Document:

EX-10(2.6)

 

Exhibit 10 (2.6)

SIXTH MODIFICATION AGREEMENT

     This Agreement is entered into effective as of this 29th day of February, 2008, between 1900
Associates L.L.C., a Kansas limited liability company (“Landlord”), and Layne Christensen Company,
a Delaware corporation (“Tenant”).

RECITALS

     A. Tenant and Landlord are party to that certain Commercial Building Lease dated December 21,
1994 (the “Original Lease”), as amended by (i) that certain First Modification and Ratification of
Lease dated February 26, 1996, (ii) that certain Second Modification and Ratification of Lease
Agreement dated April 28, 1997, (iii) that certain Third Modification and Extension Agreement dated
November 3, 1998, (iv) that certain Fourth Modification Agreement dated December 29, 1998, and (v)
that certain Fifth Modification Agreement dated March 1, 2003 (the Original Lease, as amended, to
be referred to as the “Lease”).

     B. Landlord and Tenant desire to amend the Lease as provided herein.

     NOW, THEREFORE, in consideration of the mutual consideration set forth in this Agreement,
Landlord and Tenant agree to amend the Lease as follows:

     1. Extension of Term. Notwithstanding anything to the contrary, the Lease Expiration Date is
changed to December 31, 2013.

     2. Minimum Annual Rental. Notwithstanding anything to the contrary, the Minimum Annual Rental
effective January 1, 2009, through the Lease Expiration Date shall be One Million Seventy-Six
Thousand Three Hundred and No/100 Dollars ($1,076,300).

     3. Renewal Option. Section 6 of the Fifth Modification Agreement is amended by replacing the
year 2007 in Paragraph (B) thereof with 2012 and by deleting “ninety percent (90%) of” from the
second line of Paragraph (B) thereof.

     4. Landlord’s Work. Landlord agrees to perform, at its expense, the work described on the
attached Exhibit A and the Rees Masilionis Turley LLC plans and specifications for Layne
Christensen Company, Project # 07586, dated December 13, 2007 and December 18, 2007, the provisions
of which are incorporated herein by reference (such plans and specifications and Exhibit A
together referred to as the “Landlord Improvements”). Landlord agrees to complete the Landlord
Improvements in a timely, good and workmanlike manner and shall comply with all applicable laws,
ordinances rules and regulations of governmental authorities. Landlord and Tenant shall together
agree on final finishes for the Landlord Improvements. Landlord shall provide an allowance of
$25,000 to Tenant towards the purchase of furniture for the Commercial Building lobby area.

     5. Purchase Option. Section 7 of the Lease is deleted in its entirety.

     6. Operating Expense Escalation. The parties agree that for calendar year 2009, there shall
be no Operating Expense Escalation Charge payable by Tenant. Effective January 1,

 

 

2010, the term “Base Year Operating Expenses” shall mean the Operating Expenses incurred
during calendar year 2009.

     7. Rentable Area. The parties agree that rentable area of the Leased Premises is 45,556 square
feet.

     8. Other Terms. Except as modified herein, all other terms and conditions of the Lease shall
remain unmodified and in full force and effect.

     The parties have executed this Agreement effective as of the date indicated above.

	 	 	 	 	 	 	 	 	 	 	 
	1900 Associates L.L.C.	 	 	 	Layne Christensen Company	 	 
	a Kansas limited liability company	 	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James Ellis
	 	 	 	By:
	 	/s/ A.B. Schmitt	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	James Ellis, Manager
	 	 	 	 	 	Andrew B. Schmitt, PresidentEX-10(24)

 

Exhibit 10 (24)

Layne Christensen Company

Water Infrastructure Division Incentive Compensation Plan

Effective February 1, 2008

SECTION I. Definitions.

          In addition to the terms defined elsewhere throughout this Plan (as defined in Section II
below), the following terms shall have the following meanings:

          “Committee” shall mean the administrative committee of this Plan (as defined in Section III
below).

          “Company” shall mean Layne Christensen Company and its subsidiaries.

          “District” shall mean a separate profit center of the Company within the Division (as defined
below) as determined from the Company’s internal financial records and as set forth in Exhibit A
attached hereto; provided, however, that the Committee shall have the authority in its discretion
to group one or more profit centers into one “District” for purposes of this Plan.

          “Division” shall mean that portion of the Company which forms the Water and Wastewater
Infrastructure Group as determined by the Committee in its sole discretion from time to time.

          “EBIT” shall mean earnings before interest and taxes exclusive of any of the Company’s general
and administrative expenses as determined by the Committee in its sole discretion from time to
time.

          “EBIT Benchmark” shall mean the performance benchmark assigned to a certain District, Region
(as defined below) and/or the Division and based on the EBIT of such respective District, Region or
the Division.

          “Pool” shall mean the bonus pool established for each District, Region and/or the Division for
each fiscal year.

          “Region” shall mean a separate grouping of Districts within the Division identified on Exhibit
B as Region A, Region B, Region C and Region D; provided, however, that the Committee shall have
the authority in its discretion to change the grouping of Districts and the makeup of all or any
Regions from time to time.

SECTION II. Purpose of the Plan.

          The Company desires to effect a program of making awards as soon as practicable after the end
of each fiscal year, as provided below, to certain employees of the Division who during such fiscal
year, in the judgment of the Committee, have significantly contributed to the achievement of
certain objectives of the Division and of the Districts or Regions in which such employees perform
services. The purpose of this program is to provide additional incentive for the eligible
employees to promote the best interests and most profitable operation of the Division.

          This program shall be known as the “Layne Christensen Company Water Infrastructure Division
Incentive Compensation Plan” (hereinafter referred to as the “Plan”). This Plan amends and
supersedes the Layne Christensen Company Water and Infrastructure Group Incentive Compensation Plan
effective August 1, 2006. Except as otherwise expressly provided herein, no participant of this
Plan shall be eligible to participate in the Layne Christensen Company District Incentive
Compensation Plan after July 31, 2006. The existence of the Plan shall not be in lieu of or
otherwise affect or be affected by any other compensation plan or arrangement of the Company.

 

 

SECTION III. Administration.

          The Plan shall be administered by the Committee. The Committee shall consist of at least
three persons appointed by the Board of Directors of the Company. Except as otherwise permitted by
the Board of Directors of the Company, during the one-year period prior to the commencement of
service of a Committee member on the Committee, such member shall not have participated in, and
while serving and for one year after serving on the Committee, such member shall not be eligible
for participation in, the Plan.

          The Committee shall have full power, in its sole discretion, to interpret, construe and
administer the Plan and adopt rules and regulations relating to the Plan.

          Decisions made by the Committee in good faith and in the exercise of its powers and duties
hereunder shall be binding upon all parties concerned. No member of the Committee shall be liable
to anyone for any action taken or decision made in good faith pursuant to the power or discretion
vested in such person under the Plan.

SECTION IV. Participation.

          All salaried, non-clerical employees of the Division (but not any Company corporate general
and administrative employees or any participants of the Reynolds, Inc. Cash Bonus Plan) shall be
eligible for participation in the Plan (and shall hereinafter be referred to as “Participants”).

          In addition to the Participants and at the discretion of the Committee, a portion of the Pool
may be set aside for payment to Division employees who do not participate in any other Company
bonus or incentive program.

SECTION V. Calculation of Benchmarks.

          The incentive compensation to be allocated to the Pool for each District, Region and the
Division shall be based on certain performance benchmarks. Each fiscal year, each District, Region
and the Division will be assigned an EBIT Benchmark. The EBIT Benchmark for each District, Region
and the Division shall be calculated by adding the EBIT for each respective District, Region and
the Division for the three (3) immediately preceding fiscal years and dividing the sum of those
three (3) numbers by three (3); provided, however, with respect to the EBIT Benchmark calculation
for any fiscal year commencing after fiscal year 2007, the EBIT for any of such three (3)
immediately preceding fiscal years shall not be less than three percent (3%) of the revenue, nor
more than one hundred twenty-five percent (125%) of the EBIT Benchmark, for such fiscal year.

SECTION VI. Generation of Bonus Pools.

          As soon as practical following the end of each fiscal year, a Pool shall be established for
each District in Regions A, B and C, Regions A, B and C and the Division in an amount equal to (i)
$0.03 for each $1.00 of EBIT generated during such fiscal year to the extent such District, Region
or the Division achieves eighty percent (80%) to one hundred percent (100%) of its respective EBIT
Benchmark; or (ii) $0.045 for each $1.00 of EBIT generated during such fiscal year to the extent
such District, Region or the Division achieves more than one hundred, but less than one hundred
twenty-five percent (125%) of its respective EBIT Benchmark (in which case no amount shall be
credited to any Pool under clauses (i) above); or (iii) $0.065 for each $1.00 of EBIT generated
during such fiscal year to the extent such District, Region or the Division achieves more than one
hundred twenty-five percent (125%) of its respective EBIT Benchmark (in which case no amount shall
be credited to any Pool under clauses (i) or (ii) above).

          As soon as practical following the end of each fiscal year, a Pool shall be established for
Region D in an amount equal to (i) $0.06 for each $1.00 of EBIT generated during such fiscal year
to the extent such Region achieves eighty percent (80%) to one hundred percent (100%) of its EBIT
Benchmark; or (ii) $0.090 for each $1.00 of EBIT generated during such fiscal year to the extent
such Region achieves more than one hundred, but less than one hundred twenty-five percent (125%) of
its

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EBIT Benchmark (in which case no amount shall be credited to any Pool under clauses (i) above); or
(iii) $0.13 for each $1.00 of EBIT generated during such fiscal year to the extent such Region
achieves more than one hundred twenty-five percent (125%) of its EBIT Benchmark (in which case no
amount shall be credited to any Pool under clauses (i) or (ii) above).

          Notwithstanding anyting to the contrary above, in no case shall the combined Pools for any
Districts, Regions or Division exceed fifteen percent (15%) of the EBIT earned by the Division in
such fiscal year.

SECTION VII. Determination of Amount of Award.

          The amount of incentive award to be granted from the Pool to a Participant shall be determined
by the Committee.

          The amount of the individual awards shall be discretionary and in the sole judgment of the
Committee, based upon the Participant’s performance for the fiscal year in which the incentive
award is based, provided, however, that the amount of any cash incentive award shall not exceed:
(i) 100% of the Participant’s annual regular salary for Participants included in Group I (as set
forth in Exhibit C), (ii) 75% of the Participant’s annual regular salary for Participants included
in Group II (as set forth in Exhibit C) and (iii) 50% of the Participant’s annual regular salary
for Participants included in Group III (as set forth in Exhibit C). The term “annual regular
salary” shall mean the annual regular salary of the Participant as of the first day of such fiscal
year.

SECTION VIII. Type of Award.

          The incentive compensation award will be paid in cash or, as permitted under the Company’s
2006 Equity Incentive Plan, in shares of restricted or unrestricted common stock of the Company, or
a combination of any of the foregoing as determined by the Board of Directors of the Company or the
Compensation Committee thereof. To the extent such award is payable in stock, the Participant shall
receive the Company’s common stock, par value $.01 per share.

SECTION IX. Termination of Employment.

          In the event a Participant voluntarily terminates his or her employment with the Company at
any time prior to the close of the fiscal year, the Participant will not be eligible for any award
otherwise payable for the fiscal year.

          In the event a Participant is involuntarily terminated (without cause) prior to the close of
the fiscal year, the Participant will be considered for receipt of the award he or she would have
otherwise received (as determined by the Committee in its sole discretion) and, if awarded,
prorated to reflect the length of the Participant’s service during the relevant fiscal year. The
Committee will take into consideration the circumstances of the termination in determining the
propriety and amount of the award. The Company’s payment of severance or post-employment salary
support to a Participant will not be considered part of the Participant’s annual regular salary for
purposes of the Plan.

SECTION X. Miscellaneous.

          There shall be deducted from each cash payment made under the Plan the amount of any tax
required by any governmental authority to be withheld by the Company with respect to such payment.
A Participant receiving stock hereunder shall have deducted by the Company from the award the
amount of any taxes which the Company is required by any governmental authority to withhold with
respect to such stock prior to calculation of the number of shares of stock to be awarded.

          Nothing in the Plan shall be construed to give any person any benefit, right or interest
except as expressly provided herein, and nothing in the Plan shall be construed as establishing any
right of continued employment by the Company.

          A Participant’s rights and interests under the Plan may not be assigned or transferred. In
the case of a Participant’s death prior to payment of a Participant’s award, payment in an amount
equal to

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what the Participant would have otherwise received had he or she been employed on the last
day of the fiscal year (as determined by the Committee in its sole discretion), prorated to reflect
the length of the Participant’s service during the relevant fiscal year, shall be made to the
personal representatives of the Participant’s estate or such other person or persons as the
Committee deems appropriate.

          The Board of Directors of the Company, or the Compensation Committee thereof, may discontinue
the Plan, in whole or in part, at any time, or may, from time to time, amend the Plan in any
respect that such Board (or Committee) may deem advisable. In the event the Plan is terminated, no
further payments will be made under the Plan.

SECTION XI. Effective Date.

          The Plan, as amended, shall be effective as of February 1, 2008.

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