Document:

EXHIBIT 10.10

 

ASSIGNMENT OF LEASE

 

THIS
ASSIGNMENT is made effective the 26th day of March, 2008 (the “Effective
Date”), by PENDERGRAFT DRUGS, INC., an Oklahoma corporation (the “Assignor”) in
favor of APOTHECARYRX, LLC, an Oklahoma limited liability company (the “Assignee”).

 

W I T N E S S E T H :

 

WHEREAS, the Assignor
is the tenant under that certain lease dated December 8, 2005, between American
Fidelity Property Company, an Oklahoma corporation, as lessor (the “Landlord”)
and the Assignor, as tenant, which is attached to this Assignment at Exhibit “A”
(collectively the “Lease Agreement”);

 

WHEREAS, the Assignor
desires to assign to the Assignee all of the Assignor’s right, title and
interest in and to the Lease Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

 

1.             Assignor’s Warranties.  The Assignor represents and warrants that the
Assignor has heretofore duly executed and delivered the Lease Agreement and
that there exist no other agreements, amendments or understandings to which the
Assignor is a party relating to the Lease Agreement.  The Assignor further represents and warrants
that the rent is paid through March 31, 2008, and the Assignor has complied
to the date hereof with all covenants on the Assignor’s part in the Lease
Agreement, including, without limitation, the payment of rents.

 

2.             Assignment. 
The Assignor hereby assigns and transfers to the Assignee and the Assignee’s
successors and assigns all of the Assignor’s right, title and interest in and
to the Lease Agreement, together with all of the benefits thereunder.

 

3.             Assumption. 
The Assignor hereby delegates and the Assignee hereby assumes and agrees
to perform all of the Assignor’s obligations under the Lease Agreement
effective the date hereof.

 

[Signature Pages to Follow]

 

 

SIGNATURE PAGE

(Assignment of Lease)

 

IN WITNESS
WHEREOF, the parties have executed this Assignment effective the date first
above written.

 

	
   

  	
  PENDERGRAFT
  DRUGS, INC.,

  
	
   

  	
  an Oklahoma
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/GARY
  NICHOLS

  
	
   

  	
      Gary
  Nichols, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (the
  “Assignor”)

  

 

 

SIGNATURE PAGE

(Assignment of Lease)

 

IN WITNESS
WHEREOF, the parties have executed this Assignment effective the date first
above written.

 

	
   

  	
  APOTHECARYRX,
  LLC, an Oklahoma limited 

  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/LEWIS P.
  ZEIDNER

  
	
   

  	
      Lewis
  P. Zeidner, President

  
	
   

  	
   

  
	
   

  	
  (the
  “Assignee”)

  

 

 

SIGNATURE PAGE

(Assignment of Lease)

 

The Landlord
hereby consents to this Assignment of Lease and represents and warrants to the Assignee
that the Assignor is not in default under the Lease Agreement, the Lease
Agreement is in full force and effect, there exist no other agreements,
amendments or understandings to which the Assignor or the Landlord is a party
relating to the Lease Agreement, and the rent under the Lease Agreement is paid
through March 31, 2008.

 

	
   

  	
  AMERICAN
  FIDELITY PROPERTY COMPANY, 

  an Oklahoma corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (“Landlord”)EXHIBIT 10.11

 

PROMISSORY
NOTE

 

	
  $220,000.00

  	
   

  	
  Oklahoma City, Oklahoma

  
	
   

  	
   

  	
  March 26, 2008

  

 

FOR VALUE RECEIVED,
APOTHECARYRX, LLC, an Oklahoma limited liability company (the “Borrower”),
promises to pay to the order of PENDERGRAFT DRUGS, INC., an Oklahoma corporation
(the “Lender”), at 1900 North Classen, Oklahoma City, Oklahoma 73106, or at
such other place as may be designated in writing by the holder of this Note,
the principal sum of Two Hundred Twenty Thousand Dollars ($220,000.00),
together with interest thereon at the rate hereafter specified, payable as
follows:

 

The unpaid principal balance
of this Note will bear interest from the date of this Note until payment in
full at a per annum rate equal to six percent (6.0%).  All interest will be computed as a per diem
charge for the actual number of days elapsed on the basis of a year consisting
of three hundred sixty-five (365) or three hundred sixty-six (366) days, as the
case may be.

 

Provided no uncured default
has occurred under this Note, the unpaid principal balance of this Note plus
accrued interest thereon will be paid by the Borrower paying to the Lender
twelve (12) blended quarterly installments of principal and interest equal to
Twenty Thousand One Hundred Sixty Nine and 60/100 Dollars ($20,169.60),
commencing on June 26, 2008, and on the twenty sixth (26th) day
of each successive September, December, March and June thereafter
through March 26, 2011 (the “Maturity Date”).  In the event of an adjustment, prepayment or
set-off against the unpaid principal balance of this Note, the quarterly
payment will be recalculated to the amount which would fully amortize the
unpaid principal balance of this Note on such date, together with accrued
interest thereon, over a term ending on the Maturity Date.  Notwithstanding anything to the contrary, the
entire unpaid principal balance of this Note and all accrued and unpaid
interest will be due and payable on the Maturity Date.

 

Each payment will be applied
first to the payment of interest on the unpaid principal and the balance, if
any, will be applied to the unpaid principal balance of this Note.  The Borrower will have the right to prepay
this Note in whole or in part at any time without premium or penalty, but with
interest on the unpaid principal balance accrued to the date of prepayment.

 

 

The Borrower and the Lender
also agree that the Borrower’s obligations under this Note may be set-off
against any amounts owing to the Borrower under that certain Pharmacy Purchase
Agreement (the “Agreement”) dated March 24, 2008, among the Borrower, the
Lender and affiliates of the Lender, subject to the limitations set forth in
the Agreement.

 

The Borrower agrees that if,
and as often as, this Note is placed in the hands of an attorney for collection
or to defend or enforce any of the holder’s rights hereunder or under any
instrument securing payment of the same, the Borrower will pay to such holder
its reasonable attorneys’ fees and all expenses incurred in connection
therewith.  This Note is to be construed
according to the laws of the State of Oklahoma.

 

This Note is issued subject
to the terms of the Agreement.  Payment
of this Note is secured by the Financing Documents as more fully described in
the Agreement.  If the breach of any
provision of this Note is not cured within fifteen (15) days after written
notice by the holder to the Borrower, then on written notice by the holder to
the Borrower, the entire unpaid indebtedness evidenced by this Note will become
due, payable and collectible then or thereafter as the holder may elect,
regardless of the date of maturity of this Note, and, at the option of Lender,
and to the extent permitted by law, interest shall be payable on the
outstanding principal under this note at a per annum rate equal to fifteen
(15%) percent per annum calculated from the date of default until all amounts
payable under this note are paid in full. 
Failure by the holder to exercise such option will not constitute a
waiver of the right to exercise the same in the event of any subsequent
default.

 

The makers, endorsers,
sureties, guarantors and all other persons who may become liable for all or any
part of this Note severally waive presentment for payment and protest.  The foregoing parties consent to any
extension of time (whether one or more) of payment hereof, the modification
(whether one or more) of payment hereof, release or substitution of all or part
of the security for the payment hereof or release of any party liable for
payment of this Note.  Any such extension
or release may be made without notice to any such party and without discharging
such party’s liability hereunder.

 

Except as otherwise defined
herein, all terms defined or referenced in the Agreement will have the same
meanings herein as therein.

 

IN WITNESS WHEREOF, the
Borrower has executed this instrument effective the date first above written.

 

	
   

  	
   

  	
  APOTHECARYRX, LLC,

  
	
   

  	
   

  	
  an Oklahoma limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   /s/ LEWIS P. ZEIDNER

  
	
   

  	
   

  	
   

  	
  Lewis P. Zeidner, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (the “Borrower”)

  

 

 

2Exhibit 10.1

 

WADDELL & REED FINANCIAL, INC.

 

2003 EXECUTIVE INCENTIVE PLAN

As Amended and Restated

 

Effective January 1, 2008

 

1.                                      Purposes

 

The purposes of the Plan are
to advance the interests of stockholders of the Company by providing
performance-based incentives to eligible Participants and to enable the Company
and its Subsidiaries to attract, retain, motivate and reward the best qualified
executive officers and key employees by providing them with the opportunity to
earn competitive compensation directly linked to the Company’s performance. The
Plan is designed to assure that amounts paid to certain executive officers and
employees of the Company will not fail to be deductible by the Company for
Federal income tax purposes because of the limitations imposed by Section 162(m).
With respect to individuals who are Covered Employees, the Plan is intended to
provide “qualified performance based compensation,” as such term is defined in
Treas. Reg. Section 1.162-27(e), to the extent deemed appropriate by the
Committee at the time Performance Goals are established for a Performance
Period. Nothing herein shall be construed as preventing the Plan from providing
both “qualified performance-based compensation” and nonqualified compensation
for the same Performance Period in the manner permitted under Section 162(m).
The Plan shall be administered and construed in a manner consistent with Section 162(m) and
regulations thereunder for any Performance Period in which the Plan is intended
to provide “qualified performance based compensation.”

 

2.                                      Definitions

 

                Unless the context requires otherwise, the following
words as used in the Plan shall have the meanings ascribed to each below, it
being understood that masculine, feminine, and neuter pronouns are
interchangeable and that each comprehends the others.

 

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

 

(b)           “Committee” means the Compensation
Committee of the Board (or such other committee of the Board that the Board
shall designate from time to time) or any subcommittee thereof comprised of two
or more directors each of whom is an “outside director” within the meaning of Section 162(m).

 

(c)           “Company” means Waddell &
Reed Financial, Inc.

 

(d)           “Covered Employee” means (i) the
chief executive officer of the Company, and (ii) a person designated by
the Committee, at the time that Performance Goals are established, who the
Committee believes is likely to be a “covered employee” (within the meaning of Section 162(m)(3))
with respect to the Fiscal Year during which the Incentive Plan Award is
granted or in the foreseeable future.

 

 

(e)           “Fiscal Year” means the twelve month
period beginning on each January 1 and ending on the following December 31.

 

(f)            “Incentive Percentage” means the
pre-established award formula established by the Committee which specifies a
percentage of a pool of funds, as determined by the Committee, to be paid as an
Incentive Plan Award.

 

(g)           “Incentive Plan Award” means the
annual incentive compensation award granted under the Plan, which is contingent
and based upon the attainment of the Performance Goals with respect to a
Performance Period.

 

(h)           “Participant” means (i) each
executive officer of the Company, and (ii) each other individual employee
or member of a class of employees of the Company or a Subsidiary who the
Committee designates as a participant under the Plan.

 

(i)            “Performance Goals” means the
pre-established objective performance goals established by the Committee for
each Performance Period.

 

(j)            “Performance Period” means the Fiscal
Year or such shorter period as shall be established with respect to a
Participant by the Committee.

 

(k)           “Plan” means the Waddell &
Reed Financial, Inc. 2003 Executive Incentive Plan, as Amended and
Restated, as set forth herein and as may be amended, modified or supplemented
from time to time.

 

(l)            “Section 162(m)” means Section 162(m) of
the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (including any proposed regulations).

 

(m)          “Stock” means the Company’s Class A
common stock, $0.01 par value.

 

(n)           “Subsidiary” means any entity of
which the Company owns, directly or indirectly, equity representing more than
50% of the voting power of all classes of equity entitled to vote.

 

3.                                      Administration

 

(a)           Plan Administrator. 
The Plan shall be administered by the Committee, except as may be
delegated pursuant to Section 3(b). 
The Committee shall act pursuant to a majority vote at a meeting at
which quorum, as defined by the Committee Charter, is present or by unanimous written
consent. The Committee may employ such legal counsel, consultants, and agents
(including counsel or agents who are employees of the Company or a Subsidiary)
as it may deem desirable for the administration of the Plan and may rely upon
any opinion received from any such counsel, consultant, or agent and any
computation received from such consultant or agent. All expenses incurred in
the administration of the Plan, including, without limitation, for the
engagement of any counsel, consultant, or agent shall be paid by the Company.

 

(b)           Authority of the Committee.  Subject to the provisions of the Plan, the
Committee shall have full discretionary authority to administer and interpret
the Plan, to exercise all powers either specifically granted to it under the
Plan or as are necessary or advisable in the 

 

2

 

administration
of the Plan, to prescribe, amend and rescind rules and regulations
relating to the Plan, and to make all other determinations necessary or
advisable for the administration of the Plan; provided that, in no event, shall
the Plan be interpreted in a manner which would cause any amount payable under
the Plan to any Covered Employee to fail to qualify as performance based compensation
under Section 162(m) to the extent the Committee intends compensation
to so qualify. The Committee may delegate its responsibilities for
administering the Plan to one or more persons as the Committee deems necessary.
However, the Committee may not delegate its responsibilities under the Plan
relating to any Covered Employee where such delegation is prohibited under Section 162(m) pertaining
to “qualified performance based compensation.”

 

(c)           Effect of Committee Determinations.  Any determination made by the Committee under
the Plan shall be final and conclusive on all persons, including the Company,
the Participants (or any person claiming any rights under the Plan from or
through any Participant), and any stockholder of the Company, but shall be
based on such objective information or financial data as is relevant to the
Performance Goal(s).  No member or former
member of the Board or the Committee shall be liable for any act, omission,
interpretation, construction, or determination made in connection with the Plan
other than as a result of such individual’s willful misconduct.

 

4.                                      Participation

 

(a)           General
Participation.  For any Performance
Period, the Committee shall determine which of such executive officers and
other individual employees or class of employees shall participate in the Plan.

 

(b)           Participation by Covered Employees.  For any Performance Period for which “qualified
performance-based compensation” is to be provided, the Committee shall
designate the individual or classes of Covered Employees to whom such
compensation shall be paid no later than 90 days (or, for Performance Periods
of less than one year, the passage of 25% of the Performance Period) after the
beginning of any Performance Period.

 

5.                                      Incentive Plan Awards

 

The
Committee shall establish the Incentive Percentages and Performance Goals for
any Performance Period in accordance with Section 5 and certify whether
such goals have been obtained.

 

(a)           Performance
Goals. On or before the passage of 25% of any Performance Period (or such
other date as may be required or permitted under Section 162(m)), the
Committee shall establish the Performance Goals that must be satisfied in order
for a Participant to receive an Incentive Plan Award for such Performance
Period.  Solely with respect to Covered Employees,
for any Performance Period for which the Plan is intended to provide “qualified
performance-based compensation,” Performance Goals applicable to the Covered
Employees must be established by the Committee no later than 90 days (or, for
Performance Periods of less than one year, the passage of 25% of the
Performance Period) after the beginning of any Performance Period applicable to
the relevant award, and the attainment of such Performance Goal must be substantially
uncertain, for purposes of Section 162(m), at the time such Performance
Goals are established.

 

3

 

(1)           Performance
Goal Criteria.  One or more of the
following business criteria (including or excluding extraordinary and/or
non-recurring items to be determined by the Committee in advance) for the
Company, on a consolidated basis, and/or for specified subsidiaries or business
or geographical units of the Company (except with respect to the total
shareholder return and earnings per share criteria), shall be used by the
Committee in establishing Performance Goals for awards:  (i) earnings per share; (ii) increase
in revenues; (iii) increase in cash flow; (iv) increase in cash flow
return; (v) return on net assets; (vi) return on assets; (vii) return
on investment; (viii) return on capital; (ix) return on equity; (x) economic
value added; (xi) operating margin; (xii) contribution margin; (xiii) net
income; (xiv) pre-tax earnings; (xv) pre-tax earnings before interest,
depreciation and amortization; (xvi) pre-tax operating earnings after interest
expense and before incentives, service fees, and extraordinary or special
items; (xvii) operating income; (xviii) total stockholder return; (xix) debt
reduction; and (xx) any of the above goals determined on an absolute or
relative basis, or as adjusted in any manner which may be determined in the
discretion of the Committee, or as compared to the performance of a published
or special index deemed applicable by the Committee including, but not limited
to, the Standard & Poor’s 500 Stock Index or a group of competitor
companies.

 

(b)           Incentive Percentage.  On or before the passage of 25% of any
Performance Period (or such other date as may be required or permitted under Section 162(m)),
the Committee shall establish the Incentive Percentage applicable to a
Participant’s Incentive Plan Award for such Performance Period.  The Committee may establish different
Incentive Percentages for individual Participants or different classes of
Participants, and/or, if applicable, the achievement levels of the Performance
Goals. Solely with respect to Covered Employees, for any Performance Period for
which the Plan is intended to provide “qualified performance based
compensation,” the Incentive Percentages applicable to the Covered Employees
must be established by the Committee no later than 90 days (or, for Performance
Periods of less than one year, the passage of 25% of the Performance Period)
after the beginning of the Performance Period for which the Incentive Plan
Award pertains.

 

(c)           Certification and Maximum Amount
Payable. The Committee shall, promptly after the date on which the
necessary financial, individual or other information for a particular
Performance Period becomes available, certify (i) whether, or the degree to
which, if applicable, each of the Performance Goals has been attained; and (ii) with
respect to each qualifying Participant, the amount of the Incentive Plan Award,
if any, payable to such Participant.  If
the Committee certifies in writing that any of the Performance Goals
established for the relevant Performance Period under Section 5(a) have
been satisfied, each Participant who is employed by the Company or one of its
Subsidiaries on the last day of the Fiscal Year related to the Performance
Period for which the Incentive Plan Award is payable shall receive the
Incentive Plan Award. The Incentive Plan Award shall be determined by
multiplying the Incentive Percentage applicable to the Participant by the
dollar amount of the pool of funds available with respect to the Performance
Period to which the Incentive Plan Award pertains. In no event, however, will a
Covered Employee be paid compensation pursuant to an Incentive Plan Award 

 

4

 

in excess of $7,500,000 with
respect to any Fiscal Year.  Any
Incentive Plan Award that is paid, in whole or in part, in either options to
purchase Stock or in shares of Stock that will be subject to certain
restrictions and/or a risk of forfeiture, as described in Section 6 below,
will be valued, for purposes of determining whether this $7,500,000 per person
limitation has been exceeded, by multiplying the number of shares of Stock
subject to such option or restricted Stock award by the closing price of a
share of Stock on the date the Incentive Plan Award is settled (i.e., the date that the options to purchase Stock or
restricted shares of Stock are granted to the Covered Employee).

 

(d)           Eligibility.  To be eligible for payment of any Incentive
Plan Award, the Participant must (i) have performed the Participant’s
duties to the satisfaction of the Committee, (ii) have not engaged in any
act deemed by the Committee to be contrary to the best interests of the
Company, and (iii) otherwise complied with Company policies at all times prior
to the date the Incentive Plan Award is actually paid.  No Incentive Plan Award shall be paid to any
Participant who does not satisfy each of the above.

 

(e)           Termination of Employment.  If a Participant’s employment terminates due
to death, disability or a change of control of the Company and such termination
occurs prior to the last day of the Fiscal Year an Incentive Plan Award is
payable, such Participant may, in the discretion of the Committee, receive an
Incentive Plan Award equal to the maximum Incentive Plan Award payable to such
Participant multiplied by a fraction, the numerator of which is the number of
days that have elapsed during the Performance Period in which the termination
occurs prior to and including the date of the Participant’s termination of
employment and the denominator of which is the total number of days in the
Performance Period.

 

(f)            Negative Discretion.
Notwithstanding any provision in this Section 5 to the contrary, the
Committee shall have the right, in its absolute discretion, (i) to reduce
or eliminate the amount otherwise payable to any Participant under Section 5
based on individual performance or any other factors that the Committee, in its
discretion, shall deem appropriate and (ii) to establish rules or
procedures that have the effect of limiting the amount payable to each
Participant to an amount that is less than the maximum amount otherwise
authorized under Section 5(c). 
Notwithstanding the foregoing, in no event shall reduction of any
Participant’s payment amount have the effect of increasing the amount paid to
any Covered Employee.

 

(g)           Affirmative Discretion.
Notwithstanding any other provision in the Plan to the contrary, with respect
to any annual Incentive Plan Award that is not intended to be “qualified performance
based compensation” for purposes of Section 162(m), (i) the Committee
shall have the right, in its discretion, to pay to any Participant who is not a
Covered Employee an annual Incentive Plan Award for such Performance Period in
an amount up to the maximum bonus payable under Section 5(c), based on
individual performance or any other criteria that the Committee deems
appropriate, and (ii) in connection with the hiring of any person who is
or becomes a Covered Employee, the Committee may provide for a minimum
Incentive Plan Award amount in the calendar year of hire, regardless of whether
performance objectives are attained.

 

5

 

6.                                      Payment

 

Except as otherwise provided
hereunder, payment of any Incentive Plan Award amount determined under Section 5
shall be made to each Participant as soon as practicable after the Committee
certifies that one or more of the applicable Performance Goals have been
attained (or, in the case of any Incentive Plan Award payable under the
provisions of Section 5(g), after the Committee determines the amount of
any such Incentive Plan Award), but, except as provided below with respect to
Stock-based payments, in no event later than March 15 of the year
following the year to which the Performance Period relates.  The Incentive Plan Award may be paid in whole
or in part, in the discretion of the Committee, in either options to purchase
Stock or in shares of Stock which will be subject to certain restrictions
and/or a risk of forfeiture, with the remainder, if any, to be paid in
cash.  The value of any Stock-based
payment under an Incentive Plan Award shall be determined in the sole and
absolute discretion of the Committee. 
The Committee will establish a formula to convert an Incentive Plan
Award into a Stock-based payment of equivalent fair market value.  All options to purchase Stock and restricted
Stock issued as payment for all or any part of an Incentive Plan Award shall be
distributed from the total number of shares of Stock reserved and available for
distribution under the Waddell & Reed Financial, Inc. 1998 Stock
Incentive Plan, as amended and restated, and as may be further amended,
modified or restated, (or such other equity compensation plan maintained by the
Company that has been approved by the stockholders of the Company) and shall
comply in full with all of the terms and provisions regarding stock options and
restricted stock, as applicable, set forth in such stock award plan, including,
without limitation, Section 6A thereof.  
To the extent the Committee converts a portion of an Incentive Plan
Award into a Stock-based payment, the Stock-based payment need not be granted
to the Participant by March 15 of the year following the year to which the
Performance Period relates so long as the Committee establishes the dollar
amount of the Stock-based payment and the date the Stock-based payment will be
granted to the Participant prior to the end of the Fiscal Year to which the
Incentive Plan Award relates.

 

7.                                      General
Provisions

 

(a)           Effectiveness of the Plan. The
Plan became effective with respect to calendar years beginning on or after January 1,
1999 and shall remain effective until December 31, 2013, unless the term
is extended by action of the Board.

 

(b)           Amendment and
Termination. Notwithstanding Section 7(a), the Board or the Committee
may at any time amend, suspend, discontinue, or terminate the Plan; provided,
however, that no such amendment, suspension, discontinuance, or termination
shall adversely affect the rights of any Participant with respect to any Fiscal
Year which has already commenced and no such action shall be effective without
approval by the stockholders of the Company to the extent necessary to continue
to qualify the amounts payable hereunder to Covered Employees as “qualified
performance-based compensation” under Section 162(m).

 

(c)           Designation of
Beneficiary. Each Participant may designate a beneficiary or beneficiaries
(which beneficiary may be an entity other than a natural person) to receive any
payments which may be made following the Participant’s death. Such designation
may be changed or canceled at any time without the consent of any such
beneficiary. Any such 

 

6

 

designation,
change or cancellation must be made in a form approved by the Committee and
shall not be effective until received by the Committee. If no beneficiary has
been named, or the designated beneficiary or beneficiaries shall have
predeceased the Participant, the beneficiary shall be the Participant’s spouse
or, if no spouse survives the Participant, the Participant’s estate. If a
Participant designates more than one beneficiary, the rights of such
beneficiaries shall be payable in equal shares, unless the Participant has
designated otherwise.

 

(d)           No Right of
Continued Employment. Nothing in this Plan shall be construed as conferring
upon any Participant any right to continue in the employment of the Company or
any of its Subsidiaries.

 

(e)           No Limitation on
Corporate Actions. Nothing contained in the Plan shall be construed to
prevent the Company or any Subsidiary from taking any corporate action which is
deemed by it to be appropriate or in its best interest, whether or not such
action would have an adverse effect on any awards made under the Plan. No
employee, beneficiary or other person shall have any claim against the Company
or any Subsidiary as a result of any such action.

 

(f)            Non-alienation
of Benefits. Except as expressly provided herein, no Participant or
beneficiary shall have the power or right to transfer, anticipate, or otherwise
encumber the Participant’s interest under the Plan. The Company’s obligations
under this Plan are not assignable or transferable except to (i) a
corporation which acquires all or substantially all of the Company’s assets, or
(ii) any corporation into which the Company may be merged or consolidated.
The provisions of the Plan shall inure to the benefit of each Participant and
the Participant’s beneficiaries, heirs, executors, administrators, or
successors in interest.

 

(g)           Withholding.
Any amount payable to a Participant or a beneficiary under this Plan shall be
subject to any applicable Federal, state, and local income and employment taxes
and any other amounts that the Company or a Subsidiary is required by law to
deduct and withhold from such payment.

 

(h)           Severability.
If any provision of this Plan is held unenforceable, the remainder of the Plan
shall continue in full force and effect without regard to such unenforceable
provision and shall be applied as though the unenforceable provision were not
contained in the Plan.

 

(i)            Governing Law.
The Plan shall be construed in accordance with and governed by the laws of the
State of Kansas, without reference to the principles of conflict of laws except
that any matters relating to the internal governance of the Company shall be
governed by the general corporate laws of the state of Delaware.

 

(j)            Headings.
Headings are inserted in this Plan for convenience of reference only and are to
be ignored in a construction of the provisions of the Plan.

 

(k)           Plan not Funded.
Plan awards shall be made solely from the general assets of the Company. To the
extent any person acquires a right to receive payments from the Company under
the Plan, the right is no greater than the right of any other unsecured general
creditor.

 

(l)            No Guarantee.
While a discretionary Incentive Plan Award may have been paid in the past,
whether such payments will be made in the future will depend upon various
factors, 

 

7

such as the Company’s
financial condition and performance. There is no guarantee that the Company
will pay any such discretionary award. 
The Committee may, in its sole discretion, reduce, eliminate or
increase, any Incentive Plan Award, except that the amount of any Incentive
Plan Award intended to be “qualified performance-based compensation” may not be
increased above the amount established for the Performance Goal and Incentive
Percentage. The Company may withhold an Incentive Plan Award, or portions
thereof, for any reason including gross misconduct (e.g., theft,
dishonesty/compromised integrity, fraud, harassment, etc.) or any actions
deemed to be contrary to the best interests of the Company by the Committee.

 

(m)          Rights to Payments.
No Participant shall have any enforceable right to receive any Incentive Plan
Award made with respect to a Performance Period or to retain any payment made
with respect thereto if for any reason the requirements of Section 5 are
not satisfied.

 

8

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