Document:

exv10w4

Exhibit 10.4

EXECUTION VERSION

SUPPORT AGREEMENT

     This SUPPORT AGREEMENT, dated as of March 13, 2011 (this “Agreement”), is by and among
Kirby Corporation, a Nevada corporation (“Parent”), KSP Holding Sub, LLC, a Delaware
limited liability company and direct wholly owned subsidiary of Parent (“Holding Sub”), KSP
LP Sub, LLC, a Delaware limited liability company and direct wholly owned subsidiary of Parent
(“LP Sub”), KSP Merger Sub, LLC, a Delaware limited liability company wholly owned by
Holding Sub and LP Sub (“Merger Sub,” and together with Parent, Holding Sub and LP Sub, the
“Parent Parties”), and EW Holding Corp., a Delaware corporation (the “Covenanting
Unitholder”).

RECITALS:

     WHEREAS, concurrently with the execution of this Agreement, the Parent Parties and K-Sea
Transportation Partners L.P. (among others) are entering into an Agreement and Plan of Merger,
dated as of the date hereof (as amended, supplemented, restated or otherwise modified from time to
time, the “Merger Agreement”), pursuant to which, among other things, Merger Sub will merge
with and into the Company (the “Merger”), with the Company as the surviving entity, and
each Company Equity Interest (as defined in the Merger Agreement) will be converted into the right
to receive the merger consideration specified therein; and

     WHEREAS, as of the date hereof, the Covenanting Unitholder is the record owner in the
aggregate of, and has the right to vote and dispose of, the number of Preferred Units and/or
Common Units set forth opposite such Covenanting Unitholder’s name on Schedule I hereto;
and

     WHEREAS, as a material inducement to the Parent Parties to enter into the Merger Agreement,
the Parent Parties have required that the Covenanting Unitholder agree, and the Covenanting
Unitholder has agreed, to enter into this agreement and abide by the covenants and obligations with
respect to the Covered Units (as hereinafter defined) set forth herein.

     NOW THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements herein contained, and intending to be legally bound hereby, the parties
hereto agree as follows:

ARTICLE 1

GENERAL

     Section 1.1 Defined Terms. The following capitalized terms, as used in this
Agreement, shall have the meanings set forth below. Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed thereto in the Merger Agreement.

     “Covered Units” means, with respect to the Covenanting Unitholder, the Covenanting
Unitholder’s Existing Units, together with any Units or other Company Equity Interests with the
right to consent to, vote upon or approve any matter with regard to the Company that the
Covenanting Unitholder acquires, either beneficially or of record, on or after the date hereof,
including any Company Equity Interests received as dividends (including pay-in-kind dividends) or
as a result of a split, reverse split, combination, merger, consolidation, reorganization,
reclassification, recapitalization or similar transaction.

     “Existing Units” means the Units or other Company Equity Interests owned, either
beneficially or of record, by the Covenanting Unitholder on the date of this Agreement.

 

 

     “Permitted Transfer” means a Transfer by the Covenanting Unitholder (or an Affiliate
thereof) to an Affiliate of such Covenanting Unitholder, provided that such transferee Affiliate
agrees in writing to assume all of such transferring Covenanting Unitholder’s obligations hereunder
in respect of the Covered Units subject to such Transfer and to be bound by, and comply with, the
terms of this Agreement, with respect to the Covered Units subject to such Transfer, to the same
extent as such Covenanting Unitholder is bound hereunder.

     “Transfer” means, directly or indirectly, to sell, transfer, assign or similarly
dispose of (by merger (including by conversion into securities or other consideration), by
tendering into any tender or exchange offer, by testamentary disposition, by operation of law or
otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other
arrangement or understanding with respect to the voting of or sale, transfer, conversion,
assignment or similar disposition of (by merger, by tendering into any tender or exchange offer, by
testamentary disposition, by operation of law or otherwise).

ARTICLE 2

VOTING

     Section 2.1 Agreement to Vote Covered Units. The Covenanting Unitholder hereby
irrevocably and unconditionally agrees that during the term of this Agreement, at any meeting of
the Unitholders, however called, including any adjournment or postponement thereof, and in
connection with any written consent of the Unitholders (or any class or subdivision thereof), the
Covenanting Unitholder shall, in each case to the fullest extent that the Covered Units are
entitled to vote thereon or consent thereto:

     (a) appear at each such meeting or otherwise cause its Covered Units to be counted as
present thereat for purposes of calculating a quorum; and

     (b) vote (or cause to be voted), in person or by proxy, or deliver (or cause to be
delivered) a written consent covering, all of the Covered Units:

     (i) in favor of the approval or adoption of, or consent to, the Merger
Agreement, any transactions contemplated by the Merger Agreement and any other
action reasonably requested by Parent in furtherance thereof submitted for the vote
or written consent of Unitholders;

     (ii) against the approval or adoption of (A) any Acquisition Proposal or any
other action, agreement, transaction or proposal made in opposition to the approval
of the Merger Agreement or inconsistent with the Merger and the other transactions
contemplated by the Merger Agreement, or (B) any action, agreement, transaction or
proposal that is intended, or would reasonably be expected, to result in a material
breach of any covenant, agreement, representation, warranty or any other obligation
of the Company Parties contained in the Merger Agreement or of the Covenanting
Unitholder contained in this Agreement; and

     (iii) against any action, agreement, transaction or proposal that is intended,
would reasonably be expected, or the result of which would reasonably be expected,
to materially impede, interfere with, delay, postpone, discourage, frustrate the
purposes of
or adversely affect the Merger or the other transactions contemplated by the
Merger Agreement, including but not limited to the following actions (other than the
Merger and the other transactions contemplated by the Merger Agreement and actions
requested or

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expressly permitted by Parent): (A) any extraordinary corporate
transaction, such as a merger, consolidation or other business combination involving
a Company Entity; (B) a sale, lease or transfer of a material amount of assets of a
Company Entity, or a reorganization, recapitalization, dissolution, liquidation or
winding up of a Company Entity; (C) (1) any change in a majority of persons who
constitute the Company Board as of the date hereof, except for changes requested or
expressly permitted by Parent, (2) any change in the present capitalization of the
Company or any amendment to a Company Entity Charter Document, or (3) any other
material change in a Company Entity’s organizational structure or business.

     Section 2.2 No Inconsistent Agreements. The Covenanting Unitholder hereby represents,
covenants and agrees that, except for this Agreement, the Covenanting Unitholder (a) has not
entered into, and shall not enter into at any time while this Agreement remains in effect, any
voting agreement or voting trust with respect to its Covered Units, (b) has not granted, and shall
not grant at any time while this Agreement remains in effect, a proxy, consent or power of attorney
with respect to its Covered Units (except pursuant to Section 2.3 hereof) and (c) has not
taken and shall not take any action that would make any representation or warranty of the
Covenanting Unitholder contained herein untrue or incorrect in any material respect or have the
effect of preventing or disabling the Covenanting Unitholder from performing in any material
respect any of its obligations under this Agreement.

     Section 2.3 Proxy. In order to secure the obligations set forth herein, the
Covenanting Unitholder hereby irrevocably appoints Parent, or any nominee thereof, with full power
of substitution and resubstitution, as its true and lawful proxy and attorney-in-fact, to vote or
execute written consents with respect to the Covered Units in accordance with Section 2.1
hereof and with respect to any proposed postponements or adjournments of any meeting of the
Unitholders at which any of the matters described in Section 2.1 are to be considered. The
Covenanting Unitholder hereby affirms that this proxy is coupled with an interest and shall be
irrevocable, except upon termination of this Agreement, and the Covenanting Unitholder will take
such further action or execute such other instruments as may be necessary to effectuate the intent
of this proxy and hereby revokes any proxy previously granted by the Covenanting Unitholder with
respect to the Covered Units. Parent may terminate this proxy with respect to the Covenanting
Unitholder at any time at its sole election by written notice provided to the Covenanting
Unitholder.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

     Section 3.1 Representations and Warranties of the Covenanting Unitholder. The
Covenanting Unitholder (except to the extent otherwise provided herein) hereby represents and
warrants to the Parent Parties as follows:

     (a) Organization; Authorization; Validity of Agreement; Necessary Action. The
Covenanting Unitholder has the requisite power and authority and/or capacity to execute and
deliver this Agreement and to carry out its obligations hereunder. The execution and
delivery by the Covenanting Unitholder of this Agreement and the performance by it of the
obligations hereunder have been duly and validly authorized by the Covenanting Unitholder
and no other actions or proceedings are required on the part of the Covenanting Unitholder
to authorize the execution and delivery of this Agreement or the performance by the
Covenanting Unitholder of
the obligations hereunder. This Agreement has been duly executed and delivered by the
Covenanting Unitholder and, assuming the due authorization, execution and delivery of this
Agreement by the Parent Parties, constitutes a legal, valid and binding agreement of the

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Covenanting Unitholder, enforceable against it in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general equitable
principles.

     (b) Ownership. The Covenanting Unitholder is the record and beneficial owner
of, and has good title to, the Existing Units, free and clear of any Liens, except as may be
provided for in this Agreement. All of the Covered Units owned by the Covenanting
Unitholder from the date hereof through and on the Closing Date will be beneficially or
legally owned by the Covenanting Unitholder, except in the case of a Permitted Transfer.
Except as provided for in this Agreement, the Covenanting Unitholder has and will have at
all times through the Closing Date sole voting power (including the right to control such
vote as contemplated herein), sole power of disposition, sole power to issue instructions
with respect to the matters set forth in Article 2 hereof, and sole power to agree
to all of the matters set forth in this Agreement, in each case with respect to all of the
Covenanting Unitholder’s Existing Units and with respect to all of the Covered Units owned
by the Covenanting Unitholder at any time through the Closing Date, except in the case of a
Permitted Transfer. Except for the Existing Units and the right to receive Units as
pay-in-kind dividends with respect to such Existing Units (collectively, the “PIK
Units”), the Covenanting Unitholder does not, directly or indirectly, legally or
beneficially own or have any option (other than its option to acquire securities of IDR
Holdings), warrant or other right to acquire any securities of a Company Entity that are or
may by their terms become entitled to vote or any securities that are convertible or
exchangeable into or exercisable for any securities of a Company Entity that are or may by
their terms become entitled to vote, nor is the Covenanting Unitholder subject to any
Contract or relationship, other than this Agreement, that obligates the Covenanting
Unitholder to vote, acquire or dispose of any securities of a Company Entity.

     (c) No Violation. Neither the execution and delivery of this Agreement by the
Covenanting Unitholder nor the performance by the Covenanting Unitholder of its obligations
under this Agreement will (i) result in a violation or breach of, or conflict with any
provisions of, or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in the termination or cancellation of, or
give rise to a right of purchase under, or result in the creation of any Lien (other than
under this Agreement) upon any of the properties, rights or assets (including but not
limited to the Existing Units) owned by the Covenanting Unitholder under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license,
contract, lease, agreement or other instrument or obligation of any kind to which the
Covenanting Unitholder is a party or by which the Covenanting Unitholder or any of its
respective properties, rights or assets may be bound, (ii) violate any Orders or Laws
applicable to the Covenanting Unitholder or any of its properties, rights or assets, or
(iii) result in a violation or breach of or conflict with its organizational and governing
documents, except in the case of clause (i) as would not reasonably be expected to prevent
or materially delay the ability of the Covenanting Unitholder to perform its obligations
hereunder.

     (d) Consents and Approvals. No consent, approval, Order or authorization of,
or registration, declaration or filing with, any Governmental Entity is necessary to be
obtained or made by the Covenanting Unitholder in connection with the Covenanting
Unitholder’s execution, delivery and performance of this Agreement, except for any reports
under Sections 13(d) and 16 of the Exchange Act as may be required in connection with this
Agreement and the transactions contemplated hereby.

     (e) Reliance by Parent. The Covenanting Unitholder understands and
acknowledges that the Parent Parties are entering into the Merger Agreement in reliance upon
the Covenanting

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Unitholder’s execution and delivery of this Agreement and the
representations, warranties, covenants and obligations of the Covenanting Unitholder
contained herein.

     (f) Adequate Information. The Covenanting Unitholder acknowledges that it is a
sophisticated party with respect to the Covered Units and has adequate information
concerning the business and financial condition of the Company to make an informed decision
regarding the transactions contemplated by this Agreement and has, independently and without
reliance upon any of the Parent Parties and based on such information as the Covenanting
Unitholder has deemed appropriate, made its own analysis and decision to enter into this
Agreement. The Covenanting Unitholder acknowledges that no Parent Party has made or is
making any representation or warranty, whether express or implied, of any kind or character
except as expressly set forth in this Agreement.

     Section 3.2 Representations and Warranties of Parent. Parent hereby represents and
warrants to the Covenanting Unitholder that the execution and delivery of this Agreement by Parent
and the consummation of the transactions contemplated hereby have been duly authorized by all
necessary action on the part of the board of directors of Parent. The Parent Parties acknowledge
that the Covenanting Unitholder has not made and is not making any representation or warranty of
any kind except as expressly set forth in this Agreement.

ARTICLE 4

OTHER COVENANTS

     Section 4.1 Prohibition on Transfers, Other Actions.

     (a) The Covenanting Unitholder hereby agrees, except for a Permitted Transfer, not to
(i) Transfer any of the Covered Units, beneficial ownership thereof or any other interest
therein, (ii) enter into any agreement, arrangement or understanding, or take any other
action, that violates or conflicts with, or would reasonably be expected to violate or
conflict with, or would reasonably be expected to result in or give rise to a violation of
or conflict with, the Covenanting Unitholder’s representations, warranties, covenants and
obligations under this Agreement, (iii) take any action that would restrict or otherwise
affect the Covenanting Unitholder’s legal power, authority and right to comply with and
perform its covenants and obligations under this Agreement, (iv) convert any of the Existing
Units or any PIK Units into Common Units, or (v) discuss, negotiate, make an offer or enter
into a Contract, commitment or other arrangement with respect to any matter related to this
Agreement, except, in the case of clause (v) as would not reasonably be expected to prevent
or materially delay the ability of the Covenanting Unitholder to perform its obligations
hereunder. Any Transfer in violation of this provision shall be null and void.

     (b) The Covenanting Unitholder agrees that if it attempts to Transfer (other than a
Permitted Transfer), vote or provide any other Person with the authority to vote any of the
Covered Units other than in compliance with this Agreement, the Covenanting Unitholder
shall unconditionally and irrevocably (during the term of this Agreement) instruct the
Company to not, (i) permit any such Transfer on its books and records, (ii) issue a
Book-Entry Interest or a new certificate representing any of the Covered Units, or (iii)
record such vote unless and until the Covenanting Unitholder has complied in all respects
with the terms of this Agreement.

     (c) The Covenanting Unitholder agrees that it shall not, and shall cause each of its
controlled Affiliates to not, become a member of a “group” (as that term is used in Section
13(d)

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of the Exchange Act) that the Covenanting Unitholder or such Affiliate is not
currently a part of and that has not been disclosed in a filing with the SEC prior to the
date hereof (other than as a result of entering into this Agreement) for the purpose of
opposing or competing with the transactions contemplated by the Merger Agreement.

     (d) The Covenanting Unitholder agrees not to knowingly take any action that would make
any representation or warranty of the Covenanting Unitholder contained herein untrue or
incorrect in any material respect or would reasonably be expected to have the effect of
preventing, impeding or interfering with or adversely affecting in any material respect the
performance by the Covenanting Unitholder of its obligations under or contemplated by this
Agreement.

     (e) The Covenanting Unitholder shall and does hereby authorize the Company or its
counsel to notify the Company’s transfer agent that there is a stop transfer order with
respect to the Existing Units (and that this Agreement places limits on the voting and
transfer of such Existing Units).

     Section 4.2 Adjustments.

     (a) In the event (i) of any dividend, split, recapitalization, reclassification,
combination or exchange of Company Equity Interests or other Company securities on, of or
affecting the Covered Units or the like or any other action that would have the effect of
changing the Covenanting Unitholder’s ownership of any Covered Units or other Company Equity
Interests or other Company securities or (ii) the Covenanting Unitholder becomes the
beneficial or record owner of any additional Company Equity Interests or other Company
securities during the period commencing with the execution and delivery of this Agreement
through the termination of this Agreement pursuant to Section 6.1, then the terms of
this Agreement will apply to such Company Equity Interests or other Company securities held
by the Covenanting Unitholder immediately following the effectiveness of the events
described in clause (i) or the Covenanting Unitholder becoming the beneficial owner thereof,
as described in clause (ii), as though they were Existing Units hereunder.

     (b) The Covenanting Unitholder hereby agrees, while this Agreement is in effect, to
promptly notify Parent in writing of the number of any new Company Equity Interests or other
securities of the Company acquired by the Covenanting Unitholder after the date hereof.

     Section 4.3 Further Assurances. From time to time, at Parent’s request and without
further consideration, the Covenanting Unitholder shall execute and deliver such additional
documents and take all such further action as may be reasonably necessary to effect the actions
contemplated from the Covenanting Unitholder by this Agreement.

ARTICLE 5

NO SOLICITATION

     Section 5.1 No Solicitation. Prior to the termination of this Agreement, the
Covenanting Unitholder, in its capacity as a Unitholder of the Company, shall not, and shall cause
its Representatives not to, directly or indirectly (a) solicit or initiate, or knowingly encourage,
any Acquisition Proposal or any inquiries regarding the submission of any Acquisition Proposal, (b)
participate in any discussions or
negotiations regarding, or furnish any Third Party any confidential information with respect
to or in connection with, or knowingly facilitate or otherwise cooperate with, any Acquisition
Proposal or any

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inquiry that may reasonably be expected to lead to an Acquisition Proposal, or (c)
enter into any agreement with respect to any Acquisition Proposal or approve or resolve to approve
any Acquisition Proposal. The Covenanting Unitholder shall, and shall cause its Representatives
to, immediately cease and cause to be terminated all existing discussions or negotiations with any
Third Party conducted prior to the date of this Agreement with respect to any Acquisition Proposal.

     Section 5.2 Notification. From and after the date hereof until the later of the
Effective Time and the termination of this Agreement, the Covenanting Unitholder shall promptly
advise Parent orally (and in any event within 24 hours) and as promptly as practicable in writing
of (a) any Acquisition Proposal, (b) the receipt of any request for non-public information related
to a Company Entity, and (c) the receipt of any request for information or any inquiries or
proposals (whether or not written) relating to an Acquisition Proposal or indication or inquiry
(including, if applicable, copies of any written requests, proposals or offers, including proposed
agreements), in each case received by it in its capacity as Unitholder. The Covenanting Unitholder
shall keep Parent informed on a current basis of the status and terms of any such Acquisition
Proposal or indication or inquiry (including, if applicable, any revised copies of written
requests, proposals and offers) and the status of any such discussions or negotiations.

ARTICLE 6

MISCELLANEOUS

     Section 6.1 Termination. This Agreement shall remain in effect until the earliest to
occur of (a) the Effective Time, (b) the valid termination of the Merger Agreement in accordance
with its terms (including after any extension thereof), (c) the date of any modification, amendment
or waiver of the Merger Agreement as in effect on the date hereof that adversely affects the
Covenanting Unitholder, (d) a Change in Recommendation, and (e) the written agreement of the
Covenanting Unitholder and Parent to terminate this Agreement. After the occurrence of such
applicable event, this Agreement shall terminate and be of no further force or effect. Nothing in
this Section 6.1 and no termination of this Agreement shall relieve or otherwise limit any
party of liability for any breach of this Agreement occurring prior to such termination.

     Section 6.2 No Ownership Interest. Nothing contained in this Agreement shall be
deemed to vest in Parent any direct or indirect ownership or incidence of ownership of or with
respect to any Covered Units. All rights, ownership and economic benefit relating to the Covered
Units shall remain vested in and belong to the Covenanting Unitholder, and Parent shall have no
authority to direct the Covenanting Unitholder in the voting or disposition of any of the Covered
Units, except as otherwise provided herein.

     Section 6.3 Publicity. The Covenanting Unitholder hereby permits Parent and the
Company to include and disclose in the Proxy Statement/Prospectus, and in such other schedules,
certificates, applications, agreements or documents as such entities reasonably determine to be
necessary or appropriate in connection with the consummation of the Merger and the transactions
contemplated by the Merger Agreement the Covenanting Unitholder’s identity and ownership of the
Covered Units and the nature of the Covenanting Unitholder’s commitments, arrangements and
understandings pursuant to this Agreement; provided that the Covenanting Unitholder shall have a
reasonable opportunity to review and approve any such disclosure in advance, such approval not to
be unreasonably withheld. Parent and the Company hereby permit the Covenanting Unitholder to
disclose this Agreement and the transactions contemplated by the Merger Agreement in any reports
required under Sections 13(d) and 16 of the Exchange Act.

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     Section 6.4 Unitholder Capacity. Notwithstanding anything contained in this Agreement
to the contrary, the representations, warranties, covenants and agreements made herein by the
Covenanting Unitholder are made solely with respect to such Covenanting Unitholder and the Covered
Units. The Covenanting Unitholder is entering into this Agreement solely in its capacity as the
owner of such Covered Units and nothing herein shall (a) limit or affect any actions or omissions
by the Covenanting Unitholder in any other capacity, (b) be construed to prohibit, limit or
restrict any actions or omissions by any Affiliate or direct or indirect owner of the Covenanting
Unitholder, or any of their respective officers, directors, managers, or employees, in each case
not acting as such on behalf of the Covenanting Unitholder, including exercising rights under the
Merger Agreement or (c) be construed to prohibit, limit or restrict the Covenanting Unitholder or
any of its direct or indirect owners or Affiliates, or any of their respective officers, directors,
managers, or employees, from exercising its fiduciary duties to the limited partners of the Company
under applicable Law. Without limiting the generality of the foregoing, Parent acknowledges that
certain members of the Company Board are also affiliated with the Covenanting Unitholder and its
Affiliates, and that such persons in his or her capacity as a member of the Company Board may, in
the exercise of his or her fiduciary duties to the limited partners of the Company under applicable
Law, take actions that would violate this Agreement if such actions were taken by the Covenanting
Unitholder.

     Section 6.5 Survival. All of the Covenanting Unitholder’s representations and
warranties contained herein will survive for twelve months after the termination of this Agreement.
The covenants and agreements made herein will survive in accordance with their respective terms.

     Section 6.6 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given when delivered personally or by telecopy (upon telephonic
confirmation of receipt) or on the first Business Day following the date of dispatch if delivered
by a recognized next day courier service. All notices hereunder shall be delivered as set forth
below or pursuant to such other instructions as may be designated in writing by the party to
receive such notice:

If to Parent or Merger Sub, to:

Kirby Corporation

55 Waugh Drive, Suite 1000

Houston, TX 77007

Attention: Amy D. Husted, Esq.

Telecopier No.: (713) 435-1408

with a copy (which shall not constitute notice) to:

Fulbright & Jaworski, L.L.P.

2200 Ross Avenue, Suite 2800

Dallas, Texas 75201

Attention: Thomas G. Adler, Esq. and Bryn A. Sappington, Esq.

Telecopier No.: (214) 855-8200

If to the Covenanting Unitholder, to:

EW Holding Corp.

One Tower Center Boulevard, 17th Floor

East Brunswick, NJ 08816

Attention: Timothy J. Casey

Telecopier No.: (732) 565-3696

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with a copy (which shall not constitute notice) to:

Dechert LLP

Cira Centre

2929 Arch Street

Philadelphia, PA 19104

Attention: Eric S. Siegel, Esq.

Telecopier No.: (215) 994-2222

     Section 6.7 Interpretation. The words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section references are to this Agreement unless
otherwise specified. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” The meanings
given to terms defined herein shall be equally applicable to both the singular and plural forms of
such terms. The headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. This Agreement is the product
of negotiation by the parties having the assistance of counsel and other advisers. It is the
intention of the parties that this Agreement not be construed more strictly with regard to one
party than with regard to the others.

     Section 6.8 Counterparts. This Agreement may be executed by facsimile and in
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same counterpart.

     Section 6.9 Entire Agreement. This Agreement and, solely to the extent of the defined
terms referenced herein, the Merger Agreement, together with the schedule annexed hereto, embody
the complete agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or representations by
or among the parties, written and oral, that may have related to the subject matter hereof in any
way.

     Section 6.10 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

     (a) THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY
AND ALL DISPUTES BETWEEN THE PARTIES UNDER OR RELATING TO THIS AGREEMENT OR THE FACTS AND
CIRCUMSTANCES LEADING TO ITS EXECUTION, WHETHER IN CONTRACT, TORT OR OTHERWISE, SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE (WITHOUT
REFERENCE TO SUCH STATE’S PRINCIPLES OF CONFLICTS OF LAW). THE DELAWARE COURT OF CHANCERY
(AND IF THE DELAWARE COURT OF CHANCERY SHALL BE UNAVAILABLE, ANY DELAWARE STATE COURT AND
THE FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE STATE OF DELAWARE) WILL
HAVE EXCLUSIVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN
LAW OR EQUITY, BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS,
INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY OR THE FACTS AND CIRCUMSTANCES LEADING TO ITS
EXECUTION, WHETHER IN CONTRACT, TORT OR OTHERWISE. EACH OF THE PARTIES IRREVOCABLY CONSENTS
TO AND AGREES TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH DISPUTE,
IRREVOCABLY CONSENTS TO THE SERVICE OF THE SUMMONS AND COMPLAINT

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AND ANY OTHER PROCESS IN ANY OTHER ACTION OR PROCEEDING RELATING TO THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, ON BEHALF OF ITSELF OR ITS PROPERTY, BY DELIVERY IN ANY
METHOD CONTEMPLATED BY SECTION 6.6 HEREOF OR IN ANY OTHER MANNER AUTHORIZED BY LAW,
AND HEREBY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (i) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE
JURISDICTION OF SUCH COURTS, (ii) SUCH PARTY AND SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY
LEGAL PROCESS ISSUED BY SUCH COURTS OR (iii) ANY LITIGATION COMMENCED IN SUCH COURTS IS
BROUGHT IN AN INCONVENIENT FORUM.

     (b) THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT WHICH
ANY PARTY MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY PROCEEDING, LITIGATION OR COUNTERCLAIM
BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.
IF THE SUBJECT MATTER OF ANY LAWSUIT IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED,
NO PARTY TO THIS AGREEMENT SHALL PRESENT AS A NON-COMPULSORY COUNTERCLAIM IN ANY SUCH
LAWSUIT ANY CLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
FURTHERMORE, NO PARTY TO THIS AGREEMENT SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A
JURY TRIAL CANNOT BE WAIVED.

     Section 6.11 Amendment; Waiver. This Agreement may not be amended except by an
instrument in writing signed by the parties hereto. Each party may waive any right of such party
hereunder by an instrument in writing signed by such party and delivered to Parent and the
Covenanting Unitholder. Notwithstanding the foregoing, no amendment or waiver shall be permitted or
effective without the prior written consent of the Company.

     Section 6.12 Remedies. The parties hereto agree that money damages would not be a
sufficient remedy for any breach of this Agreement and that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is hereby agreed that, prior to the valid
termination of this Agreement pursuant to Section 6.1, the parties hereto shall be entitled
to specific performance and injunctive or other equitable relief as a remedy for any such breach,
to prevent breaches of this Agreement, and to specifically enforce compliance with this Agreement.
In connection with any request for specific performance or equitable relief, each of the parties
hereto hereby waives any requirement for the security or posting of any bond in connection with
such remedy. Such remedy shall not be deemed to be the exclusive remedy for breach of this
Agreement but shall be in addition to all other remedies available at law or equity to such party.
The parties further agree that, by seeking the remedies provided for in this Section 6.12,
no party hereto shall in any respect waive their right to seek any other form of relief that may be
available to them under this Agreement, including monetary damages in the event that this Agreement
has been terminated or in the event that the remedies provided for in this Section 6.12 are
not available or otherwise are not granted.

     Section 6.13 Severability. Any term or provision of this Agreement, or the
application thereof, that is invalid or unenforceable in any situation in any jurisdiction shall
not affect the validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other situation or in any
other jurisdiction. If the final judgment of a Court of competent jurisdiction declares that any
term or provision hereof is illegal, void, invalid or

-10-

 

unenforceable, the parties hereto agree that the Court making such determination shall have
the power to limit the term or provision, to delete specific words or phrases, or to replace any
illegal, void, invalid or unenforceable term or provision with a term or provision that is legal,
valid and enforceable and that comes closest to expressing the intention of the illegal, void,
invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified.
In the event such Court does not exercise the power granted to it in the prior sentence, the
parties hereto shall replace such invalid or unenforceable term or provision with a valid and
enforceable term or provision that will achieve, to the extent possible, the original economic,
business and other purposes of such invalid or unenforceable term as closely as possible in an
acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

     Section 6.14 Expenses. Except as otherwise expressly provided herein or in the Merger
Agreement, all costs and expenses incurred in connection with this Agreement and the actions
contemplated hereby shall be paid by the party incurring such expenses, whether or not the Merger
is consummated.

     Section 6.15 Successors and Assigns; Third Party Beneficiaries.

     (a) Except in connection with a Permitted Transfer, neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by any of the parties
hereto (whether by operation of Law or otherwise) without the prior written consent of the
other parties; provided, however, that Parent and Merger Sub may transfer or
assign their rights and obligations under this Agreement, in whole or in part or from time
to time in part, to one or more of their Affiliates at any time, provided
further, that such transfer or assignment shall not relieve Parent or Merger Sub of
any of their obligations hereunder. Any assignment in violation of the foregoing shall be
null and void. Subject to the preceding two sentences, this Agreement will be binding upon,
inure to the benefit of and be enforceable by the parties and their respective successors
and assigns.

     (b) Other than the Company with respect to Section 6.11 hereof, this Agreement is not
intended to and shall not confer upon any Person (other than the parties hereto) any rights
or remedies hereunder.

[Signature pages follow.]

-11-

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of
the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	EW HOLDING CORP.

 	 
	 	By:  	/s/ Timothy J. Casey
 	 
	 	 	Timothy J. Casey, Chief Executive Officer 	 
	 	 	and President 	 
	 

[Signature page follows.]

[Signature Page 1 of 2 to Support Agreement]

 

 

	 	 	 	 	 
	 	KIRBY CORPORATION

 	 
	 	By:  	/s/ Joseph H. Pyne 	 
	 	 	Joseph H. Pyne, Chairman of the Board, 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	KSP MERGER SUB, LLC

 	 
	 	By:  	/s/ Joseph H. Pyne 	 
	 	 	Joseph H. Pyne, President 	 
	 	 	 	 
	 
	 	KSP HOLDING SUB, LLC

 	 
	 	By:  	/s/ Joseph H. Pyne 	 
	 	 	Joseph H. Pyne, President 	 
	 	 	 	 
	 
	 	KSP LP SUB, LLC

 	 
	 	By:  	/s/ Joseph H. Pyne 	 
	 	 	Joseph H. Pyne, President 	 
	 	 	 	 
	 

[Signature Page 2 of 2 to Support Agreement]

 

 

Schedule I

	 	 	 

	EW Holding Corp.

	 	539,773 Common Units

[Schedule I]exv10w3

Exhibit 10.3

CHINDEX INTERNATIONAL, INC.

2007 STOCK INCENTIVE PLAN

(as amended and restated as of November 22, 2010)

SECTION 1 Purpose

          The purpose of this Chindex International, Inc. 2007 Stock Incentive Plan is to promote the
interests of Chindex International, Inc. (the “Company”) and its Subsidiaries through grants of
awards to employees, directors and consultants in order to (i) attract and retain employees,
directors and consultants, (ii) provide an additional incentive to each award holder to work to
increase the value of Chindex stock, and (iii) provide each award holder with a stake in the future
of Chindex which strengthens the mutuality of interests between such award holder and Chindex’s
shareholders.

SECTION 2 Types of Awards

          Awards under the Plan may be in the form of Stock Options, Stock Appreciation Rights (SARs),
Restricted Stock, Restricted Stock Units (RSUs), Other Stock-Based Awards, and Cash Awards.

          Awards may be free-standing or granted in tandem. If two awards are granted in tandem, the
award holder may exercise (or otherwise receive the benefit of) one award only to the extent he or
she relinquishes the tandem award.

SECTION 3 Definitions

          “Beneficiary” means an award holder’s designated beneficiary or estate, as determined under
Section 15.

          “Board” means the Board of Directors of Chindex.

          “Cash Award” means an award granted under Section 12 of the Plan.

          “Chindex” or the “Company” means Chindex International, Inc., a Delaware corporation, and any
successor to such corporation.

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

          “Committee” means (i) with respect to awards to Non-Employee Directors, the entire Board; and
(ii) with respect to all other awards, a committee of the Board designated by the Board to
administer this Plan and which shall consist of at least two members of the Board, or if no such
committee is appointed, the entire Board.

          “Consultant” means any individual, other than an Employee or Non-Employee Director, who is
engaged by Chindex or a Subsidiary to render services, other than a person whose services are
rendered in connection with capital-raising or promoting or maintaining a market for Chindex
securities.

          “Employee” means an employee of Chindex or of any Subsidiary.

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

          “Fair Market Value” of the Stock means (i) if the Stock is readily tradable on an established
securities market (within the meaning of Section 409A of the Code), the closing price for a share
of Stock on such exchange or market as is determined by the Committee to be the primary market for
the Stock on the date in question, or if the date in question is not a trading day on such market,
the closing price on such exchange or market
for the trading day immediately preceding the day in question, and (ii) otherwise, such other
price as the Board determines is appropriate after taking into account the requirements of Section
409A of the Code.

 

 

          “Incentive Stock Option” or “ISO” means a Stock Option granted under the Plan which both is
designated as an ISO and qualifies as an incentive stock option within the meaning of Section 422
of the Code.

          “Non-Employee Director” means a member of the Board who is not an Employee.

          “Non-Qualified Option” or “NQSO” means a Stock Option granted under the plan which either is
designated as NQSO or does not qualify as an incentive stock option within the meaning of Section
422 of the Code.

          “Other Stock Based Award” means an award described in Section 11 of the Plan.

          “Plan” means this Chindex International, Inc. 2007 Stock Incentive Plan, as amended from time
to time.

          “Performance Award” means an award granted under Section 9, 10, 11, or 12 of the Plan that
meets the requirements of Section 13 of the Plan and is intended to qualify as “performance-based
compensation” under Section 162(m) of the Code.

          “Performance Objectives” means objective measures of performance for earning an award, which
in the case of Performance Awards, shall be based on one or more of the criteria specified in
Section 13.2.

          “Restricted Stock” means an award described in Section 9 of the Plan.

          “Restricted Stock Unit” or “RSU” means an award described in Section 10 of the Plan.

          “Stock” means common stock of Chindex, par value one cent ($.01).

          “Stock Appreciation Right” or “SAR” means an award described in Section 8 of the Plan.

          “Stock Option” means an Incentive Stock Option or a Non-Qualified Stock Option.

          “Subsidiary” means any corporation, partnership, joint venture, or other entity in which
Chindex owns, directly or indirectly, 50% or more of the ownership interests.

SECTION 4 Administration

          4.1 The Plan shall be administered by the Committee.

          4.2 The Committee shall have the following authority and discretion with respect to awards
under the Plan: to grant awards (subject to any limitations contained in the Plan); to adopt,
alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall
deem advisable; to interpret the terms and provisions of the Plan and any award granted under the
Plan; to make all factual and other determinations necessary or advisable for the administration of
the Plan; and to otherwise supervise the administration of the Plan. In particular, and without
limiting its authority and powers, the Committee shall have the authority:

          (1) to determine whether and to what extent any award or combination of awards
will be granted hereunder and whether they will be Performance Awards;

          (2) to select the Employees, Non-Employee Directors, and Consultants to whom
awards will be granted;

          (3) to determine the number of shares of Stock to be covered by each award granted
hereunder subject to the limitations contained herein;

          (4) to determine the terms and conditions of any award granted hereunder,
including, but not limited to, any vesting or other restrictions based on such Performance
Objectives,

 

 

continued employment, and such other factors as the Committee may establish,
and to determine whether the Performance Objectives and other terms and conditions of the
award have been satisfied;

          (5) to determine the treatment of awards upon an award holder’s retirement,
disability, death, termination for cause or other termination of employment or service;

          (6) to determine whether amounts equal to the amount of any dividends declared
with respect to the number of shares covered by an award (i) will be paid to the award
holder currently, or (ii) will be deferred and deemed to be reinvested or otherwise
credited to the award holder and paid at the date specified in the award, or (iii) that the
award holder has no rights with respect to such dividends (in each case, subject to any
restrictions imposed by Section 409A of the Code);

          (7) to amend the terms of any award, prospectively or retroactively; provided,
however, that (i) no amendment shall impair the rights of the award holder with respect to
an outstanding award without his or her written consent; (ii) unless specifically approved
by the stockholders, the Committee shall have no power to amend the terms of outstanding
Stock Options or SARs to reduce the option price or base price of such awards, or to cancel
outstanding Stock Options or SARs and grant substitute Stock Options or SARs with a lower
option price or base price than the cancelled awards; and (iii) the Committee shall
consider the provisions of Section 409A of the Code prior to amending any award;

          (8) to correct any defect, supply any omission, or reconcile any inconsistency in
the Plan or any award in the manner and to the extent it shall deem desirable to carry out
the purpose of the Plan;

          (9) to determine whether, to what extent, and under what circumstances Stock and
other amounts payable with respect to an award will be deferred either automatically or at
the election of an award holder, including providing for and determining the amount (if
any) of deemed earnings on any deferred amount during any deferral period (in each case,
subject to any restrictions imposed by Section 409A of the Code);

          (10) to determine, pursuant to a formula or otherwise, the Fair Market Value of
the Stock on a given date;

          (11) subject to any restrictions imposed by Section 409A of the Code, to provide
that the shares of Stock received as a result of an award shall be subject to a right of
repurchase by the Company and/or a right of first refusal, in each case subject to such
terms and conditions as the Committee may specify;

          (12) to adopt one or more sub-plans, consistent with the Plan, containing such
provisions as may be necessary or desirable to enable awards under the Plan to comply with
the laws of other jurisdictions and/or qualify for preferred tax treatment under such laws;

          (13) to the extent permitted by law, to delegate to a committee of two or more
officers of the Company the authority to grant awards to Employees who are not officers or
directors of the Company for purposes of Section 16 of the Securities Exchange Act of 1934;
provided, however, that any such delegation shall be set forth in a resolution of the
Committee that specifies the total number of shares as to which awards may be granted under
such delegation and any other limitations as may be imposed by the Committee; and

          (14) to delegate such administrative duties as it may deem advisable to one or
more of its members or to one or more employees or agents of the Company.

          4.3 All determinations and interpretations made by the Committee pursuant to the
provisions of the Plan shall be final and binding on all persons, including the Company and award
holders.

 

 

          4.4 The Committee may act by a majority of its members at a meeting (present in person or
by conference telephone), by unanimous written consent or by any other method of director action
then permitted under the General Corporation Law of the State of Delaware.

SECTION 5 Stock Subject to Plan

          5.1 The total number of shares of Stock which may be issued under the Plan (from its
inception) shall be (i) 2,100,000 shares (which number reflects the initial authorization of 1
million shares, an adjustment for the Company’s 3-for-2 stock split effective April 1, 2008, and
the authorization of an additional 600,000 shares by amendment adopted effective November 22, 2010)
plus (ii) any unused shares authorized for awards under the Company’s 2004 Stock Incentive Plan
(the “2004 Plan”), in each case subject to adjustment as provided in Section 5.4. No more than
750,000 shares may be granted with respect to Incentive Stock Options (subject to adjustment as
provided in Section 5.4). Shares issued under the Plan may consist of authorized but unissued
shares or shares which have been issued and reacquired by the Company. The payment of any award in
cash shall not count against this share limit. Any dividend equivalents that are granted with
respect to other awards under this Plan and are paid in shares shall also not count against the
share limit for the Plan.

          In connection with a merger or consolidation of an entity with the Company or the acquisition
by the Company or a Subsidiary of property or stock of an entity, the Company may assume awards
granted by such entity or grant Stock Options or other awards in substitution for awards granted by
such entity or an affiliate thereof, and such assumed or substituted awards shall not count against
the share limit under this Plan.

          5.2 To the extent a Stock Option or Stock Appreciation Right terminates without having
been exercised, or an award terminates without the holder having received payment of the award, or
shares awarded are forfeited (in each case including terminations and forfeitures of outstanding
awards granted under the 2004 Plan), the shares subject to such award shall again be available for
distribution in connection with future awards under this Plan. Shares of Stock equal in number to
the shares surrendered in payment of the option price, and shares of Stock which are withheld in
order to satisfy federal, state or local tax withholding obligations with respect to any award,
shall not count against the above limit, and shall again be available for grants under the Plan.
In the event that any Stock Option or SAR is exercised or settled by delivery of only the net
shares representing the appreciation in the Stock, only the net shares delivered shall be counted
against the Plan’s share limit.

          5.3 No individual shall be granted Stock Options, SARs, Restricted Stock, RSUs, or Other
Stock-Based Awards, or any combination thereof with respect to more than 300,000 shares of Stock in
any fiscal year (subject to adjustment as provided in Section 5.4). The maximum Cash Award which
may be paid to any individual in any fiscal year (measured at the end of the performance period or
periods ending in the fiscal year, and without regard to increase in value of the award during any
deferral period) is $500,000.

          5.4 In the event of a change in the outstanding stock of the Company (including but not
limited to changes in either the number of shares or the value of shares) by reason of any stock
split, reverse stock split, dividend or other distribution (whether in the form of shares, other
securities or other property, but not including regular cash dividends), extraordinary cash
dividend, recapitalization, merger in which the stockholders of the Company immediately prior to
the merger continue to own a majority of the voting securities of the successor entity immediately
after the merger, consolidation, split-up, spin-off, reorganization, combination, repurchase or
exchange of shares or other securities, or other similar corporate transaction or event, if the
Committee shall determine in its sole discretion that, in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the Plan, such
transaction or event equitably requires an adjustment in the aggregate number and/or class of
shares of Stock available under the Plan (including for this purpose the number of shares of Stock
available for issuance under the Plan) or in the number, class and/or price of shares of Stock
subject to outstanding Stock Options and/or outstanding awards), such adjustment shall be made by
the Committee and shall be conclusive and binding for all purposes under the Plan. A participant
holding an outstanding award has a legal right to an adjustment that preserves without enlarging
the value of such award, with the terms and manner of such adjustment to be determined by the
Committee.

          In addition, upon the dissolution or liquidation of the Company or upon any reorganization,
merger, or consolidation as a result of which the Company is not the surviving corporation (or
survives as a wholly-

 

 

owned subsidiary of another corporation), or upon a sale of substantially all
the assets of the Company, the Board or the Committee may take such action as it in its discretion
deems appropriate, subject to any limitations imposed by Section 409A of the Code, to (i)
accelerate the time when awards vest and/or may be exercised and/or may be paid, (ii) cash out
outstanding Stock Options and/or other awards at or immediately prior to the date of such event,
(iii) provide for the assumption of outstanding Stock Options or other awards by surviving,
successor or transferee corporations or entities, (iv) provide that in lieu of shares of Stock, the
award recipient shall be entitled to receive the consideration he or she would have received in
such transaction in exchange for such shares of Stock (or the fair market value thereof in cash),
and/or (v) provide that Stock Options and SARs shall be exercisable for a period of at least 10
business days from the date of receipt of a notice from the Company of such proposed event,
following the expiration of which period any unexercised Stock Options or SARs shall terminate.

          No fractional shares shall be issued or delivered under the Plan. The Board or the Committee
shall determine whether the value of fractional shares shall be paid in cash or other property, or
whether such fractional shares and any rights thereto shall be cancelled without payment.

          The Board’s or Committee’s determination as to which adjustments shall be made under this
Section 5.4 and the extent thereof shall be final, binding and conclusive.

SECTION 6 Eligibility

          Employees, Non-Employee Directors, and Consultants are eligible to be granted awards under the
Plan. In addition, awards may be granted to prospective Employees, Non-Employee Directors, or
Consultants but such awards shall not become effective until the recipient’s commencement of
employment or service with the Company or Subsidiary. Incentive Stock Options may be granted only
to employees and prospective employees of the Company or of any parent corporation or subsidiary of
the Company (as those terms are defined in Section 424 of the Code). The participants under the
Plan shall be selected from time to time by the Committee, in its sole discretion, from among those
eligible.

SECTION 7 Stock Options

          7.1 The Stock Options awarded under the Plan may be either Incentive Stock Options or
Non-Qualified Stock Options. To the extent that any Stock Option is either designated as a
Non-Qualified Stock Option or does not qualify as an Incentive Stock Option, it shall constitute a
Non-Qualified Stock Option.

          7.2 Subject to the following provisions, Stock Options awarded under the Plan shall be in
such form and shall have such terms and conditions as the Committee may determine:

          (1) Option Price. The option price per share of Stock purchasable under a Stock
Option shall be determined by the Committee, but shall not be less than the Fair Market
Value of the Stock on the date of grant of the Stock Option. The date of grant of any
Stock Option shall be the date of Committee approval of the Stock Option or a prospective
date specified by the Committee, and for prospective Employees shall be no earlier than the
first day of employment.

          (2) Option Term. The term of each Stock Option shall be fixed by the Committee,
but shall not exceed ten years.

          (3) Exercisability. Stock Options shall be exercisable at such time or times and
subject to such terms and conditions as shall be determined by the Committee. The
Committee may waive such exercise provisions or accelerate the exercisability of the Stock
Option at any time in whole or in part.

          (4) Method of Exercise. Stock Options may be exercised in whole or in part at any
time during the option period by giving notice of exercise, in such manner as may be
determined by the Company (which may be written or electronic), specifying the number of
whole shares to be purchased,
accompanied by payment of the aggregate option price for such shares. Payment of the
option price shall

 

 

be made in such manner as the Committee may provide in the award, which
may include (i) cash (including cash equivalents), (ii) delivery (either by actual delivery
of the shares or by providing an affidavit attesting to ownership of the shares) of shares
of Stock already owned by the optionee, (iii) broker-assisted “cashless exercise” in which
the optionee delivers a notice of exercise together with irrevocable instructions to a
broker acceptable to the Company to sell shares of Stock (or a sufficient portion of such
            shares) acquired upon exercise of the Stock Option and remit to the Company a sufficient
portion of the sale proceeds to pay the total option price and any withholding tax
obligation resulting from such exercise, (iv) application of shares subject to the Stock
Option to satisfy the option price, (v) any other manner permitted by law, or (vi) any
combination of the foregoing. Any shares used to pay the option price shall be valued at
their Fair Market Value on the date of exercise.

          (5) No Stockholder Rights. An optionee shall have neither rights to dividends or
other rights of a stockholder with respect to shares subject to a Stock Option until the
optionee has duly exercised the Stock Option and a certificate for such shares has been
duly issued (or the optionee has otherwise been duly recorded as the owner of the shares on
the books of the Company).

          (6) Surrender Rights. The Committee may provide that options may be surrendered
for cash upon any terms and conditions set by the Committee.

          (7) Non-transferability. Unless otherwise provided by the Committee, (i) Stock
Options shall not be transferable by the optionee other than by will or by the laws of
descent and distribution, and (ii) during the optionee’s lifetime, all Stock Options shall
be exercisable only by the optionee or by his or her guardian or legal representative. The
Committee, in its sole discretion, may permit Stock Options to be transferred to such
transferees and on such terms and conditions as may be determined by the Committee.

          (8) Termination of Employment. Following the termination of an optionee’s
employment or service with the Company or a Subsidiary, the Stock Option shall be
exercisable to the extent determined by the Committee. The Committee may provide different
post-termination exercise provisions with respect to termination of employment or service
for different reasons. The Committee may provide at the time of grant that,
notwithstanding the option term fixed pursuant to Section 7.2(2), a Stock Option which is
outstanding on the date of an optionee’s death shall remain outstanding for an additional
period after the date of such death. The Committee shall have absolute discretion to
determine the date and circumstances of any termination of employment or service.

          7.3 Notwithstanding the provisions of Section 7.2, Incentive Stock Options shall be
subject to the following additional restrictions:

          (1) No Incentive Stock Option shall have an option price which is less than 100% of
the fair market value (as determined for purposes of Section 422 of the Code) of the Stock
on the date of grant of the Incentive Stock Option. The date of grant of any Incentive
Stock Option shall be the date of Committee approval of the Incentive Stock Option or a
prospective date specified by the Committee, and for prospective employees shall be no
earlier than the first day of employment.

          (2) No Incentive Stock Option shall be exercisable more than ten years after the
date such Incentive Stock Option is granted.

          (3) No Incentive Stock Option shall be awarded more than ten years after July 12,
2007, the date of Board approval of the Plan.

          (4) No Incentive Stock Option granted to an employee who owns more than 10% of the
total combined voting power of all classes of stock of the Company or any of its parent or
subsidiary corporations, as defined in Section 424 of the Code, shall (A) have an option
price which is less than 110% of the fair market value of the Stock on the date of grant of
the Incentive Stock Option or (B) be
exercisable more than five years after the date such Incentive Stock Option is granted.

 

 

          (5) The aggregate fair market value (determined as of the time the Incentive Stock
Option is granted) of the shares with respect to which Incentive Stock Options (granted
under the Plan and any other plans of the Company, its parent corporation or subsidiary
corporations, as defined in Section 424 of the Code) are exercisable for the first time by
an optionee in any calendar year shall not exceed $100,000.

          (6) An optionee’s right to exercise an Incentive Stock Option shall be subject to
the optionee’s agreement to notify the Company of any “disqualifying disposition” (for
purposes of Section 422 of the Code) of the shares acquired upon such exercise.

          (7) Incentive Stock Options shall not be transferable by the optionee, other than
by will or by the laws of descent and distribution, subject to such additional limitations
as may be imposed by the Committee. During the optionee’s lifetime, all Incentive Stock
Options shall be exercisable only by such optionee.

          The Committee may, with the consent of the optionee, amend an Incentive Stock Option in a
manner that would cause loss of Incentive Stock Option status, provided the Stock Option as so
amended satisfies the requirements of Section 7.2.

          7.4 Substitute Options. In connection with a merger or consolidation of an entity with
the Company or the acquisition by the Company or a Subsidiary of property or stock of an entity,
the Committee may grant Stock Options in substitution for any options or other stock awards or
stock-based awards granted by such entity or an affiliate thereof. Such substitute Stock Options
may be granted on such terms as the Committee deems appropriate to prevent dilution or enlargement
of the benefits under the prior award, notwithstanding any limitations on Stock Options contained
in other provisions of this Section 7, but after considering the provisions of Section 409A of the
Code.

SECTION 8 Stock Appreciation Rights (SARs)

          A Stock Appreciation Right shall entitle the holder thereof to receive, for each share as to
which the award is granted, payment of an amount, in cash, shares of Stock, or a combination
thereof as determined by the Committee, equal in value to the excess of the Fair Market Value of a
share of Stock on the date of exercise over an amount (the base price) specified by the Committee.
Any such award shall be in such form and shall have such terms and conditions as the Committee may
determine; provided, however, that no SAR shall have a base price below the Fair Market Value of
the Stock on the date of grant or a term longer than ten years. The award shall specify the number
of shares of Stock as to which the SAR is granted.

SECTION 9 Restricted Stock

          Subject to the following provisions, all awards of Restricted Stock shall be in such form and
shall have such terms and conditions as the Committee may determine:

          (1) The Restricted Stock award shall specify the number of shares of Restricted
Stock to be awarded, the price, if any, to be paid by the recipient of the Restricted Stock
and the date or dates on which, or the conditions upon the satisfaction of which, the
Restricted Stock will vest. The grant and/or the vesting of Restricted Stock may be
conditioned upon the completion of a specified period of service with the Company and/or
its Subsidiaries, upon the attainment of specified Performance Objectives, and/or upon such
other criteria as the Committee may determine.

          (2) Stock certificates representing the Restricted Stock awarded shall be
registered in the award holder’s name (or the holder shall be recorded as the owner of the
shares on the books of the Company), but the Committee may direct that such certificates be
held by the Company or its designee on behalf of the award holder (or that transfer
restrictions be placed on the shares). Except as may be
permitted by the Committee, no share of Restricted Stock may be sold, transferred,
assigned, pledged or otherwise encumbered by the award holder until such share has vested
in accordance with the terms of the

 

 

Restricted Stock award. At the time Restricted Stock
vests, a certificate for such vested shares shall be delivered to the award holder (or his
or her Beneficiary in the event of death), (or the award holder (or his or her Beneficiary
in the event of death) shall be duly recorded as the owner of the shares on the books of
the Company), in each case free of all restrictions.

          (3) The Committee may provide that the award holder shall have the right to vote
and/or receive dividends on Restricted Stock. Unless the Committee provides otherwise,
Stock received as a dividend on, or in connection with a stock split of, Restricted Stock
(or pursuant to adjustment under Section 5.4) shall be subject to the same restrictions as
the Restricted Stock.

          (4) Except as may be provided by the Committee, in the event of an award holder’s
termination of employment or service before all of his or her Restricted Stock has vested,
or in the event any conditions to the vesting of Restricted Stock have not been satisfied
prior to any deadline for the satisfaction of such conditions set forth in the award, the
shares of Restricted Stock which have not vested shall be forfeited, and the Committee may
provide that (i) any purchase price paid by the award holder shall be returned to the award
holder or (ii) a cash payment equal to the Restricted Stock’s Fair Market Value on the date
of forfeiture, if lower, shall be paid to the award holder.

          (5) The Committee may waive, in whole or in part, any or all of the conditions to
receipt of, or restrictions with respect to, any or all of the award holder’s Restricted
Stock (except that the Committee may not waive conditions or restrictions with respect to
Performance Awards if such waiver would cause the award to fail to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code).

SECTION 10 Restricted Stock Units (RSUs)

          Subject to the following provisions, all awards of Restricted Stock Units shall be in such
form and shall have such terms and conditions as the Committee may determine:

          (1) The Restricted Stock Unit award shall specify the number of RSUs to be awarded
and the duration of the period (the “Deferral Period”) during which, and the conditions
under which, receipt of the Stock will be deferred. The Committee may condition the grant
or vesting of Restricted Stock Units, or receipt of Stock or cash at the end of the
Deferral Period, upon the completion of a specified period of service with the Company
and/or its Subsidiaries, upon the attainment of specified Performance Objectives, and/or
upon such other criteria as the Committee may determine.

          (2) Except as may be provided by the Committee, RSU awards may not be sold,
assigned, transferred, pledged or otherwise encumbered during the Deferral Period.

          (3) At the expiration of the Deferral Period, the award holder (or his or her
Beneficiary in the event of death) shall receive (i) certificates for the number of shares
of Stock equal to the number of shares covered by the RSU award (or the shares shall be
duly recorded as owned by such holder on the books of the Company), (ii) cash equal to the
Fair Market Value of such Stock, or (iii) a combination of shares and cash, as the
Committee may determine.

          (4) Except as may be provided by the Committee, in the event of an award holder’s
termination of employment or service before the RSU has vested, his or her RSU award shall
be forfeited.

          (5) The Committee may waive, in whole or in part, any or all of the conditions to
receipt of, or restrictions with respect to, Stock or cash under a Restricted Stock Unit
award (except that the Committee may not waive conditions or restrictions with respect to
Performance Awards if such waiver would cause the award to fail to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code). In
addition, the Committee shall not accelerate the payment of an RSU if
such acceleration would violate Section 409A of the Code.

 

 

SECTION 11 Other Stock-Based Awards

          The Committee may grant Other Stock-Based Awards, which shall consist of any right that is not
an award described in Sections 7, 8, 9 or 10 hereof and that is denominated or payable in Stock, or
valued in whole or in part by reference to or otherwise based on or related to Stock (including,
without limitation, securities convertible into Stock). The Committee shall determine the terms
and conditions of any such award, subject to any limitations contained in the Plan.

SECTION 12 Cash Awards

          12.1 The Committee may grant Cash Awards, which shall entitle the award holder to receive
cash upon the satisfaction of the Performance Objectives and other terms and conditions set forth
in the award. At the time of grant of a Cash Award, the Committee shall specify the applicable
Performance Objectives and the performance period to which they apply, as well as the amount of the
Cash Award to be paid upon satisfaction of the Performance Objectives (which may be stated as a
range of amounts payable upon attainment of specified levels of satisfaction of the Performance
Objectives). The Committee may determine that a Cash Award shall be payable upon achievement of
any one Performance Objective, or any one of several Performance Objectives, or that two or more of
the Performance Objectives must be achieved as a condition to payment of a Cash Award.

          12.2 The Committee shall specify at the time of grant of a Cash Award the date or dates
such Cash Award, to the extent earned, shall be payable, and may require all or a portion of the
Cash Award to be deferred and payable only upon satisfaction of continued employment or other
specified conditions. The Committee may also permit all or a portion of a Cash Award to be deferred
at the award holder’s election, subject to Section 409A of the Code. Deferred portions of a Cash
Award may be credited with interest, deemed invested in Stock, or deemed invested in such other
investments as the Committee may specify.

SECTION 13 Performance Awards

          13.1 The Committee shall have the right to designate awards under Section 9, 10, 11 or 12
as Performance Awards, in which case the following provisions shall apply to such awards (in
addition to the provisions under Section 9, 10, 11, or 12, as applicable).

          13.2 The grant or vesting of a Performance Award shall be subject to the achievement of
Performance Objectives established by the Committee based on one or more of the following criteria,
in each case applied to the Company on a consolidated basis and/or to a Subsidiary, business unit,
business segment or business line, and which the Committee may use as an absolute measure, as a
measure of improvement relative to prior performance, or as a measure of comparable performance
relative to a peer group of companies or published or special index that the Committee deems
appropriate:

	 	(1)	 	Net earnings or net income (before or after
taxes);

	 	(2)	 	Earnings per share;

	 	(3)	 	Net sales or revenue growth;

	 	(4)	 	Gross revenues (and/or gross revenue
growth) and/or mix of revenues among the Company’s business activities;

	 	(5)	 	Net operating profit (or reduction in
operating loss);

	 	(6)	 	Return measures (including, but not limited
to, return on assets, capital, invested capital, equity, sales, or
revenue);

	 	(7)	 	Cash flow (including, but not limited to,
operating cash flow, free cash flow, cash flow return on equity, and
cash flow return on investment);

	 	(8)	 	Earnings before or after taxes, interest,
depreciation, amortization, and/or other non-cash items;

	 	(9)	 	Gross or operating margins;

	 	(10)	 	Productivity ratios (and/or such ratios as
compared to various stock market indices);

	 	(11)	 	Stock price (including, but not limited to,
growth measures and total shareholder return);

 

 

	 	(12)	 	Stock price and market capitalization
ratios (including, but not limited to, price-to-earnings ratio and
enterprise multiple)

	 	(13)	 	Expense targets (including, but not limited
to, expenses-to-sales ratios);

	 	(14)	 	Margins;

	 	(15)	 	Operating efficiency;

	 	(16)	 	Market share;

	 	(17)	 	Customer satisfaction;

	 	(18)	 	Employee satisfaction or retention;

	 	(19)	 	Development and implementation of employee
or executive development programs (including, but not limited to,
succession programs);

	 	(20)	 	Working capital targets;

	 	(21)	 	Economic value added;

	 	(22)	 	Market value added;

	 	(23)	 	Debt to equity ratio; and

	 	(24)	 	Strategic business goals relating to
acquisitions, divestitures and joint ventures.

          The Committee may provide in any Performance Award that any evaluation of performance may
include or exclude any of the following events that occurs during the performance period: (i) asset
write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax
laws, accounting principles, or other laws or provisions affecting reported results, (iv) any
reorganization and restructuring programs, (v) extraordinary nonrecurring items as described in
Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of
financial condition and results of operations appearing in the Company’s annual report to
stockholders for the applicable year, (vi) the impact of adjustments to the Company’s deferred tax
asset valuation allowance, (vii) acquisitions or divestitures, and (viii) foreign exchange gains
and losses. To the extent such inclusions or exclusions affect awards intended to be
performance-based within the meaning of Section 162(m) of the Code, they shall be prescribed in a
form that meets the requirements of Section 162(m).

          13.3 The following additional requirements shall apply to Performance Awards:

          (1) The Performance Objectives shall be established by the Committee not later
than the earlier of (i) 90 days after the beginning of the applicable performance period,
or (ii) the time 25% of such performance period has elapsed.

          (2) The Performance Objectives shall be objective and the achievement of such
Performance Objectives shall be substantially uncertain (within the meaning of Section
162(m) of the Code) at the time the Performance Objectives are established.

          (3) The amount of the Performance Award payable upon each level of achievement of
the Performance Objectives must be objectively determinable, except that the Committee
shall have the right to reduce (but not increase) the amount payable, in its sole
discretion.

          (4) Prior to payment of any Performance Award, the Committee shall certify in
writing, in a manner which satisfies the requirements of Section 162(m) of the Code, that
the Performance Objectives have been satisfied.

SECTION 14 Tax Withholding

          Each award holder shall, no later than the date as of which an amount with respect to an award
first becomes includible in such person’s gross income for applicable tax purposes, pay to the
Company, or make arrangements satisfactory to the Company regarding payment of, any federal, state,
local or other taxes of any kind required by law to be withheld with respect to the award. The
obligations of the Company under the Plan shall be conditional on such payment or arrangements, and
the Company (and, where applicable, any Subsidiaries), shall, to
the extent permitted by law, have the right to deduct the minimum amount of any required tax
withholdings from any payment of any kind otherwise due to the award holder.

 

 

          To the extent permitted by the Committee, and subject to such terms and conditions as the
Committee may provide, an award holder may elect to have the minimum amount of any required tax
withholding with respect to any awards hereunder satisfied by having the Company withhold shares of
Stock otherwise deliverable to such person with respect to the award. Alternatively, the Committee
may require that a portion of the shares of Stock or cash otherwise deliverable be applied to
satisfy the minimum withholding tax obligations with respect to the award.

SECTION 15 Beneficiary of Award Holder

          15.1 The Committee may provide the holder with the right to designate any person or
persons as such person’s beneficiary or beneficiaries (both primary and contingent) to whom payment
in respect of one or more of the award holder’s awards under this Plan shall be paid in the event
of the award holder’s death. Each beneficiary designation shall become effective only when filed
in writing with the Company during the award holder’s lifetime on a form provided by the Company.
If an award holder is married, his or her designation of beneficiary or beneficiaries other than
his/her spouse or his/her estate shall not be effective unless the beneficiary designation has been
signed by the spouse and notarized.

          15.2 If an award holder is not given the right to designate a beneficiary or fails to
designate a beneficiary in accordance with the provisions of Section 15.1, or if all designated
beneficiaries predecease the award holder, payment of the holder’s awards shall be made to the
holder’s estate.

SECTION 16 Amendments and Termination

          16.1 No award shall be granted under the Plan after September 10, 2017 unless the Plan has
been reapproved by the Company’s stockholders prior to such date.

          No Performance Award shall be granted after the Company’s annual meeting held in 2012 unless
the material terms of the performance goals (within the meaning of Section 162(m) of the Code) have
been reapproved by the Company’s stockholders within the five years prior to such grant.

          16.2 The Board may discontinue the Plan at any time and may amend it from time to time.
No amendment or discontinuation of the Plan shall adversely affect any award previously granted
without the award holder’s written consent. Amendments may be made without stockholder approval
except as required to satisfy applicable laws or regulations or the requirements of any stock
exchange or market on which the Stock is listed or traded.

          16.3 The Committee may amend the terms of any award prospectively or retroactively,
subject to the limitations set forth in Section 4.2(7) hereof.

          16.4 Notwithstanding the foregoing provisions of this Section 16, the Committee shall have
the right, in its sole discretion, to amend the Plan and all outstanding awards without the consent
of stockholders or award holders to the extent the Committee determines such amendment is necessary
or appropriate to comply with Section 409A of the Code.

          16.5 Notwithstanding any other provision of the Plan or of any award, in the event of a
change in control event (as defined under Section 409A of the Code) the Committee shall have the
right, in its sole discretion, to terminate the Plan and all outstanding awards (or, to the extent
permitted under Section 409A of the Code, to terminate all awards subject to Section 409A of the
Code) and distribute amounts payable under such awards immediately prior to or within 12 months
after the occurrence of the change in control event.

SECTION 17 Change of Control

          17.1 The Committee shall have the authority to determine the extent, if any, to which
outstanding awards will become vested upon a Change of Control. In addition, to the extent
permitted under Section

 

 

409A of the Code or with respect to awards that are not subject to Section
409A of the Code, the Committee shall have discretion to accelerate the payment date of awards in
the event of a Change of Control.

          17.2 A “Change of Control” means the happening of any of the following:

          (1) the acquisition by any person or group deemed a person under Sections 3(a)(9)
and 13(d)(3) of the Exchange Act (other than the Company and its Subsidiaries as determined
immediately prior to that date and/or any of its or their employee benefit plans) of
beneficial ownership, directly or indirectly (with beneficial ownership determined as
provided in Rule 13d-3, or any successor rule, under the Exchange Act) of securities of the
Company representing 30% or more of the total combined voting power of all classes of stock
of the Company having the right under ordinary circumstances to vote at an election of the
Board;

          (2) the date on which a majority of the members of the Board shall consist of
persons other than Current Directors (which term shall mean any member of the Board on the
date of adoption of the Plan and any member of the Board whose nomination or election has
been approved by a majority of the Current Directors then on the Board);

          (3) consummation of a merger or consolidation of the Company with another
corporation where (x) the stockholders of the Company immediately prior to the merger or
consolidation would not beneficially own, immediately after the merger or consolidation,
            shares entitling such stockholders to a majority of all votes (without consideration of the
rights of any class of stock to elect directors by a separate class vote) to which all
stockholders of the corporation issuing cash or securities in the merger or consolidation
would be entitled in the election of directors in the same proportions as their ownership,
immediately prior to such merger or consolidation, of voting securities of the Company, or
(y) where the members of the Company’s board of directors, immediately prior to the merger
or consolidation, would not, immediately after the merger or consolidation, constitute a
majority of the board of directors of the corporation issuing cash or securities in the
merger or consolidation;

          (4) the sale or other disposition of all or substantially all of the assets of the
Company; or

          (5) the date of approval by the stockholders of the Company of the liquidation of
the Company.

SECTION 18 Section 409A

          18.1 All awards granted under the Plan are intended to be exempt from the requirements of
Section 409A or, if not exempt, to satisfy the requirements of Section 409A, and the provisions of
the Plan and of any award granted under the Plan shall be construed in a manner consistent
therewith.

          18.2 For purposes of Section 409A of the Code, the “specified employees” of the Company
shall be determined in such manner as may be specified by resolution of the Committee in accordance
with Section 409A of the Code.

          18.3 Notwithstanding any provision of the Plan or any award to the contrary, any amounts
payable under the Plan on account of termination of employment to an award holder who is a
“specified employee” within the meaning of Section 409A which constitute “deferred compensation”
within the meaning of Section 409A and which are otherwise scheduled to be paid during the first
six months following the award holder’s termination of employment (other than any payments that are
permitted under Section 409A to be paid within six months following termination of employment of a
specified employee) shall be suspended until the six-month anniversary of the
award holder’s termination of employment (or until the award holder’s death, if earlier), at
which time all payments that were suspended shall be paid to the award holder in a lump sum.

 

 

          18.4 A termination of employment shall not be deemed to have occurred for purposes of any
award under this Plan providing for the payment of any amounts upon or following a termination of
employment unless such termination is also a “separation from service” within the meaning of
Section 409A.

SECTION 19 General Provisions

          19.1 Each award under the Plan shall be subject to the requirement that, if at any time
the Committee shall determine that (i) the listing, registration or qualification of the Stock
subject or related thereto upon any securities exchange or market or under any state or federal
law, or (ii) the consent or approval of any government regulatory body or (iii) an agreement by the
recipient of an award with respect to the disposition of Stock, is necessary or desirable in order
to satisfy any legal requirements, or the issuance, sale or delivery of any shares of Stock is or
may in the circumstances be unlawful under the laws or regulations of any applicable jurisdiction,
the right to exercise such Stock Option or SAR shall be suspended, such award shall not be granted,
and/or the shares subject to such award will not be issued, sold or delivered, in whole or in part,
unless such listing, registration, qualification, consent, approval or agreement shall have been
effected or obtained free of any conditions not acceptable to the Committee, and the Committee
determines that the issuance, sale or delivery of the shares is lawful. The application of this
Section shall not extend the term of any Stock Option or other award. The Company shall have no
obligation to effect any registration or qualification of the Stock under federal or state laws or
to compensate the award holder for any loss caused by the implementation of this Section 19.1.

          19.2 Nothing set forth in this Plan shall prevent the Board from adopting other or
additional compensation arrangements, including arrangements providing for the issuance of Stock.
Nothing in the Plan nor any award hereunder shall confer upon any award holder any right to
continued employment or service with the Company or a Subsidiary, or interfere in any way with the
right of any such company to terminate such employment or service.

          19.3 Determinations by the Committee under the Plan relating to the form, amount, and
terms and conditions of awards need not be uniform, and may be made selectively among persons who
receive or are eligible to receive awards under the Plan, whether or not such persons are similarly
situated.

          19.4 No member of the Board or the Committee, nor any officer or employee of the Company
acting on behalf of the Board or the Committee, shall be personally liable for any action,
determination or interpretation taken or made with respect to the Plan or any award hereunder, and
all members of the Board or the Committee and all officers or employees of the Company or any
Subsidiary acting on their behalf shall, to the extent permitted by law, be fully indemnified and
protected by the Company in respect of any such action, determination or interpretation.

          19.5 Although the Company may endeavor to qualify an award for favorable tax treatment
(e.g. incentive stock options under Section 422 of the Code) or to avoid adverse tax treatment
(e.g. under Section 409A of the Code), the Company makes no representation that the desired tax
treatment will be available and expressly disclaims any liability for the failure to maintain
favorable or avoid unfavorable tax treatment.

          19.6 Neither the Plan nor any award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or Subsidiary and an
award holder, and no award holder will, by participation in the Plan, acquire any right in any
specific Company property, including any property the Company may set aside in connection with the
Plan. To the extent that any award holder acquires a right to receive payments from the Company or
any Subsidiary pursuant to an award, such right shall not be greater than the right of an unsecured
general creditor.

          19.7 All provisions under the Plan calling for the delivery of Stock certificates may be
satisfied by recording the respective person as the owner of the shares on the books of the
Company, if permitted by applicable law.

          19.8 The Plan and all awards hereunder shall be governed by the laws of the State of
Delaware without giving effect to conflict of laws principles. Any dispute arising out of any
award granted under the Plan

 

 

may be resolved in any state or federal court located within New York
County, New York State, U.S.A. Any award granted under the Plan is granted on condition that the
award holder accepts such venue and submits to the personal jurisdiction of any such court.
Similarly, the Company accepts such venue and submits to such jurisdiction.

          19.9 This Plan became effective on September 11, 2007, upon approval by the Company’s
stockholders at the 2007 annual meeting. The Plan as amended and restated became effective on
November 22, 2010 upon approval of an amendment to the Plan by the Company’s stockholders.

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