Document:

Form of Non-qualified Stock Option Agreement

 EXHIBIT 10(iii).13 
 BALDOR ELECTRIC COMPANY 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 For Non-Employee Directors 
 This Agreement is entered
into as of «DATE» (the “Agreement Date”), by and between BALDOR ELECTRIC COMPANY (the “Company”) and «OPTIONEE» (ID # «SS» ) (the “Director”). The
Plan under which this Agreement is made is the Baldor Electric Company 2006 Equity Incentive Plan and the Administrator of the Plan is the Stock Option Committee of the Board of Directors of the Company. 
 The Board of Directors of the Company, with the approval of the shareholders of the Company, has determined: (1) that the interests of the Company will be advanced
by encouraging and enabling its non-employee Directors, whose services are considered essential to the Company’s continued progress, to increase their ownership interest; (2) that the acquisition of such an interest in the Company will
better align the non-employee Directors’ compensation with creating and sustaining shareholder value; and (3) that providing this ownership opportunity will assist in attracting and retaining highly qualified individuals to serve as
Directors of the Company. 
 The Company and the Director hereby agree to all of the terms, conditions, and restrictions of the Plan and further agree as
follows: 
  

	1.	Shares Subject to Option. The Company hereby grants to the Director the option to purchase all or part of an aggregate of «UNITS » shares of common
stock of the Company at the purchase price of $ «PRICE » per share. 

  

	2.	Time, Manner of Exercise, and Form of Payment. The options shall be one hundred percent (100%) exercisable on and after «EXERVEST». Options
granted pursuant to this Agreement shall cease to be exercisable on and after «EXPIRATION», and the Director shall have no rights to these options after this date. Subject to Paragraphs 3 and 6, the Director may purchase
all or part of the shares subject to this Agreement, but in no case may the Director exercise an option for a fraction of a share. The option granted pursuant to this Agreement shall be exercisable by the giving of written notice of exercise to the
Company on a form provided by the Company and shall be accompanied by payment in full of the purchase price for the shares to be purchased. The full purchase price shall be payable in cash or check at the time of exercise. In lieu of cash or check,
the Director may make payment, in whole or in part, by tendering shares of common stock of the Company (“Shares”) valued at the fair market value on the day before the date the Company receives written notice of exercise from the Director;
provided that, the shares used to purchase shares under this Agreement must be issued to the Director in certificate form. The purchase transaction shall be affected as soon as practical following receipt by the Company of such a written notice.

  

	3.	Shareholder Status. Neither the Director nor his legal representatives shall have any rights or privileges of a shareholder of the Company with respect to any of the Shares
issuable on the exercise of this option unless and until certificates representing such shares shall have been issued and delivered to the Director or his representatives. 

  

	4.	Adjustment of Shares. If prior to exercise there shall be any change in the outstanding common shares of the Company through merger, consolidation, reorganization,
recapitalization, stock dividend, split-up, combination of shares, exchange of shares, change in corporate structure, or otherwise, proportionate adjustments to the kind and number of shares and price per share of shares subject to this option shall
be made by the Administrator. No fractional shares of stock shall be issued under this option on account of any such adjustments, and rights to shares shall be limited after such an adjustment to the lower full share. The determination by the
Administrator in each case shall be conclusive and binding on the Company and the Director and his legal representatives. 

  

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	5.	Termination of Service. If the event of termination of service on the Board by a holder of an option, each of the then outstanding options of such holder will continue to
mature and become exercisable in accordance with paragraph 2 above and the holder may exercise the matured installments at any time within five years after such termination of service but in no event after the expiration date of the tern of the
option. 

 Death – In the event of death of the holder of any option, each of then outstanding options of such
holder will immediately mature in full and become exercisable by the holder’s legal representative at any time within a period of five years after death, but in no event after the expiration date of the term of the option. However, if the
holder dies within five years following termination of service on the Board, such option shall only be exercisable for two years after the holder’s death or five years after termination of service, whichever is longer, or until the expiration
date of the term of the option. 
 The option holder shall have no further rights under this Agreement after the expiration of such exercise
period. 
  

	6.	Options Non-Assignable and Non-Transferable - Each option and all rights thereunder shall be non-assignable and non-transferable other than by will or the laws of descent and
distribution and shall be exercisable during the holder’s lifetime only by the holder or the holder’s guardian or legal representative (the “Optionee). 

  

	7.	Tax Obligations – The Optionee may direct that the Company pay on his or her behalf and any all tax obligations, sufficient to satisfy the minimum required federal,
state and local withholding taxes, if any, incurred by the Optionee due to the exercise of the Options (the “Tax Obligation”). To pay for the Tax Obligation, the Optionee may remit cash, surrender shares previously owned by the Optionee,
or the Optionee may direct the Company to withhold shares of stock issuable from the exercise. If the Optionee so directs then the Optionee shall reimburse the Company with that number of shares of the Company’s common stock that are necessary
to reimburse the Company for the amount of the Tax Obligations. The number of shares necessary will be based on the fair market value on the day immediately preceding the date of the exercise. 

  

					
	BALDOR ELECTRIC COMPANY	  		 	ATTEST:
			
	  
	  		 	  

	John A. McFarland	  		 	Ronald E. Tucker
	Chairman and CEO	  		 	President, CFO and Secretary
			
	  
	  		 	  

	Signature of Director	  		 	Printed Name of Director

  

 2Form of Stock Unit Agreement for Non-Employee Directors

 EXHIBIT 10(iii).14 
 BALDOR ELECTRIC COMPANY 
 STOCK UNIT AGREEMENT 
 For Non-Employee Directors 
 This Agreement is entered
into as of «DATE» (the “Agreement Date”), by and between BALDOR ELECTRIC COMPANY (the “Company”), and «OPTIONEE» (ID# «SS») (the “Director”). Together they
agree to the following. 
 WHEREAS, the Company established, and the shareholders of the Company approved, the Baldor Electric Company 2006 Equity Incentive
Plan (the “Plan”) pursuant to which options, stock appreciation rights, restricted stock and Stock Units covering an aggregate of 3,000,000 shares of the Stock of the Company may be granted to employees, service providers and directors of
the Company and its subsidiaries; 
 WHEREAS, the Board of Directors of the Company, and the Administrator of the Plan appointed by the Board of Directors,
has determined that the interests of the Company will be advanced by encouraging and enabling certain of its non-employee directors to own shares of the common stock of the Company; 
 NOW, THEREFORE, in consideration of services rendered as a director, Stock Units are hereby awarded subject to the terms and conditions as follows: 
 Section 1. Definitions 
 As used in this Agreement, the following terms shall have the
following meanings: 
  

	A.	“Award” means the award provided for in Section 2. 

  

	B.	“Board of Directors” means the Board of Directors of the Company. 

  

	C.	“Date of Award” means date granted by the Compensation Committee of the Company’s Board of Directors. 

  

	D.	“Stock” means the common stock of the Company. 

 Section 2. Award 
 Subject to the terms of this Agreement, the Company hereby awards to the Director
«UNITS_» Stock Units, effective as of the Date of Award. Each Stock Unit represents the obligation of the Company to transfer one share of Stock to the Director at the time provided in Section 5 of this Agreement.

 Section 3. Bookkeeping Account 
 The Company shall record the number of Stock Units granted hereunder to a bookkeeping account for the Director (the “Stock Unit Account”). The Director’s Stock Unit Account shall be debited by the number of Stock Units,
transferred to the Director in accordance with Section 5 with respect to such Stock Units. 
 Section 4. Vesting

 The Stock Units shall be fully vested immediately on «EXERVEST». 
 Section 5. Distribution of Shares 
 Shares
of Stock equal to the number of Stock Units credited to the Stock Unit Account of the Director shall become distributable as soon as administratively feasible after the Award Date 
  

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 prescribed above; and shall be transferred to the Director no later than the later of the end of the calendar year in
which the Award Date occurs or the 15th day of the third calendar month following such Award Date. 
 Section 6. Shareholder Rights 
 The Director
shall not have any of the rights of a shareholder of the Company with respect to Stock Units, such as the right to vote. 
 Section 7.
Units Non-Transferable 
 Stock Units awarded hereunder shall not be transferable by the Director. Except as may be required by the
federal income tax withholding provisions of the Code or by the tax laws of any State, the interests of the Director and his Beneficiaries under this Agreement are not subject to the claims of their creditors and may not be voluntarily or
involuntarily sold, transferred, alienated, assigned, pledged, anticipated, or encumbered. Any attempt by the Director or a Beneficiary to sell, transfer, alienate, assign, pledge, anticipate, encumber, charge or otherwise dispose of any right to
benefits payable hereunder shall be void. 
 Section 8. Tax Withholding 
 The Director may elect to have the Company withhold income tax attributable to the transfer of such Shares, with such withholding satisfied by a reduction of the number
of shares otherwise transferable under this Agreement. 
 Section 9. Source of Payment 
 Shares of Stock transferable to the Director, or his Beneficiary, under this Agreement may be either Treasury shares, authorized but unissued shares, or any combination
of such stock. The Company shall have no duties to segregate or set aside any assets to secure the Employee’s right to receive shares of Stock under this Agreement. The Director shall not have any rights with respect to transfer of shares of
Stock under this Agreement other than the unsecured right to receive shares of Stock from the Company. 
 Section 70. Amendment 
 This Agreement may be amended by mutual consent of the parties hereto by written agreement. 
 Section 81. Governing Law 
 This Agreement shall be construed and administered in accordance
with the laws of the State of Missouri. 
  

					
	BALDOR ELECTRIC COMPANY	 		 	ATTEST:
			
	  
	 		 	  

	John A. McFarland	 		 	Ronald E. Tucker
	Chairman and CEO	 		 	President, CFO and Secretary
			
	  
	 		 	  

	Director’s Signature	 		 	Director’s Printed Name

  

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