Document:

exv10w2

 

EXHIBIT 10.2

HUTCHINSON TECHNOLOGY INCORPORATED

1996 INCENTIVE PLAN

(As Amended and Restated January 30, 2008)

*[Form of]*

Non-Statutory Stock Option Agreement

(Employee)

	 	 	 
	Name of Optionee:

	 	*[Optionee’s Name]*
	No. of Shares Covered:

	 	*[Number of shares]*
	Exercise Price Per Share:

	 	$*[ ]*
	Date of Grant:

	 	*[Date]*
	Expiration Date:

	 	*[Date]*

This is a Non-Statutory Stock Option Agreement (“Agreement”) between Hutchinson Technology
Incorporated, a Minnesota corporation (the “Company”), and the optionee identified above (the
“Optionee”), effective as of the date of grant specified above. Unless the context indicates
otherwise, terms that are not defined in this Agreement will have the meaning set forth in the Plan
as it currently exists or as it is amended in the future.

Recitals

WHEREAS, the Company maintains the Hutchinson Technology Incorporated 1996 Incentive
Plan (As Amended and Restated January 30, 2008) (the “Plan”); and

WHEREAS, awards may be granted pursuant to the Plan to employees of the Company; and

WHEREAS, the Optionee is eligible to receive an award under the Plan in the form of a
non-statutory stock option (the “Option”).

NOW, THEREFORE, the Company hereby grants this Option to the Optionee under the terms
and conditions as follows.

 

 

Terms and Conditions

	1.	 	Grant. The Optionee is granted this Option to purchase the number of Shares
specified at the beginning of this Agreement.
	 
	2.	 	Exercise Price. The price to the Optionee of each Share subject to this Option will
be the exercise price specified at the beginning of this Agreement (which price may not be
less than the Fair Market Value of a Share as of the date of grant).
	 
	3.	 	Non-Statutory Stock Option. This Option is not intended to be an “incentive
stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).
	 
	4.	 	Exercise Schedule. This Option will vest (a) as to 50% of the Shares covered hereby,
on the second anniversary of the date of the grant of this Option, and (b) as to the remaining
50% of the Shares covered hereby, on the third anniversary of the date of the grant of this
Option. If this Option has not expired prior thereto, it may be exercised in whole or in part
with respect to any Shares as to which this Option has vested.
	 
	 	 	This Option may also be exercised under the circumstances described in Sections 8 and 9 of
this Agreement if it has not expired prior thereto.
	 
	5.  	 	Expiration. This Option will expire
at 5:00 p.m. Central Time on the earliest of:
	 
	 	 	(a)	 	the expiration date specified at the beginning of this Agreement;
	 
	 	 	(b)	 	the last day of the period following the termination of employment of the Optionee
during which this Option can be exercised (as specified in Section 7 of this Agreement);
or
	 
	 	 	(c)	 	the date (if any) fixed for cancellation pursuant to Section 9 of this Agreement.
	 
	 	 	In no event may anyone exercise this Option, in whole or in part, after it has expired,
notwithstanding any other provision of this Agreement.
	 
	6.  	 	Procedure to Exercise Option.
	 
	 	 	Method of Exercise. This Option may be exercised by delivering written or electronic notice
of exercise to the Company at the principal executive office of the Company, to the attention
of the Company’s Vice President, Human Resources or the party designated by such officer
(which written or electronic notice will state the number of Shares to be purchased and must
be signed or otherwise authenticated by the person exercising this Option), or by such other
means as the Board or Committee may approve. If the person exercising this Option is not the
Optionee, he/she also must submit appropriate proof of his/her right to exercise this Option.

2

 

	 	 	Tender of Payment. Upon giving notice of any exercise hereunder, the Optionee will provide
for payment of the purchase price of the Shares being purchased through one or a combination
of the following methods:
	 
	 	 	(a)	 	cash;
	 
	 	 	(b)	 	to the extent permitted by law, a broker-assisted cashless exercise in which the
Optionee irrevocably instructs a broker to deliver proceeds of a sale of all or a portion
of the Shares to be issued pursuant to the exercise (or a loan secured by such Shares) to
the Company in payment of the purchase price of such Shares;
	 
	 	 	(c)	 	by delivery to the Company or its designated agent of unencumbered Shares having an
aggregate Fair Market Value on the date of exercise equal to the purchase price of such
Shares; or
	 
	 	 	(d)	 	by a reduction in the number of Shares delivered to the Optionee upon exercise,
such number of Shares having an aggregate Fair Market Value on the date of exercise equal
to the purchase price of such Shares.
	 
	 	 	Notwithstanding the foregoing, the Optionee may not pay any portion of the purchase price with
Shares if the Committee, in its sole discretion, determines that payment in such manner is
undesirable.
	 
	 	 	Issuance of Shares. As soon as practicable after the Company receives notice of the exercise
in a manner approved by the Board or Committee and the purchase price provided for above, it
will arrange for the delivery of the Shares being purchased in accordance with the delivery
instructions related to such notice. The Company will pay any original issue or transfer
taxes with respect to the issue or transfer of the Shares and all fees and expenses incurred
by it in connection therewith. All Shares so issued will be fully paid and nonassessable.
Notwithstanding anything to the contrary in this Agreement, the Company will not be required
to issue or deliver any Shares prior to the completion of such registration or other
qualification of such Shares under any state or federal law, rule or regulation as the Company
may determine to be necessary or desirable.
	 
	7.  	 	Employment Requirement. This Option may be exercised only while the Optionee remains
employed with the Company or a parent or subsidiary thereof, and only if the Optionee has been
continuously so employed since the date of this Agreement; provided that:
	 
	 	 	(a)	 	this Option may be exercised for three months following the day the Optionee’s
employment by the Company terminates if such termination of employment is for a reason
other than Cause, death or Disability, but only to the extent that it was exercisable
immediately prior to termination of employment;

3

 

	 	 	(b)	 	this Option may be exercised within three years after the Optionee’s employment by
the Company terminates if such termination of employment is because of death or
Disability;
	 
	 	 	(c)	 	if the Optionee’s employment terminates after a declaration made pursuant to
Section 13 of the Plan in connection with an Event, this Option may be exercised at any
time permitted by such declaration; and
	 
	 	 	(d)	 	notwithstanding paragraph (a) of this Section 7, if (i) the Optionee has been
employed by the Company for at least ten years (whether or not consecutive), and (ii) the
Optionee’s employment with the Company terminates for reasons other than Cause, death or
Disability after the Optionee has reached age 55, then this Option may be exercised at
any time within three years after the Optionee’s employment by the Company terminates,
but only to the extent that it was exercisable immediately prior to termination of
employment.
	 
	 	 	Notwithstanding the above, this Option may not be exercised after the expiration date
specified at the beginning of this Agreement.
	 
	8.	 	Acceleration of Option. This Option may be exercised in full, regardless of whether
such exercise occurs prior to a date on which this Option would otherwise vest, upon
termination of the Optionee’s employment with the Company and any parent or subsidiary thereof
due to the death or Disability of the Optionee; provided that the Optionee has been
continuously employed by the Company or a parent or subsidiary thereof between the date of
this Agreement and the date of such death or Disability.
	 
	9.	 	Change in Control. In the event there is a Change in Control of the Company during
the term of this Option, the effect of that Change in Control shall be as provided in Section
12 of the Plan as in effect on the date of this Agreement. In connection with a proposed
Change in Control of the Company that would also constitute an Event, any of the actions
described in Section 13 of the Plan as in effect on the date of this Agreement may be taken.
	 
	10.	 	Limitation on Transfer. Except as otherwise provided in this Section 10, while the
Optionee is alive, only the Optionee or his/her guardian or legal representative may exercise
this Option. Except as otherwise provided in this Section 10, this Option may not be assigned
or transferred other than by will or the laws of descent and distribution or pursuant to a
qualified domestic relations order. This Option may be transferred at any time that it
remains outstanding and unexpired to (a) any member of the Optionee’s “immediate family” (as
such term is defined in Rule 16a-1(e) promulgated under the Securities Exchange Act of 1934,
as amended, or any successor rule or regulation), (b) one or more trusts whose beneficiaries
are members of the Optionee’s “immediate family” or the Optionee, or (c) partnerships in which
such family members or the Optionee are the only partners; provided, however, that the
Optionee receives no consideration for the transfer. Following any such transfer, this
Option, when held by any such permitted transferee, shall continue to be subject to the same
terms and conditions that were applicable to this Option immediately prior to its transfer and
may be exercised by such

4

 

	 	 	permitted transferee as and to the extent
that this Option has become exercisable and has not terminated in accordance with the
provisions of the Plan and this Agreement.
	 
	11.	 	No Shareholder Rights Before Exercise. No person may have any of the rights of a
shareholder of the Company with respect to any Share subject to this Option until the Share is
actually issued to him/her upon exercise of this Option.

	12.	 	Changes in Capitalization. In the event of any reorganization, merger,
consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split,
combination of shares, rights offering, or extraordinary dividend or divestiture (including a
spin-off), or any other change in the corporate structure or Shares of the Company, such
adjustments as are authorized pursuant to Section 14 of the Plan shall be made as to the
number and kind of securities issuable upon exercise of this Option and the exercise price
hereof in order to prevent dilution or enlargement of rights of the Optionee.

	13.	 	Tax Withholding. Delivery of Shares upon exercise of this Option shall be subject to
any required withholding taxes. As a condition precedent to receiving Shares upon exercise of
this Option, the Optionee may be required to pay to the Company, in accordance with the
provisions of Section 10 of the Plan, an amount equal to the amount of any required
withholdings.

	14.	 	Interpretation of This Agreement. All decisions and interpretations made by the
Board or the Committee with regard to any question arising hereunder or under the Plan will be
binding and conclusive upon the Company and the Optionee. If there is any inconsistency
between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.

	15.	 	Discontinuance of Employment. This Agreement does not give the Optionee a right to
continued employment with the Company or any parent or subsidiary of the Company, and the
Company or any such parent or subsidiary employing the Optionee may terminate his/her
employment at any time and otherwise deal with the Optionee without regard to the effect it
may have upon him/her under this Agreement.

	16.	 	Option Subject to Plan, Articles of Incorporation and By-Laws. The Optionee
acknowledges that this Option and the exercise thereof is subject to the Plan, the Articles of
Incorporation, as amended from time to time, and the By-Laws, as amended from time to time, of
the Company, and any applicable federal or state laws, rules or regulations.

	17.	 	Obligation to Reserve Sufficient Shares. The Company will at all times during the
term of this Option reserve and keep available a sufficient number of Shares to satisfy this
Agreement.

	18.	 	Binding Effect. This Agreement is binding in all respects on the heirs,
representatives, successors and assigns of the Optionee.

5

 

	19.	 	Choice of Law. This Agreement is entered into under the laws of the State of
Minnesota and will be construed and interpreted thereunder (without regard to its conflict of
law principles).

     IN WITNESS WHEREOF, the Optionee and the Company have executed this Agreement as of the
                      day of                                         , 20     
               .

	 	 	 	 	 
	 

	 	*[OPTIONEE’S NAME]*	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	HUTCHINSON TECHNOLOGY INCORPORATED	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	*[Name of Authorized Officer]*	 	 
	 

	 	*[Title of Authorized Officer]*	 	 

6exv10w3

 

EXHIBIT 10.3

AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT

     This AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT (“Amendment”), by and between
HUTCHINSON TECHNOLOGY INCORPORATED (“HTI”), a Minnesota corporation, HUTCHINSON TECHNOLOGY ASIA,
INC., a Minnesota corporation (“Asia”; collectively HTI and Asia shall be referred to as the
“Borrower”), whose address is 40 W. Highland Park, Hutchinson, Minnesota 55350, and LASALLE BANK
NATIONAL ASSOCIATION, a national banking association, (the “Bank”), whose address is 135 South La
Salle Street, Chicago, Illinois 60603, dated February 1, 2008.

R E C I T A L S:

     A. The Borrower and the Bank entered into that certain Second Amended and Restated Loan
Agreement dated as of December 21, 2007 (the “Loan Agreement”), pursuant to which Loan Agreement
the Bank has made a Revolving Loan to the Borrower evidenced by that certain Revolving Note dated
as of December 21, 2007 in the maximum principal amount of Fifty Million and 00/100 Dollars
($50,000,000.00), executed by the Borrower and made payable to the order of the Bank (the
“Revolving Note”).

     B. At the present time the Borrower requests, and the Bank is agreeable to amending the Loan
Agreement as provided herein, pursuant to the terms and conditions hereinafter set forth.

     NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Borrower and the Bank hereby agree as
follows:

A G R E E M E N T S:

     1. RECITALS. The foregoing Recitals are hereby made a part of this Amendment.

     2. DEFINITIONS. Capitalized words and phrases used herein without definition shall
have the respective meanings ascribed to such words and phrases in the Loan Agreement.

     3. AMENDMENTS TO THE LOAN AGREEMENT.

     3.1. Section 7.5 of the Loan Agreement is hereby amended in its entirety to read as follows:

7.5 Distributions. HTI shall not, either directly or indirectly, purchase or
redeem any shares of stock, or declare or pay any dividends (other than stock
dividends), whether in cash or otherwise, or set aside any funds for any such
purpose or make any distribution to its shareholders that, in the aggregate, exceed
One Hundred Fifty Million and 00/100 Dollars ($150,000,000.00) for the period
commencing on February 1, 2008 and ending on January 31, 2011.

 

 

     4.    REPRESENTATIONS AND WARRANTIES. To induce the Bank to enter into this Amendment,
the Borrower hereby certifies, represents and warrants to the Bank that:

     4.1. Organization. Each Borrower is a corporation duly organized, existing and in
good standing under the laws of the State of Minnesota, with full and adequate corporate power to
carry on and conduct its business as presently conducted. The Borrower is duly licensed or
qualified in all foreign jurisdictions wherein the nature of its activities require such
qualification or licensing. The Articles of Incorporation, Borrowing Resolutions and Incumbency
Certificate of the Borrower have not been changed or amended since the most recent date that
certified copies thereof were delivered to the Bank. HTI’s state issued organizational
identification number is 1I-896 and Asia’s state issued organizational identification number is
5Y-334. The exact legal name of the Borrower is as set forth in the preamble of this Amendment,
and the Borrower currently does not conduct, nor has it during the last five (5) years conducted,
business under any other name or trade name. The Borrower will not change its name, its
organizational identification number, if it has one, its type of organization, its jurisdiction of
organization or other legal structure.

     4.2. Authorization. The Borrower is duly authorized to execute and deliver this
Amendment and is and will continue to be duly authorized to borrow monies under the Loan Agreement,
as amended hereby, and to perform its obligations under the Loan Agreement, as amended hereby.

     4.3. No Conflicts. The execution and delivery of this Amendment and the performance
by the Borrower of its obligations under the Loan Agreement, as amended hereby, do not and will not
conflict with any provision of law or of the Articles of Incorporation of the Borrower or of any
agreement binding upon the Borrower.

     4.4. Validity and Binding Effect. The Loan Agreement, as amended hereby, is a legal,
valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with
its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws
of general application affecting the enforcement of creditors’ rights or by general principles of
equity limiting the availability of equitable remedies.

     4.5. Compliance with Loan Agreement. The representations and warranties set forth in
Section 6 of the Loan Agreement, as amended hereby, are true and correct with the same effect as if
such representations and warranties had been made on the date hereof, with the exception that all
references to the financial statements shall mean the financial statements most recently filed with
the Securities and Exchange Commission and except for such changes as are specifically permitted
under the Loan Agreement. In addition, the Borrower has complied with and is in compliance with
all of the covenants set forth in the Loan Agreement, as amended hereby, including, but not limited
to, those set forth in Section 7, Section 8 and Section 9 thereof.

     4.6. No Event of Default. As of the date hereof, no Event of Default under Section 10
of the Loan Agreement, as amended hereby, or event or condition which, with the giving of notice or
the passage of time, or both, would constitute an Event of Default, has occurred or is continuing.

2

 

     5.    CONDITIONS PRECEDENT. This Amendment shall become effective as of the date above
first written after receipt by the Bank of the following:

     5.1. Amendment. This Amendment executed by the Borrower and the Bank.

     5.2. Other Documents. Such other documents, certificates and/or opinions of counsel
as the Bank may request.

     6. 
  GENERAL.

     6.1. Governing Law; Severability. This Amendment shall be construed in accordance
with and governed by the laws of Illinois. Wherever possible each provision of the Loan Agreement
and this Amendment shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of the Loan Agreement and this Amendment shall be prohibited
by or invalid under such law, such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of
the Loan Agreement and this Amendment.

     6.2. Successors and Assigns. This Amendment shall be binding upon the Borrower and
the Bank and their respective successors and assigns, and shall inure to the benefit of the
Borrower and the Bank and the successors and assigns of the Bank.

     6.3. Continuing Force and Effect of Loan Documents. Except as specifically modified
or amended by the terms of this Amendment, all other terms and provisions of the Loan Agreement and
the other Loan Documents are incorporated by reference herein, and in all respects, shall continue
in full force and effect. The Borrower, by execution of this Amendment, hereby reaffirms, assumes
and binds itself to all of the obligations, duties, rights, covenants, terms and conditions that
are contained in the Loan Agreement and the other Loan Documents.

     6.4. References to Loan Agreement. Each reference in the Loan Agreement to “this
Agreement”, “hereunder”, “hereof”, or words of like import, and each reference to the Loan
Agreement in any and all instruments or documents delivered in connection therewith, shall be
deemed to refer to the Loan Agreement, as amended hereby.

     6.5. Expenses. The Borrower shall pay all costs and expenses in connection with the
preparation of this Amendment and other related loan documents, including, without limitation,
reasonable attorneys’ fees and time charges of attorneys who may be employees of the Bank or any
affiliate or parent of the Bank. The Borrower shall pay any and all stamp and other taxes, UCC
search fees, filing fees and other costs and expenses in connection with the execution and delivery
of this Amendment and the other instruments and documents to be delivered hereunder, and agrees to
save the Bank harmless from and against any and all liabilities with respect to or resulting from
any delay in paying or omission to pay such costs and expenses.

     6.6. Counterparts. This Amendment may be executed in any number of counterparts, all
of which shall constitute one and the same agreement.

3

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	HUTCHINSON TECHNOLOGY	 	 
	 	 	INCORPORATED, a Minnesota corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Ruth N. Bauer
 

Ruth N. Bauer
	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	HUTCHINSON TECHNOLOGY ASIA, INC., a Minnesota corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ruth N. Bauer	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Ruth N. Bauer	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION,	 	 
	 	 	a national banking association	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ A. Quinn Richardson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	A. Quinn Richardson	 	 
	 

	 	Title:
	 	First Vice President	 	 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]