Document:

***TEXT OMITTED AND FILED SEPARATELY.  CONFIDENTIAL TREATMENT REQUESTED BY HYPERFEED
TECHNOLOGIES, INC. UNDER 17 C.F.R. SECTIONS 200.80(b)(4) AND 200.83 AND UNDER
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

Exhibit 10.1

 

HYPERFEED
TECHNOLOGIES, INC.,

MONEYLINE
TELERATE, and

REUTERS
LIMITED

TRADING
ROOM SYSTEM SOFTWARE AND DESKTOP LICENSE AGREEMENT

 

 

	
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:
  HYPERFEED TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Paul Pluschkell

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  PAUL
  PLUSCHKELL

  
	
  TITLE:

  	
  CEO

  
	
   

  	
   

  
	
  DATE:

  	
  MAY
  20, 2005

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
  MONEYLINE
  TELERATE

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Adam Ableman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  ADAM
  ABLEMAN

  
	
  TITLE:

  	
  GENERAL
  COUNSEL

  
	
   

  	
   

  
	
  DATE:

  	
  MAY
  20, 2005

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BY:

  	
  REUTERS
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Rosemary Martin

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  ROSEMARY
  MARTIN

  
	
  TITLE:

  	
  GENERAL
  COUNSEL AND COMPANY SECRETARY

  
	
   

  	
   

  
	
  DATE:

  	
  MAY
  20, 2005

  
					

 

 

THIS TRADING ROOM SYSTEM SOFTWARE LICENSE AGREEMENT
(this “Agreement”) is entered into on May
[Date], 2005, by and between Moneyline Telerate, a Delaware corporation (“Licensor”), Reuters Limited, a corporation organized under
the laws of England and Wales (“Reuters”) and
HyperFeed Technologies, Inc., a Delaware corporation (“Licensee”).

 

WHEREAS, Licensor wishes to grant a license pursuant
to the terms set forth below and Licensee wishes to obtain that license;

 

NOW, THEREFORE, the
Parties (as defined below) agree as follows:

 

1.                                      DEFINITIONS

 

“Acquisition Agreement” shall
have the meaning set forth in Section 15.8.

 

“Active8 Software” means
the source code of version 2.11 of the Telerate Active8 software excluding any
remote update facility and modified to work only with the TRS Software and to
remove all references to the term “Active8” or any other Licensor trademark or
any term similarly confusing thereto.

 

“Additional Services” shall
have the meaning set forth in section 6.4.

 

“Agreement”
shall have the meaning set forth in the preamble to this agreement.

 

“Client API”
means any sub-component of the TRS Software which has been made generally
available by Licensor to customers of the system for the purpose of building
applications which can indirectly communicate with the infrastructure
components without the direct use of protocols and semantics which are
proprietary to the TRS Software.

 

“Customer Deployment”
means a Licensee Platform that is physically located in a location owned or
leased by Licensee’s customer.

 

“Damages” means
any losses, damages, fees, costs (including reasonable attorney’s fees) or
liabilities as further set forth herein.

 

“Delivery Date”
means the date on which the TRS Software has been delivered to the Site, such
date not to occur before the Effective Date.

 

“Derivative Works” shall
have the meaning set forth in 17 USC Section 101.

 

“Documentation”
means, as the context requires, the pre-existing user, and system documentation
for the Software including any copies of any of the above.

 

“Effective
Date” has the meaning set forth in Section 15.10.

 

“Fee” shall
have the meaning set forth in Section 5.1.

 

“Feedhandler”
means an application sub-component of the Licensee Platform external to the
infrastructure components that indirectly publishes data into the
infrastructure via the Client API.  Each
file within a Feedhandler must contain at least one string with the reference “Hyperfeed”
in it and any executable file of each Feedhandler must include a “command line”
switch option to obtain the version information which states that “Hyperfeed”
is the licensor.

 

“Licensee Desktop”
means the object or executable code form of the Active8 Software and any
Derivative Works Licensee creates pursuant to Section 4.3 of this Agreement.

 

“Licensee Platform” means
the object or executable code form of the TRS Software and any Derivative Works
Licensee creates pursuant to this Agreement.

 

“Managed Deployment”
means a Licensee Platform that is hosted and/or managed by Licensee for
Licensee’s customer on a one to one basis.

 

“Reference
Platform” means Sun Microsystems SPARC hardware running the Solaris
2.6 operating system.

 

“Schedule” means
any schedule attached to this Agreement.

 

“Shared Deployment”
means a Licensee Platform that is hosted and/or managed by Licensee for
multiple Licensee customers.

 

“Site” means
the site, set out in Schedule A, where Licensor shall deliver the Software.

 

“Software”
means the TRS Software, Active8 Software and the Licensee Desktop as of the
date of delivery to Licensee

 

“Sublicensee” means
any third party who receives a limited non-transferable license to the Licensee
Platform or Licensee Desktop.

 

“Telerate
Active8” means the object code of the Telerate Active8 software.

 

“Territory”
shall have the meaning set forth in Section 4.6.

 

“Transaction” means
the transaction contemplated by the Acquisition Agreement.

 

“TRS Software”
means the source and object code forms of the computer programs set out in Schedule
A.

 

2.                                      TERM

 

2.1.                              All
licenses granted by Licensor under this Agreement shall be for the term stated,
subject to earlier termination in accordance with the terms and conditions as
set forth herein.

 

3.                                      DELIVERY

 

3.1.                              Licensor
shall deliver the TRS Software to the Site on the Delivery Date.

 

3.2.                              Licensee
agrees to prepare, at Licensee’s expense, a suitable area at the Site for the
TRS Software in accordance with reasonable instructions to be furnished by
Licensor to Licensee a reasonable time prior to the Delivery Date.

 

3.3.                              Licensee
shall acknowledge in writing within five days after the Software or the
relevant part has been delivered to the Site. 
If Licensee does not furnish such acknowledgement within five days, the
Software or relevant part shall be deemed to have been delivered.

 

3.4.                              Licensor
shall certify in writing to Licensee when delivery of the Software has been
completed.

 

4.                                      LICENSES

 

4.1.                              Licensor hereby grants to Licensee a
perpetual, exclusive (except as set forth in Sections 4.6 and 4.11) license in
the Territory, effective as of the Effective Date, to use the TRS Software and
Documentation and modify the TRS Software, in source code form, to create
Derivative Works,

2

 

and
to manufacture, reproduce, and have reproduced such Derivative Works.

 

4.2.                              Licensor
hereby grants to Licensee a perpetual, 
exclusive (except as set forth in Sections 4.6 and 4.11) license effective as of the Effective Date, to
distribute and sublicense the TRS Software and/or Licensee Platform, together
with Documentation related thereto, as part of a software platform for the
distribution of market data in a Customer Deployment, Managed Deployment or
Shared Deployment model that permits users and applications to either publish
market data to the platform and/or subscribe to market data from the platform,
for use within the Territory.

 

4.3.                              Licensor
hereby grants to Licensee a perpetual
license in the Territory to use the Active8 Software and modify the Active8
Software to create Derivative Works, and to manufacture, reproduce, and have
reproduced such Derivative Works.  The
license granted in this Section 4.3 shall be exclusive (except as set forth in
Sections 4.6 and 4.11) to Licensee for a period of two years from the Effective
Date, except that Licensor shall have the rights to grant similar licenses with
respect to the Active8 Software in connection with sales of all or any portion
of its or its Affiliates’ business.

 

4.4.                              Licensor
hereby grants to Licensee a perpetual, non-exclusive license, effective as of the Effective Date, to
distribute and sublicense the Licensee Desktop together with any Documentation
related thereto, for use within the Territory. Each sublicense to the Licensee
Desktop may only be granted in connection with a license to the Licensee
Platform and only for use to connect to the Licensee Platform.

 

4.5.                              Licensee
shall require each Sublicensee to enter an agreement that protects Licensor’s
rights in substantially the same manner set forth in this Agreement.

 

4.6.                              The
“Territory” shall be global, excluding each region listed in Schedule B for so
long as the exclusive nature of the corresponding agreement specified therein
remains in effect as to TRS Software or Telerate Active8; provided that upon
expiration or termination of such agreement or such exclusive nature, the “Territory”
shall include such corresponding region. 
***

 

4.7.                              Licensee
may license Feedhandlers to existing customers of Licensor for use with the TRS
Software in object code form supplied to those customers by Licensor.  Where Licensor makes an update to the Client
API generally available, it will make that update available to Licensee. Other
than Feedhandlers, Licensee shall not sell or license any individual components
of the Licensee Platform to existing customers of Licensor for use with
software supplied to those customers by Licensor, unless Licensee, by
contracting directly with that customer, assumes full responsibility for
supporting the TRS Software in object code form provided to that customer by
Licensor.

 

4.8.                              Nothing
in this Agreement shall be construed as preventing either party from providing
source code of the TRS Software or Active8 Software to an escrow agent pursuant
to a standard source code escrow agreement.

 

4.9.                              Licensee
shall be responsible for obtaining third party licenses, to the degree any are
necessary to use the Software, Licensee Desktop or Licensee Platform.  Upon request by Licensee, Licensor shall
provide reasonable assistance in facilitating Licensee’s procurement of such
third party licenses.  Attached hereto as
Schedule C is a true and correct list of all third party licenses that are
required to use the Software on the Delivery Date.

 

4.10.                        No
trademark license is conferred under this Agreement.  Licensee shall, however, have the right to
disclose to third parties that Licensee Platform and Licensee Desktop are based
on TRS or Telerate’s Active8 technology, as appropriate, provided that, in each
instance, there is a statement made in close proximity and of equal size and
font that the Licensee Platform and Licensee Desktop are not Reuters products
and are not supported by Reuters.

 

4.11.                        Nothing
in this Agreement shall be construed as preventing Licensor from making, using,
selling or otherwise exploiting the Software or Documentation for its own
benefit, however, Licensor agrees that it shall not grant rights similar to
those granted in Section 4.1 in a general public license.

 

5.                                      FEES

 

5.1.                              Licensee
agrees to pay to Licensor a fee for the licenses set forth herein and support
and maintenance (the “Fee”) as set
forth on Schedule D.

 

5.2.                              Licensee
agrees to pay Licensor one-half of the cost reasonably incurred by Licensor in
making the modifications set forth in the definition of the Active8 Software
and otherwise preparing the Active8 Software for Licensee.  Licensee’s share of this cost shall not
exceed $50,000.  Licensor shall provide
Licensee with necessary documentation to evidence the costs incurred in such
actions.

 

5.3.                              Licensor
will promptly provide Licensee a written invoice providing reasonable detail of
any expenses properly incurred by Licensor under this Agreement.

 

5.4.                              Licensee
will pay any sums due by Licensee to Licensor under this Agreement in full,
without any right to set-off or deduction, within 30 days of the date of the
relevant invoice.  If
any tax in the nature of withholding tax is payable on any sums invoiced under
this Agreement, Licensee will pay Licensor such amount as is necessary to
ensure that the net amount received by Licensor after such withholding shall be
equal to the amount invoiced.

 

5.5.                              Licensee
will be responsible for all applicable sales, use, value added or similar taxes
or taxes payable with respect to the provision of the Software, the Licensee
Platform or Licensee Desktop, or arising out of or in connection with this
Agreement, other than taxes based upon Licensor’s income.  If Licensor pays any such taxes on Licensee’s
behalf Licensee agrees to reimburse Licensor for such payment.

 

5.6.                              If
Licensee fails to pay any amounts invoiced under this Agreement in full within
the time period specified in Section 5, Licensee will be liable to pay Licensor
interest at the rate of 1.5% per month on the remaining amount due, such
interest to accrue on a daily basis from the due date until actual payment.

 

3

 

6.                                      SUPPORT
AND MAINTENANCE

 

6.1.                              Licensor
will provide commercially reasonable support and maintenance necessary to
compile the source code and generate version 4.6 of the TRS Software
executables (other than the TRS Optional Components, but including
Observer/Observer+) to be run on the Reference Platform, which may include
training for a limited number of Licensee representatives.  Thereafter, Licensor will provide
commercially reasonable, limited support, to be agreed between the parties in
good faith.  The entire period of support
will extend from the Delivery Date until the end of the sixth month after the
Delivery Date.  Each party will provide a
single point of contact for all services provided under this Agreement.

 

6.2.                              Licensee
will reimburse Licensor for all costs reasonably incurred in connection with
training, including reasonable travel expenses.

 

6.3.                              Licensee
will not be entitled to any further software, developments, improvements or
other alterations made after the Delivery Date.

 

6.4.                              For
a period of two years after Licensor’s support obligation under Section 6.1 has
expired, Licensee may wish to purchase additional services from Licensor (each,
an “Additional Service”).  In that instance, Licensee shall provide
reasonably detailed written notice setting forth the proposed Additional
Service.  Within ten (10) Business Days
of receipt of such notice, Licensor will notify the requesting party whether it
agrees to provide the proposed Additional Service and if so, any requirements
necessary in order to provide the proposed Additional Service.  If the parties agree, they shall create a
schedule for each Additional Service setting forth a description of such
Additional Service, the time period during which such Additional Service will
be provided, the reasonable charge, if any, for such Additional Service and any
other terms applicable thereto.  Licensor’s
decision whether to provide any Additional Service under this Section 6.4 shall
be made in its sole discretion; nothing in this Agreement shall be construed to
obligate Licensor to provide any Additional Service under this Section 6.4.

 

6.5.                              Under
no circumstances is Licensor responsible for support of any Derivative Works
created from the Software.

 

6.6.                              Nothing
in this Agreement shall be construed to obligate Licensor to create any
addition or supplement to the Documentation.

 

6.7.                              As soon as reasonably practicable following
the Effective Date, but not later than one week after the Effective Date,
Licensor shall deliver to Licensee a copy of the TRS Software.  As soon as reasonably practicable following
the Effective Date, but not later than one month after the Effective Date,
Licensor shall deliver to Licensee a copy of the Licensee Desktop; provided
that Licensor shall endeavor to provide Licensee with a version of the Licensee
Desktop to be used for demonstration purposes only, and not for dissemination
to third parties, by June 15, 2005.  As
soon as reasonably practicable following the Effective Date, but not later than
three months after the Effective Date, Licensor shall deliver to Licensee a
copy of the Active8 Software.

 

7.                                      PROPRIETARY
RIGHTS, TITLE AND DERIVATIVE WORKS

 

7.1.                              Licensee
acknowledges and agrees that the copyright, patent, trade secret, trademark and
all other intellectual property rights of whatever nature in the Software, and
Documentation are and will remain the property of Licensor, and nothing in this
Agreement should be construed as transferring any aspects of such rights to
Licensee or any third party, other than specifically set forth herein.

 

7.2.                              Title
in the Software and Documentation will remain with Licensor at all times.  Licensee will not allow the Software or
Documentation to become the subject of any lien, encumbrance or mortgage.

 

7.3                                 Notwithstanding anything to the
foregoing, Licensee shall retain all rights in and to the material it
contributes to any Derivative Works created pursuant to this Agreement, and
Licensor shall have no rights thereto.

 

8.                                      WARRANTY

 

8.1.                              Licensor
warrants to Licensee that:  (a) Licensor
has the right to perform its obligations set forth under this Agreement and in
particular to grant the licenses hereunder; (b) 
Licensor is the sole and exclusive owner of all right, title and
interest in and to, or has valid and continuing rights to use, sell, license or
transfer, as the case may be, the Software free and clear of all encumbrances
or obligations to others; and (c) the use, practice or other commercial
exploitation of the Software does not infringe or violate any patent, copyright
or trade secret.

 

8.2.                              Licensor
represents and warrants that Tables 1 and 2 of Schedule A is a complete list of
the components of the standard software platform marketed by Licensor as the
Telerate Trading Room System as it is provided to customers by Telerate as of
the Effective Date.

 

8.3.                              THE
WARRANTIES SET FORTH IN THIS AGREEMENT ARE LIMITED WARRANTIES AND ARE THE ONLY
WARRANTIES MADE BY LICENSOR.  LICENSOR
EXPRESSLY EXCLUDES ALL OTHER WARRANTIES EXPRESS OR IMPLIED INCLUDING WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  LICENSOR DOES NOT WARRANT THAT THE SYSTEM
WILL MEET LICENSEE’S REQUIREMENTS OR THAT THE OPERATION OF THE SYSTEM WILL BE
UNINTERRUPTED OR ERROR FREE, OR THAT ALL ERRORS OR DEFECTS IN THE SYSTEM CAN BE
CORRECTED. THE SYSTEM IS PROVIDED “AS IS” AND “WITH ALL FAULTS.”

 

9.                                      LICENSEE’S
RESPONSIBILITIES

 

9.1.                              Licensee
will cooperate with Licensor and provide any necessary assistance to allow
Licensor to perform Licensor’s obligations under this Agreement.

 

9.2.                              Licensee
will:  (a) allow Licensor access to the
Site and the Software upon reasonable prior written notice; (b) use

 

4

 

commercially reasonable
efforts to provide a safe and secure work environment at the Site for Licensor
personnel performing support and maintenance service; and (c) provide all
facilities reasonably necessary for Licensor to carry out Licensor’s obligations
under this Agreement.

 

10.                               INDEMNITY

 

10.1.                        Licensee
hereby indemnifies and agrees to defend and hold harmless Licensor and its
affiliates, officers, employees and directors, or any third party provider of
equipment, software, information or services for Licensor from and against any
and all Damages, demands, claims, actions, proceedings, liabilities, losses,
fees, costs or expenses (including without limitation reasonable attorneys’
fees and the costs of any investigation) directly or indirectly arising from
(a) use of or reliance on the Software, Documentation or any Derivative Works
supplied by or created by Licensee under this Agreement, (b) any breach of or
default under the terms or conditions of this Agreement by Licensee, (c) the
use or possession, by Licensee or any third parties via Licensee of any part of
the Software, Documentation or any Derivative Works supplied by or created by
Licensee under this Agreement, (d) any negligence, gross negligence or willful
misconduct by or on behalf of Licensee or its employees or agents

 

10.2.                        Licensee
agrees that any Sublicensee will be required to enter into an agreement with
Licensee containing indemnification language to the benefit of Licensor
substantially similar to that set forth in Section 10.1.

 

10.3.                        Licensor
hereby indemnifies and agrees to defend and hold harmless Licensee and its
affiliates, officers, employees and directors from and against any and all
Damages, demands, claims, actions, proceedings, liabilities, losses, fees,
costs or expenses (including without limitation reasonable attorneys’ fees and
the costs of any investigation) directly or indirectly arising from a breach of
Licensor’s warranties under section 8.1.

 

12.                               LIMITATION
OF LIABILITY

 

12.1.                        TO
THE EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES WILL LICENSOR’S LIABILITY
UNDER THIS AGREEMENT EXCEED THE FEE.

 

12.2.                        LICENSOR
AND LICENSEE WILL HAVE NO LIABILITY WITH RESPECT TO THEIR RESPECTIVE
OBLIGATIONS UNDER THIS AGREEMENT OR OTHERWISE FOR CONSEQUENTIAL, EXEMPLARY,
SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS OR
DAMAGE TO DATA, LOSS OF BUSINESS OR LOST PROFITS.

 

13.                               TERMINATION

 

13.1.                        The
licenses hereunder will remain in effect for the Term unless terminated in
accordance with Section 13.2 or 13.3.

 

13.2.                        Licensor
may terminate this Agreement upon written notice to Licensee only if an
Arbitration Tribunal (constituted pursuant to Section 15.4) holds or declares
that the Licensee has:  (a) committed a
material breach of this Agreement which is incapable of remedy or  (b)  committed any other material
breach of this Agreement which is capable of remedy, which breach remained
uncured for at least 30 days after notice was given of the breach.

 

13.3.                        Upon
termination of this Agreement, Licensee shall cease using the Software and
promptly (and in any event within one month) return or destroy at Licensor’s
direction all copies of the Software and Documentation, and return sufficient
evidence of such to Licensor.  Licensee
shall delete all copies of Software residing in memory on any computer.
Licensee shall, within one month from the effective date of the termination,
certify in writing by an officer or director that all copies of the Software
and Documentation have been returned, deleted or destroyed as directed by
Licensor. If Licensee fails to do so Licensor shall be entitled to repossess
and remove any Software and Documentation from Licensee and any Sublicensee.

 

14.                               EMPLOYEES

 

14.1.                        If
prior to six months after the Effective Date, Licensee takes any of the actions
specified under “Loss of Support” on Schedule E, Licensee will notify Licensor
thereof and Licensor’s obligations under 6.1 will immediately terminate. If,
prior to 12 months after the Effective Date, Licensee takes any of the actions
specified under “Support Obligations” on Schedule E, Licensee will notify
Licensor thereof and thereafter Licensor will have the right to request on one
month’s notice, and Licensee shall be required to provide, reasonable support
for the TRS Software to Licensor at commercially reasonable rates and terms for
up to 7 months after Licensee’s having taken any such actions.

 

15.                               GENERAL

 

15.1.                        This
Agreement sets out the entire understanding between the parties relating to
Licensee’s purchase and use of the license to the Software and replaces all
prior proposals, understandings and other agreements, oral and written between
the parties relating to the subject matter of this Agreement.

 

15.2.                        If
any part of this Agreement that is not fundamental is found to be illegal or unenforceable,
this shall not affect the validity or enforceability of the remainder of this
Agreement.

 

15.3.                        This
Agreement shall be binding upon the parties and their permitted successors and
assigns.  Licensee may assign all of the
rights and obligations hereunder in their entirety, in connection with a
transfer of the business using the Licenses granted hereunder.  Any attempted assignment in violation of this
Section 15.3  is void.

 

15.4.                        This
Agreement shall be deemed to have been executed in the State of New York and
shall be governed by and construed in accordance with the laws of the State of
New York.  Any dispute arising out of or
in connection with this Agreement shall be finally settled by arbitration under
the Rules of Arbitration of the International Chamber of Commerce (the “ICC”).
The arbitrator or arbitrators (“Arbitration Tribunal”) shall be chosen in
accordance with

 

5

 

the ICC rules. The
arbitration proceedings shall take place in New York City, Borough of
Manhattan. The language of all arbitration proceedings shall be English. The
findings of the arbitrator(s) shall be final and binding on the parties.
Judgment on the award of the arbitrator(s) may be entered in any court of
competent jurisdiction.

 

15.5.            Notices

 

(a)                      Any
notice to be given under this Agreement may be delivered by hand delivery,
registered mail (or the equivalent in the country where the notice is
delivered) or facsimile to the following:

 

	
  For Licensor:

  	
   

  	
  Telerate

  
	
   

  	
   

  	
  233 Broadway

  
	
   

  	
   

  	
  24th Floor

  
	
   

  	
   

  	
  New York, NY 10279

  
	
   

  	
   

  	
  Attn: Adam Ableman

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Latham & Watkins

  
	
   

  	
   

  	
  885 Third Avenue

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
  Attn: David Allinson

  

 

	
  For Licensee:

  	
   

  	
  HyperFeed Technologies,
  Inc.

  
	
   

  	
   

  	
  300 South Wacker Drive

  
	
   

  	
   

  	
  Suite 300

  
	
   

  	
   

  	
  Chicago, Illinois 60606

  
	
   

  	
   

  	
  Attn: Paul Pluschkell

  
	
   

  	
   

  	
  Fax No.:

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Jenner & Block LLP

  
	
   

  	
   

  	
  One IBM Plaza

  
	
   

  	
   

  	
  Chicago, Illinois 60611

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Fax No.

  
	
   

  	
   

  	
   

  
	
  For Reuters:

  	
   

  	
  c/o Reuters America LLC

  
	
   

  	
   

  	
  3 Times Square

  
	
   

  	
   

  	
  New York, New York
  10036

  
	
   

  	
   

  	
  Name: General Counsel

  
	
   

  	
   

  	
  Fax No. 646-223-4250

  

 

(b)                                 Notices
given by hand delivery shall be addressed to the person at the address or by
facsimile shall be addressed to the person at the number set out in paragraph
A, above.

 

(c)                                  Either
party may change the person, address and facsimile number notices are to be
delivered to, by giving notice to the other party in accordance with this
Section 15.5.

 

(d)                                 Notices
shall be deemed to have been received: (i) if hand delivered, on the day
delivered; (ii) if sent by registered mail, on the third business day after
being sent; or (iii) if sent by facsimile, on the day sent provided the
transmitting facsimile machine produces a report verifying successful
completion of the transmission.

 

15.6.                        Licensor
shall, upon prior written notice, be entitled to, at its expense, have a third
party of its choice to conduct a financial and technical audit of Licensee’s
records software, facilities and/or personnel to the extent reasonably
necessary to ensure that Licensor is being paid all amounts properly due to
Licensor by Licensee under this Agreement, and specifically, to determine the
number of Licensee Desktops being licensed or otherwise in use.  Such audits shall be conducted no more than
once every six months and will be conducted so as not to disrupt the business
of Licensee.  Notwithstanding the
foregoing, Licensee shall have no obligation to provide Licensor any
information that could reasonably identify Licensee’s customers.

 

15.7.                        Sections
5, 7, 8.1(a), 8.2, 10, 11, 12, 13.3, 14, 15.6 and 15.9 shall survive the
termination of this Agreement for any reason. 
Section 8.1(b) and (c) shall survive for two (2) years from the
Effective Date.

 

15.8.                        This
Agreement may only be amended by the parties in writing, signed by duly authorized
representatives of the parties and, prior to the Effective Date, Reuters
Limited.

 

15.9. The parties will
treat and hold as confidential any information concerning the businesses and
affairs of the other parties that is not already generally available to the
public (including the terms of this Agreement) (“Confidential Information”),
refrain from using any of the Confidential Information except in connection
with this Agreement, and deliver promptly to the appropriate party such
information or destroy, at the request and option of the appropriate party, all
tangible embodiments (and all copies) of the Confidential Information which are
in his, her, or its possession. In the event that any of the parties is
requested or required (by oral question or request for information or documents
in any legal proceeding, interrogatory, subpoena, civil investigative demand,
or similar process) to disclose any Confidential Information, such party will
notify the party to whom the information relates promptly of the request or
requirement so that such party may seek an appropriate protective order or
waive compliance with this provision. If, in the absence of a protective order
or the receipt of a waiver hereunder, any of the parties is, on the advice of
counsel, compelled to disclose any Confidential Information to any tribunal or
else stand liable for contempt, such party may disclose the Confidential
Information to the tribunal; provided, however, that such party shall use his,
her, or its reasonable best efforts to obtain, at the reasonable request of
party to whom the information relates, an order or other assurance that
confidential treatment will be accorded to such portion of the Confidential
Information required to be disclosed as such party shall designate.  If either party wishes to make a press
release or otherwise disclose the relationship between Licensor and Licensee as
it relates to this Agreement, the party wishing to make the disclosure shall
not do so without the written consent of the other party, such consent not to
be unreasonably withheld.  Prior to the
Effective Date or such earlier date as may be agreed in writing by Licensor and
Reuters, Licensee may not market, or otherwise contact, have discussions with
or enter into agreements with potential customers with respect to, the Licensee
Platform or the Licensee Desktop.

 

15.10.                  The
obligations of the parties under this Agreement shall become effective only
upon the date (the “Effective Date”)
of the Closing under and as defined in the Stock and Asset Purchase Agreement
dated as of December 20, 2004 by and among Reuters Limited, Reuters S.A.,
Moneyline Telerate Holdings, Inc., and the subsidiaries thereof party thereto,
as the same may be amended or

 

6

 

otherwise modified from
time to time (the “Acquisition Agreement”)
(other than Sections 14.1 and 15.9, which shall be effective immediately).  In the event the Acquisition Agreement is
terminated prior to the Effective Date, this Agreement shall terminate
simultaneously therewith.

 

15.11.                  Notwithstanding
anything in this Agreement to the contrary, Licensee agrees to be bound by, be
subject to, comply with, and take all necessary action required under the terms
of the Commitments Letter dated 20 May 2005 from Reuters and Moneyline Telerate
Holdings, Inc. to the European Commission or any requirements of the European
Commission under such Commitments Letter. 
Licensee agrees that it shall not assert any claim or liability against
the Monitoring Trustee under and as defined in such Commitments Letter or any
of its employees or agents.  This Section
15.11 shall survive termination of this Agreement.

 

7

 

SCHEDULE A

 

TELERATE TRADING ROOM SYSTEM
SOFTWARE

 

***

 

 

Site

 

	
  Street

  	
   

  	
  600 Commons Drive,
  Suite 110

  
	
  City

  	
   

  	
  Aurora

  
	
  State/Region/County

  	
   

  	
  Illinois

  
	
  ZIP/Post Code

  	
   

  	
  60504

  
	
  Country

  	
   

  	
  USA

  

 

9

 

SCHEDULE
B

 

LIMITATIONS
ON PERMITTED SUBLICENSES (BY JURISDICTION)

 

Greece, Cyprus, Spain and
Portugal, in accordance with the Distribution Agreement, dated March 7, 2002,
between Moneyline Telerate and Famanet Holdings Ltd.

 

Sub-Saharan Africa, in accordance
with the Distribution Agreement, dated December 4, 2001, between Moneyline
Telerate and Green Rose Trading (Pty) Ltd.

 

Belgium, Luxembourg and the
Netherlands, in accordance with the Distribution Agreement, dated January 27,
2004, between Moneyline Telerate (UK) Ltd. and MarketXS.com B.V.

 

With respect to Italy (including
Vatican City and San Marino Republic, “Italy”), any distribution and
sublicensing of the Licensee Platform and Licensee Desktop are subject to the
following restrictions in accordance with the Distribution Agreement, dated
September 15, 2002, between Moneyline Telerate International and Telerate
Italia S.p.A.:

(i)                                    must
be “private labeled” products; and

(ii)                                users
must not be substantially domiciled in Italy, but must have a global or
multinational reach.

 

Indonesia, in accordance with the
Distribution Agreement, dated as of April 1, 1999, between Telerate
International Inc. and Antara News Agency.

 

Korea, in accordance with the
Distribution Agreement, dated December 11, 2000, between Bridge Information
Systems (International) Inc. and Yonhap News Agency.

 

India, Sri Lanka, Bhutan,
Bangladesh and Nepal, in accordance with the Distribution Agreement, dated July
1, 2002, between Moneyline Telerate International and Indian Quotation Systems
Private Limited.

 

Colombia, in accordance with the
Supply and Technical Support Agreement, dated October 1, 1998, between Telerate
International, Inc. and Telequote Ltda.

 

Japan, in accordance with the
Exclusive Distributor Agreement, dated October 17, 2001, by and between
Moneyline Telerate International, QUICK Corp. (“Quick”), and Quick MoneyLine
Telerate Corp. (“QMT”), until completion of the transactions contemplated by
the Merger Agreement between Reuters Japan Ltd., Quick and QMT.

 

10

 

SCHEDULE
C

 

REQUIRED
THIRD PARTY LICENSES

 

	
  3rd Party Software

  	
   

  	
  Dependency

  
	
  Xmeter GUI

  	
   

  	
  TRS - Publicly built
  binaries for this public-domain utility.

  
	
  perl

  	
   

  	
  TRS -
  Install/Configuration utilities, where not packaged with the OS

  
	
  gtar

  	
   

  	
  TRS -
  Install/Configuration utilities, where not packaged with the OS

  
	
  gnumake

  	
   

  	
  TRS 3.x API

  
	
  rcs

  	
   

  	
  TRS 3.x API

  
	
  FreeType library

  	
   

  	
  TRS - TCT for UNIX

  
	
  GD library

  	
   

  	
  TRS - TCT for UNIX

  
	
  PNG library

  	
   

  	
  TRS - TCT for UNIX

  
	
  Apache Xerces library

  	
   

  	
  TRS - TCT for UNIX

  
	
  Java JRE from SUN

  	
   

  	
  TRS - Observer+

  
	
  Firebird Database

  	
   

  	
  TRS - Observer+

  
	
  Application Server
  Tomcat

  	
   

  	
  TRS - Observer+

  
	
  RFunc library

  	
   

  	
  TRS - Observer+

  
	
  XSQL Servlet

  	
   

  	
  TRS - Observer+

  
	
  JRA/JDBC Driver

  	
   

  	
  TRS - Observer+

  
	
  VBA Run-Time package
  from Microsoft

  	
   

  	
  Active8

  

 

 

SCHEDULE
D

 

FEES

 

$1,000,000, 25% payable
January 15, 2006 and the remainder payable January 15, 2007.

 

This fee includes
unlimited Licensee Desktop licenses for the Customer Deployment and Managed
Deployment Models.  Licenses for users of
the Licensee Desktop connected to the Shared Deployment Model can be purchased
from Licensor as follows:

 

*** (US) per license for
the first *** users

*** (US) per license for
all subsequent users

 

Notwithstanding the
foregoing, Licensee shall be entitled to unlimited users of the Licensee
Desktop, without payment of any specific fees in respect thereof, following ***
after the Effective Date

 

Licensee shall report to
Licensor, within one month of the end of each calendar quarter, the maximum
number of users with access to Licensee Desktop during such quarter.

 

 

SCHEDULE
E

 

LOSS OF SUPPORT:

 

Licensee (together with its affiliates) hires:

 

o            any of the employees listed in section (1) below and
marked with an asterisk, or

 

o            more than 50% of the employees listed in either
section (1) or (2) below

 

SUPPORT OBLIGATIONS:

 

Licensee (together with its affiliates) hires:

 

o            more than 2/3 of the employees listed in any of
sections (1), (2), (3) or (4), or

 

o            more than 1/3 of the employees listed in any such
section in any three-month period

 

The foregoing does not apply to, and all calculations
will exclude, any employees terminated by Licensor prior to such employees
being solicited or hired by Licensee.

 

TRS
EMPLOYEES

 

***

 

13Exhibit 10.1

 

ALLIANT
TECHSYSTEMS INC.

2005 STOCK INCENTIVE PLAN

 

Section 1.   Purpose of the Plan; Effect on Prior Plans.

 

(a)                                          Purpose of the Plan.   The purpose of the Plan is to aid
the Company in recruiting and retaining employees, officers and non-employee
Directors capable of assuring the future success of the Company through the
grant of Awards to such persons under the Plan. The Company expects that Awards
of stock-based compensation and opportunities for stock ownership in the
Company will provide incentives to Plan participants to exert their best
efforts for the success of the Company’s business and thereby align the
interests of Plan participants with those of the Company’s stockholders.

 

(b)                                         Effect on Prior Plans.   From and after the date of
stockholder approval of the Plan, no awards shall be granted under the Company’s
Amended and Restated 1990 Equity Incentive Plan, as amended, but all
outstanding awards previously granted under that plan shall remain outstanding
in accordance with their terms. From and after the date of stockholder approval
of the Plan, the remaining shares authorized under the Company’s Management
Compensation Plan shall not be awarded or issued, but the Management
Compensation Plan shall remain in effect for cash awards. The Company’s Amended
and Restated Non-Employee Director Restricted Stock Plan shall remain in
effect, and restricted stock awards may continue to be made under that plan.

 

Section 2.   Definitions.

 

The
following capitalized terms used in the Plan have the meanings set forth in
this Section:

 

(a)                                          “Affiliate”
means (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which
the Company has a significant equity interest, in each case as determined by
the Committee.

 

(b)                                         “Award”
means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, Dividend Equivalent, Performance Award, Stock Award or Other Stock-Based
Award granted under the Plan.

 

(c)                                          “Award
Agreement” means any written agreement, contract or other instrument or
document evidencing an Award granted under the Plan. Each Award Agreement shall
be subject to the applicable terms and conditions of the Plan and any other
terms and conditions (not inconsistent with the Plan) determined by the
Committee.

 

(d)                                         “Board”
means the Board of Directors of the Company.

 

(e)                                          “Code” means
the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

 

(f)                                            “Committee”
means the Personnel and Compensation Committee of the Board or any successor
committee of the Board designated by the Board to administer the Plan. The
Committee shall be comprised of not less than such number of Directors as shall
be required to permit Awards granted under the Plan to qualify under Rule 16b-3,
and each member of the Committee shall be a “Non-Employee Director” within the
meaning of Rule 16b-3 and an “outside director” within the meaning of Section 162(m) of
the Code. The Company expects to have the Plan administered in accordance with
the requirements for the award of “qualified performance-based compensation”
within the meaning of Section 162(m) of the Code.

 

(g)                                         “Company”
means Alliant Techsystems Inc., a Delaware corporation.

 

1

 

(h)                                         “Director”
means a member of the Board.

 

(i)                                             “Dividend
Equivalent” means any right granted under Section 6(d) of the Plan.

 

(j)                                             “Eligible
Person” means any employee, officer or non-employee Director of the Company or
any Affiliate whom the Committee determines to be an Eligible Person.

 

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

 

(l)                                             “Fair Market
Value” means, with respect to any property (including, without limitation, any
Shares or other securities), the fair market value of such property determined
by such methods or procedures as shall be established from time to time by the
Committee. Notwithstanding the foregoing, unless otherwise determined by the
Committee, the Fair Market Value of Shares on a given date for purposes of the
Plan shall be the closing sale price of the Shares on the New York Stock
Exchange as reported in the consolidated transaction reporting system on such
date or, if such Exchange is not open for trading on such date, on the most
recent preceding date when such Exchange is open for trading.

 

(m)                                       “Incentive
Stock Option” means an option granted under Section 6(a) of the Plan
that is intended to meet the requirements of Section 422 of the Code or
any successor provision.

 

(n)                                         “Non-Qualified
Stock Option” means an option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

 

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

 

(p)                                         “Other
Stock-Based Award” means any right granted under Section 6(g) of the
Plan.

 

(q)                                         “Participant”
means an Eligible Person who is designated by the Committee to be granted an
Award under the Plan.

 

(r)                                            “Performance
Award” means any right granted under Section 6(e) of the Plan.

 

(s)                                          “Performance
Goal” means an objective performance goal or goals based on one or more of the
following criteria: sales; gross profit; profitability of an identifiable
business unit or product; income before interest and taxes; income before
interest, taxes, depreciation and amortization; net income; earnings per share;
return on stockholders’ equity; return on investment or average capital
employed; cash flow; and stock price. The foregoing criteria may relate to the
Company, one or more of its subsidiaries or one or more of its divisions or
units, or any combination of the foregoing, and may be applied on an absolute
basis and/or be relative to one or more peer group companies or indices, or any
combination thereof, all as the Committee shall determine. On or before the 90th
day of the applicable performance period for which Performance Goals are
established, the Committee may specify that the achievement of the Performance
Goals will be calculated without regard to the negative or positive effect of
certain events, including any of the following events: asset impairments;
litigation or claim judgments or settlements; changes in the tax code; changes
in accounting principles; changes in other laws or provisions affecting
reported results; severance, restructuring, contract termination and other
costs related to rationalizing certain business activities; and gains or losses
from the disposition of businesses or assets or from the early extinguishment
of debt.

 

(t)                                            “Person”
means any individual, corporation, partnership, association or trust.

 

(u)                                         “Plan” means
this Alliant Techsystems Inc. 2005 Stock Incentive Plan, as amended from time
to time.

 

(v)                                         “Restricted
Stock” means any Share granted under Section 6(c) of the Plan.

 

2

 

(w)                                       “Restricted
Stock Unit” means any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair
Market Value of a Share) at some future date.

 

(x)                                           “Rule 16b-3”
means Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act or any successor rule or regulation.

 

(y)                                         “Section 162(m)”
means Section 162(m) of the Code, or any successor provision, and the
applicable Treasury Regulations promulgated thereunder.

 

(z)                                           “Shares”
means shares of common stock, par value of $0.01 per share, of the Company or
such other securities or property as may become subject to Awards pursuant to
an adjustment made under Section 4(c) of the Plan.

 

(aa)                                    “Stock
Appreciation Right” means any right granted under Section 6(b) of the
Plan.

 

(bb)                                  “Stock
Award” means any Share granted under Section 6(f) of the Plan.

 

Section 3.   Administration.

 

(a)                                          Power and Authority of the Committee.   The
Plan shall be administered by the Committee. Subject to the express provisions
of the Plan and to applicable law, the Committee shall have full power and
authority to: (i) designate Participants; (ii) determine the type or
types of Awards to be granted to each Participant under the Plan; (iii) determine
the number of Shares to be covered by (or the method by which payments or other
rights are to be calculated in connection with) each Award; (iv) determine
the terms and conditions of any Award or Award Agreement; (v) amend the
terms and conditions of any Award or Award Agreement, provided, however, that,
except as otherwise provided in Section 4(c) hereof, the Committee
shall not reprice, adjust or amend the exercise price of Options or the grant
price of Stock Appreciation Rights previously awarded to any Participant,
whether through amendment, cancellation and replacement grant, or any other
means; (vi) accelerate the exercisability of any Award or the lapse of
restrictions relating to any Award; (vii) determine whether, to what
extent and under what circumstances Awards may be exercised in cash, Shares,
other securities, other Awards or other property, or canceled, forfeited or
suspended; (viii) determine whether, to what extent and under what
circumstances cash, Shares, other securities, other Awards, other property and
other amounts payable to a Participant with respect to an Award under the Plan
shall be deferred either automatically or at the election of the holder of the
Award or the Committee; (ix) interpret and administer the Plan and any
instrument or agreement, including any Award Agreement, relating to the Plan;
(x) establish, amend, suspend or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration
of the Plan; and (xi) make any other determination and take any other action
that the Committee deems necessary or desirable for the administration of the
Plan. Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to
the Plan or any Award or Award Agreement shall be within the sole discretion of
the Committee, may be made at any time and shall be final, conclusive and
binding upon any Participant, any holder or beneficiary of any Award or Award
Agreement, and any employee of the Company or any Affiliate.

 

(b)                                         Delegation.   The Committee may delegate its
powers and duties under the Plan to one or more Directors (including a Director
who is also an officer of the Company) or a committee of Directors, subject to
such terms, conditions and limitations as the Committee may establish in its
sole discretion; provided, however, that the Committee shall not delegate its
powers and duties under the Plan (i) with regard to officers or directors
of the Company or any Affiliate who are subject to Section 16 of the
Exchange Act or (ii) in such a manner as would cause the Plan not to
comply with the requirements of Section 162(m) of the Code.

 

3

 

(c)                                          Power and Authority of the Board of Directors.   Notwithstanding
anything to the contrary contained herein, the Board may, at any time and from
time to time, without any further action of the Committee, exercise the powers
and duties of the Committee under the Plan, unless the exercise of such powers
and duties by the Board would cause the Plan not to comply with the
requirements of Section 162(m) of the Code.

 

Section 4.   Shares Available for Awards.

 

(a)                                          Shares Available.   Subject to adjustment as provided
in Section 4(c) of the Plan, the aggregate number of Shares that may
be issued under all Awards under the Plan shall be 3,000,000. Shares to be
issued under the Plan will be authorized but unissued Shares or Shares that
have been reacquired by the Company and designated as treasury shares. Shares
that are subject to Awards that terminate, lapse or are cancelled or forfeited
shall be available again for grant under the Plan. Shares that are tendered by
a Participant or withheld by the Company as full or partial payment to the
Company of the purchase or exercise price relating to an Award or to satisfy
tax withholding obligations relating to an Award shall not be available for future
grants under the Plan. In addition, if Stock Appreciation rights are settled in
Shares upon exercise, the aggregate number of Shares subject to the Award
rather than the number of Shares actually issued upon exercise shall be counted
against the number of Shares authorized under the Plan.

 

(b)                                         Accounting for Awards.   For purposes of this Section 4,
if an Award entitles the holder thereof to receive or purchase Shares, the
number of Shares covered by such Award or to which such Award relates shall be
counted on the date of grant of such Award against the aggregate number of
Shares available for granting Awards under the Plan.

 

(c)                                          Adjustments.   In the event that the Committee
shall determine that any dividend or other distribution (whether in the form of
cash, Shares, other securities or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase or exchange of Shares or other securities of
the Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the
number and type of Shares (or other securities or other property) that
thereafter may be made the subject of Awards, (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards
and (iii) the purchase or exercise price with respect to any Award.

 

(d)                                         Award Limitations Under the Plan.

 

(i)                                     Section 162(m) Limitation for Certain Types of Awards.   No
Participant may be granted Options, Stock Appreciation Rights or any other
Award or Awards under the Plan, the value of which Award or Awards is based
solely on an increase in the value of the Shares after the date of grant of
such Award or Awards, for more than 750,000 Shares (subject to adjustment as
provided in Section 4(c) of the Plan) in the aggregate in any
calendar year. The foregoing annual limitation specifically applies to any
Award or Awards representing “qualified performance-based compensation” within
the meaning of Section 162(m) of the Code.

 

(ii)                                  Section 162(m) Limitation for Performance Awards.   No
Participant may be granted Performance Awards in excess of 500,000 Shares
(subject to adjustment as provided in Section 4(c) of the Plan) in
the aggregate in any calendar year. This limitation does not apply to any Award
subject to the limitation contained in Section 4(d)(i) of
the Plan.

 

(iii)                               Plan Limitation on Restricted Stock, Restricted Stock Units,
Performance Awards and Stock Awards.   No
more than 1,000,000 Shares (subject to adjustment as provided in Section 4(c) 

 

4

 

of the Plan)
shall be available under the Plan for issuance pursuant to grants of Restricted
Stock, Restricted Stock Units, Performance Awards and Stock Awards; provided,
however, that Shares subject to such Awards that terminate, lapse or are
cancelled or forfeited shall again be available for grants of Restricted Stock,
Restricted Stock Units, Performance Awards and Stock Awards for purposes of
this limitation on grants of such Awards. Of the 1,000,000 Shares authorized
under this Section 4(d)(iii), only 100,000 Shares
may be used for Stock Awards in accordance with Section 6(f) of the
Plan.

 

(iv)                              Limitation on Awards Granted to Non-Employee Directors.   Directors
who are not also employees of the Company or an Affiliate may not be granted
Awards in the aggregate for more than 5% of the Shares available for Awards
under the Plan, subject to adjustment as provided in Section 4(c) of
the Plan.

 

(v)                                 Limitation on Incentive Stock Options.   The
number of Shares available for granting Incentive Stock Options under the Plan
shall not exceed 1,000,000, subject to adjustment as provided in Section 4(c) of
the Plan and subject to the provisions of Section 422 or 424 of the Code
or any successor provision.

 

Section 5.   Eligibility.

 

Any
Eligible Person may be designated to be a Participant. In determining which
Eligible Persons shall receive an Award and the terms of any Award, the
Committee may take into account the nature of the services provided by the
respective Eligible Persons, their present and potential contributions to the
success of the Company or such other factors as the Committee, in its
discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive
Stock Option may only be granted to full-time or part-time employees (which term
as used herein includes, without limitation, officers and Directors who are
also employees), and an Incentive Stock Option shall not be granted to an
employee of an Affiliate unless such Affiliate is also a “subsidiary
corporation” of the Company within the meaning of Section 424(f) of
the Code or any successor provision.

 

Section 6.   Awards.

 

(a)                                          Options.   The Committee may grant Options
with the following terms and conditions and with such additional terms and
conditions not inconsistent with the provisions of the Plan as the Committee
shall determine:

 

(i)                                     Exercise Price.   The purchase price per Share
purchasable under an Option shall be determined by the Committee and shall not
be less than 100% of the Fair Market Value of a Share on the date of grant of
such Option; provided, however, that the Committee may designate a per share exercise
price below Fair Market Value on the date of grant if the Option is granted in
substitution for a stock option previously granted by an entity that is
acquired by or merged with the Company or an Affiliate.

 

(ii)                                  Option Term.   The term of each Option shall be
fixed by the Committee but shall not be longer than 10 years from the date of
grant.

 

(iii)                               Time and Method of Exercise.   The
Committee shall determine the time or times at which an Option may be exercised
in whole or in part and the method or methods by which, and the form or forms
(including, without limitation, cash, Shares, other securities, other Awards or
other property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the applicable exercise price) in which, payment of the
exercise price with respect thereto may be made or deemed to have been made.

 

5

 

(b)                                         Stock Appreciation Rights.   The Committee may grant Stock
Appreciation Rights subject to the terms of the Plan and such additional terms
and conditions not inconsistent with the provision of the Plan as the Committee
shall determine. A Stock Appreciation Right granted under the Plan shall confer
on the holder thereof a right to receive upon exercise thereof the excess of (i) the
Fair Market Value of one Share on the date of exercise over (ii) the grant
price of the Stock Appreciation Right as specified by the Committee, which
price shall not be less than 100% of the Fair Market Value of one Share on the
date of grant of the Stock Appreciation Right; provided, however, that the
Committee may designate a per share grant price below Fair Market Value on the
date of grant if the Stock Appreciation Right is granted in substitution for a
stock appreciation right previously granted by an entity that is acquired by or
merged with the Company or an Affiliate.

 

(c)                                          Restricted Stock and Restricted Stock Units.   The
Committee may grant Awards of Restricted Stock and Restricted Stock Units with
the following terms and conditions and with such additional terms and
conditions not inconsistent with the provisions of the Plan as the Committee
shall determine:

 

(i)                                     Restrictions.   Shares of Restricted Stock and
Restricted Stock Units shall be subject to such restrictions as the Committee
may impose (including, without limitation, any limitation on the right to vote
a Share of Restricted Stock or the right to receive any dividend or other right
or property with respect thereto), which restrictions may lapse separately or
in combination at such time or times, in such installments or otherwise, as the
Committee may deem appropriate. The minimum vesting period of such Awards shall
be one year from the date of grant. Notwithstanding the foregoing, the
Committee may permit acceleration of vesting of such Awards in the event of the
Participant’s death, disability or retirement or a change in control of the
Company.

 

(ii)                                  Issuance and Delivery of Shares.   Any
Restricted Stock granted under the Plan shall be issued at the time such Awards
are granted and may be evidenced in such manner as the Committee may deem
appropriate, including book-entry registration or issuance of a stock
certificate or certificates, which certificate or certificates shall be held by
the Company. Such certificate or certificates shall be registered in the name
of the Participant and shall bear an appropriate legend referring to the
restrictions applicable to such Restricted Stock. Shares representing
Restricted Stock that is no longer subject to restrictions shall be delivered
to the Participant promptly after the applicable restrictions lapse or are
waived. In the case of Restricted Stock Units, no Shares shall be issued at the
time such Awards are granted. Upon the lapse or waiver of restrictions and the
restricted period relating to Restricted Stock Units evidencing the right to
receive Shares, such Shares shall be issued and delivered to the holder of the
Restricted Stock Units.

 

(iii)                               Forfeiture.   Except as otherwise determined by
the Committee, upon a Participant’s termination of employment or resignation or
removal as a Director (in either case, as determined under criteria established
by the Committee) during the applicable restriction period, all Shares of
Restricted Stock and all Restricted Stock Units held by the Participant at such
time shall be forfeited and reacquired by the Company; provided, however, that
the Committee may, when it finds that a waiver would be in the best interest of
the Company, waive in whole or in part any or all remaining restrictions with
respect to Shares of Restricted Stock or Restricted Stock Units.

 

(d)                                         Dividend Equivalents.   The Committee may grant Dividend
Equivalents under which the Participant shall be entitled to receive payments
(in cash, Shares, other securities, other Awards or other property as
determined in the discretion of the Committee) equivalent to the amount of any
cash dividends paid by the Company to holders of Shares with respect to a
number of Shares determined by the Committee. Subject to the terms of the Plan,
such Dividend Equivalents may have such terms and conditions as the Committee
shall determine.

 

6

 

(e)                                          Performance Awards.   The Committee may grant
Performance Awards denominated in Shares that may be settled or payable in
Shares (including, without limitation, Restricted Stock or Restricted Stock
Units) or cash. Performance Awards granted to Participants who may be “covered employees”
under Section 162(m) of the Code are intended to be “qualified
performance-based compensation” within the meaning of Section 162(m).
Performance Awards shall, to the extent required by Section 162(m), be
conditioned solely on the achievement of one or more objective Performance Goals, and such Performance Goals shall be established by
the Committee within the time period prescribed by, and shall otherwise comply
with the requirements of, Section 162(m). Subject to the terms of the Plan
and any applicable Award Agreement, the Performance Goals to be achieved during
any performance period, the length of any performance period, the amount of any
Performance Award granted, the amount of any payment or transfer to be made
pursuant to any Performance Award, and any other terms and conditions of any
Performance Award shall be determined by the Committee. The Committee shall
also certify in writing that such Performance Goals have been met prior to
payment of the Performance Awards to the extent required by Section 162(m).

 

(f)                                            Stock Awards.   The Committee may grant Shares
without restrictions thereon, but only for the purpose of paying annual
incentive compensation earned by an Eligible Person that otherwise would have
been paid in cash by the Company. Subject to the terms of the Plan, Stock
Awards may have such terms and conditions as the Committee shall determine.

 

(g)                                         Other Stock-Based Awards.   The Committee may grant such
other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares (including, without
limitation, securities convertible into Shares), as are deemed by the Committee
to be consistent with the purpose of the Plan. The Committee shall determine
the terms and conditions of such Awards, subject to the terms of the Plan and
the Award Agreement. Shares, or other securities delivered pursuant to a
purchase right granted under this Section 6(g), shall be purchased for
consideration having a value equal to at least 100% of the Fair Market Value of
such Shares or other securities on the date the purchase right is granted.

 

(h)                                         General.

 

(i)                                     Consideration for Awards.   Awards may be granted for no cash
consideration or for any cash or other consideration as may be determined by
the Committee or required by applicable law.

 

(ii)                                  Awards May Be Granted Separately or Together.   Awards
may, in the discretion of the Committee, be granted either alone or in addition
to, in tandem with or in substitution for any other Award or any award granted
under any other plan of the Company or any Affiliate. Awards granted in
addition to or in tandem with other Awards or in addition to or in tandem with
awards granted under any other plan of the Company or any Affiliate may be
granted either at the same time as or at a different time from the grant of
such other Awards or awards.

 

(iii)                               Forms of Payment under Awards.   Subject
to the terms of the Plan and of any applicable Award Agreement, payments or
transfers to be made by the Company or an Affiliate upon the grant, exercise or
payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, other securities, other
Awards or other property, or any combination thereof), and may be made in a
single payment or transfer, in installments or on a deferred basis, in each
case in accordance with rules and procedures established by the Committee.
Such rules and procedures may include, without limitation, provisions for
the payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of Dividend Equivalents with respect to
installment or deferred payments.

 

7

 

(iv)                              Term of Awards.   The
term of each Award shall be for a period not longer than 10 years from the
date of grant.

 

(v)                                 Limits on Transfer of Awards.   Except
as otherwise provided by the Committee or the terms of this Plan, no Award and
no right under any such Award shall be transferable by a Participant other than
by will or by the laws of descent and distribution. The Committee may establish
procedures as it deems appropriate for a Participant to designate a Person or
Persons, as beneficiary or beneficiaries, to exercise the rights of the
Participant and receive any property distributable with respect to any Award in
the event of the Participant’s death. The Committee, in its discretion and
subject to such additional terms and conditions as it determines, may permit a
Participant to transfer a Non-Qualified Stock Option to any “family member” (as
such term is defined in the General Instructions to Form S-8 (or any successor
to such Instructions or such Form) under the Securities Act of 1933, as
amended) at any time that such Participant holds such Option, provided that
such transfers may not be for value (i.e., the
transferor may not receive any consideration therefor) and the family member
may not make any subsequent transfers other than by will or by the laws of
descent and distribution. Each Award under the Plan or right under any such
Award shall be exercisable during the Participant’s lifetime only by the
Participant (except as provided herein or in an Award Agreement or amendment
thereto relating to a Non-Qualified Stock Option) or, if permissible under
applicable law, by the Participant’s guardian or legal representative. No Award
or right under any such Award may be pledged, alienated, attached or otherwise
encumbered, and any purported pledge, alienation, attachment or encumbrance
thereof shall be void and unenforceable against the Company or any Affiliate.

 

(vi)                              Restrictions; Securities Exchange Listing.   All
Shares or other securities delivered under the Plan pursuant to any Award or
the exercise thereof shall be subject to such restrictions as the Committee may
deem advisable under the Plan, applicable federal or state securities laws and
regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be placed on the certificates for such Shares or other
securities to reflect such restrictions. If the Shares or other securities are
traded on a securities exchange, the Company shall not be required to deliver
any Shares or other securities covered by an Award unless and until such Shares
or other securities have been admitted for trading on such securities exchange.

 

Section 7.   Amendment and Termination; Corrections.

 

(a)                                          Amendments to the Plan.   The Board of Directors of the
Company may amend, alter, suspend, discontinue or terminate the Plan; provided,
however, that, notwithstanding any other provision of the Plan or any Award
Agreement, prior approval of the stockholders of the Company shall be required
for any amendment to the Plan that:

 

(i)                                     requires
stockholder approval under the rules or regulations of the Securities and
Exchange Commission, the New York Stock Exchange, any other securities exchange
or the National Association of Securities Dealers, Inc. that are
applicable to the Company;

 

(ii)                                  increases the number
of shares authorized under the Plan as specified in Section 4(a) of
the Plan;

 

(iii)                               increases the number
of shares subject to the limitations contained in Section 4(d) of the
Plan;

 

(iv)          permits
repricing of Options or Stock Appreciation Rights which is prohibited by Section 3(a)(v) of
the Plan;

 

8

 

(v)                                 permits the
award of Options or Stock Appreciation Rights at a price less than 100% of the
Fair Market Value of a Share on the date of grant of such Option or Stock
Appreciation Right, contrary to the provisions of Sections 6(a)(i) and
6(b)(ii) of the Plan; or

 

(vi)                              would cause Section 162(m) of
the Code to become unavailable with respect to the Plan.

 

(b)                                         Amendments to Awards.   Subject to the provisions of the
Plan, the Committee may waive any conditions of or rights of the Company under
any outstanding Award, prospectively or retroactively. Except as otherwise
provided in the Plan, the Committee may amend, alter, suspend, discontinue or
terminate any outstanding Award, prospectively or retroactively, but no such
action may adversely affect the rights of the holder of such Award without the
consent of the Participant or holder or beneficiary thereof.

 

(c)                                          Correction of Defects, Omissions and Inconsistencies.   The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any Award or Award Agreement in the manner and
to the extent it shall deem desirable to implement or maintain the
effectiveness of the Plan.

 

Section 8.   Tax Withholding.

 

The
Company may take such action as it deems appropriate to withhold or collect
from a Participant the applicable federal, state, local or foreign payroll,
withholding, income or other taxes that are required to be withheld or collected
by the Company upon the grant, exercise, vesting or payment of an Award. The
Committee may require the Company to withhold Shares having a Fair Market Value
equal to the amount necessary to satisfy the Company’s minimum statutory
withholding requirements upon the grant, exercise, vesting or payment of an
Award from Shares that otherwise would have been delivered to a Participant.
The Committee may, subject to any terms and conditions that the Committee may
adopt, permit a Participant to elect to pay all or a portion of the minimum
statutory withholding taxes by (a) having the Company withhold Shares
otherwise to be delivered upon the grant, exercise, vesting or payment of an
Award with a Fair Market Value equal to the amount of such taxes, (b) delivering
to the Company Shares other than Shares issuable upon the grant, exercise,
vesting or payment of an Award with a Fair Market Value equal to the amount of
such taxes or (c) paying cash. Any such election must be made on or before
the date that the amount of tax to be withheld is determined.

 

Section 9.   General Provisions.

 

(a)                                          No Rights to Awards.   No Eligible Person, Participant
or other Person shall have any claim to be granted any Award under the Plan,
and there is no obligation for uniformity of treatment of Eligible Persons,
Participants or holders or beneficiaries of Awards under the Plan. The terms
and conditions of Awards need not be the same with respect to any Participant
or with respect to different Participants.

 

(b)                                         Award Agreements.   No Participant shall have rights
under an Award granted to such Participant unless and until an Award Agreement
shall have been duly executed on behalf of the Company and, if requested by the
Company, signed by the Participant.

 

(c)                                          No Rights of Stockholders.   Except with respect to Restricted
Stock and Stock Awards, neither a Participant nor the Participant’s legal
representative shall be, or have any of the rights and privileges of, a
stockholder of the Company with respect to any Shares issuable upon the
exercise or payment of any Award, in whole or in part, unless and until the
Shares have been issued.

 

(d)                                         No Limit on Other Compensation Plans or Arrangements.   Nothing
contained in the Plan shall prevent the Company or any Affiliate from adopting
or continuing in effect other or additional compensation plans or arrangements.

 

9

 

(e)                                          No Right to Employment or Directorship.   The
grant of an Award shall not be construed as giving a Participant the right to
be retained as an employee of the Company or any Affiliate, or a Director to be
retained as a Director, nor will it affect in any way the right of the Company
or an Affiliate to terminate a Participant’s employment at any time, with or
without cause. In addition, the Company or an Affiliate may at any time dismiss
a Participant from employment free from any liability or any claim under the
Plan or any Award, unless otherwise expressly provided in the Plan or in any
Award Agreement.

 

(f)                                            Governing Law.   The internal law, and not the law
of conflicts, of the State of Delaware, shall govern all questions concerning
the validity, construction and effect of the Plan or any Award, and any rules and
regulations relating to the Plan or any Award.

 

(g)                                         Severability.   If any provision of the Plan or
any Award is or becomes or is deemed to be invalid, illegal or unenforceable in
any jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially
altering the purpose or intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction or Award, and the remainder of the Plan or
any such Award shall remain in full force and effect.

 

(h)                                         No Trust or Fund Created.   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 any
Affiliate and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Affiliate pursuant
to an Award, such right shall be no greater than the right of any unsecured
general creditor of the Company or any Affiliate.

 

(i)                                             Securities Matters.   The Company shall not be required
to deliver any Shares until the requirements of any federal or state securities
or other laws, rules or regulations (including the rules of any
securities exchange) as may be determined by the Company to be applicable are
satisfied.

 

(j)                                             No Fractional Shares.   No fractional Shares shall be
issued or delivered pursuant to the Plan or any Award, and the Committee shall
determine whether cash shall be paid in lieu of any fractional Share or whether
such fractional Share or any rights thereto shall be canceled, terminated or
otherwise eliminated.

 

(k)                                          Headings.   Headings are given to the
Sections and subsections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material or relevant to
the construction or interpretation of the Plan or any provision thereof.

 

Section 10.   Effective Date of the Plan.

 

The
Plan shall be subject to approval by the stockholders of the Company at the
annual meeting of stockholders of the Company to be held on August 2, 2005
and the Plan shall be effective as of the date of such stockholder approval.

 

Section 11.   Term of the Plan.

 

The
Plan shall terminate at midnight on August 1, 2015, unless terminated
before then by the Board. Awards may be granted under the Plan until the Plan
terminates or until all Shares available for Awards under the Plan have been
purchased or acquired; provided, however, that Incentive Stock Options may not
be granted following the 10-year anniversary of the Board’s adoption of the
Plan. The Plan shall remain in effect as long as any Awards are outstanding.

 

10

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