than the Fair Market Value
      per share on the Date of Award.

    

    (e) Any
      Award
      of Restricted Stock may require that any or all dividends or other distributions
      paid on the shares of Restricted Stock during the period of such restrictions
      be
      automatically sequestered and reinvested on an immediate or deferred basis
      in
      additional shares of Common Stock, in which case such additional shares of
      Common Stock shall be subject to the same restrictions as the underlying Award
      or such other restrictions as the Board may determine. 

    

    (f) Each
      Award of a Common Stock Grant and Restricted Stock may be evidenced by a Stock
      Grant Agreement or Restricted Stock Agreement (as the case may be), executed
      on
      behalf of the Corporation by any officer thereof and delivered to and accepted
      by the Participant containing such terms and provisions as the Board may
      determine consistent with this Plan. Unless otherwise directed by the Board,
      all
      certificates representing shares of Restricted Stock, together with a stock
      power endorsed in blank by the Participant with respect to the shares of
      Restricted Stock, shall be held in custody by the Corporation until all
      restrictions thereon lapse.

    

    (g) The
      Board
      may provide, at or after the Date of Award of any Common Stock Grant or
      Restricted Stock, for the payment of a cash award intended to offset the amount
      of tax that the Participant may incur in connection with such Common Stock
      Grant
      or Restricted Stock, including, without limitation, tax on the receipt of such
      cash award; provided, however, that any such payment shall be made no later
      than
      2-1/2 months after the end of the calendar year: (i) in which the grant is
      made,
      in the case of a Common Stock Grant; or (ii) in which the forfeiture
      restrictions lapse, in the case of Restricted Stock.

    

    (h) The
      Board
      may provide in any individual Stock Grant Agreement or Restricted Stock
      Agreement that the Corporation shall have the right to repurchase the Restricted
      Stock then subject to restrictions under the Restricted Stock Agreement, or
      the
      Common Stock subject to the Common Stock Grant, immediately upon a Termination
      of Directorship for any reason at a cash price per share equal to the cash
      price
      paid by the Participants for such Restricted Stock or Common Stock. In the
      discretion of the Board, provision may be made that no such right of repurchase
      shall exist in the event of a Termination of Directorship without cause or
      because of the Participant's retirement, death or permanent and total
      disability.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. Mandatory
      Shares and Voluntary Shares. 

    

    (a) Mandatory
      Shares.
      Prior
      to May 12, 1998, each Non-Employee Director shall be paid, in the form of shares
      of Common Stock ("Mandatory Shares"), ten percent (10%) of his or her Retainer
      with respect to such Accounting Period or portions thereof as the Board shall
      designate (the "Mandatory Retainer Amount"). No later than ten (10) days
      following the date of each quarterly Board meeting (the "Issuance Date"), the
      Corporation shall issue to each Non-Employee Director a number of Mandatory
      Shares equal to: (i) the portion of such Director's Mandatory Retainer Amount
      earned during such Accounting Month; divided by (ii) the Market Value per Share
      on the first day of the Accounting Month during which such Mandatory Shares
      were
      earned (the "Valuation Date"). For purposes of this Section 6(a), the Mandatory
      Retainer Amount and the Mandatory Shares related thereto shall be deemed earned
      during the Accounting Month during which such Mandatory Retainer Amount would
      otherwise be payable by the Corporation if paid in cash. On and after May 12,
      1998, Mandatory Shares shall no longer be payable to Non-Employee Directors
      under the Plan with respect to Fees earned on and after such date.

    

    (b) Voluntary
      Shares.
      Each
      Non-Employee Director shall be eligible to elect to receive shares of Common
      Stock in accordance with the following provisions:

    

    (i) Prior
      to
      the commencement of each Accounting Period (or by such other date as may be
      specified by the Board), a Participant may elect, by the filing of a
      Participation Agreement, to have up to 100 percent of his or her Election Fees
      paid by the Corporation in the form of shares of Common Stock in lieu of a
      cash
      payment (the "Voluntary Shares"). Such Participation Agreement must, except
      as
      the Board may otherwise provide, be filed as a one-time election for the
      applicable Accounting Period. Unless the Director revokes or changes such
      election by filing a new Participation Agreement by the due date therefor
      specified in this Section 6(b), such election shall apply to a Participant's
      Election Fees for the subsequent Accounting Period only. Once an election
      has been terminated, another election may not be made effective until the
      commencement of the next subsequent full Accounting Period unless the Board
      shall have otherwise provided. 

    

    (ii) No
      later
      than the Issuance Date, the Corporation shall issue to each Participant who
      has
      made an election under Section 6(b), a number of Voluntary Shares for the
      immediately preceding Accounting Month equal to: (i) the portion of such
      Director's Election Fees for such Accounting Month that such Director has
      elected to receive as Voluntary Shares; divided by (ii) the Fair Market Value
      per share of Common Stock on the date on which the Director would have been
      paid
      the Election Fees in cash (but for the election to receive Voluntary
      Shares).

    

    (c) Transition
      Rule.
      No
      later than March 10, 1998, each Participant shall be issued, in addition to
      such
      number of Mandatory Shares and Voluntary Shares to which he or she is otherwise
      entitled pursuant to Sections 6(a) and (b) hereof for the Accounting Month
      ended
      February 28, 1998, (i) a number of Mandatory Shares equal to (x) $500 divided
      by
      the Market Value per Share on August 1, 1997, (y) $500 divided by the Market
      Value per Share on November 3, 1997, and (z) $500 divided by the Market Value
      per Share on February 2, 1998, and (ii) a number of Voluntary Shares for the
      period May 13, 1997 through January 31, 1998 (the "Transition Period")
      equal to (x) the portion of such Participant's Election Fees for the Transition
      Period that such Participant has elected to receive as Voluntary Shares, divided
      by (y) the Market Value per share on the first day of the Accounting Month
      during which such Voluntary Shares were earned, (collectively, the "Transition
      Shares"). For purposes of this Section 6(c), the above-referenced Mandatory
      Shares and Voluntary Shares shall be deemed earned during the Accounting Month
      during which such Mandatory Shares and Voluntary Shares (and the amounts
      underlying such Shares) would otherwise have been payable by the Corporation
      if
      paid in cash. 

    

    7. Transferability. 

    

    (a) Except
      as
      may be otherwise determined by the Board, Awards under this Plan may be
      transferred by a Participant only by will or the laws of descent and
      distribution and Option Rights may not be exercised during a Participant's
      lifetime except by the Participant or, in the event of the Participant's legal
      incapacity, by his or her guardian or legal representative acting in a fiduciary
      capacity on behalf of the Participant under state law and court
      supervision.

    

    (b) Any
      Award
      made under this Plan may provide that all or any part of the shares of Common
      Stock that are to be issued or transferred by the Corporation upon the exercise
      of Option Rights, or are no longer subject to the substantial risk of forfeiture
      and restrictions on transfer referred to in Section 5 of this Plan, shall be
      subject to further restrictions upon transfer.

    

    (c) To
      the
      extent required to satisfy any condition to exemption available pursuant to
      Rule
      16b-3, Mandatory Shares and Voluntary Shares acquired by a Participant shall
      be
      held by the Participant for a period of at least six months following the date
      of such acquisition.

    

    8. Adjustments.
      The
      Board may make or provide for such adjustments in the: (a) number of shares
      of
      Common Stock covered by outstanding Awards and Mandatory Shares or subject
      to
      elections to receive Voluntary Shares; (b) prices per share applicable to Option
      Rights, and (c) kind of shares (including, without limitation, shares of
      another issuer) covered thereby, as the Board in its sole discretion may in
      good
      faith determine to be equitably required in order to prevent dilution or
      enlargement of the rights of Participants that otherwise would result from
      (x)
      any stock dividend, stock split, combination of shares, recapitalization or
      other change in the capital structure of the Corporation, (y) any merger,
      consolidation, spin-off, split-off, split-up, reorganization, partial or
      complete liquidation or other distribution of assets, or issuance of rights
      or
      warrants to purchase securities, or (z) any other corporate transaction or
      event
      having an effect similar to any of the foregoing. In the event of any such
      transaction or event, the Board may provide in substitution for any or all
      outstanding Awards, Mandatory Shares or Voluntary Shares to be issued under
      this
      Plan such alternative consideration as it may in good faith determine to be
      equitable under the circumstances and may require in connection therewith the
      surrender of all Awards, Mandatory Shares or Voluntary Shares so replaced.
      The
      Board may also make or provide for such adjustments in the numbers and kind
      of
      shares specified in Section 3 of this Plan as the Board may in good faith
      determine to be appropriate in order to reflect any transaction or event
      described in this Section 8.

    

    9. Fractional
      Shares.
      The
      Corporation shall not be required to issue any fractional shares of Common
      Stock
      pursuant to this Plan. The Board may provide for the elimination of fractions,
      for the settlement thereof in cash or for such other adjustments contemplated
      by
      Section 8 of this Plan. 

    

    10. Withholding
      Taxes.
      To the
      extent, if any, that the Corporation is required to withhold federal, state,
      local or foreign taxes in connection with any payment made or benefit realized
      by a Participant or other person under this Plan, and the amounts available
      to
      the Corporation for the withholding are insufficient, it shall be a condition
      to
      the receipt of any such payment or the realization of any such benefit that
      the
      Participant or such other person make arrangements satisfactory to the
      Corporation for payment of the balance of any taxes required to be withheld.
      At
      the discretion of the Board, any such arrangements may include relinquishment
      of
      a portion of any such payment or benefit. The Corporation and any Participant
      or
      such other person may also make similar arrangements with respect to the payment
      of any taxes with respect to which withholding is not required. 

    

    11. Certain
      Terminations of Directorships.

    

    (a) Notwithstanding
      any other provision of this Plan to the contrary, in the event of Termination
      of
      Directorship by reason of death or disability, or in the event of hardship
      or
      other special circumstances, of a Participant who holds an Option Right that
      is
      not immediately and fully exercisable or any Award as to which the substantial
      risk of forfeiture or the prohibition or restriction on transfer has not lapsed,
      the Board may in its sole discretion take any action that it deems to be
      equitable under the circumstances or in the best interests of the Corporation,
      including, without limitation, waiving or modifying any limitation or
      requirement with respect to any Award under this Plan.

    

    (b) If
      a
      Non-Employee Director becomes an Employee while continuing to serve as a
      Director, that fact alone shall not result in a Termination of Directorship
      or
      otherwise impair the rights such Director may have under this Plan, including,
      without limitation, the rights such Director may have under any Award
      outstanding under this Plan, but such Director shall no longer be eligible
      to
      receive any further Awards under this Plan.

    

    12. Administration.

    

    (a) Administration
      by the Board; Delegation.
      This
      Plan shall be administered by the Board, which may from time to time delegate
      all or any part of its authority under this Plan to a committee or subcommittee
      of not less than two Directors appointed by the Board who are "non-employee
      directors" within the meaning of that term as defined in Rule 16b-3. To the
      extent of any delegation by the Board under this Plan, references in this Plan
      to the Board shall also refer to the applicable committee or subcommittee.
      The
      majority of any such committee or subcommittee shall constitute a quorum, and
      the action of a majority of its members present at any meeting at which a quorum
      is present, or acts unanimously approved in writing, shall be the acts of such
      committee or subcommittee.

    

    (b) Administrative
      Powers.
      The
      Board shall have the power to interpret this Plan, the Option Rights, the Common
      Stock Grants, the Restricted Stock, the Mandatory Shares and elections to
      receive Voluntary Shares, and the agreements pursuant to which the Option
      Rights, the Common Stock Grants, the Restricted Stock, the Mandatory Shares
      and
      Voluntary Shares are awarded and issued (including Participation Agreements),
      and to adopt such rules for the administration, interpretation and application
      of this Plan and such agreements as are consistent therewith and to interpret,
      amend or revoke any such rules. Any Award under this Plan need not be the same
      with respect to each Optionee or Restricted Stockholder.

    

    (c) Professional
      Assistance; Good Faith Actions.
      All
      expenses and liabilities which members of the Board incur in connection with
      the
      administration of this Plan shall be borne by the Corporation. The Board may
      employ attorneys, consultants, accountants, appraisers, brokers or other
      persons. The Board, the Corporation and the Corporation's officers and Directors
      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 Board in good faith shall be final and binding upon all Participants, the
      Corporation and all other interested persons. No members of the Board shall
      be
      personally liable for any action, determination or interpretation made in good
      faith with respect to this Plan, or any Option, Common Stock Grant, Restricted
      Stock, Mandatory Shares or Voluntary Shares, and all members of the Board shall
      be fully protected by the Corporation in respect of any such action,
      determination or interpretation.

    

    13. Amendment,
      Suspension, Termination and Other Matters.

    

    (a) This
      Plan
      may be wholly or partially amended or otherwise modified, suspended or
      terminated at any time or from time to time by the Board. However, without
      further approval of the stockholders of the Corporation, no action of the Board
      may, except as provided in Section 8 of this Plan, increase the limits imposed
      in Section 3 on the maximum number of shares of Common Stock which may be issued
      under this Plan, and no action of the Board may be taken that would otherwise
      require stockholder approval as a matter of applicable law or the rules of
      any
      U.S. stock exchange, including the New York Stock Exchange, on which the Common
      Stock may be listed for trading or authorized for quotation. No amendment,
      suspension or termination of this Plan shall, without the consent of the holder
      of an Award, alter or impair any rights or obligations under any Award
      theretofore granted, unless the Award itself otherwise expressly so
      provides.

    

    (b) The
      Board
      may make under this Plan any Award or combination of Awards authorized under
      this Plan in exchange for the cancellation of an Award that was not made under
      this Plan.

    

    (c) Except
      as
      provided in Section 13(d) of this Plan, the making of one or more Awards to
      a
      Non-Employee Director under this Plan shall not preclude the making of Awards
      to
      such Non-Employee Director under any other stock option or incentive plan
      previously or subsequently adopted by the Board, nor shall the fact that a
      Non-Employee Director has received one or more awards under the 1995 Plan or
      under any other stock option or incentive plan of the Corporation preclude
      such
      Non-Employee Director from receiving awards under this Plan.

    

    (d) Upon
      approval of this Plan by the shareholders of the Corporation, Article V of
      the
      1995 Plan shall be discontinued, except that any amounts remaining payable
      to
      Non-Employee Directors pursuant to Article V of the 1995 Plan shall be paid
      in
      accordance with its terms.

    

    14. Termination
      of the Plan.
      No
      further awards shall be made under this Plan after the passage of 10 years
      from
      the date on which this Plan is first approved by the shareholders of the
      Corporation.

    

    15. Effective
      Date.
      The
      effective date of this Plan, as amended and restated, shall be the date set
      forth in Section 1, above.Long-Term Performance Plan

    EXHIBIT
      10.3                                      

    
 

    HNI
      CORPORATION

            LONG-TERM
      PERFORMANCE
      PLAN

    (Adopted
      February 16, 2000. Amended January 1, 2004 and August 8, 2006.)

    

    HNI
      Corporation, an Iowa corporation (the "Corporation") hereby establishes this
      Long-Term Performance Plan (the "Performance Plan") effective as of January
      1,
      2003, and amended on January 1, 2004 and August 8, 2006.

    

    1. Purpose.
      The
      purpose of this Performance Plan is to promote the attainment of the
      Corporation's performance goals by providing incentive compensation for certain
      designated key executives and employees of the Corporation and its Subsidiaries.
      

    

    2. Definitions.
      The
      following terms have the following meanings when used in this Performance Plan
      with initial capital letters:

    

    (a) "Board"
      means the Board of Directors of the Corporation or, pursuant to any delegation
      by the Board to the Committee pursuant to Section 13, the
      Committee.

    

    (b) "Code"
      means the Internal Revenue Code of 1986, as amended from time to
      time.

    

    (c) "Committee"
      means the Human Resources and Compensation Committee of the Board as constituted
      at the relevant time, which shall consist of two or more "outside directors"
      within the meaning of Section 162(m) of the Code who are not eligible for
      participation in the Plan. 

    

    (d) "Disability
      or Disabled," with respect to a Participant, means that the Participant
      satisfies the requirements to receive long-term disability benefits under the
      Corporation-sponsored group long-term disability plan in which the Participant
      participates without regard to any waiting periods, or that the Participant
      has
      been determined by the Social Security Administration to be eligible to receive
      Social Security disability benefits. A Participant shall not be considered
      to be
      Disabled unless the Participant furnishes proof of the Disability to the
      Corporation in such form and manner as the Corporation may require.

    

    (e) "Earned
      Performance Award" means the award, if any, payable to a Participant at the
      end
      of the Performance Period.
      

    

    (f) "162(m)
      Employee," for any calendar year, means an employee of the Corporation who,
      as
      of the close of the calendar year, is: (a) the CEO (or an individual acting
      in
      such capacity); or (b) among the four highest compensated officers of the
      Corporation (other than the CEO). Whether an employee is the CEO or one of
      the
      four highest compensated officers of the Corporation is determined pursuant
      to
      the executive compensation rules of the Securities Exchange Act of
      1934.

     

    (g)
      "Operating Unit" means either:  (i) the
      Corporation as a whole; (ii) an individual subsidiary, division, store, or
      other
      business unit of the Corporation; or (iii) a grouping of business units, that
      employs individuals that have been approved to participate in this Performance
      Plan by the Board.

    

    (h) "Participant"
      means a person who is designated by the Board to receive benefits under this
      Performance Plan and who is at the time an officer, executive, or other employee
      of the Corporation or any one or more of its Subsidiaries, or who has agreed
      to
      commence serving in any such capacity.

    

    (i) "Performance
      Measure" means the level of performance for the Operating Unit, a division
      or
      other business unit of an operating unit,
      or any
      of them, for each Performance Period, in each case as established pursuant
      to
      Section 6. A Performance Measure may take into account such criteria as the
      Board determines to be appropriate.

     

    (j)
      "Performance Period" means a period of three
      consecutive fiscal years of the Corporation commencing on the first day of
      a
      fiscal year of the Corporation or other period as selected by the
      Board.

     

    (k) "Retirement,"
      of
      a
      Participant, means: (i) for Performance Periods commencing on or after January
      1, 2007, the Participant's termination of employment with the Corporation and
      its Subsidiaries after the attainment of age 65,
      or
      age
      55 with
      ten
      years of service with the Corporation or a Subsidiary, provided, however, that
      the Chief Executive Officer of the Corporation, in his or her discretion, may
      waive or reduce the ten-year service requirement with respect a Participant;
      and
      (ii) for Performance Periods commencing prior to January 1, 2007, the
      Participant's voluntary termination of employment with the Corporation on or
      after attainment of age 65, or when the Participant is at least 55 years old
      and
      the sum of the Participant's age and service equals at least 65.

     

    (l)
      "Target Performance Award" means the dollar award
      established for a Participant if the Performance Measures applicable to the
      Participant is achieved.

    

    (m) "Subsidiary"
      has the meaning specified in Rule 405 promulgated under the Securities Act
      of
      1933, as amended (or under any successor rule substantially to the same
      effect).

    

    3. Eligibility. 

    

    (a) Except
      as
      otherwise provided in this Section 3, an employee of the Corporation or one
      of
      its Subsidiaries will become a Participant for a particular Performance Period
      to the extent designated by the Board, or by the Chief Executive Officer of
      the
      Corporation if the Board delegates such authority to Chief Executive
      Officer.

    

    (b) An
      employee who first becomes eligible to participate after the beginning of a
      particular Performance Period will become a Participant for such Performance
      Period only in accordance with this Section 3(b). The Board, or the Chief
      Executive Officer of the Corporation if the Board delegates such authority
      to
      the Chief Executive Officer, may allow participation for a portion of such
      Performance Period for such employee on such terms and conditions as the Board
      (or the Chief Executive Officer) may determine.

     

    4. Earned
      Performance Award. 
Unless changed by the Board, each eligible Participant may earn an
      Earned Performance Award as hereinafter provided. The performance of the
      Operating Unit during a particular Performance Period will be measured using
      the
      Performance Measure established for that Performance Period by the Board in
      accordance with Section 6. In the event such performance for such Performance
      Period is below the minimum Performance Measure established therefor, no Earned
      Performance Award will be paid to Participants in respect thereof. In no event
      shall an Earned Performance Award exceed $3 million dollars.

     

    5.
      Target Performance Award.  Each
      Participant shall be assigned a Target Performance Award at the beginning of
      the
      Performance Period, as determined by the Board. The Target Performance Award
      will be expressed as a percentage of the Participant's base pay at the time
      the
      Target Performance Award is assigned. The actual award payable to a Participant
      at the end of the Performance Period will be determined by applying the
      percentage achievement of the Performance Measure and multiplying that result
      against the Target Performance Award to determine the Earned Performance
      Award.  

     

    6. Performance
      Measure.

    

    (a) The
      Board
      will approve for each Performance Period the applicable Performance Measure.
      Such Performance Measure may be adjusted during a Performance Period to prevent
      dilution or enlargement of an
      award
      as
      a result of extraordinary events or circumstances as determined by the Board
      or
      to exclude the effects of extraordinary, unusual or nonrecurring events, changes
      in accounting principles, discontinued operations, acquisitions, divestitures
      and material restructuring charges.

    

    (b) The
      Corporation will: (i) notify each eligible employee who has been selected to
      participate in this Performance Plan that he or she is a Participant under
      this
      Performance Plan for such Performance Period; and (ii) communicate in writing
      to
      each Participant the Target Performance Award granted to such Participant
      pursuant to Section 5 and the Performance Measure applicable to such Participant
      for such Performance Period.

    

    (c) In
      the
      case of a Participant who is a 162(m) Employee, a Performance Measure must
      be
      pre-established by the Committee, must be objective, and must state, in terms
      of
      an objective formula or standard, the method for computing the amount of
      compensation payable if the Performance Measure is attained. A Performance
      Measure is considered "pre-established" for purposes of this paragraph if it
      is
      established in writing by the Committee no later than 90 days after the
      commencement of a Performance Period, provided that the outcome is substantially
      uncertain at the time the Committee actually establishes the Performance
      Measure. However, in no event will a Performance Measure be considered to be
      pre-established if it is established after 25% of a Performance Period has
      elapsed. A Performance Measure is considered "objective" if a third party having
      knowledge of the relevant facts could determine whether the Performance Measure
      is met. A formula or standard is considered "objective" if a third party having
      knowledge of the relevant performance results could calculate the amount to
      be
      paid to the Participant.

     

    
      The
        Performance Measure may be based on
        one or more of the following criteria and may be based on attainment of a
        particular level of, or on a positive change in, a factor: revenue, revenue
        per
        employee, earnings before income tax (profit before taxes), earnings before
        interest and income tax, net earnings (profit after taxes), earnings per
        employee, tangible, controllable or total asset turnover, earnings per share,
        operating income, total shareholder return, market share, return on equity,
        return on invested capital, growth in earnings, before-tax return on net
        assets,
        after-tax return on net assets, distribution expense, inventory turnover,
        economic value added (economic profit). 

    

     

    7. Payment
      of Awards. 

    

    (a) Subject
      to Sections 8 and 9, the value of the Earned Performance Award with respect
      to a
      Performance Period will be paid on
      the
      15th
      day of
      the Corporation's February fiscal month following the end of the Performance
      Period (or as soon thereafter as is administratively reasonable),
      provided the Participant is employed by the Operating Unit as of the last day
      of
      such Performance Period, and such payment, if any is earned, shall be made
      in
      the following form:  (i) 50% of the value thereof in the form of cash; and
      (ii) 50% of the value thereof in the form of common stock of HNI Corporation
      as
      Bonus Stock or deferred shares, as elected by the Participant, and as granted
      by
      the Board under the 1995 Stock-Based Compensation Plan or the 2007 Stock-Based
      Compensation Plan, if approved by the shareholders of the Corporation.
For
      purposes hereof, an Earned Performance Award will be deemed to be paid as soon
      as administratively reasonable after the date specified above if it is paid
      within six months thereafter. All
      Earned Performance Awards that are paid in cash will be paid in U.S. dollars.
      The Corporation may deduct from any payment such amounts as may be required
      to
      be withheld under any federal, state, or local tax laws. In the case of a
      Participant who is a 162(m) Employee, the Committee shall certify the extent
      to
      which the Participant has satisfied each of his or her Performance Measure.
      

    

    (b)
       All
      Earned Performance Awards paid to the Chief Executive Officer and Chief
      Financial Officer of the Corporation under this Plan are subject to forfeiture
      as provided in Section 304 of the Sarbanes-Oxley Act of 2002, and the
      implementing rules and regulations. Notwithstanding anything in the Plan to
      the
      contrary, the Board may reduce the amount of, or completely eliminate, an Earned
      Performance Award otherwise payable to a Participant for a Performance Period
      if
      the Board determines that due to the Participant's performance or behavior
      during or immediately following such Performance Period the Participant should
      not be entitled to the Earned Performance Award.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8. Termination
      of Employment. 

    

    (a) 
      If a
      Participant terminates employment with the Corporation and its Subsidiaries
      due
      to death, Disability, or Retirement occurring before the last day of a
      Performance Period, the Participant's Earned Performance Award, if any, will
      be
      payable as soon as practicable after the end of such Performance Period, and
      the
      value of such Award shall be equal to a value, determined using the Performance
      Measure as of the end of the Performance Period, equal to the product of: (i)
      the number of the Target Performance Award; multiplied by (ii) a fraction,
      the
      numerator of which is the number of months in the Performance Period that
      occurred prior to such termination of employment, and the denominator of which
      is the total number of months in such Performance Period. For these purposes,
      a
      Participant will be credited with a month during a Performance Period only
      if he
      or she is employed for at least 15 days during the month. 

    

    (b)
       Except
      as
      provided in Section 9, if a Participant's employment with the Corporation and
      its Subsidiaries terminates for any reason other than death, Disability or
      Retirement before the last day of a Performance Period, the Participant will
      not
      be entitled to any payment or award under this Performance Plan unless otherwise
      determined by the Board. 

    

    9. Change
      in Control of the Corporation. 

    

    (a)
       In
      connection with a Change in Control of the Corporation, the value of each Target
      Performance Award shall be determined by the Board prior to the effective date
      of the Change in Control, and each Participant's Target Performance Award will
      become payable without proration within
      30
      days
      prior to
      such date. 

    

    (b) A
      "Change
      in Control of the Corporation" shall mean:

    

    (i)
      the
      acquisition by any individual, entity or group (with the meaning of Section
      13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
      "Exchange Act")) (a "Person") of beneficial ownership (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of 35%
      or more
      of either: (A) the then outstanding shares of common stock of the Corporation
      (the "Outstanding Corporation Common Stock"); or (B) the combined voting power
      of the then outstanding voting securities of the Corporation entitled to vote
      generally in the election of Directors (the "Outstanding Corporation Voting
      Securities"); provided, however, that for purposes of this subsection (i),
      the
      following acquisitions shall not constitute a Change in Control: (I) any
      acquisition directly from the Corporation; (II) any acquisition by the
      Corporation; (III) any acquisition by any employee benefit plan (or related
      trust) sponsored or maintained by the Corporation or any corporation controlled
      by the Corporation; or (IV) any acquisition by any corporation pursuant to
      a
      transaction which complies with clauses (A), (B) and (C) of subsection (iii)
      of
      this paragraph; or

    

    (ii)
      individuals who, as of the date hereof, constitute the Board (the "Incumbent
      Board") cease for any reason to constitute a
      majority
      of the
      Board; provided, however, that any individual becoming a Director subsequent
      to
      the date hereof whose election, or nomination for election by the Corporation's
      shareholders, was approved by a vote of a
      majority
      of the
      Directors then comprising the Incumbent Board shall be considered as though
      such
      individual were a member of the Incumbent Board, but excluding, for this
      purpose, any such individual whose initial assumption of office occurs as a
      result of an actual or threatened election contest with respect to the election
      or removal of Directors or other actual or threatened solicitation of proxies
      or
      consents by or on behalf of a Person other than the Board; or

    

    (iii)
      consummation of a reorganization, merger or consolidation or sale or other
      disposition of all or substantially all of the assets of the Corporation (a
      "Business Combination"), in each case, unless, following such Business
      Combination: (A) all or substantially all of the individuals and entities who
      were the beneficial owners, respectively, of the Outstanding Corporation Common
      Stock and Outstanding Corporation Voting Securities immediately prior to such
      Business Combination beneficially own, directly or indirectly, 50% or more
      of,
      respectively, the then outstanding shares of common stock and the combined
      voting power of the then outstanding voting securities entitled to vote
      generally in the election of Directors, as the case may be, of the corporation
      resulting from such Business Combination (including, without limitation, a
      corporation which as a result of such transaction owns the Corporation or all
      or
      substantially all of the Corporation's assets either directly or through one
      or
      more subsidiaries) in substantially the same proportions as their ownership,
      immediately prior to such Business Combination of the Outstanding Corporation
      Common Stock and Outstanding Corporation Voting Securities, as the case may
      be;
      (B) no Person (excluding any corporation resulting from such Business
      Combination or any employee benefit plan (or related trust) of the Corporation
      or such corporation resulting from such Business Combination) beneficially
      owns,
      directly or indirectly, 35%
      or more
      of, respectively, the then outstanding shares of common stock of the corporation
      resulting from such Business Combination or the combined voting power of the
      then outstanding voting securities of such corporation except to the extent
      that
      such ownership existed prior to the Business Combination; and (C) at least
      a
      majority of the members of the board of directors of the corporation resulting
      from such Business combination were members of the Incumbent Board at the time
      of the execution of the initial agreement, or of the action of the Board,
      providing for such Business Combination.

    

    10. Sale
      of Operating Unit. Except
      as
      provided in paragraph 9, in the event of the sale of substantially all of the
      stock or assets of an Operating Unit, with respect to each Participant employed
      by such Operating Unit on the date of such sale, the value of each Award shall
      be determined as of the date of such sale by the Board based on the percentage
      of the Performance Measure completed as of the date of sale, the number of
      months of the Performance Period completed at the time of sale, the actual
      purchase price of the Operating Unit and such other factors as the Board deems
      relevant in light of the circumstances of the sale. Payments pursuant to this
      Section 10 shall be made 60 days, or as soon thereafter as is administratively
      reasonable, following the date of the sale. For these purposes, a month will
      be
      considered to have been completed at the time of the sale only if the sale
      occurs later than the 14th
      day of
      the month. 

    

    11. Transfers
      and Changes in Responsibilities.

    

    (a) 
      If a
      Participant's responsibilities materially change or the Participant is
      transferred during a Performance Period to another Operating Unit or to a
      position that is not designated or eligible to participate in this Performance
      Plan, the Corporation may, as determined by the Board, either: (i) continue
      the Participant's participation in this Performance Plan and establish a new
      Target Performance Award and Performance Measure for the Participant with
      respect to his or her new position; or (ii) terminate the Participant's
      participation in this Performance Plan and, as of the date of such change or
      transfer, prorate the Participant's Target Performance Award on the basis of
      the
      ratio of the number of months of the Participant's participation during the
      Performance Period to which such Target Performance Award relates to the
      aggregate number of months in such Performance Period. For these purposes,
      a
      Participant will be considered to have participated for a month during a
      Performance Period only if he or she participated for at least 15 days during
      the month. 

    

    (b) If
      in the
      event of such a change or transfer and the Participant's participation in this
      Performance Plan is not terminated pursuant to Section 11(a)(ii), then the
      Participant's Earned Performance Award will be prorated on the basis of the
      number of months of service by the Participant at each Operating Unit during
      the
      Performance Period. For these purposes, a Participant will be credited with
      a
      month of service at an Operating Unit only if he or she was employed by the
      Operating Unit for at least 15 days during the month. 

    

    12. Security
      of Payment of Benefits.
      Unless
      otherwise determined by the Board, all Earned Performance Awards will be paid
      from the Corporation's general assets, and nothing contained in this Performance
      Plan will require the Corporation to set aside or hold in trust any funds for
      the benefit of any Participant, who will have the status of a general unsecured
      creditor of the Corporation.

    

    13. Administration
      of the Plan. 

    

    (a)
        This
      Performance Plan will be administered by the Board, which may from time to
      time
      delegate all or any part of its authority under this Performance Plan to the
      Committee. Notwithstanding the forgoing, in the case of any 162(m) Employee,
      the
      Committee shall have sole and exclusive authority to: (i) establish the
      Performance Measures for such employee; (ii) determine and certify the
      achievement of the Performance Measures for such employee, and (iii) make any
      other discretionary decision affecting such employee under the
      Plan.

    

    (b) The
      Board
      will take such actions as are required to be taken by it hereunder, may take
      the
      actions permitted to be taken by it hereunder, and will have the authority
      from
      time to time to interpret this Performance Plan and to adopt, amend, and rescind
      rules and regulations for implementing and administering this Performance Plan.
      All such actions will be in the sole discretion of the Board and, when taken,
      will be final, conclusive, and binding. Without limiting the generality or
      effect of the foregoing, the interpretation and construction by the Board of
      any
      provision of this Performance Plan or of any agreement, notification, or
      document evidencing the grant of benefits payable to Participants and any
      determination by the Board in its sole discretion pursuant to any provision
      of
      this Performance Plan or any provision of such agreement, notification, or
      document will be final and conclusive.

    

    (c) The
      existence of this Performance Plan or any right granted or other action taken
      pursuant hereto will not affect the authority of the Board or the Corporation
      to
      take any other action, including in respect of the grant or award of any annual
      or long-term incentive or other right or benefit, whether or not authorized
      by
      this Performance Plan, subject only to limitations imposed by other benefit
      plans of the Corporation and by applicable law.

    

    14. Miscellaneous. 

    

    (a)  
      This
      Performance Plan will not confer upon any Participant any right with respect
      to
      continuance of employment or other service with the Corporation or any
      Subsidiary, nor will it interfere in any way with any right the Corporation
      or
      any Subsidiary would otherwise have to terminate or modify the terms of such
      Participant's employment or other service at any time.

    

    (b) Except
      as
      otherwise provided in this Performance Plan, no right or benefit under this
      Performance Plan will be subject to anticipation, alienation, sale, assignment,
      pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell,
      assign, pledge, encumber, or charge such right or benefit will be void. No
      such
      right or benefit will in any manner be liable for or subject to the debts,
      liabilities, or torts of a Participant.

    

    (c) This
      Performance Plan may be amended or terminated from time to time by the Board.
      In
      the event this Performance Plan is terminated before the last day of a
      Performance Period, the Earned Performance Award otherwise payable for such
      Performance Period will be prorated on the basis of the ratio of the number
      of
      months in such Performance Period prior to such termination to the aggregate
      number of months in such Performance Period and will be paid only after the
      end
      of such Performance Period, which will be deemed to continue until the
      expiration thereof as if this Performance Plan had not been
      terminated.
      For
      these
      purposes, a month will be considered to have been completed at the time of
      the
      amendment or termination only if the amendment or termination is effective
      later
      than the 14th
      day of
      the month. Any
      such
      termination shall comply with the requirements of Section 409A of the
      Code.

    

    The
      Performance Plan will be terminated in the event the shareholders of the
      Corporation approve a complete liquidation or dissolution of the Corporation
      that will be taxed under Section 331 of the Code. In such case, the value of
      each Target Performance Award shall be determined by the Board prior to the
      effective date of the dissolution, and each Participant's Target Performance
      Award will become payable upon such dissolution.

    

    (d) If
      any
      provision in this Performance Plan is held to be invalid or unenforceable,
      no
      other provision of this Performance Plan will be affected thereby.

    

    (e) This
      Performance Plan will be governed by and construed in accordance with applicable
      United States federal law and, to the extent not preempted by such federal
      law,
      in accordance with the laws of the State of Iowa, without giving effect to
      the
      principles of conflict of laws thereof.

    

    15. Effective
      Date.
      The
      amendment and restatement of this Performance Plan set forth herein will become
      effective as of August 8, 2006.

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