Document:

KAGY Holding Company, Inc. 2006 Stock Option Plan

 Exhibit 10.27 
  
  
 KAGY HOLDING COMPANY, INC. 
 2006 STOCK OPTION PLAN 
  
 ARTICLE I 
 DEFINITIONS 
 Terms used herein and not
otherwise defined shall have the meaning set forth in the Agreement. 
 1.1 “Administrator” means the Committee. 
 1.2 “Affiliate” means any subsidiary or parent corporation (within the meaning of Section 424 of the Code) of the Company; provided that
such corporation would be aggregated with the Company under the definition of “service recipient” under Section 409A of the Code. 
 1.3 “Agreement” means a written agreement (including any amendment or supplement thereto) between the Company and a Participant specifying the terms and conditions of an Option granted to such Participant. 
 1.4 “Board” means the Board of Directors of the Company. 
 1.5 “Cause” means (i) a Participant’s willful failure to perform, or gross negligence in the performance of, the Participant’s duties and responsibilities to the Company and its Affiliates;
(ii) commission by a Participant of a material act of fraud, embezzlement or other material dishonesty; (iii) conviction of, or plea of nolo contendere to, a felony or other crime involving moral turpitude; or (iv) a
Participant’s material breach of any provisions of any employment agreement or confidentiality or non-compete obligation with the Company or any Subsidiary. A termination for “Cause” shall be determined by the Board. 
 1.6 “Change in Control” of the Company means, and shall be deemed to have occurred upon, any of the following events: 
 (i) a sale or transfer (in one or a series of related transactions) of 100% of the Company’s outstanding capital stock to one Person
or a group of Persons acting in concert; 
 (ii) a sale or transfer (in one or a series of related transactions) of all or
substantially all of the Company’s operating subsidiaries or assets to one Person or a group of Persons acting in concert; or 

 (iii) a transaction or transactions in which any Person or a group of Persons acting in
concert acquires stock of the Company in an amount greater than that held by Kohlberg & Co. LLC (“Kohlberg”) and Kohlberg Affiliates and in which Kohlberg relinquishes control of the Board. 
 1.7 “Code” means the Internal Revenue Code of 1986, and any amendments thereto. 
 1.8 “Committee” means the Compensation Committee of the Board. 
 1.9 “Common Stock” means the common stock of the Company. 
 1.10 “Company” means KAGY
Holding Company, Inc. 
 1.11 “Kohlberg Affiliates” means all persons and entities directly or indirectly controlling, controlled
by or under common control with Kohlberg & Co. LLC, where control may be either management authority or equity interest. 
 1.12
“Option” means a stock option that entitles the holder to purchase from the Company a stated number of shares of Common Stock at the price set forth in an Agreement. 
 1.13 “Participant” means a person who is granted an Option under the Plan. 
 1.14 “Person” means an individual, a corporation, an association, a partnership, an estate, a trust and any other entity or organization, other
than the Company or any of its Affiliates. 
 1.15 “Plan” means the KAGY Holding Company, Inc. 2006 Stock Option Plan. 

ARTICLE II 
 PURPOSES, ELGIBILITY, AND
PARTICIPATION 
 The Plan is intended to advance the interests of the Company by enabling Participants to participate in the future success
of the Company and its Affiliates and to associate their interests with those of the Company and its shareholders. The Administrator will select Participants from among those key employees, officers, and directors of, and consultants and advisors
to, the Company or its Affiliates who, in the opinion of the Administrator, are in a position to make a significant contribution to the success of the Company and its Affiliates. Eligibility for Options intended to be “incentive stock
options” within the meaning of Section 422 of the Code is limited to employees of the Company or of an Affiliate. The proceeds received by the Company from the sale of Common Stock pursuant to this Plan shall be used for general corporate
purposes. 
 ARTICLE III 
 ADMINISTRATION 
 The Plan shall be administered by the Administrator. Notwithstanding any such conditions, the Administrator may,
in its discretion, accelerate the time at which any Option may 

  

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be exercised. In addition, the Administrator shall have complete authority to interpret all provisions of this Plan; to prescribe the form of Agreements; to
adopt, amend, and rescind rules and regulations pertaining to the administration of the Plan; and to make all other determinations necessary or advisable for the administration of this Plan. The express grant in the Plan of any specific power to the
Administrator shall not be construed as limiting any power or authority of the Administrator. Any decision made, or action taken, by the Administrator or in connection with the administration of this Plan shall be final and conclusive. Neither the
Administrator nor any member of the Committee shall be liable for any act done in good faith with respect to this Plan or any Option. All expenses of administering this Plan shall be borne by the Company. 
 ARTICLE IV 
 STOCK SUBJECT TO PLAN 

4.1 Shares Issued. Upon the exercise of any Option, the Company may deliver to the Participant (or the Participant’s broker if the
Participant so directs), shares of Common Stock from its authorized but unissued Common Stock. 
 4.2 Aggregate Limit. The maximum
aggregate number of shares of Common Stock that may be issued under this Plan pursuant to the exercise of Options is 1,335,000 shares. The maximum aggregate number of shares that may be issued under this Plan shall be subject to adjustment as
provided in Article VI. 
 ARTICLE V 
 OPTIONS 
 5.1 Award. The Administrator will specify the number of shares of Common Stock to be
covered by an award of an Option. The Administrator shall also determine the vesting schedule for such Options, which may be based on performance measures deemed appropriate by the Administrator, and other terms and conditions of such Options,
provided that, except as the Administrator otherwise determines, no Option shall have deferred features, or shall be administered in a manner, that would cause such Option to fail to qualify for exemption from Section 409A of the Code.

 5.2 Option Price. The price per share for Common Stock purchased on the exercise of an Option shall be determined by the
Administrator on the date of grant; provided that such price per share shall be no less than 100% of the fair market value per share of Common Stock on such date of grant. For purposes of the preceding sentence, fair market value shall be determined
by the Administrator consistent with the requirements of Section 409A of the Code and, with respect to any Option intended to be an incentive stock option, Section 422 of the Code. 
 5.3 Payment. Unless otherwise provided by the Agreement, payment of the Option price shall be made in cash or a cash equivalent acceptable to the
Administrator. If the Agreement provides, payment of all or part of the Option price may be made by (i) surrendering to the Company shares of Common Stock that a Participant has held for at least six months or (ii)

  

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except with respect to incentive stock options (within the meaning of Section 422 of the Code), surrendering to the Company shares of Common Stock
issuable to the Participant upon exercise of the Option, with a fair market value on the date of Option exercise equal to the aggregate Option price of the shares of Common Stock with respect to which such Option (or portion thereof) is thereby
exercised; provided, that the exercise method described in (ii) shall be available only if and to the extent it would not cause an Option to be subject to Section 409A of the Code. If Common Stock is used to pay all or part of the
Option price, the sum of the cash and cash equivalent and the fair market value (determined as of the day preceding the date of exercise) of the shares surrendered must not be less than the Option price of the shares for which the Option is being
exercised. 
 ARTICLE VI 
 ADJUSTMENT UPON CHANGE IN COMMON STOCK 
 The maximum number of shares as to which Options may be granted under this Plan and the
terms of outstanding Options (including, without limitation, the purchase price under such Options) shall be adjusted as the Committee shall determine to be equitably required in the event that (a) the Company effects one or more stock
dividends, stock split-ups, subdivisions or consolidations of shares or (b) there occurs any other event which, in the judgment of the Committee necessitates such action, in each case having due regard for the qualifications of incentive stock
options under Section 422 of the Code and the requirements of Section 409A of the Code. Any determination made under this Article VI by the Committee shall be final and conclusive. 
 ARTICLE VII 
 EFFECT OF CHANGE IN CONTROL

 In the event of a Change in Control, unless otherwise specifically prohibited by applicable laws, or by the rules and regulations of any
governing agency or national securities exchange and subject to the terms of the applicable Option, any outstanding Options which are not then vested and for which the vesting term has not expired under the terms and conditions of the Agreement for
such Options (so that such Options retain the possibility of future vesting as of the time immediately prior to the Change in Control), shall become immediately exercisable, and shall remain exercisable throughout their entire term. The Common Stock
issuable upon exercise of the Option shall be subject to adjustment in accordance with Article VI hereof in the event of any changes affecting the Common Stock as a result of such Change in Control. 
 Notwithstanding anything to the contrary set forth in the Agreement, the provisions of this Article VII shall not apply to a Participant if, prior
to the date on which a Change in Control takes place the Option has ceased to vest for any reason. Otherwise, the provisions of this Article VII shall apply to the Participants. 
  

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 ARTICLE VIII 
 AMENDMENT 
 The Board may amend or terminate this Plan from time to time; provided, however, that no
amendment may become effective until shareholder approval is obtained if (i) the amendment increases the aggregate number of shares of Common Stock that may be issued under the Plan, (ii) the amendment changes the class of individuals
eligible to become Participants or (iii) the amendment materially increases the benefits that may be provided under the Plan. No amendment shall, without a Participant’s consent, adversely affect any rights of such Participant under any
Option outstanding at the time such amendment is made. 
 ARTICLE IX 
 GENERAL PROVISIONS 
 9.1 Employment. Nothing in the Plan shall interfere with or
limit in any way the right of the Company to terminate a Participant’s employment at any time, nor confer upon a Participant any right to continue in the employ of the Company. 
 For purposes of this Plan, a transfer of a Participant’s employment between the Company and a Subsidiary, or between Subsidiaries, shall not be
deemed to be a termination of employment. Upon such a transfer, the Committee may make such adjustments to outstanding Options as it deems appropriate to reflect the changed reporting relationships. 
 9.2 Tax Matters. 
 (a)
Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy the minimum Federal, state and local taxes, domestic or foreign, required by
law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. 
 (b) Limitation of Liability.
Notwithstanding anything to the contrary in the Plan, neither the Company nor the Administrator, nor any Person acting on behalf of the Company or the Administrator, shall be liable to any Participant or to the estate or beneficiary of any
Participant by reason of any acceleration of income, or any additional tax, asserted by reason of the failure of an Option to satisfy the requirement of Section 422 or Section 409A of the Code. 
 9.3 Share Withholding. With respect to withholding required upon the exercise of Options or upon any other taxable event arising as a result of
grants hereunder, Participant may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold shares of Common Stock having a fair market value on the date the tax is
to be determined equal to the minimum statutory total tax which could be imposed on the transaction. All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that
the Committee, in its sole discretion, deems appropriate. 
  

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 9.4 Severability. In the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 9.5 Securities Law and Tax Law Compliance. With respect to insiders, transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under the Securities Exchange Act of 1934, as amended, and Code Section 162(m). To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed null and void,
to the extent permitted by law and deemed advisable by the Committee. 
 9.6 Governing Law. To the extent not pre-empted by Federal
law, the Plan, and all agreements hereunder, shall be construed in accordance and governed by the laws of the State of Delaware. 
  

 6Form of Stock Option Grant under the KAGY Holding Co.. 2006 Stock Option Plan

 Exhibit 10.28 
 KAGY Holding Company, Inc. 
 2558 Wagener Road 
 Aiken, SC 29801 
 [NAME] 
 [ADDRESS] 
  

	 	Re:	Grant of Stock Options 

 Dear [NAME]: 
 KAGY Holding Company, Inc. (the “Company”) and you hereby agree that the terms and conditions regarding the stock options (“Options”)
granted to you under the Company’s 2006 Stock Option Plan (the “Plan”) are as provided below. 
 1. Definitions. For
the purposes of this Agreement, the following terms have the indicated meanings: 
 “Board” means the Board of Directors of
the Company. 
 “Cause” has the meaning given to such term in the Plan. 
 “Change in Control” has the meaning given to such term in the Plan. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Committee” has the meaning given to such term in the Plan. 
 “GAAP” means Generally Accepted Accounting Principles. 
 “Good Reason” means (1) a material reduction by the Company in your degree of responsibility and authority (other than in connection with an acquisition of the Company or any of its subsidiaries
if your direct reporting responsibility remains unchanged), which reduction is not cured within twenty (20) days of you having provided the Board with written notice of said reduction; (2) the Company’s failure to pay your then
current Base Salary (as defined in the Severance Plan) or bonus in accordance with the Company’s payroll practices, which failure is not cured within twenty (20) days of you having provided the Board with written notice of said failure; or
(3) the occurrence of any significant life-changing event to you that you reasonably and in good faith believe would significantly impair your ability to perform your duties to the Company, which you provide the Company written notice of within
ten (10) days of such occurrence. 
 “Option” has the meaning given to such term in the Plan. 

 “Person” has the meaning given to such term in the Plan. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Severance Plan” means the Company’s Severance Plan, established as of April 7, 2006. 
 “Stockholders Agreement” means the Stockholders Agreement dated as of April 7, 2006, among the Company, the stockholders of the
Company party thereto and the other parties thereto, as the same may be amended from time to time and in effect on the date of determination. 
 “Subsidiary” means any subsidiary corporation (as such term is defined in section 424(1) of the Code) of the Company. 
 2. Option Terms. 
 (a) Grant. You hereby are granted Options to purchase up to
[            ] shares of common stock in the Company (the “Stock”) as of the date first written above (the “Grant Date”). The Stock issuable on exercise of
the Options is hereinafter referred to as the “Option Stock.” The strike price per share of Stock, subject to adjustment pursuant to Section 10 below, for which all or any of the Option Stock may be purchased pursuant to the terms
hereunder shall be $10.00 per share (the “Strike Price”), which is equal to the fair market value per share on the date hereof, payable upon exercise as set forth in Section 3 below. Your Options will expire at the close of business
on the tenth (10th) anniversary of the Grant Date (the “Expiration Date”), subject to earlier expiration as provided below. The Options granted you are not intended to be Incentive Stock Options under Section 422 of the Internal
Revenue Code. 
 (b) Exercisability. 
 (i) Vesting. Your Options will be exercisable only to the extent that they have vested. Fifty percent (50%) of your Options (“Time Vest Options”) will vest as follows: one-third of the total Time
Vest Options granted to you hereunder shall vest on April 7, 2007, one-third of the total Time Vest Options granted to you hereunder shall vest on April 7, 2008, and one-third of the total Time Vest Options granted to you hereunder shall
vest on April 7, 2009; provided, however, that vesting of such Time Vest Options will occur if and only if you have been continuously employed by the Company or any Subsidiary (excluding periods of temporary disability or approved leaves of
absence) from the date of this Agreement through such vesting dates. Fifty percent (50%) of your Options (“Performance Vest Options”) will vest as follows: one-third of the total Performance Vest Options granted to you hereunder shall
vest on April 7, 2007, one-third of the total Performance Vest Options granted to you hereunder shall vest on April 7, 2008, and one-third of the total Performance Vest Options granted to you hereunder shall vest on April 7, 2009;
provided, however, that vesting of such Performance Vest Options will occur if and only if (1) you have been continuously employed by the Company or any Subsidiary (excluding periods of temporary disability or approved leaves of absence) from
the date of this Agreement through such vesting dates and (2) as of each such vesting date the Company has either: 
  

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 (A) met or exceeded (as determined on a basis consistent with the calculation methodologies used in the
preparation of the pro forma EBITDA projections for the Company previously distributed to you) the annual EBITDA target for the prior fiscal year as set forth below: 
  

				
	 Fiscal Year
	  	Annual EBITDA Target
		  	$	                    
		  	$	 
		  	$	 

 or 
 (B) met or exceeded (as determined on a basis consistent with the calculation methodologies used in the preparation of the pro forma EBITDA projections for the Company previously distributed to you) the cumulative
EBITDA target for the prior fiscal years as set forth below: 
  

				
	 Fiscal Years
	  	Cumulative EBITDA
Target
		  	$	 
		  	$	                    

 Further, notwithstanding the foregoing, (X) in the event that the annual and/or cumulative EBITDA targets set
forth in Sections 2(b)(i)(2)(A) and 2(b)(i)(2)(B) above are not met or exceeded for a given fiscal year or years, the Board may (but shall not be obligated to) at any time prior to the Expiration Date, in the Board’s sole and unreviewable
discretion and whether due to the achievement by the Company of an acceptable EBITDA threshold for a sale of the Company or otherwise, deem such EBITDA targets set forth above satisfied for such fiscal year(s) for the purposes of determining the
vesting of your Performance Vest Options and (Y) if your employment is terminated without Cause or for Good Reason (other than pursuant to clause (3) of the definition of Good Reason) within one hundred eighty (180) days prior to, or
twelve (12) months following, a Change in Control, such termination shall be deemed to be as a result of a Change in Control, and for purposes of this Agreement, you shall be deemed to have been employed by the Company on the date of the Change
in Control and the vesting and exercisability of both your Time Vest Options and Performance Vest Options shall be controlled by subsection (d) of this Section 2. 
 (c) Termination of Options. In no event shall any part of your Options be exercisable after the Expiration Date set forth in Section 2(a).
If your employment by the Company or any Subsidiary is terminated without Cause or for Good Reason, any of your Options not vested on the date of termination shall expire and be forfeited. If your employment is terminated for Cause or other than for
Good Reason, all of your unexercised options, whether or not vested, shall expire and be forfeited as of the date of such termination. A termination for “Cause” shall be determined by the Board. 
  

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 (d) Change in Control. Upon the occurrence of a Change in Control, any Options not vested on the
date of such Change in Control and for which the vesting term has not expired under Section 2(b)(i) (so that such Options retain the possibility of future vesting as of the time immediately prior to the Change in Control) shall vest and become
immediately exercisable. You shall have ninety (90) days following the later of the date of such Change in Control or the date of the termination of your employment if deemed to be as a result of a Change in Control pursuant to the other
provisions of this Agreement or the Severance Plan to exercise any vested Options, after which the Options shall terminate. 
 (e) Call
Option. 
 (i) Repurchase Right. Except as the Company may otherwise agree with you with respect to your Options, if your
employment by the Company or any Subsidiary is terminated without Cause, for Good Reason, or as a result of your death or disability, the Company or the Investors (as defined in the Stockholders Agreement) may purchase (the “Call Option”)
all or any portion of the Options that are then exercisable and held by you or originally issued to you, but held by one or more Permitted Transferees (as defined in the Stockholders Agreement) (collectively, the “Optionholder Call Group”)
at a price equal the difference between (A) the Board’s good faith determination of the fair market value of the shares of Stock underlying the portion of the Options to be purchased as of the applicable reference date (“Fair Market
Value”), minus (B) the aggregate Strike Price of such portion of the Options to be purchased. If the Company has a right to repurchase your shares of Stock pursuant to the provisions of this paragraph, the Company may exercise such call
right regardless of whether you continue to have a right to exercise the Options under Section 2(c). 
 (ii) Call Notice from Company. Any Call Option may be exercised by the Company by delivery of written notice thereof (the “Call Notice”) to all members of the Optionholder Call Group not later than
the later of (A) the 90th day after the last day on which any Options held by you are exercisable, and (B) the 60th day after the date (the “Termination Date”) of your termination without Cause, for Good Reason, or as a result of your death or disability (such
period, a “Call Option Exercise Period”). The Call Notice shall state that the Company has elected to exercise the Call Option, and the number and price of the Options with respect to which the Call Option is being exercised. 

(iii) Call Notice from Investors. If the Company does not deliver a Call Notice in
accordance with the terms of clause (ii) above, the Investors shall have the right to exercise the Call Option by delivering a Call Notice to all members of the Optionholder Call Group not later than the later of (A) the 90th day after the last day on which any Options held by you are exercisable, and (B) the 70th day after the Termination Date (such period, a “Call Option Exercise Period”) by following the procedure, and complying with the terms and conditions, set forth in the
remainder of this Section 2(e) as if they were the Company. 
 (iv) Consideration. In connection with the exercise of a Call
Option, the Company or the Investors shall provide consideration to you equal to the purchase price set forth in clause (ii) above at the closing of any such purchase. Such consideration shall be (A) in cash or (B) to the extent any
such cash payment would constitute, result in or give rise to any breach or violation of, or any default or right or cause of action under, any agreement for 

  

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borrowed money to which the Company or any of its Subsidiaries are, from time to time, a party, an interest bearing promissory note, which promissory note
will be payable when a Change of Control or Initial Public Offering (each as defined in the Stockholders Agreement) occurs. 
 (v)
Closing. The closing of any purchase of Options pursuant to this Section 2(e) shall take place as soon as reasonably practicable and in no event later than 30 days after termination of the applicable Call Option Exercise Period at the
principal office of the Company, or at such other time and location as the parties to such purchase may mutually determine. At the closing of any purchase of Options following the exercise of any Call Option, the holders of the Options to be sold
shall deliver to the Company a certificate or certificates representing the Options to be purchased by the Company or the purchasing Investors free and clear of any lien or encumbrance, with any necessary stock (or equivalent) transfer tax stamps
affixed for transfer with signature guaranteed, and the Company or the purchasing Investors shall pay to such holder by certified or bank check or wire transfer of immediately available federal funds or such other consideration, as may be
applicable, the purchase price of the Options being purchased. The delivery of a certificate or certificates for Options by any Person selling Options pursuant to any Call Option shall be deemed a representation and warranty by such Person that:
(A) such Person has full right, title and interest in and to such Options; (B) such Person has all necessary power and authority and has taken all necessary action to sell such Options as contemplated; (C) such Option is free and
clear of any and all liens or encumbrances and (D) there is no Adverse Claim (as defined in the Stockholders Agreement) with respect to such Options. 
 (vi) Acknowledgement. You acknowledge and hereby agree that neither the Company, any Investor nor any Person directly or indirectly affiliated with the Company or any Investor (in each case whether as a
partner, director, officer, manager, employee, agent or otherwise) shall have any duty or obligation to affirmatively disclose to you, and you shall not have any right to be advised of, any material information regarding the Company or otherwise at
any time prior to, upon, or in connection with any termination of your employment with the Company or any Subsidiary upon the exercise of any Call Option or any purchase of Options in accordance with the terms hereof. 
 3. Procedure for Exercise. You may exercise all or any portion of your Options to the extent permitted hereby, at any time and from time to time
by delivering written notice to the Company (to the attention of the Company’s Secretary) accompanied by payment in full of an amount equal to the product of (i) the Strike Price multiplied by (ii) the number of shares of Option Stock
to be acquired. Payment of the Strike Price shall be payable (A) by certified or bank check or wire transfer of immediately available funds, (B) by delivery of previously acquired Stock (valued at its fair market value as determined in
good faith by the Committee) held by you for at least six (6) months prior to the tender, (C) by the surrender of shares of Option Stock (valued at their fair market value as determined in good faith by the Committee) then issuable upon
exercise of the Options, or (D) by a combination of (A), (B), and/or (C). The Company may delay effectiveness of any exercise of your Options for such period of time as may be necessary to comply with any contractual provisions to which it may
be subject relating to the issuance of its securities. 
  

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 4. Securities Law Restrictions. Unless a Registration Statement under the Securities Act of 1933
is in effect with respect to the Stock to be purchased upon exercise, you represent that when you exercise your Options you will be purchasing the Stock covered thereby for your own account and with no present intention of selling or transferring
them. You agree that you will not sell or otherwise transfer the Stock except in compliance with all applicable securities and tax laws, and the requirements of any stock exchange upon which the Stock may then be listed. You further agree that you
will not offer, sell or otherwise dispose of any Stock acquired upon exercise of your Options in any manner which would: (i) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar
filing under state law) or to amend or supplement any such filing or (ii) violate or cause the Company to violate the Securities Act, the rules and regulations promulgated thereunder or any other state or federal law. The certificates for any
Stock you purchase will bear such legends as the Company deems necessary, or desirable in connection with the Securities Act or other rules, regulations or laws. 
 5. Options Not Transferable. Your Options are personal to you and are not transferable by you other than by will or the laws of descent and distribution. During your lifetime only you (or your legal guardian or
legal representative) may exercise your Options. In the event of your death, your Options may be exercised only by the executor or administrator of your estate or the person or persons to whom your rights under the Options shall pass by will or the
laws of descent and distribution. 
 6. Conformity with Plan. Your Options are intended to conform in all respects with, and are
subject to all applicable provisions of, the Plan, which is incorporated herein by reference. Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan. By executing and returning the enclosed
copy of this Agreement, you (i) acknowledge your receipt of this Agreement and the Plan and agree to be bound by all of the terms of this Agreement and the Plan and (ii) acknowledge and agree that, as a condition to the receipt of Option
Stock upon exercise of this Option, to the extent required by the Committee, you shall execute and deliver a counterpart signature page to a stockholder’s agreement or such other documentation which shall set forth certain restrictions on
transferability of the Option Stock, a right of first refusal of the Company with respect to Option Stock, and such other terms or restrictions as the Board or Committee shall from time to time establish. 
 7. Continuation of Employment. Nothing in this Agreement shall confer upon you any right of employment with the Company or any Subsidiary for any
period of time or to continue to receive your current (or other) rate of compensation. 
 8. Rights as a Stockholder. You shall have
no rights as a stockholder of the Company with respect to the Stock subject to this Agreement until such time as the purchase price and any applicable withholding has been paid and the Stock has been issued and delivered to you. 
 9. Withholding of Taxes. The Company may, if necessary, withhold from any amounts due and payable by the Company to you (or secure payment from
you in lieu of withholding) the amount of any withholding or other tax due from the Company with respect to the exercise of your Options, and the Company may defer any issuance of the securities purchased upon such exercise unless indemnified by you
to its satisfaction against the payment of any such amount. 
  

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 10. Adjustments. In the event of a reorganization, reclassification, or combination or other
change in the Stock, the Committee shall, in order to prevent the dilution or enlargement of rights under your Options, make such adjustments in the number and type of Stock authorized by the Plan, the number and type of Stock covered by your
Options and the Strike Price specified herein as may be determined to be appropriate and equitable. 
 11. Governing Law. This
Agreement shall be governed by the laws of the State of Delaware applicable to agreements made entirely within the State. 
 12. Notices.
All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally or mailed by certified or
registered mail, return receipt requested and postage prepaid, to the recipient. Such notices, demands and other communications shall be sent to you and to the Company at the addresses indicated below: 
  

			
	(a)	  	If to the Optionee:
		
		  	[NAME]
		  	[ADDRESS]
		
	(b)	  	If to the Company:
		
		  	KAGY Holding Company, Inc.
		  	2558 Wagener Road
		  	Aiken, SC 29801
		  	Attention: Chief Financial Officer
		  	Telecopy No.: (803) 643-1180
		
		  	With a copy to:
		
		  	Ropes & Gray LLP
		  	One International Place
		  	Boston, MA 02110-0110
		  	Attention: Craig E. Marcus
		  	Telecopy No.: (617) 951-7050

 or to such other address or to the attention of such other person as the recipient party has specified by prior
written notice to the send party. 
 [Signature Page to Follow] 
  

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 Please execute the extra copy of this Agreement in the space below and return it to the Chief Financial
Officer at the Company’s offices set forth in Section 12 above confirm your understanding and acceptance of the agreements contained in this Agreement. 
  

			
	Very truly yours,
	
	KAGY HOLDING COMPANY, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 The undersigned hereby acknowledges that he has read this Agreement and the Plan and hereby
agrees to be bound by all provisions set forth herein and therein. 
  

			
	  

  

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