Document:

Exhibit 10.51

 

2005 AMENDED AND RESTATED

STOCK PURCHASE AND OPTION PLAN

FOR ROCKWOOD HOLDINGS, INC. AND SUBSIDIARIES

 

1.                                       Purpose of Plan

 

This 2005 Amended and Restated Stock Purchase
and Option Plan for Rockwood Holdings, Inc. and Subsidiaries (formerly the
Amended and Restated 2003 Stock Purchase and Option Plan for Rockwood Holdings,
Inc., which was formerly the 2000 Stock Purchase and Option Plan for K-L
Holdings, Inc. and Subsidiaries) (the “Plan”) is designed:

 

(a)           to promote the long term financial interests and growth of
Rockwood Holdings, Inc. (the “Company”) and its subsidiaries by attracting and
retaining management personnel with the training, experience and ability to
enable them to make a substantial contribution to the success of the Company’s
business;

 

(b)            to motivate management personnel by means of growth-related
incentives to achieve long range goals; and

 

(c)            to further the identity of interests of participants with
those of the shareholders of the Company through opportunities for increased
stock, or stock-based, ownership in the Company.

 

2.                                       Definitions

 

As used in the Plan, the following words
shall have the following meanings:

 

(a)           “Board of Directors” means the Board of Directors of the
Company.

 

(b)           “Committee” means the Compensation Committee of the Board of
Directors (or, if no such committee is appointed, the Board of Directors).

 

(c)           “Common Stock” or “Share” means common stock of the Company
which may be authorized but unissued, or issued and reacquired.

 

(d)           “Director” means any member of the Board of Directors.

 

(e)           “Employee” means a person, including an officer, in the
regular full-time employment of the Company or one of its Subsidiaries.

 

(f)            “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

(g)           “Grant” means an award made to a Participant pursuant to the
Plan and described in Section 5, including, without limitation, an award of a
Stock Option, Restricted Stock, Purchase Stock, or Other Stock Based Grant or
any combination of the foregoing.

 

(h)           “Grant Agreement” means an agreement between the Company and
a Participant that sets forth the terms, conditions and limitations applicable
to a Grant.

 

 

(i)            “Participant” means an Employee,
Director, consultant or other person having a relationship with the Company or
one of its Subsidiaries, to whom one or more Grants have been made and such
Grants have not all been forfeited or terminated under the Plan.

 

(j)            “Stock-Based Grants” means the
collective reference to the grant of Purchase Stock, Restricted Stock and Other
Stock Based Grants described in Section 5.

 

(k)           “Stock Options” means options to purchase Common Stock,
which may or may not be incentive stock options (“Incentive Stock Options”)
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

(l)            “Subsidiary” means any entity
other than the Company in an unbroken chain of entities beginning with the
Company if each of the entities other than the last entity in the unbroken
chain owns 50% or more of the voting stock or other voting interests in one of
the other entities in such chain.

 

3.                                       Administration of Plan

 

(a)           The Plan shall be administered by the Committee.  All of the members of the Committee and any
other Directors shall be eligible to be selected for Grants under the Plan; provided, however, that the members of the
Committee shall qualify to administer the Plan for purposes of Rule 16b-3 (and
any other applicable rule) promulgated under Section 16(b) of the Exchange Act
to the extent that the Company is subject to such rule.  The Committee may adopt its own rules of
procedure, and the action of a majority of the Committee, taken at a meeting or
taken without a meeting by a writing signed by such majority, shall constitute
action by the Committee.  The Committee
shall have the power and authority to administer, construe and interpret the
Plan, to make rules for carrying it out and to make changes in such rules.  Any such interpretations, rules, and
administration shall be consistent with the basic purposes of the Plan.

 

(b)           The Committee may delegate to the Chief Executive Officer
and to other senior officers of the Company its duties under the Plan subject
to such conditions and limitations as the Committee shall prescribe except that
only the Committee may designate and make Grants to Participants who are
subject to Section 16 of the Exchange Act.

 

(c)           The Committee may employ attorneys, consultants,
accountants, appraisers, brokers or other persons.  The Committee, the Company, and the officers
and Directors of the Company shall be entitled to rely upon the advice,
opinions or valuations of any such persons. 
All actions taken and all interpretations and determinations made by the
Committee in good faith shall be final and binding upon all Participants, the Company
and all other interested persons.  No
member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or
the Grants, and all members of the Committee shall be fully protected by the
Company with respect to any such action, determination or interpretation.

 

4.                                       Eligibility

 

The Committee may from time to time make
Grants under the Plan to such Employees, Directors or other persons having a
relationship with the Company or any of its

 

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Subsidiaries, and in such form and having
such terms, conditions and limitations as the Committee may determine.  Grants may be granted singly, in combination
or in tandem.  The terms, conditions and
limitations of each Grant under the Plan shall be set forth in a Grant
Agreement, in a form approved by the Committee, consistent, however, with the
terms of the Plan.

 

5.                                       Grants

 

From time to time, the Committee will
determine the forms and amounts of Grants for Participants.  Such Grants may take the following forms in
the Committee’s sole discretion:

 

(a)           Stock Options - These are options to purchase
Common Stock, which may or may not be Incentive Stock Options and shall have an
exercise price at least equal to the fair market value of one share of Common
Stock on the date of Grant (or, if the person to whom an Incentive Stock Option
is being granted owns Common Stock representing more than 10 percent of the
voting power of all classes of Company equity, the exercise price shall be at
least equal to 110 percent of the fair market value of one share of Common
Stock on the date of Grant). At the time of the Grant the Committee shall
determine, and shall have contained in the Grant Agreement or other Plan rules,
the option exercise period, the option price, and such other conditions or
restrictions on the grant or exercise of the option as the Committee deems
appropriate, which may include the requirement that the grant of options is
predicated on the acquisition of Purchase Shares under Section 5(c) by the
Participant or as may be required pursuant to applicable law, if such options
shall be Incentive Stock Options. 
Payment of the option exercise price shall be made in cash or in shares
of Common Stock (provided,
that such Shares have been held by the Participant for not less than six months
(or such other period as established by the Committee from time to time)), or a
combination thereof, in accordance with the terms of the Plan, the Grant
Agreement and any applicable guidelines of the Committee in effect at the time.

 

(b)           Restricted Stock - Restricted Stock is Common
Stock delivered to a Participant with or without payment of consideration with
restrictions or conditions on the Participant’s right to transfer or sell such
stock.  The number of shares of
Restricted Stock and the restrictions or conditions on such shares shall be as
the Committee determines, in the Grant Agreement or by other Plan rules, and
the certificate for the Restricted Stock shall bear evidence of such
restrictions or conditions.

 

(c)           Purchase Stock - Purchase Stock refers to
shares of Common Stock offered to a Participant at such price as determined by
the Committee, the acquisition of which may make him eligible to receive under
the Plan, among other things, Stock Options.

 

(d)           Other Stock-Based Grants - The Committee may make other
Grants under the Plan pursuant to which shares of Common Stock or other equity
securities of the Company are or may in the future be acquired, or Grants
denominated in stock units, including ones valued using measures other than
market value of the Common Stock.  Other
Stock-Based Grants may be granted with or without consideration.

 

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6.                                       Limitations and Conditions

 

(a)           Subject to Section 8 hereof, the number of Shares available
for Grants under this Plan shall be 10,000,000 shares of the authorized Common
Stock as of the effective date of the Plan. 
The number of Shares subject to Grants made under this Plan to any one
Participant in any one calendar year shall not be more than $20 million worth
of the Shares.  Unless restricted by
applicable law, Shares related to Grants that are forfeited, terminated,
cancelled or expire unexercised, shall immediately become available for new
Grants.

 

(b)           No Grants shall be made under the Plan beyond ten years
after the effective date of the Plan, but the terms of Grants made on or before
the expiration of the Plan may extend beyond such expiration.  At the time a Grant is made or amended or the
terms or conditions of a Grant are changed, the Committee may provide for
limitations or conditions on such Grant.

 

(c)           Nothing contained herein shall affect the right of the
Company to terminate any Participant’s employment at any time or for any
reason.

 

(d)           Deferrals of Grant payouts may be provided for, at the sole
discretion of the Committee, in the Grant Agreements, but only to the extent
such deferral satisfies the requirements of Section 409A of the Code.

 

(e)           Except as otherwise prescribed by the Committee, the amounts
of the Grants for any employee of a Subsidiary, along with interest, dividend,
and other expenses accrued on deferred Grants shall be charged to the
Participant’s employer during the period for which the Grant is made.  If the Participant is employed by more than
one Subsidiary or by both the Company and a Subsidiary during the period for
which the Grant is made, the Participant’s Grant and related expenses will be
allocated between the companies employing the Participant in a manner
prescribed by the Committee.

 

(f)            Other than as specifically
provided pursuant to a Grant Agreement or other related agreement between a
Participant and the Company, no benefit under the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to do so shall be void.  No such benefit shall, prior to receipt
thereof by the Participant, be in any manner liable for or subject to the
debts, contracts, liabilities, engagements, or torts of the Participant.

 

(g)           Participants shall not be, and shall not have any of the
rights or privileges of, shareholders of the Company in respect of any Shares
purchasable in connection with any Grant unless and until certificates
representing any such Shares have been issued by the Company to (or book entry
representing such Shares has been made and such Shares have been deposited with
the appropriate registered book – entry custodian for the benefit of) such
Participants.

 

(h)           No election as to benefits or exercise of Stock Options or
other rights may be made during a Participant’s lifetime by anyone other than
the Participant except by a legal representative appointed for or by the
Participant.

 

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(i)            Absent express provisions to the
contrary, any grant under this Plan shall not be deemed compensation for
purposes of computing benefits or contributions under any retirement plan of
the Company or its Subsidiaries and shall not affect any benefits under any
other benefit plan of any kind now or subsequently in effect under which the
availability or amount of benefits is related to level of compensation.  This Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended.

 

(j)            Unless the Committee determines
otherwise, no benefit or promise under the Plan shall be secured by any
specific assets of the Company or any of its Subsidiaries, nor shall any assets
of the Company or any of its Subsidiaries be designated as attributable or
allocated to the satisfaction of the Company’s obligations under the Plan.

 

7.                                       Transfers and Leaves of Absence

 

For purposes of the Plan, unless the
Committee determines otherwise:  (a)  a transfer of a Participant’s employment
without an intervening period of separation among the Company and any
Subsidiary shall not be deemed a termination of employment, and (b) a
Participant who is granted in writing a leave of absence shall be deemed to
have remained in the employ of the Company during such leave of absence.

 

8.                                       Adjustments

 

In the event of any change in the outstanding
Common Stock by reason of a stock split, spin-off, stock dividend, stock
combination or reclassification, recapitalization or merger, change of control,
or similar event, the Committee shall adjust appropriately the number of Shares
subject to the Plan and available for or covered by Grants and Share prices
related to outstanding Grants to the extent necessary, and may make such other
revisions to outstanding Grants as it deems are equitably required including,
without limitation, in an event that is not a change of control, providing for
the payment of a dividend in respect of the Shares subject to any outstanding
Grants, in all events in order to allow Participants to participate in such
event in an equitable manner.

 

9.                                       Merger,
Consolidation, Exchange, Acquisition, Liquidation or Dissolution

 

In its absolute discretion, and on such terms
and conditions as it deems appropriate, coincident with or after the grant of
any Stock Option or any Stock-Based Grant, the Committee may provide that such
Stock Option or Stock-Based Grant cannot be exercised after the merger or
consolidation of the Company into another company, the exchange of all or
substantially all of the assets of the Company for the securities of another
company, the acquisition by another company of 80% or more of the Company’s
then outstanding shares of voting stock or the recapitalization,
reclassification, liquidation or dissolution of the Company, and if the
Committee so provides, it shall, on such terms and conditions as it deems
appropriate in its absolute discretion, also provide, either by the terms of
such Stock Option or Stock-Based Grant or by a resolution adopted prior to the
occurrence of such merger, consolidation, exchange, acquisition,
recapitalization, reclassification, liquidation or dissolution, that, for some
period of time prior to such event, such Stock Option or Stock-Based Grant
shall be exercisable as to all shares subject thereto, notwithstanding anything
to the contrary herein (but subject to the provisions of Section 6(b) and that,
upon the occurrence of such event, such Stock Option or

 

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Stock-Based Grant shall terminate and be of
no further force or effect; provided, however, that the Committee may also
provide, in its absolute discretion, that even if the Stock Option or
Stock-Based Grant shall remain exercisable after any such event, from and after
such event, any such Stock Option or Stock-Based Grant shall be exercisable
only for the kind and amount of securities and/or other property, or the cash
equivalent thereof, receivable as a result of such event by the holder of a
number of shares of stock for which such Stock Option or Stock-Based Grant
could have been exercised immediately prior to such event.

 

10.                                 Amendment and Termination

 

The Committee shall have the authority to
make such amendments to any terms and conditions applicable to outstanding
Grants as are consistent with this Plan provided that, except for adjustments
under Section 8 or 9 hereof, (a) no such action shall modify such Grant in a
manner adverse to the Participant without the Participant’s consent except as
such modification is provided for or contemplated in the terms of the Grant and
(b) no such action may provide for an increase in the number of Shares to be
made available for issuance under this Plan without obtaining approval by the
Shareholders of such increase.  The Board
of Directors may amend, suspend or terminate the Plan.

 

11.                                 Foreign Options and Rights

 

The Committee may make Grants to Employees
who are subject to the laws of nations other than the United States, which
Grants may have terms and conditions that differ from the terms thereof as
provided elsewhere in the Plan for the purpose of complying with foreign laws.

 

12.                                 Withholding Taxes

 

The Company shall have the right to deduct
from any cash payment made under the Plan any federal, state or local income or
other taxes required by law to be withheld with respect to such payment.  It shall be a condition to the obligation of
the Company to deliver shares upon the exercise of an Option, upon delivery of
Restricted Stock or upon exercise, settlement or payment of any Other
Stock-Based Grant that the Participant pay to the Company such amount as may be
requested by the Company for the purpose of satisfying any liability for such
withholding taxes.  Any Grant Agreement
may provide that the Participant may elect, in accordance with any conditions
set forth in such Grant Agreement, to pay a portion or all of such minimum
withholding taxes in shares of Common Stock.

 

13.                                 Effective Date and Termination
Dates

 

The Plan shall be effective on and as of the
date of its original approval by the Board of Directors of the Company and
shall be approved by a majority of the shareholders of the Company, and shall
terminate ten years thereafter, subject to earlier termination by the Board of
Directors pursuant to Sections 9 and 10.

 

Effective Date of adoption of Plan:  November 20, 2000.

Effective Date of amendment and restatement
of Plan:  June 9, 2003

 

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Effective Date of amendment of Plan:  September 1, 2004

Effective Date of second amendment of
Plan:  July 18, 2005

Effective Date of amendment and restatement
of Plan:  July 29, 2005

 

7Exhibit 10.52

 

SHORT-TERM INCENTIVE PLAN

FOR ROCKWOOD HOLDINGS, INC. AND SUBSIDIARIES

 

1.             Purpose
of the Plan

 

The
purpose of the Plan is to enable the Company and its Subsidiaries to attract,
retain, motivate and reward executive officers and key employees by providing
them with the opportunity to earn competitive compensation directly linked to
the Company’s performance.

 

2.             Definitions

 

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

 

(a)           “Board”
shall mean the Board of Directors of the Company.

 

(b)           “Code”
shall mean the Internal Revenue Code of 1986, as amended, or any successor
thereto.

 

(c)           “Committee”
shall mean the Compensation Committee of the Board (or such other committee or
subcommittee thereof as the Board may designate).

 

(d)           “Company”
shall mean Rockwood Holdings, Inc., a Delaware corporation.

 

(e)           “Covered
Employee” shall have the meaning set forth in Section 162(m) of the Code.

 

(f)            “Participant”
shall mean each executive officer of the Company and other key employee of the
Company or a Subsidiary whom the Committee designates as a participant under
the Plan.

 

(g)           “Performance
Period” shall mean each fiscal year or multi-year cycle as determined by the
Committee.

 

(h)           “Plan”
shall mean the Rockwood Holdings, Inc. Short-Term Incentive Plan, as set
forth herein and as may be amended from time to time.

 

(i)            “Share”
shall mean a share of common stock of the Company.

 

(j)            “Subsidiary”
shall mean a subsidiary corporation, as defined in Section 424(f) of
the Code (or any successor section thereto).

 

3.             Administration

 

The
Plan shall be administered and interpreted by the Committee; provided, however,
that the Board may, in its sole discretion, take any action designated to the
Committee under this Plan as it may deem necessary; provided that, to the
extent Section 162(m) of the Code is applicable to the Company and the
Plan, in no event shall the Plan be administered or interpreted in a manner
which would cause any award intended to be qualified as “performance-based

 

 

compensation” under Section 162(m)
of the Code to fail to so qualify. Any determination made by the Committee
under the Plan shall be final and conclusive. The Committee may employ such
legal counsel, consultants and agents (including counsel or agents who are
employees of the Company or a Subsidiary) as it may deem desirable for the
administration of the Plan and may rely upon any opinion received from any such
counsel or consultant or agent and any computation received from such consultant
or agent. All expenses incurred in the administration of the Plan, including,
without limitation, for the engagement of any counsel, consultant or agent,
shall be paid by the Company. No member or former member of the Board or the
Committee shall be liable for any act, omission, interpretation, construction
or determination made in connection with the Plan other than as a result of
such individual’s willful misconduct. The Committee may delegate its authority
under this Plan; provided that, to the extent Section 162(m) of the Code
is applicable to the Company and the Plan, the Committee shall in no event
delegate its authority with respect to the compensation of the Chief Executive
Officer of the Company, the four most highly compensated executive officers (as
determined under Section 162(m) of the Code and regulations thereunder) of
the Company or any other individual whose compensation the Board or Committee
reasonably believes may become subject to Section 162(m) of the Code.

 

4.             Bonuses

 

(a)           Performance
Criteria. No later than 90 days after each Performance Period begins (or
such other date as may be required or permitted under Section 162(m) of
the Code to the extent applicable to the Company and the Plan), the Committee
shall establish the performance objective or objectives that must be satisfied
in order for a Participant to receive a bonus for each such Performance Period.
Notwithstanding the foregoing, with respect to the Performance Period during
which the Effective Date (as defined in Section 6(a)) occurs, the
Committee shall establish the performance objective or objectives that must be
satisfied in order for a Participant to receive a bonus for such Performance
Period by no later than 60 days after the Effective Date. Any such performance
objectives will be based upon the relative or comparative achievement of one or
more of the following criteria, as determined by the Committee: (i) earnings
before or after taxes (including earnings before interest, taxes, depreciation
and amortization or as otherwise calculated under Rockwood Specialties Group, Inc.’s
senior secured credit agreement (as may be amended or refinanced from time to
time)); (ii) net income; (iii) operating income; (iv) earnings
per Share; (v) book value per Share; (vi) return on stockholders’
equity; (vii) expense management; (viii) return on investment; (ix) improvements
in capital structure; (x) profitability of an identifiable business unit or
product; (xi) maintenance or improvement of profit margins; (xii) stock price;
(xiii) market share; (xiv) revenues or sales; (xv) costs; (xvi) cash flow;
(xvii) working capital; (xviii) return on assets; (xix) assets under
management; and (xx) total return. The foregoing criteria may relate to the
Company, one or more of its Subsidiaries or one or more of its 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.

 

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(b)           Target
Incentive Bonuses. No later than 90 days after each Performance Period
begins (or such other date as may be required or permitted under Section 162(m)
of the Code to the extent applicable to the Company and the Plan), the
Committee shall establish target incentive bonuses for each individual
Participant will be eligible to earn in respect of such Performance Period upon
the achievement of the performance objective or objectives established for such
Performance Period. Notwithstanding the foregoing, with respect to the
Performance Period during which the Effective Date occurs, the Committee shall,
to the extent not already established, establish target incentive bonuses for
each individual Participant by no later than 60 days after the Effective Date.

 

(c)           Maximum
Amount Payable. As soon as practicable after the Performance Period ends
but in no event later than the date that is 75 days after the end of the
taxable year in respect of which the applicable bonuses are payable, the
Committee shall determine (i) whether and to what extent any of the
performance objectives established for the relevant Performance Period under Section 4(a) have
been satisfied and (ii) for each Participant who is employed by the
Company or one of its Subsidiaries on the last day of the Performance Period
for which the bonus is payable, the actual bonus to which such Participant
shall be entitled, taking into consideration the extent to which the
performance objectives have been met and such other factors as the Committee
may deem appropriate. Any provision of this Plan notwithstanding, in no event
shall any Participant receive a bonus under this Plan in respect of any fiscal
year of the Company in excess of $10 million.

 

(d)           Negative
Discretion. Notwithstanding anything else contained in Section 4(c) to
the contrary, the Committee shall have the right, in its absolute discretion, (i) to
reduce or eliminate the amount otherwise payable to any Participant under Section 4(c) based
on individual performance or any other factors that the Committee, in its
discretion, shall deem appropriate and (ii) to establish rules or
procedures that have the effect of limiting the amount payable to each
Participant to an amount that is less than the maximum amount otherwise
authorized under Section 4(c).

 

(e)           Death
or Disability. If a Participant dies or becomes disabled prior to the last
day of the Performance Period for which the bonus is payable, such Participant
may receive an annual bonus equal to the bonus otherwise payable to such
Participant based upon actual Company performance for the applicable
Performance Period or, if determined by the Committee, based upon achieving
targeted performance objectives, multiplied by a fraction, the numerator of
which is the number of days that have elapsed during the Performance Period in
which the Participant’s death or disability occurs prior to and including the
date of the Participant’s death or disability and the denominator of which is
the total number of days in the Performance Period or such other amount as the
Committee may deem appropriate.

 

(f)            Other
Termination of Employment. Unless otherwise determined by the Committee and
except as may otherwise be provided in Section 4(e) above, no

 

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bonuses shall be payable under this Plan to
any Participant whose employment terminates prior to the last day of the
Performance Period.

 

5.             Payment

 

(a)           In
General. Except as otherwise provided hereunder, payment of any bonus
amount determined under Section 4 shall be made to each Participant as
soon as practicable after the Committee certifies that one or more of the
applicable performance objectives have been attained or, in the case of any
bonus payable under the provisions of Section 4(d), after the Committee
determines the amount of any such bonus.

 

(b)           Form of
Payment. The Committee shall determine whether any bonus payable under this
Plan is payable in cash, or in restricted stock, restricted stock units, stock
appreciation rights or options (of equivalent value) awarded under the 2005
Amended and Restated Stock Purchase and Option Plan for Rockwood Holdings, Inc.
and Subsidiaries (as amended from time to time), or any combination thereof.

 

6.             General
Provisions

 

(a)           Effectiveness
of the Plan. The Plan shall become effective on the date on which it is
adopted by the Board (the “Effective Date”), subject to the approval of the
stockholders of the Company. The Plan shall expire on the tenth anniversary of
the Effective Date.

 

(b)           Code Section 162(m) Compliance. Notwithstanding anything set
forth in this Plan to the contrary, until such time as the Company is no longer
within the “reliance period” (as such term is defined in Treasury Regulation
1.162-27(f)(2)) (the “Reliance Period”), the Board or the Committee may, but is
not required, to administer and maintain this Plan, and grant target incentive
bonuses, and pay bonuses, under this Plan, to those employees who are Covered
Employees in compliance with the provisions of Section 162(m) of the Code
as the same would apply upon expiration of the Reliance Period.

 

(c)           Amendment
and Termination. The Board or the Committee may at any time amend, suspend,
discontinue or terminate the Plan; provided, however, that no such amendment,
suspension, discontinuance or termination shall adversely affect the rights of
any Participant in respect of any calendar year which has already commenced
and, to the extent Section 162(m) of the Code is applicable to the Company
and the Plan, no such action shall be effective without approval by the
stockholders of the Company to the extent necessary to continue to qualify the
amounts payable hereunder to Covered Employees as under Section 162(m) of
the Code.

 

(d)           Designation
of Beneficiary. Each Participant may designate a beneficiary or
beneficiaries (which beneficiary may be an entity other than a natural Person)
to receive any payments which may be made following the Participant’s death.
Such designation may be changed or canceled at any time without the consent of
any

 

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such beneficiary. Any such designation,
change or cancellation must be made in a form approved by the Committee and
shall not be effective until received by the Committee. If no beneficiary has
been named, or the designated beneficiary or beneficiaries shall have
predeceased the Participant, the beneficiary shall be the Participant’s spouse
or, if no spouse survives the Participant, the Participant’s estate. If a
Participant designates more than one beneficiary, the rights of such
beneficiaries shall be payable in equal shares, unless the Participant has
designated otherwise.

 

(e)           No
Right to Continued Employment or Awards. Nothing in this Plan shall be
construed as conferring upon any Participant any right to continue in the
employment of the Company or any of its Subsidiaries. No Participant shall have
any claim to be granted any award, and there is no obligation for uniformity of
treatment of Participants or beneficiaries. 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 the
Participants are similarly situated).

 

(f)            No
Limitation on Corporate Actions. Nothing contained in the Plan shall be
construed to prevent the Company or any Subsidiary from taking any corporate
action which is deemed by it to be appropriate or in its best interest, whether
or not such action would have an adverse effect on any awards made under the
Plan. No employee, beneficiary or other person shall have any claim against the
Company or any Subsidiary as a result of any such action.

 

(g)           Nonalienation
of Benefits. Except as expressly provided herein, no Participant or beneficiary
shall have the power or right to transfer, anticipate, or otherwise encumber
the Participant’s interest under the Plan. The Company’s obligations under this
Plan are not assignable or transferable except to (i) a corporation which
acquires all or substantially all of the Company’s assets or (ii) any
corporation into which the Company may be merged or consolidated. The
provisions of the Plan shall inure to the benefit of each Participant and the
Participant’s beneficiaries, heirs, executors, administrators or successors in
interest.

 

(h)           Withholding.
A Participant may be required to pay to the Company or any Subsidiary and the
Company or any Subsidiary shall have the right and is hereby authorized to
withhold from any payment due under this Plan or from any compensation or other
amount owing to the Participant, applicable withholding taxes with respect to
any payment under this Plan and to take such action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such
withholding taxes.

 

(i)            Severability.
If any provision of this Plan is held unenforceable, the remainder of the Plan
shall continue in full force and effect without regard to such unenforceable
provision and shall be applied as though the unenforceable provision were not
contained in the Plan.

 

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(j)            Governing
Law. The Plan shall be governed by and construed in accordance with the
laws of the State of New York.

 

(k)           Headings.
Headings are inserted in this Plan for convenience of reference only and are to
be ignored in a construction of the provisions of the Plan.

 

6

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