Document:

Sybron Dental Specialties, Inc. 2005 Outside Directors' Stock Option Plan

 Exhibit 10.1 
  
 SYBRON DENTAL SPECIALTIES, INC. 
  
 2005 OUTSIDE DIRECTORS’ STOCK OPTION PLAN 
  
 I. INTRODUCTION 
  
 1.01 Purpose. This plan shall be known as the Sybron Dental Specialties, Inc. 2005 Outside Directors’ Stock Option Plan (the
“Directors’ Plan”). The purpose of the Directors’ Plan is to provide an incentive for Outside Directors of Sybron Dental Specialties, Inc. to improve corporate performance on a long-term basis. It is intended that the
Directors’ Plan and its operation comply with the provisions of Rule 16b-3 under the Securities Exchange Act of 1934 (or any successor rule). If any provision of the Directors’ Plan or any grant hereunder would disqualify the
Directors’ Plan or such grant under, or would not comply with, Rule 16b-3 (or any successor rule), such provision or grant shall be construed or deemed amended to conform to Rule 16b-3. 
  
 1.02 Effective Date. The Directors’ Plan shall be
effective as of February 8, 2005 upon its approval by the stockholders at the 2005 annual meeting of stockholders. 
  
 II. PLAN DEFINITIONS 
  
 2.01 Definitions. For Plan purposes, except where the context clearly indicates otherwise, the following terms shall have the meanings set
forth below: 
  
 (a) “Board”
shall mean the Board of Directors of the Company. 
  
 (b) “Committee” shall have the meaning ascribed to such term in Section 4.01 hereof. 
  
 (c) “Company” shall mean Sybron Dental Specialties, Inc., a Delaware corporation, or any successor thereto as provided in
Section 6.07 hereof. 
  
 (d) “Company
Stock” shall mean the Company’s common stock, par value $.01 per share, and such other stock and securities as may be substituted therefor pursuant to Section 3.02 hereof. 
  
 (e) “Director” shall mean any individual who is a member of the Board. 
  
 (f) “Fair Market Value” means the average
of the highest and lowest quoted selling prices for the Company Stock on the relevant date, or (if there were no sales on such date) the average of the means between the highest and lowest quoted selling prices on the nearest day before and the
nearest day after the relevant date, as reported in The Wall Street Journal or a similar publication selected by the Committee. 
  
 (g) “Grantee” shall mean any person who has been granted an option under the Directors’ Plan. 
  
 (h) “Outside Director” shall mean a
Director who is not also an active full-time employee of the Company or a corporation in which the Company owns, directly or indirectly, a voting stock interest of more than fifty percent (50%). 
  
 III. SHARES SUBJECT TO OPTION 
  
 3.01 Available Shares. The total number of shares of Company
Stock that may be issued under the Directors’ Plan shall not exceed Three Hundred and Fifty Thousand (350,000) shares. Shares subject to and not issued under an option which expires, terminates, or is canceled for any reason under the
Directors’ Plan shall again become available for granting of options. 
  

 1 

 3.02 Changes in Common Stock. If any stock dividend is declared upon the Company Stock, or
if there is any stock split, stock distribution, or other recapitalization of the Company with respect to the Company Stock, resulting in a split or combination or exchange of shares, the aggregate number and kind of shares which may thereafter be
granted under the Directors’ Plan shall be proportionately and appropriately adjusted and the number and kind of shares then subject to options under the Directors’ Plan and the per share option price therefor shall be proportionately and
appropriately adjusted, without any change in the aggregate purchase prices to be paid therefor. 
  
 IV. ADMINISTRATION 
  
 4.01 Administration by the Committee. The Directors’ Plan shall be administered by the Compensation Committee (the “Committee”) of the Board (or any successor committee) which shall have the power, subject to
and within the limits of the express provisions of the Directors’ Plan, to exercise such powers and to perform such acts as are deemed necessary or expedient to promote the best interests of the Company with respect to the Directors’ Plan;
provided, however, that the Committee may not re-price, or cancel and re-grant, any option to reduce the option price. 
  
 V. STOCK OPTIONS 
  
 5.01 Option Agreements. Each option granted under the Directors’ Plan shall be evidenced by a stock option agreement between the
Company and the Grantee which shall contain the terms and conditions required by this Article V, and such other terms and conditions, not inconsistent herewith, as the Committee may deem appropriate in each case. The holder of an option shall not
have any rights as a shareholder with respect to the shares covered by an option until such shares have been delivered to him or her. 
  
 5.02 Option Grant Size and Grant Date. 
  
 (a) Automatic Grants. Upon the first meeting of the Board following the Company’s 2006, 2007, 2008, 2009 and 2010
annual meetings of stockholders, each person then serving the Company as an Outside Director shall automatically be granted a nonqualified stock option to purchase Ten Thousand (10,000) shares, subject to adjustment under Section 3.02 hereof.

  
 (b) Special Rule. If at any
time there are not sufficient available shares under the Directors’ Plan to grant each Outside Director an option to purchase the number of shares provided above, each Outside Director shall receive an option to purchase an equal number of the
remaining available shares, determined by dividing the remaining available shares by the number of Outside Directors. 
  
 5.03 Exercise Price. The price at which each share of Company Stock covered by an option may be purchased shall be one hundred percent
(100%) of the Fair Market Value of the Company Stock on the date the option is granted. 
  
 5.04 Period for Exercise of Options. Each stock option granted under this Plan shall be exercisable immediately upon grant. All rights to exercise an option shall terminate upon the earlier of (a) ten
(10) years from the date the option is granted, or (b) two (2) years from the date the Grantee ceases to be a Director. 
  
 5.05 Method of Exercise. Subject to Section 5.04, each option may be exercised in whole or in part from time to time as specified in the
stock option agreement. Each Grantee may exercise an option by giving written notice of the exercise to the Company, specifying the number of shares to be purchased, accompanied by payment in full of the exercise price therefor. The exercise price
may be paid in cash, by check, or by delivering shares of Company Stock which have been beneficially owned by the Grantee, the Grantee’s spouse, or both of them for a period of at least six months prior to the time of exercise (“Delivered
Stock”) or a combination of cash and Delivered Stock. Delivered Stock shall be valued at its Fair Market Value determined as of the date of exercise of the option. No Grantee shall be under any obligation to exercise any option hereunder.

  

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 VI. GENERAL 
  
 6.01 Nontransferability. No option granted under the Directors’ Plan shall be transferable or assignable except by last will and
testament or the laws of descent and distribution; provided, however, that the Committee may, in its discretion, grant stock options that are transferable to family members of the Grantee or to trusts or partnerships for such family members. The
Committee may also amend outstanding stock options to provide for such transferability. In the event of the Grantee’s death, the Grantee’s beneficiary designated pursuant to Section 6.08 hereof or, in the absence of any such designation,
the personal representative of the Grantee’s estate or the person or persons to whom the option is transferred by will or the laws of descent and distribution may exercise the option in accordance with its terms. 
  
 6.02 General Restriction. Each option shall be subject to the
requirement that if at any time the Board shall determine, in its discretion, that the listing, registration, or qualification of securities upon any securities exchange or under any state or federal law, or the consent or approval of any government
regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such option or the issue or purchase of securities thereunder, such option may not be exercised in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board. 
  
 6.03 Expiration and Termination of the Directors’ Plan. Options may be granted under the Directors’ Plan at any time and from time
to time, prior to September 30, 2010, the date on which the Directors’ Plan will expire, except as to options then outstanding under the Directors’ Plan, which shall remain in effect until they have been exercised or have expired. The
Directors’ Plan may be abandoned or terminated at any time by the Board except with respect to any options then outstanding under the Directors’ Plan. 
  

6.04 Amendment, Modification and Termination. With approval of the Board, at any time and from time to time, the Committee may terminate,
amend, or modify the Directors’ Plan. However, no such amendment, modification, or termination of the Directors’ Plan may be made without the approval of the stockholders of the Company, if such approval is required by the Internal Revenue
Code of 1986, as amended, by the insider trading rules of Section 16 of the Securities Exchange Act of 1934, by any national securities exchange or system on which the Company Stock is then listed or reported, or by a regulatory body having
jurisdiction with respect thereto. No termination, amendment, or modification of the Directors’ Plan shall in any material manner adversely affect any option previously granted under the Directors’ Plan, without the written consent of the
Grantee holding such option. 
  
 Notwithstanding anything to the
contrary in this Plan, neither the Committee nor the Board shall amend the Directors’ Plan to (i) materially increase the benefits occurring to participants under the Directors’ Plan, (ii) materially increase the aggregate number of
securities that may be issued under the Directors’ Plan, or (iii) materially modify the requirements as to eligibility for participation in the Directors’ Plan, without the approval of the Company’s stockholders, when that approval is
required by applicable law, or deemed necessary or advisable by the Committee. 
  
 6.05 Withholding Taxes. The Company shall have the power and the right to deduct or withhold, or require a Grantee to remit to the Company, an amount sufficient to satisfy any federal, state and local
taxes required by law to be withheld with respect to any grant, exercise, or payment made under or as a result of the Directors’ Plan. With respect to tax withholding which may be required upon the exercise of options, Grantees may elect,
subject to the approval of the Committee, to satisfy such withholding requirement, in whole or in part, by having the Company withhold shares of Company Stock having a Fair Market Value on the date the tax is to be determined, equal to the minimum
marginal total tax which could be imposed on the transaction. All elections shall be irrevocable, made in writing, and signed by the Grantee. 
  

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 6.06 Construction. Except as otherwise required by applicable federal laws, the
Directors’ Plan shall be governed by, and construed in accordance with, the laws of the state of the Company’s incorporation. 
  
 6.07 Successors. All obligations of the Company under the Directors’ Plan shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
  
 6.08 Beneficiary Designation. Each Grantee may, from time to time, name any beneficiary or beneficiaries (who
may be named contingently or successively) who shall be entitled to exercise his or her options in accordance with their terms in the event of his or her death before he or she exercises all of his or her outstanding options. Each such designation
shall revoke all prior designations by the same Grantee, shall be in a form prescribed by the Company, and will be effective only when filed by the Grantee in writing with the Human Resource Department of the Company during the Grantee’s
lifetime. 
  

 4Sybron Dental Specialties, Inc. 2005 Long-Term Incentive Plan

 Exhibit 10.2 
  
 SYBRON DENTAL SPECIALTIES, INC. 
  
 2005 LONG-TERM INCENTIVE PLAN 
  

 i 

 SYBRON DENTAL SPECIALTIES, INC. 
  
 2005 LONG-TERM INCENTIVE PLAN 
  

TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	PAGE

	 ARTICLE 1
	  	ESTABLISHMENT, PURPOSE AND DURATION	  	1
	 	  	1.1	  	Establishment of the Plan and Effective Date	  	1
	 	  	1.2	  	Purpose of the Plan	  	1
	 	  	1.3	  	Duration of the Plan	  	1
			
	 ARTICLE 2
	  	DEFINITIONS	  	1
			
	 ARTICLE 3
	  	ADMINISTRATION	  	3
	 	  	3.1	  	The Committee	  	3
	 	  	3.2	  	Authority of the Committee	  	3
	 	  	3.3	  	Decisions Binding	  	3
			
	 ARTICLE 4
	  	SHARES SUBJECT TO THE PLAN	  	3
	 	  	4.1	  	Number of Shares	  	3
	 	  	4.2	  	Lapsed Awards	  	3
	 	  	4.3	  	Adjustments in Authorized Shares	  	3
			
	 ARTICLE 5
	  	ELIGIBILITY AND PARTICIPATION	  	3
	 	  	5.1	  	Eligibility	  	3
	 	  	5.2	  	Actual Participation	  	4
			
	 ARTICLE 6
	  	STOCK OPTIONS	  	4
	 	  	6.1	  	Grant of Options	  	4
	 	  	6.2	  	Award Agreement	  	4
	 	  	6.3	  	Option Price	  	4
	 	  	6.4	  	Duration of Options	  	4
	 	  	6.5	  	Exercise of Options	  	4
	 	  	6.6	  	Payment	  	4
	 	  	6.7	  	Restrictions on Share Transferability	  	4
	 	  	6.8	  	Termination of Employment	  	4
	 	  	6.9	  	Termination for Cause	  	5
	 	  	6.10	  	Non-transferability of Options	  	5
			
	 ARTICLE 7
	  	CHANGE IN CONTROL	  	5
			
	 ARTICLE 8
	  	AMENDMENT, MODIFICATION, AND TERMINATION	  	5
	 	  	8.1	  	Amendment, Modification and Termination	  	5
	 	  	8.2	  	Awards Previously Granted	  	5
			
	 ARTICLE 9
	  	WITHHOLDING	  	5
	 	  	9.1	  	Tax Withholding	  	5
	 	  	9.2	  	Share Withholding	  	5
			
	 ARTICLE 10
	  	BENEFICIARY DESIGNATION	  	6
			
	 ARTICLE 11
	  	MISCELLANEOUS	  	6
	 	  	11.1	  	Employment	  	6
	 	  	11.2	  	Participation	  	6
	 	  	11.3	  	Indemnification	  	6
	 	  	11.4	  	Successors	  	6
	 	  	11.5	  	Gender and Number	  	6
	 	  	11.6	  	Severability	  	6
	 	  	11.7	  	Requirements of Law	  	6
	 	  	11.8	  	Securities Law Compliance	  	6
	 	  	11.9	  	Governing Law	  	6

  

 ii 

 SYBRON DENTAL SPECIALTIES, INC. 
  
 2005 LONG-TERM INCENTIVE PLAN 
  

ARTICLE 1 
 ESTABLISHMENT, PURPOSE
AND DURATION 
  
 1.1 Establishment of the Plan and Effective
Date. Sybron Dental Specialties, Inc., a Delaware corporation (the “Company”), hereby establishes a long-term incentive plan to be known as the “Sybron Dental Specialties, Inc. 2005 Long-Term Incentive Plan” (the
“Plan”). The Plan permits the granting of Nonqualified Stock Options to Employees of the Company. 
  
 The Plan shall be effective as of February 8, 2005 (the “Effective Date”) upon its approval by the stockholders at the 2005 annual meeting of
stockholders. 
  
 1.2 Purpose of the Plan. The purpose of the Plan
is to promote the success, and enhance the value, of the Company by linking the personal interests of Participants to those of Company stockholders, and by providing Participants with an incentive for outstanding performance. 
  
 The Plan is further intended to provide flexibility to the Company in its
ability to motivate, attract, and retain the services of Participants upon whose judgment, interest, and special effort the successful conduct of its operation largely is dependent. 
  
 1.3 Duration of the Plan. The Plan commenced on the Effective Date, as described in Section 1.1 herein, and shall remain in
effect, subject to the right of the Board of Directors to terminate the Plan at any time pursuant to Article 8 herein, until all Shares subject to it shall have been purchased or acquired according to the Plan’s provisions. However, in no event
may an Award be granted under the Plan on or after the tenth (10th) anniversary of the Plan’s Effective Date. 
  
 ARTICLE 2 
 DEFINITIONS 
  
 Whenever used in the Plan, the following terms shall have the meanings set
forth below and, when the meaning is intended, the initial letter of the word is capitalized: 
  
 (a) “Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options. 
  
 (b) “Award Agreement” means an agreement entered into by the Company and each Participant, as described in Section 6.2 herein. 
  
 (c) “Beneficial Owner” shall have the meaning ascribed to such term
in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
  
 (d) “Board” or “Board of Directors” means the Board of Directors of the Company. 
  
 (e) “Cause” means fraud, dishonesty, competition with the Company, unauthorized use of the Company’s trade secrets or confidential
information, or continued gross neglect by the Employee of the duties assigned to him or her by the Board or the Company (if such neglect continues for thirty (30) days after notice by the Board or the Company to the Employee specifying the duties
being neglected by Employee). 
  
 (f) “Change in
Control” of the Company shall be deemed to have occurred if: 
  
 (i) any Person (but excluding the Company or any of its affiliates, a trustee or other fiduciary holding securities under any employee benefit plan of the Company or its affiliates, an underwriter temporarily holding
securities pursuant to an offering of securities or any company owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of the Company) is or becomes the Beneficial Owner, directly or
indirectly (other than where such acquisition occurs in connection with a merger or consolidation where immediately thereafter the pre-merger or pre-consolidation directors of the Company continue to constitute at least a majority of the Board of
Directors of the surviving entity or any parent thereof), of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities, excluding securities acquired directly from the Company
or any of its affiliates; 
  

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 (ii) during any period of two consecutive years (not including any period prior to the
effective date of this Plan), individuals who at the beginning of such period constitute the Board and any new director, whose election to the Board or nomination for election to the Board by the Company’s stockholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the
Board, provided that a director whose initial assumption of office is in connection with an actual or threatened election contest would not be deemed an approved director for purposes of determining whether approved directors have ceased to
constitute a majority of the Board; 
  
 (iii) the
stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation where immediately thereafter the pre-merger or pre-consolidation directors of the Company continue to
constitute at least a majority of the Board of Directors of the surviving entity or any parent thereof, or other than a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person
(subject to the same exclusions as set forth in subsection (i) above) is or becomes the Beneficial Owner, directly or indirectly, of securities in the Company (excluding securities acquired by such person directly from the Company or any of its
affiliates), representing 25% or more of the combined voting power of the Company’s then outstanding securities; or 
  
 (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets. 
  
 (g) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (h) “Committee” means the committee, as specified in Article 3, appointed by the Board to administer the Plan. 
  
 (i) “Company” means Sybron Dental Specialties, Inc., a Delaware corporation, and, with respect to Participants or Employees, any and all
Subsidiaries, or any successor thereto as provided in Section 11.4 herein. 
  
 (j) “Director” means any individual who is a member of the Board of Directors of the Company. 
  
 (k) “Disability” means a permanent and total disability, within the meaning of Code Section 22(e)(3), as determined by the Committee in good
faith, upon receipt of sufficient competent medical advice from one or more individuals, selected by the Committee, who are qualified to give professional medical advice. 
  
 (l) “Employee” means any full-time, nonunion employee of the Company. Directors who are not otherwise employed by
the Company shall not be considered Employees under this Plan. 
  
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (n) “Fair Market Value” means the average of the highest and lowest quoted selling prices for Shares on the relevant date, or (if there were no sales on such date) the weighted average of the means between
the highest and lowest quoted selling prices on the nearest day before and the nearest day after the relevant date, as reported in The Wall Street Journal or a similar publication selected by the Committee. 
  
 (o) “Nonqualified Stock Option” or “NQSO” means an option
to purchase Shares, granted under Article 6 herein, which is not intended to qualify as an “incentive stock option” under Section 422 of the Code. 
  
 (p) “Option” means a Nonqualified Stock Option. 
  
 (q) “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.

  
 (r) “Participant” means an Employee of the Company
who has outstanding an Option granted under the Plan. 
  
 (s)
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Section 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d). 
  
 (t) “Retirement” shall have the meaning ascribed to such term in
the tax-qualified retirement plan of the Company. 
  

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 (u) “Shares” means the shares of common stock of the Company. 
  
 (v) “Subsidiary” means any corporation in which the Company owns
directly, or indirectly through subsidiaries, at least 50 percent of the total combined voting power of all classes of stock, or any other entity (including, but not limited to, partnerships and joint ventures) in which the Company owns at least 50
percent of the combined equity thereof. 
  
 ARTICLE 3

 ADMINISTRATION 
  
 3.1 The Committee. The Plan shall be administered by the Compensation Committee of the Board, or by any other Committee appointed by the Board consisting
of not less than two (2) Directors who are not Employees. The members of the Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board of Directors. 
  
 It is intended that the Committee members shall, at all times, qualify as
“non-employee directors” pursuant to Rule 16b-3 under the Exchange Act and as “outside directors” pursuant to the requirements of Section 162(m) of the Code. However, the failure to so qualify shall not affect the validity of any
Awards made or other actions taken by the Committee in accordance with the provisions of the Plan. If for any reason the Committee does not qualify to administer the Plan, as contemplated by Rule 16b-3 under the Exchange Act or Section 162(m) of the
Code, the Board of Directors may appoint a new Committee so as to comply with Rule 16b-3 and Section 162(m). 
  
 3.2 Authority of the Committee. The Committee shall have full power, except as limited by law or by the Articles of Incorporation or Bylaws of the
Company, and subject to the provisions herein, to determine the size of grants of Awards; to determine the terms and conditions of such Award grants in a manner consistent with the Plan; to construe and interpret the Plan and any agreement or
instrument entered into under the Plan; to establish, amend, or waive rules and regulations for the Plan’s administration; and (subject to the provisions of Article 8 herein) to amend the terms and conditions of any outstanding Award to the
extent such terms and conditions are within the discretion of the Committee as provided in the Plan; provided, however, that the Committee may not re-price, or cancel and re-grant, any Option to reduce the Option Price. Further, the Committee shall
make all other determinations which may be necessary or advisable for the administration of the Plan. As permitted by law, the Committee may delegate its authorities as identified hereunder. 
  
 3.3 Decisions Binding. All determinations and decisions made by the Committee
pursuant to the provisions of the Plan, and all related orders and resolutions of the Board of Directors, shall be final, conclusive, and binding on all persons, including the Company, its stockholders, Employees, Participants, and their estates and
beneficiaries. 
  
 ARTICLE 4 
 SHARES SUBJECT TO THE PLAN 
  
 4.1 Number of Shares. Subject to adjustment as provided in Section 4.3 herein, the total number of Shares available for issuance under the Plan is
4,000,000. These Shares may be either authorized but unissued or reacquired Shares. The maximum number of Shares which may be covered by Awards issued to any Employee may not exceed 1,000,000 Shares during any fiscal year. 
  
 4.2 Lapsed Awards. If any Award granted under the Plan is canceled,
terminates, expires, or lapses for any reason, then, subject to such rules and regulations as may be promulgated by the Committee with respect thereto, any Shares subject to such Award may again be available for the grant of any Award under the
Plan. 
  
 4.3 Adjustments in Authorized Shares. In the event of
any merger, reorganization, consolidation, recapitalization, separation, liquidation, stock dividend, split-up, share combination, or other change in the corporate structure of the Company affecting the Shares, such adjustment shall be made in the
number and class of Shares which may be delivered under the Plan, and in the number and class of and/or price of Shares subject to outstanding Awards under the Plan, as may be determined to be appropriate and equitable by the Committee, in its sole
discretion, to prevent dilution or enlargement of rights; and provided that the number of Shares subject to any Award granted shall always be a whole number. 
  
 ARTICLE 5 
 ELIGIBILITY AND
PARTICIPATION 
  
 5.1 Eligibility. Persons eligible to
participate in the Plan include those Employees who contribute significantly to the management, development and operations of the Company, as determined by the Committee, including Employees who are members of the Board, but excluding Directors who
are not Employees. 
  

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 5.2 Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to time,
select from all eligible Employees, those to whom Awards shall be granted, and shall determine the nature and amount of each Award grant. 
  
 ARTICLE 6 
 STOCK OPTIONS

  
 6.1 Grant of Options. Subject to the terms and provisions
of the Plan, Options may be granted to Employees at any time and from time to time, as shall be determined by the Committee. The Committee shall have discretion in determining the number of Shares subject to Options granted to each Participant.

  
 6.2 Award Agreement. Each Option grant shall be evidenced by
an Award Agreement that shall specify the Option Price, the duration of the Option, the number of Shares to which the Option pertains, and such other provisions as the Committee shall determine. 
  
 6.3 Option Price. The Option Price for each grant of an Option shall be
determined by the Committee; provided that the Option Price shall not be less than 100 percent of the Fair Market Value of the Shares on the date the Option is granted. 
  
 6.4 Duration of Options. Each Option shall expire at such time as the Committee shall determine at the time of grant;
provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary date of its grant. 
  
 6.5 Exercise of Options. Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the
Committee shall in each instance approve, which need not be the same for each grant or for each Participant; provided, however, that except as otherwise determined by the Committee or provided herein, each Option shall not become exercisable until
the fifth anniversary of the date the Option is granted. No Option may be exerciseable later than the tenth anniversary of the date the Option is granted. 
  
 6.6 Payment. Options shall be exercised by the delivery of a written notice of exercise to the Secretary of the Company, setting forth the number of
Shares with respect to which the Option is to be exercised, accompanied by payment in full of the Option Price. 
  
 The Option Price upon exercise of any Option shall be payable to the Company in full either: (a) in cash or its equivalent, or (b) with the
Committee’s consent, by tendering previously acquired Shares having a Fair Market Value at the time of exercise equal to the total Option Price (provided that the Shares which are tendered must have been held by the Participant for at least six
(6) months prior to their tender to satisfy the Option Price), or (c) with the Committee’s consent, by a combination of (a) and (b). 
  
 The Committee also may allow cashless exercise as permitted under Federal Reserve Board’s Regulation T, subject to applicable securities law
restrictions, or by any other means which the Committee determines to be consistent with the Plan’s purpose and applicable law. The proceeds from such a payment shall be added to the general funds of the Company and shall be used for general
corporate purposes. 
  
 As soon as practicable after receipt of a
written notification of exercise and full payment, the Company shall deliver to the Participant, in the Participant’s name, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s). 

 
 6.7 Restrictions on Share Transferability. The Committee shall impose such
restrictions on any Shares acquired pursuant to the exercise of an Option under the Plan as it may deem advisable, including, without limitation, restrictions under applicable Federal securities laws, under the requirements of any stock exchange or
market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 
  
 6.8 Termination of Employment. If the employment of a Participant shall terminate for any reason other than Cause, all Options held by the Participant,
which are not vested as of the effective date of employment termination, immediately shall be forfeited to the Company (and shall once again become available for grant under the Plan). However, the Committee, in its sole discretion, shall have the
right to immediately vest all or any portion of such Options, subject to such terms as the Committee, in its sole discretion, deems appropriate. Further, the Committee, in its sole discretion, shall have the right to extend the maximum exercise
period which may be permitted following employment termination up to but not beyond the scheduled expiration date of the Option. 
  

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 Except as otherwise determined by the Committee, Options which are vested as of the effective date of
employment termination may be exercised by the Participant within the period beginning on the effective date of employment termination and ending: (a) one (1) year following such date in the case of termination by reason of Death, Disability, or
Retirement; and (b) three (3) months following such date in the case of termination for any other reason (and other than for Cause). However, in no event shall the exercise period extend beyond the scheduled expiration date of the Option.

  
 6.9 Termination for Cause. If the employment of a Participant
shall terminate for Cause, all outstanding Options held by the Participant immediately shall be forfeited to the Company, and no additional exercise period shall be allowed, regardless of the vested status of the Options. 
  
 6.10 Non-transferability of Options. No Option granted under the Plan may be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided, however, that the Committee shall have discretion to waive this restriction, in whole or in part,
so long as any such waiver is permitted in a plan exempt from short-swing profit liability pursuant to Rule 16b-3 under the Exchange Act. 
  
 ARTICLE 7 
 CHANGE IN CONTROL

  
 Upon the occurrence of a Change in Control, unless
otherwise specifically prohibited by the terms of Section 11.7 herein, any and all Options granted hereunder shall become immediately exercisable, and shall remain as such for the duration of their term. In addition, subject to Article 8 herein, the
Committee shall have the authority to make any modifications to Awards as determined by the Committee to be appropriate before the effective date of the Change in Control. 
  
 ARTICLE 8 
 AMENDMENT, MODIFICATION, AND TERMINATION 
  
 8.1
Amendment, Modification and Termination. With the approval of the Board, at any time and from time to time, the Committee may terminate, amend, or modify the Plan. However, no such amendment, modification, or termination of the Plan may be made
without the approval of the stockholders of the Company, if such approval is required by the Internal Revenue Code, by the insider trading rules of Section 16 of the Exchange Act, by any national securities exchange or system on which the Shares are
then listed or reported, or by a regulatory body having jurisdiction with respect thereto. 
  
 Notwithstanding anything to the contrary in this Plan, neither the Committee nor the Board shall amend the Plan to (i) materially increase the benefits accrued to participants under the Plan, (ii) materially increase
the aggregate number of securities that may be issued under the Plan or (iii) materially modify the requirements as to eligibility for participation in the Plan, without the approval of the Company’s stockholders, when that approval is required
by applicable law, or deemed necessary or advisable by the Committee. 
  
 8.2 Awards Previously Granted. No termination, amendment, or modification of the Plan shall in any material manner adversely affect any Award previously granted under the Plan, without the written consent of the Participant holding such
Award. 
  
 ARTICLE 9 
 WITHHOLDING 
  
 9.1 Tax 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 Federal, state and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any grant, exercise, lapsing of restrictions, or payment made under or as a result of the Plan.

  
 9.2 Share Withholding. With respect to tax withholding
required upon the exercise of Options, Participants 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 having a Fair Market Value on the date the
tax is to be determined equal to the minimum marginal total tax which could be imposed on the transaction. All elections shall be irrevocable, made in writing and signed by the Participant. 
  

 5 

 ARTICLE 10 
 BENEFICIARY DESIGNATION 
  
 Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) who shall be entitled to exercise his or her vested Options in the event of his or her death
before he or she exercises all vested Options. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with
the Human Resource Department of the Company during the Participant’s lifetime. In the absence of any such designation, vested Options which have not been exercised prior to the Participant’s death may be exercised by the administrator of
the Participant’s estate. 
  
 ARTICLE 11 
 MISCELLANEOUS 
  
 11.1 Employment. Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment at
any time, nor confer upon any Participant any right to continue in the employ of the Company. 
  
 For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Subsidiaries (or between Subsidiaries) shall not be deemed a termination of employment. 
  
 11.2 Participation. No Employee shall have the right to be selected to
receive an Award under the Plan, or, having been so selected, to be selected to receive a future Award. 
  
 11.3 Indemnification. Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the
Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he
or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any
judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own
behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Company may have to indemnify them or hold them harmless. 
  
 11.4 Successors. All obligations of the Company under the Plan shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
  
 11.5 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall
include the singular and the singular shall include the plural. 
  
 11.6 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. 
  
 11.7
Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be
required. 
  
 11.8 Securities Law Compliance. Transactions under
the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. 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. 
  
 11.9
Governing Law. To the extent not preempted by Federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the Company’s state of incorporation. 
  

 6

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