Document:

ex10_1.htm

    
      

    

    EXHIBIT
      10.1

    

    ORTHOFIX
      INTERNATIONAL N.V.

    AMENDED
      AND RESTATED

    2004
      LONG-TERM INCENTIVE PLAN

    

    
      	
              1.

            	
              Purposes
                of the Plan

            

    

    

    The
      purposes of the Plan are to provide an incentive to certain officers, employees,
      directors and consultants of the Company and its Subsidiaries to increase their
      interest in the Company's success by offering them an opportunity to obtain
      a
      proprietary interest in the Company through the grant of equity-based
      awards.

    

    
      	
              2.

            	
              Definitions
                and Rules of Construction

            

    

    

    (a)           Definitions.
      For purposes of the Plan, the following capitalized words shall have the
      meanings set forth below:

    

    "Award"
      means an Option, Restricted Share Unit, Performance Share Unit, Restricted
      Stock, Stock Appreciation Right or Other Award granted by the Committee pursuant
      to the terms of the Plan.

    

    "Award
      Document" means an agreement, certificate or other type or form of document
      or documentation approved by the Committee which sets forth the terms and
      conditions of an Award. An Award Document may be in written, electronic or
      other
      media, may be limited to a notation on the books and records of the Company
      and,
      unless the Committee requires otherwise, need not be signed by a representative
      of the Company or a Participant.

    

    "Board"
      means the Board of Directors of the Company.

    

    "CEO"
      means the Chief Executive Officer of the Company.

    

    "Code"
      means the Internal Revenue Code of 1986, as amended.

    

    "Committee"
      means the Compensation Committee of the Board or such other committee appointed
      by the Board to administer the Plan.

    

    "Common
      Shares" means the Common Shares of the Company, par value $0.10 per share,
      or such other class of shares or other securities as may be applicable under
      Section 13(b) of the Plan.

    

    "Company"
      means Orthofix International N.V. or any successor to substantially all of
      its
      business.

    

    "Effective
      Date" means the date on which the Plan is approved by the shareholders of
      the Company.

    

    "Eligible
      Individual" means an individual described in Section 4(a) of the
      Plan.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    "Exchange
      Act" means the Securities Exchange Act of 1934, as amended, and the rules
      and regulations thereunder.

    

    "Fair
      Market Value" means, as of any date that requires the determination of the
      Fair Market Value of a Common Share under this Plan or any Award Document,
      the
      value of a Common Share on such date of determination, calculated as
      follows:

    

    (a)
      If the Common Shares are then
      listed or admitted to trading on a Nasdaq market system or a stock exchange
      which reports closing sale prices, the Fair Market Value shall be the closing
      sale price on such date on such Nasdaq market system or principal stock exchange
      on which the Common Share is then listed or admitted to trading, or, if no
      closing sale price is quoted on such day, then the Fair Market Value shall
      be
      the closing sale price of the Common Share on such Nasdaq market system or
      such
      exchange on the next preceding day on which a closing sale price is
      reported;

    

    (b)
      If the Common Shares are not then
      listed or admitted to trading on a Nasdaq market system or a stock exchange
      which reports closing sale prices, the Fair Market Value shall be the average
      of
      the closing bid and asked prices of the Common Share in the over-the-counter
      market on such date; or

    

    (c)
      If neither (a) nor (b) is
      applicable as of such date, then the Fair Market Value shall be determined
      by
      the Committee in good faith using any reasonable method of evaluation, which
      determination shall be conclusive and binding on all interested
      parties.

    

    For
      the
      avoidance of doubt, when approving or authorizing an Award, the Committee can
      provide for the grant of an Award at a future date and in such event the
      determination of Fair Market Value as required under this Plan shall be as
      of
      such date of grant (or similar phrase).

    

    "Incentive
      Stock Option" means an Option that is intended to comply with the
      requirements of Section 422 of the Code or any successor provision
      thereto.

    

    "Nonqualified
      Stock Option" means an Option that is not intended to comply with the
      requirements of Section 422 of the Code or any successor provision
      thereto.

    

    "Option"
      means an Incentive Stock Option or Nonqualified Stock Option granted pursuant
      to
      Section 7 of the Plan.

    

    "Other
      Award" means any form of Award other than an Option, Restricted Share Unit,
      Performance Share Unit, Restricted Stock or Stock Appreciation Right granted
      pursuant to Section 11 of the Plan.

    

    "Participant"
      means an Eligible Individual who has been granted an Award under the
      Plan.

    

    "Performance
      Period" means the period established by the Committee and set forth in the
      applicable Award Document over which Performance Targets are
      measured.

    

    "Performance
      Share Unit" means a right to receive a Target Number of Common Shares (or
      cash, if applicable) payable at the end of a Performance Period, subject to
      the
      Participant's continued employment and the achievement of the applicable
      Performance Targets, granted pursuant to Section 9 of the Plan.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    "Performance
      Target" means the targets established by the Committee and set forth in the
      applicable Award Document.

    

    "Permitted
      Transferees" has the meaning set forth in Section 12(a) of the
      Plan.

    

    "Plan"
      means the Orthofix International N.V. Amended and Restated 2004 Long-Term
      Incentive Plan, as further amended and restated and as described
      herein.

    

    "Plan
      Limit" has the meaning set forth in Section 5(a)(iii) of
      the Plan.

    

    "Prior
      Plan" means the Orthofix International N.V. Staff Share Option
      Plan.

    

    "Restricted
      Share Unit" means a right to receive a Common Share (or cash, if applicable)
      in the future, subject to time vesting and the Participant's continued
      employment with the Company, granted pursuant to Section 8(a) of the
      Plan.

    

    "Restricted
      Stock" means Common Shares, subject to vesting (whether time or performance
      based) and the Participant’s continued employment with, or service to, the
      Company, granted pursuant to Section 8(b) of the Plan.

    

    "Stock
      Appreciation Right" means a right to receive all or some portion of the
      appreciation on Common Shares granted pursuant to Section 10 of the
      Plan.

    

    "Subsidiary"
      means (i) a domestic or foreign corporation or other entity with respect to
      which the Company, directly or indirectly, has the power, whether through the
      ownership of voting securities, by contract or otherwise, to elect at least
      a
      majority of the members of such corporation's board of directors or analogous
      governing body or (ii) any other domestic or foreign corporation or other entity
      in which the Company, directly or indirectly, has an equity or similar interest
      and which the Committee designates as a Subsidiary for purposes of the
      Plan.  For purposes of determining eligibility for the grant of
      Incentive Stock Options under the Plan, the term "Subsidiary" shall be defined
      in the manner required by Section 424(f) of the Code.

    

    "Target
      Number" means the target number of Common Shares established by the
      Committee and set forth in the applicable Award Document.

    

    (b)           Rules
      of Construction. The masculine pronoun shall be deemed to include the
      feminine pronoun and the singular form of a word shall be deemed to include
      the
      plural form, unless the context requires otherwise. Unless the text indicates
      otherwise, references to sections are to sections of the Plan.

    

    
      	
              3.

            	
              Administration

            

    

    

    (a)           Committee.
      The Plan shall be administered by the Committee, which shall have full power
      and
      authority, subject to the express provisions hereof, to:

    

    (i)           select
      the Participants from the Eligible Individuals;

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (ii)
                 grant Awards
      in accordance with the Plan;

    

    (iii)           determine
      the number of Common Shares subject to each Award or the cash amount payable
      in
      connection with an Award;

    

    (iv)           determine
      the terms and conditions of each Award, including, without limitation, those
      related to term, vesting, forfeiture, payment, settlement, exercisability,
      Performance Periods, Performance Targets, Target Numbers, and the effect, if
      any, of a Participant's termination of employment with the Company or any of
      its
      Subsidiaries or a change in control of the Company, and including the authority
      to amend the terms and conditions of an Award after the granting thereof to
      a
      Participant in a manner that is not, without the consent of the Participant,
      prejudicial to the rights of such Participant in such Award;

    

    (v)           specify
      and approve the provisions of the Award Documents delivered to Participants
      in
      connection with their Awards;

    

    (vi)          construe
      and interpret any Award Document delivered under the Plan;

    

    (vii)         prescribe,
      amend and rescind rules and procedures relating to the Plan;

    

    (viii) 
  employ
      such legal counsel,
      independent auditors and consultants as it deems desirable for the
      administration of the Plan and to rely upon any opinion or computation received
      therefrom;

    

    (ix)           vary
      the terms of Awards to take account of tax, securities law and other regulatory
      requirements of foreign jurisdictions; and

    

    (x)
                 make all other
      determinations and take any other action desirable or necessary to interpret,
      construe or implement properly the provisions of the Plan or any Award
      Document.

    

    (b)           Prohibition
      on Repricing. The Committee and/or the Board may neither (a) amend any
      Option or Stock Appreciation Right to reduce its initial exercise or grant
      price, nor (b) cancel or replace any Option or Stock Appreciation Right with
      Options or Stock Appreciation Rights having a lower exercise or grant price,
      without the approval of the shareholders of the Company.

    

    (c)           Plan
      Construction and Interpretation. The Committee shall have full power
      and authority, subject to the express provisions hereof, to construe and
      interpret the Plan.

    

    (d)           Determinations
      of Committee Final and Binding. All determinations by the Committee in
      carrying out and administering the Plan and in construing and interpreting
      the
      Plan shall be final, binding and conclusive for all purposes and upon all
      persons interested herein.

    

    (e)           Delegation
      of Authority. The Committee may designate one or more of its members or
      the Chief Executive Officer and Chief Financial Officer to carry out its
      responsibilities under such conditions or limitations as it may set, except
      that
      the Committee may not delegate its authority with regard to Awards (including
      decisions concerning the timing, pricing and amount of Common Shares subject
      to
      an Award) granted to Eligible Individuals (i) who are officers or directors
      for
      purposes of Section 16(b) of the Exchange Act or (ii) whose compensation for
      such fiscal year may be subject to the limit on deductible compensation pursuant
      to Section 162(m) of the Code.

    
      
         

      

      
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    (f)           Liability
      of Committee. No member of the Board or Committee, the CEO, or any
      officer or employee of the Company to whom any duties or responsibilities are
      delegated hereunder shall be liable for any action or determination made in
      connection with the operation, administration or interpretation of the Plan
      and
      the Company shall indemnify, defend and hold harmless each such person from
      any
      liability arising from or in connection with the Plan, except where such
      liability results directly from such person's fraud, willful misconduct or
      failure to act in good faith. In the performance of its responsibilities with
      respect to the Plan, the Committee shall be entitled to rely upon information
      and advice furnished by the Company's officers, the Company's accountants,
      the
      Company's counsel and any other party the Committee deems necessary, and no
      member of the Committee shall be liable for any action taken or not taken in
      reliance upon any such advice.

    

    (g)           Action
      by the Board. Anything in the Plan to the contrary notwithstanding, any
      authority or responsibility that, under the terms of the Plan, may be exercised
      by the Committee may alternatively be exercised by the Board.

    

    
      	
              4.

            	
              Eligibility

            

    

    

    (a)           Eligible
      Individuals. Awards may be granted to officers, employees, directors
      and consultants of the Company or any of its Subsidiaries. The Committee shall
      have the authority to select the persons to whom Awards may be granted and
      to
      determine the number and terms of Awards to be granted to each such Participant.
      Under this Plan, references to "employment," "employed," etc. include
      Participants who are consultants of the Company or its
      Subsidiaries.

    

    (b)           Grants
      to Participants. The Committee shall have no obligation to grant any
      Eligible Individual an Award or to designate an Eligible Individual as a
      Participant solely by reason of such Eligible Individual having received a
      prior
      Award or having been previously designated as a Participant. The Committee
      may
      grant more than one Award to a Participant and may designate an Eligible
      Individual as a Participant for overlapping periods of time.

    

    
      	
              5.

            	
              Common
                Shares Subject to the Plan

            

    

    

    (a)           Plan
      Limit. The maximum number of shares of Common Shares that may be
      awarded for all purposes under the Plan shall be the aggregate of:

    

    (i)           2,800,000
      shares;

    

    (ii)          the
      number of shares available for future awards under the Prior Plan as of the
      Effective Date of original shareholder approval on June 29, 2004;
      and

    

    (iii)  
  any
      shares corresponding to an
      award, or portion thereof, under the Prior Plan that is forfeited or expires
      for
      any reason without having been exercised or settled after the Effective Date
      of
      original shareholder approval on June 29, 2004 (collectively, the "Plan
      Limit").

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Shares
      issued upon exercise of Awards may be either authorized and unissued shares
      or
      shares held by the Company in its treasury.

    

    (b)           Rules
      Applicable to Determining Shares Available for Issuance. For purposes
      of determining the number of Common Shares that remain available for issuance
      under the Plan, the number of Common Shares corresponding to Awards under the
      Plan that are forfeited or expire for any reason without having been exercised
      or settled shall be added back to the Plan Limit and again be available for
      the
      grant of Awards.

    

    (c)           Special
      Limits. Anything to the contrary in Section 5(a) above notwithstanding,
      but subject to Section 13(b), the following special limits shall apply to Common
      Shares available for Awards under the Plan:

    

    (i)           the
      maximum number of Common Shares that, in the aggregate, may be subject to
      Restricted Share Units payable in Common Shares, Performance Share Units payable
      in Common Shares, Restricted Stock, and Other Awards payable in Common Shares
      shall equal 400,000 shares; provided, however, that in no event shall the number
      of Common Shares subject to Other Awards payable in Common Shares exceed 200,000
      shares;

    

    (ii)          the
      maximum number of Common Shares that may be subject to Options granted to any
      Eligible Individual in any calendar year shall equal 200,000 shares, plus any
      shares which were available under this Section 5(c)(ii) for Awards to such
      Eligible Individual in any prior calendar year but which were not covered by
      such Awards; and

    

    (iii)          the
      maximum number of Common Shares that may be subject to Restricted Share Units,
      Performance Share Units, Restricted Stock, Stock Appreciation Rights or Other
      Awards granted to any Eligible Individual in any calendar year shall equal
      200,000 shares, plus any shares which were available under this Section
      5(c)(iii) for Awards to such Eligible Individual in any prior calendar year
      but
      which were not covered by such Awards.

    

    
      	
              6.

            	
              Awards
                in General

            

    

    

    (a)           Types
      of Awards. Awards under the Plan may consist of Options, Restricted
      Share Units, Performance Share Units, Restricted Stock, Stock Appreciation
      Rights and Other Awards. Any Award described in Sections 7 through 11 of the
      Plan may be granted singly or in combination or tandem with any other Awards,
      as
      the Committee may determine. Awards under the Plan may be made in combination
      with, in replacement of, or as alternatives to awards or rights under any other
      compensation or benefit plan of the Company, including the plan of any acquired
      entity.

    

    (b)           Terms
      Set Forth in Award Document. The terms and conditions of each Award
      shall be set forth in an Award Document in a form approved by the Committee
      for
      such Award, which shall contain terms and conditions not inconsistent with
      the
      Plan. The terms of Awards may vary among Participants and the Plan does not
      impose upon the Committee any requirement to make Awards subject to uniform
      terms. Accordingly, the terms of individual Award Documents may
      vary.

    

    (c)           Minimum
      Vesting Requirements. All Awards shall be subject to the following
      minimum vesting requirements:

    
      
         

      

      
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    (i)           An
      Award that is not intended to be "performance-based compensation" (as described
      below in Section 6(g)) shall vest or the restrictions applicable to such Award
      shall lapse, as the case may be, no sooner than a rate of thirty three and
      one-third percent (33 1/3%) per year on each of the first (1st), second (2nd)
      and third (3rd) anniversaries of the date of grant; provided, however, that
      the
      exercisability of any portion of an Award relating to a fractional share shall
      be deferred until such time, if any, that such portion can be exercised as
      a
      whole Common Share.

    

    (ii)          An
      Award that is intended to be "performance-based compensation" (as described
      below in Section 6(g)) shall vest or the restrictions applicable to such Award
      shall lapse, as the case may be, no sooner than twelve (12) months following
      the
      date of grant.

    

    Notwithstanding
      any of the foregoing, the Committee may, in its sole discretion, accelerate
      the
      vesting or the lapse of restrictions of an Award in the event of a Participant's
      termination of employment or a Change in Control of the Company in accordance
      with Section 6(d).

    

    (d)           Termination
      of Employment and Change in Control. The Committee shall specify at or
      after the time of grant of an Award the provisions governing the disposition
      of
      an Award in the event of a Participant's termination of employment with the
      Company or any of its Subsidiaries. In connection with a Participant's
      termination of employment, the Committee shall have the discretion to accelerate
      the vesting, exercisability or settlement of, eliminate the restrictions and
      conditions applicable to, or extend the post-termination exercise period of
      an
      outstanding Award, which provisions may be specified in the applicable Award
      Document or determined at a subsequent time. Similarly, the Committee shall
      have
      full authority to determine the effect, if any, of a change in control of the
      Company on the vesting, exercisability, settlement, payment or lapse of
      restrictions applicable to an Award, which effect may be specified in the
      applicable Award Document or determined at a subsequent time.

    

    (e)           Dividends
      and Dividend Equivalents. The Committee may provide Participants with
      the right to receive dividends or payments equivalent to dividends or interest
      with respect to an outstanding Award, which payments can either be paid
      currently or deemed to have been reinvested in Common Shares, and can be made
      in
      Common Shares, cash or a combination thereof, as the Committee shall
      determine.

    

    (f)           Rights
      of a Shareholder. A Participant shall have no rights as a shareholder
      with respect to Common Shares covered by an Award until the date the Participant
      or his nominee becomes the holder of record of such shares. No adjustment shall
      be made for dividends or other rights for which the record date is prior to
      such
      date, except as provided in Section 13(b).

    

    (g)           Performance-Based
      Awards. The Committee may determine whether any Award under the Plan is
      intended to be "performance-based compensation" as that term is used in Section
      162(m) of the Code. Any such Awards designated to be "performance-based
      compensation" shall be conditioned on the achievement of one or more Performance
      Targets, to the extent required by Section 162(m) of the Code. The Performance
      Targets that may be used by the Committee for such Awards will be based on
      measurable and attainable financial goals for the Company, one or more of its
      operating divisions or Subsidiaries or any combination of the above such as
      net
      income, net revenue, cash flow, operating margin, operating revenue, pre-tax
      income, pre-tax operating income, operating income growth, return on assets,
      total shareholder return, share price, return on equity, diluted earnings per
      share or earnings per share growth, or a combination thereof as selected by
      the
      Committee, and quantifiable non-financial goals. Each Participant is assigned
      a
      Target Number payable if Performance Targets are achieved. If a Participant's
      performance exceeds such Participant's Performance Targets, Awards may be
      greater than the Target Number, but may not exceed 200% of such Participant's
      Target Number. The Committee retains the right to reduce any Award if it
      believes that individual performance does not warrant the Award calculated
      by
      reference to the result. In the event that all members of the Committee are
      not
      "outside directors" as that term is defined in Section 162(m) of the Code,
      the
      grant and terms of Awards intended to qualify as "performance-based
      compensation" will be made by a subcommittee of the Committee consisting of
      two
      or more "outside directors" for purposes of Section 162(m) of the
      Code.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (h)           Awards
      to Non-Employee Directors. Each member of the Board who is not an
      employee of the Company or any of its Subsidiaries shall be
      granted:

    

    (i)           an
      Award for 30,000 Common Shares on the date of such director's first election
      to
      the Board, which Award shall vest or the restrictions applicable to such Award
      shall lapse, as the case may be, at the rate of 6,000 Common Shares per year
      on
      each of the first five (5) anniversaries of the date of grant, provided that
      the
      director is still a member of the Board on each such anniversary;
      and

    

    (ii)          an
      annual Award for 3,000 Common Shares on the date of such director's re-election
      or re-appointment to the Board, which Award shall vest or the restrictions
      applicable to such Award shall lapse, as the case may be, in accordance with
      Section 6(c) above, provided that the director is still a member of the Board
      on
      the date(s) referenced in Section 6(c).

    

    Nothing
      in this Section 6(h) shall prevent additional grants of Awards to non-employee
      directors that also serve as consultants to the Company or any of its
      Subsidiaries or are executive officers of the Company.

    

    
      	
              7.

            	
              Terms
                and Conditions of Options

            

    

    

    (a)           General.
      The Committee, in its discretion, may grant Options to eligible Participants
      subject to the terms and conditions herein and shall determine whether such
      Options shall be Incentive Stock Options or Nonqualified Stock Options. Each
      Option shall be evidenced by an Award Document that shall expressly identify
      the
      Option as an Incentive Stock Option or Nonqualified Stock Option, and be in
      such
      form and contain such provisions as the Committee shall from time to time deem
      appropriate.

    

    (b)           Exercise
      Price. The exercise price of an Option shall not be less than 100% of
      the Fair Market Value per share on the date of grant. Payment of the exercise
      price of an Option shall be made in any form approved by the Committee at the
      time of grant.

    

    (c)           Term.
      An Option shall be effective for such term as shall be determined by the
      Committee and as set forth in the Award Document relating to such Option, and
      the Committee may extend the term of an Option after the time of grant;
      provided, however, that the term of an Option may in no event extend beyond
      the
      tenth anniversary of the date of grant of such Option.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (d)           Incentive
      Stock Options. The exercise price per share of an Incentive Stock
      Option may not be less than 100% of the Fair Market Value per share on the
      date
      of grant. No Incentive Stock Option may be issued pursuant to the Plan to any
      individual who, at the time the Incentive Stock Option is granted, owns stock
      possessing more than 10% of the total combined voting power of all classes
      of
      stock of the Company or any of its Subsidiaries, unless (i) the exercise price
      determined as of the date of grant is at least 110% of the Fair Market Value
      on
      the date of grant of the Common Shares subject to such Incentive Stock Option
      and (ii) the Incentive Stock Option is not exercisable more than five years
      from
      the date of grant thereof. No Participant shall be granted any Incentive Stock
      Option which would result in such Participant receiving a grant of Incentive
      Stock Options that would have an aggregate Fair Market Value in excess of
      $100,000, determined as of the time of grant, that would be exercisable for
      the
      first time by such Participant during any calendar year. The terms of any
      Incentive Stock Option granted under the Plan shall comply in all respects
      with
      the provisions of Section 422 of the Code, or any successor provision thereto,
      and any regulations promulgated thereunder.

    

    
      	
              8.

            	
              Terms
                and Conditions of Restricted Share Units and Restricted
                Stock

            

    

    

    (a)           Restricted
      Share Units. The Committee is authorized to grant Restricted Share
      Units to Eligible Individuals subject to the terms and conditions herein. A
      Restricted Share Unit shall entitle a Participant to receive, subject to the
      terms, conditions and restrictions set forth in the Plan and applicable Award
      Document, one or more Common Shares in consideration of the Participant's
      employment with the Company or any of its Subsidiaries. If and when the
      forfeiture provisions lapse, the Restricted Share Units shall become Common
      Shares owned by the corresponding Participant or, at the sole discretion of
      the
      Committee, cash, or a combination of cash and Common Shares, with a value equal
      to the Fair Market Value of the shares at the time of payment.

    

    (b)           Restricted
      Stock. The Committee is authorized to grant Restricted Stock to
      Eligible Individuals subject to the terms and conditions herein.  Each
      grant of Restricted Stock shall be subject to the terms, conditions and
      restrictions set forth in the applicable Award Document, which shall specify
      the
      conditions upon which are conditioned the grant, vesting or issuance of
      Restricted Stock and the purchase price of the Restricted Stock (if
      any).

    

    
      	
              9.

            	
              Terms
                and Conditions of Performance Share
                Units

            

    

    

    The
      Committee is authorized to grant Performance Share Units to Eligible Individuals
      subject to the terms and conditions herein. A Performance Share Unit shall
      entitle a Participant to receive, subject to the terms, conditions and
      restrictions set forth in the Plan and applicable Award Document, a Target
      Number of Common Shares based upon the achievement of Performance Targets over
      the applicable Performance Period. At the sole discretion of the Committee,
      Performance Share Units shall be settled through the delivery of Common Shares
      or cash, or a combination of cash and Common Shares, with a value equal to
      the
      Fair Market Value of the Common Shares as of the last day of the applicable
      Performance Period.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
              10.

            	
              Stock
                Appreciation Rights

            

    

    

    (a)           General.
      The Committee is authorized to grant Stock Appreciation Rights to Eligible
      Individuals subject to the terms and conditions herein. A Stock Appreciation
      Right shall entitle a Participant to receive, upon satisfaction of the
      conditions to payment specified in the applicable Award Document, an amount
      equal to the excess, if any, of the Fair Market Value on the exercise date
      of
      the number of Common Shares for which the Stock Appreciation Right is exercised,
      over the exercise price for such Stock Appreciation Right specified in the
      applicable Award Document. The exercise price per share of Common Shares covered
      by a Stock Appreciation Right shall be fixed by the Committee at the time of
      grant or, alternatively, shall be determined by a method specified by the
      Committee at the time of grant, provided, however, that the exercise price
      of a
      Stock Appreciation Right shall not be less than 100% of the Fair Market Value
      per share on the date of grant. At the sole discretion of the Committee,
      payments to a Participant upon exercise of a Stock Appreciation Right may be
      made in cash or Common Shares, or in a combination of cash and Common Shares,
      having an aggregate Fair Market Value as of the date of exercise equal to such
      cash amount. No Award of a Stock Appreciation Right shall extend beyond the
      tenth anniversary of its date of grant.

    

    (b)           Stock
      Appreciation Rights in Tandem with Options. A Stock Appreciation Right
      granted in tandem with an Option may be granted either at the same time as
      such
      Option or subsequent thereto. If granted in tandem with an Option, a Stock
      Appreciation Right shall cover the same number of Common Shares as covered
      by
      the Option (or such lesser number of shares as the Committee may determine)
      and
      shall be exercisable only at such time or times and to the extent the related
      Option shall be exercisable, and shall have the same term and exercise price
      as
      the related Option. Upon exercise of a Stock Appreciation Right granted in
      tandem with an Option, the related Option shall be canceled automatically to
      the
      extent of the number of shares covered by such exercise; conversely, if the
      related Option is exercised as to some or all of the shares covered by the
      tandem grant, the tandem Stock Appreciation Right shall be canceled
      automatically to the extent of the number of shares covered by the Option
      exercise.

    

    
      	
              11.

            	
              Other
                Awards

            

    

    

    Subject
      to the terms and conditions herein, the Committee shall have the authority
      to
      specify the terms and provisions of other forms of equity-based or
      equity-related Awards not described above that the Committee determines to
      be
      consistent with the purpose of the Plan and the interests of the Company, which
      Awards may provide for cash payments based in whole or in part on the value
      or
      future value of Common Shares, for the acquisition or future acquisition of
      Common Shares, or any combination thereof.

    

    
      	
              12.

            	
              Certain
                Restrictions

            

    

    

    (a)           Transfers.
      Unless the Committee determines otherwise on or after the date of grant, no
      Award shall be transferable other than by will or by the laws of descent and
      distribution or pursuant to a domestic relations order; provided, however,
      that
      the Committee may, in its discretion and subject to such terms and conditions
      as
      it shall specify, permit the transfer of an Award for no consideration to a
      Participant's family members or to one or more trusts or partnerships
      established in whole or in part for the benefit of one or more of such family
      members (collectively, "Permitted Transferees"). Any Award transferred to
      a Permitted Transferee shall be further transferable only by will or the laws
      of
      descent and distribution or, for no consideration, to another Permitted
      Transferee of the Participant. The Committee may in its discretion permit
      transfers of Awards other than those contemplated by this Section
      12(a).

    

    (b)           Award
      Exercisable Only by Participant. During the lifetime of a Participant,
      an Award shall be exercisable only by the Participant or by a Permitted
      Transferee to whom such Award has been transferred in accordance with Section
      12(a). The grant of an Award shall impose no obligation on a Participant to
      exercise or settle the Award.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	
              13.

            	
              Recapitalization
                or Reorganization

            

    

    

    (a)           Authority
      of the Company and Shareholders. The existence of the Plan, the Award
      Documents and the Awards granted hereunder shall not affect or restrict in
      any
      way the right or power of the Company or the shareholders of the Company to
      make
      or authorize any adjustment, recapitalization, reorganization or other change
      in
      the Company's capital structure or business, any merger or consolidation of
      the
      Company, any issue of stock or of options, warrants or rights to purchase stock
      or of bonds, debentures, preferred or prior preference stocks whose rights
      are
      superior to or affect the Common Shares or the rights thereof or which are
      convertible into or exchangeable for Common Shares, or the dissolution or
      liquidation of the Company, or any sale or transfer of all or any part of its
      assets or business, or any other corporate act or proceeding, whether of a
      similar character or otherwise.

    

    (b)           Change
      in Capitalization. Notwithstanding any provision of the Plan or any
      Award Document, the number and kind of shares authorized for issuance under
      Section 5, including the maximum number of shares available under the special
      limits provided for in Section 5(c), may be equitably adjusted in the sole
      discretion of the Committee in the event of a stock split, stock dividend,
      recapitalization, reorganization, merger, consolidation, extraordinary dividend,
      split-up, spin-off, combination, exchange of shares, warrants or rights offering
      to purchase Common Shares at a price substantially below Fair Market Value
      or
      other similar corporate event affecting the Common Shares in order to preserve,
      but not increase, the benefits or potential benefits intended to be made
      available under the Plan. In addition, upon the occurrence of any of the
      foregoing events, the number of outstanding Awards and the number and kind
      of
      shares subject to any outstanding Award and the exercise price per share, if
      any, under any outstanding Award may be equitably adjusted (including by payment
      of cash to a Participant) in the sole discretion of the Committee in order
      to
      preserve the benefits or potential benefits intended to be made available to
      Participants granted Awards. Such adjustments shall be made by the Committee,
      in
      its sole discretion, whose determination as to what adjustments shall be made,
      and the extent thereof, shall be final. Unless otherwise determined by the
      Committee, such adjusted Awards shall be subject to the same restrictions and
      vesting or settlement schedule to which the underlying Award is
      subject.

    

    
      	
              14.

            	
              Term
                of the Plan

            

    

    

    Unless
      earlier terminated pursuant to Section 16, the Plan shall terminate on the
      10th
      anniversary of the Effective Date, except with respect to Awards then
      outstanding. No Awards may be granted under the Plan after the 10th anniversary
      of the Effective Date.

    

    
      	
              15.

            	
              Effective
                Date

            

    

    

    The
      Plan
      shall become effective on the Effective Date; provided, however, that, if the
      Plan is not approved by the shareholders upon submission to them for approval,
      the Plan shall be void ab initio and of no further force and
      effect.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
              16.

            	
              Amendment
                and Termination

            

    

    

    Notwithstanding
      anything herein to the contrary, the Board may, at any time, terminate or,
      from
      time to time, amend, modify or suspend the Plan; provided, however, that no
      termination, amendment, modification or suspension of the Plan shall materially
      and adversely alter or impair the rights of a Participant in any Award
      previously made under the Plan without the consent of the holder thereof except
      as otherwise provided in Section 19, and no amendment which increases the Plan
      Limit shall be effective without shareholder approval.

    

    
      	
              17.

            	
              Electronic
                Administration

            

    

    

    Notwithstanding
      anything to the contrary contained in the Plan, Award Documents, notices and
      other elections under this Plan may be delivered or made electronically, in
      the
      discretion of the Committee. In addition, in the discretion of the Committee,
      shares otherwise deliverable under the Plan may be delivered or otherwise
      evidenced through book entry or other electronic format without the need to
      deliver an actual share certificate; provided, however, an actual share
      certificate shall be delivered if requested by the Participant.

    

    
      	
              18.

            	
              Miscellaneous

            

    

    

    (a)           Tax
      Withholding. The Company or a Subsidiary, as appropriate, may require
      any individual entitled to receive a payment in respect of an Award to remit
      to
      the Company, prior to such payment, an amount sufficient to satisfy any
      applicable tax withholding requirements. In the case of an Award payable in
      Common Shares, the Company or a Subsidiary, as appropriate, may permit such
      individual to satisfy, in whole or in part, such obligation to remit taxes
      by
      directing the Company to withhold shares that would otherwise be received by
      such individual or to repurchase shares that were issued to such individual
      to
      satisfy the minimum statutory withholding rates for any applicable tax
      withholding purposes, in accordance with all applicable laws and pursuant to
      such rules as the Committee may establish from time to time. The Company or
      a
      Subsidiary, as appropriate, shall also have the right to deduct from all cash
      payments made to a Participant (whether or not such payment is made in
      connection with an Award) any applicable taxes required to be withheld with
      respect to such payments.

    

    (b)           No
      Right to Awards or Employment. No person shall have any claim or right
      to receive Awards under the Plan. Neither the Plan, the grant of Awards under
      the Plan, nor any action taken or omitted to be taken under the Plan shall
      be
      deemed to create or confer on any Eligible Individual any right to be retained
      in the employ of the Company or any Subsidiary or other affiliate thereof,
      or to
      interfere with or to limit in any way the right of the Company or any Subsidiary
      or other affiliate thereof to terminate the employment of such Eligible
      Individual at any time.

    

    (c)           Section
      16(b) of the Exchange Act. The Plan is intended to comply in all
      respects with Section 16(b) of the Exchange Act. Notwithstanding anything
      contained in the Plan or any Award Document under the Plan to the contrary,
      if
      the consummation of any transaction under the Plan, or the taking of any action
      by the Committee in connection with a change in control of the Company, would
      result in the possible imposition of liability on a Participant pursuant to
      Section 16(b) of the Exchange Act, the Committee shall have the right, in its
      sole discretion, but shall not be obligated, to defer such transaction or the
      effectiveness of such action to the extent necessary to avoid such liability,
      but in no event for a period longer than 180 days.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (d)           Section
      162(m) of the Code.  The Plan is intended to comply in all
      respects with Section 162(m) of the Code.

    

    (e)           Awards
      to Individuals Subject to Non-U.S. Jurisdictions. To the extent that
      Awards under the Plan are awarded to individuals who are domiciled or resident
      outside of the United States or to persons who are domiciled or resident in
      the
      United States but who are subject to the tax laws of a jurisdiction outside
      of
      the United States, the Committee may adjust the terms of the Awards granted
      hereunder to such persons (i) to comply with the laws of such jurisdiction
      and
      (ii) to permit the grant of the Award not to be a taxable event to the
      Participant. The authority granted under the previous sentence shall include
      the
      discretion for the Committee to adopt, on behalf of the Company, one or more
      sub-plans applicable to separate classes of Eligible Individuals who are subject
      to the laws of jurisdictions outside of the United States.

    

    (f)           Securities
      Law Restrictions. An Award may not be exercised or settled and no
      Common Shares may be issued in connection with an Award unless the issuance
      of
      such shares has been registered under the Securities Act of 1933, as amended,
      and qualified under applicable state "blue sky" laws and any applicable foreign
      securities laws, or the Company has determined that an exemption from
      registration and from qualification under such state "blue sky" laws is
      available. The Committee may require each Participant purchasing or acquiring
      Common Shares pursuant to an Award under the Plan to represent to and agree
      with
      the Company in writing that such Eligible Individual is acquiring the Common
      Shares for investment purposes and not with a view to the distribution thereof.
      All certificates for Common Shares delivered under the Plan shall be subject
      to
      such stock-transfer orders and other restrictions as the Committee may deem
      advisable under the rules, regulations, and other requirements of the Securities
      and Exchange Commission, any exchange upon which the Common Shares are then
      listed, and any applicable securities law, and the Committee may cause a legend
      or legends to be put on any such certificates to make appropriate reference
      to
      such restrictions.

    

    (g)           Award
      Document. In the event of any conflict or inconsistency between the
      Plan and any Award Document, the Plan shall govern and the Award Document shall
      be interpreted to minimize or eliminate any such conflict or
      inconsistency.

    

    (h)           Application
      of Funds. The proceeds received by the Company from the sale of Common
      Shares pursuant to Awards will be used for general corporate
      purposes.

    

    (i)           Governing
      Law. The Plan and all agreements entered into under the Plan shall be
      construed in accordance with and governed by the laws of the State of New York
      and without giving effect to principles of conflicts of laws.

    

    (j)           No
      Employment Relationship. For purposes of this Plan, any Award Document
      or any applicable law, rule or regulation, under all circumstances consultants
      shall be independent contractors and not employees of the Company or any of
      its
      Subsidiaries, as applicable.  With respect to consultants,
      notwithstanding the last sentence of Section 4(a) or any similar concept
      embodied herein, nothing in this Plan or in any Award Document shall imply
      or
      create any employer-employee relationship between the Company or any of its
      Subsidiaries and any consultant (whether as an Eligible
      Individual,  Participant or otherwise), nor entitle such consultant to
      any rights or benefits otherwise available to employees of the Company or any
      of
      its Subsidiaries.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
              19.

            	
              Compliance
                with Code Section 409A

            

    

    

    To
      the
      extent that the Committee determines that any Award granted under the Plan
      is
      subject to Code Section 409A, the applicable Award Documents shall incorporate
      the terms and conditions necessary to avoid the consequences specified in Code
      Section 409A(a)(1).  To the extent applicable, the Plan and Award
      Documents shall be interpreted and construed in compliance with Code Section
      409A and Department of Treasury regulations and other interpretive guidance
      issued thereunder.  Notwithstanding any provision of the Plan to the
      contrary other than Section 16, in the event that the Board determines that
      any
      Award may be subject to Code Section 409A, the Board may, without the consent
      of
      Participants, including the affected Participant, adopt such amendments to
      the
      Plan and the applicable Award Documents or adopt other policies and procedures
      (including amendments, policies and procedures with retroactive effect), or
      take
      any other actions, that the Board determines are necessary or appropriate to
      (i)
      exempt the Award from Code Section 409A or (ii) comply with the requirements
      of
      Code Section 409A and Department of Treasury regulations and other interpretive
      guidance issued thereunder.

    

    
14Unassociated Document

    

     

    
      	
              NUMBER

            	 	
              SHARES

            
	
               

            	
               

            	
               

            
	
              CMPS

            	 	 

    

    

     

    CAMPUSU,
      INC.

     

    INCORPORATED
      UNDER THE LAWS OF DELAWARE

     

    COMMON
      STOCK

     

    SEE
      REVERSE FOR

    CERTAIN
      DEFINITIONS

     

     

    
      	
              This
                Certifies that

            	
              CUSIP
                _________________

            
	
               

            	
               

            
	
               

            	
               

            
	
              is
                the owner of

            	 

    

    

     

     

    FULLY
      PAID AND NON-ASSESSABLE SHARES OF THE PAR VALUE OF $.0001 EACH OF THE COMMON
      STOCK OF

     

    CAMPUSU,
      INC.

     

    transferable
      on the books of the Corporation in person or by duly authorized attorney upon
      surrender of this certificate properly endorsed. This certificate is not valid
      unless countersigned by the Transfer Agent and registered by the Registrar.
      Witness the seal of the Corporation and the facsimile signatures of its duly
      authorized officers.

     

    
      	
              Dated:

            	
              CampusU,
                Inc.

            	 
	 	
              CORPORATE

            	 
	 	
              SEAL

            	 
	 	
              2006

            	 
	
              PRESIDENT

            	 	
              SECRETARY

            
	 	
              THE
                STATE OF 

              DELAWARE

            	 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    The
      following abbreviations, when used in the inscription on the face of this
      certificate, shall be construed as though they were written out in full
      according to applicable laws or regulations:

     

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	 	
              UNIF
                GIFT MIN ACT 

            	 	
              Custodian

            	 	 
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 	 	
              (Cust)

            	 	
              (Minor)

            	 
	
              JT
                TEN -

            	
              as
                joint tenants with right of survivorship

            	 	 	
              under
                Uniform Gifts to Minors Act

            
	 	
              and
                not as tenants in common

            	 	 	 	 	 
	 	 	 	 	 	
              (State)

            	 
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

    

     

    Additional
      Abbreviations may also be used though not in the above list.

     

    CampusU,
      Inc.

     

    The
      Corporation will furnish without charge to each stockholder who so requests
      the
      powers, designations, preferences and relative, participating, optional or
      other
      special rights of each class of stock or series thereof of the Corporation
      and
      the qualifications, limitations, or restrictions of such preferences and/or
      rights.  This certificate and the shares represented thereby are issued and
      shall be held subject to all the provisions of the Certificate of Incorporation
      and all amendments thereto and resolutions of the Board of Directors providing
      for the issue of shares of Preferred Stock (copies of which may be obtained
      from
      the secretary of the Corporation), to all of which the holder of this
      certificate by acceptance hereof assents.

     

    For
      value received,
                                                               
hereby sell, assign and transfer unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER

    IDENTIFYING
      NUMBER OF ASSIGNEE

     

    
      	
               

            
	
              (PLEASE
                PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
                ASSIGNEE)

            
	
               

            
	
               

            
	
              shares

            
	
               

            
	
              of
                the capital stock represented by the within Certificate, and do hereby
                irrevocably constitute and appoint

            
	
               

            
	
              Attorney

            
	
              to
                transfer the said stock on the books of the within named Corporation
                will
                full power of substitution in the
                premises.

            

    

    

     

    
      	
              Dated

            	 	 	 
	
               

            	
               

            
	 	
              Notice:  
                The signature to this assignment must correspond with the name as
                written
                upon the face of the certificate in every particular, without alteration
                or enlargement or any change whatever.

            
	
               

            	
               

            
	
              Signature(s)
                Guaranteed:

            	 
	
               

            	
               

            
	
               

            	
               

            
	
              THE
                SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
                (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS
                WITH
                MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM,
                PURSUANT
                TO S.E.C. RULE 17Ad-15).

            	 
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

    

     

    The
      holder of this certificate shall be entitled to receive funds from the trust
      fund only in the event that Viceroy is liquidated because it does not consummate
      a business combination or the holder seeks to convert his respective shares
      into
      cash upon a business combination which he voted against and which is actually
      completed by the Company.  In no other circumstances shall the holder have
      any right or interest of any kind in or to the trust fund.

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