Document:

Exhibit 10.1

 

GT SOLAR INTERNATIONAL,
INC.

 

EXECUTIVE INCENTIVE PROGRAM

 

FY 2010

 

1.             FISCAL YEAR 2010

 

The FY 2010 Executive Incentive Program (the “Program”)
of GT Solar International, Inc. (the “Company”) shall commence on March 29,
2009 and continue through and including April 3, 2010 (“FY 2010”).

 

2.             ADMINISTRATION

 

The Program shall be administered by the Compensation
Committee (the “Committee”) of the Board of Directors of the Company
(the “Board”).  Subject to the
provisions of the Program, the Committee may establish from time to time such
regulations, provisions, procedures and conditions of the Program which, in its
opinion, may be advisable in the administration of the Program.  No member of the Committee shall be liable
for any action or determination made in good faith with respect to the
administration of the Program, eligibility under the Program or the bonuses
awarded under the Program.

 

3.             ELIGIBILITY

 

The Committee shall
determine, in its sole discretion, any and all executives of the Company that
will be eligible to participate in the Program (each, a “Participant”;
collectively, the “Participants”). 
Participants will be eligible to participate in the Program only upon
execution of a participant agreement with the Company as set forth in Exhibit A
hereto (a “Participant Agreement”). 
Each Participant Agreement shall be subject to the terms and conditions
of the Program and may contain additional terms and conditions (which may vary
from Participant to Participant).  Unless
otherwise specified in such Participant Agreement, the date on which
Participant is deemed to be a participant in the Program (the “Participation
Date”) shall be the date on which the individual started employment with
the Company during FY 2010.

 

As soon as practicable after the Participation Date
and from time to time thereafter, the Committee, in accordance
with Section 5(B)(iii) below, shall adopt in writing certain goals
and objectives (“MBO Goals”) to be achieved by Participant over the course of
FY 2010.  Such goals and objectives may
vary among Participants.  MBO Goals for the Chief Executive Officer
shall reflect those of the executive team and be developed by the Committee
following consultation with and proposal by the Chief Executive Officer on
business priorities for the plan year.

 

 

4.             Plan Performance
Components

 

A.            Incentive
Operating Income

 

“Incentive Operating Income” for FY 2010 means, on a
consolidated basis, income (loss) from operations for such period as reported
in the company’s Form 10-K, adjusted to exclude the effect of (a) stock
compensation expense, (b) any costs of persons other than the company, its
officers and directors, which the Company has incurred under the GT Solar
Holdings LLC Limited Liability Company agreement and (c) any extraordinary income (e.g., proceeds from any legal action) or
expenses in the reasonable determination of the compensation committee.

 

Incentive Operating Income for FY 2010 shall be
derived from the audited consolidated financial statements of the Company and
its subsidiaries covering such period, and shall be subject to the review and
approval of the Committee, whose determination of such Incentive  Operating Income calculation shall be final
and binding.

 

For FY 2010, the Company’s
target  Incentive Operating Income shall
be set forth in each Participant’s Participant Agreement (the “Target
Incentive Operating Income”).  Please note this figure is Company
Confidential and not to be disclosed externally.

 

B.            Incentive
Ending Cash Balance

 

“Incentive Ending Cash Balance” for the incentive plan year
means “cash and cash equivalents” as reported in the Company’s Form 10-K, (a) reduced
by any portion of accounts payable or accrued expenses attributable to the
negotiation of any revised terms with suppliers 
resulting in additional operating charges. (i.e. If normal payment terms
are 45 days and actual AP is at 90 days, a reduction of half of the AP balance
from the Ending Cash Balance shall apply); (b) increased by the amount of any costs paid by the Company
during fiscal 2010 on behalf of persons other than the Company, its officers
and directors under the GT Solar Holdings LLC Limited Liability Company
agreement and (c) any extraordinary cash flows in the reasonable
determination of the compensation committee.

 

For FY 2010, the Company’s
target Incentive Ending Cash Balance shall be set forth in each Participant’s
Participant Agreement (the “Target Incentive Ending Cash Balance”).  Please note this figure is Company
Confidential and not to be disclosed externally.

 

C.            MBO Goals

 

“MBO Goals” for FY 2010
refers to the goal plan assigned to each individual executive in their
respective job function.  The MBO plan
for FY 2010 is reflected in Exhibit A.

 

 

5.             BONUS PAYMENTS

 

A.            Determination
Date

 

The amount, if any, to be paid to each Participant
under the Program (the “Bonus Payment”) shall be determined by the
Committee after the conclusion of FY 2010 following the audit of the Company’s
financial statements by its independent accountants (the “Determination Date”).  Bonus Payments shall be disbursed following
conclusion of the FY 2010 plan year as soon as administratively practicable
after the Determination Date.  All
amounts earned under the Program reflect gross dollar amounts and are,
therefore, subject to applicable withholding and taxation.

 

B.            Bonus Calculation

 

Each Participant’s Bonus
Payment, if any, shall be determined in the following manner:

 

(i)            Target Bonus

 

The Participant Agreement for
each Participant will specify such Participant’s “Target Bonus” (which will be
based upon a percentage of Participant’s base salary).  Adjustments to base salary during the course
of FY 2010, or partial year participation due to a start date during the plan
year, shall result in a [corresponding adjustment to target bonus eligibility
on a pro-rated basis].

 

(ii)           Calculation
of Bonus Payment

 

Each Participant’s Bonus
Payment shall equal the sum of the (i) financial performance component
based on Incentive  Operating Income
(weighted 50%), (ii)  financial performance component based on Incentive
Ending Cash Balance (weighted 25%), and (iii) an MBO component (weighted
25%).  Each of these calculations will be
independent of the other; provided that no bonus will be paid if the company
achieves Incentive Operating Income or Incentive  Ending Cash Balance
that is less than 50% of Target Incentive Operating Income or Target Incentive
Ending Cash Balance.

 

The portion of the bonus that
is based on achievement of Incentive Operating Income and Incentive Ending Cash
Balance will be calculated as follows: the applicable payment increases
linearly so that the participant will receive a 0% payment if we achieved 75%
or less of target; a 100% payment if we achieve 100% of target and a 200%
payment if we achieve 120% or more of target. 
The Compensation Committee reserves the right to adjust the formula for
unplanned, board approved events.  The
portion of the bonus that is based on the achievement of individual MBOs will
be determined based on the board’s assessment of each participant’s performance
as compared to their MBOs.  In no event
shall a participant’s bonus payment exceed two times such participant’s target
bonus opportunity.

 

 

(iii)         MBO Process

 

In order to ensure close alignment with the earned MBO bonus and each
participant’s goal attainment, the Committee, in consultation with the CEO,
shall retain discretionary authority to determine the MBO bonus based upon an
evaluation of each participant’s performance and contribution during the plan
year.

 

The Committee shall determine the MBO Goals applicable
to each Participant as follows:

 

Such Participant shall submit to the Chief Executive Officer of the
Company an initial proposal for such Participant’s MBO Goals for FY 2010.  The Chief Executive Officer shall review such
proposal, and at the Chief Executive Officer’s sole discretion, discuss such
proposal with such Participant and/or modify such proposal.  The Chief Executive Officer shall then submit
such proposal (after giving effect to any modifications the Chief Executive Officer
may have made in his or her sole discretion) to the Committee.  The Committee shall review such proposal, and
at the Committee’s sole discretion, discuss such proposal with the Chief
Executive Officer, consult with the Board on such proposal, and/or modify such
proposal.

 

Although the specific objectives will be
determined by the Committee and will vary for each Participant, the following
is intended to provide general guidance regarding the competencies that may be
considered in determining a Participant’s MBO Goals:

 

1.                                       Achieving corporate goals and
objectives specified for FY 2010.

 

2.                                       Developing and executing plans and functional goals
that directly and/or indirectly influence the organization’s ability to achieve
its financial goals for FY 2010.

 

3.                                       Delivering highly effective management of
operations through leadership of teams, timely communication and the deployment
of business processes and systems that anticipate and prepare the organization
for growth.

 

4.                                       Contributing to an organizational culture where people
can grow and contribute.  Actively
supporting a culture that values safety, operational excellence, initiative,
innovation, teamwork and quality in everything we do.

 

5.                                       Working as a productive and vital member
of the management team.  Building productive
collaborative relationships with peers to meet organizational challenges
together as a team.  Being responsive to
the needs of other team members and cultivating a service mentality internally
within the line of authority.

 

6.                                       Achievement of functional financial
measurements.

 

 

The Committee, after
consultation with the Chief Executive Officer and/or the Board at the Committee’s
sole discretion, shall
determine such Participant’s MBO Goals at its sole discretion and using such
criteria as it deems reasonable for each Participant with reference to each
Participant’s specific functional objectives.

 

C.            Pro-rata Bonus Payments

 

In the event that the Participation Date of a
Participant occurs after the commencement of FY 2010, such Participant shall be
eligible for a pro-rated Bonus Payment calculated based on the number of days
such Participant was employed by the Company during FY 2010.  Unless otherwise provided in a written
agreement between the Company and Participant, no Participant shall be entitled
to receive a Bonus Payment if, prior to March 31, 2010, such Participant’s
employment with the Company is terminated for any reason.

 

6.             AUTHORITY

 

The Committee shall have final authority to make all
determinations specified in or permitted or deemed necessary under the Program.

 

7.             MISCELLANEOUS

 

A.            Assignment and Transfer

 

No Bonus Payment or any rights or interests therein
shall be assignable or transferable by a Participant.

 

B.            No Guarantee of Employment / No Equity
Rights

 

Nothing contained in the Program
shall be construed to create or imply a guarantee of employment for any period
of time.  Unless otherwise provided in a
written agreement between Participant and the Company, employment with the
Company is considered to be at-will and may be terminated at any time by
Participant or the Company.

 

C.            Withholding

 

The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy any federal, state, local and foreign taxes of any kind
(including, but not limited to, the Participant’s FICA and SDI obligations)
which the Committee, in its sole discretion, deems necessary to be withheld or
remitted to comply with the Internal Revenue Code of 1986, as amended, and/or
any other applicable law, rule or regulation with respect to any Bonus
Payment. Subject to applicable law, each Participant agrees that the Company
may satisfy withholding obligations from any source of funds available to the
Company and otherwise payable to Participant, including salary payments.

 

 

D.            Governing Law

 

All questions pertaining to the validity, construction
and administration of the
Program and any Participant’s Participant Agreement shall be determined in
accordance with the laws of the State of New Hampshire.

 

E.             Amendment and Termination of Program

 

The Committee shall have the right in its sole
discretion to amend the Program at any time and from time to time; provided
that no such amendment shall materially and adversely affect the rights of any
Participant without the consent of such Participant.

 

F.             Severability

 

The invalidity or unenforceability of any provisions
of the Program in any jurisdiction shall not affect the validity, legality or
enforceability of the remainder of the Program in such jurisdiction or the
validity, legality or enforceability of any provision of the Program in any
other jurisdiction, it being intended that all rights and obligations of the
parties hereunder shall be enforceable to the fullest extent permitted by law.

 

*   *  
*   *   *

 

 

EXHIBIT
A

 

PARTICIPANT
AGREEMENT

 

GT SOLAR INTERNATIONAL,
INC.

 

PARTICIPANT AGREEMENT TO
THE

EXECUTIVE INCENTIVE PROGRAM

 

Participant
Agreement made as of [DATED] (this “Agreement”) between GT Solar
International, Inc., a Delaware corporation (the “Company”), and [                        ]
(“Participant”). 
Capitalized terms used but not defined herein shall have the meanings
assigned to such terms in the FY 2010 Executive Incentive Program (the “Program”).

 

1.             Right to Participate.  The Company hereby grants to Participant the right to
participate in the Program pursuant to the terms and conditions thereto.

 

2.             Participant Acknowledgment. 
Attached hereto as Exhibit A is a copy of the Program.  Participant hereby acknowledges receipt of a
copy of the Program and agrees to be bound by all terms and provisions thereof.

 

3.             Participation Date.  Participant’s
Participation Date shall be [March 30, 2009].

 

4.             Incentive Operating Income. 
For FY 2010, the Incentive Operating Income for purposes of determining
Participant’s Bonus Payment, if any, is $[                        ].  Please note this figure is Company Confidential and
not to be disclosed externally.

 

5.             Incentive Ending Cash Balance. 
For FY 2010, the Incentive Ending Cash Balance for purposes of
determining Participant’s Bonus Payment, if any, is [                        ].  Please note this figure is Company
Confidential and not to be disclosed externally.

 

6.             Target Bonus.  For purposes
of the Program, Participant’s Target Bonus shall equal $[                        ]
 (representing [      ]%)
of Participant’s base salary during FY 2010. 
Adjustments to base salary during the course of FY 2010, or partial year
participation due to a start date during the plan year, shall result in a
[corresponding adjustment to target bonus eligibility on a pro-rated basis

 

7.             Individual Goal Achievement. 
Participant acknowledges and agrees that the Bonus Payment, if any, will
be subject to Participant achieving certain individual goals and standards
identified by the Committee.  The
criteria used in assessing individual performance, the weight to be assigned
such criteria and such Participant’s Performance Achievement Percentage shall
be determined by the Committee in its sole discretion.  The Bonus Payment, if any, will be calculated
in accordance with the Program

 

8.             MBO Plan.  The executive
MBO plan for FY 2010 for Participant is as follows:

 

GOALS:

 

[                                                      ]

 

1

 

[                                                      ]

 

[                                                      ]

 

9.             Binding Effect. 
This Agreement shall be binding upon and inure to the benefit of any
successors to the Company and all persons lawfully claiming under Participant.

 

10.           Complete Agreement.  This
Agreement, those documents expressly referred to herein and other documents of
even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

11.           Future Incentive Bonus Plans. 
The Company may in the future adopt one or more incentive plans or
programs, with regard to which the Committee shall retain the exclusive right
in its sole discretion to determine the applicable terms and to identify the
persons eligible to participate.  Nothing
in this Agreement shall be understood to grant or guarantee Participant a right
to participate in any such plan or program.

 

*   *   *  
*   *

 

IN WITNESS WHEREOF, the
Company and Participant have executed this Agreement as of the date first above
written.

 

 

	
   

  	
  GT
  SOLAR INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [                            ]

  

 

2Exhibit 10.2

 

GT SOLAR INTERNATIONAL, INC.

 

SECTION 162(m) PERFORMANCE
INCENTIVE PLAN

 

Section 1.  Purpose

 

The purpose of this GT Solar International, Inc. Section 162(m) Performance
Incentive Plan is to provide a means of determining both annual and long-term
incentive compensation for certain of the Company’s executive officers in a
manner that qualifies as “performance-based compensation” within the meaning of
Section 162(m) of the Internal Revenue Code.

 

Section 2.  Definitions

 

The following capitalized words as used herein shall have the following
meanings:

 

(a)   “Award” means any
award granted under the Plan to an Eligible Employee by the Committee subject
to such terms and conditions as the Committee may establish under the terms of
the Plan.

 

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

 

(c)   “Cash-Based Award”
means any Award denominated by reference to a dollar amount.

 

(d)   “Committee” means the
Compensation Committee of the Board (or such other committee of the Board that
the Board shall designate from time to time) or any subcommittee thereof
consisting of two or more directors each of whom is an “outside director”
within the meaning of Section 162(m).

 

(e)   “Common Shares” means
the Company’s common stock, par value $0.01 per share, or any security issued
by the Company or any successor in exchange or in substitution therefor.

 

(f)    “Company” means GT
Solar International, Inc., a Delaware corporation.

 

(g)   “Eligible Employee”
means any employee or executive officer of the Company or any of its
subsidiaries who is or, in the opinion of the Committee, may become a “covered
employee” within the meaning of Section 162(m).

 

(h)   “Fair Market Value”
of a Common Share as of a given date shall have the same meaning as applies
under the Share Incentive Plan.

 

(i)    “GAAP” means
accounting principles generally accepted in the United States of America from
time to time.

 

(j)    “Participant” means
an Eligible Employee granted an Award under the Plan.

 

(k)   “Performance Criteria”
shall have the meaning set forth in Section 4(b)
hereof.

 

(l)    “Performance Goals”
shall have the meaning set forth in Section 4(c)
hereof.

 

(m)  “Performance Period”
means a period determined by the Committee of not more than five years over
which the Performance Goals set forth in the Award are to be achieved.

 

(n)   “Plan” means this GT
Solar International, Inc. Section 162(m) Performance Incentive Plan, as it may
be amended from time to time.

 

(o)   “Section 162(m)”
means Section 162(m) of the Internal Revenue Code of 1986 (the “Code”), as amended from time to time, and
any regulations promulgated thereunder.

 

(p)   “Section 409A” shall
mean Section 409A of the Code and the treasury regulations and other official
guidance promulgated thereunder.

 

A-1

 

(q)   “Share-Based Award”
means any Award denominated by reference to a number of Common Shares.

 

(r)    “Share Incentive Plan”
means the Company’s 2008 Equity Incentive Plan, as it may be amended and
restated from time to time.

 

(s)   “Treasury Regulation”
means the U.S. Department of Treasury regulations promulgated under the Code,
as amended, including any successor provisions thereto.

 

Section 3. 
Administration of the Plan

 

(a)   Committee Members.  The Plan shall be administered by the
Committee. The Committee shall have such powers and authority as may be
necessary or appropriate for the Committee to carry out its functions as
described in the Plan. No member of the Committee shall be liable for any
action or determination made in good faith by the Committee with respect to the
Plan or any Award thereunder.

 

(b)   Discretionary Authority.  Subject to the express limitations of the
Plan, the Committee shall have authority in its discretion to determine the
Eligible Employees to whom, and the time or times at which, Awards may be
granted, whether an Award will be a Cash-Based Award or a Share-Based Award,
the Performance Period, the Performance Criteria and the Performance Goals, and
all other terms of the Award. The Committee shall also have discretionary
authority to interpret the Plan, to make all factual determinations under the
Plan, and to make all other determinations necessary or advisable for the
administration of the Plan. The Committee may prescribe, amend, and rescind rules
and regulations relating to the Plan. All interpretations, determinations, and
actions by the Committee shall be final, conclusive, and binding upon all
parties.

 

(c)   Delegation of Authority.  The Committee may delegate, to any
appropriate officer or employee of the Company, responsibility for certain
ministerial functions (but not the exercise of discretion) under this Plan.

 

Section 4.  Awards

 

(a)   Grant of Awards.  The Committee may grant to any Eligible
Employee Cash-Based Awards and/or Share-Based Awards under the Plan with
respect to one or more Performance Periods under the Plan. Performance Periods
may run consecutively and/or concurrently, as determined by the Committee.
Before the 90th day of the Performance Period (or no later than such earlier or
later date as may be the applicable deadline for the establishment of
performance goals permitting the compensation payable to such Eligible Employee
for such year hereunder to qualify as “qualified performance-based compensation”
under Treasury Regulation Section 1.162-27(e)) (the “Determination Date”), the
Committee will determine the type of Award, the duration of the Performance
Period, the Performance Criteria, the applicable Performance Goals relating to
the Performance Criteria, and the amount and terms of payment to be made upon
achievement of the Performance Goals.

 

(b)   Performance Criteria.  For purposes of Awards granted under the
Plan, the “Performance Criteria” shall be one or any combination of the
following, for the Company or any identified subsidiary or business unit, as
determined by the Committee no later than the Determination Date: net earnings;
net income; operating income, including adjusted operating income; earnings
before interest and taxes; earnings before interest, taxes, depreciation, and
amortization; cash flow; return on equity; return on net assets employed;
earnings per share; revenue growth; cash flow from operations; return on
assets; earnings per share from continuing operations; net asset turnover;
capital expenditures; inventory measures, including inventory turnover; working
capital; bookings; gross or operating margin; return on total assets; return on
invested capital; return on investment; return on revenue; market share;
economic value added; cost of capital; expense reduction levels; stock price
performance;

 

A-2

 

productivity;
customer satisfaction; employee satisfaction; consolidated pre-tax earnings;
net or gross revenues and total shareholder return for the applicable
performance period; book value per share; net cash position; accounts
receivable measures; shipments; total shareholder return; sale of all or any
portion of the Company; acquisition of a business or businesses; development of
new products; creation of intellectual property, including but not limited to
patents, copyrights, and trade secrets. Each of the Performance Criteria shall
be applied and interpreted in accordance with GAAP or such other objective
measure as established by the Committee at the time of the Award.

 

(c)   Performance Goals.  For purposes of Awards granted under the
Plan, the “Performance Goals” shall be the levels of achievement relating to
the Performance Criteria selected by the Committee for the Award. The
Performance Goals shall be expressed as an objective formula or standard that
precludes discretion to increase the amount of compensation payable that would
otherwise be due upon attainment of the goal. The Performance Goals may be
applied on an absolute basis or relative to an identified index or peer group,
as specified by the Committee. The Performance Goals may be applied by the
Committee after excluding charges for restructurings, discontinued operations,
extraordinary items, and other unusual or non-recurring items, and the
cumulative effects of accounting changes, each as determined in accordance with
GAAP, or such other objective measure established by the Committee, provided
the adjustments are specified at the time the Award is established.

 

(d)   Maximum Awards.  The maximum amount that may become payable to
any one Participant during any one calendar year under all Cash-Based Awards is
limited to $5,000,000. The maximum number of Common Shares that may be subject
to all Share-Based Awards granted to any one Participant during any one
calendar year shall be limited to 1,000,000 Common Shares.

 

(e)   Negative Discretion.  Notwithstanding anything else contained in
the Plan to the contrary, the Committee shall have the right, in its
discretion, (i) to reduce or eliminate the amount otherwise payable to any
Participant under an Award and (ii) to establish rules or procedures that have
the effect of limiting the amount payable to any Participant to an amount that
is less than the maximum amount otherwise payable under an Award. The Committee
shall not have discretion to increase the amount that is otherwise payable to
any Participant under an Award. No provision of this Plan shall preclude the
Committee from exercising negative discretion with respect to any Award
hereunder, within the meaning of Treasury Regulation Section 1.162-27(e)(2)(iii)(A).

 

Section 5.  Payment of
Awards

 

(a)   Certification.  Following the conclusion of the Performance
Period of an Award, the Committee shall certify in writing whether the
Performance Goals for that Performance Period have been achieved, or certify
the degree of achievement, if applicable.

 

(b)   Payment.  Upon certification of the Performance Goals
for an Award, the Committee shall determine the amount of payment to the
Participant pursuant to the Award, if any. Upon certification of the
Performance Goals for a Share-Based Award, the Committee shall determine the
number of Common Shares payable to the Participant pursuant to the Award, if
any. Notwithstanding the foregoing, both Cash-Based Awards and Share-Based
Awards may be paid in any combination of cash or Common Shares as determined by
the Committee in its discretion, based upon the Fair Market Value of the Common
Shares at the time of payment. Unless otherwise determined by the Committee at
the time an Award is granted, if the Participant’s employment with the Company
terminates for any reason prior to the date such Award is paid, the Participant
shall forfeit such Award and shall have no further rights thereunder.

 

(c)  Share Restrictions.  Any Common Shares payable in respect of an
Award shall be subject to such terms, conditions, restrictions and/or
limitations as the Committee shall determine in its discretion. Any Common
Shares that become payable under an Award shall be paid from the Common Shares 

 

A-3

 

authorized
under the Company’s Share Incentive Plan, and shall be subject to the terms and
conditions of such plan.

 

(d)   Employment Requirement.  In the event of the termination of employment
of a Participant with the Company or a subsidiary before the payment of an
Award, the Award shall be forfeited and automatically be cancelled without
further action of the Company or the Committee, subject to such conditions as
may be approved by the Committee for certain circumstances of termination of
employment, such as death or disability, if approved by the Committee in its
sole discretion.

 

(e)   Tax.  Any payment under this Plan shall be subject
to applicable federal, state or local income and employment taxes and any other
amounts that the Company is required by law to deduct and withhold from such
payment. Any provision of this Plan to the contrary notwithstanding, (a) awards
under this Plan are intended to qualify as “qualified performance-based
compensation” under Treasury Regulation Section 1.162-27(e) and (b) any
provision of the Plan that would prevent an award under the Plan from so
qualifying shall be administered, interpreted and construed to carry out such
intention and any provision that cannot be so administered, interpreted and
construed shall to that extent be disregarded.

 

Section 6.  General
Provisions

 

(a)   Effective Date.  Subject to the approval of the Company’s
shareholders, the Plan shall be effective with respect to Performance Periods
beginning on or after January 1, 2010.

 

(b)   Amendment and
Termination.  The Company may, from
time to time, by action of the Board, amend, suspend or terminate any or all of
the provisions of the Plan. Notwithstanding the foregoing, no amendment will be
effective without shareholder approval if such approval is required to satisfy
the requirements of Section 162(m). To the extent necessary for purposes of Section
162(m), this Plan shall be resubmitted to shareholders for their reapproval
with respect to awards payable for the taxable years of the Company commencing
on and after 5th anniversary of initial shareholder approval.

 

(c)   Other Compensation.  Nothing contained in the Plan shall prohibit
the Company or any subsidiary from establishing other additional incentive
compensation arrangements for one or more employees of the Company or from
paying compensation outside of the terms of the Plan, whether or not such
compensation qualifies as performance-based compensation under Section 162(m).

 

(d)   No Right to Employment.  Nothing in the Plan shall be deemed to give
any Participant the right to remain employed by the Company or any subsidiary
or to limit, in any way, the right of the Company or any subsidiary to
terminate, or to change the terms, of a Participant’s employment at any time.

 

(e)   Governing Law.  The Plan shall be governed by and construed
in accordance with the laws of Delaware, without regard to choice-of-law rules.

 

(f)    Section 409A.  Although the Company makes no guarantee with
respect to the tax treatment of payments hereunder and shall not be responsible
in any event with regard to non-compliance with Section 409A, the Plan is
intended to either comply with, or be exempt from, the requirements of Section 409A.
To the extent that the Plan is not exempt from the requirements of Section 409A,
the Plan is intended to comply with the requirements of Section 409A and shall
be limited, construed and interpreted in accordance with such intent.
Accordingly, the Company reserves the right to amend the provisions of the Plan
at any time and in any manner without the consent of Participants solely to
comply with the requirements of Section 409A and to avoid the imposition of the
additional tax, interest or income inclusion under Section 409A on any payment
to be made hereunder. Notwithstanding the foregoing, in no event whatsoever
shall the Company be liable for any additional tax, interest, income inclusion
or other penalty that may be imposed on a Participant by Section 409A (or any
similar state or local law) or for damages for failing to comply with Section 409A
(or any similar state or local law).

 

A-4

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