Document:

EX-10.1

 

Exhibit
10.1

Layne Christensen Company

Executive Incentive Compensation Plan

(As Amended and Restated, Effective February 1, 2008)

 

 

     SECTION I. Purpose of the Plan.

          Layne Christensen Company (hereinafter referred to as the “Company”) desires to effect a
program of making awards as soon as practicable after the end of each fiscal year to certain
executive employees of the Company who, in the judgment of the Compensation Committee of the Board
of Directors of the Company (the “Board”) have made significant contributions to the Company during
the most recent fiscal year. The purpose of this program is to provide additional incentive for
the executive employees to promote the best interests and most profitable operation of the Company.

          This program shall be known as the “Layne Christensen Company Executive Incentive Compensation
Plan” (hereinafter referred to as the “Plan”). This Plan is the successor plan to, and amends and
supersedes, the earlier versions of this plan which were amended and restated effective February 1,
1994, May 1, 1997, January 1, 2005 and February 1, 2007. The existence of the Plan shall not be in
lieu of or otherwise affect or be affected by any other compensation plan or arrangement of the
Company.

     SECTION II. Administration.

          The Plan shall be administered by the Board. The Board shall have full power, in its sole
discretion, to interpret, construe and administer the Plan and adopt rules and regulations relating
to the Plan. Decisions made by the Board in good faith and in the exercise of its powers and
duties hereunder shall be binding upon all parties concerned. No member of the Board shall be
liable to anyone for any action taken or decision made in good faith pursuant to the power or
discretion vested in such person under the Plan.

     SECTION III. Participation.

          The following officers, and such other key executive employees of the Company as shall be
determined by the Board from time-to-time, shall be eligible to participate in the Plan (and shall
hereinafter be referred to as “Participants”);

	 	 	 
	Group I
	 	Group II
	 	 	 
	President
	 	Chief Financial Officer
	 
	 	General Counsel
	 
	 	Senior Vice President—Water Resources
	 
	 	Senior Vice President—Mineral Exploration

     SECTION IV. Selection of Targets.

          As soon as practicable after the commencement of each fiscal year, the Board shall establish
one or more performance targets, which collectively shall constitute the “Target” hereunder, upon
which the incentive compensation of each Participant shall be calculated for such fiscal year. If
more than one performance target is selected for the Target, the Board shall assign relative
calculation weights to each performance target in determining the Target. Incentive compensation
awards hereunder for each Participant are to be based on that Participant’s performance during that
fiscal year as compared to the Target. The Target may vary among Participants at the sole
discretion of the Board.

     SECTION V. Determination of Amount of Award.

          Subject to the last sentence of this Section V, the amount of the incentive compensation award
for a fiscal year shall be equal to a percentage (the “Base Salary Percentage”) of a Participant’s
annual regular salary (as determined by the Board) as of the beginning of the fiscal year for which
the Target is established (the “Base Salary”). The Base Salary Percentage shall he determined as
follows:

 

 

GROUP I

          If 100% of the Target is achieved, then the Base Salary Percentage shall be 80%. If more than
100% of the Target is achieved, then for each 1% increase above the Target, the Base Salary
Percentage shall be increased by 5%; provided, however, that in no event shall the Base Salary
Percentage be increased by more than 100%. If less than 100% of the Target is achieved, then for
each 1% decrease below the Target, the Base Salary Percentage shall be decreased by 2.5%; provided,
however, that if 80% or less of Target is achieved then the Base Salary Percentage shall be 0%.

GROUP II

          If 100% of the Target is achieved, then the Base Salary Percentage shall be 60%. If more than
100% of the Target is achieved, then for each 1% increase above Target, the Base Salary Percentage
shall be increased by 5%; provided, however, that in no event shall the Base Salary Percentage be
increased by more than 100%. If less than 100% of the Target is achieved, then for each 1%
decrease below the Target, the Base Salary Percentage shall be decreased by 2.5%; provided,
however, that if 80% or less of Target is achieved then the Base Salary Percentage shall be 0%.

ILLUSTRATION

          The percentage of the Target achieved and the corresponding Base Salary Percentage are
illustrated as follows:

	 	 	 	 	 	 	 	 	 	 	 
	Percentage	 	Group I	 	Group II
	of	 	Base Salary	 	Base Salary
	Target Achieved	 	Percentage	 	Percentage
	 
	 	 	 	 	 	 	 	 	 	 
	120%

	 	or more
	 	 	160	%	 	 	120	%
	115%

	 	 	 	 	140	%	 	 	105	%
	110%

	 	 	 	 	120	%	 	 	90	%
	105%

	 	 	 	 	100	%	 	 	75	%
	100%

	 	(Target)
	 	 	80	%	 	 	60	%
	96%

	 	 	 	 	72	%	 	 	54	%
	92%

	 	 	 	 	64	%	 	 	48	%
	88%

	 	 	 	 	56	%	 	 	42	%
	84%

	 	 	 	 	48	%	 	 	36	%
	80%

	 	 	 	 	40	%	 	 	30	%
	79%

	 	or less
	 	 	0	%	 	 	0	%

          All percentages in between the above Percentage of Target Achieved shall be calculated in
accordance with the formula set forth above in Section V.

          Notwithstanding the foregoing, the amount of the incentive compensation award for a fiscal
year may be increased or decreased in the sole discretion of the Board by an amount not greater
than one third of the incentive compensation award.

     SECTION VI. Methods of Payment.

          The incentive compensation award will be paid in cash, common stock of the Company, or a
combination of both, in the sole discretion of the Board. Unless a Participant properly makes a
deferral election in accordance with Section VII, payment shall be made during the April
immediately after the close of the fiscal year for which the award is made.

     SECTION VII. Deferred Accounts.

          (a)     Deferral Account. The Company shall maintain in its records an account, called the
Deferred Account, for each Participant as to whom any payment of incentive compensation awarded
under the Plan is deferred in accordance with this Section VII. All amounts deferred pursuant to
Section VI above shall bear interest from the date of deferral until the date of payment at the
average of the 26-week U.S. Treasury Bill interest rate in effect during said period. All amounts
credited to the Deferred Account shall be paid in accordance with Section VII(c), below.

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          (b)     Timing of Deferral Election. If a Participant desires to defer the receipt of the
incentive compensation award, if any, that, absent such a deferral would otherwise be paid to the
Participant, the Participant must make such deferral election by filing a written deferral election
with the Board no later than the close of the taxable year immediately preceding the taxable year
in which the services for which such incentive compensation award would relate. Notwithstanding
the foregoing, if the compensation paid in the form of an incentive compensation award would
qualify as “performance-based compensation based on services performed over a period of at least 12
months” as referred to in Section 409A(a)(4)(B)(iii) of the Internal Revenue Code, as amended (the
“Code”), the Participant may be permitted to defer the payment of the incentive compensation award,
if any, that would otherwise be paid to the Participant at the end of the current fiscal year if
such deferral election is made no later than six months prior to the end of such current fiscal
year.

          (c)     Payment of Deferred Account. As soon as reasonably practicable following the
Participant’s separation from service, as defined below, the amount in the Deferred Account (with
interest as required by Section (a), above), shall be paid to the Participant in a lump sum.
Notwithstanding the above, in the event that the Participant is a “specified employee”, as defined
in Code Section 409A(a)(2)(B)(i), no payment may be made any earlier than the date which is six (6)
months after the date of the Participant’s separation from service (or, if earlier, the date of the
Participant’s death.) A “separation from service” shall have the same meaning as the term is
defined under Code Section 409A(a)(2)(A)(i) and interpreted pursuant to the applicable guidance
issued thereunder.

     SECTION VIII. Termination of Employment or Change in Control Group

          In the event a Participant’s employment with the Company terminates (for reasons other than
retirement, disability or death) said termination being instituted by the Participant or by the
Company for cause, prior to the close of a fiscal year, such Participant shall not be entitled to
any incentive compensation award for that fiscal year.

          In the event a Participant’s employment with the Company terminates, said termination being by
the Company without cause or on account of retirement, disability or death, prior to the close of a
fiscal year, such Participant shall be entitled to the incentive compensation award set forth in
Section V, pro-rated as of the date of termination.

          If at the beginning of a fiscal year the Participant is in one Group under the Plan, and
during the fiscal year the Participant is assigned to a different Group, the Participant’s
incentive compensation award for that fiscal year shall be calculated by prorating the award by the
number of months for which the Participant was a member of each Group.

     SECTION IX. Miscellaneous.

          There shall be deducted from each cash payment made under the Plan the amount of any tax
required by any governmental authority to be withheld by the Company with respect to such payment.
A Participant receiving common stock hereunder shall be required to pay to the Company the amount
of any taxes which the Company is required by any governmental authority to withhold with respect
to such common stock.

          Nothing in the Plan shall be construed to give any person any benefit, right or interest
except as expressly provided herein, and nothing in the Plan shall obligate the Company with
respect to the duration of employment of any employee.

          A Participant’s rights and interests under the Plan may not be assigned or transferred. In
the case of a Participant’s death, payment of the Participant’s incentive compensation award shall
be made to the Participant’s designated beneficiary or beneficiaries, or in the absence of such
designation, by will or the laws of descent and distribution.

          The Board of Directors of the Company may discontinue the Plan, in whole or in part, at any
time, or may, from time to time, amend the Plan in any respect that such Board may deem advisable;
provided, however, (i) that no such amendment shall be effective to modify or change any right or
obligation with respect to any award of incentive compensation theretofore made by the Board, (2)
that such Board may not, without approval by the holders of a majority of the issued and
outstanding shares of common stock of the Company, materially increase the benefits accruing to
Participants under the Plan or materially increase the class of Participants under the Plan and (3)
that no such discontinuation of the Plan shall result in any Deferred Account being paid to a
Participant until such time as the Participant is otherwise entitled to a payment from his or her
deferred account in accordance with Section VII.

     SECTION X. Effective Date.

          The Plan shall be effective as of February 1, 2008.

3exv10w4

 

Exhibit 10.4

EMPLOYMENT AGREEMENT AMENDMENT 1

     THIS EMPLOYMENT AGREEMENT AMENDMENT 1 (“Amendment”) is made February 8, 2008 between
HARRIS INTERACTIVE INC., a Delaware corporation (“Company”), and GREGORY T. NOVAK (“Executive”).

     This Amendment amends the Employment Agreement (“Employment Agreement”)made between Company
and Executive effective as of April 30, 2007. All terms of the Employment Agreement, except as
amended hereby, remain in full force and effect. Capitalized terms not otherwise defined herein
shall have the meanings given to them in the Agreement.

     1. Section 4.7(b)(i) of the Employment Agreement is hereby amended to read in its entirety
as follows:

          (i) material breach of Company’s obligations hereunder, including any assignment of
duties not included within the Executive’s duties described in Section 1.2 unless previously
agreed to in writing by Executive;

     2. Section 4.7(c) of the Employment Agreement is hereby amended to read in its entirety as
follows:

          (c) Executive must provide a Notice of Termination to the Company that he is intending
to terminate his employment for Good Reason within ninety (90) days after Executive has
actual knowledge of the occurrence of the latest event he believes constitutes Good Reason,
which termination notice shall specify that a Termination Date will occur thirty (30) days
after the date of such notice unless the circumstances constituting Good Reason and
identified by Executive in the Notice of Termination are remedied prior to such Termination
Date. Executive’s right to terminate Executive’s employment hereunder for Good Reason shall
not be affected by Executive’s subsequent Disability provided that the notice of intention
to terminate is given prior to the onset of such Disability. Subject to compliance by
Executive with the notice provisions of this Section 4.7(c), Executive’s continued
employment prior to terminating employment for Good Reason shall not constitute consent to,
or a waiver of rights with respect to, any act or failure to act constituting Good Reason.
In the event Executive delivers to the Company a Notice of Termination for Good Reason, upon
request of the Board Executive agrees to appear before a meeting of the Board called and
held for such purpose (after reasonable notice) and specify to the Board the particulars as
to why Executive believes adequate grounds for termination for Good Reason exist. No action
by the Board, other than the remedy of the circumstances within the thirty (30) day period
after the date of the Notice of Termination, shall be binding on Executive.

     3. Section 4.9(a) of the Employment Agreement is hereby amended to read in its entirety as
follows:

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     (a) If Executive is terminated without Cause, a Termination Date occurs on a June 30
due to non-renewal by the Company of the term of this Agreement under Section 2.1, or
Executive terminates his employment for Good Reason, in each such case during the one year
period following a Change of Control (as defined below), then the Non-Competition Period
described in Section 5.2(a) shall extend for the two years following the Termination date,
and in lieu of the payments and benefits to which Executive is entitled under Section 4.6
Executive shall receive:

          (i) the Accrued Base Obligations through the Termination Date, payable promptly after
the Termination Date,

          (ii) any unpaid Performance Bonus earned for any fiscal year ended on or before the
Termination Date payable on the date on which such Performance Bonus would be paid absent
termination,

          (iii) an amount equal to two times Executive’s target Performance Bonus as established
by the Compensation Committee of the Board of Directors for the fiscal year in which the
Termination Date occurs, payable promptly after the Termination Date,

          (iv) an amount equal to two times Executive’s Base Compensation as then in effect,
payable promptly after the Termination Date,

          (v) health and medical benefits as required by Section 3.3 of this Agreement during the
two-year period following the Termination Date; provided, however, if Executive, Executive’s
spouse or Executive’s dependents are ineligible to participate in the Company benefit
programs under Section 3.3, the Company shall arrange to reimburse Executive for coverage
reasonably comparable to that previously provided under Section 3.3, and further provided
that such benefits shall become secondary to primary coverage upon the date or dates
Executive receives coverage and benefits which are substantially similar, taken as a whole,
without waiting period or pre-existing condition limitations, under the plans and programs
of a subsequent employer, and

          (vi) reimbursement for reasonable (in the discretion of the Company) and actual
expenses incurred by Executive for six months of out-placement services.

     4. Section 4.9(d) of the Employment Agreement is hereby amended to read in its entirety as
follows:

          (d) In connection with, or within one year after, a Change of Control, if all or any
portion of the payments or other benefits paid or payable to Executive under this Agreement
and under any other plan, program or agreement of the Company or its affiliates are
determined to constitute an excess parachute payment within the meaning of Section 280G of
the Internal Revenue Code of 1986, as it may have been or may be amended on or after the
date of this Agreement (the “Code”), and results in the imposition on Executive of an excise
tax under Section 4999 of the Code, then, in addition to any other benefits to which
Executive is entitled under this Agreement, the

2

 

Company shall pay to Executive an amount equal to the sum of (i) the excise tax payable
by Executive by reason of receiving excess payments; and (ii) a gross-up amount necessary to
offset any and all applicable federal, state, and local excise, income, or other taxes
incurred by Executive by reason of the Company’s payment of the excise tax described in (i)
above.

     5. Section 4.10 of the Employment Agreement is hereby amended to read in its entirety as
follows:

     4.10 Effect of Section 409A.

     (a) Notwithstanding anything to the contrary contained herein, with respect to payments
due to Executive pursuant to Section 4.6(c)(iii)-(iv), 4.9(a)(iii)-(iv), and 4.9(d):

          (i) any portion of such payments which is subject to Section 409A of the Code,
including by reason of such payments exceeding the maximum in Treasury Regulation
1.409A-1(b)(9)(iii) based upon two times the lesser of Executive’s annualized compensation
or the limitation set forth in Section 401(a)(17) of the Code, shall not be made until the
date which is the earlier of the date of Executive’s death and the date which is six (6)
months after the date of separation from service on the Termination Date, and

          (ii) if the Termination Date occurs in 2008 and if the amount of any payments to be
made in 2008 which is subject to Section 409A of the Code exceeds the amount which is
subject to Section 409A of the Code which would have been paid in 2008 had this Agreement
not been amended by Amendment Number 1, then the amount of such excess shall not be paid
until January 2, 2009, on which date such excess amount shall be paid in a lump sum.

     (b) Notwithstanding anything to the contrary contained herein, in the event that (i)
Executive notifies the Company, or the Company notifies Executive, in either case prior to
the date on which a payment would otherwise be due under this agreement that Executive (or
the Company, as applicable) believe that (x) the operation of this Agreement with respect to
any such payment hereunder would fall within the coverage of Section 409A(a)(1) of the IRC
and (y) any payment hereunder is to be made on account of IRC Section 409A(a)(2)(A)(i) and
Executive is a “specified employee” pursuant to IRC Section 409A(a)(2)(B)(i) then (ii) if
Executive’s legal counsel and the Company’s legal counsel, in each case acting reasonably,
agree that the foregoing analysis is correct, then such payment shall not be made until the
date which is the earlier of the date of Executive’s death and the date which is six (6)
months after the date of separation from service (the Termination Date).

     IN WITNESS WHEREOF, this Amendment has been executed and delivered as of the date first above
written.

[Signature Page Follows]

3

 

	 	 	 	 	 
	HARRIS INTERACTIVE INC.

 	 	 
	By:  	/s/ George Bell
 	 	 
	 	George Bell 	 	 
	 	Chairman of the Board 	 	 
	 
	 	 	 
	  	/s/ Gregory T. Novak
 	 	 
	 	Gregory T. Novak 	 	 
	 	 	 	 
	 

4

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