Document:

Exhibit 10.1

 

CHANNELL COMMERCIAL CORPORATION

 

LONG-TERM INCENTIVE PLAN

 

1.              Preface

 

In accordance with the Channell Commercial
Corporation 2004 Incentive Bonus Plan (the “Incentive Bonus Plan”),  the Compensation Committee (the “Committee”)
of the Board of Directors of Channell Commercial Corporation, a Delaware
corporation (the “Company”) has implemented this Long-Term Incentive Plan (this
“Plan”) effective as of December 9, 2003. 
The purpose of this Plan is to provide additional compensation as an
incentive to specified executive officers of the Company to attain the market
capitalization goals set forth below and to ensure the continued availability
of their full-time or part-time services to the Company and its subsidiary and
affiliated corporations.  Certain
capitalized terms used in this Plan are defined in Exhibit A
hereto.

 

The terms of the Incentive Bonus Plan shall govern
the administration of this Plan.  In the
event any provision or provisions of this Plan conflict with a provision or
provisions of the Incentive Bonus Plan, the applicable provision or provisions
of the Incentive Bonus Plan shall control.

 

2.              Participants

 

The participant (the “Participant”) in this Plan
shall be the Chief Executive Officer of the Company.

 

3.              Awards

 

a.                                       Market
Capitalization Criteria

 

This Plan provides awards based on achieving goals
for individual fiscal years during, as well as cumulative goals for, the period
from January 1, 2004 to December 31, 2006 (the “Three Year Service Period”).  Subject to the following conditions, the
Participant shall be entitled to the following awards:

 

(a)                                  for each fiscal year during the Three Year Service
Period, if the Percentage Market Capitalization Increase for such year equals
or exceeds ten percent (10%), the Participant shall be entitled to an award
equal to three percent (3%) of the Absolute Market Capitalization Increase for
such year (each yearly award, an “Annual Award”); provided, that no
Annual Award shall exceed $500,000; and

 

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(b)                                 if the Percentage Market Capitalization
Increase for the Three Year Service Period equals or exceeds thirty percent
(30%), the Participant shall be entitled to an award equal to four percent (4%)
of the Absolute Market Capitalization Increase for such period (the “Three Year
Award”); provided, that the Three Year Award shall not exceed $1,300,000.

 

However,
and notwithstanding anything in the foregoing to the contrary, the aggregate
amount of Annual Awards and the Three Year Award payable hereunder shall not
exceed $1,300,000.

 

b.                                       High
Water Provision

 

Notwithstanding any provision of this Plan to the
contrary, the Participant shall not be entitled to receive an Annual Award for
a given fiscal year unless the Market Capitalization for such fiscal year
exceeds one hundred ten percent (110%) of the Market Capitalization for the
most recently preceding fiscal year during which an Annual Award was earned.

 

c.                                       Criteria
Shortfalls

 

If the Participant is not entitled to an Annual
Award (an “Unearned Award”) during a given fiscal year because the market
capitalization goal for such year set forth in Section 3.a of this Plan is
not met, the Participant shall be entitled to receive such Unearned Award in
any subsequent fiscal year (in addition to an Annual Award for such subsequent
fiscal year) during which the market capitalization shortfall is recovered; provided,
that the Participant has otherwise earned an Annual Award for such subsequent
fiscal year; provided further, that the aggregate award received by the
Participant for such fiscal year does not exceed the limit set forth in Section 3.a
of this Plan.

 

d.                                       Changes
in Capitalization

 

In the event of a Change in Capitalization of the
Company during an award period, the Absolute Market Capitalization Increase for
such award period shall be calculated to exclude the effect of such Change in
Capitalization.  Such calculation shall
be performed by the Committee, in its good faith reasonable discretion.  In the event that Participant disagrees with
the Committee’s calculation to exclude the effect of such Change in
Capitalization, Participant shall so inform the Committee within 30 days
following Participant’s being advised of such calculation.  Thereafter, the Committee and Participant
shall confer in an attempt to resolve their disagreement.  If they have been unable to resolve their
disagreement within 30 days following Participant’s notice of disagreement,
then the matter shall be referred to an independent third party financial
markets professional to resolve the unresolved issues.  Such professional shall be selected by mutual
agreement of the Committee and Participant. 
The determination by such professional shall be final and binding on the
parties.

 

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4.              Payment

 

Payment of an award under
this Plan shall be made on or before December 31 of the fiscal year during
which the applicable market capitalization target is met, subject to the
certification of the Committee required by Section 6.2 of the Incentive
Bonus Plan.  All awards under this Plan
will be subject to withholding for applicable employment and income taxes, and
shall be paid in cash.

 

5.              Termination of
Employment

 

An award that would otherwise be
payable to a Participant  who is not
employed by the Company on the last day of an award period will not be paid,
except that, the award will be paid on a prorated basis (proration based upon
the number of days of service relative to the full number of days in the award
period) in the event that, before the end of such award period, the Participant
dies, becomes “disabled,” retires in accordance with the Company’s policies, is
involuntarily terminated by the Company without “cause,” or voluntarily
terminates his employment with the Company for “good reason,” or if a “change
of control” of the Company occurs.  For
purposes of this paragraph, the terms “cause,” “good reason,” and “change of
control” shall be as defined in the Participant’s employment agreement with the
Company, or, if not so defined, shall be defined in writing by the Committee at
the time of the grant of the award.

 

6.              Administration

 

This Plan will be administered and interpreted by
the Committee pursuant to the authority granted to the Committee in the
Incentive Bonus Plan.

 

7.              Term

 

This Plan shall continue in place so long as the
Incentive Bonus Plan remains effective, unless earlier terminated by the
Committee in its sole discretion.

 

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EXHIBIT A

 

Defined Terms

 

“Absolute Market Capitalization
Increase” means, (1) for any fiscal year, the Market Capitalization for
such fiscal year minus the Market Capitalization for the immediately
preceding fiscal year, or, (2) for any period longer than one fiscal year,
the Market Capitalization for the last fiscal year in such period minus
the Market Capitalization for the first fiscal year in such period.

 

“Change in Capitalization”
means a material change in the equity or debt capitalization of the Company
(including, without limitation, a secondary offering of Common Stock or
material debt incurrence), as determined by the Committee in its sole
discretion, which determination shall be final and binding.

 

“Common Stock” means the
Company’s common stock, par value $0.01 per share.

 

 “Market Capitalization” means, generally, for
any fiscal year, the average daily closing sales price of one share of Common
Stock for the trading days in August and September of such year, as
reported on the NASDAQ National Market, multiplied by the average number
of shares of Common Stock outstanding at the close of trading on such days.  However, the beginning “Market Capitalization”
for purpose of determining whether the 2004 Annual Award and/or the Three Year
Award have been earned will be based upon the closing sales price of one share
of Common Stock on December 9, 2003 (the date of the Participant’s
Employment Agreement pursuant to which the LTIP was committed), as reported on
the NASDAQ National Market, multiplied by the number of shares of Common
Stock outstanding at the close of trading on that date.

 

“Percentage Market
Capitalization Increase” means, (1) for any fiscal year, the Absolute
Market Capitalization Increase for such fiscal year divided by the
Market Capitalization for the immediately preceding fiscal year, or, (2) for
any period longer than one fiscal year, the Absolute Market Capitalization
Increase for such period divided by the Market Capitalization for the
first fiscal year in such period.

 

4Exhibit 10.1

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT
(this “Agreement”) is entered into as of September 6,
2005, among LANDMARK BANCORP, INC., a Delaware
corporation (“Landmark”), FIRST
MANHATTAN BANCORPORATION, INC., a Kansas corporation (“First Manhattan”),
and First Manhattan shareholders who collectively own not less than seventy-five
percent (75%) of First Manhattan’s outstanding voting stock, par value $10.00
per share (“Voting Stock”), with the power to
vote all such shares of Voting Stock and who are signatories to this Agreement
(collectively referred to in this Agreement as the “Principal
Shareholders,” and individually as a “Principal
Shareholder.”)

 

RECITALS

 

A.                                    As
of the date hereof, each Principal Shareholder is the owner (either
individually, or through one or more of the trusts set forth on the signature page of
this Agreement) of the number of shares of Voting Stock as is set forth above such Principal Shareholder’s
name on the signature page attached hereto and such total number of shares
represents approximately the percentage of the issued and outstanding shares of
First Manhattan’s voting stock that is also set forth thereon above such Principal Shareholder’s
name.

 

B.                                    Landmark is
contemplating the acquisition of First Manhattan by means of a merger (the “Merger”) of Manhattan
Acquisition Corporation, a Kansas corporation (“Acquisition
Corp”), with and into First Manhattan pursuant to an Agreement and
Plan of Merger dated of even date herewith (the “Merger
Agreement”).

 

C.                                    Landmark is unwilling
to expend the substantial time, effort and expense necessary to implement the
Merger, including applying for and obtaining necessary approvals of regulatory
authorities, unless all of the Principal Shareholders enter into this
Agreement.

 

D.                                    Each Principal
Shareholder believes it is in his or her best interest as well as the best
interest of First Manhattan for Landmark to consummate the Merger.

 

AGREEMENTS

 

In consideration of the foregoing premises,
which are incorporated herein by this reference, and the covenants and
agreements of the parties herein contained, and as an inducement to Landmark to
enter into the Merger Agreement and to incur the expenses associated with the
Merger, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Section 1.                                          Definitions; Construction.  All terms that are capitalized and used
herein (and are not otherwise specifically defined herein) shall be used in
this Agreement as defined in the Merger Agreement.  The parties hereby incorporate by this reference
the principles of construction set forth in Section 1.2 of the Merger
Agreement.

 

 

Section 2.                                          Representations and Warranties.  Each Principal Shareholder represents and
warrants that as of the date hereof, he:

 

(a)                                  owns
(either individually, or through one or more of the trusts set forth on the
signature page of this Agreement) the number of shares of Voting Stock as
is set forth above such Principal Shareholder’s name on the signature page attached
hereto, all of which shares are free and clear of all liens, pledges, security
interests, claims, encumbrances, options, voting agreements, proxies,
agreements to sell and commitments of every kind (collectively, “Encumbrances”);

 

(b)                                  has
the sole, or joint with any other Principal Shareholder (or any trustee holding
shares for the benefit of such Principal Shareholder and who is a signatory to
this Agreement), voting power with respect to such shares of Voting Stock, and
that he or she does not own or hold any rights to acquire any additional shares
of First Manhattan’s capital stock (by exercise of stock options or otherwise)
or any interest therein or any voting rights with respect to any additional
shares; and

 

(c)                                  has
all necessary power and authority to enter into this Agreement and further
represents and warrants that this Agreement is the legal, valid and binding
agreement of such Principal Shareholder (or any trustee holding shares for the
benefit of such Principal Shareholder), and is enforceable against such
Principal Shareholder (or trustee, as the case may be) in accordance with its
terms.

 

Section 3.                                          Voting
Agreement.  Each Principal
Shareholder (or any trustee holding shares for the benefit of such Principal
Shareholder) hereby agrees that at any meeting of First Manhattan’s
shareholders however called, and in any action by written consent of First
Manhattan’s shareholders, such Principal Shareholder or trustee shall vote all
shares of Voting Stock now or at any time hereafter owned or controlled by him:

 

(a)                                  in
favor of the Merger and the other Contemplated Transactions as described in the
Merger Agreement, and any action or agreement that would reasonably be expected
to facilitate the Contemplated Transactions;

 

(b)                                  against
any acquisition of any capital stock of First Manhattan or the Bank through
purchase, merger, consolidation or otherwise, or the acquisition by any method
of a substantial portion of the assets of First Manhattan or the Bank, in any
such case by any party other than Landmark or its Subsidiaries (an “Acquisition Transaction”);

 

(c)                                  against
any action or agreement that would reasonably be expected to result in a
material breach of any covenant, representation or warranty or any other
obligation of First Manhattan under the Merger Agreement; and

 

(d)                                  against
any action or agreement that would reasonably be expected to impede or
interfere with the Contemplated Transactions, including any:  (i) change in the board of directors of
First Manhattan or the Bank; (ii) change in the present capitalization of
First Manhattan or the Bank; or (iii) other material change in the
corporate structure or business of First Manhattan or the Bank, in each such
case except as otherwise agreed to in writing by Landmark.

 

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(e)                                  For
avoidance of doubt, it is understood that nothing in this Section shall
obligate any Principal Shareholder (or any trustee holding shares for the
benefit of such Principal Shareholder) to vote or execute a written consent
with regard to any matter other than matters required to be submitted to the
shareholders of First Manhattan for a vote pursuant to the requirements of the
Merger Agreement or applicable Kansas law.

 

Section 4.                                          Additional
Covenants.  Except as required by
law, each Principal Shareholder (or any trustee holding shares for the benefit
of such Principal Shareholder) agrees that he or she will:

 

(a)                                  not,
prior to the Effective Time sell, assign, transfer or otherwise dispose of,
create an Encumbrance with respect to, or permit to be sold, assigned,
transferred or otherwise disposed of, any Voting Stock owned of record or
beneficially by such Principal Shareholder, whether such shares of Voting Stock
are owned of record or beneficially by such Principal Shareholder on the date
of this Agreement or are subsequently acquired by any method, except:  (i) for transfers by will or by
operation of law (in which case this Agreement shall bind the transferee); (ii) with
the prior written consent of Landmark (which consent shall not be unreasonably
withheld), for any sales, assignments, transfers or other dispositions
necessitated by hardship; or (iii) as Landmark may otherwise agree in
writing;

 

(b)                                  not,
and will not permit any of his or her Affiliates, directly or indirectly
(including through its Representatives), to initiate, solicit or encourage any
discussions, inquiries or proposals with any third party relating to an
Acquisition Transaction, or provide any such person with information or
assistance or negotiate with any such person with respect to an Acquisition
Transaction or agree to or otherwise assist in the effectuation of any
Acquisition Transaction;

 

(c)                                  not
vote or execute any written consent to rescind or amend in any manner any prior
vote or written consent to approve or adopt the Merger Agreement or any of the
other Contemplated Transactions;

 

(d)                                  at
Landmark’s request, use his or her reasonable efforts to cause any necessary
meeting of First Manhattan’s shareholders to be duly called and held, or any
necessary consent of shareholders to be obtained, for the purpose of approving
or adopting the Merger Agreement and the other Contemplated Transactions;

 

(e)                                  use
reasonable efforts to cause any of his or her Affiliates to cooperate fully
with Landmark in connection with the Merger Agreement and the Contemplated Transactions;
and

 

(f)                                    execute
and deliver such additional instruments and documents and take such further
action as may be reasonably necessary to effectuate and comply with his or her
respective obligations under this Agreement.

 

Section 5.                                          Termination.  Notwithstanding any other provision of this
Agreement, this Agreement shall automatically terminate on the earlier of:  (i) the date of termination of the
Merger Agreement as set forth in Article 11 thereof,
as such termination provisions may be 

 

3

 

amended by First Manhattan, Landmark and Acquisition
Corp from time to time; or (ii) the Effective Time.

 

Section 6.                                          Remedies.  Each signatory to this Agreement
understands and acknowledges that if he or she should breach any of his or her
covenants contained in this Agreement, the damage to Landmark would be
indeterminable in view of the inability to measure the ultimate value and
benefit to Landmark resulting from its contemplated future ownership and
control of First Manhattan, and that Landmark therefore would not have an
adequate remedy at law to compensate Landmark for any such breach.  Each signatory to this Agreement agrees that
in addition to any other remedy available to Landmark at law or in equity,
Landmark shall be entitled to specific performance of this Agreement by such
signatory upon application to any court having jurisdiction over the
parties.  Accordingly, each signatory to
this Agreement:  (a) irrevocably
waives, to the extent permitted by law, any defense that he or she might have
based on the adequacy of a remedy at law that might be asserted as a bar to
specific performance, injunctive relief or other equitable relief; and (b) agrees
to the granting of injunctive relief without the posting of any bond and
further agrees that if any bond shall be required, such bond shall be in a
nominal amount.

 

Section 7.                                          Amendment
and Modification.  This Agreement
may be amended, modified or supplemented at any time by the written approval of
such amendment, modification or supplement by all of the signatories to this
Agreement.

 

Section 8.                                          Entire
Agreement.  This Agreement
evidences the entire agreement among the parties hereto with respect to the
matters provided for herein and there are no agreements, representations or
warranties with respect to the matters provided for herein other than those set
forth herein and in the Merger Agreement and written agreements related
thereto.  Except for the Merger
Agreement, this Agreement supersedes any agreements among any of First
Manhattan, its shareholders, Landmark or Acquisition Corp concerning the
acquisition, disposition or control of any Voting Stock.

 

Section 9.                                          Absence
of Control.  Subject to any
specific provisions of this Agreement, it is the intent of the parties to this
Agreement that neither Landmark nor Acquisition Corp by reason of this
Agreement shall be deemed (until consummation of the Contemplated Transactions)
to control, directly or indirectly, any other party and shall not exercise, or
be deemed to exercise, directly or indirectly, a controlling influence over the
management or policies of any such other party. 
Pursuant to Section 2.12 in the Merger Agreement, nothing contained
herein shall be deemed to grant Landmark an ownership interest in any shares of
Voting Stock.

 

Section 10.                                   Informed
Action.  Each signatory to this
Agreement acknowledges that he or she has had an opportunity to be advised by
counsel of his or her choosing with regard to this Agreement and the
transactions and consequences contemplated hereby.  Each signatory to this Agreement further
acknowledges that he or she has received a copy of the Merger Agreement and is
familiar with its terms.

 

Section 11.                                   Severability.  The parties agree that if any provision of
this Agreement shall under any circumstances be deemed invalid or inoperative,
this Agreement shall be 

 

4

 

construed with the invalid or inoperative provisions
deleted and the rights and obligations of the parties shall be construed and
enforced accordingly.

 

Section 12.                                   Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one and the same instrument.

 

Section 13.                                   Governing
Law.  All questions concerning
the construction, validity and interpretation of this Agreement and the
performance of the obligations imposed by this Agreement shall be governed by
the internal laws of the State of Kansas applicable to agreements made and
wholly to be performed in such state without regard to conflicts of laws.

 

Section 14.                                   Jurisdiction
and Service of Process.  Any
action or proceeding seeking to enforce, challenge or avoid any provision of,
or based on any right arising out of, this Agreement shall be brought only in
the courts of the State of Kansas, County of Riley or, if it has or can acquire
jurisdiction, in the United States District Court serving the County of Riley,
and each of the parties consents to the exclusive jurisdiction of such courts
(and of the appropriate appellate courts) in any such action or proceeding and
waives any objection to jurisdiction or venue laid therein.  Process in any action or proceeding referred
to in the preceding sentence may be served on any party anywhere in the world.

 

Section 15.                                   Successors;
Assignment.  This Agreement shall
be binding upon and inure to the benefit of First Manhattan and Landmark, and
their successors and permitted assigns, and each other signatory to this
Agreement and their respective successors and permitted assigns, spouses,
executors, personal representatives, administrators, heirs, legatees, guardians
and other legal representatives.  This
Agreement shall survive the death or incapacity of any signatory to this
Agreement.  This Agreement may be
assigned only by Landmark, and then only to a Subsidiary of Landmark.

 

Section 16.                                   Directors.  The parties hereto acknowledge that each
Principal Shareholder is entering into this agreement solely in his or her
capacity as a First Manhattan Shareholder and, notwithstanding anything to the
contrary in this Agreement, nothing in this Agreement is intended or shall be
construed to require any Principal Shareholder, in his or her capacity as a
director of First Manhattan, to act or fail to act in accordance with his or
her fiduciary duties in such director capacity. 
Furthermore, no Principal Shareholder makes any agreement or
understanding herein in his or her capacity as a director of First Manhattan.  For the avoidance of doubt, nothing in this Section shall
in any way limit, modify or abrogate any of the obligations of the Principal
Shareholders hereunder to vote the shares owned by him or her in accordance
with the terms of the Agreement and not to transfer any shares except as
permitted by this Agreement.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement individually, or have caused this
Agreement to be executed by their respective officers, partners, trustees or agents, on the day and year first written
above.

 

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