Document:

exv10w4

EXHIBIT 10.4

AMERICAN COMMERCIAL LINES INC.

2008 OMNIBUS INCENTIVE PLAN

PERFORMANCE BASED RESTRICTED STOCK UNIT AGREEMENT

2009 EQUITY GRANT

American Commercial Lines Inc., a Delaware corporation, (the “Company”), hereby grants performance
based restricted stock units relating to shares of its common stock, $.01 par value, (the “Stock”),
to the individual named below as the Grantee, subject to the vesting conditions set forth in this
Agreement. Additional terms and conditions of the grant are set forth in this cover sheet and the
attachment (collectively, the “Agreement”) and in the Company’s 2008 Omnibus Incentive Plan (the
“Plan”).

Grant Date: <<Grant Date>>

Name of Grantee: <<NAME>>

Grantee’s Employee Identification Number: <<SSN>>

Number of Performance Based Restricted Stock Units (P-RSUs) Covered by Grant: <P-RSU#>>

Purchase Price per Share of Stock: $.01

Vesting Start Date: <<Vest Start Date>>

Vesting Schedule: In the event that the Schedule set forth below would result in vesting of a
fractional number of P-RSUs, the number of P-RSUs that will vest will be rounded down to the
nearest whole share, and the last scheduled vesting tranche will be rounded up, to the extent
necessary, so that the full number of P-RSUs will have vested.

	 	 	 	 	 
	Vesting Date
	 	% of P-RSUs that Vest
	 	# of P-RSUs that Vest
	 	 	 	 	 
	<<Vest Date 1>>
	 	<<%P-RSU1>>
	 	<<#P-RSU1>>
	 	 	 	 	 
	<<Vest Date 2>>
	 	<<%P-RSU2>>
	 	<<#P-RSU2>>
	 	 	 	 	 
	<<Vest Date 3>>
	 	<<%P-RSU3>>
	 	<<#P-RSU3>>

By signing this cover sheet, you agree to all of the terms and conditions described in the attached
Agreement and in the Plan, a copy of which is also attached. You acknowledge that you have
carefully reviewed the Plan, and agree that the Plan will control in the event any provision of
this Agreement should appear to be inconsistent.

	 	 	 	 	 
	Grantee:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Signature)	 	 
	Company:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(Signature)	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

Attachment

This is not a stock certificate or a negotiable instrument.

 

 

AMERICAN COMMERCIAL LINES INC.

2008 OMNIBUS INCENTIVE PLAN

PERFORMANCE BASED RESTRICTED STOCK UNIT AGREEMENT

Note: Any time Restricted Stock Unit (or RSU) is used in this agreement it refers to a Performance

Based Restricted Stock (or P-RSU).

	 	 	 
	Restricted Stock Unit
Transferability

	 	This grant is an award of stock units in the number of units set forth on
the first page of this Agreement, subject to the vesting conditions
described in this Agreement (“Performance Based Restricted Stock Units”).
Your Restricted Stock Units may not be transferred, assigned, pledged or
hypothecated, whether by operation of law or otherwise, nor may the
Restricted Stock Units be made subject to execution, attachment or similar
process.
	 
	 	 
	Vesting

	 	Your Restricted Stock Unit grant vests as to the number of Stock Units
indicated in the vesting schedule and on the Vesting Dates shown on the
first page of this Agreement, provided you are in Service on the Vesting
Date and meet the applicable vesting requirements set forth in this
Agreement. Except as specifically provided in this Agreement or as may be
provided in other agreements between you and the Company, no additional
Stock Units will vest after your Service has terminated for any reason.
	 
	 	 
	Performance Based Vesting

	 	In addition to the vesting and forfeiture provisions as outlined in this
Agreement, in order for your Performance Based Restricted Stock Units to
vest certain performance metrics must be met or exceeded. If these
metrics are not met, the number of units that will vest will be decreased.
It is possible none of the Performance Based Restricted Stock Units will
vest if minimum performance thresholds are not met. The Compensation
Committee of the Board of Directors will determine whether the performance
metrics have been met, and what percent, if any, of the P-RSUs will vest.
	 
	 	 
	Performance Scale

	 	Except as otherwise provided in this Agreement, the number of Performance
Based Restricted Stock Units that will vest will be based on whether
performance metrics have been met. In general:

	 	•	 	If the minimum performance is reached, then 50% of the P-RSU will
vest. The minimum performance is typically set at 80% of target
performance.
	 
	 	•	 	If the target performance is reached, then 75% of the P-RSU will
vest.
	 
	 	•	 	If the maximum performance is reached, then

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	 	 	 	100% of the P-RSU will
vest. The maximum performance is typically set at 120% of target
performance.

	 	 	 
	 

	 	Actual performance between the performance thresholds will be pro-rated.
Actual performance below the minimum performance threshold will result in
no P-RSU vesting. Actual performance above the maximum threshold will
result in 100% of P-RSU vesting.
	 
	 	 
	Share Delivery Pursuant to
Vested Units

	 	Shares underlying the vested Restricted
Stock Units will be delivered to you by the Company as soon as practicable
following the applicable anniversary of the Vesting Date, but in no event
beyond 21/2 months after the end of the calendar year in which the shares
would have been otherwise delivered. The purchase price for the vested
Shares of Stock is deemed paid by your prior services to the Company.
	 
	 	 
	Forfeiture of Unvested Units

	 	Except as otherwise provided in this Agreement, in the event that your
Service terminates for any reason, you will forfeit to the Company all of
the Restricted Stock Units that have not yet vested or with respect to
which all applicable restrictions and conditions have not lapsed.
	 
	 	 
	Termination For Cause

	 	If your Service is terminated for Cause, then you shall immediately
forfeit all your rights to your Restricted Stock Units.
	 
	 	 
	Death

	 	If your Service terminates because of your death, your Restricted Stock
Units will automatically be fully vested.
	 
	 	 
	Disability

	 	If your Service terminates because of your Disability, your Restricted
Stock Units will automatically be fully vested.
	 
	 	 
	Termination without Cause or
for Good Reason following a
Corporate Transaction

	 	If your Service is terminated by the Company without Cause or by you for
Good Reason, in either case within one year following a Corporate
Transaction, then your restricted stock units will automatically be fully
vested. For purposes of this Agreement, “Good Reason” shall have the
meaning set forth in the employment agreement, if any, between you and the
Company or, if no such employment agreement exists, such term shall mean
your resignation from employment with the Company following the occurrence
of either or both of the events set forth in clauses (A) and (B) below
without your prior written consent, provided that, in connection with
either or both events, (1) you deliver written notice to the Company of
your intention to resign from employment due to either or both of such
events within ninety (90) days of the event, which notice specifies in
reasonable detail the circumstances claimed to provide the basis for such
resignation, and (2) such event or events are not cured by the Company
within thirty (30) days following delivery of such written notice:

- 3 -

 

	 	 	 
	 

	 	               (A) a material reduction in your annual rate of base salary; or
	 
	 	 
	 

	 	               (B) any removal by the Company of you from your position or the assignment
to you of duties and responsibilities materially inconsistent and adverse
with your position, except in connection with termination of your
employment for Cause or Disability.
	 
	 	 
	Leaves of Absence

	 	For purposes of this grant, your Service does not terminate when you go on
a bona fide employee leave of absence that was approved by the Company in
writing, if the terms of the leave provide for continued Service
crediting, or when continued Service crediting is required by applicable
law. However, your Service will be treated as terminating 90 days after
you went on employee leave, unless your right to return to active work is
guaranteed by law or by a contract. Your Service terminates in any event
when the approved leave ends unless you immediately return to active
employee work.
	 
	 	 
	 

	 	The Company determines, in its sole discretion, which leaves count for
this purpose, and when your Service terminates for all purposes under the
Plan.
	 
	 	 
	Withholding Taxes

	 	You agree, as a condition of this grant, that you will make acceptable
arrangements to pay any withholding or other taxes that may be due as a
result of vesting in Restricted Stock Units or your acquisition of Stock
under this grant. 
	 
	 	 
	 
	 	Payment may be made in one (or a combination) of the following forms:
	 
	 	 
	 

	 	 •     Cash, your personal check, a cashier’s check, a money order or
another cash equivalent acceptable to the Company.

	 
	 	 
	 

	 	 •     Shares of Stock withheld by the Company from the shares of Stock
otherwise to be received, with such withheld shares having an aggregate
Fair Market Value exercise equal to the withholding obligations.

	 
	 	 
	 

	 	 •     Shares of Stock which have already been owned by you and which are
surrendered to the Company. The Fair Market Value of the shares will be
applied to the withholding obligations.

	 
	 	 
	 

	 	 •     By delivery (on a form prescribed by the Company) of an
irrevocable direction to a licensed securities broker acceptable to the
Company to sell Stock and to deliver all or part of the sale proceeds to
the Company in payment of the withholding taxes.

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	Limitations, Retention Rights

	 	The terms and conditions of this Agreement and your rights in connection
with any shares of Stock received upon the vesting of your Restricted
Stock Units may be subject to the Company’s Executive Officer Stock
Ownership Guidelines.
	 
	 	 
	 

	 	Neither your Restricted Stock Units
nor this Agreement gives you the right
to be retained by the Company (or any Parent, Subsidiaries or Affiliates)
in any capacity. The Company (and any Parent, Subsidiaries or Affiliates)
reserves the right to terminate your Service at any time and for any
reason.
	 
	 	 
	Shareholder Rights

	 	You do not have any of the rights of a shareholder with respect to the
Restricted Stock Units unless and until the Stock relating to the
Restricted Stock Units has been delivered to you.
	 
	 	 
	Forfeiture of Rights

	 	If you should take actions in competition with the Company, the Company
shall have the right to cause a forfeiture of your rights, including, but
not limited to, the right to cause: (i) a forfeiture of any outstanding
Restricted Stock Units, and (ii) with respect to the period commencing
twelve (12) months prior to your termination of Service with the Company
and ending twelve (12) months following such termination of Service (A) a
forfeiture of any gain recognized by you upon the sale of any shares of
Stock subject to vested Restricted Stock Units or (B) a forfeiture of any
Stock acquired by you upon the vesting of Restricted Stock Units. Unless
otherwise specified in an employment or other agreement between the
Company and you, you take actions in competition with the Company if you
directly or indirectly, own, manage, operate, join or control, or
participate in the ownership, management, operation or control of, or are
a proprietor, director, officer, stockholder, member, partner or an
employee or agent of, or a consultant to any business, firm, corporation,
partnership or other entity which competes with any business in which the
Company or any of its Affiliates is engaged during your employment or
other relationship with the Company or its Affiliates or at the time of
your termination of Service. Under the prior sentence, ownership of less
than 1% of the securities of a public company shall not be treated as an
action in competition with the Company.
	 
	 	 
	 

	 	Further, if it is ever determined by the Board, as recommended by the
Audit Committee of the Company, that your actions have constituted
wrongdoing that contributed to any material misstatement or omission from
any report or statement filed by the Company with the U.S. Securities and
Exchange Commission, gross misconduct, breach of fiduciary duty to the
Company, or fraud, then your

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	 	Restricted Stock Units shall be immediately
forfeited and thereupon your Restricted Stock Units shall be cancelled;
provided, however, that if you have vested in your Restricted Stock Units
and sold the underlying shares of Stock within two years prior to the
Board determination, you shall be required to pay to the Company an amount
equal to the aggregate value of the shares of Stock sold. In addition,
your Restricted Stock Units and gains resulting from the sale of shares of
Stock underlying vested Restricted Stock Units, shall be subject to
forfeiture in accordance with the Company’s standard policies relating to
such forfeitures and clawbacks, as such policies are in effect at the time
of grant of the Restricted Stock Units.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a stock dividend or a similar change in the
Stock, the number of shares covered by this grant shall be adjusted (and
rounded down to the nearest whole number) if required pursuant to the
Plan. Your grant shall be subject to the terms of the agreement of
merger, liquidation or reorganization in the event the Company is subject
to such corporate activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted and enforced under the laws of the
State of Delaware, other than any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of
this Agreement to the substantive law of another jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated in this Agreement by reference.
Certain capitalized terms used in this Agreement are defined in the Plan,
and have the meaning set forth in the Plan.
	 
	 	 
	 

	 	This Agreement and the Plan constitute the entire understanding between
you and the Company regarding this option. Any prior agreements,
commitments or negotiations concerning this option are superseded.
	 
	 	 
	Data Privacy

	 	In order to administer the Plan, the Company may process personal data
about you. Such data includes, but is not limited to the information
provided in this Agreement and any changes thereto, other appropriate
personal and financial data about you such as home address and business
addresses and other contact information, payroll information and any other
information that might be deemed appropriate by the Company to facilitate
the administration of the Plan.
	 
	 	 
	 

	 	By accepting these Restricted Stock Units, you give explicit consent to
the Company to process any such personal data. You also give explicit
consent to the Company to transfer any such personal data outside the
country in which you are employed, including, with respect to non-U.S.
resident

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	 	grantees, to the United States, to transferees who shall include
the Company and other persons who are designated by the Company to
administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	The Company may choose to deliver certain statutory materials relating to
the Plan in electronic form. By accepting this grant you agree that the
Company may deliver the Plan prospectus and the Company’s annual report to
you in an electronic format.

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

- 7 -Exhibit 10.16

 

MODIFICATION AGREEMENT

This MODIFICATION AGREEMENT made and entered into as of the 21 day of February 2008 by the between Tajima Industries Ltd., a corporation formed under the laws of Japan, maintaining its principal place of business at 19-22 Shirakabe 3chome, Higashi-Ku, Nagoya 461, Japan (“Tajima”), Tajima America Corp., a corporation formed under the laws of the State of New Jersey, maintaining its principal place of business at 19925 South Susana Road, Rancho Dominguez, California 90221 (“TAC”), and Hirsch International Corp., a corporation formed under the laws of the State of Delaware, maintaining its principal place of business at 50 Engineers Road, Hauppauge, New York 11788, U.S.A. (“Hirsch”). (Tajima, TAC, and Hirsch are collectively referred to as “the Parties”.)

 

RECITALS:

	
            A.
 	
            Tajima, TAC and Hirsch are parties to that certain Distributorship Agreement, having an effective date of April 1, 2004, pursuant to which Hirsch was appointed as a distributor for the sale of “PRODUCTS” within a designated “Territory”, as those terms are defined in the “Distributorship Agreement”. (Remarks: There are two Distributorship Agreements exist, one for exclusive basis for Hirsch’s original territory and one for non-exclusive basis for West Coast territory.)
 

	
            B.
 	
            The Parties desire to modify the “Term” of the Distributorship Agreement, eliminate TUI as a party, change the Minimum Sales schedule and the credit terms contained therein.
 

NOW, THEREFORE, the Parties agree as follows:

	
            1. 
 	
            Defined terms used in the Agreement shall have the same meaning when used in this Modification Agreement.
 

 

	
            2.
 	
            The “PRODUCTS” in the terms as defined in Paragraph 1.1 (a) of the Distributorship Agreement is hereby added.
 

 

SCHEDULE 1.1

PRODUCTS

	
            *Single Head Embroidery Machine
 	
            : •TEMX-C 
 	
            •TEJTII-C 
 
	
            *Multi Head Embroidery Machine 
 	
            : •TFSN
 	
             
 
	
            *Specialty Embroidery Machine 
 	
            : •TLMX
 	
            •TCMX
 

 

	
            3.
 	
            TUI is hereby eliminated as a party to the Distributorship Agreement, and all references to TUI contained therein are hereby deemed elided.
 

	
            4.
 	
            Schedule 5.4 is hereby eliminated, and the Minimum Sales to be achieved during the Term shall be as set forth in the addendum hereto.
 

 

SCHEDULE 5.4

MINIMUM SALES

[***]

 

 

	
            5.
 	
            Schedule 6.3 is hereby eliminated, and the following is substituted in its stead:
 

 

Schedule 6.3 

PAYMENT

 

[***]

 

 

 

 

	
            6.
 	
            All of the remaining terms, provisions and conditions of the Distributorship Agreement are hereby ratified and confirmed and shall remain in full force and effect, except to the extent that any of such terms, conditions and provisions are modified pursuant to the terms of this Modification Agreement.
 

	
            7.
 	
            The Chairman of the Board of Directors and/or the CEO in the terms as defined in Paragraph 12.2 (b) of the Distributorship Agreement is hereby changed.
 

 

Schedule 6.3

TERMINATION

The chairman of the Board of Directors and/or the CEO 

•Paul Gallagher

 

INTENDING TO BE BOUND THEREBY, the Parties have executed this Modification Agreement as of the date first above written.

 

	
             
 	
            Tajima Industries Ltd.
 
	
             
 	
             
 
	
             
 	
            /s/ Hitoshi Tajima
 
	
             
 	
            By: Hitoshi Tajima, President
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            Tajima America Corp.
 
	
             
 	
             
 
	
             
 	
            /s/ Kenji Tajima
 
	
             
 	
            By: Kenji Tajima, President
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
            Hirsch International Corp.
 
	
             
 	
             
 
	
             
 	
            /s/ Paul Gallagher
 
	
             
 	
            By:  Paul Gallagher, President and CEO

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