Document:

Exhibit
10.2

 

 

AMENDMENT
NO. 1

TO

RESTRICTED
STOCK AWARD AGREEMENT

DATED
AS OF MAY 26, 2004

BETWEEN

ZENITH
NATIONAL INSURANCE CORP.

 AND

JOHN J.
TICKNER

 

 

1. 
John J. Tickner (the “Grantee”) and Zenith National Insurance Corp. (the
“Company”) are parties to a Restricted Stock Award Agreement dated as of May
26, 2004 (the “Award Agreement”), covering five thousand (5,000) shares of
Restricted Stock awarded to Grantee pursuant to the Zenith National Insurance
Corp. 2004 Restricted Stock Plan (the “Plan”). 
Capitalized terms have the meaning ascribed to them in the Plan and
Award Agreement, unless otherwise defined herein.  Where the context permits, references to the
Company or any of its Subsidiaries shall include the successors to the
foregoing.

 

2.  This Amendment No. 1 dated
February 24, 2005 is hereby made a part of, and expressly incorporated into,
the Award Agreement as an amendment thereto. 
In the event any provision of this Amendment and any provision of the
Award Agreement are inconsistent or conflicting, the inconsistent or
conflicting provision of this Amendment shall control.

 

3.  The parties agree to amend
the Award Agreement by deleting Paragraph 8 thereof in its entirety and
substituting the following therefor:

 

8.             Termination of
Employment or Service.

(a)   Upon the Grantee’s death or termination of
employment with or service to the Company due to Disability, the restrictions
set forth in Paragraph 3(a) shall lapse.

(b)   Upon termination of the Grantee’s employment
with the Company or any Subsidiary thereof for any reason (other than death or
Disability) prior to the lapsing of restrictions with respect to any portion of
the Restricted Stock granted hereunder, the Grantee shall forfeit any rights to
the shares of Restricted Stock with respect to which the restrictions have not
lapsed and shall have no further rights thereto.  For purposes of this Paragraph 8(b),
termination of the Grantee’s employment shall be disregarded if, immediately
following such termination, the Grantee continues providing services to the
Company as a consultant or independent contractor.

(c)   Upon termination of the Grantee’s services
to the Company as a consultant or independent contractor (other than death or
Disability) prior to the lapsing of restrictions with respect to any portion of
the Restricted Stock granted hereunder, the Grantee shall forfeit any rights to
the shares of Restricted Stock with respect to which the restrictions have not
lapsed and shall have no further rights thereto; provided, however, that if the
Company terminates the 

 

 

Grantee’s
services without “cause” (as defined in the applicable consulting agreement or
contract), the restrictions set forth in Paragraph 3(a) shall lapse upon such
termination.

(d)   Upon forfeiture of any shares of Restricted
Stock, to the extent the Grantee paid the purchase price of such forfeited
shares in a manner other than services rendered, the Company shall repurchase
such shares from the Grantee at a price per share equal to the lesser of (i)
the Fair Market Value of such shares at the time of forfeiture or (ii) the
price Grantee paid for such shares initially.

Except as specifically modified herein, the
parties expressly reaffirm the terms and conditions of the Award Agreement.

 

Dated: February 24, 2005

 

	
  Zenith National Insurance
  Corp.

  	
  Grantee:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
  William J. Owen

  	
   

  	
  /s/

  	
  John J. Tickner

  
	
  Name:

  	
   

  	
  William J. Owen

  	
   

  	
  John J. Tickner

  
	
   

  	
   

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
  And Chief Financial
  OfficerExhibit 10.3

 

 

AMENDMENT
NO. 1

TO

RESTRICTED
STOCK AWARD AGREEMENT

DATED
AS OF DECEMBER 2, 2004

BETWEEN

ZENITH
NATIONAL INSURANCE CORP.

 AND

JOHN J.
TICKNER

 

 

1. 
John J. Tickner (the “Grantee”) and Zenith National Insurance Corp. (the
“Company”) are parties to a Restricted Stock Award Agreement dated as of
December 2, 2004 (the “Award Agreement”), covering two thousand (2,000) shares
of Restricted Stock awarded to Grantee pursuant to the Zenith National
Insurance Corp. 2004 Restricted Stock Plan (the “Plan”).  Capitalized terms have the meaning ascribed
to them in the Plan and Award Agreement, unless otherwise defined herein.  Where the context permits, references to the
Company or any of its Subsidiaries shall include the successors to the
foregoing.

 

2.  This Amendment No. 1 dated
February 24, 2005 is hereby made a part of, and expressly incorporated into,
the Award Agreement as an amendment thereto. 
In the event any provision of this Amendment and any provision of the
Award Agreement are inconsistent or conflicting, the inconsistent or
conflicting provision of this Amendment shall control.

 

3.  The parties agree to amend
the Award Agreement by deleting Paragraph 8 thereof in its entirety and
substituting the following therefor:

 

8.             Termination of
Employment or Service.

(a)   Upon the Grantee’s death or termination of
employment with or service to the Company due to Disability, the restrictions
set forth in Paragraph 3(a) shall lapse.

(b)   Upon termination of the Grantee’s employment
with the Company or any Subsidiary thereof for any reason (other than death or
Disability) prior to the lapsing of restrictions with respect to any portion of
the Restricted Stock granted hereunder, the Grantee shall forfeit any rights to
the shares of Restricted Stock with respect to which the restrictions have not
lapsed and shall have no further rights thereto.  For purposes of this Paragraph 8(b),
termination of the Grantee’s employment shall be disregarded if, immediately
following such termination, the Grantee continues providing services to the
Company as a consultant or independent contractor.

(c)   Upon termination of the Grantee’s services
to the Company as a consultant or independent contractor (other than death or
Disability) prior to the lapsing of restrictions with respect to any portion of
the Restricted Stock granted hereunder, the Grantee shall forfeit any rights to
the shares of Restricted Stock with respect to which the restrictions have not
lapsed and shall have no further rights thereto; provided, however, that if the
Company terminates the Grantee’s services without “cause” (as defined in the
applicable consulting agreement or contract), the restrictions set forth in
Paragraph 3(a) shall lapse upon such termination.

 

 

(d)   Upon forfeiture of any shares of Restricted
Stock, to the extent the Grantee paid the purchase price of such forfeited
shares in a manner other than services rendered, the Company shall repurchase
such shares from the Grantee at a price per share equal to the lesser of (i)
the Fair Market Value of such shares at the time of forfeiture or (ii) the
price Grantee paid for such shares initially.

Except as specifically modified herein, the
parties expressly reaffirm the terms and conditions of the Award Agreement.

 

Dated: February 24, 2005

 

	
  Zenith National Insurance
  Corp.

  	
   

  	
  Grantee:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
  William J. Owen

  	
   

  	
  /s/

  	
  John J. Tickner

  
	
  Name:

  	
   

  	
  William J. Owen

  	
   

  	
  John J. Tickner

  
	
   

  	
   

  	
  Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
  And Chief Financial
  OfficerExhibit 10.8

November 11,
2004

Mr. Stephen W.
Bershad

66 Arroyo Hondo Trail

Santa Fe, NM  87508

Dear Mr. Bershad:

Reference is made to the Employment Agreement, dated October 12,
2000 (the “Employment Agreement”), between Axsys Technologies, Inc. (the “Company”)
and you.

The Company desires to extend the Initial Period (as
defined in Section 2(a) of the Employment Agreement) until October 12,
2005, subject to the earlier termination of the Initial Period by you in your
sole discretion or by the Company, acting through its Board of Directors, in
its sole discretion, by 30 days’ prior written notice to the other.

If the foregoing extension
of the Initial Period meets with your approval, please indicate your acceptance
in the space provided below.

	
  

  	
  AXSYS TECHNOLOGIES, INC.

  
	
   

  	
  By:

  	
  /s/ ELIOT M. FRIED.

  
	
   

  	
  Chairman
  of the Compensation

  
	
   

  	
  Committee
  of the Board of Directors

  
	
  Accepted and Agreed:

  	
   

  
	
  /s/ STEPHEN W. BERSHAD

  	
   

  	
   

  
	
  Stephen W. BershadExhibit 10.9

SEVERANCE PROTECTION AGREEMENT

THIS AGREEMENT made as of December 3, 2004 by and
between Axsys Technologies, Inc. (the “Company”) and Scott B. Conner (the “Executive”).

WHEREAS, the Board of Directors of the Company (the “Board”)
recognizes that the possibility of a Change in Control (as hereinafter defined)
exists and that the threat or the occurrence of a Change in Control can result
in significant distraction of the Company’s key management personnel because of
the uncertainties inherent in such a situation;

WHEREAS, the Board has determined that it is essential
and in the best interests of the Company and its stockholders for the Company
to retain the services of the Executive in the event of a threat or occurrence
of a Change in Control and to ensure the Executive’s continued dedication and
efforts in such event without undue concern for the Executive’s personal
financial and employment security; and

WHEREAS, in order to induce the Executive to remain in
the employ of the Company and/or one of its Affiliates (the entity or entities
employing the Executive, the “Employing Affiliate”), particularly in the event
of a threat or the occurrence of a Change in Control, the Company desires to
enter into this Agreement with the Executive to provide the Executive with
certain benefits in the event the Executive’s employment is terminated as a
result of, or in connection with, a Change in Control.

NOW, THEREFORE, in
consideration of the respective agreements of the parties contained herein, it
is agreed as follows:

1.     Term of Agreement.   This Agreement shall
commence as of the date of this agreement, and shall continue in effect until January 1,
2006 (the “Term”); provided, however, that on January 1, 2006, and on each January 1
thereafter, the Term shall automatically be extended for one year unless either
the Executive or the Company shall have given written notice to the other at
least ninety days prior thereto that the Term shall not be so extended; provided, further, however, that following the occurrence of
a Change in Control, the Term shall not expire prior to the expiration of
twenty-four months after such occurrence.

2.     Termination of Employment.   If, during the
Term, the Executive’s employment with the Company or an Employing Affiliate
shall be terminated within twenty-four months following a Change in Control,
the Executive shall be entitled to the following compensation and benefits:

(a)    If the Executive’s
employment with the Company or an Employing Affiliate shall be terminated (1) by
the Company for Cause or Disability, (2) by reason of the Executive’s
death, or (3) by the Executive other than for Good Reason or pursuant to a
Window Period Termination, the Company shall pay to the Executive the Accrued
Compensation.

(b)   If the
Executive’s employment with the Company or an Employing Affiliate shall be
terminated for any reason other than as specified in Section 2(a), or if
the Executive terminates his employment with or without Good Reason during the
one month period commencing six months following a Change in Control (a “Window
Period Termination”), the Executive shall be entitled to the following:

(1)   the Company
shall pay the Executive the Accrued Compensation;

(2)   the Company
shall pay the Executive as severance pay an amount equal to 2.99 times the sum
of (a) the highest annual base salary paid to the Executive during the 12-month
period immediately prior to the Termination Date and (b) the average of
the annual cash bonuses paid to the Executive during the 3 calendar years prior
to the year in which the Termination Date occurs (prorated for any lesser
period during which the Executive has been employed or for 

  
 

which bonuses have been
determined, if applicable, and, in the case of each of (a) and (b),
determined without reduction for any portion thereof that has been deferred by
the Executive); provided, however, that, if the Executive has been employed for
less than a full year as of the Termination Date, the amount of clause (b) hereof
shall be equal to the Executive’s target bonus amount for such year, prorated
for the period during which the Executive has been employed; and

(3)   for twelve
months following the Termination Date (the “Continuation Period”), the Company
shall continue on behalf of the Executive and his dependents and beneficiaries
the life insurance, disability, medical, dental, prescription drug and
hospitalization coverages and benefits provided to the Executive immediately
prior to a Change in Control (the “Benefits Continuation”), or, if greater, the
coverages and benefits provided at any time thereafter; provided,
however, that within five days following the Termination Date, the
Executive may elect to receive from the Company in cash, in lieu of the
Benefits Continuation, the value of the Benefits Continuation. The coverages
and benefits (including deductibles and costs to the Executive) provided in
this Section 2(b)(3) during the Continuation Period shall be no less
favorable to the Executive and his dependents and beneficiaries than the most
favorable of such coverages and benefits referred to above. The Company’s
obligation hereunder with respect to the foregoing coverages and benefits shall
be reduced to the extent that the Executive obtains any such coverages and
benefits pursuant to a subsequent employer’s benefit plans, in which case the
Company may reduce any of the coverages or benefits it is required to provide
the Executive hereunder so long as the aggregate coverages and benefits
(including deductibles and costs to the Executive) of the combined benefit
plans are no less favorable to the Executive than the coverages and benefits
required to be provided hereunder. This Section 2(b)(3) shall not be
interpreted so as to limit any benefits to which the Executive, his dependents
or beneficiaries may be entitled under any of the Company’s employee benefit
plans, programs or practices following the Executive’s termination of
employment, including but not limited to retiree medical and life insurance
benefits.

(c)    The cash
amounts provided for in Sections 2(a) and 2(b) shall be paid in
a single lump sum cash payment within ten days after the Termination Date (or
earlier, if required by applicable law).

(d)   The
severance pay and benefits provided for in this Section 2 shall be in lieu
of any other severance pay to which the Executive may be entitled under any
severance or employment agreement with the Company or any other plan, agreement
or arrangement of the Company or any other Affiliate of the Company. The
Executive’s entitlement to any compensation or benefits other than as provided
herein shall be determined in accordance with the employee benefit plans of the
Company and any of its Affiliates and other applicable agreements, programs and
practices as in effect from time to time.

(e)    If the
Executive’s employment is terminated by the Company or an Employing Affiliate
without Cause prior to the date of a Change in Control but the Executive
reasonably demonstrates that such termination (1) was at the request of a
third party who has indicated an intention or taken steps reasonably calculated
to effect a Change in Control (a “Third Party”) and who effectuates a Change in
Control or (2) otherwise arose in connection with, or in anticipation of,
a Change in Control which has been threatened or proposed and which actually
occurs, such termination shall be deemed to have occurred after a Change in
Control, it being agreed that any such action taken following shareholder
approval of a transaction which if consummated would constitute a Change in
Control, shall be deemed to be in anticipation of a Change in Control provided
such transaction is actually consummated.

  
 

3.     Effect of Section 280G of the Internal
Revenue Code.

(a)    Notwithstanding
anything contained in this Agreement to the contrary, to the extent that the
payments and benefits provided under this Agreement and benefits provided to,
or for the benefit of, the Executive under any other Company plan or agreement
(such payments or benefits collectively referred to herein as the “Payments”)
would be subject to the excise tax (the “Excise Tax”) imposed under Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”), the Payments
shall be reduced (but not below zero) if and to the extent necessary so that no
Payment to be made or benefit to be provided to the Executive shall be subject
to the Excise Tax (such reduced amount is hereinafter referred to as the “Limited
Payment Amount”). Unless the Executive shall have given prior written notice
specifying a different order to the Company to effectuate the foregoing, the
Company shall reduce or eliminate the Payments by first reducing or eliminating
the portion of the Payments which are not payable in cash and then by reducing or
eliminating cash payments, in each case in reverse order beginning with
payments or benefits which are to be paid the farthest in time from the
Determination (as hereinafter defined). Any notice given by the Executive
pursuant to the preceding sentence shall take precedence over the provisions of
any other plan, arrangement or agreement governing the Executive’s rights and
entitlements to any benefits or compensation.

(b)   The
determination of whether the Payments shall be reduced to the Limited Payment Amount
pursuant to this Agreement and the amount of such Limited Payment Amount shall
be made, at the Company’s expense, by an accounting firm selected by the
Company and reasonably acceptable to the Executive which is one of the five
largest accounting firms in the United States (the “Accounting Firm”). The
Accounting Firm shall provide its determination (the “Determination”), together
with detailed supporting calculations and documentation to the Company and the
Executive within ten days of the Termination Date, if applicable, or such other
time as requested by the Company or by the Executive (provided the Executive
reasonably believes that any of the Payments may be subject to the Excise Tax)
and if the Accounting Firm determines that no Excise Tax is payable by the
Executive with respect to the Payments, it shall furnish the Executive with an
opinion reasonably acceptable to the Executive that no Excise Tax will be
imposed with respect to any such Payments. The Determination shall be binding,
final and conclusive upon the Company and the Executive.

4.     Notice of Termination.   Following a Change in
Control, any intended termination of the Executive’s employment by the Company
or an Employing Affiliate shall be communicated by a Notice of Termination from
the Company to the Executive, and any intended termination of the Executive’s
employment by the Executive for Good Reason shall be communicated by a Notice
of Termination from the Executive to the Company.

5.     Fees and Expenses.   The Company shall pay, as incurred,
all legal fees and related expenses (including the costs of experts, evidence
and counsel) that the Executive may reasonably incur following a Change in
Control as a result of or in connection with (a) the Executive’s
contesting, defending or disputing the basis for the termination of the
Executive’s employment, (b) the Executive’s hearing before the Board of
Directors of the Company as contemplated in Section 16.4 or (c) the
Executive’s seeking to obtain or enforce any right or benefit provided by this
Agreement or by any other plan or arrangement maintained by the Company or one
of its Affiliates under which the Executive is or may be entitled to receive
benefits.

6.     Unauthorized Disclosure.

(a)    The
Executive agrees and understands that during the Executive’s employment with
the Company or an Employing Affiliate, the Executive has been and will be
exposed to and receive information relating to the affairs of the Company
considered by the Company to be confidential and in the nature of trade secrets
(including but not limited to procedures, memoranda, notes, records and 

  
 

customer lists, whether
such information has been or is made, developed or compiled by the Executive or
otherwise has been or is made available to him) (any and all such information,
the “Confidential Information”). The Executive agrees that, during the Term and
thereafter, he shall keep such Confidential Information confidential and will
not disclose such Confidential Information, either directly or indirectly, to
any third person or entity without the prior written consent of the Company; provided, however, that (i) the Executive shall have no
such obligation to the extent such Confidential Information is or becomes
publicly known other than as a result of the Executive’s breach of his
obligations hereunder or is received by the Executive following the Termination
Date and (ii) the Executive may, after giving prior notice to the Company
to the extent practicable under the circumstances, disclose such Confidential
Information to the extent required by applicable laws or governmental
regulations or judicial or regulatory process.

(b)   The
Executive agrees that all Confidential Information is and will remain the
property of the Company. The Executive further agrees that, during the Term and
thereafter, he shall hold in the strictest confidence all Confidential Information,
and shall not, directly or indirectly, duplicate, sell, use, lease,
commercialize, disclose or otherwise divulge to any person or entity any
portion of the Confidential Information or use any Confidential Information for
his own benefit or profit or allow any person or entity, other than the Company
and its authorized employees, to use or otherwise gain access to any
Confidential Information.

(c)    All
memoranda, notes, records, customer lists and other documents made or compiled
by the Executive or otherwise made available to him concerning the business of
the Company or its subsidiaries or Affiliates shall be the Company’s property
and shall be delivered to the Company upon the termination of the Executive’s
employment with the Company or an Employing Affiliate or at any other time upon
request by the Company, and the Executive shall retain no copies of those
documents. The Executive shall never at any time have or claim any right, title
or interest in any material, invention or matter of any sort created, prepared
or used in connection with the business of the Company or its subsidiaries or
Affiliates.

7.     Non-competition.

(a)    By and in
consideration of the Company’s entering into this Agreement and the payments to
be made and benefits to be provided by the Company hereunder and further in
consideration of the Executive’s exposure to the proprietary information of the
Company, the Executive agrees that the Executive will not, during the Term, and
thereafter during the Non-competition Term (as hereinafter defined), directly
or indirectly, own, manage, operate, join, control, be employed by, or
participate in the ownership, management, operation or control of, or be
connected in any manner with, including but not limited to holding any position
as a shareholder, director, officer, consultant, independent contractor,
employee, partner, or investor in, any Restricted Enterprise (as defined
below); provided, however, that in no event
shall ownership of less than one percent of the outstanding equity securities
of any issuer whose securities are registered under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), standing alone, be prohibited by this
Section 7. For purposes of this paragraph, the term “Restricted Enterprise”
shall mean any person, corporation, partnership or other entity that is engaged
in the precision systems or industrial components business or otherwise
competes, directly or indirectly, with any business or activity conducted or
proposed to be conducted by the Company or any of its subsidiaries or
Affiliates as of the date of the Executive’s termination of employment. Following
termination of employment, upon request of the Company, the Executive shall
notify the Company of the Executive’s then current employment status. For
purposes of this Agreement, the “Non-competition Term” shall mean the period
beginning on the Termination Date and ending on the first anniversary of such
date. Any material breach of the terms of this paragraph shall be considered
Cause under Section 16.4.

  
 

(b)   The
Executive agrees that any breach of the terms of this Section 7 would
result in irreparable injury and damage to the Company and/or its subsidiaries
or Affiliates for which the Company and/or its subsidiaries or Affiliates would
have no adequate remedy at law; the Executive therefore also agrees that in the
event of said breach or any threat of breach, the Company and/or its
subsidiaries or Affiliates, as applicable, shall be entitled to an immediate
injunction and restraining order to prevent such breach and/or threatened
breach and/or continued breach by the Executive and/or any and all persons
and/or entities acting for and/or with the Executive, without having to prove
damages, in addition to any other remedies to which the Company and/or its
subsidiaries or Affiliates may be entitled at law or in equity. The terms of
this paragraph shall not prevent the Company and/or its subsidiaries or
Affiliates from pursuing any other available remedies for any breach or
threatened breach hereof, including but not limited to the recovery of damages
from the Executive. The Executive and the Company further agree that the
provisions of the covenants contained in this Section 7 are reasonable and
necessary to protect the businesses of the Company and its subsidiaries or
Affiliates because of the Executive’s access to Confidential Information and
his material participation in the operation of such businesses. Should a court
or arbitrator determine, however, that any provision of the covenants contained
in this Section 7 is not reasonable or valid, either in period of time,
geographical area, or otherwise, the parties hereto agree that such covenants
should be interpreted and enforced to the maximum extent which such court or
arbitrator deems reasonable or valid.

The existence of
any claim or cause of action by the Executive against the Company and/or its
subsidiaries or Affiliates, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of the
covenants contained in this Section 7.

8.     Notice.   For the purposes of this Agreement, notices
and all other communications provided for in this Agreement (including any
Notice of Termination) shall be in writing, shall be signed by the Executive if
to the Company or by a duly authorized officer of the Company if to the
Executive, and shall be deemed to have been duly given when personally
delivered or sent by certified mail, return receipt requested, postage prepaid,
addressed to the respective addresses last given by each party to the other,
provided that all notices to the Company shall be directed to the attention of
the Board with a copy to the Secretary of the Company. All notices and
communications shall be deemed to have been received on the date of delivery
thereof or on the third business day after the mailing thereof (whichever is
earlier), except that notice of change of address shall be effective only upon
receipt.

9.     Non-Exclusivity of Rights.   Nothing in this
Agreement shall prevent or limit the Executive’s continuing or future
participation in any benefit, bonus, incentive or other plan or program
provided by the Company or any other Affiliate of the Company for which the
Executive may qualify, nor shall anything herein limit or reduce such rights as
the Executive may have under any other agreements with the Company or any other
Affiliate of the Company. Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan or program of the
Company or any other Affiliate of the Company shall be payable in accordance
with such plan or program, except as explicitly modified by this Agreement.

10.   (a)   Full Settlement.   The Company’s obligation to make the
payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including but
not limited to any set-off, counterclaim, defense, recoupment, or other claim,
right or action which the Company may have against the Executive or others.

(b)   No Mitigation.   The Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise and no such payment shall be offset or reduced by
the amount of any compensation or benefits provided to the Executive in any
subsequent employment except as provided in Section 2(b)(3).

  
 

11.   Miscellaneous.   No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and the Company. No waiver by
any party hereto at any time of any breach by any other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by any party which are not
expressly set forth in this Agreement.

12.   Successors; Binding Agreement.

(a)    This
Agreement shall be binding upon and shall inure to the benefit of the Company
and its Successors and Assigns. The Company shall require its Successors and
Assigns to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession or assignment had taken place.

(b)   Neither
this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Executive, his beneficiaries or legal representatives,
except by will or by the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by the Executive’s legal personal
representative.

13.   Governing Law.   This Agreement shall be governed
by and construed and enforced in accordance with the laws of the State of
Delaware without giving effect to the conflict of laws principles thereof. Any
action brought by any party to this Agreement shall be brought and maintained
in a court of competent jurisdiction in the State of Delaware.

14.   Severability.   The provisions of this Agreement shall
be deemed severable and the invalidity or unenforceability of any provision
shall not affect the validity or enforceability of the other provisions hereof.

15.   Entire Agreement.   This Agreement constitutes the
entire agreement between the parties hereto, and supersedes all prior
agreements, if any, understandings and arrangements, oral or written, between
the parties hereto, with respect to the subject matter hereof.

16.   Definitions.

16.1.    Accrued Compensation.   For
purposes of this Agreement, “Accrued Compensation” shall mean all amounts of
compensation for services rendered to the Company or an Employing Affiliate
that have been earned or accrued through the Termination Date but that have not
been paid as of the Termination Date, including (a) base salary, (b) reimbursement
for reasonable and necessary business expenses incurred by the Executive on
behalf of the Company or an Employing Affiliate during the period ending on the
Termination Date and (c) vacation pay; provided, however, that
Accrued Compensation shall not include any amounts described in clause (a) that
have been deferred pursuant to any salary reduction or deferred compensation
elections made by the Executive.

16.2.    Affiliate.   For
purposes of this Agreement, “Affiliate,” means, with respect to any Person, any
entity, directly or indirectly, controlled by, controlling or under common
control with such Person.

16.3.    [Intentionally Omitted.]

16.4.    Cause.   For
purposes of this Agreement, a termination of employment is for “Cause” if the
Executive

(a)    has been convicted of a felony (including a
plea of nolo  contendere);

(b)   intentionally and continually failed
substantially to perform his reasonably assigned duties with the Company or an
Employing Affiliate (other than a failure resulting from the 

  
 

Executive’s
incapacity due to physical or mental illness or from the assignment to the
Executive of duties that would constitute Good Reason) which failure continued
for a period of at least thirty days after a written notice of demand for
substantial performance, signed by a duly authorized officer of the Company,
has been delivered to the Executive specifying the manner in which the
Executive has failed substantially to perform such duties; or

(c)    intentionally engaged in illegal conduct or
willful misconduct, which is demonstrably and materially injurious to the
Company or an Employing Affiliate.

For purposes of
this Agreement, no act, or failure to act, on the Executive’s part shall be
considered “intentional” unless the Executive has acted, or failed to act, with
a lack of good faith and with a lack of reasonable belief that the Executive’s
action or failure to act was in the best interest of the Company or an
Employing Affiliate. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board or upon the instructions of
the Company’s Chairman of the Board, Chief Executive Officer or a senior
officer of the Company or based upon the advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company or an
Employing Affiliate. The termination of employment of the Executive shall not
be deemed to be for Cause pursuant to subparagraph (b) or (c) above
unless and until there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than three-fourths
of the entire membership of the Board at a meeting of the Board called and held
for such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity, together with counsel, to be heard before
the Board) finding that, in the good faith opinion of the Board, the Executive
is guilty of the conduct described in subparagraph (b) or (c) above,
and specifying the particulars thereof in detail. Notwithstanding anything
contained in this Agreement to the contrary, no failure to perform by the
Executive after a Notice of Termination is given to the Company by the
Executive shall constitute Cause for purposes of this Agreement.

16.5.    Change in Control.   A
“Change in Control” shall mean the occurrence during the Term of:

(a)    An acquisition (other than directly from the
Company) of any common stock of the Company (“Common Stock”) or other voting
securities of the Company entitled to vote generally for the election of
directors (the “Voting Securities”) by any “Person” (as the term “person” is
used for purposes of Section 13(d) or 14(d) of the Exchange
Act), immediately after which such Person has “Beneficial Ownership” (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of
fifty percent or more of the then outstanding shares of Common Stock or the
combined voting power of the Company’s then outstanding Voting Securities; provided, however, in determining whether a Change in
Control has occurred, Common Stock or Voting Securities which are acquired in a
Non-Control Acquisition (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A “Non-Control Acquisition”
shall mean an acquisition by (i) an employee benefit plan (or a trust
forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person of which a majority of its voting power or its
voting equity securities or equity interest is owned, directly or indirectly,
by the Company (a “Subsidiary”), (ii) the Company or its Subsidiaries, (iii) any
Person in connection with a Non-Control Transaction (as hereinafter defined) or
(iv) an Affiliate;

(b)   The individuals who, as of the date of this
agreement, are members of the Board (the “Incumbent Board”), cease for any
reason to constitute at least a majority of the members of the Board; provided, however, that if the election, or nomination for
election by the Company’s shareholders, of any new director was approved by a
vote of at least two-thirds of the Incumbent Board, such new director shall,
for purposes of this Agreement, be considered a member of the Incumbent Board; provided further, however, that no individual shall be
considered a member of 

  
 

the Incumbent Board
if such individual initially assumed office as a result of either an actual or
threatened “Election Contest” (as described in Rule 14a-11
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board (a “Proxy
Contest”) including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or

(c)    The consummation of:

(1)   A merger, consolidation, reorganization or
other business combination with or into the Company or in which securities of
the Company are issued, unless such merger, consolidation, reorganization or
other business combination is a “Non-Control Transaction.” A “Non-Control
Transaction” shall mean a merger, consolidation, reorganization or other
business combination with or into the Company or in which securities of the
Company are issued where:

(A)  the shareholders of the Company, immediately
before such merger, consolidation, reorganization or other business combination
own directly or indirectly immediately following such merger, consolidation,
reorganization or other business combination, at least fifty percent of the
combined voting power of the outstanding voting securities of the corporation
resulting from such merger or consolidation, reorganization or other business
combination (the “Surviving Corporation”) in substantially the same proportion
as their ownership of the Voting Securities immediately before such merger,
consolidation, reorganization, or other business combination,

(B)  the individuals who were members of the
Incumbent Board immediately prior to the execution of the agreement providing
for such merger, consolidation, reorganization or other business combination
constitute at least two-thirds of the members of the board of directors of the
Surviving Corporation, or a corporation beneficially directly or indirectly
owning a majority of the combined voting power of the outstanding voting
securities of the Surviving Corporation, and

(C)  no Person other than (i) the Company, (ii) any
Subsidiary, (iii) any employee benefit plan (or any trust forming a part
thereof) that, immediately prior to such merger, consolidation, reorganization
or other business combination was maintained by the Company, the Surviving
Corporation, or any Subsidiary, or (iv) any Person who, immediately prior
to such merger, consolidation, reorganization or other business combination had
Beneficial Ownership of fifty percent or more of the then outstanding Voting
Securities or common stock of the Company, has Beneficial Ownership of fifty
percent or more of the combined voting power of the Surviving Corporation’s
then outstanding voting securities or its common stock.

(2)   A complete liquidation or dissolution of the
Company; or

(3)   The sale or other disposition of all or
substantially all of the assets of the Company to any Person (other than (i) any
such sale or disposition that results in at least fifty percent of the Company’s
assets being owned by a Subsidiary or Subsidiaries or (ii) a distribution
to the Company’s stockholders of the stock of a Subsidiary or any other
assets);

provided, however, that
no transaction or series of transactions by which Stephen W. Bershad, or any
Person in which Stephen W. Bershad has Beneficial Ownership, directly or
indirectly, of 25 percent of the outstanding ownership interests or voting
power, acquires fifty percent or more of the then outstanding shares of Common
Stock or the combined voting power of the Company’s then outstanding Voting 

  
 

Securities shall
constitute a Change in Control for purposes of this Agreement (regardless of
the form of transaction or series of transactions by which such acquisition
occurs (including, without limitation, any acquisition described in clause (a) hereof
or any merger or other transaction described in clause (c) hereof)).

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because any
Person (the “Subject Person”) acquired Beneficial Ownership of more than the
permitted amount of the then outstanding Common Stock or Voting Securities as a
result of the acquisition of Common Stock or Voting Securities by the Company
which, by reducing the number of shares of Common Stock or Voting Securities
then outstanding, increases the proportional number of shares Beneficially
Owned by the Subject Person, provided that if a Change in Control would occur
(but for the operation of this sentence) as a result of the acquisition of
shares of Common Stock or Voting Securities by the Company, and after such
share acquisition by the Company, the Subject Person becomes the Beneficial
Owner of any additional shares of Common Stock or Voting Securities which
increase the percentage of the then outstanding shares of Common Stock or
Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

16.6.    Company.   For
purposes of this Agreement, all references to the Company shall include its
Successors and Assigns.

16.7.    Disability.   For
purposes of this Agreement, “Disability” shall mean a physical or mental
infirmity which impairs the Executive’s ability to substantially perform his
duties with the Company or an Employing Affiliate for six consecutive months,
and within the time period set forth in a Notice of Termination given to the
Executive (which time period shall not be less than thirty days), the
Executive shall not have returned to full-time performance of his duties; provided, however, that if the Company’s Long Term
Disability Plan, or any successor plan (the “Disability Plan”), is then in
effect, the Executive shall not be deemed disabled for purposes of this
Agreement unless the Executive is also eligible for long-term disability
benefits under the Disability Plan (or similar benefits in the event of a
successor plan).

16.8.    Good Reason.

(a)    For purposes of this Agreement, “Good Reason”
shall mean the occurrence after a Change in Control of any of the following
events or conditions:

(1)   a material adverse change in the Executive’s
duties or responsibilities (including reporting responsibilities), except in
connection with the termination of his employment for Disability, Cause, as a
result of his death or by the Executive other than for Good Reason;

(2)   a reduction in the Executive’s annual base
salary;

(3)   the relocation of the offices of the Company
or an Employing Affiliate at which the Executive is principally employed to a
location more than 25 miles from the location of such offices immediately
prior to a Change in Control, or the requirement that the Executive be based
anywhere other than at such offices, except to the extent the Executive was not
previously assigned to a principal location and except for required travel on
the business of the Company or an Employing Affiliate to an extent
substantially consistent with the Executive’s business travel obligations at
the time of a Change in Control; or

(4)   the failure by the Company or an Employing
Affiliate to pay to the Executive any portion of the Executive’s current
compensation or to pay to the Executive any portion of an installment of
deferred compensation under any deferred compensation program of the 

  
 

Company or an Employing Affiliate in which the Executive participated,
within seven days of the date such compensation is due.

(b)   Any event or condition described in Section 16.8(a)(1) through (4) which
occurs prior to a Change in Control but which the Executive reasonably
demonstrates (i) was at the request of a Third Party who effectuates a
Change in Control or (ii) otherwise arose in connection with or in
anticipation of a Change in Control which has been threatened or proposed and
which actually occurs, shall constitute Good Reason for purposes of this
Agreement notwithstanding that it occurred prior to a Change in Control, it
being agreed that any such action taken following shareholder approval of a
transaction which if consummated would constitute a Change in Control, shall be
deemed to be in anticipation of a Change in Control provided such transaction
is actually consummated.

16.9.    Notice of Termination.   For
purposes of this Agreement, following a Change in Control, “Notice of
Termination” shall mean a written notice of termination of the Executive’s
employment, signed by the Executive if to the Company or by a duly authorized
officer of the Company if to the Executive, which indicates the specific
termination provision in this Agreement, if any, relied upon and which sets
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated. The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing
of Good Reason, Disability or Cause shall not serve to waive any right of the
Executive or the Company, respectively, hereunder or preclude the Executive or
the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive’s or the Company’s rights hereunder.

16.10.  Successors and Assigns.   For
purposes of this Agreement, “Successors and Assigns” shall mean, with respect
to the Company, a corporation or other entity acquiring all or substantially
all the assets and business of the Company, as the case may be, whether by
operation of law or otherwise.

16.11.  Termination Date.   For
purposes of this Agreement, “Termination Date” shall mean (a) in the case
of the Executive’s death, his date of death, (b) if the Executive’s
employment is terminated for Disability, thirty days after Notice of
Termination is given (provided that the Executive shall not have returned to
the performance of his duties on a full-time basis during such thirty day
period) and (c) if the Executive’s employment is terminated for any other
reason, the date specified in the Notice of Termination (which, in the case of
a termination for Cause shall not be less than thirty days, and in the
case of a termination for Good Reason shall not be more than sixty days,
from the date such Notice of Termination is given); provided,
however, that if within thirty days after any Notice of
Termination is given the party receiving such Notice of Termination in good
faith notifies the other party that a dispute exists concerning the basis for
the termination, the Termination Date shall be the date on which the dispute is
finally determined, either by mutual written agreement of the parties, or by
the final judgment, order or decree of a court of competent jurisdiction (the
time for appeal therefrom having expired and no appeal having been taken). Notwithstanding
the pendency of any such dispute, the Company or an Employing Affiliate shall
continue to pay the Executive his base salary and continue the Executive as a
participant (at or above the level provided prior to the date of such dispute)
in all compensation, incentive, bonus, pension, profit sharing, medical,
hospitalization, prescription drug, dental, life insurance and disability
benefit plans in which he was participating when the notice giving rise to the
dispute was given, until the dispute is finally resolved whether or not the
dispute is resolved in favor of the Company, and the Executive shall not be
obligated to repay to the Company or an Employing Affiliate any amounts paid or
benefits provided pursuant to this sentence.

  
 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officers and the Executive has executed this Agreement as of
the day and year first above written.

	
   

  	
  AXSYS TECHNOLOGIES, INC.

  
	
   

  	
  /s/ STEPHEN W. BERSHAD

  
	
   

  	
  By:

  	
  Stephen W. Bershad

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
  EXECUTIVE

  
	
   

  	
  /s/ SCOTT B. CONNER

  
	
   

  	
  Scott B. Conner

  
	
   

  	
  17 Orchard Road

  
	
   

  	
  West Hartford, CT 06117

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