Document:

ex10-2.htm

EXHIBIT 10.2 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AGREEMENT made effective the __ day of __ , 2012 (the “Effective Date”)

 

BETWEEN:

 

FLINT ENERGY SERVICES LTD.,

a body corporate incorporated under the laws of Alberta

(the “Corporation”)

 

- and -

 

WILLIAM JOHN LINGARD,

an individual residing in Calgary, Alberta

(the “Executive”)

 

(each, a “Party” and collectively, the “Parties”)

 

RECITALS:

 

	
A.

	
The Executive is employed by the Corporation.

 

	
B.

	
Commencing on the Effective Date, the Parties wish to enter into this Agreement to govern the future terms and conditions of the Executive’s employment with the Corporation.

 

NOW, THEREFORE, for good and valuable consideration, including the terms, conditions and covenants hereinafter set forth, the sufficiency of which is hereby acknowledged by the Parties, the Corporation and the Executive agree as follows:

 

	
1.  

	
DEFINITIONS

 

	
1.1  

	
In this Agreement, the following terms shall have the following meanings:

 

	
(a)  

	
“Agreement” means this Executive Employment Agreement;

 

	
(b)  

	
“Act” means the Business Corporations Act (Alberta);

 

	
(c)  

	
“Affiliated” has the meaning set forth in the Act, and “Affiliate” means one of two or more Affiliated bodies corporate, including any subsidiary, parent, division, affiliate, predecessor or successor of the Corporation as at the date in question;

 

	
(d)  

	
“Base Salary” has the meaning set forth in Section 5.2 of this Agreement;

 

	
(e)  

	
“Benefits” has the meaning set forth in Section 7.1 of this Agreement;

 

	
(f)  

	
“Board” means the Board of Directors of the Corporation;

 

	
(g)  

	
“Bonus Payment” has the meaning set forth in Section 6.2 of this Agreement;

 

	
(h)  

	
“Business” means the business carried on by the Corporation or any of its Affiliates at the time in question, including the provision of midstream production services to the oil and gas industry and various other industries, which midstream production services include oil and gas production services, facility infrastructure, fabrication and installation services, oil and gas transportation systems installation services, safety services and all related or ancillary services;

 

  

i

  

	
(i)  

	
“Business Day” means any day other than a Saturday, a Sunday or a day that is a statutory holiday in Alberta;

 

	
(j)  

	
“Cause” has the meaning set forth in Section 11.1 of this Agreement;

 

	
(k)  

	
“Company Property” includes all equipment, automobiles, credit cards, keys, books, literature, reports, materials, tools, devices, records, files, data, tapes, computer programs, diskettes, manuals, software, communications, letters, proposals, memoranda, lists, drawings, blueprints, correspondence, specifications and any other documents and property belonging to the Corporation or any of its Affiliates;

 

	
(l)  

	
“Confidential Information” has the meaning set forth in Section 13.1 of this Agreement;

 

	
(m)  

	
“Discretion” means sole, absolute and unfettered discretion and, when used in reference to the giving of consent, means that the consent may be arbitrarily and unreasonably withheld, conditioned or delayed;

 

	
(n)  

	
“Effective Date” means the date of this Agreement;

 

	
(o)  

	
“Executive Group” has the meaning set forth in Section 18.1 of this Agreement;

 

	
(p)  

	
“Executive’s Notice Period” has the meaning set forth in Section 11.5 of this Agreement;

 

	
(q)  

	
“Good Reason” means, without the Executive’s prior written consent, a reduction in the Base Salary by the Corporation which is not cured by the Corporation within 10 Business Days of the Executive providing written notice to the Corporation of such Good Reason, such written notice to be provided by the Executive to the Corporation within 5 Business Days of the occurrence of the event constituting Good Reason.  If the Executive fails to deliver such notice within such time, there will be no Good Reason;

 

	
(r)  

	
“Intellectual Property” has the meaning set forth in Section 14.1 of this Agreement;

 

	
(s)  

	
“Non-Competition Period” has the meaning set forth in Section 16.1 of this Agreement;

 

	
(t)  

	
“Notice” has the meaning set forth in Section 20.1 of this Agreement;

 

	
(u)  

	
“Party” means either of the Corporation or the Executive and “Parties” means both of them;

 

	
(v)  

	
“Policies” means the policies, procedures and rules established by the Corporation from time to time;

 

	
(w)  

	
“Prior Materials” has the meaning set forth in Section 14.4 of this Agreement;

 

	
(x)  

	
“Said Sections” has the meaning set forth in Section 18.1 of this Agreement;

 

	
(y)  

	
“Separation Package” has the meaning set forth in Section 11.2 of this Agreement;

 

	
(z)  

	
“Term” has the meaning set forth in Section 3.1 of this Agreement; and

 

	
(aa)  

	
“Termination Date” means the last day worked by the Executive hereunder.

 

	
2.  

	
EMPLOYMENT OF EXECUTIVE

 

	
2.1  

	
The Corporation hereby employs the Executive as its Division President on the terms and conditions set forth herein, and the Executive hereby accepts such employment on such terms and conditions. The relationship between the parties is that of employer and employee.

 

  

ii

  

	
3.  

	
TERM OF AGREEMENT

 

	
3.1  

	
This Agreement and the Executive’s employment hereunder shall come into effect on the Effective Date and shall thereafter continue in force indefinitely unless earlier terminated by the Corporation or the Executive as provided for elsewhere herein (the “Term”).

 

	
4.  

	
DUTIES OF EXECUTIVE

 

	
4.1  

	
The Executive acknowledges and agrees that the effective performance of his employment duties requires the highest level of integrity and the Corporation’s complete confidence in the Executive’s relationship with other employees of the Corporation and all of its Affiliates and with all persons dealt with by the Executive in the course of his employment hereunder. The Executive shall at all times conduct himself in a professional, businesslike manner.  The Executive is a fiduciary of the Corporation.

 

	
4.2  

	
The Executive shall, during the Term:

 

	
(a)  

	
report to the Chief Executive Officer or his designate and act consistently with the directions and Policies established from time to time by the Board;

 

	
(b)  

	
perform the duties and responsibilities of Division President, including all those duties and responsibilities customarily performed by persons holding the same or equivalent positions in corporations of a size similar to that of the Corporation, in businesses similar to the Business, in Canada or the United States, as well as such other related duties and responsibilities as may be assigned to the Executive by the Chief Executive Officer or his designate from time to time, acting reasonably, provided such other related duties and responsibilities are consistent with the Executive’s duties as Division President;

 

	
(c)  

	
accept such other or further office or offices to which the Executive may be elected or appointed by the Board (including to an Affiliate of the Corporation) in addition to that of Division President of the Corporation, provided the duties and responsibilities associated with such office or offices shall be consistent with the duties provided for in Section 4.2(b);

 

	
(d)  

	
devote the whole of his working time, attention, efforts and skill to the performance of his employment duties and responsibilities as set forth herein, and truly and faithfully serve the best interests of the Corporation (or an Affiliate of the Corporation, as the case may be) at all times. In particular, but without limiting the generality of the foregoing, the Executive shall not engage in any personal activities or any employment, consulting work, trade or other business activity on his own account or on behalf of any other person, nor shall he invest in or be a shareholder of any other business or person that directly or indirectly competes, conflicts or interferes with the Business or the performance of the Executive’s duties under this Agreement in any way. Notwithstanding the foregoing, it shall not be a violation of this Section 4.2(d) for the Executive to have other business interests that do not directly or indirectly conflict with the Corporation’s affairs or the Executive’s ability to fulfill his duties to the Corporation hereunder (the Executive agreeing to bring to the attention of the Board any potential conflicts of interest), or for the Executive to engage in a voluntary activity or other public service that does not interfere with the Executive’s duties under this Agreement;

 

	
(e)  

	
perform the Executive’s duties primarily from the Corporation’s offices in Calgary, Alberta, or such other geographic location in Canada or the United States as the Corporation and the Executive may agree, both acting reasonably, subject to the Corporation providing the Executive with reasonable advance notice of the relocation, taking into consideration the Executive’s personal circumstances, and further subject to the Corporation paying all reasonable relocation expenses of the Executive and making such adjustments to the Base Salary and Benefits as the Corporation determines, acting reasonably, are required so as to allow the Executive to maintain his standard of living following the relocation; and

 

  

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(f)  

	
conform to all lawful instructions and directions given to him by the Chief Executive Officer or his designate, and comply with and carry out the Policies, existing as at the Effective Date, and as may be modified or added to from time to time, provided that any modified or additional Policies do not materially alter the rights and obligations under this Agreement.

 

	
4.3  

	
The Executive acknowledges and agrees that his hours of work will vary and may be irregular and will be those hours required to meet the objectives of his employment hereunder. The Executive agrees, therefore, to work over the hours defined in applicable employment or labour standards legislation.

 

	
5.  

	
BASE SALARY AND REIMBURSABLE EXPENSES

 

	
5.1  

	
As compensation for the services to be rendered by the Executive hereunder and in consideration for the covenants provided by the Executive hereunder, the Corporation hereby agrees to provide the remuneration and benefits set forth herein.

 

	
5.2  

	
The Corporation shall, during the Term, pay the Executive a salary of $600,000.00 per annum, which amount will be reviewed by the Board from time to time and may be increased (but not decreased) in its Discretion (the “Base Salary”). The Base Salary, less required statutory deductions, shall be payable in equal semi-monthly installments in arrears on the 15th and the last day of each calendar month.

 

	
5.3  

	
The Corporation shall reimburse the Executive for all reasonable out-of-pocket expenses necessarily and actually incurred in the performance of his employment duties hereunder, in accordance with the Policies. Subject to the Policies, all reimbursement of expenses shall be conditional on the Executive submitting to the Corporation an itemized written account and all required vouchers, bills and receipts within a reasonable period of time after the expenses have been incurred, and the Corporation approving the expenses in accordance with the Policies.

 

	
5.4  

	
The Corporation shall be entitled to withhold and remit to the appropriate taxing authorities any amounts required by law to be withheld from payments made to the Executive. The Corporation shall also be entitled to deduct and set-off from any payment due to the Executive at any time amounts owed to the Corporation by the Executive and the Executive consents to such deductions or set-offs.

 

	
6.  

	
BONUS PAYMENT

 

	
6.1  

	
The Corporation has established an incentive compensation program.

 

	
6.2  

	
The Executive shall be entitled to receive an annual bonus payment (the “Bonus Payment”) calculated in accordance with the terms and conditions of the Corporation’s incentive compensation program, as amended from time to time in the Corporation’s Discretion, with a target of 100% of Base Salary.

 

	
7.  

	
BENEFITS

 

	
7.1  

	
The Executive shall be eligible to participate in the benefit plans of the Corporation as they exist from time to time (the “Benefits”), in accordance with the terms of such Benefits. The Executive acknowledges and agrees that, notwithstanding anything else herein, the Corporation may reasonably revise the terms of the Benefits.

 

	
7.2  

	
The Executive shall be entitled to receive a car allowance of $950 per month, which amount will be reviewed by the Board from time to time and may be increased in its Discretion.

 

	
8.  

	
VACATION

 

	
8.1  

	
The Executive shall be entitled to paid vacation of 30 days per year, prorated for partial years, which shall, subject to section 8.2, be taken in such a manner and at such times as the Executive and the Corporation agree, both acting reasonably.

 

  

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8.2  

	
Vacation entitlement shall be calculated by reference to the calendar year. If at the end of any calendar year the Executive has taken less vacation than the entitlement for that year, the Executive may carry a maximum of 10 days of such balance (the remainder being forever forfeited) to the following calendar year, provided such carried forward vacation entitlement must be used in such following year or forever forfeited; provided, however, that in no event shall the Executive receive less than his minimum statutory vacation entitlement under applicable employment standards legislation.

 

	
9.  

	
TAXES

 

	
9.1  

	
The Executive is responsible for the payment of all personal taxes on the Base Salary, Bonus Payments and Benefits.

 

	
10.  

	
ILLNESS AND OTHER CONDITIONS

 

	
10.1  

	
If, in the opinion of the Corporation, acting reasonably, the Executive becomes unable to perform his duties or functions under this Agreement due to illness or disability, the Corporation may appoint another person or persons to undertake such performance on an interim basis on such terms as the Corporation determines, acting in its Discretion and subject to applicable law.

 

	
10.2  

	
Where the Executive is unable to perform the duties hereunder as a result of the illness or disability of the Executive for not more than 119 consecutive days (subject to Section 10.3), the Corporation shall continue to pay the Base Salary, Bonus Payment and the Benefits. If the Executive is unable to perform the duties hereunder as a result of the illness or disability of the Executive for more than 119 consecutive days (subject to Section 10.3), the Corporation shall not be required to pay the Base Salary, Bonus Payment or Benefits commencing on the 120th day for so long as the Executive is unable to perform the duties hereunder, but this Agreement shall, subject always to Section 11.4, continue in effect and the Executive may, if he is entitled pursuant to the Benefits, apply for short-term or long-term disability benefits.

 

	
10.3  

	
If the Executive becomes ill or disabled, then ceases to be ill or disabled before 119 consecutive days have passed, and then becomes disabled again within three (3) weeks due to the same or related illness or injury (as determined in accordance with the long-term disability insurance policy), the period of 119 consecutive days set out in Section 10.2 shall be extended by the number of days during which the Executive ceased to be ill or disabled, and the period of less than three (3) weeks during which the Executive ceased to be ill or disabled shall not be counted when determining the number of consecutive days of illness or disability.

 

 

	
11.  

	
TERMINATION

 

	
11.1  

	
The Corporation may terminate this Agreement and the Executive’s employment hereunder at any time, without notice, pay in lieu of notice or any form of severance or termination pay, whether under this Agreement, statute, common law or otherwise, for Cause. “Cause” means any reason that would entitle the Corporation to terminate the Executive’s employment without notice or payment in lieu of notice at common law or under the provisions of any applicable law or regulation.

 

	
11.2  

	
The Corporation may terminate this Agreement and the Executive’s employment hereunder at any time and for any reason, without Cause, on written notice to the Executive, in which case the Corporation shall, subject to Section 11.7, pay to the Executive a separation package (the “Separation Package”), in a lump sum, equal to 12 months of Base Salary, less required statutory deductions, such Separation Package to be payable forthwith upon termination without any requirement or deduction for mitigation, or as otherwise requested by the Executive so as to maximize any reduction in income tax payable thereon as permitted by the Income Tax Act (Canada) and agreed to by the Corporation, both the Executive and the Corporation acting reasonably.

 

  

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11.3  

	
The Executive acknowledges and agrees that the making of payment pursuant to Section 11.2 shall not prevent the Corporation from alleging Cause for termination.

 

	
11.4  

	
If the Executive suffers a mental or physical disability resulting in the Executive

 

	
(a)  

	
being unable to substantially fulfill his employment obligations hereunder for 119 consecutive days or for 135 days (whether consecutive or not) in any consecutive 24-month period; or

 

	
(b)  

	
being declared by a court of competent jurisdiction to be mentally incompetent or incapable of managing his affairs,

 

the Corporation may terminate this Agreement and the Executive’s employment hereunder by providing at least 30 days’ prior written notice to the Executive, following which the Corporation shall have no further obligation to the Executive, except that the Executive shall continue to be entitled to such insurance benefits as may be provided under any short term or long term disability insurance plan, and to any benefit or entitlement arising from any pension plan of the Corporation (subject always to the terms of such plans).

 

	
11.5  

	
The Executive may terminate this Agreement and his employment hereunder by providing 90 days’ prior written notice to the Corporation (the “Executive’s Notice Period”). The Executive acknowledges and agrees that the Corporation may, in its Discretion, waive all or any part of the Executive’s Notice Period and thereby terminate the Executive’s employment hereunder at any time during the Executive’s Notice Period by paying the Executive a lump sum equivalent to the Base Salary to which the Executive is then entitled prorated for the balance of the Executive’s Notice Period that remains outstanding as at the date on which the Corporation so exercises such waiver, subject to applicable law. For greater certainty, the Executive acknowledges and agrees that if the Corporation so exercises such waiver, the period for which the Corporation will be obligated to provide the said lump sum payment shall not exceed the outstanding balance of the Executive’s Notice Period, regardless of whether the Executive voluntarily elects to provide the Corporation with a period of notice longer than the Executive’s Notice Period.

 

	
11.6  

	
Notwithstanding Section 11.5, the Executive may resign his employment hereunder immediately for Good Reason, in which case the Executive shall be entitled to the Separation Package, subject to Section 11.7.

 

	
11.7  

	
Payment of the Separation Package set forth in Section 11.2:

 

	
(a)  

	
shall represent full and final settlement of any and all claims of the Executive against the Corporation and all of the Affiliates of the Corporation arising out of or in any way connected to the Executive’s employment hereunder and the termination of such employment, whether such claims arise at law (including under employment standards legislation and in respect of the common law regarding wrongful termination), in equity or otherwise, provided that if the minimum statutory requirements as at the Termination Date provide for any right or benefit in excess of that provided for in such Section 11.2, such statutory requirements will replace the payments set forth in such Section 11.2; and

 

	
(b)  

	
shall be subject to:

 

	
(i)  

	
the Executive having executed a release and indemnity in favour of the Corporation and all of the Affiliates of the Corporation, in a form acceptable to the Corporation and the Executive, both acting reasonably;

 

	
(ii)  

	
the Executive having complied with his obligations pursuant to Sections 13.8, 14.7 and 15.1, including having executed the statutory declarations required pursuant to such Sections, each in a form acceptable to the Corporation, acting reasonably;

 

	
(iii)  

	
the Executive having tendered his resignation from all positions he may hold as officer or director of the Corporation and any Affiliate of the Corporation; and

 

  

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(iv)  

	
the Corporation making all withholdings required by law.

 

	
11.8  

	
This Agreement and the Executive’s employment hereunder shall automatically terminate on the death of the Executive.

 

12.           EFFECT OF TERMINATION

 

	
12.1  

	
Notwithstanding any other term or provision of this Agreement, the Executive shall, on termination of his employment hereunder for any reason:

 

	
(a)  

	
be paid the Base Salary and Benefits earned up to and including the Termination. Date, and be reimbursed for expenses incurred prior to the Termination Date pursuant to Section 5.3, all in accordance with this Agreement; and

 

	
(b)  

	
immediately resign all offices held (including directorships) in the Corporation and any Affiliate of the Corporation, failing which the Corporation is hereby irrevocably authorized to appoint some person in the Executive’s name and on his behalf to sign any documents and do any things necessary to give effect to the foregoing.

 

	
12.2  

	
The Parties agree that because there can be no exact measure of the damages that would be suffered by the Executive as a result of the Corporation terminating the Executive’s employment hereunder, the Separation Package provided for in Section 11.2 shall be deemed to constitute liquidated damages and not a penalty.

 

	
12.3  

	
The Executive shall, if requested by the Corporation, reasonably cooperate in and assist with the transfer of his duties and responsibilities to a replacement on the termination of his employment hereunder.

 

	
12.4  

	
Except as otherwise expressly provided for herein, all Benefits, plans and insurance coverages shall cease effective on the Termination Date.

 

	
13.  

	
CONFIDENTIAL INFORMATION

 

	
13.1  

	
“Confidential Information” means all information relating to the Business, in whatever form or medium, disclosed directly or indirectly by the Corporation or an Affiliate of the Corporation to the Executive or otherwise acquired by the Executive in the course of his employment with the Corporation other than information that (a)  the Corporation advises in writing is not considered Confidential Information; (b) at the time of disclosure is in the public domain through no fault of the Executive; or (c) the Executive can prove was in his possession at the time of disclosure and was not acquired directly or indirectly from the Corporation or an Affiliate of the Corporation or from any third party under any confidentiality obligation to the Corporation or an Affiliate of the Corporation. Without limiting the generality of the foregoing, subject to any disclosure requirements of any regulatory authority having jurisdiction, the terms of this Agreement (but not the fact of its existence) shall be considered Confidential Information and are proprietary and confidential to the Corporation. The Executive may disclose the terms of this Agreement to his spouse, provided his spouse agrees to maintain the confidentiality of the terms of this Agreement in the manner required by this Section 13.1.

 

	
13.2  

	
The Executive acknowledges and agrees that all Confidential Information disclosed to him will be so disclosed exclusively for the purpose of permitting him to carry out his employment duties hereunder; that the Executive shall acquire no right, title or interest in any of the Confidential Information by virtue of such disclosure; and that all Confidential Information is and shall remain the exclusive property of the Corporation or an Affiliate of the Corporation, as the case may be.

 

	
13.3  

	
The Executive shall use the Confidential Information only to carry out his employment duties hereunder, and may disclose the Confidential Information only:

 

  

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(a)  

	
to those persons who need to know the Confidential Information and who agree to keep confidential the Confidential Information on terms substantially the same as are set forth in this Article 13;

 

	
(b)  

	
to his legal advisors, provided such advisors agree to maintain the confidentiality of the Confidential Information in the manner required by this Article; and

 

	
(c)  

	
as required to be disclosed under applicable law, securities exchange rules or policies of regulatory authorities having jurisdiction, as advised by the Corporation’s legal advisors, provided that, in such instance, the disclosure shall be subject to Section 13.6.

 

	
13.4  

	
Except as hereinbefore provided, the Executive shall ensure the Confidential Information is not disclosed by the Executive to any person without the prior written consent of the Corporation, acting reasonably.

 

	
13.5  

	
The Executive’s efforts to prevent disclosure of the Confidential Information shall in no event be less than those he would be reasonably expected to take to prevent disclosure of his own confidential information of like significance.

 

	
13.6  

	
If the Executive is required to disclose the Confidential Information or any part thereof as provided for in Section 13.3(c), he shall notify the Corporation promptly on being made aware of the requirement and, in any event, prior to disclosure, so the Corporation may seek such protective order or other remedy as it deems appropriate, acting in its Discretion. If a protective order or other appropriate remedy is obtained, the Executive will disclose the Confidential Information only as required by such protective order or remedy. If no protective order or other appropriate remedy is obtained, the Executive shall disclose only that portion of the Confidential Information that he is advised by the Corporation’s legal advisors is legally required to be disclosed, and shall exercise all reasonable efforts to obtain reliable assurances that confidential treatment will be accorded the Confidential Information so disclosed.

 

	
13.7  

	
The Executive shall advise the Corporation forthwith of any unauthorized disclosure or use of any Confidential Information of which he becomes aware.

 

	
13.8  

	
Forthwith on the termination of this Agreement for any reason, the Executive shall return the Confidential Information to the Corporation and erase or otherwise destroy all copies of the Confidential Information in his possession or within his power or control. The Executive shall, at the time of the return of the Confidential Information, provide the Corporation with a statutory declaration attesting he has complied with the foregoing requirements.

 

	
14.  

	
INTELLECTUAL PROPERTY

 

	
14.1  

	
“Intellectual Property” means all intellectual property conceived, originated or prepared by the Executive in the course of his employment with the Corporation and for a reasonable period of time thereafter, whether in tangible or intangible form, and all copies thereof; in any form whatsoever, and all rights, title and interest therein and thereto developed, acquired, or of which knowledge is acquired by the Executive, either alone or in conjunction with any other person (including the Corporation and any one or more Affiliates of the Corporation), in connection with, or in any way related to, the course of his employment hereunder.

 

	
14.2  

	
Nothing contained herein expressly or impliedly grants to the Executive any right, title or license in any of the Intellectual Property other than that necessary, on a temporary basis, for him to carry out his employment duties hereunder. The Corporation is and shall be and remain the sole owner of the Intellectual Property, holding all rights, title and interest therein and thereto. To the extent the Executive holds or obtains any rights, title or interest in or to the Intellectual Property, the Executive hereby irrevocably assigns such to the Corporation. The Executive hereby waives all moral rights in any copyright works authored or co-authored by the Executive that are produced in the course of his employment hereunder.

 

  

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14.3  

	
The filing and prosecution of all patent, industrial design, trade mark, copyright and other like applications arising in connection with the Intellectual Property shall be solely under the control and at the expense of the Corporation, and all such applications, as well as all registrations resulting therefrom, shall be solely and exclusively the property of the Corporation. The Executive shall provide, both during the Term and for a reasonable period of time thereafter, all necessary information, materials and assistance to enable the Corporation to proceed with the filing and prosecution of such applications. Without restricting the generality of the foregoing, the Executive shall execute all documents required to effect the legal and beneficial transfer of the Intellectual Property to the Corporation, and to waive any and all moral rights therein and thereto.

 

	
14.4  

	
Nothing in this Agreement affects the ownership of specific materials, data, specifications, methods and software of the Executive that existed prior to the execution of the Original Agreement and that are used by the Executive in the course of his employment hereunder (“Prior Materials”), provided the Prior Materials are clearly and specifically identified as such prior to or concurrent with the execution of this Agreement. The Corporation shall have a royalty free, fully paid-up, world wide, perpetual, irrevocable, unrestricted, non-exclusive right and license to use any Prior Materials during the Term.

 

	
14.5  

	
The Executive shall promptly give notice to the Corporation of any Intellectual Property in connection with which a suit for infringement could reasonably be brought. Following the giving of such notice to the Corporation, the Executive shall not use any such Intellectual Property without the prior written consent of the Corporation, acting in its Discretion.

 

	
14.6  

	
The Executive shall not attack, nor shall he directly or indirectly assist any other person in attacking, the validity of any of the Intellectual Property. The Executive shall assist the Corporation in all intellectual property proceedings and litigation, whether before tribunals, boards, judicial authorities or courts.

 

	
14.7  

	
Forthwith on the termination of this Agreement for any reason, the Executive shall return the Intellectual Property to the Corporation and erase or otherwise destroy all copies of the Intellectual Property in his possession or within his power or control. The Executive shall, at the time of the return of the Intellectual Property, provide the Corporation with a statutory declaration attesting that he has complied with the foregoing requirements.

 

	
15.  

	
COMPANY PROPERTY

 

	
15.1  

	
The Executive acknowledges and agrees that he may already be in possession of or may in the future acquire Company Property pursuant to his employment with the Corporation, and that the Company Property is and shall remain the sole and exclusive property of the Corporation or an Affiliate of the Corporation, as the case may be. On the termination of this Agreement for any reason, the Executive shall promptly return to the Corporation or the Affiliate of the Corporation, as the case may be, in good condition, all Company Property and all copies or reproductions thereof that have come into the Executive’s possession or control. The Executive shall, at the time of return of the Company Property, provide the Corporation with a statutory declaration attesting that he has complied with the foregoing requirements.

 

  

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16.  

	
NON-COMPETITION

 

	
16.1  

	
The Executive acknowledges and agrees that in performing the duties and responsibilities of his employment hereunder, he shall occupy a position of high fiduciary trust and confidence, pursuant to which he shall develop and acquire wide experience and knowledge with respect to all aspects of the Business and the manner in which such is conducted. It is the express intent and agreement of the Executive and the Corporation that such experience and knowledge shall be used solely and exclusively in furtherance of the Business and not in any manner detrimental to the Corporation or any Affiliate of the Corporation. The Executive agrees, therefore, that for as long as he is employed hereunder and for a period of one year following the termination of this Agreement and the Executive’s employment for whatever reason (the “Non-Competition Period”), he shall not be engaged in, either directly or indirectly, in any manner, including as officer, director, shareholder, owner, partner, member, joint venturer, employee, independent contractor, consultant, advisor or sales representative, any practice, business or enterprise that competes, directly or indirectly, with the Business in any jurisdiction in which the Business is conducted or proposed to be conducted as at the Termination Date.

 

	
17.  

	
NON-DISCLOSURE AND NON-SOLICITATION

 

	
17.1  

	
The Executive acknowledges and agrees that for as long as he is employed hereunder, he shall not solicit, initiate or encourage proposals or offers from, or provide information concerning the Corporation or any Affiliate of the Corporation to, any person in connection with or relating to any acquisition of all or any material part of the Corporation’s or any Affiliate’s assets or issued and outstanding shares, or any amalgamation, merger, arrangement, take-over bid, reorganization, re-capitalization, liquidation, winding-up or other business combination or similar transaction involving the Corporation or any Affiliate of the Corporation, without in each case obtaining the prior written consent of the Board, except that this provision shall not apply to the sale by the Executive of any shares of the Corporation owned by him.

 

	
17.2  

	
The Executive acknowledges and agrees that he will acquire Confidential Information and other sensitive information pursuant to his employment hereunder that would cause irreparable harm to the Corporation or the Affiliates of the Corporation if disclosed to a competitor or used for competitive purposes. Accordingly, the Executive agrees that neither he nor any employee or agent of the Executive shall, during the Term and for a period of two years from the Termination Date, in any jurisdiction in which the Corporation carries on the Business as at the Termination Date:

 

	
(a)  

	
solicit, entice or attempt to solicit or entice, either directly or indirectly, any customer or prospective customer of the Corporation or any one or more of the Affiliates of the Corporation as at the Termination Date or within the 24-month period prior thereto to become a customer of any business or enterprise that competes with the Business; or

 

	
(b)  

	
solicit, entice, or attempt to solicit or entice, either directly or indirectly, any employee or contractor of the Corporation or any Affiliate of the Corporation as at the Termination Date to become employed or retained by or connected with any other business or enterprise.

 

  

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18.  

	
REMEDIES

 

	
18.1  

	
The Executive acknowledges and agrees that the Corporation and the Affiliates of the Corporation will suffer irreparable harm if the Executive breaches any of his obligations under Articles  13, 14, 15, 16 and 17 (the “Said Sections”), and that monetary damages would be impossible to quantify and, in any event, inadequate to compensate the Corporation and the Affiliates of the Corporation for such a breach. Accordingly, the Executive agrees that, in the event of a breach or a threatened breach by the Executive, or by any or all of his partners, employees, servants, agents, representatives or other persons directly or indirectly acting for, on behalf of, or with, the Executive (individually and collectively, the “Executive Group”), of any of the provisions of the Said Sections, the Corporation and the Affiliates of the Corporation shall be entitled to obtain, in addition to any other rights, remedies or damages available to them at law, in equity or otherwise, an interim, interlocutory and/or permanent injunction and/or specific performance, without having to prove actual damages or post bond, in order to prevent or restrain such breach or threatened breach by the Executive Group.

 

	
18.2  

	
The Executive acknowledges and agrees that:

 

	
(a)  

	
the obligations set forth in the Said Sections do not in any way mitigate or reduce the fiduciary or common law obligations of the Executive to the Corporation with respect to the Confidential Information, the Intellectual Property, the Company Property, non-competition, non-disclosure or non-solicitation;

 

	
(b)  

	
all restrictions contained in the Said Sections are reasonable and valid; and

 

	
(c)  

	
if, notwithstanding Section 18.2(b), a court of competent jurisdiction finally determines that the temporal or geographical scope of any one or more of the restrictions set forth in the Said Sections is unreasonable, the restrictions set forth in the Said Sections shall be reduced as to term or geographical scope or both or otherwise to the extent determined by the Corporation, in its Discretion, so that the Said Sections are enforceable at law, with the unenforceable portion of the Said Sections being deemed to be severed from the balance of the Said Sections.

 

	
18.3  

	
Notwithstanding anything else herein, the Executive acknowledges and agrees that if he violates any of his covenants or agreements hereunder, the Corporation shall be entitled to an accounting and repayment of all profits, compensation, royalties, commissions, remuneration or benefits that the Executive directly or indirectly shall have realized or may realize relating to, arising from or connected with any such violations. This remedy shall be in addition to and not in limitation of any injunctive relief or other right or remedy to which the Corporation is or may be entitled at law, in equity or otherwise.

 

	
19.  

	
INDEMNIFICATION

 

	
19.1  

	
Subject to the requirements of the Act, the Corporation shall indemnify and save harmless the Executive from and against any personal liability he incurs as a result of performing his employment duties pursuant hereto, provided he acted honestly and in good faith with a view to the best interests of the Corporation (or an Affiliate of the Corporation, as the case may be) and, in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, had reasonable grounds for believing his conduct was lawful, other than any liability:

 

	
(a)  

	
the Corporation is prohibited by law from assuming; or

 

	
(b)  

	
of the Executive to the Corporation or any Affiliate of the Corporation arising from this Agreement or the Executive’s employment hereunder.

 

	
19.2  

	
The foregoing shall not be deemed exclusive of any other rights to which the Executive may be entitled pursuant to the articles or by-laws of the Corporation, any valid and lawful agreement, any vote of members or disinterested directors, or otherwise, both as to action in his official capacity and action in any other capacity while employed hereunder, provided the total indemnity to the Executive shall in no event exceed his total cost or liability.

 

  

xi

  

	
19.3  

	
The Executive shall indemnify, defend and hold harmless the Corporation, all Affiliates of the Corporation and their respective directors, officers, agents, employees, independent contractors, advisors, Affiliates, successors and assigns and those for whom it is or they or any of them are responsible at law against and in respect of any and all claims, charges, taxes, penalties or demands that may be made by the Canada Revenue Agency or other governing authority requiring the Corporation or any Affiliate of the Corporation, to make payment in respect of taxes payable by the Executive in excess of the taxes withheld by the Corporation or any Affiliate of the Corporation.

 

	
19.4  

	
The Corporation shall purchase and maintain directors and officers liability insurance for the period of the Executive’s employment and for that period of time equal to the Non- Competition Period (as defined in Section 16.1) following the termination of the Executive’s employment, which insurance shall be for the benefit of the Executive with respect to any liability incurred by the Executive in his capacity as an employee or officer of the Corporation, except where the liability relates to the Executive’s failure to act honestly and in good faith with a view to the best interests of the Corporation, and provided that such insurance can be obtained by the Corporation on reasonable terms and for reasonable premiums.

 

	
20.  

	
NOTICE

 

	
20.1  

	
Any notice or other communication required or permitted to be made under this Agreement (“Notice”) shall be in writing and shall be deemed to have been properly made if delivered personally or by prepaid courier, or sent by registered mail, fax or other electronic means, addressed to the appropriate party as follows:

 

	
(a)  

	
if to the Corporation:

 

Flint Energy Services Ltd.

Attention: Sean James

700, 300-5th Avenue S.W.

Calgary, Alberta

T2P 3C4

Canada

 

Tel:           (403) 218-7157

E-mail:                       JSean@flintenergy.com

	
(b)  

	
if to the Executive:

 

William John Lingard

 

Office: 700, 300 - 5th Avenue S.W. Calgary, Alberta T2P 3C4

Home: 40 Sterling Springs Crescent S.W. Calgary, Alberta T3Z 3J6

Home Phone: (403) 547-4609

Office Phone: (403) 218-7188

Email: blingard@flintenergy.com

	
20.2  

	
Every Notice shall be deemed to have been given and received on the date of delivery if delivered personally, on the next Business Day following transmission if sent by fax or other electronic means, and on the fifth Business Day following the registered mailing thereof; provided that if there shall be, prior to the deemed receipt of a Notice, a mail strike or other labour dispute that might affect the delivery of such Notice by the mail, then such Notice shall only be effective if delivered personally, or by fax or other electronic means.

 

	
20.3  

	
Either Party may change its address for notice by sending notice of the change of address to the other Party in the manner set forth above. Neither Party shall prevent, hinder or delay, or attempt to prevent, hinder or delay the service on that Party of a Notice.

 

  

xii

  

	
21.  

	
GENERAL

 

	
21.1  

	
Entire Agreement and Modifications. The Parties confirm and agree that this Agreement (including the recitals hereto) constitutes the entire and complete agreement between them, superseding and replacing all previous written and all previous, present and future oral communications, negotiations, representations, understandings and agreements between the Parties with respect to the subject matter hereof. This Agreement may not be modified except by agreement of both Parties in writing.

 

	
21.2  

	
Governing Law. This Agreement and all modifications hereto shall, in all respects, be subject to and interpreted, construed and enforced in accordance with the laws of the province of Alberta and the laws of Canada applicable therein. Each Party attorns to and accepts the exclusive jurisdiction of the courts of Alberta for all purposes.

 

	
21.3  

	
Headings. Headings of the Sections hereof are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

 

	
21.4  

	
Extended Meanings. Words importing the singular number include the plural and vice versa, words importing the masculine gender include the feminine and neutral genders, the term “including” means “including, without limitation,” and the terms “include” and “includes” have similar meanings, all as the context may require. “Person” includes an individual, partnership, association, company, body corporate, syndicate, society, trust, trustee, executor, administrator and legal representative. Words such as “hereunder”, “hereto” and “herein” shall, unless the context clearly indicates to the contrary, refer to the whole of this Agreement and not to any particular section or part thereof. All references to legislation are to such legislation as amended or substituted from time to time. The word “dollar” and the symbol “$” indicate Canadian currency.

 

	
21.5  

	
Time of Day and Time. Except as otherwise expressly set forth herein, references to time of day or date mean the local time or date in Alberta. Time is of the essence to the performance of the Parties’ obligations under this Agreement.

 

	
21.6  

	
Severability. Should any provision of this Agreement be finally determined by a court of competent jurisdiction to be illegal, void or otherwise unenforceable, such provision shall be severed from the rest of this Agreement, and the rest of this Agreement shall remain in full force and effect and be binding on the Parties as though such provision had never been included.

 

	
21.7  

	
Waiver. No delay or omission by either Party to exercise any right, remedy or power occurring on any non-compliance or default by the other Party with respect to any of the terms or conditions of this Agreement shall impair any such right, remedy or power or be construed to be a waiver thereof. The terms and conditions of this Agreement may be waived only in writing and only by the Party entitled to the benefit of the terms or conditions being waived. A waiver by either Party of a breach of any of the covenants, conditions or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement herein contained, whether or not similar.

 

	
21.8  

	
Remedies Cumulative. All rights and remedies provided for in this Agreement shall be cumulative and in addition to and not in lieu or limitation of any other rights or remedies available to either Party at law, in equity or otherwise. No single or partial exercise by a Party of any right or remedy precludes or otherwise affects the exercise of the remainder or of any other right or remedy to which that Party may be entitled.

 

	
21.9  

	
Assignment. The Parties shall not assign this Agreement without the written consent of the other Party.

 

	
21.10  

	
Further Assurances. Each Party shall, from time to time and at all times, promptly do all such further acts and execute and deliver all such further documents and assurances as shall be reasonably required in order to perform and carry out the terms of this Agreement.

 

  

xiii

  

	
21.11  

	
Survival. Any term, condition or provision hereof that requires fulfilment or performance, or that is, by its nature, applicable after the termination or expiry of this Agreement and the employment relationship created hereby, including Articles 1, 5, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 21, shall survive such termination or expiry and remain in full force and effect. The termination of any provision of this Agreement shall not excuse a prior breach of that provision.

 

	
21.12  

	
Enurement. This Agreement shall enure to the benefit of and be binding on the Parties and their respective successors and assigns.

 

	
21.13  

	
Facsimile; Counterparts. This Agreement may be executed originally or by facsimile and may be executed in counterparts, each of which when so executed shall be deemed to be an original and both of which shall together constitute one and the same instrument, which shall be sufficiently evidenced by either such original counterpart.

 

IN WITNESS WHEREOF the Parties acknowledge and agree they have read and understand the terms of this Agreement and have had an opportunity to seek independent legal advice prior to entering into this Agreement, and that they have executed this Agreement with full force and effect on the Effective Date.

 

	 	

FLINT ENERGY SERVICES LTD.

	 
	 	 	 	 
	
 

	
Per: 

	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

SIGNED, SEALED & DELIVERED in

the presence of:

 

 

	 	 	 	 	 
	
 

	 	 	
 

	 
	
Witness

	 	 	
WILLIAM JOHN LINGARD

	 
	
 

	 	 	
 

	 
	 	 	 	 	 
	 	 	 	 	 
	Witness	 	 	 	 

xivExhibit 10.1

THE WASHINGTON POST COMPANY 

2012 INCENTIVE
COMPENSATION PLAN 

(Dated of as
February 23, 2012) 

1.            Purpose of the Plan  

This Plan is intended
to promote the interests of the Company and its shareholders by providing the
employees and directors of the Company with incentives and rewards to encourage
them to continue in the service of the Company and with a proprietary interest
in pursuing the long-term growth, profitability and financial success of the
Company. 

2.            Definitions   

As
used in the Plan or in any instrument governing the terms of any Incentive
Award, the following definitions apply to the terms indicated below: 

(a)     “Board of Directors” means
the Board of Directors of TWPC. 

(b)     “Cash Incentive Award”
means an award granted pursuant to Section 8 of the Plan. 

(c)     “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and all regulations,
interpretations and administrative guidance issued thereunder. 

(d)     “Committee” means the
Compensation Committee of the Board of Directors or such other committee as the
Board of Directors shall appoint from time to time to administer the Plan and
to otherwise exercise and perform the authority and functions assigned to the
Committee under the terms of the Plan. 

(e)     “Common Stock” means TWPC’s
Class B Common Stock, $0.01 par value per share, or any other security into
which the common stock shall be changed pursuant to the adjustment provisions
of Section 10 of the Plan. 

(f)      “Company” means TWPC and
all of its Subsidiaries, collectively. 

(g)     “Covered Employee” means
each Participant who is an executive officer (within the meaning of Rule 3b-7
under the Exchange Act) of TWPC. 

(h)     “Deferred Compensation
Plan” means any plan, agreement or arrangement maintained by the Company from time
to time that provides opportunities for deferral of compensation. 

(i)      “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 

(j)      “Fair Market Value” means,
with respect to a share of Common Stock, as of the applicable date of determination
(i) the average of the high and low sales prices on the date of
determination or, if not so reported for such day, the immediately preceding
business day of a share of Common Stock as reported on the principal securities
exchange on which shares of Common Stock are then listed or admitted to trading
or (ii) if not so reported, the average of the closing bid and ask prices
on the date of determination or, if not so reported for such day, on the
immediately preceding business day as reported on the National Association of
Securities Dealers Automated Quotation System or (iii) if not so reported,
as furnished by any member of the National Association of Securities Dealers,
Inc. selected by the Committee. In the event that the price of a share of Common
Stock shall not be so reported, the Fair Market Value of a share of Common
Stock shall be determined by the Committee in its sole discretion. 

(k)     “Incentive Award” means one
or more Stock Incentive Awards and Cash Incentive Awards, collectively. 

(l)      “Option” means a stock
option to purchase shares of Common Stock granted to a Participant pursuant to
Section 6. 

(m)    “Other Stock-Based Award”
means an award granted to a Participant pursuant to Section 7. 

(n)     “Participant” means an
employee or director of the Company who is eligible to participate in the Plan
and to whom one or more Incentive Awards have been granted pursuant to the Plan
and have not been fully settled or cancelled and, following the death of any
such Person, his successors, heirs, executors and administrators, as the case
may be. 

 

 

 

(o)     “Performance-Based
Compensation” means compensation that satisfies the requirements of
Section 162(m) of the Code for deductibility of “qualified
performance-based compensation.” 

(p)     “Performance Measures”
means such measures as are described in Section 9 on which performance
goals are based in order to qualify certain awards granted hereunder as
Performance-Based Compensation. 

(q)     “Performance Percentage”
means the factor determined pursuant to a Performance Schedule that is to be
applied to a Target Award and that reflects actual performance compared to the
Performance Target. 

(r)     “Performance Period” means
the period of time during which Performance Targets must be met in order to
determine the degree of payout and/or vesting with respect to an Incentive
Award that is intended to qualify as Performance-Based Compensation.
Performance Periods may be overlapping. 

(s)     “Performance Schedule”
means a schedule or other objective method for determining the applicable
Performance Percentage to be applied to each Target Award. 

(t)     “Performance Target” means
performance goals and objectives with respect to a Performance Period. 

(u)     “Person” means a “person”
as such term is used in Section 13(d) and 14(d) of the Exchange Act,
including any “group” within the meaning of Section 13(d)(3) under the
Exchange Act. 

(v)     “Plan” means this 2012
Incentive Compensation Plan, as it may be amended from time to time. 

(w)    “Securities Act” means the
Securities Act of 1933, as amended. 

(x)     “Stock Incentive Award”
means an Option or Other Stock-Based Award granted pursuant to the terms of the
Plan. 

(y)     “Subsidiary” means any
“subsidiary” within the meaning of Rule 405 under the Securities Act. 

(z)     “Target Award” means target
payout amount for an Incentive Award. 

(aa)   “TWPC” means The Washington
Post Company, a Delaware corporation. 

3.            Stock Subject to the
Plan and Limitations on Cash Incentive Awards  

(a)     Stock Subject to the
Plan  

The maximum number of
shares of Common Stock that may be covered by Incentive Awards granted under
the Plan shall not exceed 500,000 shares of Common Stock in the aggregate. The
shares referred to in the preceding sentence of this paragraph shall be subject
to adjustment as provided in Section 10 and the following provisions of
this Section 3. Shares of Common Stock issued under the Plan may be either
authorized and unissued shares or treasury shares, or both, at the sole
discretion of the Committee. 

For purposes of the
preceding paragraph, shares of Common Stock covered by Incentive Awards shall
only be counted as used to the extent they are actually issued and delivered to
a Participant (or such Participant’s permitted transferees as described in the
Plan) pursuant to the Plan. For purposes of clarification, in accordance with
the preceding sentence if an Incentive Award is settled for cash or if shares
of Common Stock are withheld to pay the exercise price of an Option or to
satisfy any tax withholding requirement in connection with an Incentive Award,
only the shares issued (if any), net of the shares withheld, will be deemed
delivered for purposes of determining the number of shares of Common Stock that
are available for delivery under the Plan. In addition, if shares of Common
Stock are issued subject to conditions which may result in the forfeiture,
cancellation or return of such shares to the Company, any portion of the shares
forfeited, cancelled or returned shall be treated as not issued pursuant to the
Plan. In addition, if shares of Common Stock owned by a Participant (or such
Participant’s permitted transferees as described in the Plan) are tendered
(either actually or through attestation) to the Company in payment of any
obligation in connection with an Incentive Award, the number of shares tendered
shall be added to the number of shares of Common Stock that are available for
delivery under the Plan. Shares of Common Stock covered by Incentive Awards
granted pursuant to the Plan in connection with the assumption, replacement,
conversion or adjustment of outstanding equity-based awards in the context of a
corporate acquisition or merger (within the meaning of Section 303A.08 of
the New York Stock Exchange Listed Company Manual) shall not count as used
under the Plan for purposes of this Section 3. 

 

 

 

 

 

(b)     Individual Award Limits
 

Subject to adjustment
as provided in Section 10, the maximum number of shares of Common Stock
that may be covered by Incentive Awards granted under the Plan to any Covered
Employee in any calendar year shall not exceed 50,000 shares. The amount
payable to any Covered Employee with respect to any calendar year for all Cash
Incentive Awards shall not exceed $25 million. For purposes of the preceding
sentences, the phrase “amount payable with respect to any calendar year” means
the amount of cash, or value of other property, required to be paid based on
the achievement of applicable Performance Measures during a Performance Period
that ends in a calendar year, disregarding any deferral pursuant to the terms
of a Deferred Compensation Plan unless the terms of the deferral are intended
to comply with the requirements for performance-based compensation under
Section 162(m) of the Code. 

4.            Administration of the
Plan  

The Plan shall be
administered by a Committee of the Board of Directors consisting of two or more
persons, each of whom qualifies as a “non-employee director” (within the
meaning of Rule 16b-3 promulgated under Section 16 of the Exchange Act),
an “outside director” within the meaning of Treasury Regulation Section 1.162-27(e)(3)
and as “independent” within the meaning of any applicable stock exchange
listing rules or similar regulatory authority. The Committee shall, consistent
with the terms of the Plan, from time to time designate those employees and
directors of the Company who shall be granted Incentive Awards under the Plan
and the amount, type and other terms and conditions of such Incentive Awards.
All of the powers and responsibilities of the Committee under the Plan may be
delegated by the Committee to any subcommittee thereof. In addition, the
Committee may from time to time authorize a subcommittee consisting of one or
more members of the Board of Directors (including members who are employees of
the Company) or employees of the Company to grant Incentive Awards, subject to
such restrictions and limitation as the Committee may specify and to the
requirements of Delaware General Corporation Law Section 157. 

The Committee shall
have full discretionary authority to administer the Plan, including
discretionary authority to interpret and construe any and all provisions of the
Plan and the terms of any Incentive Award (and any agreement evidencing any
Incentive Award) granted thereunder and to adopt and amend from time to time
such rules and regulations for the administration of the Plan as the Committee
may deem necessary or appropriate. Without limiting the generality of the
foregoing, the Committee shall determine whether an authorized leave of
absence, or absence in military or government service, shall constitute termination
of employment. The employment of a Participant with the Company shall be deemed
to have terminated for all purposes of the Plan if such Participant is employed
by or provides services to a Person that is a Subsidiary of the Company and
such Person ceases to be a Subsidiary of the Company, unless the Committee
determines otherwise. A Participant who ceases to be an employee of the Company
but continues, or simultaneously commences, services as a director of the
Company shall not be deemed to have had a termination of employment for
purposes of the Plan. Decisions of the Committee shall be final, binding and
conclusive on all parties. 

On or after the date
of grant of an Incentive Award under the Plan, the Committee may
(i) accelerate the date on which any such Incentive Award becomes vested,
exercisable or transferable, as the case may be, (ii) extend the term of
any such Incentive Award, including, without limitation, extending the period
following a termination of a Participant’s employment during which any such
Incentive Award may remain outstanding, (iii) waive any conditions to the
vesting, exercisability or transferability, as the case may be, of any such
Incentive Award or (iv) provide for the payment of dividends or dividend
equivalents with respect to any such Incentive Award; provided, that the
Committee shall not have any such authority to the extent that the grant of
such authority would cause any tax to become due under Section 409A of the
Code. Notwithstanding anything herein to the contrary, the Company shall not
reprice any stock option (within the meaning of Section 303A.08 of the New
York Stock Exchange Listed Company Manual) without the approval of the
shareholders of TWPC. 

The Company shall pay
any amount payable with respect to an Incentive Award in accordance with the
terms of such Incentive Award, provided that the Committee may, in its
discretion, defer the payment of amounts payable with respect to an Incentive
Award subject to and in accordance with the terms of a Deferred Compensation
Plan. 

No member of the
Committee shall be liable for any action, omission, or determination relating
to the Plan, and TWPC shall indemnify and hold harmless each member of the
Committee and each other director or employee of the Company to whom any duty
or power relating to the administration or interpretation of the Plan has been
delegated, against any cost or expense (including counsel fees) or liability
(including any sum paid in settlement of a claim with the approval of the
Committee) arising out of any action, omission or determination relating to the
Plan, unless, in either case, such action, omission or determination was taken
or made by such member, director or employee in bad faith and without
reasonable belief that it was in the best interests of the Company. 

 

 

 

 

 

5.            Eligibility   

The Persons who shall
be eligible to receive Incentive Awards pursuant to the Plan shall be those
employees and directors of the Company whom the Committee shall select from
time to time. Each Incentive Award granted under the Plan shall be evidenced by
an instrument in writing in form and substance approved by the Committee. 

 

6.            Options   

The
Committee may from time to time grant Options, subject to the following terms
and conditions: 

(a)     Exercise Price  

The exercise price
per share of Common Stock covered by any Option shall be not less than 100% of
the Fair Market Value of a share of Common Stock on the date on which such
Option is granted. 

(b)     Term and Exercise of
Options  

(1)
Each Option shall become vested and exercisable on such date or dates, during
such period and for such number of shares of Common Stock as shall be
determined by the Committee on or after the date such Option is granted; provided,
however  that no Option shall be exercisable after the expiration of ten
years from the date such Option is granted; and, provided, further,
that each Option shall be subject to earlier termination, expiration or
cancellation as provided in the Plan or in the agreement evidencing such
Option. 

(2) Each Option may
be exercised in whole or in part; provided, however  that no
partial exercise of an Option shall be for an aggregate exercise price of less
than $1,000. The partial exercise of an Option shall not cause the expiration,
termination or cancellation of the remaining portion thereof. 

(3) An Option shall
be exercised by such methods and procedures as the Committee determines from
time to time, including without limitation through net physical settlement or
other method of cashless exercise. 

(4) Options may not
be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of a Participant, only by the Participant; provided,
however  that the Committee may permit in its discretion Options to be
sold, pledged, assigned, hypothecated, transferred, or disposed of, on a
general or specific basis, subject to such conditions and limitations as the
Committee may determine. 

(c)     Effect of Termination of
Employment or Other Relationship  

The agreement
evidencing the award of each Option shall specify the consequences with respect
to such Option of the termination of the employment or other service between
the Company and the Participant holding the Option. 

7.            Other Stock-Based Awards
 

The Committee may
grant equity-based or equity-related awards not otherwise described herein in
such amounts and subject to such terms and conditions as the Committee shall
determine. Without limiting the generality of the preceding sentence, each such
Other Stock-Based Award may (i) involve the transfer of actual shares of
Common Stock to Participants, either at the time of grant or thereafter, or
payment in cash or otherwise of amounts based on the value of shares of Common
Stock, (ii) be subject to performance-based and/or service-based
conditions, (iii) be in the form of stock appreciation rights, phantom
stock, restricted stock, restricted stock units, performance shares, deferred
share units or share-denominated performance units, (iv) be designed to
comply with applicable laws of jurisdictions other than the United States and
(v) be designed to qualify as Performance-Based Compensation; provided,
that each Other Stock-Based Award shall be denominated in, or shall have a value
determined by reference to, a number of shares of Common Stock that is
specified at the time of the grant of such award. 

8.            Cash Incentive Awards
 

The
Committee may grant Cash Incentive Awards with respect to any Performance
Period, subject to the terms and conditions of the Plan. Cash Incentive Awards
may be settled in cash or in other property, including shares of Common Stock,
provided that the term “Cash Incentive Award” shall exclude any Stock Incentive
Award. Cash Incentive Awards may be designed to qualify as Performance-Based
Compensation. 

 

 

 

 

9.            Performance-Based
Compensation  

(a)     Calculation   

The amount payable
with respect to an Incentive Award that is intended to qualify as
Performance-Based Compensation shall be determined in any manner permitted by
Section 162(m) of the Code. 

(b)     Discretionary Reduction
 

Unless
otherwise specified in the agreement evidencing the grant of an Incentive Award
that is intended to qualify as Performance-Based Compensation, the Committee
may, in its discretion, reduce or eliminate the amount payable to any
Participant with respect to the Incentive Award, based on such factors as the
Committee may deem relevant, but the Committee may not increase any such amount
above the amount established in accordance with the relevant Performance
Schedule. For purposes of clarity, the Committee may exercise the discretion
provided for by the foregoing sentence in a non-uniform manner among
Participants. 

(c)     Performance Measures
 

The performance goals
upon which the payment or vesting of any Incentive Award (other than Options
and stock appreciation rights) that is intended to qualify as Performance-Based
Compensation depends shall relate to one or more of the following Performance
Measures: market price of Common Stock, earnings per share of Common Stock, net
income or profit (before or after taxes), return on stockholder equity, cash
flow, return on assets, earnings before interest and taxes, earnings before
interest, taxes, depreciation and amortization, earnings from continuing operations,
sales or revenues, capital or investment, market share, cost reduction goals,
budget comparisons, implementation or completion of specified projects or
processes, the formation of joint ventures, research or development
collaborations, or the completion of other transactions, any other measure of
financial performance that can be determined pursuant to U.S. generally
accepted accounting principles, or any combination of any of the foregoing. 

A Performance Measure
(i) may relate to the performance of the Participant, TWPC, a Subsidiary,
any business group, any business unit or other subdivision of the Company, or
any combination of the foregoing, as the Committee deems appropriate and
(ii) may be expressed as an amount, as an increase or decrease over a
specified period, as a relative comparison to the performance of a group of
comparator companies or a published or special index, or any other external
measure of the selected performance criteria, as the Committee deems
appropriate. The measurement of any Performance Measure may exclude the impact
of charges for restructurings, discontinued operations, extraordinary items,
and other unusual or non-recurring items, and the cumulative effects of
accounting changes, each as defined by generally accepted accounting principles
and as identified in the Company’s audited financial statements, including the
notes thereto. 

(d)     Performance Schedules
 

Within
90 days after the beginning of a Performance Period, and in any case before 25%
of the Performance Period has elapsed, the Committee shall establish
(a) Performance Targets for such Performance Period, (b) Target
Awards for each Participant, and (c) Performance Schedules for such
Performance Period. 

(e)     Termination of
Employment  

The
consequences with respect to a Performance-Based Award of the termination of
employment of the Participant holding the Performance-Based Award shall be
determined by the Committee in its sole discretion and set forth in the
applicable Award Agreement, it being intended that no agreement providing for a
payment to a Participant upon termination of employment without cause shall be
given effect to the extent that it would cause an Incentive Award that was
intended to qualify as a Performance-Based Award to fail to so qualify. 

(f)      Committee Discretion
 

Nothing in this
Section 9 is intended to limit the Committee’s discretion to adopt
conditions with respect to any Incentive Award that is not intended to qualify
as Performance-Based Compensation. In addition, the Committee may, subject to
the terms of the Plan, amend previously granted Incentive Awards in a way that
disqualifies them as Performance-Based Compensation. 

10.          Adjustment Upon Certain
Changes  

Subject
to any action by the shareholders of TWPC required by law, applicable tax rules
or the rules of any exchange on which shares of common stock of TWPC are listed
for trading: 

 

 

 

 

(a)     Shares Available for
Grants  

In the event of any
change in the number or type of shares of common stock of TWPC outstanding by
reason of any stock dividend or split, recapitalization, merger, consolidation,
combination or exchange of shares or similar corporate change, the type and
maximum aggregate number of shares of Common Stock with respect to which the
Committee may grant Incentive Awards and the maximum aggregate number of shares
of Common Stock with respect to which the Committee may grant Incentive Awards
to any individual Participant in any year shall be appropriately adjusted by
the Committee. In the event of any change in the type or number of shares of
common stock of TWPC outstanding by reason of any other event or transaction,
the Committee may, to the extent deemed appropriate by the Committee, make such
adjustments in the number and class of shares of Common Stock with respect to
which Incentive Awards may be granted. 

(b)     Increase or Decrease in
Issued Shares Without Consideration  

In
the event of any increase or decrease in the type or number of issued shares of
common stock of TWPC resulting from a subdivision or consolidation of shares of
common stock of TWPC or the payment of a stock dividend (but only on the shares
of common stock of TWPC), or any other increase or decrease in the number of
such shares effected without receipt or payment of consideration by the
Company, the Committee may, to the extent deemed appropriate by the Committee,
adjust the type or number of shares of Common Stock subject to each outstanding
Incentive Award and the exercise price per share of Common Stock of each such
Incentive Award. 

(c)        Certain Mergers  

In the event of any
merger, consolidation or similar transaction as a result of which the holders
of shares of Common Stock receive consideration consisting exclusively of
securities of the surviving corporation in such transaction, the Committee may,
to the extent deemed appropriate by the Committee, adjust each Incentive Award
outstanding on the date of such merger or consolidation so that it pertains and
applies to the securities which a holder of the number of shares of Common
Stock subject to such Incentive Award would have received in such merger or
consolidation. 

(d)     Certain Other
Transactions  

In
the event of (i) a dissolution or liquidation of TWPC, (ii) a sale of
all or substantially all of the Company’s assets (on a consolidated basis), or
(iii) a merger, consolidation or similar transaction involving TWPC in
which the holders of shares of Common Stock receive securities and/or other
property, including cash, other than shares of the surviving corporation in
such transaction, the Committee shall, in its sole discretion, have the power
to: 

(i) cancel, effective
immediately prior to the occurrence of such event, each Incentive Award
(whether or not then exercisable or vested), and, in full consideration of such
cancellation, pay to the Participant to whom such Incentive Award was granted
an amount in cash, for each share of Common Stock subject to such Incentive
Award, equal to the value, as determined by the Committee, of such Incentive
Award, provided that with respect to any outstanding Option such value shall be
equal to the excess of (A) the value, as determined by the Committee, of
the property (including cash) received by the holder of a share of Common Stock
as a result of such event over (B) the exercise price of such Option; or 

(ii) provide for the
exchange of each Incentive Award (whether or not then exercisable or vested)
for an Incentive Award with respect to some or all of the property which a
holder of the number of shares of Common Stock subject to such Incentive Award
would have received in such transaction and, incident thereto, make an
equitable adjustment as determined by the Committee in the exercise price of
the Incentive Award, or the number of shares or amount of property subject to
the Incentive Award or provide for a payment (in cash or other property) to the
Participant to whom such Incentive Award was granted in partial consideration
for the exchange of the Incentive Award. 

(e)     Other Changes  

In
the event of any change in the capitalization of TWPC or corporate change other
than those specifically referred to in paragraphs 10(b), (c) or (d), the
Committee may make such adjustments in the number and class of shares subject
to Stock Incentive Awards outstanding on the date on which such change occurs
and in such other terms of such Incentive Awards, including without limitation
in any Performance Schedule, Performance Target or Target Award, as the
Committee may consider appropriate, provided that if any such Incentive Award
is intended to be Performance-Based Compensation such adjustment is consistent
with the requirements of Section 162(m) of the Code. 

(f)      Cash Incentive Awards
 

In the event of any
transaction or event described in this Section 10, including without
limitation any corporate change referred to in paragraph (e) hereof, the
Committee may, in its sole discretion, make such adjustments in any Performance
Schedule, Performance Target or Target Award, and in such other terms of any
Cash Incentive Award, as 

 

 

 

the Committee may consider
appropriate in respect of such transaction or event, provided that if such Cash
Incentive Award is intended to be Performance-Based Compensation such
adjustment is consistent with the requirements of Section 162(m) of the
Code. 

(g)     No Other Rights  

Except as expressly
provided in the Plan, no Participant shall have any rights by reason of any
subdivision or consolidation of shares of stock of any class, the payment of
any dividend, any increase or decrease in the number of shares of stock of any
class or any dissolution, liquidation, merger or consolidation of TWPC or any
other corporation. Except as expressly provided in the Plan, no issuance by
TWPC of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number of shares or amount of other property subject
to, or the terms related to, any Incentive Award. 

(h)     Savings Clause  

No provision of this
Section 10 shall be given effect to the extent that such provision would
cause any tax to become due under Section 409A of the Code. 

11.          Rights Under the Plan
 

No Person shall have
any rights as a stockholder with respect to any shares of Common Stock covered
by or relating to any Incentive Award until the date of the issuance of such
shares on the books and records of TWPC. Except as otherwise expressly provided
in Section 10 hereof, no adjustment of any Incentive Award shall be made
for dividends or other rights for which the record date occurs prior to the
date of such issuance. Nothing in this Section 11 is intended, or should
be construed, to limit authority of the Committee to cause the Company to make
payments based on the dividends that would be payable with respect to any share
of Common Stock if it were issued or outstanding, or from granting rights
related to such dividends. 

The Company shall not
have any obligation to establish any separate fund or trust or other
segregation of assets to provide for payments under the Plan. To the extent any
person acquires any rights to receive payments hereunder from the Company, such
rights shall be no greater than those of an unsecured creditor. 

12.          No Special Employment
Rights; No Right to Incentive Award  

(a)
Nothing contained in the Plan or any Incentive Award shall confer upon any
Participant any right with respect to the continuation of his employment by or
service to the Company or interfere in any way with the right of the Company at
any time to terminate such employment or service or to increase or decrease the
compensation of the Participant from the rate in existence at the time of the
grant of an Incentive Award. 

(b) No person shall
have any claim or right to receive an Incentive Award hereunder. The
Committee’s granting of an Incentive Award to a Participant at any time shall
neither require the Committee to grant an Incentive Award to such Participant
or any other Participant or other person at any time nor preclude the Committee
from making subsequent grants to such Participant or any other Participant or
other person. 

13.          Securities Matters  

(a) TWPC shall be
under no obligation to effect the registration pursuant to the Securities Act
of any shares of Common Stock to be issued hereunder or to effect similar
compliance under any state laws. Notwithstanding anything herein to the
contrary, TWPC shall not be obligated to cause to be issued any shares of
Common Stock pursuant to the Plan unless and until TWPC is advised by its
counsel that the issuance of such shares is in compliance with all applicable
laws, regulations of governmental authority and the requirements of any
securities exchange on which shares of Common Stock are traded. The Committee
may require, as a condition to the issuance of shares of Common Stock pursuant
to the terms hereof, that the recipient of such shares make such covenants,
agreements and representations, and that any certificates representing such
shares bear such legends, as the Committee deems necessary or desirable. 

(b) The exercise of
any Option granted hereunder shall only be effective at such time as counsel to
TWPC shall have determined that the issuance of shares of Common Stock pursuant
to such exercise is in compliance with all applicable laws, regulations of
governmental authority and the requirements of any securities exchange on which
shares of Common Stock are traded. TWPC may, in its sole discretion, defer the
effectiveness of an exercise of an Option hereunder or the issuance of shares
of Common Stock pursuant to any Incentive Award pending or to ensure compliance
under federal or state securities laws. TWPC shall inform the Participant in
writing of its decision to defer the effectiveness of the exercise of an Option
or the issuance of shares of Common Stock pursuant to any Incentive Award.
During the period that the effectiveness of the exercise of an Option has been
deferred, the Participant may, by written notice, withdraw such exercise and
obtain the refund of any amount paid with respect thereto. 

 

 

 

14.          Withholding Taxes  

(a)     Cash Remittance  

Whenever
shares of Common Stock are to be issued upon the exercise of an Option or the
grant or vesting of an Incentive Award, and whenever any amount shall become
payable in respect of any Incentive Award, TWPC shall have the right to require
the Participant to remit to TWPC in cash an amount sufficient to satisfy
federal, state and local withholding tax requirements, if any, attributable to
such exercise, grant, vesting or payment prior to issuance of such shares or
the effectiveness of the lapse of such restrictions or making of such payment.
In addition, upon the exercise or settlement of any Incentive Award in cash, or
the making of any other payment with respect to any Incentive Award (other than
in shares of Common Stock), TWPC shall have the right to withhold from any
payment required to be made pursuant thereto an amount sufficient to satisfy
the federal, state and local withholding tax requirements, if any, attributable
to such exercise, settlement or payment. 

(b)     Stock Remittance  

At the election of
the Participant, subject to the approval of the Committee, when shares of
Common Stock are to be issued upon the exercise, grant or vesting of an
Incentive Award, the Participant may tender to TWPC a number of shares of
Common Stock that have been owned by the Participant for at least six months
(or such other period as the Committee may determine) having a Fair Market
Value at the tender date determined by the Committee to be sufficient to
satisfy the minimum federal, state and local withholding tax requirements, if
any, attributable to such exercise, grant or vesting but not greater than the
minimum withholding obligations. Such election shall satisfy the Participant’s
obligations under Section 14(a) hereof, if any. 

(c)     Stock Withholding  

At the election of
the Participant, subject to the approval of the Committee, when shares of
Common Stock are to be issued upon the exercise, grant or vesting of an
Incentive Award, TWPC shall withhold a number of such shares having a Fair
Market Value at the exercise date determined by the Committee to be sufficient
to satisfy the minimum federal, state and local withholding tax requirements,
if any, attributable to such exercise, grant or vesting but not greater than
the minimum withholding obligations. Such election shall satisfy the
Participant’s obligations under Section 14(a) hereof, if any. 

15.          Amendment or Termination
of the Plan  

The Board of
Directors may at any time suspend or discontinue the Plan or revise or amend it
in any respect whatsoever; provided, however, that to the extent
that any applicable law, tax requirement, or rule of a stock exchange requires
shareholder approval in order for any such revision or amendment to be
effective, such revision or amendment shall not be effective without such
approval. The preceding sentence shall not restrict the Committee’s ability to
exercise its discretionary authority hereunder pursuant to Section 4
hereof, which discretion may be exercised without amendment to the Plan. No
provision of this Section 15 shall be given effect to the extent that such
provision would cause any tax to become due under Section 409A of the
Code. Except as expressly provided in the Plan, no action hereunder may,
without the consent of a Participant, reduce the Participant’s rights under any
previously granted and outstanding Incentive Award. Nothing in the Plan shall
limit the right of the Company to pay compensation of any kind outside the
terms of the Plan. 

16.          No Obligation to
Exercise  

The
grant to a Participant of an Incentive Award shall impose no obligation upon
such Participant to exercise such Incentive Award. 

17.          Transfers Upon Death
 

Upon the death of a
Participant, outstanding Incentive Awards granted to such Participant may be
exercised only by the executors or administrators of the Participant’s estate
or by any person or persons who shall have acquired such right to exercise by
will or by the laws of descent and distribution. No transfer by will or the
laws of descent and distribution of any Incentive Award, or the right to
exercise any Incentive Award, shall be effective to bind TWPC unless the
Committee shall have been furnished with (a) written notice thereof and
with a copy of the will and/or such evidence as the Committee may deem
necessary to establish the validity of the transfer and (b) an agreement
by the transferee to comply with all the terms and conditions of the Incentive
Award that are or would have been applicable to the Participant and to be bound
by the acknowledgements made by the Participant in connection with the grant of
the Incentive Award. 

 

 

 

 

 

18.          Expenses and Receipts
 

The expenses of the
Plan shall be paid by TWPC. Any proceeds received by TWPC in connection with
any Incentive Award will be used for general corporate purposes. 

19.          Governing Law  

The
Plan and the rights of all persons under the Plan shall be construed and
administered in accordance with the laws of the State of New York without
regard to its conflict of law principles. 

20.          Effective Date and Term
of Plan  

The Plan was adopted
by the Board of Directors on February 23, 2012, subject to the approval of
the Plan by the shareholders of TWPC. No grants of Incentive Awards may be made
under the Plan after February 23, 2022.

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