Document:

Exhibit 10.1 to IntriCon Corporation Form 10-Q for quarterly period ended 3-31-2009

Exhibit 10.1

XXXXX INDICATES MATERIAL THAT WAS OMITTED AND
FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

INTRICON CORPORATION

ANNUAL INCENTIVE PLAN

FOR EXECUTIVES AND KEY EMPLOYEES

FISCAL YEAR 2009

PLAN OBJECTIVE

The objective of this incentive plan is to align the efforts of
executives and key employees with shareholder interests by rewarding
participants for the achievement of the company’s strategic objectives.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
PLAN SUMMARY

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
•

	
A target level of financial performance must be met in order for any
 incentives to be paid.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
•

	
You will be eligible to earn a percentage of your salary when the
 company satisfies a target level of financial performance (pro-forma net
 income), and strategic objectives of the company are accomplished.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
•

	
Your incentive earnings will be paid by February 28th, based on
 audited year-end financial results.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Note:

	
 

	
The remaining pages and exhibits provide further explanation
 regarding plan design, payout criteria, and administration.

	
 

	
 

	
 

	
 

	
 

	
 

ELIGIBILITY CRITERIA

Executives and key employees of the company are eligible for plan
participation, as determined by the employment contract Compensation Committee
of the Board of Directors. Plan participants are those individuals who can have
a significant impact on the strategic and financial performance of IntriCon. 

- 1 -

SIZE OF AWARD OPPORTUNITY

The budgeted
incentive potential for plan participants is expressed as a percentage of base
salary on December 31st of the plan year. (Salary does not include any
incentive payments made from the previous year.)

	
 

	
 

	
 

	
 

	
 

	
Tier Level

	
 

	
Positions

	
 

	
Budgeted Incentive 

 Opportunity

	
1

	
 

	
Chief
 Executive Officer

	
 

	
50%

	
2

	
 

	
Officers

	
 

	
40%

	
3

	
 

	
Key
 Employees With Management Responsibilities*

	
 

	
25%

	
4

	
 

	
Key
 Employees Without Management Responsibilities*

	
 

	
20%

* Refer to
Exhibit 3 for 2009 participating list of titles.

Incentive
awards for plan participants who work less than full-time will be pro-rated
accordingly. 

FUNDING THE PLAN

At the beginning of the year a pro-forma net income target will be
established at the company level to determine incentive funding. The Chief
Executive Officer and Chief Financial Officer will communicate this financial
midpoint to you. If the company exceeds its target financial level, you will be
eligible to receive a greater than midpoint level incentive award.

The plan pays out for a range of financial performance based on
year-end results against budgeted pro-forma net income. Below 80% of budgeted
net income, no incentives will be paid. At 80% of budgeted net income, the plan
pays out one-half (or 50%) of the available incentive opportunity for that tier
(please refer to the table below and Exhibit 1 for an example based on the
current year’s financial goal.) At maximum (150% of pro-forma net income), the
plan pays out one and one-half (150%) times of the available incentive
opportunity for that tier.

	
 

	
 

	
 

	
 

	
 

	
Level

	
 

	
 

	
 

	
Company 

 Financial Goal

 2009 Goal

	
Target

	
 

	
80%

	
 

	
XXXXX

	
 

	
 

	
90%

	
 

	
XXXXX

	
Midpoint

	
 

	
100%

	
 

	
XXXXX

	
 

	
 

	
125%

	
 

	
XXXXX

	
Maximum

	
 

	
150%

	
 

	
XXXXX

- 2 -

Payout Criteria: Company Strategic Objectives

The company must
achieve at least the target level of pro-forma net income (80% of target) in
order for any payout to be earned for the achievement of company strategic
objectives. Your
incentive potential is determined by actual year-end company financial results
achieved. 

You may earn all or a portion of your total incentive potential
based on the achievement of the company’s strategic objectives.

At the beginning of the year, clearly measurable strategic objectives
for the company will be communicated to you by the Chief Executive Officer or
Chief Financial Officer. Typically, there will be no more than four strategic
objectives established. The strategic objectives may be weighted by tier and/or
by position within the tier to appropriately reflect the influence a given position
may have on the outcome of a specific objective. The total of the strategic
objectives should equal 100 percent for each participant.

Progress against strategic objectives will be reviewed on a quarterly
basis. In rare instances, modifications may be required. Any substantive
revisions to the objectives (such as changing a strategic objective or its
weighting) will require the approval of the Chief Executive Officer.

At year-end, performance against assigned strategic objectives will be
reviewed to determine an overall evaluation score (percent of strategic
objectives achieved.) The overall evaluation score will determine what portion
of the award you will receive. (For example, if 90 percent of the strategic
objectives are achieved, then 90 percent of the incentive opportunity will be
payable). Final incentive earnings will be determined in January.

Incentive awards will typically be paid following year end audited
results, usually by February 28th.

	
 

	
 

	
 

	
 

	
Note:

	
Please see Exhibit 1 for a plan payout example. Exhibit 2 further
 details plan definitions, eligibility, and payout criteria.

QUALIFICATION OF AWARD PAYMENT

The Chief Executive Officer reserves the right to withhold incentive
payment in the event an individual is on probation status at fiscal year end. 

- 3 -

PLAN ADMINISTRATION

Payout Timing

Individual incentives will be paid upon final approval of the
Compensation Committee of the Board of Directors, with payout contingent upon
completion of the year-end audited financial results, usually no later than
February 28th.

Plan Amendment,
Modification, or Termination

From time to time IntriCon may make plan amendments as it believes
appropriate and/or may terminate the plan at any time, provided that no such
amendment or termination will affect the right of any participant to receive
incentive compensation in accordance with the terms of the plan for the portion
of any year up to the date of the amendment or termination. Typically, any such
modification would be made on an annual basis. 

New Hires 

New hires must begin their employment by October 1st to qualify for
plan participation. For individuals hired by October 1st of the plan
year, eligibility begins on the first date of employment. Individual incentive
awards will be prorated from the date of hire.

Promotions 

For individuals promoted into an incentive eligible position that has a
different award opportunity, the new opportunity will apply based on the actual
time served in the new position, and the prior incentive opportunity will apply
to the actual time served in the prior position. At no time will an individual
receive more than a 12-month incentive payment for the fiscal year.

Promotions – Newly
Eligible

Individuals must be promoted into an incentive eligible position by
October 1st to qualify. Individual incentive awards will be prorated
from the date of promotion.

Leaves of Absence 

A participating employee who takes a leave of absence from IntriCon for
a period of more than 12 weeks will be subject to a pro-rated incentive award
calculation. Only the length of the leave in excess of 12 weeks will be
considered in the pro-ration calculation. Leaves of absence include (but are
not limited to) Family and Medical Leave (FMLA), disability leave, medical
leave, etc.

- 4 -

Termination of
Employment

In the event an eligible participant ceases to be an employee during
any year in which he/she is participating in the plan, he/she will not be
eligible to receive any incentive compensation for such year. Individuals need
to be employed as of December 31st, of the plan year in order to
receive an award. 

Should the plan participant be covered by an employment contract, all
such provisions regarding payout of incentives upon termination of employment
shall be adhered to.

Right to Continue
Employment

Nothing contained in the plan shall be construed to confer upon any
employee the right to continue in the employment of, or the right of IntriCon
to terminate his/her employment at any time.

General Provisions

The extent to which incentive payments are eligible compensation for
benefit plan purposes is determined solely by the plan document governing the
respective benefit plan. Interpretation of the provisions of any employee
benefit plan, including the intent of any provision, rests solely with the
Compensation Committee of the Board of Directors. All payments are subject to
Federal, state, FICA, and other required withholdings

- 5 -

Exhibit 1

INTRICON CORPORATION

ANNUAL INCENTIVE PLAN

FOR EXECUTIVES AND KEY EMPLOYEES

FISCAL YEAR 2009

- Payout Example 1 -

EXAMPLE ASSUMPTIONS

	
 

	
 

	
•

	
Assumes a
 Tier 4 employee eligible for a 20% reward at midpoint (expressed as a percent
 of base compensation) and annual compensation of $80,000.

	
 

	
 

	
•

	
Assumes
 year-end company financial performance achieved at midpoint level = 20% total
 award potential with payout scale as indicated below.

	
 

	
 

	
•

	
Assumes
 company strategic objective achievement at 85 percent.

COMPANY NET INCOME GOAL AND INCENTIVE PAYOUT
AMOUNTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Company Financial Goal

 2009 Goal

	
 

	
 

	
 

	
 

	
Individual Reward Potential

 % of Base Salary

	
 

	
Target

	
 

	
80

	
%

	
 

	
10

	
%

	
 

	
 

	
 

	
90

	
%

	
 

	
15

	
%

	
 

	
Midpoint

	
 

	
100

	
%

	
 

	
20

	
%

	
 

	
 

	
 

	
125

	
%

	
 

	
25

	
%

	
 

	
Maximum

	
 

	
150

	
%

	
 

	
30

	
%

	
 

Objectives
established for Tier 4 at beginning of year:

	
 

	
 

	
 

	
 

	
 

	
Objectives

	
 

	
Weighting

	
 

	
1

	
 

	
50

	
%

	
 

	
2

	
 

	
30

	
%

	
 

	
3

	
 

	
20

	
%

	
 

	
Total

	
 

	
100

	
%

	
 

- 6 -

Exhibit
1
(Continued)

At year end:

	
 

	
 

	
Step 1:

	
Determine incentive funding based on
 financial results

	
 

	
 

	
 

	
Midpoint
 level pro-forma net income achieved = 20% opportunity funded

	
 

	
 

	
 

	
20% x
 $80,000 = $16,000

	
 

	
 

	
Step 2:

	
Determine results
 achieved for each goal

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Objective

	
 

	
Weighting

	
 

	
Percentage Earned

	
 

	
Results Achieved

	
 

	
 

	
1

	
 

	
50

	
%

	
 

	
90

	
%

	
 

	
45

	
%

	
 

	
 

	
2

	
 

	
30

	
%

	
 

	
80

	
%

	
 

	
24

	
%

	
 

	
 

	
3

	
 

	
20

	
%

	
 

	
80

	
%

	
 

	
16

	
%

	
 

	
 

	
Total

	
 

	
100

	
%

	
 

	
 

	
 

	
 

	
85

	
%

	
 

	
 

	
 

	
Step 3:

	
Calculate
 incentive award based on ratings.

	
 

	
 

	
 

	
$16,000 x
 85% results achieved = $13,600

	
 

	
 

	
Step 4:

	
Total incentive
 payout earned:

	
 

	
 

	
 

	
Total: $13,600

- 7 -

Exhibit
1

(Continued)

- Payout Example 2 -

EXAMPLE ASSUMPTIONS

	
 

	
 

	
•

	
Assumes a
 Tier 4 employee eligible for a 20% reward at midpoint (expressed as a percent
 of base compensation) and annual compensation of $80,000.

	
 

	
 

	
•

	
Assumes
 year-end company financial performance exceeded midpoint at 110% level = 25%
 total award potential with payout scale as indicated below.

	
 

	
 

	
•

	
Assumes
 company strategic objective achievement at 96 percent.

COMPANY NET INCOME GOAL AND INCENTIVE PAYOUT
AMOUNTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Company Financial Goal

 2009 Goal

	
 

	
 

	
 

	
Individual Reward Potential

 % of Base Salary

	
 

	
Target

	
 

	
80

	
%

	
 

	
10

	
%

	
 

	
 

	
 

	
90

	
%

	
 

	
15

	
%

	
 

	
Midpoint

	
 

	
100

	
%

	
 

	
20

	
%

	
 

	
 

	
 

	
125

	
%

	
 

	
25

	
%

	
 

	
Maximum

	
 

	
150

	
%

	
 

	
30

	
%

	
 

Individual objectives established at
beginning of year:

	
 

	
 

	
 

	
 

	
 

	
Objectives

	
 

	
Weighting

	
 

	
1

	
 

	
60

	
%

	
 

	
2

	
 

	
40

	
%

	
 

	
Total

	
 

	
100

	
%

	
 

- 8 -

Exhibit
1

(Continued)

	
 

	
 

	
At year end:

	
 

	
 

	
 

	
Step 1:

	
Determine incentive funding based on
 financial results

	
 

	
 

	
 

	
Midpoint
 level pro-forma net income exceeded = 25% opportunity funded

	
 

	
 

	
 

	
25% x
 $80,000 = $20,000

	
 

	
 

	
Step 2:

	
Determine results
 achieved for each goal

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Objective

	
 

	
Weighting

	
 

	
Percentage Earned

	
 

	
Results Achieved

	
 

	
 

	
1

	
 

	
60

	
%

	
 

	
100

	
%

	
 

	
60

	
%

	
 

	
 

	
2

	
 

	
40

	
%

	
 

	
90

	
%

	
 

	
36

	
%

	
 

	
 

	
Total

	
 

	
100

	
%

	
 

	
 

	
 

	
 

	
96

	
%

	
 

	
 

	
 

	
Step 3:

	
Calculate
 incentive award based on ratings.

	
 

	
 

	
 

	
$20,000 x 96%
 results achieved = $19,200

	
 

	
 

	
Step 4:

	
Total incentive
 payout earned:

	
 

	
 

	
 

	
Total:
 $19,200

- 9 -

Exhibit 2

INTRICON CORPORATION

ANNUAL INCENTIVE PLAN

FOR EXECUTIVES AND KEY EMPLOYEES

FISCAL YEAR 2009

DEFINITION OF TERMS

The following
terms as used in the plan have meaning as described below:

Designation of Participants

Any executive
or key employee who has been designated by the Chief Executive Officer as a
participant in the plan for the year or during the year. Upon determination of
eligibility, each participant will be furnished with an outline of the plan as
it applies to him/her and will be notified of the level of incentive for which
he/she is eligible.

Pro-Forma Net Income

Pro-Forma Net
Income represents consolidated net income, as defined by “GAAP” (General
Accepted Accounting Principles), after the accrual of the bonus payout. 

Eligibility Criteria

Individuals
need to be regular employees, work a minimum of half time to be eligible for
plan participation, and be in an executive or key position. Incentive awards
for employees who work less than full-time will be prorated according to
his/her annual base wage.

Financial Objective

The level of
organizational performance against pro-forma net income, as approved by the
Board of Directors. IntriCon may amend the goals to reflect material adjustment
in or changes to the company’s policies; to reflect material changes such as
mergers or acquisitions; and to reflect such other events having a material
impact on goals.

Strategic Objective

Clearly measureable strategic
objectives will be identified by executive management and the board of
directors. These strategic objectives will be communicated to the participants
at the beginning of the plan year. The achievement of these strategic
objectives will be determined by the board of directors. 

- 10 -

Exhibit
2

(Continued)

Payout 

The actual
amount to be paid to a participant based upon achievement of IntriCon’s financial results and strategic
goal achievement.

Plan Year

The fiscal
year of IntriCon (January 1 through December 31).

Salary

The
employee’s base salary as of December 31st of the plan year.

- 11 -

Exhibit 3 

INTRICON CORPORATION 

ANNUAL INCENTIVE PLAN 

FOR EXECUTIVES AND KEY EMPLOYEES

FISCAL YEAR 2009 

PARTICIPATING TITLES BY TIER*

	
Tier 1
 	
Location
 
	
 
 	
 
 
	
•   Chief Executive
Officer
 	
MN
 
	
 
 	
 
 
	
Tier 2
 	
 
 
	
 
 	
 
 
	
•   Chief Financial Officer
 	
MN
 
	
•   Vice President of Sales and Marketing 
 	
MN
 
	
•   Vice President of Operations 
 	
MN
 
	
•   Vice President of Research and Development 
 	
MN
 
	
•   Vice President of Quality and Regulatory Affairs 
 	
MN
 
	
•   General Manager 
 	
CA
 
	
 
 	
 
 
	
Tier 3
 	
 
 
	
 
 	
 
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX 
 	
XXXXX
 
	
•   XXXXX 
 	
XXXXX
 
	
 
 	
 
 
	
Tier 4
 	
 
 
	
 
 	
 
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX
 	
XXXXX
 
	
•   XXXXX
 	
XXXXX
 

* IntriCon
reserves the right to change the participation list from year to year. 

- 12 -ST. JUDE MEDICAL, INC. EXHIBIT 10.1 TO FORM 8-K DATED MAY 8, 2009

Exhibit 10.1  

 

 

 

 

ST. JUDE MEDICAL, INC.

 

MANAGEMENT INCENTIVE COMPENSATION PLAN

 

(AS ADOPTED ON DECEMBER 15, 2008)

 

 

 

TABLE OF CONTENTS

	
Section 1.
 	
Purpose
 	
1
 
	
 
 	
 
 	
 
 
	
Section 2.
 	
Definitions
 	
1
 
	
 
 	
 
 	
 
 
	
Section 3.
 	
Eligibility
 	
2
 
	
 
 	
 
 	
 
 
	
Section 4.
 	
Administration
 	
2
 
	
 
 	
 
 	
 
 
	
 
 	
(a)  Timing of Designations
 	
2
 
	
 
 	
(b)  Adjustments
 	
2
 
	
 
 	
(c)  Certifications
 	
2
 
	
 
 	
 
 	
 
 
	
Section 5.
 	
Financial Performance Goals
 	
2
 
	
 
 	
 
 	
 
 
	
Section 6.
 	
Payment of Incentive Compensation; Nonassignability
 	
3
 
	
 
 	
 
 	
 
 
	
Section 7.
 	
No Right To Continued Employment
 	
3
 
	
 
 	
 
 	
 
 
	
Section 8.
 	
Amendment and Termination
 	
3
 
	
 
 	
 
 	
 
 
	
Section 9.
 	
Shareholder Approval of Plan
 	
3
 

 

i

ST. JUDE MEDICAL, INC.

MANAGEMENT INCENTIVE COMPENSATION PLAN 

(AS ADOPTED ON DECEMBER 15, 2008)

	
Section 1.
 	
Purpose.
 

The Plan is designed to attract, retain and reward highly qualified executives who are important to the Company’s success and to provide incentives relating directly to the financial performance and long-term growth of the Company.

	
Section 2.
 	
Definitions.
 

As used in the Plan, the following terms shall have the meanings set forth below:

 (a)       “Board” shall mean the Board of Directors of St. Jude Medical, Inc.

 (b)       “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder.

(c)       “Committee” shall mean the Compensation Committee of the Board or any successor committee of the Board designated by the Board to administer the Plan.  Each member of the Committee shall be an “outside director” within the meaning of Section 162(m) of the Code.

(d)       “Company” shall mean St. Jude Medical, Inc., a Minnesota corporation, or any successor corporation and any other corporation in which St. Jude Medical, Inc. controls, directly or indirectly, 50% or more of the combined voting power of all classes of voting securities.

 (e)       “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 (f)        “Executive Officer” shall mean any officer of the Company subject to the reporting requirements of Section 16 of the Exchange Act.

(g)       “Incentive Compensation” shall mean the cash incentive awarded to a Participant pursuant to terms and conditions of the Plan.

(h)       “Participant” shall mean any Executive Officer and any other employee or class of management employees of the Company as may be designated by the Committee.

(i)        “Plan” shall mean this St. Jude Medical, Inc. Management Incentive Compensation Plan, as amended from time to time.

(j)        “Salary” shall mean the direct gross (as opposed to taxable) compensation earned by the Participant as base salary during the fiscal year, excluding any and all commissions, bonuses, incentive payments payable during the fiscal year, and other similar payments.

	
Section 3.
 	
Eligibility.
 

Each fiscal year, the Committee shall designate those employees of the Company, including Executive Officers, who are eligible to receive Incentive Compensation under this Plan for the fiscal year.

	
Section 4.
 	
Administration.
 

The awards under the Plan shall be based on the attainment of financial performance goals for the fiscal year, as determined for each Participant by the Committee. From time to time, the Committee may designate an award granted pursuant to the Plan as an award of “qualified performance-based compensation” within the meaning of Section 162(m) of the Code (a “Qualified Performance Award”).  The Committee shall administer the Plan and shall have full power and authority necessary to construe, interpret and administer the Plan to comply with the requirements of Section 162(m) of the Code. The Committee’s decisions shall be final, conclusive, and binding upon all persons.  Except with respect to Incentive Compensation payable to Executive Officers or any other employee who is a “covered employee” within the meaning of Section 162(m) of the Code, the Committee
may delegate the establishment of performance goals, and the general powers of the Committee described above with respect to the Plan, to the Chief Executive Officer of the Company.

(a)       Timing of Designations.  Not later than
90 days after the beginning of a fiscal year, the Committee shall: (i) determine
the percentage of the Participant’s Salary that may be awarded as Incentive
Compensation for the fiscal year, up to a maximum award under the Plan of the
greater of $3,000,000 or 1.5% of the Company’s consolidated after tax net
profits for the fiscal year; (ii) determine the Participants eligible to
participate in the Plan for the fiscal year; (iii) determine financial
performance goals as set forth in Section 5 herein for each Participant on which
Incentive Compensation will be paid; (iv) determine each Participant’s
Incentive Compensation for the fiscal year; and (v) determine the frequency at
which each Participant’s Incentive Compensation will be paid when
attained.

(b)       
Adjustments.  Notwithstanding any
provision of the Plan to the contrary, the Committee in its sole discretion may
adjust the amount payable pursuant to an award; provided, however, that
(1) the Committee may adjust downwards (but not upwards) the amount payable
pursuant to a Qualified Performance Award, and (2) the Committee may not waive
the achievement of the applicable performance goals established for a fiscal
year with respect to a Qualified Performance Award, except in the case of the
death or disability of the Participant or a change in control of the Company. 

(c)       Certifications.  The Committee shall certify in writing prior to commencement of payment of the Incentive Compensation that the performance goal or goals under which the Incentive Compensation is to be paid has or have been achieved. 

	
Section 5.
 	
Financial Performance Goals.
 

With respect to any Participant who is an Executive Officer or a “covered employee” within the meaning of section 162(m) of the Code, the Committee shall establish performance goals based on the price of the Company’s common stock, the Company’s earnings per share, 

 

2

market share, sales, return on equity, asset management or the expenses or profitability of the Company or any division or subsidiary, or any combination of such goals for the fiscal year, or a portion thereof. For employees other than Executive Officers, subjective, individual performance goals may also be established. Any performance goal shall be established in a manner such that a third party having knowledge of the relevant performance results could calculate the amount to be paid to the Participant. Any such goal shall be established when the outcome of the goal is substantially uncertain. The Incentive Compensation may be paid in whole or in part upon the attainment of any one of the goals. Any performance goals that relate to Qualified Performance Awards shall comply with the applicable requirements of Section 162(m) of the Code and any regulations promulgated thereunder.

With respect to any Participant other than an Executive Officer or any other employee who is a “covered employee” within the meaning of Section 162(m) of the Code, the Committee may establish performance goals based on criteria other than the financial performance of the Company specified above.

	
Section 6.
 	
Payment of Incentive Compensation; Nonassignability.
 

The Incentive Compensation shall be paid only upon certification of the attainment of the pre-established performance goals by the Committee. Such Incentive Compensation shall be paid within 90 days of the end of the fiscal year, but any Participant who is eligible to participate in the Company’s deferred compensation plan may elect to defer part or all of such Incentive Compensation under such plan. No Incentive Compensation or any other benefit under the Plan shall be assignable or transferable by the Participant during the Participant’s lifetime.

	
Section 7.
 	
No Right To Continued Employment.
 

Nothing in the Plan shall confer upon any employee any right to continue in the employ of the Company or shall interfere with or restrict in any way the right of the Company to discharge an employee at any time for any reason whatsoever, with or without cause.

	
Section 8.
 	
Amendment and Termination.
 

The Committee may amend, modify, suspend or terminate the Plan for the purpose of meeting or addressing any changes in legal requirements or for any other purpose permitted by law.  The Committee will seek shareholder approval of any amendment determined to require shareholder approval or to be advisable under the regulations of the Internal Revenue Service or other applicable law or regulation.

	
Section 9.
 	
Shareholder Approval of Plan.
 

Any Qualified Performance Award shall be null and void and have no effect whatsoever unless the Plan shall have been approved by the shareholders of the Company at the Company’s 2009 Annual Meeting of Shareholders.  No Qualified Performance Award shall be granted more than five years after such meeting of shareholders unless the shareholders have re-approved the Plan to the extent required by Section 162(m) of the Code.

 

3

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