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exhibit4_1.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          Exhibit
4.1

        

      

    

    
      	
               

            

    

    REGISTRATION
RIGHTS AGREEMENT

     

    THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made
and entered into as of June 17, 2008, by and between Boardwalk Pipeline
Partners, LP, a Delaware limited partnership (the “Partnership”), and
Boardwalk Pipelines Holding Corp., a Delaware corporation (the “Purchaser”).

     

    WHEREAS,
this Agreement is made in connection with the Closing of the issuance and sale
of the Class B Units pursuant to the Class B Unit Purchase Agreement, dated as
of April 24, 2008, by and between the Partnership and the Purchaser (the
“Purchase
Agreement”);

     

    WHEREAS,
the Partnership has agreed to provide the registration and other rights set
forth in this Agreement for the benefit of the Purchaser pursuant to the
Purchase Agreement; and

     

    WHEREAS,
it is a condition to the obligations of the Purchaser and the Partnership under
the Purchase Agreement that this Agreement be executed and
delivered.

     

    NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein and for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by each party hereto, the parties hereby agree as
follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

    Section
1.01                                Definitions.  Capitalized
terms used herein without definition shall have the meanings given to them in
the Purchase Agreement.  The terms set forth below are used herein as
so defined:

     

    “Agreement” has the
meaning given to such term in the introductory paragraph.

     

    “Effectiveness Period”
has the meaning given to such term in Section 2.01 of this
Agreement.

     

    “Holder” means the
record holder of (i) any Registrable Securities and (ii) Class B Units prior to
their conversion into Common Units.

     

    “Losses” has the
meaning given to such term in Section 2.07(a) of this
Agreement.

     

    “Managing Underwriter”
means, with respect to any Underwritten Offering, the book-running lead manager
of such Underwritten Offering.

     

    “Purchase Agreement”
has the meaning given to such term in the Recitals of this
Agreement.

     

    “Purchaser” has the
meaning given to such term in the introductory paragraph of this
Agreement.

     

    “Registrable
Securities” means the Common Units issuable upon conversion of the
Class B Units, which Registrable Securities are subject to the rights provided
herein until such rights terminate pursuant to the provisions
hereof.

     

    “Registration
Expenses” has the meaning given to such term in Section 2.06(b) of this
Agreement.

     

    “Selling Expenses” has
the meaning given to such term in Section 2.06(b) of this
Agreement.

     

    “Selling Holder” means
a Holder who is selling Registrable Securities pursuant to a registration
statement.

     

    “Registration
Statement” has the meaning given to such term in Section 2.01 of this
Agreement.

     

    “Underwritten
Offering” means an offering (including an offering pursuant to a
Registration Statement) in which Common Units are sold to an underwriter on a
firm commitment basis for reoffering to the public or an offering that is a
“bought deal” with one or more investment banks.

     

    Section
1.02                                Registrable
Securities.  Any Registrable Security will cease to be a
Registrable Security (a) at the time a registration statement covering such
Registrable Security has been declared effective by the Commission and such
Registrable Security has been sold or disposed of pursuant to such effective
registration statement; (b) at the time such Registrable Security has been
disposed of pursuant to Rule 144 (or any similar provision then in effect under
the Securities Act); (c) 10 years after the Purchaser ceases to be an Affiliate
of the general partner of the Partnership (including where the General Partner
ceases to be the general partner of the Partnership); (d) if such Registrable
Security is held by the Partnership or one of its subsidiaries; (e) at the time
such Registrable Security has been sold in a private transaction in which the
transferor’s rights under this Agreement are not assigned to the transferee of
such securities; or (f) if such Registrable Security has been sold in a private
transaction in which the transferor’s rights under this Agreement are assigned
to the transferee and such transferee is not an Affiliate of the general partner
of the Partnership, at the time that is the later of two years following (i) the
conversion of the Class B Units into Common Units and (ii) the transfer of such
Registrable Security to such transferee.

     

    ARTICLE
II

     

    REGISTRATION
RIGHTS

     

    Section
2.01                                Demand Registration. Upon
the written request (a “Notice”) of the
Holders of at least 2 million of the then-outstanding Registrable Securities,
subject to adjustment pursuant to Section 3.04, the Partnership shall file with
the Commission, as soon as reasonably practicable following the receipt of the
Notice, a registration statement (each, a “Registration
Statement”) under the Securities Act providing for the resale of the
Registrable Securities (which may, at the option of the Holders giving such
Notice, be a registration statement under the Securities Act that provides for
the resale of the Registrable Securities pursuant to Rule 415 from time to time
by the Holders).  The Partnership shall use its commercially
reasonable efforts to cause such Registration Statement to be declared effective
by the Commission as soon as reasonably practicable after the initial filing of
the Registration Statement.  Any Registration Statement shall provide
for the resale pursuant to any method or combination of methods legally
available to, and requested by, the Holders of any and all Registrable
Securities covered by such Registration Statement.  The Partnership
shall use its commercially reasonable efforts to cause each Registration
Statement filed pursuant to this Section 2.01 to be
continuously effective, supplemented and amended to the extent necessary to
ensure that it is available for the resale of all Registrable Securities by the
Holders until all Registrable Securities covered by such Registration Statement
have ceased to be Registrable Securities (the “Effectiveness
Period”).  Each Registration Statement when effective (and the
documents incorporated therein by reference) shall comply as to form with all
applicable requirements of the Securities Act and shall not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading.  There shall be no limit on the number of Registration
Statements that may be required by the Holders hereunder.

     

    Section
2.02                                Underwritten
Offerings.

     

    (a)           Request for Underwritten
Offering.  In the event that one or more Holders collectively
holding more than 2 million Registrable Securities, subject to adjustment
pursuant to Section 3.04, elects to dispose of Registrable Securities under
a Registration Statement pursuant to an Underwritten Offering, the Partnership
shall, upon request by such Holders, retain underwriters in order to permit such
Holders to effect such sale though an Underwritten Offering.  The
obligation of the Partnership to retain underwriters shall include entering into
an underwriting agreement in customary form with the Managing Underwriter or
Underwriters, which shall include, among other provisions, indemnities to the
effect and to the extent provided in Section 2.07 and
taking all reasonable actions as are requested by the Managing Underwriter or
Underwriters to expedite or facilitate the disposition of such Registrable
Securities.  The Partnership shall, upon request of the Holders, cause
its management to participate in a roadshow or similar marketing effort on
behalf of the Purchaser requested by the Purchaser.

     

    (b)           Limitation on Underwritten
Offerings.  In no event shall the Partnership be required
hereunder to participate in more than two Underwritten Offerings in any 12-month
period.

     

     

    (c)           General
Procedures.  In connection with any Underwritten Offering under this
Agreement, the Partnership shall be entitled to select the Managing Underwriter
or Underwriters.  In connection with an Underwritten Offering contemplated
by this Agreement, each Selling Holder and the Partnership shall be obligated to
enter into an underwriting agreement that contains such representations,
covenants, indemnities and other rights and obligations as are customary in
underwriting agreements for firm commitment offerings of securities.  No
Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such
underwriting agreement and completes and executes all questionnaires, powers of
attorney, indemnities and other documents reasonably required under the terms of
such  underwriting agreement.  Each Selling Holder may, at its option,
require that any or all of the representations and warranties by, and the other
agreements on the part of, the Partnership to and for the benefit of such
underwriters also be made to and for such Selling Holder’s benefit and that any
or all of the conditions precedent to the obligations of such underwriters under
such underwriting agreement also be conditions precedent to such Selling
Holder’s obligations.  No Selling Holder shall be required to make any
representations or warranties to or agreements with the Partnership or the
underwriters other than representations, warranties or agreements regarding such
Selling Holder and its ownership of the securities being registered on its
behalf, its intended method of distribution and any other representation
required by Law.  If any Selling Holder disapproves of the terms of an
underwriting, such Selling Holder may elect to withdraw from the Underwritten
Offering by notice to the Partnership and the Managing Underwriter; provided, however, that such withdrawal
must be made at a time prior to the time of pricing of such Underwritten
Offering.  No such withdrawal shall affect the Partnership’s obligation to
pay Registration Expenses.

    

    Section
2.03                                Delay Rights.  If
the General Partner determines that the Partnership’s compliance with its
obligations under this Article II would be
materially detrimental to the Partnership and its Partners (as defined in the
Partnership Agreement) because such registration would (a) materially interfere
with a significant acquisition, reorganization or other similar transaction
involving the Partnership, (b) require premature disclosure of material
information that the Partnership has a bona fide business purpose for preserving
as confidential or (c) render the Partnership unable to comply with applicable
securities laws, then the Partnership shall have the right to postpone
compliance with its obligations under Section 2.01 and
Section 2.02
for a period of not more than six months, provided, that such right
pursuant to this Section 2.03 may not
be utilized more than once in any 12-month period.

     

    Section
2.04                                Sale
Procedures.  In connection with its obligations under this
Article II, the
Partnership will, as expeditiously as possible:

     

    (a)           prepare
and file with the Commission such amendments and supplements to
each Registration Statement and the prospectus used in connection therewith
as may be necessary to keep each Registration Statement effective for the
Effectiveness Period and as may be necessary to comply with the provisions of
the Securities Act with respect to the disposition of all Registrable Securities
covered by such Registration Statement;

     

    (b)           if
a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from a Registration Statement and the Managing
Underwriter at any time shall notify the Partnership in writing that, in the
sole judgment of such Managing Underwriter, inclusion of detailed information to
be used in such prospectus supplement is of material importance to the success
of the Underwritten Offering of such Registrable Securities, the Partnership
shall use its commercially reasonable efforts to include such information in
such prospectus supplement;

     

    (c)           furnish
to each Selling Holder (i) as far in advance as reasonably practicable before
filing a Registration Statement or any supplement or amendment thereto,
upon request, copies of reasonably complete drafts of all such documents
proposed to be filed (including exhibits and each document incorporated by
reference therein to the extent then required by the rules and regulations of
the Commission), and provide each such Selling Holder the opportunity to object
to any information pertaining to such Selling Holder and its plan of
distribution that is contained therein and make the corrections reasonably
requested by such Selling Holder with respect to such information prior to
filing a Registration Statement or supplement or amendment thereto, and
(ii) such number of copies of such Registration Statement and the
prospectus included therein and any supplements and amendments thereto as such
Persons may reasonably request in order to facilitate the public sale or other
disposition of the Registrable Securities covered by such Registration
Statement;

     

    (d)           if
applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by a Registration Statement under the
securities or blue sky laws of such jurisdictions as the Selling Holders or, in
the case of an Underwritten Offering, the Managing Underwriter, shall reasonably
request; provided,
however, that the Partnership will not be required to qualify generally
to transact business in any jurisdiction where it is not then required to so
qualify or to take any action that would subject it to general service of
process in any such jurisdiction where it is not then so subject;

     

    (e)           promptly
notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i)
the filing of a Registration Statement or any prospectus or prospectus
supplement to be used in connection therewith, or any amendment or supplement
thereto, and, with respect to such Registration Statement or any post-effective
amendment thereto, when the same has become effective; and (ii) any written
comments from the Commission with respect to any filing referred to in clause
(i) and any written request by the Commission for amendments or supplements to
a Registration Statement or any prospectus or prospectus supplement
thereto;

     

    (f)           immediately
notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i)
the happening of any event as a result of which the prospectus or prospectus
supplement contained in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading (in the case of the prospectus contained therein, in the light of
the circumstances under which a statement is made); (ii) the issuance or threat
of issuance by the Commission of any stop order suspending the effectiveness of
a Registration Statement, or the initiation of any proceedings for that
purpose; or (iii) the receipt by the Partnership of any notification with
respect to the suspension of the qualification of any Registrable Securities for
sale under the applicable securities or blue sky laws of any
jurisdiction.  Following the provision of such notice, the Partnership
agrees to, as promptly as practicable, amend or supplement the prospectus or
prospectus supplement or take other appropriate action so that the prospectus or
prospectus supplement does not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in the light of the circumstances then
existing and to take such other reasonable action as is necessary to remove a
stop order, suspension, threat thereof or proceedings related
thereto;

     

    (g)           upon
request and subject to appropriate confidentiality obligations, furnish to each
Selling Holder copies of any and all transmittal letters or other correspondence
with the Commission or any other governmental agency or self-regulatory body or
other body having jurisdiction (including any domestic or foreign securities
exchange) relating to such offering of Registrable Securities;

     

    (h)           in
the case of an Underwritten Offering, furnish upon request, (i) an opinion of
counsel for the Partnership dated the date of the closing under the underwriting
agreement, and (ii) a “cold comfort” letter, dated the pricing date of such
Underwritten Offering (to the extent available) and a letter of like kind
dated the date of the closing under the underwriting agreement, in each case,
signed by the independent public accountants who have certified the
Partnership’s financial statements included or incorporated by reference into
the applicable registration statement, and each of the opinion and the “cold
comfort” letter shall be in customary form and covering substantially the same
matters with respect to such registration statement (and the prospectus and any
prospectus supplement included therein) as have been customarily covered in
opinions of issuer’s counsel and in accountants’ letters delivered to the
underwriters in Underwritten Offerings of securities by the Partnership and such
other matters as such underwriters and Selling Holders may reasonably
request;

     

    (i)           otherwise
use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable, an earnings statement, which earnings statement
shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
promulgated thereunder;

     

    (j)           make
available to the appropriate representatives of the Managing Underwriter and
Selling Holders access to such information and Partnership personnel as is
reasonable and customary to enable such parties to establish a due diligence
defense under the Securities Act;

     

    (k)           cause
all such Registrable Securities registered pursuant to this Agreement to be
listed on each securities exchange or nationally recognized quotation system on
which similar securities issued by the Partnership are then listed;

     

    (l)           use
its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities
as may be necessary by virtue of the business and operations of the Partnership
to enable the Selling Holders to consummate the disposition of such Registrable
Securities;

     

    (m)           provide
a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration
statement; and

     

    (n)           enter
into customary agreements and take such other actions as are reasonably
requested by the Selling Holders or the underwriters, if any, in order to
expedite or facilitate the disposition of such Registrable
Securities.

     

    Each
Selling Holder, upon receipt of notice from the Partnership of the happening of
any event of the kind described in subsection (f) of this Section 2.04, shall forthwith
discontinue disposition of the Registrable Securities until such Selling
Holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by subsection (f) of this Section 2.04 or until it is
advised in writing by the Partnership that the use of the prospectus may be
resumed, and has received copies of any additional or supplemental filings
incorporated by reference in the prospectus, and, if so directed by the
Partnership, such Selling Holder will, or will request the managing underwriter
or underwriters, if any, to deliver to the Partnership (at the Partnership’s
expense) all copies in their possession or control, other than permanent file
copies then in such Selling Holder’s possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such
notice.

     

    Section
2.05                                Cooperation by
Holders.  The Partnership shall have no obligation to include
in a Registration Statement, or in an Underwritten Offering pursuant to Section 2.02(a), Registrable
Securities of a Selling Holder who has failed to timely furnish such information
that, in the opinion of counsel to the Partnership, is reasonably required in
order for the registration statement or prospectus supplement, as applicable, to
comply with the Securities Act.

     

    Section
2.06                                Expenses.

     

    (a)            Expenses.  The
Partnership will pay all reasonable Registration Expenses including in the case
of an Underwritten Offering, regardless of whether any sale is made pursuant to
such Underwritten Offering. Each Selling Holder shall pay all Selling Expenses
in connection with any sale of its Registrable Securities hereunder. In
addition, except as otherwise provided in Section 2.07, the Partnership
shall not be responsible for legal fees incurred by Holders in connection with
the exercise of such Holders’ rights hereunder.

     

    (b)           Certain
Definitions.  “Registration
Expenses” means all expenses incident to the Partnership’s performance
under or compliance with this Agreement to effect the registration of
Registrable Securities on a Registration Statement pursuant to Section 2.01 and/or
in connection with an Underwritten Offering pursuant to Section 2.02(a), and
the disposition of such Registrable Securities, including, without limitation,
all registration, filing, securities exchange listing and New York Stock
Exchange fees, all registration, filing, qualification and other fees and
expenses of complying with securities or blue sky laws, fees of the Financial
Industry Regulatory Authority, fees of transfer agents and registrars, all word
processing, duplicating and printing expenses, any transfer taxes and the fees
and disbursements of counsel and independent public accountants for the
Partnership, including the expenses of any special audits or “cold comfort”
letters required by or incident to such performance and
compliance.  “Selling Expenses”
means all underwriting fees, discounts and selling commissions allocable to the
sale of the Registrable Securities.

     

    Section
2.07                                Indemnification.

     

    (a)           By the
Partnership.  In the event of a registration of any Registrable
Securities under the Securities Act pursuant to this Agreement, the Partnership
will indemnify and hold harmless each Selling Holder thereunder, its directors,
officers, employees and agents, and each underwriter, pursuant to the applicable
underwriting agreement with such underwriter, of Registrable Securities
thereunder and each Person, if any, who controls such Selling Holder within the
meaning of the Securities Act and the Exchange Act, and its directors, officers,
employees or agents, against any losses, claims, damages, expenses or
liabilities (including reasonable attorneys’ fees and expenses) (collectively,
“Losses”),
joint or several, to which such Selling Holder, director, officer, employee,
agent or underwriter or controlling Person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Losses (or
actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact (in the case of any prospectus, in light of the
circumstances under which such statement is made) contained in a Registration
Statement, any preliminary prospectus or prospectus supplement, free writing
prospectus or final prospectus or prospectus supplement contained therein, or
any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of a
prospectus, in light of the circumstances under which they were made) not
misleading, and will reimburse each such Selling Holder, its directors,
officers, employee and agents, each such underwriter and each such controlling
Person for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such Loss or actions or proceedings as such
expenses are incurred; provided, however, that the
Partnership will not be liable in any such case if and to the extent that any
such Loss arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with information
furnished by such Selling Holder, its directors, officers, employees and agents
or any underwriter or such controlling Person in writing specifically for use in
a Registration Statement, or prospectus or any amendment or supplement
thereto, as applicable. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Selling Holder or
any such directors, officers, employees agents or any underwriter or controlling
Person, and shall survive the transfer of such securities by such Selling
Holder.

     

    (b)           By Each Selling
Holder.  Each Selling Holder agrees severally and not jointly
to indemnify and hold harmless the Partnership, its directors, officers,
employees and agents and each Person, if any, who controls the Partnership
within the meaning of the Securities Act or of the Exchange Act, and its
directors, officers, employees and agents, to the same extent as the foregoing
indemnity from the Partnership to the Selling Holders, but only with respect to
information regarding such Selling Holder furnished in writing by or on behalf
of such Selling Holder expressly for inclusion in a Registration Statement or
prospectus supplement relating to the Registrable Securities, or any amendment
or supplement thereto; provided, however, that the
liability of each Selling Holder shall not be greater in amount than the dollar
amount of the proceeds (net of any Selling Expenses) received by such Selling
Holder from the sale of the Registrable Securities giving rise to such
indemnification.

     

    (c)           Notice.  Promptly
after receipt by an indemnified party hereunder of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in
writing thereof, but the omission so to notify the indemnifying party shall not
relieve it from any liability that it may have to any indemnified party other
than under this Section 2.07.  In any
action brought against any indemnified party, it shall notify the indemnifying
party of the commencement thereof.  The indemnifying party shall be
entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel reasonably satisfactory to such
indemnified party and, after notice from the indemnifying party to such
indemnified party of its election so to assume and undertake the defense
thereof, the indemnifying party shall not be liable to such indemnified party
under this Section
2.07 for
any legal expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation and of
liaison with counsel so selected; provided, however, that, (i)
if the indemnifying party has failed to assume the defense or employ counsel
reasonably acceptable to the indemnified party or (ii) if the defendants in any
such action include both the indemnified party and the indemnifying party and
counsel to the indemnified party shall have concluded that there may be
reasonable defenses available to the indemnified party that are different from
or additional to those available to the indemnifying party, or if the interests
of the indemnified party reasonably may be deemed to conflict with the interests
of the indemnifying party, then the indemnified party shall have the right to
select a separate counsel and to assume such legal defense and otherwise to
participate in the defense of such action, with the reasonable expenses and fees
of such separate counsel and other reasonable expenses related to such
participation to be reimbursed by the indemnifying party as
incurred.  Notwithstanding any other provision of this Agreement, no
indemnified party shall settle any action brought against it with respect to
which it is entitled to indemnification hereunder without the consent of the
indemnifying party, unless the settlement thereof imposes no liability or
obligation on, and includes a complete and unconditional release from all
liability of, the indemnifying party.

     

    (d)           Contribution.  If
the indemnification provided for in this Section 2.07 is held by a court
or government agency of competent jurisdiction to be unavailable to any
indemnified party or is insufficient to hold them harmless in respect of any
Losses, then each such indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such Loss in such proportion as is appropriate
to reflect the relative fault of the indemnifying party on the one hand and of
such indemnified party on the other in connection with the statements or
omissions that resulted in such Losses, as well as any other relevant equitable
considerations; provided,
however, that in no event shall such Selling Holder be required to
contribute an aggregate amount in excess of the dollar amount of proceeds (net
of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such indemnification.  The
relative fault of the indemnifying party on the one hand and the indemnified
party on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact has been made by, or
relates to, information supplied by such party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The parties hereto agree that it would
not be just and equitable if contributions pursuant to this paragraph were to be
determined by pro rata allocation or by any other method of allocation that does
not take account of the equitable considerations referred to
herein.  The amount paid by an indemnified party as a result of the
Losses referred to in the first sentence of this paragraph shall be deemed to
include any legal and other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any Loss that is the subject
of this paragraph. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who is not guilty of such fraudulent
misrepresentation.

     

    (e)           Other
Indemnification.  The provisions of this Section 2.07 shall be in
addition to any other rights to indemnification or contribution that an
indemnified party may have pursuant to law, equity, contract or
otherwise.

     

    Section
2.08                                Rule 144
Reporting.  With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the
Registrable Securities to the public without registration, the Partnership
agrees to use its commercially reasonable efforts to:

     

    (a)           Make
and keep public information regarding the Partnership available, as those terms
are understood and defined in Rule 144 under the Securities Act, at all times
from and after the date hereof;

     

    (b)           File
with the Commission in a timely manner all reports and other documents required
of the Partnership under the Exchange Act at all times from and after the date
hereof; and

     

    (c)           So
long as a Holder owns any Registrable Securities, furnish to such Holder
forthwith upon request a copy of the most recent annual or quarterly report of
the Partnership, and such other reports and documents so filed as such Holder
may reasonably request in availing itself of any rule or regulation of the
Commission allowing such Holder to sell any such securities without
registration.

     

    Section
2.09                                Transfer or Assignment of
Registration Rights.  The rights to cause the Partnership to
register Registrable Securities granted to the Purchaser by the Partnership
under this Article
II may be transferred or assigned by the Purchaser to one or more
transferee(s) or assignee(s) of such Registrable Securities (or Class B Units
prior to conversion); provided, however, that (a)
unless such transferee or assignee is an Affiliate of the Purchaser, each such
transferee or assignee holds Registrable Securities (or Class B Units prior to
conversion) representing at least 2 million of the then-outstanding
Registrable Securities or Class B Units, subject to adjustment pursuant to Section 3.04, (b) the
Partnership is given written notice prior to any said transfer or assignment,
stating the name and address of each such transferee and identifying the
securities with respect to which such registration rights are being transferred
or assigned, and (c) each such transferee assumes in writing responsibility for
its portion of the obligations of the Purchaser under this
Agreement.

     

    Section
2.10                                Restrictions on Public Sale
by Holders of Registrable Securities.  Each Holder who, along
with its Affiliates, holds at least 2 million of the then-outstanding
Registrable Securities, subject to adjustment pursuant to Section 3.04, agrees
not to effect any public sale or distribution of the Registrable Securities
during the 30 calendar day period beginning on the date of a prospectus or
prospectus supplement filed with the Commission with respect to the pricing of
an Underwritten Offering, provided that (i) the duration of the foregoing
restrictions shall be no longer than the duration of the shortest restriction
generally imposed by the underwriters on the Partnership or the officers,
directors or any other unitholder of the Partnership on whom a restriction is
imposed and (ii) the restrictions set forth in this Section 2.10 shall
not apply to any Registrable Securities that are included in such Underwritten
Offering by such Holder.

     

    ARTICLE
III

     

    MISCELLANEOUS

     

    Section
3.01                                Communications.  All
notices and other communications provided for or permitted hereunder shall be
made in writing by facsimile, electronic mail, courier service or personal
delivery:

     

    (a)           if
to the Purchaser:

     

    Boardwalk
Pipelines Holding Corp.

    9
Greenway Plaza, Suite 2800

    Houston,
TX 77046

    Attention:  Corporate
Secretary

    Facsimile:
(866) 459-7336

    

    with a
copy to:

    

    Loews
Corporation

    667
Madison Avenue

    New York,
NY 10021

    Attention:  Corporate
Secretary

    Facsimile:
(212) 521-2997

    

    (b)           if
to a transferee of the Purchaser, to such Holder at the address provided
pursuant to Section
2.09;
and

     

    (c)           if
to the Partnership:

     

    Boardwalk
Pipeline Partners, LP

    9
Greenway Plaza, Suite 2800

    Houston,
TX 77046

    Attention:  Corporate
Secretary

     

    Facsimile:
(866) 459-7336

     

    All such
notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent
via facsimile or sent via Internet electronic mail; and when actually received,
if sent by courier service or any other means.

     

    Section
3.02                                Successor and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including
subsequent Holders of Registrable Securities to the extent permitted
herein.

     

    Section
3.03                                Assignment of
Rights.  All or any portion of the rights and obligations of
any Purchaser under this Agreement may be transferred or assigned by such
Purchaser in accordance with Section 2.09
hereof.

     

    Section
3.04                                Recapitalization, Exchanges,
Etc. Affecting the Registrable
Securities.  The provisions of this Agreement shall apply to
the full extent set forth herein with respect to any and all units of the
Partnership or any successor or assign of the Partnership (whether by merger,
consolidation, sale of assets or otherwise) that may be issued in respect of, in
exchange for or in substitution of, the Registrable Securities, and shall be
appropriately adjusted for combinations, unit splits, recapitalizations, pro
rata distributions of units and the like occurring after the date of this
Agreement.

     

    Section
3.06                                Specific
Performance.  Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is
therefore agreed that each such Person, in addition to and without limiting any
other remedy or right it may have, will have the right to an injunction or other
equitable relief in any court of competent jurisdiction, enjoining any such
breach, and enforcing specifically the terms and provisions hereof, and each of
the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction
or other equitable relief.  The existence of this right will not
preclude any such Person from pursuing any other rights and remedies at law or
in equity that such Person may have.

     

    Section
3.07                                Counterparts.  This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which counterparts, when so executed
and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     

    Section
3.08                                Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

     

    Section
3.09                                Governing
Law.  The Laws of the State of New York shall govern this
Agreement.

     

    Section
3.10                                Severability of
Provisions.  Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting or impairing the
validity or enforceability of such provision in any other
jurisdiction.

     

    Section
3.11                                Scope of
Agreement.  The rights granted pursuant to this Agreement are
intended to supplement and not to reduce or replace any rights any Holders may
have under the Partnership Agreement with respect to the Registrable
Securities.  This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. Except as provided in the Partnership
Agreement, there are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein with respect to the rights
granted by the Partnership set forth herein.  Except as provided in
the Partnership Agreement, this Agreement and the Purchase Agreement supersede
all prior agreements and understandings between the parties with respect to such
subject matter.

     

    Section
3.12                                Amendment.  This
Agreement may be amended only by means of a written amendment signed by the
Partnership and the Holders of a majority of the then outstanding Registrable
Securities; provided,
however, that no such amendment shall materially and adversely affect the
rights of any Holder hereunder without the consent of such Holder.

     

    Section
3.13                                No
Presumption.  If any claim is made by a party relating to any
conflict, omission, or ambiguity in this Agreement, no presumption or burden of
proof or persuasion shall be implied by virtue of the fact that this Agreement
was prepared by or at the request of a particular party or its
counsel.

     

    Section
3.14                                Aggregation of Registrable
Securities.  All Registrable Securities held or acquired by
Persons who are Affiliates of one another shall be aggregated together for the
purpose of determining the availability of any rights under this
Agreement.

     

    Section
3.15                                Obligations Limited to
Parties to Agreement.  Each of the Parties hereto covenants,
agrees and acknowledges that no Person other than the Partnership and the
Purchaser shall have any obligation hereunder and that, notwithstanding that one
or more of the Purchaser may be a corporation, partnership or limited liability
company, no recourse under this Agreement or under any documents or instruments
delivered in connection herewith or therewith shall be had against any former,
current or future director, officer, employee, agent, general or limited
partner, manager, member, stockholder or Affiliate of any of the Purchaser or
any former, current or future director, officer, employee, agent, general or
limited partner, manager, member, stockholder or Affiliate of any of the
foregoing, whether by the enforcement of any assessment or by any legal or
equitable proceeding, or by virtue of any applicable Law, it being expressly
agreed and acknowledged that no personal liability whatsoever shall attach to,
be imposed on or otherwise by incurred by any former, current or future
director, officer, employee, agent, general or limited partner, manager, member,
stockholder or Affiliate of any of the Purchaser or any former, current or
future director, officer, employee, agent, general or limited partner, manager,
member, stockholder or Affiliate of any of the foregoing, as such, for any
obligations of the Purchaser under this Agreement or any documents or
instruments delivered in connection herewith or therewith or for any claim based
on, in respect of or by reason of such obligation or its creation, except in
each case for any assignee of a Purchaser hereunder.

     

    Section
3.16                                Interpretation.  Article
and Section references to this Agreement, unless otherwise
specified.  All references to instruments, documents, contracts and
agreements are references to such instruments, documents, contracts and
agreements as the same may be amended, supplemented and otherwise modified from
time to time, unless otherwise specified. The word “including” shall mean
“including but not limited to.” Whenever any determination, consent or approval
is to be made or given by a Purchaser under this Agreement, such action shall be
in such Purchaser’s sole discretion unless otherwise specified.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the
date first above written.

     

    BOARDWALK
PIPELINE PARTNERS, LP

    

    
      	
               
      

            	
              By:  BOARDWALK
      GP, LP

            

    

    
      	
               
      

            	
                (its
      General Partner)

            

    

    

    By:  BOARDWALK
GP, LLC

      (its General
Partner)

    

    

    By:                                                                                                       /s/

    Name:  Jamie
L. Buskill

    Title:    Chief
Financial Officer

    

    

    

    

    BOARDWALK
PIPELINES HOLDING CORP.

    

    

    

    By:                                                                                                       /s/

    Name:  Jamie
L. Buskill

    Title:    Chief
Financial Officer

    

    

    
      
        
           
                             
Signature Page to Registration Rights AgreementFiled by Bowne Pure Compliance

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

SYNTROLEUM CORPORATION

2005
STOCK INCENTIVE PLAN

(Marked in Bold Face Type to Show Amendments Set Forth
in

Proposal 4 as Described in the Proxy Statement)

This Syntroleum
Corporation 2005 Stock Incentive Plan (the “Plan”) was approved by
the shareholders of Syntroleum Corporation, a Delaware corporation (the
“Company”) on April 25, 2005. Since the approval of the Plan
in 2005, the Internal Revenue Service has issued final regulations and other
guidance with respect to the taxation of deferred compensation. This amendment
and restatement reflects the requirements of those regulations and that
guidance. This amendment and restatement also reflects certain other changes in
the Plan. On June 16, 2008, Plan was amended to reflect changes
approved by the stockholders on June 2, 2008.

1. Plan. The
Plan has been adopted by the Company to reward certain corporate officers and
key Employees, certain independent contractors and nonemployee directors of the
Company and its Subsidiaries. The Plan provides for Stock Awards and Awards of
Cash, Options and SARs to Employees. The Plan provides for Stock Awards and
Awards of Options and SARs to Directors. Both Incentive Stock Options
(ISO’s) and Nonqualified Stock Options (NQSO’s) are permitted under
the Plan, but only Employees may receive ISO’s. All Awards of deferred
compensation under the Plan are intended to meet the requirements and
restrictions of the nonqualified deferred compensation rules contained in
Section 409A of the Code, in final regulations under Section 409A and
in other Internal Revenue Service guidance. The Company intends ISO’s
awarded under the Plan to qualify for the favorable tax treatment available
under Section 422 of the Code. The Company also intends certain Awards
under the Plan to qualify as performance-based compensation under the
million-dollar pay cap rules of Section 162(m) of the Code.

2. Objectives.
The purpose of the Plan is to further the interests of the Company, its
Subsidiaries and its shareholders by providing incentives in the form of Awards
to key Employees, independent contractors and directors who can contribute
materially to the success and profitability of the Company and its
Subsidiaries. Such Awards will recognize and reward outstanding performances
and individual contributions and give Participants in the Plan an interest in
the Company parallel to that of the shareholders, thus enhancing the
proprietary and personal interest of such Participants in the Company’s
continued success and progress. This Plan will also enable the Company and its
Subsidiaries to attract and retain such employees, independent contractors and
directors.

3. Definitions. As used herein, the terms set forth below
shall have the following respective meanings:

“Award”
means an Employee Award, a Director Award or an Independent Contractor Award.

“Award
Agreement” means one or more Employee Award Agreements, Director Award
Agreements or Independent Contractor Award Agreements.

“Board”
means the Board of Directors of the Company.

“Cash
Award” means an Award denominated in cash.

“Cause”
shall have the same meaning prescribed in an Employee’s employment
agreement. If there is no such agreement or definition, the term
“Cause” means willful and continued failure to substantially follow
assigned duties, unlawful or willful misconduct that is economically injurious
to the Company, conviction of (or a plea of nolo contendere to) a felony
charge, or drug or alcohol abuse that impairs the Employee’s ability to
perform the essential duties of his position.

“Change of
Control” means, for purposes of the vesting provisions of Section 11:

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(a) Any
“person” (as defined in Sections 13(d) and 14(d) of the Exchange
Act) is or becomes the “beneficial owner” (as defined in
Rule 13d 3 under the Exchange Act), directly or indirectly, of securities
of the Company representing twenty five percent (25%) or more of the combined
voting power of the Company’s then outstanding securities; provided,
however, that this provision shall not apply to securities beneficially owned
directly or indirectly by Robert A. Day (alone or in combination with members
of his immediate family), until Robert A. Day’s direct or indirect
beneficial ownership (alone or in combination with members of his immediately
family) shall extend to securities representing thirty five percent (35%) or
more of the combined voting power of the Company’s then outstanding
securities; or

(b) At any
time during any 12-month period, a majority of the members of the Board is
replaced by directors whose appointment or election is not endorsed by at least
2/3 of the members of the Board before the date of the appointment or election.

(c) Notwithstanding the above definition of Change of
Control, solely for purposes of determining whether a distribution of deferred
compensation is permitted under Section 13(b) and 13(c) of the Plan, no Change
of Control shall be deemed to occur unless there has been a “Change in
ownership”, a “Change in Effective Control” or a
“Change in the Ownership of a Substantial Portion of the Company’s
Assets”, all as defined in Section 409A of the Code or the
regulations or other guidance under that Code section.

(i) A change
in ownership means that any one person, or more than one person acting as a
group, acquires ownership of equity interests in the Company that, together
with equity interests already held by such person or group, constitute more
than 50% of the total fair market value or total voting power of the equity
interests in the Company.

(ii) A change
in effective control means that (i) any one person, or more than one
person acting as a group, acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons)
ownership of stock of the corporation possessing 30% or more of the total
voting power of the stock of the Company or (ii) a majority of the members
of the Board is replaced during any 12-month period by directors whose
appointment or election is not endorsed by at least 2/3 of the members of the
Board before the date of the appointment or election.

(iii) A change
in the ownership of a substantial portion of the Company’s assets means
that any one person, or more than one person acting as a group, acquires (or
has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) assets from the Company that have a
total gross fair market value equal to or more than 40% of the total gross fair
market value of all of the Company’s assets immediately before such
acquisition or acquisitions.

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

“Commission” means the U.S. Securities and Exchange
Commission.

“Committee” means the Nominating and Compensation
Committee of the Board or such other committee of the Board as is designated by
the Board to administer certain portions of the Plan.

“Common
Stock” means the Company’s common stock, par value $.01 per share.

“Company” means Syntroleum Corporation, a Delaware
corporation.

“Director” means an individual serving as a member
of the Board.

“Director
Award” means the grant of a Nonqualified Stock Option or Stock Award to a
Nonemployee Director.

“Director
Award Agreement” means one or more agreements between the Company and a
Participant who is a Nonemployee Director setting forth the terms, conditions
and limitations applicable to a Director Award.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

“Disabled” or “Disability” means that
the Employee is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months or is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than
twelve (12) months, receiving income replacement benefits for a period of
not less than three (3) months under an accident and health plan covering
employees of the Participant’s employer.

“Dividend
Equivalents” means, with respect to Stock Units or Shares of Restricted
Stock that are to be issued at the end of the Restriction Period, an amount
equal to all dividends and other distributions (or the economic equivalent
thereof) that are payable to stockholders of record during the Restriction
Period on a like number of Shares of Common Stock.

“Employee” means an employee of the Company or any
of its Subsidiaries or an individual who has agreed to become an employee of
the Company or any of its Subsidiaries and is expected to become such an
employee within the following six months.

“Employee
Award” means the grant of an Option, SAR, Stock Award or Cash Award,
whether granted singly or in combination to a Participant who is an Employee
pursuant to such applicable terms, conditions and limitations (including
treatment as a Performance Award) as may be established in order to fulfill the
objectives of the Plan.

“Employee
Award Agreement” means one or more agreements between the Company and a
Participant who is an Employee setting forth the terms, conditions and
limitations applicable to an Employee Award.

“ERISA”
means the Employee Retirement Income Security Act, as amended.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

“Executive
Officer” shall have the same meaning as the term “officer” as
defined in Rule 16a-1(f) or any successor regulation under Section 16
of the Exchange Act.

“Fair Market
Value” of a share of Common Stock as of a particular date shall have the
following meanings: (a) If Shares of Common Stock are listed on a national
securities exchange, Fair Market Value shall mean the closing sales price per
share of such Common Stock on the consolidated transaction reporting system for
the principal national securities exchange on which Shares of Common Stock are
listed on that date, or, if there shall have been no such sale so reported on
that date, on the last preceding date on which such a sale was so reported, or,
at the discretion of the Committee, the price prevailing on the exchange at the
time of exercise. (b) If Shares of Common Stock are not so listed but are
quoted by NASDAQ, Fair Market Value shall mean the closing sales price per
share of Common Stock reported on the consolidated transaction reporting system
for NASDAQ, or, if there shall have been no such sale so reported on that date,
on the last preceding date on which such a sale was so reported, or, at the
discretion of the Committee, the price prevailing as quoted by NASDAQ at the
time of exercise. (c) If the Common Stock is not so listed or quoted, Fair
Market Value shall mean the mean between the closing bid and asked price on
that date, or, if there are no quotations available for such date, on the last
preceding date on which such quotations shall be available, as reported by
NASDAQ, or, if not reported by NASDAQ, by the National Quotation Bureau
Incorporated. (d) If Shares of Common Stock are not publicly traded, Fair
Market Value shall mean the most recent value determined by the Committee. In
any event, Fair Market Value shall be determined in such a way to as to comply
with the requirements for determinations of Fair Market Value set out in
Section 409A of the Code.

“Grant
Date” means the date an Award is granted to a Participant pursuant to the
Plan. The Grant Date for a substituted award is the Grant Date of the original
award.

“Grant
Price” means the price at which a Participant may exercise his or her
right to receive cash or Common Stock, as applicable, under the terms of an
Award.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

“Incentive
Stock Option” or “ISO” means an Option that is intended to
comply with the requirements set forth in Section 422 of the Code.

“Independent
Contractor” means a nonemployee consultant or adviser providing services
to the Company or any Subsidiary.

“Independent
Contractor Award” means the grant of a Nonqualified Stock Option, SAR,
Stock Award or Cash Award, whether granted singly or in combination to a
Participant who is an Independent Contractor pursuant to such applicable terms,
conditions and limitations (including treatment as a Performance Award) as may
be established in order to fulfill the objectives of the Plan.

“Independent
Contractor Award Agreement” means one or more agreements between the
Company and a Participant who is an Independent Contractor setting forth the
terms, conditions and limitations applicable to an Independent Contractor Award.

“Independent
Director” shall mean a Director who is deemed independent by the Board
and, in addition, meets all of the then existing requirements to qualify as an
“independent”, “non-employee” and “outside”
director under rules applicable to the Company set forth in Rule 16b-3 or
any successor regulation under Section 16 of the Exchange Act, Treasury
Regulation Section 162-27(c)(3) or any successor regulation under the
“outside director” rule of Section 162(m) of the Code or
established by the Commission, NASDAQ or any other exchange or reporting system
on which the Common Stock is then listed or quoted.

“NASDAQ” means the NASDAQ Stock Market, Inc.

“Nonemployee
Director” means an individual serving as a member of the Board who is not
an Employee of the Company or any of its Subsidiaries.

“Nonqualified
Stock Option” or “NQSO” means an Option that is not an
Incentive Stock Option.

“Option” means a right to purchase a specified
number of Shares of Common Stock at a specified Grant Price. An Option may be
an Incentive Stock Option or a Nonqualified Stock Option.

“Participant” means an Employee, Director or
Independent Contractor to whom an Award has been granted under this Plan.

“Performance
Award” means an award made pursuant to this Plan that is subject to the
attainment of one or more Performance Goals.

“Performance
Goal” means one or more standards established by the Committee or the
Board to determine in whole or in part whether a Performance Award shall be
earned.

“Prior
Plans” means the Syntroleum Corporation 1993 Stock Option and Incentive
Plan, as amended and restated effective January 22, 2001, the Syntroleum
Corporation Stock Option Plan for Outside Directors, as established effective
April 28, 1997 and the SLH Corporation 1997 Stock Incentive Plan.

“Restricted
Stock” means any Shares of Common Stock that are restricted or subject to
forfeiture provisions.

“Restriction
Period” means a period of time beginning as of the Grant Date of an Award
of Restricted Stock or Stock Units and ending as of the date upon which the
Common Stock or Stock Unit subject to such Award is no longer restricted or
subject to forfeiture provisions.

“Retirement” means termination of employment on or
after the attainment of age 65 and three (3) years of service with the
Company or on or after the attainment of such other age and service as the
Committee may determine. With regard to Nonemployee Directors,
“Retirement” means the acceptance by the Board of a
Nonemployee Director’s
resignation from the Board by reason of retirement as determined by the Board
in its discretion.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

“Share”
means a share of the Common Stock, as adjusted in accordance with
Paragraph 18.

“Stock
Appreciation Right” or “SAR” means the right to receive, in
cash or Common Stock, the difference between the Grant Price and the Fair
Market Value of the Common Stock pursuant to the terms of the SAR as determined
by the Committee pursuant to this Plan.

“Stock
Award” means an Award in the form of Shares of Common Stock or Stock
Units, including an award of Restricted Stock.

“Stock Based
Award Limitations” means the per person limitations on Awards, as set
forth in Paragraphs 8(b) and 10(b)

“Stock
Unit” means the right to receive Common Stock or an equivalent value in
cash at a future date or dates pursuant to the terms of the Plan and the
related Award Agreement.

“Subsidiary” means (i) in the case of a
corporation, any corporation of which the Company directly or indirectly owns
Shares representing 50% or more of the combined voting power of the Shares of
all classes or series of capital stock of such corporation which have the right
to vote generally on matters submitted to a vote of the stockholders of such
corporation, (ii) in the case of a partnership or other business entity
not organized as a corporation, any such business entity of which the Company
directly or indirectly owns 50% or more of the voting, capital or profits
interests (whether in the form of partnership interests, membership interests
or otherwise) and (iii) any other corporation, partnership or other entity
that is a “subsidiary” of the Company within the meaning of
Rule 405 promulgated by the Securities and Exchange Commission under the
Securities Act of 1933, as amended.

4. Eligibility.

(a) Employees.
All Employees, including Directors who are also employees, are eligible for
Employee Awards in the discretion of the Committee.

(b) Directors.
Members of the Board eligible for the grant of Director Awards under this Plan
are those who are Nonemployee Directors.

(c) Independent Contractors. All Independent Contractors
are eligible for the grant of Independent Contractor Awards under this Plan.

5. Common
Stock Available for Awards.

(a) As of the
effective date of the Plan, no new awards shall be granted under the Prior
Plans.

(b) Subject to
the provisions of Paragraph 18 hereof, (i) from and after
April 25, 2005, there shall be available for new Awards under this
Plan granted or payable wholly or partly in Common Stock (including Options and
SARs that may be exercised for or settled in Common Stock) the sum of (a)
six million six hundred thousand (6,600,000) Shares, plus (b) seven
million three hundred fifty three thousand eight hundred and eighty-three
Shares (7,353,883), and (ii) there shall be available for the
satisfaction of awards granted under the Prior Plans which are outstanding as
of the Effective Date four million three hundred eleven thousand, five hundred
fourteen (4,311,514) Shares.

(c) Any Shares
subject to Options or SARs or Stock Awards of any kind shall be counted
against the numerical limits of this Section 5 on a one-for-one basis. For
example, an Option to purchase one hundred (100) Shares shall reduce the
remaining numerical limit by one hundred (100) Shares. A Restricted Stock
Award of one hundred (100) Shares shall also reduce the remaining
numerical limit by one hundred (100) Shares.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(d) The number
of Shares of Common Stock that are the subject of Awards under this Plan or the
Prior Plans that are forfeited or terminated, expire unexercised, are settled
in cash in lieu of Common Stock or in a manner such that all or some of the
Shares covered by an Award are not issued to a Participant or are exchanged for
Awards that do not involve Common Stock, shall not count against the number of
Shares of Common Stock available for Awards under this Plan and shall be
available for future Awards.

(e) If the
Grant Price or other purchase price of any Option or other Award granted under
the Plan or the Prior Plans is satisfied by tendering Shares of Common Stock to
the Company, or if the tax withholding obligation resulting from the settlement
of any such Option or other Award is satisfied by tendering or withholding
Shares of Common Stock, the Shares of Common Stock tendered or withheld shall
not be netted against the number of Shares issued under the Plan for purposes
of determining usage of Shares against the maximum number of Shares of Common
Stock available for delivery under the Plan or any sublimit set forth above.

(f) To the
extent allowed by the national securities exchange on which Shares of Common
Stock are listed, and to the extent permitted by Code sections limiting the
number of Shares that may be issued under the Plan, Shares of Common Stock
delivered under the Plan as an Award or in settlement of an Award issued or
made (i) upon the assumption, substitution, conversion or replacement of
outstanding awards under a plan or arrangement of an entity acquired in a
merger or other acquisition or (ii) as a post-transaction grant under such
a plan or arrangement of an acquired entity shall not reduce or be counted
against the maximum number of Shares of Common Stock available for delivery
under the Plan.

(g) The
Committee may from time to time adopt and observe such rules and procedures
concerning the counting of Shares against the Plan maximum or any sublimit as
it may deem appropriate, including rules more restrictive than those set forth
above to the extent necessary to satisfy the requirements of any national stock
exchange on which the Common Stock is listed or any applicable regulatory or
Code requirement. The Board and the appropriate officers of the Company shall
from time to time take whatever actions are necessary to file any required
documents with governmental authorities, stock exchanges and transaction
reporting systems to ensure that Shares of Common Stock are available for
issuance pursuant to Awards.

6. Administration.

(a) This Plan
shall be administered by the Committee except as otherwise provided herein with
regard to Director Awards. The Board shall appoint the Committee from among its
members to serve at the pleasure of the Board. The Board from time to time may
remove members from or add members to the Committee and shall fill all
Committee vacancies. The Committee at all times shall include two or more
Independent Directors.

(b) In
accordance with Paragraph 8 of this Plan, the Committee may decide whether
and to what extent Awards shall be structured to conform with performance-based
requirements of Section 162(m). Unless the Committee is composed entirely
of Independent Directors, all decisions concerning performance-based awards
shall be made by a subcommittee composed entirely of Independent Directors. Any
payment of compensation with respect to an Award that is intended to be
performance-based will be subject to the written certification of the Committee
or the subcommittee, if such a subcommittee is required, that the applicable
performance measures were satisfied. This written certification may include the
approved minutes of the Committee or subcommittee meeting in which the
certification was made.

(c) Unless the
Committee is composed entirely of Independent Directors, all decisions
concerning Awards to Executive Officers shall be made by a subcommittee
composed entirely of Independent Directors.

(d) The
Committee shall hold its meetings at such times and at such places at it shall
deem advisable. A majority of the Committee shall constitute a quorum, and such
majority shall determine its actions. The Committee shall keep minutes of its
proceedings and shall report the same to the Board at the next succeeding Board
meeting.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(e) Subject to
the provisions hereof, the Committee shall have full and exclusive power and
authority to administer this Plan and to take all actions that are specifically
contemplated under this Plan or are necessary or
appropriate in connection with the
administration of the Plan. The Committee shall also have full and exclusive
power to interpret this Plan and to adopt such rules, regulations and
guidelines for carrying out this Plan as it may deem necessary or proper, all
of which powers shall be exercised in the best interests of the Company and in
keeping with the objectives of this Plan.

(f) Subject to
the requirements and restrictions of Section 409A of the Code governing
nonqualified deferred compensation, the Committee may reduce any restrictions
applicable to an Award or waive any restriction or other provision of this
Plan. The Committee may not amend or modify an Award in any manner unless the
modification or amendment is either (i) not adverse to the Participant to
whom the Award was granted or (ii) consented to by such Participant. The
Committee may not extend the Grant Date or reduce the exercise price of an
Option or SAR granted under the Plan or take any other action that would be in
violation of the requirements of Section 409A of the Code.

(g) Notwithstanding anything in this Plan to the contrary,
Options and SARs issued under the Plan will not be repriced or canceled and
replaced with Options or SARs with a decreased Grant Price except as expressly
provided by the adjustment provisions of Paragraph 18 and as permitted by
Section 409A of the Code.

(h) The
Committee may correct any defect or supply any omission or reconcile any
inconsistency in this Plan or in any Award in the manner and to the extent the
Committee deems necessary or desirable to further the Plan purposes. Any
decision of the Committee in the interpretation and administration of this Plan
shall lie within its sole and absolute discretion and shall be final,
conclusive and binding on all parties concerned.

(i) No member
of the Committee or officer of the Company to whom the Committee has delegated
authority in accordance with the provisions of Paragraph 7 of this Plan
shall be liable for anything done or omitted to be done by him or her, by any
member of the Committee or by any officer of the Company in connection with the
performance of any duties under this Plan, except for his or her own willful
misconduct or as expressly provided by statute.

7. Delegation
of Authority. Following the authorization of a pool of cash or Shares of Common
Stock to be available for Awards, the Board or Committee may authorize the
Chief Executive Officer and/or another Executive Officer of the Company, if and
to the extent permitted by applicable law, rule or regulation, or a
subcommittee consisting solely of members of the Board, to grant individual
Employee Awards from such pool pursuant to such conditions or limitations as
the Board or the Committee may establish. The Board or Committee may also
delegate to the Chief Executive Officer and to other Executive Officers of the
Company its administrative duties under this Plan (excluding its granting
authority) pursuant to such conditions or limitations as the Committee may
establish. The Board or Committee may engage or authorize the engagement of a
third party administrator to carry out administrative functions under the Plan.

8. Employee
Awards and Independent Contractor Awards.

(a) The
Committee (or other committee to whom such authority is delegated under
Paragraph 7) shall determine the type or types of Employee Awards to be
made under this Plan and shall designate from time to time the Employees who
are to be the recipients of such Awards. Each Employee Award may, in the
discretion of the Committee, be embodied in an Employee Award Agreement, which
shall contain such terms, conditions and limitations as shall be determined by
the Committee in its sole discretion and, if required by the Committee, shall
be signed by the Participant to whom the Employee Award is granted and signed
for and on behalf of the Company. Employee Awards may consist of those listed
in this Paragraph 8(a). To the extent permitted by Section 409A of
the Code, Employee Awards may be granted singly, in combination with, in
replacement of, or as alternatives to, grants or rights under this Plan, the
Prior Plans or any other employee plan of the Company or any of its
Subsidiaries, including the plan of any acquired entity. In particular, grants
of Restricted Stock may be made hereunder in exchange for the cancellation of
Options previously granted under this Plan or the Prior Plans. An Employee
Award may provide for the grant or issuance of additional, replacement or
alternative Employee Awards upon the occurrence of specified events. In no
event shall an Award be replaced with another Award that would result in a
deferral of compensation beyond that provided under the Award that is being
replaced unless the requirements of Section 409A of the Code are met. All
or part of an Employee Award may be subject to conditions established by the
Committee, which may include, but are not limited to, continuous service with
the Company and its Subsidiaries,
achievement of specific business
objectives, increases in specified indices, attainment of specified growth
rates and other comparable measurements of performance. Upon the termination of
employment by a Participant who is an Employee, any unexercised, deferred,
unvested or unpaid Employee Awards shall be treated as set forth in the
applicable Employee Award Agreement or as otherwise specified by the Committee
or this Plan.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(i) Option. An
Employee Award may be in the form of an Option, which may be an Incentive Stock
Option or a Nonqualified Stock Option. The Grant Price of an Option shall be
not less than the Fair Market Value of the Common Stock subject to such Option
on the Grant Date. The term of the Option shall extend no more than ten
(10) years after the Grant Date. Options may not include provisions that
“reload” the Option upon exercise. Subject to the foregoing
provisions, the terms, conditions and limitations applicable to any Options
awarded to Employees pursuant to this Plan, including the Grant Price, the term
of the Options, the number of Shares subject to the Option and the date or
dates upon which they become exercisable, shall be determined by the Committee.

(ii) ISO
Rules. In addition to the rules for options stated above, with respect to an
optionee who owns more than ten percent of the voting power of all classes of
stock of either the Company or any “parent” or
“subsidiary” of the Company as defined in Section 424 of the
Code, the per Share Grant Price of an ISO shall be not less than 110% of the
Fair Market Value of the Common Stock subject to the Option on the Grant Date,
and the term of the ISO shall extend no longer than five (5) years after
the Grant Date. ISO’s may be granted to Employees only, and for purposes
of this paragraph, Employee shall mean an individual who is employed at the
time of the grant of the ISO. The ISO must be granted within ten
(10) years of the Plan’s adoption. The ISO by its terms cannot be
transferred other than by will or the laws of descent and distribution and may
be exercised only by the Employee during his lifetime (or the Employee’s
legal representative if the Employee is disabled). The aggregate Fair Market
Value of Stock with respect to which ISO’s may be exercised for the first
time by any individual during any calendar year may not exceed $100,000 or such
higher or lower limit as Section 422 of the Code may require.

(iii) Expiration Date of Options. The expiration date of
the period during which an Option can be exercised shall be the earliest to
occur of (a) ten (10) years after the grant of the Option or
(b) five (5) years after the grant of any Incentive Stock Option if
the Employee is a more-than-ten percent shareholder under Section 422 of
the Code, (c) thirty (30) days after the date of the Employee’s
termination of employment for Cause or voluntary termination before Retirement,
(d) the one-year anniversary of the Employee’s termination of
employment due to death, Disability, Retirement or termination of employment
for any other reason, (e) with respect to an ISO, three months after the
Employee ceases to be an Employee. The Committee shall have the authority and
discretion to set a shorter or longer expiration date or to shorten or extend
an existing expiration date only to the extent permitted by Section 409A
of the Code and only so long as the extended expiration date is not later than
the five (5) or ten-year periods described above for Incentive Stock
Options and does not otherwise cause the Option to lose its intended status for
tax, securities law, or other purposes.

(iv) Stock
Appreciation Rights or SARs. An Employee Award may be in the form of a Stock
Appreciation Right or SAR. The terms, conditions and limitations applicable to
any SAR granted pursuant to the Plan shall be determined by the Committee and
shall in any event conform to the requirements of Section 409A of the
Code. In particular, compensation payable pursuant to the SAR cannot be greater
than the excess of the Fair Market Value of the Stock on the date the SAR is
exercised over the SAR Grant Price, and the SAR Grant Price can never be less
than the Fair Market Value of the underlying stock on the date of the SAR grant.

(v) Stock
Award. An Employee Award may be in the form of a Stock Award. The terms,
conditions and limitations applicable to any Stock Awards granted pursuant to
this Plan shall be determined by the Committee.

(vi) Cash
Award. An Employee Award may be in the form of a Cash Award. The terms,
conditions and limitations applicable to any Cash Awards granted pursuant to
this Plan shall be determined by the Committee.

(vii) Performance Award. Without limiting the type or
number of Employee Awards that may be made under the other provisions of this
Plan, an Employee Award may be in the form of a Performance Award. The terms,
conditions and limitations applicable to any Performance Awards granted to
Participants pursuant to this Plan shall be determined by the Committee or a
subcommittee of Independent Directors if such a subcommittee is required in
order for the Award to qualify as performance based. The Committee or
subcommittee shall set
Performance Goals in its discretion
which, depending on the extent to which they are met, will determine the value
and/or amount of Performance Awards that will be paid out to the Participant.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(A) Nonqualified Performance Awards. Performance Awards
granted to Employees that are not intended to qualify as qualified performance
based compensation under Section 162(m) of the Code shall be based on
achievement of such goals and be subject to such terms, conditions and
restrictions as the Committee or its delegate shall determine.

(B) Qualified
Performance Awards. Performance Awards granted to Employees under the Plan that
are intended to qualify as qualified performance based compensation under
Section 162(m) of the Code shall be paid, vested or otherwise deliverable
solely on account of the attainment of one or more pre-established, objective
Performance Goals established by the Committee prior to the earlier to occur of
(x) 90 days after the commencement of the period of service to which
the Performance Goal relates and (y) the lapse of 25% of the period of
service (as scheduled in good faith at the time the goal is established), and
in any event while the outcome is substantially uncertain. A Performance Goal
is objective if a third party having knowledge of the relevant facts could
determine whether the goal is met. Such a Performance Goal may be based on one
or more business criteria that apply to the Employee, one or more business
units or divisions of the Company or the applicable sector, or the Company as a
whole, and if so desired by the Committee, by comparison with a peer group of
companies. A Performance Goal may include one or more of the following:
Increased revenue; Net income measures (including but not limited to income
after capital costs and income before or after taxes); Stock price measures
(including but not limited to growth measures and total shareholder return);
Market share; Earnings per share (actual or targeted growth); Earnings before
interest, taxes, depreciation, and amortization (“EBITDA”);
Economic value added (“EVA®”); Cash flow measures (including
but not limited to recurring cash flow, net cash flow and net cash flow before
financing activities); Return measures (including but not limited to return on
equity, return on average assets, return on capital, risk-adjusted return on
capital, return on investors’ capital and return on average equity);
Operating measures (including operating income, funds from operations, cash
from operations, after-tax operating income; sales volumes, production volumes
and production efficiency); Expense measures (including but not limited to
finding and development costs, overhead cost and general and administrative
expense); Margins; Shareholder value; Total shareholder return; Proceeds from
dispositions; Total market value; Corporate values measures (including ethics
compliance, environmental, and safety); Securing government contracts; and
Technology development benchmarks. Unless otherwise stated, such a Performance
Goal need not be based upon an increase or positive result under a particular
business criterion and could include, for example, maintaining the status quo
or limiting economic losses (measured, in each case, by reference to specific
business criteria). In interpreting Plan provisions applicable to Qualified
Performance Awards, it is the intent of the Plan to conform to the standards of
Section 162(m) of the Code and Treasury Regulation §1.162-27(e)(2)(i), as
to grants to those Employees whose compensation is, or is likely to be, subject
to Section 162(m) of the Code, and the Committee in establishing such goals and
interpreting the Plan shall be guided by such provisions. Prior to the payment
of any compensation based on the achievement of Performance Goals for Qualified
Performance Awards, the Committee must certify in writing that applicable
Performance Goals and any of the material terms thereof were, in fact,
satisfied. Subject to the foregoing provisions, the terms, conditions and
limitations applicable to any Qualified Performance Awards made pursuant to
this Plan shall be determined by the Committee.

(b) Notwithstanding anything to the contrary contained in
this Plan, the following limitations shall apply to any Employee Awards made
hereunder:

(i) No
Participant may be granted, during any calendar year, Employee Awards
consisting of Options or SARs, or any combination of Options and SARs,
(including Options or SARs that are granted as Performance Awards) that are
exercisable for, or the value of which is measured by, more than one million
(1,000,000) Shares of Common Stock;

(ii) No
Participant may be granted, during any calendar year, Stock Awards (including
Stock Awards that are granted as Performance Awards) covering or relating to
more than one million (1,000,000) Shares of Common Stock (the limitation set
forth in this clause (ii), together with the limitations set forth in clause
(i) above and clauses (i) and (ii) of Paragraph 10(b) below, being
hereinafter collectively referred to as the “Stock Based Awards
Limitations”).

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(iii) No
Participant may be granted Employee Awards consisting of cash (including Cash
Awards that are granted as Performance Awards) in respect of any calendar year
having a value determined on the Grant Date in excess of four million dollars
($4,000,000).

(c) At the
discretion of the Committee, Awards may be settled at any time by a cash
payment in an amount that the Committee determines in its sole discretion is
equal to the fair market value of the Award; provided however, that no such
settlement will be made if it causes a deferred compensation amount to be
accelerated contrary to the requirements of Section 409A of the Code.

9. Independent
Contractor Awards. The Committee shall have the sole responsibility and
authority to determine the type or types of Independent Contractor Awards to be
made under this Plan and the terms, conditions and limitations applicable to
such Awards, but the Independent Contractor Awards shall be subject to the same
individual limitations set forth above for Employee Awards. In addition, an
Independent Contractor Award may be in the form of a SAR or Nonqualified Stock
Option but not an Incentive Stock Option. The Grant Price of an Option or SAR
shall be not less than the Fair Market Value of the Common Stock subject to
such Option or SAR on the Grant Date. In no event shall the term of the Option
or SAR extend more than ten (10) years after the Grant Date. Options or
SARs may not include provisions that “reload” the option or SAR
upon exercise. Subject to the foregoing provisions, and subject to the
requirements of Section 409A of the Code, the terms, conditions and
limitations applicable to any Options or SARs awarded to Participants pursuant
to this Paragraph 9, including the Grant Price, the term of the Options or
SARs, the number of Shares subject to the Options or SARs and the date or dates
upon which they become exercisable, shall be determined by the Committee.

10. Director
Awards.

(a) The Board,
after consulting with such compensation, legal and accounting experts as it
deems appropriate, may grant Director Awards to the Nonemployee Directors of
the Company from time to time in accordance with this Paragraph 10. Director
Awards may consist of those awards listed in this Paragraph 10 and may be
granted singly or in combination. Each Director Award may, in the discretion of
the Board, be embodied in a Director Award Agreement, which shall contain such
terms, conditions and limitations as shall be determined to be appropriate by
the Board and, if required by the Board, shall be signed by the Participant to
whom the Director Award is granted and signed for and on behalf of the Company.

(i) Options
and SARs. A Director Award may be in the form of a SAR or Nonqualified Stock
Option but not an Incentive Stock Option. The Grant Price of an Option or SAR
shall be not less than the Fair Market Value of the Common Stock subject to
such Option or SAR on the Grant Date. In no event shall the term of the Option
or SAR extend more than ten (10) years after the Grant Date. Options or
SARs may not include provisions that “reload” the option or SAR
upon exercise. Subject to the foregoing provisions, the terms, conditions and
limitations applicable to any Options or SARs awarded to Participants pursuant
to this Paragraph 10, including the Grant Price, the term of the Options
or SARs, the number of Shares subject to the Options or SARs and the date or
dates upon which they become exercisable, shall be determined by the Board.

(ii) Stock
Awards. A Director Award may be in the form of a Stock Award. Any terms,
conditions and limitations applicable to any Stock Awards granted to a
Nonemployee Director pursuant to this Plan, including but not limited to rights
to Dividend Equivalents, shall be determined by the Board.

(b) Notwithstanding anything to the contrary contained in
this Plan the following limitations shall apply to any Director Awards made
hereunder:

(i) No
Nonemployee Director may be granted during any calendar year Director Awards
consisting of Options or SARs, or any combination of Options and SARs, that are
exercisable for, or the value of which is measured by, more than fifty thousand
(50,000) Shares of Common Stock.

(ii) No
Nonemployee Director may be granted, during any calendar year, Director Awards
consisting of Stock Awards covering or relating to more than fifty thousand
(50,000) Shares of Common Stock.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(c) At the
discretion of the Board, Director Awards may be settled at any time by a cash
payment in an amount that the Board shall determine in its sole discretion is
equal to the fair market value of such Director Awards, provided however, that
no cash settlement will be allowed if it would cause a deferred compensation
amount to be accelerated contrary to the requirements of Section 409A of
the Code.

(d) Each
Nonemployee Director shall have the option to elect to receive Shares of Common
Stock, as prescribed by the Board, in lieu of all or part of the compensation
otherwise payable by the Company to such Nonemployee Director during each
calendar quarter. As determined by the Board, to the extent a Nonemployee
Director has elected in writing to receive stock in lieu of compensation
otherwise payable to the Nonemployee Director, such Nonemployee Director will
receive Shares of Common Stock on the last day of the calendar quarter for
which the compensation was earned.

(e) The Board
shall have all the same powers, duties, authority and discretion to administer
the Plan with respect to Director Awards as the Committee retains with respect
to Employee Awards and Independent Contractor Awards.

11. Change of
Control. Notwithstanding any other provisions of the Plan, unless otherwise
expressly provided in the applicable Award Agreement, in the event of a Change
of Control during a Participant’s employment (or service as a Nonemployee
Director or Independent Contractor) with the Company or one of its
Subsidiaries, each Award granted under this Plan to the Participant shall
become immediately vested and fully exercisable (regardless of the otherwise
applicable vesting or exercise schedules or performance goals provided for
under the Award Agreement).

12. Non-United
States Participants. The Committee may grant awards to persons outside the
United States under such terms and conditions as may, in the judgment of the
Committee, be necessary or advisable to comply with the laws of the applicable
foreign jurisdictions and, to that end, may establish sub-plans, modified
option exercise procedures and other terms and procedures. Notwithstanding the
above, the Committee may not take any actions hereunder, and no Awards shall be
granted, that would violate the Exchange Act, Section 409A or any other
provision of the Code, any securities law, any governing statute, or any other
applicable law.

13. Payment of
Awards.

(a) General.
Payment made to a Participant pursuant to an Award may be made in the form of
cash or Common Stock, or a combination thereof, and may include such
restrictions as the Committee shall determine, including, in the case of Common
Stock, restrictions on transfer and forfeiture provisions. If such payment is
made in the form of Restricted Stock, the Committee shall specify whether the
underlying Shares are to be issued at the beginning or end of the Restriction
Period. In the event that Shares of Restricted Stock are to be issued at the
beginning of the Restriction Period, the certificates evidencing such Shares
shall contain appropriate legends and restrictions that describe the terms and
conditions of the restrictions applicable thereto. In the event that Shares of
Restricted Stock are to be issued at the end of the Restricted Period, the
right to receive such Shares shall be evidenced by book entry registration or
in such other manner as the Committee may determine.

(b) Deferral.
Subject to the requirements and restrictions of Section 409A of the Code
and any related Treasury Regulations or other guidance dealing with
non-qualified deferred compensation, and with the approval of the Committee,
amounts payable in respect of Awards may be deferred and paid either in the
form of installments or as a lump-sum payment. The Committee may permit
selected Participants to elect to defer payments of some or all types of Awards
or any other compensation otherwise payable by the Company in accordance with
procedures or a plan established by the Committee or the Board and subject to
Section 409A of the Code and may provide that such deferred compensation
may be payable in Shares of Common Stock or cash. Any deferred payment pursuant
to an Award, whether elected by the Participant or specified by the Award
Agreement or the terms of the Award or by the Committee, may be forfeited if
and to the extent that the Award Agreement or the terms of the Award so provide.

(c) Deferral
and Section 409A. All awards of deferred compensation under this Plan are
intended to comply with Section 409A of the Code, and the Plan will be
administered accordingly. In particular, and subject to regulations and other
guidance under Section 409A of the Code that may impose different
requirements:

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

(i) Compensation for services performed during a taxable
year may be deferred at the Participant’s election only if the election
is made not later than the close of the preceding taxable year or at such other
time as provided in Section 409A or in regulations or other guidance under
that Code section. In the first year in which a Participant becomes eligible to
participate in the Plan, however, the deferral election may be made with
respect to services to be performed subsequent to the election within thirty
(30) days after the date the Participant becomes eligible to participate
in the Plan. In the case of any performance-based compensation performed over a
period of at least twelve (12) months, the election may be made no later
than six (6) months before the end of the period unless a later election
date is allowed pursuant to IRS guidance.

(ii) Compensation deferred within the meaning of
Section 409A of the Code under this Plan may not be distributed earlier
than the Participant’s Separation From Service, the date the Participant
becomes Disabled, the date of the Participant’s death, a time (or fixed
schedule) specified at the date the compensation is deferred, the occurrence of
a Change of Control of the Company or the occurrence of an Unforeseen
Emergency. Amounts distributed in the event of an Unforeseen Emergency may not
exceed the amount specified in Section 409A of the Code and the
regulations and other guidance under that Code section. For purposes of this
distribution provision, the terms “Separation From Service”,
“Disability”, “Change of Control”, “Unforeseen
Emergency” and other relevant terms shall have the meanings given to them
in Section 409A of the Code and in regulations and other guidance under
that Code section. In the case of a key employee within the meaning of
Section 409A of the Code, distributions on account of Separation From
Service may not be made before the date that is six (6) months after the
date of Separation From Service (or the date of death if earlier). No
acceleration of the time or schedule of any payment is permitted under the Plan
except as provided in regulations or other guidance under Section 409A of
the Code.

(iii) Any
election to delay the payment or change the form of payment may not take effect
until at least twelve (12) months after the date on which the election is
made. In the case of an election to delay a payment scheduled to occur upon the
Participant’s Separation From Service, at a specified time or times or
upon a Change of Control of the Company, the first payment with respect to
which the election is made must be deferred for at least five (5) years
from the date that the first payment would otherwise be made. Any election to
defer a payment scheduled to occur at a specified time or times may not be made
less than twelve (12) months prior to the first scheduled payment.

(iv) The
Committee or Board, as the case may be, may require that deferred amounts of
less than ten thousand dollars ($10,000) be paid in a lump sum upon an
employee’s Separation From Service. The Committee or Board, as they case
may be, may also permit distributions of deferred amounts sufficient to pay the
employment taxes currently due on Awards of deferred compensation.

(v) The
Committee or Board, as the case may be, may provide that amounts deferred under
this Plan may be distributed upon any termination and liquidation of the Plan
following a liquidation of the Company or another event described in
Section 1.409A-3(j)(4)(ix) of the final regulations under
Section 409A of the Code.

(d) Dividends,
Earnings and Interest. Rights to dividends or Dividend Equivalents may be
extended to and made part of any Stock Award, subject to such terms, conditions
and restrictions as the Committee may establish. The Committee may also
establish rules and procedures for the crediting of interest or other earnings
on deferred cash payments and Dividend Equivalents for Stock Awards.

(e) Substitution of Awards. Subject to Paragraphs 16 and
18 and the requirements of Section 409A of the Code, at the discretion of
the Committee, a Participant who is an Employee or Independent Contractor may
be offered an election to substitute an Employee Award or Independent
Contractor Award for another Employee Award or Independent Contractor Award or
Employee Awards or Independent Contractor Awards of the same or different type.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

14. Option
Exercise.

(a) The Grant
Price shall be paid in full at the time of exercise in cash or, if permitted by
the Committee and by Section 409A of the Code, and elected by the
optionee, the optionee may purchase such Shares by means of tendering Common
Stock or surrendering another Award, including Restricted Stock, valued at Fair
Market Value on the date of
exercise, or any combination thereof. The Committee shall determine acceptable
methods for Participants who are Employees or Independent Contractors to tender
Common Stock or other Employee Awards or Independent Contractor Awards;
provided that any Common Stock that is or was the subject of an Employee Award
or Independent Contractor Award may be so tendered only if it has been held by
the Participant for six months. The Committee may provide for procedures to
permit the exercise or purchase of such Awards by use of the proceeds to be
received from the sale of Common Stock issuable pursuant to an Award. Unless
otherwise provided in the applicable Award Agreement, in the event Shares of
Restricted Stock are tendered as consideration for the exercise of an Option, a
number of the Shares issued upon the exercise of the Option, equal to the
number of Shares of Restricted Stock used as consideration therefor, shall be
subject to the same restrictions as the Restricted Stock so submitted as well
as any additional restrictions that may be imposed by the Committee. The
Committee may adopt additional rules and procedures regarding the exercise of
Options from time to time, provided that such rules and procedures are not
inconsistent with the provisions of this Paragraph 14. In no event, shall
the Committee allow a form of payment that would result in a deferral of
compensation beyond the exercise or disposition of the option itself.

(b) Unless the
Committee specifies otherwise in the Award Agreement, a Participant may
exercise an Option for less than the full number of Shares of Common Stock
subject to the Option. Such exercise shall not be for less than one hundred
(100) Shares or the total remaining Shares subject to the Option. The
Committee may specify other Option terms, including restrictions on the
frequency of exercise and periods during which the Options may be exercised.

(c) An
optionee desiring to pay the Grant Price of an Option by tendering Common Stock
using the method of attestation may, subject to any such conditions and in
compliance with any such procedures as the Committee may adopt, do so by
attesting to the ownership of Common Stock of the requisite value, in which
case the Company shall issue or otherwise deliver to the optionee upon such
exercise a number of Shares of Common Stock subject to the Option equal to the
result obtained by dividing (a) the excess of the aggregate Fair Market
Value of the Shares of Common Stock subject to the Option for which the Option
(or portion thereof) is being exercised over the Grant Price payable in respect
of such exercise by (b) the Fair Market Value per share of Common Stock
subject to the Option, and the optionee may retain the Shares of Common Stock
the ownership of which is attested.

15. Taxes. The
Company or its designated third party administrator shall have the right to
deduct applicable taxes from any Employee Award payment and withhold, at the
time of delivery or vesting of cash or Shares of Common Stock under this Plan,
an appropriate amount of cash or number of Shares of Common Stock or a
combination thereof for payment of taxes or other amounts required by law or to
take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for withholding of such taxes. The Committee may also
permit withholding to be satisfied by the transfer to the Company of Shares of
Common Stock theretofore owned by the holder of the Employee Award with respect
to which withholding is required. If Shares of Common Stock are used to satisfy
tax withholding, such Shares shall be valued based on the Fair Market Value
when the tax withholding is required to be made.

16. Amendment,
Modification, Suspension or Termination of the Plan. The Board may amend,
modify, suspend or terminate this Plan for the purpose of meeting or addressing
any changes in legal requirements or for any other purpose permitted by law,
except that (i) no amendment or alteration that would adversely affect the
rights of any Participant under any Award previously granted to such
Participant shall be made without the consent of such Participant and (ii) no
amendment or alteration shall be effective prior to its approval by the
shareholders of the Company to the extent such approval is required by
applicable legal requirements or the requirements of the securities exchange on
which the Company’s stock is listed. Notwithstanding anything herein to
the contrary, unless the shareholders approve, and except as permitted by
Section 409A of the Code, Options and SARs issued under the Plan will not
be repriced, replaced, or regranted through cancellation or by decreasing the
exercise price of a previously granted Option or SARs except as expressly
provided in Paragraph 8(a) and the adjustment provisions of Paragraph 18.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

17. Assignability. Unless otherwise determined by the
Committee and provided in the Award Agreement or the terms of the Award, no
Award or any other benefit under this Plan shall be assignable or otherwise
transferable except by will, by beneficiary designation or the laws of descent
and distribution. In the event that a
beneficiary designation conflicts
with an assignment by will, the beneficiary designation will prevail. The
Committee may prescribe and include in applicable Award Agreements or the terms
of the Award other restrictions on transfer. Any attempted assignment of an
Award or any other benefit under this Plan in violation of this
Paragraph 17 shall be null and void.

18. Adjustments.

(a) The
existence of outstanding Awards shall not affect in any manner the right or
power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the capital
stock of the Company or its business or any merger or consolidation of the
Company, or any issue of bonds, debentures, preferred or prior preference stock
(whether or not such issue is prior to, on a parity with or junior to the
existing Common Stock) or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding of any kind, whether or not of a character similar
to that of the acts or proceedings enumerated above.

(b) In the
event of any subdivision or combination of outstanding Shares of Common Stock,
declaration of a dividend payable in Shares of Common Stock or other stock
split, then (i) the number of Shares of Common Stock reserved under this
Plan and the number of Shares of Common Stock available for issuance pursuant
to specific types of Awards as described in Paragraph 5, (ii) the
number of Shares of Common Stock covered by outstanding Awards, (iii) the
Grant Price or other price in respect of such Awards, (iv) the appropriate
Fair Market Value and other price determinations for such Awards, and
(v) the Stock Based Awards Limitations shall each be proportionately
adjusted by the Board as appropriate to reflect such transaction. In the event
of any other recapitalization or capital reorganization of the Company, any
consolidation or merger of the Company with another corporation or entity, the
adoption by the Company of any plan of exchange affecting Common Stock or any
distribution to holders of Common Stock of securities or property (including
cash dividends that the Board determines are not in the ordinary course of
business but excluding normal cash dividends or dividends payable in Common
Stock), the Board shall make appropriate adjustments to (i) the number of
Shares of Common Stock reserved under this Plan and the number of Shares of
Common Stock available for issuance pursuant to specific types of Awards as
described in Paragraph 5, (ii) the number of Shares of Common Stock
covered by Awards, (iii) the Grant Price or other price in respect of such
Awards, (iv) the appropriate Fair Market Value and other price
determinations for such Awards, and (v) the Stock Based Awards Limitations
to reflect such transaction; provided that such adjustments shall only be such
as are necessary to maintain the proportionate interest of the holders of the
Awards and preserve, without increasing, the value of such Awards. Subject to
the requirements and restrictions of Section 409A of the Code, in the
event of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation, the Board shall be authorized
(x) to assume under the Plan previously issued compensatory awards, or to
substitute new Awards for previously issued compensatory awards, including
Awards, as part of such adjustment; (y) to cancel Awards that are Options
and give the Participants who are the holders of such Awards notice and
opportunity to exercise for 30 days prior to such cancellation; or
(z) to cancel any such Awards and to deliver to the Participants cash in
an amount that the Board shall determine in its sole discretion is equal to the
fair market value of such Awards on the date of such event, which in the case
of Options shall be the excess of the Fair Market Value of Common Stock on such
date over the exercise or strike price of such Award. The Company shall not,
however, cash out or replace any Award in a manner that would cause deferred
compensation to be accelerated in violation of Section 409A of the Code.

19. Securities
Law Restrictions. No Common Stock or other form of payment shall be issued with
respect to any Award unless the Company shall be satisfied based on the advice
of its counsel that such issuance will be in compliance with applicable federal
and state securities laws. Certificates evidencing Shares of Common Stock
delivered under this Plan (to the extent that such Shares are so evidenced) may
be subject to such stop transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission, any securities exchange or transaction
reporting system upon which the Common Stock is then listed or to which it is
admitted for quotation and any applicable federal or state securities law. The
Committee may cause a legend or legends to be placed upon such certificates (if
any) to make appropriate reference to such restrictions.

  

  

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Ex. 10.1

20. Unfunded
Plan. This Plan shall be unfunded for purposes of ERISA or any other statute,
regulation or rule. Although bookkeeping accounts may be established with
respect to Participants under this Plan,
 any such accounts shall be used
merely as a bookkeeping convenience, including bookkeeping accounts established
by a third party administrator retained by the Company to administer the Plan.
The Company shall not be required to segregate any assets for purposes of this
Plan or Awards hereunder, nor shall the Company, the Board or the Committee be
deemed to be a trustee of any benefit to be granted under this Plan. Any
liability or obligation of the Company to any Participant with respect to an
Award under this Plan shall be based solely upon any contractual obligations
that may be created by this Plan and any Award Agreement or the terms of the
Award, and no such liability or obligation of the Company shall be deemed to be
secured by any pledge or other encumbrance on any property of the Company.
Neither the Company nor the Board nor the Committee shall be required to give
any security or bond for the performance of any obligation that may be created
by this Plan.

21. Right to
Employment. Nothing in the Plan or an Award Agreement shall interfere with or
limit in any way the right of the Company to terminate any Participant’s
employment or other service relationship at any time, or confer upon any
Participant any right to continue in the capacity in which he or she is
employed or otherwise serves the Company.

22. Successors. All obligations of the Company under the
Plan with respect to Awards granted hereunder shall be binding on any successor
to the Company, whether the existence of such successor is the result of a
direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.

23. Governing
Law. This Plan and all determinations made and actions taken pursuant hereto,
to the extent not otherwise governed by mandatory provisions of the Code or the
securities laws of the United States, shall be governed by and construed in
accordance with the laws of the State of Delaware.

24. Effectiveness and Term. The Plan was submitted to the
shareholders of the Company for approval at the annual meeting of the
shareholders held in 2005 and, as approved, was effective on the approval date.
No Award shall be made under the Plan more than ten years after January 1,
2005 (or more than ten years after any later approval by shareholders of any
amendment to this Plan). Notwithstanding anything herein to the contrary, any
and all outstanding awards granted under the Prior Plans shall continue to be
outstanding and shall be subject to the appropriate terms of the Prior Plan
under which such award was granted and as are in effect as of the date this
Plan is effective.

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