Document:

Exhibit
10.1

 

THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

 

 

                This THIRD AMENDMENT TO EMPLOYMENT
AGREEMENT (this “Amendment”) is made and entered into this 5th day of November,
2007 by and between Optelecom-NKF, Inc., a Delaware corporation (the “Company”),
and Edmund Ludwig, an individual (“Employee”). 
All capitalized terms used and not defined herein shall have the
respective meanings as set forth in the Employment Agreement between the
Company and Employee dated as of November 4, 2002 (the “Employment Agreement”).

 

                WHEREAS the Company and Employee
have entered into the Employment Agreement setting forth the terms and
conditions of Employee’s employment by the Company; and

 

                WHEREAS the Company and Employee
are desirous of amending the Employment Agreement and this Amendment has been
reviewed and approved by the Compensation Committee of the Board of Directors
of the Company.

 

                NOW, THEREFORE, in consideration
of the mutual covenants and agreements contained in the Employment Agreement
and herein, the parties agree as follows:

 

1.             Paragraph 4(a) of the Employment Agreement
is hereby deleted in its entirety and replaced with the following:

 

                (a)           Base Salary.  Commencing January 1, 2008, Employee shall be
paid a base salary in the annualized amount of not less than $254,100 payable in
substantially equal bi-monthly or other installments in accordance with the
general practice of the Company, subject to any and all customary payroll
deductions for the FICA and any other federal, state and local taxes.  Commencing January 1, 2009, Employee shall be
paid a base salary in the annualized amount of not less than $266,800, payable
in substantially equal bi-monthly or other installments in accordance with the
general practice of the Company, subject to any and all customary payroll
deductions for the FICA and any other federal, state and local taxes.    Employee’s
base salary will be reviewed annually and subject to adjustment by the
Compensation Committee of the Board of Directors, in its sole discretion.

 

 

2.             Paragraph 4(b) of the Employment
Agreement is hereby deleted in its entirety and replaced with the following:

 

                (b)           Bonus.  Employee shall be eligible for an annual
bonus based upon Employee’s individual performance and specified sales, sales
growth and profitability goals and objectives for the Company to be developed
annually in good faith by the Compensation Committee of the Board of Directors,
in consultation with Employee.  For
calendar years 2008 and 2009, Employee shall be entitled to receive cash and

 

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equity incentives set forth in the Company’s incentive compensation
program approved by the Compensation Committee, in its sole discretion, for
such years upon satisfaction of the criteria set forth in such programs, with a
cash incentive target equal to 55% of the current base salary for that year
upon the achievement of 100% of target performance scalable above and below the
target.  All equity incentives, if any,
granted to Employee under the incentive compensation program shall be in the
form of restricted stock awards.

 

 

3.             Paragraph 4(d) of the Employment
Agreement is hereby deleted in its entirety and replaced with the following:

 

                (d)           Additional Cash Payment for
Qualifying Service.  If Employee is
engaged in a Qualifying Service (as defined in Section 16) on December 31,
2007, then he shall be entitled to an additional cash payment of $60,000,
payable in a lump sum on January 2, 2008, subject to any and all customary
payroll deductions for the FICA and any other federal, state and local taxes.  If Employee is engaged in a Qualifying
Service (as defined in Section 16) on December 31, 2008, then he shall be
entitled to an additional cash payment of $63,000, payable in a lump sum on
January 2, 2009, subject to any and all customary payroll deductions for the
FICA and any other federal, state and local taxes.  If Employee is engaged in a Qualifying
Service (as defined in Section 16) on December 31, 2009, then he shall be entitled
to an additional cash payment of $66,145, payable in a lump sum on January 4,
2010, subject to any and all customary payroll deductions for the FICA and any
other federal, state and local taxes.

 

 

4.             Paragraph 6 of the Employment
Agreement is hereby deleted in its entirety and replaced with the following:

 

                6.             Vacation.  During the Employment Period, Employee shall
be entitled to accrue five (5) weeks paid vacation annually in accordance with
the Company’s regular vacation policies in effect from time to time.

 

 

5.             Paragraph 14(f) of the Employment
Agreement is hereby deleted in its entirety and replaced with the following:

 

(f)                                    If, and only
if, the Employee properly terminates his employment by retirement with notice
pursuant to Paragraph 14(a)(v) above, and has not otherwise violated this Agreement,
then (i) if Employee’s retirement is to take effect prior to July 1, 2008, the
Company shall further pay to Employee an amount equivalent to two (2) weeks of
the last annual base salary of Employee times the number of full years that
Employee has been employed by the Company; (ii) if Employee’s retirement is to
take effect between July

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1, 2008 and June 30, 2009, the Company shall further pay to Employee, in 52
equal biweekly payments, the amount of $622,004, or (iii) if Employee’s
retirement is to take effect after June 30, 2009, the Company shall further pay
to Employee, in 52 equal biweekly payments, the amount of $672,293.  Additionally, Employee shall be eligible to
continue to participate in the employee health plan then in effect through the
two (2) year period of such payments provided in clauses (ii) and (iii) above.

 

 

6.             Except as specifically modified by
this Amendment, all other terms and conditions of the Employment Agreement
shall continue in full force and effect.

 

7.             This Amendment may be executed in
two or more counterparts, all of which together shall constitute one and the
same instrument.

 

 

 

[SIGNATURES ON FOLLOWING
PAGE]

 

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IN
WITNESS WHEREOF, the parties, intending to be legally bound, have executed this
Third Amendment to Employment Agreement as of the date set forth above.

 

 

	
   

  	
  OPTELECOM-NKF, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
   

  	
  /s/ David Lipinski

  
	
   

  	
   

  	
   

  	
  David Lipinski, Chairman

  
	
   

  	
   

  	
   

  	
  Compensation Committee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Edmund Ludwig

  
	
   

  	
  Edmund Ludwig

  

 

 

4EXHIBIT 10.1

SECOND AMENDMENT TO THE

TUESDAY MORNING CORPORATION

2004 LONG-TERM EQUITY INCENTIVE PLAN

 

                THIS SECOND AMENDMENT TO THE TUESDAY MORNING
CORPORATION 2004 LONG-TERM EQUITY INCENTIVE PLAN (this “Amendment”) is
effective as set forth below and is made by the Compensation Committee (the “Committee”)
of Tuesday Morning Corporation, a Delaware corporation (the “Company”), subject
in certain cases to stockholder approval of this Amendment.

PRELIMINARY
STATEMENTS

                A.            The Company has previously established the Tuesday
Morning Corporation 2004 Long-Term Equity Incentive Plan, as amended (the “2004
Plan”), for the benefit of certain directors (including Non-Employee
Directors), officers and key employees of, and certain other key individuals
who perform services for, the Company and/or its Subsidiaries.  Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the 2004 Plan.

                B.            Pursuant to the Compensation Committee Charter, the
Committee has the right to make certain amendments to the 2004 Plan.

                C.            The Committee desires to amend the 2004 Plan to (1)
increase the aggregate number of Shares with respect to which Restricted Stock
awards may be granted under the 2004 Plan and (2) add a provision to the 2004
Plan regarding compliance with section 409A of the Internal Revenue Code of
1986, as amended, and the Department of Treasury rules and regulations issued
thereunder.

AMENDMENT

                NOW, THEREFORE, the 2004 Plan is
hereby amended as follows:

                1.             DEDICATED SHARES; MAXIMUM AWARD.  Subject to stockholder approval, the first
paragraph of Section 4 is hereby amended and restated in its entirety to read
as follows:

“The aggregate number of shares of Common Stock (the “Shares”) with respect to which awards may be granted under the
Plan is 2,000,000.  The Committee shall
determine the appropriate methodology for calculating the number of shares of
Common Stock issued pursuant to the Plan. 
The aggregate number of Shares with respect to which Incentive Stock
Options may be granted under the Plan is 2,000,000.  The aggregate number of Shares with respect
to which Nonqualified Stock Options may be granted under the Plan is
2,000,000.  The aggregate number of
Shares with respect to which Stock Appreciation Rights may be granted under the
Plan is 2,000,000.  The aggregate number
of Shares with respect to which Restricted Stock awards may be granted under
the Plan shall not exceed 1,000,000, subject to the limitation set forth in the
last sentence of this paragraph.  The
aggregate number of Shares with respect to which Performance 

 

 

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Stock Awards may be granted under the Plan shall not exceed 400,000,
subject to the limitation set forth in the last sentence of this
paragraph.  Notwithstanding any other
provision of the Plan to the contrary, the number of Shares the Committee may
award under the Plan as Restricted Stock and Performance Stock Awards shall not
exceed in the aggregate 1,000,000.”

                This amendment to the first
paragraph of Section 4, and the changes to the provisions of the 2004 Plan
effected thereby, shall be effective upon stockholder approval.

                2.             COMPLIANCE WITH SECTION 409A.  A new Section 20 is hereby added and the 2004
Plan is hereby amended effective January 1, 2005 to reflect the following
addition:

“20.         Compliance
with Section 409A.

Notwithstanding any other provision of the Plan to the contrary, awards
granted under the Plan shall be designed, granted and administered in such a
manner that they are either exempt from the application of, or comply with, the
requirements of section 409A of the Code and the Department of Treasury rules
and regulations issued thereunder (collectively, “Section 409A”).  If the Committee determines that an award
granted under the Plan, Award Agreement, payment, distribution, deferral
election, transaction, or any other action or arrangement contemplated by the
provisions of the Plan would, if undertaken, cause a Holder to become subject
to additional taxes under Section 409A, then unless the Committee specifically
provides otherwise, such award, Award Agreement, payment, distribution,
deferral election, transaction or other action or arrangement shall not be
given effect to the extent it causes such result and the related provisions of
the Plan and/or Award Agreement will be deemed modified, or, if necessary,
suspended in order to comply with the requirements of Section 409A to the
extent determined appropriate by the Committee, in each case without the
consent of or notice to Holder.  The period
of exercisability of an Option or a SAR shall not be extended to the extent
that such extension would subject Holder to additional taxes under Section
409A.”

                This amendment adding a new
Section 20, and the changes to the provisions of the 2004 Plan effected
thereby, shall be effective January 1, 2005.

                Except as expressly set forth
herein, the 2004 Plan shall remain in full force and effect without further
amendment or modification.

 

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                IN WITNESS WHEREOF, this
Amendment has been executed by a duly authorized officer of the Company as of
the date specified below and effective as set forth herein.

	
   

  	
   

  	
   

  	
   

  	
   

  	
  TUESDAY MORNING CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: November 7, 2007

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ ELIZABETH SCHROEDER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Elizabeth A. Schroeder

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer, Secretary and

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Treasurer

  	
   

  

 

 

 

S-1

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