Document:

Management Incentive Compensation Plan

 EXHIBIT 10.1 
  
 2004 
 GLOBAL POWER EQUIPMENT GROUP INC. 
 MANAGEMENT INCENTIVE COMPENSATION PLAN 
  
 TABLE OF CONTENTS 
  

					
	Section 1	  	Purpose	  	2
			
	Section 2	  	Definitions	  	2
			
	Section 3	  	Eligibility	  	3
			
	Section 4	  	Determination of Amount of Bonus	  	4
			
	Section 5	  	Payment of Bonus	  	4
			
	Section 6	  	Administrative Provisions	  	5

  

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 GLOBAL POWER EQUIPMENT GROUP INC. – PLAN YEAR 2004 
 MANAGEMENT INCENTIVE COMPENSATION PLAN 
  
 SECTION 1 - PURPOSE 
  
 The Global Power Equipment Group Inc. (“Company”) Management Incentive Compensation Plan is designed to motivate and to reward key personnel who contribute
materially to the economic profit of the Company and thereby to aid the Company in attracting, retaining and motivating personnel. The Company recognizes the important contribution of its employees to its success and adopts this Plan to reward such
contributions and sustain the incentive for making such contributions in the future. 
  
 SECTION 2 – DEFINITIONS 
  
 As used
herein: 
  

	1.	“Base Salary” shall mean the aggregate amount of wages and/or salary (but excluding any bonus, disability pay or severance pay) earned by a Participant during the
applicable Plan Year in which the Participant was eligible to participate in the Plan, determined in accordance with Section 3 hereof. 

  

	2.	“Board of Directors” shall mean the Board of Directors of the Company. 

  

	3.	“Bonus” shall mean the amount of incentive compensation earned by a Participant, determined in accordance with Section 4 hereof. 

  

	4.	“Cause” shall mean fraud, dishonesty, and acts of gross negligence in the course of employment, material misrepresentation to stockholders and directors of the Company or
the commission of a felony. 

  

	5.	“Committee” shall mean the Compensation Committee appointed in accordance with Paragraph 1 of Section 6 of the Plan. 

  

	6.	“Company” shall mean Global Power Equipment Group Inc. 

  

	7.	“Disability” shall have the same meaning as such term or similar term as defined in the disability insurance policy maintained by the Company which covers the Participant
at the time of the alleged disability, or in the event the Company maintains more than one disability insurance policy which covers the Participant at such time, the meaning in the disability policy most recently acquired by the Company. If the
Company maintains no such disability insurance policy at such time, “Disability” shall mean a mental or physical impairment or illness, which, in the judgment of the President of the Company, totally and presumably permanently prevents the
individual from fully completing his normal job responsibilities for the Company. 

  

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	8.	“Participant” shall mean any officer or employee of the Company designated by the Compensation Committee of the Board of Directors as eligible to participate in the Plan.

  

	9.	“Plan” shall mean this Global Power Equipment Group Inc. Management Incentive Compensation Plan, as in effect from time to time. 

  

	10.	“Year” shall mean the calendar year. 

  

	11.	“EBITDA” shall mean Earnings Before Interest, Taxes, Depreciation and Amortization. 

  
 SECTION 3 - ELIGIBILITY 
  

	1.	Individuals eligible to receive a Bonus pursuant to this Plan shall be such employees of the Company as the Compensation Committee of the Board of Directors shall at any time
designate. The Compensation Committee of the Board of Directors shall also designate the classification level at which each eligible individual shall participate. In deciding who shall be eligible for participation in the Plan and at which
classification level an individual shall participate, the Compensation Committee of the Board of Directors shall be guided by the principle that the Participants shall be employees whose area of responsibility provides them with a substantial
opportunity to significantly affect economic profit of the company or provides them with an opportunity to significantly influence the long-term growth of the financial performance of the Company. 

  

	2.	If a Participant’s employment with the Company terminates prior to the end of a Year as a result of termination by the Company for Cause, the Participant shall forfeit any
Bonus to which he may become entitled according to the Plan for the then current Year. If a Participant’s employment with the Company terminates prior to the end of a Year as a result of voluntary termination by the Participant, the Participant
shall forfeit any Bonus to which he may become entitled according to the Plan for the then current Year. If a Participant’s employment with the Company is terminated prior to the end of a Year by the Company without cause or if a
Participant’s employment with the Company terminates prior to the end of a Year as a result of his Death or Disability, the Participant shall be entitled to receive a Bonus for the Year based upon the Base Salary earned by the Participant prior
to termination. If a Participant’s employment with the Company is terminated prior to the end of a Year as a result of his Retirement, the Participant shall be entitled to receive a Bonus for the Year based upon the Base Salary earned by the
Participant prior to his Retirement. 

  

	3.	Any issues of eligibility not covered by the above will be determined by the Compensation Committee of the Board of Directors at the time they arise. 

  

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 SECTION 4 - DETERMINATION OF AMOUNT OF BONUS 
  
 The determination of the amount of bonus will be based on: 
  

	1.	The individual participation level is outlined in your notification of participation in the Global Power Equipment Group Inc. Management Incentive Compensation (MIC) plan. The
participation level is based upon a target Bonus, with the actual Bonus ranging from 0% (minimum) to 200% of target (maximum). For instance, if your participation level is defined as 10% then the Bonus range is from 0% to 20%.

  

	2.	Actual Economic profit will be calculated at the end of the year as follows: Economic profit (EP) = Earnings Before Interest & Taxes (EBIT) – (Capital Employed x 20%). See
Attachment A for further details. 

  

	3.	Economic Profit will be calculated for each individual based upon performance for the specific entity as outlined in the Participant notification letter. For example, this will be
calculated on Global Power Equipment Group Inc., Braden Manufacturing, LLC and CFI, or Deltak, LLC (as noted in your participation letter). 

  

	4.	Actual Economic Profit will be compared to the Target Economic Profit as shown on the Award schedule, resulting in a payout ranging from 0% (minimum) to 200% of target (maximum),
subject to the limitations set forth in Section 4 (5), below. See Attachment B for further details. 

  

	5.	The final calculated Bonus would then be subject to adjustment due to a company-wide Global Power limitation, whereby total Global Power (and subsidiaries) Bonuses (including MIC,
Sales Bonuses, Profit Sharing and other Bonuses) cannot exceed 8% of Global Power Equipment Group Inc. EBITDA. Each Participant’s payment amount will be reduced, if necessary, by an appropriate amount, proportionate or prorata with/to the total
adjustment made to overall bonus compensation, to comply with this limitation. 

  
 SECTION 5 - PAYMENT OF BONUS 
  

	1.	The Company shall pay the Bonus to the Participant as soon as practicable after its calculation, but in no event later than March 15 of the Year following the Year to which it
relates. The Bonus Payment shall be paid by payroll check (with applicable withholdings deducted). 

  

	2.	If a Participant’s employment with the Company terminates prior to the end of a Year, his eligibility to receive the Bonus shall be determined in accordance with Section 3
hereof. 

  

	3.	If a Participant is not living at the time his Bonus is payable to him in accordance with this Plan, any Bonus which would have been payable to him shall be paid to the beneficiary,
if any, designated in writing by the Participant, or if none, to his estate. A Participant may at any time revoke or change his beneficiary by filing written notice of such revocation or change with the Company. 

  

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 SECTION 6 - ADMINISTRATIVE PROVISIONS 
  

	1.	The Compensation Committee of the Board of Directors shall direct the administration of the Plan. 

  

	2.	The Compensation Committee of the Board of Directors shall have full power to amend, modify, rescind, construe and interpret the Plan. Any action taken or decision made by the
Compensation Committee of the Board of Directors arising out of, or in connection with the construction, administration, interpretation or effect of the Plan or of any rules and regulations adopted thereunder shall be conclusive and binding upon all
Participants and all persons claiming under or through a Participant. 

  

	3.	The Compensation Committee of the Board of Directors may rely upon any information supplied to it by any officer of the Company or by the Company’s independent public
accountants and may rely on the advice of such accountants or of counsel in connection with the administration of the Plan and shall be fully protected in relying upon such information or advice. 

  

	4.	No employee, officer of the Company or member of the Compensation Committee of the Board of Directors shall have any liability for any decision or action if made or done in good
faith and the Company shall indemnify each director, employee, and officer of the Company acting in good faith pursuant to this Plan against any loss or expense arising therefrom. 

  

	5.	Nothing in this Plan shall be construed or interpreted as giving any employee the right to be retained by the Company or impair the right of the Company to control its employees or
to terminate the services of any employee at any time. 

  

	6.	Delaware State law shall determine and govern the validity and construction of this Plan in all respects. If any term or condition herein conflicts with applicable law, the validity
of the remaining provisions shall not be affected thereby. 

  

	7.	This Plan shall (a) be effective as of January 1, 2004; (b) replace and supersede any and all prior versions hereof or other incentive bonus plans of the Company for employees of
the Company; and (c) continue in effect until terminated by the Compensation Committee of the Board of Directors or in accordance with its terms. 

  

	8.	This Plan shall not create any rights of future participation herein. 

  

	9.	No person eligible to receive any payment shall have any rights to pledge, assign or otherwise dispose of all or any portion of such payments, either directly or by operation of
law, including but not by way of limitation, execution, levy, garnishment, attachment, pledge or bankruptcy. 

  

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	10.	The Company shall have the right to deduct for the payment of a Bonus hereunder any federal, state or local taxes required by law to be withheld with respect to such distribution.

  
 IN WITNESS WHEREOF, the Company has caused this Global Power
Equipment Group Inc. Management Incentive Compensation Plan to be signed by its duly authorized Vice President of Finance & CFO, effective January 1, 2004. 
  

			
	GLOBAL POWER EQUIPMENT GROUP INC.
		
	By	 	 /s/ James P. Wilson

	 	 	James P. Wilson
	 	 	V. P. Finance & CFO
		
	Date	 	April 13, 2004

  

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 Attachment A 
  
 Economic Profit (EP) Definition 
  
 Economic Profit (EP) is a metric which encourages value-creating business decisions: 
  

	•	 	EP is equal to Earnings Before Interest & Taxes (EBIT) minus a charge for the use of capital. The charge is assessed at a rate of 20% of capital per year. The calculation is
shown below. 

  

	
	 Economic
 Profit

	 EBIT –
  
 Capital x
  
 20% =
  
 Economic
Profit

  

	•	 	EP requires that a reasonable return (20%) pre-tax) be earned on new investments. Otherwise, it simply encourages maximization of profit every year. 

  

 - 7 -Amended And Restated 2001 Director Stock Option Plan

 Exhibit 10.13 
  
 THE McCLATCHY COMPANY 
  
 2001 DIRECTOR OPTION PLAN 
  
 (Amended and Restated as of December 4, 2002) 
  
 1. Purposes of the Plan. The purposes of this 2001 Director Option Plan are to attract and retain the best available personnel for service as
Non-employee Directors (as defined herein) of the Company, to provide additional incentive to the Non-employee Directors of the Company to serve as Directors, and to encourage their continued service on the Board. 
  
 All Options granted hereunder shall be nonstatutory stock options.

  
 2. Definitions. As used herein, the following
definitions shall apply: 
  
 (a) “Board” means
the Board of Directors of the Company. 
  
 (b) “Change of
Control” means (i) the sale, lease, conveyance or other disposition of all or substantially all of the Company’s assets to any “person” (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as
amended), entity or group of persons acting in concert; (ii) any “person” or group of persons (other than any member of the McClatchy/Maloney family or any entity or group controlled by one or more members of the McClatchy/Maloney family)
becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting
securities; (iii) a merger or consolidation of the Company with any other corporation, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or its controlling entity) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity (or
its controlling entity) outstanding immediately after such merger or consolidation; (iv) a contest for the election or removal of members of the Board that results in the removal from the Board of at least 50% of the incumbent members of the Board,
or (v) the occurrence of a “Rule 13e-3 transaction” as such term is defined in Rule 13e-3 promulgated under the Securities Exchange Act of 1934, as amended, or any similar successor rule. 
  
 (c) “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 (d) “Common Stock” means the Class A
Common Stock of the Company. 
  
 (e) “Company”
means The McClatchy Company., a Delaware corporation. 
  

 (f) “Director” means a member of the Board. 
  
 (g) “Disability” means that an Optionee is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than six (6) months or which can be expected to result in
death. 
  
 (h) “Employee” means any person,
including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. The payment of a Director’s fee by the Company shall not be sufficient in and of itself to constitute “employment” by the Company.

  
 (i) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
  
 (j) “Fair Market
Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination as reported in The Wall
Street Journal or such other source as the Administrator deems reliable; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
  
 (iii) In the absence of an established market for the Common Stock, the Fair
Market Value thereof shall be determined in good faith by the Board. 
  
 (k) “Non-employee Director” means a Director who is not an Employee. 
  
 (l) “Option” means a stock option granted pursuant to the Plan. 
  
 (m) “Optioned Stock” means the Common Stock subject to an Option. 
  
 (n) “Optionee” means a Director who holds an Option. 
  
 (o) “Parent” means a “parent corporation,” whether
now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (p) “Plan” means this 2001 Director Option Plan. 
  

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 (q) “Share” means a share of the Common Stock, as adjusted in accordance with Section 10
of the Plan. 
  
 (r) “Subsidiary” means a
“subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Internal Revenue Code of 1986. 
  
 3. Stock Subject to the Plan. Subject to the provisions of Section 10 of the Plan, the maximum aggregate number of Shares which may be optioned and
sold under the Plan is 500,000 Shares (the “Pool”). The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan shall not be returned to the Plan and shall not become available for future distribution under the Plan.

  
 4. Administration and Grants of Options under the Plan.

  
 (a) Procedure for Grants. All grants of Options to
Non-employee Directors under this Plan shall be automatic and nondiscretionary and shall be made strictly in accordance with the following provisions; provided, however, that the Board shall have the authority to adjust the size of the Annual Option
(defined below) as it deems appropriate in light of all surrounding circumstances: 
  
 (i) No person shall have any discretion to select which Non-employee Directors shall be granted Options. 
  
 (ii) Each Non-employee Director shall be automatically granted an Option to purchase 3,000 Shares (an “Annual Option”) on the date of the
Company’s annual stockholder meeting each year. 
  
 (iii)
Notwithstanding the provisions of subsections (ii) and (iii) hereof, any exercise of an Option granted before the Company has obtained shareholder approval of the Plan in accordance with Section 16 hereof shall be conditioned upon obtaining such
shareholder approval of the Plan in accordance with Section 16 hereof. 
  
 (iv) The terms of an Annual Option granted hereunder shall be as follows: 
  
 (A) the term of the Annual Option shall be ten (10) years. 
  
 (B) the Annual Option shall be exercisable only while the Non-employee Director remains a Director of the Company, except as set forth in Sections 8 and 10 hereof. 
  
 (C) the exercise price per Share shall be 100% of the Fair Market Value per
Share on the date of grant of the Annual Option. 
  

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 (D) subject to Section 10 hereof, the Annual Option shall become exercisable as to 25% of the Shares
subject to the Annual Option on the March 1 following its date of grant and 25% of the Shares subject to the Annual Option shall vest on each March 1 thereafter, provided that the Optionee continues to serve as a Director on such dates. 

 
 (v) Notwithstanding the foregoing vesting provisions, if an
Optionee’s service as a Director terminates due to death, Disability or retirement after attaining the age of 65, then 100% of the shares subject to each outstanding Option granted hereunder to such Optionee shall immediately vest and become
exercisable. 
  
 (vi) In the event that any Option granted under
the Plan would cause the number of Shares subject to outstanding Options plus the number of Shares previously purchased under Options to exceed the Pool, then the remaining Shares available for Option grant shall be granted under Options to the
Non-employee Directors on a pro rata basis. No further grants shall be made until such time, if any, as additional Shares become available for grant under the Plan through action of the Board or the shareholders to increase the number of Shares
which may be issued under the Plan or through cancellation or expiration of Options previously granted hereunder. 
  
 5. Eligibility. Options may be granted only to Non-employee Directors. All Options shall be automatically granted in accordance with the terms set
forth in Section 4 hereof. 
  
 The Plan shall not confer upon any
Optionee any right with respect to continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way with any rights which the Director or the Company may have to terminate the Director’s relationship
with the Company at any time. 
  
 6. Term of Plan. The Plan
shall become effective upon the earlier to occur of its adoption by the Board or its approval by the shareholders of the Company as described in Section 16 of the Plan. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 11 of the Plan. 
  
 7. Form of
Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall consist of (i) cash, (ii) check, (iii) other shares which (x) in the case of Shares acquired upon exercise
of an option, have been owned by the Optionee for more than twelve (12) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be
exercised, (iv) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or (v) any combination of the foregoing methods of payment. 
  
 8. Exercise of Option. 
  
 (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable at such times as are set forth in Section 4 hereof; provided, however, that no Options shall be exercisable until shareholder approval of the Plan in accordance with Section 16 hereof has been obtained.

  

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 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full
payment may consist of any consideration and method of payment allowable under Section 7 of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the
stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. A share certificate for the number of
Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except
as provided in Section 10 of the Plan. 
  
 Exercise of an Option
in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Continuous Status as a Director. Subject to Section
10 hereof, in the event an Optionee’s status as a Director terminates (other than upon the Optionee’s death, Disability or retirement after the age of 65), the Optionee may exercise his or her Option, but only within ninety (90) days
following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was
not entitled to exercise an Option on the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 (c) Retirement. In the event Optionee’s status as a Director
terminates as a result of Optionee retiring after attaining the age of 65, the Optionee may exercise his or her Option, but only within three years following the date of such termination, and only to the extent that the Optionee was entitled to
exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of termination, or if he or she does not exercise
such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 (d) Disability of Optionee. In the event Optionee’s status as a Director terminates as a result of Disability, the Optionee may exercise his
or her Option, but only within three years following the date of such termination, and only to the extent that the Optionee was entitled to exercise it on the date of such termination (but in no event later than the expiration of its ten (10) year
term). To the extent that the Optionee was not entitled to exercise an Option on the date of termination, or if he or she does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall
terminate. 
  

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 (e) Death of Optionee. In the event of an Optionee’s death, the executors or administrators
of the Optionee’s estate or a person who acquired the right to exercise the Option by bequest, inheritance or beneficiary designation may exercise the Option, but only within three years following the date of death, and only to the extent that
the Optionee was entitled to exercise it on the date of death (but in no event later than the expiration of its ten (10) year term). To the extent that the Optionee was not entitled to exercise an Option on the date of death, and to the extent that
the Optionee’s estate or a person who acquired the right to exercise such Option does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
  
 In the event that an Optionee dies after the termination of his or her
status as a Director as provided in Sections 8(b), (c) and (d), but before the expiration of his or her Option(s), all or part of such Option(s) may be exercised (prior to the expiration) by the executors or administrators of the Optionee’s
estate or by any person who has acquired such Option(s) directly from him or her by bequest, inheritance or beneficiary designation under the Plan, but only to the extent that such Option(s) had become exercisable before his or her service as a
Director terminated or became exercisable as a result of the termination. 
  
 9. Non-Transferability of Options. The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee. 
  
 10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
  
 (a) Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding
Option, the number of Shares which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per Share
covered by each such outstanding Option, and the number of Shares issuable pursuant to the automatic grant provisions of Section 4 hereof shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a
stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option. 
  
 (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, to the extent that an Option has not been previously exercised, it shall terminate immediately prior to the consummation of such proposed action. 
  

 -6- 

 (c) Change of Control. In the event of a Change of Control, all outstanding and unexpired Options
shall become fully vested and exercisable, including as to Shares for which it would not otherwise be exercisable. 
  
 Outstanding Options may be assumed or equivalent options may be substituted by the successor corporation or a Parent or Subsidiary thereof (the
“Successor Corporation”) or they may be settled for cash. If an Option is assumed or substituted for, the Option or equivalent option shall continue to be exercisable as provided in Section 4 hereof for so long as the Optionee serves as a
Director or a director of the Successor Corporation. Following such assumption or substitution, if the Optionee’s status as a Director or director of the Successor Corporation, as applicable, is terminated, the Option or option shall remain
exercisable in accordance with Sections 8(b) through (e) above. If the Successor Corporation does not assume an outstanding Option or substitute for it an equivalent option or the Option is not settled for cash, the Board shall notify the Optionee
at least thirty (30) days from the date of such notice, and upon the expiration of such period the Option shall terminate. 
  
 For the purposes of this Section 10(c), an Option shall be considered assumed if, following the Change of Control, the Option confers the right to
purchase or receive, for each Share of Optioned Stock immediately prior to the Change of Control, the consideration (whether stock, cash, or other securities or property) received in the Change of Control by holders of Common Stock for each Share
held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares). If such consideration received in the Change of Control
is not solely common stock of the Successor Corporation or its Parent, the Board may, with the consent of the Successor Corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock, to
be solely common stock of the Successor Corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change of Control. 
  
 11. Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend, or discontinue the Plan, but no
amendment, alteration, suspension, or discontinuation shall be made which would impair the rights of any Optionee under any grant theretofore made, without his or her consent. In addition, to the extent necessary and desirable to comply with any
applicable law, regulation or stock exchange rule, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. 
  
 (b) Effect of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options
already granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated. 
  
 12. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date determined in accordance with Section 4 hereof.

  

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 13. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an
Option unless the exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the
rules and regulations promulgated thereunder, state securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such
compliance. 
  
 As a condition to the exercise of an Option, the
Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares, if, in the
opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law. 
  
 Inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  
 14. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 15. Option Agreement. Options shall be evidenced by written option agreements in such form as the Board shall approve. 
  
 16. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is adopted. Such shareholder approval shall be obtained in the degree and manner required under applicable state and federal law and any stock exchange rules. 

 

 -8-

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