Document:

exv10w1

Exhibit 10.1

STOCK REPURCHASE AGREEMENT

     This Stock Repurchase Agreement (the “Agreement”) is entered into as of this 9th day of
February, 2011, by and between Environmental Tectonics Corporation, a Pennsylvania corporation,
with its principal place of business at 125 James Way, Southampton, Pennsylvania 18966 (the
“Company”), and H.F. Lenfest, an individual residing in the Commonwealth of Pennsylvania, with
offices at 200 Barr Harbor Drive, Suite 450, Conshohocken, Pennsylvania 19428 (“Lenfest”).

BACKGROUND

     Lenfest owns Series E Preferred Stock of the Company, $0.05 par value per share, with a stated
value of one thousand dollars ($1,000.00) per share, and by this Agreement the Company is
repurchasing and retiring five hundred (500) shares of Series E Preferred Stock upon the terms and
subject to the conditions set forth in this Agreement.

AGREEMENT

     NOW, THEREFORE, Lenfest and the Company agree as follows:

     1. Repurchase and Retirement of 500 Shares of Series E Preferred Stock. On the terms
and subject to the conditions set forth in this Agreement, the Company agrees to purchase from
Lenfest and Lenfest agrees to sell, transfer, convey and deliver to the Company five hundred (500)
shares of Series E Preferred Stock of the Company (the “Shares”) at the stated price of one
thousand dollars ($1,000.00) per share.

     2. Payment for the Shares. The total purchase price for the Shares shall be five
hundred thousand dollars ($500,000) (the “Purchase Price”). Upon receipt of the Purchase Price,
Lenfest irrevocably appoints any officer of the Company as his attorney to retire the Shares on the
books of the Company, and to reissue any certificates necessary to evidence his ownership of the
Series E Preferred Stock of the Company.

     3. Lenfest represents and warrants that he is the owner of record of all right, title and
interest, free and clear of all liens, in and to the Shares.

     4. Lenfest represents and warrants that he has the power and authority to execute and deliver
this Agreement and to consummate the transaction contemplated hereby.

     5. The Company represents and warrants that the Company is a corporation, duly organized,
validly existing, and in good standing under the laws of the Commonwealth of Pennsylvania.

     6. The Company represents and warrants that it has received approval from the Board of
Directors of the Company to consummate the transaction contemplated hereby, and that the person
signing this Agreement has the power and authority to execute and deliver this Agreement.

 

 

     7. The Company represents and warrants that this Agreement and all other instruments or
documents executed by the Company in connection herewith have been duly executed by the Company,
and constitute a legal, valid and binding obligation of the Company, enforceable in accordance with
their respective terms.

     8. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and assigns.

     9. Entire Agreement, Amendment. This Agreement constitutes the entire agreement
between the Company and Lenfest with respect to the transaction contemplated hereby, supersedes all
prior or contemporaneous negotiations, communications, discussions and correspondence concerning
the subject matter hereof, and may be amended or modified only with the written consent of the
Company and Lenfest.

     10. Severability. If any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity without invalidating the remainder of such provision or any remaining
provisions of this Agreement.

     11. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania.

     12. Counterparts. This Agreement may be executed in separate counterparts, either of
which, when so executed, shall be deemed to be an original and both of which, when taken together,
shall constitute but one and the same agreement.

     WITH THE INTENT TO BE LEGALLY BOUND HEREBY, the above terms and conditions are hereby agreed
to and accepted as of the day and year first written above.

	 	 	 	 	 
	 	ENVIRONMENTAL TECTONICS CORPORATION

 	 
	 	     /s/ Duane D. Deaner
 	 
	 	By:         Duane D. Deaner 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	H. F. LENFEST

 	 
	 	     /s/ H. F. Lenfest
 	 
	 	By: H. F. Lenfestexv10w10

EXHIBIT 10.10

Amendment No. 1 to

USG Corporation

Non-Employee Director

Compensation Program

(As Amended and Restated February 13, 2008)

	1.	 	Section 1.b of the USG Corporation Non-Employee Director Compensation Program (As
Amended and Restated February 13, 2008) (the “Program”) is amended effective January 1,
2011 to read in its entirety as follows:

	 	b.	 	$80,000 in the form of shares of USG common stock on December 31 of each year
commencing December 31, 2011.

	2.	 	Section 6 of the Program is amended to read in its entirety as follows:

	 	6.	 	For purposes of 1.b., 4 and 5 above, shares of
USG common stock will be valued at their Fair Market Value, as
defined in the Deferral Program, on the date on which the shares are to be delivered, assuming no deferral election is
made with respect to those shares.

November 12, 2010exv10w17

EXHIBIT 10.17

Year 2011

Annual

Management Incentive

Program

(Executive Officers Only)

USG Corporation

 

 

 

PURPOSE

To enhance USG Corporation’s ability to attract, motivate, reward and retain key employees of
the Corporation and its operating subsidiaries and to align management’s interests with those of
the Corporation’s stockholders by providing incentive award opportunities to managers who make a
measurable contribution to the Corporation’s business objectives.

INTRODUCTION

This Annual Management Incentive Program (the “Program”) is in effect from January 1, 2011
through December 31, 2011.

ELIGIBILITY

Individuals eligible for participation in this Program are the Corporation’s executive
officers. This Program is executive officers only.

GOALS

For the 2011 Annual Management Incentive Program, Consolidated Net Earnings and consolidated,
subsidiary and profit center Focus Targets will be determined by the USG Board of Directors after
review by the Compensation and Organization Committee of the USG Board of Directors (the
“Committee”) . The Committee will consider recommendations submitted from management of USG
Corporation.

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AWARD VALUES

For this Program, position target incentive values are based on level of accountability and
are expressed as a percent of approved annualized salary. Resulting award opportunities represent
a fully competitive incentive opportunity for 100% (target) achievement of goals:

	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	 	 	 	 	Position Title or
	 	 	Position Target	 
	 	 	 	 	 	Salary Reference Point
	 	 	Incentive	 
	 	 	 	 	 	 
	 	 	•	 	 	Chairman of the Board of Directors, USG Corporation
	 	 	 	125	%	 
	 	 	 	 	 	 
	 	 	•	 	 	President & Chief Executive Officer, USG Corporation
	 	 	 	90	%	 
	 	 	 	 	 	 
	 	 	•	 	 	Executive Vice President & Chief Financial Officer, USG Corporation
	 	 	 	70	%	 
	 	 	•	 	 	Executive Vice President & General Counsel, USG Corporation
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	•	 	 	Executive Vice President, Finance and Strategy, USG Corporation
	 	 	 	60	%	 
	 	 	•	 	 	Executive Vice President, Operations, USG Building Systems
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President; President & CEO, L & W Supply Corp
	 	 	 	50	%	 
	 	 	•	 	 	Senior Vice President, Human Resources, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President Business Development and Operational Services, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President; President, USG International
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President and Chief Technology Officer, USG Corporation
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	•	 	 	Vice President and Corporate Secretary & Associate General Counsel, USG Corporation
	 	 	 	45	%	 
	 	 	•	 	 	Vice President & Treasurer, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President and Controller, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President and Associate General Counsel, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President, Employee Benefits, Safety and Corporate Services, USG Corporation
	 	 	 	 	 	 
	 	 	 	 	 	 

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	 	 	AWARDS

	 	 	Incentive awards for all participants in this Program will be reviewed and approved by the
Committee. For all participants, the annual incentive award par opportunity is the annualized
salary approved by March 31, 2011 that is in effect on April 1, 2011 multiplied by the applicable
position target incentive value percent.
	 
	 	 	Incentive awards for 2011 will be based on a combination of the following elements:

	I.	 	CONSOLIDATED NET EARNINGS           
             
     50% OF INCENTIVE

	 	 	Consolidated Net Earnings will be as reported on the Corporation’s year-end financial
statements with adjustments for significant non-operational charges. Such adjustments will be
defined by March 31, 2011 and have in the past been for Fresh Start Accounting, asbestos,
restructuring charges, bankruptcy expenses and the cumulative impact of new accounting
pronouncements. For all participants, this portion of the award represents 50% of the incentive
par. This portion of the award will be paid from a pool funded by Consolidated Net Earnings
results according to the following schedule:

	 	 	 

	$0 to $75 Million Net Earnings

	 	2.96% of this tier will fund the pool
	 
	 	 
	$75+ to $150 Million Net Earnings

	 	2.47% of this tier will fund the pool
	 
	 	 
	$150+ to $400 Million Net Earnings

	 	1.97% of this tier will fund the pool
	 
	 	 
	$400+ to $575 Million

	 	1.22% of this tier will fund the pool

	 	 	Should consolidated net earnings be negative this pool will not be funded and payout for this
element will be zero. This is the same pool from which awards based on Consolidated Net Earnings
will be paid under the USG Corporation 2011 Annual Management Incentive Program for employees,
other than executive officers, occupying positions in Broadband 11 or higher (the “Other Program”).
Each tier of earnings is calculated separately and added together to determine the total pool.
This amount is then divided by the sum of the Net Earnings pars for all participants in this
Program and the Other Program. The factor derived from this method is then applied to each
participant’s Net Earnings pars to determine the individual award for this segment. For each
executive officer, (i) their individual Net Earnings par shall be determined by March 31, 2011, and
(ii) their individual factor shall be determined by taking into account the Net Earnings par of all
participants eligible to participate in the Program and the Other Program as of March 31, 2011 and
based on the sum of all such participants’ Net Earnings par as determined by March 31, 2011.
Notwithstanding the prior sentence nor any other provision in this Program, each executive
officer’s factor may be decreased, but not increased, due to changes in the total Program and Other
Program par after March 31, including, but not limited to, changes triggered by the addition or
removal of a participant from the Program or the Other Program or changes in any participant’s Net
Earnings par.

	II.	 	FOCUS TARGETS:                                                         50% OF INCENTIVE

	 	 	Focus Targets will be measurable, verifiable and derived from the formal strategic planning
process. For 2011, Focus Targets are expected to include Building Systems, L&W and International
Gross Profit, Adjusted EBITDA, Working Capital, Wallboard Cost and Spread or other operational
priorities. The Focus Targets will be determined by March 31, 2011. The award adjustment factor
for this segment will range from 0.5 (after achieving a minimum threshold performance level) to 2.0
for maximum attainment.
	 
	 	 	The weighting on any individual Focus Target generally will be in 5% increments and not be less
than 10%.The weighting of all assigned Focus Targets will equal 50% of the individual’s total par.

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PAYOUT CRITERIA

No awards will be paid under this Program unless the Corporation’s consolidated EBITDA for
2011 is at least equal to the amount of awards under this Program, the Officer Program, and all
other Corporate and Subsidiary Incentive Programs.

EBITDA is defined as net earnings before (1) interest, taxes, depreciation and amortization, (2)
the annual Long-Term Incentive Plan non-cash charge, (3) other non-cash charges, such as asset
impairments, and (4) restructuring charges.

Total payments to a participant under this Program must be two times or less of the participant’s
par value amount. No payments will be made beyond this two times maximum payment level.

No awards under this Program will be paid until Corporation achieves positive annual adjusted
operating profit. Positive annual adjusted operating profit is defined as calendar year gross
profit less overhead expenses and before other special items that are included within operating
profit/loss as reflected on the consolidated statement of operations. Special items include
litigation settlement income/expense, restructuring and long-lived asset impairment charges,
goodwill and other intangible asset impairment charges, unusual or non-recurring items, and changes in
accounting principles. If achieved in 2011 200% of award will be paid. If Corporation fails to
achieve positive annual adjusted operating profit in 2011 but achieves it in 2012 125% of award
will be paid. If Corporation fails to achieve positive annual adjusted operating profit in 2011 and
2012 but achieves it in 2013 100% of award will be paid. If Corporation fails to achieve positive
annual adjusted operating profit in 2011, 2012, and 2013 any award under this Program will not be
earned and will not be paid.

WEIGHTINGS OF PROGRAM ELEMENTS

All Corporate Officer participants in this Program, including the most senior executives, will
have the same overall weightings of 50% on Consolidated Net Earnings and 50% on Operating Focus
Targets.

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GENERAL PROVISIONS

	1.	 	If the Board, or an appropriate committee thereof, has determined that any fraud or intentional misconduct by an executive officer was a significant contributing factor to
the Corporation having to restate all or a portion of its financial statement(s), the Board
or committee shall take, in its discretion, such action as it deems necessary to remedy the
misconduct and prevent its recurrence. In determining what remedies to pursue, the Board or
committee will take into account all relevant factors, including whether the restatement was
the result of fraud or intentional misconduct. The Board may, to the extent permitted by
applicable law, require reimbursement of any award under this Program paid to the executive
officer after January 1, 2011, if and to the extent that a) the amount of the award was
calculated based upon the achievement of certain financial results that were subsequently
reduced due to a restatement, b) the executive officer engaged in any fraud or intentional
misconduct that caused or contributed to the need for the restatement, and c) the amount of
the compensation that would have been awarded to the executive officer under this Program
had the financial results been properly reported would have been lower than the amount
actually awarded. The remedy specified herein shall not be exclusive and shall be in
addition to every other right or remedy at law or in equity that may be available to the
Corporation. If this paragraph 1 is held invalid, unenforceable or otherwise illegal, the
remainder of this Program shall be deemed to be unenforceable due to a failure of
consideration, and the executive officer’s rights to any incentive compensation that would
otherwise be awarded under this Program shall be forfeited.
	 
	 	 	In order to be entitled to an award of compensation under this Program, an executive officer
must execute a written acknowledgement that such award shall be subject to the terms and
conditions of this paragraph 1.
	 
	2.	 	The Committee reserves the right to adjust award amounts under this Program down based on its
assessment of the Corporation’s overall performance relative to market conditions, provided,
however, in no event may the Committee adjust an award under this Program upward.
	 
	3.	 	The Committee shall review and approve the awards recommended eligible participants in this
Program. The Committee shall submit to the Board of Directors, for its ratification, a report
of the awards for all eligible participants approved by the Committee in accordance with the
provisions of the Program.
	 
	4.	 	The Committee shall have full power to make the rules and regulations with respect to the
determination of achievement of goals and the distribution of awards. No awards will be made
until the Committee has certified financial achievements and applicable awards in writing.
	 
	5.	 	The judgment of the Committee in construing this Program or any provisions thereof, or in
making any decision hereunder, shall be final and conclusive and binding upon all employees of
the Corporation and its subsidiaries whether or not selected as beneficiaries hereunder, and
their heirs, executors, personal representatives and assignees.

5

 

	6.	 	Nothing herein contained shall limit or affect in any manner or degree the normal and usual
powers of management, exercised by the officers, and the Board of Directors or committees
thereof, to change the duties or the character of employment of any employee of the
Corporation or to remove the individual from the employment of the Corporation at any time,
all of which rights and powers are expressly reserved.
	 
	 	 	The awards made to employees shall become a liability of the Corporation or the appropriate
subsidiary as of December 31 of the year earned and all payments to be made hereunder will
be made as soon as practicable, but in any event before two and one half months after
December 31 of the year earned, after said awards have been approved by the Committee.

	 	ADMINISTRATIVE GUIDELINES

	1.	 	Award values will be based on annualized salary in effect on April 1, 2011 for each
qualifying participant. Any change in duties, dimensions or responsibilities of a current
position resulting in an increase or decrease in salary range reference point or market rate
will result in a pro-rata incentive award. Respective reference points, target incentive
values or goals will be applied based on the actual number of full months of service at each
position.
	 
	2.	 	No award is to be paid to any participant who is not a regular full-time employee, (or a part
time employee as approved by the Senior Vice President, Human Resources, USG Corporation) in
good standing at the end of the calendar year to which the award applies. However, if an
eligible participant with three (3) or more months of active service in the Program year
subsequently retires, becomes disabled, dies, is discharged from the employment of the Company
without cause, or is on an approved unpaid leave, the participant (or beneficiary) may be
recommended for an award which would otherwise be payable based on goal achievement, prorated
for the actual months of active service during the year.
	 
	3.	 	Employees participating in any other incentive or bonus program of the Corporation or a
Subsidiary who are transferred during the year to a position covered by this Program will be
eligible to receive a potential award prorated for actual full months of service in the two
positions with the respective incentive program and target incentive values to apply.
	 
	4.	 	In the event of transfer of an employee from an assignment which does not qualify for
participation in any incentive or bonus plan to a position covered by this Program, the
employee is eligible to participate in this Program with any potential award prorated for the
actual months of service in the position covered by this Program during the year. A minimum
of three months of service in the eligible position is required.
	 
	5.	 	Participation during the current Program year for individuals employed from outside the
Corporation is possible with any award to be prorated for actual full months of service in the
eligible position. A minimum of three full months of eligible service is required for award
consideration.
	 
	6.	 	Exceptions to established administrative guidelines can only be made by the Committee.

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