Document:

EX-10.1

 

Exhibit 10.1

DAY INTERNATIONAL GROUP, INC.

2006 STOCK OPTION PLAN

ARTICLE I

PURPOSE

     The purpose of the Day International Group, Inc. 2006 Stock Option Plan is to foster and
promote the long-term financial success of the Company and to materially increase stockholder value
by (a) motivating superior performance by participants in the Plan, (b) providing
participants in the Plan with an ownership interest in the Company and (c) enabling the
Company to attract and retain the services of an outstanding management team upon whose judgment,
interest and special effort the successful conduct of its operations is largely dependent. The
Plan is a compensatory benefit plan within the meaning of Rule 701 of the Securities Act of 1933,
as amended (the “Securities Act”).

ARTICLE II

DEFINITIONS

     1.1 Definitions. For purposes of this Plan, the following terms shall have the
meanings set forth below:

     (a) “Affiliate” has the meaning specified in the Stockholders Agreement.

     (b) “Approved Sale” has the meaning specified in the Stockholders Agreement.

     (c) “Beneficiary” means the person(s) designated by a Participant in writing to the Board or,
if none are so designated or living at the time of the Participant’s death, the person(s) and/or
trust(s) by will or the laws of descent and distribution or the estate or personal representative
entitled to receive the benefits specified under this Plan in the event of the Participant’s death.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Cause” has the meaning specified in the Stockholders Agreement.

     (f) “Code” means the Internal Revenue Code of 1986, as amended. References to Sections of the
Code shall be deemed to refer to such Sections as in effect on the date this Plan is adopted as
such Sections may, from time to time, be amended.

     (g) “Common Stock” means the Voting Common Stock and the Non-Voting Common Stock.

     (h) “Company” means Day International Group, Inc., a Delaware corporation, and its successors
and assigns.

     (i) “Director” means any member of the Board.

 

 

     (j) “Effective Date” means August 9, 2006.

     (k) “Employee” means any executive, senior officer or other key employee of the Company or any
Subsidiary.

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

     (m) “Fair Market Value” has the meaning specified in the Stockholders Agreement.

     (n) “Grant Date” means, with respect to any Option, the date on which such Option is granted
pursuant to the Plan.

     (o) “Greenwich IV” means Greenwich IV, LLC, a Delaware limited liability company.

     (p) “1998 Plan” means the Company’s 1998 Stock Option Plan (amended and restated effective May
29, 2002).

     (q) “Non-Voting Common Stock” means the Class B and Class C Common Stock, par value $.01 per
share, of the Company.

     (r) “Option” means an option, granted to a Participant hereunder to purchase one share of
Voting Common Stock at a price determined in accordance with the Plan and on the terms and
conditions set forth hereunder. Options shall not be incentive stock options within the meaning of
Section 422 of the Code.

     (s) “Option Agreement” means an agreement between the Company and the Participant embodying
the terms of any Options granted hereunder.

     (t) “Participant” means any Employee or Director who has been granted an Option pursuant to
the Plan.

     (u) “Plan” means this Day International Group, Inc. 2006 Stock Option Plan, as the same may be
amended from time to time.

     (v) “Stockholders Agreement” means the Amended and Restated Stockholders Agreement, dated as
of October 19, 1999, as amended by amendment dated as of December 2, 2005, among the Company and
the other stockholders of the Company party thereto, as the same may be further amended from time
to time.

     (w) “Subsidiary” means any corporation or other entity a majority or more of whose outstanding
voting stock or voting power is beneficially owned directly or indirectly by the Company.

     (x) “Voting Common Stock” means the Class A Common Stock, par value $.01 per share, of the
Company.

 

 

ARTICLE III

ELIGIBILITY AND PARTICIPATION

     Participants in the Plan shall be any Director whose participation in the Plan is approved by
the Board and those Employees (other than the Chief Executive Officer) recommended by the Chief
Executive Officer of the Company and approved by the Board to participate in the Plan. The Chief
Executive Officer’s participation in the Plan shall be designated by the Board. 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.

ARTICLE IV

POWERS OF THE BOARD

     4.1 Power to Grant. The Board shall determine the Participants to whom Options shall
be granted and the terms and conditions of any and all options granted to Participants, provided
that nothing in the Plan shall limit the right of Directors to receive awards hereunder. Each
Option grant to a Director shall be approved by a majority of the Directors, excluding the Director
to whom such Option is to be granted.

     4.2 Administration. The Board shall be responsible for the administration of the
Plan. Any authority exercised by the Board under the Plan shall be exercised by the Board in its
sole discretion. Subject to the terms of the Plan, the Board, by majority action thereof, is
authorized to prescribe, amend and rescind rules and regulations relating to the administration of
the Plan, to provide for conditions and assurances deemed necessary or advisable to protect the
interests of the Company and the Subsidiaries, and to make all other determinations necessary or
advisable for the administration and interpretation of the Plan in order to carry out its
provisions and purposes. Determinations, interpretations or other actions made or taken by the
Board pursuant to the provisions of the Plan shall be final, binding and conclusive for all
purposes and upon all persons.

     4.3 Delegation by the Board. All of the powers, duties and responsibilities of the
Board specified in the Plan may, to the full extent permitted by applicable law, be exercised and
performed by any duly constituted committee of the Board (which shall consist of two or more
Directors as appointed from time to time by the Board), in any such case, to the extent authorized
by the Board to exercise and perform such powers, duties and responsibilities.

ARTICLE V

OPTIONS SUBJECT TO PLAN

     5.1 Number. Subject to the provisions of Sections 5.2 and 5.3, the maximum number of
shares of Common Stock subject to Options granted under the Plan may not exceed 2,500 shares of the
Company’s Voting Common Stock. The shares of Voting Common Stock to be delivered upon the exercise
of Options granted under the Plan may consist, in whole or in part, of treasury Voting Common Stock
or authorized but unissued Voting Common Stock not reserved for any other purpose.

     5.2 Cancelled, Terminated or Forfeited Options. Any shares of Voting Common Stock
subject to an Option which for any reason is cancelled, terminated or otherwise forfeited,

 

 

in whole or in part, without having been exercised, shall again be available for grant under
the Plan to the extent so cancelled, terminated or otherwise forfeited.

     5.3 Adjustment in Capitalization. The number and class of shares of Voting Common
Stock available for issuance upon exercise of Options granted under the Plan, and the number, class
and exercise price of any shares of Voting Common Stock subject to outstanding Options, may be
adjusted by the Board, in its sole discretion, if it shall deem such an adjustment to be necessary
or appropriate to reflect any Common Stock dividend, stock split or share combination or any
recapitalization, merger, consolidation, exchange of shares or similar transaction or any
liquidation or dissolution of the Company.

ARTICLE VI

TERMS OF OPTIONS

     6.1 Grant of Options. The Board may provide that different terms apply to Options
granted to the same or different Participants on the same Grant Date or to the same Participant on
different Grant Dates. Each Option granted to a Participant shall be evidenced by an Option
Agreement that shall specify the exercise price for each share of Voting Common Stock which may be
purchased pursuant to such Option, the vesting schedule for, and the duration of, such Option and
such other terms consistent with the Plan as the Board shall determine. The Option Agreement to be
entered into with Participants may also include additional requirements or terms, as the Board
shall determine, to ensure compliance with relevant securities laws or to ensure favorable
treatment under relevant tax laws.

     6.2 Terms of Options.

     (a) Number of Shares. Options to purchase 2,500 shares of Voting Common Stock
issuable under the Plan shall be granted to Participants selected by the Board at such time or
times as determined by the Board. By adopting this Plan, the Board hereby grants, effective as of
the Effective Date and subject to the applicable terms hereof, Options to the Participants listed
on the attached Schedule 1 in the applicable amounts set forth in such Schedule 1.

     (b) Exercise Price. The exercise price per share of Voting Common Stock purchased
upon the exercise of each Option granted as of the Effective Date shall be $2,500 per share. The
exercise price per share of Voting Common Stock purchased upon the exercise of each Option granted
after the Effective Date shall be the Fair Market Value of a share of Voting Common Stock on the
Grant Date.

     (c) Exercise of Options. Unless otherwise provided by the Board in the Option
Agreement evidencing an Option, each Option awarded to a Participant shall vest and become
exercisable in four equal annual installments on each of the first four anniversaries of the Grant
Date. Any granted, unvested Options shall immediately become 100% vested and become exercisable in
full upon, and concurrently with, an Approved Sale. Notwithstanding the foregoing, no portion of
any Option shall vest or become exercisable on or after the date on which the holder thereof ceases
to be employed by the Company or a Subsidiary or ceases to serve as a Director.

 

 

     (d) Forfeiture of Options. Notwithstanding anything to the contrary contained in the
Plan (or any Option Agreement) or in the 1998 Plan (or any option agreement entered into by the
Company in connection therewith), in the event that (i) a Participant exercises any Options granted
to such Participant under the Plan, then, as a condition to such exercise, all options granted such
Participant under the 1998 Plan shall be forfeited by such Participant and shall no longer be
exercisable by such Participant and (ii) a Participant exercises any options granted to such
Participant under the 1998 Plan, then, as a condition to such exercise, all Options granted such
Participant under the Plan shall be forfeited by such Participant and shall no longer be
exercisable by such Participant.

     6.3 Board Discretion. The Board may at any time extend the post-termination exercise
period of all or any portion of the Options up to and including, but not beyond, the tenth
anniversary of the Grant Date.

     6.4 Payment. The Board shall establish procedures governing the exercise of Options,
which procedures shall generally require that written notice of the exercise thereof be given and
that the exercise price thereof be paid in full in cash or cash equivalents, including by personal
check, at the time of exercise. If so determined by the Board in its sole discretion on or after
the Grant Date, the exercise price of any Options may be paid in full or in part in the form of
shares of Common Stock of the Company already owned by the Participant, based on the Fair Market
Value of such Common Stock on the date of exercise or at such time as shall be set forth in the
Option Agreement. As soon as practicable after receipt of a written exercise notice and payment in
full of the exercise price of any exercisable Options, the Company shall deliver to the Participant
a certificate or certificates representing the shares of Common Stock acquired upon the exercise
thereof. Notwithstanding the foregoing, the Company may, with the consent of a Participant, in
lieu of issuing shares of Voting Common Stock upon the exercise of any Option, return to the
Participant any payment tendered to exercise the Option (if the Participant has tendered such
payment to the Company) and pay the Participant an additional amount in cash equal to the product
of (i) the excess of (x) the Fair Market Value of each such share subject to the Option over (y)
the per share exercise price of the Option being exercised times (ii) the number of shares as to
which the Participant has exercised the Option.

     6.5 Notice of Approved Sale. Notwithstanding anything to the contrary herein, the
Company shall, to the extent possible, give each Participant at least twenty (20) business days
advance notice of the consummation of any Approved Sale. Any Participant holding vested Options at
the time such Participant receives such advance notice may notify the Company of his or her intent
to exercise such Options upon the consummation of the Approved Sale by executing and delivering an
exercise notice to the Company on or before the date such Approved Sale is consummated. Such
exercise shall be considered a conditional exercise of such Option and shall become binding upon
such Participant (and such Participant shall become obligated to pay the exercise price therefor)
upon consummation of such Approved Sale.

     6.6 Stockholders Agreement. Notwithstanding anything to the contrary herein, the
Company and the Participant shall be subject to and have the rights and obligations which are set
forth in the Stockholders Agreement. As a condition to receiving any grant of Options hereunder,
any Participant who is not already a party to the Stockholders Agreement shall be required to
execute a counterpart of the Stockholders Agreement and thereby become a party to

 

 

the Stockholders Agreement with respect to any Options granted under this Plan and shares of
Common Stock acquired upon the exercise of such Options.

ARTICLE VII

EXPIRATION OF OPTIONS

     7.1 Expiration Date. Notwithstanding any other Plan provision, all Options (vested
and unvested) which have not expired or been exercised previously, will expire on the earlier of
(i) the tenth anniversary of the Grant Date or (ii) the consummation of the first Approved Sale.

     7.2 Accelerated Expiration: Termination of Employment. Unless otherwise determined by
the Board at or after the Grant Date, (i) all unvested Options held by a Participant whose
employment with the Company or its Subsidiaries or status as a Director is terminated will expire
as of the date of termination, (ii) all vested Options held by a Participant whose employment or
status as a Director is terminated for Cause will expire as of the date of termination, and (iii)
all vested Options held by a Participant whose employment or status as a Director terminates other
than for Cause will expire 30 days after the date of termination (or, if shorter, during the
remaining term of the Options). Any Options that expire or are terminated when employment or
status as a Director is terminated may be available for grant again.

ARTICLE VIII

AMENDMENT, MODIFICATION AND

TERMINATION OF THE PLAN AND OPTIONS

     The Board at any time may terminate or suspend the Plan, and from time to time may amend or
modify the Plan. No amendment, modification, termination or suspension of the Plan shall in any
manner adversely affect any Option theretofore granted under the Plan, without the consent of the
Participant holding such Option. The Board may amend or modify any Option in any manner to the
extent the Board would have had the authority under the Plan initially to grant such Option;
provided that, except as expressly contemplated elsewhere herein or in any agreement evidencing
such Option, no such amendment or modification shall impair the rights of any Participant under any
outstanding Option without the consent of such Participant.

ARTICLE IX

MISCELLANEOUS PROVISIONS

     9.1 Nontransferability of Awards. Except to the extent otherwise expressly provided
under the Stockholders Agreement, no Options granted under the Plan may be sold, transferred,
pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. All rights with respect to Options granted to a Participant
under the Plan shall be exercisable during such Participant’s lifetime by such Participant only (or
his or her legal guardian or legal representative). Following a Participant’s death, all rights
with respect to Options that were exercisable at the time of such Participant’s death and have not
terminated shall be exercisable by such Participant’s designated Beneficiary or by such
Participant’s estate in accordance with, and subject to, the terms and conditions hereof, the
Stockholders Agreement and the applicable Option Agreement.

 

 

     9.2 Beneficiary Designation. Each Participant under the Plan may from time to time
name any Beneficiary or Beneficiaries (who may be named contingently or successively) by whom any
right under the Plan is to be exercised in case of such Participant’s death. Each designation will
revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by
the Board, and will be effective only when received by the Board and only if received during the
Participant’s lifetime.

     9.3 No Guarantee of Employment or Participation. Nothing in the Plan or in any Option
Agreement 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, or confer upon any Participant any right to
continue in the employ of the Company or any Subsidiary or to continue to receive such
Participant’s current (or other) rate of compensation. No Employee shall have a right to be
selected as a Participant or, having been so selected, to receive any Options.

     9.4 Tax Withholding. The Company or the Subsidiary employing a Participant shall have
the power to withhold, or to require such Participant to remit to the Company or such Subsidiary,
subject to such other arrangements as the Board may set forth in the Option Agreement to which such
Participant is a party, an amount sufficient to satisfy all federal, state, local and foreign
withholding tax requirements in respect of any Option granted under the Plan or any share of Common
Stock purchased upon the exercise of any such Option.

     9.5 Indemnification. Each person who is or shall have been a member of the Board or
any committee of the Board shall be indemnified and held harmless by the Company to the fullest
extent permitted by law from and against any and all losses, costs, liabilities and expenses
(including any related attorneys’ fees and advances thereof) in connection with, based upon or
arising or resulting from any claim, action, suit or proceeding to which he may be made a party or
in which he may be involved by reason of any action taken or failure to act under the Plan and from
and against any and all amounts paid by him in settlement thereof, with the Company’s approval, or
paid by him in satisfaction of any judgment in any such action, suit or proceeding against him,
provided that he shall give the Company an opportunity, at its own expense, to defend the same
before he undertakes to defend it on his own behalf. The foregoing right of indemnification shall
not be exclusive and shall be independent of any other rights of indemnification to which such
persons may be entitled under the Company’s Certificate of Incorporation or By-laws, by contract,
as a matter of law, or otherwise.

     9.6 Requirements of Law. The granting of Options and the issuance of shares of Common
Stock pursuant to such Options shall be subject to all applicable laws, rules and regulations, and
to such approvals by any governmental agencies or national securities exchanges as may be required.
No Options shall be granted under the Plan, and no shares of Common Stock shall be issued upon
exercise of any Options granted under the Plan, if such grant or exercise would result in a
violation of applicable law, including the federal securities laws and any applicable state or
foreign securities laws.

     9.7 Freedom of Action. Subject to ARTICLE VIII, nothing in the Plan or any
Option Agreement shall be construed as limiting or preventing the Company or any Subsidiary from
taking any action that it deems appropriate or in its best interest.

 

 

     9.8 Term of Plan. The Plan shall be effective as of the Effective Date. The Plan
shall thereafter continue in effect, unless sooner terminated pursuant to ARTICLE VIII,
until the tenth anniversary of the Effective Date. The provisions of the Plan, however, shall
continue thereafter to govern all outstanding Options theretofore granted.

     9.9 No Voting Rights. No Participant holding any Options granted under the Plan shall
have any right, in respect of such Options, to vote on any matter submitted to the Company’s
stockholders until such time as the shares of Common Stock issuable upon exercise of such Options
have been so issued.

     9.10 Governing Law. The Plan, and all agreements hereunder, shall be governed by,
construed and interpreted in accordance with the laws of the State of Delaware, without giving
effect to the conflicts of laws principles thereof.EX-10.2

 

Exhibit 10.2

2006 DAY INTERNATIONAL GROUP, INC.

RESTRICTED STOCK UNIT PLAN

     1. Purpose. The purpose of the 2006 Day International Group, Inc. Restricted Stock
Unit Plan is to advance the interests of the Company by encouraging and enabling the acquisition of
a larger personal proprietary interest in the Company by executives, senior officers and other key
employees of the Company and its Subsidiaries and upon whose judgment and keen interest the Company
is largely dependent for the successful conduct of its operations. It is anticipated that the
acquisition of such proprietary interest in the Company will stimulate the efforts of such
executives, senior officers and other employees on behalf of the Company and its Subsidiaries and
strengthen their desire to remain with the Company and its Subsidiaries.

     2. Definitions. When used in this Plan, the following terms shall have the meaning
set forth below. In addition, any capitalized terms used herein which are not otherwise defined
herein shall have the same definitions as set forth in the Stockholders Agreement.

     (a) “Administrator” shall mean the Board or the committee designated and appointed by
the Board to administer the Plan pursuant to Section 3.

     (b) “Affiliate” means any other person controlling, controlled by or under common
control with such person, whether by ownership of voting securities, by contract or
otherwise.

     (c) “Award Agreement” shall have the meaning set forth in Section 6 hereof.

     (d) “Board” shall mean the Board of Directors of the Company, as constituted at any
time.

     (e) “Cause” with respect to a Participant shall have the meaning assigned to it in the
Stockholders Agreement, determined as if the Participant were an Employee Stockholder.

     (f) “Change of Control” shall mean

     (i) prior to the first public offering of the Common Stock, either (x)
Permitted Holders cease to be the “beneficial owner” or “beneficial owners” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of
more than 35% of the total voting power of the Voting Stock of the Company, or
(y) Permitted Holders cease to be entitled by voting power, contract or
otherwise to elect or cause the election of directors of the Company having a
majority of the total voting power of the Board, in each case, whether as a result
of issuance of securities of the Company, any merger, consolidation, liquidation or
dissolution of the Company, any direct or indirect transfer of securities by any
Permitted Holder or otherwise (for purposes of this clause (i) and clause (ii)

 

 

below, Permitted Holders shall be deemed to beneficially own any Voting Stock
of an entity (the “specified entity”) held by any other entity (the “parent entity”)
so long as the Permitted Holders beneficially own (as so defined), directly or
indirectly, a majority of the Voting Stock of the parent entity);

     (ii) following the first public offering of the Common Stock, any “Person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than one
or more Permitted Holders, is or becomes the beneficial owner (as defined in clause
(i) above, except that a Person shall be deemed to have “beneficial ownership” of
all shares that any such Person has the right to acquire within one year), directly
or indirectly, of more than 35% of the Common Stock, provided that the Permitted
Holders beneficially own (as defined in clause (i) above), directly or indirectly,
in the aggregate a lesser percentage of the Common Stock than such other Person and
do not have the right or ability by voting power, contract or otherwise to elect or
designate for election a majority of the Board, or

     (iii) during any period of two consecutive years, individuals who at the
beginning of such period constituted the Board (together with any new directors
whose election by such Board or whose nomination for election by the shareholders of
the Company was approved by a vote of a majority of the directors of the Company
then still in office who were either directors at the beginning of such period or
whose election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Board then in office.

     (g) “Common Equity Value” shall mean (i) the sum of (x) the total cash
consideration received or to be received by holders of the Common Stock, plus (y)
the present value of any payments to be made in installments divided by (ii) the total
number of shares of Common Stock outstanding, including subject to warrants, stock options
or other awards based on the equity of the Company.

     (h) “Common Stock” shall mean the Class A Common Stock, par value $.01 per share, of
the Company.

     (i) “Company” shall mean Day International Group, Inc., a Delaware corporation, and its
successors and assigns.

     (j) “Disability” shall mean (i) with respect to a Participant with an employment
agreement that explicitly defines “Disability”, the definition set forth in such employment
agreement, and (ii) with respect to any other Participant, the Participant’s inability, due
to a physical or mental condition, to perform the duties of the Participant’s employment
with the Company or a Subsidiary for a period of 180 days, whether or not consecutive.

     (k) “Exchange Act” shall mean Securities Exchange Act of 1934, as amended from time to
time.

2

 

     (l) “Fair Market Value” shall mean the value of a share of Common Stock on the date of
the Liquidity Event, determined as follows (i) in the case of a Liquidity Event which is a
sale or exchange of the Company’s equity securities or a sale or disposition of the
Company’s assets, the Common Equity Value, (ii) in the case of a Liquidity Event which is a
public offering of the Common Stock, the per share offering price, or (iii) in all
other instances, the fair market value of the Common Stock (expressed on a per-share basis)
as of such date, as determined in good faith by the Board based on the consolidated results
of operations, financial conditions and future prospects of the Company and such other
factors as the Board may deem appropriate

     (m) “Grant Date’ shall have the meaning set forth in Section 7(a) hereof.

     (n) “Internal Revenue Code” shall mean Internal Revenue Code of 1986, as amended from
time to time.

     (o) “Liquidity Event” shall mean (i) a Change of Control, (ii) the sale, in an
underwritten public offering registered under the Securities Act, of shares of Common Stock
having an aggregate offering value (measured by the Company’s proceeds before underwriters’
discounts and selling commissions) of at least $50,000,000 or (iii) a delivery of the Sale
Notice under the Stockholders Agreement.

     (p) “Participant” shall mean a person who is granted an RSU Award in accordance with
Section 4 hereof.

     (q) “Permitted Holders” shall mean (i) Greenwich Street Capital Partners, Inc., SG
Capital Partners, LLC, The Travelers Insurance Company, The Travelers Life and Annuity
Company, Smith Barney Company Inc. and their respective Affiliates and any investment fund
or vehicle managed, sponsored or advised by them or their Affiliates and (ii) any person
acting in the capacity of an underwriter in connection with a public or private offering of
the Company’s Common Stock.

     (r) “Plan” shall mean this 2006 Day International Group, Inc. Restricted Stock Unit
Plan, as adopted by the Board as of June 26, 2006 (the “Effective Date”).

     (s) “Retained Percentage” shall have the meaning set forth in Section 9 hereof.

     (t) “Retirement” shall mean a Participant’s retirement from the Company or a Subsidiary
after satisfying the age and service requirements applicable for such Participant to be
eligible for the Company’s or Subsidiary’s retiree medical benefits.

     (u) “RSU” shall mean an unfunded and unsecured promise of the Company to deliver (or
cause to be delivered) to the holder, Common Stock having a Fair Market Value equal to (or,
in the sole discretion of the Board, cash equal to) the RSU Value on a delivery date as
provided under the applicable Award Agreement.

3

 

     (v) “RSU Award” shall mean a grant of RSUs in accordance with Section 7 hereof.

     (w) “RSU Value” shall mean, with respect to each RSU, the Fair Market Value of a share
of Common Stock minus the base value (the “Base Value”) set forth on Schedule A attached
hereto.

     (x) “Securities Act” shall mean the Securities Act of 1933, as amended from time to
time.

     (y) “Stockholders Agreement” shall mean the Amended and Restated Stockholders
Agreement, dated as of October 19, 1999, among the Company and the stockholders signatory
thereto, as amended from time to time.

     (z) “Subsidiary” shall mean any corporation or other business entity (whether or not
incorporated) 50% or more of whose stock or interests having general voting power is owned
by the Company, or by another Subsidiary as herein defined, of the Company.

     3. Administration.

     (a) Administrator. The Plan shall be administered by the Board or a committee
designated and appointed by the Board to administer the Plan (the “Administrator”). Any
member of the committee may resign by giving written notice thereof to the Board, and any
member of the committee may be removed at any time, with or without cause, by the Board.
If, for any reason, a member of the committee shall cease to serve, the vacancy shall be
filled by the Board. The Administrator shall establish such rules and procedures as are
necessary or advisable to administer the Plan.

     (b) Power of the Administrator. The Administrator shall have full power,
authority and discretion to administer and interpret the Plan. The Administrator may
authorize and establish such rules, regulations and revisions thereof not inconsistent with
the provisions of the Plan, as it may deem advisable to make the Plan and RSU Awards
effective or provide for their administration, and may take such other action with regard to
the Plan and RSU Awards as it shall deem desirable to effectuate their purpose.

     (c) Decisions of the Administrator. The decisions of the Administrator shall
be final, conclusive and binding on all parties, including the Company, Participants and
their estates and beneficiaries.

     4. Eligibility and Participation. The persons listed on Schedule A attached hereto
(“Participants”) shall automatically be granted RSU Awards as of the Effective Date for the number
of RSUs and Base Value listed opposite their respective names on Schedule A.

     5. Common Stock. The RSU Awards to be granted in accordance with this Plan shall be
with respect to RSUs relating to an aggregate of 2,727.5 shares of Common Stock,

4

 

which may be either shares of Common Stock held in treasury or authorized but unissued shares
of Common Stock.

     6. Award Agreements. Each RSU Award granted under the Plan shall be evidenced by an
award agreement (“Award Agreement”). The Award Agreement shall be in the form attached hereto as
Exhibit A.

     7. RSU Awards. RSU Awards shall be subject to the following terms and conditions:

     (a) Vesting. The RSUs shall become vested on the earliest Liquidity Event to
occur before the seventh anniversary of the Effective Date, provided that on the date of the
Liquidity Event the Participant is either still in the employ of the Company or a Subsidiary
or has a Retained Percentage in accordance with Section 9 (in which case only the Retained
Percentage shall become vested). If a Liquidity Event does not occur before the seventh
anniversary of the Effective Date, then, notwithstanding any other provision to the
contrary, all rights with respect to such RSUs shall be forfeited and cancelled with no
compensation due to the holder of the RSU Award.

     (b) Other Conditions. The Administrator may impose such other conditions as it
may deem advisable on any RSU Awards granted under this Plan, including, without limitation,
restrictions under the requirements of any stock exchange upon which the Common Stock or
            shares of the same class are then listed, and under any securities law applicable to such
Common Stock.

     (c) Payment. Upon the occurrence of a Liquidity Event before the seventh
anniversary of the Effective Date and satisfaction of such other conditions or restrictions
specified by the Administrator, the Company shall deliver to the holder either fully
transferable shares of Common Stock having a Fair Market Value equal to, or, in the sole
discretion of bhe Board, cash equal to, the RSU Value multiplied by the number of vested
RSUs subject to such holder’s RSU Award or, in the case of a Participant who terminated
employment with a Retained Percentage, the vested RSUs subject to such Retained Percentage.

     8. Restrictions on Transferability of RSU Awards. RSU Awards shall not be
transferable otherwise than by will or by the laws of descent and distribution. Any amount
otherwise payable to a deceased Participant shall be paid to the Participant’s estate.

     9. Termination of Employment.

     (a) If a Participant is terminated by the Company or any Subsidiary for Cause or
terminates for any reason other than as a result of Retirement, death or Disability, all
prior to a Liquidity Event and the seventh anniversary of the Effective Date, any RSUs
subject to the Participant’s RSU Award shall be cancelled and forfeited with no compensation
due to the Participant.

5

 

     (b) If a Participant is terminated by the Company or any Subsidiary without Cause or
terminates as a result of Retirement, death or Disability, all prior to a Liquidity Event
and the seventh anniversary of the Effective Date, the Participant will retain a percentage
of RSUs subject to the RSU Award (the “Retained Percentage”) as provided in subparagraphs
(i) and (ii) below. The Retained Percentage shall remain subject to the conditions in
Sections 7(a) and (b) (vesting) and 7(c) (payment). In the event a Liquidity Event does not
occur by the seventh anniversary of the Effective Date, the RSUs subject to the Retained
Percentage shall be cancelled and forfeited with no compensation due to the Participant.

     (i) In the event of a termination of employment due to Retirement, the
Retained Percentage will be: (x) 25% if the date of termination is after
the first anniversary of the Effective Date and before the second anniversary of the
Effective Date, (y) 50% if the date of termination is on or after the second
anniversary of the Effective Date and before the third anniversary of the Effective
Date and (z) 75% if the date of termination is on or after the third
anniversary of the Effective Date.

     (ii) In the event of a termination of employment due to the Participant’s
death or Disability or by the Company without Cause, the Retained Percentage will be
75%.

     10. Adjustment of RSU Awards. If prior to the lapse of all of the restrictions and
conditions imposed pursuant to an RSU Award, there shall be declared and paid a stock dividend upon
the Common Stock or if the Common Stock shall be split up, converted, exchanged, reclassified, or
in any way substituted for, the number of shares of Common Stock and class which may be issued
pursuant to outstanding RSU Awards may be adjusted by the Board, in its sole discretion, if it
shall deem such an adjustment to be necessary or appropriate.

     11. Issuance of shares of Common Stock and Compliance with Securities Act. Any holder
of an RSU Award shall make such representations and furnish such information as may, in the opinion
of counsel for the Company, be appropriate to permit the Company, in the light of the then
existence or non-existence of an effective Registration Statement under the Securities Act with
respect to the shares of Common Stock subject to such RSU Award, to issue the shares of Common
Stock in compliance with the provisions of the Securities Act or any comparable act. The Company
shall have the right, in its sole discretion, to legend any shares of Common Stock which may be
issued pursuant to an RSU Award, or may issue stop transfer orders in respect thereof.

     12. Amendment and Termination. Except as hereinafter provided, the Administrator may
at any time withdraw or from time to time amend the Plan as it relates to, and the terms and
conditions of, any outstanding RSU Awards, with the consent of the affected holder of an RSU Award;
provided, however, that the Administrator may amend the Plan and the terms and conditions of any
RSU Awards to comply with the applicable requirements of Section 409A of the Internal Revenue Code,
without the consent of any affected holders of RSU Awards.

6

 

     13. General Provisions.

     (a) Withholding. The Company or Subsidiary shall withhold from amounts payable
in cash under the Plan such federal, state or local taxes as the Company or Subsidiary
determines are required to be withheld pursuant to any applicable law or regulation. In any
event, the holder shall make available to the Company or Subsidiary, promptly when requested
by the Company or such Subsidiary, sufficient funds to meet the requirements of such
withholding; and the Company or Subsidiary shall be entitled to take and authorize such
steps as it may deem advisable in order to have such funds made available to the Company or
Subsidiary out of any funds or property due or to become due to the holder of such RSU
Award.

     (b) Employee Matters. Nothing contained herein shall give any Participant the
right to be retained in the employment of the Company or any successor, or affect the
Company’s right to terminate any Participant at any time. The Plan is not a term or
condition of any individual’s employment and no Participant shall have any legal right to
any payment (in cash or shares of Common Stock) hereunder except to the extent all
conditions relating to the receipt of such payment have been satisfied.

     (c) Arbitration. Any claim, dispute or controversy arising out of or relating
to the Plan shall be submitted to binding arbitration in Ohio to a single arbitrator chosen
in accordance with the rules of the American Arbitration Association (“AAA”). The
arbitrator’s decision shall be final and binding upon the parties and those who may have
derivative claims through the parties, and shall be entitled to enforcement in any court of
competent jurisdiction. Unless a controlling law or court decision provides otherwise, the
costs and expenses of the arbitrator shall be shared equally by the parties.

     (d) Governing Law. This Plan and all rights and obligations under this Plan
shall be governed by and construed in accordance with the substantive laws of the State of
Ohio, excluding any conflicts or choice of law rules or principle that might otherwise refer
construction or interpretation of this Plan to provisions of the substantive law of any
jurisdiction other than the State of Ohio.

7

 

     (e) Severability. In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality shall not affect the remaining parts of the Plan and
the Plan shall be construed and enforced as if the illegal or invalid provisions had not
been included.

     IN WITNESS WHEREOF, the Company has caused these presents to be executed by a duly authorized
officer as of the 26th day of June, 2006.

	 	 	 
	 

	 	DAY INTERNATIONAL GROUP, INC.

	 

	 	By:  

	 

	 	Name:  

	 

	 	Title:  

8

 

Schedule A

	 	 	 	 	 
	 	 	 	 	Base Value
	Name	 	Number of RSUs	 	Per RSU
	 
	 	 	 	 
	Dennis R. Wolters
	 	1,200	 	$1,000
	David B. Freimuth
	 	200	 	$1,000
	David B. Freimuth
	 	110	 	$1,200
	Christian Balderman
	 	200	 	$1,000
	John R. Elia
	 	200	 	$1,000
	Michael E. McLean
	 	200	 	$1,000
	Dermot Healy
	 	200	 	$1,200
	Dwaine R. Brooks
	 	112.5	 	$1,000
	William M. Howle
	 	112.5	 	$1,000
	William B. Branson
	 	112.5	 	$1,000
	Micheal P. Neroni
	 	60	 	$1,000
	Jean Boret
	 	10	 	$1,000
	Thomas Powlas
	 	10	 	$1,000

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