Document:

Exhibit 10.15

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made as of March 25,
2005 between Williams Scotsman, Inc., a corporation (hereinafter called “the
Company”), and Robert C. Singer, an individual (hereinafter called “Employee”).

 

W I T N E S S E T H

 

The Company wishes to employ Employee and
Employee wishes to enter into the employ of the Company on the terms and
conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the
facts, mutual promises and covenants contained herein, and intending to be
legally bound hereby, the Company and Employee agree as follows:

 

1.                                       Employment.  The Company agrees to employ
Employee in the position of Executive Vice President and Chief Financial
Officer under the terms, conditions, and restrictions contained in this
Agreement.

 

2.                                       Duties and Responsibilities.

 

(a)                                  Employee agrees to
perform such duties and responsibilities normally associated with the position
of Executive Vice President and Chief Financial Officer and as may be assigned
to Employee from time to time by the Company’s President and Chief Executive
Officer.

 

(b)                                 During his employment
with the Company, Employee shall devote his entire working time, energy, skill
and best efforts to the performance of his responsibilities hereunder in a
manner which will faithfully and diligently further the business and interest
of the Company.  In particular, during
his employment with the Company, Employee may not be employed by or otherwise
provide any services in exchange for compensation to any other company, unless
he obtains prior written authorization from the President and Chief Executive
Officer.  In no case may Employee during
his employment with the Company provide any services to or receive any
compensation from any competitor of the Company.

 

3.                                       Compensation.

 

(a)                                  For all of the
services rendered by Employee to the Company, Employee shall receive a biweekly
salary in the gross amount of  Eleven
Thousand Five Hundred Thirty-Eight Dollars and 46 cents ($11,538.46), less
taxes and other deductions required by law, payable in accordance with the
Company’s regular payroll practices in effect from time to time.

 

(b)                                 In addition to
Employee’s base salary, the Employee shall be eligible for a Management
Incentive of $125,000 for plan year 2005 (subject to the plan’s terms and
conditions).  Employee will also be
eligible for participation in the Company’s Stock Option Plan.  30,000 options will be granted in calendar
year 2005 with a grant price of $50.67.

 

(c)                                  During his
employment, Employee may be eligible to participate in the Company’s insurance
and other benefit plans, policies and programs, subject to their respective
eligibility requirements and other terms, conditions, restrictions and
exclusions.  Nothing herein shall
preclude or otherwise restrict the Company’s right to modify or terminate any
insurance or other benefit plan, policy or program as it deems appropriate in
its sole discretion.

 

(d)                                 Employee shall be
eligible for increases and additional management incentives that are offered at
the Company’s discretion.

 

4.                                       Termination of Employment.  Either
party can terminate this Agreement and the employment relationship between the
parties at any time and for any or no reason by providing the other party
twenty-eight (28) calendar days’ written notice, which notice the Company can
waive, in whole or in part, in its sole discretion, by paying Employee for such
time; provided however, the Company can terminate this Agreement and Employee’s
employment immediately without any prior notice in the event there is “Cause”
as defined in Paragraph 5(c) below or in the event of Employee’s
death.

 

 

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5.                                       Post-Termination Payment.

 

(a)                                  Except as provided in
Paragraph 5(b) and 5(f) below, Employee (or his estate) shall
not be eligible for any payments from the Company subsequent to the termination
of his employment if he:

 

(i)                                     Voluntarily
resigns;

 

(ii)                                  Dies;

 

(iii)                               Is discharged by the
Company for “Cause” as defined below; or

 

(iv)                              Is discharged by the
Company without “Cause” as defined below on or after March 24, 2008.

 

(b)                                 If Employee is
discharged without “Cause” as defined below prior to March 24, 2008 the
Company shall continue Employee’s then existing salary for a period of twelve
(12) months provided that Employee executes at the time of his termination of
employment a General Release satisfactory to the Company of any and all claims
which he may have arising out of or relating to his employment with and/or
termination of employment by the Company. 
Any pay which Employee receives in lieu of notice pursuant to
Paragraph 4 above shall offset the Company’s obligation, if any, under
this Paragraph 5(b).  The Company
also reserves the right, in its sole discretion, to make the severance payments
provided for in this Paragraph in a lump sum.

 

(c)                                  “Cause,” for purposes
of this Agreement, shall include, but not be limited to:  willful misconduct, fraud, misappropriation,
embezzlement, gross negligence, self-dealing, dishonesty, misrepresentation,
charged with or convicted of any felony or misdemeanor, material violation by
Employee of any Company policy or provision of this Agreement. “Cause” also
shall include Employee’s inability to perform the essential functions of his or
her job, for any reason, for a total of thirteen (13) weeks or more in any
rolling six (6) month period.

 

(d)                                 The termination of
Employee’s employment either by Employee or by the Company, whether with or
without Cause, shall not release Employee from Employee’s obligations and
restrictions under Paragraphs 6 and 7 of this Agreement.

 

(e)                                  Nothing in this
Agreement shall restrict the right of the Company to terminate Employee’s
employment, with or without Cause, pursuant to Paragraph 4 above.

 

(f)                                    Regardless of the
reason for the termination of Employee’s employment, whether by Employee or the
Company, whether with or without Cause, whether or not due to Employee’s death,
Employee (or his estate) will receive pay for any days actually worked by
Employee prior to the termination of his employment and any pay for accrued but
unused paid time off benefits, to the extent Employee may be eligible for same
under the Company’s policies.

 

(g)                                 Regardless of the
reason for the termination of Employee’s employment, whether by Employee or the
Company, whether with or without Cause, whether or not due to Employee’s death,
Employee (or his estate) shall not be eligible for any Company-paid benefits
subsequent to the termination of his/her employment.  In particular, and by way of example only,
Employee’s eligibility to continue to participate in the Company’s group health
plan pursuant to COBRA shall be at his sole expense effective on the first day
of the month following the month in which his employment terminates, subject to
COBRA’s eligibility requirements and other terms, conditions, restrictions and
exclusions.

 

(h)                                 Other than as
specifically set forth in this Paragraph 5, Employee shall not be eligible
for any payments from the Company subsequent to the termination of his
employment.  In particular, if Employee
receives payment(s) pursuant to Paragraph 5(b) above, such payments
are in lieu of and not in addition to any payments to which he otherwise would
be entitled under any Company Severance Policy or Plan that may exist or be
created or amended in the future.

 

 

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6.                                       Company Property.

 

(a)                                  Any and all writings,
inventions, improvements, processes, procedures and/or techniques which
Employee may make, conceive, discover or develop, either solely or jointly with
any other person or persons, at any time during his employment with the
Company, whether during working hours or at any other time and whether at the
request or upon the suggestion of Company or otherwise, which relate to or are
useful in connection with any business now or hereafter carried on or
contemplated by the Company, including developments or expansions of its
present fields of operations, shall be the sole and exclusive property of the
Company.  Employee shall make full
disclosure to the Company of all such writings, inventions, improvements,
processes, procedures and techniques, and shall do everything necessary or
desirable to vest the absolute title thereto in the Company.  Both during and after his employment with the
Company, regardless of the reason for the termination, whether by Employee or
the Company, whether with or without cause, Employee shall write and prepare
all specifications and procedures regarding such inventions, improvements,
processes, procedures and techniques and otherwise aid and assist the Company
so that the Company can prepare and present applications for copyright or
Letters Patent therefore and can secure such copyright or Letters Patent
wherever possible, as well as reissues, renewals, and extensions thereof, and
can obtain the record title to such copyright or patents, or enforce copyrights
or patents, so that the Company shall be the sole and absolute owner thereof in
all countries in which it may desire to have copyright or patent protection.  Employee shall not be entitled to any
additional or special compensation or reimbursement regarding any and all such
writings, inventions, improvements, processes, procedures and techniques,
except that the Company shall reimburse Employee for any expenses which
Employee may incur in vesting absolute title thereto in the Company.

 

(b)                                 Employee acknowledges
that all documents, records, files, computer programs and data in his/her
possession or custody, whether made by Employee or any other person, relating
to products/services offered by or other activities of the Company (whether or
not the information contained therein is deemed confidential), are and shall
remain the sole and exclusive  property
of the Company.

 

(c)                                  Immediately upon the
termination of Employee’s employment, whether initiated by Employee or the
Company, whether with or without Cause, Employee shall deliver to the Company’s
President and Chief Executive Officer, retaining no copies, all Company
property (for example, keys and credit cards) and all documents, records, files,
computer programs and other data or other writings relating to the Company’s
business, regardless of where or by whom said writings were kept or prepared.

 

7.                                       Confidentiality and Covenants Against Interference.

 

(a)                                  During the course of
Employee’s employment with the Company, Employee may, from time to time, be
placed in a position of trust and confidence in which he/she receives or
contributes to the creation of confidential and/or proprietary information
relative to the operations of the Company. 
This confidential and/or proprietary information includes, but is not
limited to:  business, manufacturing,
marketing, legal and accounting methods, policies, plans, procedures,
strategies and techniques; information concerning the Company’s earnings,
production volumes and methods for doing business; research and development
projects, plans and results; trade secrets (e.g., formulas, methods,
processes and specifications) and technical information; the names and
addresses of the Company’s employees, vendors, suppliers, distributors,
customers, potential customers and former customers; customer lists; pricing,
credit and financial information; and any other data or information relating to
the business of the Company which is not generally known by and readily accessible
to the public.  Employee may use and/or
disclose confidential and/or proprietary information only during his employment
with the Company and only as necessary to further the Company’s interests.  During his employment with the Company and at
all times thereafter, regardless of the reason for the termination, whether by
Employee or the Company, whether with or without Cause, Employee shall not use
for his personal benefit or for any purpose which does not further and/or which
is inconsistent with the interests of the Company, or disclose, communicate or
divulge to any person, firm, association, or company other than the Company,
any confidential and/or proprietary information which he will acquire in the
course of his employment and which is not generally known by and/or readily
accessible to the public.

 

(b)                                 For a period of
one (1)year after the termination of his employment with the Company, for
any reason, whether by Employee or the Company, whether with or without Cause,
Employee shall not, for his own benefit or for the benefit of any third party,
directly or indirectly, in any capacity (as an employee, independent
contractor, owner or otherwise) participate in any of the following activities:

 

(i)                                     Induce or attempt
to induce any employee of the Company to terminate his or her employment with
the Company or any prospective employee not to establish a relationship with
the Company;

 

(ii)                                  Induce or attempt to
induce any current customer to terminate its/his/her relationship with the
Company or any potential customer not to establish a relationship with the
Company; or

 

 

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(iii)                               Solicit or do any
solicited or unsolicited business which would compete with the Company’s
business with any current customer or former customer within two (2) years
of date of termination.

 

In light of the fact that the Company’s
customers and sales are throughout the entire United States, the restrictions
set forth in this Paragraph 7(b) shall apply throughout the entire
United States.

 

(c)                                  Employee acknowledges
and agrees that, in view of the nature of the business in which the Company is
engaged, the restrictions contained in Paragraphs 7(a) and 7(b) above
are reasonable and necessary to protect the legitimate interests of the Company,
and that any violation thereof would result in irreparable injuries to the
Company, and Employee therefore acknowledges and agrees that, in the event of
his violation of any of these restrictions, the Company shall be entitled to
obtain from any court of competent jurisdiction preliminary and permanent
injunctive relief as well as damages and an equitable accounting of all
earnings, profits and other benefits arising from such violation, which rights
shall be cumulative and in addition to any other rights or remedies to which
the Company may be entitled.

 

(d)                                 Employee further
agrees that if any or any portion of the foregoing covenants, or the
application thereof, is construed to be invalid or unenforceable, the remainder
of such covenant or covenants shall not be affected and the remaining covenant
or covenants shall then be given full force and effect without regard to the
invalid or unenforceable portion(s).  If
a covenant is held to be unenforceable because of the area covered, the
duration thereof and/or the scope thereof, Employee agrees that the court
making such determination shall have the power to reduce the area and/or the
duration and/or scope thereof, and the covenant shall then be enforceable in
its reduced form.

 

(e)                                  In the event Employee
violates any of the restrictions contained in this Paragraph 7, the
Company shall have the right, in its sole discretion, to cease making any
payments to Employee which otherwise may be required pursuant to
Paragraph 5(b) above; however, this shall not affect the validity or
enforceability of the covenants in Paragraphs 7(a) and 7(b) above,
which shall remain in full force and effect.

 

(f)                                    Employee
acknowledges that he is not eligible for the Severance Payments set forth in
paragraph 5(b) above under any other policy, plan, agreement or practice and
that the potential to receive these Severance Payment in addition to the
Company’s hiring of Employee constitutes adequate consideration for Employee’s
agreeing to be bound by the covenants contained in this Paragraph 7.

 

(g)                                 Employee represents
and warrants that the knowledge, skill and abilities he possesses at the time
of his execution of this Agreement are sufficient to permit him to earn a
living  during the Restrictive Period
while honoring his commitments set forth in this Agreement.

 

8.                                       Prior Agreements.  Employee represents to the
Company that:

 

(a)                                  There are no
restrictions, agreements or understandings whatsoever to which Employee is a
party which would prevent or make unlawful his execution of this Agreement or
his employment hereunder;

 

(b)                                 There are no
agreements, restrictions or understandings whatsoever to which Employee is a
party which place any limitations as to the companies or individuals with whom
he may do business;

 

(c)                                  His execution of this
Agreement and his employment hereunder shall not constitute a breach of any
contract, agreement or understanding, oral or written, to which he is a party
and by which he is bound; and

 

(d)                                 He is free and able to
execute this Agreement and to enter into employment by the Company.

 

9.                                       Miscellaneous.

 

(a)                                  Waiver.  The waiver by the Company of a breach of any
provision of this Agreement by Employee shall not operate or be construed as a
waiver of any subsequent breach by Employee. 
No waiver shall be valid, unless signed in writing by the Company’s
President and Chief Executive Officer.

 

(b)                                 Controlling Law.
This Agreement shall be governed by and construed in  accordance with the laws of the State of
Maryland.  Further, the parties hereby
agree that the venue for any action, suit or proceeding related to or arising
out of this Agreement will be Baltimore County, Maryland.  The parties agree and consent that the
Circuit Court for Baltimore County shall have exclusive jurisdiction over any
action, suit or proceeding related to or arising out of the Agreement and that
the parties irrevocably submit to the jurisdiction of that court.

 

 

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(c)                                  Successors and
Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective heirs and successors.  The
Company may assign this Agreement to any person or entity, including, but not
limited to, any successor, parent, subsidiary or affiliated entity of the
Company.  The Company also may assign
this Agreement in connection with any sale or merger (whether a sale or merger
of stock or assets or otherwise) of the Company or the business of the Company.
Employee expressly consents to the assignment of the Confidentiality and Covenants
Against Interference provision set forth in Paragraph 7 above of this
Agreement to any new owner of the Company’s business or purchaser of the
Company.  Employee may not assign,
pledge, or encumber his interest in this Agreement, or any part thereof, without
the written consent of the Company.

 

(d)                                 Execution in
Counterparts.  This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original as against any party whose signature appears thereon, and all of which
shall together constitute one and the same instrument.

 

(e)                                  Provisions
Separable.  The provisions of this
Agreement are independent of and separable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact
that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

 

(f)                                    Entire Agreement.  This Agreement contains the entire
understanding between the parties hereto with respect to the subject matter
hereof, and supersedes any and all prior and contemporaneous agreements and
understandings, inducements or conditions, express or implied, oral or
written.  The express terms hereof
control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. 
This Agreement may not be modified or amended other than by an agreement
in writing and signed by the Company’s President and Chief Executive Officer.

 

(g)                                 Paragraph Headings.  The paragraph headings in this Agreement are
for convenience only; they form no part of this Agreement and shall not affect
its interpretation.

 

(h)                                 Survival.  The covenants and requirements contained in
Paragraph 6 and 7 above shall survive the termination of Employee’s
employment.

 

IN WITNESS WHEREOF, the parties execute and
deliver this Agreement.

 

Williams
Scotsman, Inc.

 

 

	
  By: /s/ 

  	
  Gerard E.
  Holthaus

  	
   

  	
  By: /s/

  	
  Robert C.
  Singer

  	
   

  	
   

  
	
   

  	
  Gerard E.
  Holthaus,

  	
   

  	
  Robert C.
  Singer

  	
   

  
	
   

  	
  President &
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: March 25,
  2005

  	
  Date: March 25,
  2005

  	
   

  

 

 

 

5Exhibit 10.16

 

SCOTSMAN HOLDINGS, INC.

EMPLOYEE STOCK OPTION PLAN

 

INCENTIVE STOCK OPTION AGREEMENT

 

THIS INCENTIVE STOCK OPTION AGREEMENT (this “Agreement”) is made as of the          day
of                       ,
by and between Scotsman Holdings, Inc., a Delaware corporation (the “Company”),
and                                             
(the “Optionee”).

 

WHEREAS, the Company
and its stockholders have approved the Scotsman Holdings, Inc.                       
Employee Stock Option Plan (the “Plan”), pursuant to which the Company may,
from time to time, enter into stock option agreements with certain of its
employees eligible to participate in the Plan;

 

WHEREAS, the
Optionee is now in the employ of the Company or an Affiliate of the Company as
a Key Employee, and the Company desires to have the Optionee remain in such
employ and to afford the Optionee the opportunity to acquire, or enlarge, the
Optionee’s stock ownership in the Company so that the Optionee may have a
direct proprietary interest in the Company’s success; and

 

WHEREAS, the
Committee has, pursuant to its authority under the Plan, granted to the
Optionee an Award in the form of an Incentive Stock Option to acquire up to the
number of shares of the Company’s Common Stock set forth in Section 1 below in accordance with the provisions of
the Plan and subject to the terms and conditions of the Plan and this
Agreement.

 

NOW, THEREFORE, in
consideration of the mutual undertakings and obligations of the parties herein
and other good and valuable consideration, the parties hereby agree as follows:

 

1.                                       Grant of Option.           Subject
to the terms, conditions and provisions of this Agreement and the Plan, the
Company hereby grants to the Optionee an Option to purchase up to #                 
shares of the Company’s Common Stock, par value $.01 per share (this “Option”),
which Option is intended to be an Incentive Stock Option.  The Optionee accepts this Option subject to
all of the terms, conditions and provisions of this Agreement and the Plan, and
agrees to be bound and to abide by all requests, decisions and determinations
of the Committee made in accordance with the Plan.

 

2.                                       The Plan.                                              This Option is intended to conform in all respects
with the terms of the Plan as presently written.  Inconsistencies between this Option and the
Plan will be resolved according to the terms of the Plan, a copy of which has
been supplied to you.

 

3.                                       Option Price.                           The exercise price for the Option shall be $                 
per share.

 

4.                                       Exercise of the Option.          The
Option granted hereunder shall be exercised, in whole or in part, subject to
the time and performance based vesting requirements set forth in Exhibit A and Sections 7 and 8 hereof, at any time during the term of the Option by
delivering to the Secretary of the Company on any business day (the “Exercise
Date”), written notice specifying the number of shares as to which the Option
is being exercised (the “Exercised Shares”) pursuant to the form on Exhibit B, accompanied by: (i) cash or check
payable to the order of the Company for the aggregate Option Price of the
Exercised Shares; or (ii) in the discretion of the Committee, shares of
Common Stock of the Company (the “Stock Payment”) with a Fair Market Value
equal to or less than the aggregate Option Price of the Exercised Shares, plus
cash or check payable to the order of the Company for an amount equal to that
amount, if any, by which the aggregate Option Price for the Exercised Shares
exceeds the Fair Market Value of the Stock Payment.  If the Option granted hereunder is exercised
in part, the Optionee must purchase not less than 100 shares at any one time.

 

5.                                       Taxes.              The Company shall be entitled to require as a
condition of delivery of the certificate representing the Exercised Shares that
the Optionee remit an amount sufficient to satisfy all federal, state and other
government taxes or withholding requirements; provided,
further, that the Company shall have the right to withhold such sums
from any compensation otherwise due to the Optionee.

 

 

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6.                                       Issuance of Stock.                                              Upon payment in full of the aggregate Option Price,
the Company shall issue to the Optionee a certificate representing the
Exercised Shares, in the form of fully paid and non-assessable Common Stock of
the Company.

 

7.                                       Termination of Employment.

 

(a)                                  Upon termination of employment of a Participant with
the Company or an Affiliate, this Option shall, to the extent not previously
exercised, terminate and become null and void, provided that:

 

(1)                      if the Participant shall die while in the employ of
the Company or an Affiliate or during either the three month or one year
period, whichever is applicable, specified in clause (2) below and at a
time when such Participant was entitled to exercise any portion of this Option
as herein provided, the legal representative of such Participant, or such
person who acquired this Option by bequest or inheritance or by reason of the
death of the Participant, shall have the right to exercise this Option, to the extent
not previously exercised, in respect of any or all of such number of Shares
that such Participant is entitled to purchase pursuant to this Option at the
time of such Participant’s death, at any time up to and including one year
after the date of death; and

 

(2)                      if the employment of any Participant shall terminate
by reason of the Participant’s Retirement, Disability or dismissal other than
for Cause, and while such Participant is entitled to exercise this Option, as
herein provided, such Participant shall have the right to exercise this Option,
to the extent not theretofore exercised, in respect of any or all of such
number of shares that such Participant is entitled to purchase pursuant to this
Option at the time of such termination, at any time up to and including (i) three
months after the date of such termination of employment in the case of
termination by reason of Retirement or dismissal other than for Cause and (ii) one
year after the date of termination of employment in the case of termination by
reason of Disability.

 

(b)                                 If a Participant voluntarily terminates his
employment, or is discharge for Cause, any Option granted hereunder shall
terminate.

 

(c)                                  If this Option shall be exercised by the legal
representative of a deceased or a disabled Participant, or by a person who
acquired this Option by bequest or inheritance or by reason of death of any
Participant, written notice of such exercise shall be accompanied by a
certified copy of letters testamentary or equivalent proof of the right of such
legal representative or other person to exercise this Option.

 

8.                                       Acceleration of Vesting in Certain Circumstances.

 

(a)                                  For purposes hereof, a “change in control” shall be
deemed to occur if: (i) any “person” (as such term is used in Section 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended), other than
Cypress Merchant Banking Partners L.P., Cypress Offshore Partners L.P., BT
Investment Partners, Inc., and Scotsman Partners, L.P., or any of their
affiliates or any combination there (collectively, the “Investor Group”), is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under Exchange
Act), directly or indirectly, of all of the outstanding capital stock of the
Company; or (ii) a sale of all or substantially all of the assets of the
Company other than to an entity owned or controlled by the Investor Group is
consummated; or (iii) any merger, consolidation, issuance of securities or
purchase or sale of assets, the result of which would be the occurrence of any
event described in clause (i) or (ii) above, is consummated.

 

(b)                                 Upon the occurrence of (i) a change in control
of the Company, or (ii) the effective date of the Company’s registration
statement under the Securities Act of 1933, as amended (the “Securities Act”),
registering Common Stock in connection with an initial public offering (each an
“acceleration event”): (a) unvested options subject to the time-based
vesting requirements shall immediately vest and become exercisable and (b) unvested
options subject to performance based vesting requirements shall immediately
vest and become exercisable in the event that the cumulative EBITDA target (set
forth in Exhibit A) for the most recently
completed fiscal year and for the year to date period (on a straight line
pro-rata basis) ending on the month end immediately proceeding the measurement
date have been achieved.

 

(c)                                  If, upon the occurrence of an acceleration event, at
least 90% but less than 100% of the cumulative EBITDA target for the most
recently completed fiscal year has been met, the performance based options
shall vest proportionately as set forth in Exhibit A-1.

 

 

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9.                                       Stockholders’ Agreement.     It is a condition to the effectiveness of this
Option and the obligation of the Company to issue any Shares hereunder that the
Participant shall have executed, on or prior to the date of the execution of
this Agreement, the Amended and Restated Management Stockholders’ and
Optionholders’ Agreement, dated as of                                 ,
by and among the Company, the Stockholders and Permitted Transferees (each as
defined therein) as such agreement may be amended or restated (the “Stockholders
Agreement”).  If the Participant has not
executed the Stockholders Agreement on or before the date hereof, this Option
shall automatically and without any further notice terminate and be null and
void.

 

10.                                 Term of Option.  Subject to the terms, conditions
and provisions of this Agreement and the Plan, this Option shall terminate ten
years from the date of grant on                          .

 

11.                                 Non-Transferability of Option.                              This Option may be exercised only by the Participant
and may not be assigned or transferred except as expressly provided in the
Plan.  Immediately upon any attempt to
assign or transfer this Option, by operation of law or otherwise, in violation
of this Agreement, this Option shall terminate and be null and void.

 

12.                                 No Rights of Stockholder.      The Participant shall not be deemed a stockholder of
the Company for any purpose until the shares of the Company’s Common Stock
subject to this Option have been issued to the Participant upon the exercise of
this Option.  The Participant shall have
no obligation to exercise this Option.

 

13.                                 Common Stock Acquired for Investment.                       The Participant agrees that the Company may require
the Participant to certify (in such form as the Company may specify) prior to
each time or times the Exercised Shares are purchased that such Exercised
Shares are being purchased by the Participant for investment and not with any
intention of distributing the same.  The
stock certificates for any shares of Common Stock issued by the Company upon
exercise of this Option shall be stamped, if appropriate, with a legend restricting
transferability of the Shares in accordance with this Agreement and the Plan,
the Securities Act, and any applicable state securities laws.

 

14.                                 Notice of Disposition.                           In the event the Participant makes a disposition (as
that term is defined in Section 424(c) of the Code) of the Exercised
Shares within two years from the date hereof or within one year from the date
of acquiring such Exercised Shares, the Participant  shall notify the Company of such disposition
within thirty (30) days thereof.

 

15.                                 The Company’s Rights.                  The existence of this Option shall not affect in any
way the right or power of the Company or its stockholders to make or authorize
any or all adjustments, recapitalizations, reorganizations or other changes in
the Company’s capital structure, or its business, or any merger or
consolidation of the Company, or any issue of bonds, debentures, preferred or
other stocks with preference ahead of or convertible into, or otherwise
affecting the Common Stock or rights thereof, or dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

 

16.                                 Recapitalization.         In the event of a change in the number of issued
shares of Common Stock of the Company resulting from a subdivision or
consolidation of shares or other capital adjustment, or the payment of a stock
dividend or other increase or decrease in such shares, the Committee may, in
its sole and absolute discretion, make such adjustments to this Option as it
deems appropriate.

 

17.                                 Miscellaneous.

 

(a)                                  The Participant acknowledges that the exercise of
this Option is subject to the Certificate of Incorporation and the Bylaws of
the Company, as both may be amended from time to time, and any applicable
federal or state laws, rules or regulations.

 

(b)                                 The Committee shall have the right, in its sole and
absolute discretion, to alter or amend this Agreement, from time to time, in
any manner for the purpose of promoting the objectives of the Plan but only if
all agreements granting options to purchase shares of the Company’s Common
Stock pursuant to the Plan which are in effect and not wholly exercised at the
time of such alteration or amendment shall also be similarly altered or amended
with substantially the same effect.  Any
such alteration or amendment of this Agreement by the Committee shall, upon
adoption thereof without requirement for consent or other action with respect
thereto by any such person.  The Company
shall give written notice to the Participant of any such alternation or
amendment of this Agreement by the Committee as promptly as practical after the
adoption thereof.  The foregoing shall
not restrict the ability of the Participant and the Company by mutual consent
to alter or amend this Agreement in any manner which is consistent with the
Plan and approved by the Committee.

 

 

3

 

(c)                                  This Agreement shall be governed by and construed in
accordance with the laws of the State of Maryland, exclusive of its conflicts
of law provisions.

 

(d)                                 The descriptive headings of the sections and
paragraphs of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

 

(e)                                  Any notice or communication required to be given pursuant
to this Agreement shall be in writing and shall be sufficiently made or given
if hand-delivered or mailed by certified mail, addressed to the Participant at
the address contained in the records of the Company or to the Company at its
principal office.

 

(f)                                    This Agreement and the documents referred to herein
contain the complete agreement between the parties and supersede any prior
understandings, agreements or representations by or between the parties,
written or oral, which may have related to the subject matter hereof in any
way.

 

(g)                                 This Agreement and the documents referred to herein
contain the complete agreement between the parties and supersede any prior
understandings, agreements or representations by or between the parties,
written or oral, which may have related to the subject matter hereof in any
way.

 

(h)                                 This Agreement may be executed simultaneously in one
or more counterparts each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.

 

(i)                                     To the extent that any capitalized term used in this
Agreement is not defined herein, it shall be given the meaning ascribed to such
term in the Plan.

 

IN WITNESS WHEREOF, the parties have executed this
Agreement on                                           ,
20          , effective, as of the
day and year first above written.

 

	
   

  	
  WITNESS:

  	
  SCOTSMAN HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Gerard E. Holthaus

  
	
   

  	
   

  	
  Chairman, President and CEO

  
	
   

  	
   

  
	
   

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Participant

  
						

 

 

4

 

EXHIBIT A

SCOTSMAN HOLDINGS, INC.

200__ EMPLOYEE STOCK OPTION

 

VESTING OF INCENTIVE STOCK OPTIONS

 

The
award of Incentive Stock Options under this Agreement vests and become
exercisable as follows:

 

Performance-based Vesting

For 50% of the shares subject to the Option, as
follows:

 

	
  Targets **

  	
   

  	
  EBITDA
  Targets *

  	
   

  	
  Cumulative

  EBITDA 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Options for Shares become exercisable on

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  December 31, 200__ if the Company’s 200__

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EBITDA target is achieved.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Options for Shares become exercisable on

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  December 31, 200__ if the Company’s 200__

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EBITDA target is achieved.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Options for Shares become exercisable on

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  December 31, 200__ if the Company’s 200__

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EBITDA target is achieved.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Options for Shares become exercisable on

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  December 31, 200__ if the Company’s 200__

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EBITDA target is achieved.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Options for Shares becomes exercisable on

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  December 31, 200__ if the Company’s 200__

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EBITDA target is achieved.

  	
   

  	
   

  	
   

  	
   

  

 

Time Based Vesting

 

For 50% of the Shares subject to the Option, as
follows:

 

10% shares on December 31, 200___

10% shares on December 31, 200___

10% shares on December 31, 200___

10% shares on December 31, 200___

10% shares on December 31, 200___

 

*  Subject to
annual Cap-X adjustments.

 

**If
the Cumulative EBITDA Targets as of the most recently completed fiscal year and
for the year to date period (on a straight line pro-rata basis) ending on the
month end immediately preceding the measurement date have been achieved, all
unvested performance based Options shall immediately vest and become
exercisable.  For purposes hereof, the
measurement date will be the earlier of the date on which audited financial
statements for the year ended December 31, 200___ become available or upon
the occurrence of a change in control or an initial public offering as defined
in the Agreement.

 

 

5

 

EXHIBIT A-1

SCOTSMAN HOLDINGS, INC.

200__ EMPLOYEE STOCK OPTION PLAN

 

PARTIAL VESTING OF
INCENTIVE STOCK OPTIONS

 

If over 90% but less than 100% of the Cumulative EBITDA Targets as of the
most recently completed fiscal and for the year to date period (on a straight
line pro-rata basis) ending on the month end immediately preceding the
measurement date have been achieved, unvested performance based Options shall
vest and become exercisable as set forth below.

 

	
  Percentage
  of Cumulative

  EBITDA Targets Achieved

  	
   

  	
  Percent of Unvested Performance
  Based Options

  Vested & Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  at
  least 90

  	
   

  	
  50

  	
   

  
	
  90.1 to
  91

  	
   

  	
  55

  	
   

  
	
  91.1 to
  92

  	
   

  	
  60

  	
   

  
	
  92.1 to
  93

  	
   

  	
  65

  	
   

  
	
  93.1 to
  94

  	
   

  	
  70

  	
   

  
	
  94.1 to
  95

  	
   

  	
  75

  	
   

  
	
  95.1 to
  96

  	
   

  	
  80

  	
   

  
	
  96.1 to
  97

  	
   

  	
  85

  	
   

  
	
  97.1 to
  98

  	
   

  	
  90

  	
   

  
	
  98.1 to
  99

  	
   

  	
  95

  	
   

  
	
  at
  least 99.1

  	
   

  	
  100

  	
   

  

 

 

6

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