Document:

exv4w1

Exhibit 4.1

NEWFIELD EXPLORATION COMPANY,

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

FIRST SUPPLEMENTAL INDENTURE

dated as of February 19, 2010

to Senior Indenture dated as of February 28, 2001

75/8% Senior Notes due 2011

 

 

     THIS FIRST SUPPLEMENTAL INDENTURE, dated as of February 19, 2010 (this “Supplemental
Indenture”), supplements and amends that certain Indenture dated as of February 28, 2001 (the
“Original Indenture”) between Newfield Exploration Company, a Delaware corporation (the “Company”)
and U.S. Bank National Association (as successor trustee to Wachovia Bank, National Association,
formerly First Union National Bank), a national banking association, as trustee (the “Trustee”).

     WHEREAS, the Company and the original Trustee have executed and delivered the Original
Indenture, and, in accordance with Section 301 of the Original Indenture, established the terms of
a series of Securities issued under the Original Indenture designated as the 75/8% Senior Notes due
2011 (the “Notes”) pursuant to the Officers’ Certificate dated as of February 28, 2001 (the
“Officers’ Certificate,” and together with the Original Indenture, the “Indenture”);

     WHEREAS, on or about February 28, 2001, the Company issued $175,000,000 aggregate principal
amount of Notes, all of which Notes are currently outstanding;

     WHEREAS, Section 902 of the Original Indenture provides that, subject to the terms thereof,
the Company and the Trustee may, with the written consent of the Holders of at least a majority in
aggregate principal amount of the Notes then outstanding, enter into a supplemental indenture for
the purpose of amending the Indenture as it relates to the Notes, including, without limitation,
consents obtained in connection with a tender offer or exchange offer for, or purchase, of the
Notes;

     WHEREAS, the Company has made a tender offer (the “Tender Offer”) to each registered Holder of
Notes to purchase, upon the terms and subject to the conditions set forth in the Offer to Purchase
and Consent Solicitation Statement, dated January 20, 2010, as amended, modified or supplemented
(the “Offer to Purchase”), any and all of such Holder’s outstanding Notes for an amount in cash
specified in the Offer to Purchase (the “Tender Offer Consideration”);

     WHEREAS, in conjunction with the Tender Offer, the Company has also solicited consents from
the Holders for certain proposed amendments (the “Proposed Amendments”) to the Indenture as it
relates to the Notes, which Proposed Amendments are contained in this Supplemental Indenture;

     WHEREAS, (1) the Company has received the consent of the Holders of more than a majority in
aggregate principal amount of the outstanding Notes for the Proposed Amendments, all as certified
by an Officers’ Certificate delivered to the Trustee simultaneously with the execution and delivery
of this Supplemental Indenture, (2) the Company has delivered to the Trustee simultaneously with
the execution and delivery of this Supplemental Indenture an Opinion of Counsel relating to this
Supplemental Indenture as contemplated by Section 102 of the Original Indenture and (3) the Company
has satisfied all other conditions required under the Original Indenture to enable the Company and
the Trustee to enter into this Supplemental Indenture.

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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 the Notes, as
follows:

ARTICLE I

AMENDMENTS TO THE ORIGINAL INDENTURE

The Original Indenture is hereby amended with respect to the Notes as follows:

     Section 1.1 Section 704 of the Original Indenture is hereby eliminated in its entirety and
replaced with the words: “Section 704, INTENTIONALLY OMITTED.”

     Section 1.2 Section 801 of the Original Indenture is hereby eliminated in its entirety and
replaced with the words: “Section 801, INTENTIONALLY OMITTED.”

     Section 1.3 Section 802 of the Original Indenture is hereby eliminated in its entirety and
replaced with the words: “Section 802, INTENTIONALLY OMITTED.”

     Section 1.4 Section 1006 of the Original Indenture is hereby eliminated in its entirety and
replaced with the words: “Section 1006, INTENTIONALLY OMITTED.”

     Section 1.5 Section 1007 of the Original Indenture is hereby eliminated in its entirety and
replaced with the words: “Section 1007, INTENTIONALLY OMITTED.”

     Section 1.6 Notwithstanding any provision in the Original Indenture to the contrary, all
definitions set forth in Section 101 of the Original Indenture that relate to defined terms used
solely in covenants or sections deleted hereby shall be deleted in their entirety, and all
references to sections of the Original Indenture that are used exclusively in the text of the
Original Indenture that are being otherwise eliminated by this Supplemental Indenture shall be
deleted in their entirety.

ARTICLE II

AMENDMENTS TO THE OFFICERS’ CERTIFICATE

The Officers’ Certificate is hereby amended with respect to the Notes as follows:

     Section 2.1 Section 10 of the Officers’ Certificate is hereby eliminated in its entirety and
replaced with the words: “Section 10, INTENTIONALLY OMITTED.”

     Section 2.2 Section 11 of the Officers’ Certificate is hereby eliminated in its entirety and
replaced with the words: “Section 11, INTENTIONALLY OMITTED.”

     Section 2.3 Section 12 of the Officers’ Certificate is hereby eliminated in its entirety and
replaced with the words: “Section 12, INTENTIONALLY OMITTED.”

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     Section 2.4 Section 13 of the Officers’ Certificate is hereby eliminated in its entirety and
replaced with the words: “Section 13, INTENTIONALLY OMITTED.”

     Section 2.5 Notwithstanding any provision in the Officers’ Certificate to the contrary, all
definitions set forth in the Officers’ Certificate that relate to defined terms used solely in
covenants or sections deleted hereby shall be deleted in their entirety and all references to
sections of the Officers’ Certificate that are used exclusively in the text of the Officers’
Certificate that are being otherwise eliminated by this Supplemental Indenture shall be deleted in
their entirety.

ARTICLE III

MISCELLANEOUS PROVISIONS

     Section 3.1 Defined Terms. For all purposes of this Supplemental Indenture, except as
otherwise defined or unless the context otherwise requires, terms used in capitalized form in this
Supplemental Indenture and defined in the Indenture have the meanings specified in the Indenture.

     Section 3.2 Indenture. Except as amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms shall remain in full force and effect. This Supplemental
Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore
or hereafter authenticated and delivered under the Indenture shall be bound hereby and all terms
and conditions of both shall be read together as though they constitute a single instrument, except
that in the case of conflict the provisions of this Supplemental Indenture shall control.

     Section 3.3 Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     Section 3.4 Successors and Assigns. All agreements of the Company in this
Supplemental Indenture shall bind its successors and assigns. All agreements of the Trustee in
this Supplemental Indenture shall bind its successors.

     Section 3.5 Duplicate Originals. All parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them together shall
represent the same agreement. It is the express intent of the parties to be bound by the exchange
of signatures on this Supplemental Indenture via telecopy or other form of electronic transmission.

     Section 3.6 Severability. In case any one or more of the provisions in this
Supplemental Indenture 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.

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     Section 3.7 Effectiveness. The Original Indenture and Officers’ Certificate, as
amended with respect to the Notes by this Supplemental Indenture, are ratified and confirmed and
all terms thereof shall remain in full force and effect. This Supplemental Indenture shall not be
deemed to modify any provisions of the Original Indenture or the Officers’ Certificate with respect
to any Security other than the Notes.

     The Proposed Amendments effected by this Supplemental Indenture shall take effect on the date
hereof, provided that each of the parties hereto shall have executed and delivered this
Supplemental Indenture; provided, however, that the Proposed Amendments shall be operative only
upon, and simultaneously with, and shall have no force and effect prior to, the Company’s
notification to the Trustee and the Depositary of its acceptance for purchase of at least a
majority in aggregate principal amount of the Notes then outstanding in accordance with the terms
of the Tender Offer.

     Section 3.8 Counterparts. This Supplemental Indenture may be executed in any number
of counterparts, each of which shall be an original but such counterparts shall together constitute
but one and the same instrument.

     Section 3.9 Supplemental Indenture Controls. In the event there is any conflict or
inconsistency between the Indenture and this Supplemental Indenture, the provisions of this
Supplemental Indenture shall control.

     Section 3.10 Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction thereof.

[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 first above written.

	 	 	 	 	 
	 	NEWFIELD EXPLORATION COMPANY

 	 
	 	By:  	/s/ Terry W. Rathert
 	 
	 	 	Name:  	Terry W. Rathert 	 
	 	 	Title:  	Executive Vice President and Chief 
Financial
Officer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	/s/ Steven A. Finklea
 	 
	 	 	Name:  	Steven A. Finklea 	 
	 	 	Title:  	Vice President 	 

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EXHIBIT
10.22

Final as amended
through December 16, 2009

TIME WARNER INC.

2006 STOCK INCENTIVE PLAN

1. Purpose of the Plan

          The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining
employees, directors and advisors and to motivate such employees, directors and advisors to exert
their best efforts on behalf of the Company and its Affiliates by providing incentives through the
granting of Awards. The Company expects that it will benefit from the added interest which such
employees, directors and advisors will have in the welfare of the Company as a result of their
proprietary interest in the Company’s success.

2. Definitions

          The following capitalized terms used in the Plan have the respective meanings set forth in
this Section:

	 	(a)	 	“Act” means The Securities Exchange Act of 1934, as
amended, or any successor thereto.
	 
	 	(b)	 	“Affiliate” means any entity that is consolidated with
the Company for financial reporting purposes or any other entity designated by
the Board in which the Company or an Affiliate has a direct or indirect equity
interest of at least twenty percent (20%), measured by reference to vote or
value.
	 
	 	(c)	 	“Award” means an Option, Stock Appreciation Right,
Restricted Stock or Other Stock-Based Award granted pursuant to the Plan.
	 
	 	(d)	 	“Board” means the Board of Directors of the Company.
	 
	 	(e)	 	“Change in Control” means the occurrence of any of the
following events:

          (i) any “Person” within the meaning of Section 13(d)(3) or 14(d)(2) of
the Act (other than the Company or any company owned, directly or
indirectly, by the shareholders of the Company in substantially the same
proportions as their ownership of stock of the Company) becomes the
“Beneficial Owner” within the meaning of Rule 13d-3 promulgated under the
Act of 30% or more of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the election of
directors; excluding, however, any circumstance in which
such beneficial ownership resulted from any acquisition by an employee
benefit plan (or related trust) sponsored or maintained by the Company or by
any

 

 

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corporation controlling, controlled by, or under common control with,
the Company;

          (ii) a change in the composition of the Board since the Effective Date,
such that the individuals who, as of such date, constituted the Board (the
“Incumbent Board”) cease for any reason to constitute at least a
majority of such Board; provided that any individual who becomes a
director of the Company subsequent to the Effective Date whose election, or
nomination for election by the Company’s stockholders, was approved by the
vote of at least a majority of the directors then comprising the Incumbent
Board shall be deemed a member of the Incumbent Board; and provided
further, that any individual who was initially elected as a director of
the Company as a result of an actual or threatened election contest, as such
terms are used in Rule 14a-12 of Regulation 14A promulgated under the Act,
or any other actual or threatened solicitation of proxies or consents by or
on behalf of any person or Entity other than the Board shall not be deemed a
member of the Incumbent Board;

          (iii) a reorganization, recapitalization, merger or consolidation (a
“Corporate Transaction”) involving the Company, unless securities
representing 60% or more of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors of the Company or the corporation resulting from such Corporate
Transaction (or the parent of such corporation) are held subsequent to such
transaction by the person or persons who were the beneficial holders of the
outstanding voting securities entitled to vote generally in the election of
directors of the Company immediately prior to such Corporate Transaction, in
substantially the same proportions as their ownership immediately prior to
such Corporate Transaction; or

          (iv) the sale, transfer or other disposition of all or substantially
all of the assets of the Company.

	 	(f)	 	“Code” means The Internal Revenue Code of 1986, as
amended, or any successor thereto.
	 
	 	(g)	 	“Committee” means the Compensation and Human
Development Committee of the Board or its successor, or such other committee of
the Board to which the Board has delegated power to act under or pursuant to
the provisions of the Plan or a subcommittee of the Compensation and Human
Development Committee (or such other committee) established by the Compensation
and Human Development Committee or such other committee.
	 
	 	(h)	 	“Company” means Time Warner Inc., a Delaware
corporation.

 

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	 	(i)	 	“Effective Date” means the date the Board approved the
Plan (March 23, 2006).
	 
	 	(j)	 	“Employment” means (i) a Participant’s employment if
the Participant is an employee of the Company or any of its Affiliates and (ii)
a Participant’s services as a non-employee director, if the Participant is a
non-employee member of the Board or the board of directors of an Affiliate;
provided, however that unless otherwise determined by the
Committee, a change in a Participant’s status from employee to non-employee
(other than a director of the Company or an Affiliate) shall constitute a
termination of employment hereunder.
	 
	 	(k)	 	“Fair Market Value” means, on a given date, (i) if
there should be a public market for the Shares on such date, (x) prior to
October 1, 2008, the average of the high and low prices of the Shares on the
New York Stock Exchange, or, if the Shares are not listed or admitted on any
national securities exchange, the average of the per Share closing bid price
and per Share closing asked price on such date as quoted on the National
Association of Securities Dealers Automated Quotation System (or such market in
which such prices are regularly quoted) (the “NASDAQ”), or, if no sale of
Shares shall have been reported on the New York Stock Exchange or quoted on the
NASDAQ on such date, then the immediately preceding date on which sales of the
Shares have been so reported or quoted shall be used, and (y) on and after
October 1, 2008, the closing sale price of the Shares on the New York Stock
Exchange Composite Tape, or, if the Shares are not listed or admitted on any
national securities exchange, the average of the per Share closing bid price
and per Share closing asked price on such date as quoted on the National
Association of Securities Dealers Automated Quotation System (or such market in
which such prices are regularly quoted) (the “NASDAQ”), or, if no sale of
Shares shall have been reported on the New York Stock Exchange Composite Tape
or quoted on the NASDAQ on such date, then the immediately preceding date on
which sales of the Shares have been so reported or quoted shall be used, and
(ii) if there should not be a public market for the Shares on such date, the
Fair Market Value shall be the value established by the Committee in good
faith.
	 
	 	(l)	 	“ISO” means an Option that is also an incentive stock
option granted pursuant to Section 6(d).
	 
	 	(m)	 	“Option” means a stock option granted pursuant to
Section 6.
	 
	 	(n)	 	“Option Price” means the price for which a Share can be
purchased upon exercise of an Option, as determined pursuant to Section 6(a).
	 
	 	(o)	 	“Other Stock-Based Awards” means awards granted
pursuant to Section 9.

 

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	 	(p)	 	“Participant” means an employee, prospective employee,
director or advisor of the Company or an Affiliate who is selected by the
Committee to participate in the Plan.
	 
	 	(q)	 	“Performance-Based Awards” means certain Other
Stock-Based Awards granted pursuant to Section 9(b).
	 
	 	(r)	 	“Plan” means the Time Warner Inc. 2006 Stock Incentive
Plan, as amended from time to time.
	 
	 	(s)	 	“Restricted Stock” means any Share granted under
Section 8.
	 
	 	(t)	 	“Shares” means shares of common stock of the Company,
$.01 par value per share.
	 
	 	(u)	 	“Stock Appreciation Right” means a stock appreciation
right granted pursuant to Section 7.
	 
	 	(v)	 	“Subsidiary” means a subsidiary corporation, as defined
in Section 424(f) of the Code (or any successor section thereto), of the
Company.

3. Shares Subject to the Plan

          The total number of Shares which may be issued under the Plan is 72,213,882, of which no more
than 30% may be issued in the form of Restricted Stock or Other Stock-Based Awards payable in
Shares. The maximum aggregate number of Shares with respect to which Awards may be granted during
a calendar year, net of any Shares which are subject to Awards (or portions thereof) which, during
such year, terminate or lapse without payment of consideration, shall be equal to 1.5% of the
number of Shares outstanding on December 31 of the preceding calendar year. The maximum number of
Shares with respect to which Awards may be granted during a calendar year to any Participant shall
be 962,850; provided that the maximum number of Shares that may be awarded in the form of
Restricted Stock or Other Stock-Based Awards payable in Shares during any calendar year to any
Participant shall be 288,855. The number of Shares available for issuance under the Plan shall be
reduced by the full number of Shares covered by Awards granted under the Plan (including, without
limitation, the full number of Shares covered by any Stock Appreciation Right, regardless of
whether any such Stock Appreciation Right or other Award covering Shares under the Plan is
ultimately settled in cash or by delivery of Shares); provided, however, that the number of
Shares covered by Awards (or portions thereof) that are forfeited or that otherwise terminate or
lapse without the payment of consideration in respect thereof shall again become available for
issuance under the Plan; and provided further that any Shares that are forfeited after the
actual issuance of such Shares to a Participant under the Plan shall not become available for
re-issuance under the Plan.

4. Administration

	 	(a)	 	The Plan shall be administered by the Committee, which may
delegate its duties and powers in whole or in part to any subcommittee thereof
consisting solely of at least two individuals who are intended to qualify as

 

5

	 	 	 	“independent directors” within the meaning of the New York Stock Exchange
listed company rules, “Non-Employee Directors” within the meaning of Rule
16b-3 under the Act (or any successor rule thereto) and, to the extent
required by Section 162(m) of the Code (or any successor section thereto),
“outside directors” within the meaning thereof. In addition, the Committee
may delegate the authority to grant Awards under the Plan to any employee or
group of employees of the Company or an Affiliate; provided that
such grants are consistent with guidelines established by the Committee from
time to time.
	 
	 	(b)	 	The Committee shall have the full power and authority to make,
and establish the terms and conditions of, any Award to any person eligible to
be a Participant, consistent with the provisions of the Plan and to waive any
such terms and conditions at any time (including, without limitation,
accelerating or waiving any vesting conditions). Awards may, in the discretion
of the Committee, be made under the Plan in assumption of, or in substitution
for, outstanding awards previously granted by the Company or its affiliates or
a company acquired by the Company or with which the Company combines. The
number of Shares underlying such substitute awards shall be counted against the
aggregate number of Shares available for Awards under the Plan.
	 
	 	(c)	 	The Committee is authorized to interpret the Plan, to
establish, amend and rescind any rules and regulations relating to the Plan,
and to make any other determinations that it deems necessary or desirable for
the administration of the Plan, and may delegate such authority, as it deems
appropriate. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan in the manner and to the extent the
Committee deems necessary or desirable. Any decision of the Committee in the
interpretation and administration of the Plan, as described herein, shall lie
within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned (including, but not limited to, Participants
and their beneficiaries or successors).
	 
	 	(d)	 	The Committee shall require payment of any amount it may
determine to be necessary to withhold for federal, state, local or other taxes
as a result of the exercise, grant or vesting of an Award. Unless the
Committee specifies otherwise, the Participant may elect to pay a portion or
all of such withholding taxes by (a) delivery of Shares or (b) having Shares
withheld by the Company with a Fair Market Value equal to the minimum statutory
withholding rate from any Shares that would have otherwise been received by the
Participant.

5. Limitations

	 	(a)	 	No Award may be granted under the Plan after the fifth
anniversary of the meeting of shareholders of the Company at which the Plan is
approved,

 

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	 	 	 	but Awards granted prior to such fifth anniversary may extend beyond that
date.
	 
	 	(b)	 	No Option or Stock Appreciation Right, once granted hereunder,
may be repriced.
	 
	 	(c)	 	With respect to any Awards granted to a Participant who is a
non-employee member of the Board at the time of grant, such Awards shall be
made pursuant to formulas established by the Board in advance of such grant.
Any such Awards shall be made at the time such a Participant first becomes a
member of the Board and, thereafter, on an annual basis at or following the
annual meeting of stockholders. Such formulas may include any one or more of
the following: (i) a fixed number of Options or Stock Appreciation Rights, (ii)
a fixed number of Shares of Restricted Stock or a number of Shares of
Restricted Stock determined by reference to a fixed dollar amount (calculated
based on the Fair Market Value of a Share on the date of grant), and (iii)
Other Stock-Based Awards determined either by reference to a fixed number of
Shares or to a fixed dollar amount (calculated based on the Fair Market Value
of a Share on the date of grant).

6. Terms and Conditions of Options

          Options granted under the Plan shall be, as determined by the Committee, nonqualified or
incentive stock options for federal income tax purposes, as evidenced by the related Award
agreements, and shall be subject to the foregoing and the following terms and conditions and to
such other terms and conditions, not inconsistent therewith, as the Committee shall determine, and
as evidenced by the related Award agreement:

	 	(a)	 	Option Price. The Option Price per Share shall be
determined by the Committee, but shall not be less than 100% of the Fair Market
Value of a Share on the date an Option is granted.
	 
	 	(b)	 	Exercisability. Options granted under the Plan shall
be exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted, except as may be provided
pursuant to Section 15.
	 
	 	(c)	 	Exercise of Options. Except as otherwise provided in
the Plan or in an Award agreement, an Option may be exercised for all, or from
time to time any part, of the Shares for which it is then exercisable. For
purposes of this Section 6, the exercise date of an Option shall be the date a
notice of exercise is received by the Company, together with provision for
payment of the full purchase price in accordance with this Section 6(c). The
purchase price for the Shares as to which an Option is exercised shall be paid
to the Company, as designated by the Committee, pursuant to one

 

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	 	 	 	or more of the following methods: (i) in cash or its equivalent (e.g., by
check); (ii) in Shares having a Fair Market Value equal to the aggregate
Option Price for the Shares being purchased and satisfying such other
requirements as may be imposed by the Committee; provided that such
Shares have been held by the Participant for no less than six months (or
such other period as established from time to time by the Committee in order
to avoid adverse accounting treatment applying generally accepted accounting
principles); (iii) partly in cash and partly in such Shares or (iv) if there
is a public market for the Shares at such time, through the delivery of
irrevocable instructions to a broker to sell Shares obtained upon the
exercise of the Option and to deliver promptly to the Company an amount out
of the proceeds of such Sale equal to the aggregate Option Price for the
Shares being purchased. No Participant shall have any rights to dividends
or other rights of a stockholder with respect to Shares subject to an Option
until the Shares are issued to the Participant.
	 
	 	(d)	 	ISOs. The Committee may grant Options under the Plan
that are intended to be ISOs. Such ISOs shall comply with the requirements of
Section 422 of the Code (or any successor section thereto). No ISO may be
granted to any Participant who at the time of such grant, owns more than ten
percent of the total combined voting power of all classes of stock of the
Company or of any Subsidiary, unless (i) the Option Price for such ISO is at
least 110% of the Fair Market Value of a Share on the date the ISO is granted
and (ii) the date on which such ISO terminates is a date not later than the day
preceding the fifth anniversary of the date on which the ISO is granted. Any
Participant who disposes of Shares acquired upon the exercise of an ISO either
(i) within two years after the date of grant of such ISO or (ii) within one
year after the transfer of such Shares to the Participant, shall notify the
Company of such disposition and of the amount realized upon such disposition.
All Options granted under the Plan are intended to be nonqualified stock
options, unless the applicable Award agreement expressly states that the Option
is intended to be an ISO. If an Option is intended to be an ISO, and if for
any reason such Option (or portion thereof) shall not qualify as an ISO, then,
to the extent of such nonqualification, such Option (or portion thereof) shall
be regarded as a nonqualified stock option granted under the Plan;
provided that such Option (or portion thereof) otherwise
complies with the Plan’s requirements relating to nonqualified stock options.
In no event shall any member of the Committee, the Company or any of its
Affiliates (or their respective employees, officers or directors) have any
liability to any Participant (or any other person) due to the failure of an
Option to qualify for any reason as an ISO.
	 
	 	(e)	 	Attestation. Wherever in this Plan or any agreement
evidencing an Award a Participant is permitted to pay the exercise price of an
Option or taxes relating to the exercise of an Option by delivering Shares, the
Participant may, subject to procedures satisfactory to the Committee, satisfy
such

 

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	 	 	 	delivery requirement by presenting proof of beneficial ownership of such
Shares, in which case the Company shall treat the Option as exercised
without further payment and/or shall withhold such number of Shares from the
Shares acquired by the exercise of the Option, as appropriate.

7. Terms and Conditions of Stock Appreciation Rights

	 	(a)	 	Grants. The Committee may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation Right
in connection with an Option, or a portion thereof. A Stock Appreciation Right
granted pursuant to clause (ii) of the preceding sentence (A) may be granted at
the time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of Shares
covered by an Option (or such lesser number of Shares as the Committee may
determine) and (C) shall be subject to the same terms and conditions as such
Option except for such additional limitations as are contemplated by this
Section 7 (or such additional limitations as may be included in an Award
agreement).
	 
	 	(b)	 	Terms. The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the Fair Market Value of a Share on the
date the Stock Appreciation Right is granted; provided,
however, that notwithstanding the foregoing in the case of a Stock
Appreciation Right granted in conjunction with an Option, or a portion thereof,
the exercise price may not be less than the Option Price of the related Option.
Each Stock Appreciation Right granted independent of an Option shall entitle a
Participant upon exercise to an amount equal to (i) the excess of (A) the Fair
Market Value on the exercise date of one Share over (B) the exercise price per
Share, times (ii) the number of Shares covered by the Stock Appreciation Right.
Each Stock Appreciation Right granted in conjunction with an Option, or a
portion thereof, shall entitle a Participant to surrender to the Company the
unexercised Option, or any portion thereof, and to receive from the Company in
exchange therefor an amount equal to (i) the excess of (A) the Fair Market
Value on the exercise date of one Share over (B) the Option Price per Share,
times (ii) the number of Shares covered by the Option, or portion thereof,
which is surrendered. Payment shall be made in Shares or in cash, or partly in
Shares and partly in cash (any such Shares valued at such Fair Market Value),
all as shall be determined by the Committee. Stock Appreciation Rights may be
exercised from time to time upon actual receipt by the Company of written
notice of exercise stating the number of Shares with respect to which the Stock
Appreciation Right is being exercised. The date a notice of exercise is
received by the Company shall be the exercise date. No fractional Shares will
be issued in payment for Stock Appreciation Rights, but instead cash will be
paid for a fraction or, if the Committee should so determine, the number of
Shares will be rounded downward to the next

 

9

	 	 	 	whole Share. No Participant shall have any rights to dividends or other
rights of a stockholder with respect to Shares covered by Stock Appreciation
Rights until the Shares are issued to the Participant.
	 
	 	(c)	 	Limitations. The Committee may impose, in its
discretion, such conditions upon the exercisability of Stock Appreciation
Rights as it may deem fit, but in no event shall a Stock Appreciation Right be
exercisable more than ten years after the date it is granted, except as may be
provided pursuant to Section 15.

8. Restricted Stock

	 	(a)	 	Grant. Subject to the provisions of the Plan, the
Committee shall determine the number of Shares of Restricted Stock to be
granted to each Participant, the duration of the period during which, and the
conditions, if any, under which, the Restricted Stock may be forfeited to the
Company, and the other terms and conditions of such Awards; provided
that not less than 95% of the Shares of Restricted Stock shall remain
subject to forfeiture for at least three years after the date of grant, subject
to earlier termination of such potential for forfeiture in whole or in part in
the event of a Change in Control or the death, disability or other termination
of the Participant’s employment.
	 
	 	(b)	 	Transfer Restrictions. Shares of Restricted Stock may
not be sold, assigned, transferred, pledged or otherwise encumbered, except as
provided in the Plan or the applicable Award agreement. Certificates, or other
evidence of ownership, issued in respect of Shares of Restricted Stock shall
be registered in the name of the Participant and deposited by such Participant,
together with a stock power endorsed in blank, with the Company. After the
lapse of the restrictions applicable to such Shares of Restricted Stock, the
Company shall deliver such certificates, or other evidence of ownership, to the
Participant or the Participant’s legal representative.
	 
	 	(c)	 	Dividends. Dividends paid on any Shares of Restricted
Stock may be paid directly to the Participant, withheld by the Company subject
to vesting of the Restricted Shares pursuant to the terms of the applicable
Award agreement, or may be reinvested in additional Shares of Restricted Stock,
as determined by the Committee in its sole discretion.
	 
	 	(d)	 	Performance-Based Grants. Notwithstanding anything to
the contrary herein, certain Shares of Restricted Stock granted under this
Section 8 may, at the discretion of the Committee, be granted in a manner which
is intended to be deductible by the Company under Section 162(m) of the Code
(or any successor section thereto). The restrictions applicable to such
Restricted Stock shall lapse based wholly or partially on the attainment of
written performance goals approved by the Committee for a

 

10

	 	 	 	performance period established by the Committee (i) while the outcome for
that performance period is substantially uncertain and (ii) no more than
90 days after the commencement of the performance period to which the
performance goal relates or, if less, the number of days which is equal to
25 percent of the relevant performance period. The performance goals, which
must be objective, shall be based upon one or more of the criteria set forth
in Section 9(b) below. The Committee shall determine in its discretion
whether, with respect to a performance period, the applicable performance
goals have been met with respect to a given Participant and, if they have,
shall so certify prior to the release of the restrictions on the Shares.

 

11

9. Other Stock-Based Awards

	 	(a)	 	Generally. The Committee, in its sole discretion, may
grant or sell Awards of Shares and Awards that are valued in whole or in part
by reference to, or are otherwise based on the Fair Market Value of, Shares
(“Other Stock-Based Awards”). Such Other Stock-Based Awards shall be in such
form, and dependent on such conditions, as the Committee shall determine,
including, without limitation, the right to receive, or vest with respect to,
one or more Shares (or the equivalent cash value of such Shares) upon the
completion of a specified period of service, the occurrence of an event and/or
the attainment of performance objectives. Other Stock-Based Awards may be
granted alone or in addition to any other Awards granted under the Plan.
Subject to the provisions of the Plan, the Committee shall determine the number
of Shares to be awarded to a Participant under (or otherwise related to) such
Other Stock-Based Awards; whether such Other Stock-Based Awards shall be
settled in cash, Shares or a combination of cash and Shares; and all other
terms and conditions of such Awards (including, without limitation, the vesting
provisions thereof and provisions ensuring that all Shares so awarded and
issued shall be fully paid and non-assessable). The maximum amount of Other
Stock-Based Awards that may be granted during a calendar year to any
Participant shall be: (x) with respect to Other Stock-Based Awards that are
denominated or payable in Shares, 288,855 Shares and (y) with respect to Other
Stock-Based Awards that are not denominated or payable in Shares, $10 million.
Notwithstanding any other provision, with respect to (i) Other Stock-Based
Awards settled in Shares that are subject to time-based vesting, not less than
95% of such Other Stock Based Awards payable in Shares shall vest and become
payable at least three years after the date of grant, subject to earlier
vesting in whole or in part in the event of a Change in Control or the death,
disability or other termination of the Participant’s employment, and (ii) Other
Stock-Based Awards settled in Shares that are subject to vesting upon the
attainment of performance objectives, the minimum performance period shall be
one year.
	 
	 	(b)	 	Performance-Based Awards. Notwithstanding anything to
the contrary herein, certain Other Stock-Based Awards granted under this
Section 9 may be granted in a manner which is intended to be deductible by the
Company under Section 162(m) of the Code (or any successor section thereto)
(“Performance-Based Awards”). A Participant’s Performance-Based Award shall be
determined based on the attainment of written performance goals approved by the
Committee for a performance period of not less than one year established by the
Committee (i) while the outcome for that performance period is substantially
uncertain and (ii) no more than 90 days after the commencement of the
performance period to which the performance goal relates or, if less, the
number of days which is equal to 25 percent of the relevant performance period.
The performance goals, which must be objective, shall be based upon one or
more of the

 

12

	 	 	 	following criteria: (i) operating income before depreciation and
amortization; (ii) operating income; (iii) earnings per Share; (iv) return
on shareholders’ equity; (v) revenues or sales; (vi) free cash flow; (vii)
return on invested capital and (viii) total shareholder return. The
foregoing criteria may relate to the Company, one or more of its Affiliates
or one or more of its or their divisions or units, or any combination of the
foregoing, and may be applied on an absolute basis and/or be relative to one
or more peer group companies or indices, or any combination thereof, all as
the Committee shall determine. In addition, to the degree consistent with
Section 162(m) of the Code (or any successor section thereto), the
performance goals may be calculated without regard to extraordinary items.
The Committee shall determine whether, with respect to a performance period,
the applicable performance goals have been met with respect to a given
Participant and, if they have, shall so certify and ascertain the amount of
the applicable Performance-Based Award. No Performance-Based Awards will be
paid for such performance period until such certification is made by the
Committee. The amount of the Performance-Based Award actually paid to a
given Participant may be less than the amount determined by the applicable
performance goal formula, at the discretion of the Committee. The amount of
the Performance-Based Award determined by the Committee for a performance
period shall be paid to the Participant at such time as determined by the
Committee in its sole discretion after the end of such performance period;
provided, however, that a Participant may, if and to the
extent permitted by the Committee and consistent with the provisions of
Section 162(m) of the Code and Section 19 below, elect to defer payment of a
Performance-Based Award.

10. Adjustments Upon Certain Events

          Notwithstanding any other provisions in the Plan to the contrary, the following provisions
shall apply to all Awards granted under the Plan:

	 	(a)	 	Generally. In the event of any change in the
outstanding Shares (including, without limitation, the value thereof) after the
Effective Date by reason of any Share dividend or split, reorganization,
recapitalization, merger, consolidation, spin-off, combination, combination or
transaction or exchange of Shares or other corporate exchange, or any
distribution to shareholders of Shares other than regular cash dividends or any
transaction similar to the foregoing, the Committee in its sole discretion and
without liability to any person shall make such substitution or adjustment, if
any, as it deems to be equitable (subject to Section 19), as to (i) the number
or kind of Shares or other securities issued or reserved for issuance pursuant
to the Plan or pursuant to outstanding Awards, (ii) the maximum number of
Shares for which Awards (including limits established for Restricted Stock or
Other Stock-Based Awards) may be granted during a calendar

 

13

	 	 	 	year to any Participant, (iii) the Option Price or exercise price of any
Stock Appreciation Right and/or (iv) any other affected terms of such
Awards.
	 
	 	(b)	 	Change in Control. In the event of a Change in Control
after the Effective Date, the Committee may (subject to Section 19), but shall
not be obligated to, (A) accelerate, vest or cause the restrictions to lapse
with respect to, all or any portion of an Award, (B) cancel Awards for fair
value (as determined in the sole discretion of the Committee) which, in the
case of Options and Stock Appreciation Rights, may equal the excess, if any, of
value of the consideration to be paid in the Change in Control transaction to
holders of the same number of Shares subject to such Options or Stock
Appreciation Rights (or, if no consideration is paid in any such transaction,
the Fair Market Value of the Shares subject to such Options or Stock
Appreciation Rights) over the aggregate exercise price of such Options or Stock
Appreciation Rights, (C) provide for the issuance of substitute Awards that
will substantially preserve the otherwise applicable terms of any affected
Awards previously granted hereunder as determined by the Committee in its sole
discretion or (D) provide that for a period of at least 30 days prior to the
Change in Control, such Options shall be exercisable as to all shares subject
thereto and that upon the occurrence of the Change in Control, such Options
shall terminate and be of no further force and effect.

11. No Right to Employment or Awards

          The granting of an Award under the Plan shall impose no obligation on the Company or any
Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s
or Subsidiary’s right to terminate the Employment of such Participant. No Participant or other
person shall have any claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders of Awards. The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be the same with
respect to each Participant (whether or not such Participants are similarly situated).

12. Successors and Assigns

          The Plan shall be binding on all successors and assigns of the Company and a Participant,
including without limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors.

13. Nontransferability of Awards

          Unless otherwise determined by the Committee (and subject to the limitation that in no
circumstances may an Award may be transferred by the Participant for consideration or value), an
Award shall not be transferable or assignable by the Participant otherwise than by will

 

14

or by the laws of descent and distribution. An Award exercisable after the death of a
Participant may be exercised by the legatees, personal representatives or distributees of the
Participant.

14. Amendments or Termination

          The Board or the Committee may amend, alter or discontinue the Plan, but no amendment,
alteration or discontinuation shall be made, (a) without the approval of the shareholders of the
Company, if such action would (except as is provided in Section 10 of the Plan), increase the total
number of Shares reserved for the purposes of the Plan or increase the maximum number of Shares of
Restricted Stock or Other Stock-Based Awards that may be awarded hereunder, or the maximum number
of Shares for which Awards may be granted to any Participant, (b) without the consent of a
Participant, if such action would diminish any of the rights of the Participant under any Award
theretofore granted to such Participant under the Plan or (c) to Section 5(b), relating to
repricing of Options or Stock Appreciation Rights, to permit such repricing; provided,
however, that the Committee may amend the Plan in such manner as it deems necessary to
permit the granting of Awards meeting the requirements of the Code or other applicable laws.

          Without limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in
accordance with Section 409A of the Code and Department of Treasury regulations and other
interpretative guidance issued thereunder, including without limitation any such regulations or
other guidance that may be issued after the Effective Date. Notwithstanding any provision of the
Plan to the contrary, in the event that the Committee determines that any amounts payable hereunder
will be taxable to a Participant under Section 409A of the Code and related Department of Treasury
guidance, prior to payment to such Participant of such amount, the Company may (a) adopt such
amendments to the Plan and Awards and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Committee determines necessary or appropriate to
preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder
and/or (b) take such other actions as the Committee determines necessary or appropriate to avoid
the imposition of an additional tax under Section 409A of the Code.

15. International Participants

          With respect to Participants who reside or work outside the United States of America and who
are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m)
of the Code, the Committee may, in its sole discretion, amend the terms of the Plan or Awards with
respect to such Participants in order to conform such terms with the requirements of local law or
to obtain more favorable tax or other treatment for a Participant, the Company or an Affiliate.

16. Other Benefit Plans

          All Awards shall constitute a special incentive payment to the Participant and shall not be
taken into account in computing the amount of salary or compensation of the Participant for the
purpose of determining any benefits under any pension, retirement, profit-

 

15

sharing, bonus, life insurance or other benefit plan of the Company or under any agreement
between the Company and the Participant, unless such plan or agreement specifically provides
otherwise.

17. Choice of Law

          The Plan shall be governed by and construed in accordance with the laws of the State of New
York without regard to conflicts of laws, and except as otherwise provided in the pertinent Award
agreement, any and all disputes between a Participant and the Company or any Affiliate relating to
an Award shall be brought only in a state or federal court of competent jurisdiction sitting in
Manhattan, New York.

18. Effectiveness of the Plan

          The Plan shall be effective as of the Effective Date, subject to the approval of the
shareholders of the Company.

19. Section 409A

          Notwithstanding other provisions of the Plan or any Award agreements thereunder, no Award
shall be granted, deferred, accelerated, extended, paid out or modified under this Plan in a manner
that would result in the imposition of an additional tax under Section 409A of the Code upon a
Participant. In the event that it is reasonably determined by the Committee that, as a result of
Section 409A of the Code, payments in respect of any Award under the Plan may not be made at the
time contemplated by the terms of the Plan or the relevant Award agreement, as the case may be,
without causing the Participant holding such Award to be subject to taxation under Section 409A of
the Code, the Company will make such payment on the first day that would not result in the
Participant incurring any tax liability under Section 409A of the Code; which, if the Participant
is a “specified employee” within the meaning of the Section 409A, shall be the first day following
the six-month period beginning on the date of Participant’s termination of Employment. The Company
shall use commercially reasonable efforts to implement the provisions of this Section 19 in good
faith; provided that neither the Company, the Committee nor any of the Company’s employees,
directors or representatives shall have any liability to Participants with respect to this Section
19.

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