Document:

Second Amended & Restated ALH Holding Inc. Stock Purchase & Rollover Investment

 Exhibit 10.27 
 SECOND AMENDED AND RESTATED ALH HOLDING INC. 
 STOCK PURCHASE AND ROLLOVER INVESTMENT PLAN1 
 SECTION 1. 
 PURPOSE 
 The purpose of this Plan (as such term and any other capitalized terms used herein without definition are defined in Section 2) is to foster and promote the long-term financial success of the Company and the
Subsidiaries and materially increase stockholder value by encouraging and providing for the acquisition of an ownership interest in the Company by Employees. 
 SECTION 2. 
 DEFINITIONS 
 Whenever used herein, the following terms shall have the respective meanings set forth below: 
 Board:
the Board of Directors of the Company. 
 Closing Date: as defined in the UPA. 
 Committee: the Compensation Committee of the Board or, if there shall not be any committee then serving, the Board. 
 Common Stock: the Common Stock of the Company, par value $.01 per share. 
 Company: ALH Holding Inc., a Delaware corporation, and any successor thereto. 
 Employee: any officer or other key employee of the Company or any Subsidiary. 
 Fair Market Value: If no Public Offering has occurred, the fair market value of a share of Common Stock as determined in accordance with the
Stockholders Agreement. Following a Public Offering, the Fair Market Value, on any date of determination, shall mean the average of the closing sales prices for a share of Common 
  

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	 The Plan was adopted on January 27, 2005. It was amended on June 27, 2006, and amended and restated
December 21, 2007. This Second Amended and Restated Plan was adopted on January 31, 2008. 

 
Stock as reported on a national exchange for each of the ten business days preceding the date of determination or the average of the last transaction prices
for a share of Common Stock as reported on a nationally recognized system of price quotation for each of the ten business days preceding the date of determination. In the event that there are no Common Stock transactions reported on such exchange or
system on such date, Fair Market Value shall mean the closing price on the immediately preceding date on which Common Stock transactions were so reported. 
 Management Subscription Agreement: the Management Subscription Agreement, dated as of the Closing Date, among the Company and certain stockholders of the Company, as the same may be amended from time to time,
and any written agreement to subscribe for Common Stock pursuant to the Plan between any Employee and the Company. 
 OTPP: Ontario
Teachers’ Pension Plan Board, an entity without share capital organized under the laws of Ontario, Canada. 
 Participant: any
Employee (or a person or entity related to such Employee) designated by the Committee to participate in the Plan. 
 Plan: this Second
Amended and Restated ALH Holding Inc. Stock Purchase and Rollover Investment Plan, as set forth herein and as the same may be amended from time to time in accordance with its terms. 
 Public Offering: a public offering pursuant to an effective registration statement filed with the Securities and Exchange Commission that covers
shares of Common Stock that, after the closing of such public offering, will be traded on the New York Stock Exchange, the American Stock Exchange or the National Association of Securities Dealers Automated Quotation System. 
 Registration Rights Agreement: the Registration Rights Agreement, dated as of the Closing Date, among the Company, OTPP and certain other
stockholders of the Company, as the same may be amended from time to time. 
 Rollover Amount: as defined in the UPA. 
 Rollover Sellers: as defined in the UPA. 
 Rollover Shares: as defined in the UPA. 
 Stockholders Agreement: the Stockholders Agreement, dated as of the Closing
Date, among the Company, OTPP and certain other stockholders of the Company, as the same may be amended from time to time. 
 Subsidiary: any corporation or other entity a majority of whose outstanding voting securities is owned, directly or indirectly, by the Company. 
  

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 UPA: the Unit Purchase Agreement, dated as of December 7, 2004, by and among Alliance Laundry
Holdings LLC, its Securityholders and the Company. 
 SECTION 3. 
 ELIGIBILITY AND PARTICIPATION 
 Participants in the Plan shall be those Employees (or persons or entities
related to such Employees) designated by the Committee. The selection of an Employee as a Participant shall neither entitle such Employee to, nor disqualify such Employee from, participation in any other award or incentive plan of the Company or any
Subsidiary. 
 SECTION 4. 
 ADMINISTRATION 
 4.1. Administration. The Committee shall be responsible for the administration of the Plan. The Committee
shall have discretionary authority to prescribe, amend and rescind rules and regulations relating to the Plan, to provide for conditions deemed necessary or advisable to protect the interests of the Company, to interpret the Plan and to make all
other determinations necessary or advisable for the administration and interpretation of the Plan and to carry out its provisions and purposes. Any determination, interpretation or other action made or taken (including any failure to make any
determination or interpretation, or take any other action) by the Committee pursuant to the provisions of the Plan shall be final, binding and conclusive for all purposes and upon all persons and shall be given deference in any proceeding with
respect thereto. The Committee may consult with legal counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in good faith in reliance upon the advice of counsel. 
 SECTION 5. 
 STOCK SUBJECT TO PLAN 

5.1. Number. The number of shares of Common Stock available for purchase (either for cash or through rollover investment) under the Plan may
not exceed 135,000 shares of Common Stock. The shares of Common Stock to be delivered under the Plan may consist, in whole or in part, of shares held in treasury or authorized but unissued shares not reserved for any other purpose. 
  

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 SECTION 6. 
 STOCK PURCHASES AND ROLLOVER INVESTMENTS 
 6.1. Rollover Investments. Participants who are Rollover
Sellers shall have the opportunity to acquire Rollover Shares of Common Stock as of the Closing Date in respect of their Rollover Amounts as determined by the Committee. 
 6.2. Other Stock Purchases. To the extent determined by the Committee, Participants shall also have the opportunity to purchase shares of Common Stock other than Rollover Shares at a purchase price equal to the
Fair Market Value of such shares. 
 6.3. Payment / Other Agreements. The Committee shall establish procedures governing the
acquisition of Rollover Shares and the purchase of other shares of Common Stock pursuant to the Plan. Unless otherwise determined by the Committee, Participants acquiring shares of Common Stock pursuant to the terms of the Plan shall be required to
enter into the following agreements governing the acquisition of such shares: (i) a Management Subscription Agreement, (ii) the Stockholders Agreement and (iii) the Registration Rights Agreement. 
 SECTION 7. 
 AMENDMENT, MODIFICATION, AND
TERMINATION OF PLAN 
 7.1. In General. The Committee may at its discretion at any time and from time to time alter, amend, suspend,
or terminate the Plan in whole or in part. 
 SECTION 8. 
 MISCELLANEOUS PROVISIONS 
 8.1. No Guarantee of Employment or Participation; No Additional Compensation
for Loss of Rights Under Plan. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate any Participant’s employment at any time, nor confer upon any Participant any right to
continue in the employ of the Company or any Subsidiary. No Employee shall have a right to be selected as a Participant, or, having been so selected, to receive any future awards or entitlements from the Company or any Subsidiary. 
 8.2. Indemnification. Each person who is or shall have been a member of the Board or the Committee (an “Indemnified Person”)
shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by such Indemnified Person in connection with or resulting from any claim, action, suit or
proceeding to which such Indemnified Person 

  

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may be made a party or in which such Indemnified Person may be involved by reason of any action taken or failure to act under the Plan or any option
agreement and against and from any and all amounts paid by such Indemnified Person in settlement thereof, with the Company’s approval, or paid by such Indemnified Person in satisfaction of any judgment in any such action, suit or proceeding
against such Indemnified Person; provided that, such Indemnified Person acted in good faith and in a manner such Indemnified Person reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal
proceeding had no reasonable cause to believe his or her conduct was unlawful; provided further that, such Indemnified Person shall give the Company an opportunity, at its own expense, to handle and defend the same before such Indemnified Person
undertakes to handle and defend it on such Indemnified Person’s own behalf. Expenses, including attorneys’ fees, incurred by an Indemnified Person in defending any civil, criminal, administrative or investigative action, suit or proceeding
shall be paid by the Company in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the Indemnified Person to repay such amount if it shall ultimately be determined that he or she is
not entitled to be indemnified by the Company. The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of indemnification to which such Indemnified Person may be entitled under the Company’s
Articles of Incorporation or By-laws, by contract, as a matter of law or otherwise. 
 8.3. No Limitation on Compensation. Nothing in
the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation to its employees in cash or property. 
 8.4. Governing Law. The Plan, and all agreements hereunder, shall be governed by and construed in accordance with the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws.

 8.5. Securities Law Compliance. Instruments evidencing the acquisition of Common Stock under the Plan may contain such provisions,
not inconsistent with the Plan, as the Committee deems advisable to ensure compliance with all applicable securities laws, including a requirement that a Participant represent to the Company in writing that such Participant is acquiring such shares
for such Participant’s own account for investment only and with no present intention to transfer, sell or otherwise dispose of such shares except such disposition by a legal representative as shall be required by will or the laws of any
jurisdiction in winding up the estate of such Participant. Such shares shall be transferable only if the proposed transfer shall be permissible pursuant to the Plan and the Stockholders Agreement and if, in the opinion of counsel satisfactory to the
Company, such transfer at such time will be in compliance with all applicable securities laws. 
 8.6. Freedom of Action. Nothing in
the Plan or any agreement entered into pursuant to this Plan shall be construed as limiting or preventing the Company or any Subsidiary from taking any action with respect to the operation or conduct of its business that it deems appropriate or in
its best interest. 
  

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 8.7. No Fiduciary Relationship. Nothing contained in the Plan and no action taken pursuant to the
Plan shall create or be construed to create a trust of any kind or any fiduciary relationship between the Company or any Subsidiary and any Participant or executor, administrator or other personal representative or designated beneficiary of such
Participant, or any other persons. 
 8.8. Severability of Provisions. If any provision of this Plan shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provision had not been included. 
  

 6Cash Incentive Plan

 Exhibit 10.10 
 KADANT INC. 
 CASH INCENTIVE PLAN 
 (Effective beginning with the 2007 Fiscal Year) 
  

	1.	Purposes 

 The purposes of the Cash Incentive Plan of Kadant
Inc. are (i) to enable the Company to attract, retain, motivate and reward employees by providing an opportunity to earn incentive compensation under the Plan related to the performance of the Company and its subsidiaries and (ii) to
qualify such compensation paid as performance-based compensation within the meaning of Section 162(m) of the Code, as required for employees subject to Section 162(m) of the Code. 
  

	2.	Definitions 

 Terms used in the Plan, and not otherwise
defined, are defined as follows: 
 “Award” means a contingent award made to a Participant in accordance with the Plan that provides
the Participant with the opportunity to earn cash compensation based on the relative level of attainment of Performance Goals established by the Committee for a Performance Period and on such other terms and conditions as the Committee shall
determine. 
 “Board” means the Board of Directors of the Company. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
 “Committee” means the Compensation Committee of the Board, or any other committee appointed by the Board to administer the Plan, so long as the committee is comprised of solely of two or more members of the
Board who are “outside directors” within the meaning of Section 162(m). 
 “Company” means Kadant Inc., a Delaware
corporation, or any successor to all or substantially all of the Company’s business. 
 “Eligible Employee” means each
executive officer, officer, or other key employee of the Company or any Subsidiary designated from time to time by the Committee as eligible to participate in the Plan. 
 “Participant” means any Eligible Employee who receives an Award under the Plan for a specified Performance Period. 

 “Performance Goals” means any one or a combination of the following: (i) earnings per
share, (ii) return on average shareholders’ equity or average assets, (iii) earnings, (iv) earnings or earnings per share growth, (v) earnings before interest, taxes and amortization (EBITA), (vi) earnings before
interest, taxes, depreciation and amortization (EBITDA), (vii) operating income, (viii) operating margins, (ix) division income, (x) revenues, (xi) expenses, (xii) stock price, (xiii) market share,
(xiv) return on sales, assets, equity, or investment, (xv) achievement of balance sheet or income statement objectives, (xvi) cash provided from operations, (xvii) stock price appreciation, (xviii) shareholder return,
(xix) strategic initiatives, (xx) cost control, (xxi) net operating profit after tax, (xxii) pre-tax or after-tax income, (xxiii) cash flow, (xxiv) financial ratios contained in the Company’s debt instruments, and
(xxv) any other objective goals established by the Committee, with respect to Awards not required to qualify under Section 162(m). 
 “Performance Period” for an Award means the fiscal year of the Company, unless another period of time for the measurement of the extent to which the applicable Performance Goals are attained is designated by the Committee at the
time the Award is made. 
 “Plan” means the Kadant Inc. Cash Incentive Plan, as amended from time to time. 
 “Section 162(m)” means Section 162(m) of the Code. 
 “Subsidiary” means (i) a corporation or other entity with respect to which the Company, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or
otherwise, to elect at least a majority of the members of such corporation’s board of directors or analogous governing body or (ii) any other corporation or other entity in which the Company, directly or indirectly, has at least a majority
equity or similar interest. 
  

	3.	Administration 

 The Plan shall be administered by the
Committee which shall have full power and authority, in its discretion, but subject to the express provisions of this Plan, to: 
  

	 	•	 	 select Participants from Eligible Employees; 

  

	 	•	 	 establish the terms and conditions of Awards, including the times at which Awards are made, the Performance Period to which an Award relates, and the Performance
Goals to which an Award is subject; 

  

	 	•	 	 determine the extent to which cash payments are actually earned pursuant to Awards and the amounts to be paid; 

  

	 	•	 	 prescribe, amend and rescind rules and regulations relating to the Plan; and 

  

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	 	•	 	 interpret this Plan and make all determinations necessary or advisable for the administration of the Plan. 

 The determinations of the Committee pursuant to its authority under the Plan shall be conclusive, final and binding. No member of the Committee shall be liable for any
action or determination made in good faith with respect to the Plan or any Award. 
  

	4.	Eligibility 

 Awards may be granted to any Eligible Employee.

  

	5.	Awards 

 The Committee shall, in its sole discretion,
determine which Eligible Employees shall receive Awards and shall determine the Performance Period relating to each Award. For each Performance Period applicable to an Award, the Committee shall establish one or more Performance Goals, or any
combination of Performance Goals, applicable to such Award and the other terms and conditions of the Award. Such Performance Goals and other terms and conditions shall be established by the Committee in its sole discretion as it shall deem
appropriate and in the best interests of the Company and shall be established (i) within 90 days after the first day of the Performance Period and (ii) before 25% of the Performance Period has elapsed. 
 Performance Goals may take the form of absolute goals or goals relative to past performance of the Company or the current or past performance of one or more other
companies comparable or similarly situated to the Company or of an index covering multiple companies. To the extent not inconsistent with qualification for an exemption from the deduction limit under Section 162(m), the Committee may specify
that the Performance Goals exclude or be adjusted to reflect any one or more of (i) extraordinary items or other unusual or non-recurring items, (ii) discontinued operations, (iii) gains or losses on the dispositions of operations,
(iv) effects of changes in accounting principles, (v) the write down of any asset or other impairment, (vi) the effect of foreign currency fluctuations, and (vii) charges for restructuring and rationalization programs. The
Committee may establish Performance Goals that are particular to a Participant, or the department, branch, line of business, subsidiary, segment or other unit in which the Participant is employed or for which the Participant has supervisory
responsibility and may cover such Performance Period as specified by the Committee. 
 After the end of each Performance Period for which the Committee has
granted Awards, the Committee shall certify in writing the extent to which the Performance Goals established by the Committee for the Performance Period have been achieved and shall authorize the Company to make Award payments to Participants in
accordance with the terms of the Awards. In no event shall the amount paid to a Participant in accordance with the terms of an Award by reason of Performance Goal achievement exceed $5,000,000 in any calendar year. Award payments shall be made to a
Participant only upon the achievement of the applicable Performance Goals, except that the Committee 

  

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may waive the achievement of Performance Goals in the event of the death, disability, a change in control of the Company or, for Awards not required to
qualify under Section 162(m), such other event as the Committee may deem appropriate. 
 The Committee may at any time, in its sole discretion, cancel
an Award or eliminate or reduce (but not increase) the amount payable pursuant to the terms of an Award without the consent of a Participant. 
 The
Committee shall have the power to impose such other restrictions on Awards as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of
Section 162(m)(4)(C), or any successor provision to such section of the Code. 
  

	6.	Transferability 

 Awards shall not be subject to the claims
of creditors and may not be assigned, alienated, transferred or encumbered in any way other than by will or the laws of descent and distribution. 
  

	7.	Withholding Taxes 

 The Company may withhold or cause to be
withheld from any and all cash payments made under this Plan such amounts as are necessary to satisfy all U.S. federal, state and local withholding tax requirements related to Awards or in accordance with the Company’s payroll practices as from
time to time in effect. 
  

	8.	Amendment and Termination 

 The Committee may amend, modify
or terminate the Plan in any respect at any time without the consent of Participants, provided that (i) no amendment or termination of the Plan may adversely affect any previously-granted Award without the consent of the affected Participant,
except to the extent necessary to comply with Section 409A of the Code, and (ii) no amendment which would require shareholder approval under Section 162(m) may be effected without such shareholder approval. 
  

	9.	Effective Date and Term of the Plan 

 This Plan shall be
effective for the 2007 fiscal year of the Company, which begins December 31, 2006; provided however, that the Plan shall be void ab initio unless approved by a vote of the Company’s Shareholders at the annual shareholders’ meeting of
the Company following adoption of the Plan by the Board and Committee. 
 Unless terminated earlier by action of the Board, the Plan shall expire on the date
of the annual meeting of the Company’s shareholders held in 2012, unless the Plan is extended and reapproved by a vote of the Company’s shareholders at the annual shareholders’ meeting held in 2012. Expiration of the Plan shall not
affect any Awards outstanding on 

  

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the date of the expiration and such Awards shall continue to be subject to the terms of the Plan, notwithstanding its termination. Upon expiration of the
Plan, no further Awards may be granted under the Plan. 
  

	10.	Miscellaneous 

 (a) No Rights to Awards or Employment. This
Plan is not an employment contract between the Company and an Eligible Employee or Participant. No Eligible Employee shall have any claim or right to receive Awards under the Plan. Nothing in the Plan shall confer upon any employee of the Company
any right to continued employment with the Company or any Subsidiary or interfere in any way with the right of the Company or a Subsidiary to terminate the employment of any of its employees at any time, with or without cause, including, without
limitation, any individual who is then a Participant in the Plan. 
 (b) Other Compensation. Nothing in this Plan shall preclude or limit the ability of the
Company to pay any compensation to a Participant under any other additional compensation and benefits plans, programs and arrangements, including, without limitation, any employee benefit plan, equity plan, or bonus plan, program or arrangement.

 (c) Severability. If any provision of this Plan is held unenforceable, the remainder of the Plan shall continue in full force and effect without regard to
such unenforceable provision and shall be applied as though the unenforceable provision were not included in the Plan. In addition, if any provision of this Plan would cause Awards not to constitute “qualified performance-based
compensation” under Section 162(m), that provision shall be severed from, and shall be deemed not to be part of, the Plan, but the other provisions hereof shall remain in full force and effect. Any specific action by the Committee that
would violate Section 162(m) and regulations thereunder shall be void. 
 (d) Governing Law. The Plan and all actions taken under the Plan shall be
governed by and construed in accordance with the laws of the State of Delaware. 
  

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