Document:

exv10w1

EXHIBIT 10.1

FIRST AMENDMENT AND WAIVER TO CREDIT AND SECURITY AGREEMENT

          THIS FIRST AMENDMENT AND WAIVER TO CREDIT AND SECURITY AGREEMENT (“Amendment”) is made as of
this 15th day of March, 2010, by and among WELLS FARGO BANK NATIONAL ASSOCIATION acting
through its Wells Fargo Business Credit operating division (the “Lender”), PROFESSIONAL VETERINARY
PRODUCTS, LTD., a Nebraska corporation (“PVP”), EXACT LOGISTICS, LLC, a Nebraska limited liability
company (“Exact”), PROCONN, LLC, a Nebraska limited liability company (“ProConn”; together with PVP
and Exact, jointly and severally, the “Borrower”). This Amendment amends that certain Credit and
Security Agreement among Borrower and Lender dated January 29, 2010 (as further modified, amended
and restated, the “Credit Agreement”).

PRELIMINARY STATEMENTS

          WHEREAS, an Event of Default has occurred under the Credit Agreement as a result of Borrower’s
failure to achieve for the period of August 1, 2009 through January 31, 2010, Net Income of not
less than the amount required for such period by Section 6.2(a) of the Credit Agreement (the
“Specific Default”).

          WHEREAS, Borrower and Lender desire to modify the Credit Agreement to (i) waive the Specific
Default, (ii) amend the Floating Rate and (iii) further modify the Credit Agreement pursuant to the
terms and conditions set forth herein.

          NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby
acknowledged, the Borrower and Lender hereby modify, amend and supplement the Credit Agreement and
Loan Documents as follows:

AGREEMENT

          1. Recitals. The preliminary statements set forth above are accurate, represent the
intent of the parties hereto and are incorporated herein by reference. Unless otherwise defined in
this Amendment, capitalized terms used herein will have the same meaning in this Amendment as set
forth in the Credit Agreement.

          2. Credit Agreement Modification. Section 2.6(b) of the Credit Agreement is hereby
deleted in its entirety and the following is substituted therefor:

     (b) Margin. Effective as of March 1, 2010, the Margin shall be five and one half
of one percent (5.50%) for Revolving Advances that are Floating Rate Advances.

          3. Waiver of Specific Default. Borrower acknowledges existence of the Specific
Default and upon the effectiveness of this Amendment, Lender hereby waives the Specific Default.
Borrower acknowledges and agrees that Lender is not waiving, and expressly reserves all rights and
remedies in respect of any and all Defaults and/or Events of Default other than the Specific
Default, including but not limited to future breaches of Financial Covenants.

          4. Management Consultant. On or before March 31, 2010, Borrower shall employ a
management consultant (“Consultant”), which Consultant shall be acceptable to Lender in its
reasonable discretion. Borrower shall cooperate with and assist the Consultant and provide the
Consultant such information as is required for the Consultant’s evaluation and assessment of the
business and business plan of the Borrower. The Consultant shall deliver reports to Lender, in a
form, substance and frequency that is

 

 

acceptable to Lender. Until consented to by Lender in writing, Borrower shall not terminate
its employment and use of the Consultant without the Lender’s prior written consent.

          5. Delivery of Financials. On or before April 30, 2010, Borrower shall deliver to
Lender, in a form and substance acceptable to Lender and Consultant in their sole and absolute
discretion (i) Borrower’s projected balance sheets, income statements, statements of cash flow and
projected Availability for each remaining month of its fiscal year ending July 31, 2010 and for
each month of its fiscal quarter ending October 31, 2010, each in reasonable detail and otherwise
in conformance with Section 6.1(d) of the Credit Agreement and (ii) Borrower’s 13-week cash
flow budget for the then subsequent 13 week period.

          6. Amendment and Waiver Fee. Borrower will pay to Lender an amendment and waiver fee
in the amount of $63,000.00 (the “Amendment Fee”), which fee will be fully earned, non-refundable
and due on the date hereof, and which fee will be deemed a Revolving Advance.

          7. Conditions Precedent. The following are conditions precedent (“Conditions
Precedent”) to the effectiveness of this Amendment, notwithstanding anything contained herein to
the contrary:

     (A) Lender shall have received a fully executed copy of this Amendment.

     (B) Payment by Borrower to Lender of all amounts owed to Lender in connection with this
Agreement including but not limited to the Amendment Fee.

          8. Expenses. Immediately upon request, Borrower shall pay all expenses and costs of
Lender (including, without limitation, the attorney fees of counsel for Lender and expenses of
counsel for Lender) in connection with the preparation, negotiation, execution and approval of this
Amendment and any and all other documents, instruments and things contemplated hereby, whether or
not such transactions are consummated, together with all other expenses and costs incurred by
Lender chargeable to Borrower pursuant to the terms of the Credit Agreement which are unpaid at
such time.

          9. Ratification; Estoppel; Reaffirmation.

          (a) Borrower does hereby reaffirm the Credit Agreement and other Loan Documents, and ratify
the Credit Agreement and other Loan Documents, as amended, modified and supplemented.

          (b) Borrower does hereby reaffirm to Lender each of the representations, warranties, covenants
and agreements set forth in the Credit Agreement and the other Loan Documents with the same force
and effect as if each were separately stated herein and made as of the date hereof to Lender.

          (c) The Borrower further represents and warrants that, as of the date hereof, there are no
counterclaims, defenses or offsets of any nature whatsoever to the Loans or any of the Loan
Documents and that, as of the date hereof no default has occurred or exists under any of the Loan
Documents.

          (d) Borrower does hereby ratify, affirm, reaffirm, acknowledge, confirm and agree that the
Credit Agreement and other Loan Documents, as amended, modified and supplemented hereby by this
Amendment, represent the valid, enforceable and collectible obligations of Borrower.

          10. Release. Borrower does hereby release, remise, acquit and forever discharge
Lender and Lender’s employees, agents, representatives, consultants, attorneys, fiduciaries,
servants, officers, directors, partners, predecessors, successors and assigns, subsidiary
corporations, parent corporation, and related corporate divisions (all of the foregoing hereinafter
called the “Released Parties”),
from any and all action and causes of action, judgments, executions, suits, debts, claims,
demands, liabilities, obligations, damages and expenses of any and every character, known or
unknown, direct and/or

 

 

indirect, at law or in equity, of whatsoever kind or nature, whether
heretofore or hereafter arising, for or because of any matter or things done, omitted or suffered
to be done by any of the Released Parties prior to and including the date of execution hereof, and
in any way directly or indirectly arising out of or in any way connected to this Amendment, the
Loan Agreement and the Other Agreements (all of the foregoing hereinafter called the “Released
Matters”). Borrower acknowledges that the agreements in this paragraph are intended to be in full
satisfaction of all or any alleged injuries or damages arising in connection with the Released
Matters. Borrower represents and warrants to Lender that it has not purported to transfer, assign
or otherwise convey any right, title or interest of Borrower in any Released Matter to any other
Person and that the foregoing constitutes a full and complete release of all Released Matters.

          11. Governing Law. The terms and conditions of this Amendment, the Credit Agreement
and all of the other Loan Documents shall be governed by the applicable laws of the State of
Minnesota.

          12. Counterparts. This Amendment may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which shall together constitute
one and the same instrument. Counterpart signature pages to this Agreement transmitted by
facsimile transmission, by electronic mail in portable document format (.pdf), or by any other
electronic means intended to preserve the original graphic and pictorial appearance of a document,
will have the same effect as physical delivery of the paper document bearing an original signature.

          13. No Cancellation. This Amendment evidences the same indebtedness as evidenced by
the Credit Agreement and other Loan Documents (as modified hereby). This Amendment is secured by
the Collateral as provided in the Credit Agreement including all amendments and modifications
thereto. All future advances made to the Borrower or the Guarantors in the good faith judgment of
the lender for the purpose of protecting Lender’s interests in the collateral will also be secured
by this Amendment. This Amendment is an extension, modification and amendment of the prior
documents and the execution hereof does not evidence a cancellation of the indebtedness evidenced
by the prior documents.

          14. WAIVER OF JURY TRIAL. LENDER AND BORROWER WAIVE THE RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS AMENDMENT. THIS
WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY BORROWER AND BORROWER ACKNOWLEDGES THAT
NEITHER LENDER NOR ANY PERSON ACTING ON BEHALF OF LENDER OR ANY LENDER HAS MADE ANY REPRESENTATIONS
OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT.
BORROWER FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED (OR HAVE THE OPPORTUNITY TO BE
REPRESENTED) IN THE SIGNING OF THIS AMENDMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL
COUNSEL, SELECTED OF ITS OWN FREE WILL, AND IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH
COUNSEL. BORROWER FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTAND THE MEANING AND
RAMIFICATIONS OF THIS WAIVER PROVISION.

[Signatures follow on next page]

 

 

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment as of
the date first above written.

	 	 	 	 	 	 	 

	10077 South 134th Street	 	PROFESSIONAL
VETERINARY PRODUCTS, LTD.	 	 
	Omaha, NE 68138	 	a Nebraska corporation	 	 
	Telecopier: (402) 331-8655

	 	 	 	 	 	 
	Attention: Tara Chicatelli
	 	By:
	 	/s/ Stephen J. Price	 	 
	e-mail: tara.chicatelli@pvpl.com

	 	
	 	 

Name: Stephen J. Price
	 	 
	 	 	
	 	Its: President and CEO	 	 
	 	 		 		 	 
	10077 South 134th Street	 	EXACT LOGISTICS,
LLC	 	 
	Omaha, NE 68138	 	a Nebraska limited liability company	 	 
	Telecopier: (402) 331-8655

	 	 	 	 	 	 
	Attention: Tara Chicatelli

	 	 	 	 	 	 
	e-mail: tara.chicatelli@pvpl.com

	 	By:
	 	PROFESSIONAL VETERINARY PRODUCTS, LTD.	 	 
	 	 	 	 	a Nebraska corporation, its Manager and	 	 
	 	 	 	 	sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Stephen J. Price	 	 
	 

	 	 	 	 
	 	 
	 

	 	 	 	Name:  Stephen J. Price	 	 
	 

	 	 	 	Its:  President and CEO	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	10077 South 134th Street	 	PROCONN, LLC	 	 
	Omaha, NE 68138	 	a Nebraska limited liability company 	 	 
	Telecopier: (402) 331-8655

	 	 	 	 	 	 
	Attention: Tara Chicatelli

	 	By:	 	PROFESSIONAL VETERINARY PRODUCTS, LTD. 	 	 
	e-mail: tara.chicatelli@pvpl.com

	 	 
	 	a Nebraska corporation, its Manager and	 	 
	 	 	 	 	sole Member 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen J. Price	 	 
	 

	 	 	 	 
	 	 
	 

	 	 
	 	Name: Stephen J. Price	 	 
	 

	 	 
	 	Its: President and CEO	 	 
	 
	 	 	 	 	 	 
	Wells Fargo Bank, National Association
Wells Fargo Business Credit 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION	 	 
	MAC N9312-040

	 	 	 	 	 	 
	109 South 7th Street, 4th Floor

	 	By:	 	/s/ Becky A. Koehler  	 	 
	Minneapolis, MN 55402
	 	 	 	Becky A. Koehler,
	 	 
	Telecopier: (612) 341-2472
	 	 	 	 Vice President 	 	 
	Attention: Becky A. Koehler
	 	 	 	 	 	 
	e-mail: becky.a.koehler@wellsfargo.comexv10w72

Exhibit 10.72

PCTEL, INC.

AMENDED AND RESTATED 1997 STOCK PLAN JUNE 15, 2010

          Preamble: The Plan is amended and restated subject to, and effective as of, approval
by stockholders at the 2010 annual meeting of stockholders (the “Restatement Effective
Date”). If the Company’s stockholders approve this Plan, there will be no further grants from
the Company’s 2001 Nonstatutory Stock Option Plan (the “2001 Plan”).

	1.	 	Purposes of the Plan. The purposes of this Plan are:

	 	•	 	to attract and retain the best available personnel for positions of substantial
responsibility,
	 
	 	•	 	to provide additional incentive to Employees, Directors and Consultants,
	 
	 	•	 	to promote the success of the Company’s business, and
	 
	 	•	 	to ensure that the incentives contemplated by this Plan comport with all Applicable
Laws.

          Awards granted under the Plan may be Incentive Stock Options, Nonstatutory Stock Options,
Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance
Shares, Dividend Equivalents and other stock or cash awards as the Administrator may determine.

	2.	 	Definitions. As used herein, the following definitions shall apply:

	 	(a)	 	“Administrator” means the Board or any of its Committees as shall be
administering the Plan, in accordance with Section 4 of the Plan.
	 
	 	(b)	 	“Applicable Laws” means the requirements relating to the administration
of equity-based awards under U.S. state corporate laws, U.S. federal and state
securities laws, the Code, any stock exchange or quotation system on which the Common
Stock is listed or quoted and the applicable laws of any foreign country or
jurisdiction where Awards are, or will be, granted under the Plan.
	 
	 	(c)	 	“Award” means, individually or collectively, a grant under the Plan of
Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Units, Performance Shares, Dividend Equivalents and other stock or cash
awards as the Administrator may determine.
	 
	 	(d)	 	“Award Agreement” means the written agreement setting forth the terms
and provisions applicable to each Award granted under the Plan. The Award Agreement is
subject to the terms and conditions of the Plan.
	 
	 	(e)	 	“Award Transfer Program” means any program instituted by the
Administrator that would permit Participants the opportunity to transfer for value any
outstanding Awards to a financial institution or other person or entity approved by the
Administrator.
	 
	 	(f)	 	“Awarded Stock” means the Common Stock subject to an Award.

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	 	(g)	 	“Board” means the Board of Directors of the Company.
	 
	 	(h)	 	“Change in Control” means the consummation of any of the following
transactions:

	 	(i)	 	Any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule
13d-3 of the Exchange Act), directly or indirectly, of securities of the
Company representing fifty percent (50%) or more of the total voting power
represented by the Company’s then outstanding voting securities; or
	 
	 	(ii)	 	The consummation of the sale or disposition by the Company
of all or substantially all of the Company’s assets; or
	 
	 	(iii)	 	A change in the composition of the Board occurring within
a two-year period, as a result of which fewer than a majority of the
directors are Incumbent Directors. “Incumbent Directors” means directors who
either (A) are Directors as of the effective date of the Plan, or (B) are
elected, or nominated for election, to the Board with the affirmative votes
of at least a majority of the Incumbent Directors at the time of such
election or nomination (but will not include an individual whose election or
nomination is in connection with an actual or threatened proxy contest
relating to the election of directors to the Company); or
	 
	 	(iv)	 	The consummation of a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity or its parent) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
or its parent outstanding immediately after such merger or consolidation.

	 	(i)	 	“Code” means the Internal Revenue Code of 1986, as amended. Any
reference to a section of the Code herein will be a reference to any successor or
amended section of the Code.
	 
	 	(j)	 	“Committee” means a committee of Directors appointed by the Board in
accordance with Section 4 of the Plan.
	 
	 	(k)	 	“Common Stock” means the common stock of the Company.
	 
	 	(l)	 	“Company” means PCTEL, Inc., a Delaware corporation.
	 
	 	(m)	 	“Consultant” means any person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.
	 
	 	(n)	 	“Determination Date” means the latest possible date that will not
jeopardize the qualification of an Award granted under the Plan as “performance-based
compensation” under Section 162(m) of the Code.
	 
	 	(o)	 	“Director” means a member of the Board.
	 
	 	(p)	 	“Disability” means total and permanent disability as defined in Section
22(e)(3) of the Code.

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	 	(q)	 	“Dividend Equivalent” means a credit, payable in cash, made at the
discretion of the Administrator, to the account of a Participant in an amount equal to
the cash dividends paid on one Share for each Share represented by an Award held by
such Participant. The Dividend Equivalent for each Share subject to an Award shall
only be paid to a Participant on the vesting date for such Share.
	 
	 	(r)	 	“Employee” means any person, including Officers and Directors, employed
by the Company or any Parent or Subsidiary of the Company. A Service Provider shall
not cease to be an Employee in the case of (i) any leave of absence approved by the
Company or (ii) transfers between locations of the Company or between the Company, its
Parent, any Subsidiary, or any successor. Neither service as a Director nor payment of
a director’s fee by the Company shall be sufficient to constitute “employment” by the
Company.
	 
	 	(s)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.
	 
	 	(t)	 	“Fair Market Value” means, as of any date, the value of Common Stock
determined as follows:

	 	(i)	 	If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system
on the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;
	 
	 	(ii)	 	If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value
of a Share of Common Stock shall be the mean between the high bid and low
asked prices for the Common Stock on the day of determination, as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable; or
	 
	 	(iii)	 	In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

	 	(u)	 	“Fiscal Year” means the fiscal year of the Company.
	 
	 	(v)	 	“Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.
	 
	 	(w)	 	“Inside Director” means a Director who is an Employee.
	 
	 	(x)	 	“Nonstatutory Stock Option” means an Option not intended to qualify as
an Incentive Stock Option.
	 
	 	(y)	 	“Notice of Grant” means a written or electronic notice evidencing
certain terms and conditions of an individual Award. The Notice of Grant is part of
the Award Agreement.
	 
	 	(z)	 	“Officer” means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.
	 
	 	(aa)	 	“Option” means a stock option granted pursuant to the Plan.

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	 	(bb)	 	“Option Agreement” means an agreement between the Company and a
Participant evidencing the terms and conditions of an individual Option grant. The
Option Agreement is subject to the terms and conditions of the Plan.
	 
	 	(cc)	 	“Outside Director” means a Director who is not an Employee.
	 
	 	(dd)	 	“Parent” means a “parent corporation,” whether now or hereafter
existing, as defined in Section 424(e) of the Code.
	 
	 	(ee)	 	“Participant” means the holder of an outstanding Award granted under the Plan.
	 
	 	(ff)	 	“Performance Goals” will have the meaning set forth in Section 11 of the Plan.
	 
	 	(gg)	 	“Performance Period” means any Fiscal Year of the Company or such other
period as determined by the Administrator in its sole discretion.
	 
	 	(hh)	 	“Performance Share” means an Award denominated in Shares which may be
earned in whole or in part upon attainment of Performance Goals or other vesting
criteria as the Administrator may determine pursuant to Section 10.
	 
	 	(ii)	 	“Performance Unit” means a bookkeeping entry representing an amount
equal to the Fair Market Value of one Share, which may be earned in whole or in part
upon attainment of Performance Goals or other vesting criteria as the Administrator may
determine and which may be settled for cash, Shares or other securities or a
combination of the foregoing pursuant to Section 10.
	 
	 	(jj)	 	“Period of Restriction” means the period during which the transfer of
Shares of Restricted Stock are subject to restrictions and therefore, the Shares are
subject to a substantial risk of forfeiture. Such restrictions may be based on the
passage of time, the achievement of target levels of performance, or the occurrence of
other events as determined by the Administrator.
	 
	 	(kk)	 	“Plan” means this 1997 Stock Plan, as amended and restated.
	 
	 	(ll)	 	“Restricted Stock” means Shares issued pursuant to a Restricted Stock
award under Section 8 of the Plan, or issued pursuant to the early exercise of an
Option.
	 
	 	(mm)	 	“Restricted Stock Unit” means a bookkeeping entry representing an
amount equal to the Fair Market Value of one Share, granted pursuant to Section 9 of
the Plan. Each Restricted Stock Unit represents an unfunded and unsecured obligation
of the Company.
	 
	 	(nn)	 	“Restricted Stock Unit Agreement” means a written or electronic
agreement between the Company and the Participant evidencing the terms and restrictions
applying to an award of Restricted Stock Units. The Restricted Stock Unit Agreement is
subject to the terms and conditions of the Plan and the Notice of Grant.
	 
	 	(oo)	 	“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.
	 
	 	(pp)	 	“Section 16(b)” means Section 16(b) of the Exchange Act.
	 
	 	(qq)	 	“Service Provider” means an Employee, Director or Consultant.

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	 	(rr)	 	“Share” means a share of the Common Stock, as adjusted in accordance
with Section 15 of the Plan.
	 
	 	(ss)	 	“Stock Appreciation Right” or “SAR” means an Award granted
pursuant to Section 7 hereof.
	 
	 	(tt)	 	“Subsidiary” means a “subsidiary corporation”, whether now or hereafter
existing, as defined in Section 424(f) of the Code.

	3.	 	Stock Subject to the Plan.

	 	(a)	 	Stock Subject to the Plan. Subject to the provisions of Section 15 of
the Plan, the maximum aggregate number of Shares with respect to which Awards may be
made under the Plan after the Restatement Effective Date is the sum of (a) 2,724,798
Shares, plus (b) any Shares returned (or that would have otherwise returned) to the
Plan on or after the Restatement Effective Date as a result of Section(s) 3(b) and
3(c), plus (c) any Shares returned (or that would have otherwise returned) to the
Company’s 1998 Director Option Plan on or after the Restatement Effective Date as a
result of termination of options or repurchase of Shares issued under such plan (with a
maximum number of Shares added pursuant to clause (c) equal to 270,000 Shares), plus
(d) any Shares returned (or that would have otherwise returned) to the Company’s 2001
Plan on or after the Restatement Effective Date as a result of termination of options
or repurchase of Shares issued under such plan (with a maximum number of Shares added
pursuant to clause (d) equal to 246,452 Shares). The Shares may be authorized, but
unissued, or reacquired Common Stock.
	 
	 	(b)	 	Full Value Awards. Any Shares subject to Awards other than Options and
Stock Appreciation Rights will be counted against the numerical limits of this Section
3 as one and seventy-eight hundredths (1.78) Shares for every one Share subject
thereto. Further, if Shares acquired pursuant to any Award other than Options and
Stock Appreciation Rights are forfeited or repurchased by the Company and would
otherwise return to the Plan pursuant to Section 3(c), one and seventy-eight hundredths
(1.78) times the number of Shares so forfeited or repurchased will return to the Plan
and will again become available for issuance.
	 
	 	(c)	 	Lapsed Awards. If an Award expires or becomes unexercisable without
having been exercised in full, or, with respect to Restricted Stock, Restricted Stock
Units, Performance Shares or Performance Units, is forfeited to or repurchased by the
Company, the unpurchased Shares (or for Awards other than Options and Stock
Appreciation Rights, the forfeited or repurchased Shares) which were subject thereto
will become available for future grant or sale under the Plan (unless the Plan has
terminated). Upon the exercise of a SAR settled in Shares, the gross number of Shares
covered by the portion of the Award so exercised will cease to be available under the
Plan. However, Shares that have been issued under the Plan under any Award shall not
be returned to the Plan and shall not become available for future distribution under
the Plan, except that if unvested Shares of Restricted Stock, Restricted Stock Units,
Performance Shares or Performance Units are repurchased by the Company or are forfeited
to the Company, such Shares will become available for future grant under the Plan.
Shares used to pay the tax and exercise price of an Award will not become available for
future grant or sale under the Plan. To the extent an Award under the Plan is paid out
in cash rather than Shares, such cash payment will not result in reducing the number of
Shares available for issuance under the Plan.

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	4.	 	Administration of the Plan.

	 	(a)	 	Procedure.

	 	(i)	 	Multiple Administrative Bodies. The Plan may be
administered by different Committees with respect to different groups of
Service Providers.
	 
	 	(ii)	 	Section 162(m). To the extent that the
Administrator determines it to be desirable to qualify Awards granted
hereunder as “performance-based compensation” within the meaning of Section
162(m) of the Code, the Plan shall be administered by a Committee of two or
more “outside directors” within the meaning of Section 162(m) of the Code.
	 
	 	(iii)	 	Rule 16b-3. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder shall be structured to satisfy the requirements for
exemption under Rule 16b-3.
	 
	 	(iv)	 	Other Administration. Other than as provided
above, the Plan shall be administered by (A) the Board or (B) a Committee,
which committee shall be constituted to satisfy Applicable Laws.

	 	(b)	 	Powers of the Administrator. Subject to the provisions of the Plan,
and in the case of a Committee, subject to the specific duties delegated by the Board
to such Committee, the Administrator shall have the authority, in its discretion:

	 	(i)	 	to determine the Fair Market Value;
	 
	 	(ii)	 	to select the Service Providers to whom Awards may be
granted hereunder;
	 
	 	(iii)	 	to determine the number of shares of Common Stock to be
covered by each Award granted hereunder;
	 
	 	(iv)	 	to approve forms of agreement for use under the Plan;
	 
	 	(v)	 	to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any Award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Awards may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Award or the shares of Common
Stock relating thereto, based in each case on such factors as the
Administrator, in its sole discretion, shall determine; provided, however,
that unless otherwise determined by the Administrator, any extension of the
term or exercise period of an Award shall comply with Section 409A of the
Code and any temporary, proposed or final Treasury Regulations and guidance
promulgated thereunder;
	 
	 	(vi)	 	to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan;
	 
	 	(vii)	 	to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

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	 	(viii)	 	to modify or amend each Award (subject to Section(s) 4(e) and 20(c) of the
Plan), including the discretionary authority to extend the post-termination
exercisability period of Options and SARs longer than is otherwise provided
for in the Plan. ;
	 
	 	(ix)	 	to determine whether Dividend Equivalents will be granted
in connection with an Award;
	 
	 	(x)	 	to allow Participants to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Award that number of Shares having a Fair Market
Value equal to the amount required to be withheld. The Fair Market Value of
the Shares to be withheld shall be determined on the date that the amount of
tax to be withheld is to be determined. All elections by a Participant to
have Shares withheld for this purpose shall be made in such form and under
such conditions as the Administrator may deem necessary or advisable;
	 
	 	(xi)	 	to authorize any person to execute on behalf of the Company
any instrument required to effect the grant of an Award previously granted by
the Administrator;
	 
	 	(xii)	 	to make all other determinations deemed necessary or
advisable for administering the Plan.

	 	(c)	 	Section 409A. Unless otherwise determined by the Administrator, the
Administrator shall comply with Section 409A of the Code and any temporary, proposed or
final Treasury Regulations and guidance promulgated thereunder in taking or permitting
any actions under the Plan that would result in a deferral of compensation subject to
Section 409A of the Code.
	 
	 	(d)	 	Effect of Administrator’s Decision. The Administrator’s decisions,
determinations and interpretations shall be final and binding on all Participants and
any other holders of Awards.
	 
	 	(e)	 	Limitations.

	 	(i)	 	Prohibition Against Repricing. Notwithstanding
Section 4(b)(viii), the Administrator may not modify or amend an Option or
Stock Appreciation Right to reduce the exercise price of such Option or Stock
Appreciation Right after it has been granted (except for adjustments made
pursuant to Section 15 of the Plan) nor may the Administrator cancel any
outstanding Option or Stock Appreciation Right and replace it with any other
Award with a lower exercise price, unless, in either case, such action is
approved by the Company’s stockholders.
	 
	 	(ii)	 	Buyout Provisions. If approved in advance by the
Company’s stockholders, the Administrator may offer to buy out for a payment
in cash or Shares an Option and/or a SAR previously granted based on such
terms and conditions as the Administrator shall establish and communicate to
the Participant at the time that such offer is made.

	 	(f)	 	Voluntary Surrender Program. Notwithstanding anything in the Plan to
the contrary, the Administrator is expressly authorized to allow, in its sole and
absolute discretion, a program under which: (i) certain Participants voluntarily
surrender their Options without consideration and (ii) such Participants will remain
eligible to receive their respective ordinary course equity grants in the next grant
cycle. Notwithstanding anything in the Plan to the contrary, any Shares subject to an
Option surrendered pursuant to the voluntary surrender program

A-7

 

	 	 	 	described in this Section 4(f) shall not become available for future grant or sale
under the Plan.

	5.	 	Eligibility. Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Performance Units, Performance Shares, Dividend Equivalents and such
other stock or cash awards as the Administrator determines may be granted to Service
Providers. Incentive Stock Options may be granted only to Employees.
	 
	6.	 	Options.

	 	(a)	 	Limitations.

	 	(i)	 	Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Participant during any calendar year
(under all plans of the Company and any Parent or Subsidiary) exceeds
$100,000, such Options shall be treated as Nonstatutory Stock Options. For
purposes of this Section 6(a), Incentive Stock Options shall be taken into
account in the order in which they were granted. The Fair Market Value of
the Shares shall be determined as of the time the Option with respect to such
Shares is granted.

	 	(b)	 	The following limitations shall apply to grants of Options:

	 	(i)	 	No Service Provider shall be granted, in any Fiscal Year,
Options to purchase more than 300,000 Shares.
	 
	 	(ii)	 	In connection with his or her initial service, a Service
Provider may be granted Options to purchase up to an additional 150,000
Shares which shall not count against the limit set forth in subsection (i)
above.
	 
	 	(iii)	 	The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company’s capitalization
as described in Section 15 of the Plan.
	 
	 	(iv)	 	If an Option is canceled in the same Fiscal Year in which
it was granted (other than in connection with a transaction described in
Section 15 of the Plan), the canceled Option will be counted against the
limits set forth in subsections (i) and (ii) above.

	 	(c)	 	Term of Option. The term of each Option shall be stated in the Option
Agreement. In the case of an Incentive Stock Option, the term shall be ten (10) years
from the date of grant or such shorter term as may be provided in the Option Agreement.
Notwithstanding the foregoing, with respect to Options granted on or following the
Restatement Effective Date, the maximum term shall be seven (7) years from the date of
grant. Moreover, in the case of an Incentive Stock Option granted to a Participant
who, at the time the Incentive Stock Option is granted, owns stock representing more
than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall
be five (5) years from the date of grant or such shorter term as may be provided in the
Option Agreement.

A-8

 

	 	(d)	 	Option Exercise Price and Consideration.

	 	(i)	 	Exercise Price. The per share exercise price for
the Shares to be issued pursuant to exercise of an Option shall be determined
by the Administrator, but will be no less than 100% of the Fair Market Value
per Share on the date of grant. In addition, in the case of an Incentive
Stock Option granted to an Employee who, at the time the Incentive Stock
Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price will be no less than 110% of the
Fair Market Value per Share on the date of grant. Notwithstanding the
foregoing provisions of this Section 6(d), Options may be granted with a per
Share exercise price of less than 100% of the Fair Market Value per Share on
the date of grant pursuant to a transaction described in, and in a manner
consistent with, Section 424(a) of the Code.

	 	(e)	 	Waiting Period and Exercise Dates. At the time an Option is granted,
the Administrator shall fix the period within which the Option may be exercised and
shall determine any conditions which must be satisfied before the Option may be
exercised.
	 
	 	(f)	 	Form of Consideration. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method of
payment. In the case of an Incentive Stock Option, the Administrator shall determine
the acceptable form of consideration at the time of grant. To the extent consistent
with Applicable Laws, such consideration may consist entirely of:

	 	(i)	 	cash;
	 
	 	(ii)	 	check;
	 
	 	(iii)	 	promissory note;
	 
	 	(iv)	 	other Shares (including as part of a pyramid exercise),
provided that such Shares have a Fair Market Value on the date of surrender
equal to the aggregate exercise price of the Shares as to which such Option
will be exercised and provided further that accepting such Shares will not
result in any adverse accounting consequences to the Company, as the
Administrator determines in its sole discretion;
	 
	 	(v)	 	consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan;
	 
	 	(vi)	 	by a net exercise arrangement pursuant to which the Company
will reduce the number of Shares issued upon exercise by the minimum whole
number of Shares with a Fair Market Value sufficient to pay the aggregate
Exercise Price of the Exercised Shares; provided however, that if the Fair
Market Value of the withheld shares exceeds the aggregate Exercise Price of
the Exercised Shares, the excess shall be paid to Participant; provided,
further, that Shares will no longer be outstanding under an Option and will
not be exercisable thereafter to the extent that they are (A) used to pay the
exercise price pursuant to the “net exercise,” (B) delivered to Participant
as a result of such exercise, or (C) withheld to satisfy tax withholding
obligations;

A-9

 

	 	(vii)	 	a reduction in the amount of any Company liability to the
Participant, including any liability attributable to the Participant’s
participation in any Company-sponsored deferred compensation program or
arrangement;
	 
	 	(viii)	 	any combination of the foregoing methods of payment; or
	 
	 	(ix)	 	such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

	 	(g)	 	Exercise of Option.

	 	(i)	 	Procedure for Exercise; Rights as a Stockholder.
Any Option granted hereunder shall be exercisable according to the terms of
the Plan and at such times and under such conditions as determined by the
Administrator and set forth in the Option Agreement. Unless the
Administrator provides otherwise, vesting of Options granted hereunder shall
be tolled during any unpaid leave of absence. An Option may not be exercised
for a fraction of a Share.

          An Option shall be deemed exercised when the Company receives: (i) notice of exercise (in such
form as the Administrator may specify from time to time) from the person entitled to exercise the
Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the Administrator and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be
issued in the name of the Participant or, if requested by the Participant, in the name of the
Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist with respect to the
Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 15 of the Plan.

          Exercising an Option in any manner shall decrease the number of Shares thereafter available,
both for purposes of the Plan and for sale under the Option, by the number of Shares as to which
the Option is exercised.

	 	(ii)	 	Termination of Relationship as a Service Provider.
If a Participant ceases to be a Service Provider, other than upon the
Participant’s death or Disability, the Participant may exercise his or her
Option within such period of time as is specified in the Option Agreement to
the extent that the Option is vested on the date of termination (but in no
event later than the expiration of the term of such Option as set forth in
the Option Agreement). In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for three (3) months following
the Participant’s termination. If, on the date of termination, the
Participant is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option shall revert to the Plan. If, after
termination, the Participant does not exercise his or her Option within the
time specified by the Administrator, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.
	 
	 	(iii)	 	Disability of Participant. If a Participant
ceases to be a Service Provider as a result of the Participant’s Disability,
the Participant may exercise his or her Option within such period of time as
is specified in the Option Agreement to the extent the Option

A-10

 

	 	 	 	is vested on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for twelve (12) months following the Participant’s
termination. If, on the date of termination, the Participant is not vested
as to his or her entire Option, the Shares covered by the unvested portion of
the Option shall revert to the Plan. If, after termination, the Participant
does not exercise his or her Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.
	 
	 	(iv)	 	Death of Participant. If a Participant dies while
a Service Provider, the Option may be exercised within such period of time as
is specified in the Option Agreement (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant),
by the Participant’s estate or by a person who acquires the right to exercise
the Option by bequest or inheritance, but only to the extent that the Option
is vested on the date of death. In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Participant’s termination. If, at the time of death, the
Participant is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option shall immediately revert to the Plan.
The Option may be exercised by the executor or administrator of the
Participant’s estate or, if none, by the person(s) entitled to exercise the
Option under the Participant’s will or the laws of descent or distribution.
If the Option is not so exercised within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

	7.	 	Stock Appreciation Rights.

	 	(a)	 	Grant of SARs. Subject to the terms and conditions of the Plan, SARs
may be granted to Participants at any time and from time to time as shall be determined
by the Administrator, in its sole discretion.
	 
	 	(b)	 	Number of Shares. The Administrator will have complete discretion to
determine the number of Stock Appreciation Rights granted to any Participant, provided
that during any Fiscal Year, no Participant will be granted Stock Appreciation Rights
covering more than 300,000 Shares. Notwithstanding the foregoing limitation, in
connection with a Participant’s initial service as an Employee, an Employee may be
granted Stock Appreciation Rights covering up to an additional 150,000 Shares.
	 
	 	(c)	 	Exercise Price and other Terms. The Administrator, subject to the
provisions of the Plan, shall have complete discretion to determine the terms and
conditions of SARs granted under the Plan; provided, however, that: (i) with respect to
SARs granted prior to the Restatement Effective Date, no SAR may have a term of more
than ten (10) years from the date of grant; and (ii) with respect to SARs granted on or
following the Restatement Effective Date, no SAR may have a term of more than seven (7)
years from the date of grant. In addition, the per Share exercise price of a SAR shall
be no less than 100% of the Fair Market Value per Share on the date of grant.
	 
	 	(d)	 	Payment of SAR Amount. Upon exercise of a SAR, a Participant shall be
entitled to receive payment from the Company in an amount determined by multiplying:

A-11

 

	 	(i)	 	The difference between the Fair Market Value of a Share on
the date of exercise over the exercise price; times
	 
	 	(ii)	 	the number of Shares with respect to which the SAR is
exercised.

	 	(e)	 	Payment upon Exercise of SAR. At the discretion of the Administrator,
payment for a SAR may be in cash, Shares or a combination thereof.
	 
	 	(f)	 	SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement
that shall specify the exercise price, the term of the SAR, the conditions of exercise,
and such other terms and conditions as the Administrator, in its sole discretion, shall
determine.
	 
	 	(g)	 	Expiration of SARs. A SAR granted under the Plan shall expire upon the
date determined by the Administrator, in its sole discretion, and set forth in the
Award Agreement.
	 
	 	(h)	 	Termination of Relationship as a Service Provider. If a Participant
ceases to be a Service Provider, other than upon the Participant’s death or Disability,
the Participant may exercise his or her SAR within such period of time as is specified
in the SAR Agreement to the extent that the SAR is vested on the date of termination
(but in no event later than the expiration of the term of such SAR as set forth in the
SAR Agreement). In the absence of a specified time in the SAR Agreement, the SAR shall
remain exercisable for three (3) months following the Participant’s termination. If,
on the date of termination, the Participant is not vested as to his or her entire SAR,
the Shares covered by the unvested portion of the SAR shall revert to the Plan. If,
after termination, the Participant does not exercise his or her SAR within the time
specified by the Administrator, the SAR shall terminate, and the Shares covered by such
SAR shall revert to the Plan.
	 
	 	(i)	 	Disability of Participant. If a Participant ceases to be a Service
Provider as a result of the Participant’s Disability, the Participant may exercise his
or her SAR within such period of time as is specified in the SAR Agreement to the
extent the SAR is vested on the date of termination (but in no event later than the
expiration of the term of such SAR as set forth in the SAR Agreement). In the absence
of a specified time in the SAR Agreement, the SAR shall remain exercisable for twelve
(12) months following the Participant’s termination. If, on the date of termination,
the Participant is not vested as to his or her entire SAR, the Shares covered by the
unvested portion of the SAR shall revert to the Plan. If, after termination, the
Participant does not exercise his or her SAR within the time specified herein, the SAR
shall terminate, and the Shares covered by such SAR shall revert to the Plan.
	 
	 	(j)	 	Death of Participant. If a Participant dies while a Service Provider,
the SAR may be exercised within such period of time as is specified in the SAR
Agreement (but in no event later than the expiration of the term of such SAR as set
forth in the Notice of Grant), by the Participant’s estate or by a person who acquires
the right to exercise the SAR by bequest or inheritance, but only to the extent that
the SAR is vested on the date of death. In the absence of a specified time in the SAR
Agreement, the SAR shall remain exercisable for twelve (12) months following the
Participant’s termination. If, at the time of death, the Participant is not vested as
to his or her entire SAR, the Shares covered by the unvested portion of the SAR shall
immediately revert to the Plan. The SAR may be exercised by the executor or
administrator of the Participant’s estate or, if none, by the person(s) entitled to
exercise the SAR under the Participant’s will or the laws of descent or distribution.
If the SAR is not so exercised within the time specified herein, the SAR shall
terminate, and the Shares covered by such SAR shall revert to the Plan.

A-12

 

	8.	 	Restricted Stock.

	 	(a)	 	Grant of Restricted Stock. Subject to the terms and provisions of the
Plan, the Administrator, at any time and from time to time, may grant Shares of
Restricted Stock to Service Providers in such amounts as the Administrator, in its sole
discretion, will determine.
	 
	 	(b)	 	Restricted Stock Agreement. Each Award of Restricted Stock will be
evidenced by an Award Agreement that will specify the Period of Restriction, the number
of Shares granted, and such other terms and conditions as the Administrator, in its
sole discretion, will determine. Notwithstanding the foregoing sentence, during any
Fiscal Year no Participant will receive more than an aggregate of 150,000 Shares of
Restricted Stock; provided, however, that in connection with a Participant’s initial
service as an Employee, an Employee may be granted an aggregate of up to an additional
75,000 Shares of Restricted Stock. Unless the Administrator determines otherwise,
Shares of Restricted Stock will be held by the Company as escrow agent until the
restrictions on such Shares have lapsed.
	 
	 	(c)	 	Transferability. Except as provided in this Section 8, Shares of
Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated until the end of the applicable Period of Restriction.
	 
	 	(d)	 	Other Restrictions. The Administrator, in its sole discretion, may
impose such other restrictions on Shares of Restricted Stock as it may deem advisable
or appropriate.
	 
	 	(e)	 	Removal of Restrictions. Except as otherwise provided in this Section
8, Shares of Restricted Stock covered by each Restricted Stock grant made under the
Plan will be released from escrow as soon as practicable after the last day of the
Period of Restriction. The Administrator, in its discretion, may accelerate the time
at which any restrictions will lapse or be removed.
	 
	 	(f)	 	Voting Rights. During the Period of Restriction, Service Providers
holding Shares of Restricted Stock granted hereunder may exercise full voting rights
with respect to those Shares, unless the Administrator determines otherwise.
	 
	 	(g)	 	Dividends and Other Distributions. During the Period of Restriction,
Service Providers holding Shares of Restricted Stock will be entitled to receive all
dividends and other distributions paid with respect to such Shares unless otherwise
provided in the Award Agreement. If any such dividends or distributions are paid in
Shares, the Shares will be subject to the same restrictions on transferability and
forfeitability as the Shares of Restricted Stock with respect to which they were paid.
	 
	 	(h)	 	Return of Restricted Stock to Company. On the date set forth in the
Award Agreement, the Restricted Stock for which restrictions have not lapsed will
revert to the Company and again will become available for grant under the Plan.

	9.	 	Restricted Stock Units.

	 	(a)	 	Grant. Restricted Stock Units may be granted at any time and from time
to time as determined by the Administrator. Each Restricted Stock Unit grant will be
evidenced by an Award Agreement that will specify such other terms and conditions as
the Administrator, in its sole discretion, will determine, including all terms,
conditions, and restrictions related to the grant, the number of Restricted Stock Units
and the form of payout, which, subject to

A-13

 

	 	 	 	Section 9(d), may be left to the discretion of the Administrator. Notwithstanding
anything to the contrary in this subsection (a), during any Fiscal Year, no
Participant will receive more than an aggregate of 150,000 Restricted Stock Units;
provided, however, that in connection with a Participant’s initial service as an
Employee, an Employee may be granted an aggregate of up to an additional 75,000
Restricted Stock Units.
	 
	 	(b)	 	Vesting Criteria and Other Terms. The Administrator will set vesting
criteria in its discretion, which, depending on the extent to which the criteria are
met, will determine the number of Restricted Stock Units that will be paid out to the
Participant. After the grant of Restricted Stock Units, the Administrator, in its sole
discretion, may reduce or waive any restrictions for such Restricted Stock Units. Each
Award of Restricted Stock Units will be evidenced by an Award Agreement that will
specify the vesting criteria, and such other terms and conditions as the Administrator,
in its sole discretion, will determine.
	 
	 	(c)	 	Earning Restricted Stock Units. Upon meeting the applicable vesting
criteria, the Participant will be entitled to receive a payout as specified in the
Award Agreement. Notwithstanding the foregoing, at any time after the grant of
Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive
any vesting criteria that must be met to receive a payout.
	 
	 	(d)	 	Form and Timing of Payment. Payment of earned Restricted Stock Units
will be made as soon as practicable after the date(s) set forth in the Award Agreement.
The Administrator, in its sole discretion, may pay earned Restricted Stock Units in
cash, Shares, or a combination thereof. Shares represented by Restricted Stock Units
that are fully paid in cash will be available for grant under the Plan.
	 
	 	(e)	 	Cancellation. On the date set forth in the Award Agreement, all
unearned Restricted Stock Units will be forfeited to the Company.

	10.	 	Performance Units and Performance Shares.

	 	(a)	 	Grant of Performance Units/Shares. Performance Units and Performance
Shares may be granted to Service Providers at any time and from time to time, as will
be determined by the Administrator, in its sole discretion. The Administrator will
have complete discretion in determining the number of Performance Units/Shares granted
to each Participant provided that during any Fiscal Year, (a) no Participant will
receive Performance Units having an initial value greater than $500,000, and (b) no
Participant will receive more than 150,000 Performance Shares. Notwithstanding the
foregoing limitation, in connection with a Participant’s initial service as an
Employee, an Employee may be granted up to an additional 75,000 Performance Shares.
	 
	 	(b)	 	Value of Performance Units/Shares. Each Performance Unit will have an
initial value that is established by the Administrator on or before the date of grant.
Each Performance Share will have an initial value equal to the Fair Market Value of a
Share on the date of grant.
	 
	 	(c)	 	Performance Objectives and Other Terms. The Administrator will set
performance objectives or other vesting provisions (including, without limitation,
continued status as a Service Provider) in its discretion which, depending on the
extent to which they are met, will determine the number or value of Performance
Units/Shares that will be paid out to the Participant. The Administrator may set
performance objectives based upon the achievement of Company-wide, divisional, or
individual goals, or any other basis determined by the Administrator in its discretion.
Each Award of Performance Units/Shares will be evidenced

A-14

 

	 	 	 	by an Award Agreement that will specify the Performance Period, and such other terms
and conditions as the Administrator, in its sole discretion, will determine.
	 
	 	(d)	 	Earning of Performance Units/Shares. After the applicable Performance
Period has ended, the holder of Performance Units/Shares will be entitled to receive a
payout of the number of Performance Units/Shares earned by the Participant over the
Performance Period, to be determined as a function of the extent to which the
corresponding performance objectives or other vesting provisions have been achieved.
After the grant of a Performance Unit/Share, the Administrator, in its sole discretion,
may reduce or waive any performance objectives or other vesting provisions for such
Performance Unit/Share.
	 
	 	(e)	 	Form and Timing of Payment of Performance Units/Shares. Payment of
earned Performance Units/Shares will be made as soon as practicable after the
expiration of the applicable Performance Period. The Administrator, in its sole
discretion, may pay earned Performance Units/Shares in the form of cash, in Shares
(which have an aggregate Fair Market Value equal to the value of the earned Performance
Units/Shares at the close of the applicable Performance Period) or in a combination
thereof.
	 
	 	(f)	 	Cancellation of Performance Units/Shares. On the date set forth in the
Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to
the Company, and again will be available for grant under the Plan.

	11.	 	Performance Goals. Awards of Restricted Stock, Restricted Stock Units, Performance
Shares and Performance Units and other incentives under the Plan may be made subject to the
attainment of performance goals relating to one or more business criteria within the meaning
of Section 162(m) of the Code and may provide for a targeted level or levels of achievement
(“Performance Goals”) including

	 	(a)	 	cash flow;
	 
	 	(b)	 	cash position;
	 
	 	(c)	 	earnings before interest and taxes;
	 
	 	(d)	 	earnings before interest, taxes, depreciation and amortization;
	 
	 	(e)	 	earnings per Share;
	 
	 	(f)	 	economic profit;
	 
	 	(g)	 	economic value added;
	 
	 	(h)	 	equity or stockholder’s equity;
	 
	 	(i)	 	market share;
	 
	 	(j)	 	net income;
	 
	 	(k)	 	net profit;
	 
	 	(l)	 	net sales;

A-15

 

	 	(m)	 	operating earnings;
	 
	 	(n)	 	operating income;
	 
	 	(o)	 	profit before tax;
	 
	 	(p)	 	ratio of debt to debt plus equity;
	 
	 	(q)	 	ratio of operating earnings to capital spending;
	 
	 	(r)	 	return on equity;
	 
	 	(s)	 	return on net assets;
	 
	 	(t)	 	return on sales, revenue, sales growth; or
	 
	 	(u)	 	total return to stockholders.

	 	(i)	 	Any Performance Goals may be used to measure the
performance of the Company as a whole or a business unit of the Company and
may be measured relative to a peer group or index. The Performance Goals may
differ from Participant to Participant and from Award to Award. Prior to the
Determination Date, the Administrator will determine whether any significant
element(s) will be included in or excluded from the calculation of any
Performance Goal with respect to any Participant. In all other respects,
Performance Goals will be calculated in accordance with the Company’s
financial statements, generally accepted accounting principles, or under a
methodology established by the Administrator prior to the issuance of an
Award, which is consistently applied and identified in the financial
statements, including footnotes, the management discussion and analysis
section of the Company’s annual report, or the minutes of the Board.

	12.	 	Automatic Awards to Outside Directors. All grants of Restricted Stock to Outside
Directors under this Section 12 shall be automatic and non-discretionary and shall be made in
accordance with the following provisions:

	 	(a)	 	No person shall have the discretion to select which Outside Directors shall be
granted Restricted Stock or to determine the number of Shares to be included in the
Awards of Restricted Stock granted to Outside Directors.
	 
	 	(b)	 	Each Outside Director shall be automatically granted Shares of Restricted Stock
with an aggregate Fair Market Value on the date of grant of $50,000 (a “First Award”)
upon such date on which such person first becomes an Outside Director, whether through
election by the stockholders of the Company or appointment by the Board to fill a
vacancy; provided, however, that an Inside Director who ceases to be an Inside Director
but who remains a Director shall not receive a First Award.
	 
	 	(c)	 	Each Outside Director subsequently shall be automatically granted Shares of
Restricted Stock with an aggregate Fair Market Value on the date of grant of $35,000 (a
“Subsequent Award”) on the date of the annual meeting of stockholders at which (i) if
such Outside Director’s position on the Board is subject to stockholder approval, such
director is re-elected to the

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	 	 	 	Board, or (ii) if the Outside Director’s position is not subject to stockholder
approval, such director is continuing as a member of the Board.
	 
	 	(d)	 	Each Outside Director who serves either as the Lead Director of the Board or as
a member and/or chair of the Audit Committee, the Compensation Committee or the
Nominating and Governance Committee of the Board shall be entitled to additional Shares
of Restricted Stock with an aggregate Fair Market Value (an “Additional Service Award”)
on the date of grant as follows:

	 	 	 	 	 
	 	 	Fair Market
	Position	 	Value
	Audit Committee Member
	 	$	5,000	 
	Audit Committee Chair
	 	$	10,000	 
	Compensation Committee Member
	 	$	5,000	 
	Compensation Committee Chair
	 	$	9,000	 
	Nominating and Governance Committee Member
	 	$	5,000	 
	Nominating and Governance Committee Chair
	 	$	7,000	 
	Lead Director
	 	$	10,000	 

	 	(e)	 	The terms of a First Award, a Subsequent Award and an Additional Service
Award shall be as follows:

	 	(i)	 	Subject to Section 15 of the Plan, the First Award shall be
subject to time-based restrictions that shall lapse as to thirty-three and
one-third percent (33-1/3%) of the Shares in the First Award on each
anniversary of its date of grant, provided that the Participant continues to
serve as a Director on such dates.
	 
	 	(ii)	 	Each Subsequent Award and Additional Service Award shall
not be subject to any time-based or other similar restrictions in favor of
the Company.

	 	(f)	 	When calculating the number of Shares that will be subject to a grant under
this Section 12, in all cases, the number of Shares shall be determined by dividing the
aggregate Fair Market Value by the Fair Market Value of a Share on the date of grant,
and rounding down. The aggregate Fair Market Value in respect of Awards of Restricted
Stock under this Section 12 may be increased or decreased from time to time by the
Administrator.

	13.	 	Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards
granted hereunder will be suspended during any unpaid leave of absence. A Service Provider
will not cease to be an Employee in the case of (i) any leave of absence approved by the
Company or (ii) transfers between locations of the Company or between the Company and its
Affiliates. For purposes of Incentive Stock Options, no such leave may exceed three (3)
months, unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the Company is
not so guaranteed, then six (6) months following the first (1st) day of such leave any
Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock
Option and will be treated for tax purposes as a Nonstatutory Stock Option.
	 
	14.	 	Non-Transferability of Awards.

	 	(a)	 	Non-Transferability of Awards. Unless determined otherwise by the
Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner other than by will or by the laws of descent or
distribution and may be exercised, during the lifetime of the recipient, only by the
recipient. If the Administrator makes an

A-17

 

	 	 	 	Award transferable, such Award shall contain such additional terms and conditions as
the Administrator deems appropriate.
	 
	 	(b)	 	Prohibition Against an Award Transfer Program. Notwithstanding
anything to the contrary in the Plan, in no event will the Administrator have the right
to determine and implement the terms and conditions of any Award Transfer Program
without stockholder approval.

	15.	 	Adjustments Upon Changes in Capitalization, Dissolution, or Change in Control.

	 	(a)	 	Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by each
outstanding Award, the number of shares of Common Stock which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Award, the price per
share (if any) of Common Stock covered by each such outstanding Award, the numerical
Share limits set forth in Sections 3, 6, 7, 8, 9 and 10 of the Plan, and the number of
Shares automatically awarded to Outside Directors under Section 12 of the Plan, shall
be proportionately adjusted for any change in or increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other change or
increase or decrease in the number of issued shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any class,
or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of
shares of Common Stock subject to an Award.
	 
	 	(b)	 	Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, the Administrator shall notify each Participant as soon
as practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may provide for a Participant to have the right to
exercise his or her Award until ten (10) days prior to such transaction as to all of
the Awarded Stock covered thereby, including Shares as to which the Award would not
otherwise be exercisable. In addition, the Administrator may provide that any Company
repurchase option or forfeiture rights shall lapse 100%, and that any Award vesting
shall accelerate 100%, provided the proposed dissolution or liquidation takes place at
the time and in the manner contemplated. To the extent it has not been previously
exercised (with respect to Options, and SARs) or vested (with respect to Restricted
Stock), an Award will terminate immediately prior to the consummation of such proposed
action.
	 
	 	(c)	 	Change in Control.

	 	(i)	 	Assumption

	 	(A)	 	In the event of a Change in Control, each
outstanding Award (including any related Dividend Equivalent), other
than an Award that vests, is earned or paid-out upon the satisfaction of
one or more Performance Goals, shall be assumed or an equivalent Award
substituted by the successor corporation or a Parent or Subsidiary of
the successor corporation (the “Successor Corporation”).

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	 	(B)	 	For the purposes of this subsection, an Award
shall be considered assumed if, following the Change in Control, the
Award confers the right to purchase or receive, for each Share of
Awarded Stock subject to the Award immediately prior to the Change in
Control, the consideration (whether stock, cash, or other securities or
property) received in the Change in Control by holders of Common Stock
for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the
Change in Control is not solely common stock of the Successor
Corporation, the Administrator may, with the consent of the Successor
Corporation, provide for the consideration to be received upon the
exercise of an Option or Stock Appreciation Right, for each Share
subject to such Award to be solely common stock of the Successor
Corporation equal in fair market value to the per share consideration
received by holders of Common Stock in the Change in Control.

	 	(ii)	 	Non-Assumption

	 	(A)	 	Non-Performance Based Awards. In the
event that the Successor Corporation refuses to assume or substitute for
the Award, the Participant shall fully vest in and have the right to
exercise the Award as to all of the Awarded Stock, including Shares as
to which such Awards would not otherwise be vested or exercisable.
Additionally, all restrictions on Restricted Stock will lapse. Note
that this subsection (A) does not apply to any Award that vests, is
earned or paid-out upon the satisfaction of one or more Performance
Goals.
	 
	 	(B)	 	Performance-Based Awards. With respect
to any Restricted Stock, Restricted Stock Unit, Performance Share,
Performance Unit, or other Award that vests, is earned or paid-out upon
the satisfaction of one or more Performance Goals all Performance Goals
or other vesting criteria will be deemed achieved at target levels and
all other terms and conditions met (see subsection (D) below for
discussion of payment for performance-based awards).
	 
	 	(C)	 	Notice. If an Award becomes fully vested
and exercisable in lieu of assumption or substitution in the event of a
Change in Control, the Administrator shall notify the Participant in
writing or electronically that the Award shall be fully vested and
exercisable for a period of fifteen (15) days from the date of such
notice, and the Award shall terminate upon the expiration of such
period.
	 
	 	(D)	 	Pro-Ration. If the Change in Control
occurs during a Performance Period while the Participant (other than an
Outside Director) is a Service Provider, the Participant will receive
payment of a pro-rated amount of the performance-based Award that would
have actually been earned had the Participant remained a Service
Provider through the end of the Performance Period based on the amount
of time the Participant was a Service Provider during the Performance
Period before the Change in Control. Such payment

A-19

 

	 	 	 	pro-rated amount shall be paid within thirty (30) days of the
consummation of the Change in Control.

	 	(iii)	 	Outside Directors. With respect to Awards granted
to Outside Directors, in the event of a Change of Control, the Participant
shall fully vest in and have the right to exercise the Award as to all of the
Awarded Stock, including Shares as to which such Awards would not otherwise
be vested or exercisable, all restrictions on Restricted Stock will lapse,
and, with respect to Restricted Stock Units, Performance Shares and
Performance Units, all Performance Goals or other vesting criteria will be
deemed achieved at target levels and all other terms and conditions met. The
Outside Director will receive payment of a pro-rated amount of the
Performance Shares, Performance Units, or other performance-based Award that
would have actually been earned had the Outside Director remained a Service
Provider through the end of the Performance Period based on the amount of
time the Outside Director was a Service Provider during the Performance
Period before the Change in Control.

	16.	 	Tax Withholding.

	 	(a)	 	Withholding Requirements. Prior to the delivery of any Shares or cash
pursuant to an Award (or exercise thereof), the Company will have the power and the
right to deduct or withhold, or require a Participant to remit to the Company, an
amount sufficient to satisfy federal, state, local, foreign or other taxes (including
the Participant’s FICA obligation) required to be withheld with respect to such Award
(or exercise thereof).
	 
	 	(b)	 	Withholding Arrangements. The Administrator, in its sole discretion
and pursuant to such procedures as it may specify from time to time, may require a
Participant to satisfy such tax withholding obligation, in whole or in part (without
limitation) by (i) paying cash, (ii) electing to have the Company withhold otherwise
deliverable cash or Shares having a Fair Market Value equal to the amount required to
be withheld, (iii) delivering to the Company already-owned Shares having a Fair Market
Value equal to the amount required to be withheld, or (iv) selling a sufficient number
of Shares otherwise deliverable to the Participant through such means as the
Administrator may determine in its sole discretion (whether through a broker or
otherwise) equal to the amount required to be withheld. The amount of the withholding
requirement will be deemed to include any amount which the Administrator agrees may be
withheld at the time the election is made, not to exceed the amount determined by using
the maximum federal, state or local marginal income tax rates applicable to the
Participant with respect to the Award on the date that the amount of tax to be withheld
is to be determined. The Fair Market Value of the Shares to be withheld or delivered
will be determined as of the date that the taxes are required to be withheld.

	17.	 	No Effect on Employment or Service. Neither the Plan nor any Award will confer upon
a Participant any right with respect to continuing the Participant’s relationship as a Service
Provider with the Company, nor will they interfere in any way with the Participant’s right or
the Company’s right to terminate such relationship at any time, with or without cause, to the
extent permitted by Applicable Laws.
	 
	18.	 	Date of Grant. The date of grant of an Award shall be, for all purposes, the date on
which the Administrator makes the determination granting such Award, or such other later date
as is determined by the Administrator. Notice of the determination shall be provided to each
Participant within a reasonable time after the date of such grant.

A-20

 

	19.	 	Term of Plan. The Plan shall become effective on the Restatement Effective Date. It
shall continue in effect for 10 years thereafter unless terminated earlier under Section 20 of
the Plan.
	 
	20.	 	Amendment and Termination of the Plan.

	 	(a)	 	Amendment and Termination. The Board may at any time amend, alter,
suspend or terminate the Plan.
	 
	 	(b)	 	Stockholder Approval. The Company shall obtain stockholder approval of
any Plan amendment to the extent necessary and desirable to comply with Applicable
Laws.
	 
	 	(c)	 	Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Participant,
unless mutually agreed otherwise between the Participant and the Administrator, which
agreement must be in writing and signed by the Participant and the Company.
Termination of the Plan shall not affect the Administrator’s ability to exercise the
powers granted to it hereunder with respect to Awards granted under the Plan prior to
the date of such termination.

	21.	 	Conditions Upon Issuance of Shares.

	 	(a)	 	Legal Compliance. Shares shall not be issued pursuant to the exercise
of an Award unless the exercise of such Award and the issuance and delivery of such
Shares shall comply with Applicable Laws and shall be further subject to the approval
of counsel for the Company with respect to such compliance.
	 
	 	(b)	 	Investment Representations. As a condition to the exercise or receipt
of an Award, the Company may require the person exercising or receiving such Award to
represent and warrant at the time of any such exercise or receipt that the Shares are
being purchased or received only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

	22.	 	Inability to Obtain Authority. The inability of the Company to obtain authority from
any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the
Company of any liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.
	 
	23.	 	Reservation of Shares. The Company, during the term of this Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.
	 
	24.	 	Stockholder Approval. The Plan will be subject to, and effective as of, approval by
the stockholders of the Company at the 2010 annual meeting of stockholders. Such stockholder
approval will be obtained in the manner and to the degree required under Applicable Laws.

A-21

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