Document:

cix-ex105_177.htm

 

Exhibit 10.5

 

FIRST AMENDED AND RESTATED

UNSECURED REVOLVING

DEMAND PROMISSORY NOTE

		
	
$40,000,000.00
	
December 31, 2016

 

 

Section 1.  Promise to Pay.  For and in consideration of value received, the undersigned, Valhi, Inc., a corporation duly organized under the laws of the state of Delaware (“Borrower”), promises to pay, in lawful money of the United States of America, to the order of COMPX INTERNATIONAL INC., a corporation duly organized under the laws of the state of Delaware (“CompX”), or the holder hereof (as applicable, CompX or such holder shall be referred to as the “Noteholder”), the principal sum of FORTY MILLION and NO/100ths United States Dollars ($40,000,000.00) or such lesser amount as shall equal the unpaid principal amount of the loan made by the Noteholder to Borrower together with accrued and unpaid interest on the unpaid principal balance from time to time pursuant to the terms of this Unsecured Revolving Demand Promissory Note, as it may be amended from time to time (this “Note”).  This Note shall be unsecured and will bear interest on the terms set forth in Section 6 below. Capitalized terms not otherwise defined shall have the meanings given to such terms in Section 18 of this Note.

 

Section 2.  Amendment and Restatement.  This Note renews, replaces, amends and restates in its entirety the Unsecured Revolving Demand Promissory Note dated August 3, 2016 in the original principal amount of $40,000,000.00 payable to the order of the Noteholder and executed by the Borrower (the “Original Note”); provided that such amendment and restatement shall operate to renew, amend and modify the rights and obligations of the parties under the Original Note, as provided herein, but shall not extinguish the obligations under the Original Note, nor effect a novation thereof.  As of the close of business on December 31, 2016, the unpaid principal balance of the Original Note was $27,400,000.00, the accrued and unpaid interest thereon was nil and the accrued and unpaid commitment fee thereon was nil, which is the unpaid principal, accrued and unpaid interest and accrued and unpaid commitment fee owed under this Note as of the close of business on the date of this Note.  This Note contains the entire understanding between the Noteholder and the Borrower with respect to the transactions contemplated hereby and supersedes all other instruments, agreements and understandings between the Noteholder and the Borrower with respect to the subject matter of this Note.

 

Section 3.  Place of Payment.  All payments will be made at Noteholder’s address at Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas   75240-2697, Attention:  Treasurer, or such other place as the Noteholder may from time to time appoint in writing.

 

Section 3.  Payments.  The unpaid principal balance of this Note and any accrued and unpaid interest thereon shall be due and payable on the Final Payment Date.  Prior to the Final Payment Date, any accrued and unpaid interest on an unpaid principal balance shall be paid in arrears quarterly on the last day of each March, June, September and December, commencing March 31, 2017.  All payments on this Note shall be applied first to accrued and unpaid interest, next to accrued interest not yet payable and then to principal.  If any payment of principal or interest on this Note shall become due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and the payment shall be the amount owed on the original payment date.

 

Section 4.  Prepayments.  This Note may be prepaid in part or in full at any time without penalty.

 

Section 5.  Borrowings.  Prior to the Final Payment Date, Noteholder expressly authorizes Borrower to borrow, repay and re-borrow principal under this Note in increments of $100,000 on a daily basis so long as:

 

	
 
	
•
	
the aggregate outstanding principal balance does not exceed $40,000,000.00; and

	
 
	
•
	
no Event of Default has occurred and is continuing.

 

Notwithstanding anything else in this Note, in no event will Noteholder be required to lend money to Borrower under this Note and loans under this Note shall be at the sole and absolute discretion of Noteholder.

 

Section 6.  Interest.  The unpaid principal balance of this Note shall bear interest at the rate per annum of the Prime Rate plus one percent (1.00%).  In the event that an Event of Default occurs and is continuing, the unpaid principal amount shall bear interest from the Event of Default at the rate per annum of the Prime Rate plus four percent (4.00%) until such time as the Event of Default is cured.  Accrued interest on the unpaid principal of this Note shall be computed on the basis of a 365- or 366-day year for actual days (including the first, but excluding the last day) elapsed, but in no event shall such computation result in an amount of accrued interest that would exceed accrued 

 

 

 

 

interest on the unpaid principal balance during the same period at the Maximum Rate. Notwithstanding anything to the contrary, this Note is expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid to the Noteholder exceed the Maximum Rate.  If, from any circumstances whatsoever, the Noteholder shall ever receive as interest an amount that would exceed the Maximum Rate, such amount that would be excessive interest shall be applied to the reduction of the unpaid principal balance and not to the payment of interest, and if the principal amount of this Note is paid in full, any remaining excess shall be paid to Borrower, and in such event, the Noteholder shall not be subject to any penalties provided by any laws for contracting for, charging, taking, reserving or receiving interest in excess of the highest lawful rate permissible under applicable law.  All sums paid or agreed to be paid to Noteholder for the use, forbearance or detention of the indebtedness of the Borrower to Noteholder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full of the principal (including the period of any renewal or extension thereof) so that the interest on account of such indebtedness shall not exceed the Maximum Rate.  If at any time the Contract Rate is limited to the Maximum Rate, any subsequent reductions in the Contract Rate shall not reduce the rate of interest on this Note below the Maximum Rate until the total amount of interest accrued equals the amount of interest that would have accrued if the Contract Rate had not been limited by the Maximum Rate.  In the event that, upon the Final Payment Date, the total amount of interest paid or accrued on this Note is less than the amount of interest that would have accrued if the Contract Rate had not been limited by the Maximum Rate, then at such time, to the extent permitted by law, in addition to the principal and any other amounts Borrower owes to the Noteholder, the Borrower shall pay to the Noteholder an amount equal to the difference between:  (i) the lesser of the amount of interest that would have accrued if the Contract Rate had not been limited by the Maximum Rate or the amount of interest that would have accrued if the Maximum Rate had at all times been in effect; and (ii) the amount of interest actually paid on this Note.

 

Section 7.  Fees and Expenses. On the last day of each March, June, September and December, commencing March 31, 2017, and on the Final Payment Date, Borrower shall pay to Noteholder the Unused Commitment Fee for such period, provided, however, Borrower will not owe any Unused Commitment Fee for any part of such period (prorated as applicable) that the Noteholder is a net borrower of money from the Borrower.  In addition, Borrower and any guarantor jointly and severally agree to pay on the Final Payment Date to Noteholder any other cost or expense reasonably incurred by Noteholder in connection with Noteholder’s commitment to Borrower pursuant to the terms of this Note, including without limitation any other cost reasonably incurred by Noteholder pursuant to the terms of any credit facility of Noteholder.

 

Section 8.  Remedy.  Upon the occurrence and during the continuation of an Event of Default, the Noteholder shall have all of the rights and remedies provided in the applicable Uniform Commercial Code, this Note or any other agreement among Borrower and in favor of the Noteholder, as well as those rights and remedies provided by any other applicable law, rule or regulation.  In conjunction with and in addition to the foregoing rights and remedies of the Noteholder, the Noteholder may declare all indebtedness due under this Note, although otherwise unmatured, to be due and payable immediately without notice or demand whatsoever.  All rights and remedies of the Noteholder are cumulative and may be exercised singly or concurrently.  The failure to exercise any right or remedy will not be a waiver of such right or remedy.

 

Section 9.  Right of Offset.  The Noteholder shall have the right of offset against amounts that may be due by the Noteholder now or in the future to Borrower against amounts due under this Note.

 

Section 10.  Record of Outstanding Indebtedness.  The date and amount of each repayment of principal outstanding under this Note or interest thereon shall be recorded by Noteholder in its records.  The principal balance outstanding and all accrued or accruing interest owed under this Note as recorded by Noteholder in its records shall be the best evidence of the principal balance outstanding and all accrued or accruing interest owed under this Note; provided that the failure of Noteholder to so record or any error in so recording or computing any such amount owed shall not limit or otherwise affect the obligations of the Borrower under this Note to repay the principal balance outstanding and all accrued or accruing interest.

 

Section 11.  Waiver.  Borrower and each surety, endorser, guarantor, and other party now or subsequently liable for payment of this Note, severally waive demand, presentment for payment, notice of nonpayment, notice of dishonor, protest, notice of protest, notice of the intention to accelerate, notice of acceleration, diligence in collecting or bringing suit against any party liable on this Note, and further agree to any and all extensions, renewals, 

 

Page 2 of 5.

 

 

 

modifications, partial payments, substitutions of evidence of indebtedness, and the taking or release of any collateral with or without notice before or after demand by the Noteholder for payment under this Note.

 

Section 12.  Costs and Attorneys’ Fees.  In addition to any other amounts payable to Noteholder pursuant to the terms of this Note, in the event the Noteholder incurs costs in collecting on this Note, this Note is placed in the hands of any attorney for collection, suit is filed on this Note or if proceedings are had in bankruptcy, receivership, reorganization, or other legal or judicial proceedings for the collection of this Note, Borrower and any guarantor jointly and severally agree to pay on demand to the Noteholder all expenses and costs of collection, including, but not limited to, reasonable attorneys’ fees incurred in connection with any such collection, suit, or proceeding, in addition to the principal and interest then due.

 

Section 13.  Time of Essence.  Time is of the essence with respect to all of Borrower’s obligations and agreements under this Note.

 

Section 14.  Jurisdiction and Venue.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS.  BORROWER CONSENTS TO JURISDICTION IN THE COURTS LOCATED IN DALLAS, TEXAS.

 

Section 15.  Notice.  Any notice or demand required by this Note shall be deemed to have been given and received on the earlier of (i) when the notice or demand is actually received by the recipient or (ii) 72 hours after the notice is deposited in the United States mail, certified or registered, with postage prepaid, and addressed to the recipient.  The address for giving notice or demand under this Note (i) to the Noteholder shall be the place of payment specified in Section 3 or such other place as the Noteholder may specify in writing to the Borrower and (ii) to Borrower shall be the address below the Borrower’s signature or such other place as the Borrower may specify in writing to the Noteholder.

 

Section 16.  Amendment or Waiver of Provisions of this Note.  No amendment or waiver of any provision of this Note shall in any event be effective unless the same shall be in a writing referring to this Note and signed by the Borrower and the Noteholder.  Such amendment or waiver shall be effective only in the specific instance and for the specific purpose for which given.  No waiver of any of the provisions of this Note shall be deemed or shall constitute a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver.

 

Section 17.  Successors and Assigns.  All of the covenants, obligations, promises and agreements contained in this Note made by Borrower shall be binding upon its successors and permitted assigns, as applicable.  Notwithstanding the foregoing, Borrower shall not assign this Note or its performance under this Note without the prior written consent of the Noteholder.  Noteholder at any time may assign this Note without the consent of Borrower.

 

Section 18.  Definitions.  For purposes of this Note, the following terms shall have the following meanings:

 

	
(a)
	
“Basis Point” shall mean 1/100th of 1 percent.

 

	
(b)
	
“Business Day” shall mean any day banks are open in the state of Texas.

 

	
(c)
	
“Contract Rate” means the amount of any interest (including fees, charges or expenses or any other amounts that, under applicable law, are deemed interest) contracted for, charged or received by or for the account of Noteholder.

 

	
(d)
	
“Event of Default” wherever used herein, means any one of the following events:

 

	
 
	
(i)
	
the Borrower fails to pay any amount due on this Note and/or any fees or sums due under or in connection with this Note after any such payment otherwise becomes due and payable and three Business Days after demand for such payment;

 

 

Page 3 of 5.

 

 

 

	
 
	
(ii)
	
the Borrower otherwise fails to perform or observe any other provision contained in this Note and such breach or failure to perform shall continue for a period of thirty days after notice thereof shall have been given to the Borrower by the Noteholder;

 

	
 
	
(iii)
	
a case shall be commenced against Borrower, or Borrower shall file a petition commencing a case, under any provision of the Federal Bankruptcy Code of 1978, as amended, or shall seek relief under any provision of any other bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or shall consent to the filing of any petition against it under such law, or Borrower shall make an assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver, trustee or liquidator of Borrower or all or any part of its property; or

 

	
 
	
(iv)
	
an event occurs that, with notice or lapse of time, or both, would become any of the foregoing Events of Default.

 

	
(e)
	
“Final Payment Date” shall mean the earlier of:

 

	
 
	
•
	
written demand by the Noteholder for payment of all or part of the unpaid principal, the accrued and unpaid interest thereon and the accrued and unpaid commitment fee thereon, but in any event no earlier than December 31, 2018; or

	
 
	
•
	
acceleration as provided herein.

 

	
(f)
	
“Maximum Rate” shall mean the highest lawful rate permissible under applicable law for the use, forbearance or detention of money.

 

	
(g)
	
“Prime Rate” shall mean the fluctuating interest rate per annum in effect from time to time equal to the base rate on corporate loans as reported as the Prime Rate in the Money Rates column of The Wall Street Journal or other reliable source.

 

	
(h)
	
“Unused Commitment Amount” for any period on after the date of this Note shall mean the average on each day of such period of the difference between (A) $40,000,000.00 and (B) the amount of the unpaid principal balance of this Note.

 

	
(i)
	
“Unused Commitment Fee” shall mean the product of (A) 50 Basis Points per annum (pro rated to take into account that the fee is payable quarterly, or such shorter period if applicable) and (B) the Unused Commitment Amount.

 

BORROWER:

 

Valhi, Inc.

 

 

 

 

	
 
	
By:
	
/s/ Gregory M. Swalwell _____________________

Gregory M. Swalwell

Executive Vice President, Chief Financial Officer and Chief Accounting Officer

 

Address:

 

5430 LBJ Freeway, Suite 1700

Dallas, Texas   75240-2697

 

 

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As of the date hereof, CompX International Inc., as the Noteholder, hereby agrees that this Note renews, replaces, amends and restates in its entirety the Original Note (but shall not extinguish the obligations under the Original Note, nor effect a novation thereof), and that the unpaid principal of $27,400,000.00, the accrued and unpaid interest thereon of nil and the accrued and unpaid commitment fee thereon of nil that was owed under the Original Note as of the close of business on December 31, 2016 are the unpaid principal, the accrued and unpaid interest thereon and the accrued and unpaid commitment fee thereon, respectively, owed under this Note as of the close of business on the date of this Note.

 

 

COMPX INTERNATIONAL INC.

 

 

 

 

	
 
	
By:
	
/s/ James W. Brown_________________________

James W. Brown

Vice President, Chief Financial Officer and Controller

 

 

Page 5 of 5.Exhibit 10-19

 

ASTEC INDUSTRIES, INC.

AMENDED AND RESTATED

NON-EMPLOYEE DIRECTORS COMPENSATION PLAN

1. Purpose.  The purpose of the Astec Industries, Inc. Amended and Restated Non-Employee Directors Stock Incentive Plan is to attract, retain and compensate highly-qualified individuals who are not employees of Astec Industries, Inc. or any of its subsidiaries or affiliates for service as members of the Board by providing them with competitive compensation and an equity interest in the Company. The Company intends that the Plan will benefit the Company and its shareholders by allowing Non-Employee Directors to have a personal financial stake in the Company through an ownership interest in the Common Stock and will closely associate the interests of Non-Employee Directors with that of the Company's shareholders.

2. Defined Terms.  Unless the context clearly indicates otherwise, the following terms shall have the following meanings:

"Annual Retainer" means the regular annual retainer payable by the Company to a Participant for service as a director of the Company pursuant to Section 6 of the Plan, as such amount may be changed from time to time.  Annual Retainers shall be paid in cash, unless a Participant elects instead to receive shares of Common Stock or deferred shares of Common pursuant to Article 6 hereof in payment of his or her Annual Retainer.

"Annual Stock Award" has the meaning set forth in Section 8(a) of the Plan.

"Board" means the Board of Directors of the Company.

"Company" means Astec Industries, Inc., a Tennessee corporation.

"Committee" has the meaning assigned such term in Section 3 of the Plan.

"Common Stock" means the common stock, par value $0.20 per share, of the Company.

"Deferral Termination Date" has the meaning set forth in Section 6(b) of the Plan.

"Effective Date" means April 23, 1998, the date the Plan originally became effective.  The Plan was subsequently amended as of March 15, 2005, February 21, 2006, October 23, 2008, and was amended and restated effective as of April 29, 2016.

"Election Form" means a form approved by the Committee pursuant to which a Non-Employee Director elects (i) a method of payment of Annual Retainer and whether payment will be deferred, and (ii) the timing of the conversion of Annual Stock Awards to Shares, in each case as provided herein.

1

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"Fair Market Value," on any date, means (i) if the Common Stock is listed on a securities exchange or is traded over the Nasdaq National Market, the closing sales price on such exchange or over such system on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Common Stock is not listed on a securities exchange or traded over the Nasdaq National Market, the mean between the bid and offered prices as quoted by Nasdaq for such date, provided that if it is determined that the fair market value is not properly reflected by such Nasdaq quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable.

"Grant Date" has the meaning set forth in Section 8(a) of the Plan.

"Incentive Plan" means the Astec Industries, Inc. 2011 Incentive Plan, and any subsequent equity compensation plan approved by the shareholders and designated by the Board as the Incentive Plan for purposes of this Plan.

"Lead Director" means a Non-Employee Director who has been designated by the Board as the Lead Director.  The Lead Director shall have such duties as shall be assigned to him or her by the Board.

"Non-Employee Director" means a director of the Company who is not an employee of the Company or of any of its subsidiaries or affiliates.

"Non-Executive Chairman" means a Non-Employee Director who has been designated by the Board to serve as the Chairman of the Board.

"Participant" means any Non-Employee Director who is participating in the Plan.

"Payment Date" has the meaning set forth in Section 6(a) of the Plan.

"Plan" means this Astec Industries, Inc. Amended and Restated Non-Employee Directors Compensation Plan, as amended from time to time.

"Plan Year" means the approximate twelve-month periods between annual meetings of the shareholders of the Company, which for purposes of the Plan, is the period for which Annual Retainers and Supplemental Retainers are earned.

"Rule 16b-3" means Rule 16b-3, as amended from time to time, of the Securities and Exchange Commission as promulgated under the Exchange Act.

2

"RSU Deferral Termination Date" has the meaning set forth in Section 8(b) of the Plan.

"Securities Act" means the Securities Act of 1933, as amended.

"Shares" means shares of Common Stock.

"Supplemental Annual Retainer" means a supplemental annual retainer payable by the Company to a Participant pursuant to Section 7 hereof for service as the Non-Executive Chairman, Lead Director, or chair or member of a committee of the Board, as such amount may be changed from time to time.

3. Administration.  The Plan shall be administered by the Compensation Committee of the Board of Directors (the "Committee").  Subject to the provisions of the Plan, the Committee shall be authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan; provided, however, that the Committee shall have no discretion with respect to the eligibility or selection of Non-Employee Directors to receive awards under the Plan, the number of Shares subject to any such awards or the time at which any such awards are to be granted.  The Committee's interpretation of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it hereunder, shall be conclusive and binding upon all parties concerned including the Company, its shareholders and persons granted awards under the Plan.  The Committee may appoint a plan administrator to carry out the ministerial functions of the Plan, but the administrator shall have no other authority or powers of the Committee.  Notwithstanding the foregoing, the Board shall exercise any and all rights, duties and powers of the Committee under the Plan to the extent required by the applicable exemptive conditions of Rule 16b-3, as determined by the Board its sole discretion.

4. Shares Subject to Plan.

(a) Shares Issued in Payment of Annual Retainer.  From and after the Effective Date, subject to adjustment as provided in Section 9, the aggregate number of Shares reserved and available for issuance pursuant to awards granted in payment of Annual Retainers pursuant to Section 6 hereof (including deferred rights to receive Shares in the future) shall not exceed in the aggregate 200,000 Shares of Common Stock, which Shares may be authorized and unissued Shares or treasury Shares.

3

(b) Annual Stock Awards.  Annual Stock Awards granted pursuant to Section 8 hereof shall be issued under the Incentive Plan, subject to all of the terms and conditions of the Incentive Plan.  The terms contained in the Incentive Plan are incorporated into and made a part of this Plan with respect to Annual Stock Awards granted pursuant hereto, and such awards shall be governed by and construed in accordance with the Incentive Plan.  In the event of any actual or alleged conflict between the provisions of the Incentive Plan and the provisions of this Plan with respect to Annual Stock Awards, the provisions of the Incentive Plan shall be controlling and determinative.  This Plan does not constitute a separate source of shares for the grant of Annual Stock Awards.

5. Participants.  All active Non-Employee Directors shall be eligible to participate in the Plan.

6. Annual Retainer.

(a)  Payment of Annual Retainer.  Each Participant shall be paid an Annual Retainer for service as a director during each Plan Year.  The amount and form of payment of the Annual Retainer shall be established from time to time by the Committee.  Until changed by the Committee, the Annual Retainer shall be $50,000 per year, payable in cash; provided, however, that Participants may elect, pursuant to an irrevocable Election Form delivered to the Committee or the plan administrator prior to December 31 of the calendar year immediately preceding the applicable Plan Year, to receive the Annual Retainer for the applicable Plan Year wholly in Shares.  Unless and until changed by the Committee, the Annual Retainer shall be paid in four quarterly installments on the following dates during each Plan Year for service during the preceding three months (each, a "Payment Date"): July 31, October 31, January 31, and the day following the annual shareholders meeting that coincides with the end of the applicable Plan Year.  The number of Shares, if any, to be granted to a Participant on each Payment Date shall be determined by dividing $12,500 by the Fair Market Value of one share of Common Stock as of the last business day preceding the Payment Date, and rounding up to the nearest whole Share.  The Annual Retainer shall be payable beginning with the first quarter in which a Participant is a Non-Employee Director, and shall be paid on a pro rata basis for any partial quarter of service to reflect the actual number of days served in the quarter.

4

(b)  Election to Defer Annual Retainer.  A Participant who elects to receive Shares of Common Stock in payment of his or her Annual Retainer for a Plan Year may elect, pursuant to an irrevocable Election Form delivered to the Committee or the plan administrator on or prior to December 31 of the calendar year immediately preceding the applicable Plan Year, to defer the grant of such Shares until the earlier of (i) the Participant's termination of service as a director of the Company, or (ii) another designated date at least three years after the date of such deferral election (in either case, the "Deferral Termination Date").  Pursuant to this Election Form, the Participant will elect whether all of the deferred grant will be (a) granted within 30 days after the Deferral Termination Date or (b) granted in approximately equal annual installments of Shares over a period of two to ten years (as the Participant may elect) after the Deferral Termination Date, each such annual grant to be made within 30 days after the anniversary of the Deferral Termination Date.  The Participant will have no rights as a shareholder with respect to the deferred Shares, and the rights to such Shares will be unsecured.

If any dividends or other distributions are paid with respect to the Common Stock while the deferred Shares are outstanding, the dollar amount or fair market value of such dividends or distributions with respect to the number of Shares then deferred shall be converted into additional deferred Shares and credited to the Participant's account, based on the Fair Market Value of the Common Stock as of the date such dividends or distributions were payable, and such additional deferred Shares shall be subject to the same deferral terms as apply to the deferred Shares with respect to which they relate.

7. Supplemental Annual Retainer.  Any Participant who serves as the Non-Executive Chairman or as the Lead Director shall be paid a Supplemental Annual Retainer, payable in cash, as set forth below.  In addition, any Participant who serves as the chair of a committee of the Board (other than the Executive Committee) or who serves as a member of a committee of the Board (other than the Executive Committee) shall be paid a Supplemental Annual Retainer, payable in cash, as set forth below (for avoidance of doubt, the chair of a committee will not receive a Supplemental Annual Retainer for serving as a member of the committee). Such Supplemental Annual Retainer shall be paid on or as soon as practicable after the day following each annual shareholders meeting (and in any event no later than 30 days following the applicable annual shareholders meeting) in arrears for service during the immediately preceding Plan Year (and shall be paid on a pro rata basis for any partial year of service to reflect the actual number of days served during the Plan Year).  The amount of the Supplemental Retainer shall be established from time to time by the Committee. Until changed by the Committee, the Supplemental Retainer for a full Plan Year shall be as follows:

5

	
Service Description

	 	
Amount

	 
	
Non-Executive Chairman

	 	
$

	
30,000

	 
	
Lead Director

	 	
$

	
15,000

	 

	
Audit Committee Chair

	 	
$

	
15,000

	 
	
Compensation Committee Chair

	 	
$

	
10,000

	 
	
Nominating and Governance Committee Chair

	 	
$

	
10,000

	 
	
Audit Committee member

	 	
$

	
7,500

	 
	
Compensation Committee member

	 	
$

	
5,000

	 
	
Nominating and Governance Committee member

	 	
$

	
5,000

	 

8. Annual Stock Award.

(a) Grant and Vesting of Annual Stock Award.  Subject to share availability under the Incentive Plan, on the day following each annual shareholders meeting (the "Grant Date"), each Participant then in service as a Non-Employee Director (including any Participant who was elected to the Board at such annual shareholders meeting) will be granted an award of restricted stock units ("RSUs") under the Incentive Plan ("Annual Stock Award").  The Annual Stock Award shall consist of a number of RSUs determined by dividing $65,000 by the Fair Market Value of one share of Common Stock as of the date of the annual shareholders meeting, and rounding up to the nearest whole Share.  The Annual Stock Award shall vest and convert to Shares on the day preceding the date of the next annual shareholders meeting following the Grant Date, subject to the Participant's continued service on the Board.  The RSUs will have no rights to dividends or distributions prior to their conversion to Shares.  Notwithstanding the foregoing, the Grant Date for the Annual Stock Awards to be granted in 2016 shall be June 6, 2016.

(b) Election to Defer Conversion of Annual Stock Award.  A Participant may elect, pursuant to an irrevocable Election Form delivered to the Committee or the plan administrator on or prior to December 31 of the calendar year immediately preceding the Grant Date of an Annual Stock Award, to defer the conversion of the RSUs to Shares until the earlier of (i) the Participant's termination of service as a director of the Company, or (ii) another designated date at least three years after the date of such deferral election (in either case, the "RSU Deferral Termination Date").  Pursuant to this Election Form, the Participant will elect whether all of the RSUs will be (a) converted to Shares within 30 days after the RSU Deferral Termination Date or (b) converted to Shares in approximately equal annual installments over a period of two to ten years (as the Participant may elect) after the RSU Deferral Termination Date, each such annual grant to be made within 30 days after the anniversary of the RSU Deferral Termination Date.

6

 9. Adjustments.

(a) Subject to Section 9(c) but notwithstanding any other term of this Plan, in the event of a nonreciprocal transaction between the Company and its shareholders that causes the per-share value of the Common Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the share authorization limit under Section 4 shall be adjusted proportionately, and the Committee shall make such adjustments to the Plan and awards granted hereunder as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction.  Action by the Committee may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding awards granted hereunder; and (iii) any other adjustments that the Committee determines to be equitable.

(b) Subject to Section 9(c) but notwithstanding any other term of this Plan, in the event of any corporate transaction or event described in paragraph (a) which results in Shares being exchanged for or converted into cash, securities or other property (including securities of another corporation), all stock grants deferred under Section 6 shall become the right to receive such cash, securities or other property.

(c) The number of Shares finally granted under this Plan shall always be rounded to the next highest whole Share.

(d) Any decision of the Committee pursuant to the terms of this Section 9 shall be final, binding and conclusive upon the Participants, the Company and all other interested parties; provided, however, that to the extent required by the applicable exemptive conditions of Rule 16b-3, any such decision shall be subject to approval by the Board.

 10. Internal Revenue Code Section 409A.

(a) It is intended that the payments and benefits provided under the Plan shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Internal Revenue Code.  The Plan shall be construed in a manner that effects such intent.  Nevertheless, the tax treatment of the benefits provided under the Plan is not warranted or guaranteed.  Neither the Company, its affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan.

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(b) Notwithstanding anything in the Plan to the contrary, to the extent that any amount or benefit that would constitute non-exempt "deferred compensation" for purposes of Section 409A of the Internal Revenue Code would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment) would be effected, under the Plan by reason of the occurrence the Participant's termination of service as a director, such amount or benefit will not be payable or distributable to the Participant, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such termination of service meet any description or definition of "separation from service" in Section 409A of the Internal Revenue Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition).  If this provision prevents the payment or distribution of any amount or benefit, such payment or distribution shall be made on the next earliest payment or distribution date or event specified that is permissible under Section 409A of the Internal Revenue Code.  If this provision prevents the application of a different form of payment of any amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance.

11. Amendment.  The Committee may terminate or suspend the Plan at any time, without shareholder approval.  The Committee may amend the Plan at any time and for any reason without shareholder approval; provided, however, that the Committee may condition any amendment on the approval of shareholders of the Company if such approval is necessary or deemed advisable with respect to tax, securities or other applicable laws, policies or regulations.  No termination, modification or amendment of the Plan may, without the consent of a Participant, adversely affect a Participant's rights under an award granted prior thereto.

12. Indemnification.  Each person who is or has been a member of the Committee or who otherwise participates in the administration or operation of this Plan shall be indemnified by the Company against, and held harmless from, any loss, cost, liability or expense that may be imposed upon or incurred by him or her in connection with or resulting from any claim, action, suit or proceeding in which such person may be involved by reason of any action taken or failure to act under the Plan and shall be fully reimbursed by the Company for any and all amounts paid by such person in satisfaction of judgment against him or her in any such action, suit or proceeding, provided he or she will give the Company an opportunity, by written notice to the Committee, to defend the same at the Company's own expense before he or she undertakes to defend it on his or her own behalf.  This right of indemnification shall not be exclusive of any other rights of indemnification.

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 The Committee and the Board may rely upon any information furnished by the Company, its public accountants and other experts.  No individual will have personal liability by reason of anything done or omitted to be done by the Company, the Committee or the Board in connection with the Plan.

13. Duration of the Plan.  The Plan shall remain in effect until terminated by the Committee.

14. Expenses of the Plan.  The expenses of administering the Plan shall be

borne by the Company.

ASTEC INDUSTRIES, INC.

By:/s/ Stephen C. Anderson

Its:      Secretary

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