Document:

exv10w8

 

Exhibit 10.8

Performance Unit Agreement

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	NUMBER OF	 	 	 	 	 	PERFORMANCE	 
	 	GRANTEE	 	 	UNITS	 	 	GRANT	 	 	MEASUREMENT	 
	 	NAME	 	 	GRANTED	 	 	DATE	 	 	DATE	 
	 	«Full_Name»
	 	 	«Units»
	 	 	«Grant_Date»
	 	 	«Performance Date»	 
	 

I, «Full_Name», Social Security #«SSN», hereby accept the Equity-based Performance Units set
forth in this Performance Unit Agreement, reflecting the grant on «Grant_Date» of «Units» units
(“Performance Unit Agreement”) and agree to comply with the terms and conditions of the Performance
Unit Agreement and of the Plan referenced in the Performance Unit Agreement.

By signing this cover sheet, you agree to all of the terms and conditions described in the attached
Performance Unit Agreement and the Plan referenced therein.

	 	 	 	 	 
	Grantee:

	 	

	 	 
	

	 	(Signature)	 	 

	 	 	 	 	 
	Company:

	 	

	 	 
	

	 	Brian R. Gamache

Chief Executive Officer	 	 

PLEASE RETURN A COPY OF THIS SIGNED AGREEMENT TO:

WMS – Legal Department

Waukegan Office

PLEASE RETAIN THE ORIGINALLY SIGNED AGREEMENT FOR YOUR RECORDS

This document constitutes part of a prospectus covering securities

that have been registered under the Securities Act of 1933.

 

 

Performance Unit Agreement

     This Performance Unit Agreement (the “Performance Unit Agreement”) will evidence the
grant to you on the Grant Date above approved by the Compensation Committee of the Board of
Directors of WMS Industries Inc. (the “Company”) and ratified by the Board of Directors of «Units»
units (the “Units”) under the Company’s 2005 Incentive Plan (the “Plan”). These Units are issued
in accordance with and is subject to and conditioned upon all of the terms and conditions of this
Performance Unit Agreement and the Plan as amended from time to time, provided, however, that no
future amendment or termination of the Plan shall, without your consent, alter or impair any of
your rights or obligations under the Plan, all of which are incorporated by reference in this
Performance Unit Agreement as if fully set forth herein.

     1. Performance Goals. The Company has set:

	 	a.  	A performance period (the “Performance Period”) commencing on
___and ending on ___(the “Performance Measurement
Date”).
	 
	 	b.  	Performance goal(s) (the “Performance Goal(s)”) set forth on Exhibit
A attached hereto and incorporated herein based on one or more of the following
criteria: (1) revenues; (2) earnings from operations, earnings before or after
taxes, earnings before or after interest, depreciation, amortization, incentives,
service fees or extraordinary or special items; (3) net income or net income per
common share (basic or diluted); (4) return on assets, return on net assets,
return on investment, return on capital, or return on equity; (5) cash flow, free
cash flow, cash flow return on investment, or net cash provided by operations; (6)
economic value created or added; (7) operating margin or profit margin; (8) stock
price, dividends or total stockholder return; and (9) strategic business criteria,
consisting of one or more objectives based on meeting specified market penetration
or value added, product development or introduction, geographic business expansion
goals, cost targets, debt reduction, customer satisfaction, employee satisfaction,
information technology, and goals relating to acquisitions or divestitures of
subsidiaries, affiliates or joint ventures.

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	 	c.  	A performance matrix set forth on Exhibit A attached hereto and
incorporated herein specifying the payout percentage (“Payout Percentage”) based
on actual results vs. the Performance Goal(s).

     2. Form and Timing of Payment. The Units represent the right to a certain payout
(“Payout”) equal to (a) the number of Units multiplied (b) by the base unit (“Base Unit”) set forth
on Exhibit A hereto and additionally multiplied by (c) the Payout Percentage. Such consideration
shall be distributed to you as soon as practicable following the Performance Measurement Date;
provided however, that no consideration shall be distributed unless and until the Compensation
Committee determines the Payout Percentage in accordance with the matrix.

     3. Termination of Employment. The Units shall terminate immediately if, during the
Performance Period, your service or employment with the Company ceases for any reason.
Notwithstanding the foregoing, the Units will not so terminate, if, during the Performance Period,
(a) you voluntarily terminate your service or employment with the Company (i) as a result of your
permanent and total disability or (ii) with the written consent of the Company (which written consent
expressly sets forth a statement to the effect that you remain entitled to all or some portion of
the Units or (b) your service or employment is terminated by the Company for reasons other than for
cause and the Company agrees in writing not to terminate all or any portion of the Units. The
Units shall not be affected by any change in your position of service or employment so long as you
continue to be an employee or a director of, or a consultant or an advisor to, the Company. If you
should die during your service or employment with the Company within the Performance Period, on the
Performance Measurement Date, your personal representatives or the person or persons to whom the
Units shall pass by will or by the applicable laws of descent and distribution, will be entitled to
receive a pro-rata amount of the Payout based on the portion of the
Performance Period that you were in the service of or employed with
the Company.

     4. Forfeiture. The Compensation Committee may cancel, suspend, withhold or otherwise
limit or restrict the Units at any time if you (i) are not in compliance with all applicable
provisions of the Units or the Plan or (ii) engage in any activity inimical, contrary or harmful to
the interests of the Company, including, but not limited to: (A) conduct related to the your
service or employment for which either criminal or civil penalties against you may be sought, (B)
violation of any policies of the Company, including, without limitation, the Company’s insider
trading policy or anti-harassment policies or (C) participating in a hostile takeover attempt
against the Company.

     5. Change of Control. Notwithstanding any other provision herein, if a Change in
Control (as defined in the Plan) shall occur during the Performance Period, then you shall be
entitled to receive (a) if one of more of the Performance Goals has not been met at the time of the
Change in Control, at least the Payout you would have received if the Payout Percentage were equal
to 100%, (b) if all of the Performance Goals have been met or

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exceeded at the time of the Change in Control, the greater of (i) the Payout that you would
have received if the Payout determination had been made on the date of the Change in Control date or (ii)
the Payout determined on the Performance Measurement Date or
(c) a greater Payout based on the determination by
the Compensation Committee, in its sole and absolute discretion, of
the Payout Percentage on the date of the Change in
Control. Termination of your employment following a Change in Control will not terminate your
right to receive the Payout set forth in this Paragraph 5.

     6. Severability. Should a court of competent jurisdiction deem any of the provisions
in this Performance Unit Agreement to be unenforceable in any respect, it is the intention of the
parties to this Performance Unit Agreement that this Performance Unit Agreement be enforced to the
greatest extent deemed to be enforceable.

     7. Choice of Law. This Performance Unit Agreement shall be governed by and construed
and interpreted in accordance with the substantive laws of the State of Delaware, without giving
effect to any conflicts of law rule or principle that might require the application of the laws of
another jurisdiction.

     8. Securities Laws. The Company shall not be obligated to issue any shares pursuant
to this Performance Unit Agreement if, in the opinion of counsel to the Company, the shares to be
so issued are required to be registered or otherwise qualified under the Securities Act of 1933, as
amended, or under any other applicable statute, regulation or ordinance affecting the sale of
securities, unless and until such shares have been so registered or otherwise qualified.

     9. Income Taxes. It is understood that the Company may establish, from time to time,
appropriate procedures to provide for payment or withholding of such income or other taxes as may
be required by law to be paid or withheld in connection with the Units. By the execution hereof,
you hereby agree to pay to the Company or your Employer all such amounts requested by the Company
to permit the Company to take any tax deduction available to it resulting from the Units. You also
agree to comply with any procedures established, from time to time, by the Company to ensure that
the Company receives prompt notice of the occurrence of any event which may create, or affect the
timing or amount of, any obligation to pay or withhold any such taxes or which may make available
to the Company any tax deduction resulting from the occurrence of such event.

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Exhibit A

Performance Goal(s), Matrix and Base Unit

     Performance Goal(s):

     Matrix:

     Base Unit: $___or ___shares of Common Stock or ___

5<PAGE>

                                                                    EXHIBIT 10.1

      [INDUS INTERNATIONAL, INC. LOGO]

                               INDUS INTERNATIONAL

                 MANAGEMENT COUNCIL INCENTIVE COMPENSATION PLAN

                                       AND

                             FORM OF PLAN AGREEMENT

                                INCENTIVE PERIOD:
                         APRIL 1, 2004 - MARCH 31, 2005

MC Incentive Compensation Plan FY '05                                     PAGE 1

                                    2/4/2005

<PAGE>

            [INDUS INTERNATIONAL, INC. LOGO]

      1.    PLAN PURPOSE

      The Management Council Incentive Compensation Plan (the "Plan") has been
      established to provide performance incentives for Management Council
      ("MC") members of Indus International, Inc. and its subsidiaries (the
      "Company" or "Indus"). Your participation in the Plan reflects the
      importance of your position and the impact your performance can have on
      the success of Indus. The purpose of the Plan is to provide motivation to
      members of the MC to achieve the recognized Software License Fees and
      Adjusted Operating Income(1) objectives set by executive management and
      approved by the Compensation Committee of the Board of Directors. The Plan
      is also an important part of your total compensation package. The Plan
      provides you with an opportunity to earn income beyond your base pay and
      benefits - according to Company financial success.

      2.    DEFINITION OF TERMS

      AWARD - The cash payment that goes to Participants. The Award is
      calculated as a percentage of the Participant's base salary as of March
      31, 2005.

      PARTICIPANT - The MC member selected to participate in this Plan who
      executes this Plan document.

      PLAN YEAR - April 1, 2004 - March 31, 2005. The Plan Year is also referred
      to as fiscal 2005 or FY'05

      3.    AWARD MEASUREMENTS:

      MAXIMUM AWARD OPPORTUNITY - __ % OF PARTICIPANTS BASE SALARY AS OF MARCH
      31, 2005

      WEIGHTING - Your Award will be based on two weighted performance levels,
      as follows:

           Achievement of target recognized Software Licensed Fees       55%
           Achievement of target Adjusted Operating Income               45%

      (1)Adjusted Operating Income means the Company's Operating Income, less
      any Board approved restructuring expenses, and prior to any management
      bonuses.

      FY'05 FINANCIAL GOALS:

MC Incentive Compensation Plan FY '05                                     PAGE 2

                                    2/4/2005
<PAGE>

            [INDUS INTERNATIONAL, INC. LOGO]

<TABLE>
<CAPTION>
                                                     % OF COMPONENT AWARD
        COMPONENTS                        TARGET         OPPORTUNITY
        ----------                        ------         -----------
<S>                                       <C>        <C>
RECOGNIZED SOFTWARE LICENSE FEES            *                 33%
                                            *                100%

ADJUSTED OPERATING INCOME                   *                 33%
                                            *                100%
</TABLE>

      BONUS OPPORTUNITY FOR ATTAINMENT OF GOALS WITHIN THE SPECIFIED RANGES WILL
      BE PRO-RATED ON A RELATIVE BASIS BETWEEN 33% AND 100% OF THE MAXIMUM AWARD
      OPPORTUNITY.

      SEE ATTACHMENT ENTITLED "MANAGEMENT COUNCIL BONUS SUMMARY" FOR EXAMPLE
      CALCULATIONS.

      4.      PAYMENT OF AWARD

      -     Participant will be eligible to receive an Award if Indus achieves
            one or both of the Goals set forth above.

      -     Determination as to whether a Goal has been met will be based on the
            Company's audited financial statements for FY '05.

      -     Amount of any Award payout is calculated as a percentage of
            Participant's base salary at the end of the fiscal year, subject to
            the weighting schedule for the Goals set forth above.

      -     If one Goal is met, but not the other, Participant will be eligible
            to receive an Award according to the weighting schedule set forth
            above. For example, if the recognized Software License Fees Goal is
            met, but the Adjusted Operating Income Goal is not, the Participant
            will be eligible to receive up to 55% of his or her Award
            opportunity.

      -     Award will be paid, if at all, following the conclusion of FY'05 and
            completion of the Company's FY'05 audit

               => Payout anticipated on/or about May 31, 2005.

      -     Participant must be an employee of Indus when Awards are paid to be
            eligible to receive the Award.

      -     In the event of any acquisition, divestiture or recapitalization
            involving the Company the Compensation Committee of the Board of
            Directors shall have the authority and discretion to adjust the
            FY'05 Goals in a manner that is equitable to the Company and the
            Participant.

      5.      GENERAL AND ADMINISTRATIVE

----------
* This material has been omitted pursuant to a request for confidential
treatment filed with the SEC, and this material has been filed separately with
the SEC.

MC Incentive Compensation Plan FY '05                                     PAGE 3

                                    2/4/2005
<PAGE>

            [INDUS INTERNATIONAL, INC. LOGO]

      A. No Award will be paid unless the Participant has executed copy of this
      Plan document acknowledging and accepting the terms set forth herein.

      B. Nothing in this Plan document shall be construed to create or imply the
      existence of a contract of employment between the Participant and the
      Company. Participant acknowledges and understands he or she remains an
      "at-will" employee, that the Company can terminate his or her employment
      at any time with or without cause, and participation in this Plan does not
      constitute a promise of continued employment.

      C. The Company, acting through the Compensation Committee of the Board of
      Directors, shall have the authority to terminate, suspend, or amend this
      Plan at any time with written notice to the Participant. Oral changes
      shall not be valid.

      D. The Plan is established under the authority of the Compensation
      Committee of the Board of Directors and is intended for MC members, with
      some exceptions (such as MC members already on an incentive compensation
      plan). MC members are selected by the Chief Executive Officer and can be
      removed from the MC at his discretion. If the Participant is removed from
      the MC for any reason, this Plan shall terminate as to that Participant.

      E. This Plan is for the fiscal year ending March 31, 2005 only.
      Participation during fiscal year 2005 does not mean that participation is
      assured for subsequent fiscal years.

      F. The Compensation Committee of the Board of Directors shall have the
      discretion and authority to interpret this Plan. The Compensation
      Committee's interpretation of the Plan, any Awards granted under the Plan,
      and all decisions and determinations by the Compensation Committee with
      respect to the Plan are final, binding and conclusive on all parties.

      AGREEMENT

      Your signature indicates your acknowledgment and acceptance of this
      Compensation Plan.

      Participant                         Indus International, Inc.

      Name______________________          By /s/ Gregory J. Dukat

      Signature_________________          Gregory J. Dukat, President and Chief
                                          Executive Officer

      Date______________________          Date___________________

MC Incentive Compensation Plan FY '05                                     PAGE 4

                                    2/4/2005

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