Document:

Exhibit
10.1

 

UTSTARCOM, INC.

 

THIRD AMENDMENT TO COMMON STOCK
PURCHASE AGREEMENT

 

This THIRD AMENDMENT (this “Amendment”)
to the Common Stock Purchase Agreement dated as of February 1, 2010, as
amended on April 30, 2010 and June 4, 2010 (the “Agreement”),
by and between UTStarcom, Inc., a corporation organized and existing under
the laws of the State of Delaware (the “Company”), and
Beijing E-Town International Investment and Development Co., Ltd., a
company incorporated under the laws of the People’s Republic of China (the “Purchaser”), is made and entered into as of
July 7, 2010.  Capitalized terms used and
not otherwise defined in this Amendment shall have the meanings ascribed to
them in the Agreement.

 

RECITALS

 

WHEREAS, Section 6.14
of the Agreement provides that either the Company or the Purchaser may
terminate the Agreement under certain circumstances if the Closing has not
occurred within 150 days of the date thereof.

 

WHEREAS, the Company
and the Purchaser desire to amend the Agreement such that either the Company or
the Purchaser may terminate the Agreement under certain circumstances if the
Closing has not occurred within 180 days of the date thereof.

 

WHEREAS, Section 6.8
of the Agreement provides that any provision of the Agreement may be amended,
modified or terminated only upon the written consent of the Company and the
Purchaser.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Purchaser and the Company hereby agree as follows:

 

1.     Amendment.  Section 6.14(a)(ii) of
the Agreement is hereby amended and restated in its entirety to read as
follows:

 

“(ii) by either the Company or the Purchaser if the Closing has not
occurred within 180 days of the date hereof; provided, however, that the right
to terminate this Agreement under this Section 6.14(a)(ii) shall not
be available to any party whose action or failure to act has been a principal
cause of or resulted in the failure of the Closing to occur on or before such
date and such action or failure or failure to act constitutes a material breach
of this Agreement.”

 

2.     Continuing Agreement. 
Except as specifically amended by this Amendment, all of the terms of
the Agreement shall remain and continue in full force and effect.

 

3.     Counterparts.  This
Amendment may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.  A
facsimile, portable document file (PDF) or other reproduction of this Amendment
may be executed by one or more parties and delivered by such party by
facsimile, electronic mail or any similar electronic transmission pursuant to
which the signature of or on behalf of such party can be seen.  Such
execution and delivery shall be considered valid, binding and effective for all
purposes.

 

1

 

4.     Governing Law. 
This Amendment shall be governed by and construed in accordance with the
internal and substantive laws of the State of California and without regard to
any conflicts of laws concepts which would apply the substantive law of some
other jurisdiction.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

2

 

IN WITNESS WHEREOF, the Purchaser and the Company
have caused their duly authorized representatives to execute this Amendment as
of the date first written above.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UTSTARCOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter Blackmore

  
	
   

  	
  Name: Peter Blackmore

  
	
   

  	
  Title: Chief Executive Officer

  

 

Signature
Page to Third Amendment to Common Stock Purchase Agreement

 

 

IN WITNESS WHEREOF, the Purchaser and the Company
have caused their duly authorized representatives to execute this Amendment as
of the date first written above.

 

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEIJING E-TOWN INTERNATIONAL INVESTMENT AND
  DEVELOPMENT CO., LTD.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Xiaoping Li

  
	
   

  	
  Name: Xiaoping Li

  
	
   

  	
  Title: Executive Deputy General Manager

  

 

Signature Page to
Third Amendment to Common Stock Purchase AgreementExhibit 10.2

 

UTSTARCOM, INC.

 

THIRD AMENDMENT TO COMMON STOCK
PURCHASE AGREEMENT

 

This THIRD AMENDMENT (this “Amendment”)
to the Common Stock Purchase Agreement dated as of February 1, 2010, as
amended on April 30, 2010 and June 4,
2010 (the “Agreement”), by and among
UTStarcom, Inc., a corporation organized and existing under the laws of
the State of Delaware (the “Company”) and
the purchasers listed on Schedule A thereto (the “Purchasers”),
is made and entered into as of July 7, 2010. 
Capitalized terms used and not otherwise defined in this Amendment shall
have the meanings ascribed to them in the Agreement.

 

RECITALS

 

WHEREAS, Section 6.14
of the Agreement provides that either the Company or the Purchasers
representing 75% of the Purchase Shares may terminate the Agreement under
certain circumstances if the Closing has not occurred within 150 days of the
date thereof.

 

WHEREAS, the Company
and the Purchasers desire to amend the Agreement such that either the Company
or the Purchasers representing 75% of the Purchase Shares may terminate the
Agreement under certain circumstances if the Closing has not occurred within
180 days of the date thereof.

 

WHEREAS, Section 6.8
of the Agreement provides that any provision of the Agreement may be amended,
modified or terminated only upon the written consent of the Company and the
Purchasers representing 75% of the Purchase Shares.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Purchasers and the Company hereby agree as follows:

 

1.     Amendment.  Section 6.14(a)(ii) of
the Agreement is hereby amended and restated in its entirety to read as
follows:

 

“(ii) by either the Company or Purchasers representing 75% of the
Purchase Shares purchasable hereunder if the Closing has not occurred within
180 days of the date hereof; provided, however, that the right to terminate
this Agreement under this Section 6.14(a)(ii) shall not be available
to any party whose (in the case of the Purchasers, any Purchaser’s) action or
failure to act has been a principal cause of or resulted in the failure of the
Closing to occur on or before such date and such action or failure or failure
to act constitutes a material breach of this Agreement.”

 

2.     Continuing Agreement. 
Except as specifically amended by this Amendment, all of the terms of
the Agreement shall remain and continue in full force and effect.

 

3.     Counterparts.  This
Amendment may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.  A
facsimile, portable document file (PDF) or other reproduction of this Amendment
may be executed by one or more parties and delivered by such party by
facsimile, electronic mail or any similar electronic transmission pursuant to
which the signature of or on behalf of such party can be seen.  Such
execution and delivery shall be considered valid, binding and effective for all
purposes.

 

1

 

4.     Governing Law.  This Amendment shall be governed by and
construed in accordance with the internal and substantive laws of the State of
California and without regard to any conflicts of laws concepts which would
apply the substantive law of some other jurisdiction.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

2

 

IN WITNESS WHEREOF, the Purchasers and the Company
have caused their duly authorized representatives to execute this Amendment as
of the date first written above.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UTSTARCOM, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter Blackmore

  
	
   

  	
  Name: Peter Blackmore

  
	
   

  	
  Title: Chief Executive Officer

  

 

Signature
Page to Third Amendment to Common Stock Purchase Agreement

 

 

IN WITNESS WHEREOF, the Purchasers and the Company
have caused their duly authorized representatives to execute this Amendment as
of the date first written above.

 

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ELITE NOBLE LIMITED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jingchun Sun

  
	
   

  	
  Name: Jingchun Sun

  
	
   

  	
  Title: Director

  

 

Signature
Page to Third Amendment to Common Stock Purchase Agreement

 

 

IN WITNESS WHEREOF, the Purchasers and the Company
have caused their duly authorized representatives to execute this Amendment as
of the date first written above.

 

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHAH CAPITAL OPPORTUNITY FUND LP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Himanshu H. Shah

  
	
   

  	
  Name: Himanshu H. Shah

  
	
   

  	
  Title: General Partner

  

 

Signature Page to
Third Amendment to Common Stock Purchase AgreementExhibit 10.1

 

INTERNATIONAL
RECTIFIER CORPORATION

 

2000
INCENTIVE PLAN

 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

[Performance
Based]

 

	
  Participant Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Number of Stock
  Units:

  	
   

  	
   

  	
   (1)

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  See vesting set forth in
  Exhibit A attached hereto(1)

  
	
   

  	
   

  	
   

  
	
  Award Date:

  	
   

  	
   

  	
  , 201

  	
   

  	
   

  

 

(1) All share and unit numbers
are subject to adjustment under the terms of the Plan.  The Stock Units
are subject to acceleration and termination prior to vesting as provided
herein.

 

THIS
AGREEMENT is among INTERNATIONAL RECTIFIER CORPORATION, a
Delaware corporation (the “Corporation”), and the employee named above (the “Participant”),
an employee of the Corporation or one of its subsidiaries, and is delivered
under the International Rectifier Corporation 2000 Incentive Plan (Amended and
Restated as of November 22, 2004) (the “Plan”).

 

W I T N E S S E T H

 

WHEREAS, the Compensation Committee of the Board of Directors has
approved, and the Corporation has granted, effective as of the Award Date, to
the Participant with reference to services rendered to the Company, a
restricted stock unit award under the Plan (the “Stock Unit Award” or “Award”),
upon the terms and conditions set forth herein and in the Plan.

 

NOW
THEREFORE, in
consideration of services rendered by the Participant and the mutual promises
made herein and the mutual benefits to be derived therefrom, the parties agree
as follows:

 

1.       Defined
Terms. 
Capitalized terms used herein and not otherwise defined herein shall have the
meaning assigned to such terms in the Plan.  For purposes of this
Agreement, a “Stock Unit” means a non-voting unit of measurement which is
deemed for bookkeeping purposes to be equivalent to one outstanding share of
Common Stock of the Corporation.

 

2.       Grant.  Subject to the terms of this Agreement and the Plan,
the Corporation grants to the Participant a Stock Unit Award with respect to an
aggregate number of Stock Units set forth above.  The Corporation
acknowledges that the consideration for the shares payable with respect to the
Stock Units on the terms set forth in this Agreement shall be the services
rendered to the Company by the Participant prior to the applicable vesting
date, the fair value of which is not less than the par value per share of the
Corporation’s Common Stock.

 

 

3.       Vesting.  The Stock Units subject to the Award shall vest in
installments as set forth in the “Vesting Schedule” set forth in Exhibit A
attached hereto, subject to earlier termination or acceleration and subject to
adjustment as provided herein.

 

4.       Continuance
of Employment Required. 
Except as otherwise provided herein, the vesting schedule applicable to the
Stock Units requires continued service through each applicable vesting date as
a condition to the vesting of the applicable installment of the award and the
rights and benefits under this Agreement.  Service for only a portion of
the vesting period, even if a substantial portion, will not entitle the
Participant to any proportionate vesting or avoid or mitigate a termination of
rights and benefits upon or following a termination of employment or service.

 

5.       Dividend
and Voting Rights.

 

(a)      
Limitations on Rights Associated with Units.  The Participant shall have no rights as a stockholder
of the Corporation, no dividend rights (except as expressly provided in
Section 5(b) hereof with respect to Dividend Equivalents) and no
voting rights with respect to the Stock Units or any shares of Common Stock
issuable in respect of such Stock Units, until shares of Common Stock are
actually issued to and held of record by the Participant.  No adjustments
will be made for dividends or other rights of a holder for which the record
date is prior to the date of issuance of the stock certificate evidencing the
shares.

 

(b)      
Dividend Equivalent Distributions. 
No later than sixty (60) days following each date that the Corporation pays an
ordinary cash dividend on its outstanding Common Stock (if any ordinary cash
dividends are paid), for which the related record date occurs after the Award
Date and prior to the date that this award either vests or terminates
hereunder, the Corporation shall make a cash payment to the Participant equal
to, subject to the tax withholding provisions of Section 11 hereof and
Section 5.5 of the Plan, the amount of the ordinary cash dividend paid by
the Corporation on a single share of Common Stock multiplied by the number of
Stock Units subject to this Agreement outstanding and unpaid as of such record
date (“Dividend Equivalents”).

 

6.       Restrictions
on Transfer. 
Prior to the time the Stock Units are vested and paid, neither the Stock Units
comprising the Award nor any other rights of the Participant under this
Agreement or the Plan may be transferred, except as expressly provided in
Section 1.9 of the Plan.  No specific exception to the general
transfer prohibitions set forth in Section 1.9 of the Plan has been
authorized by the Committee.

 

7.       Timing
and Manner of Payment with Respect to Stock Units. Stock Units subject to this Agreement will be paid in an
equivalent number of shares of Common Stock within 60 days after the vesting of
such Stock Units in accordance with the terms hereof, subject to adjustment as
contemplated by Section 9 and subject to earlier payment pursuant to Section 10. 
The Participant or other person entitled under the Plan to receive the shares
shall deliver to the Corporation any representations or other documents or
assurances required pursuant to Section 5.4 of the Plan.

 

8.       Effect
of Termination of Employment or Change in Control.

 

(a)      
Forfeiture after Certain Events. 
The Participant’s Stock Units shall be extinguished to the extent such Stock
Units have not become vested upon the date the Participant is no longer
employed by the Corporation or one of its Subsidiaries, regardless of the
reason for such termination of employment, whether with or without cause,
voluntarily or involuntarily; provided, however, that if the Participant incurs
a permanent and total disability or dies while employed by the Corporation or a
Subsidiary, or retires with the consent of the Corporation or a Subsidiary from
employment by the Corporation or a Subsidiary, then if the Stock Units subject
to the Award are not then otherwise fully vested the next scheduled vesting
installment of such Stock Units shall become vested upon such termination of
employment.  If the Participant is employed by an entity that is a
Subsidiary and such entity ceases to be a Subsidiary, such event shall be
deemed to be a termination of employment of the Participant unless the
Participant otherwise continues following such event to be employed by the
Corporation or another Subsidiary that continues as such following the
event.  Absence from work caused by military service, authorized sick
leave or other leave approved in writing by the Committee shall not be
considered a termination of employment by the Corporation or a Subsidiary for
purposes of this Section 8.

 

(b)      
Termination of Stock Units. 
If any Stock Units are extinguished hereunder, such unvested, extinguished
Stock Units, without payment of any consideration by the Corporation or any
Subsidiary, shall automatically terminate and be cancelled without any other
action by the Participant, or the Participant’s beneficiary, as the case may
be.

 

(c)      
Acceleration Upon Change in Control. 
Upon the occurrence of (or, as the circumstances may require, immediately prior
to) a Change in Control (as defined below), then any portion of the Stock Units
subject to the Award that have not previously vested or terminated shall
thereupon vest, unless prior to the Change in Control the Committee determines
that benefits under this or other awards will not accelerate upon occurrence of
the Change in Control or determines that only certain or limited benefits under
some or all awards will be accelerated and the extent to which they will be
accelerated, and/or establishes a different time in respect of the Change in
Control for such acceleration.  The Committee may accord the Participant 

 

 

a right to refuse any acceleration
pursuant to this Agreement, in such circumstances as the Committee may
approve.  For purposes of this Agreement, “Change in Control” means any of
the following:  (a) approval by the stockholders of the Corporation
of the dissolution or liquidation of the Corporation; (b) approval by the
stockholders of the Corporation of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more entities that are not
majority-owned subsidiaries of the Corporation, as a result of which 50% or
less of the outstanding voting securities of the surviving or resulting entity
are, or are to be, owned by former stockholders of the Corporation;
(c) approval by the stockholders of the Corporation of the sale or
transfer of substantially all of the Corporation’s business and/or assets to a
person or entity that is not a Subsidiary of the Corporation; or (d) the
occurrence of any of the following: (i) any “person,” alone or together
with all “affiliates” and “associates” of such person, without the prior
approval of the Board, becomes the “beneficial owner” of more than 50% of the
outstanding voting securities of the Corporation (the terms “person,” “affiliates,”
“associates” and “beneficial owner” are used as such terms are used in the Securities
Exchange Act of 1934 and the General Rules and Regulations thereunder);
provided, however, that “Change in Control” shall not be deemed to have
occurred if such “person” is the Corporation, any Subsidiary or any employee
benefit plan or employee stock plan of the Corporation or of any Subsidiary, or
any trust or other entity organized, established or holding shares of such
voting securities by, for, or pursuant to the terms of any such plan; or
(ii) individuals who at the beginning of any period of two consecutive
calendar years constitute a majority of the Board cease for any reason, during
such period, to constitute at least a majority thereof, unless the election, or
the nomination for election by the Corporation’s stockholders, of each new
Board member was approved by a vote of at least two-thirds of the Board members
then still in office who were Board members at the beginning of such period.

 

9.       Adjustments
in Case of Changes in Common Stock. 
The Committee may adjust the number of Stock Units subject to this Agreement as
provided under Section 5.2 of the Plan.  Upon the occurrence of an
Event (as defined below), the Committee shall make adjustments as it deems
appropriate in the number and kind of securities or other consideration that
may become payable with respect to the Award.  If any adjustment shall be
made under Section 5.2 of the Plan or an Event shall occur and the Stock
Unit Award has not been fully vested and paid upon such Event or prior thereto,
the Stock Unit Award may become payable in securities or other consideration
(the “Restricted Property”) rather than in the Common Stock otherwise payable
in respect of the Stock Unit Award.  Such Restricted Property shall become
payable at the times and in such proportions set forth in Section 7 above
or such earlier time as the Committee may authorize pursuant to Section 10
below.  Notwithstanding the foregoing, to the extent that the Restricted
Property includes any cash, the commitment hereunder shall become an unsecured
promise to pay an amount equal to such cash (with earnings attributable thereto
as if such amount had been invested, pursuant to policies established by the
Committee, in interest bearing, FDIC insured (subject to applicable insurance
limits) deposits of a depository institution selected by the Committee) at such
times and in such proportions as the Stock Unit Award becomes payable in
accordance with Section 7 above.  Notwithstanding the foregoing, the
Stock Unit Award and any Common Stock or other securities or property payable
in respect of the Stock Unit Award shall continue to be subject to
proportionate and equitable adjustments (if any) under Section 5.2 of the
Plan consistent with the effect of such events on stockholders generally, as
the Committee determines to be necessary or appropriate, and in the number,
kind and/or character of shares of Common Stock or other securities, property
and/or rights payable in respect of Stock Units granted under the Plan. 
All rights of the Participant hereunder are subject to those adjustments. 
For purposes of this Agreement, “Event” means a liquidation, dissolution,
Change in Control, merger, consolidation, or other combination or
reorganization, or a recapitalization, reclassification, extraordinary dividend
or other distribution (including a split up or a spin off of the Corporation or
any significant Subsidiary), or a sale or other distribution of substantially
all the assets of the Corporation as an entirety.

 

10.     Possible
Early Settlement of Award. 
The Committee retains the right to accelerate the vesting and payment date of
the outstanding and previously unvested Stock Units subject to the Award in
connection with an Event, a Change in Control, or the termination of the
Participant’s employment with the Corporation or one of its Subsidiaries. 
This Section 10 is not intended to prevent vesting of the Award pursuant
to Section 8(c) above or an adjustment to the Award as provided in
the Plan or Section 9 above.

 

11.     Tax
Withholding. 
Upon payment of Dividend Equivalents and/or the distribution of shares of
Common Stock in respect of the Stock Units, the entity within the Company last
employing the Participant shall have the right at its option to
(a) require the Participant (or the Participant’s beneficiary, as the case
may be) to pay or provide for payment in cash of the amount of any taxes which
the Company may be required to withhold with respect to such payment or
distribution or (b) deduct from any amount payable to the Participant the
amount of any taxes which the Company may be required to withhold with respect
to such payment or distribution.  In any case where a tax is required to
be withheld in connection with the delivery of shares of Common Stock under
this Agreement, the Committee may (or may delegate the right to the Company to),
but is not required to, reduce the number of shares to be delivered by (or
otherwise reacquire) the appropriate number of shares valued at their then Fair
Market Value, to satisfy such withholding obligation.

 

12.     Notices.  Any notice to be given under the terms of this
Agreement shall be in writing and addressed to the Corporation at its principal
office located at 101 N. Sepulveda Boulevard, El Segundo, California 90245, to
the attention of the Secretary and to the Participant at the address given
beneath the Participant’s signature hereto, or at such other address as either
party may hereafter designate in writing to the other.

 

 

13.     Plan
and Program. 
The Award and all rights of the Participant with respect thereto are subject
to, and the Participant agrees to be bound by, all of the terms and conditions
of the provisions of the Plan, incorporated herein by reference, to the extent
such provisions are applicable to Awards granted to employees.  The
Participant acknowledges receipt of a copy of the Plan, which is made a part
hereof by this reference, and agrees to be bound by the terms thereof. 
Unless otherwise expressly provided in other Sections of this Agreement,
provisions of the Plan that confer discretionary authority on the Committee do
not (and shall not be deemed to) create any rights in the Participant unless
such rights are expressly set forth herein or are otherwise in the sole
discretion of the Committee so conferred by appropriate action of the Committee
under the Plan after the date hereof.  If there is any conflict or
inconsistency between the terms and conditions of this Agreement and of the
Plan, the terms and conditions of the Plan shall govern.

 

14.     No Service Commitment by Company.  Nothing contained
in this Agreement or the Plan constitutes an employment commitment by the
Corporation or any of its Subsidiaries, affects the Participant’s status as an
employee at-will who is subject to termination without cause, confers upon the
Participant any right to remain employed by the Corporation or any Subsidiary,
interferes in any way with the right of the Corporation or any Subsidiary at
any time to terminate such employment, or affects the right of the Corporation
or any Subsidiary to increase or decrease the Participant’s other compensation.

 

15.     Limitation
on Participant’s Rights.  Participation in the Plan confers
no rights or interests other than as herein provided.  This Agreement
creates only a contractual obligation on the part of the Corporation as to
amounts payable and shall not be construed as creating a trust.  The Plan,
in and of itself, has no assets.  The Participant shall have only the
rights of a general unsecured creditor of the Corporation (or applicable
Subsidiary) with respect to amounts credited and benefits payable, if any, with
respect to the Stock Units, and rights no greater than the right to receive the
Common Stock (subject to adjustments) as a general unsecured creditor with
respect to Stock Units, as and when payable hereunder.

 

IN WITNESS
WHEREOF, the parties have executed
this Agreement as of the date first above written.  By the Participant’s
execution of this Agreement, the Participant agrees to the terms and conditions
hereof and of the Plan.

 

 

	
  INTERNATIONAL
  RECTIFIER

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
  CORPORATION, a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  City, State, Zip
  Code

  

 

 

EXHIBIT A

 

PERFORMANCE
GOALS - VESTING

 

100% of the total number of Stock
Units subject to the Award are eligible to become vested on the “Vesting Date”
(as defined below), based on the achievement of Participant’s “Performance
Goals” (as defined below).  The “Vesting
Date” is defined as the third business day following the filing of the Company’s
financial statements with the Securities and Exchange Commission (“SEC”) for
the Company’s fiscal quarter or fiscal year, as the case may be, following the
achievement of Participant’s “Performance Goals” (but in no event later than
the third business day following the Company’s filing with the SEC of its
Annual Report on Form 10-K for its 2012 fiscal year (“Expiration Date”)),
and in all events subject to the determination of such achievement by the
Committee (or, to the extent consistent with Section 162(m) of the
Code, its delegate).  Any Stock Units
subject to the awards that are not vested on the Expiration Date shall
terminate.

 

If the Performance Goals are
achieved, then the Stock Units subject to the Award and set forth in the table
below as “Applicable Stock Units” for the respective Performance Goals that are
achieved shall vest upon the Vesting Date.

 

Notwithstanding the foregoing, if
none of the Performance Goals is achieved, then no Stock Units subject to the
Award shall become vested.

 

Any Stock Units that are not vested
on the Vesting Date shall terminate and be forfeited.

 

	
  Performance Goals:

  	
   

  	
  Applicable
  Stock Units:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Whether and the extent to which any “Performance
Goal” has been achieved will be determined by the Committee (or, to the extent
consistent with Section 162(m) of the Code, its delegate), and no
vesting shall be deemed to have occurred absent such a determination by the
Committee (or such a delegate as the case may be). The “Performance Goal” set
forth above shall be proportionally adjusted by the Committee (in its sole
discretion) as may be necessary to mitigate the unbudgeted impact of material,
unusual or nonrecurring gains and losses, and to make equitable adjustments for
other extraordinary events not foreseen at the time the “Performance Goal” were
established.  Notwithstanding the
foregoing, any vesting of Stock Units subject to the Award is conditioned upon
the participant being an employee of the Corporation, or one of its directly or
indirectly owned subsidiaries, on the Vesting Date.

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