Document:

exv4w4

 

Exhibit 4.4

S&C HOLDCO 3, INC.

AS ISSUER

AND

THE BANK OF NEW YORK TRUST COMPANY, N.A.

AS TRUSTEE

 

FIRST SUPPLEMENTAL INDENTURE

DATED AS OF JUNE 21, 2007

TO

INDENTURE

DATED AS OF MARCH 11, 2005

 

11.00% SENIOR NOTES DUE 2010

 

 

FIRST SUPPLEMENTAL INDENTURE, dated as of June 21, 2007, by and between S&C Holdco 3, Inc., a
Delaware corporation (the “Company”), and The Bank of New York Trust Company, N.A., as
trustee (the “Trustee”).

WHEREAS, the Company and certain guarantors have heretofore executed and delivered to the Trustee
an Indenture, dated as of March 11, 2005 (the “Indenture”), providing for the issuance of
11.00% Senior Notes due 2010 (the “Notes”); and

WHEREAS, there have been issued and are now outstanding under the Indenture, Notes in the aggregate
principal amount of approximately $125.1 million; and

WHEREAS, Section 9.02 of the Indenture provides that the Company and the Trustee may amend or
supplement certain provisions of the Indenture with the consent of the holders of a majority in
principal amount of the Notes then outstanding; and

WHEREAS, the Company has offered to purchase each of the Notes for cash, upon the terms and subject
to the conditions set forth in that certain Offer to Purchase and Consent Solicitation Statement,
dated June 7, 2007 (the “Offer Statement”), and the accompanying Consent and Letter of
Transmittal (the “Letter of Transmittal” and, together with the Offer Statement and the
ancillary documents associated therewith, the “Offer to Purchase”); and

WHEREAS, under the terms of the Offer to Purchase, holders that tender Notes in accordance with the
terms of the Offer to Purchase and who deliver a duly executed Letter of Transmittal are deemed to
consent to certain amendments to the Indenture which would permanently delete or amend certain of
the covenants, events of default and other related provisions of the Indenture (the “Proposed
Amendments”); and

WHEREAS, in accordance with the terms of the Indenture, holders of a majority in principal amount
of the outstanding Notes have tendered their Notes and consented to the Proposed Amendments to be
effected by this First Supplemental Indenture; and

WHEREAS, the execution and delivery of this First Supplemental Indenture has been authorized by
resolutions of the Board of Directors of the Company and the Trustee has received an Officer’s
Certificate and an Opinion of Counsel pursuant to Section 9.06 of the Indenture; and

WHEREAS, all conditions and requirements necessary to make this First Supplemental Indenture a
valid, legal, binding and enforceable instrument in accordance with its terms have been performed
and fulfilled by the Company and the Trustee and the execution and delivery thereof have been in
all respects duly authorized by the Company and the Trustee.

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NOW, THEREFORE, in consideration of the above premises, each party hereby agrees, for the benefit
of the others and for the equal and ratable benefit of the holders of Notes, as follows:

ARTICLE 1.

AMENDMENT TO INDENTURE

SECTION 1.1. AMENDMENT. Effective as of the Operative Date (as hereinafter defined), the
Indenture is hereby amended as follows:

(a) The following sections of the Indenture are deleted in their entirety: Sections 4.02, 4.03,
4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19,
4.20, 4.22, 4.23, 4.24, 5.01(c)(ii), 5.02, 6.01(iv), 6.01(v), 6.05, 8.04(b), 8.04(c), 8.04(f),
8.04(h), 8.04(i) and 10.04(d).

The text of the above sections are replaced by the phrase “[Intentionally Omitted]” and the
surrounding sections are not renumbered.

(b) Section 4.21 is deleted in its entirety except as herein provided, such that Section 4.21, as
amended, shall read as follows:

In addition, any Subsidiary Guarantee by a Restricted Subsidiary
will be automatically and unconditionally released and discharged
if the Company designates such Restricted Subsidiary as an
Unrestricted Subsidiary in accordance with this Indenture.

(c) Sections of the Indenture and the Notes not amended pursuant to Sections 1.1(a) or 1.1(b)
hereof are amended to delete any references in the Indenture or the Notes to sections deleted
pursuant to Sections 1.1(a) and 1.1(b) hereof.

(d) All definitions set forth in Section 1.01 of the Indenture that relate to defined terms used
solely in the sections deleted hereby are deleted in their entirety.

SECTION 1.2. WAIVER. Subject to Section 6.04 of the Indenture (to the extent applicable), all
Defaults and Events of Default that may exist under the Indenture as of the Operative Date (as
defined herein) are hereby waived.

ARTICLE II

MISCELLANEOUS PROVISIONS

SECTION 2.1. DEFINED TERMS. For all purposes of this First Supplemental Indenture, except as
otherwise defined or unless the context otherwise requires, terms

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used in capitalized form in this First Supplemental Indenture and defined in the Indenture have the
meanings specified in the Indenture.

SECTION 2.2. INDENTURE. Except as amended hereby, the Indenture and the Notes are in all respects
ratified and confirmed and all the terms shall remain in full force and effect.

SECTION 2.3. GOVERNING LAW. THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS.

SECTION 2.4. SUCCESSORS. All agreements of the Company in this First Supplemental Indenture and
the Notes shall bind its successors. All agreements of the Trustee in this First Supplemental
Indenture shall bind its successors.

SECTION 2.5. DUPLICATE ORIGINALS. All parties may sign any number of copies of this First
Supplemental Indenture. Each signed copy shall be an original, but all of them together shall
represent the same agreement.

SECTION 2.6. SEVERABILITY. In case any one or more of the provisions in this First Supplemental
Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any
reason, the validity, legality and enforceability of any such provision in every other respect and
of the remaining provisions shall not in any way be affected or impaired thereby, it being intended
that all of the provisions hereof shall be enforceable to the full extent permitted by law.

SECTION 2.7. TRUSTEE DISCLAIMER. The Trustee accepts the amendment of the Indenture effected by
this First Supplemental Indenture, but on the terms and conditions set forth in the Indenture,
including the terms and provisions defining and limiting the liabilities and responsibilities of
the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be
responsible in any manner whatsoever for or with respect to any of the recitals or statements
contained herein, all of which recitals or statements are made solely by the Company, or for or
with respect to (i) the validity or sufficiency of this First Supplemental Indenture or any of the
terms or provisions hereof, (ii) the proper authorization hereof by the Company by corporate action
or otherwise, (iii) the due execution hereof by the Company or (iv) the consequences (direct or
indirect and whether deliberate or inadvertent) of any amendment herein provided for, and the
Trustee makes no representation with respect to any such matters.

SECTION 2.8. EFFECTIVENESS. This First Supplemental Indenture shall become effective upon
execution. The amendments to the Indenture made hereby shall only become operative at such time as
the Company accepts the Notes tendered pursuant to the Offer to Purchase for payment (the
“Operative Date”). In the event the Company withdraws or terminates the Offer to Purchase,
or any condition of the Offer to Purchase is not satisfied or waived by the Company, on or prior to
the Final Acceptance Date (as

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defined in the Offer to Purchase), this First Supplemental Indenture shall become null and void.

[The Remainder of This Page is Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly
executed as of the day and year written above.

	 	 	 	 	 
	 	S&C HOLDCO 3, INC.,

as Issuer

 	 
	 	By:  	/s/ Donald F. Wiseman
 	 
	 	 	Name:  	Donald F. Wiseman 	 
	 	 	Title:  	Senior Vice President,

General Counsel and Secretary 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,

as Trustee

 	 
	 	By:  	/s/ Alma Marcella Burgess
 	 
	 	 	Name:  	Alma Marcella Burgess 	 
	 	 	Title:  	Assistant Vice President 	 
	 

6EXHIBIT 10.23
	 

	 
		FINLAY ENTERPRISES,
		INC.
	 

	 
		2007 LONG TERM INCENTIVE
		PLAN
	 

	 
		(effective on June 19,
		2007)
	 

	 
		1. Purpose and Adoption of
		the Plan
	 

	 
		The purpose of the 2007 Long
		Term Incentive Plan is to promote the interests of Finlay Enterprises, Inc.
		(the “Corporation”) and its stockholders by providing an incentive
		and reward for executive officers, directors, key employees, consultants and
		other persons who are in a position to contribute substantially to the progress
		and success of the Corporation and its subsidiaries and thereby encourage such
		persons to seek such results; to closely align the interests of such employees
		and other persons with the interests of stockholders of the Corporation by
		linking rewards hereunder to stock performance; to retain in the Corporation
		and its subsidiaries the benefits of the services of such persons; and to
		attract to the service of the Corporation and its subsidiaries new executive
		officers, directors, key employees, consultants and other such persons of high
		quality. 
	 

	 
		The Board adopted this Plan by
		merging the Finlay Enterprises, Inc. Long Term Incentive Plan into the Finlay
		Enterprises, Inc. 1997 Long Term Incentive Plan (collectively, the “Prior
		Plans”) and then amending and restating the merged plan. This Plan is
		effective June 19, 2007. No new Awards shall be made under the Prior Plans on
		or after June 19, 2007. Awards under the Prior Plans that are outstanding on
		June 19, 2007 shall remain subject to the terms of the Prior Plans but any
		shares that become available because of the forfeiture or cancellation of
		Awards under the Prior Plans shall be available for issuance under this Plan in
		accordance with Section 5. 
	 

	 
		2. Definitions
	 

	 
		Unless otherwise required by
		the context, the terms used in this Plan shall have the meanings ascribed to
		such terms in this Section 2.
	 

	 
		“Award” shall mean an
		award granted under the Plan in one of the forms provided in Section 6.
	 

	 
		“Beneficiary,” as
		applied to a participant, shall mean a person or entity (including a trust or
		the estate of the participant) designated in writing by the participant on such
		forms as the Committee may prescribe to receive benefits under the Plan in the
		event of the death of the participant; provided, however, that if, at the death
		of a participant, there shall not be any living person or entity in existence
		so designated, the term “beneficiary” shall mean the legal
		representative of the participant’s estate.
	 

	 
		“Board” or
		“Board of Directors” shall mean the Board of Directors of the
		Corporation.
	 

	 
		“Code” shall mean the
		Internal Revenue Code of 1986, as amended from time to time. References to any
		provision of the Code shall be deemed to include regulations and proposed
		regulations thereunder and successor provisions and regulations thereto.

	 

	 
		“Committee” shall
		mean the Compensation Committee of the Board of Directors, and/or any other
		committee or subcommittee the Board may appoint to administer the Plan as
		provided herein. A Committee composed solely of two or more members of the
		Board who meet (i) the definition of “outside director” under Section
		162(m) of the Code, (ii) the definition of “non-employee director”
		under Section 16 of the Exchange Act and (iii) any similar or successor laws
		hereinafter 
	 

	 
		 
	 

	 
		 
	 

	 
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		enacted, shall administer the
		Plan with respect to participants who are Covered Employees or who are subject
		to Section 16 of the Exchange Act at the time of the relevant Committee action;
		provided, however, that if, at any time, no Committee shall be in office, then
		the functions of the Committee specified in this Plan shall be exercised by the
		Board or by any other committee appointed by the Board.
	 

	 
		“Common Stock” shall
		mean the Common Stock of the Corporation, $.01 par value, or such other class
		of shares or other securities as may be applicable pursuant to the provisions
		of Section 8.
	 

	 
		“Covered Employee”
		shall mean any employee of the Corporation or any of its Subsidiaries who is
		deemed to be a “covered employee” within the meaning of Section
		162(m) of the Code.
	 

	 
		“Detrimental
		Activity” shall mean any activity by a participant or former participant
		in the Plan that is determined by the Executive Committee of the Corporation in
		its sole discretion to be deleterious to the interests of the Corporation or
		any Subsidiary.
	 

	 
		“Disability” shall
		mean the permanent and total disability as defined by Section 22(e)(3) of the
		Code.
	 

	 
		“Exchange Act” shall
		mean the Securities Exchange Act of 1934, as amended. References to any
		provision of the Exchange Act shall be deemed to include the rules and
		regulations thereunder and successor provisions and rules and regulations
		thereto.
	 

	 
		“Fiscal Year” shall
		mean a fiscal year of the Corporation.
	 

	 
		“Market Value,” as
		applied to any date, shall mean the volume weighted average trading price of
		the Common Stock on the principal national securities exchange on which such
		stock is listed and traded for such date or, if there is no sale on that date,
		then on the last preceding date on which a sale was reported. If the Common
		Stock is not quoted or listed on an exchange or representative quotes are not
		otherwise available, the Market Value of the Common Stock shall mean its fair
		market value determined in good faith by the Committee in accordance with a
		reasonable valuation method under Code Section 409A.
	 

	 
		“Non-Employee
		Director” shall mean a member of the Board who is not an employee of the
		Corporation or any of its Subsidiaries.
	 

	 
		“Nonqualified Stock
		Option” shall mean an Option that is not an “incentive stock
		option” under Section 422 of the Code.
	 

	 
		 “Option” or
		“Stock Option” shall mean an option to purchase shares of Common
		Stock granted pursuant to paragraph 6.3.
	 

	 
		 “Performance Share”
		shall mean a contingent right granted pursuant to paragraph 6.4 to receive an
		award, payable in Common Stock, if specific goals prescribed by the Committee
		are attained.
	 

	 
		 “Plan” shall mean
		the 2007 Long Term Incentive Plan of the Corporation set forth herein, as such
		may be amended and supplemented from time to time.
	 

	 
		“Restricted Stock”
		shall mean shares of Common Stock issued or transferred subject to restrictions
		precluding a sale or other disposition for a period of time or a contractual
		right to obtain Common Stock if the participant remains employed during a
		certain period of time, as determined
	 

	 
		 
	 

	 
		 
	 

	 
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		by the Committee with both
		types of Restricted Stock subject to such other terms and conditions that may
		be imposed by the Committee.
	 

	 
		 “Restricted Stock
		Unit” shall mean a right to receive an amount based upon the Market Value
		of a share of Common Stock with such value to be paid out at the end of a
		period of time in either cash or Common Stock as determined by the Committee
		subject to such other terms and conditions that may be imposed by the
		Committee.
	 

	 
		“Retirement” shall
		mean the termination of the participant’s employment with the Corporation
		and its Subsidiaries for retirement purposes if such termination occurs on or
		after his normal retirement date as defined under the Corporation’s
		Retirement Income Plan.
	 

	 
		“Rule 16b-3,” as
		applied on a specific date, shall mean Rule 16b-3 of the General Rules and
		Regulations under the Exchange Act as then in effect or any other provision
		that may have replaced such Rule and be then in effect.
	 

	 
		“Stock Award” shall
		mean a form of Award granted pursuant to paragraph 6.2.
	 

	 
		“Subsidiary” shall
		mean a corporation or other form of business association of which shares (or
		other ownership interests) having 50% or more of the voting power are owned or
		controlled, directly or indirectly, by the Corporation.
	 

	 
		3. Scope of the Plan; Eligibility
	 

	 
		3.1. The Plan shall apply to
		the Corporation and Subsidiaries other than those specifically excluded by the
		Board of Directors.
	 

	 
		3.2. Awards may be made or
		granted, subject to applicable law, to executive officers, directors, key
		employees, consultants and other persons who are deemed to render significant
		services to the Corporation or its Subsidiaries and/or who are deemed to have
		the potential to contribute to the future success of the Corporation and its
		Subsidiaries. 
	 

	 
		4. Administration
	 

	 
		4.1. The Plan shall be
		administered by the Committee. Subject to the express provisions of the Plan,
		the Committee shall have the full power to interpret and administer the Plan,
		including, without limitation, determining who shall be participants in the
		Plan, the amount to be awarded to each participant and the form, manner of
		payment, conditions, time and terms of payment of Awards. The interpretation by
		the Committee of the terms and provisions of the Plan and the administration
		thereof, as well as all actions taken by the Committee, shall be final and
		binding on the Corporation, its stockholders, Subsidiaries, all participants
		and employees, and upon their respective Beneficiaries, successors and assigns,
		and upon all other persons claiming under or through any of them.
	 

	 
		4.2. The Committee may adopt
		such rules and regulations, not inconsistent with the provisions of the Plan,
		as it deems necessary to determine participation in the Plan, the form and
		distribution of benefits thereunder and the proper administration of the Plan,
		and may amend or revoke any such rule or regulation.
	 

	 
		4.3. Unless authority is
		specifically reserved to the Board of Directors under the terms of the Plan,
		the Corporation’s Certificate of Incorporation or By-laws, or applicable
		law, the Committee shall have sole discretion in exercising authority under the
		Plan. The Committee shall select one of its members as its chairman and shall
		hold meetings at such times and places as it shall deem advisable. Any action
		of the Committee shall be taken with the approval of a majority of its 
	 

	 
		 
	 

	 
		 
	 

	 
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		members present and voting at a
		meeting duly called and held at which a quorum is present. A majority of the
		Committee’s members shall constitute a quorum. Any action may be taken by
		a written instrument signed by all members of the Committee and such action
		shall be fully as effective as if taken by a majority of the members at a
		meeting duly called and held. The Committee may delegate to officers or
		managers of the Corporation or any Subsidiary of the Corporation the authority,
		subject to such terms as the Committee shall determine, to perform
		administrative functions and, with respect to participants not subject to
		Section 16 of the Exchange Act, to perform such other functions as the
		Committee may determine, to the extent permitted under Rule 16b-3 and
		applicable law.
	 

	 
		4.4. Each member of the
		Committee shall be entitled to rely or act in good faith upon any report or
		other information furnished to him by any officer or other employee of the
		Corporation or any Subsidiary, the Corporation’s independent certified
		public accountants, or any executive compensation consultant, legal counsel or
		other professional retained by the Corporation to assist in the administration
		of the Plan. No member of the Committee, nor any officer or employee of the
		Corporation or a Subsidiary acting on behalf of the Committee, shall be
		personally liable for any action, determination or interpretation taken or
		omitted to be taken or made in good faith with respect to the Plan, and such
		persons shall, to the extent permitted by law, be fully indemnified and
		protected by the Corporation with respect to any such action, determination or
		interpretation.
	 

	 
		5. Shares Subject to the Plan
	 

	 
		5.1. Subject to adjustment as
		provided in Section 8 hereof, the total number of shares of Common Stock
		reserved for delivery to participants in connection with Awards under the Plan
		shall be 446,351. This amount includes any available shares under the Prior
		Plans. If any shares of Common Stock subject to an Award at or after the
		effective date of the Plan under the Plan or the Prior Plans are forfeited or
		such Award is settled in cash or otherwise terminates, such number of shares
		shall be available for new Awards under the Plan. Any shares of Common Stock
		under an Award that are surrendered or otherwise used to pay the exercise price
		or used to pay withholding taxes shall count against the maximum available
		under the Plan and shall not be available for new Awards under the Plan.
		
	 

	 
		5.2. No Award (including an
		Award that may only be settled in cash) may be granted if the number of shares
		of Common Stock to which such Award relates, when added to the number of shares
		previously delivered under the Plan and the number of shares to which other
		then-outstanding Awards relate, exceeds the number of shares of Common Stock
		deemed available under this Section 5. Any shares of Common Stock delivered
		pursuant to an Award may consist, in whole or in part, of authorized and
		unissued shares or treasury shares.
	 

	 
		6. Terms of Awards
	 

	 
		6.1. Grants of Awards. Awards may be granted, in whole or in
		part, in one or more following forms:
	 

	 
		(a) A Stock Award in accordance
		with paragraph 6.2;
	 

	 
		(b) An Option, in accordance
		with paragraph 6.3; or
	 

	 
		(c) A Performance Share in
		accordance with paragraph 6.4.
	 

	 
		6.2. Stock Awards. Awards granted as Stock Awards shall be in the form of
		an issuance of (i) shares of Restricted Stock, (ii) shares which are not
		subject to any restrictions on sale or disposition, and (iii) Restricted Stock
		Units. Such Stock Awards shall contain such terms and conditions as the
		Committee shall determine, including any provisions relating to the timing of
		the 
	 

	 
		 
	 

	 
		 
	 

	 
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		issuance of shares of Common
		Stock, forfeiture of all or any part of the Restricted Stock or Restricted
		Stock Units upon termination of employment prior to expiration of a designated
		period of time or upon the occurrence of other events; provided, however, that
		upon the issuance of shares pursuant to a Stock Award of Restricted Stock, the
		participant shall, with respect to such shares, be and become a stockholder of
		the Corporation entitled to receive dividends, to vote and to exercise all
		other rights of a stockholder except to the extent otherwise specifically
		provided in the Stock Award. The certificate for any shares of Common Stock
		issued as Restricted Stock shall either be deposited in escrow or carry an
		appropriate legend as the Committee shall determine. Delivery of share
		certificates or other transfer of ownership (or the payment of cash for
		Restricted Stock Units payable in cash) to a participant upon the expiration of
		a time period or other restriction with regard to a Restricted Stock or
		Restricted Stock Unit Award shall occur within the time period required to meet
		the short term deferral exemption or any other applicable exemption under Code
		Section 409A. The Committee may also grant Restricted Stock that is intended to
		meet the requirements of Performance Shares under paragraph 6.4.
	 

	 
		6.3. Options. Awards granted as Options shall be subject to the
		following provisions:
	 

	 
		(a) Options granted shall be
		Nonqualified Stock Options.
	 

	 
		(b) The price at which shares
		of Common Stock covered by each Option may be purchased pursuant thereto shall
		be determined by the Committee, but shall not be less than 100% of the Market
		Value of the Common Stock on the date the Option is granted. 
	 

	 
		(c) Each Option shall expire at
		such time as the Committee may determine at the time such Option is granted.
		
	 

	 
		(d) Each Option shall first
		become exercisable at such time or times as the Committee may determine at the
		time such Option is granted, except that:
	 

	 
		(i) In the event the employment
		of a participant is terminated by reason of Retirement, death, or Disability,
		all unexercised Options shall thereupon, subject to the other provisions below
		of this paragraph 6.3, become exercisable for the period provided in connection
		with such termination in paragraph (e); and (ii) Options granted shall not be
		affected by any change in the nature of the participant’s employment so
		long as he continues to be employed by the Corporation or a Subsidiary.
		Approved leaves of absence shall not be considered a termination or
		interruption of full-time employment for any purpose of the Plan. 
	 

	 
		(e) The Committee shall
		determine and set forth in each agreement governing an Option rules that
		specify the period, if any, after termination of employment during which an
		Option shall be exercisable.
	 

	 
		(f) An Option shall be
		considered exercised under the Plan on the date written notice is received by
		the Secretary of the Corporation, advising of the exercise of a particular
		Option and transmitting payment of the Option price for the shares involved,
		plus any withholding tax required under any federal, state and local
		statutes.
	 

	 
		(g) Options are not
		transferable other than by will or by the laws of descent and distribution, and
		during a participant’s lifetime are exercisable only by him.
	 

	 
		(h) The Committee may place
		such conditions on the exercise of Options and on the transferability of shares
		received on exercise of an Option, in addition to those contained herein, as it
		shall deem appropriate.
	 

	 
		 
	 

	 
		 
	 

	 
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		(i) No shares shall be issued
		or transferred upon exercise of an Option until full payment of the exercise
		price therefor has been made. The Committee shall determine the form of payment
		and the procedure for payment of such exercise price. Such exercise price may
		be paid (i) in cash, (ii) to the extent authorized by the Committee, in whole
		shares of Common Stock owned by the participant prior to exercising the Option,
		(iii) to the extent authorized by the Committee, by having the Corporation
		withhold a number of shares from the exercise having a Market Value equal to
		the exercise price, or (iv) such other form determined acceptable by the
		Committee. For the purpose of such payment, the sum of the Market Value of the
		shares of Common Stock and any such other property on the date of exercise plus
		any cash payment shall not be less than the option exercise price of the shares
		to be issued or transferred. 
	 

	 
		6.4. Performance Shares. Awards granted as Performance Shares
		shall be subject to the following provisions:
	 

	 
		(a) The performance period for
		the attainment of the performance goal shall be a cycle of not less than one
		nor more than five Fiscal Years of the Corporation, as determined by the
		Committee. The Committee may establish more than one cycle for any particular
		Performance Share.
	 

	 
		(b) The Committee shall
		establish the number of Performance Shares granted, the principal and minimum
		performance goals to be attained in respect of the Performance Shares, the
		various percentages of the Performance Shares to be paid out upon the
		attainment, in whole or in part, of the performance goals and such other
		Performance Share terms, conditions and restrictions as the Committee deems
		appropriate. The business criteria (to be applied on a Corporation basis,
		business unit basis, individual basis, or any combination thereof) used by the
		Committee in establishing such performance goals shall include return on
		equity, revenues, net revenues, operating income, earnings, return on invested
		capital, return on sales, share price, market share, revenues growth, increase
		in customer base, cost reductions and savings, income before taxes, net income,
		adjusted net income, EBITDA, EBITA, earnings per share, adjusted earnings per
		share, operating margins, stock price, working capital measures, return on
		assets, cash flow measures, market share, stockholder return or economic value
		added, implementation of Corporation policies, negotiations of significant
		corporate transactions, development of long-term business goals or strategic
		plans, or exercise of specific areas of managerial responsibility. Any such
		performance goals may be modified by the Committee, in its sole discretion but
		subject to the requirements of Section 162(m) of the Code, during the course of
		the performance period to take into account any changes in conditions that
		occur (including but not limited to extraordinary non-recurring items, changes
		in tax laws or accounting principles, or changes in corporate structure). To
		the extent any objective performance goals are expressed using any earnings or
		revenue-based measures that require deviations from generally accepted
		accounting principles, such deviations shall be at the discretion of the
		Committee subject to the requirements of Section 162(m) of the Code. The
		performance goals set by the Committee may be expressed on an absolute and/or
		relative basis, may include comparisons with past performance of the
		Corporation (including one or more divisions, if any) and/or the current or
		past performance of other companies. Notwithstanding the foregoing, in the case
		of Performance Shares granted to a Covered Employee, no business criteria other
		than those enumerated herein may be used in establishing the performance goal
		for such Performance Shares. As soon as practicable after the termination of
		the performance period, the Committee shall determine what, if any, Performance
		Shares are payable in accordance with the terms thereof. Delivery of or other
		transfer of ownership of Performance Shares shall occur within the time period
		required to meet the short term deferral exemption or any other applicable
		exemption under Section 409A of the Code. 
	 

	 
		(c) For Covered Employees for
		whom the Committee intends to meet the performance-based exception under
		Section 162(m) of the Code, the measures used in performance goals set under
		the Plan shall be determined in accordance with generally accepted
	 

	 
		 
	 

	 
		 
	 

	 
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		accounting principles
		(“GAAP”) and in a manner consistent with the methods used in the
		Corporation’s Annual Reports on Form 10-K and Quarterly Reports on Form
		10-Q, without regard, however, to any of the following unless otherwise
		determined by the Committee consistent with the requirements of Section
		162(m)(4)(C) of the Code and the regulations thereunder:
	 

	 
		(i) all items of gain, loss or
		expense for the fiscal year that are related to special, unusual or
		non-recurring items, events or circumstances affecting the Corporation or the
		financial statements of the Corporation;
	 

	 
		(ii) all items of gain, loss or
		expense for the fiscal year that are related to (A) the disposal of a business
		or discontinued operations or (B) the operations of any business acquired by
		the Corporation during the fiscal year; and
	 

	 
		(iii) all items of gain, loss
		or expense for the fiscal year that are related to changes in accounting
		principles or to changes in applicable law or regulations.
	 

	 
		To the extent any objective
		performance goals are expressed using any earnings or revenue-based measures
		that require deviations from GAAP, such deviations shall be at the discretion
		of the Committee except that the items in (i) through (iii) above shall be
		disregarded unless determined otherwise by the Committee.
	 

	 
		(d) In the event of a
		participant’s Retirement prior to the expiration of the performance cycle
		established for any Performance Shares he may have been awarded, such
		Performance Shares shall be payable as if the participant were still employed
		on expiration of the performance cycle (base upon attainment of the applicable
		performance goals); provided, however, that the Committee may prorate the
		Performance Shares based upon actual service. If a participant’s
		employment with the Corporation and its Subsidiaries shall be terminated for
		any other reason prior to the expiration of the applicable performance cycle,
		such Performance Shares shall be canceled automatically unless otherwise
		provided by the Committee. Without limiting the generality of the foregoing,
		any unpaid Performance Shares otherwise payable to a terminated participant
		shall be forfeited if such participant at any time engages in Detrimental
		Activity. Notwithstanding the foregoing, in the case of Performance Shares
		granted to Covered Employees, this paragraph 6.4(d) shall not be given effect
		if, as a result thereof, such Performance Shares shall lose the protection
		afforded by Section 162(m) of the Code. 
	 

	 
		(e) Performance Shares are not
		transferable other than by will or by the laws of descent and distribution and
		during a participant’s lifetime payments in respect thereof shall be made
		only to the participant.
	 

	 
		7. Limit on Awards. The following individual award limits apply: (a) no
		more than 200,000 shares of Common Stock may be awarded as Stock Awards (other
		than Restricted Stock Units) to a participant in any Fiscal Year; (b) no more
		than 200,000 shares of Common Stock may be awarded as Restricted Stock Units to
		a participant in any Fiscal Year; (c) no more than 400,000 shares of Common
		Stock may be awarded under Options to a participant in any Fiscal Year; and (d)
		no more than 200,000 shares of Common Stock may be awarded as Performance
		Shares to a participant in any Fiscal Year. Notwithstanding any provision
		contained herein, no participant may be granted under the Plan, during any
		Fiscal Year, Options or other Awards relating to more than 400,000 shares of
		Common Stock, subject to adjustment in accordance with Section 8 hereof. In
		addition to, and without regard to, the limitation in the preceding sentence,
		with respect to Awards that may be settled in cash, the aggregate of all such
		Awards granted to any participant in any Fiscal Year may not provide for
		payment of a cash amount that exceeds the product obtained by multiplying: (i)
		the number of shares of Common Stock set forth in the preceding sentence by
		(ii) the greater of the Market Value at the date of grant or the Market Value
		at the date of settlement of the Award. 
	 

	 
		 
	 

	 
		 
	 

	 
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		8. Adjustments. The number and class of Common Stock subject to each
		outstanding Award, the exercise price, grant price or purchase price, and the
		annual limits on and the aggregate number and class of shares of Common Stock
		for which Awards thereafter may be made shall be proportionately, equitably and
		appropriately adjusted in such manner as the Committee shall determine in order
		to retain the economic value or opportunity to reflect any stock dividend,
		stock split, recapitalization, merger, consolidation, reorganization,
		reclassification, combination, exchange of shares or similar event in which the
		number or class of shares of Common Stock is changed without the receipt or
		payment of consideration by the Corporation. Where an Award being adjusted is
		subject to Section 409A of the Code, the adjustment shall also be implemented
		in a manner so as to not constitute a modification within the meaning of
		Section 409A of the Code. 
	 

	 
		9. General Provisions
	 

	 
		9.1. Compliance With Legal and Exchange
		Requirements. The
		Corporation shall not be obligated to deliver shares of Common Stock upon the
		exercise or settlement of any Award or take other actions under the Plan until
		the Corporation shall have determined that applicable federal and state laws,
		rules and regulations have been complied with and such approvals of any
		regulatory or governmental agency have been obtained and contractual
		obligations to which the Award may be subject have been satisfied. The
		Corporation, in its discretion, may require any participant to make such
		representations and furnish such information as it may consider appropriate in
		connection with the issuance or delivery of shares under the Plan.
	 

	 
		9.2. Awards Granted to Foreign
		Participants. Awards
		granted to a participant who is subject to the laws of a country other than the
		United States of America may contain terms and conditions inconsistent with the
		provisions of the Plan (except those necessary to retain the benefits of
		Section 162(m) of the Code), or may be granted under such supplemental
		documents, as required under such laws. 
	 

	 
		9.3. No Right to Continued
		Employment. Neither the
		Plan nor any action taken hereunder shall be construed as creating any contract
		of employment between the Corporation or any of its Subsidiaries and any
		employee or otherwise giving any employee the right to be retained in the
		employ of the Corporation or any of its Subsidiaries, nor shall it interfere in
		any way with the right of the Corporation or any of its Subsidiaries to
		terminate any participant’s employment at any time.
	 

	 
		9.4. Withholding Taxes. The Corporation shall have the power and
		the right to deduct or withhold for any payments hereunder or other payments
		from the Corporation (including payroll), or require a participant to remit to
		the Corporation, an amount sufficient to satisfy 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. At the
		participant’s election, a participant may have deducted or withheld from
		any payment or delivery of shares of Common Stock to the Corporation any such
		required tax (with any shares so delivered to be valued at Market Value on the
		date such election is delivered to the Corporation).
	 

	 
		9.5. Changes to the Plan and
		Awards. The Board may
		amend, alter, suspend, discontinue or terminate the Plan or the
		Committee’s authority to grant Awards under the Plan without the consent
		of stockholders or participants, except where such approval is required to
		comply with applicable law or regulations or rules under an applicable stock
		exchange or if the Committee determines that such approval would be necessary
		to retain the benefits of Rule 16b-3 or Section 162(m) of the Code and except
		that no change may materially impair the rights of a participant under any
		Award theretofore granted to him without his consent. 
	 

	 
		9.6. No Rights to Awards; No Stockholder
		Rights. Neither the
		establishment of the Plan nor any other action taken now or at any time with
		regard thereto shall be construed as giving any 
	 

	 
		 
	 

	 
		 
	 

	 
		-8-
	 

	 
		 
	 

	 
	 

	 

	 
		person whatsoever any legal or
		equitable right against the Corporation unless such right shall be specifically
		provided for in the Plan. There is no obligation for uniformity of treatment of
		participants and employees under the Plan. No Award shall confer on any
		participant any of the rights of a stockholder of the Corporation unless and
		until shares of Common Stock are duly issued or transferred and delivered to
		the participant in accordance with the terms of the Award.
	 

	 
		9.7. Unfunded Status of Awards. The Plan is intended to constitute an
		“unfunded” plan for incentive compensation. 
	 

	 
		9.8. Nonexclusivity of the Plan. Neither the adoption of the Plan by the
		Board nor its submission to the stockholders of the Corporation for approval
		shall be construed as creating any limitations on the power of the Board to
		adopt such other equity and/or non-equity incentive arrangements as it may deem
		desirable.
	 

	 
		9.9. Binding Effect. The provisions of the Plan shall be binding upon the
		heirs, distributees, executors, administrators and personal representatives of
		any person participating under the Plan. A person claiming any rights under the
		Plan as a beneficiary or otherwise through a participant shall be subject to
		all of the terms and conditions of the Plan and any additional terms and
		conditions as may be imposed by the Committee.
	 

	 
		9.10. No Fractional Shares. No fractional shares of Common Stock
		shall be issued or delivered pursuant to the Plan or any Award. The Committee
		shall determine whether cash, other Awards, or other property shall be issued
		or paid in lieu of such fractional shares or whether such fractional shares or
		any rights thereto shall be forfeited or otherwise eliminated.
	 

	 
		9.11. Compliance with Code Section
		162(m). In the event it is
		determined by the Committee prior to the grant of an Award to a Covered
		Employee that such Award shall constitute “qualified performance-based
		compensation” within the meaning of Code Section 162(m) of the Code, then,
		unless otherwise determined by the Committee, if any provision of the Plan or
		any Award agreement relating to such an Award granted to a Covered Employee
		does not comply or is inconsistent with the requirements of Section 162(m) of
		the Code, such provision shall be construed or deemed amended to the extent
		necessary to conform to such requirements, and no provision shall be deemed to
		confer upon the Committee or any other person discretion to increase the amount
		of compensation otherwise payable to a Covered Employee in connection with any
		such Award upon attainment of the performance objectives to which such Award is
		subject. In order to meet the requirements of Section 162(m) of the Code, the
		Plan must be approved by shareholders every five years.
	 

	 
		9.12. Compliance with Code Section
		409A. All Awards to be
		granted hereunder are intended to comply with the exemptions or deferred
		compensation requirements of Section 409A of the Code, and all provisions of
		the Plan and all Awards granted hereunder must be construed in such a manner as
		to effectuate that intent. Notwithstanding any other provision herein, the
		Committee shall have the authority amend the Plan and any Award without the
		participant’s consent if the Committee determines such amendment is needed
		to comply with Section 409A of the Code.
	 

	 
		9.13. Governing Law. The Plan and all related documents shall be governed
		by, and construed in accordance with, the laws of the State of Delaware (except
		to the extent provisions of federal law may be applicable). If any provision
		hereof shall be held by a court of competent jurisdiction to be invalid and
		unenforceable, the remaining provisions of the Plan shall continue to be fully
		effective.
	 

	 
		9.14. Headings. Headings are given to the sections of the
		Plan solely as a convenience to facilitate reference and neither such headings
		or numbering or paragraphing shall be deemed in any way material or relevant to
		the construction of the Plan or any provision thereof.
	 

	 
		 
	 

	 
		 
	 

	 
		-9-
	 

	 
		 
	 

	 
	 

	 

	 
		9.15. Terminology. In order to shorten and improve the understandability
		of the Plan document by eliminating the repeated use of the phrase “his or
		her”, any masculine terminology herein shall also include the
		feminine.
	 

	 
		9.16. Effective Date; Duration of
		Plan. The Plan shall
		become effective on June 19, 2007 and shall continue indefinitely subject to
		the provisions of Section 9.5. 
	 

	 
		 
	 

	 
		 
	 

	 
		-10-

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