Document:

Exhibit 10.34

 

BancTec, Inc.

 

2009 Equity Incentive Plan

Option Award Agreement

 

SECTION 1.   GRANT OF OPTION AWARD

 

BancTec, Inc. (the “Company”) hereby grants to the undersigned (the “Optionee”), on                         , 20    , an option to purchase the shares of common stock of the Company, par value $0.01 per share, in the amount set forth on the signature page hereto (the “Option”) pursuant to the terms and conditions set forth in this agreement (the “Agreement”) and the BancTec, Inc. 2009 Amended and Restated Equity Incentive Plan (the “Plan”).  The Option is a nonqualified stock option.  Capitalized terms not defined herein shall have the same meaning as in the Plan.

 

SECTION 2.   EXERCISE PRICE

 

(a)   The exercise price of the Option shall be $                         per Share, subject to any adjustments as set forth in the Plan (the “Option Price”).

 

SECTION 3.   VESTING SCHEDULE

 

(a)   The Option shall vest according to the following schedule:

 

	
Vesting   Date
    	
 
    	
Amount to be Vested
    	
 
    
	
             ,   2009
    	
 
    	
(25
    	
)%
    
	
             ,   2010
    	
 
    	
(25
    	
)%
    
	
             ,   2011
    	
 
    	
(25
    	
)%
    
	
             ,   2012
    	
 
    	
(25
    	
)%
    

 

(b)   For purposes of this Agreement, “Vested Option” shall refer to the portion of the Option that is vested at such time.

 

(c)   For purposes of this Agreement, “Unvested Option” shall refer to the portion of the Option that is not vested at such time.

 

SECTION 4.   EXERCISE PROCEDURES.

 

(a)   Notice of Exercise.  The Optionee or the Optionee’s representative may exercise a Vested Option by giving written notice to the Company specifying the election to exercise a Vested Option, the number of Shares for which it is being exercised and the form of payment (the “Notice of Exercise”).  The Notice of Exercise shall be signed by the person exercising a Vested Option.  In the event that a Vested Option is being exercised by the Optionee’s representative, the Notice of Exercise shall be accompanied by proof (satisfactory to the Company) of the

 

 

representative’s right to exercise a Vested Option.  The Optionee or the Optionee’s representative shall deliver to the Company, at the time of giving the Notice of Exercise, payment in a form permissible under the Plan for the full amount of the number of Shares for which the Vested Option is being exercised multiplied by the Option Price (the “Exercise Amount”).  In addition, the Company shall be entitled to require, as a condition of delivery of the Shares upon exercise, that the Optionee or the Optionee’s representative remit an amount in cash sufficient to satisfy all applicable withholding taxes relating thereto; provided that to the extent permitted by the Committee,  the Optionee or the Optionee’s representative elects to satisfy the obligation to pay any withholding tax, in whole or in part, by having the Company retain Shares that would otherwise be delivered upon exercise or that were previously owned by the Optionee that are sufficient in value (valued at their Fair Market Value as of the day immediately prior to the date of exercise) to cover the amount of such withholding tax.

 

(b)   Receipt of Stock; Book Entry Procedures.  After receiving a Notice of Exercise, unless otherwise determined by the Committee or required by any applicable law, rule or regulation, the Company shall record in the books of the Company (or, as applicable, its transfer agent or stock plan administrator) the number of Shares owned by the Optionee (or as applicable, his beneficiaries) and shall deliver to the Optionee certificates evidencing Shares issued in connection with any Vested Option.

 

SECTION 5.   TERM AND EXPIRATION.

 

(a)   Basic Term.  Subject to earlier termination in accordance with subsection (b) below, the exercise period of this Option shall expire ten (10) years after the date it is granted (the “Term”).

 

(b)   Termination of Employment.  If the Optionee’s employment with the Company terminates for any reason, then (1) any Unvested Option shall be forfeited upon the effective date of such termination and (2) the exercise period for a Vested Option shall expire on the earliest of the following occasions:

 

(i)          The expiration date determined pursuant to Subsection (a) above; or

 

(ii)                                  The date ninety (90) days after the effective date of termination.

 

SECTION 6.   MISCELLANEOUS PROVISIONS.

 

(a)   Rights as a Shareholder.  Neither the Optionee nor the Optionee’s representative shall have any rights as a shareholder with respect to any Shares subject to this Option until the Optionee or the Optionee’s representative becomes entitled to receive such Shares by (i) filing a Notice of Exercise, and (ii) paying the Exercise Amount as provided in this Agreement.

 

(b)   Tenure.  Nothing in the Agreement or Plan shall confer upon the Optionee any right to continue in employment with the Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary or parent of the Company employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with or without cause.

 

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(c)   Notification.  Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid.  A notice shall be addressed to the Company at its principal executive office and to the Optionee at the address that he or she most recently provided to the Company.

 

(d)   Entire Agreement.  This Agreement, the Plan and any Employment Agreement (if applicable) constitute the entire contract between the parties hereto with regard to the subject matter hereof.  They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.  In the event that the terms of this Agreement, any Employment Agreement (if applicable) and the Plan are in conflict, the terms of the Plan shall govern.

 

(e)   Waiver.  No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

 

(f)    Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Optionee, the Optionee’s assigns and the legal representatives, heirs and legatees of the Optionee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be join herein and be bound by the terms hereof.

 

(g)   Choice of Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such state.

 

[Signature page follows.]

 

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Please acknowledge receipt of this Agreement by signing the enclosed copy of this Agreement in the space provided below and returning it promptly to the Secretary of the Company.

 

	
 
    	
BANCTEC, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BY:
    	
 
    
	
 
    	
 
    	
J. Coley Clark
    
	
 
    	
 
    	
Chief Executive Officer   and Chairman of the Board of Directors
    
	
 
    	
 
    
	
 
    	
 
    
	
OPTIONEE
    	
 
    
	
 
    	
 
    
	
Accepted and Agreed to
    	
 
    
	
As of                                     ,   20  
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Option:
    	
 
    
	
Grant Number:
    	
 
    

 

[SIGNATURE PAGE TO OPTION AWARD AGREEMENT, NON-EXECUTIVES]Exhibit 10.35

 

 

BancTec Executive Incentive Plan — FY 2010

 

	
Participant Name:
    	
Participant’s Leader:
    
	
Participant Title:
    	
Business Unit:
    
	
Target Percentage:
    	
 
    

 

Individual Participant Allocation Levels (fill in percentages per Section 7 below):

 

Corporate                 Business Unit                                                Personal Objectives

 

BancTec’s Executive Incentive Plan (“EIP” or the “Plan”) is an incentive plan designed to reward key BancTec leaders for their contributions in helping BancTec meet 2010 financial objectives.  The payout of the plan will be determined on achieving EBITDA targets.

 

Basics of the Executive Incentive Plan

 

1.                                       Executive Incentive Target Percentage.  Each participant will be assigned an Executive Incentive Target Percentage which will be disclosed to the participant by his or her leader.  This will be a percentage of the participant’s actual earnings during 2010 minus commissions, awards, draws, prizes and any additional or special bonus payments.

 

2.                                       Eligibility.  BancTec employees eligible for the 2010 Plan are the Chief Executive Officer, Senior Vice Presidents, the Vice President of Marketing, the General Counsel and their direct reports.

 

3.                                       Corporate Threshold:  For 2010, no Executive Incentive bonus will be paid unless BancTec achieves Net EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of at least $21.7 million.

 

4.                                       Corporate Payout:  If BancTec’s Net EBITDA is above the Corporate Threshold, then the Executive Incentive Payout Percentage will be scaled and interpolated according to the following table:

 

	
Net EBITDA
    	
 
    	
Payout %
    	
 
    
	
$21.7 million
    	
 
    	
20
    	
%
    
	
$23.0 million
    	
 
    	
50
    	
%
    
	
$24.2 million
    	
 
    	
75
    	
%
    
	
$25.5 million
    	
 
    	
100
    	
%
    
	
$27.0 million
    	
 
    	
120
    	
%
    
	
$28.6 million and above
    	
 
    	
130
    	
%
    

 

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5.                                       Unit Performance:                                                 If BancTec’s performance is above the Corporate Threshold, then the Unit Executive Incentive Payout Percentage will be scaled according to the following table.  Gross EBITDA is defined as Earnings Before Interest, Taxes, Depreciation and Amortization and bonus accruals.

 

	
 
    	
Business Unit Gross
    	
 
    	
 
    
	
 
    	
EBITDA Attainment
    	
 
    	
Payout %
    
	
 
    	
85%
    	
 
    	
 
    	
    20%
    
	
 
    	
90%
    	
 
    	
 
    	
    50%
    
	
 
    	
100%
    	
 
    	
 
    	
  100%
    
	
 
    	
Above 100%
    	
 
    	
 
    	
Equal   to the lesser of the percentage of Business Unit Gross EBITDA attainment or   Corporate Net EBITDA attainment.
    

 

6.                                       Personal Objectives:  Personal objectives development and measurement will be handled by the Business Unit Senior Vice President (or Vice President, if there is no Senior Vice President).  Personal objectives must be specified by the relevant Business Unit leader and provided to the Human Resources department before June 30, 2010 for the Participant to be eligible for that portion of the Participant’s bonus.

 

7.                                       Allocation Percentage.  All participants at the CEO and SVP level (including the General Counsel and Vice President of Marketing) will be assigned an Allocation Percentage which is based 100 percent on the total Corporate performance target.  Participants at the GM/VP level will have an allocation percentage based on a ratio of 50 percent Corporate performance and 50 percent on applicable Business Unit performance.  Director level participants (including Finance VPs and Directors) will have an allocation percentage based on a ratio of 75 percent Corporate performance and 25 percent personal objectives.

 

NOTE:  Notwithstanding any other provision of this Plan, no Executive Incentive Plan bonus will be paid to any participant unless the minimum Corporate Threshold is attained.

 

8.                                       Examples:

 

(a)                                  Assume a Participant’s annual salary is $100,000, his Executive Incentive Plan Target Percentage is 25 percent, and because he is an SVP his Allocation Percentage indicates that 100 percent of his Executive Incentive Bonus will be based upon the Corporate performance target.

 

(i)                                     If BancTec achieves Net EBITDA attainment of $25.5 million, the Participant’s Executive Incentive Bonus will be $25,000.

 

	
 
    	
Corporate   Net EBITDA
    	
 
    	
$
    	
25.5 million
    	
 
    	
 
    
	
 
    	
EIP   funding level (see table above)
    	
 
    	
100
    	
%
    	
 
    

 

	
 
    	
Potential Bonus Amount
    	
 
    	
 
    	
 
    
	
 
    	
Total potential payout
    	
 
    	
$
    	
25,000
    	
 
    
	
 
    	
Plan funding level
    	
 
    	
100
    	
%
    
	
 
    	
Total Actual Bonus Payout
    	
 
    	
$
    	
25,000
    	
 
    

 

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(ii)                                  If BancTec achieves Net EBITDA attainment of $23.0 million, the Participant’s Executive Incentive Bonus will be $12,500:

 

	
 
    	
Potential Bonus Amount
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Total potential payout
    	
 
    	
$
    	
25,000
    	
 
    	
 
    
	
 
    	
Plan funding level
    	
 
    	
50
    	
%
    	
 
    
	
 
    	
Total Actual Bonus Payout
    	
 
    	
$
    	
12,500
    	
 
    	
 
    

 

(b)                                 Assume a Participant’s annual salary is $100,000 and her Executive Incentive Target Percentage is 25 percent. Assume also that this Participant is at the GM/VP level with an Allocation Percentage based 50 percent on the Corporate performance target and 50 percent on the relevant Business Unit’s performance target.

 

If BancTec achieves Net EBITDA attainment of 25.5 million and the Business Unit achieves 90% of its Gross EBITDA target, the Participant’s bonus will be $18,750.

 

	
 
    	
Corporate portion of payout:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Corporate Target Payout Amount (25,000 X 50%):
    	
 
    	
$
    	
12,500
    	
 
    	
 
    
	
 
    	
Corporate Payout %
    	
 
    	
100
    	
%
    	
 
    
	
 
    	
Corporate Payout
    	
 
    	
$
    	
12,500
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Business Unit portion of payout:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Unit Target Payout Amount (25,000 X 50%):
    	
 
    	
12,500
    	
 
    	
 
    
	
 
    	
Unit Payout %
    	
 
    	
50
    	
%
    	
 
    
	
 
    	
Unit Payout
    	
 
    	
$
    	
6,250
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Total Actual Bonus Payout: Corporate plus Unit   Payout
    	
 
    	
$
    	
18,750
    	
 
    	
 
    

 

(c)                                  Assume a Participant’s annual salary is $100,000 and her Executive Incentive Target Percentage is 25 percent. Assume also that this Participant is at the Director level with an Allocation Percentage based 75 percent on the Corporate performance target and 25 percent on individual performance objectives.  Assume also that the individual achieved 70% of her assigned performance objectives.

 

If BancTec achieves Net EBITDA attainment of 27.0 million, the Participant’s bonus will be $26,875.

 

	
 
    	
Corporate portion of payout:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Corporate Target Payout Amount (25,000 X 75%):
    	
 
    	
$
    	
18,750
    	
 
    	
 
    
	
 
    	
Corporate Payout %
    	
 
    	
120
    	
%
    	
 
    
	
 
    	
Corporate Payout
    	
 
    	
$
    	
22,500
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Performance Objective portion of payout:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Objective Target Payout Amount (25,000 X 25%):
    	
 
    	
$
    	
6,250
    	
 
    	
 
    
	
 
    	
Objective Payout % Achieved
    	
 
    	
70
    	
%
    	
 
    
	
 
    	
Objective Payout (multiply together)
    	
 
    	
$
    	
4,375
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Total Actual Bonus Payout:
    	
 
    	
$
    	
26,875
    	
 
    	
 
    

 

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9.                                       Revenue Growth Incentive.  If BancTec’s 2010 corporate revenues exceed BancTec’s 2009 revenues by ten percent (10%) or more (after adjusting for divestitures and currency fluctuations), to the extent that sufficient EBITDA is earned in excess of the Corporate Threshold in order to cover the cost of this Revenue Growth Incentive, each individual Participant’s Total Actual Bonus Payout (calculated in accordance with the other provisions of this Plan) will increase by 20% of such calculated Total Actual Bonus Payout. For example, if a Participant’s Total Actual Bonus Payout calculated pursuant to this Plan is $10,000, such Participant will receive a 20% increase (or $2,000) such that the bonus actually paid shall be $12,000.

 

Questions?

 

If you have any questions regarding the 2010 Executive Incentive Plan, please contact the Director of Human Resources.

 

Other Executive Incentive Plan Provisions

 

1.                                       The term “Business Unit” as used herein shall mean a) the EMEA business unit, b) the Americas business unit, or, for all persons not in either the EMEA or Americas business units, c) the Corporate business unit.

 

2.                                       Worldwide Application:  The EIP will be applied to BancTec business units worldwide unless contrary to applicable law.

 

3.                                       No Change to Employment Terms:  None of the information relating to the 2010 EIP contained herein is intended to or will give special rights or privileges to specific individuals or to entitle any person to remain employed by BancTec.  Although some of the guidelines set forth herein may suggest that certain procedures or steps be followed, these procedures should not be interpreted as altering an individual’s employment relationship and do not constitute an employment contract or other commitment to continued employment or compensation of any kind.  In addition, any bonus under this Plan is not to be construed or interpreted as an integral part of the participant’s compensation.  Participation in the Plan in any given year does not guarantee participation in the Plan in subsequent years nor is there any guarantee the Plan itself will be in effect in subsequent years.

 

4.                                       Extraordinary Gains and Losses:  EBITDA calculations will exclude any gain or loss on the sale of assets or extraordinary items not included in the relevant budget.

 

5.                                       Foreign Exchange Rate Gain and Losses: EBITDA calculations will exclude foreign exchange rate gain or losses.

 

6.                                       Non-cash Compensation Expenses:  EBITDA calculations will exclude non-cash compensation expenses.

 

7.                                       Local Currency:  All EIP bonuses will be paid in local currency.

 

8.                                       Bank Covenants: Bank Covenant compliance is required in order to pay EIP bonuses unless compliance has been waived by the relevant lender(s).

 

9.                                       Time of Payment:  EIP bonus payments are scheduled to be made (less applicable withholding taxes and routine deductions) as soon as practicable following completion of the corporate fiscal year 2010 audit but in no event later than June 30, 2010.

 

10.                                 Employment Requirement:  Unless otherwise specified by a written contractual arrangement, to be eligible to receive any bonuses pursuant to this Plan, the participant must be an active

 

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employee of BancTec on the date BancTec pays the 2010 EIP bonuses with one exception: if an employee (a) is involuntarily separated from BancTec after December 31, 2010 but before the date bonuses are paid and (b) such employee becomes eligible for extended severance payments under BancTec’s then-current Severance Policy (including signing a general release and complying with all other requirements specified in such Severance Policy), then such employee will be eligible to receive his or her bonus on the date EIP bonuses are paid.  Other than as specified in the immediately preceding sentence, separation from BancTec for any reason prior to receiving a bonus payment pursuant to EIP will result in forfeiture of all potential payment eligibility regardless of any objectives achieved or company, business unit or regional financial performance while employed.

 

11.                                 Discretionary Awards:  Notwithstanding any other provision of this Plan, the amount of the bonus, if any, will be based upon corporate, business unit and regional financial performance as well as the participant’s ongoing performance which is to be determined at the sole discretion of the BancTec Chief Executive Officer.  BancTec’s Chief Executive Officer has the sole discretion to determine the amount, if any, or no amount for which a participant may be eligible.  In the case of the Chief Executive Officer, such discretionary authority shall be vested in the Compensation Committee of the Board of Directors.  Notwithstanding the foregoing, the Compensation Committee of the Board of Directors and/or the full Board of Directors may increase, reduce or eliminate any payout under this Plan or alter this plan at their discretion.

 

12.                                 Proration:  Bonus payouts will be prorated for the following individuals unless prohibited by applicable law:  participants who become eligible after January 1, 2010 based upon the date they were added to EIP; participants removed from EIP due to change in position or transfer (if objectives have been successfully completed during their eligibility period); and participants who were on Short-Term Disability or Long-Term Disability during the Plan year.

 

13.                                 Term:  This Plan is effective as of January 1, 2010, and will remain in effect through the fiscal year ending December 31, 2010.

 

14.                                 Amendment; Cancellation:  BancTec reserves the right, in its sole discretion, to amend or cancel this Plan at any time without notice.

 

15.                                 Disputes:  Any disputes relating to this Plan must be in writing and addressed to the Chief Executive Officer of BancTec, Inc.  All decisions of the Chief Executive Officer are final.

 

16.                                 Governing Law:  This Plan is issued from the Company’s worldwide headquarters in Irving, Texas, and shall be governed in accordance with the laws of the State of Texas unless applicable law provides otherwise.

 

 

	
 
    	
 
    	
 
    
	
Participant Signature :
    	
 
    	
Leader’s   Signature :
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Printed Name
    	
Date
    	
 
    	
Printed   Name
    	
Date
    
					

 

*acceptable signatures are electronic digital or handwritten

*approved objectives and a signed Plan document must be submitted to HR

 

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