Document:

Exhibit 10.21

 

HICKORYTECH
CORPORATION

EXECUTIVE INCENTIVE PLAN

(Amended & Restated as of January 1,
2009)

 

Section I. Establishment and Purpose

 

A.                                   Establishment

 

HickoryTech Corporation,
a Minnesota corporation (the “Company”), has established, effective January 1,
1989, the HICKORYTECH EXECUTIVE INCENTIVE PLAN, which has since been amended
(the “Plan”).

 

B.                                     Purpose

 

The purpose of this Plan is to provide a means
whereby key executives of the Company may be rewarded according to their impact
on, and contribution to, the operating success of the Company and its component
organizations.  It is also the purpose of
this Plan to motivate such executives to achieve a continuing, high level of
personal effectiveness.

 

Section II. Definitions, Gender and Number

 

A.                                   Definitions

 

As used in this Plan, the
following terms are defined as indicated unless the context clearly requires a
different meaning:

 

1.               “Adjusted Cash Flow” means EBITDA
less CAPEX, debt principal repayment required by the Company’s debt agreements,
interest and taxes.  Taxes are the actual
cash payment of taxes versus the GAAP/book accrual concept.

 

2.               “Annual Award” means the total
annual cash award earned under the provisions of this Plan.

 

3.               “Board of Directors” or “Board”
means the Board of Directors of the Company.

 

4.               “Chair” means the Chair of the
Board of the Company.

 

5.               “Committee” or “Compensation
Committee” means a committee appointed by and responsible to the Board to
administer this Plan, among other things, and whose  members shall be ineligible to participate in
this Plan.

 

1

 

6.               “Company” means Hickory Tech
Corporation, a Minnesota corporation and any successor thereto, including all
Subsidiaries.

 

7.               “EBITDA” means earnings before interest
expense, income taxes, depreciation, and amortization, and it includes employee
Team Award expense.

 

8.               “EBITDA Minus CAPEX” means EBITDA minus the capital and
expenditures for   property, plant and
equipment, and capitalized software and any other capitalized expenditures
approved by the Compensation Committee to be included in this definition.

 

9.               “Net Income” means after-tax net
income as defined by Generally Accepted Accounting Principles.

 

10.         “Participant” means an executive
of the Company who has been selected to participate in the Plan.

 

11.         “Performance Account” means an
account maintained in the name of a Participant with credits in Company stock.

 

12.         “Plan” means the HickoryTech
Executive Incentive Plan, as stated herein and as further amended from time to
time.

 

13.         “Plan Year” means any fiscal year
of the Company for which the Plan is in effect.

 

14.         “Retirement” means termination for
any reason (other than death or permanent and total disability) after attaining
age 55 with ten years of service or after attaining age 62 irrespective of
service.

 

15.         “Return on Invested Capital” means
earnings before interest and taxes divided by total capital (debt and equity).

 

16.         “Revenue” means operating
revenues, and excludes other income from such sources as interest and
dividends.  For purposes of this plan,
the intercompany transactions between or among its Subsidiaries are considered
to be at an arms length (i.e., at fair market value), and thus are not eliminated.

 

17.         “Subsidiary” means a corporation,
the majority of whose stock is owned by the Company.

 

18.         “Trustee” means Trustee for the
Trust under the HickoryTech Corporation Executive Plan.  This Trust holds shares of Company Stock for
the eligible Participants’ Performance Award Accounts.

 

2

 

B.                                     Gender and Number

 

Except when otherwise
indicated by the context, any masculine terminology when used in the Plan shall
also include the feminine gender, and the definition of any term herein in the
singular shall also include the plural.

 

Section III. Summary of Plan

 

A.                                   Annual Award Opportunity

 

Each fiscal
year, an award opportunity will be established for each Plan Participant,
expressed as a percent of the Participant’s fiscal-year base salary earnings.  (See Attachment A)

 

B.                                     Performance Goals

 

Performance goals, by
which Participant’s performance will be measured for Plan purposes, will be
established at the beginning of the fiscal year.  Such goals will relate to Company, Subsidiary
or division organizational performance.

 

C.                                     Award Determination

 

At fiscal year-end the
organizational performance will be evaluated, and a percentage achievement will
be determined.  An incentive award,
called an Annual Award, will be determined, such being the total of the awards
earned.

 

D.                                    Disposition of Awards

 

Annual Awards will be
paid in cash as soon as is practicable following the end of the fiscal year but
no later than March 15 of the following calendar year.

 

E.                                      Shareholder Protection

 

It is the policy of the Company to establish
fiscal goals under this Plan which will provide, first, for the protection of
the shareholders.  Accordingly, no awards
will be paid which, by their payment, would cause the Company to experience
Adjusted Cash Flow of less than 50% of HickoryTech’s budgeted Adjusted Cash
Flow for the fiscal year.

 

3

 

Section IV. Eligibility

 

A.                                   Eligibility

 

Executives who, by virtue
of their position, exert a significant impact on Company performance are eligible
to participate in this Plan. 
Participation is at the recommendation of the President/CEO, with the
approval of the Board of Directors.

 

Section V. Annual Plan

 

A.                                   Basis of Awards Earned

 

Awards earned under this Plan are earned on a
fiscal-year basis.

 

B.                                     Annual Award Opportunity

 

An annual target award
opportunity will be assigned to each Participant, expressed as a percent of
fiscal year base salary earnings.  This
will establish the dollar award target for the executive, as follows:

 

	
   

  	
   

  	
  Base

  	
   

  	
  Target

  	
   

  	
  Target

  	
   

  
	
  Position

  	
   

  	
  Salary

  	
   

  	
  Award%

  	
   

  	
  Award

  	
   

  
	
  Executive A

  	
   

  	
  $

  	
  140,000

  	
   

  	
  40

  	
  %

  	
  $

  	
  56,000

  	
   

  
	
  Executive B

  	
   

  	
  $

  	
  90,000

  	
   

  	
  30

  	
  %

  	
  $

  	
  27,000

  	
   

  
	
  Executive C

  	
   

  	
  $

  	
  60,000

  	
   

  	
  25

  	
  %

  	
  $

  	
  15,000

  	
   

  

 

C.                                     Annual Award Make-up

 

1.               Annual Award make-up will reflect the
impact of the Participant’s position and performance on the operating results
of the Company.  As such, award make-up
may vary among positions.

 

Example

 

	
   

  	
   

  	
  Percent of Award Relating to Organizational Performance

  	
   

  
	
   

  	
   

  	
  Corporate

  	
   

  	
  Subsidiary or Division

  	
   

  
	
  Position

  	
   

  	
  Financial Results

  	
   

  	
  Financial Results

  	
   

  
	
  Executive A

  	
   

  	
  100%

  	
   

  	
  —

  	
   

  
	
  Executive B

  	
   

  	
  25%

  	
   

  	
  75%

  	
   

  
	
  Executive C

  	
   

  	
  45%

  	
   

  	
  55%

  	
   

  

 

4

 

2.                                       Each award segment will be determined
separately, and the resulting awards will be aggregated into a total award.

 

3.                                       Organizational performance will reflect
equally on Participant awards.

 

D.                                    Organizational Goals

 

1.               Organizational goals will be established in the areas
of financial achievement or operational achievement.  These areas will be weighted and the weightings
will be reviewed annually and may be adjusted at the time of review.

 

2.               Goals will be established prior to the start of the
fiscal year for purposes of the Plan and approved by the Board of Directors.  Such goals will relate to, but may not necessarily
be, the Company’s annual operating budget goals.

 

E.                                      Award Calculations

 

1.             Organizational Awards

 

a.                                       Organizational performance will be
evaluated in terms of actual versus planned results for each result area.

 

(i)                                     The target award for the results area
will be reduced 3% for each 1% by which actual performance is less than planned
performance.

 

(ii)                                  The target award for each organizational
results area, except for the EBITDA results area, will be increased 3% for each
1% by which actual performance exceeds planned performance.

 

(iii)                               The target award for the EBITDA results
area will be increased 3% for each 1% by which actual performance exceeds
planned performance up to 101%. The target award for the EBITDA results area
will be increased by 10% for each 1% by which actual performance exceeds
planned performance for EBITDA achievement over 101%.

 

(iv)                              No award will be paid for the Net Income
results area unless actual performance is at least 100% of planned
performance.  For other organizational
awards, no award will be paid for a results area if actual performance is less
than 85% of planned performance.

 

b.                                      The sum of awards for all results areas
will be payable as the organizational award.

 

c.                                       Award calculations will be interpolated
where actual results are other than even percentages of the planned amount.

 

d.                                      There will be a cap, or maximum, for
award payments as a result of actual performance that exceeds the planned
amount.  This cap shall be 200% payout
maximum for each award segment.

 

5

 

                Example:

 

 

 

	
   

  	
   

  	
  (Assume $5,000 target organizational award)

  	
   

  
	
   

  	
   

  	
  

  Net

  Income

  	
   

  	
  

  Revenue

  	
   

  	
  

  EBITDA

  	
   

  	
  Return on

  Invested

  Capital

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (20%)

  	
   

  	
  (30%)

  	
   

  	
  (25%)

  	
   

  	
  (25%)

  	
   

  	
  Total
  Award

  	
   

  
	
  Target Award

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,500

  	
   

  	
  $

  	
  1,250

  	
   

  	
  $

  	
  1,250

  	
   

  	
   

  	
   

  
	
  Actual % of Plan

  	
   

  	
  98

  	
  %

  	
  250

  	
  %

  	
  110.7

  	
  %

  	
  95

  	
  %

  	
   

  	
   

  
	
  Adjustment to
  Target

  	
   

  	
   

  	
   

  	
  200

  	
  %

  	
  200

  	
  %

  	
  85

  	
  %

  	
   

  	
   

  
	
  Award

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  2,500

  	
   

  	
  $

  	
  1,062.50

  	
   

  	
  $

  	
  6,562.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (131

  	
  %)

  
																	

 

e.                                       A review of the award payouts will be
made by the Compensation Committee.  In the
event that a one-time occurrence affects the year-end organization’s
performance, the Compensation Committee may review and adjust award payouts, if
determined appropriate.

 

F.                                      Total Award

 

Organizational
awards are combined into a total annual award. 
(See Attachment A)

 

Example:

 

	
   

  	
   

  	
  Executive
  A

  	
   

  	
  Executive
  B

  	
   

  	
  Executive
  C

  	
   

  
	
  Organization
  Award I

  	
   

  	
  $

  	
  45,000

  	
   

  	
  —

  	
   

  	
  $

  	
  2,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Organization
  Award II

  	
   

  	
  —

  	
   

  	
  19,500

  	
   

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Award

  	
   

  	
  $

  	
  45,000

  	
   

  	
  $

  	
  19,500

  	
   

  	
  $

  	
  7,500

  	
   

  
											

 

G.                                     Payment of Awards

 

1.               Board Approval

 

Awards earned
under this Plan are payable only with the approval of the Board of
Directors.  In the event of a Change of
Control, as defined in the Participant’s Change of Control Agreement, and to
the extent provided in Section VI (G), awards will be payable without the
Board of Directors’ approval required.

 

6

 

2.               Time and Manner of Payment

 

Annual Awards will
be payable with respect to each fiscal year within thirty (30) days following
completion of the final audited financial report for the year, no later than March 15
of the following calendar year.  Awards
will be paid in cash, subject  to all
required withholdings such as state and federal taxes.

 

Section VI. Long-Term Performance Account

 

A.                                   Performance Account

 

The Performance
Account holds shares of company stock that were previously issued under this
Plan.  No additional awards will be
granted to this account after the 2002 fiscal year awards, but shares in the
account will continue to receive interest at a value equal to the dividend as
described in VI (B).

 

B.                                     Valuation of Performance Account

 

In
lieu of dividends on Shares held in a Participant’s Performance Account, the
Company shall issue, pursuant to its 1993 Stock Award Plan, additional Shares
having a Fair Market Value as of the applicable dividend record date as would
otherwise be paid on the Shares in the Participant’s Performance Account on
that date.

 

C.                                     Vesting

 

                All shares in the Performance
Account are fully vested.

 

D.                                    Effect of a Participant’s Death,
Retirement, or Disability

 

1.               A deceased Participant’s Performance Account shall be
distributed beginning no later than March 15 of the following calendar
year, according to the provisions in Section VI (F), to the Participant’s
designated beneficiary. A Participant may, by written notice to the Company in
the form of Attachment B, designate a beneficiary to receive any payments made
after his death.  The Participant may
select as his beneficiary any person or entity, including a trust.  The Participant may designate multiple,
successive or contingent beneficiaries and may change his designation at any
time.  If a Participant dies without
having any valid beneficiary designation in effect, his estate shall be the
beneficiary.

 

2.               The Performance Account value for a Participant who
terminates employment by reason of Retirement or who becomes permanently and
totally disabled, shall be distributed beginning no later than March 15 of
the calendar year following such termination or disability, according to the
provisions of Section VI (F).

 

7

 

E.                                      Effect of Other Termination of Employment

 

1.               If a Participant’s employment with the Company is terminated
for any reason other than his death, retirement, or permanent and total
disability, such Participant’s participation in the Plan immediately ceases,
and any applicable Performance Award shall be distributed beginning no later
than 90 days following such termination of employment, according to the provisions
of Section VI (F).

 

2.               If a Participant becomes ineligible for the Plan based
on a change of position within the Company where the new position is not eligible
for participation in the Plan, any applicable Participant’s Performance Account
value shall be distributed commencing no later than March 15 of the
calendar year following such change.

 

F.                                      Method of Payment and Value of
Performance Account

 

1.               A
Performance Account will be distributed in three, approximately equal annual
installments, commencing as specified in Section VI (D) or (E) above.

 

2.               The
Performance Account will be paid out in shares of company stock following the
Participant’s termination of employment with the company.

 

G.                                     Payment in the Event of a Change of
Control of the Company

 

1.               If a Change of Control in the Company occurs, as
defined in a Participant’s Change of Control Agreement, the target Annual Award
for the calendar year in which the Change of Control occurs will become
immediately payable. The full target Annual Award will be automatically and
immediately payable to the Participant.

 

2.               If a payment becomes due to a Participant under a
Change of Control Agreement, the Annual Award would become immediately payable
at the target annual award amount. The full target Annual Award will be
automatically and immediately payable to the Participant.

 

3.               If a payment shall become due to the Participant under
a Change of Control Agreement, all applicable Performance Awards shall
immediately become distributable to the Participant.  Performance Awards will be paid to the
Participant within thirty (30) days after the date of the Participant’s payment
being due under a Change of Control Agreement and will be subject to all normal
withholding of state and federal taxes.

 

4.               The provisions of this Section VI (G), shall take
precedence over all other provisions of this Plan.

 

8

 

H.                                    Withholding

 

All payments and
distributions shall be subject to applicable withholding requirements.

 

Section VII. Administration
of the Plan

 

A.                                   Authority of Board of Directors

 

This Plan will be
administered by the Compensation Committee of the Board of Directors, appointed
by and accountable to the Board and whose members are not eligible for awards
under the Plan.  The Committee may
establish rules and regulations from time to time that are not
inconsistent with the provisions of this Plan.

 

B.                                     Authority of the Chair

 

The Chair and/or
his appointee shall be responsible to the Committee for the administration of
this Plan.

 

C.                                     Amendment and Termination

 

The
Board of Directors may amend this Plan in any respect at any time and may
terminate the Plan in whole or in part at any time, subject to the following:

 

                                                1.                                       Fiscal-year performance goals may not be
altered, amended, suspended or discontinued during any Plan Year with respect
to that Plan Year without the approval of the Compensation Committee.

 

                                                2.                                       Amendment or termination may not
adversely affect the value of any earned Annual Awards.

 

D.                                    Denial of Annual Performance Awards

 

Any Participant
who voluntarily terminates employment except as provided in paragraph (E) below,
or who is involuntarily discharged for any reason whatsoever prior to the last
day of a Plan Year, with the exception of a Change of Control of the Company,
will not be entitled to an award for that Plan Year unless such exception is
approved by the Committee.  In the event
of a Change of Control in the Company, Section VI (G) will apply.

 

E.                                      Pro-Rata Awards

 

A
Participant whose employment is terminated prior to the last day of a Plan Year
by reason of death, Retirement, or permanent and total disability, shall be
entitled to a pro-rata Annual Award through the date of such termination of a
Participant’s employment.

 

9

 

F.                                      Status of Participants’ Claims

 

All distributions
under this Plan are made from the general assets of the Company or the funds
held by the Trustee, as applicable.  The
Plan does not create any lien on or security interest in any property of the
Company, and no person may assert any rights under the Plan superior to the
rights of an unsecured general creditor of the Company.

 

G.                                     Nonalienability

 

Rights under this
Plan are not subject to voluntary or involuntary assignment or alienation. Any
attempted assignment or alienation will be disregarded by the Company.

 

H.                                    Severability

 

If any provision
of this Plan is determined to be invalid or illegal, the remaining provisions
shall be effective and shall be interpreted as if the invalid or illegal
provision did not exist, unless the continuance of the Plan in such
circumstances would defeat its purposes.

 

I.                                         Employment Rights

 

Nothing in the
Plan shall confer upon any Participant the right to continue in the employment
of the Company or any subsidiary or affect any right which the Company or any
subsidiary may have to terminate the employment of the Participant with or
without cause.

 

J.                                        Headings

 

All headings in
this Plan are for reference only and are not to be utilized to construe its
terms.

 

K.                                    Governing Law

 

This Plan is
governed in all respects by the laws of the State of Minnesota.

 

10

 

Attachment
A

 

HICKORYTECH
CORPORATION

Annual Award Calculation

Worksheet Example

 

	
  Name:

  	
   

  	
  Plan Year:

  	
   

  
	
   

  	
   

  	
   

  
	
  Position Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  1. Fiscal Base Salary
  Earnings:

  	
   

  	
  $

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  2. Target Incentive:

  	
   

  	
  %

  	
  $

  	
   

  	 

											

 

 

3.  Organizational Award I:

 

	
   

  	
  a.

  	
  Target Amount (           %
  of Line 2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Performance Adjustment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Net
  Income

  	
   

  	
  ROIC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  Target

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  % of Plan

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  Factor

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Award

  	
  $

  	
   

  	
  +

  	
  $

  	
   

  	
   

  	
  = $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
														

 

4.  Organizational Award II:

 

	
   

  	
  a.

  	
  Target Amount (           %
  of Line 2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Performance Adjustment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Division
  EBITDA

  	
   

  	
  Division
  Revenue

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  Target

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  % of Plan

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  o

  	
  Factor

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Award

  	
  $

  	
   

  	
  +

  	
  $

  	
   

  	
   

  	
  = $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Total Annual Award (3c
  + 4c)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  

 

 

11

 

Attachment
B

 

HICKORYTECH CORPORATION

 

Executive
Incentive Plan

 

Designation of
Beneficiary

 

	
  Participant’s Name:

  	
   

  	
  Social Security Number:

  	
   

  
	
   

  	
   

  	
   

  
	
  Home Address:

  	
   

  

 

If I die prior to the
payment of all or a portion of any amount payable to me under the HickoryTech
Corporation Executive Incentive Plan, the balance of the amount payable shall
be paid to the following person(s):

 

Instructions:  
List each beneficiary who is to share in any payment due under the
plan.  State specifically what percentage
of the total amount to be paid is to be received by each beneficiary.  Use first, middle and last names (such as
Mary Alice Jones not Mrs. William Jones).

 

 

	
  Primary

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Beneficiary(s) Name

  	
   

  	
  Beneficiary (s)

  	
   

  	
  Beneficiary (s)

  	
   

  	
  Relationship

  	
   

  	
  Percent

  
	
   

  	
   

  	
  Social Security
  #

  	
   

  	
  Address

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

	
  Contingent

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

In the event that all of
the above-named beneficiaries shall predecease me, or if there is doubt as to
the right of any beneficiary, HickoryTech Corporation shall make payments,
which would otherwise have been made to such beneficiary, to my estate, and in
such event HickoryTech Corporation shall not be under any further liability.

 

This beneficiary
designation cancels and supersedes any previous designation that I may have
with respect to this Plan.  The
designation is effective as of the date this form is signed by me.  I have the right to change this beneficiary
designation at any time by filing a new beneficiary designation form with the
Company.

 

 

	
   

  	
   

  	
   

  
	
  Participant’s
  Signature

  	
   

  	
  Date

  

 

 

12Exhibit 10.125

 

EXECUTIVE SEVERANCE AGREEMENT

 

This Executive Severance Agreement (the “Agreement”), dated as of February 27,
2009, is made and entered into by and between Paul Ross (“Executive”) and Meade
Instruments Corp., a Delaware corporation (the “Company”).

 

RECITALS

 

A.                                   Executive has served as Senior Vice
President - Finance and Chief Financial Officer of the Company.

 

B.                                     The terms and conditions of Executive’s
employment with the Company are governed by an Employment Agreement, dated as
of July 13, 2007 (the “Employment Agreement”), by and between the Company
and Executive.

 

C.                                     The parties desire that the Employment
Agreement be terminated effective as of April 1, 2009 (the “Separation
Date”). Accordingly, Executive and the Company desire to enter into this
Agreement to set forth in detail, among other things, the payments Executive is
entitled to receive in connection with such termination from the Company.

 

NOW, THEREFORE, in consideration of the covenants undertaken in the
Agreement, the Company and Executive agree as follows:

 

AGREEMENT

 

1.                                       Termination of Employment Agreement. 
On the Separation Date, the Employment Agreement shall terminate;
provided, however, that notwithstanding anything to the contrary in this
Agreement, Sections 7 (Confidential Information), 8 (Inventions and
Patents), 9 (Non-Competition), 10 (Non-Solicitation of Customers),
11 (Noninterference with Employees), 12 (Assistance in Patent
Applications) and 13 (Indemnity) of the Employment Agreement, which are
incorporated herein by reference, shall continue to apply in accordance with
their terms.  Executive hereby resigns
from any position he may have as a director or officer with the Company or any
affiliate of the Company.

 

2.                                       Severance Payments. 
In connection with the termination of the Employment Agreement and for
his obligations to the Company under this Agreement, including, without
limitation, the Non-Competition obligations set forth in the Employment
Agreement, the Company hereby agrees to pay Executive on the Separation Date a
lump sum cash payment equal to Two Hundred Sixty Thousand Dollars ($260,000)
(the “Severance Payment”).

 

3.                                       Company Property. 
Executive agrees to return all Company property to the Company on the
Separation Date, including, without limitation, product samples or other
Company equipment of a material nature, confidential company documentation, or
any company records; provided, however, Executive can retain his office
computer and related peripherals without any cost to Executive. Notwithstanding
the above, the parties agree that the Company cell phone issued to Executive
shall remain with and shall become the property of Executive, and Executive
agrees to be responsible for all expenses and liabilities related thereto after
the Separation Date.

 

 

4.                                       Executive Release. 
In consideration of the terms of this Agreement as provided herein,
except as to any obligations provided for or assumed in this Agreement
Executive hereby waives and releases the Company, and each of its affiliated or
related entities, partnerships, parent or subsidiary corporations, members,
partners, stockholders, directors, officers, employees, attorneys, agents,
predecessors, successors and assigns, and each and all of them (collectively
referred to as the “Company Releasees”), from all claims, damages, agreements,
charges of discrimination or complaints of any nature whatsoever, whether or
not now known, suspected or claimed, matured or unmatured, fixed or contingent,
which Executive or his successors-in-interest ever had, now has, or may claim
to have against the Company Releasees, or any of them, whether directly or
indirectly, by reason of any act, event or omission concerning any matter,
cause or thing arising prior to the date of execution of this Agreement,
including, without limiting the generality of the foregoing, any claims
relating to or arising out of (i) Executive’s employment or the cessation
of that employment; (ii) any agreement between Executive and any of the
Company Releasees, including, without limitation, the Employment Agreement; (iii) any
tort or tort-type claims; (iv) any federal, state or governmental
constitution, statute, regulation or ordinance, including, but not limited to,
Title VII of the Civil Rights of 1964, the Employee Retirement Income Security
Act, the Age Discrimination in Employment Act, as amended by the Older Workers
Benefit Protection Act, the Americans With Disabilities Act, and the California
Fair Employment and Housing Act; (v) any claim for wages, salary, bonuses,
partnership interests, profit sharing, and/or any other compensation or
benefit; (vi) any impairment of Executive’s ability to obtain subsequent
employment; or (vii) any permanent or temporary disability or loss of
future earnings as a result of injury or disability arising from or associated
with employment or the termination of the employment relationship with any of
the Company Releasees. This release does not waive or release any claim
Executive may have to unemployment or workers’ compensation benefits. This
release includes a waiver of any rights Executive may have under Section 1542
of the California Civil Code, or any similar statute or law of any other state,
regarding the waiver of unknown claims. Such Section 1542 provides as
follows:

 

“A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST
IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

Notwithstanding the provisions of such Section 1542, and for the
purpose of implementing a full and complete release and discharge of all
claims, Executive understands and agrees that this Agreement is intended to
include in its effect, without limitation, all claims, if any, which Executive
may have and which Executive does not now know or suspect to exist in his favor
against the Company Releasees, and this Agreement extinguishes any and all of
those claims.

 

5.                                       Company Release. 
As additional consideration to Executive, and except as to any
obligations provided for or assumed in this Agreement, the Company hereby
waives and releases Executive, and each of his attorneys, agents, predecessors,
successors and assigns, and each and all of them (collectively referred to as
the “Executive Releasees”), from all claims, damages, agreements, or complaints
of any nature whatsoever, whether or not known, suspected or

 

2

 

claimed, matured or unmatured, fixed or contingent, which the Company
or its successors-in-interest ever had, now has, or may claim to have against
the Executive Releasees, or any of them, whether directly or indirectly, by
reason of any act, event or omission concerning any matter, cause or thing
arising prior to the date of execution of this Agreement, including, without
limiting the generality of the foregoing, any claims relating to or arising out
of (i) Executive’s employment or the cessation of that employment; (ii) any
agreement between Executive and any of the Company Releasees, including,
without limitation, the Employment Agreement; (iii) any tort or tort-type
claims; (iv) any claim for fraud, self-dealing, or similar claim; and (v) any
federal, state or governmental constitution, statute, regulation or ordinance.
This release includes a waiver of any rights the Company may have under Section 1542
of the California Civil Code (the language of which is set forth above in
paragraph 4), or any similar statute or law of any other State, regarding
the waiver of unknown claims. Notwithstanding the provisions of such Section 1542,
and for the purpose of implementing a full and complete release and discharge
of all claims, the Company understands and agrees that this Agreement is
intended to include in its effect, without limitation, all claims, if any,
which the Company may have and which the Company does not now know or suspect
to exist in its favor against Executive Releasees, and this Agreement
extinguishes any and all of those claims.

 

6.                                       Acknowledgement. 
Executive represents that he has had an opportunity to discuss all
aspects of this Agreement with his legal counsel, and understands all
provisions of this Agreement and is voluntarily entering into its terms.
Executive acknowledges that he has been advised in writing that he has the
right to and may consult with an attorney before executing this Agreement, and
acknowledges that he has had the opportunity to consult an attorney.

 

7.                                       Public Statements. 
Executive agrees that he shall not directly or indirectly, make or
ratify any statement, public or private, oral or written, to any person that
disparages, either professionally or personally, the Company or its
subsidiaries and affiliates, past and present, and each of them, as well as its
and their directors, officers and employees, and each of them, and the Company
agrees that it shall not directly or indirectly, make or ratify any statement,
public or private, oral or written, to any person that disparages Executive,
either professionally or personally.

 

8.                                       Indemnity.  The Company
and Executive expressly acknowledge that the provisions of their Indemnity
Agreement, and the provisions of the Employment Agreement set forth in
paragraph 1 above, continue to apply to Executive and the Company.
Accordingly, the Company covenants and agrees that so long as Executive shall
be subject to any possible Proceeding (as defined below), the Company, subject
to the terms hereof, shall promptly obtain and maintain in full force and
effect directors’ and officers’ liability insurance (“D&O Insurance”) in
reasonable amounts from established and reputable insurers. In all D&O
Insurance policies, Executive shall be provided the same rights and benefits as
are accorded to the most favorably insured of the Company’s directors and
officers. Notwithstanding anything in this Section 8, the Company shall
have no obligation to obtain or maintain D&O Insurance if the Company
determines in good faith that insurance is not reasonably available, the
premium costs for insurance are disproportionate to the amount of coverage
provided or the coverage provided by insurance is so limited by exclusions that
it provides an insufficient benefit. For purposes of this Section 8, the
term “Proceeding” shall include any threatened, pending or completed action,

 

3

 

suit or proceeding, whether brought by or in the name of the Company or
otherwise and whether of a civil, criminal or administrative or investigative
nature, by reason of the fact that Executive is or was a director and/or officer
of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent of another enterprise, whether or not he
is serving in such capacity at the time any liability or expense is incurred
for which indemnification or reimbursement is to be provided under the
Indemnity Agreement.

 

9.                                       Miscellaneous Provisions.

 

9.1.                              Personal Service. 
This Agreement is personal to Executive and shall not, without the prior
written consent of the Company, be assignable by Executive.

 

9.2.                              Successors.  This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns and any such successor or assignee shall be deemed
substituted for the Company under the terms of this Agreement for all purposes.
As used herein, “successor” and “assignee” shall include any person, firm,
corporation or other business entity which at any time, whether by purchase,
merger or otherwise, directly or indirectly acquires the stock of the Company
or to which the Company assigns this Agreement by operation of law or
otherwise.

 

9.3.                              Modification. 
This Agreement may not be amended or modified other than by a written
agreement executed by an Executive Officer of the Company.

 

9.4.                              Complete Agreement. 
This Agreement constitutes and contains the entire agreement and final
understanding concerning Executive’s employment relationship with the Company
and the other subject matters addressed herein and therein between the parties,
and supersedes and replaces all prior negotiations and all agreements proposed
or otherwise, whether written or oral, concerning the subject matters hereof
and thereof; provided, however, that notwithstanding anything to the contrary
in this Agreement, Sections 7 (Confidential Information), 8 (Inventions
and Patents), 9 (Non-Competition), 10 (Non-Solicitation of
Customers), 11 (Noninterference with Employees), 12 (Assistance in
Patent Applications) and 13 (Indemnity) of the Employment Agreement, which
are incorporated herein by reference, shall continue to apply in accordance
with their terms, and nothing herein or therein shall limit or otherwise modify
the indemnification obligations of the Company in favor of Executive under the
Company’s Certificate of Incorporation, Bylaws or the Indemnity Agreement.
Except as contained in the foregoing proviso, any representation, promise or
agreement not specifically included in this Agreement shall not be binding upon
or enforceable against either party.

 

9.5.                              Litigation and Investigation Assistance. 
Executive agrees to cooperate to the extent reasonably requested in the
Company’s defense against any threatened or pending litigation or in any
investigation or proceeding that relates to any events or actions which
occurred during the term of Executive’s employment.  The Company shall reimburse Executive for all
reasonable, out of pocket expenses incurred by Executive in fulfilling his
obligations under this Section 9.5.

 

4

 

9.6.                              Severability. 
If any provision of this Agreement or the application thereof is held
invalid, the invalidity shall not affect other provisions or applications of
the Agreement which can be given effect without the invalid provisions or
applications and to this end the provisions of this Agreement are declared to
be severable.

 

9.7.                              Specific Performance. 
It might be impossible to measure in money the damage to a party if
another party breaches this Agreement. If any such failure occurs, the party
damaged might not have an adequate remedy at law or in damages. Therefore, each
party consents to the issuance of an injunction or other appropriate relief,
and the enforcement of other equitable remedies, against it to compel
performance of this Agreement.

 

9.8.                              Choice of Law. 
This Agreement shall be deemed to have been executed and delivered
within the State of California, and the rights and obligations of the parties
hereunder shall be construed and enforced in accordance with, and governed by,
the laws of the State of California without regard to principles of conflict of
laws.

 

9.9.                              Cooperation in Drafting. 
Each party has cooperated in the drafting and preparation of this
Agreement. Hence, in any construction to be made of this Agreement, the same
shall not be construed against any party on the basis that the party was the
drafter.

 

9.10.                        Counterparts.  This
Agreement may be executed in counterparts, and each counterpart, when executed,
shall have the efficacy of a signed original. Photographic copies of such
signed counterparts may be used in lieu of the originals for any purpose.

 

9.11.                        Arbitration.  As a material
inducement to enter into this Agreement, to the fullest extent allowed by law,
any controversy, claim or dispute between Executive and the Company will be
submitted to final and binding arbitration before a single neutral arbitrator
in Orange County, California for determination in accordance with the JAMS
Employment Arbitration Rules, as the exclusive remedy for such controversy,
claim or dispute. In any such arbitration, the parties may conduct discovery to
the same extent as would be permitted in a court of law. The arbitrator shall
issue a written decision, and shall have full authority to award all remedies
which would be available in court. The Company shall pay the arbitrator’s fees
and any JAMS administrative expenses. Any judgment upon the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof. BY
AGREEING TO THIS BINDING ARBITRATION PROVISION, BOTH EXECUTIVE AND THE COMPANY
GIVE UP ALL RIGHTS TO TRIAL BY JURY. This bilateral arbitration agreement is to
be construed as broadly as is permissible under relevant law. In connection
with any arbitration proceeding commenced hereby, the prevailing party shall be
entitled to reimbursement of its reasonable attorney’s fees and costs.

 

9.12.                        Headings.  The section
headings contained in this Agreement are inserted for convenience only and
shall not affect in any way the meaning or interpretation of this Agreement.

 

9.13.                        Waiver.  No provision
of this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by the
Executive and by an Executive Officer of the Company. No waiver by either party
of any breach 

 

5

 

of, or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other condition or
provision or of the same condition or provision at another time.

 

9.14.                        Expenses.  Each party shall
bear their own legal expenses and costs in connection with the negotiation,
preparation and execution of this Agreement. In the event that any action or
proceeding is brought in connection with this Agreement, the prevailing party
therein shall be entitled to recover its costs and reasonable attorney’s fees

 

9.15.                        Publicity.  To the extent
the Company or Executive desire to publicly announce the existence of this
Agreement, or the termination of Executive’s Employment Agreement, or as may be
required by applicable law, both parties agree to not make any public
announcement or disclosure without the other party’s prior written consent,
such consent not to be unreasonably withheld.

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by its duly authorized officer, as of the day and year
set forth above.

 

	
   

  	
  MEADE
  INSTRUMENTS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Steven G.
  Murdock

  
	
   

  	
   

  	
  Steven G.
  Murdock

  
	
   

  	
   

  	
  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/Paul E. Ross

  
	
   

  	
  Paul E. Ross

  

 

6

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