Document:

Fiscal Year 2006 Incentive Bonus Plan

 Exhibit 10.46 
  
 KEWAUNEE SCIENTIFIC CORPORATION 
 FISCAL YEAR 2006 
 INCENTIVE BONUS PLAN 
  
 The Fiscal Year 2006 Incentive Bonus Plan (the Plan) will provide for a bonus pool and bonus
payouts based upon achievement of various levels of pre-tax earnings (after bonus accruals) for the year and other conditions described herein, as approved by the Company’s Board of Directors. The Plan is proposed as a one-year plan for Fiscal
Year 2006. 
  
 The provisions of the Plan are: 
  

	1.	Eligibility of Participants to Share in the Bonus Pool 

  

	 	a.	Eligible participants of the Plan will be nominated by the President and approved by the Board of Directors, upon recommendation by the Compensation Committee. The bonus potential
percentages for each participant in the Plan will also be approved by the Board of Directors, upon recommendation by the Compensation Committee. 

  

	 	b.	Each participant will be eligible to share in the pool up to the specified percentage of his or her May 1, 2005 base salary. 

  

	 	c.	In addition to individuals reporting directly to the President, managers fulfilling the following criteria are eligible to participate in the Plan: 

  

	 	1.	Salary Grade 14 or above; 

  

	 	2.	Seniority of one year or more; 

  

	 	3.	Is not currently in another incentive plan (e.g., sales plan); 

  

	 	4.	Is a direct report to a direct report to the President; or 

  

	 	5.	Is a manager recommended by the President. 

  

	 	d.	Participants in the Plan and their applicable bonus potential amounts are shown in the charts on pages BP-4, BP-5, BP-6, and BP-7. 

  

	2.	Building of a Bonus Pool 

  

	 	a.	Operational Units 

  

	 	•	 	The operational units (the Laboratory Products Group, the Technical Furniture Group, Statesville Operations, and International Operations) will start to accrue pools for potential
bonus payouts once pre-tax operating earnings of each operational unit reach the amounts shown as Goal 1 in the schedules on pages BP-4, BP-5, BP-6, and BP-7, and maximum incentive bonus payouts will be accrued and available for payout based upon
the guidelines shown on those schedules. 

  

 BP-8 

	 	b.	Corporate Pool 

  

	 	•	 	A pool will start accumulating once pre-tax earnings reach the amounts shown on page BP-4, and maximum bonus payouts will be accrued and available for payout based upon the
guidelines shown on that schedule. 

  

	3.	Bonus Payout Conditions 

  

	 	a.	If the Company achieves pre-tax earnings less than the amounts shown as Goal 1 in the Plan, no awards will be paid to any corporate employee with that goal, except at the discretion
of the Board of Directors, upon recommendation by the Compensation Committee. 

  

	 	b.	If an operational unit achieves pre-tax earnings less than the amounts shown for its Goal 1 in the Plan, no awards will be paid to its employees except at the discretion of the
Board of Directors, upon recommendation by the Compensation Committee. 

  

	 	c.	All participants will earn their awards dependent on their operational unit’s performance and their individual MBO performance. 

  

	 	d.	Beginning with the achievement of Goal 1, the bonus potential percentage for each participant is linear between each goal with the corresponding increase in pre-tax earnings, up to
the individual’s maximum bonus potential percentage. 

  

	 	e.	Positive or negative financial adjustments outside the control of management (such as, but not limited to, proceeds from insurance claims, gains or losses from the sale of capital
assets, adoption of new generally accepted accounting pronouncements, etc.) will be assessed by the Board of Directors and the pre-tax earnings under the Plan may be adjusted for these items. 

  

	 	f.	Any portion of the bonus pool not awarded to participants will be retained by the Company. 

  

	 	g.	If a participant transfers between performance entities during the year, his or her incentive compensation will be based on the performance of the respective entities on a pro rata
basis from his or her transfer date as determined by the President. 

  

	 	h.	A participant must be an employee of the Company on the last day of the plan year (April 30) to be eligible to receive a bonus. In unusual circumstances, however, the Board of
Directors, upon recommendation by the Compensation Committee, may grant a discretionary bonus. 

  

	 	i.	The Board of Directors, upon recommendation by the Compensation Committee, may approve the pro rata participation of a participant who joins the Company or who is appointed to a key
position within the Company after the outset of the Plan year, with a pro rata increase in the bonus pool. 

  

 BP-9 

	4.	Participant’s Bonus Potential 

  
 Each participant’s bonus potential will be comprised of the following: 
  

	 	a.	A Fixed Bonus equal to 75% of each participant’s bonus potential will be based on achievement of corporate or divisional pre-tax earnings goals, as set forth in the Plan, and

  

	 	b.	A Discretionary Bonus up to the remaining 25% of each participant’s bonus potential will be calculated, taking into account the participant’s MBO achievements and other
relevant factors during the year. The discretionary portion of each participant’s bonus will take into account the participant’s achievement of management goals established, and weighted, in May 2005, and approved by the President. The
degree of achievement of these goals will be recommended by each participant’s manager immediately subsequent to April 30, 2006, and the discretionary bonus, if any, will then be determined and awarded at the discretion of the Board of
Directors, upon recommendation by the President and the Compensation Committee. 

  

	5.	The Plan may be amended at any time by the Board of Directors. 

  

 BP-10Long-Term Performance Incentive Plan

 Exhibit 10.49 
  
 KEWAUNEE SCIENTIFIC CORPORATION 
  
 LONG-TERM PERFORMANCE INCENTIVE PLAN 
  
 For the Period FY 2006 – FY 2008 
  
 The Long-Term Performance Incentive Plan (“Plan”) of the Company provides selected participants an opportunity to receive a
special bonus based on the attainment of financial goals over a three-year period, meeting the expectations of the Board as determined by the Board at the beginning of the performance period. The payment of benefits under the Plan will be based upon
the Company achieving the prescribed earnings per share (EPS) and the performance of the Company’s stock over the three-year period. The provisions of the Plan are as follows: 
  
 Awards 
  
 At the Board’s discretion, each participant selected by the Board shall receive an award grant under the Plan of a specified number of performance stock appreciation
rights (PSARs) as of May 1, 2005, the beginning of the three-year performance period. The PSAR bonus opportunity provided to participants shall be calculated as follows: 
  
 Number of PSARs granted at beginning of period x (Company stock price at the end of the performance period minus the
Company stock price at the beginning of the three-year performance period) 
  
 “Stock price” shall mean the average closing price of the Company’s stock for the five (5) business days immediately preceding the award grant date and the end of the performance period. 
  
 Performance Levels 
  
 The performance metric for vesting under the Plan will be based on the Company achieving a specified EPS, as prescribed by the Board, over a
three-year performance period. A specified return on equity (ROE) for each of the three years of the performance period will be used as a guide in the establishment of the EPS goals. The performance goal for the first performance period will be
based on a percentage ROE established by the Board for the period beginning May 1, 2005, and ending on April 30, 2008, with a projected target EPS for each year. Any future performance periods and award grants under the Plan shall be made at the
Board’s discretion, with such ROE, performance periods and goals as the Board determines. 
  
 Annual expenses, accrued or paid, associated with vesting under the Plan and bonuses accrued or paid under other plans, will be included in the computation of each year’s EPS. Positive or negative financial
adjustments outside the control of management (such as, but not limited to, proceeds from insurance claims, settlement or judgment payments from claims arising prior to 

  

 1 

 
the performance period, gains or losses from the sale of capital assets, adoption of generally accepted accounting pronouncements, etc.) will be assessed by
the Board of Directors, and the EPS under the Plan may be adjusted for these items. 
  
 Vesting and Payout 
  
 Vesting of an award shall accrue one-third
annually over the duration of the performance period based upon attainment of each year’s EPS target. Attainment of an EPS target in one year has no effect on attainment of an EPS target in subsequent years and, once vested, PSARs cannot be
forfeited. However, if there is a shortfall in EPS in a given year, one-third of the PSARs will either be immediately forfeited or subject to recoupment based on the full three-year performance results. A forfeiture of one-third of an award shall
occur in any year in which actual EPS results are lower than targeted EPS by more than 15 percent. If in any single year during the performance period actual EPS results are lower than targeted EPS by 15 percent or less, then forfeiture of one-third
of an award shall not occur but, rather, an EPS shortfall recoupment opportunity is triggered. 
  
 The shortfall recoupment opportunity allows participants a second opportunity to vest in the PSARs if the cumulative EPS target for the three-year period is met. For example, a full vesting of the award will occur
where the targets are met annually during the performance period or where EPS results achieve the full award through the recoupment opportunity by meeting the cumulative target. In the latter case, the recoupment of PSARs will vest only at the end
of the period. 
  
 Payout of awards shall be in the form of cash and occur at the
end of the performance period, upon a participant’s death or disability, or earlier at the Board’s discretion. Such payments shall be made within 45 calendar days of the end of the performance period, a participant’s death or
disability, or as soon thereafter as practical. 
  
 Change in Control

  
 Upon the occurrence of a Change in Control, as such term is defined in
the Company’s 2000 Key Employee Stock Option Plan, at least one full year after the beginning of the performance period, the full performance period shall be deemed completed and participants will vest in unvested PSARs based on EPS performance
through the most recently completed fiscal quarter. The Board will determine whether EPS performance is on target through the end of the quarter, based on a straight linear projection commencing on the first day of the performance period and
continuing through the end of such quarter. 
  
 The date of the Change in Control
shall be deemed to be the last day of the performance period for purposes of measuring the difference between the Company stock price at the end of the performance period and the stock price as of the PSAR award grant date. Vested PSARs will be paid
out in a single cash lump-sum payment within 45 days of the Change in Control or as soon thereafter as practical. 
  

 2 

 Employment Terminations 
  

Death or Disability 
  
 In the event of a participant’s death or disability, the participant shall be entitled to a pro rata PSAR benefit, determined as follows: 
  
 Number of PSARs granted at beginning of the performance period x (number
of days completed in the performance period prior to death or disability ÷ [1,095 days]) 
  
 The last day of the most recently completed fiscal quarter preceding the date of death or disability shall be deemed to be the last day of the performance period for purposes of measuring the difference between the
Company stock price at the end of the performance period and the stock price as of the PSAR award grant date. The right to payment will depend on whether EPS performance is on target on a straight linear basis from the first day of the performance
period through the end of the most recently completed fiscal quarter. 
  
 Retirement and Other Terminations 
  
 Forfeiture of any awards not yet vested (no pro rata benefit). 
  
 Amendment of Plan 
  
 The Board may amend the Plan at any time.
However, no amendment shall change or impair any participant’s previously granted PSAR without the consent of the participant. 
  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]