Document:

INTRICON CORPORATION EXHIBIT 10.10.1 TO FORM 10-K FOR FISCAL YEAR ENDED 12-31-2008

Exhibit 10.10.1 

Summary Sheet for Director Fees 

In December 2008, the Compensation Committee determined that the fees
payable to directors in 2009 would remain the same as those paid in 2008.
Accordingly, for 2009:

	
 

	
 

	
 

	
 

	
•

	
the chairman of the Board will receive an annual retainer of $49,000,
 the chairman of the Audit Committee will receive an annual retainer of
 $34,000 and each non-employee member of the Board, other than the chairman of
 the Board and the chairman of the Audit Committee, will receive an annual
 retainer of $24,000, in each case payable in quarterly installments.

	
 

	
 

	
 

	
 

	
•

	
each non-employee member of the Board will received $1,000 for each
 Board meeting attended in person and $500 for each telephonic meeting of the
 Board attended, and $1,000 for each committee meeting attended in person and
 $500 for each telephonic meeting of the committee attended of which such
 non-employee member of the Board is a member; however, no fee will be payable
 for telephonic board and committee meetings that last less than 30 minutes.

Directors are eligible to receive awards pursuant to the 2006 Equity
Incentive Plan. Options are automatically granted to each person who is
re-elected or continues as a non-employee director at the annual meeting of
shareholders of the Company as follows: the Chairman is granted options to
purchase 12,000 shares of common stock and the other non-employee directors
each are granted options to purchase 10,000 shares of common stock. The
exercise price will be equal to the closing price of the common stock of the
Company on the date of the annual meeting. The options will vest in three
equal, annual installments beginning one year after the date of grant, except
that they will become immediately exercisable upon a “change in control” as defined
in the 2006 Equity Incentive Plan or upon the death or disability of the
recipient, and will expire ten years after the date of grant, unless terminated
earlier by the terms of the option. 

Directors are also eligible to participate in the Non-Employee Directors
Stock Fee Election Program (the “Program”) under the Company’s 2006 Equity
Incentive Plan. The Program gives each non-employee director the right under
the Incentive Plan to elect to have some or all of his quarterly director fees
paid in shares of the Company’s common stock rather than cash. The minimum
amount that can be the subject of such election by a director is 25% of his
quarterly director fees. The shares to be issued will be valued based on the
last reported sale price of the common stock as reported on The Nasdaq Global
Market on the first business day of each calendar quarter when quarterly
director fees are paid. The number of shares that will be issued for any such
quarterly director fees with respect to which an election is in effect will be
equal to the amount of the election divided by the applicable last sale price.
No fractional shares will be issued and a director will receive cash in lieu of
any fractional shares. That portion of the quarterly director fees for which no
election is in effect will continue to be paid in cash. The shares so purchased
will be deemed fully vested as of the quarterly payment date. 

Under the Non-Employee Director and Executive Officer Stock Purchase
Program, directors may purchase common stock directly from the Corporation at
the last reported sale price on the date that the election to purchase is made.INTRICON CORPORATION EXHIBIT 10.10.2 TO FORM 10-K FOR FISCAL YEAR ENDED 12-31-2008

Exhibit 10.10.2 

Summary Sheet for Executive Officer
Compensation 

Base
Salary

In December 2008, the Compensation Committee of the Board of Directors
made determinations with respect to the salaries to be paid to executive
officers in 2009 and the bonuses and stock options to be awarded to the
executive officers for services in 2008 as follows: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name

	
 

	
2009
 Annual

 Base Salary

	
 

	
2008 Annual

 Bonus

	
 

	
Stock
 Options 

 Awarded

	
 

	
Mark S.
 Gorder,

 President and Chief Executive Officer

	
 

	
$

	
350,000

	
 

	
$

	
—

	
 

	
 

	
20,000

	
 

	
Scott
 Longval,

 Chief Financial Officer and Treasurer

	
 

	
$

	
165,000

	
 

	
$

	
—

	
 

	
 

	
10,000

	
 

	
Steven M.
 Binnix,

 Vice President and General Manager of RTIE

	
 

	
$

	
175,000

	
 

	
$

	
—

	
 

	
 

	
5,000

	
 

	
Christopher
 D. Conger,

 Vice President, Research and Development

	
 

	
$

	
185,000

	
 

	
$

	
—

	
 

	
 

	
10,000

	
 

	
Michael P.
 Geraci,

 Vice President, Sales and Marketing

	
 

	
$

	
200,000

	
 

	
$

	
—

	
 

	
 

	
10,000

	
 

	
Dennis L.
 Gonsior,

 Vice President, Global Operations

	
 

	
$

	
185,000

	
 

	
$

	
—

	
 

	
 

	
10,000

	
 

	
Greg
 Gruenhagen

 Vice President of Corporate Quality

	
 

	
$

	
125,000

	
 

	
$

	
—

	
 

	
 

	
10,000

	
 

The exercise price of the stock options is equal to $4.69 per share,
the closing price of the common stock of the Company on the date of the Compensation
Committee meeting. The options will vest in three equal, annual installments
beginning one year after the date of grant, except that they will become
immediately exercisable upon a “change in control” as defined in the 2006
Equity Incentive Plan or upon the death or disability of the recipient, and
will expire ten years after the date of grant, unless terminated earlier by the
terms of the option.

2009
Incentive Plan 

In February 2009, the Compensation Committee adopted the Annual
Incentive Plan for Executives and Key Employees for Fiscal Year 2009 (the “2009
Incentive Plan”) . Pursuant to the 2009 Incentive Plan, executive officers and
selected key employees of IntriCon are eligible to receive incentive
compensation based on (i) IntriCon exceeding certain net income targets for
2009 and (ii) achievement of designated strategic objectives. A participant
will receive incentive compensation only if both the minimum net income target
and some or all of the strategic objectives are achieved. 

Based on IntriCon achieving 100% of targeted net income for 2009, Mr.
Gorder would be eligible to receive incentive compensation equal to 50% of his
2009 salary and each of the other Named Officers would be eligible to receive
incentive compensation equal to 40% of their 2009 salary. In the event that
IntriCon achieves 80% of targeted net income for 2009, Mr. Gorder would be
eligible to receive incentive compensation equal to 25% of his 2009 salary and
each of the other executive officers would be eligible to receive incentive
compensation equal to 20% of their 2009 salary. In the event that IntriCon
achieves 150% of targeted net income for 2009, Mr. Gorder would be eligible to
receive incentive compensation equal to 75% of his 2009 salary and each of the
other executive officers would be eligible to receive incentive compensation
equal to 60% of their 2009 salary. Between these points, the amount of the
incentive compensation available will increase or decrease proportionately
based upon IntriCon achieving more or less than targeted net income; however,
no incentive compensation will be paid if IntriCon achieves less than 80% of
targeted net income and the maximum incentive compensation payable is capped at
IntriCon achieving 150% of target net income. IntriCon will establish weighted
strategic objectives for the executives and, in all cases, the amount of incentive compensation paid
will depend on the extent to which strategic objectives are satisfied.

Plans
and Other Arrangements

The executive officers are also eligible to participate in the
Company’s broad-based benefit programs generally available to its salaried
employees, including health, disability and life insurance programs, and
qualified 401(k) plan. Under the Non-Employee Director and Executive Officer
Stock Purchase Program, executive officers may purchase common stock directly
from the Corporation at the last reported sale price on the date that the
election to purchase is made.INTRICON CORPORATION EXHIBIT 10.21.4 TO FORM 10-K FOR FISCAL YEAR ENDED 12-31-2008

Exhibit 10.21.4

 

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER

 

This THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER (this “Amendment”) is made and entered into as of December 31, 2008, by and among INTRICON CORPORATION, a Pennsylvania corporation (“IntriCon”), INTRICON, INC., formerly known as, RESISTANCE TECHNOLOGY, INC., a Minnesota corporation (“RTI”), RTI ELECTRONICS, INC., a Delaware corporation (“RTIE”), and INTRICON TIBBETTS CORPORATION (formerly known as TI Acquisition Corporation), a Maine corporation (“ITC”) (each of IntriCon, RTI, RTIE and ITC, a “Borrower” and,
collectively, “Borrowers”), and BANK OF AMERICA N.A. as successor by merger to LASALLE BANK NATIONAL ASSOCIATION., a national banking association (“Bank”). 

 

RECITALS: 

 

A.        Borrowers and Bank are parties to that certain Loan and Security Agreement dated as of May 22, 2007 (as the same may have been or may hereafter be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”). Capitalized terms not otherwise defined in this Amendment shall have the meanings assigned to them in the Loan Agreement. 

 

B.         Borrowers have requested that Bank modify the Fixed Charge Coverage covenant.

 

C.         Bank has agreed to amend the Loan Agreement and certain of the Loan Documents upon and subject to the conditions set forth in this Amendment.

 

AGREEMENTS:

 

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

 

1.         Recitals. Borrowers and Bank agree that the Recitals set forth above are true and correct.

 

2.         Amendment to Fixed Charge Coverage. Section 10.3 of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the foregoing:

 

10.3      Fixed Charge Coverage. As of the last day of each calendar quarter, for the period of four (4) consecutive calendar quarters then-ended, the Borrowers and their respective Subsidiaries shall maintain a ratio of (a) the total of consolidated EBITDA for such period, minus the sum of all income taxes paid in cash by the Borrowers on a consolidated basis and all Capital Expenditures of the Borrowers made during such period which are not financed with Funded Debt, to (b) the sum for such period of (i) Interest Charges plus (ii) required or scheduled payments made in respect of principal of Funded Debt, of not less than 1.25 to 1.00 on and before December 31, 2008, and not less than 1.50 to 1.00 thereafter.

 

3.         Conditions Precedent. This Amendment shall become effective upon delivery to Bank of the following, each in form and substance acceptable to Bank:

 

a.         This Amendment, duly executed by Borrowers.

 

1

b.         Such other documents, instruments and agreements as Bank may reasonably require, and payment of all unpaid legal fees and expenses incurred by Bank through the date of this Amendment in connection with the Loan Agreement and this Amendment. 

 

4.         Representations: No Default. Each Borrower represents and warrants that: (a) such Borrower has the power and legal right and authority to enter into this Amendment and has duly authorized the execution and delivery of this Amendment and other agreements and documents executed and delivered by such Borrower in connection herewith, (b) neither this Amendment nor the agreements contained herein contravene or constitute a Default or Event of Default under the Loan Agreement or a default under any other agreement, instrument or indenture to which such Borrower is a party or a signatory, or any provision of such Borrower’s Articles of Incorporation or Bylaws or, to the best of such Borrower’s knowledge, any other agreement or requirement of law, or result in the imposition of any lien or
other encumbrance on any of its property under any agreement binding on or applicable to such Borrower or any of its property except, if any, in favor of Bank, (c) no consent, approval or authorization of or registration or declaration with any party, including but not limited to any governmental authority, is required in connection with the execution and delivery by such Borrower of this Amendment or other agreements and documents executed and delivered by such Borrower in connection herewith or the performance of obligations of such Borrower herein described, except for those which such Borrower has obtained or provided and as to which such Borrower has delivered certified copies of documents evidencing each such action to Bank, (d) no events have taken place and no circumstances exist at the date hereof which would give such Borrower grounds to assert a defense, offset or counterclaim to the obligations of such Borrower under the Loan Agreement or any of the other Loan Documents,
(e) there are no known claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys’ fees) of any kind, character or nature whatsoever, fixed or contingent, which such Borrower may have or claim to have against Bank, which might arise out of or be connected with any act of commission or omission of Bank existing or occurring on or prior to the date of this Amendment, including, without limitation, any claims, liabilities or obligations arising with respect to the indebtedness evidenced by the Notes, and (f) no Event of Default has occurred and is continuing under the Loan Agreement. 

 

5.         Affirmation; Further References. Bank and Borrowers each acknowledge and affirm that the Loan Agreement, as hereby amended, is hereby ratified and confirmed in all respects and all terms, conditions and provisions of the Loan Agreement and of each of the other Loan Documents (except as amended by this Amendment) shall remain unmodified and in full force and effect. All references in any document or instrument to the Loan Agreement are hereby amended and shall refer to the Loan Agreement as amended by this Amendment. 

 

6.         Merger and Integration, Superseding Effect. This Amendment, from and after the date hereof, embodies the entire agreement and understanding between the parties hereto and supersedes and has merged into it all prior oral and written agreements on the same subjects by and between the parties hereto with the effect that this Amendment, shall control with respect to the specific subjects hereof and thereof. 

 

7.         Severability. Whenever possible, each provision of this Amendment and any other statement, instrument or transaction contemplated hereby or thereby or relating hereto or thereto shall be interpreted in such manner as to be effective, valid and enforceable under the applicable law of any jurisdiction, but, if any provision of this Amendment or any other statement, instrument or transaction contemplated hereby or thereby or relating hereto or thereto shall be held to be prohibited, invalid or unenforceable under the applicable law, such provision shall be ineffective in such jurisdiction only to the extent of such prohibition, invalidity or unenforceability, without invalidating or rendering unenforceable the remainder of such provision or the remaining provisions of this Amendment or any other
statement, instrument or transaction contemplated hereby or thereby or relating hereto or thereto in such jurisdiction, or affecting the effectiveness, validity or enforceability of such provision in any other jurisdiction. 

 

2

8.         Successors. This Amendment shall be binding upon Borrowers and Bank and their respective successors and assigns, and shall inure to the benefit of Borrowers and Bank and to the respective successors and assigns of Bank. 

 

9.         Costs and Expenses. Each Borrower jointly and severally agrees to reimburse Bank, upon execution of this Amendment, for all reasonable out-of-pocket expenses (including attorneys’ fees and legal expenses of counsel for Bank) incurred in connection with the Loan Agreement, including in connection with the negotiation, preparation and execution of this Amendment and all other documents negotiated, prepared and executed in connection with this Amendment, and in enforcing the obligations of Borrowers under this Amendment, and to pay and save Bank harmless from all liability for, any stamp or other taxes which may be payable with respect to the execution or delivery of this Amendment. 

 

10.        Headings.
The headings of various sections of this Amendment have been inserted for reference only and shall not be deemed to be a part of this Amendment.

 

11.        Counterparts. This Amendment may be executed in several counterparts as deemed necessary or convenient, each of which, when so executed, shall be deemed an original, provided that all such counterparts shall be regarded as one and the same document, and any party to this Amendment may execute any such agreement by executing a counterpart of such agreement. 

 

12.        Governing Law. This Amendment shall be governed by the internal laws of the State of Minnesota, without giving effect to conflict of law principles thereof. 

 

13.        Release of Rights and Claims. Each Borrower, for itself and its successors and assigns, hereby releases, acquits, and forever discharges Bank and its successors and assigns for any and all manner of actions, suits, claims, charges, judgments, levies and executions occurring or arising from the transactions entered into with Bank prior to entering into this Amendment whether known or unknown, liquidated or unliquidated, fixed or contingent, direct or indirect which such Borrower may have against Bank. 

 

14.        No Waiver. Except as expressly provided herein, nothing contained in this Amendment (or in any other agreement or understanding between the parties) shall constitute a waiver of, or shall otherwise diminish or impair, Bank’s rights or remedies under the Loan Agreement or any of the other Loan Documents, or under applicable law.

 

[signature page follows]

 

3

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

 

 

	
BORROWERS:
 	
 
 	
INTRICON CORPORATION,
 a Pennsylvania corporation
 
	
  
 	
 
 	
By: 
 	

 /s/ Scott Longval
 
	
 
 	
 
 	
Name:
 	
Scott Longval
 
	
 
 	
 
 	
Title:
 	
CFO
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
INTRICON, INC., formerly known as,
RESISTANCE TECHNOLOGY, INC.,
a Minnesota corporation
 

 

	
  
 	
 
 	
By: 
 	

 /s/ Scott Longval
 
	
 
 	
 
 	
Name:
 	
Scott Longval
 
	
 
 	
 
 	
Title:
 	
CFO
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
RTI ELECTRONICS, INC.,
 a Delaware corporation
 

 

	
  
 	
 
 	
By: 
 	

 /s/ Scott Longval
 
	
 
 	
 
 	
Name:
 	
Scott Longval
 
	
 
 	
 
 	
Title:
 	
CFO
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
INTRICON TIBBETTS CORPORATION,
 (formerly known as TI Acquisition Corporation)
 a Maine corporation
 

 

	
  
 	
 
 	
By: 
 	

 /s/ Scott Longval
 
	
 
 	
 
 	
Name:
 	
Scott Longval
 
	
 
 	
 
 	
Title:
 	
CFO
 
	
 
 	
 
 	
 
 	
 
 
	
 
 	
 
 	
 
 	
 
 
	
BANK:
 	
 
 	
BANK OF AMERICA N.A.,
 a national banking association
 

 

	
  
 	
 
 	
By: 
 	

 /s/  Thomas P. Sullivan
 
	
 
 	
 
 	
Name:
 	
Thomas P. Sullivan
 
	
 
 	
 
 	
Title:
 	
Vice President
 
	
 
 	
 
 	
 
 

 

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]