Document:

exv10w2

 

Exhibit 10.2

VISKASE COMPANIES, INC.

FORM OF AMENDMENT NO. 1 TO STOCK OPTION AGREEMENT

     THIS AMENDMENT NO. 1 TO STOCK OPTION AGREEMENT (this “Amendment”) is made by and between
Viskase Companies, Inc., a Delaware corporation (the “Company”), and [Name], an officer or employee
of the Company or a subsidiary of the Company (the “Participant”) effective as of April 8, 2005.

     In consideration of the mutual covenants herein contained and other good and valuable
consideration, receipt of which is hereby acknowledged, the Company and the Participant hereby
agree as follows:

     1. Exercisability. Section 3 of the Agreement is hereby amended and restated to read
in its entirety as follows:

     “Exercisability. This Option shall become exercisable as follows:

	 	 	 
	 	 	Cumulative Number of Option Shares
	Date Option Becomes Exercisable	 	as to Which Option is Exercisable
	January 13, 2006

	 	33-1/3% or [One-Third] Shares
	January 13, 2007

	 	66-2/3% or [Two-Thirds] Shares
	January 13, 2008

	 	100% or [Total Shares]
	

	 	 
	Total

	 	100% or [Total Shares]

; provided, however, that if the Company experiences a Change of Control,
and on or before the twelve-month anniversary of the date of such Change of Control the
Company terminates the Participant’s employment without Cause, then this Option shall become
fully vested. Subject to the foregoing, the effects upon this Option by reason of the
Participant’s termination of employment with the Company or any of its subsidiaries due to
death, Retirement, Cause or Disability are provided for in Section 6(e) of the Plan.”

     2. Definitions. Capitalized terms used herein and not otherwise defined shall have
the meanings ascribed to such terms in the Viskase Companies, Inc. 2005 Stock Option Plan. In
addition, the following definitions are hereby added to the Agreement:

     “Affiliate” shall mean, with respect to any specified Person, any other Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under common
control with, such specified Person. The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise; provided,
that beneficial ownership of 10% or more of the Voting Stock of the Person shall be deemed to be
control. The terms “controlling” and “controlled” shall have meanings correlative of the
foregoing.

     “Change in Control” shall mean the occurrence of one or more of the following events:

     (i) any direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one transaction or a series of related
transactions, of all or substantially all of the assets of the Company to any Person or
group of related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”),
other than a transaction in which the transferee is controlled by one or more Permitted
Holders;

     (ii) any Person or Group, other than Permitted Holders, is or becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person
shall be deemed to have beneficial ownership of all shares that such Person has the right to
acquire, whether such right is exercisable immediately or only after the passage of time),
directly or indirectly whether by merger or consolidation, of a majority of the total
outstanding Voting Stock of the Company as measured by voting power; provided that there
shall be no Change in Control pursuant to this clause (ii) if the Permitted

 

 

Holders continue to have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the Board of Directors of the Company;

     (iii) the adoption of a plan for the liquidation or dissolution of the Company; or

     (iv) during any two-year period, individuals who on the date such period commenced
constituted a majority of the Board of Directors (together with any new directors whose
election by such Board of Directors or whose nomination for election by the stockholders of
the Company was approved pursuant to a vote of a majority of the directors then still in
office who were either directors on the date such period commenced or whose election or
nomination for election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors then in office; provided, that there shall be no Change
in Control pursuant to this clause (iv) if since the date such period commenced the
Permitted Holders continued to own, directly or indirectly, (A) at least 90% of the Voting
Stock of the Company held by the Permitted Holders as of the date such period commenced and
(B) more Voting Stock than any other Person or Group.

     “Permitted Holders” shall mean Carl C. Icahn, Merrill Lynch & Co., Inc., Northeast Investors
Trust and their respective Affiliates.

     “Person” shall mean a “person,” as such term is used in Sections 13(d) and 14(d) of the
Exchange Act.

     “Voting Stock” shall mean securities of any class or classes of capital stock of the Company
entitling the holders thereof (whether at all times or only so long as no senior class of stock has
voting power by reason of any contingency) to vote in the election of members of the Board of
Directors (or equivalent governing body) of the Company.

     3. Entire Agreement. This Amendment shall be considered an amendment to and a part of
the Agreement.

     4. Effect of Amendment. Except as specifically stated herein, all terms, covenants
and conditions of the Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, Viskase Companies, Inc. has caused this Amendment to be duly executed by
its duly authorized officer and said Participant has hereunto signed this Amendment on his own
behalf, as of the day and year first above written.

	 	 	 	 	 
	 
	 	VISKASE COMPANIES, INC.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 
	 
	 	[Name], Participant<PAGE>

                                                                    EXHIBIT 10.3

                                   BELK, INC.
                              ANNUAL INCENTIVE PLAN

      The Belk, Inc. ("Company") Annual Incentive Plan is set forth in this
document and the Bonus Eligible Associate Compensation Guidelines attached to
this document as Exhibit A and shall be effective beginning with the fiscal year
ending in January 2006.

                                 ADMINISTRATION

      The Annual Incentive Plan shall be administered by the Compensation
Committee of the Board of Directors ("Compensation Committee"), each member of
which is an "outside director" within the meaning of section 162(m) of the
Internal Revenue Code.

                                   ELIGIBILITY

      Employees who are deemed to be key employees by the Compensation Committee
in its sole discretion shall be eligible to be participants in the Annual
Incentive Plan for any fiscal year.

                               PERFORMANCE GOALS

      The Compensation Committee shall establish performance goals for each
participant for a fiscal year no later than 90 days after the beginning of such
year. The performance goals for each participant may be different and, further,
each participant's performance goals may be based on different business
criteria, as referenced in the attached Bonus Eligible Associate Compensation
Guidelines. However, all performance goals for a participant who is a covered
employee (within the meaning of Section 162(m) of the Internal Revenue Code)
shall be based on one or both of the following business criteria as applied to
the Company or any division, department or other part of the Company: (1) sales
and (2) normalized earnings before interest and taxes.

      The Compensation Committee no later than 90 days after the beginning of
each fiscal year shall establish objective rules for determining whether each
participant's performance goals for such fiscal year have been satisfied.
Further, in determining whether the performance goals have been satisfied, the
Compensation Committee may look at the performance of the Company as constituted
on the first day of the fiscal year, the last day of the fiscal year, or either
such date if there is an acquisition, disposition, or other corporate
transaction involving the Company during such fiscal year.

      A bonus shall be paid to a participant under the Annual Incentive Plan for
a fiscal year only to the extent the participant satisfies his or her
performance goals for the bonus for such fiscal year and the Compensation
Committee shall certify the extent, if any, to which a participant has satisfied
his or her performance goals for a fiscal year. Finally, the Compensation
Committee shall have the discretion to reduce (but not to increase) the bonus
payable under the Annual Incentive Plan to any participant if the Compensation
Committee for any reason deems such reduction appropriate under the
circumstances.

                              MAXIMUM BONUS ACCOUNT

      The maximum annual bonus payable under the Annual Incentive Plan to any
participant for any fiscal year is $1,500,000.

<PAGE>

                        INTERNAL REVENUE CODE SECTION 162(m)

      The Compensation Committee intends for the bonus payable under the Annual
Incentive Plan to a participant who is a "covered employee" within the meaning
of Section 162(m) of the Internal Revenue Code to be deductible under such
section and for these Administrative Rules to be construed to effect such
intent.

                            AMENDMENT AND TERMINATION

      The Compensation Committee has the power to amend the Annual Incentive
Plan from time to time as the Compensation Committee deems necessary or
appropriate and to terminate the plan if the Compensation Committee deems such
termination is in our best interest.

<PAGE>

                                    EXHIBIT A

                      BONUS ELIGIBLE ASSOCIATE COMPENSATION
                                   GUIDELINES
                                      FY06

<PAGE>

PURPOSE OF       The purpose of the bonus plan is to pay for performance by
BONUS            rewarding those who achieve their financial objectives versus
                 plan.

BONUS            To be eligible for a bonus, the following criteria must be met:
ELIGIBILITY
                 -     The position must be a bonus eligible position.

                 -     New hires/new bonus eligible associates must be assigned
                       to a store, division, area or department for a minimum
                       of three months/13 weeks of THE FISCAL YEAR.

                 -     All associates must achieve a "Good" rating or better on
                       the performance appraisal.

BONUS            -     Actual bonus percent payout will be calculated at the
CALCULATIONS           nearest 10th of plan attainment (ROUNDED DOWN).

                 -     All bonus calculations will be prorated based upon
                       number of weeks assigned to that store, division, area,
                       or department. For example, for every week that a new
                       store manager has been in the position, he/she will
                       receive 1/52th of the bonus they would have normally
                       received had they been in the position for one year. If
                       a manager has been in a store for 26 weeks, then his
                       bonus would be pro-rated by 26/52 or 50% of the total
                       bonus amount.

                 -     New Hires will be evaluated against plan for the ENTIRE
                       FISCAL YEAR of the store, division, area or department
                       they are in and prorated for the number of weeks that
                       they are actually in the position.

                       For Merchandising and Planning & Allocation associates,
                       the following procedure should be used for setting
                       Sales, Gross Margin $, Gross Margin %, and Turnover
                       Goals on Section A of the Performance Appraisal:

                        -     Use the MAP plan from the "I" (Initial) plan for
                              Spring to establish MID-YEAR GOALS. This plan
                              should be in place by Jan. 1.

                        -     Use the MAP plan from the "I" (Initial) plan for
                              Fall to establish YEAR-END GOALS. This plan should
                              be in place by July 1.

                        -     Associates will be evaluated at year-end based on
                              year-end actual results versus the "I" (Initial)
                              Plan.

                       For BSS non-merchandising executives & for bonus
                       eligible associates in the division, use the Revised
                       Original Budget to establish "plan" for sales, DCP,
                       EBIT, payroll, and other financial measurements.

                 -     Associates with over 12 months service with Belk will be
                       evaluated against plan for each FULL MONTH they are in
                       the assignment.

BONUS            Each bonus eligible position has a trigger or triggers. A
TRIGGERS         trigger is a predefined financial achievement that must be
                 reached to be eligible for any portion of a bonus.

                 -     For all executives (exceptions listed below), Total Belk
                       must achieve 90% of EBIT as reflected on line T015 of the
                       income statement.

                 -     For Division/Store/Salon executives (excluding Chairman
                       & DOS), the division, region, store or salon must
                       achieve 95.0% of DIRECT CONTROLLABLE NET PROFIT $ plan
                       as reflected on line T006 of the income statement.

                 -     For BSS Merchants and Planning & Allocation (excluding
                       President of Merchandising, GMM, EVP & SVP) associates
                       must achieve their gross margin % goal within 150 basis
                       points.

                 DUAL TRIGGER POSITIONS

                 -     EVP GMM and EVP Private Brands have additional trigger
                       to achieve 100 basis points of Individual MAP GM% Rate
                       Plan.

                 -     SVP Allocation has additional trigger to achieve 75
                       basis points of Total MAP GM% Rate Plan.

                 -     Division Chairman and SVP Director of Stores have
                       additional trigger of 90% Total EBIT.

<PAGE>

LEAVE            -     Bonus eligible associates that have taken a Leave of
OF ABSENCE             Absence will not be prorated for the first 12 weeks of a
                       Leave of Absence. This time frame taken on leave will be
                       included in the financial data pulled for bonus
                       calculation.

                 -     For leaves greater than 12 weeks, the bonus will be
                       prorated for the number of weeks in position minus
                       number of weeks taken on leave IN EXCESS of 12 weeks.
                       This time frame taken on leave will not be included in
                       the financial data pulled for bonus calculation.

TRANSFERS &      -     The associate will be evaluated on store, division,
PROMOTIONS             area, or department results during the time period they
                       are in the store, division, area, or department.

                 -     Before an associate is transferred or promoted, a
                       performance evaluation should be completed using the
                       planned results for the months the associate was in the
                       original position.

                 -     If an earned bonus is due, it should be prorated for the
                       number of weeks employed in that position and will be
                       calculated for that time period with the LAST salary
                       earned AT THAT POSITION.

                 -     EARNED BONUS WILL BE AWARDED DURING THE SAME TIME FRAME
                       AS OTHER BONUS ELIGIBLE ASSOCIATES.

                 -     At the start of the second job, a performance evaluation
                       should be completed in which the goals for the remaining
                       weeks of the year are reviewed with the associate.

                 -     The associate will be held accountable for these goals
                       as it relates to bonus eligibility.

FORFEITURE             -     An associate who voluntarily terminates employment
OF BONUS                     prior to the end of the fiscal year or who is
                             terminated for cause will forfeit the award as
                             will anyone no longer employed at the time the
                             awards are actually paid. Exceptions are in the
                             case of death or total and permanent disability or
                             retirement. If an associate retires, all bonus
                             calculations will be prorated based upon time
                             assigned to store, division, area, or department.
                             Retirees will receive any bonus due during the
                             same time frame as other bonus eligible
                             associates.

                       -     An associate that has a current written
                             disciplinary warning, signed by the associate (or
                             witness) and supervisor, with time frames, at the
                             time bonuses are awarded, will not be eligible for
                             an award.

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