Document:

EX-10.1

Exhibit 10.1

INTERNATIONAL METAL ENTERPRISES, INC.

2006 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK PLAN

	1.	 	DEFINITIONS.

Unless otherwise specified or unless the context otherwise requires, the following terms,
as used in this International Metals, Inc. 2006 Employee, Director and Consultant Stock
Plan, have the following meanings:

Administrator means the Board of Directors, unless it has delegated power
to act on its behalf to the Committee, in which case the Administrator means the
Committee.

Affiliate means a corporation which, for purposes of Section 424 of the
Code, is a parent or subsidiary of the Company, direct or indirect.

Agreement means an agreement between the Company and a Participant
delivered pursuant to the Plan, in such form as the Administrator shall approve.

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

Code means the United States Internal Revenue Code of 1986, as amended.

Committee means the committee of the Board of Directors to which the Board
of Directors has delegated power to act under or pursuant to the provisions of the
Plan.

Common Stock means shares of the Company’s common stock, $0.0001 par value
per share.

Company means International Metal Enterprises, Inc., a Delaware corporation.

Disability or Disabled means permanent and total disability as
defined in Section 22(e)(3) of the Code.

Employee means any employee of the Company or of an Affiliate (including,
without limitation, an employee who is also serving as an officer or director of
the Company or of an Affiliate), designated by the Administrator to be eligible to
be granted one or more Stock Rights under the Plan.

Fair Market Value of a Share of Common Stock means:

(1) If the Common Stock is listed on a national securities exchange or traded in
the over-the-counter market and sales prices are regularly reported for the

 

 

Common Stock, the closing or last price of the Common Stock on the composite tape or other
comparable reporting system for the trading day on the applicable date and if such date is not a
trading day, the last market trading day prior to such date;

(2) If the Common Stock is not traded on a national securities exchange but is
traded on the over-the-counter market, if sales prices are not regularly reported for
the Common Stock for the trading day referred to in clause (1), and if bid and
asked prices for the Common Stock are regularly reported, the mean between the
bid and the asked price for the Common Stock at the close of trading in the over-
the-counter market for the trading day on which Common Stock was traded on the
applicable date and if such date is not a trading day, the last market trading day
prior to such date; and

(3) If the Common Stock is neither listed on a national securities exchange
nor traded in the over-the-counter market, such value as the Administrator, in
good faith, shall determine.

ISO means an option meant to qualify as an incentive stock option under Section 422 of the
Code.

Non-Qualified Option means an option which is not intended to qualify as an ISO.

Option means an ISO or Non-Qualified Option granted under the Plan.

Participant means an Employee, director or consultant of the Company or an Affiliate to
whom one or more Stock Rights are granted under the Plan. As used herein, “Participant” shall
include “Participant’s Survivors” where the context requires.

Plan means this International Metal Enterprises, Inc. 2006 Employee, Director and
Consultant Stock Plan.

Shares means shares of the Common Stock as to which Stock Rights have been or may be
granted under the Plan or any shares of capital stock into which the Shares are changed or for
which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under
the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or
both.

Stock-Based Award means a grant by the Company under the Plan of an equity award or an
equity based award which is not an Option or a Stock Grant.

Stock Grant means a grant by the Company of Shares under the Plan.

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Stock Right means a right to Shares or the value of Shares of the Company
granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant or a
Stock-Based Award.

Survivor means a deceased Participant’s legal representatives and/or any
person or persons who acquired the Participant’s rights to a Stock Right by will or
by the laws of descent and distribution.

	2.	 	PURPOSES OF THE PLAN.

     The Plan is intended to encourage ownership of Shares by Employees and directors of and
certain consultants to the Company in order to attract and retain such people, to induce them to
work for the benefit of the Company or of an Affiliate and to provide additional incentive for
them to promote the success of the Company or of an Affiliate. The Plan provides for the granting
of ISOs, Non-Qualified Options, Stock Grants and Stock-Based Awards.

	3.	 	SHARES SUBJECT TO THE PLAN.

     (a) The number of Shares which may be issued from time to time pursuant to this
Plan shall be 5,000,000, or the equivalent of such number of Shares after the Administrator,
in its
sole discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 24 of the Plan.

     (b) If an Option ceases to be “outstanding,” in whole or in part (other than by
exercise), or if the Company shall reacquire (at not more than its original issuance price) any
Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or
is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the
unissued Shares which were subject to such Stock Right shall again be available for issuance
from time to time pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is
exercised, in whole or in part, by tender of Shares or if the Company’s tax withholding
obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued
under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the
number of Shares that were subject to the Stock Right or portion thereof, and not the net number
of Shares actually issued.

	4.	 	ADMINISTRATION OF THE PLAN.

     The Administrator of the Plan will be the Board of Directors, except to the extent the Board
of Directors delegates its authority to the Committee, in which case the Committee shall be the
Administrator. Subject to the provisions of the Plan, the Administrator is authorized to:

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	 	a.	 	Interpret the provisions of the Plan and all Stock Rights and to make all rules
and
determinations which it deems necessary or advisable for the administration of the
Plan;
	 
	 	b.	 	Determine which Employees, directors and consultants shall be granted Stock
Rights;
	 
	 	c.	 	Determine the number of Shares for which a Stock Right or Stock Rights shall be
granted, provided, however, that in no event shall Stock Rights with respect to
more than 500,000 Shares be granted to any Participant in any fiscal year;
	 
	 	d.	 	Specify the terms and conditions upon which a Stock Right or Stock Rights may
be granted;
	 
	 	e.	 	Make changes to any outstanding Stock Right, including, without limitation, to
reduce or increase the exercise price or purchase price, accelerate the vesting
schedule or extend the expiration date, provided that no such change shall impair
the rights of a Participant under any grant previously made without such
Participant’s consent;
	 
	 	f.	 	Adopt any sub-plans applicable to residents of any specified jurisdiction as
it deems necessary or appropriate in order to comply with or take advantage of any tax
or other laws applicable to the Company or to Plan Participants or to otherwise
facilitate the administration of the Plan, which sub-plans may include additional
restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a
Stock Right.

provided, however, that all such interpretations, rules, determinations, terms and conditions shall
be made and prescribed in the context of preserving the tax status under Section 422 of the Code of
those Options which are designated as ISOs. Subject to the foregoing, the interpretation and
construction by the Administrator of any provisions of the Plan or of any Stock Right granted under
it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is
the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take
any action under the Plan that would otherwise be the responsibility of the Committee.

        To the extent permitted under applicable law, the Board of Directors or the Committee may
allocate all or any portion of its responsibilities and powers to any one or more of its members
and may delegate all or any portion of its responsibilities and powers to any other

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person selected by it. The Board of Directors or the Committee may revoke any such allocation or
delegation at any time.

	5.	 	ELIGIBILITY FOR PARTICIPATION.

     The Administrator will, in its sole discretion, name the Participants in the Plan, provided,
however, that each Participant must be an Employee, director or consultant of the Company or of an
Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator
may authorize the grant of a Stock Right to a person not then an Employee, director or consultant
of the Company or of an Affiliate; provided, however, that the actual grant of such Stock Right
shall be conditioned upon such person becoming eligible to become a Participant at or prior to the
time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to
Employees. Non-Qualified Options, Stock Grants and Stock-Based Awards may be granted to any
Employee, director or consultant of the Company or an Affiliate. The granting of any Stock Right
to any individual shall neither entitle that individual to, nor disqualify him or her from,
participation in any other grant of Stock Rights.

	6.	 	TERMS AND CONDITIONS OF OPTIONS.

     Each Option shall be set forth in writing in an Option Agreement, duly executed by the
Company and, to the extent required by law or requested by the Company, by the Participant. The
Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem
appropriate including, without limitation, subsequent approval by the shareholders of the Company
of this Plan or any amendments thereto. The Option Agreements shall be subject to at least the
following terms and conditions:

	 	A.	 	Non-Qualified Options: Each Option intended to be a Non-Qualified
Option shall be subject to the terms and conditions which the Administrator determines
to be appropriate and in the best interest of the Company, subject to the following
minimum standards for any such Non-Qualified Option:

	 	a.	 	Option Price: Each Option Agreement shall state the
option price (per
share) of the Shares covered by each Option, which option price shall be
determined by the Administrator but shall not be less than the Fair Market
Value per share of Common Stock.
	 
	 	b.	 	Number of Shares: Each Option Agreement shall state the
number of
Shares to which it pertains.
	 
	 	c.	 	Option Periods: Each Option Agreement shall state the
date or dates on
which it first is exercisable and the date after which it may no longer be
exercised, and may provide that the Option rights accrue or become
exercisable in installments over a period of months or years, or upon the

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	 	 	 	occurrence of certain conditions or the attainment of stated goals or events.
	 
	 	d.	 	Option Conditions: Exercise of any Option may be conditioned upon
the Participant’s execution of a Share purchase agreement in form satisfactory to the
Administrator providing for certain protections for the Company and its other
shareholders, including requirements that:

	 	i.	 	The Participant’s or the Participant’s Survivors’ right to
sell or transfer the Shares may be restricted; and
	 
	 	ii.	 	The Participant or the Participant’s Survivors may be
required to execute letters of investment intent and must also acknowledge
that the Shares will bear legends noting any applicable restrictions.

	 	B.	 	ISOs: Each Option intended to be an ISO shall be issued only to an Employee and be
subject to the following terms and conditions, with such additional restrictions or changes
as the Administrator determines are appropriate but not in conflict with Section 422 of the
Code and relevant regulations and rulings of the Internal Revenue Service:

	 	a.	 	Minimum standards: The ISO shall meet the minimum standards required
of Non-Qualified Options, as described in Paragraph 6 (A) above, except
clause (a) thereunder.
	 
	 	b.	 	Option Price: Immediately before the ISO is granted, if the
Participant
owns, directly or by reason of the applicable attribution rules in
Section 424(d) of the Code:

	 	i.	 	10% or less of the total combined voting power of all classes of
    stock of the Company or an Affiliate, the Option price per share of the
Shares covered by each ISO shall not be less than 100% of the Fair Market
Value per share of the Shares on the date of the grant of the Option; or
	 
	 	ii.	 	More than 10% of the total combined voting power of all
classes of stock of the Company or an Affiliate, the Option price per share
of the Shares covered by each ISO shall not be less than 110% of the Fair
Market Value on the date of grant.

	 	c.	 	Term of Option: For Participants who own:

	 	i.	 	10% or less of the total combined voting power of all
classes of stock of the Company or an Affiliate, each ISO shall terminate not

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	 	 	 	more than ten years from the date of the grant or at such earlier
time as the Option Agreement may provide; or
	 
	 	ii.	 	More than 10% of the total combined voting
power of all classes of stock of the Company or an Affiliate, each ISO
shall terminate not more than five years from the date of the grant or
at such earlier time as the Option Agreement may provide.

	 	d.	 	Limitation on Yearly Exercise: The Option Agreements
shall restrict the amount of ISOs which may become exercisable in any calendar
year (under this or any other ISO plan of the Company or an Affiliate) so that
the aggregate Fair Market Value (determined at the time each ISO is granted)
of the stock with respect to which ISOs are exercisable for the first time by
the Participant in any calendar year does not exceed $100,000.

	7.	 	TERMS AND CONDITIONS OF STOCK GRANTS.

     Each offer of a Stock Grant to a Participant shall state the date prior to which the Stock
Grant must be accepted by the Participant, and the principal terms of each Stock Grant shall be
set forth in an Agreement, duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant. The Agreement shall be in a form approved by the
Administrator and shall contain terms and conditions which the Administrator determines to be
appropriate and in the best interest of the Company, subject to the following minimum standards:

	 	(a)	 	Each Agreement shall state the purchase price (per share), if any, of the
Shares
covered by each Stock Grant, which purchase price shall be determined by the
Administrator but shall not be less than the minimum consideration required by
the Delaware General Corporation Law on the date of the grant of the Stock
Grant;
	 
	 	(b)	 	Each Agreement shall state the number of Shares to which the Stock Grant
pertains; and
	 
	 	(c)	 	Each Agreement shall include the terms of any right of the Company to restrict
or reacquire the Shares subject to the Stock Grant, including the time and events
upon which such rights shall accrue and the purchase price therefor, if any.

	8.	 	TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS.

     The Board shall have the right to grant other Stock-Based Awards based upon the Common
Stock having such terms and conditions as the Board may determine, including, without
limitation, the grant of Shares based upon certain conditions, the grant of securities

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convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock
units. The principal terms of each Stock-Based Award shall be set forth in an Agreement, duly
executed by the Company and, to the extent required by law or requested by the Company, by the
Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms
and conditions which the Administrator determines to be appropriate and in the best interest of the
Company.

	9.	 	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

     An Option (or any part or installment thereof) shall be exercised by giving written notice to
the Company or its designee, together with provision for payment of the full purchase price in
accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon
compliance with any other condition(s) set forth in the Option Agreement. Such notice shall be
signed by the person exercising the Option, shall state the number of Shares with respect to which
the Option is being exercised and shall contain any representation required by the Plan or the
Option Agreement. Payment of the purchase price for the Shares as to which such Option is being
exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion
of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal
as of the date of the exercise to the cash exercise price of the Option and held for at least six
months, or (c) at the discretion of the Administrator, by having the Company retain from the
shares otherwise issuable upon exercise of the Option, a number of shares having a Fair Market
Value equal as of the date of exercise to the exercise price of the Option, or (d) at the
discretion of the Administrator, by delivery of the grantee’s personal recourse note bearing
interest payable not less than annually at no less than 100% of the applicable Federal rate, as
defined in Section 1274(d) of the Code, or (e) at the discretion of the Administrator, in
accordance with a cashless exercise program established with a securities brokerage firm, and
approved by the Administrator, or (f) at the discretion of the Administrator, by any combination
of (a), (b), (c), (d) and (e) above or (g) at the discretion of the Administrator, payment of such
other lawful consideration as the Administrator may determine. Notwithstanding the foregoing, the
Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422
of the Code.

     The Company shall then reasonably promptly deliver the Shares as to which such Option was
exercised to the Participant (or to the Participant’s Survivors, as the case may be). In
determining what constitutes “reasonably promptly,” it is expressly understood that the issuance
and delivery of the Shares may be delayed by the Company in order to comply with any law or
regulation (including, without limitation, state securities or “blue sky” laws) which requires the
Company to take any action with respect to the Shares prior to their issuance. The Shares shall,
upon delivery, be fully paid, non-assessable Shares.

     The Administrator shall have the right to accelerate the date of exercise of any installment
of any Option; provided that the Administrator shall not accelerate the exercise date of any
installment of any Option granted to an Employee as an ISO (and not previously converted into a
Non-Qualified Option pursuant to Paragraph 27) if such acceleration would

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violate the annual vesting limitation contained in Section 422(d) of the Code, as described in
Paragraph 6.B.d.

     The Administrator may, in its discretion, amend any term or condition of an outstanding
Option provided (i) such term or condition as amended is permitted by the Plan, (ii) any such
amendment shall be made only with the consent of the Participant to whom the Option was granted,
or in the event of the death of the Participant, the Participant’s Survivors, if the amendment is
adverse to the Participant, and (iii) any such amendment of any Option shall be made only after
the Administrator determines whether such amendment would constitute a “modification” of any
Option which is an ISO (as that term is defined in Section 424(h) of the Code) or would cause any
adverse tax consequences for the holder of such Option including, but not limited to, pursuant to
Section 409A of the Code.

	10.	 	ACCEPTANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

     A Stock Grant or Stock-Based Award (or any part or installment thereof) shall be accepted by
executing the applicable Agreement and delivering it to the Company or its designee, together with
provision for payment of the full purchase price, if any, in accordance with this Paragraph for the
Shares as to which such Stock Grant or Stock-Based Award is being accepted, and upon compliance
with any other conditions set forth in the applicable Agreement. Payment of the purchase price for
the Shares as to which such Stock Grant or Stock-Based Award is being accepted shall be made (a) in
United States dollars in cash or by check, or (b) at the discretion of the Administrator, through
delivery of shares of Common Stock held for at least six months and having a Fair Market Value
equal as of the date of acceptance of the Stock Grant or Stock Based-Award to the purchase price of
the Stock Grant or Stock-Based Award, or (c) at the discretion of the Administrator, by delivery of
the grantee’s personal recourse note bearing interest payable not less than annually at no less
than 100% of the applicable Federal rate, as defined in Section 1274(d) of the Code, or (d) at the
discretion of the Administrator, by any combination of (a), (b) and (c) above; or (e) at the
discretion of the Administrator, payment of such other lawful consideration as the Administrator
may determine.

     The Company shall then, if required by the applicable Agreement, reasonably promptly deliver
the Shares as to which such Stock Grant or Stock-Based Award was accepted to the Participant (or
to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in
the applicable Agreement. In determining what constitutes “reasonably promptly,” it is expressly
understood that the issuance and delivery of the Shares may be delayed by the Company in order to
comply with any law or regulation (including, without limitation, state securities or “blue sky”
laws) which requires the Company to take any action with respect to the Shares prior to their
issuance.

     The Administrator may, in its discretion, amend any term or condition of an outstanding Stock
Grant, Stock-Based Award or applicable Agreement provided (i) such term or condition as amended is
permitted by the Plan, and (ii) any such amendment shall be made only with the

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consent of the Participant to whom the Stock Grant or Stock-Based Award was made, if the amendment
is adverse to the Participant.

	11.	 	RIGHTS AS A SHAREHOLDER.

     No Participant to whom a Stock Right has been granted shall have rights as a shareholder with
respect to any Shares covered by such Stock Right, except after due exercise of the Option or
acceptance of the Stock Grant or as set forth in any Agreement, and tender of the full purchase
price, if any, for the Shares being purchased pursuant to such exercise or acceptance and
registration of the Shares in the Company’s share register in the name of the Participant.

	12.	 	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.

     By its terms, a Stock Right granted to a Participant shall not be transferable by the
Participant other than (i) by will or by the laws of descent and distribution, or (ii) as approved
by the Administrator in its discretion and set forth in the applicable Agreement. Notwithstanding
the foregoing, an ISO transferred except in compliance with clause (i) above shall no longer
qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with the
prior approval of the Administrator and in such form as the Administrator shall prescribe, shall
not be deemed a transfer prohibited by this Paragraph. Except as provided above, a Stock Right
shall only be exercisable or may only be accepted, during the Participant’s lifetime, by such
Participant (or by his or her legal representative) and shall not be assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to
execution, attachment or similar process. Any attempted transfer, assignment, pledge,
hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary
to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock
Right, shall be null and void.

	13.	 	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN “FOR
CAUSE” OR DEATH OR DISABILITY.

     Except as otherwise provided in a Participant’s Option Agreement, in the event of a
termination of service (whether as an employee, director or consultant) with the Company or an
Affiliate before the Participant has exercised an Option, the following rules apply:

	 	a.	 	A Participant who ceases to be an employee, director or consultant of the
Company or of an Affiliate (for any reason other than termination “for cause”,
Disability, or death for which events there are special rules in Paragraphs 14, 15, and
16, respectively), may exercise any Option granted to him or her to the extent that the
Option is exercisable on the date of such termination of service, but only within such
term as the Administrator has designated in a Participant’s Option Agreement.

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	 	b.	 	Except as provided in Subparagraph (c) below, or Paragraph 15 or 16, in no event
may an Option intended to be an ISO, be exercised later than three months after
the Participant’s termination of employment.
	 
	 	c.	 	The provisions of this Paragraph, and not the provisions of Paragraph 15 or 16,
shall apply to a Participant who subsequently becomes Disabled or dies after the
termination of employment, director status or consultancy; provided, however, in
the case of a Participant’s Disability or death within three months after the
termination of employment, director status or consultancy, the Participant or the
Participant’s Survivors may exercise the Option within one year after the date of
the Participant’s termination of service, but in no event after the date of
expiration
of the term of the Option.
	 
	 	d.	 	Notwithstanding anything herein to the contrary, if subsequent to a
Participant’s
termination of employment, termination of director status or termination of
consultancy, but prior to the exercise of an Option, the Board of Directors
determines that, either prior or subsequent to the Participant’s termination, the
Participant engaged in conduct which would constitute “cause”, then such
Participant shall forthwith cease to have any right to exercise any Option.
	 
	 	e.	 	A Participant to whom an Option has been granted under the Plan who is absent
from the Company or an Affiliate because of temporary disability (any disability
other than a Disability as defined in Paragraph 1 hereof), or who is on leave of
absence for any purpose, shall not, during the period of any such absence, be
deemed, by virtue of such absence alone, to have terminated such Participant’s
employment, director status or consultancy with the Company or with an
Affiliate, except as the Administrator may otherwise expressly provide.
	 
	 	f.	 	Except as required by law or as set forth in a Participant’s Option Agreement,
Options granted under the Plan shall not be affected by any change of a
Participant’s status within or among the Company and any Affiliates, so long as
the Participant continues to be an employee, director or consultant of the
Company or any Affiliate.

	14.	 	EFFECT ON OPTIONS OF TERMINATION OF SERVICE “FOR CAUSE”.

     Except as otherwise provided in a Participant’s Option Agreement, the following rules apply
if the Participant’s service (whether as an employee, director or consultant) with the Company or
an Affiliate is terminated “for cause” prior to the time that all his or her outstanding Options
have been exercised:

	 	a.	 	All outstanding and unexercised Options as of the time the Participant is
notified
his or her service is terminated “for cause” will immediately be forfeited.
	 
	 	b.	 	For purposes of this Plan, “cause” shall include (and is not limited to)
dishonesty
with respect to the Company or any Affiliate, insubordination, substantial

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	 	 	 	malfeasance or non-feasance of duty, unauthorized disclosure of confidential
information, breach by the Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement between
the Participant and the Company, and conduct substantially prejudicial to the
business of the Company or any Affiliate. The determination of the Administrator as
to the existence of “cause” will be conclusive on the Participant and the Company.
	 
	 	c.	 	“Cause” is not limited to events which have occurred prior to a Participant’s
termination of service, nor is it necessary that the Administrator’s finding of
“cause” occur prior to termination. If the Administrator determines, subsequent
to a Participant’s termination of service but prior to the exercise of an Option,
that
either prior or subsequent to the Participant’s termination the Participant engaged
in conduct which would constitute “cause”, then the right to exercise any Option
is forfeited.
	 
	 	d.	 	Any provision in an agreement between the Participant and the Company or an
Affiliate, which contains a conflicting definition of “cause” for termination and
which is in effect at the time of such termination, shall supersede the definition
in
this Plan with respect to that Participant.

	15.	 	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY. 

     Except as otherwise provided in a Participant’s Option Agreement:

	 	a.	 	A Participant who ceases to be an employee, director or consultant of the
Company or of an Affiliate by reason of Disability may exercise any Option
granted to such Participant:

     (i) To the extent that the Option has become exercisable but has not been
exercised on the date of Disability; and

     (ii) In the event rights to exercise the Option accrue periodically, to the
extent of a pro rata portion through the date of Disability of any additional
vesting rights that would have accrued on the next vesting date had the Participant
not become Disabled. The proration shall be based upon the number of days accrued
in the current vesting period prior to the date of Disability.

	 	b.	 	A Disabled Participant may exercise such rights only within the period ending
one year after the date of the Participant’s termination of employment, directorship or
consultancy, as the case may be, notwithstanding that the Participant might have
been able to exercise the Option as to some or all of the Shares on a later date if
the Participant had not become Disabled and had continued to be an employee,
director or consultant or, if earlier, within the originally prescribed term of the
Option.

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	 	c.	 	The Administrator shall make the determination both of whether Disability has
occurred and the date of its occurrence (unless a procedure for such determination is
set forth in another agreement between the Company and such Participant, in which case
such procedure shall be used for such determination). If requested, the Participant
shall be examined by a physician selected or approved by the Administrator, the cost
of which examination shall be paid for by the Company.

	16.	 	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.
	 
	 	 	Except as otherwise provided in a Participant’s Option Agreement:

	 	a.	 	In the event of the death of a Participant while the Participant is an
employee, director or consultant of the Company or of an Affiliate, such Option may be
exercised by the Participant’s Survivors:

     (i) To the extent that the Option has become exercisable but has not been
exercised on the date of death; and

     (ii) In the event rights to exercise the Option accrue periodically, to the
extent of a pro rata portion through the date of death of any additional vesting
rights that would have accrued on the next vesting date had the Participant not
died. The proration shall be based upon the number of days accrued in the current
vesting period prior to the Participant’s date of death.

	 	b.	 	If the Participant’s Survivors wish to exercise the Option, they must take all
necessary steps to exercise the Option within one year after the date of death of
such Participant, notwithstanding that the decedent might have been able to
exercise the Option as to some or all of the Shares on a later date if he or she had
not died and had continued to be an employee, director or consultant or, if earlier,
within the originally prescribed term of the Option.

	17.	 	EFFECT OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS.

     In the event of a termination of service (whether as an employee, director or consultant)
with the Company or an Affiliate for any reason before the Participant has accepted a Stock Grant,
such offer shall terminate.

     For purposes of this Paragraph 17 and Paragraph 18 below, a Participant to whom a Stock Grant
has been offered and accepted under the Plan who is absent from work with the Company or with an
Affiliate because of temporary disability (any disability other than a Disability as defined in
Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period
of any such absence, be deemed, by virtue of such absence alone, to have terminated

13

 

such Participant’s employment, director status or consultancy with the Company or with an
Affiliate, except as the Administrator may otherwise expressly provide.

     In addition, for purposes of this Paragraph 17 and Paragraph 18 below, any change of
employment or other service within or among the Company and any Affiliates shall not be treated as
a termination of employment, director status or consultancy so long as the Participant continues
to be an employee, director or consultant of the Company or any Affiliate.

	18.	 	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY.

     Except as otherwise provided in a Participant’s Stock Grant Agreement, in the event of a
termination of service (whether as an employee, director or consultant), other than termination
“for cause,” Disability, or death for which events there are special rules in Paragraphs 19, 20,
and 21, respectively, before all Company rights of repurchase shall have lapsed, then the Company
shall have the right to repurchase that number of Shares subject to a Stock Grant as to which the
Company’s repurchase rights have not lapsed.

	19.	 	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE “FOR CAUSE”.

     Except as otherwise provided in a Participant’s Stock Grant Agreement, the following rules
apply if the Participant’s service (whether as an employee, director or consultant) with the
Company or an Affiliate is terminated “for cause”:

	 	a.	 	All Shares subject to any Stock Grant shall be immediately subject to
repurchase by the Company at $0.0001, if any, thereof.
	 
	 	b.	 	For purposes of this Plan, “cause” shall include (and is not limited to)
dishonesty
with respect to the employer, insubordination, substantial malfeasance or
non-feasance of duty, unauthorized disclosure of confidential information, breach
by the Participant of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or similar agreement between the Participant and
the Company, and conduct substantially prejudicial to the business of the
Company or any Affiliate. The determination of the Administrator as to the
existence of “cause” will be conclusive on the Participant and the Company.
	 
	 	c.	 	“Cause” is not limited to events which have occurred prior to a Participant’s
termination of service, nor is it necessary that the Administrator’s finding of
“cause” occur prior to termination. If the Administrator determines, subsequent
to a Participant’s termination of service, that either prior or subsequent to the
Participant’s termination the Participant engaged in conduct which would
constitute “cause,” then the Company’s right to repurchase all of
such Participant’s Shares shall apply.

14

 

	 	d.	 	Any provision in an agreement between the Participant and the Company or an
Affiliate, which contains a conflicting definition of “cause” for termination and
which is in effect at the time of such termination, shall supersede the definition
in this Plan with respect to that Participant.

	20.	 	EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY.

     Except as otherwise provided in a Participant’s Stock Grant Agreement, the following rules
apply if a Participant ceases to be an employee, director or consultant of the Company or of an
Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights
of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided,
however, that in the event such forfeiture provisions or rights of repurchase lapse periodically,
such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to
such Stock Grant through the date of Disability as would have lapsed had the Participant not become
Disabled. The proration shall be based upon the number of days accrued prior to the date of
Disability.

     The Administrator shall make the determination both of whether Disability has occurred and
the date of its occurrence (unless a procedure for such determination is set forth in another
agreement between the Company and such Participant, in which case such procedure shall be used for
such determination). If requested, the Participant shall be examined by a physician selected or
approved by the Administrator, the cost of which examination shall be paid for by the Company.

	21.	 	EFFECT ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

     Except as otherwise provided in a Participant’s Stock Grant Agreement, the following rules
apply in the event of the death of a Participant while the Participant is an employee, director or
consultant of the Company or of an Affiliate: to the extent the forfeiture provisions or the
Company’s rights of repurchase have not lapsed on the date of death, they shall be exercisable;
provided, however, that in the event such forfeiture provisions or rights of repurchase lapse
periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the
Shares subject to such Stock Grant through the date of death as would have lapsed had the
Participant not died. The proration shall be based upon the number of days accrued prior to the
Participant’s death.

	22.	 	PURCHASE FOR INVESTMENT.

     Unless the offering and sale of the Shares to be issued upon the particular exercise or
acceptance of a Stock Right shall have been effectively registered under the Securities Act of
1933, as now in force or hereafter amended (the “1933 Act”), the Company shall be under no

15

 

obligation to issue the Shares covered by such exercise unless and until the following conditions
have been fulfilled:

	 	a.	 	The person(s) who exercise(s) or accept(s) such Stock Right shall warrant to
the Company, prior to the receipt of such Shares, that such person(s) are acquiring
such Shares for their own respective accounts, for investment, and not with a view
to, or for sale in connection with, the distribution of any such Shares, in which
event the person(s) acquiring such Shares shall be bound by the provisions of the
following legend which shall be endorsed upon the certificate(s) evidencing their
Shares issued pursuant to such exercise or such grant:

“The shares represented by this certificate have been taken for investment
and they may not be sold or otherwise transferred by any person, including
a pledgee, unless (1) either (a) a Registration Statement with respect to
such shares shall be effective under the Securities Act of 1933, as
amended, or (b) the Company shall have received an opinion of counsel
satisfactory to it that an exemption from registration under such Act is
then available, and (2) there shall have been compliance with all
applicable state securities laws.”

	 	b.	 	At the discretion of the Administrator, the Company shall have received an
opinion of its counsel that the Shares may be issued upon such particular exercise
or acceptance in compliance with the 1933 Act without registration thereunder.

	23.	 	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

     Upon the dissolution or liquidation of the Company, all Options granted under this Plan which
as of such date shall not have been exercised and all Stock Grants and Stock-Based Awards which
have not been accepted will terminate and become null and void; provided, however, that if the
rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired,
the Participant or the Participant’s Survivors will have the right immediately prior to such
dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock
Right is exercisable or subject to acceptance as of the date immediately prior to such dissolution
or liquidation. Upon the dissolution or liquidation of the Company, any outstanding Stock-Based
Awards shall immediately terminate unless otherwise determined by the Administrator or
specifically provided in the applicable Agreement.

	24.	 	ADJUSTMENTS.

     Upon the occurrence of any of the following events, a Participant’s rights with respect to any
Stock Right granted to him or her hereunder shall be adjusted as hereinafter provided, unless
otherwise specifically provided in a Participant’s Agreement:

16

 

     A. Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be
subdivided or combined into a greater or smaller number of shares or if the Company shall
issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or
(ii) additional shares or new or different shares or other securities of the Company or other
non-cash assets are distributed with respect to such shares of Common Stock, the number of shares
of Common Stock deliverable upon the exercise of an Option or acceptance of a Stock Grant shall
be appropriately increased or decreased proportionately, and appropriate adjustments shall be
made including, in the purchase price per share, to reflect such events.

     B. Corporate Transactions. If the Company is to be consolidated with or acquired by
another entity in a merger, sale of all or substantially all of the Company’s assets other
than a transaction to merely change the state of incorporation (a “Corporate Transaction”), the

Administrator or the board of directors of any entity assuming the obligations of the Company
hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make
appropriate provision for the continuation of such Options by substituting on an equitable basis for the
Shares then subject to such Options either the consideration payable with respect to the
outstanding shares of Common Stock in connection with the Corporate Transaction or securities
of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide
that all Options must be exercised (either (a) to the extent then exercisable or, (b) at the
discretion of the Administrator, all Options being made fully exercisable for purposes of this
Subparagraph),
within a specified number of days of the date of such notice, at the end of which period the
Options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal
to the
excess of the Fair Market Value of the Shares subject to such Options (either (a) to the
extent
then exercisable or, (b) at the discretion of the Administrator, all Options being made fully

exercisable for purposes of this Subparagraph) over the exercise price thereof.

     With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall
either (i) make appropriate provisions for the continuation of such Stock Grants on the same terms
and conditions by substituting on an equitable basis for the Shares then subject to such Stock
Grants either the consideration payable with respect to the outstanding Shares of Common Stock in
connection with the Corporate Transaction or securities of any successor or acquiring entity; or
(ii) terminate all Stock Grants in exchange for a cash payment equal to the excess of the Fair
Market Value of the Shares subject to such Stock Grants over the purchase price thereof, if any.
In addition, in the event of a Corporate Transaction, the Administrator may waive any or all
Company forfeiture or repurchase rights with respect to outstanding Stock Grants.

     C. Recapitalization or Reorganization. In the event of a recapitalization or
reorganization of the Company other than a Corporate Transaction pursuant to which securities
of the Company or of another corporation are issued with respect to the outstanding shares of
Common Stock, a Participant upon exercising an Option or accepting a Stock Grant after the
recapitalization or reorganization shall be entitled to receive for the purchase price paid
upon
such exercise or acceptance of the number of replacement securities which would have been
received if such Option had been exercised or Stock Grant accepted prior to such
recapitalization
or reorganization.

17

 

     D. Adjustments to Stock-Based Awards. Upon the happening of any of the events
described in Subparagraphs A, B or C above, any outstanding Stock-Based Award shall be
appropriately adjusted to reflect the events described in such Subparagraphs. The
Administrator
or the Successor Board shall determine the specific adjustments to be made under this
Paragraph 24, including, but not limited to the effect if any, of a Change in Control and, subject
to Paragraph 4, its determination shall be conclusive.

     E. Modification of ISOs. Notwithstanding the foregoing, any adjustments made
pursuant to Subparagraph A, B or C above with respect to ISOs shall be made only after the
Administrator determines whether such adjustments would constitute a “modification” of such
ISOs (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax
consequences for the holders of such ISOs. If the Administrator determines that such
adjustments made with respect to ISOs would constitute a modification of such ISOs, it may
refrain from making such adjustments, unless the holder of an ISO specifically requests in
writing that such adjustment be made and such writing indicates that the holder has full
knowledge of the consequences of such “modification” on his or her income tax treatment with
respect to the ISO.

	25.	 	ISSUANCES OF SECURITIES.

     Except as expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares subject to Stock
Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in
cash or in property (including without limitation, securities) of the Company prior to any issuance
of Shares pursuant to a Stock Right.

	26.	 	FRACTIONAL SHARES.

     No fractional shares shall be issued under the Plan and the person exercising a Stock Right
shall receive from the Company cash in lieu of such fractional shares equal to the Fair Market
Value thereof.

18

 

	27.	 	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

     The Administrator, at the written request of any Participant, may in its discretion take such
actions as may be necessary to convert such Participant’s ISOs (or any portions thereof) that have
not been exercised on the date of conversion into Non-Qualified Options at any time prior to the
expiration of such ISOs, regardless of whether the Participant is an employee of the Company or an
Affiliate at the time of such conversion. At the time of such conversion, the Administrator (with
the consent of the Participant) may impose such conditions on the exercise of the resulting
Non-Qualified Options as the Administrator in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give
any Participant the right to have such Participant’s ISOs converted into Non-Qualified Options,
and no such conversion shall occur until and unless the Administrator takes appropriate action.
The Administrator, with the consent of the Participant, may also terminate any portion of any ISO
that has not been exercised at the time of such conversion.

	28.	 	WITHHOLDING.

     In the event that any federal, state, or local income taxes, employment taxes, Federal
Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts are required by applicable
law or governmental regulation to be withheld from the Participant’s salary, wages or other
remuneration in connection with the exercise or acceptance of a Stock Right or in connection with
a Disqualifying Disposition (as defined in Paragraph 29) or upon the lapsing of any forfeiture
provision or right of repurchase or for any other reason required by law, the Company may withhold
from the Participant’s compensation, if any, or may require that the Participant advance in cash
to the Company, or to any Affiliate of the Company which employs or employed the Participant, the
statutory minimum amount of such withholdings unless a different withholding arrangement,
including the use of shares of the Company’s Common Stock or a promissory note, is authorized by
the Administrator (and permitted by law). For purposes hereof, the fair market value of the shares
withheld for purposes of payroll withholding shall be determined in the manner provided in
Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the
fair market value of the shares withheld is less than the amount of payroll withholdings required,
the Participant may be required to advance the difference in cash to the Company or the Affiliate
employer. The Administrator in its discretion may condition the exercise of an Option for less
than the then Fair Market Value on the Participant’s payment of such additional withholding.

	29.	 	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

     Each Employee who receives an ISO must agree to notify the Company in writing immediately
after the Employee makes a Disqualifying Disposition of any shares acquired pursuant to the
exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and
includes any disposition (including any sale or gift) of such shares before the later of (a) two
years after the date the Employee was granted the ISO, or (b) one year after the date

19

 

the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c)
of the Code. If the Employee has died before such stock is sold, these holding period requirements
do not apply and no Disqualifying Disposition can occur thereafter.

	30.	 	TERMINATION OF THE PLAN.

     The Plan will terminate on        , 2016, 10 years after adoption, the date
which is ten years from the earlier of the date of its adoption by the Board of Directors
and the date of its approval by the shareholders of the Company. The Plan may be terminated at an
earlier date by vote of the shareholders or the Board of Directors of the Company; provided,
however, that any such earlier termination shall not affect any Agreements executed prior to the
effective date of such termination.

	31.	 	AMENDMENT OF THE PLAN AND AGREEMENTS.

     The Plan may be amended by the shareholders of the Company. The Plan may also be amended by
the Administrator, including, without limitation, to the extent necessary to qualify any or all
outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for
favorable federal income tax treatment (including deferral of taxation upon exercise) as may be
afforded incentive stock options under Section 422 of the Code, and to the extent necessary to
qualify the shares issuable upon exercise or acceptance of any outstanding Stock Rights granted, or
Stock Rights to be granted, under the Plan for listing on any national securities exchange or
quotation in any national automated quotation system of securities dealers. Any amendment approved
by the Administrator which the Administrator determines is of a scope that requires shareholder
approval shall be subject to obtaining such shareholder approval. Any modification or amendment of
the Plan shall not, without the consent of a Participant, adversely affect his or her rights under
a Stock Right previously granted to him or her. With the consent of the Participant affected, the
Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant
but which is not inconsistent with the Plan. In the discretion of the Administrator, outstanding
Agreements may be amended by the Administrator in a manner which is not adverse to the Participant.

	32.	 	EMPLOYMENT OR OTHER RELATIONSHIP.

     Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate
from terminating the employment, consultancy or director status of a Participant, nor to prevent a
Participant from terminating his or her own employment, consultancy or director status or to give
any Participant a right to be retained in employment or other service by the Company or any
Affiliate for any period of time.

20

 

	33.	 	GOVERNING LAW.

     This Plan shall be construed and enforced in accordance with the law of the State of Delaware.

21EX-10.2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the “Agreement”) is executed this 26th day of May, 2008, by and
between (i) GLOBE SPECIALTY METALS INC., a Delaware corporation (the “Company”), with its principal
place of business currently at 1 Penn Plaza, Suite 2514, New York, NY 10119 and (ii) JEFF BRADLEY
(the “Executive”), currently residing at 108 Pennfield Drive, Kennett Square, PA 19348. Certain
other capitalized terms used herein are defined in Section 9 below.

     In consideration of the mutual covenants and promises contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows:

     1. Term of Employment. The Company hereby agrees to employ the Executive,
and the Executive hereby accepts employment with the Company, upon the terms set forth in this
Agreement, for a term of three years (the “Initial Term”) that commences on May 26, 2008 (the
“Effective Date”), and that ends, unless sooner terminated in accordance with Section 4, on
May
25, 2011. The period during which the Executive is employed pursuant to this Agreement shall
be referred to herein as the “Employment Period.”

     2. Title; Capacity.

               (a) During the Employment Period, the Executive shall serve as the
Chief Executive Officer of the Company and shall have all authorities, duties and
responsibilities
customarily exercised by an individual serving in that position at an entity of the size and
nature
of the Company, as from time to time reasonably modified by the Board of Directors of the
Company (the “Board”) on notice to the Executive. During the Employment Period, the
Executive shall report directly to the Chairman of the Board.

               (b) The Executive hereby accepts such employment, agrees to
undertake the duties and responsibilities of Chief Executive Officer of the Company in
accordance herewith, and to perform such other executive duties and responsibilities,
consistent
herewith, as the Board shall from time to time reasonably assign to him. The Executive agrees
to
devote substantially all of his business time, attention and energies to the business and
interests
of the Company during the Employment Period; provided, however, that nothing
in this
Agreement shall preclude the Executive from: (i) engaging in charitable and professional
activities and community affairs provided that such activities and community affairs do not
impact negatively upon the image of the Company, and (ii) managing his personal investments
and affairs. The Executive’s principal places of employment shall be at the Company’s
headquarters, which are currently located at the address for the Company set forth above.
Unless
otherwise traveling on Company business, the Executive shall generally work at the Company’s
headquarters in New York, New York.

     3. Compensation and Benefits.

          3.1 Salary. In accordance with the normal payroll practices of the Company, the
Company shall pay the Executive an annual base salary (the “Base Salary”) of Six Hundred

 

 

Thousand ($600,000.00) Dollars in respect of his services during the Employment Period, subject to
annual review by the Board for increase.

          3.2 Stock Grants. In addition to the Executive’s Base Salary, the Executive
shall be eligible to receive annual stock grants on the terms and conditions and in the
amounts as
are set forth on Annex A hereto. Issuance of the stock grants shall be made at such time as
determined by the Board; provided, however, that such grant must be issued on or before July
31
immediately following the end of the fiscal year for which such grant is issuable.

          3.3 Stock Options. To induce the Executive to enter into this Agreement, the
Company hereby grants to the Executive stock options (the “Stock Options”) in the Company
upon the terms and conditions set forth on Annex B hereto.

          3.4 Fringe Benefits. The Executive shall be entitled to participate in all
perquisite and benefit programs that the Company makes available to its senior executives, if
any, to the extent that the Executive’s position, tenure, salary, age, health and other
qualifications
make him eligible under the terms of the applicable program (as amended from time to time) to
participate, including without limitation (i) long-term disability insurance paid by the
Company,
(ii) business travel accident insurance (iii) reimbursement (in accordance with Section 3.5
hereof) of all expenses, and (iv) the Executive and his family shall be eligible to
participate in
any welfare benefit plan sponsored or maintained by the Company (including any group life,
hospitalization, medical, dental, health, accident or disability insurance or similar plan or
program, in each case, whether now existing or established hereafter), with the premium cost
of
such coverage paid in full by the Company. The Executive shall be entitled to four (4) weeks
of
paid vacation per calendar year (prorated for any partial year) plus Federal holidays.

          3.5 Reimbursement of Expenses. The Company shall reimburse the Executive
for all reasonable travel, entertainment, communication technologies (i.e., laptop computer,
cell
phone and Blackberry) and other expenses incurred or paid by the Executive in connection with,
or related to, the performance of his duties, responsibilities or services under this
Agreement,
upon presentation by the Executive of documentation, expense statements, vouchers and/or such
other supporting information as the Company may reasonably request. In connection with the
Executive’s relocation to the New York, New York area, the Company shall also reimburse the
Executive for temporary lodging (for a period not to exceed sixty (60) days) and all
reasonable
costs of such relocation (e.g., settlement charges, brokers commission, transportation,
packing,
storing, and unpacking of household goods...).

          3.6 Indemnification. If the Executive is made a party or is threatened to be
made a party to any Proceeding (as defined in Section 9 below) by reason of the fact that he
is or
was a director or officer of the Company or any of its affiliates or is or was serving at the
request
of the Company or any of its affiliates, or in connection with his service hereunder, as a
director
or officer of another person, or if any Claim (as defined in Section 9 below) is made or is
threatened to be made that arises out of or relates to the Executive’s service in any of the
foregoing capacities, then the Executive shall promptly be indemnified and held harmless to
the
fullest extent permitted or authorized by the Articles of Incorporation or Bylaws of the
Company, or if greater, by applicable law, against any and all reasonable costs, reasonable
expenses, liabilities and losses (including, without limitation, reasonable attorneys’ and
other

 

 

professional fees and charges, judgments, interest, reasonable expenses of investigation,
penalties, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement)
incurred or suffered by the Executive in connection therewith or in connection with seeking to
enforce his rights under this Section 3.6, and such indemnification shall continue as to the
Executive even if he has ceased to serve in any such capacity, and shall inure to the benefit of
his heirs, executors and administrators. The Executive shall be entitled to prompt reimbursement of
any and all costs and expenses (including, without limitation, reasonable attorneys’ and other
professional fees and charges) reasonably incurred by him in connection with any such Proceeding or
Claim, or in connection with seeking to enforce his rights under this Section 3.6, any such
reimbursement to be made within 30 days after the Executive gives written notice, supported by
reasonable documentation, requesting such reimbursement, and in all cases not later than March 15
of the calendar year following the calendar year in which such expenses were incurred. Such notice
shall include an undertaking by the Executive to promptly repay the amount paid if he is ultimately
determined not to be entitled to indemnification against such costs and expenses; provided that
repayment shall occur no later than 60 days following the applicable determination. Nothing in this
Agreement shall operate to limit or extinguish any right to indemnification, reimbursement of
expenses, or contribution that the Executive would otherwise have (including, without limitation,
by agreement or under applicable law).

          3.7 Insurance. The Company shall maintain directors and officers liability insurance coverage
covering the Executive in amounts customary for similarly situated companies and with reputable
insurers. Policies shall be similar to coverage as provided to other directors and officers of the
Company.

     4. Employment Termination. Notwithstanding Section 1, the
Executive’s employment under this Agreement shall terminate upon the occurrence of any of the
following:

          4.1 at the election of the Company, for Cause (as defined in Section 9
 below, and subject to any notice requirements and cure periods set forth therein), upon 10 days written
notice by the Company to Executive;

          4.2 upon the death of, or 30 days’ after written notice upon the Disability (as
defined in Section 9 below) of, the Executive;

          4.3 at the election of the Executive, for Good Reason (as defined in Section 9
below), upon 30 days’ written notice by the Executive to the Company; and

          4.4 in the event that none of Sections 4.1, 4.2 and 4.3, at the election of either
party, upon 30 days’ written notice to the other party.

 

 

     5. Effect of Termination.

          5.1 Termination by Company for Cause or by Executive Voluntarily. If the
Executive’s employment hereunder is terminated by the Company for Cause in accordance with
Section 4.1 above, or if the Executive terminates his employment hereunder in accordance with
Section 4.4 above, the Executive shall receive the benefits described in Section 5.4 below.
Subject to the foregoing and the provisions of Section 5.6 below, the Company shall have no
further obligations to the Executive hereunder.

          5.2 Termination by Company Without Cause or by Executive for Good
Reason. If the Executive’s employment hereunder is terminated by the Company in
accordance
with Section 4.4 above, or if the Executive terminates his employment hereunder for Good
Reason in accordance with Section 4.3 above:

               (i) the Company shall pay to the Executive an amount equal to the Executive’s then
Base Salary as of the Termination Date, payable in equal monthly installments due on the
first business day of each month for the lesser of (A) the twelve (12) month period
immediately following such termination and (B) the number of months remaining in the
Initial Term;

               (ii) the Executive shall be entitled to continued participation pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) in all
insurance and benefit plans providing medical coverage, to the extent such plans are then
provided by the Company, at the same benefit level which is provided to other executives of
the Company until the last day of the coverage period mandated by COBRA, provided,
that, during the twelve (12) month period commencing on the Termination Date, the
premium cost of the coverage provided pursuant to this Section 5.2(ii) shall be paid in full
by the Company; and

               (iii) the Executive shall receive the benefits described in Section 5.4 below.

          5.3 Termination Upon Death or Disability or Expiration of Employment Period. If the Executive’s employment hereunder is terminated as a result of his
death or
because of his Disability as determined pursuant to Section 4.2 above, or upon expiration of
the
Employment Period, the Company shall provide to the Executive the benefits described in
Section 5.4 below.

          5.4 Other Accrued Benefits. Upon any termination of the Executive’s
employment hereunder, he shall be entitled to:

               (i) any unpaid Base Salary through the Termination Date and reimbursement for expenses
as provided in Section 3.5;

               (ii) subject to the terms of the applicable award or arrangement, the balance of any
annual incentive award earned in respect to any fiscal year ending on or prior to the
Termination Date, or payable (but not yet paid) on or prior to the Termination Date;

 

 

               (iii) subject to the terms of the actual award or arrangement and provided that
Executive is not terminated for Cause or does not terminate his employment without Good
Reason, any amounts payable with respect to the fiscal year in which termination occurs
under any annual incentive award (prorated for the portion of the year Executive was
employed by the Company);

               (iv) any other benefits accrued as of the Termination Date in accordance with the
terms of the applicable plans, programs and arrangements of the Company (including, without
limitation, benefits under Section 10.9); and

               (v) payment in accordance with the payroll practices of the Company, of all amounts
due in connection with the termination, such payments to be made by wire transfer of
same-day funds to the extent reasonably requested by the Executive.

Any amounts payable pursuant to this Section 5.4 shall be paid no later than 60 days after the
Termination Date, unless an alternative payment schedule is provided for under this Agreement or
the applicable plan, award or arrangement.

          5.5 Miscellaneous. In the event of any termination of the Executive’s
employment hereunder, the Executive shall be under no obligation to seek other employment or
otherwise mitigate the obligations of the Company under this Agreement, and there shall be no
offset against amounts or benefits due the Executive under this Agreement or otherwise on
account of any remuneration or other benefit earned or received after such termination. Any
amounts due to the Executive under this Section 5 are considered to be reasonable by the
Company and are not in the nature of a penalty.

          5.6 Survival. Except as otherwise set forth in this Agreement, the respective
rights and obligations of the parties shall survive any termination of the Executive’s
employment
hereunder, including without limitation, those set forth in Sections 3.5, 3.6 and 3.7.

     6. Restrictions.

          6.1 Non-Solicitation and Non-Competition. During the Employment Period and for two
(2) years thereafter, the Executive will not directly or indirectly, alone or in association with
others, other than in connection with performing his duties for the Company:

                    (i) (A) recruit, solicit or induce any employee or consultant of
the Company or any of its affiliates to terminate his or her employment with, or otherwise cease
his or her relationship with, the Company or any of its affiliates, or (B) employ or retain any
employee of the Company or any of its affiliates within six (6) months of the date that such
employee or individual ceases providing services to the Company or any of its affiliates;

                    (ii) solicit, divert or take away the business or patronage of any
customer, supplier or other business relation of the Company or any of its affiliates who have
done business with the Company during the twelve month period prior to the Termination Date

 

 

or who are a potential customer, supplier or other business relation with which the Company or any
of its affiliates is currently attempting to establish a relationship at the time of the
Termination Date; or

                    (iii) own, manage, operate, sell, control or participate in the
ownership, management, operation, sales or control of, be involved with the development efforts of,
serve as a technical advisor to, license intellectual property to, provide services to or in any
manner engage in any business that competes with any business in which the Company or any of its
affiliates is engaged as of the Termination Date; provided, however, that Executive may own as a
passive investor up to 5.0% of any class of an issuer’s publicly traded securities.

          6.2 Business Scope and Geographical Limitation. Executive acknowledges (i)
that the business of the Company and its affiliates is, and is expected to remain,
international in
scope and without geographical limitation; (ii) notwithstanding the state of incorporation or
principal office of the Company or any of its affiliates, or any of their respective
executives or
employees (including Executive), it is expected that the Company and its affiliates will have
business activities and have valuable business relationships within its industry throughout
the
world; and (iii) as part of his responsibilities, Executive will travel around the world in
furtherance of the Company’s and its affiliates’ businesses and their relationships.
Accordingly,
the restrictions set forth in this Section 6 shall be effective in all cities, counties and
states of the
United States and all countries in which the Company or any of its affiliates has an office as
of
the Termination Date.

          6.3 Additional Acknowledgments. Executive acknowledges that the
provisions of this Section 6 are in consideration of employment with the Company and the
additional good and valuable consideration as set forth in this Agreement.

     7. Confidential Information.

          7.1 Obligation to Maintain Confidentiality. Executive acknowledges that the
information and data obtained by him during the course of his performance under this Agreement
concerning the business and affairs of the Company and its affiliates are the property of the
Company or such affiliates, including information concerning acquisition opportunities in the
Company’s or any of its affiliates’ industry of which Executive becomes aware during the
Employment Period (such information or data, the “Confidential Information”). Therefore, Executive
agrees that he will not disclose to any unauthorized person or use for his own account any of the
Confidential Information without the prior written consent of the Board, unless, and then only to
the extent that, the aforementioned Confidential Information (i) become generally known to the
public other than as a result of Executive’s acts or omissions to act, (ii) was already known to
the Executive prior to his employment hereunder, or (iii) became known to the Executive from a
third party owing no duty of confidentiality to the Company. Executive agrees to destroy or to
deliver to the Company upon termination of employment any and all property belonging to the
Company and its affiliates in his possession or under his control including, but not limited to,
any memoranda, notes, plans, records, reports, documents, discs and other data storage media (and
any copies thereof).

 

 

          7.2 Ownership of Property. Executive expressly understands and agrees that any and
all right, title or interest he has or obtains in any documentation, trade secrets, technical
specifications, data, know-how, inventions, concepts, ideas, techniques, innovations, discoveries,
improvements, developments, methods, processes, programs, designs, analyses, drawings, reports,
memoranda, marketing plans, and all similar or related information (whether or not patentable)
conceived, devised, developed, contributed to, made, reduced to practice or otherwise had or
obtained by Executive (either solely or jointly with others) during the Employment Period that
relate to the Company’s or any of its affiliates’ actual or anticipated business, research and
development, or existing or future products or services, or that arise out of Executive’s
employment with the Company or any of its affiliates (including any of the foregoing that
constitutes any proprietary information or records) (“Work Product”) belong to the Company or the
respective affiliate, and Executive hereby assigns, and agrees to assign, all of the above Work
Product to the Company or to such affiliate. Any copyrightable work prepared in whole or in part
by Executive in the course of his work for any of the foregoing entities shall be deemed a “work
made for hire” under the copyright laws, and the Company or such affiliate shall own all rights
therein. To the extent that any such copyrightable work is not a “work made for hire,” Executive
hereby assigns, and agrees to assign, to the Company or the respective affiliate all of his right,
title and interest in and to such copyrightable work. Executive shall promptly disclose such Work
Product and copyrightable work to the Board and perform all actions reasonably requested by the
Board (whether during or after the Employment Period) to establish and confirm the Company’s or the
respective affiliate’s ownership therein (including executing and delivering any assignments,
consents, powers of attorney and other instruments).

          7.3 Third Party Information. Executive understands that the Company and its
affiliates will receive from third parties confidential or proprietary information (“Third
Party
Information”) subject to a duty on the Company’s and such affiliates’ part to maintain the
confidentiality of such information and to use it only for certain limited purposes. During
the
Employment Period and thereafter, and without in any way limiting the provisions of Section
7.1
above, Executive will hold Third Party Information in the strictest confidence and will not
disclose to anyone (other than in the ordinary course of Executive’s duties for the benefit of
the
Company or any subsidiary or affiliate of the Company) or use, except in connection with his
work for the Company or such affiliates, Third Party Information without the prior written
consent of the Board.

     8. Representations.

               (a) As an inducement to the Company to enter into this Agreement,
the Executive represents and warrants that there exists no contractual impediment on the
Executive’s power, right or ability to enter into this Agreement and to perform the
Executive’s
duties and obligations hereunder, other than restrictions whose breach results solely in
forfeiture
of benefits to which the Executive might otherwise be entitled.

               (b) The Company represents and warrants that (i) it is fully authorized
by action of its Board to enter into this Agreement and to perform its obligations under it,
(ii) the
execution, delivery and performance of this Agreement by it does not violate any applicable
law,
regulation, order, judgment or decree or any agreement, arrangement, plan or corporate
governance document to which it is a party or by which it is bound and (iii) upon the
execution

 

 

and delivery of this Agreement by the parties, this Agreement shall be its valid and binding
obligation, enforceable against it in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights generally.

     9. Certain Definitions. For purposes of this Agreement, the following terms
shall have the meanings specified in this Section 9:

               “Cause” means: (i) perpetration by the Executive of act involving fraud with respect to
the Company or any of its affiliates; (ii) substantial failure on the part of the Executive
in his performance of his duties as reasonably directed by the Board, after notice to
Executive and a reasonable opportunity to cure, (iii) the engaging in by the Executive of
gross misconduct, or gross negligence in the performance of his duties, which materially
injures the Company, (iv) the material breach by Executive of Sections 6 or 7 of this
Agreement, which materially injures the Company or (v) the indictment of the Executive for,
or the entry of a pleading of guilty or nolo contendere by the Executive to, any felony
(excluding automobile related offenses).

               “Change of Control” shall be deemed to have occurred if any of the following events
occurs after the Effective Date: (i) any person or group (within the meaning of Rule 13d-3
of the rules and regulations promulgated under the Securities Exchange Act) shall become, in
one or a series of transactions, whether through sale of stock, merger, or otherwise, the
beneficial owner of securities of the Company that possesses more than fifty percent (50%)
of the total voting power of the then outstanding securities of the Company, or of any
successor to the Company or to substantially all the business and assets of the Company;
(ii) a merger, consolidation or other transaction in which the Company combines with another
entity and after which the security holders of the Company do not retain, directly or
indirectly, and in respect of voting securities of the Company that they beneficially owned
prior to such transaction, at least a majority of the beneficial interest in the voting
securities of the surviving entity; or (iii) the sale, exchange, or other transfer of all or
substantially all of the Company’s business or assets.

               “Claim” means any claim, demand, request, investigation, dispute, controversy, threat,
discovery request, or request for testimony or information.

               “Code” means the Internal Revenue Code of 1986, as amended. Reference to a particular
section of the Code shall include any provision that modifies, replaces or supersedes such
section.

               “Disability” means that the Executive has been unable, due to physical or mental
incapacity, for a period of 90 consecutive days within any 365 consecutive day period to
substantially perform all of the material services contemplated under this Agreement. A
determination of Disability shall be made by the Executive (or his legal representative, if
he is incapable) and the Company each selecting a physician and these two together shall
select a third physician, whose determination as to disability shall be binding on all
parties.

 

 

               “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

               “Good Reason” means: (i) any breach by the Company, or any of its affiliates, of any
material provision of this Agreement, which breach has not been cured within 30 days after
notice of such breach, referencing Section 4.3 and describing the nature of such breach,
has been given by the Executive to the Company; (ii) any diminution in the Executive’s
title or Base Salary (iii) any material reduction in benefits provided to Executive
pursuant to Section 3.2 or 3.3, other than in connection with a reduction in benefits
generally applicable to senior executives of the Company; (iii) any substantial diminution
in the Executive’s overall duties and responsibilities or reporting obligations, which
diminution has not been cured within 30 days after notice of such diminution, referencing
Section 4.3 and describing the nature of such diminution, has been given by the Executive
to the Company; or (iv) a Change of Control and the surviving entity shall not assume the
obligations of the Company hereunder.

               “Proceeding” means any actual or threatened suit or proceeding, whether civil,
criminal, administrative, investigative, appellate, formal, informal or other.

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

               “Termination Date” means the date that the Executive’s employment under this Agreement
terminates for any reason.

     10. Miscellaneous.

          10.1 Notices. All notices required or permitted under this Agreement shall be
in writing and shall be deemed effective upon personal delivery (which shall include delivery
by
Federal Express or similar service) or upon deposit in the United States Post Office, by
registered
or certified mail, return receipt requested, postage prepaid, addressed to the other party at
the
address shown above, or at such other address or addresses as either party shall designate to
the
other in accordance with this Section 10.1. A copy of any notice sent to the Executive shall
also
be sent (but shall not constitute notice) to Ralph J. Mauro, Esq., Kleinbard Bell & Brecker
LLP,
One Liberty Place, 46th Floor, 1650 Market Street, Philadelphia, PA 19103.

          10.2 Entire Agreement. This Agreement, together with the documents referred
to in it, constitutes the entire agreement between the parties concerning its subject matter
and
supersedes all prior agreements and understandings, whether written or oral, relating to its
subject matter. There shall be no contractual or similar restrictions on the Executive’s
activities
following the termination of his employment with the Company, other than as expressly set
forth
in this Agreement. In the event of any inconsistency between any provision of this Agreement
and any provision of any handbook, manual, program, policy, agreement, plan, corporate
governance document, or other arrangement of the Company or any of its affiliates, the
provisions of this Agreement shall control unless the Executive otherwise agrees in a writing
that
expressly refers to the provision of this Agreement whose control he is waiving.

 

 

          10.3 Amendment. This Agreement may be amended or modified only by a
written instrument that is executed by both parties and that specifically identifies the
provision(s)
and/or Section(s) of this Agreement being amended.

          10.4 Waivers. No delay or omission by either party hereto in exercising any
right under this Agreement shall operate as a waiver of that or any other right. No waiver by
any
person of any breach of any condition or provision contained in this Agreement shall be deemed
a waiver of any similar or dissimilar breach at the same or any prior or subsequent time. To
be
effective, any waiver must be set forth in a writing signed by the waiving person and must
specifically refer to the condition(s) or provision(s) of this Agreement being waived.

          10.5 Successors and Assigns.

               (a) This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors, heirs (in the case of the Executive) and assigns.

               (b) No rights or obligations of the Company under this Agreement
may be assigned or transferred by the Company except that such rights and obligations may be
assigned or transferred pursuant to a merger, consolidation or other combination in which the
Company is not the continuing entity, or a sale or liquidation of all or substantially all of
the
business and assets of the Company, provided that the assignee or transferee is the successor
to
all or substantially all of the business and assets of the Company and such assignee or
transferee
expressly assumes the liabilities, obligations and duties of the Company as set forth in this
Agreement. In the event of any merger, consolidation, other combination, sale of business and
assets, or liquidation as described in the preceding sentence, the Company shall use its best
efforts to cause such assignee or transferee to promptly and expressly assume the liabilities,
obligations and duties of the Company hereunder.

               (c) The Executive shall be entitled, to the extent permitted under
applicable law and applicable Company benefit plans, to select and change a beneficiary or
beneficiaries to receive any compensation or benefit hereunder following the Executive’s death
by giving written notice thereof to the Company. In the event of the Executive’s death or a
judicial determination of his incompetence, references in this Agreement to the Executive
shall
be deemed, where appropriate, to refer to his beneficiary, estate or other legal
representative.

          10.6 Governing Law. This Agreement is intended to comply with the
requirements of Section 409A of the Code, and shall in all respects be administered in
accordance therewith. To the extent not preempted by Federal law, this Agreement shall be
governed, construed, interpreted and enforced in accordance with its express terms, and
otherwise in accordance with the laws of the State of New York without regard to its conflicts
of
law principles.

          10.7 Arbitration. All disputes concerning the application, interpretation or
enforcement of this Agreement or otherwise arising out of the relationship between Executive,
on the one hand, and the Company, on the other hand, except for those arising under Section 6
or
7 of this Agreement, shall be resolved exclusively by final and binding arbitration before a
single
arbitrator in accordance with the Employment Rules of the American Arbitration Association

 

 

then in effect. The arbitration shall be held in New York City, and the arbitrator shall have the
authority to permit the parties to engage in reasonable pre-hearing discovery.

          10.8 Jurisdiction. Any Claim arising out of or relating to this Agreement, other
than a Claim covered by Section 10.7, may be brought in the federal or state courts located in
New York. By execution and delivery of this Agreement, each of the parties hereto accepts for
himself or itself and in respect of his or its property, generally and unconditionally, the
jurisdiction of the aforesaid courts and waives any objection it may now or hereafter have as
to
the venue of any proceeding brought in any such court in connection herewith or that any such
court is an inconvenient forum.

          10.9 Advancement of Costs and Expenses. The Company shall promptly
advance to the Executive (or his beneficiaries, if applicable) any cost (including reasonable
attorneys’ fees) incurred by them in connection with any Claim arising out of or relating to
this
Agreement, subject to prompt repayment by the recipient in the event that the Company (and its
affiliates, if applicable) substantially prevails with respect to such Claim. Pending the
resolution
of any Claim under Section 10.7 or otherwise, the Executive (and his beneficiaries) shall continue to receive all payments and benefits due under this Agreement or otherwise.

          10.10 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
ACTIONS OF THE PARTIES TO THIS AGREEMENT IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

          10.11 Captions. The captions of the sections of this Agreement are for
convenience of reference only and in no way define, limit or affect the scope or substance of
any
section of this Agreement.

          10.12 Severability. In case any provision of this Agreement shall be invalid,
illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

          10.13 Taxes. The Company may withhold from any amount or benefit payable
under this Agreement taxes that it is required to withhold pursuant to any applicable law or
regulation.

          10.14 Counterparts; Facsimile Signatures. This Agreement may be executed in
any number of counterparts, each of which will be deemed an original, and all of which will
constitute one and the same instrument. Signatures delivered by facsimile or by PDF shall be
effective for all purposes.

[SIGNATURE PAGE FOLLOWS]

 

 

          IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the day
and year set forth above.

	 	 	 	 	 	 	 
	 	 	Company:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GLOBE SPECIALTY METALS INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Alan Kestenbaum
	 	 
	 

	 	 	 	Title: Chairman & CEO	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Executive:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Jeff Bradley

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