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Exhibit 10.1    
    

REGISTRATION RIGHTS AGREEMENT  

        REGISTRATION
RIGHTS AGREEMENT (this "Agreement"), dated as of                        , 2006, between CODE, HENNESSY & SIMMONS II, L.P.,
 a Delaware limited partnership ("Code"), and
HOUSTON WIRE & CABLE COMPANY, a Delaware corporation (the "Company"). 

        WHEREAS,
Code is the owner of            shares of the Company's issued and outstanding shares of common stock, par value $0.001 per share ("Common Stock"), and the Company, Code
and certain other selling stockholders have determined to offer to the public up to            shares of the Common Stock, in a primary and secondary offering (the "Public Offering").

        WHEREAS,
Code and the Company are parties to an Investors Securities Agreement with certain investors and Executive Securities Agreements with certain employees and former employees of
the Company, pursuant to which such investors and certain of such employees and former employees (collectively, the "Pre-IPO Stockholders") have certain piggyback registration rights
applicable to the shares of Common Stock owned by them. 

        WHEREAS,
the parties hereto desire to enter into this Agreement, which sets forth the terms of certain registration rights applicable to the Registrable Securities (as defined below). 

        NOW,
THEREFORE, in consideration of the premises and the mutual promises herein contained, and for other good and valuable consideration, the receipt and adequacy of which are
acknowledged, the parties agree as follows: 

        1.    Certain Definitions.    As used in this Agreement, the following initially capitalized terms shall have the
following meanings: 

        (a)   "Affiliate"
means, with respect to any person, any other person who, directly or indirectly, is in control of, is controlled by or is under common control with the
former person. 

        (b)   "Holder"
means Code and any "transferee" (as such term is defined in Section 11) which is the beneficial owner of Registrable Securities. 

        (c)   "Offered
Registrable Securities" means, with respect to any registration pursuant to Section 2 or 3, the Registrable Securities proposed to be disposed of by any
Holder in the offering that is the subject of such registration. 

        (d)   "Registrable
Securities" means the Common Stock as presently constituted, any stock or other securities into which or for which such Common Stock may hereafter be
changed, converted or exchanged, and any other securities issued to holders of such Common Stock (or shares into which or for which such shares are so changed, converted or exchanged) upon any
reclassification, share combination, share subdivision, share dividend, merger, consolidation or similar transaction or event, provided that such securities shall cease to be Registrable Securities
(i) if a registration statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have been disposed of in accordance
with the plan of distribution set forth in such registration statement, (ii) such securities shall have been distributed pursuant to Rule 144, or (iii) subsequent to the seventh
anniversary of the closing of the Public Offering (subject to the specific extensions specified herein). 

        (e)   "Registration
Expenses" means the following reasonable expenses in connection with any registration of securities pursuant to this Agreement: (i) SEC filing fees;
(ii) the fees, disbursements and expenses of the Company's counsel and accountants in connection with the registration of the Offered Registrable Securities under the Securities Act;
(iii) all expenses in connection with the preparation, printing and filing of the registration statement, all preliminary and final prospectuses and all amendments and supplements thereto, the
mailing and delivering of copies thereof to any Holders, underwriters and dealers and all expenses incidental to delivery of 

 

the
Offered Registrable Securities; (iv) the cost of producing blue sky or legal investment memoranda; (v) all expenses in connection with the qualification of the Offered Registrable
Securities for offering and sale under state securities laws, including the fees and disbursements of counsel for the underwriters or Holders in connection with such qualification and any blue sky and
legal investment memoranda; (vi) any fees payable to the National Association of Securities Dealers, Inc. in connection with its review of the terms of the sale of the Offered
Registrable Securities; (vii) transfer agents', depositaries' and registrars' fees and the fees of any other agent appointed in connection with such registration; (viii) all security
engraving and security printing expenses; (ix) all fees and expenses payable in connection with the listing of the Registrable Securities on each securities exchange or quotation system on
which the Common Stock is then listed; and (x) any one time payment for directors and officers insurance directly related to such offering, provided the insurer provides a separate statement
for such payment. 

        (f)    "Rule 144"
means Rule 144 promulgated under the Securities Act, or any successor rule to similar effect. 

        (g)   "SEC"
means the United States Securities and Exchange Commission. 

        (h)   "Securities
Act" means the Securities Act of 1933, as amended, or any successor statute. 

        2.    Demand Registration.    

        (a)   At
any time and from time to time prior to the seventh anniversary of the closing of the Public Offering, upon written notice from a Holder in the manner set forth in
Section 12(h) requesting that the Company effect the registration under the Securities Act of any or all of such Holder's Registrable Securities, which notice shall specify the intended method
or methods of disposition of such Registrable Securities, the Company shall use its best efforts to effect, in the manner set forth in Section 5, the registration under the Securities Act of
such Registrable Securities for disposition in accordance with the intended method or methods of disposition stated in such request, provided that: 

          (i)  if
(A) prior to receipt of a request for registration pursuant to this Section 2(a), the Company was planning an immediate offering of securities by the
Company and (B) within five business days after receipt of such request, the managing underwriter of such planned offering advises the Company in writing (with a copy to the Holder requesting
registration) that, in such firm's good faith opinion, a registration at the time and on the terms requested would materially and adversely affect the previously planned offering, then the Company
shall not be required to effect a registration pursuant to this Section 2(a) until the earliest of (1) the abandonment of such planned offering, (2) 90 days after the
completion of such offering, (3) the termination of any "hold back" period obtained by the underwriter(s) of such offering from any person in connection therewith or (4) 180 days
after receipt by
the Holder requesting registration of the managing underwriter's written opinion referred to above in this subsection (i); 

         (ii)  if,
while a registration request is pending pursuant to this Section 2(a), the Company determines in good faith that (A) the filing of a registration
statement would require the disclosure of material information that the Company has a bona fide business purpose for preserving as confidential or (B) the Company then is unable to comply with
SEC requirements applicable to the requested registration, the Company may delay effecting a registration pursuant to this Section 2(a) until the earlier of (1) the date upon which such
material information is otherwise disclosed to the public or ceases to be material, or the Company is able to comply with applicable SEC requirements, as the case may be, and (2) 45 days
after the Company makes such good faith determination, provided that the 

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Company
shall not be permitted to delay a requested registration in reliance on this clause (ii) more than once in any 24-month period; and 

        (iii)  the
Company shall not be obligated to file a registration statement relating to a registration requested pursuant to this Section 2(a): (A) within
six months after the effective date of any other registration statement filed in response to a request pursuant to this Section 2(a); (B) if such registration request is for a number of
Registrable Securities representing less than 7.5% of the then issued and outstanding common equity of the Company (unless the Holders making the demand own at least 5% of the issued and outstanding
common equity of the Company and the demand is for all their Registrable Securities) or (C) if the aggregate number of Registrable Securities owned by all Holders represents less than 5% of the
issued and outstanding common equity of the Company. 

        (b)   Notwithstanding
any other provision of this Agreement to the contrary: 

          (i)  a
registration requested by a Holder pursuant to Section 2(a) shall not be deemed to have been effected (and, therefore, not requested) (A) unless the
registration statement filed in connection therewith has become effective, (B) if, after such registration statement has become effective, it is interfered with by any stop order, injunction or
other order or requirement of the SEC or other governmental agency or court for any reason other than a misrepresentation or an omission by such Holder and, as a result thereof, 90% or more of the
Registrable Securities requested to be registered cannot be completely distributed in accordance with the plan of distribution set forth therein or (C) if the conditions to closing specified in
the purchase agreement or underwriting agreement entered into in connection with such registration are not satisfied (other than by reason of an act or omission by such Holder) or waived by the
underwriters; 

         (ii)  a
registration requested by a Holder pursuant to Section 2(a) and later withdrawn at the request of such Holder, whether prior to or after the effectiveness of
the related registration statement, shall be deemed to have been effected (and, therefore, requested), provided that, where a request is withdrawn
prior to the filing of a registration statement with the SEC, such Holder can require the Company to disregard for purposes of Section 2(a)(iii) one such requested registration in any
six month period; and 

        (iii)  nothing
herein shall modify the obligation of a Holder (other than Code) to pay the Registration Expenses incurred in connection with any withdrawn registration. 

        (c)   In
the event that any registration requested pursuant to Section 2(a) shall involve, in whole or in part, an underwritten offering, the requesting Holder shall
have the right to designate an underwriter reasonably satisfactory to the Company as the lead managing underwriter, and the Company shall have the right to designate one underwriter reasonably
satisfactory to the Holder as a co-manager of such underwritten offering. 

        (d)   The
Company shall have the right to include additional securities offered for the account of any person (including the Company) in any registration of Registrable
Securities requested by a Holder pursuant to Section 2(a); provided that the Company shall not have the right to include such additional securities to the extent the managing underwriter of the
offering advises such Holder in writing (with a copy to the Company) that, in such firm's good faith opinion, registration of such additional securities would materially and adversely affect the
offering and sale of the Offered Registrable Securities then contemplated by such Holder, except that Code shall be required to include Registrable Securities owned by the Pre-IPO
Stockholders to the extent required by the Investors Securities Agreement and Executive Securities Agreements, in each case as in effect on the date hereof. 

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        3.    Piggyback Registration.    At any time prior to the seventh anniversary of the closing of the Public Offering,
if the Company proposes to register any shares of Common Stock or any other of its common equity securities (collectively, "Other Securities") under the Securities Act (other than a registration on
Form S-4 or Form S-8 or any successor form thereto), whether or not for sale for its own account, in a manner which would permit registration of Registrable
Securities for sale for cash to the public under the Securities Act, it will give prompt written notice to each Holder of its intention to do so at least ten business days prior to the anticipated
filing date of the registration statement relating to such registration. Such notice shall offer each Holder the opportunity to include in such registration statement such number of Registrable
Securities as such Holder may request. Upon the written request of any Holder made within five business days after the receipt of the Company's notice (which request shall specify the number of
Registrable Securities proposed to be disposed of and the intended method of disposition), the Company shall effect, in connection with the registration of the Other Securities and in the manner set
forth in Section 5, the registration under the Securities Act of all Registrable Securities which the Company has been so requested to register, to the extent required to permit the disposition
of such Registrable Securities in accordance with the intended method of disposition, provided that: 

        (a)   if,
at any time after giving written notice of its intention to register any securities and prior to the effective date of the related registration statement, the
Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, so notify the Holder in writing, whereupon (i) in the case
of a determination not to register, the Company shall be relieved of its obligation to register any Registrable Securities in connection with such registration, and (ii) in the case of a
determination to delay registration, the Company shall be permitted to delay registration of any Registrable Securities requested to be included in such registration for the same period as the delay
in registering such Other Securities. 

        (b)   (i) if
the registration referred to in the first sentence of this Section 3 is to be an underwritten primary registration on behalf of the Company, and the
managing underwriter advises the Company in writing that, in the good faith opinion of such managing underwriter, such offering would be materially and adversely affected by the inclusion therein of
the Registrable Securities requested to be included, the Company shall include in such registration: (A) first, all securities the Company proposes to sell for its own account ("Company
Securities"), (B) second, up to the full number of Registrable Securities held by Code and the Pre-IPO Stockholders ("Code/Management Securities") in excess of the number or dollar
amount of securities the Company proposes to sell that, in the good faith opinion of such managing underwriter, can be sold without materially and adversely affecting such offering (and, if less than
the full number of Code/Management Securities, allocated among Code and the Pre-IPO Stockholders in accordance with the terms of the Investors Securities Agreement and Executive Securities
Agreements, in each case as in effect on the date hereof), (C) third, up to the full number of Registrable Securities (other than Code/Management Securities) in excess of the number or dollar
amount of Company Securities and Code/Management Securities that, in the good faith opinion of such managing underwriter, can be sold without materially and adversely affecting such offering (and, if
less than the full number of such Registrable Securities, allocated pro rata among the Holders of such Registrable Securities (other than Code/Management Securities) on the basis of the number of
securities requested to be included therein by each such Holder) and (D) fourth, an amount of other securities, if any, requested to be included therein in excess of the number or dollar amount
of Company Securities, Code/Management Securities and other Registrable Securities that, in the good faith opinion of such managing underwriter, can be sold without materially and adversely affecting
such offering (allocated among the holders of such other securities in such proportions as such holders and the Company may agree); and (ii) if the registration referred to in the first
sentence of this Section 3 is to be an underwritten secondary registration on behalf of holders of securities of the Company other than Registrable Securities (the "Other Holders"), and the 

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managing
underwriter advises the Company in writing that, the good faith opinion of such managing underwriter, such offering would be materially and adversely affected by the inclusion therein of the
Registrable Securities requested to be included, the Company shall include in such registration the amount of securities (including Registrable Securities) that such managing underwriter advises,
allocated pro rata among the Other Holders and the Holders on the basis of the number of securities (including Registrable Securities) requested to be included therein by each Other Holder and each
Holder, subject to the rights of the Pre-IPO Stockholders under the Investors Securities Agreement and Executive Securities Agreements, in each case as in effect on the date hereof; 

        (c)   the
Company shall not be required to effect any registration of Registrable Securities under this Section 3 incidental to the registration of any of its
securities in connection with any merger, acquisition,
exchange offer, subscription offer, dividend reinvestment plan or stock option or other executive or employee benefit or compensation plan; and 

        (d)   no
registration of Registrable Securities effected under this Section 3 shall relieve the Company of its obligation to effect a registration of Registrable
Securities pursuant to Section 2. 

        4.    Expenses.    The Company shall pay all Registration Expenses, including the fees, disbursements and expenses of
Code's counsel, with respect to any offering by Code pursuant to Section 2. Each Holder (other than Code), by accepting Registrable Securities, agrees to pay all Registration Expenses with
respect to an offering pursuant to Section 2, pro rata based on the number of Registrable Securities included in such offering by each Holder (excluding Code), except to the extent the Company
causes shares to be registered for itself or another party pursuant to Section 2(d), in which event the Company or such other party shall pay the incremental expenses of including such shares
in the offering. The Company agrees to pay all Registration Expenses with respect to an offering pursuant to Section 3, except for the incremental expenses of including Registrable Securities
of a Holder (other than Code) in such offering, which incremental expenses shall be paid by such Holder. All Registration Expenses to be paid by a Holder shall be paid within 30 days of the
delivery of a statement from the Company, such statements to be delivered not more frequently than once every 60 days. In an underwritten offering, each party (including Code) shall be
responsible for underwriting discounts and commissions payable with respect to the securities sold by such party. 

        5.    Registration and Qualification.    If and whenever the Company is required to use its best efforts to effect the
registration of any Registrable Securities under the Securities Act as provided in Section 2 or 3, the Company shall: 

        (a)   prepare
and file a registration statement under the Securities Act relating to the Offered Registrable Securities as soon as practicable, but in no event later
than 45 days (60 days if the applicable registration form is other than Form S-3) after the date notice is given, and use its best efforts to cause the same to become
effective within 90 days after the date notice is given (120 days if the applicable registration form is other than Form S-3); 

        (b)   prepare
and file with the SEC such amendments to the registration statement, such preliminary and final prospectuses and such amendments and supplements thereto as may
be necessary to keep such registration statement effective for 60 days (or, in the case of an underwritten offering, such shorter time period as the underwriters may require); 

        (c)   furnish
to the Holders and to any underwriter of such Offered Registrable Securities such number of conformed copies of such registration statement and of each amendment
thereto (in each case including all exhibits), such number of copies of the prospectus included in such registration statement (including each preliminary prospectus and any summary prospectus) and
any supplements thereto, and such other documents as the Holders or such underwriter may reasonably request in order to facilitate the public sale of the Offered Registrable Securities, and a 

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copy
of any and all transmittal letters or other correspondence to, or received from, the SEC or any other governmental agency or self-regulatory body or other body having jurisdiction
(including any domestic or foreign securities exchange) relating to such offering; 

        (d)   use
its best efforts to register or qualify all Offered Registrable Securities under the securities or blue sky laws of such jurisdictions as the Holders or any
underwriter of such Offered Registrable Securities shall request, and use its best efforts to obtain all appropriate registrations, permits and consents required in connection therewith, and do any
and all other acts and things which may be necessary or advisable to enable the Holders or any such underwriter to consummate the disposition in such jurisdictions of the Offered Registrable
Securities; provided that the Company shall not for any such purpose be required to register or qualify generally to do business as a foreign corporation in any jurisdiction where it is not so
qualified, to subject itself to taxation in any jurisdiction where it is not so subject, or to consent to general service of process in any jurisdiction; 

        (e)   (i) use
its best efforts to furnish an opinion of counsel for the Company addressed to the underwriters and dated the date of the closing under the underwriting
agreement (if any), and (ii) use its best efforts to furnish a "comfort" letter addressed to the underwriters, and signed by the independent public accountants who have audited the Company's
financial statements included in such registration statement, in each such case covering substantially the same matters with respect to such registration statement (and the prospectus included
therein) as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities; 

        (f)    immediately
notify each Holder of Offered Registrable Securities (each a "Selling Holder") in writing (i) at any time when a prospectus relating to a registration
pursuant to Section 2 or 3 is required to be delivered under the Securities Act of the happening of any event, as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and (ii) of any request by the SEC or any other regulatory body having jurisdiction for any amendment of or supplement to any
registration statement or other document relating to such offering, and in either such case (i) or (ii) at the request of the Selling Holders, prepare and furnish to the Selling Holders
a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of the Offered Registrable Securities, such
prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading; 

        (g)   use
its best efforts to list all Offered Registrable Securities on each securities exchange and quotation system on which the Common Stock is then listed; and 

        (h)   furnish
unlegended certificates representing ownership of the Registrable Securities being sold in such denominations as shall be requested by the Selling Holders or the
underwriters. 

        6.    Conversion of Other Securities, etc.    If Code offers any options, rights, warrants or other securities issued
by it or any other person that are offered with, convertible into or exercisable or exchangeable for any Registrable Securities, the Registrable Securities underlying such options, rights, warrants or
other securities shall be eligible for registration pursuant to Section 2 and Section 3. 

        7.    Underwriting; Due Diligence.    

        (a)   If
requested by the underwriters for any underwritten offering of Registrable Securities pursuant to a registration requested under this Agreement, the Company shall
enter into an 

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underwriting
agreement with such underwriters that contains such representations and warranties by the Company, and such other terms and provisions, as are customarily contained in underwriting
agreements with respect to secondary distributions, including, without limitation, indemnities and contribution substantially to the effect and to the extent provided in Section 8 and
agreements to provide opinions of counsel and accountants' letters to the effect and to the extent provided in Section 5(e). The Selling Holders shall be parties to any such underwriting
agreement. Such underwriting agreement shall also contain such representations and warranties by the Selling Holders as are customarily contained in underwriting agreements with respect to secondary
distributions. The Selling Holders may require that any additional securities included in an offering proposed by a Holder be included on the same terms and conditions as the Offered Registrable
Securities included therein. 

        (b)   In
the event that any registration pursuant to Section 3 shall involve, in whole or in part, an underwritten offering, the Company may require the Offered
Registrable Securities included in such registration to be included in such underwritten offering on the same terms and conditions as shall be applicable to the other securities being sold through
underwriters under such registration. If requested by the underwriters for such underwritten offering, the Selling Holders shall enter into an underwriting agreement with such underwriters that
contains such representations and warranties by the Selling Holders, and such other terms and provisions, as are customarily contained in underwriting agreements with respect to secondary
distributions, including, without limitation, indemnities and contribution substantially to the effect and to the extent provided in Section 8. Such underwriting agreement shall also contain
such representations and warranties by the Company and such other person or entity for
whose account securities are being sold as are customarily contained in underwriting agreements with respect to secondary distributions. 

        (c)   In
connection with the preparation and filing of each registration statement registering Registrable Securities under the Securities Act, the Company shall give the
Holders of such Registrable Securities and the underwriters, if any, and their respective counsel and accountants, such reasonable and customary access to its books and records, and such opportunities
to discuss the business of the Company with its officers and the independent public accountants who have certified the Company's financial statements, as shall be necessary, in the opinion of such
Holder and such underwriters or their respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act. 

        8.    Indemnification and Contribution.    

        (a)   In
the case of each offering of Registrable Securities made pursuant to this Agreement, the Company agrees to indemnify and hold harmless each Holder, its officers and
directors, each underwriter of Registrable Securities so offered and each person, if any, who controls any of the foregoing persons within the meaning of the Securities Act, from and against any and
all claims, liabilities, losses, damages, expenses and judgments, joint or several, to which they or any of them may become subject, under the Securities Act or otherwise, including any amount paid in
settlement of any litigation commenced or threatened, and shall promptly reimburse them, as and when incurred, for any reasonable legal or other expenses incurred by them in connection with
investigating any claims and defending any actions, insofar as such losses, claims, damages, liabilities or actions shall arise out of, or shall be based upon, any untrue statement or alleged untrue
statement of a material fact contained in the registration statement (or in any preliminary or final prospectus included therein) or any amendment thereof or supplement thereto, or in any document
incorporated by reference therein, or any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided,
however, that the Company shall not be liable to a particular Holder in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement, or any omission, if such statement 

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or
omission shall have been made in reliance upon and in conformity with information relating to such Holder furnished to the Company in writing by or on behalf of such Holder specifically for use in
the preparation of the registration statement (or in any preliminary or final prospectus included therein) or any amendment thereof or supplement thereto. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of a Holder and shall survive the transfer of such securities. The foregoing indemnity agreement is in addition to any liability which the
Company may otherwise have to each Holder, its officers and directors, underwriters of the Registrable Securities or any controlling person of the foregoing; provided further, that, as to any
underwriter or any person controlling any underwriter, this indemnity does not apply to any loss, liability, claim, damage or expense arising out of or based upon any untrue statement or alleged
untrue statement or omission or alleged omission in any preliminary prospectus if a copy of a prospectus was not sent or given by or on behalf of an underwriter to such person asserting such loss,
claim, damage, liability or action at or prior to the written confirmation of the sale of the Registrable Securities as required by the Securities Act and such untrue statement or omission had been
corrected in such prospectus. 

        (b)   In
the case of each offering made pursuant to this Agreement, each Holder of Registrable Securities included in such offering, by exercising its registration rights
hereunder, agrees to indemnify and hold harmless the Company, its officers and directors and each person, if any, who controls any of the foregoing within the meaning of the Securities Act (and if
requested by the underwriters, each underwriter who participates in the offering and each person, if any, who controls any such underwriter within the meaning of the Securities Act), from and against
any and all claims, liabilities, losses, damages, expenses and judgments, joint or several, to which they or any of them may become subject, under the Securities Act or otherwise, including any amount
paid in settlement of any litigation commenced or threatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating
any claims and defending any actions, insofar as any such losses, claims, damages, liabilities or actions shall arise out of, or shall be based upon, any untrue statement or alleged untrue statement
of a material fact contained in the registration statement (or in any preliminary or final prospectus included therein) or any amendment thereof or supplement thereto, or any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but in each case only to the
extent that such untrue statement of a material fact is contained in, or such material fact is omitted from, information relating to such Holder furnished in writing to the Company by or on behalf of
such Holder specifically for use in the preparation of such registration statement (or in any preliminary or final prospectus included therein). The foregoing indemnity is in addition to any liability
which such Holder may otherwise have to the Company, or any of its directors, officers or controlling persons; provided, however, that, as to any underwriter or any person controlling any underwriter,
this indemnity does not apply to any loss, liability, claim, damage or expense arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission in any
preliminary prospectus if a copy of a prospectus was not sent or given by or on behalf of an underwriter to such person asserting such loss, claim, damage, liability or action at or prior to the
written confirmation of the sale of the Registrable Securities as required by the Securities Act and such untrue statement or omission had been corrected in such prospectus. 

        (c)   Each
party indemnified under paragraph (a) or (b) of this Section 8 shall, promptly after receipt of notice of any claim or the commencement of any
action against such indemnified party in respect of which indemnity may be sought, notify the indemnifying party in writing of the claim or the commencement thereof; provided that the failure to
notify the indemnifying party shall not relieve it from any liability which it may have to an indemnified party on account of the indemnity agreement contained in paragraph (a) or (b) of
this Section 8, except to the extent the indemnifying party was prejudiced by such failure, and in no event shall relieve the indemnifying 

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party
from any other liability which it may have to such indemnified party. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party
thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the
indemnifying party shall not be liable to the indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the
defense thereof, other than reasonable costs of investigation; provided that each indemnified party, its officers and directors, if any, and each person, if any, who controls such indemnified party
within the meaning of the Securities Act shall have the right to employ separate counsel reasonably approved by the indemnifying party to represent them, if the named parties to any action (including
any impleaded parties) include both such indemnified party and an indemnifying party or an affiliate of an indemnifying party, and such indemnified party shall have been advised by counsel either
(i) that there may be one or more legal defenses available to such indemnified party that are different from or additional to those available to such indemnifying party or such affiliate or
(ii) that a conflict may exist between such indemnified party and such indemnifying party or such affiliate, and in that event the fees and expenses of one such separate counsel for all such
indemnified parties shall be paid by the indemnifying party. An indemnified party will not enter into any settlement agreement that is not approved by the indemnifying party, such approval not to be
unreasonably withheld. The indemnifying party may not agree to any settlement of any such claim or action that provides for any remedy or relief other than monetary damages for which the indemnifying
party shall be responsible hereunder without the prior written consent of the indemnified party, which consent shall not be unreasonably withheld. In any action hereunder as to which the indemnifying
party has assumed the defense with counsel reasonably satisfactory to the indemnified party, the indemnified party shall continue to be entitled to participate in the defense thereof, with counsel of
its own choice, but, except as set forth above, the indemnifying party shall not be obligated hereunder to reimburse the indemnified party for the costs thereof. In all instances, the indemnified
party shall cooperate fully with the indemnifying party or its counsel in the defense of each claim or action. 

        If
the indemnification provided for in this Section 8 shall for any reason be unavailable to an indemnified party in respect of any loss, claim, damage or liability referred to
herein, or any action in respect thereof, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a
result of such loss, claim, damage or liability, or action in respect thereof, in such proportion as shall be appropriate to reflect the relative fault of the indemnifying party on the one hand and
the indemnified party on the other with respect to the statements or omissions which resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the indemnifying party on the one hand or the indemnified party on the other, the intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission, but not by reference to any indemnified party's stock ownership in the Company. In no event, however, shall a Holder be required to
contribute in excess of the amount of the net proceeds received by such Holder in connection with the sale of Registrable Securities in the offering which is the subject of such loss, claim, damage or
liability. For purposes of this paragraph, the amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. No person guilty of fraudulent 

9

 

misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

        9.    Rule 144.    Following the closing of the Public Offering, the Company shall take such measures and file
such information, documents and reports as shall be required by the SEC as a condition to the availability of Rule 144 (or any successor provision.) 

        10.    Holdback.    

        (a)   Each
Holder agrees by acquisition of Registrable Securities, if so required by the managing underwriter, not to sell, make any short sale of, loan, grant any option for
the purchase of, effect any public sale or distribution of or otherwise dispose of any securities of the Company during the 30 days prior to and the 90 days after the effective date of
any underwritten registration pursuant to Section 2 or 3 (or such shorter period as may be required by the underwriter), except as part of such underwritten registration or pursuant to a
private sale. The Company may place a legend and impose stop transfer instructions on any certificate evidencing Registrable Securities relating to the restrictions provided for in this
Section 10. 

        (b)   The
Company agrees, if so required by the managing underwriter, not to sell, make any short sale of, loan, grant any option for the purchase of (other than pursuant to
employee benefit plans), effect any public sale or distribution of or otherwise dispose of its equity securities or securities convertible into or exchangeable or exercisable for any such securities
during the 30 days prior to and the 90 days
after the effective date of any underwritten registration pursuant to Section 2 or 3, except as part of such underwritten registration and except pursuant to registrations on
Form S-4, Form S-8 or any successor or similar forms thereto. 

        11.    Transfer of Registration Rights.    

        (a)   On
not less than 15 days prior written notice to the Company, Code may transfer all or any portion of its rights under this Agreement to any transferee of
Registrable Securities representing (i) at least 20% of the number of Registrable Securities held by Code as of the date of this Agreement and (ii) if Code than owns less than 20% of its
initial holdings, all of Code's remaining Registrable Securities (each, a "transferee"). The notice to the Company need not contain the names of the proposed transferee. On or before the later of the
transfer of the registration rights and the transfer of the underlying Registrable Securities, the Company shall receive a written notice stating (to the extent not included in the notice of transfer
of registration rights) the name and address of any transferee of the registration rights and identifying the number of Registrable Securities with respect to which the rights under this Agreement are
being transferred and the nature of the rights so transferred. Following any such transfer, the term "Code," as used in this Agreement (other than in this Section 11, Section 3(b)(i)(2),
Section 4 and Section 1(c)(iii)), shall be deemed to include the transferee of such Registrable Securities, where appropriate to assign the rights and obligations of Code hereunder. Code
and such transferees may exercise the registration rights hereunder in such proportion and upon the demand of such Holders as they shall agree among themselves, provided that in no event shall the
Company be required to effect more than one registration pursuant to Section 2 in any six-month period, regardless of the number of Holders making a request. 

        (b)   After
any such transfer, Code shall retain its rights under this Agreement with respect to all Registrable Securities retained by Code. 

        (c)   Upon
the request of Code, the Company shall execute a Registration Rights Agreement substantially similar to this Agreement with each transferee or proposed transferee,
and any demand registrations granted to such transferee shall limit the demand registrations to which Code is entitled under Section 2(a). 

10

 

        12.    Miscellaneous.    

        (a)    Injunctions.    Each party acknowledges and agrees that irreparable damage would occur in the event that any of
the provisions of this Agreement was not performed in accordance with its specific terms or was otherwise breached. Therefore, each party shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to
which such party may be entitled at law or in equity. 

        (b)    Severability.    If any term or provision of this Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms and provisions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and each of
the parties shall use its best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term or provision. 

        (c)    Further Assurances.    Subject to the specific terms of this Agreement, each of the parties hereto shall make,
execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to
consummate the transactions contemplated hereby. 

        (d)    Waivers, etc.    No failure or delay on the part of either party (or the intended third-party beneficiaries
referred to herein) in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No modification or waiver of any provision of this
Agreement nor consent to any departure therefrom shall in any event be effective unless the same shall be in writing and signed by an authorized officer of each of the parties, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given. 

        (e)    Entire Agreement.    This Agreement contains the final and complete understanding of the parties with respect
to its subject matter. This Agreement supersedes all prior agreements and understandings between the parties, whether written or oral, with respect to the subject matter hereof. The paragraph headings
contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning or interpretation of this Agreement. 

        (f)    Counterparts.    For the convenience of the parties, this Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original but all of which together shall be one and the same instrument. 

        (g)    Amendment.    This Agreement may be amended only by a written instrument duly executed by an authorized officer
of each of the parties. 

        (h)    Notices.    Unless expressly provided herein, all notices, claims, certificates, requests, demands and other
communications hereunder shall be in writing and shall be deemed to be duly given (i) when personally delivered, (ii) if mailed registered or certified mail, postage prepaid, return
receipt requested,
on the date the return receipt is executed or the letter refused by the addressee or its agent or (iii) if sent by overnight courier which delivers upon the signed receipt of the addressee, on
the date the receipt acknowledgment is executed or refused by the addressee or its agent: 

	(iv)
	if
to Code, to 

Code,
Hennessy & Simmons II, L.P.

c/o Code Hennessy & Simmons LLC

10 South Wacker Drive

Chicago, Illinois 60606

Attention:    Peter Gotsch 

11

 

	(v)
	if
to the Company, to 

Houston
Wire & Cable Company

10201 North Loop East

Houston, Texas 77029

Attention:    Chief Financial Officer 

	(vi)
	if
to a Holder of Registrable Securities, to the name and address as the same appear in the security transfer books of the Company or such other address as either party (or other
Holders of Registrable Securities) may, from time to time, designate in a written notice in a like manner. 

        (i)    Governing Law.    THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS. 

        (j)    Assignment.    Except as provided herein, the parties may not assign their rights under this Agreement. The
Company may not delegate its obligations under this Agreement. 

12

 

        IN
WITNESS WHEREOF, Code and the Company have caused this Agreement to be duly executed by their authorized representative as of the date first above written. 

	 	 	CODE, HENNESSY & SIMMONS II, L.P.
	

 	
 	

By:	
 	

CHS Management II, L.P., General Partner
	

 	
 	

 	
 	

By:	
 	

Code, Hennessy & Simmons, Inc.,

General Partner
	

 	
 	

 	
 	

 	
 	

By:	

	

 	
 	

HOUSTON WIRE & CABLE COMPANY
	

 	
 	

By:	
 	

13

QuickLinks

Exhibit 10.1QuickLinks
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Exhibit 10.2    
    

HWC HOLDING CORPORATION 2000 STOCK PLAN  

	1.
	Purpose.
The purpose of this HWC Holding Corporation 2000 Stock Plan ("Plan") is to attract and retain outstanding individuals as key employees and
directors of Houston Wire & Cable Company ("HWC") a Delaware corporation and a subsidiary of HWC Holding Corporation ("Holding"), and its subsidiaries and affiliates (Holding and its
subsidiaries, collectively or individually, "Employer"), and to provide incentives for such key employees and directors to expand and improve the profits and achieve the objectives of the Employer by
providing to such individuals opportunities to acquire shares of Common Stock ($.001 par value as of the date hereof) of Holding ("Shares") through awards and the exercise of options and thereby
provide such individuals with a greater proprietary interest in and closer identity with Holding and its financial success (awards of Shares under the Plan, collectively or individually, "Awards").
Options granted under this Plan may be either nonqualified stock options or incentive stock options ("Incentive Options") (nonqualified stock options and Incentive Options being referred to herein,
collectively or individually, as "Options"). Options granted under this Plan and designated as Inventive Options by the Committee (as herein defined) are intended to be "incentive stock options"
within the meaning of that term in section 422 of the Internal Revenue Code of 1986, as amended ("Code"). The provisions of this Plan with respect to Incentive Options and the terms and
conditions of each Incentive Option granted hereunder shall be interpreted in a manner consistent with Code Section 422 and all valid regulations issued thereunder. Incentive Options may be
granted under the Plan to directors, except to those directors who are also employees of the Employer at the time of the grant.

	2.
	Administration.
This Plan will be administered by the Board of Directors of Holding (the "Board") or a committee thereof designated by the Board (the Board
or such committee hereinafter referred to as the "Committee"). The Committee shall interpret the Plan and shall prescribe, amend and rescind rules and regulations relating thereto and make all other
determinations necessary or advisable for the administration of the Plan. Any such action shall be final and conclusive on all persons having any interest in the Awards, Options or Shares to which
such action relates. A majority of the members of the Committee shall constitute a quorum and all determinations of the Committee shall be made by a majority of its members. Any determination of the
Committee under this Plan may be made without notice of meeting of the Committee by a unanimous written consent of the Committee. The Committee shall determine, within the limits of the express
provisions of this Plan, those key employees and directors to whom, and the time or times at which, Awards and Options shall be granted to such key employees or directors. The Committee shall
determine the number of Shares to be subject to each Award and Option, whether an Option will be a nonqualified stock option or an Incentive Option, the duration of each Option, the time or times
within which (during the term of the Option) all or portions of each Option may be exercised, the restrictions applicable to each Award and Option, and whether cash, Shares or other property may be
accepted in full or partial payment upon exercise of an Option. In making such determinations, the Committee may take into account the nature of the services rendered by the Participants (as herein
defined), their present and potential contributions to the Employer's success and such other factors as the Committee in its discretion shall deem relevant.

	3.
	Participants.
The "Participants" in the Plan will consist of such key employees and directors of the Employer as the Committee in its sole discretion from
time to time designates within the limits of this Plan. The Committee's designation of a Participant at any time shall not require the Committee to designate such person at any other time. The
Committee shall consider such factors as it deems pertinent in selecting Participants and in determining the terms of their respective Awards and Options, including without limitation: (i) the
financial condition of the Employer, (ii) the anticipated profits of the current or future years, (iii) the contributions of Participants to the profitability and the development of the
Employer, both present and future and (iv) other compensation provided to Participants. 

 
	4.
	Terms
and Conditions of Awards. Awards granted under this Plan shall be in such form and upon such terms and conditions as the Committee shall from time to
time determine, subject to the provisions of this Plan. Awards may be subject to other provisions (whether or not applicable to the Awards granted to any other Participant) as the Committee, in its
sole discretion determines appropriate, including, without limitation, restrictions on resale or other disposition, vesting schedules with respect to the ownership of Shares, such provisions as may be
appropriate to comply with federal or state securities laws and stock exchange requirements and undertakings or conditions as to the Participant's employment, in addition to those specifically
provided for under this Plan.

	5.
	Terms
and Conditions of Options. The Options granted under this Plan shall be in such form and upon such terms and conditions as the Committee shall from
time to time determine, subject to the provisions of this Plan, including the following:

	a.
	Option
Price 

The
Option price shall be established by the Committee at the time such Option is granted. In the case of an Incentive Option granted to a Participant who at the time of grant owns (directly or
indirectly) stock of Holding or of its parent or its subsidiaries possessing more than Ten Percent (10%) of the total combined voting power of all classes of stock of such corporations ("10% Owner"),
the Option price shall be at least One Hundred Ten Percent (110%) of such fair market value of the Shares subject to such Incentive Option at the time such Incentive Option is granted. 

	b.
	Option
Term 

Each
Option granted under this Plan shall be for such period as the Committee shall determine, which period may include, without limitation, early termination of the Option upon consummation of a
merger involving Holding or a sale of a substantial portion of Holding's Common Stock, or the Participant's termination of employment or cessation as a director. No Incentive Option, however, may be
for a period more than ten (10) years from the date the Incentive Option is granted; provided, however, for a 10% Owner, no Incentive Option may be for a period more than five (5) years
from the date the Incentive Option is granted. Notwithstanding anything herein to the contrary, in no event will a Participant who ceases to be employed by the Employer for any reason have the right
to exercise his or her Options at any time following the date which is thirty (30) days after the date of termination of such Participant's employment with Employer, provided, however, that a
Participant who ceases to be employed by the Employer because of death or disability shall have ninety (90) days after the date of such termination of employment with the Employer to exercise
his or her Options. Options which are not exercised by a Participant (or his representative) on or before the date which is thirty (30) days after the date of termination of Participant's
employment with Employer (or the date which is ninety (90) days following the date of termination of such Participant's employment because of death or disability) shall automatically expire and
be null and void as of the close of regular business hours at Holding's principal office on such thirtieth (30th) or ninetieth (90th) day following such termination, as the
case may be. 

	c.
	Method
of Exercise 

Options
may be exercised by giving written notice to the Treasurer of Holding, stating the number of Shares with respect to which the Option is being exercised and tendering payment therefor. In the
discretion of the Committee, payment for Shares may be made in cash, other Shares, retention of Shares which would otherwise be issued upon Option exercise, a combination of the foregoing or by any
other means which the Committee 

2

 

determines.
Upon receipt of the payment, Holding shall deliver to the person exercising such Option a certificate or certificates for such Shares. It shall be a condition to the performance of
Holding's obligation to issue or transfer Shares upon exercise of an Option that the person exercising the Option pay, or make provision satisfactory to the Employer for the payment of, any taxes
(other than stock transfer taxes) which the Employer is obligated to withhold or collect with respect to the issue or transfer of Shares upon such exercise. 

The
Committee may establish a program through which Participants in the Plan may borrow funds with which to purchase Shares pursuant to the exercise of an Option. Eligibility of any Participant for
such borrowing will be determined solely at the discretion of the Committee. Any such loan shall bear interest at a rate determined by the Committee. 

The
Committee may determine to grant additional options to those Participants in the Plan who exercise their Options with Shares. 

	d.
	Value
of Shares 

The
aggregate fair market value (determined at the time the Incentive Options are granted) of the Shares with respect to which Incentive Options are exercisable for the first time by a Participant
during any calendar year shall not exceed one hundred thousand dollars ($100,000). 

Options
may be subject to other provisions (whether or not applicable to the Options granted to any other Participant) as the Committee, in its sole discretion determines appropriate, including,
without limitation, restrictions on resale or other disposition, installment exercise limitations, such provisions as may be appropriate to comply with federal or state securities laws and stock
exchange requirements and undertakings or conditions as to the Participant's employment, in addition to those specifically provided for under this Plan. 

	6.
	Shares.
The total number of Shares allocated to this Plan and available to designated Participants under this Plan is ONE HUNDRED THOUSAND (100,000)
Shares, except as such number of Shares shall be adjusted in accordance with the provisions of Section 9. The maximum number of Shares available to any one Participant under this Plan through
Awards and Options is TWENTY-FIVE THOUSAND (25,000) Shares in any one calendar year. Each Award and Option when granted shall state the number of Shares to which it pertains. Such Shares
may be either authorized but unissued Shares or treasury Shares. If any Option granted under this Plan expires unexercised, or is terminated or ceases to be exercisable for any other reason without
having been fully exercised prior to the end of the period during which Options may be granted under this Plan, or if any Option is canceled, the Shares theretofore subject to such Option or to the
unexercised portion of such Option shall again become available for new Awards and Options to be granted under this Plan to any eligible person (including the holder of such former Option). Shares
reacquired or Shares which were never issued due to a forfeiture under any Award shall again become available for new Awards and Options to be granted under this Plan to any eligible person (including
the holder of each former Award) to the extent permitted by Rule 16b-3 promulgated under Section 16 of the Securities Exchange Act of 1934, as amended ("Exchange Act") or any
successor provision ("Rule 16b-3").

	7.
	Notices.

	a.
	Awards 

Awards
granted pursuant to this Plan shall be authorized by the Committee and shall be evidenced by notices ("Award Notices") in such form as the Committee shall from 

3

 

time
to time determine. Such Award Notices shall state: (i) the number of Shares awarded, (ii) the restrictions applicable to the Shares awarded and (iii) such other information
as the Committee deems appropriate or necessary. The terms and conditions of each Award Notice must be consistent with the provisions of this Plan and will be applicable only to the Award that it
announces. 

	b.
	Options

Options
granted pursuant to this Plan shall be authorized by the Committee and shall be evidenced by notices ("Option Notices") in such form as the Committee shall from time to time determine. Such
Option Notices shall state: (i) the number of Shares with respect to which the Option is granted, (ii) the type of Option—nonqualified stock option or Incentive Option,
(iii) the Option price, (iv) the Option exercise and vesting schedule, (v) the Option term, (vi) the method of exercising such Option and (vii) such other
information as the Committee deems appropriate or necessary. The terms and conditions of each Option Notice must be consistent with the provisions of this Plan and will be applicable only to the grant
that it announces. 

	8.
	Non-Assignability
of Options. Options granted to a Participant pursuant to this Plan shall be exercisable during the lifetime of a Participant
only by the Participant provided, however, that the Committee in its discretion may permit Participants in the Plan to transfer nonqualified stock options to (i) family members,
(ii) custodianships under the Uniform Transfers to Minors Act or any similar statute, (iii) trusts for the benefit of any family member, (iv) trusts by such Participant for the
Participant's primary benefit and (v) upon termination of a custodianship under the Uniform Transfers to Minors Act or similar statute or the termination of a trust, by the custodian or trustee
thereof, to the person or persons who, in accordance with the terms of such custodianship or trust are entitled to receive Options held in custody or trust.

	9.
	Adjustments.

	a.
	Capital
Adjustments 

If
the Shares should, as a result of any stock dividend, stock split, other subdivision or combination of Shares, or any reclassification, recapitalization or otherwise, be increased or decreased, the
number of Shares covered by each outstanding Award and Option, the Option price under each outstanding Option and the total number of Shares reserved for issuance under this Plan may be adjusted to
prevent the dilution or enlargement of rights in the manner as determined by the Committee in its sole discretion to reflect such action. Any new Shares or other securities issued with respect to
Shares shall be deemed Shares. 

	b.
	Sale
or Reorganization 

In
the event Holding is merged or consolidated with another corporation, or in the event the property or stock of Holding is acquired by another corporation or entity, or in the event of a
reorganization or liquidation of Holding, or in the event of any extraordinary transaction (including a sale of assets or stock) involving the Company, its subsidiaries, or their respective assets
(each of the above being an "Extraordinary Transaction"), the board of directors of any corporation assuming the obligations of Holding hereunder or the Committee, as applicable, shall have the right
to provide for the continuation of Awards or Options granted under the Plan or for other adjustments as determined by the board of directors of such corporation assuming the obligations of Holding
hereunder or the Committee, as applicable, in its sole discretion. Without limiting the foregoing, in the event of an Extraordinary Transaction, the board of directors of any corporation assuming the
obligations of Holding hereunder or the Committee, as applicable, shall have the right 

4

 

to
require (i) that a cash payment in lieu of the Option be paid in an amount equal to the difference between the fair market value of the Shares, as determined by the board of directors of any
corporation assuming the obligations of Holding hereunder or the Committee, as applicable, and the Option price described in the Option grant; (ii) that the Option be converted into other
property or (iii) the exercise of the Option within a specified period following written notice and if the Option is not exercised in accordance therewith, such Option will be terminated
without any further rights thereunder. 

	10.
	Legal
and Other Requirements. Each Award and Option granted under this Plan shall be subject to the requirement that if at any time the Committee shall
determine, in its discretion, that the listing, registration or qualification of the Shares issuable or transferable upon the Award or exercise of the Option upon any securities exchange or under any
state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with the granting of such Award or Option, or the
issuance, transfer or purchase of Shares thereunder, such Award shall not be made and 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 Committee. Holding shall not be obligated to sell or issue any Shares in any manner in contravention of the
Securities Act of 1933, as amended, or any state securities law. Each Participant shall agree to such terms and conditions in connection with an Award or the exercise of an Option, including
restrictions on the disposition of Shares acquired pursuant to the Award or upon exercise of the Option, as the Committee may deem appropriate. Shares acquired pursuant to an Award or upon exercise of
an Option may be legended as the Committee shall deem appropriate to reflect the restrictions imposed by the Committee, this Plan or by securities laws generally. A Participant shall have no rights as
a stockholder with respect to any Shares covered by Options granted to or Options exercised by the Participant until the date of delivery of a stock certificate to the Participant for such Shares. No
adjustment with respect to any Shares covered by Options other than pursuant to Section 9 hereof shall be made for dividends or other rights for which the record date is prior to the date such
stock certificate is delivered. To the extent deemed appropriate by the Committee, this Plan is intended to comply with Rule 16b-3 with respect to persons subject to
Section 16 of the Exchange Act and any provision which would prevent compliance with Rule 16b-3 shall be deemed invalid to the extent permitted by law and deemed appropriate
by the Committee.

	11.
	Restriction
on Sale or Shares. Without prior written notice to Holding, no Shares acquired by a Participant upon exercise of an Incentive Option granted
hereunder shall be disposed of by the Participant within two (2) years from the date such Incentive Option was granted, nor within one (1) year after the transfer of such Shares to the
Participant; provided, however, that a transfer to a trustee, receiver, or other fiduciary in any insolvency proceeding, as described in section 422(c)(3) of the Code, shall not be deemed to be
such a disposition.

	12.
	Tax
Withholding. The Employer shall comply with the obligations imposed on the Employer under applicable tax withholding laws, if any, with respect to
Awards and Options granted hereunder, and shall be entitled to do any act or thing to effectuate any such required compliance, including, without limitation, withholding from amounts payable by the
Employer to a Participant and including making demand on a Participant for the amounts required to be withheld. If the Committee so permits, a Participant, or upon the Participant's death, the
Participant's beneficiary, may satisfy, in whole or in part, the obligation to pay the Employer any amount required to be withheld under the applicable federal, state and local income tax laws in
connection with an Award or exercise of an Option under this Plan by either: (a) having the Employer withhold from the Shares to be acquired pursuant to the Award or upon the exercise of the
Option, or (b) delivering to the Employer either previously acquired Shares or Shares acquired pursuant to the Award or 

5

 

upon
the exercise of the Option which the Participant or beneficiary was unconditionally obligated to deliver to the Employer. The Shares withheld or delivered shall be valued at their fair market
value as of the date the amount of tax to be withheld is determined. The fair market value of Shares shall be determined in accordance with procedures established by the Committee. Any amounts
required to be withheld in excess of the value of Shares withheld or delivered shall be paid in cash or withheld from other compensation paid by Employer. 

	13.
	No
Contract of Employment. Neither the adoption of this Plan nor the grant of any Awards or Options, nor ownership of Shares shall be deemed to obligate
the Employer to continue the appointment, employment or engagement of any eligible person for any particular period.

	14.
	Indemnification
of Committee. The members of the Committee shall be indemnified by Holding to the fullest extent permitted by Delaware law, Holding's
certificate of incorporation and Holding's by-laws.

	15.
	Amendment
and Termination of Plan. Holding may amend this Plan from time to time or terminate this Plan at any time, but no such action shall reduce the
number of Shares subject to the then outstanding Awards or Options granted to any Participant or adversely to the Participant change the terms and conditions of outstanding Awards or Options without
the Participant's consent; provided, however, that, to the extent deemed appropriate by the Committee, shareholder approval shall be necessary to adopt any amendment if the adoption of such amendment
without shareholder approval would cause this Plan to no longer comply with Rule 16b-3 or any successor rule or regulatory requirement. No Award or Option may be granted after ten
(10) years from the original effective date of adoption of this Plan.

	16.
	Delaware
Law to Govern. This Plan shall be governed by and construed in accordance with the laws of the State of Delaware.

	17.
	Effective
Date of Plan. The Plan is effective on February 17, 2000. 

6

QuickLinks

Exhibit 10.2

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