Document:

tto10qdivreinv.htm

    
Exhibit
      4.1

     

    
 

     

    TORTOISE
      CAPITAL RESOURCES CORPORATION

    TERMS
      AND CONDITIONS OF THE DIVIDEND REINVESTMENT PLAN

     

     

    

                    Registered
      holders (“Common Shareholders”) of common shares (the “Common Shares”) of
      Tortoise Capital Resources Corporation (the “Company”) whose Common Shares are
      registered with us or with a brokerage firm that participates in our Dividend
      Reinvestment Plan (the “Plan”) and has coded such holder’s account dividend
      reinvestment will automatically be enrolled (the “Participants”) in the Plan and
      are advised as follows:

    

                    1. THE
      PLAN AGENT. Computershare Trust Company, Inc. (the “Agent”) will act as agent
      for each Participant. The Agent will open an account for each Participant under
      the Plan in the same name in which his or her outstanding Common Shares are
      registered.

    

                    2. CASH
      OPTION. Pursuant to the Company’s Plan, unless a holder of Common Shares
      otherwise elects, all distributions, including dividends, capital gains, or
      return of capital will be automatically reinvested by the Agent in additional
      Common Shares of the Company. Common Shareholders who elect not to participate
      in the Plan will receive all distributions in cash paid by check mailed directly
      to the shareholder of record (or, if the shares are held in street or other
      nominee name then to such nominee) by the Agent, as dividend paying agent.
      Such
      Participants may elect not to participate in the Plan and to receive all
      distributions of dividends and capital gains in cash by sending written
      instructions to the Agent, as dividend paying agent, at the address set forth
      below. Please note that the Plan administrator may use an affiliated broker
      for
      trading activity, relative to the Plan on behalf of Plan
      participants.

     

                    3. SHARE
      ISSUANCES.  The Company intends to use primarily newly-issued Common
      Shares to implement the Plan, whether its shares are trading at a premium or
      at
      a discount to net asset value.  However, the Company reserves the
      right to instruct the Agent to purchase shares in the open-market in connection
      with its obligations under the Plan.  The number of shares to be
      issued to a stockholder shall be determined by dividing the total dollar amount
      of the distribution payable to such stockholder by the market price per share
      of
      the Company’s common stock at the close of regular trading on the New York Stock
      Exchange (“NYSE”) on the distribution payment date.  Market price per
      share on that date shall be the closing price for such shares on the NYSE or,
      if
      no sale is reported for such day, at the average of their reported bid and
      asked
      prices.  If distributions are reinvested in shares purchased on the
      open market, then the number of shares received by a stockholder shall be
      determined by dividing the total dollar amount of the distribution payable
      to
      such stockholder by the weighted average price per share (including brokerage
      commissions and other related costs) for all shares purchased by the Agent
      on
      the open-market in connection with such distribution. Such open-market purchases
      will be made by the Agent as soon as practicable, but in no event more than
      30
      days after the distribution payment date.  Open-market purchases may
      be made on any securities exchange where Common Shares are traded, in the
      over-the-counter market or in negotiated transactions, and may be on such terms
      as to price, delivery and otherwise as the Agent shall determine. Each
      Participant’s uninvested funds held by the Agent will not bear interest. The
      Agent shall have no liability in connection with any inability to purchase
      Common Shares within the time provided, or with the timing of any purchases
      effected. The Agent shall have no responsibility for the value of Common Shares
      acquired. The Agent may commingle Participants’ funds to be used for open-market
      purchases of Company shares.

     

                    4. 
      TAXATION. The automatic reinvestment of distributions does not relieve
      Participants of any federal, state or local taxes which may be payable (or
      required to be withheld on distributions). Participants will receive tax
      information annually for their personal records and to help them prepare their
      federal income tax return. For further information as to tax consequences of
      participation in the Plan, Participants should consult with their own tax
      advisors.

    

                    5. LIABILITY
      OF AGENT. The Agent shall at all times act in good faith and agree to use its
      best efforts within reasonable limits to ensure the accuracy of all services
      performed under this Agreement and to comply with applicable law, but assumes
      no
      responsibility and shall not be liable for loss or damage due to errors unless
      such error is caused by the Agent’s negligence, bad faith, or willful misconduct
      or that of its employees.

    

                   6. RECORDKEEPING.
      The Agent may hold each Participant’s Common Shares acquired pursuant to the
      Plan together with the Common Shares of other Common Shareholders of the Company
      acquired pursuant to the Plan in non-certificated form in the Agent’s name or
      that of the Agent’s nominee. Each Participant will be sent a confirmation by the
      Agent of each acquisition made for his or her account as soon as practicable,
      but in no event later than 60 days, after the date thereof. Upon a
      Participant’s request, the Agent will deliver to the Participant, without
      charge, a certificate or certificates for the full Common Shares. Although
      each
      Participant may from time to time have an undivided fractional interest in
      a
      Common Share of the Company, no certificates for a fractional share will be
      issued. Similarly, Participants may request to sell a portion of the Common
      Shares held by the Agent in their Plan accounts by calling the Agent, writing
      to
      the Agent, or completing and returning the transaction form attached to each
      Plan statement. The Agent will sell such Common Shares through a broker-dealer
      selected by the Agent within 5 business days of receipt of the request. The
      sale
      price will equal the weighted average price of all Common Shares sold through
      the Plan on the day of the sale, less brokerage commissions. Participants should
      note that the Agent is unable to accept instructions to sell on a specific
      date
      or at a specific price. Any share dividends or split shares distributed by
      the
      Company on Common Shares held by the Agent for Participants will be credited
      to
      their accounts. In the event that the Company makes available to its Common
      Shareholders rights to purchase additional Common Shares, the Common Shares
      held
      for each Participant under the Plan will be added to other Common Shares held
      by
      the Participant in calculating the number of rights to be issued to each
      Participant.

    

                    7. PROXY
      MATERIALS. The Agent will forward to each Participant any proxy solicitation
      material. The Agent will vote any Common Shares held for a Participant first
      in
      accordance with the instructions set forth on proxies returned by such
      Participant to the Company, and then with respect to any proxies not returned
      by
      such Participant to the Company, in the same proportion as the Agent votes
      the
      proxies returned by the Participants to the Company.

    

                    8. FEES.
      The Agent’s service fee for handling distributions will be paid by the Company.
      Each Participant will be charged his or her pro rata share of brokerage
      commissions on all open-market purchases. If a Participant elects to have the
      Agent sell part or all of his or her Common Shares and remit the proceeds,
      such
      Participant will be charged his or her pro rata share of brokerage commissions
      on the shares sold, plus a $15 transaction fee.

    

                    9. TERMINATION
      IN THE PLAN. Each registered Participant may terminate his or her account under
      the Plan by notifying the Agent in writing at P.O. Box 43078, Providence, Rhode
      Island 02940-3078, or by calling the Agent at (312-588-4990) or using the
      website: www.computershare.com. Such termination will be effective with respect
      to a particular distribution if the Participant’s notice is received by the
      Agent prior to such distribution record date. The Plan may be terminated by
      the
      Agent or the Company upon notice in writing mailed to each Participant at least
      60 days prior to the effective date of the termination. Upon any
      termination, the Agent will cause a certificate or certificates to be issued
      for
      the full shares held for each Participant under the Plan and cash adjustment
      for
      any fraction of a Common Share at the then current market value of the Common
      Shares to be delivered to him. If preferred, a Participant may request the
      sale
      of all of the Common Shares held by the Agent in his or her Plan account in
      order to terminate participation in the Plan. If any Participant elects in
      advance of such termination to have Agent sell part or all of his shares, Agent
      is authorized to deduct from the proceeds a $15 fee plus the brokerage
      commissions incurred for the transaction. If a Participant has terminated his
      or
      her participation in the Plan but continues to have Common Shares registered
      in
      his or her name, he or she may re-enroll in the Plan at any time by notifying
      the Agent in writing at the address above.

    

                    10. AMENDMENT
      OF THE PLAN. These terms and conditions may be amended by the Agent or the
      Company at any time but, except when necessary or appropriate to comply with
      applicable law or the rules or policies of the Securities and Exchange
      Commission or any other regulatory authority, only by mailing to each
      Participant appropriate written notice at least 30 days prior to the
      effective date thereof. The amendment shall be deemed to be accepted by each
      Participant unless, prior to the effective date thereof, the Agent receives
      notice of the termination of the Participant’s account under the Plan. Any such
      amendment may include an appointment by the Agent of a successor Agent, subject
      to the prior written approval of the successor Agent by the
      Company.

    

                    11. APPLICABLE
      LAW. These terms and conditions shall be governed by the laws of the State
      of
      Delaware.EXHIBIT A

 

 

 

 

ENERGY CONVERSION DEVICES, INC.

ANNUAL INCENTIVE PROGRAM

 

 

Effective July 24, 2007

 

 

 

 

 

 

 

A – i

 

 

 

 

TABLE OF CONTENTS

 

 

	
            Section 1.
 	
            Introduction
 	
             
 
	
             
 	
            1.1
 	
            Purpose
 	
            A – 1
 
	
             
 	
            1.2
 	
            Effective Date
 	
            A – 1
 
	
            Section 2.
 	
            Definitions and Construction
 	
             
 
	
             
 	
            2.1
 	
            Definitions
 	
            A – 1
 
	
             
 	
            2.2
 	
            Gender and Number
 	
            A – 2
 
	
             
 	
            2.3
 	
            Section 162(m) and Section 409A
 	
            A – 2
 
	
            Section 3.
 	
            Eligibility
 	
             
 
	
             
 	
            3.1
 	
            Generally
 	
            A – 2
 
	
             
 	
            3.2
 	
            Award Letter
 	
            A – 3
 
	
            Section 4
 	
            Awards
 	
             
 
	
             
 	
            4.1
 	
            Grant of Awards
 	
            A – 3
 
	
             
 	
            4.2
 	
            Award Amounts
 	
            A – 3
 
	
             
 	
            4.3
 	
            Payment of the Award
 	
            A – 4
 
	
             
 	
            4.4
 	
            Award Adjustments
 	
            A – 5
 
	
             
 	
            4.5
 	
            Termination of Employment
 	
            A – 5
 
	
            Section 5
 	
            Nature of Interest in the Program
 	
             
 
	
             
 	
            5.1
 	
            No Right to Assets
 	
            A – 6
 
	
             
 	
            5.2
 	
            No Right to Transfer Interest
 	
            A – 6
 
	
             
 	
            5.3
 	
            No Employment Rights
 	
            A – 6
 
	
             
 	
            5.4
 	
            Withholding and Tax Liabilities
 	
            A – 6
 
	
             
 	
            5.5
 	
            Recoupment
 	
            A – 6
 
	
            Section 6
 	
            Administration, Arbitration and Modification of Program
 	
             
 
	
             
 	
            6.1
 	
            Program Administrator
 	
            A – 7
 
	
             
 	
            6.2
 	
            Powers of the Administrator
 	
            A – 7
 
	
             
 	
            6.3
 	
            Finality of Committee Determinations
 	
            A – 7
 
	
             
 	
            6.4
 	
            Arbitration
 	
            A – 7
 
	
             
 	
            6.5
 	
            Incapacity
 	
            A – 7
 
	
             
 	
            6.6
 	
            Amendment, Suspension, and Termination
 	
            A – 7
 
	
             
 	
            6.7
 	
            Power to Delegate Authority
 	
            A – 7
 
	
             
 	
            6.8
 	
            Headings
 	
            A – 7
 
	
             
 	
            6.9
 	
            Severability
 	
            A – 8
 
	
             
 	
            6.10
 	
            Governing Law
 	
            A – 8
 
	
             
 	
            6.11
 	
            Complete Statement of Program
 	
            A – 8
 

 

 

 

A – ii

 

SECTION 1.  INTRODUCTION

	
             
 	
            1.1
 	
            Purpose.
 

The purpose of the Energy Conversion Devices, Inc. Annual Incentive Program (the “Program”) is to assist Energy Conversion Devices, Inc. in attracting and retaining highly qualified employees, and to provide incentives for eligible employees to assist in achieving predetermined corporate business objectives.  

	
             
 	
            1.2
 	
            Effective Date.
 

The Program will be in effect from July 24, 2007 (the “Effective Date”) through the first shareholder meeting in 2012, subject to approval by the Company’s shareholders at the 2007 annual meeting.  Although Awards may be granted before the 2007 annual meeting, no amount will be paid under the Program until the Program has been approved by the Company’s shareholders.  Awards granted before the expiration date of the Program will remain outstanding upon the expiration of the Program and will be payable in accordance with the terms of the Program.

SECTION 2.  DEFINITIONS AND CONSTRUCTION

	
             
 	
            2.1
 	
            Definitions.
 

When used in capitalized form in the Program, the following words and phrases have the following meanings, unless the context clearly indicates that a different meaning is intended:

	
             
 	
            (a)
 	
            “Award” means a potential cash benefit payable or cash benefit paid to a person in accordance with the terms and conditions of the Program.
 
	
             
 	
            (b)
 	
            “Board of Directors” means the Board of Directors of the Company.
 
	
             
 	
            (c)
 	
            “Code” means the Internal Revenue Code of 1986, as amended.
 
	
             
 	
            (d)
 	
            “Committee” means a committee appointed by the Board of Directors, which will consist of two or more non-employee directors who qualify as “outside directors” within the meaning of Section 162(m) of the Code or, with respect to Awards granted to Employees other than Covered Executives, such other committee or person as the Board of Directors designates, provided that no individual will have the authority to make determinations regarding that individual’s Awards.  The Committee will initially be the Compensation Committee of the Board of Directors.
 
	
             
 	
            (e)
 	
            “Company” means Energy Conversion Devices, Inc., and any successor to Energy Conversion Devices, Inc.  For purposes of the definition of Employee under subsection (h), employment with the Company includes employment with any corporation, partnership, or other organization that would, if applicable, be aggregated with the Company under sections 414(b) and (c) of the Code.
 
	
             
 	
            (f)
 	
            “Covered Executive” means an individual who is determined by the Committee to be reasonably likely to be a “covered employee” under Section 162(m) as of the end of the Company’s taxable year for which an Award to the individual will be deductible.
 
	
             
 	
            (g)
 	
            “Effective Date” has the meaning provided in Section 1.2.
 
	
             
 	
            (h)
 	
            “Employee” means an employee of the Company.
 
	
             
 	
            (i)
 	
            “Eligible Employee” means, with respect to a Performance Year, an Employee who is designated by the Committee, in its discretion, to receive an Award under 3.
 

 

A – 1

 

	
             
 	
            (j)
 	
            “Performance-Based Compensation”
 means compensation that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations thereunder.
 
	
             
 	
            (k)
 	
            “Performance Objective”
 means the goal or goals identified by the Committee that will result in an Award if the threshold of performance for such goal or goals for the Performance Year is satisfied.
 
	
             
 	
            (l)
 	
            “Performance Year” means the fiscal year beginning July 1 and ending June 30.
 
	
             
 	
            (m)
 	
            “Program”
 means the Energy Conversion Devices, Inc. Annual Incentive Program as set forth in this document.
 
	
             
 	
            (n)
 	
            “Section”
 means a section of this Program document and any subsections of that section.
 
	
             
 	
            (o)
 	
            “Section 162(m)” means section 162(m) of the Code.
 
	
             
 	
            (p)
 	
            “Section 409A” means section 409A of the Code.
 

	
             
 	
            2.2
 	
            Gender and Number.
 

Words used in the masculine gender in the Program are intended to include the feminine and neuter genders, where appropriate.  Words used in the singular form in the Program are intended to include the plural form, where appropriate, and vice versa.

	
             
 	
            2.3
 	
            Section 162(m) and Section 409A.
 

It is the Company’s intent that Awards to Covered Executives will qualify as Performance-Based Compensation.  Accordingly, the Program will be interpreted and administered in a manner consistent with Section 162(m) and the applicable regulations.  If any provision of the Program relating to a Covered Executive does not comply with, or is inconsistent with, the provisions of section 162(m)(4)(C) of the Code, such provision will be construed or deemed amended to the extent necessary to conform to such requirements.

Payments under the Program are intended to be exempt from, or comply with, Section 409A, and the Program will be interpreted to achieve this result.  However, in no event is the Company responsible for any tax or penalty owed by an Eligible Employee with respect to the payments under this Program.

SECTION 3.  ELIGIBILITY

	
             
 	
            3.1
 	
            Generally.
 

The Committee may, in its discretion, designate an Employee as an Eligible Employee for a Performance Year by granting an Award to such Employee for that Performance Year.  Any U.S.-based Employee and select managerial-level, internationally-based Employees may become Eligible Employees.

	
             
 	
            3.2
 	
            Award Letter.  
 

The Committee will inform an Eligible Employee of an Award in an Award letter, which will specify the terms of the Award.  However, in the event of any conflict between the provisions of the Program and any Award letter, the provisions of the Program will govern.  The Committee will provide the Award letter to the Eligible Employee no later than the latest date for establishing the Award, as described in Section 4.1.

 

A – 2

 

SECTION 4.  AWARDS

	
             
 	
            4.1
 	
            Grant of Awards.  
 

(a)      Grants to Covered Executives.  The Committee will grant an Award to an Eligible Employee who is a Covered Executive not later than 90 days after the commencement of the Performance Year and before the earliest date on which the Performance Objective has an outcome that is no longer substantially uncertain.  If a Covered Executive is initially employed by the Company after the beginning of a Performance Year, the Committee may grant an Award to that Covered Executive with respect to a period of service following the Covered Executive’s date of hire, provided that no more than 25% of the relevant service period has elapsed when the Committee grants the Award and the Performance Objective otherwise satisfies the requirements applicable to Covered Executives.  

(b)      Grants to Other Employees.  The Committee will select Employees other than Covered Executives for participation in the Program and will grant Awards to such Employees at such times as the Committee may determine.  

(c)      Terms of Grant.  In granting an Award, the Committee will establish the terms of the Award, including the Performance Objective and the maximum amount that will be paid (subject to the limit in Section 4.2(a)) if the Performance Objective is achieved.  The Committee may establish different payment levels up to such maximum amount based on different levels of achievement under the Performance Objective.

	
             
 	
            4.2
 	
            Award Amounts.
 

(a)      Maximum Amount.  The maximum amount of an Award granted to any one Eligible Employee in respect of a Performance Year will not exceed $2.5 million.  This maximum amount limitation will be measured at the time of settlement of an Award.

(b)      Calculation of Award Amount.  Each Award will represent an amount payable in cash by the Company to the Eligible Employee upon achievement of one or more or a combination of Performance Objectives in a Performance Year, subject to all other terms and conditions of the Program and to such other terms and conditions as may be specified by the Committee.  An Award will be determined by multiplying the Eligible Employee’s target percentage of base salary with respect to a Performance Year by applicable factors and percentages based on the achievement of Performance Objectives, subject to the discretion of the Committee provided in Section 4.3(b).

(c)      Performance Objectives.  Annual Performance Objectives will be based on the performance of the Company, one or more of its subsidiaries or affiliates, one or more of its units or divisions and/or the individual for the Performance Year, as described below.

	
             
  	
            (1)
 	
            The Performance Objective for any Covered Executive will be sufficiently specific that a third party having knowledge of the relevant facts could determine whether the objective is met.  The Committee will use one or more of the following business criteria to establish Performance Objectives for Eligible Employees who are Covered Executives:
 

 

	
            •  
 	
            Sales or increase in net sales;
 
	
            •  
 	
            pretax income before allocation of corporate overhead and bonus;
 
	
            •  
 	
            budget;
 
	
            •  
 	
            earnings per share;
 

 

 

A – 3

 

 

	
            •  
 	
            net income;
 
	
            •  
 	
            margins;
 
	
            •  
 	
            operating cash flow or free cash flow;
 
	
            •  
 	
            attainment of division, group or corporate financial goals;
 
	
            •  
 	
            return on stockholders’ equity;
 
	
            •  
 	
            total stockholders’ return;
 
	
            •  
 	
            return on assets;
 
	
            •  
 	
            return on investment;
 
	
            •  
 	
            attainment of strategic or operational initiatives such as program milestones, safety, quality, cost, technology and efficiency, of the Company, a subsidiary, or a division or unit of the Company or a subsidiary;
 
	
            •  
 	
            appreciation in or maintenance of the price of the common stock or any other publicly-traded securities of the Company;
 
	
            •  
 	
            market share;
 
	
            •  
 	
            gross profits;
 
	
            •  
 	
            earnings before interest and taxes;
 
	
            •  
 	
            earnings before interest, taxes, depreciation and amortization;
 
	
            •  
 	
            economic value-added models;
 
	
            •  
 	
            comparisons with various stock market indices; or
 
	
            •  
 	
            costs, including reductions in costs.
 

 

	
             
  	
            (2)
 	
            In the case of an Eligible Employee who is not a Covered Executive, the Committee may establish Performance Objectives using the criteria listed above in this Section, or the Committee may use any other measure of performance that it will approve in its discretion.
 

	
             
 	
            4.3
 	
            Payment of the Award.
 

(a)      Timing of Payment.  The Company will pay an Eligible Employee the amount of the Award in cash as soon as practicable following the end of the Performance Year but no later than December 31 of the year in which the Performance Year ends, except that if the Company has adopted a deferred compensation plan and the Eligible Employee has made a valid deferral election under such plan, the Award will be paid under the terms of that plan.

(b)      Determining the Amount of Payment.  After the end of each Performance Year, the Committee will determine the amount payable to each Eligible Employee in settlement of the Eligible Employee’s Award for the Performance Year.  The Committee, in its discretion, may reduce the maximum payment established when the Award was granted, or may determine to make no payment 

 

A – 4

 

under the Award.  The Committee, in its discretion, may increase the amount payable under the Award (but not to an amount greater than the limit in Section 4.2(a)) to an Eligible Employee who is not a Covered Executive.  Each Award will be settled individually; the amount paid under one Award will not affect the amount paid under any other Award.

(c)      Committee Certification.  The Committee will certify in writing, in a manner conforming to applicable regulations under Section 162(m) of the Code, prior to the settlement of each Award granted to a Covered Executive, that the Performance Objectives and other material terms of the Award upon which settlement of the Award was conditioned have been satisfied.

	
             
 	
            4.4
 	
            Award Adjustments.
 

The Committee may adjust or modify Awards as described in this Section, provided that the adjustment does not cause an Award of a Covered Executive to fail to satisfy the requirements for Performance-Based Compensation.  Adjustments may be made—

(a)      in recognition of unusual or nonrecurring events affecting the Company or any business unit, or the financial statements or results thereof, or in response to changes in applicable laws (including tax, disclosure, and other laws), regulations, accounting principles, or other circumstances deemed relevant by the Committee;

(b)      with respect to any Eligible Employee whose position or duties with the Company change during a Performance Year; or

(c)      with respect to any person who first becomes an Eligible Employee after the first day of the Performance Year.

	
             
 	
            4.5
 	
            Termination of Employment.
 

If an Eligible Employee ceases to be an Employee prior to the end of a Performance Year for any reason, any Award to such Eligible Employee for such Performance Year will be forfeited, unless otherwise provided in the Eligible Employee’s Award letter.  Notwithstanding the previous sentence, if an Eligible Employee dies, retires (meaning ceases to be an Employee after becoming eligible for unreduced Social Security benefits) or becomes disabled (as determined by the Committee), the Company may, in its discretion, pay a prorated portion of the Award based on the portion of the Performance Year in which the Eligible Employee was an Employee.

SECTION 5.  NATURE OF INTEREST IN THE PROGRAM

	
             
 	
            5.1
 	
            No Right to Assets.  
 

Benefits under the Program will be paid from the Company’s general assets.  Participation in the Program does not create, in favor of any Employee, any right or lien in or against any asset of the Company.  Nothing contained in the Program, and no action taken under its provisions, will create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and an Employee or any other person.  The Company’s promise to pay benefits under the Program will at all times remain unfunded as to each Employee, whose rights under the Program are limited to those of a general and unsecured creditor of the Company.

	
             
 	
            5.2
 	
            No Right to Transfer Interest.  
 

Awards are not transferable by an Eligible Employee except upon a death by will or the laws of descent and distribution, and will not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any such attempted action will be void.

 

A – 5

 

	
             
 	
            5.3
 	
            No Employment Rights.
 

No provisions of the Program and no action taken by the Company, the Board of Directors, or the Committee will give any person any right to be retained in the employ of the Company, and the Company specifically reserves the right and power to dismiss or discharge any Employee for any reason or no reason and at any time.

	
             
 	
            5.4
 	
            Withholding and Tax Liabilities.
 

The amount of any withholdings required to be made by any government or government agency will be deducted from payments under the Program to the extent deemed necessary by the Committee.  In addition, the Eligible Employee will bear the cost of any taxes not withheld on benefits provided under the Program, regardless of whether withholding is required.

	
             
 	
            5.5
 	
            Recoupment.
 

The Company will, to the extent permitted by governing law, in all appropriate cases as determined by the Board of Directors, require, and the Eligible Employee will pay, reimbursement to the Company of the Award where all of the following factors, as determined by the Board of Directors (and whose determination will be conclusive), are present: (a) the Award was attributable, at least in part, to the achievement of certain financial results that were subsequently the subject of a restatement, (b) the Eligible Employee engaged in fraud or intentional misconduct that was a substantial contributing cause to the need for the restatement, and (c) the Eligible Employee would have received less or no Award based upon the restated financial results.  In each such instance, the Eligible Employee will pay to the Company the entire Award, plus a reasonable rate of interest.

SECTION 6.  ADMINISTRATION, ARBITRATION, AND MODIFICATION OF PROGRAM

	
             
 	
            6.1
 	
            Program Administrator.  
 

The Committee will administer the Program.

	
             
 	
            6.2
 	
            Powers of the Administrator.  
 

The Committee’s powers include, but are not limited to, the power to adopt rules consistent with the Program; the power to decide all questions relating to the interpretation of the terms and provisions of the Program; and the power to resolve all other questions arising under the Program (including, without limitation, the power to remedy possible ambiguities, inconsistencies, or omissions by a general rule or particular decision).  The Committee has full discretionary authority to exercise each of the foregoing powers.

	
             
 	
            6.3
 	
            Finality of Committee Determinations.  
 

Determinations by the Committee and any interpretation, rule, or decision adopted by the Committee under the Program or in carrying out or administering the Program will be final and binding for all purposes and upon all interested persons, their heirs, and their personal representatives.

	
             
 	
            6.4
 	
            Arbitration.
 

Any disputes that may arise involving the Program or an Award will be resolved exclusively by final and binding arbitration before the American Arbitration Association.  The award of the arbitrator will be entered in any court of competent jurisdiction.

A – 6

 

	
             
 	
            6.5
 	
            Incapacity.  
 

If the Committee determines that any person entitled to payment under the Program is unable to care for his or her affairs because of illness or accident, any payment due (unless a duly qualified guardian or other legal representative has been appointed) may be paid for the benefit of such person to his or her spouse, parent, brother, sister, or other party deemed by the Committee to have incurred expenses for such person.

	
             
 	
            6.6
 	
            Amendment, Suspension, and Termination.  
 

The Board of Directors has the right by resolution to amend, suspend, or terminate the Program at any time.  Any amendment to the material terms of the Program must also be approved by the Company’s stockholders.

	
             
 	
            6.7
 	
            Power to Delegate Authority.  
 

The Board of Directors and the Committee may, in their sole discretion, delegate to any person or persons all or part of its authority and responsibility under the Program, including, without limitation, the authority to amend the Program, but excluding responsibility for Awards to Covered Executives.

	
             
 	
            6.8
 	
            Headings.  
 

The headings used in this document are for convenience of reference only and may not be given any weight in interpreting any provision of the Program.

	
             
 	
            6.9
 	
            Severability.  
 

If an arbitrator or court of competent jurisdiction determines that any term, provision, or portion of this Program is void, illegal, or unenforceable, the other terms, provisions, and portions of this Program will remain in full force and effect, and the terms, provisions, and portions that are determined to be void, illegal, or unenforceable will either be limited so that they will remain in effect to the extent permissible by law, or such arbitrator or court will substitute, to the extent enforceable, provisions similar thereto or other provisions, so as to provide to the Company, to the fullest extent permitted by applicable law, the benefits intended by this Program.

	
             
 	
            6.10
 	
            Governing Law.  
 

The Program will be construed, administered, and regulated in accordance with the laws of Michigan (excluding any conflicts or choice of law rule or principle), except to the extent that those laws are preempted by federal law.

	
             
 	
            6.11
 	
            Complete Statement of Program.  
 

This Program contains a complete statement of its terms.  An Employee’s right to any benefit of a type provided under the Program will be determined solely in accordance with the terms of the Program.  No other evidence, whether written or oral, will be taken into account in interpreting the provisions of the Program.  Notwithstanding the preceding provisions of this Section, for purposes of determining payments due to an Eligible Employee, this Program will be deemed to include the provisions of any Award letter described in Section 3.2.

 

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