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Exhibit 10.4
    
 
AMENDMENT TO
NON-COMPETITION AND NON-SOLICITATION AGREEMENT
MITIGATION CLAUSE WAIVER
 
 
WHEREAS, Employee and Employer are party to a Non-Competition and Non-Solicitation Agreement effective as of March 12, 2007 (the “NonCompete Agreement”) and an Amended and Restated Employment Agreement dated November 3, 2008 (as amended and in effect on the date hereof (the “Employment Agreement”)
 
WHEREAS, on April 30, 2011, Employee's employment with Employer will terminate without “cause” (as defined in the Employment Agreement); 
 
WHEREAS, Employee is eligible to receive certain severance payments under the Employment Agreement if the release condition set forth in the Section 1.5(b)(ii) of the Employment Agreement Section is timely satisfied;
 
WHEREAS, Employee has indicated that he will timely satisfy the release condition;
 
WHEREAS, Section 1.5(b)(iii) of the Employment Agreement is a mitigation clause that provides for the reduction of Employee's severance payments by the amount of compensation earned by Employee from other employment in the twenty-four month period following the employment termination; 
 
WHEREAS, Employee wishes Employer to waive the mitigation clause of Section 1.5(b)(iii) of the Employment Agreement;
 
WHEREAS, Employer wishes to extend the “Restricted Period” under the NonCompete Agreement from twenty-four months to thirty-six months after Employee's termination of employment;
 
NOW, THEREFORE, the parties agree as follows:
 
		
	1.
	Section 1.1 of the NonCompete Agreement is amended to increase the Restricted Period from twenty-four to thirty-six months following Employee's termination of employment.

 
		
	2.
	Employer waives the mitigation clause of Section 1.5(b)(ii) of the Employment Agreement and shall have no further force and effect. 

 
		
	3.
	Except as provided above, the NonCompete Agreement and Employment Agreement shall remain in full force and effect.

 
 
 
 
 
 
 

 

 

 
                     
	
		
	Signed:
	/s/ Bruce Sohn  4/28/11
Bruce Sohn

	 
	 

	Agreed to by First Solar, Inc.

	 
	 
By:  /s/ Carol Campbell
Carol Campbell
 
Its: Executive Vice President, Human ResourcesEX-10.1

EXHIBIT 10.1

MATERION CORPORATION

2006 STOCK INCENTIVE PLAN

(AS AMENDED AND RESTATED AS OF MAY 4, 2011)

TABLE OF CONTENTS

Page

1. Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . . . . . . A-1

	 	 	 	 	 	 	 
	 	2.	 	 	Definitions

	 	A-1
	 	3.	 	 	Shares Subject to this Plan

	 	A-5
	 	4.	 	 	Performance Restricted Shares

	 	A-6
	 	5.	 	 	Performance Shares and Performance Units

	 	A-7
	 	6.	 	 	Restricted Stock

	 	A-8
	 	7.	 	 	Option Rights

	 	A-9
	 	8.	 	 	Appreciation Rights

	 	A-11
	 	9.	 	 	Restricted Stock Units

	 	A-12
	 	10.	 	 	Administration of the Plan

	 	A-12
	 	11.	 	 	Adjustments

	 	A-13
	 	12.	 	 	Detrimental Activity

	 	A-14
	 	13.	 	 	Participation by Employees of Designated Subsidiaries

	 	A-14
	 	14.	 	 	Non-U.S. Participants

	 	A-14
	 	15.	 	 	Transferability

	 	A-15
	 	16.	 	 	Withholding Taxes

	 	A-15
	 	17.	 	 	Compliance with Section 409A of the Code

	 	A-15
	 	18.	 	 	Effective Date

	 	A-16
	 	19.	 	 	Amendments

	 	A-16
	 	20.	 	 	Termination of the Plan

	 	A-17
	 	21.	 	 	Governing Law

	 	A-17
	 	22.	 	 	Miscellaneous Provisions.

	 	A-17

MATERION CORPORATION

2006 STOCK INCENTIVE PLAN

(AS AMENDED AND RESTATED AS OF MAY 4, 2011)

1. Purpose. The purpose of this Plan is to attract and retain officers, other key
employees and

consultants of Materion Corporation (formerly named Brush Engineered Materials Inc.) (the
Company) and its Subsidiaries and to provide such persons with incentives and rewards for
superior performance and to promote equity participation by the officers, key employees and
consultants of the Company, and thereby reinforcing a mutuality of interest with other
shareholders, and permitting officers, key employees and consultants to share

in the Company’s growth.

2. Definitions. As used in this Plan,

“Appreciation Right” means a right granted pursuant to Section 8 of this Plan, including a
Free-standing

Appreciation Right and a Tandem Appreciation Right.

“Base Price” means the price to be used as the basis for determining the Spread upon the
exercise of a

Free-standing Appreciation Right.

“Board” means the Board of Directors of the Company.

A “Change in Control” of the Company, for purposes of awards granted under this Plan on or
after

May 4, 2011, shall mean, unless otherwise determined by the Committee:

(i) The acquisition by any individual, entity or group (within the meaning of section
13(d)(3) or 14(d)(2)

of the Securities Exchange Act of 1934, as amended (Exchange Act)) (Person) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of voting
securities of the Company where such acquisition causes such Person to own (X) 30% or more
of the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the

election of directors (Outstanding Company Voting Securities) without the approval of the
Incumbent

Board as defined in (ii) below or (Y) 35% or more of the Outstanding Voting Securities
of the Company with the approval of the Incumbent Board; provided, however, that for
purposes of this subsection (i), the following acquisitions shall not be deemed to
result in a Change of Control:

(A) any acquisition directly from the Company that is approved by the Incumbent Board (as
defined

in subsection (ii), below), (B) any acquisition by the Company or a subsidiary of the
Company,

(C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the

Company or any corporation controlled by the Company, (D) any acquisition by any Person
pursuant

to a transaction described in clauses (A), (B) and (C) of subsection (iii) below, or (E)
any acquisition by, or other Business Combination (as defined in (iii) below) with, a
person or group of which employees of the Company or any subsidiary of the Company control
a greater than 25% interest (MBO) but only if the Participant who holds the award in
question is one of those employees of the

Company or any subsidiary of the Company that are participating in the MBO; provided,
further, that

if any Person’s beneficial ownership of the Outstanding Company Voting Securities reaches
or exceeds

30% or 35%, as the case may be, as a result of a transaction described in clause (A) or (B)
above, and such Person subsequently acquires beneficial ownership of additional voting
securities of the

Company, such subsequent acquisition shall be treated as an acquisition that causes
such Person to own 30% or 35% or more, as the case may be, of the Outstanding Company
Voting Securities; and provided, further, that if at least a majority of the members
of the Incumbent Board determines in good faith that a Person has acquired beneficial
ownership (within the meaning of Rule 13d-3

promulgated under the Exchange Act) of 30% or more of the Outstanding Company Voting
Securities

inadvertently, and such Person divests as promptly as practicable a sufficient number of
            shares so that such Person beneficially owns (within the meanings of Rule 13d-3 promulgated
under the Exchange

Act) less than 30% of the Outstanding Company Voting Securities, then no Change of Control
shall

have occurred as a result of such Person’s acquisition; or

	 	(ii)	 	individuals who, as of the date hereof, constitute the Board (Incumbent Board)
(as modified by this clause (ii)) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the Company’s shareholders,
was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board (either by a specific vote or by approval of the proxy statement

of the Company in which such person is named as a nominee for director, without objection
to such nomination) shall be considered as though such individual were a member of the
Incumbent Board,

but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors

or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than

the Board; or

	 	(iii)	 	the consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or the acquisition
of assets of another corporation, or other transaction (Business Combination)
excluding, however, such a Business Combination pursuant	 

to which (A) the individuals and entities who were the ultimate beneficial owners of
voting securities

of the Company immediately prior to such Business Combination beneficially own, directly
or indirectly, more than 65% of, respectively, the then outstanding shares of common stock
and the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the entity resulting from
such Business Combination (including, without limitation, an entity that as a result of
such transaction owns the Company or all

or substantially all of the Company’s assets either directly or through one or more
subsidiaries),

(B) no Person (excluding any employee benefit plan (or related trust) of the Company, the
Company

or such entity resulting from such Business Combination) beneficially owns, directly or
indirectly

(X) 30% or more, if such Business Combination is approved by the Incumbent Board or (Y)
35% or more, if such Business Combination is not approved by the Incumbent Board, of the
combined

voting power of the then outstanding securities entitled to vote generally in the election
of directors

of the entity resulting from such Business Combination and (C) at least a majority of the
members

of the board of directors of the corporation resulting from such Business Combination were
members

of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the

Board, providing for such Business Combination; or

	 	(iv)	 	approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company except pursuant to a Business Combination described in
clauses (A), (B) and (C) of subsection (iii), above.	 

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Committee” means the committee described in Section 10(a) of this Plan.

“Common Shares” means (i) Common Shares without par value of the Company and (ii) any security

into which Common Shares may be converted by reason of any transaction or event of the type
referred to in

Section 11 of this Plan.

“Covered Employee” means a Participant who is, or is determined by the Committee to be
likely to become, a “covered employee” within the meaning of section 162(m) of the Code (or any
successor provision).

“Date of Grant” means the date specified by the Committee on which a grant of Performance
Restricted Shares, Performance Shares or Performance Units, Option Rights, Appreciation Rights or
a grant or sale of Restricted Stock or Restricted Stock Units shall become effective, which shall
not be earlier than the date on which the Committee takes action with respect thereto.

“Designated Subsidiary” means a subsidiary that is (i) not a corporation or (ii) a corporation
in which at

the time the Company owns or controls, directly or indirectly, less than 80 percent of the
total combined voting power represented by all classes of stock issued by such corporation.

“Detrimental Activity” means any wrongdoing or misconduct as defined by the Committee
in an

Evidence of Award, including, but not limited to, any action contributing to a restatement of the
Company’s financials if the award to a Participant is favorably affected by such restatement as
provided under section 10D

of the Exchange Act and any applicable rules or regulations promulgated by the Securities and
Exchange

Commission or any national securities exchange or national securities association on which the
Common

Shares may be traded.

“Evidence of Award” means an agreement, certificate, resolution or other type or form of
writing or other evidence approved by the Committee which sets forth the terms and conditions
of the award granted

under this Plan. An Evidence of Award may be in any electronic medium, may be limited to a
notation on the books and records of the Company and, unless otherwise determined by the
Committee, need not be signed by

a representative of the Company or a Participant.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder, as such law, rules and regulation may be amended from time to time.

“Free-standing Appreciation Right” means an Appreciation Right granted pursuant to Section 8
of this

Plan that is not granted in tandem with an Option Right.

“Incentive Stock Option” means an Option Right that is intended to qualify as an
“incentive stock option” under section 422 of the Code or any successor provision thereto.

“Management Objectives” means the measurable performance objective or objectives established

pursuant to this Plan for Participants who have received grants of Performance Restricted Shares,
Performance Shares or Performance Units or, when so determined by the Committee, Option Rights,
Appreciation Rights, Restricted Stock Units or dividend credits. Management Objectives may be
described in terms of Company-

wide objectives or objectives that are related to the performance of the individual Participant or
of the

Subsidiary, division, department, region or function within the Company or Subsidiary in which the
Participant

is employed. The Management Objectives may be relative to the performance of one or more other
companies

or subsidiaries, divisions, departments, regions or functions within such other companies, and may
be made relative to an index of one or more of the performance criteria themselves. The Committee
may grant awards subject to Management Objectives that are either Qualified Performance-Based
Awards or are not Qualified Performance-Based Awards. The Management Objectives applicable to any
Qualified Performance-Based

Awards to a Covered Employee shall be based on one or more, or a combination, of the following
criteria,

which may be measured before special items designated by the Committee at the time the Management

Objectives are established and/or subject to GAAP definition:

	 	(i)	 	Profits (e.g., operating income, EBIT, EBT, net income, earnings per share,
residual or economic earnings);	 

(ii) Cash Flow (e.g., EBITDA, operating cash flow, total cash flow, free cash flow, residual
cash flow

or cash flow return on investment);

	 	(iii)	 	Returns (e.g., profits or cash flow returns on: assets, invested capital, net
capital employed, and equity);	 

	 	(iv)	 	Working Capital (e.g., working capital divided by sales, days’ sales
outstanding, days’ sales inventory, and days’ sales in payables, or any combination
thereof);	 

(v) Profit Margins (e.g., operating profit or gross profit divided by revenues or value added
revenues); (vi) Liquidity Measures (e.g., debt-to-debt-plus-equity, debt-to-capital,
debt-to-EBITDA, total debt

ratio, EBITDA multiple);

	 	(vii)	 	Sales Growth, Cost Initiative and Stock Price Metrics (e.g., revenues,
revenue growth, new product sales growth, growth in value added sales, stock price
appreciation, total return to shareholders, sales and administrative costs divided
by sales, sales per employee); and	 

	 	(viii)	 	Strategic Initiative Key Deliverable Metrics (e.g., product development,
strategic partnering, research and development, market penetration, geographic business
expansion goals, cost targets, customer satisfaction, employee satisfaction, management
of employment practices and employee

benefits, supervision of litigation and information technology, increase in yield and
productivity and

goals relating to acquisitions or divestitures of subsidiaries, affiliates and joint
ventures).

If the Committee determines that a change in the business, operations, corporate structure or
capital structure

of the Company, or the manner in which it conducts its business, or other events or circumstances
render the

Management Objectives unsuitable, the Committee may in its discretion modify such Management
Objectives

or any related minimum acceptable level of achievement, in whole or in part, as the Committee
deems appropriate and equitable, except in the case of a Qualified Performance-Based Award
(other than in connection with a Change in Control) where such action would result in the loss
of the otherwise available exemption of the award under section 162(m) of the Code. In such
case, the Committee will not make any

modification of the Management Objectives or minimum acceptable level of achievement with respect
to such

Covered Employee.

“Market Value per Share” means, as of any particular date, unless otherwise determined by the

Committee, the per share closing price of a Common Share on the New York Stock Exchange on the day
such determination is being made (as reported in The Wall Street Journal) or, if there was no
closing price reported

on such day, on the next day on which such a closing price was reported; or if the Common
Shares are not listed or admitted to trading on the New York Stock Exchange on the day as of
which the determination is being made, the amount determined by the Committee to be the fair
market value of a Common Share on such day. The Committee is authorized to adopt another fair
market value pricing method, provided such

method is stated in the Evidence of Award, and is in compliance with the fair market value
pricing rules set forth in section 409A of the Code.

“Nonqualified Option” means an Option Right that is not intended to, qualify as a
Tax-qualified Option.

“Optionee” means the person so designated in an Evidence of Award evidencing an outstanding
Option

Right.

“Option Price” means the purchase price payable upon the exercise of an Option Right.

“Option Right” means the right to purchase Common Shares from the Company upon the exercise of
a

Nonqualified Option or a Tax-qualified Option granted pursuant to Section 7 of this Plan.

“Participant” means a person who is selected by the Committee to receive benefits under this
Plan and

(i) is at that time an officer, including without limitation an officer who may also be a member
of the Board,

or other salaried employee or consultant of the Company or a Subsidiary or (ii) has agreed to
commence serving in any of such capacities, within 90 days of the Date of Grant. The term
“Participant” shall also

include any person who is determined by the Committee to provide services to the Company or a
Subsidiary

that are substantially equivalent to those typically provided by an employee.

“Performance Period” means, in respect of a Performance Share or Performance Unit, a period
of time established pursuant to Section 5 of this Plan within, which the Management Objective
relating thereto is to be achieved.

“Performance Restricted Shares” means Common Shares granted pursuant to Section 4 of this Plan
as

to which neither substantial risk of forfeiture nor the restrictions on transfer referred to in
such Section 4 has expired.

“Performance Share” means a bookkeeping entry that records the equivalent of one Common Share
and

is awarded pursuant to Section 5 of this Plan.

“Performance Unit” means a bookkeeping entry that records a unit equivalent to the Market
Value per

Share of one Common Share on the Date of Grant and is awarded pursuant to Section 5 of this Plan.

“Plan” means the Materion Corporation 2006 Stock Incentive Plan (As Amended and
Restated as of

May 4, 2011), as may be further amended from time to time.

“Qualified Performance-Based Award” means any award of Performance Shares, Performance Units,
Performance Restricted Shares or Restricted Stock Units, or portion of such award, to a Covered
Employee that

is intended to satisfy the requirements for “qualified performance-based compensation” under
section 162(m) of the Code.

“Restricted Stock” means Common Shares granted or sold pursuant to Section 6 of this Plan as
to which neither the substantial risk of forfeiture nor the restrictions on transfer referred to
in such Section 6 has

expired. Restricted Stock is not subject to Management Objectives specified by the Committee.

“Restriction Period” means the period of time during which Restricted Stock Units are
subject to restrictions under Section 9 of this Plan.

“Restricted Stock Units” means an award pursuant to Section 9 of this Plan of the right to
receive

Common Shares at the end of a specified Restriction Period.

“Spread” means, in the case of a Free-standing Appreciation Right, the amount by which the
Market

Value per Share on the date when any such right is exercised exceeds the Base Price specified in
such right or,

in the case of a Tandem Appreciation Right, the amount by which the Market Value per Share on
the date when any such right is exercised exceeds the Option Price specified in the related
Option Right.

“Subsidiary” means a corporation, company or other entity (i) at least 50 percent of whose
outstanding shares or securities (representing the right to vote for the election of directors or
other managing authority) are, or (ii) which does not have outstanding shares or securities (as
may be the case in a partnership, joint venture or unincorporated association), but at least 50
percent of whose ownership interest representing the right generally to make decisions for such
other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company
except that for purposes of determining whether any person may be a Participant for purposes of
any grant of Incentive Stock Options, “Subsidiary” means any corporation in which at the time the
Company owns or controls, directly or indirectly, at least 50 percent of the total combined voting
power represented by all classes of stock issued by such corporation.

“Tandem Appreciation Right” means an Appreciation Right granted pursuant to Section 8 of
this Plan that is granted in tandem with an Option Right.

“Tax-qualified Option” means an Option Right that is intended to qualify under particular
provisions of the Code, including without limitation an Incentive Stock Option.

3. Shares Subject to this Plan.

(a) Maximum Shares Available Under Plan.

	 	(i)	 	Subject to adjustment as provided in Section 11 of this Plan, the number
of Common Shares that may be issued or transferred (A) upon the exercise of Option
Rights or Appreciation Rights,

(B) as Restricted Stock or Performance Restricted Shares and released from substantial
risks of forfeiture thereof, (C) in payment of Restricted Stock Units, (D) in payment
of Performance Shares or Performance Units that have been earned, or (E) in payment of
dividend equivalents paid with respect to awards made under this Plan will not exceed
in the aggregate 2,050,000 Common Shares (1,250,000 of which were approved by
shareholders of the Company in 2006 and 800,000 of which will be added upon approval by
shareholders of the Company in 2011), plus any Common Shares relating to awards that
expire or are forfeited or are cancelled under this Plan. Such shares may be shares of
original issuance or treasury shares or a combination of the foregoing.

	 	(ii)	 	Each Common Share issued or transferred pursuant to an award of Option
Rights or Apprecia- tion Rights will reduce the aggregate plan limit described above
in Section 3(a)(i) by one share

of Common Share. Each Common Share issued or transferred (and in the case of
Performance

Restricted Shares and Restricted Stock, released from all substantial risk of
forfeiture) pursuant

to an award other than Option Rights or Appreciation Rights shall reduce the
aggregate plan limit described above in Section 3(a)(i) by (A) one Common Share if
issued or transferred pursuant to an award granted prior to May 4, 2011 and (B) 1.3
Common Shares if issued or transferred pursuant to an award granted on or after May
4, 2011. Any Common Shares that again become available for issuance pursuant to
this Section 3 shall be added back to the

aggregate plan limit in the same manner such shares were originally deducted from the
aggregate plan limit pursuant to this Section 3(a)(ii).

(iii) Subject to the share-counting rules provided in Section 3(a)(ii) and in this
Section 3(a)(iii), the

Common Shares covered by an award granted under this Plan shall not be counted as
used unless and until they are actually issued and delivered to a Participant and,
therefore, the total number of shares available under this Plan as of a given date
shall not be reduced by any shares relating to prior awards that have expired or
have been forfeited or cancelled. Upon payment in cash of the benefit provided by
any award granted under this Plan, any Common Shares that were covered by that award
will be available for issue or transfer hereunder. Notwithstanding anything to the
contrary contained herein: (A) if Common Shares are tendered or otherwise used in
payment of the Option Price of an Option Right, the total number of shares covered
by Option Right being exercised shall count against the aggregate plan limit
described above;(B) Common Shares withheld by the Company to satisfy the tax
withholding obligation shall count against the aggregate plan limit described above;
(C) the number of Common Shares that are repurchased by the Company with Option
Right proceeds shall not increase the aggregate plan limit described above; and (D)
the number of Common Shares covered by an Appreciation Right, to the extent that it
is exercised and settled in Common Shares, whether or not all Common Shares covered
by the award are actually issued to the Participant upon exercise of the
Appreciation Right, shall be considered issued or transferred pursuant to this Plan.

(b) Incentive Stock Option Limit. Notwithstanding anything in this Section 3, or elsewhere in
this Plan, to the contrary and subject to adjustment pursuant to Section 10 of this Plan, the
aggregate number of Common Shares actually issued or transferred by the Company upon the
exercise of Incentive Stock Options shall not exceed 2,050,000.

(c) Individual Participant Limits. Notwithstanding anything in this Section 3, or elsewhere
in this Plan,

to the contrary and subject to adjustment pursuant to Section 10 of this Plan:

	 	(i)	 	No Participant shall be granted Qualified Performance-Based Awards of
Restricted Stock Units, Performance Restricted Shares, Performance Shares, in the
aggregate, for more than

100,000 Common Shares during any calendar year;

	 	(ii)	 	No Participant shall be granted in any calendar year a Qualified
Performance-Based Award of Performance Units having an aggregate maximum value as of
their respective Dates of Grant in excess of $1,500,000; and

	 	(iii)	 	No Participant shall be granted Option Rights or Appreciation Rights, in
the aggregate, for more than 200,000 Common Shares during any calendar year.

(d) Exclusion from Certain Restrictions. Notwithstanding anything in this Plan to the
contrary, up to

5% of the maximum number of Common Shares provided for in Section 3(a)(i) above may be
used

for awards granted under Sections 4 through 10 of this Plan that do not comply with the
three-year requirements set forth in Sections 6(c) and 9(c) of this Plan and the
one-year requirements of

Sections 4(b), 5(b) and 9(b) of this Plan.

4. Performance Restricted Shares. The Committee may, from time to time and upon such
terms and conditions as it may determine, authorize grants to Participants of Performance
Restricted Shares. Each such

grant may utilize any or all of the authorizations, and will be subject to all of the
requirements contained in the following provisions:

	 	(a)	 	Each grant or sale shall constitute an immediate transfer of the ownership of
Common Shares to the Participant in consideration of the performance of services,
entitling such Participant to dividend (subject to Section 4(f) below), voting and other
ownership rights, subject to the substantial risk of forfeiture and restrictions on
transfer hereinafter referred to;

	 	(b)	 	Any grant of Performance Restricted Shares shall specify Management Objectives
which, if achieved, will result in termination or early termination of the restrictions
applicable to such Performance Restricted Shares and each grant may specify in respect of
the specified Management Objectives, a minimum acceptable level of achievement and shall
set forth a formula for determining the number

of Performance Restricted Shares on which restrictions will terminate if performance is at
or above

the minimum level, but falls short of full achievement of the specified Management
Objectives; provided, however, that no such termination shall occur sooner than one year
after the Date of Grant, except in the event of the retirement, death or disability of the
Participant or a Change in Control of

the Company. The grant of a Qualified Performance-Based Award of Performance Restricted
Shares shall specify that, before the termination or early termination of restrictions
applicable to such Performance Restricted Shares, the Committee must determine that the
Management Objectives have been satisfied;

(c) Each grant may be made without payment of additional consideration from the Participant;

	 	(d)	 	Each grant shall provide that the Performance Restricted Shares covered thereby
shall be subject to a “substantial risk of forfeiture” within the meaning of section 83
of the Code for a period to be determined by the Committee on the Date of Grant, and any
grant may provide for the earlier termination of such period in the event of the
retirement, death or disability of the Participant or a Change in Control of the Company;

(e) Each grant shall provide that, during or after the period for which such substantial risk
of forfeiture is

to continue, the transferability of the Performance Restricted Shares shall be prohibited
or restricted

in the manner and to the extent prescribed by the Committee on the Date of Grant. Such
restrictions may include without limitation rights of repurchase or first refusal in the
Company or provisions

subjecting the Performance Restricted Shares to a continuing substantial risk of forfeiture
in the hands

of any transferee;

(f) Any grant shall require that any or all dividends or other, distributions paid on the
Performance

Restricted Shares during the period of such restrictions be automatically sequestered. Such
distribution may be reinvested on an immediate or deferred basis in additional Common
Shares, which may be subject to the same restrictions as the underlying award or such other
restrictions as the Committee

may determine, provided, however, that dividends or other distributions on Performance
Restricted

Shares with restrictions that lapse as a result of the achievement of Management
Objectives shall be deferred until and paid contingent upon the achievement of the
applicable Management Objectives;

And

	 	(g)	 	Each grant of Performance Restricted Shares shall be evidenced by an Evidence of
Award, which shall contain such terms and provisions as the Committee may determine
consistent with this Plan. Unless otherwise directed by the Committee, (i) all
certificates representing Performance Restricted Shares, together with a stock power that
shall be endorsed in blank by the Participant with respect to the Performance Restricted
Shares, shall be held in custody by the Company until all restrictions thereon lapse or
(ii) all Performance Restricted Shares shall be held at the Company’s transfer agent in
book entry form with appropriate restrictions relating to the transfer of such
Performance Restricted Shares.

5. Performance Shares and Performance Units. The Committee may also, from time to time and
upon such terms and conditions as it may determine, authorize grants of Performance Shares and
Performance

Units that shall become payable to the Participant upon the achievement of specified
Management Objectives

during the Performance Period. Each such grant may utilize any or all of the authorizations,
and will be subject to all of the requirements contained in the following provisions:

	 	(a)	 	Each grant shall specify the number of Performance Shares or Performance Units to
which it pertains, which may be subject to adjustment to reflect changes in compensation
or other factors; provided, however, that no such adjustment will be made in the case of
a Qualified Performance-Based Award of Performance Shares or Performance Units (other
than in connection with the death or disability of the Participant or a Change in Control
of the Company) where such action would result in the loss of the otherwise available
exemption of the award under section 162(m) of the Code.

	 	(b)	 	The Performance Period with respect to each Performance Share or Performance
Unit will be such period of time (not less than one year), commencing with the Date of
Grant as shall be determined	 

by the Committee on the Date of Grant and may be subject to earlier termination or
other modification in the event of the retirement, death or disability of the
Participant or a Change in Control of the Company.

	 	(c)	 	Each grant shall specify the Management Objectives that are to be achieved by
the Participant and each grant may specify in respect of the specified Management
Objectives a minimum acceptable level of achievement below which no payment will be
made and shall set forth a formula for determining the amount of any payment to be made
if performance is at or above the minimum	 

acceptable level, but falls short of full achievement of the specified Management
Objective. The grant

of a Qualified Performance-Based Award of Performance Shares or Performance Units shall
specify that, before the Performance Shares or Performance Units will be earned and paid,
the Committee must determine that the Management Objectives have been satisfied.

(d) Each grant shall specify the time and manner of payment of Performance Shares or
Performance

Units that shall have been earned, and any grant may specify that any such amount may be
paid by the Company in cash, Common Shares or any combination thereof and may either
grant to the Participant or reserve to the Committee the right to elect among those
alternatives.

	 	(e)	 	Any grant of Performance Shares may specify that the amount payable with respect
thereto may not exceed a maximum specified by the Committee at the Date of Grant. Any
grant of Performance Units may specify that the amount payable or the number of Common
Shares issued with respect thereto

may not exceed maximums specified by the Committee at the Date of Grant.

	 	(f)	 	The Committee may at the Date of Grant of Performance Shares, provide for the
payment of dividend equivalents to the holder thereof on either a current, deferred or
contingent basis, either in cash or in additional Common Shares, subject in all cases to
payment on a contingent basis based on the Participant’s earning of the Performance
Shares with respect to which such dividend equivalents are

paid.

	 	(g)	 	Each grant of Performance Shares or Performance Units shall be evidenced by an
Evidence of Award, which shall contain such terms and provisions as the Committee may
determine consistent with this

Plan.

6. Restricted Stock. The Committee may, from time to time and upon such terms and conditions
as it may determine, also authorize the grant or sale to Participants of Restricted Stock. Each
such grant or sale

may utilize any or all of the authorizations, and will be subject to all of the requirements
contained in the

following provisions:

	 	(a)	 	Each grant shall, constitute an immediate transfer of the ownership of Common
Shares to the Participant in consideration of the performance of services entitling
such Participant to dividend, voting and other ownership rights, subject to the
substantial risk of forfeiture and restrictions on transfer hereinafter referred to.	 

	 	(b)	 	Each grant or sale may be made without payment of additional consideration or in
consideration of a payment by such Participant that is less than the Market Value per
Share at the Date of Grant.

	 	(c)	 	Each grant or sale shall provide that the Restricted Stock covered thereby shall
be subject to a “substantial risk of forfeiture” within the meaning of section 83 of the
Code for a period of at least three years, except that the restrictions may be removed
no sooner than ratably on an annual basis during the three-year period, to be determined
by the Committee on the Date of Grant. Any grant

may provide for the earlier termination of such period in the event of the
retirement, death or disability of the Participant or a Change in Control of the
Company.

	 	(d)	 	Each grant or sale shall provide that, during or after the period for which such
substantial risk of forfeiture is to continue, the transferability of the Restricted
Stock shall be prohibited or restricted in the manner and to the extent prescribed by the
Committee on the Date of Grant. Such restrictions

may include, without limitation, rights of repurchase or first refusal by the Company or
provisions subjecting the Restricted Stock to a continuing substantial risk of
forfeiture in the hands of any transferee.

	 	(e)	 	Any grant or sale may require that any or all dividends or other distributions
paid on the Restricted Stock during the period of such restrictions be automatically
sequestered. Such distribution may be reinvested on an immediate or deferred basis in
additional, Common Shares which may be subject to the same restrictions as the underlying
award or such other restrictions as the Committee may determine.

	 	(f)	 	Each grant of Restricted Stock shall be evidenced by an Evidence of Award, which
shall contain such terms and provisions as the Committee may determine consistent with
this Plan. Unless otherwise directed by the Committee, (i) all certificates representing
Restricted Stock, together with a stock

power that shall be endorsed in blank by the Participant with respect to the Restricted
Stock, shall be held in custody by the Company until all restrictions thereon lapse, or
(ii) Restricted Stock shall be

held at the Company’s transfer agent in book entry form with appropriate restrictions
relating to the

transfer of such Restricted Stock.

7. Option Rights. The Committee may, from time to time and upon such terms and conditions
as it may determine, authorize grants to Participants of options to purchase Common Shares.
Each such grant may utilize any or all of the authorizations, and will be subject to all of
the requirements contained in the following provisions:

(a) Each grant of Option Rights shall specify the number of Common Shares to which it
pertains.

	 	(b)	 	Each grant shall specify an Option Price per Common Share, which shall be equal
to or greater than the Market Value per Share on the Date of Grant.

	 	(c)	 	Each grant shall specify the form of consideration to be paid in satisfaction
of the Option Price and the manner of payment of such consideration, which may include:

	 	(i)	 	cash in the form of currency or check or other cash equivalent acceptable
to the Company or by wire transfer of immediately available funds;

	 	(ii)	 	the actual or constructive transfer to the Company of nonforfeitable,
unrestricted Common Shares, which are already owned by the Optionee and having a
value at the time of exercise that is equal to the Option Price;	 

	 	(iii)	 	a “net exercise” arrangement pursuant to which the Company will
withhold Common Shares that would otherwise be issued upon exercise (it being
understood that, solely for purposes of determining the number of treasury shares
held by the Company, the shares so withheld shall not be treated as issued and
acquired by the Company upon such exercise);	 

	 	(iv)	 	any other legal consideration that the Committee may deem appropriate,
including without limitation any form of consideration authorized under Section 7(d)
below, on such basis as the Committee may determine in accordance with this Plan; or

(v) any combination of the foregoing.

(d) Any grant of a Nonqualified Option may provide that payment of the Option Price may
also be

made in whole or in part in the form of Restricted Stock or other Common Shares that are
subject to risk of forfeiture or restrictions on transfer. Unless otherwise determined by the
Committee on or

after the Date of Grant, whenever any Option Price is paid in whole or in part by means of any
of

the forms of consideration specified in this Section 7(d), the Common Shares received by the

Optionee upon the exercise of the Nonqualified Option shall be subject to the same risks of
forfeiture

or restrictions on transfer as those that applied to the consideration surrendered by the
Optionee;

provided, however, that such risks of forfeiture and restrictions on transfer shall apply only
to the

same number of Common Shares received by the Optionee as applied to the forfeitable or
restricted

Common Shares surrendered by the Optionee.

	 	(e)	 	To the extent permitted by law, any grant may provide for deferred payment of the
Option Price from the proceeds of sale through a broker of some or, all of the Common
Shares to which the exercise relates.	 

	 	(f)	 	Successive grants may be made to the same Optionee regardless of whether any Option
Rights previously granted to the Optionee remain unexercised.	 

	 	(g)	 	Each grant shall specify the period or periods of continuous employment of the Optionee
by the Company or any Subsidiary that are necessary before the Option Rights or installments
thereof shall become exercisable. A grant of Option Rights may provide for the earlier
exercise of the Option

Rights in the event of the retirement, death or disability of the Participant or a Change in
Control of

the Company.

	 	(h)	 	Any grant of Option Rights may specify Management Objectives which, if achieved, will
result in exercisability of such rights.	 

	 	(i)	 	Option Rights granted under this Plan may be (i) options that are intended to qualify
under particular provisions of the Code, including without limitation Incentive Stock
Options, (ii) options that are not intended to so qualify or (iii) combinations of the
foregoing. Incentive Stock Options may be granted only to Participants who, on the date of
the grant, are officers or other key employees of the

Company or any Subsidiary who must meet the definition of “employees” under section 3401(c)
of the Code.

(j) The exercise of an Option Right will result in the cancellation on a share-for-share basis of
any

Tandem Appreciation Right authorized under Section 8 of this Plan.

	 	(k)	 	No Option Right granted pursuant to this Section 7 may be exercised more than seven years
from the Date of Grant. Subject to this limit, the Committee may cause Option Rights to
continue to be exercisable after termination of employment of the Participant under
circumstances specified by the

Committee.

	 	(l)	 	The Committee reserves the discretion after the Date of Grant to provide for (i) the
availability of a loan at exercise; or (ii) the right to tender in satisfaction of the Option
Price nonforfeitable,

unrestricted Common Shares, which are already owned by the Optionee and have a value at the
time

of exercise that is equal to the Option Price.

(m) The Committee may substitute, without receiving Participant permission, Appreciation Rights

payable only in Common Shares (or Appreciation Rights payable in cash, Common Shares, or in
any combination thereof as elected by the Committee) for outstanding Options; provided,
however, that

the terms of the substituted Appreciation Rights are substantially the same as the terms for
the Options and the difference between the Market Value per Share of the underlying Common
Shares and the Base Price of the Appreciation Rights is equivalent to the difference between
the Market Value Share of the underlying Common Shares and the Option Price of the Options.
If, in the

opinion of the Company’s auditors, this provision creates adverse accounting consequences for
the

Company, it shall be considered null and void.

	 	(n)	 	Each grant of Option Rights shall be evidenced by an Evidence of Award, which
shall contain such terms and provisions as the Committee may determine consistent with
this Plan.

8. Appreciation Rights. The Committee may, from time to time and upon such terms and
conditions as

it may determine, also authorize grants to Participants of Appreciation Rights. An Appreciation
Right shall be

a right of the Participant to receive from the Company an amount, which shall be determined by
the Committee and shall be expressed as a percentage (not exceeding 100%) of the Spread at the
time of the exercise of such right. An Appreciation Right awarded in relation to an Incentive
Stock Option must be granted concurrently with such Incentive Stock Option. Each such grant
may utilize any or all of the authorizations, and will be subject to all of the requirements
contained in the following provisions:

	 	(a)	 	Any grant may specify that the amount payable upon the exercise of an
Appreciation Right may be paid by the Company in cash, Common Shares or any combination
thereof and may either grant to

the Participant or reserve to the Committee the right to elect among those alternatives.

	 	(b)	 	Any grant may specify that the amount payable upon the exercise of an Appreciation
Right shall not exceed a maximum specified by the Committee on the Date of Grant.

	 	(c)	 	Any grant may specify (i) a waiting period or periods before Appreciation
Rights shall become exercisable and (ii) permissible dates or periods on or during
which Appreciation Rights shall be exercisable.	 

	 	(d)	 	Any grant may specify that an Appreciation Right may be exercised only in
the event of the retirement, death or disability of the Participant or a Change
in Control of the Company.	 

	 	(e)	 	Any grant of Appreciation Rights may specify Management Objectives that must be
achieved as a condition of the exercise of such rights.	 

	 	(f)	 	Each grant shall be evidenced by an Evidence of Award, which shall describe the
subject Appreciation Rights, identify any related Option Rights, state that the
Appreciation Rights are subject to all of the terms and conditions of this Plan and
contain such other terms and provisions as the Committee may determine consistent with
this Plan.

(g) No Appreciation Right granted under this Plan may be exercised more than seven years from
the

Date of Grant.

(h) Regarding Tandem Appreciation Rights only:

	 	(i)	 	Each grant shall provide that a Tandem Appreciation Right may be exercised
only at a time when the related Option Right (or any similar right granted under any
other plan of the Company) is

also exercisable and the Spread is positive and by surrender of the related Option
Right (or such other right) for cancellation.

(ii) The Option Price of the related Option Right shall be equal to or greater than the
Market Value

Per Share on the Date of Grant.

(i) Regarding Free-standing Appreciation Rights only:

(i) Each grant shall specify in respect of each Free-standing Appreciation Right a Base
Price per

Common Share, which shall be equal to or greater than the Market Value per Share on the
Date

of Grant;

(ii) Successive grants may be made to the same Participant regardless of whether any
Free-standing

Appreciation Rights previously granted to such Participant remain unexercised; and

(iii) Each grant shall specify the period or periods of continuous employment of the
Participant by

the Company or any Subsidiary that are necessary before the Free-standing
Appreciation Rights

or installments thereof shall become exercisable, and any grant may provide for the
earlier exercise of such rights in the event of the retirement, death or disability
of the Participant or a Change in Control of the Company or similar transaction or
event.

9. Restricted Stock Units. The Committee may, from time to time and upon such terms
and conditions

as it may determine, also authorize grants or sales of Restricted Stock Units to Participants.
Each such grant may utilize any or all of the authorizations, and will be subject to all of the
requirements contained in the following provisions:

(a) Each grant or sale shall constitute the agreement by the Company to deliver Common Shares
or cash

to the Participant in the future in consideration of the performance of services, subject
to the fulfillment during the Restriction Period of such conditions (which may include
the achievement of Management Objectives) as the Committee may specify.

	 	(b)	 	If a grant or sale of Restricted Stock Units specifies that the Restriction Period
will terminate upon the achievement of Management Objectives, such Restriction Period may
not terminate sooner than one year from the Date of Grant. Each grant may specify in
respect of such Management Objectives a minimum acceptable level of achievement and may
set forth a formula for determining the number of Restricted Stock Units which
restriction will terminate if performance is at or above the minimum level, but falls
short of full achievement of the specified Management Objectives. The grant of Qualified
Performance-Based Awards of Restricted Stock Units shall specify that, before the
termination or early termination of the restrictions applicable to such Restricted Stock
Units, the Committee must determine that the Management Objectives have been satisfied.

	 	(c)	 	Each grant or sale may be made without additional consideration from the
Participant or in consideration of a payment by the Participant that is less than the
Market Value per Share on the Date of Grant.	 

(d) If the Restriction Period lapses only by the passage of time rather than the achievement
of

Management Objectives, each grant or sale shall provide that the Restricted Stock Units
covered

thereby shall be subject to a Restriction Period of at least three years, except that a
grant or sale may provide that the Restriction Period shall expire not sooner than
ratably on an annual basis during the three-year period as determined by the Committee
at the Date of Grant.

(e) Notwithstanding anything to the contrary contained in this Plan, any grant or sale of
Restricted Stock

Units may provide for the earlier lapse or other modification of the Restriction Period in
the event of the retirement, death or disability of the Participant or a Change in Control
of the Company.

	 	(f)	 	During the Restriction Period, the Participant shall not have any right to
transfer any rights under the subject award, shall not have any rights of ownership in
the Restricted Stock Units and shall not have any right to vote such shares, but the
Committee may on or after the Date of Grant authorize the payment of dividend equivalents
on such Restricted Stock Units in cash or in additional Common

Shares on a current, deferred or contingent basis; provided, however, that any dividends
or other distributions with respect to the number of shares of Common shares covered by
Restricted Stock

Units that are subject to Management Objectives shall be subject to restrictions and risk
of forfeiture

to the same extent as the Restricted Stock Units with respect to which such dividends
or other distributions have been distributed.

	 	(g)	 	Each grant or sale shall specify the time and manner of payment of Restricted
Stock Units that have been earned. Any grant or sale may specify that the amount payable
with respect thereto may be paid

by the Company in cash, in Common Shares or in any combination thereof and may either
grant to the Participant or retain by the Committee the right to elect among those
alternatives.

	 	(h)	 	Each grant or sale shall be evidenced by an Evidence of Award, which shall
contain such terms and provisions as the Committee may determine consistent with this
Plan.

10. Administration of the Plan.

(a) This Plan shall be administered by the Compensation Committee of the Board. A majority of
the

Committee shall constitute a quorum, and the acts of the members of the Committee who are
present

at any meeting thereof at which a quorum is present, or acts unanimously approved by the
members

of the Committee in writing, shall be the acts of the Committee.

	 	(b)	 	The interpretation and construction, including any action to correct defects and
supply omission and correct administrative errors, by the Committee of any provision of
this Plan or any agreement, notification or document evidencing the grant of Option
Rights, Restricted Stock, Performance

Restricted Shares, Performance Shares or Performance Units, Appreciation Rights or
Restricted Stock

Units and any determination by the Committee pursuant to any provision of this Plan
or any such agreement, notification or document, shall be final and conclusive. No
member of the Committee shall be liable for any such action taken or determination
made in good faith.

	 	(c)	 	The Committee may suspend the right to exercise Option Rights or Appreciation
Rights during any blackout period that is necessary or desirable to comply with the
requirements of applicable laws and/or to extend the award exercise period in a manner
consistent with applicable law.

	 	(d)	 	The Committee may delegate to the appropriate officer or officers of the Company
or any Subsidiary, part or all of its authority with respect to the administration of
awards made by the Committee to individuals who are not officers or directors of the
Company within the meaning of the Exchange

Act.

	 	(e)	 	To the extent permitted by Ohio law, the Committee may, from time to time,
delegate to one or more officers of the Company the authority of the Committee to grant
and determine the terms and

conditions of awards granted under this Plan. In no event shall any such delegation of
authority be permitted with respect to awards to any executive officer or any person
subject to section 162(m) of the Code or who is an officer, director or more than 10%
beneficial owner of any class of the Company’s equity securities that is registered
pursuant to Section 12 of the Exchange Act, as determined by the Committee in accordance
with section 16 of the Exchange Act.

11. Adjustments. The Committee shall make or provide for such adjustments in the (a)
number of Common Shares covered by outstanding Option Rights, Appreciation Rights, Restricted
Stock Units and Performance Shares and Performance Units granted hereunder, (b) prices per share
applicable to such Option Rights and Appreciation Rights, and (c) kind of shares (including shares
of another issuer) covered thereby, as

the Committee in its sole discretion may in good faith determine to be equitably required in
order to prevent dilution or enlargement of the rights of Participants that otherwise would
result from (x) any stock dividend, stock split, combination of shares, recapitalization or
other change in the capital structure of the Company,

(y) any merger, consolidation, spin-off, spin-out, split-off, split-up, reorganization, partial or
complete

liquidation or other distribution of assets, issuance of rights or warrants to purchase
securities or (z) any other corporate transaction or event having an effect similar to any of
the foregoing. Moreover, in the event of any such transaction or event, the Committee may
provide in substitution for any or all outstanding awards under

this Plan such alternative consideration (including cash) as it may in good faith determine to be
equitable

under the circumstances and may require in connection therewith the surrender of all awards so
replaced in a manner that complies with section 409A of the Code. In addition, for each Option
Right or Appreciation Right with an Option Price or Base Price greater than the consideration
offered in connection with any such

transaction or event or Change in Control, the Committee may in its sole discretion elect to
cancel such Option Right or Appreciation Right without any payment to the person holding such
Option Right or Appreciation Right. Moreover, the Committee may on or after the Date of Grant
provide in the agreement

evidencing any award under this Plan that the holder of the award may elect to receive an
equivalent award in respect of securities of the surviving entity of any merger, consolidation
or other transaction or event having a similar effect, or the Committee may provide that the
holder will automatically be entitled to receive such an equivalent award. The Committee shall
also make or provide for such adjustments in the numbers and kind of shares specified in Section
3 of this Plan as the Committee in its sole discretion, exercised in good faith, may determine
is appropriate to reflect any transaction or event described in this Section 11; provided,
however,

that any such adjustment to the number specified in Section 3(a)(i) will be made only if and to
the extent that such adjustment would not cause any option intended to qualify as an Incentive
Stock Option to fail so to

qualify. This Section 11 shall not be construed to permit the re-pricing of any Option Rights in
the absence of any of the circumstances described above in contravention of Section 19(b) hereof.
Notwithstanding the foregoing: (i) any adjustments made pursuant to this Section 11 to awards that
are considered “deferred compensation” within the meaning of section 409A of the Code shall be
made in compliance with the

requirements of section 409A of the Code; (ii) any adjustments made pursuant to this
Section 11 of the Plan

to awards that are not considered “deferred compensation” subject to section 409A of the Code
shall be made

in such a manner as to ensure that after such adjustment, the awards either continue not to
be subject to section 409A of the Code or comply with the requirements of section 409A of the
Code; and (iii) the

Committee shall not have the authority to make any adjustments pursuant to this Section 11 of the
Plan to the extent that the existence of such authority would cause an award that is not intended
to be subject to

section 409A of the Code to be subject thereto.

12. Detrimental Activity. Any Evidence of Award may provide that if a Participant,
either during employment by the Company or a Subsidiary or within a specified period after
termination of such employment, shall engage in any Detrimental Activity, and the Board shall so
find, forthwith upon notice of such finding, the Participant shall:

(a) Forfeit any award granted under this Plan then held by the Participant;

	 	(b)	 	Return to the Company, in exchange for payment by the Company of any amount
actually paid therefore by the Participant, all Common Shares that the Participant has
not disposed of that were	 

offered pursuant to this Plan within a specified period prior to the date of the
commencement of such

Detrimental Activity; and

(c) With respect to any Common Shares so acquired that the Participant has disposed of, pay
to the

Company in cash the difference between:

(i) Any amount actually paid therefore by the Participant pursuant to this Plan; and

(ii) The Market Value per Share of the Common Shares on the date of such acquisition.

To the extent that such amounts are not paid to the Company, the Company may set off the amounts
so

payable to it against any amounts that may be owing from time to time by the Company or a
Subsidiary to the

Participant, whether as wages, deferred compensation or vacation pay or in the form of any other
benefit or

for any other reason, except that no set off shall be permitted against any amount that
constitutes “deferred compensation” within the meaning of section 409A of the Code.

13. Participation by Employees of Designated Subsidiaries. As a condition to the
effectiveness of any grant or award to be made hereunder to a Participant who is an employee
of a Designated Subsidiary, whether or not such Participant is also employed by the Company
or another Subsidiary, the Board may

require such Designated Subsidiary to agree to transfer to such employee (when, as and if provided
for under this Plan, and any applicable Agreement entered into with any such employee pursuant to
this Plan) the Common Shares that would otherwise be delivered by the Company, upon receipt by
such Designated

Subsidiary of any consideration then otherwise payable by such Participant to the Company. Any
such award shall be evidenced by an agreement between the Participant and the Designated
Subsidiary, in lieu of the Company, on terms consistent with this Plan and approved by the Board
and such Designated Subsidiary. All such Common Shares so delivered by or to a Designated
Subsidiary shall be treated as if they had been delivered by or to the Company for purposes of
Section 3 of this Plan, and all references to the Company in

this Plan shall be deemed to refer to such Designated Subsidiary, except for purposes of the
definition of

“Board” and except in other cases where the context otherwise requires.

14. Non-U.S. Participants. In order to facilitate the making of any grant or combination of
grants

under this Plan, the Committee may provide for such special terms for awards to Participants who
are foreign nationals or who are employed by the Company or any Subsidiary or Designated
Subsidiary outside of the United States of America or who provide services to the Company under an
agreement with a foreign nation

or agency, as the Committee may consider necessary or appropriate to accommodate differences in
local law;

tax policy or custom. Moreover, the Committee may approve such supplements to or amendments,
restate- ments or alternative versions of this Plan (including, without limitation, sub-plans)
as it may consider

necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in
effect for any other purpose, and the Secretary or other appropriate officer of the Company may
certify any such document

as having been approved and adopted in the same manner as this Plan. No such special terms,
supplements,

amendments or restatements, however, shall include any provisions that are inconsistent
with the terms of this

Plan as then in effect unless this Plan could have been amended to eliminate such
inconsistency without further approval by the shareholders of the Company.

15. Transferability.

	 	(a)	 	Except as provided in Section 15(c) below, no Option Right or Appreciation Right
or other derivative security granted under this Plan may be transferred by a Participant
except by will or the laws of descent and distribution, and in no event shall any award
granted under this Plan be transferred for value. Except as otherwise determined by the
Committee, Option Rights and Appreciation Rights granted under this Plan may not be
exercised during a Participant’s lifetime except by the Participant

or, in the event of the Participant’s legal incapacity, by his guardian or legal
representative acting in a

fiduciary capacity on behalf of the Participant under state law and court supervision.

(b) The Committee may specify at the Date of Grant, that all or any part of the Common Shares
that are

(i) to be issued or transferred by the Company upon the exercise of Option Rights or
Appreciation Rights, or in payment of Performance Shares or Performance Units or upon the
termination of the Restriction Period applicable to Restricted Stock Units, or (ii) no
longer subject to the substantial risk

of forfeiture and restriction on transfer referred to in Sections 4 and 6 of this Plan,
shall be subject to further restrictions upon transfer.

(c) The Committee may determine that Option Rights (other than Incentive Stock Options) and

Appreciation Rights may be transferable by a Participant, without payment of consideration
therefore

by the transferee, only to any one or more members of the Participant’s immediate family;
provided, however, that (i) no such transfer shall be effective unless reasonable prior
notice thereof is delivered

to the Company and such transfer is thereafter effected in accordance with any terms and
conditions

that shall have been made applicable thereto by the Company or the Committee and (ii) any
such transferee shall be subject to the same terms and conditions hereunder as the
Participant. For the purposes of this Section 15(c), the term “immediate family” means
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daugh-

ter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any
person sharing the Participant’s household (other than a tenant or employee), a trust in
which these persons have more than fifty percent of the beneficial interest, a foundation
in which these persons (or the Participant) control the management of assets, and any
other entity in which these persons (or the Participant)

own more than fifty percent of the voting interests.

16. Withholding Taxes. To the extent that the Company is required to withhold federal,
state, local or foreign taxes in connection with any payment made or benefit realized by a
Participant or other person under

this Plan, and the amounts available to the Company for the withholding are insufficient, it shall
be a condition

to the receipt of any such payment or the realization of any such benefit that the Participant or
such other

person make arrangements satisfactory to the Company for payment of the balance of any taxes
required to be withheld. At the discretion of the Committee, any such arrangements may without
limitation include relinquishment of a portion of any such payment or benefit. Participants shall
also make such arrangements as

the Company may require for the payment of any withholding tax obligation that may arise in
connection with

the disposition of Common Shares acquired upon the exercise of Option Rights. In no event shall
the value of

the Common Shares to be withheld and/or delivered pursuant to this section to satisfy applicable
withholding taxes in connection with the benefit exceed the minimum amount of taxes required to
be withheld.

17. Compliance with Section 409A of the Code.

	 	(a)	 	To the extent applicable, it is intended that this Plan and any grants made
hereunder comply with the provisions of section 409A of the Code, so that the income
inclusion provisions of section 409A(a)(1)

of the Code do not apply to the Participant. This Plan and any grants made hereunder
shall be administered in a manner consistent with this intent. Any reference in this
Plan to section 409A of

the Code will also include any regulations or any other formal guidance promulgated with
respect to

such section by the U.S. Department of the Treasury or the Internal Revenue Service.

	 	(b)	 	Neither a Participant nor any of a Participant’s creditors or beneficiaries shall
have the right to subject any deferred compensation (within the meaning of section 409A
of the Code) payable under this Plan and grants hereunder to any anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.
Except as permitted under section 409A of the Code, any deferred compensation (within the
meaning of section 409A of the Code) payable to a Participant or for a Participant’s
benefit under this Plan and grants hereunder may not be reduced by, or offset against,

any amount owing by a Participant to the Company or any of its affiliates.

	 	(c)	 	If, at the time of a Participant’s separation from service (within the meaning
of section 409A of the Code), (i) the Participant shall be a specified employee
(within the meaning of section 409A of the Code and using the identification
methodology selected by the Company from time to time) and	 

(ii) the Company shall make a good faith determination that an amount payable hereunder
constitutes

deferred compensation (within the meaning of section 409A of the Code) the payment of
which is required to be delayed pursuant to the six-month delay rule set forth in section
409A of the Code in order to avoid taxes or penalties under section 409A of the Code,
then the Company shall not pay

such amount on the otherwise scheduled payment date but shall instead pay it, without
interest, on the first business day of the month after such six-month period.

	 	(d)	 	Notwithstanding any provision of this Plan and grants hereunder to the contrary,
in light of the uncertainty with respect to the proper application of section 409A of the
Code, the Company reserves

the right to make amendments to this Plan and grants hereunder as the Company deems
necessary or desirable to avoid the imposition of taxes or penalties under section 409A
of the Code. In any case, a Participant shall be solely responsible and liable for the
satisfaction of all taxes and penalties that

may be imposed on a Participant or for a Participant’s account in connection with this
Plan and grants hereunder (including any taxes and penalties under section 409A of the
Code), and neither the

Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold
a

Participant harmless from any or all of such taxes or penalties.

18. Effective Date. The Materion Corporation 2006 Stock Incentive Plan first became
effective on May 2, 2006, the date it was approved by shareholders. This amended and
restated Plan shall be effective May 4, 2011 when approved by shareholders.

19. Amendments.

	 	(a)	 	The Committee may at any time and from time to time amend this Plan in whole or in
part; provided, however, that if an amendment to this Plan (i) would materially increase
the benefits accruing to participants under this Plan, (ii) would materially increase the
number of securities which may be

issued under this Plan, (iii) would materially modify the requirements for participation in
this Plan or

(iv) must otherwise be approved by the shareholders of the Company in order to comply with

applicable law or the rules of the New York Stock Exchange or, if the Common Shares are not
traded

on the New York Stock Exchange, the principal national securities exchange upon which the
Common

Shares are traded or quoted, then, such amendment will be subject to shareholder
approval and will not be effective unless and until such approval has been obtained.

	 	(b)	 	Except in connection with a corporate transaction or event described in Section
11 of this Plan, the terms of outstanding awards may not be amended to reduce the
Option Price of outstanding Option Rights or the Base Price of outstanding Appreciation
Rights, or cancel outstanding Option Rights or Appreciation Rights in exchange for
cash, other awards or Option Rights or Appreciation Rights with	 

an Option Price or Base Price, as applicable, that is less than the Option Price of the
original Option Rights or Base Price of the original Appreciation Rights, as applicable,
without shareholder approval. This Section 19(b) is intended to prohibit the repricing of
“underwater” Option Rights and Appreci- ation Rights and will not be construed to prohibit
the adjustments provided for in Section 11 of this Plan. Notwithstanding any provision of
the Plan to the contrary, this Section 19(b) may not be amended without approval by the
Company’s shareholders.

	 	(c)	 	If permitted by section 409A of the Code, but subject to section 19(d) hereof,
in case of termination of employment by reason of the death, disability or normal or
early retirement of a Participant who holds an Option Right or Appreciation Right not
immediately exercisable in full, or any Performance Restricted Shares or Restricted
Stock as to which the substantial risk of forfeiture or the prohibition or restriction
on transfer has not lapsed, or any Restricted Stock Units as to which the Restriction
Period has not been completed, or any Performance Shares or Performance Units which
have not been fully earned, or in the case of a Change in Control of the Company or
similar transaction or event, the Committee may, in its sole discretion, accelerate the
time at which such Option Right or Appreciation Right may be exercised or the time at
which such substantial risk of forfeiture or prohibition or restriction on transfer
will lapse or the time when such Restriction Period will end or the time at which such
Performance Shares or Performance Units will be deemed to have been fully earned or may
waive any other limitation or requirement under any such award.	 

(d) Subject to section 19(c) hereof, the Committee may amend the terms of any award
theretofore

granted under this Plan prospectively or retroactively, except in the case of a Qualified
Performance- Based Award (other than in connection with the Participant’s death or
disability, or a Change in

Control of the Company) where such action would result in the loss of the otherwise
available

exemption of the award under section 162(m) of the Code. In such case, the Board will
not make any modification of the Management Objectives or the level or levels of
achievement with respect to such Qualified Performance-Based Award. Subject to Section
11 above, no such amendment shall impair

the rights of any Participant without his or her consent. The Committee may, in its
discretion, terminate this Plan at any time. Termination of this Plan will not affect the
rights of Participants or their successors under any awards outstanding hereunder and not
exercised in full on the date of termination.

20. Termination of the Plan. No further awards shall be granted under this amended and
restated Plan after May 4, 2021, 10 years from the date on which this 2011 amendment and
restatement was approved by

the shareholders of the Company, but all grants made on or prior to such date will continue in
effect thereafter subject to the terms thereof and of this Plan.

21. Governing Law. The Plan and all grants and awards and actions taken thereunder shall
be governed

by and construed in accordance with the internal substantive laws of the State of Ohio.

22. Miscellaneous Provisions.

(a) The Company shall not be required to issue any fractional Common Shares pursuant to this
Plan. The

Committee may provide for the elimination of fractions or for the settlement of fractions
in cash.

(b) This Plan shall not confer upon any Participant any right with respect to continuance of
employment or other service with the Company or any Subsidiary, nor shall it interfere in any
way with any right the Company or any Subsidiary would otherwise have to terminate such
Participant’s employment or other service at any time.

	 	(c)	 	To the extent that any provision of this Plan would prevent any Option Right that
was intended to qualify as a Tax-qualified Option from qualifying as such, that provision
shall be null and void with respect to such Option Right. Such provision, however, will
remain in effect for other Option Rights and there will be no further effect on any
provision of this Plan.

	 	(d)	 	No award under this Plan may be exercised by the holder thereof if such
exercise, and the receipt of cash or stock thereunder, would be, in the opinion of
counsel selected by the Committee, contrary to law or the regulations of any duly
constituted authority having jurisdiction over this Plan.	 

	 	(e)	 	Leave of absence approved by a duly constituted officer of the Company or any of
its Subsidiaries shall not be considered interruption or termination of service of any
employee for any purposes of	 

this Plan or awards granted hereunder, except that no awards may be granted to an employee
while he

or she is on a leave of absence.

	 	(f)	 	No Participant shall have any rights as a shareholder with respect to any shares
subject to awards granted to him or her under this Plan prior to the date as of which he or
she is actually recorded as the holder of such shares upon the stock records of the
Company.	 

	 	(g)	 	The Committee may condition the grant of any award or combination of awards authorized
under this Plan on the surrender or deferral by the Participant of his or her right to
receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary
to the Participant.

	 	(h)	 	If any provision of this Plan is or becomes invalid, illegal or unenforceable in any
jurisdiction, or would disqualify this Plan or any award under any law deemed applicable by
the Board, such provision shall be construed or deemed amended or limited in scope to
conform to applicable laws or, in the discretion of the Board, it shall be stricken and the
remainder of this Plan shall remain in full force and effect.

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