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EXHIBIT 10.4.4

KAYDON CORPORATION 1999 LONG TERM STOCK INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

     NON-QUALIFIED STOCK OPTION AGREEMENT, dated as of March 23, 2007; between KAYDON CORPORATION,
a Delaware corporation (Corporation), and JAMES O’LEARY (Optionee).

     The Kaydon Corporation 1999 Long Term Stock Incentive Plan Committee (the Committee), pursuant
to the Corporation’s 1999 Long Term Stock Incentive Plan (the Plan), has granted to the Optionee,
on the date of this Agreement, an option under the Plan to purchase an aggregate of 250,000 shares
of Common Stock of the Corporation par value $.10 per share (Common Stock). To evidence the option
and to set forth its terms and conditions as provided in the Plan, the Corporation and the Optionee
agree as follows.

     1. Confirmation of Grant and Price. The Corporation, by this Agreement, evidences and
confirms its grant to the Optionee on the date of this Agreement of an option (the Option) to
purchase 250,000 shares of Common Stock, at an option price of $43.03 per share. The Option is
subject to all of the provisions of the Plan, whether or not explicitly stated in this Agreement,
except that the ability of the Board of Directors or the Committee to amend this Agreement without
the consent of Optionee is limited as provided in this Agreement, provided, however, in the event
of any conflict between the terms of this Agreement and the terms of Mr. O’Leary’s Employment
Agreement effective March 26, 2007, the Employment Agreement shall govern and control.

     2. Term for Exercise. The Option becomes available for exercise, subject to the
provisions of this Agreement, as to the percentage of the aggregate number of shares of Common
Stock subject to the Option and on the dates set forth below:

          a. Percentage and Date Schedule

	 	 	 
	Percentage of Number	 	Date First Available
	of Shares	 	for Exercise
	 
	 	 
	20%

	 	One year after the date of grant
	20%

	 	Two years after the date of grant
	20%

	 	Three years after the date of grant
	20%

	 	Four years after the date of grant
	20%

	 	Five years after the date of grant

          b. Later Exercise. The right to purchase is cumulative. If the full number of shares
exercisable in any period is not exercised, the balance may be exercised at any time or from time
to time after that date, as long as the exercise occurs prior to the expiration or termination of
the Option.

          c. Expiration. The Option expires March 22, 2017.

     3. Non-Qualified Stock Option. The Option evidenced by this Agreement is not
intended to be an incentive stock option as that term is defined in Section 422 of the Internal
Revenue Code of 1986, as amended (the Code).

     4. Who May Exercise. During the lifetime of the Optionee, the Option may be exercised
only by the Optionee.

          a. Death. If the Optionee dies, the Option may be exercised, to the extent of the
number of shares of Common Stock with respect to which the Optionee could have exercised the Option
on the date of the Optionee’s death, by the Optionee’s estate or a person who acquires the right to
exercise the Option by bequest or inheritance or by reason of the death of the Optionee, at any
time prior to the earlier of one year after the Optionee’s death and the expiration date specified
in Section 2.

          b. Discretion To Amend. The Board of Directors or the Committee may, in its
discretion, amend this Agreement to accelerate the exercisability of any installments of the Option
which were not exercisable at the time of the Optionee’s death.

     5. Exercise After Termination of Employment. If the Optionee ceases to be employed by
the Corporation or any parent or subsidiary (including termination by reason of the fact that an
entity is no longer a subsidiary), no further installments of the Option will become exercisable
except as provided below. It is not a termination of employment for purposes of this section if
the Optionee transfers employment from the Corporation to any subsidiary or vice versa, or from one
subsidiary to another,

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without an intervening period, if the Optionee is absent on sick leave or is granted a
leave of absence (not to exceed one year), or if the Optionee changes status to become a consultant
to the Corporation or a subsidiary.

          a. General Rule. Unless governed by a special rule, below, the Option, to the extent
of the number of shares of Common Stock with respect to which the Optionee could have exercised the
Option at the date of termination of employment, terminates on the earlier of the expiration date
specified in Section 2 and the date which is 10 days after the date of termination of employment.

          b. Exceptions For Involuntary Termination and Disability. In the case of involuntary
termination of employment or a Permanent and Total Disability within the meaning of the Plan, the
Option, to the extent of the number of shares of Common Stock with respect to which the Optionee
could have exercised the Option at the date of termination of employment, terminates on the earlier
of the expiration date specified in Section 2 and the date which is three months after the date of
termination of employment.

          c. Exception for Death. In the case of death, the Option, to the extent of the number
of shares of Common Stock with respect to which the Optionee could have exercised the Option on the
date of death, terminates on the earlier of the expiration date specified in Section 2 and the date
which is one year from the date of death.

          d. Exception for Retirement. In the case of termination of employment by reason of
retirement, the Option will continue to vest in accordance with the Option vesting schedule in
effect on the date of retirement and will continue to be exercisable in accordance with its terms
as though the Optionee had continued in employment.

     Notwithstanding the preceding rules, if the Committee determines that the Optionee engaged in
any activity detrimental to the interests of the Corporation or a subsidiary, the Committee may
terminate the unexercised portion of the Option concurrently with or at any time following the
termination of employment.

     Further, nothing in the Plan or in this Agreement confers upon the Optionee any right to
continue in the employ of the Corporation or any of its affiliates, or interferes in any way with
the right of the Corporation or any of its affiliates to terminate the Optionee’s employment at any
time during the Option period or otherwise.

     6. Restrictions on Exercise. The Option may be exercised only with respect to full
shares. No fractional shares of Common Stock will be issued.

          a. General Limitation. The Option may not be exercised in whole or in part, and no
payment by the Corporation shall be made nor shall any certificates representing shares of Common
Stock subject to the Option be delivered, if:

               i. Governmental Approval. At any time any requisite approval or consent of any
governmental authority of any kind having jurisdiction over the exercise of options has not been
effectively secured;

               ii. Registration. The shares are not effectively registered under the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934, as amended; or

               iii. Withholding. Applicable federal, state and local tax withholding requirements
are not satisfied.

          b. Representation. The Corporation may require as a condition to the exercise of the
Option in whole or in part at any time that the Optionee or any person exercising the Option after
the Optionee’s death in accordance with the provisions of Section 4 (the Holder) represent to the
Corporation in writing that the shares are being acquired for the Optionee’s or Holder’s own
account for investment only and not with a view to distribution or with any present intention of
reselling any.

          c. Hardship. The Option is not exercisable for the period of at least twelve (12)
months to the extent provided under the hardship distribution provisions of the Kaydon Corporation
Employee Stock Ownership and Thrift Plan or other Corporation or affiliate plan to the extent the
Optionee receives a hardship distribution from that plan.

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          d. Employment. Except as explicitly provided above, no part of an Option may be
exercised by an Optionee unless the Optionee is then in the employ of the Corporation or subsidiary
and was continuously so employed since the date of the grant.

     7. Manner of Exercise. To the extent the Option has become and remains exercisable as
provided in this Agreement, and subject to any additional administrative regulations the Committee
may from time to time adopt, the Option may be exercised from time to time, in whole or in part, by
a signed written notice to the Secretary of the Corporation on a form supplied by the Corporation.
The notice must specify the number of shares of Common Stock with respect to which the Option is
being exercised and be accompanied by full payment of the option price for the shares.

          a. Payment. Payment must be made in:

                    i. Cash;

                    ii. Stock or Other Property. With the consent of the Committee, in whole or in part
in shares of Common Stock, represented by certificates duly endorsed to the Corporation or its
nominees, valued at fair market value, or other awards or property having a fair market value on
the exercise date equal to the exercise price;

                    iii. Instructions. With the consent of the Committee, by delivering with a properly
executed exercise notice irrevocable instructions to a third party to promptly deliver to the
Corporation the amount of sale or loan proceeds to pay the exercise price;

                    iv. Combination. With the consent of the Committee, a combination of the above; or

                    v. Other. With the consent of the Committee, other consideration.

          b. Prior Holdings Limitation. The option price may not be paid in:

               i. Option. Shares of Common Stock received upon the exercise of any option under
the Plan or any option under another stock option plan of the Corporation which shares have been
held by the Optionee or other Holder or for less than one year prior to payment; or

               ii. Stock. Shares of Common Stock that have been held by the Optionee for less than
six months.

          c. Withholding Limitation. The portion of the option price equal to the amount of any
applicable federal, state and local tax liability required to be withheld at the time of exercise
must be paid in cash.

          d. Right to Exercise. In the event that the Option is exercised by a person other
than the Optionee in accordance with Section 4, the person must furnish to the Corporation evidence
satisfactory to it of the person’s right to exercise the Option.

          e. Other Documents. The Corporation may require the Optionee or any other person
exercising the Option to furnish or execute any documents the Corporation deems necessary to
evidence the exercise or to comply with any requirements of this Agreement, the Plan, or any law.

          f. Cash or Stock Alternative. The Committee may, in its discretion, at any time that
the fair market value of the Common Stock subject to the Option exceeds the option price, in lieu
of accepting payment of the option price and delivering any or all shares of Common Stock as to
which the Option has been exercised, elect to pay the Optionee or other Holder an amount in cash or
shares of Common Stock equal to the amount by which the fair market value on the date of exercise
of the shares of Common Stock as to which the Option has been exercised exceeds the option price
that would otherwise be payable by the Optionee or other Holder upon the exercise.

     8. Repurchase. The Corporation may, at the election of the Corporation, repurchase
shares of Common Stock sold under the Plan then held by the Optionee at a price not to exceed the
higher of the option price for such shares plus twice the

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increase, if any, in the book value of such shares from the date of the grant of the Option to the
date of such repurchase, and the fair market value of the shares at the time of repurchase.

     9. Disposition of Shares. If the Optionee or other Holder disposes of any shares
received upon exercise of the Option, whether by sale, gift, or otherwise, within two years from
the date the Option was granted or within one year after the date the shares were transferred, the
Optionee or other Holder must notify the Secretary of the Corporation of the number of shares
disposed of, the date on which disposed, the manner of disposition and the amount, if any, realized
upon the disposition.

     10. Non-Assignability. The Option may not be assigned, transferred or hypothecated by
the Optionee or other Holder except as provided below:

          a. Acceptable Assignments. Subject to subsection b., the
Option may be assigned by the Optionee:

               i. Death. By will or by the laws of descent and distribution to the extent provided
in section 4;

               ii. Grantor Trust. To a revocable grantor trust established by the Optionee for the
Optionee’s sole benefit during the Optionee’s life, subject to the terms of the Plan; or

               iii. Other. To a beneficiary designated by the Optionee in writing on a form
approved by the Committee.

          b. Limitation. Notwithstanding those general rules, the Option may not be assigned
by Optionee if Optionee is a director or officer of the Corporation or an affiliate for purposes of
the securities laws, except as permitted under Rule 16b-3 of those laws.

     11. Rights as Shareholders. The Optionee and any other Holder have no rights as a
shareholder with respect to any shares covered by the Option until the issuance of a certificate or
certificates to the Optionee or other Holder for the shares upon due exercise of the Option. No
adjustment will be made for dividends or other rights for which the record date is prior to the
issuance of the certificate or certificates.

     12. Capital and Other Adjustments. In the event of any change in the number of
outstanding shares of Common Stock by reason of any stock dividend, stock split, combination or
exchange of shares, recapitalization, reclassification, merger, consolidation, reorganization, or
other similar transaction, the Committee may adjust the number, type and option price of shares of
Common Stock covered by the Option, by means of a grant of a substitute option or an additional
option or otherwise, as it in its discretion deems appropriate. In addition, in the event of any
unusual or nonrecurring event (including, but not limited to, the events described in the preceding
sentence) affecting the Corporation, any subsidiary, or the financial statements of the Corporation
or any subsidiary, or of changes in applicable laws, regulations, or accounting principles, the
Committee may adjust the terms and conditions of, and the criteria included in this Agreement if
the Committee determines that such adjustments are appropriate to prevent dilution or enlargement
of the benefits or potential benefits of the Option.

     13. Change in Control. In the event of a Change in Control, the Option shall vest,
shall become exercisable in full and shall no longer be subject to any restrictions which would
prevent immediate exercise.

          a. Additional Authority. In addition, in that circumstance, the Committee as
constituted before the Change in Control may, in its sole discretion:

               i. Purchase. Provide for the purchase of the Option, at the Optionee’s request, for
an amount of cash equal to the amount that could have been attained upon exercise had the Option
been exercisable at that time;

               ii. Adjust. Adjust the Option as the Committee deems appropriate to reflect the
Change in Control; and

               iii. Cause Assumption. Cause the Option to be assumed, or replaced with a new
option, by the acquiring or surviving corporation after the Change in Control.

          b. Change in Control. A Change in Control occurs if:

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               i. Ownership. Any person or group of persons (as used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934) other than pursuant to a transaction or agreement previously
approved by the Board of Directors of the Corporation, directly or indirectly purchases or becomes
the beneficial owner (as defined in Rule 13d-3 under the Act) or has the right to acquire such
beneficial ownership (whether or not such right is exercisable immediately, with the passage of
time, or subject to any condition) of voting securities of the Corporation representing 25% or more
of the combined voting power of all outstanding voting securities of the Corporation; or

               ii. Control. During any period of twenty-four consecutive calendar months, the
individuals who at the beginning of that period constitute the Corporation’s Board of Directors,
and any new directors whose election by such Board or nomination for election by stockholders was
approved by a vote of at least two-thirds of the members of such Board who were either directors on
such Board at the beginning of the period or whose election or nomination for election as directors
was previously so approved, for any reason cease to constitute a majority of the Board of Directors
of the Corporation.

     14. Change in Control Compensation Agreement. Notwithstanding the limitations of this
Agreement relating to vesting and exercisability, if the Condition below is met, each of Optionee’s
stock options governed by this Agreement outstanding at the time of a Change in Control (as defined
in this Section) will be immediately vested and exercisable upon such a Change in Control.

          a. Condition. The acceleration of vesting and exercisability provided in this Section
shall occur only if Optionee is a party at the time of a Change in Control to an effective Change
in Control Compensation Agreement which explicitly provides for acceleration of vesting and
exercisability of options upon a Change in Control.

          b. Change in Control. Notwithstanding the definition of Change in Control provided in
Section 13.b of this Agreement, for purposes of this Section a Change in Control has the meaning
provided in the Change in Control Compensation Agreement applicable to Optionee.

          c. Effect. This acceleration is not subject to cancellation under the 1999 Long Term
Stock Incentive Plan. This acceleration is also irrevocable as long as the Optionee is a party to
an effective Change in Control Compensation Agreement.

     15. Legality. The issuance or delivery of any shares of Common Stock pursuant to an
Option may be postponed by the Corporation for any period required to comply with any applicable
requirements under the Federal securities laws, any applicable listing requirements of any national
securities exchange or any requirements under any other applicable law or regulation. The
Corporation is not obligated to issue or deliver any shares if the issuance or delivery
constitutes, or in the opinion of counsel to the Corporation may constitute, a violation of any
provision of any law or of any regulation of any governmental authority or any national securities
exchange.

     16. Withholding of Taxes. Prior to the issuance or delivery of any shares of Common
Stock or any payment, payment of any taxes required by law must be made.

          a. Withholding. The withholding obligation may not be satisfied by reducing the
number of shares of Common Stock otherwise deliverable.

          b. Fractional Shares. Any fraction of a share of Common Stock required to satisfy a
tax obligation shall be disregarded and the amount due must be paid instead in cash.

     17. Notice. Notice to the Secretary of the Corporation shall be deemed given if in
writing and mailed to the Secretary of the Corporation by first-class mail at the then principal
office of the Corporation.

     18. Amendment. The Board of Directors or the Committee may amend the terms and
conditions of this Agreement as provided in the Plan, except that, without the consent of the
Optionee, no amendment may impair the rights of the Optionee or Holder relating to the Option or
amend Sections 13, 14, or 18 of this Agreement. Notwithstanding that, the Option
provided in this Agreement may be canceled in the Committee’s sole discretion, as long as the
Optionee is not a party to an effective Change in

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Control Compensation Agreement as described in
Section 14(a), above, upon payment of the value of the Option to the Optionee or Holder in cash or
in another Option. That value may be determined by the Committee in its sole discretion.)

     19. Governing Law. The words “exercise”, “subsidiary”, “outstanding” and any other
words or terms used in this Agreement which are defined or used in Section 421, 422 or 425 of the
Code have the meanings assigned to them in those Sections, unless the context clearly requires
otherwise. In all other respects this Agreement shall be construed and enforced in accordance
with, and governed by, the laws of the State of Delaware.

     Executed this 4th day of April, 2007 effective as of the date first set forth above.

	 	 	 	 	 
	KAYDON CORPORATION 

 	 	 
	By:  	/s/ John F. Brocci	 	 
	 	Its: V.P. Administration and Secretary 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	OPTIONEE

 	 	 
	/s/ James O’Leary 
 	 	 
	 	 	 
	 	 	 
	 

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EXHIBIT 10.5

KAYDON CORPORATION

DIRECTOR DEFERRED COMPENSATION PLAN

(Amended and Restated Effective October 25, 2007)

     1. Establishment of the Plan. Kaydon Corporation (“Corporation”) has adopted this
Director Deferred Compensation Plan for Directors (“Plan”) effective January 1, 2001, to provide
certain members of the Board of Directors of the Corporation (“Board”) with the opportunity to
defer all or a portion of their fees for services as a member of the Board or as a member of any
committee of the Board (“Deferred Fees”). The Plan is hereby amended and restated effective
October 25, 2007 by Board action, in compliance with the provisions of Section 13 hereof.

     2. Participation. Any member of the Board who is not an employee of the Corporation
or any of its affiliates (“Member”) may participate in the Plan.

     3. Plan Year. The Plan Year shall be the 12 consecutive month period beginning on
each January 1 and ending on each December 31 (“Plan Year”).

     4. Election to Participate. A Member wishing to participate in the Plan must file a
complete Notice of Election (Attachment A) with the Corporation during the month prior to the start
of the Plan Year. A Notice of Election shall be effective only with respect to fees earned during
the following Plan Year. However, any individual who becomes a Member after January 1, 2001, may
elect to defer fees for the current Plan Year by filing a Notice of Election before rendering any
services and within 30 days after appointment to the Board. A Notice of Election may not be
modified or terminated after it is filed. A Member must defer at least 25% of his or her total
annual fees for Board membership and at least 25% of his or her total annual fees for committee
membership.

     5. Member Accounts. Deferred Fees shall be credited to a deferred compensation
account maintained by the Corporation for each Member (“Account”). Accounts shall remain the
general assets of the Corporation, and nothing in this Plan shall be deemed to create a trust or
fund of any kind or any fiduciary relationship. A Member shall designate on the Notice of Election
whether to have the Account valued on the basis of Kaydon Corporation common stock in accordance
with Section 6 or to receive interest in accordance with Section 7. The Corporation may, if
necessary or desirable, establish separate Accounts for a Member to properly account for amounts
deferred under the different alternatives and years; and all such Accounts are collectively
referred to herein as the Account. The Account based on Kaydon Corporation common stock shall be
known as the “Common Stock Account” and the interest bearing account shall be known as the
“Interest Bearing Account”. A Member may defer a portion of his or her Deferred Fees into each
type of account during the same Plan Year.

     6. Common Stock Account. If a Member elects to have all or a portion of his or her
Deferred Fees deferred into the Common Stock Account, as of the last business day of any quarter
there shall be credited to such Account a hypothetical number of shares of Kaydon Corporation
common stock (whole and fractional, rounded to the nearest 1/100th of a share) as are
equal to (a) the dollar amount of such Deferred Fees payable for such quarter, plus all

 

 

dividends payable during such quarter on the number of hypothetical shares of common stock
previously credited to the Account as of the first day of such calendar quarter, divided by (b) the
market value of the Kaydon Corporation common stock at the close of business on the last business
day of such calendar quarter.

     7. Interest Bearing Account. If a Member elects to have all or a portion of his or
her Deferred Fees deferred in the Interest Bearing Account, there shall be added to such Account as
of the last business day of each calendar quarter the dollar amount of such Deferred Fees payable
for such calendar quarter plus all interest payable on (a) the amount in the Account at the
beginning of such calendar quarter plus (b) the Deferred Fees payable for such quarter, at a rate
determined by the product of (1) the rate paid for twelve-month certificates of deposit issued by a
financial institution designated by the Corporation prior to the beginning of the Plan Year, and
(2) a fraction, the numerator of which is the number of days in the calendar quarter and the
denominator of which is 365.

     8. Time and Method of Payment. A Member may elect, on the Notice of Election for a
particular Plan Year, the date that the Member would like to receive payment of the amounts held in
his or her Account that relate to Deferred Fees deferred during the Plan Year to which that Notice
of Election applies. The date elected may be any January 1st, provided that actual payment may be
made as soon as practicable after such date (but not more than thirty (30) days thereafter, as
determined by the Corporation in its sole discretion). If no such election is made, then the
amounts held in the Account that relate to such Plan Year shall be paid on the January 1st
following the Member’s termination of Board membership by resignation, retirement or removal, or as
soon as practicable after such date (but not more than thirty (30) days thereafter, as determined
by the Corporation in its sole discretion).

     Amounts credited to and held in a Member’s Interest Bearing Account under Section 7 and that
relate to Deferred Fees deferred during a particular Plan Year shall be distributed in cash, in
accordance with the form of payment elected by the Member on the Notice of Election for such Plan
Year (lump sum or annual installments of up to ten (10) years, with the first installment being
made on the date elected by the Member and later installments on the anniversaries thereof). If no
such election is made, then such amount shall be paid in a cash lump sum.

     Amounts credited to and held in a Member’s Common Stock Account under Section 6 may, at the
election of the Member (to be made no later than thirty (30) days before the date of distribution),
be distributed either in a cash lump sum or in fully taxable and freely transferable shares of
Kaydon Corporation common stock, provided that no fractional shares of such common stock shall be
issued, and any amounts held in such Account that represent a fractional share of common stock
shall be paid in a cash lump sum based on the fair market value of the Corporation’s common stock
at the close of business on the business day prior to the date of payment to the Member. If the
Member elects to receive his or her Common Stock Account value in cash, the amount of the
distribution shall be equal to the product of the number of hypothetical shares of common stock
credited to the Account as of the end of the calendar quarter prior to the date of distribution
multiplied by the fair market value of the Corporation’s common stock at the close of business on
the business day prior to the date of payment to the Member. If the Member elects to receive his
or her Common Stock Account value in common

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stock, the Corporation shall cause its stock transfer agent and registrar to issue to the
Member that number of shares of Kaydon Corporation common stock equal to the number of hypothetical
shares of common stock credited to the Account as of the end of the calendar quarter prior to the
date of distribution.

     Notwithstanding the above, the entire amount credited to a Member’s Account shall be paid in a
cash lump sum as soon as practicable after either of the following (but not more than thirty (30)
days thereafter, as determined by the Corporation in its sole discretion): (a) the end of the
quarter following the Member’s termination of Board membership due to death or Disability, based on
the valuation as of such quarter-end; or (b) there shall have occurred a Change in Control in the
Corporation, as defined in Section 14, based on the valuation as of the date of such Change in
Control.

     9. Withdrawals upon Unforeseeable Emergency. Upon receipt of a Notice of
Unforeseeable Emergency (Attachment B) indicating that a Member has experienced an unforeseeable
emergency, the Corporation may authorize immediate cessation of deferrals for the remainder of the
Plan Year and/or a withdrawal from the Member’s Account, as determined by the Corporation in its
sole discretion based on all the facts and circumstances and subject to the provisions of this
Section. The term “unforeseeable emergency” means: (a) a severe financial hardship resulting from
an illness or accident of the Member, or the Member’s spouse, beneficiary under the Plan, or
dependents (as defined in Internal Revenue Code Section 152); (b) loss of the Member’s property due
to casualty; or (c) other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Member. The amount of the withdrawal will be limited to the
amount reasonably necessary to satisfy the emergency need, which may include amounts necessary to
pay any Federal, state, local or foreign income taxes or penalties reasonably anticipated to result
from the distribution. Distribution may not be made to the extent that the emergency is or may be
relieved through reimbursement or compensation from insurance or otherwise, or by liquidation of
the Member’s assets (to the extent such liquidation would not cause severe financial hardship), and
must take into account any additional compensation that is available from the cessation of
deferrals under the Plan. The Corporation may reasonably rely on the representation of a Member
regarding the availability of other financial resources.

     10. Designation of Beneficiary. Each Member may file a Beneficiary Designation
(Attachment C) naming one or more beneficiaries to whom payment shall be made in the event of the
Member’s death. A beneficiary designation will be effective only if it is filed with the
Corporation during the Member’s lifetime, and the latest beneficiary designation on file shall
supersede all other beneficiary designations. If a primary beneficiary or a contingent beneficiary
survives the Member but dies before receiving all amounts due hereunder, the unpaid Account balance
due to the beneficiary shall be paid in a cash lump sum to the deceased beneficiary’s estate. If a
primary beneficiary predeceases the Member, then the beneficiary’s share shall be distributed to
the remaining primary beneficiaries on a pro rata basis. If all the primary beneficiaries
predecease the Member, the Member’s Account shall be paid to the contingent beneficiary(ies). If a
contingent beneficiary predeceases the Member, then the beneficiary’s share shall be distributed to
the remaining secondary beneficiaries on a pro rata basis. If a Member fails to designate a
beneficiary, or if all designated beneficiaries shall predeceased the

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Member, the unpaid Account balance at the time of the Member’s death shall be paid in one cash
lump sum to the Member’s estate.

     11. Nonalienation of Benefits. Neither a Member nor any designated beneficiary shall
have any right to alienate, assign, or encumber any amount that is or may be payable hereunder, or
any right or interest that may be deemed to exist hereunder. To the extent that any person
acquires a right to receive payments from the Corporation under the Plan, such right shall be no
greater than the right of any unsecured general creditor of the Corporation.

     12. Administration. Full power and authority to construe, interpret, and administer
the Plan shall be vested in the Corporation. Decisions of the Corporation shall be final,
conclusive, and binding upon all parties.

     13. Amendment and Termination. The Board may amend or terminate this Plan at any
time. Any amendment or termination of this Plan shall not affect the rights of participants or
beneficiaries to the amounts in each Account at the time of such amendment or termination.

     14. Definitions. Wherever used herein, the following terms shall have their
respective meanings set forth below:

     “Change in Control” means the occurrence of any of the following events:

     (a) 50% Stock. The acquisition, by a person or Persons Acting as a Group, of
stock of the Corporation that together with stock held by such person or group constitutes
more than 50% of the total fair market value or total voting power of the stock of
Corporation;

     (b) 35% Stock. The acquisition, by a person or Persons Acting as a Group, of
ownership of stock of the Corporation that constitutes 35% or more of the total voting power
of Corporation’s stock in a single transaction or within a twelve month period ending with
the most recent acquisition;

     (c) Directors. The majority of members of the Board being replaced during any
twelve month period by directors whose appointment or election is not endorsed by a majority
of the members of the Board prior to the date of appointment or election;

     (d) Assets. The acquisition, by a person or Persons Acting as a Group, of the
Corporation’s assets that have a total gross fair market value equal to or exceeding forty
percent (40%) of the total gross fair market value of Corporation’s assets in a single
transaction or within a twelve month period ending with the most recent acquisition. For
the purpose of this section, gross fair market value means the value of the assets of the
corporation, or the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets; or

     (e) Merger. A reorganization, merger or consolidation of the Corporation, the
substantive effect of which is a Change in Control under any of subsections (a), (b), (c) or
(d) above, unless with or into a Permitted Successor.

4

 

     “Continuing Directors” are the individuals constituting the Board as of the date this Amended
and Restated Plan was adopted by the Board and any subsequent directors whose election or
nomination for election by the Corporation’s stockholders was approved by a vote of two-thirds of
the individuals who are then Continuing Directors, but specifically excluding any individual whose
initial assumption of office occurs as a result of either an actual or threatened election contest
(as the term is used in Rule 14a-11 of Regulation 14A issued under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board.

     “Disability” means the Non-Employee Director: (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months; or (ii) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than 3 months under an
accident and health plan covering employees of the Corporation. To the extent required hereunder,
the determination of Disability shall be made by a medical board certified physician selected by
the Corporation and acceptable to the Non-Employee Director (or the Non-Employee Director’s legal
representative, if one has been appointed), provided such agreement as to acceptability shall not
be unreasonably withheld.

     “Employee Benefit Plan” means any plan or program established by the Corporation or a
Subsidiary for the compensation or benefit of employees of the Corporation or any of its
Subsidiaries.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excluded Holder” means any Person who at the time this Amended and Restated Plan was adopted
by the Board was the beneficial owner of 20% or more of the outstanding common stock of the
Corporation; or the Corporation, a Subsidiary or any Employee Benefit Plan of the Corporation or a
Subsidiary or any trust holding such common stock or other securities pursuant to the terms of an
Employee Benefit Plan.

     “Permitted Successor” means a corporation which, immediately following the consummation of a
transaction specified in the definition of “Change in Control” above, satisfies each of the
following criteria:

     (a) Stock. Sixty percent or more of the outstanding common stock of the
corporation and the combined voting power of the outstanding securities of the corporation
entitled to vote generally in the election of directors (in each case determined immediately
following the consummation of the applicable transaction) is beneficially owned, directly or
indirectly, by all or substantially all of the Persons who were the beneficial owners of
Corporation’s outstanding common stock and outstanding securities entitled to vote generally
in the election of directors (respectively) immediately prior to the applicable transaction;

5

 

     (b) Limitation. No Person other than an Excluded Holder beneficially owns,
directly or indirectly, 20% or more of the outstanding common stock of the corporation or
the combined voting power of the outstanding securities of the corporation entitled to vote
generally in the election of directors (for these purposes the term Excluded Holder shall
include the corporation, any subsidiary of the corporation and any Employee Benefit Plan of
the corporation or any such subsidiary or any trust holding common stock or other securities
of the corporation pursuant to the terms of any such Employee Benefit Plan); and

     (c) Board. At least a majority of the board of directors is comprised of
Continuing Directors.

     “Person” has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the Exchange Act.

     “Persons Acting as a Group” means owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock (or assets), or similar business transaction with
the Corporation. If a person, including an entity, owns stock in both corporations that enter into
a merger, consolidation, purchase or acquisition of stock (or assets), or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a corporation prior to
the transaction giving rise to the change and not with respect to the ownership interest in the
other corporation. Persons will not be considered to be acting as a group solely because they
purchase or own stock of the same corporation at the same time or as a result of the same public
offering, or purchase assets of the same corporation at the same time.

     “Subsidiary” means any corporation or other entity of which 50% or more of the outstanding
voting stock or voting ownership interest is directly or indirectly owned or controlled by the
Corporation or by one or more Subsidiaries of the Corporation.

     15. Law Governing. The provisions of this Plan shall be interpreted and construed in
accordance with the laws of the State of Michigan.

	 	 	 	 	 	 	 
	 	 	KAYDON CORPORATION	 	 
	 

	 	By:	 	 /s/ John F. Brocci	 	 
	 

	 	 	 	 

	 	 
	 	 	Its:  V.P. Administration & Secretary	 	 

Amended and Restated Effective: October 25, 2007

6

 

ATTACHMENT A

NOTICE OF ELECTION

KAYDON CORPORATION

DIRECTOR DEFERRED COMPENSATION PLAN (“PLAN”)

     I elect to participate in the Plan for the year beginning January 1, 20___, and ending December
31, 20___, as follows:

I. Amount of Deferred Fees

     I elect to defer the following percentages of my fees for year 20___. (Check one box in each
column):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Board of Directors Fees  	Committee Fees
	o

	 	 	25	%	 	 	 	 	o
	 	25	%
	o

	 	 	50	%	 	 	 	 	o
	 	50	%
	o

	 	 	75	%	 	 	 	 	o
	 	75	%
	o

	 	 	100	%	 	 	 	 	o
	 	100	%

     I understand that this election is effective only for fees earned during the year above, and
that it may not be changed or revoked.

II. Valuation of Account

     I elect to have the year 20___deferred fees in my Account valued as follows:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o 25%
	 	o 50%
	 	o 75%
	 	o 100%
	 	as invested in the Common
Stock Account and valued based on the value of Kaydon Corporation Common Stock
	 

	 	o 25%
	 	o 50%
	 	o 75%
	 	o 100%
	 	as invested in the Interest
Bearing Account and valued based on the rate paid for 12-month certificates of deposit
issued by a financial institution designated by Kaydon Corporation on the preceding
January 1

III. Time of Payment

     I elect to receive, or begin to receive, my year 20___deferred fees on (Check one and
complete as indicated):

	 	 	 	 	 
	 

	 	 	o
	January 1, 20___; or
	 

	 	 	o
	January 1 after my Board membership terminates due to resignation, retirement or
removal

NOTE: Payment may be made at any time during the 30 day period beginning on the date
indicated above, as determined by Kaydon Corporation in its sole discretion.

 

 

IV. Form of Payment

     My year 20___deferred fees credited to the Common Stock Account will be paid in the form of
fully taxable and freely transferable shares of Kaydon Corporation Common Stock (subject to my
election to receive a cash lump sum in lieu of shares, to be made no later than 30 days before the
date of distribution).

     I elect to have my year 20___deferred fees invested in the Interest Bearing Account to be
paid as follows (Check one and complete as indicated):

	 	 	 	 	 
	 

	 	o
	 	Lump sum; or
	 

	 	o
	 	Annual installments for
___ years (cannot be greater than 10 years), with the first
installment being made on the date indicated above and later installments on the anniversaries
thereof.

V. Acknowledgement and Signature

     I acknowledge that deferred fees remain the property of Kaydon Corporation. I have read the
Plan document and I understand that it alone governs all aspects of the administration of deferred
fees.

     Dated:                                          ,20___.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 	 	Witness	 	Signature of Director	 	 
	 
	 	 	 	 	 	 	 	 
	VI.

	 	Acceptance	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Accepted on                      , 20__, by Kaydon Corporation.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

ATTACHMENT B

NOTICE OF UNFORESEEABLE EMERGENCY

KAYDON CORPORATION

DIRECTOR DEFERRED COMPENSATION PLAN (“PLAN”)

TO: Kaydon Corporation

     I have experienced the “unforeseeable emergency” described below and I request that you
authorize the action requested below.

	 	I.	 	Description of Unforeseeable Emergency: (Describe the time and nature of your
emergency and the reason why the action requested is necessary to alleviate your severe
financial hardship. Use attachments if necessary).

	 	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	II.	 	Action Requested. (Choose either or both and complete as indicated).

	 	 	 	 	 
	 

	 	o
	 	Immediate cessation of deferrals (NOTE: this may be required)
	 

	 	o
	 	Payment(s) from my Account as follows (enter time and
	 

	 	amount):	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 

Date
	 	 

                                   Signature of Director
	 
	 

(Do
not write below this line)

 

	 	 	 	 	 	 	 
	 

	 	TO:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	DATE:	 	 	 	 
	 

	 	 	 	 	 	 

Your above request(s) is/are: o DENIED; o APPROVED, subject to the

	 	 	 	 	 	 	 
	 

	 	following:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	 	 	KAYDON CORPORATION
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

 

ATTACHMENT C

BENEFICIARY DESIGNATION

KAYDON CORPORATION

DIRECTOR DEFERRED COMPENSATION PLAN (“PLAN”)

     This is the only form of Beneficiary Designation which will be recognized under the Plan.
This designation, when validly signed, dated and witnessed, will control over any contrary
designation in any will, trust, agreement, or other instrument, whether executed before or after
this form.

	 	 
	Director’s
Name: ______________
Date of Birth: _______________________	 
	 
	Social Security
No: ______________
Home Telephone: __________________	 
	 
	Street Address: ___________________________________________________	 
	 
	City and
State:  ______________ Zip:
_________________________________	 

     Subject to the conditions below, I wish to revoke any previous Beneficiary Designation of mine
and to direct that, upon my death, any amount payable on my behalf under the terms of the Plan
shall be paid in a cash lump sum to the Beneficiary(ies) designated below according to the
indicated percentages:

     I. PRIMARY BENEFICIARY OR BENEFICIARIES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage (must
	Name	 	Relationship	 	Address	 	Soc. Sec. No.	 	Date of Birth	 	total 100%)
	 
	 	 	 	 	 	 	 	 	 	 

     If any one or more of the above-named Primary Beneficiaries is deceased or not in existence at
the time of my death, then each such Beneficiary’s share shall be distributed to the remaining
Primary Beneficiaries on a pro rata basis. If none of the Primary Beneficiaries is living or in
existence at the time of my death, then any amount payable from the Plan on my behalf shall be paid
to the Contingent Beneficiary or Beneficiaries named below. If a Primary Beneficiary survives me
but dies before his or her entire share is distributed, then any remaining balance shall be
distributed to the estate of the Primary Beneficiary.

 

     II. CONTINGENT BENEFICIARY OR BENEFICIARIES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage (must
	Name	 	Relationship	 	 	Address	 	 	Soc. Sec. No.	 	 	Date of Birth	 	 	total 100%)

     *If Beneficiary is a trust or estate, specify fiduciary name, address, tax I.D. number, if any, and
date of trust, if applicable.

     If one or more of the above-named Contingent Beneficiaries is deceased or not in existence at
the time of death, then each such Beneficiary’s share shall be distributed to the remaining
Contingent Beneficiaries on a pro rata basis. If none of the Contingent Beneficiaries is living or
in existence at the time of my death, then any amount payable from the Plan on my behalf shall be
paid in a cash lump sum to my estate. If a Contingent Beneficiary survives me, but dies before his
or her entire share is distributed, then any remaining balance shall be distributed to the estate
of the Contingent Beneficiary.

     III. TERMS AND CONDITIONS

     1. This designation is subject to all the terms and conditions of the Plan and shall be
effective only if received prior to the date of my death by the Plan Administrator. If it is not
received prior to the date of my death, my interest in the Plan shall be paid to my estate.

     2. This designation shall be effective with respect to my entire interest, if any, under the
Plan remaining unpaid to me or to any Beneficiary at my death or the beneficiary’s death, as
applicable.

     3. If a Beneficiary does not survive me or the prior Beneficiary, as applicable, for thirty or
more days, the Beneficiary will be presumed to have predeceased me or the prior Beneficiary, as
applicable.

     4. This designation shall be governed by Michigan law, regardless of my current residence, my
residence at the date of my death, the residence of any Beneficiary, or the location of the Plan
trustee or of the Plan assets.

     IV. DIRECTOR’S SIGNATURE

	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	Signature of Witness (other than a	 	Address of Witness	 	 
	Beneficiary)	 	 	 	 

 

     V. RECEIVED ON BEHALF OF THE PLAN BY:

                                                             on
                                         , 20___.

*If Beneficiary is a trust or estate, specify fiduciary name, address, tax I.D. number, if any, and
date of trust, if applicable.

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