Document:

exv10w1

Exhibit 10.1

	Rewards for your Contributions
to Our Success
Key Management Annual Incentive Plan • Fiscal Year 2012

 

 

	Creativity...Innovation...
Collaboration...
Our commitment to these ideals has allowed us to become one of the world’s largest publicly
owned developers, producers and distributors of social expressions products. As a leader
at American Greetings, you have a unique opportunity to focus our associates on these key
areas and to cultivate a work environment that is stimulating, productive and rewarding.
In addition, the decisions you make and the things you do every day have a direct and
meaningful impact both within your department and across the company. We have designed
the Key Management Annual Incentive Plan to reward you for the critical role you play. As
a leader, you help foster and channel your energy and the energy of those around you into
building on our business principles, strengthening our marketplace position and generating
value for our shareholders.
Table of Contents
Plan Objectives and Who is Eligible. . . . . . . . . . . . . . . . . . . . . . 2
How the Plan Works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Emphasis of Each Plan Component. . . . . . . . . . . . . . . . . . . . . 4
Measuring Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Corporate Component. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Business Unit Component. . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Individual Component. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Example Calculation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Important Administrative Plan Details. . . . . . . . . . . . . . . . . . . 12
Key Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1

 

 

	Plan Objectives
• Focuses on shareholder value and profitable revenue
growth | Our shareholders expect us to evaluate our
results in the same way they do
• Emphasizes teamwork and mutual cooperation |
Our success depends on the collaborative effort within
each of our business units
• Demonstrates the importance of personal drive and
commitment to quality | Individual contributions are
the foundation of our collective accomplishments
• Rewards leaders for success | Award opportunity is
greatest when attention is given to the achievement of
objectives in each of the three performance areas
Watch for Your Participant Letter
You will receive a Participant Letter that outlines information specific to your participation in the Plan:
• Your assigned business unit and sub-business unit, if any
• The performance multiplier for your business unit and sub-business unit
• Your total target award
Who Is Eligible
You are eligible to participate in the Plan if you are a Key
Manager or Corporate-level Officer in one of the following
primary business units:
• Corporate Consolidated
• Total Social Expressions Group (SEG)
• AG Intellectual Properties Group
• AG Interactive
• AG Properties
• UK Greetings
• John Sands Group
Refer to the sections entitled Important Administrative Plan
Details and Key Terms for additional details
on eligibility for participation in the Plan.
2

 

 

	How the Plan Works
The Plan provides a cash award for the achievement of goals in three key performance areas
measured over a 12-month fiscal year. Success in these key areas helps American Greetings
create shareholder value and ensure profitable growth over the long term.
Your Award Opportunity
Your total target award is established at the beginning of each fiscal year and will be communicated
to you at that time.
Your total target award is:
• A percentage of your base earnings based on your job level
• The award you would earn if each goal is achieved in each performance area
The amount of the award you receive will increase or decrease based on actual performance
in these three key areas:
American Greetings will establish goals at the beginning of each fiscal year:
• Corporate goals are developed by management and approved by the Board of Directors.
• Business unit goals are developed by each business unit based on its strategic
direction, business opportunities and growth projections. These goals, as they apply to our
Section 16 officers, are approved by the Board of Directors.
• Individual performance goals are established with your manager through the
Performance Management Process.
At the end of the fiscal year, American Greetings determines the extent to which each
goal has been met.
Corporate
Performance
Business Unit
Performance
Individual
Performance
3
E X A M P L E
If base earnings are $70,000
and target award percentage
is 10% of base earnings,
total target award is $7,000.
Base Earnings ($70,000)
x
Target Award % (10%)
=
Target Award ($7,000)

 

 

	Emphasis of Each Plan Component
For all plan participants, the business unit component is 50% of your total target award.
The weights for the corporate and individual components vary based on the potential the
job role has to affect these results.
The more senior the role, the greater the impact these individuals’ decisions have on the
achievement of corporate objectives. Therefore, senior job levels have a heavier weighting
on the corporate component and less senior job levels have a heavier weighting assigned
to the individual component.
F I S C A L Y E A R 2 0 1 0 WE I G H T I N G S
Job Level
Corporate Business Unit Individual
Chairman of the Board
CEO
President and COO
Corporate-level Senior Vice Presidents
Other Section 16 Executive Officers
30% 50% 20%
Corporate-level Vice Presidents
Executive Directors
Key Managers 1 and 2
20% 50% 30%
E X A M P L E
Ben:
• Key Manager 1,
Total Social Expressions
Group (SEG)
• $70,000 base earnings
• $7,000 total target award
(10% of base earnings)
$2,100 = Individual
($7,000 x 30%)
$1,400 = Corporate
($7,000 x 20%)
$3,500 = Business Unit
($7,000 x 50%)
4

 

 

	Measuring Performance
When American Greetings results for the fiscal year are final, the company assesses
achievement of goals in each performance area. Performance in each area will determine your
actual Plan award.
Awards for the corporate and business unit components are based on the financial performance
award scale. Individual awards are based on your performance rating.
Individual
Performance
Total
Award
Corporate
Performance
Business Unit
Performance + + =
Financial Performance Award Scale
Your actual award is based on fiscal year-end
performance results using the award scale
shown at left for corporate and business
unit financial measures. (See Measuring
Performance table on page 6 for details.)
To earn an award, performance in each area
must at least reach threshold. There is no
award for below-threshold performance.
Achieving goal means American Greetings
pays awards at target levels.
Performance above goal will result in an
increased award up to a maximum level. The
award range for American Greetings financial
measures is 0% — 200% of target award.
Actual Award
200% of Target
100% of Target
THRESHOLD X% of Target*
0% of Target
(No Award
Below Threshold)
Performance
Above Goal
Goal
Below Goal
Below Threshold
G O A L
MAXIMUM
Performance Multiplier —
How It’s Used in the Award Scale
Performance multipliers are
another way to think about
the award scale. There is a
relationship between performance
and your actual award.
For example, there is a 4:1
multiplier for the Corporate EPS
measure. This means that for
every 1% increase or decrease in
the percentage of goal achieved,
the Corporate EPS target award
will be adjusted up or down by 4%
to determine the actual award.
Performance multipliers vary (see
the Appendix on page 14 for
complete list).
5

 

 

	Corporate Component
The corporate component consists of two parts:
• Corporate Earnings per Share (EPS)
• Corporate Total Revenue (Total Revenue)
Each of these parts is weighted. The Plan is designed
to emphasize the importance of our leaders’ abilities to
influence EPS, while paying attention to how they can
affect Total Revenue. The weighting applied to the total
target award for the corporate component is:
• 90% for EPS
• 10% for Total Revenue
The potential award under the corporate component
ranges from 0% to 200% of target award. Performance
has a direct impact on actual award. For every 1%
increase or decrease in the percentage of goal achieved:
• EPS target award will be adjusted up or down by
4% to determine the actual award for this part of the
corporate component.
• Total Revenue target award will be adjusted up or
down by 5% to determine the actual award (Total
Revenue goal is defined as a range between 97%
and 103% of goal).
You can earn up to 200% of the total target award for
the corporate component based on EPS performance,
Total Revenue performance or a combination of the two.
Performance Measures
METRIC WHY IT’S IMPORTANT
Corporate Earnings
per Share (EPS)
EPS shows how much profit was generated on a per share
basis. It communicates to the investment community the
power the company has to make money. The higher our
EPS, the greater value the company is able to provide its
shareholders.
Corporate
Total Revenue
(Total Revenue)
When investing in a company, an investor wants to see it
grow or improve over time. Management sets a Corporate
Total Revenue goal each year to keep activities focused on
growing the business year-over-year.
Earnings Before
Interest and Taxes
(EBIT)
EBIT is also known as operating income. It measures the
business unit’s earnings before the deduction of interest
payments and taxes.
Refer to the section entitled Key Terms for definitions for these financial measures.
Total Revenue Goal Is a Range
The Total Revenue portion of the corporate component has a goal defined as
a range. That’s because American Greetings believes we have met our Total
Revenue objective if we perform between 97% and 103% of goal.
6

 

 

	Corporate Component
C O R P O R A T E E P S
Award Scale
(4:1)
Performance
as % of Goal
Actual Award
as a % of Target
Actual Award
in Dollars
Maximum 127.5% 200% $2,800
120% 170% $2,380
110% 130% $1,820
Goal 100% 90% $1,260
95% 70% $980
Threshold 90% 50% $700
H O W I T ’ S C A L C U L A T E D
The formula to calculate your actual award as a percent of target is:
(Actual Performance – Goal) x 4 + 90% = Actual Award as a % of Target Award
Performance Above Goal: (105% — 100%) x 4 + 90% = 110% of Target Award
Performance Below Goal: (95% — 100%) x 4 + 90% = 70% of Target Award
C O R P O R A T E T O T A L R E V E N U E
Award Scale
(5:1)
Performance
as % of Goal
Actual Award
as a % of Target
Actual Award
in Dollars
Maximum 141% 200% $2,800
125% 120% $1,680
105% 20% $280
Goal 97% – 103% 10% $140
96% 5% $70
Threshold 95% 0% $0
H O W I T ’ S C A L C U L A T E D
The formula to calculate your actual award as a percent of target is:
(Actual Performance – Goal) x 5 + 10% = Actual Award as a % of Target Award
Performance Above Goal: (105% — 103%) x 5 + 10% = 20% of Target Award
Performance Below Goal: (96% — 97%) x 5 + 10% = 5% of Target Award
B E N ’ S A C T U A L AWA R D F O R C O R P O R AT E C OMP O N E N T
• EPS Actual Performance: 95% of goal = actual award of 70% of target ($980)
• Total Revenue Actual Performance: 125% of goal = actual award of 120%
of target ($1,680)
E X A M P L E
Ben, Key Manager 1
$7,000 total target award
• $1,400 corporate component
(20% of total target award)
• $1,260 Corporate EPS
(90% of total corporate component)
• $140 Corporate Total Revenue
(10% of total corporate component)
Corporate Performance Threshold
Each part of the corporate component
has its own performance threshold:
• EPS: 90% of goal
• Total Revenue: 95% of goal
The performance threshold must be
met to earn an actual award for
that measure. Total Award: $980 + $1,680 = $2,660
7

 

 

	Business Unit Component
The award for your primary business unit
component will be based on performance
in either:
• Business Unit Pro Forma EBIT
• Product Line Contribution (PLC)
or
• Corporate EBIT
All associates are assigned to a primary business unit.
Some will also be assigned to a sub-business unit,
which may have different performance measures.
Refer to your personalized Participant Letter for your
assigned business unit and sub-business unit,
if applicable, and performance multiplier.
See the Appendix on page 14 for more details.
Business Unit Performance Threshold
• All primary and sub-business units have a performance
threshold of 90% of goal.
Award: $3,220
E X A M P L E
Ben, Key Manager 1
$7,000 total target award
• $3,500 business unit component (50% of total target award)
T O T A L S E G
Award Scale
(4:1)
Performance
as % of Goal
Actual Award
as a % of Target
Actual Award
in Dollars
Maximum 125% 200% $7,000
120% 180% $6,300
115% 160% $5,600
110% 140% $4,900
105% 120% $4,200
Goal 100% 100% $3,500
98% 92% $3,220
95% 80% $2,800
Threshold 90% 60% $2,100
H O W I T ’ S C A L C U L A T E D
The formula to calculate your actual award as a percent of target is:
(Actual Performance – Goal) x 4 + 100% = Actual Award as a % of Target Award
Performance Above Goal: (110% — 100%) x 4 + 100% = 140% of Target Award
Performance Below Goal: (98% — 100%) x 4 + 100% = 92% of Target Award
B EN’ S ACTUA L AWA R D FOR BUS INE S S UNI T COMPONENT
Total SEG Actual Performance: 98% of goal = actual award of 92%
of target ($3,220)
8

 

 

	Individual Component
Your award under the individual component is based on your performance rating under
the performance management process. Based on your performance rating, you will receive
0% to 200% of your target award, as shown in the chart below.
Performance Rating
Actual Award
as a % of Target
Exceeds Expectations (Manager Discretion) 200%
Exceeds Expectations 150%
Meets Expectations 100%
Improvement Expected/Performance Below Peer Level 0%
Participants who receive an “Improvement Expected/Performance Below Peer Level”
rating will not receive an individual performance incentive and will only receive 50% of
any incentive otherwise earned under the corporate and business unit components.
If Corporate EPS performance is below threshold, associates with a performance
rating of “Exceeds Expectations” will receive an award for the individual performance
component as shown in the chart above.
Individuals with a “Meets Expectations” or “Improvement Expected/Below Peer Level”
performance rating will not receive any portion of the individual performance incentive
if Corporate EPS performance is below threshold.
E X A M P L E
Ben, Key Manager 1
$7,000 total target award
• $2,100 individual component
(30% of total target award)
• Individual Actual Performance:
Exceeds Expectations
Individual Target Award $ 2,100
x Actual Award
as a % of Target x 150%
Individual Performance
Actual Award $ 3 , 1 5 0
Senior Executive Officers
Refer to the fiscal year 2012 Addendum to the
Individual Performance Component, included
with your Award Letter, for a complete
description of how individual performance
under the Key Management Annual Incentive
Plan applies to you.
9

 

 

	Example Calculation
Here is an example of how your actual award is determined.
$2,100 = Individual Target
($7,000 x 30%)
Individual Performance
Individual Performance Rating
$1,400 = Corporate Target
($7,000 x 20%)
• $1,260 EPS
• $140 Total Revenue
Corporate Goal
• $1.25 Corporate EPS
• $1.7 Billion Corporate
Total Revenue
$3,500 = Business Unit Target
($7,000 x 50%)
Business Unit Goal
$140 Million Total SEG
E X A M P L E
Ben, Key Manager 1
Total Social Expressions
Group (SEG)
Base Earnings: $70,000
Total Target Award: $7,000
(10% of base earnings)
A C T U A L P E R F O R M A N C E
The chart below outlines the performance goals and actual performance in the three categories —
American Greetings corporate and business unit and Ben’s individual performance.
Performance Performance and Award Results
Component and Measure Goal Actual Performance Performance
as a % of Goal
Award as a
% of Target
Corporate Component
Corporate EPS $1.25 per share $1.19 per share 95% 70%
Corporate Total Revenue $1.7 Billion $2.1 Billion 125% * 120%
Business Unit Total Revenue
Total SEG Pro Forma EBIT $140 Million $137.2 Million 98% 92%
Individual Component
Individual Performance Rating Meets Expectations Exceeds Expectations N/A 150%
* Goal is a range from 97% — 103% of target.
To illustrate how awards
are calculated, examples of
performance goals are
provided in this brochure.
Performance is included in
the examples to calculate
example awards. These are
examples only; performance
goals will be different and
may be higher or lower than
the examples provided.
10

 

 

	Ben’s Total Award Example:
Here’s a look at Ben’s total award based on the performance shown on the previous page.
Total Target Award $7,000 Total Actual Award $9,030
0
2,000
4,000
6,000
8,000
$10,000
$3,500
$2,100
$3,150
$3,220
$2,660
$1,400
C O R P O R AT E C O M P O N E N T
Target Award x Award as % of Target = Actual Award
Corporate EPS
$1,400 x 70% = $980
Corporate Total Revenue
$1,400 x 120% = $1,680
Total = $2,660
B U S I N E S S U N I T C O M P O N E N T
Target Award x Award as % of Target = Actual Award
$3,500 x 92% = $3,220
I N D I V I D U A L C O M P O N E N T
Target Award x Award as % of Target = Actual Award
$2,100 x 150% = $3,150
11

 

 

	New Hires
If you are hired during the Plan
year — defined as the American
Greetings fiscal year ending February
29, 2012 — and are eligible to
participate in the Key Management
Annual Incentive Plan, you will
receive a prorated incentive award
based on the period of time you
participated in the Plan and your
base earnings during that time.
Promotions and Transfers
If you are promoted or you
move from one business unit
to another during the Plan year,
your individual target award,
base earnings, business unit goal
and corresponding performance
multiplier may change. If any of
these do change, your award will
be calculated based on the targets,
base earnings, plan provisions
and actual performance for each
business unit you participated in on
a prorated basis and rounded to the
nearest full month.
Termination
If you voluntarily or involuntarily
leave American Greetings before
the completion of the Plan year, you
will forfeit your Key Management
Annual Incentive Plan award for that
fiscal year.
Retirement, Leave of Absence,
Disability, Death
If your employment ends during the
Plan year because you elect to retire
after age 60, or if you take a leave
of absence, suffer a permanent
disability or die, your actual award
will be prorated to the nearest full
month based on the actual period
you participated in the Plan during
the year.
An associate will be deemed to
suffer a permanent disability only
in the following circumstances: (A)
where an associate is absent from
employment with American Greetings
due to his or her inability to engage
in any substantial gainful activity by
reason of any medically determinable
physical or mental impairment, which
either can be expected to result in
death, or can be expected to last for
a continuous period of not less than
12 months; or (B) where an associate
is scheduled to receive income
replacement benefits for a period
of not less than 3 months under an
accident and health plan covering
American Greetings associate on
account of a medically determinable
physical or mental impairment that
can be expected to result in death or
last for a continuous period of not less
than 12 months.
Omnibus Incentive Plan
The Key Management Annual
Incentive Plan is governed by the
American Greetings Corporation
2007 Omnibus Incentive
Compensation Plan, as such plan
may be amended from time to time.
In the event of a conflict between
the Key Management Annual
Incentive Plan and the Omnibus
Incentive Compensation Plan, the
terms of the Omnibus Incentive
Compensation Plan will govern.
Questions
If you have questions about the Key
Management Annual Incentive Plan
and how it works, please contact
your manager. Your manager
will work with you to ensure you
understand the Plan so you can
maximize your annual award.
Incentive Award
Incentive awards earned in fiscal year
2012 will be paid to participants within
two and one-half months following the
end of fiscal 2012, typically within 60
days after the end of the fiscal year.
Plan awards are subject to normal tax
withholding at a standardized rate and
will be deposited to a bank account of
your choice.
It is the intent that incentive awards
fall under the short-term deferral
rules of Section 409A of the Internal
Revenue Code to exempt the
payment of such Key Management
Annual Incentive Plan benefits from
the requirements of Section 409A.
Calculating Payouts
For computation purposes, financial
goals and actual performance results
are rounded to the nearest $1,000.
The percent of the financial goal
achieved and the percent of target
award earned is rounded to the
nearest one-tenth of one percent. The
actual incentive award is rounded to
the nearest dollar.
Important Administrative Plan Details
If your employment status changes, your Plan participation and any payouts may be affected as described below:
12

 

 

	• Base Earnings. Your base
earnings are defined as your
base salary earned during the
fiscal year. Base earnings
exclude health and welfare
benefits, bonus, commission,
and incentive payments,
overtime and other direct or
indirect compensation. Base
earnings for Plan participants
outside of the U.S. may be
defined differently and may
vary by country.
• Business Unit EBIT.
A business unit’s earnings
before interest and taxes.
• Business Unit Pro Forma
EBIT. A business unit’s
earnings before interest and
taxes, charged/credited for
any variation from plan in
Net Capital Employed at the
weighted average cost of
capital.
• Corporate Earnings Per
Share (EPS). Corporate
earnings per share is
measured at the end
of the fiscal year and is
calculated as corporate net
income divided by the total
number of planned shares
outstanding as calculated on
a fully diluted basis.
Primary
Business Unit
Participants
Corporate
Consolidated
Chairman, Chief Executive Officer,
President and Chief Operating Officer,
Corporate-level Senior Vice Presidents
and other Section 16 Executive Officers
Total Social
Expressions
Group (SEG)
Associates who are part of:
• AGI In-Store
• Canada
• Corporate Staff (Delta, Finance, HR,
ISD, Legal)
• Creative
• Creative Products
• Field Sales
• Field Sales Operations (FSO)
• Global Sourcing
• Greeting Cards
• Inbound Licensing
• Plants
• Papyrus-Recycled Greetings
• All other North American Greeting
Card Division units
AG Intellectual
Properties
Group
AGIP Corporate Staff
AG Interactive AG Interactive associates
AG Properties AG Properties associates
UK Greetings UK Greetings associates
John Sands
Group
John Sands Group associates
Key Terms
The following provides definitions of some common terms used throughout this brochure. Capitalized terms used herein that are not defined
will have the meaning set forth in the Omnibus Incentive Compensation Plan.
• Corporate Earnings
Before Interest and
Taxes (Corporate EBIT).
Consolidated corporate
earnings before interest and
taxes, charged/credited for
any variation from plan in
Net Capital Employed at the
weighted average cost of
capital.
• Corporate Total Revenue.
Consolidated corporate net
sales and other revenues,
including but not limited
to royalties, advertising,
subscriptions and other
revenue streams directly
related to the conduct of our
principal business.
• Eligibility. You are eligible
to participate in the Key
Management Annual
Incentive Plan if you are a
Key Manager or Corporatelevel
Officer in one of the
following primary business
units and you do not
participate in another
Company-sponsored annual
incentive plan.
• Fiscal Year. March 1
through February 28 or
29 of the following
calendar year.
• Net Capital Employed
(NCE). Assets (minus cash
and LIFO reserve) minus
liabilities (not including
interest-bearing debt, intercompany
payables and
income taxes).
• PLC Definition. Product
Line Contribution equals
gross sales less all of the
following: allowances for
obsolete cards (AOC); cost of
markdowns and unsaleables;
retail allowances; off-invoice
discounts; cost of goods sold
at standard cost; assortment
labor; cost of caption locator
cards, displayer and point-ofpurchase
materials; cost
of SBT scrap and shrink; and
the cost of finished goods
scrap.
• Total Social Expressions
Group (SEG). Equals
NAGCD pro forma EBIT
(includes Corporate Expense)
+ AGI In-Store pro forma
EBIT.
13

 

 

	Business Unit/Participants
Business Unit Components
Performance Measure Weight
Performance
Multipliers1
Primary Unit Sub Unit
Primary
Unit
Sub
Unit
Primary
Unit
Sub
Unit
Corporate Consolidated: Chairman, CEO,
President and COO, Corporate-level
Senior Vice Presidents and other Section
16 Executive Officers
Corporate EBIT 100% 4
Canada, Corporate Staff (Delta, Finance,
HR, ISD, Legal), Creative, Creative
Products, Field Sales, FSO, Global
Sourcing, Greeting Cards, Plants, all
other North American Greeting Card
Division units
Total SEG 100% 4
Inbound Licensing Total SEG AG Interactive
pro forma EBIT
50% 50% 4 2
AGI In-Store Total SEG AGI In-Store pro
forma EBIT
50% 50% 4 2
Papyrus-Recycled Greetings Total SEG PRG PLC 40% 60% 4 2
AG Intellectual Properties Group –
Corporate Staff
AG Interactive pro
forma EBIT + AG
Properties pro forma
EBIT
100% 2
AG Interactive AG Interactive pro
forma EBIT
100% 2
AG Properties AG Properties pro
forma EBIT
100% 2
UK Greetings UK Greetings
pro forma EBIT
100% 4
John Sands Group John Sands Group
pro forma EBIT
100% 2
Appendix
The following section provides additional details about the Plan, including details about the business units, their performance measures and
performance multipliers used in the award scales.
Please note that some plan
participants will have their
business unit incentive
determined based on
performance in two areas.
Details about the weightings
and performance multipliers
for these measures are
shown at right and on your
personalized Participant
Letters, as appropriate
1 For every 1% increase or
decrease in the percentage of
goal achieved, target award will
be adjusted up or down by 1%
times the multiplier to determine
actual award
14

 

 

	American Greetings reserves the right to terminate or make changes to the Program, including
retroactively, at any time without prior notice to any of the Program’s participants (provided that
no amendment to the Program adopted more than 90 days after the beginning of the applicable
fiscal year may have the effect of increasing the amount that is or could be payable under the
guidelines set forth herein for such fiscal year to any participant who is a “covered employee”
of American Greetings as defined in section 162(m)(3) of the Internal Revenue Code). In the
case of our executive officers, the Board of Directors (or committee thereof), and in the case of
all other participants, the Board of Directors (or committee thereof), the Chief Executive Officer
and the Chairman are the only persons who have the authority to alter or amend this Program.
Any such alteration or amendment must be done in writing. No participant should rely on an
alteration or amendment to this Program unless it is made in writing and signed by the Chief
Executive Officer or the Chairman.
Any award earned under this Key Management Annual Incentive Plan shall be subject to
rescission, cancellation or recoupment, in whole or part, if and to the extent so provided under
any “clawback” or similar policy of American Greetings in effect on the date of payment or that
may be established thereafter, including, without limitation, any “clawback” or recoupment
policy of American Greetings as may be adopted by American Greetings from time to time as
required by Section 304 of the Sarbanes-Oxley Act of 2002, Section 954 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, or as otherwise required by applicable law.
Nothing in this brochure or in any Participant Letter or addendum should be construed
to create or imply any contract of employment between an associate and American
Greetings and its subsidiaries or to create any binding contractual right to payment of
any specific amount under the American Greetings Key Management Annual Incentive
Plan. The provisions of this brochure describe the general guidelines used by American
Greetings in determining the benefits payable to Plan participants; however, in every
case, American Greetings reserves the right to reduce or eliminate the amount that
would otherwise be payable to a participant or participants under such guidelines where
it determines, in its discretion, that such a reduction is necessary or appropriate, in light
of the participant’s performance or other relevant business circumstances.
15

 

 

	Notes
16

 

 

	Notes
17

 

 

 

 

SENIOR EXECUTIVE OFFICER

ADDENDUM TO INDIVIDUAL PERFORMANCE COMPONENT OF

FY2012 AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN

INDIVIDUAL PERFORMANCE

Notwithstanding the description of the Individual Performance component included in the booklet
(the “Plan Booklet”) outlining the Fiscal 2012 Key Management Annual Incentive Plan, the Individual
Performance component of American Greetings Key Management Annual Incentive Plan for all Senior
Executive Officers of American Greetings, consisting of the Corporation’s Chairman, Chief Executive
Officer, President and Chief Operating Officer, Senior Vice Presidents and other Section 16
officers (collectively the “Senior Executive Officers”) is modified by this Addendum as follows:

	•	 	Specific award percentages for the individual
performance component are replaced with award ranges,
thereby giving managers more discretion to adjust the
percentage of the individual award based on an
individual’s performance.
	 
	•	 	Senior Executive Officers who receive an “Exceeds
Expectations (Manager Discretion)” performance rating
will earn between 150% and 200% of their target award
under the individual performance component. Those who
receive an “Exceeds Expectations” performance rating
will earn between 100% and 150% of their target award
under the individual performance component. And those
who receive a “Meets Expectations” performance rating
will earn between 50% and 100% of their target award
under the individual performance component.

As with all participants of the Key Management Annual Incentive Plan, at the end of the fiscal
year, managers assess each Senior Executive Officer’s performance compared to other participants.
Managers determine the degree to which participants achieved the performance objectives that had
been defined at the beginning of the year.

Managers rank participants based on their relative performance and determine actual performance
ratings and individual performance awards based on these rankings and the targeted distribution of
performance ratings.

	•	 	For Senior Executive Officers, the targeted
distribution of participants for the “Exceeds
Expectations (Manager Discretion)” performance rating
is 0% to 10%; the targeted distribution for the
“Exceeds Expectation” performance rating is 20% to 30%;
the targeted distribution for the “Meets Expectations”
performance rating is 60%; and the targeted
distribution for the “Improvement Expected /
Performance Below Peer Level” is 10%. (See chart on the
following page.)
	 
	•	 	Senior Executive Officers who receive an “Exceeds
Expectations (Manager Discretion)” performance rating
will receive between 150% and 200% of their

 

 

FY2012 KEY MANAGEMENT ANNUAL INCENTIVE PLAN SENIOR EXECUTIVE OFFICER ADDENDUM

	 	 	target individual award, as determined by his or her manager.
	 
	•	 	Senior Executive Officers who receive an “Exceeds
Expectations” performance rating will receive between
100% and 150% of their target individual award, as
determined by his or her manager.
	 
	•	 	Senior Executive Officers who receive a “Meets
Expectations” rating will receive between 50% and 100%
of their target individual award, as determined by his
or her manager.
	 
	•	 	As with other participants, Senior Executive
Officers who receive an “Improvement Expected /
Performance Below Peer Level” rating will not receive
an individual performance award and will only receive
50% of any award otherwise earned under the corporate
and business unit components.

As with other participants, if corporate EPS performance is below the performance threshold, only
those Senior Executive Officers with a performance rating of “Exceeds Expectations” or “Exceeds
Expectations (Manager Discretion)” may receive awards for the individual performance measure.

	•	 	Participants, including Senior Executive Officers,
who receive an “Exceeds Expectations” or “Exceeds
Expectations (Manager Discretion)” performance rating
will receive an award for the individual performance
component as shown in the table below.
	 
	•	 	Senior Executives who receive a “Meets
Expectations” or “Improvement Expected / Below Peer
Level” performance rating will not receive any portion
of the individual performance award.

The schedule below shows how individual awards will be adjusted based on individual performance.

Except as set forth in this Addendum, the description of the Key Management Annual Incentive Plan
included in the Plan Booklet remains unchanged. In the event of a conflict between the terms
described in the Plan Booklet and this Addendum, the terms set forth in this Addendum will govern.

	 	 	 	 	 
	 	 	Target Performance	 	Actual Award
	Performance Rating	 	Rating Distribution	 	as a % of Target
	Exceeds Expectations (Manager Discretion)
	 	0 - 10%	 	150% - 200%
	Exceeds Expectations
	 	20% - 30%	 	100% - 150%
	Meets Expectations
	 	60%	 	50% - 100%
	Improvement Expected / Performance Below
Peer Level
	 	10%	 	0%exv10w2

    Exhibit
10.2

 

    AMERICAN
    GREETINGS CORPORATION

    2007 OMNIBUS INCENTIVE COMPENSATION PLAN

    (AS AMENDED MAY 1, 2011)

 

    ARTICLE 1

    

 

    DEFINITIONS
    

 

    In this Plan, except where the context otherwise indicates, the
    following definitions apply.

 

    1.1 “Agreement” means an agreement
    in Writing delivered to the Grantee, which evidences a grant of
    an Award under the Plan.

 

    1.2 “Appreciation Right” means a
    right granted pursuant to Article 8 of this Plan.

 

    1.3 “Award” means an Option, Share
    Award, Restricted Share, Deferred Share, Performance Bonus,
    Performance Share, Directors’ Share, Performance Unit,
    Appreciation Right or Dividend Equivalents granted under this
    Plan.

 

    1.4 “Board” means the Board of
    Directors of the Corporation.

 

    1.5 “Change in Control” means the
    happening of any of the following events:

 

    (i) the Corporation is merged or consolidated or
    reorganized into or with another corporation or other legal
    person, and as a result of such merger, consolidation or
    reorganization less than a majority of the combined voting power
    of the then-outstanding securities of such corporation or person
    immediately after such transaction is held in the aggregate by
    the holders of Common Stock immediately prior to such
    transaction;

 

    (ii) the Corporation sells or otherwise transfers all or
    substantially all of its assets to any other corporation or
    other legal person, and less than a majority of the combined
    voting power of the then-outstanding securities of such
    corporation or person immediately after such transaction is held
    in the aggregate by the holders of Common Stock immediately
    prior to such transaction;

 

    (iii) there is a report filed on Schedule 13D or
    Schedule TO (or any successor schedule, form or report),
    each as promulgated pursuant to the Exchange Act, disclosing
    that any person (as the term “person” is used in
    Section 13(d)(3) or Section 14(d)(2) of the Exchange
    Act) has become the beneficial owner (as the term
    “beneficial owner” is defined under
    Rule 13d-3
    or any successor rule or regulation promulgated under the
    Exchange Act) of securities representing 20% or more of the
    Voting Power;

 

    (iv) the Corporation files a report or proxy statement with
    the Securities and Exchange Commission pursuant to the Exchange
    Act disclosing in response to
    Form 8-K
    or Schedule 14A (or any successor schedule, form or report
    or item therein) that a Change in Control of the Corporation has
    occurred; or

 

    (v) if during any period of two consecutive years,
    individuals who at the beginning of any such period constitute
    the directors of the Corporation cease for any reason to
    constitute at least a majority thereof, unless the election, or
    the nomination for election by the Corporation’s
    shareholders, of each director of the Corporation first elected
    during such period was approved by a vote of at least two-thirds
    of the directors of the Corporation then still in office who
    were directors of the Corporation at the beginning of any such
    period.

 

    (vi) Notwithstanding the foregoing provisions of
    Section 1.5(iii) and (iv) above, a “Change in
    Control” shall not be deemed to have occurred for purposes
    of this Plan (i) solely because (A) the Corporation;
    (B) a Subsidiary; (C) any Corporation –
    sponsored employee stock ownership plan or other employee
    benefit plan of the Corporation; or (D) any family member
    of Jacob Sapirstein (including lineal descendants, spouses of
    such descendants, the lineal descendants of any such spouse, the
    spouses of any such spouses’ lineal descendants and trust
    (including voting trusts)) either files or becomes obligated to
    file a report or proxy statement under or in response to
    Schedule 13D, Schedule TO,
    Form 8-K
    or

    

 1

 

    Schedule 14A (or any successor schedule, form or report or
    item therein) under the Exchange Act, disclosing beneficial
    ownership by it of shares, whether in excess of 20% of the
    Voting Power or otherwise, or because the Corporation reports
    that a Change in Control of the Corporation has or may have
    occurred or will or may occur in the future by reason of such
    beneficial ownership or (ii) solely because of a Change in
    Control of any Subsidiary.

 

    (vii) Notwithstanding the foregoing, if and to the extent
    that any provision of this Plan or an Award would cause a
    payment of deferred compensation that is subject to
    Section 409A(a)(2) of the Internal Revenue Code to be made
    upon the occurrence of a “Change in Control,” then
    such payment shall not be made unless such “Change in
    Control” satisfies the requirements of
    Section 409A(2)(A)(v) of the Internal Revenue Code and
    applicable regulations and rulings thereunder.

 

    1.6 “Class A Common Shares”
    means Class A Common Shares, par value $1.00 per share, of
    the Corporation.

 

    1.7 “Class B Common Shares”
    means Class B Common Shares, par value $1.00 per share, of
    the Corporation.

 

    1.8 “Committee” means (except as
    otherwise provided or limited in the following sentence), the
    full Board or the Board’s Compensation and Management
    Development Committee, or such other committee or designee
    (including, without limitation, an officer of the Corporation)
    appointed by the Board or the Compensation and Management
    Development Committee to manage Awards generally or specific
    individual or group of Awards. To the extent required by
    Section 162(m) of the Internal Revenue Code,
    Rule 16b-3
    of the Exchange Act or other similar requirement, any action
    taken by the Committee shall be taken by the Committee as a
    whole or by a subcommittee of at least two members, and all the
    members of the Committee or such subcommittee will be
    “outside directors” as defined in Treas. Reg.
    Section 1.162-27(e)(3)
    or any similar successor regulation
    and/or
    “non-employee directors” as defined in
    Rule 16b-3(b)(3)(i)
    of the Exchange Act or any similar successor rule. In all other
    events, the Chairman of the Committee shall be authorized to act
    on behalf of the Committee unless otherwise determined by the
    Committee. Except where the context otherwise requires,
    references in the Plan to the “Committee” also shall
    be deemed to refer to the Chairman and to any delegate of the
    Committee while acting within the scope of such delegation.

 

    1.9 “Common Stock” means
    Class A Common Shares, Class B Common Shares or both.

 

    1.10 “Corporation” means American
    Greetings Corporation.

 

    1.11 “Covered Employee” means an
    Eligible Person who is, or is determined by the Committee to
    become, a “covered employee” within the meaning of
    Section 162(m) of the Internal Revenue Code (or any
    successor provision).

 

    1.12 “Deferral Period” means the
    period of time during which Deferred Shares, Awards or other
    compensation is subject to deferral limitations under
    Section 7.3 or Article 13 of this Plan.

 

    1.13 “Deferred Shares” means an
    Award made pursuant to Section 7.3 of this Plan of the
    right to receive Common Stock at the end of a specified Deferral
    Period.

 

    1.14 “Director” means any member of
    the Board, or any member of a board of directors of a
    Subsidiary, who is not also an employee of the Corporation or
    any Subsidiary.

 

    1.15 “Directors’ Share” means
    a Share awarded to a Director pursuant to Section 7.5 of
    this Plan.

 

    1.16 “Dividend Equivalent” means an
    amount determined by multiplying the number of shares of Common
    Stock subject to a grant by the per-share cash dividend, or the
    per-share fair market value (as determined by the Committee) of
    any dividend in consideration other than cash, paid by the
    Corporation on its Common Stock.

 

    1.17 “Effective Date” means
    February 13, 2007.

 

    1.18 “Eligible Person” means a key
    employee, officer or consultant of the Corporation or of a
    Subsidiary, or a Director, selected by the Committee as eligible
    to receive an Award under the Plan.

    

2

 

    1.19 “Exchange Act” means the
    Securities Exchange Act of 1934 as amended, and the rules and
    regulations promulgated thereunder.

 

    1.20 “Fair Market Value” means, as
    of any given date, the closing price of the Class A Common
    Shares as reported on the New York Stock Exchange (or if the
    Class A Common Shares are not then traded on the New York
    Stock Exchange, as reported by such other national securities
    exchange or quoted on the Nasdaq National Market or such other
    automated quotation system in which the Class A Common
    Shares are quoted) as of the close of business on such date or
    the latest such date in which there is a listing. Fair Market
    Value shall be determined in a manner that complies with the
    requirements of Section 409A of the Internal Revenue Code
    and regulations and rulings thereunder.

 

    1.21 “Grantee” means an Eligible
    Person to whom an Award has been granted.

 

    1.22 “Grant Date” means

 

    (i) with respect to Options and Appreciation Rights, the
    date on which such Award is approved by the Committee, or such
    later date specified by the Committee in authorizing the Award
    provided that (A) the Eligible Person does not have the
    ability to individually negotiate the key terms and conditions
    of the Award with the Corporation or, if so, such negotiations
    have concluded and (B) the key terms of the Award are
    expected to be communicated to the Grantee or group of Grantees
    within a relatively short period of time from the date as of
    which the Award is authorized to be granted; and

 

    (ii) with respect to all other Awards, the date on which
    such Award is approved by the Committee, or such later date
    specified by the Committee in authorizing the Award.

 

    1.23 “Incentive Stock Option” means
    an Option granted under the Plan that qualifies as an incentive
    stock option under Section 422 of the Internal Revenue Code
    (or any successor provision) and that the Corporation designates
    as such in the Agreement granting the Option.

 

    1.24 “Internal Revenue Code” means
    the Internal Revenue Code of 1986 as amended, and the rules and
    regulations promulgated thereunder.

 

    1.25 “Nonstatutory Stock Option”
    means an Option granted under the Plan that is not an Incentive
    Stock Option.

 

    1.26 “Option” means an option to
    purchase Shares granted under the Plan in accordance with the
    terms of Article 6 of this Plan.

 

    1.27 “Option Period” means the
    period during which an Option may be exercised.

 

    1.28 “Option Price” means the price
    per Share at which an Option may be exercised. The Option Price
    for any Option will equal the Fair Market Value on the Grant
    Date, unless otherwise determined by the Committee in its
    discretion pursuant to an Option that contains terms and
    conditions that satisfy (or qualify such Option for an exemption
    from) the applicable requirements of Section 409A of the
    Internal Revenue Code.

 

    1.29 “Optionee” means an Eligible
    Person to whom an Option has been granted.

 

    1.30 “Performance Criteria” means
    the performance standards selected by the Committee that may be
    based on revenue; gross margin; product line contribution;
    operating and other expenses; operating earnings; earnings
    before interest, taxes, depreciation and amortization
    (“EBITDA”); earnings before interest and taxes
    (“EBIT”); pre-tax or after-tax profits; net income;
    earnings per share; cash flow; productivity; return on assets;
    return on capital; return on equity; cash flow/net assets;
    debt/capital ratio; return on net capital employed
    (“RONCE”); sales growth; stock price appreciation; or
    total shareholder return (share appreciation plus dividends as
    if reinvested), and may be absolute in their terms or measured
    against or in relationship to changes from period to period or
    against or in relationship to other companies comparably,
    similarly or otherwise situated.

 

    1.31 “Performance Period” means the
    period or periods, which may be of overlapping durations, during
    which each Performance Criterion of Qualified Performance-Based
    Compensation or other performance

    

3

 

    criterion of a performance-based Award will be measured against
    the Performance Criteria or other performance goals established
    by the Committee and specified in the Agreement relating thereto.

 

    1.32 “Performance Bonus” means an
    award granted pursuant to Article 9 of this Plan.

 

    1.33 “Performance Share” means a
    bookkeeping entry that records the equivalent of one Common
    Share awarded pursuant to Section 7.4 of this Plan.

 

    1.34 “Performance Unit” means a
    bookkeeping entry that records a unit equivalent to $1.00
    awarded pursuant to Section 7.4 of this Plan.

 

    1.35 “Plan” means this American
    Greetings Corporation 2007 Omnibus Incentive Compensation Plan
    which is the Plan set forth in this document, as amended from
    time to time.

 

    1.36 “Potential Change in Control”
    shall be deemed to have occurred if the event set forth in any
    one of the following paragraphs shall have occurred:

 

    (i) the Corporation enters into an agreement, the
    consummation of which would result in the occurrence of a Change
    in Control;

 

    (ii) the commencement of a proxy contest in which any
    person (as such term is defined in Section 3(9) of the
    Exchange Act and also includes any group deemed to be a person
    under Section 13(d)(3) of the Exchange Act) seeks to
    replace or remove a majority of the members of the Board;

 

    (iii) the Board otherwise adopts a resolution to the effect
    that, for purposes of this Agreement, a Potential Change in
    Control has occurred; or

 

    (iv) the Corporation files a report or proxy statement with
    the Securities and Exchange Commission pursuant to the Exchange
    Act disclosing in response to
    Form 8-K
    or Schedule 14A (or any successor schedule, form or report
    or item therein) that a Change in Control of the Corporation may
    or will occur in the future.

 

    1.37 “Qualified Performance-Based
    Compensation” means any compensation that is
    intended to qualify as “qualified performance-based
    compensation” as described in Section 162(m)(4)(C) of
    the Internal Revenue Code.

 

    1.38 “Related Award” means the
    Award in connection with which a Related Right is granted.

 

    1.39 “Related Right” means an
    Appreciation Right granted in connection with a specified Award
    or by amendment of an outstanding Nonstatutory Stock Option
    granted under the Plan.

 

    1.40 “Restricted Share” means a
    Share awarded to an Eligible Person pursuant to Section 7.2 of
    this Plan that is subject to certain restrictions and may be
    subject to forfeiture.

 

    1.41 “Right Period” means the
    period during which an Appreciation Right may be exercised.

 

    1.42 “Securities Act” means the
    Securities Act of 1933 as amended, and the rules and regulations
    promulgated thereunder.

 

    1.43 “Share” means a share of
    authorized but unissued Common Stock, Common Stock held in
    treasury or a reacquired share of Common Stock, including shares
    purchased by the Corporation on the open market for purposes of
    the Plan or otherwise.

 

    1.44 “Share Award” means an award
    of Common Stock, or an Award denominated in terms of Common
    Stock, as described in Article 7 of this Plan, and
    includes, without limitation, a Restricted Share, a
    Directors’ Share, a Deferred Share and a Performance Share.

 

    1.45 “Subsidiary” means an entity
    which is a member of a “controlled group” or under
    “common control” with the Corporation as determined
    under Section 414(b) or (c) of the Internal Revenue
    Code, except that an entity will be deemed to be in a controlled
    group or under common control with the Corporation for this
    purpose if the Corporation either directly or indirectly owns at
    least 50% (or 20% with legitimate business

    

4

 

    criteria) of the total combined voting power of all classes of
    stock (or similar interests) of such entity or would otherwise
    satisfy the definition of service recipient under
    Section 409A of the Internal Revenue Code.

 

    1.47 “Voting Power” means at any
    time, the total votes relating to the then-outstanding
    securities entitled to vote generally in the election of
    directors of the Corporation.

 

    1.48 “Writing” means any paper or
    electronic means of documenting the terms of an Agreement
    hereunder which satisfies such requirements for formality,
    authenticity and verification of signature and authority as may
    be established by the Committee or by those persons responsible
    for performing administrative functions under the Plan.

 

    ARTICLE 2

    

 

    PURPOSE
    

 

    The Plan is intended to promote the success and enhance the
    value of the Corporation by linking the personal interests of
    Directors, officers and other key employees and consultants to
    those of the Corporation’s shareholders and by providing
    flexibility to the Corporation in its ability to motivate,
    attract and retain the services of Directors, officers and other
    key employees and consultants upon whose judgment, interest and
    special effort the successful conduct of the Corporation’s
    operations is largely dependent.

 

    ARTICLE 3

    

 

    PLAN
    MANAGEMENT AND ADMINISTRATION
    

 

    The Plan will be managed by the Committee. Administrative
    functions may include, without limitation, documenting and
    communicating Awards made hereunder, maintaining records
    concerning such Awards, and satisfying (or assisting Eligible
    Persons in satisfying) any applicable reporting, disclosure, tax
    filing or withholding, or other legal requirements concerning
    Awards. Each member of the Committee is entitled to, in good
    faith, rely or act upon any report or other information
    furnished to that member by any officer or other employee of the
    Corporation or any Subsidiary, the Corporation’s
    independent registered public accounting firm or other certified
    public accountants, or any executive compensation consultant or
    other professional retained to assist in the administration of
    the Plan. In addition to any other powers granted to the
    Committee, it will have the following management powers, subject
    to the express provisions of the Plan:

 

    3.1 to determine in its discretion the Eligible Persons or
    group of Eligible Persons to whom Awards will be granted;

 

    3.2 to determine the types of Awards to be granted;

 

    3.3 to determine the number of Awards to be granted to an
    Eligible Person or to a group of Eligible Persons and the number
    of Shares to be subject to each Award or pool of Awards;

 

    3.4 to determine the terms and conditions of any Award,
    including, but not limited to, the Option Price, grant price, or
    purchase price, any restrictions or limitations on the Award,
    any schedule for lapse of forfeiture restrictions or
    restrictions on the exercisability of an Award, and
    accelerations or waivers thereof, and any provisions related to
    non-competition and recapture of gain on an Award, based in each
    case on considerations as the Committee in its sole discretion
    determines;

 

    3.5 to construe and interpret any Agreement and the Plan;

 

    3.6 to require, whether or not provided for in the
    pertinent Agreement, of any Grantee, the making of any
    representations or agreements that the Committee may deem
    necessary or advisable in order to comply with, or qualify for
    advantageous treatment under, applicable securities, tax, or
    other laws;

 

    3.7 to provide for satisfaction of a Grantee’s tax
    liabilities arising in connection with the Plan through, without
    limitation, retention by the Corporation of Shares otherwise
    issuable on the exercise of, or pursuant to, an Award or through
    delivery of Common Stock to the Corporation by the Grantee under
    such terms and

    

5

 

    conditions as the Committee deems appropriate, including but not
    limited to any Share attestation procedure approved or ratified
    by the Committee or by delivery of a properly executed notice
    together with irrevocable instructions to a broker to promptly
    deliver to the Corporation the amount of sale or loan proceeds
    to pay the tax liabilities, provided that in any case the Share
    amount retained will not exceed the minimum applicable required
    withholding tax rate for federal (including FICA), state or
    local tax liability;

 

    3.8 to make all other determinations and take all other
    actions necessary or advisable for the management and
    administration of the Plan, including but not limited to
    establishing, adopting or revising any rules and regulations as
    it may deem necessary;

 

    3.9 to delegate to officers or managers of the Corporation
    or any Subsidiary the authority to make Awards to Eligible
    Persons, to select such Eligible Persons, and to determine such
    terms and conditions thereof as may be specified in such
    delegation, from a pool of Awards authorized by the Committee;

 

    3.10 to condition the grant of any Award or combination of
    Awards authorized under this Plan on the surrender or deferral
    by the Eligible Person of his or her right to receive a cash
    bonus or other compensation otherwise payable by the Corporation
    or a Subsidiary to the Grantee; and

 

    3.11 without limiting the generality of the foregoing, to
    provide in its discretion in an Agreement:

 

    (i) for an agreement by the Grantee to render services to
    the Corporation or a Subsidiary upon such terms and conditions
    as may be specified in the Agreement, provided that the
    Committee will not have the power under the Plan to commit the
    Corporation or any Subsidiary to employ or otherwise retain any
    Optionee or Grantee;

 

    (ii) for restrictions on the transfer, sale or other
    disposition of Shares issued to the Grantee;

 

    (iii) for an agreement by the Grantee to resell to the
    Corporation, under specified conditions, Shares issued in
    connection with an Award;

 

    (iv) for the payment of the Option Price upon the exercise
    of an Option otherwise than in cash, including without
    limitation by delivery of Common Stock valued at Fair Market
    Value on the exercise date of the Option or a combination of
    cash and Common Stock; by means of any Share attestation
    procedure approved or ratified by the Committee; or by delivery
    of a properly executed exercise notice together with irrevocable
    instructions to a broker to promptly deliver to the Corporation
    the amount of sale proceeds to pay the exercise price;

 

    (v) for the deferral of receipt of amounts that otherwise
    would be distributed upon exercise or payment of an Award, the
    terms and conditions of any such deferral and any interest or
    Dividend Equivalent or other payment that will accrue with
    respect to deferred distributions, subject to the provisions of
    Article 13 of this Plan; and

 

    (vi) for the effect of a Change in Control or Potential
    Change of Control, as defined herein, of the Corporation on the
    rights of a Grantee with respect to any Award.

 

    (vii) Any determinations or actions made or taken by the
    Committee pursuant to this Article will be binding and final.

 

    ARTICLE 4

    

 

    ELIGIBILITY
    

 

    Eligible Persons may be granted one or more Awards; provided,
    however, that Incentive Stock Options will not be granted to
    Directors.

    

6

 

    ARTICLE 5

    

 

    SHARES SUBJECT
    TO THE PLAN
    

 

    5.1 Subject to adjustment as provided in Article 14 of
    this Plan and Section 5.3 below, the number of Shares that
    may be issued or transferred (i) upon the exercise of
    Options or Appreciation Rights; (ii) as Share Awards;
    (iii) as Restricted Shares and released from substantial
    risk of forfeiture thereof; (iv) as Deferred Shares;
    (v) in payment of Performance Shares or Performance Units
    that have been earned; (vi) as Directors’ Shares; or
    (vii) in payment of Dividend Equivalents paid with respect
    to awards made under the Plan, shall not exceed in the aggregate
    5,600,000 Class A Common Shares and 1,200,000 Class B
    Common Shares, respectively. Such Shares may be shares of
    original issuance or treasury shares or a combination of the
    foregoing.

 

    5.2 Subject to adjustment as provided in Article 14 of
    this Plan, grants of Incentive Stock Options under the Plan may
    not be made with respect to more than 5,600,000 Class A
    Common Shares and 1,200,000 Class B Common Shares during
    any calendar year, provided that such limits only apply to the
    extent consistent with applicable regulations relating to
    Incentive Stock Options under the Internal Revenue Code. With
    respect to one fiscal year, (i) subject to adjustment as
    provided in Article 14 of this Plan an Eligible Person
    shall not receive Appreciation Rights in excess of 500,000
    Class A Common Shares and 500,000 Class B Common
    Shares; (ii) an Eligible Person shall not receive an award
    of Performance Shares or Performance Units having an aggregate
    maximum value as of their respective Grant Date in excess of
    $5,000,000; and (iii) subject to adjustment as provided in
    Article 14 of this Plan, an Eligible Person shall not
    receive Awards in excess, in the aggregate, of 500,000
    Class A Common Shares and 500,000 Class B Common
    Shares and collectively 500,000 Shares (“Individual
    Limit”).

 

    5.3 Shares underlying outstanding Awards made under the
    Plan will be available for subsequent issuance under the Plan to
    the extent those Awards are forfeited, expire or terminate for
    any reason prior to the issuance of the Shares subject to those
    Awards. Shares issued under the Plan subject to a vesting
    requirement and subsequently forfeited or repurchased by the
    Corporation, at a price per Share not greater than the original
    issue price paid per Share, pursuant to the Corporation’s
    repurchase rights under the Plan or the applicable Agreement
    will be added back to the number of Shares reserved for issuance
    under the Plan and accordingly will be available for subsequent
    reissuance. Should the exercise price of an Option under the
    Plan be paid with Shares, then the authorized reserve of Common
    Stock under the Plan will be reduced by the gross number of
    Shares for which that Option is exercised, and not by the net
    number of Shares issued under the exercised Option. If Shares
    otherwise issuable under the Plan are withheld by the
    Corporation in satisfaction of the withholding taxes incurred in
    connection with the exercise of an Option, Appreciation Right or
    issuance of fully-vested Shares under another type of Award,
    then the number of Shares available for issuance under the Plan
    will be reduced by the gross number of Shares issuable under the
    exercised Option or Appreciation Right or the gross number of
    fully-vested Shares issuable under another type of Award,
    calculated in each instance prior to any such share withholding.
    Notwithstanding the foregoing, any Award or portion of an Award
    that in accordance with the terms of the applicable Agreement,
    is payable only in cash immediately will be added back to the
    number of Shares reserved for issuance under the Plan and
    accordingly will be available for subsequent reissuance.

 

    5.4 Where two or more Awards are granted in relation to
    each other such that the exercise or payment of one such Award
    automatically and by its terms reduces the number of Shares that
    may be issued or the amount that may be received pursuant to the
    other Award or Awards, then the amount that will be included for
    purposes of the Individual Limit set forth in Section 5.2
    of this Plan for such Awards will be the amount that is the
    maximum number of Shares that could be issued or received
    pursuant to such Awards and their related Awards taken as a
    whole, and only the maximum number of Shares that could be
    issued pursuant to such Awards will be counted against the
    number of Shares reserved under the Plan at the time of their
    grant.

 

    5.5 In the case of any Award granted in substitution for an
    award of a business, corporation or other entity acquired by the
    Corporation or a Subsidiary, Shares issued or issuable in
    connection with such substitution will not be counted against
    the number of Shares reserved under the Plan, but will be
    available

    

7

 

    under the Plan by virtue of the Corporation’s assumption of
    the plan or arrangement of the acquired business, corporation or
    other entity.

 

    ARTICLE 6

    

 

    OPTIONS
    

 

    6.1 The Committee is hereby authorized to grant Incentive
    Stock Options and Nonstatutory Stock Options to any employee who
    is an Eligible Person and to grant Nonstatutory Stock Options to
    any Director, provided that the number of Options granted to an
    Eligible Person during a fiscal year will not exceed the
    applicable limitations set forth in Article 5 of this Plan
    when aggregated with other Awards made to that Eligible Person
    during that fiscal year.

 

    6.2 All Options will be evidenced by an Agreement. All
    Agreements granting Incentive Stock Options will contain a
    statement that the Option is intended to be an Incentive Stock
    Option; if no such statement is included in the Agreement, or if
    the Agreement affirmatively states that the Option is intended
    to be a Nonstatutory Stock Option, the Option shall be a
    Nonstatutory Stock Option.

 

    6.3 All Agreements shall specify the number of Class A
    Common Shares or Class B Common Shares to which it pertains
    subject to the limitations set forth in Article 5 of this
    Plan.

 

    6.4 The Option Period will be determined by the Committee
    and specifically set forth in the Agreement, provided that an
    Option will not be exercisable after ten years from the Grant
    Date.

 

    6.5 The Committee will, at or after the Grant Date,
    determine the methods by which the Option Price of an Option may
    be paid and the form or forms of payment that may be permitted.

 

    6.6 The Committee may provide in the Agreement evidencing
    the grant of an Option that the Committee, in its sole
    discretion, will have the right to substitute an Appreciation
    Right for such Option at any time prior to or upon exercise of
    such Option; provided, however, that such Appreciation Right
    will be exercisable with respect to the same number of Shares
    for which such substituted Option would have been exercisable.

 

    6.7 The Committee may provide in the Agreement evidencing a
    grant of Options (other than Incentive Stock Options) that the
    Committee, in its sole discretion, will have the right to
    provide for the payment of Dividend Equivalents to the Optionee
    on either a current, deferred, or contingent basis or may
    provide that such equivalents shall be credited against the
    Option Price.

 

    6.8 The exercise of an Option shall result in the
    cancellation on a
    share-for-share
    basis of any Related Right authorized under Article 8 of
    this Plan.

 

    6.9 Except as otherwise determined by the Committee and set
    forth in an Agreement, if a Director subsequently becomes an
    employee of the Corporation or a Subsidiary while remaining a
    member of the Board, any Options held under the Plan by such
    individual at the time of such commencement of employment shall
    not be affected thereby. If an employee who is also a Director
    terminates employment, any Awards granted in connection with
    such individual’s employment will continue to be governed
    by and subject to the provisions of the Plan and the Agreement
    regarding a termination of employment.

 

    6.10 All other terms of Options granted under the Plan will
    be determined by the Committee in its sole discretion.

 

    ARTICLE 7

    

 

    SHARE
    AWARDS, PERFORMANCE UNITS AND DIRECTORS’ AWARDS
    

 

    7.1 The Committee is authorized to grant Share Awards to
    any Eligible Person in such amounts and subject to such terms
    and conditions as determined by the Committee, provided that the
    number of Shares awarded to an Eligible Person during a fiscal
    year will not exceed the applicable limitations set forth in
    Article 5 of this Plan when aggregated with other Share
    Awards made to that Eligible Person during that fiscal

    

8

 

    year. All Share Awards will be evidenced by an Agreement. Shares
    issued or transferred pursuant to a Share Award may be issued or
    transferred for consideration or no consideration (except as
    required by applicable law).

 

    7.2 Except as otherwise determined by the Committee and set
    forth in an Agreement, Restricted Shares are subject to the
    following terms and conditions:

 

    (i) Each such grant shall constitute an immediate transfer
    of the ownership of Common Stock to the Eligible Person in
    consideration for the performance of services, entitling such
    Eligible Person to voting, dividend and other ownership rights
    consistent with the Corporation’s Articles of
    Incorporation, Code of Regulations and other corporate documents
    as applicable to and governing Class A Common Shares and
    Class B Common Shares, but subject to the substantial risk
    of forfeiture and restrictions on transfer hereinafter referred
    to and subject to any requirement that requires any or all
    dividends or other distributions paid with respect to Restricted
    Shares be automatically deferred and reinvested in additional
    Restricted Shares, which may be subject to the same restrictions
    as the underlying award.

 

    (ii) Each such grant may be made without additional
    consideration or in consideration of a payment by such Eligible
    Person that is more or less than Fair Market Value per Share at
    the Grant Date.

 

    (iii) Each such grant shall provide that the Restricted
    Shares covered by such grant shall be subject to a
    “substantial risk of forfeiture” within the meaning of
    Section 83 of the Internal Revenue Code. Each such grant
    shall provide that during the period for which such substantial
    risk of forfeiture is to continue the transferability of the
    Restricted Shares shall be prohibited or restricted in the
    manner and to the extent prescribed by the Committee at the
    Grant Date. Except as otherwise determined by the Committee at
    the time of the grant of Restricted Shares or thereafter, upon
    termination of employment or service with or for the Corporation
    and/or
    Subsidiaries during the applicable restriction period,
    Restricted Shares that are at that time subject to restrictions
    will be forfeited.

 

    (iv) Any grant of Restricted Shares may specify Performance
    Criteria or other performance goals which, if achieved, will
    result in termination or early termination of the restrictions
    applicable to such shares, and each grant may specify in respect
    of such specified Performance Criteria or other performance
    goals, a minimum acceptable level of achievement and shall set
    forth a formula for determining the number of Restricted Shares
    on which the restrictions will terminate if performance is at or
    above the minimum level, but falls short of full achievement of
    the specified Performance Criteria or other performance goals.

 

    (v) If certificates representing Restricted Shares are
    registered in the name of the Grantee, those certificates must
    bear an appropriate legend referring to the terms, conditions
    and restrictions applicable to such Restricted Shares, and the
    Corporation may, at its discretion, retain physical possession
    of certificates until such time as all applicable restrictions
    lapse.

 

    7.3 Except as otherwise determined by the Committee and set
    forth in an Agreement, Deferred Shares are subject to the
    following terms and conditions:

 

    (i) Each such grant shall constitute the agreement by the
    Corporation to deliver Common Stock to the Eligible Person in
    the future in consideration of the performance of services, but
    subject to the fulfillment of such conditions during the
    Deferral Period as the Committee may specify.

 

    (ii) Each such grant may be made without additional
    consideration or in consideration of a payment by such Eligible
    Person that is more or less than Fair Market Value per Share at
    the Grant Date.

 

    (iii) Each such grant shall be subject to a Deferral Period
    of not less than one year, as determined by the Committee at the
    Grant Date except (if the Committee shall so determine) in the
    event of a Change in Control or other similar transaction or
    event.

 

    (iv) During the Deferral Period, an Eligible Person shall
    have no right to transfer any rights under his or her award,
    shall have no rights of ownership in the Deferred Shares and
    shall have no right to vote them, but the Committee may, at or
    after the Grant Date, authorize the payment of Dividend
    Equivalents

    

9

 

    on such shares on either a current, deferred, or contingent
    basis, either in cash or in additional Common Stock.

 

    (v) Each grant shall be consistent with Section 409A
    of the Internal Revenue Code, as the Committee may approve.

 

    7.4 Except as otherwise determined by the Committee and set
    forth in an Agreement, Performance Shares or Performance Units
    are subject to the following terms and conditions:

 

    (i) The Performance Period with respect to each Performance
    Share and Performance Unit shall be such period of time
    designated in the Agreement (as shall be determined by the
    Committee at the time of grant) commencing with the Grant Date.

 

    (ii) Any grant of Performance Shares and Performance Units
    shall specify Performance Criteria or other performance goals
    which, if achieved, will result in payment or early payment of
    the Award, and each grant may specify in respect of such
    specified Performance Criteria or other performance goals a
    minimum acceptable level of achievement and shall set forth a
    formula for determining the number of Performance Shares or
    Performance Units that will be earned if performance is at or
    above the minimum level, but falls short of full achievement or
    the specified Performance Criteria or other performance goals.

 

    (iii) Each grant shall specify the time and manner of
    payment of Performance Shares or Performance Units that have
    been earned. Any grant may specify that the amount payable with
    respect thereto may be paid by the Corporation in cash, in
    Class A Common Shares or Class B Common Shares or in
    any combination thereof and may either grant to the Eligible
    Person or retain in the Committee the right to elect among those
    alternatives.

 

    (iv) The Committee may, at or after the Grant Date, provide
    for the payment of Dividend Equivalents to the holder thereof on
    either a current, deferred or contingent basis, either in cash
    or in additional Common Stock.

 

    7.5 Subject to the applicable limitations set forth in
    Article 5 of this Plan, Directors may elect to receive
    Class A or Class B Common Shares, as determined by the
    Board, in an amount equal to (and in lieu of) any or all fees
    owed to them by the Corporation as compensation for serving on
    the Corporation’s Board. For the purposes of this
    Section 7.5, Shares are valued at the closing price
    reported on the New York Stock Exchange (or if the Class A
    Common Shares are not then traded on the New York Stock
    Exchange, as reported by such other national securities exchange
    or quoted on the Nasdaq National Market or such other automated
    quotation system in which the Class A Common Shares are
    quoted) on the last trading day of the calendar quarter prior to
    payment of such fees. Any fractional shares shall be paid as
    cash.

 

    ARTICLE 8

    

 

    APPRECIATION
    RIGHTS
    

 

    8.1 The Committee may grant Appreciation Rights to any
    Eligible Person, upon such terms and conditions as the Committee
    deems appropriate under this Article 8, provided that the
    number of Appreciation Rights granted to an Eligible Person
    during a fiscal year will not exceed the applicable limitations
    set forth in Article 5 of this Plan when aggregated with
    other Appreciation Rights made to that Eligible Person during
    that fiscal year.

 

    8.2 An Appreciation Right may be granted under the Plan:

 

    (i) in connection with, and at the same time as, the grant
    of an Option to an Eligible Person;

 

    (ii) by amendment of an outstanding Nonstatutory Stock
    Option granted under the Plan to an Eligible Person; or

 

    (iii) independently of any Option granted under the Plan.

    

10

 

    An Appreciation Right granted under clause (i) or
    (ii) of the preceding sentence is a Related Right. A
    Related Right may, in the Committee’s discretion, apply to
    all or a portion of the Options subject to the Related Award.

 

    8.3 An Appreciation Right may be exercised in whole or in
    part as provided in the Agreement, and, subject to the
    provisions of the Agreement, entitles its Grantee to receive,
    without any payment to the Corporation (other than required tax
    withholding amounts), either cash or that number of Shares
    (equal to the highest whole number of Shares), or a combination
    thereof, in an amount or having a Fair Market Value determined
    as of the date such Appreciation Right is exercised not to
    exceed the number of shares underlying the Appreciation Right
    exercised multiplied by an amount equal to the excess of the
    Fair Market Value on the exercise date of the Appreciation Right
    over the “base price”, which is the Fair Market Value
    on the Grant Date of the Appreciation Right (or such price in
    excess of Fair Market Value on the Grant Date as the Committee
    determined at the time of grant).

 

    8.4 The Right Period will be determined by the Committee
    and specifically set forth in the Agreement, provided, however
    that an Appreciation Right that is a Related Right may be
    exercised only when and to the extent the Related Award is
    exercisable.

 

    8.5 The exercise or settlement, in whole or in part, of a
    Related Right will cause a reduction on a
    share-for-share
    basis in any Related Award.

 

    8.6 The Committee may specify Performance Criteria or other
    performance goals that must be achieved as a condition of the
    exercise of such rights.

 

    8.7 Each grant of Appreciation Rights shall be evidenced by
    an Agreement that identifies the related Options (if applicable)
    and contains such terms and provisions, consistent with this
    Plan, as the Committee may approve.

 

    ARTICLE 9

    

 

    PERFORMANCE
    BONUSES
    

 

    The Committee may grant Performance Bonuses under the Plan in
    the form of cash or Shares to Eligible Persons that the
    Committee may from time to time select, in the amounts and
    pursuant to the terms and conditions that the Committee may
    determine, subject to the provisions below:

 

    9.1 Performance Bonuses will be awarded in connection with
    a Performance Period, the length of which will be determined by
    the Committee.

 

    9.2 The Committee will determine the persons who will be
    eligible to receive a Performance Bonus under the Plan.

 

    9.3 Performance Criteria or other performance goals,
    performance targets and other award criteria shall be determined
    as follows:

 

    (i) The Committee will fix and establish (A) the
    performance goals that will apply to that Performance Period;
    (B) the target amount payable to each Eligible Person; and
    (C) subject to Section 9.4 below, the criteria for
    computing the amount that will be paid with respect to each
    level of attained performance. The Committee may also set forth
    the minimum level of performance, based on objective factors,
    that must be attained during the Performance Period before any
    Performance Bonus will be paid and the percentage of the target
    amount that will become payable upon attainment of various
    levels of performance that equal or exceed any minimum required
    level.

 

    (ii) The Committee may, in its discretion, select
    performance goals that measure the performance of the Eligible
    Person, the Corporation or one or more business units, divisions
    or Subsidiaries of the Corporation. The Committee may select
    performance goals that are absolute or relative to the
    performance of one or more comparable companies or an index of
    comparable companies. The performance goals may be described in
    terms of company-wide objectives or objectives that are related
    to the performance of the individual Eligible

    

11

 

    Person or of the Subsidiary, division, department, region or
    function within the Corporation or Subsidiary in which the
    Eligible Person is employed.

 

    9.4 In applying the performance goals, the Committee may,
    in its discretion, exclude unusual or infrequently occurring
    items (including any event listed in Article 14 of this
    Plan and the cumulative effect of changes in the law,
    regulations or accounting rules), and may determine to exclude
    other items, each determined in accordance with GAAP (to the
    extent applicable) and as identified in the financial
    statements, notes to the financial statements or discussion and
    analysis of management.

 

    9.5 All such Performance Bonuses shall be paid no later
    than the 15th day of the third month following the end of
    the calendar year (or, if later, following the end of the
    Corporation’s fiscal year) in which such Performance
    Bonuses are no longer subject to a substantial risk of
    forfeiture (as determined for purposes of Section 409A of
    the Internal Revenue Code). The Committee may provide that
    Awards will be payable, in whole or in part, in the event of the
    Grantee’s death or disability, a Change of Control or under
    other circumstances.

 

    ARTICLE 10

    

 

    QUALIFIED
    PERFORMANCE-BASED COMPENSATION
    

 

    10.1 The Committee may determine that an Award or Awards
    granted to an Eligible Person will be considered “qualified
    performance-based compensation” under Section 162(m)
    of the Internal Revenue Code. The provisions of this
    Article 10 apply only to any such Awards that are to be
    considered “qualified performance-based compensation”
    under Section 162(m) of the Internal Revenue Code. To the
    extent that Awards designated as “qualified
    performance-based compensation” under Section 162(m)
    of the Internal Revenue Code are made, no such Award may be made
    as an alternative to another Award that is not also designated
    as “qualified performance-based compensation” but
    instead must be separate and apart from all other Awards made.

 

    10.2 When Options or Appreciation Rights that are to be
    considered “qualified performance-based compensation”
    are granted, the Committee approving such grants must consist
    solely of two or more “outside directors” as defined
    in Treas. Reg.
    Section 1.162-27(e)(3),
    and the Option Price or base price, as the case may be,
    established for the grant by the Committee will not be less than
    the Fair Market Value on the Grant Date.

 

    10.3 When Awards other than Options or Appreciation Rights
    that are to be considered “qualified performance-based
    compensation” are granted, the Committee will establish in
    writing (i) the Performance Criteria that must be met,
    (ii) the Performance Period during which performance will
    be measured, (iii) the maximum amounts that may be paid if
    the Performance Criteria are met, and (iv) any other
    conditions that the Committee deems appropriate and consistent
    with the Plan and the requirements of Section 162(m) of the
    Internal Revenue Code for “qualified performance-based
    compensation.” The Performance Criteria will satisfy the
    requirements for “qualified performance-based
    compensation,” including the requirement that the
    achievement of the goals be substantially uncertain at the time
    they are established and that the Performance Criteria be
    established in such a way that a third party with knowledge of
    the relevant facts could determine whether and to what extent
    the Performance Criteria have been met. The Committee will not
    have discretion to increase the maximum amount of compensation
    that is payable upon achievement of the designated Performance
    Criteria, but the Committee may in its discretion reduce the
    amount of compensation that is payable to an Eligible Person
    upon achievement of the designated Performance Criteria.

 

    10.4 The Committee will establish the Performance Criteria
    in writing either before the beginning of the Performance Period
    or during a period ending no later than the earlier of
    (i) 90 days after the beginning of the Performance
    Period or (ii) the date on which 25% of the Performance
    Period has been completed, or such other date as may be required
    or permitted under applicable regulations under
    Section 162(m) of the Internal Revenue Code.

    

12

 

    10.5 The Committee will certify and announce the results
    for the Performance Period to all affected Grantees after the
    Corporation determines the financial and other relevant
    performance results for the Performance Period. The Committee
    will determine the amount, if any, to be paid pursuant to each
    Award based on the achievement of the Performance Criteria and
    the terms of each Agreement.

 

    10.6 The Committee may provide that Awards will be payable,
    in whole or in part, in the event of the Grantee’s death or
    disability, a Change of Control or under other circumstances
    consistent with the Treasury regulations and rulings under
    Section 162(m) of the Internal Revenue Code.

 

    ARTICLE 11

    

 

    TRANSFERABILITY
    

 

    11.1 Except as otherwise determined by the Committee on a
    case-by-case
    basis, no Options, Appreciation Rights or other derivative
    security granted under the Plan shall be transferable by an
    Optionee other than by will or the laws of descent and
    distribution. Except as otherwise determined by the Committee on
    a
    case-by-case
    basis, Options and Appreciation Rights shall be exercisable
    during the Optionee’s lifetime only by him or her or by his
    or her guardian or legal representative.

 

    11.2 The Committee may specify at the Grant Date that part
    or all of the Common Stock that is (i) to be issued or
    transferred by the Corporation upon the exercise of Option
    grants or Appreciation Rights, upon the termination of the
    Deferral Period applicable to Deferred Shares or upon payment
    under any grant of Performance Shares or Performance Units or
    (ii) no longer subject to the substantial risk of
    forfeiture and restrictions on transfer referred to in
    Section 7.2 of this Plan, shall be subject to further
    restrictions on transfer.

 

    11.3 The Grantee acknowledges that the Plan is intended to
    conform to the extent necessary with all provisions of the
    Securities Act, the Exchange Act, and any and all regulations
    and rules promulgated thereunder, or by the Securities and
    Exchange Commission, and state securities laws and regulations.
    Notwithstanding anything herein to the contrary, the Plan shall
    be administered and Awards may be granted and exercised only in
    such manner to conform to such laws, rules and regulations. To
    the extent permitted by applicable law, the Plan and any
    Agreement shall be deemed amended to the extent necessary to
    conform to such laws, rules and regulations.

 

    ARTICLE 12

    

 

    EXERCISE;
    PAYMENT OF WITHHOLDING TAXES
    

 

    An Award that is exercisable by the Grantee may, subject to the
    provisions of the Agreement under which it was granted, be
    exercised in whole or in part by the delivery to the Corporation
    of written notice of the exercise, in such form as the Committee
    may prescribe. The exercise, however, will not be effective
    until the Corporation has received the election notice and will
    be subject to receipt by the Corporation of payment of any
    applicable Option Price or other amount due in connection with
    such exercise, calculation by the Corporation of the applicable
    withholding taxes, and receipt by the Corporation of payment for
    any applicable withholding taxes.

 

    ARTICLE 13

    

 

    DEFERRAL OF
    AWARDS OR COMPENSATION
    

 

    13.1 If a Grantee so elects in accordance with the terms of
    an Agreement, the Grantee may defer (i) any or all of an
    amount otherwise payable in connection with an Award or
    (ii) any payment of a cash bonus or other compensation in
    exchange for an Award under this Plan, provided that:

 

    (i) the Grantee makes such election by delivering to the
    Corporation written notice of such election, at such time and in
    such form as the Committee may from time to time prescribe in
    accordance with the deferral requirements set forth in
    Section 409A of the Internal Revenue Code;

    

13

 

    (ii) such election will be irrevocable;

 

    (iii) such deferred payment will be made in accordance with
    the provisions of such deferred compensation plan; and

 

    (iv) the terms of the deferred compensation plan and the
    election to defer under this Plan comply with Section 409A
    of the Internal Revenue Code.

 

    13.2 The Committee may also provide that deferral issuances
    and settlements include the payment or crediting of Dividend
    Equivalents or interest on the deferral amounts. Nothing in this
    Plan shall be deemed to limit an Eligible Person’s ability
    to defer compensation under any other deferred compensation
    plan, arrangement or Agreement maintained by the Corporation.

 

    ARTICLE 14

    

 

    CAPITAL
    ADJUSTMENTS
    

 

    The number and class of Shares subject to each outstanding Share
    Award, the Option Price, the base price for any Appreciation
    Right or other Award using such a price, the aggregate number
    and class of Shares for which grants of Share Awards thereafter
    may be made or in which Awards may be paid, and the limits
    provided for in Article 5 of this Plan, will be subject to
    such adjustment, if any, as the Committee in its sole discretion
    deems appropriate to reflect any corporate transaction or event,
    including, without limitation, dividends, Share splits,
    spin-offs,
    split-ups,
    recapitalizations, mergers, consolidations or reorganizations of
    or by the Corporation.

 

    ARTICLE 15

    

 

    CONSEQUENCES
    OF A CHANGE IN CONTROL

    

    OR POTENTIAL
    CHANGE IN CONTROL
    

 

    15.1 In the event of a Change in Control or Potential
    Change in Control, in addition to such other actions
    contemplated herein, the Committee may take any one or more of
    the following actions with respect to any or all outstanding
    Awards, without the consent of any Eligible Person: (i) the
    Committee may determine that outstanding Options and
    Appreciation Rights shall be fully exercisable, and restrictions
    on outstanding Restricted Shares, Deferred Shares, Performance
    Shares and Performance Units shall lapse, as of the date of the
    Change in Control or at such other time as the Committee
    determines, (ii) the Committee may require that Eligible
    Persons surrender their outstanding Options and Appreciation
    Rights in exchange for one or more payments by the Corporation,
    in cash or Common Stock as determined by the Committee, in an
    amount equal to the amount by which the then Fair Market Value
    of the shares of Common Stock subject to the Eligible
    Persons’ unexercised Options and Appreciation Rights
    exceeds the exercise price, if any, and on such terms as the
    Committee determines, (iii) after giving Eligible Persons
    an opportunity to exercise their outstanding Options and
    Appreciation Rights, the Committee may terminate any or all
    unexercised Options and Appreciation Rights at such time as the
    Committee deems appropriate, (iv) with respect to Grantees
    holding Share Awards, Directors’ Shares, Performance Units
    or Dividend Equivalents, the Committee may determine that such
    Grantees shall receive one or more payments in settlement of
    such Share Awards, Directors’ Shares and Performance Units,
    in such amount and form and on such terms as may be determined
    by the Committee, or (v) the Committee may determine that
    Awards that remain outstanding after the Change in Control shall
    be converted to similar grants of, or assumed by, the surviving
    corporation (or a parent or subsidiary of the surviving
    corporation or successor). Such acceleration, surrender,
    termination, settlement or conversion shall take place as of the
    date of the Change in Control or such other date as the
    Committee may specify.

 

    15.2 The Committee may provide in an Agreement that a sale
    or other transaction involving a Subsidiary or other business
    unit of the Corporation shall be considered a Change in Control
    for purposes of an Award, or the Committee may establish other
    provisions that shall be applicable in the event of a specified
    transaction.

    

14

 

    ARTICLE 16

    

 

    TERMINATION
    OR AMENDMENT
    

 

    16.1 The Board or the Committee may amend, alter or
    terminate this Plan in any respect, at any time; provided,
    however, that no amendment, alteration or termination of this
    Plan will be made by the Board or the Committee without approval
    of (i) the Corporation’s shareholders to the extent
    shareholder approval of the amendment is required by applicable
    law or regulations or the requirements of the principal exchange
    or interdealer quotation system on which the Common Stock is
    listed or quoted, and (ii) each affected Optionee or
    Grantee if such amendment, alteration or termination would
    adversely affect his or her rights or obligations under any
    Award made prior to the date of such amendment, alteration or
    termination except as otherwise permitted under Articles 15
    and 19 of this Plan.

 

    16.2 The effective date of any amendment to the Plan will
    be the date specified by the Board or Committee, as applicable.
    Any amendments to the Plan requiring shareholder approval
    pursuant to this Article 16 are subject to approval by vote
    of the shareholders of the Corporation within twelve months
    after their adoption by the Board or the Committee. Subject to
    that approval, any such amendments are effective as of the date
    on which they are adopted by the Board. Awards may be granted or
    awarded prior to shareholder approval of amendments, but each
    Award requiring such amendments will be subject to the approval
    of the amendments by the shareholders. The date on which any
    Award made prior to shareholder approval of the amendment will
    be the Grant Date for all purposes of the Plan as if the Award
    had not been subject to approval. No Award granted subject to
    shareholder approval of an amendment may be exercised prior to
    such shareholder approval, and any dividends payable thereon are
    subject to forfeiture if such shareholder approval is not
    obtained. Presentation of this Plan or any amendment hereof for
    shareholder approval shall not be construed to limit the
    Corporation’s authority to offer similar or dissimilar
    benefits under other plans without shareholder approval.

 

    16.3 Neither the Board nor the Committee shall, without
    further approval of the shareholders of the Corporation,
    authorize the amendment of any outstanding Option to reduce the
    Option Price. Furthermore, no Option shall be canceled and
    replaced with awards having a lower Option Price without further
    approval of the shareholders of the Corporation. This
    Section 16.3 is intended to prohibit the repricing of
    “underwarter” Options and shall not be construed to
    prohibit the adjustments provided for in Section 14 of this
    Plan.

 

    16.4 Neither the Board nor the Committee shall, without
    further approval of the shareholders of the Corporation,
    authorize any Option grant to provide for automatic
    “reload” rights, the automatic grant of Options to the
    Optionee upon the exercise of Options using Shares or other
    equity.

 

    ARTICLE 17

    

 

    TERM OF THE
    PLAN
    

 

    Unless sooner terminated by the Board or the Committee pursuant
    to Article 16 of this Plan, the Plan will terminate ten
    years after the date on which the Plan was first approved by the
    shareholders of the Corporation. The termination will not affect
    the validity of any Awards outstanding on the date of
    termination. Awards may be granted or awarded prior to
    shareholder approval of this Plan, but any Award requiring such
    shareholder approval will be subject to approval of the Plan by
    the shareholders. No Award granted subject to such shareholder
    approval, and any dividends payable thereon, are subject to
    forfeiture if such shareholder approval is not obtained.

 

    ARTICLE 18

    

 

    INDEMNIFICATION
    OF COMMITTEE
    

 

    In addition to such other rights of indemnification as they may
    have as directors or as members of the Committee, the members of
    the Committee will be indemnified by the Corporation against the
    reasonable expenses, including attorneys’ fees, actually
    and reasonably incurred in connection with the defense of any

    

15

 

    action, suit or proceeding, or in connection with any appeal
    therein, to which they or any of them may be a party by reason
    of any action taken or failure to act under or in connection
    with the Plan or any Awards granted hereunder, and against all
    amounts reasonably paid by them in settlement thereof or paid by
    them in satisfaction of a judgment in any such action, suit or
    proceeding, if such members acted in good faith and in a manner
    which they believed to be in, and not opposed to, the best
    interests of the Corporation.

 

    ARTICLE 19

    

 

    COMPLIANCE
    WITH SECTION 409A OF THE INTERNAL REVENUE CODE
    

 

    To the extent the Committee determines that any Award granted
    under the Plan is subject to Section 409A of the Internal
    Revenue Code, the Agreement evidencing such Award will
    incorporate the terms and conditions required by
    Section 409A of the Internal Revenue Code. To the extent
    applicable, the Plan and Agreement will be interpreted in
    accordance with Section 409A of the Internal Revenue Code
    and Department of Treasury regulations and other interpretive
    guidance issued thereunder, including without limitation any
    such regulations or other guidance that may be issued after the
    Effective Date. Notwithstanding any provision of the Plan, in
    the event that following the Effective Date the Committee
    determines that any Award may be subject to Section 409A of
    the Internal Revenue Code, the Committee may adopt such
    amendments to the Plan
    and/or the
    applicable Agreement or adopt policies and procedures or take
    any other action or actions, including an action or amendment
    with retroactive effect, that the Committee determines is
    necessary or appropriate to (i) exempt the Award from the
    application of Section 409A of the Internal Revenue Code or
    (ii) comply with the requirements of Section 409A of
    the Internal Revenue Code.

 

    ARTICLE 20

    

 

    GENERAL
    PROVISIONS
    

 

    20.1 The establishment of the Plan will not confer upon any
    Eligible Person any legal or equitable right against the
    Corporation, any Subsidiary or the Committee, except as
    expressly provided in the Plan.

 

    20.2 All grants and awards under the Plan are subject to
    the condition subsequent that an appropriate Agreement be signed
    by the parties.

 

    20.3 Neither the Plan nor any Agreement constitutes
    inducement or consideration for the employment or retention of
    any Eligible Person, nor are they a contract of employment or
    retention for a specific term between the Corporation or any
    Subsidiary and any Eligible Person. Participation in the Plan
    will not give an Eligible Person any right to be retained in the
    service of the Corporation or any Subsidiary as an employee, a
    director or otherwise.

 

    20.4 The Corporation and its Subsidiaries may assume
    options, warrants, or rights to purchase shares issued or
    granted by other corporations or entities whose shares or assets
    are acquired by the Corporation or its Subsidiaries, or which
    are merged into or consolidated with the Corporation or its
    Subsidiaries. Neither the adoption of this Plan, nor its
    submission to the shareholders, will be taken to impose any
    limitations on the powers of the Corporation or its affiliates
    to issue, grant, or assume options, warrants, or rights,
    otherwise than under this Plan, or to adopt other share option
    or restricted share plans or other incentives, or to impose any
    requirement of shareholder approval upon the same.

 

    20.5 Except as the Committee may otherwise provide, or as
    may otherwise be required by a deferral election pursuant to
    Article 13 of this Plan, the interests of any Eligible
    Person under the Plan are not subject to the claims of creditors
    and may not, in any way, be assigned, alienated or encumbered.

 

    20.6 The Board or the Committee may, in its sole
    discretion, delegate authority hereunder not already delegated
    by the terms hereof, including but not limited to delegating
    authority to select Eligible Persons, to grant Awards, to
    establish terms and conditions of Awards, or to amend, manage,
    administer, interpret, construe or vary the Plan or any Awards
    or Agreements, to the extent permitted by applicable law or
    administrative or regulatory rule.

    

16

 

    20.7 The Committee may, without amending the Plan,
    determine the terms and conditions applicable to grants of
    Awards to Grantees who are foreign nationals or employed outside
    the United States in a manner otherwise inconsistent with the
    Plan if the Board deems such terms and conditions necessary in
    order to recognize differences in local law or regulations, tax
    policies or customs.

 

    20.8 The Plan will be governed, construed and administered
    in accordance with the laws of the State of Ohio, without
    reference to its conflict of laws provisions, and it is the
    intention of the Corporation that Incentive Stock Options
    granted under the Plan qualify as such under Section 422 of
    the Internal Revenue Code and that Qualified Performance-Based
    Compensation granted under the Plan qualify as “qualified
    performance-based compensation” as described in
    Section 162(m) of the Internal Revenue Code.

 

 

 

    

17

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