Document:

EXHIBIT 10.1

Exhibit 10.1

 

 

AMERICAN COMMERCIAL LINES INC.

2008 OMNIBUS INCENTIVE PLAN

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1. PURPOSE 
	 	 	1	 
	2. DEFINITIONS 
	 	 	1	 
	3. ADMINISTRATION OF THE PLAN 
	 	 	6	 
	3.1. Board
	 	 	6	 
	3.2. Committee
	 	 	6	 
	3.3. Terms of Awards
	 	 	7	 
	3.4. No Repricing
	 	 	8	 
	3.5. Deferral Arrangement
	 	 	8	 
	3.6. No Liability
	 	 	8	 
	3.7. Share Issuance/Book-Entry
	 	 	9	 
	4. STOCK SUBJECT TO THE PLAN 
	 	 	9	 
	4.1. Number of Shares Available for Awards
	 	 	9	 
	4.2. Adjustments in Authorized Shares
	 	 	9	 
	4.3. Share Usage
	 	 	9	 
	5. EFFECTIVE DATE, DURATION AND AMENDMENTS 
	 	 	10	 
	5.1. Effective Date
	 	 	10	 
	5.2. Term
	 	 	10	 
	5.3. Amendment and Termination of the Plan
	 	 	10	 
	6. AWARD ELIGIBILITY AND LIMITATIONS 
	 	 	10	 
	6.1. Service Providers and Other Persons
	 	 	10	 
	6.2. Successive Awards and Substitute Awards
	 	 	10	 
	6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards
	 	 	11	 
	7. AWARD AGREEMENT 
	 	 	11	 
	8. TERMS AND CONDITIONS OF OPTIONS 
	 	 	11	 
	8.1. Option Price
	 	 	11	 
	8.2. Vesting
	 	 	12	 
	8.3. Term
	 	 	12	 
	8.4. Termination of Service
	 	 	12	 
	8.5. Limitations on Exercise of Option
	 	 	12	 
	8.6. Method of Exercise
	 	 	12	 
	8.7. Rights of Holders of Options
	 	 	13	 
	8.8. Delivery of Stock Certificates
	 	 	13	 
	8.9. Transferability of Options
	 	 	13	 
	8.10. Family Transfers
	 	 	13	 
	8.11. Limitations on Incentive Stock Options
	 	 	13	 
	8.12. Notice of Disqualifying Disposition
	 	 	14	 
	9. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 
	 	 	14	 
	9.1. Right to Payment and Grant Price
	 	 	14	 
	9.2. Other Terms
	 	 	14	 
	9.3. Term
	 	 	14	 
	9.4. Transferability of SARS
	 	 	15	 
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	 	 	Page
	9.5. Family Transfers
	 	 	15	 
	10. TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	 	 	15	 
	10.1. Grant of Restricted Stock or Restricted Stock Units
	 	 	15	 
	10.2. Restrictions
	 	 	15	 
	10.3. Restricted Stock Certificates
	 	 	16	 
	10.4. Rights of Holders of Restricted Stock
	 	 	16	 
	10.5. Rights of Holders of Restricted Stock Units
	 	 	16	 
	10.5.1. Voting and Dividend Rights
	 	 	16	 
	10.5.2. Creditor’s Rights
	 	 	16	 
	10.6. Termination of Service
	 	 	17	 
	10.7. Purchase of Restricted Stock and Shares Subject to
Restricted Stock Units
	 	 	17	 
	10.8. Delivery of Stock
	 	 	17	 
	10.9. Unrestricted Pool
	 	 	17	 
	11. TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS 
	 	 	18	 
	12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK 
	 	 	18	 
	12.1. General Rule
	 	 	18	 
	12.2. Surrender of Stock
	 	 	18	 
	12.3. Cashless Exercise
	 	 	18	 
	12.4. Other Forms of Payment
	 	 	18	 
	13. TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 
	 	 	19	 
	13.1. Dividend Equivalent Rights
	 	 	19	 
	13.2. Termination of Service
	 	 	19	 
	14. TERMS AND CONDITIONS OF PERFORMANCE SHARES,
PERFORMANCE SHARE UNITS, PERFORMANCE AWARDS AND ANNUAL INCENTIVE AWARDS
	 	 	19	 
	14.1. Grant of Performance Share Units/Performance Shares
	 	 	19	 
	14.2. Value of Performance Share Units/Performance Shares
	 	 	19	 
	14.3. Earning of Performance Share Units/Performance Shares
	 	 	20	 
	14.4. Form and Timing of Payment of Performance Share Units/Performance
Shares
	 	 	20	 
	14.5. Performance Conditions
	 	 	20	 
	14.6. Performance Awards or Annual Incentive Awards Granted to Designated
Covered Employees
	 	 	20	 
	14.6.1. Performance Goals Generally
	 	 	21	 
	14.6.2. Timing For Establishing Performance Goals
	 	 	21	 
	14.6.3. Settlement of Awards; Other Terms
	 	 	21	 
	14.6.4. Performance Measures
	 	 	21	 
	14.6.5. Evaluation of Performance
	 	 	23	 
	14.6.6. Adjustment of Performance-Based Compensation
	 	 	24	 
	14.6.7. Board Discretion
	 	 	24	 
	14.7. Status of Section Awards Under Code Section 162(m)
	 	 	24	 
	 - ii -

 

 

	 	 	 	 	 
	 	 	Page
	15. PARACHUTE LIMITATIONS 
	 	 	24	 
	16. REQUIREMENTS OF LAW 
	 	 	25	 
	16.1. General
	 	 	25	 
	16.2. Rule 16b-3
	 	 	26	 
	17. EFFECT OF CHANGES IN CAPITALIZATION 
	 	 	26	 
	17.1. Changes in Stock
	 	 	26	 
	17.2. Reorganization in Which the Company Is the Surviving Entity Which
does not Constitute a Corporate Transaction
	 	 	27	 
	17.3. Corporate Transaction in which Awards are not Assumed
	 	 	27	 
	17.4. Corporate Transaction in which Awards are Assumed
	 	 	28	 
	17.5. Adjustments
	 	 	28	 
	17.6. No Limitations on Company 
	 	 	28	 
	18. GENERAL PROVISIONS 
	 	 	29	 
	18.1. Disclaimer of Rights
	 	 	29	 
	18.2. Nonexclusivity of the Plan
	 	 	29	 
	18.3. Withholding Taxes
	 	 	29	 
	18.4. Captions
	 	 	30	 
	18.5. Other Provisions
	 	 	30	 
	18.6. Number and Gender
	 	 	30	 
	18.7. Severability
	 	 	30	 
	18.8. Governing Law
	 	 	30	 
	18.9. Section 409A of the Code
	 	 	30	 

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AMERICAN COMMERCIAL LINES INC.

2008 OMNIBUS INCENTIVE PLAN

     American Commercial Lines Inc., a Delaware corporation (the “Company”), sets forth herein the
terms of its 2008 Omnibus Incentive Plan (the “Plan”), as follows:

1. PURPOSE

     The Plan is intended to enhance the Company’s and its Affiliates’ (as defined herein) ability
to attract and retain highly qualified officers, directors, key employees, and other persons, and
to motivate such persons to serve the Company and its Affiliates and to expend maximum effort to
improve the business results and earnings of the Company, by providing to such persons an
opportunity to acquire or increase a direct proprietary interest in the operations and future
success of the Company. To this end, the Plan provides for the grant of stock options, stock
appreciation rights, restricted stock, restricted stock units (including deferred stock units),
unrestricted stock, dividend equivalent rights and cash awards. Any of these awards may, but need
not, be made as performance incentives to reward attainment of annual or long-term performance
goals in accordance with the terms hereof. Stock options granted under the Plan may be
non-qualified stock options or incentive stock options, as provided herein, except that stock
options granted to outside directors and any consultants or advisers providing services to the
Company or an Affiliate shall in all cases be non-qualified stock options.

2. DEFINITIONS

     For purposes of interpreting the Plan and related documents (including Award Agreements), the
following definitions shall apply:

     2.1 “Affiliate” means, with respect to the Company, any company or other trade or business
that controls, is controlled by or is under common control with the Company within the meaning of
Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary.
For purposes of granting stock options or stock appreciation rights, an entity may not be
considered an Affiliate unless the Company holds a “controlling interest” in such entity, where the
term “controlling interest” has the same meaning as provided in Treasury Regulation
1.414(c)-2(b)(2)(i), provided that the language “at least 50 percent” is used instead of “at least
80 percent” and, provided further, that where granting of stock options or stock appreciation
rights is based upon a legitimate business criteria, the language “at least 20 percent” is used
instead of “at least 80 percent” each place it appears in Treasury Regulation 1.414(c)-2(b)(2)(i).

     2.2 “Annual Incentive Award” means an Award made subject to attainment of performance goals
(as described in Section 14) generally over a one-year Performance Period (the Company’s fiscal
year, unless otherwise specified by the Committee).

 

 

     2.3 “Award” means a grant of an Option, Stock Appreciation Right, Restricted Stock,
Unrestricted Stock, Restricted Stock Unit, Performance Share, Performance Share Unit, Dividend
Equivalent Right or cash award under the Plan.

     2.4 “Award Agreement” means the agreement between the Company and a Grantee that evidences and
sets out the terms and conditions of an Award.

     2.5 “Benefit Arrangement” shall have the meaning set forth in Section 15 hereof.

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

     2.7 “Cause” means, as determined by the Board and unless otherwise provided in an applicable
agreement with the Company or an Affiliate, (i) gross negligence or willful misconduct in
connection with the performance of duties; (ii) plea of a felony or conviction of a criminal
offense (other than minor traffic offenses); or (iii) material breach of any term of any
employment, consulting or other services, confidentiality, intellectual property or non-competition
agreements, if any, between the Service Provider and the Company or an Affiliate.

     2.8 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended.

     2.9 “Committee” means a committee of, and designated from time to time by resolution of, the
Board, which shall be constituted as provided in Section 3.2.

     2.10
“Company” means American Commercial Lines Inc., a Delaware corporation.

     2.11 “Controlled Related Party” means each affiliate or associate of such Person (within the
meaning of Rule 12b-2 under the Exchange Act) if the specified
Person possesses, directly or
indirectly, by or through stock ownership, agency or otherwise, or pursuant to or in connection
with an agreement, arrangement or understanding (written or oral) with one or more other Persons,
the power to direct decisions regarding the acquisition, disposition or voting by such affiliate or
associate of common stock or right to acquire or vote common stock.

     2.12 “Corporate Transaction” means (i) the dissolution or liquidation of the Company or a
merger, consolidation, or reorganization of the Company with one or more other entities in which
the Company is not the surviving entity, (ii) a sale of substantially all of the assets of the
Company to another person or entity, or (iii) any transaction (including without limitation a
merger or reorganization in which the Company is the surviving entity) which results in any person
or entity (other than GVI Holdings, Inc. (“GVI”) and its Controlled Related Parties or any successor
to all or substantially all, of GVI’s business and assets) owning 50% or more of the combined
voting power of all classes of stock of the Company.

     2.13 “Covered Employee” means a Grantee who is a covered employee within the meaning of
Section 162(m)(3) of the Code.

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     2.14 “Disability” means the Grantee is unable to perform each of the essential duties of such
Grantee’s position by reason of a medically determinable physical or mental impairment which is
potentially permanent in character or which can be expected to last for a continuous period of not
less than 12 months; provided, however, that, with respect to rules regarding expiration of an
Incentive Stock Option following termination of the Grantee’s Service, Disability shall mean the
Grantee is unable to engage in any substantial gainful activity by reason of a medically
determinable physical or mental impairment which can be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less than 12 months.

     2.15 “Dividend Equivalent Right” means a right, granted to a Grantee under Section 13 hereof,
to receive cash, shares of Stock, other Awards or other property equal in value to dividends paid
with respect to a specified number of shares of Stock, or other periodic payments.

     2.16 “Effective Date” means May 19, 2008, the date the Plan was approved by the stockholders
of the Company.

     2.17 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as
hereafter amended.

     2.18 “Fair Market Value” means the value of a share of Stock, determined as follows: if on
the Grant Date or other determination date the Stock is listed on an established national or
regional stock exchange, or is publicly traded on an established securities market, the Fair Market
Value of a share of Stock shall be the closing price of the Stock on such exchange or in such
market (if there is more than one such exchange or market the Board shall determine the appropriate
exchange or market) on the Grant Date or such other determination date (or if there is no such
reported closing price, the Fair Market Value shall be the mean between the highest bid and lowest
asked prices or between the high and low sale prices on such trading day) or, if no sale of Stock
is reported for such trading day, on the next preceding day on which any sale shall have been
reported. If the Stock is not listed on such an exchange or traded on such a market, Fair Market
Value shall be the value of the Stock as determined by the Board by the reasonable application of a
reasonable valuation method, in a manner consistent with Code Section 409A.

     2.19 “Family Member” means a person who is a spouse, former spouse, child, stepchild,
grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive
relationships, of the Grantee, any person sharing the Grantee’s household (other than a tenant or
employee), a trust in which any one or more of these persons have more than fifty percent of the
beneficial interest, a foundation in which any one or more of these persons (or the Grantee)
control the management of assets, and any other entity in which one or more of these persons (or
the Grantee) own more than fifty percent of the voting interests.

     2.20 “Grant Date” means, as determined by the Board, the latest to occur of (i) the date as of
which the Board approves an Award, (ii) the date on which the recipient of an Award first becomes
eligible to receive an Award under Section 6 hereof, or (iii) such other date as may be specified
by the Board.

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     2.21 “Grantee” means a person who receives or holds an Award under the Plan.

     2.22 “Incentive Stock Option” means an “incentive stock option” within the meaning of Section
422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended
from time to time.

     2.23 “Non-qualified Stock Option” means an Option that is not an Incentive Stock Option.

     2.24 “Option” means an option to purchase one or more shares of Stock pursuant to the Plan.

     2.25 “Option Price” means the exercise price for each share of Stock subject to an Option.

     2.26 “Other Agreement” shall have the meaning set forth in Section 15 hereof.

     2.27 “Outside Director” means a member of the Board who is not an officer or employee of the
Company.

     2.28 “Performance Award” means an Award made subject to the attainment of performance goals
(as described in Section 14) over a Performance Period of up to ten years.

     2.29 “Performance-Based Compensation” means compensation under an Award that is intended to
satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to
Covered Employees. Notwithstanding the foregoing, nothing in this Plan shall be construed to mean
that an Award which does not satisfy the requirements for performance-based compensation under Code
Section 162(m) does not constitute performance-based compensation for other purposes, including
Code Section 409A.

     2.30 “Performance Measures” means measures as described in Section 14 on which the performance
goals are based and which are approved by the Company’s stockholders pursuant to this Plan in order
to qualify Awards as Performance-Based Compensation.

     2.31 “Performance Period” means the period of time during which the performance goals must be
met in order to determine the degree of payout and/or vesting with respect to an Award.

     2.32 “Performance Share” means an Award under Section 14 herein and subject to the terms of
this Plan, denominated in shares of Stock, the value of which at the time it is payable is
determined as a function of the extent to which corresponding performance criteria have been
achieved.

     2.33 “Performance Share Unit” means an Award under Section 14 herein and subject to the terms
of this Plan, denominated in units, the value of which at the time it is payable is
determined as a function of the extent to which corresponding performance criteria have been
achieved.

- 4 -

 

     2.34 “Plan” means this American Commercial Lines Inc. 2008 Omnibus Incentive Plan.

     2.35 “Prior Plans” means the American Commercial Lines Inc. Equity Award Plan for Employees,
Officers and Directors and the American Commercial Lines Inc. 2005 Stock Incentive Plan.

     2.36 “Purchase Price” means the purchase price for each share of Stock pursuant to a grant of
Restricted Stock or Unrestricted Stock.

     2.37 “Reporting Person” means a person who is required to file reports under Section 16(a) of
the Exchange Act.

     2.38 “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 10
hereof.

     2.39 “Restricted Stock Unit” means a bookkeeping entry representing the equivalent of one
share of Stock awarded to a Grantee pursuant to Section 10 hereof.

     2.40 “SAR Exercise Price” means the per share exercise price of a SAR granted to a Grantee
under Section 9 hereof.

     2.41 “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter
amended.

     2.42 “Service” means service as a Service Provider to the Company or an Affiliate. Unless
otherwise stated in the applicable Award Agreement, a Grantee’s change in position or duties shall
not result in interrupted or terminated Service, so long as such Grantee continues to be a Service
Provider to the Company or an Affiliate. Subject to the preceding sentence, whether a termination
of Service shall have occurred for purposes of the Plan shall be determined by the Board, which
determination shall be final, binding and conclusive.

     2.43 “Service Provider” means an employee, officer or director of the Company or an Affiliate,
or a consultant or adviser (who is a natural person) currently providing services to the Company or
an Affiliate.

     2.44 “Stock” means the common stock, par value $0.01 per share, of the Company.

     2.45 “Stock Appreciation Right” or “SAR” means a right granted to a Grantee under Section 9
hereof.

     2.46 “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of
Section 424(f) of the Code.

- 5 -

 

     2.47 “Substitute Awards” means Awards granted upon assumption of, or in substitution for,
outstanding Awards previously granted by a company or other entity acquired by the Company or any
Affiliate or with which the Company or any Affiliate combines.

     2.48 “Ten Percent Stockholder” means an individual who owns more than ten percent of the total
combined voting power of all classes of outstanding stock of the Company, its parent or any of its
Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the Code
shall be applied.

     2.49 “Unrestricted Stock” means an Award pursuant to Section 11 hereof.

3. ADMINISTRATION OF THE PLAN

     3.1. Board.

     The Board shall have such powers and authorities related to the administration of the Plan as
are consistent with the Company’s certificate of incorporation and by-laws and applicable law. The
Board shall have full power and authority to take all actions and to make all determinations
required or provided for under the Plan, any Award or any Award Agreement, and shall have full
power and authority to take all such other actions and make all such other determinations not
inconsistent with the specific terms and provisions of the Plan that the Board deems to be
necessary or appropriate to the administration of the Plan, any Award or any Award Agreement. All
such actions and determinations shall be by the affirmative vote of a majority of the members of
the Board present at a meeting or by unanimous consent of the Board executed in writing in
accordance with the Company’s certificate of incorporation and by-laws and applicable law. The
interpretation and construction by the Board of any provision of the Plan, any Award or any Award
Agreement shall be final, binding and conclusive.

     3.2. Committee.

     The Board from time to time may delegate to the Committee such powers and authorities related
to the administration and implementation of the Plan, as set forth in Section 3.1 above and other
applicable provisions, as the Board shall determine, consistent with the certificate of
incorporation and by-laws of the Company and applicable law.

     (i) Except as provided in Subsection (ii) and except as the Board may otherwise
determine, the Committee, if any, appointed by the Board to administer the Plan shall
consist of two or more Outside Directors of the Company who: (a) qualify as “outside
directors” within the meaning of Section 162(m) of the Code and who (b) meet such other
requirements as may be established from time to time by the Securities and Exchange
Commission for plans intended to qualify for exemption under Rule 16b-3 (or its successor)
under the Exchange Act and who (c) comply with the independence requirements of the stock
exchange on which the Common Stock is listed. Discretionary
Awards to Outside Directors shall be administered only by the Committee and may not be
subject to discretion of or determination by the Company’s management.

- 6 -

 

     (ii) The Board may also appoint one or more separate Committees of the Board, each
composed of one or more directors of the Company who need not be Outside Directors, who may
administer the Plan with respect to employees or other Service Providers who are not
executive officers (as defined under Rule 3b-7 or the Exchange Act) or directors of the
Company, may grant Awards under the Plan to such employees or other Service Providers, and
may determine all terms of such Awards.

In the event that the Plan, any Award or any Award Agreement entered into hereunder provides for
any action to be taken by or determination to be made by the Board, such action may be taken or
such determination may be made by the Committee if the power and authority to do so has been
delegated to the Committee by the Board as provided for in this Section. Unless otherwise expressly
determined by the Board, any such action or determination by the Committee shall be final, binding
and conclusive. To the extent permitted by law, the Committee may delegate its authority under the
Plan to a member of the Board.

     3.3. Terms of Awards.

     Subject to the other terms and conditions of the Plan, the Board shall have full and final
authority to:

     (i) designate Grantees,

     (ii) determine the type or types of Awards to be made to a Grantee,

     (iii) determine the number of shares of Stock to be subject to an Award,

     (iv) establish the terms and conditions of each Award (including, but not limited to, the
exercise price of any Option, the nature and duration of any restriction or condition (or provision
for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the
shares of Stock subject thereto, the treatment of an Award in the event of a change of control, and
any terms or conditions that may be necessary to qualify Options as Incentive Stock Options),

     (v) prescribe the form of each Award Agreement evidencing an Award, and

     (vi) amend, modify, or supplement the terms of any outstanding Award. Such authority
specifically includes the authority, in order to effectuate the purposes of the Plan but without
amending the Plan, to make or modify Awards to eligible individuals who are foreign nationals or
are individuals who are employed outside the United States to recognize differences in local law,
tax policy, or custom. Notwithstanding the foregoing, no amendment, modification or supplement of
any Award shall, without the consent of the Grantee, impair the Grantee’s rights under such Award.

     The Company may retain the right in an Award Agreement to cause a forfeiture of the gain
realized by a Grantee on account of actions taken by the Grantee in violation or breach of or
in conflict with any employment agreement, non-competition agreement, any agreement
prohibiting solicitation of employees or clients of the Company or any Affiliate thereof or any
confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in
competition with the Company or any Affiliate thereof, to the extent specified in such Award
Agreement applicable to the Grantee. In addition, the Company may terminate and cause the
forfeiture of an Award if the Grantee is an employee of the Company or an Affiliate thereof and is
terminated for Cause as defined in the applicable Award Agreement or the Plan, as applicable.

- 7 -

 

     Furthermore, if the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company, as a result of misconduct, with any financial reporting
requirement under the securities laws, the individuals subject to automatic forfeiture under
Section 304 of the Sarbanes-Oxley Act of 2002 and any Grantee who knowingly engaged in the
misconduct, was grossly negligent in engaging in the misconduct, knowingly failed to prevent the
misconduct or was grossly negligent in failing to prevent the misconduct, shall reimburse the
Company the amount of any payment in settlement of an Award earned or accrued during the 12-month
period following the first public issuance or filing with the United States Securities and Exchange
Commission (whichever first occurred) of the financial document that contained such material
noncompliance.1

     3.4. No Repricing.

     Notwithstanding anything in this Plan to the contrary, no amendment or modification may be
made to an outstanding Option or SAR, including, without limitation, by replacement, exchange or
cancellation of Options or SARs for cash or another Award or award type, that would be treated as a
repricing under the rules of the stock exchange on which the Stock is listed, in each case, without
the approval of the stockholders of the Company, provided, that, appropriate adjustments may be
made to outstanding Options and SARs pursuant to Section 17 or Section 5.3 and may be made to make
changes to achieve compliance with applicable law, including Code Section 409A.

     3.5. Deferral Arrangement.

     The Board may permit or require the deferral of any Award payment into a deferred compensation
arrangement, subject to such rules and procedures as it may establish, which may include provisions
for the payment or crediting of interest or dividend equivalents, including converting such credits
into deferred Stock equivalents. Any such deferrals shall be made in a manner that complies with
Code Section 409A.

     3.6. No Liability.

     No member of the Board or the Committee shall be liable for any action or determination made
in good faith with respect to the Plan or any Award or Award Agreement.

 

			
	1	 	“Stronger” forfeiture language to be included in Award
Agreement.

- 8 -

 

     3.7. Share Issuance/Book-Entry.

     Notwithstanding any provision of this Plan to the contrary, the issuance of the Stock under
the Plan may be evidenced in such a manner as the Board, in its discretion, deems appropriate,
including, without limitation, book-entry registration or issuance of one or more Stock
certificates.

4. STOCK SUBJECT TO THE PLAN

     4.1. Number of Shares Available for Awards.

     Subject to adjustment as provided in Section 17 hereof, the number of shares of Stock available
for issuance under the Plan shall be 3,000,000, all of which may be granted as Incentive Stock
Options, increased by shares of Stock covered by awards granted under a Prior Plan that are not
purchased or are forfeited or expire, or otherwise terminate without delivery of any Stock subject
thereto after the Effective Date, to the extent such shares would again be available for issuance
under such Prior Plan. Stock issued or to be issued under the Plan shall be authorized but unissued
shares; or, to the extent permitted by applicable law, issued shares that have been reacquired by
the Company.

     4.2. Adjustments in Authorized Shares.

     The Board shall have the right to substitute or assume Awards in connection with mergers,
reorganizations, separations, or other transactions to which Section 424(a) of the Code applies.
The number of shares of Stock reserved pursuant to Section 4 shall be increased by the
corresponding number of Awards assumed and, in the case of a substitution, by the net increase in
the number of shares of Stock subject to Awards before and after the substitution.

     4.3. Share Usage.

     Shares covered by an Award shall be counted as used as of the Grant Date. Any shares of Stock
that are subject to Awards of Options shall be counted against the limit set forth in Section 4.1
as one share for every one share subject to an Award of Options. With respect to SARs, the number
of shares subject to an award of SARs will be counted against the aggregate number of shares
available for issuance under the Plan regardless of the number of shares actually issued to settle
the SAR upon exercise. Any shares that are subject to Awards other than Options or Stock
Appreciation Rights shall be counted against the limit set forth in Section 4.1 as one share for
every one share granted. If any shares covered by an Award granted under the Plan are not
purchased or are forfeited or expire, or if an Award otherwise terminates without delivery of any
Stock subject thereto or is settled in cash in lieu of shares, then the number of shares of Stock
counted against the aggregate number of shares available under the Plan with respect to such Award
shall, to the extent of any such forfeiture, termination or expiration, again be available for
making Awards under the Plan in the same amount as such shares were counted against the limit set
forth in Section 4.1, provided that any shares covered by an Award granted under a Prior Plan will
again be available for making Awards under the Plan in the same amount as such shares were counted
against the limits set forth in the applicable Prior Plan. The number of shares of Stock

available
for issuance under
the Plan shall not be increased by (i) any shares of Stock tendered or withheld or Award
surrendered in connection with the purchase of shares of Stock upon exercise of an Option as
described in Section 12.2, or (ii) any shares of Stock deducted or delivered from an Award payment
in connection with the Company’s tax withholding obligations as described in Section 18.3.

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5. EFFECTIVE DATE, DURATION AND AMENDMENTS

     5.1. Effective Date.

     The Plan shall be effective as of the Effective Date. Following the Effective Date no awards
will be made under the Prior Plans.

     5.2. Term.

     The Plan shall terminate automatically ten years after the Effective Date and may be
terminated on any earlier date as provided in Section 5.3.

     5.3. Amendment and Termination of the Plan.

     The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to
any shares of Stock as to which Awards have not been made. An amendment shall be contingent on
approval of the Company’s stockholders to the extent stated by the Board, required by applicable
law or required by applicable stock exchange listing requirements. In addition, an amendment will
be contingent on approval of the Company’s stockholders if the amendment would: (i) materially
increase the benefits accruing to participants under the Plan, (ii) materially increase the
aggregate number of shares of Stock that may be issued under the Plan, or (iii) materially modify
the requirements as to eligibility for participation in the Plan. No Awards shall be made after
termination of the Plan. No amendment, suspension, or termination of the Plan shall, without the
consent of the Grantee, impair rights or obligations under any Award theretofore awarded under the
Plan.

6. AWARD ELIGIBILITY AND LIMITATIONS

     6.1. Service Providers and Other Persons.

     Subject to this Section 6, Awards may be made under the Plan to: (i) any Service Provider to
the Company or of any Affiliate, including any Service Provider who is an officer or director of
the Company, or of any Affiliate, as the Board shall determine and designate from time to time and
(ii) any other individual whose participation in the Plan is determined to be in the best interests
of the Company by the Board.

     6.2. Successive Awards and Substitute Awards.

     An eligible person may receive more than one Award, subject to such restrictions as are
provided herein. Notwithstanding Sections 8.1 and 9.1, the Option Price of an Option or the grant price
of a SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a
share of Common Stock on the original date of grant; provided, that, the Option Price or grant
price is determined in accordance with the principles of Code Section 424 and the regulations
thereunder.

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     6.3. Limitation on Shares of Stock Subject to Awards and Cash Awards.

     During any time when the Company has a class of equity security registered under Section 12 of
the Exchange Act:

     (i) the maximum number of shares of Stock subject to Options or SARs that can be awarded under
the Plan to any person eligible for an Award under Section 6 hereof is 500,000 shares per 12 month
period;

     (ii) the maximum number of shares that can be awarded under the Plan, other than pursuant to
an Option or SARs, to any person eligible for an Award under Section 6 hereof is 250,000 shares per
12 month period; and

     (iii) the maximum amount that may be earned as an Annual Incentive Award or other cash Award
in any 12 month period by any person eligible for an Award shall be $2,000,000 and the maximum
amount that may be earned as a Performance Award or other cash Award in respect of a Performance
Period by any person eligible for an Award shall be $5,000,000.

     The preceding limitations in this Section 6.3 are subject to adjustment as provided in Section 17
hereof.

7. AWARD AGREEMENT

     Each Award granted pursuant to the Plan shall be evidenced by an Award Agreement, in such form
or forms as the Board shall from time to time determine. Award Agreements granted from time to time
or at the same time need not contain similar provisions but shall be consistent with the terms of
the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options
are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of
such specification such Options shall be deemed Non-qualified Stock Options.

8. TERMS AND CONDITIONS OF OPTIONS

     8.1. Option Price.

     The Option Price of each Option shall be fixed by the Board and stated in the Award Agreement
evidencing such Option. Except in the case of Substitute Awards, the Option Price of each Option
shall be at least the Fair Market Value on the Grant Date of a share of Stock; provided,
however, that in the event that a Grantee is a Ten Percent Stockholder, the Option Price of
an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not
less than 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case
shall the Option Price of any Option be less than the par value of a share of Stock.

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     8.2. Vesting.

     Subject to Sections 8.3 and 17.3 hereof, each Option granted under the Plan shall become
exercisable at such times and under such conditions as shall be determined by the Board and stated
in the Award Agreement. For purposes of this Section 8.2, fractional numbers of shares of Stock
subject to an Option shall be rounded down to the next nearest whole number.

     8.3. Term.

     Each Option granted under the Plan shall terminate, and all rights to purchase shares of Stock
thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or
under such circumstances and on such date prior thereto as is set forth in the Plan or as may be
fixed by the Board and stated in the Award Agreement relating to such Option; provided,
however, that in the event that the Grantee is a Ten Percent Stockholder, an Option granted
to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable after the
expiration of five years from its Grant Date. If on the day preceding the date on which a
Grantee’s Options would otherwise terminate, the Fair Market Value of the shares of Stock
underlying a Grantee’s Options is greater than the Option Price of such Options, the Company shall,
prior to the termination of such Options and without any action being taken on the part of the
Grantee, consider such Options to have been exercised by the Grantee. The Company shall deduct
from the shares of Stock deliverable to the Grantee upon such exercise the number of shares of
Stock necessary to satisfy payment of the Option Price and all withholding obligations.

     8.4. Termination of Service.

     Each Award Agreement shall set forth the extent to which the Grantee shall have the right to
exercise the Option following termination of the Grantee’s Service. Such provisions shall be
determined in the sole discretion of the Board, need not be uniform among all Options issued
pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.

     8.5. Limitations on Exercise of Option.

     Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in
whole or in part, prior to the date the Plan is approved by the stockholders of the Company as
provided herein or after the occurrence of an event referred to in Section 17 hereof which results
in termination of the Option.

     8.6. Method of Exercise.

     Subject to the terms of Article 12 and Section 18.3, an Option that is exercisable may be
exercised by the Grantee’s delivery to the Company of notice of exercise on any business day, at
the Company’s principal office, on the form specified by the Company. Such notice shall specify the
number of shares of Stock with respect to which the Option is being exercised and shall be
accompanied by payment in full of the Option Price of the shares for which the Option is being
exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its
judgment, be required to withhold with respect to an Award.

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     8.7. Rights of Holders of Options.

     Unless otherwise stated in the applicable Award Agreement, an individual holding or exercising
an Option shall have none of the rights of a stockholder (for example, the right to receive cash or
dividend payments or distributions attributable to the subject shares of Stock or to direct the
voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and
issued to him. Except as provided in Section 17 hereof, no adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date of such issuance.

     8.8. Delivery of Stock Certificates.

     Promptly after the exercise of an Option by a Grantee and the payment in full of the Option
Price, such Grantee shall be entitled to the issuance of a stock certificate or certificates
evidencing his or her ownership of the shares of Stock subject to the Option.

     8.9. Transferability of Options.

     Except as provided in Section 8.10, during the lifetime of a Grantee, only the Grantee (or, in
the event of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may
exercise an Option. Except as provided in Section 8.10, no Option shall be assignable or
transferable by the Grantee to whom it is granted, other than by will or the laws of descent and
distribution.

     8.10. Family Transfers.

     If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or
part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of
this Section 8.10, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer
under a domestic relations order in settlement of marital property rights; or (iii) a transfer to
an entity in which more than fifty percent of the voting interests are owned by Family Members (or
the Grantee) in exchange for an interest in that entity. Following a transfer under this Section
8.10, any such Option shall continue to be subject to the same terms and conditions as were
applicable immediately prior to transfer. Subsequent transfers of transferred Options are
prohibited except to Family Members of the original Grantee in accordance with this Section 8.10 or
by will or the laws of descent and distribution. The events of termination of Service of Section 8.4
hereof shall continue to be applied with respect to the original Grantee, following which the
Option shall be exercisable by the transferee only to the extent, and for the periods specified, in
Section 8.4.

     8.11. Limitations on Incentive Stock Options.

     An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is
an employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically
provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market
Value (determined at the time the Option is granted) of the shares of Stock with respect to which
all Incentive Stock Options held by such Grantee become exercisable for the first time during any
calendar year (under the Plan and all other plans of the Grantee’s employer and its Affiliates)
does
not exceed $100,000. This limitation shall be applied by taking Options into account in the order
in which they were granted.

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     8.12. Notice of Disqualifying Disposition.

     If any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise
of an Incentive Stock Option under the circumstances described in Code Section 421(b) (relating to
certain disqualifying dispositions), such Grantee shall notify the Company of such disposition
within ten days thereof.

9. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

     9.1. Right to Payment and Grant Price.

     A SAR shall confer on the Grantee to whom it is granted a right to receive, upon exercise
thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise over
(B) the grant price of the SAR as determined by the Board. The Award Agreement for a SAR shall
specify the grant price of the SAR, which shall be at least the Fair Market Value of a share of
Stock on the date of grant. SARs may be granted in conjunction with all or part of an Option
granted under the Plan or at any subsequent time during the term of such Option, in conjunction
with all or part of any other Award or without regard to any Option or other Award; provided that a
SAR that is granted subsequent to the Grant Date of a related Option must have a SAR Price that is
no less than the Fair Market Value of one share of Stock on the SAR Grant Date.

     9.2. Other Terms.

     The Board shall determine at the date of grant or thereafter, the time or times at which and
the circumstances under which a SAR may be exercised in whole or in part (including based on
achievement of performance goals and/or future service requirements), the time or times at which
SARs shall cease to be or become exercisable following termination of Service or upon other
conditions, the method of exercise, method of settlement, form of consideration payable in
settlement, method by or forms in which Stock will be delivered or deemed to be delivered to
Grantees, whether or not a SAR shall be in tandem or in combination with any other Award, and any
other terms and conditions of any SAR.

     9.3. Term.

     Each SAR granted under the Plan shall terminate, and all rights thereunder shall cease, upon
the expiration of ten years from the date such SAR is granted, or under such circumstances and on
such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in
the Award Agreement relating to such SAR.

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     9.4. Transferability of SARS.

     Except as provided in Section 9.5, during the lifetime of a Grantee, only the Grantee (or, in
the event of legal incapacity or incompetency, the Grantee’s guardian or legal representative) may
exercise a SAR. Except as provided in Section 9.5, no SAR shall be assignable or transferable by
the Grantee to whom it is granted, other than by will or the laws of descent and distribution.

     9.5. Family Transfers.

     If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or
part of a SAR to any Family Member. For the purpose of this Section 9.5, a “not for value” transfer
is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement
of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of
the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in
that entity. Following a transfer under this Section 9.5, any such SAR shall continue to be subject
to the same terms and conditions as were applicable immediately prior to transfer. Subsequent
transfers of transferred SARs are prohibited except to Family Members of the original Grantee in
accordance with this Section 9.5 or by will or the laws of descent and distribution.

			
	10.	 	TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS

     10.1. Grant of Restricted Stock or Restricted Stock Units.

     Awards of Restricted Stock or Restricted Stock Units may be made for no consideration (other
than par value of the shares which is deemed paid by Services already rendered).

     10.2. Restrictions.

     At the time a grant of Restricted Stock or Restricted Stock Units is made, the Board may, in
its sole discretion, establish a period of time (a “restricted period”) applicable to such
Restricted Stock or Restricted Stock Units. Each Award of Restricted Stock or Restricted Stock
Units may be subject to a different restricted period. The Board may in its sole discretion, at the
time a grant of Restricted Stock or Restricted Stock Units is made, prescribe restrictions in
addition to or other than the expiration of the restricted period, including the satisfaction of
corporate or individual performance objectives, which may be applicable to all or any portion of
the Restricted Stock or Restricted Stock Units as described in Article 14. Notwithstanding the
terms of this Section 10.2, and subject to Section 10.9 below, (i) Restricted Stock and Restricted
Stock Units that vest solely by the passage of time shall not vest in full in less than three years
from the Grant Date; and (ii) Restricted Stock and Restricted Stock Units that vest, or are subject
to acceleration of vesting, upon the achievement of performance targets shall not vest in full in
less than one year from the Grant Date. The foregoing restriction shall not apply to Restricted
Stock or Restricted Stock Unit Awards assumed in connection with mergers, reorganizations,
separations, or other transactions to which
Section 424(a) of the Code applies. Neither Restricted Stock nor Restricted Stock Units may be
sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted
period or prior to the satisfaction of any other restrictions prescribed by the Board with respect
to such Restricted Stock or Restricted Stock Units.

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     10.3. Restricted Stock Certificates.

     The Company shall issue, in the name of each Grantee to whom Restricted Stock has been
granted, stock certificates representing the total number of shares of Restricted Stock granted to
the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an
Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the
Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company or the
restrictions lapse, or (ii) such certificates shall be delivered to the Grantee, provided,
however, that such certificates shall bear a legend or legends that comply with the
applicable securities laws and regulations and makes appropriate reference to the restrictions
imposed under the Plan and the Award Agreement.

     10.4. Rights of Holders of Restricted Stock.

     Unless the Board otherwise provides in an Award Agreement, holders of Restricted Stock shall
have the right to vote such Stock and the right to receive any dividends declared or paid with
respect to such Stock. The Board may provide that any dividends paid on Restricted Stock must be
reinvested in shares of Stock, which may or may not be subject to the same vesting conditions and
restrictions applicable to such Restricted Stock. All distributions, if any, received by a Grantee
with respect to Restricted Stock as a result of any stock split, stock dividend, combination of
shares, or other similar transaction shall be subject to the restrictions applicable to the
original Grant.

     10.5. Rights of Holders of Restricted Stock Units.

          10.5.1. Voting and Dividend Rights.

     Holders of Restricted Stock Units shall have no rights as stockholders of the Company. The
Board may provide in an Award Agreement evidencing a grant of Restricted Stock Units that the
holder of such Restricted Stock Units shall be entitled to receive, upon the Company’s payment of a
cash dividend on its outstanding Stock, a cash payment for each Restricted Stock Unit held equal to
the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash
payment will be deemed reinvested in additional Restricted Stock Units at a price per unit equal to
the Fair Market Value of a share of Stock on the date that such dividend is paid.

          10.5.2. Creditor’s Rights.

     A holder of Restricted Stock Units shall have no rights other than those of a general creditor
of the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the
Company, subject to the terms and conditions of the applicable Award Agreement.

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     10.6. Termination of Service.

     (a) Unless the Board otherwise provides in an Award Agreement or in writing after the Award
Agreement is issued, upon the termination of a Grantee’s Service, any Restricted Stock or
Restricted Stock Units held by such Grantee that have not vested, or with respect to which all
applicable restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon
forfeiture of Restricted Stock or Restricted Stock Units, the Grantee shall have no further rights
with respect to such Award, including but not limited to any right to vote Restricted Stock or any
right to receive dividends with respect to shares of Restricted Stock or Restricted Stock Units.

     (b) Notwithstanding the terms of Section 10.6(a), and subject to Section 10.9 below, the Board
may not (i) grant Restricted Stock or Restricted Stock Units that provide for acceleration of
vesting, except in the case of a Grantee’s death, disability or retirement, or upon or in
connection with a Corporate Transaction, or upon the satisfaction of performance-based vesting
conditions as provided in Section 10.2; or (ii) waive vesting restrictions or conditions applicable
to Restricted Stock or Restricted Stock Units, except in the case of a Grantee’s death, disability
or retirement or upon or in connection with a Corporation Transaction. The foregoing restriction
shall not apply to Restricted Stock or Restricted Stock Unit Awards assumed in connection with
mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code
applies.

     10.7. Purchase of Restricted Stock and Shares Subject to Restricted Stock Units.

     The Grantee shall be required, to the extent required by applicable law, to purchase the
Restricted Stock or shares of Stock subject to vested Restricted Stock Units from the Company at a
Purchase Price equal to the greater of (i) the aggregate par value of the shares of Stock
represented by such Restricted Stock or Restricted Stock Units (ii) the Purchase Price, if any,
specified in the Award Agreement relating to such Restricted Stock or Restricted Stock Units. The
Purchase Price shall be payable in a form described in Section 12 or, in the discretion of the
Board, in consideration for past or future Services rendered to the Company or an Affiliate.

     10.8. Delivery of Stock.

     Upon the expiration or termination of any restricted period and the satisfaction of any other
conditions prescribed by the Board, the restrictions applicable to shares of Restricted Stock or
Restricted Stock Units settled in Stock shall lapse, and, unless otherwise provided in the Award
Agreement, a stock certificate for such shares shall be delivered, free of all such restrictions,
to the Grantee or the Grantee’s beneficiary or estate, as the case may be. Neither the Grantee, nor
the Grantee’s beneficiary or estate, shall have any further rights with regard to a Restricted
Stock Unit once the share of Stock represented by the Restricted Stock Unit has been delivered.

     10.9. Unrestricted Pool.

     Notwithstanding anything to the contrary in this Plan, Restricted Stock and Restricted Stock
Unit Awards may be (i) granted with vesting terms that do not comply with the requirements of
Section 10.2; (ii) granted with terms providing for the acceleration of vesting that do not comply
with Section 10.6, and/or (iii) subsequent to the date of grant, modified to provide acceleration
of
vesting terms that do not comply with Section 10.6, provided that, in no event, shall the aggregate
number of shares underlying Restricted Stock and Restricted Stock Unit Awards granted or modified
as contemplated in this Section 10.9 exceed five percent of the shares authorized for issuance in
Section 4.1 hereof.

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11. TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS

     The Board may, in its sole discretion, grant (or sell at par value or such other higher
Purchase Price determined by the Board) an Unrestricted Stock Award to any Grantee pursuant to
which such Grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”)
under the Plan, which Awards shall be deducted from the five percent limitation set forth in
Section 10.9. Unrestricted Stock Awards may be granted or sold as described in the preceding
sentence in respect of past services and other valid consideration, or in lieu of, or in addition
to, any cash compensation due to such Grantee.

12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

     12.1. General Rule.

     Payment of the Option Price for the shares purchased pursuant to the exercise of an Option or
the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to
the Company.

     12.2. Surrender of Stock.

     To the extent the Award Agreement so provides, payment of the Option Price for shares
purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock may be
made all or in part through the tender or attestation to the Company of shares of Stock, which
shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price
has been paid thereby, at their Fair Market Value on the date of exercise or surrender.

     12.3. Cashless Exercise.

     With respect to an Option only (and not with respect to Restricted Stock), to the extent
permitted by law and to the extent the Award Agreement so provides, payment of the Option Price for
shares purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a
form acceptable to the Board) of an irrevocable direction to a licensed securities broker
acceptable to the Company to sell shares of Stock and to deliver all or part of the sales proceeds
to the Company in payment of the Option Price and any withholding taxes described in Section 18.3.

     12.4. Other Forms of Payment.

     To the extent the Award Agreement so provides, payment of the Option Price for shares
purchased pursuant to exercise of an Option or the Purchase Price for Restricted Stock may be made
in any other form that is consistent with applicable laws, regulations and rules, including,
without limitation, Service.

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13. TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

     13.1. Dividend Equivalent Rights.

     A Dividend Equivalent Right is an Award entitling the recipient to receive credits based on
cash distributions that would have been paid on the shares of Stock specified in the Dividend
Equivalent Right (or other award to which it relates) if such shares of Stock had been issued to
and held by the recipient. A Dividend Equivalent Right may be granted hereunder to any Grantee.
The terms and conditions of Dividend Equivalent Rights shall be specified in the grant. Dividend
equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be
deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional
equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment.
Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a
single installment or installments, all determined in the sole discretion of the Board. A Dividend
Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent
Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such
other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under
the same conditions as such other award. A Dividend Equivalent Right granted as a component of
another Award may also contain terms and conditions different from such other award.

     13.2. Termination of Service.

     Except as may otherwise be provided by the Board either in the Award Agreement or in writing
after the Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights or
interest equivalents shall automatically terminate upon the Grantee’s termination of Service for
any reason.

			
	14.	 	TERMS AND CONDITIONS OF PERFORMANCE SHARES, PERFORMANCE SHARE UNITS, PERFORMANCE AWARDS AND
ANNUAL INCENTIVE AWARDS

     14.1. Grant of Performance Share Units/Performance Shares.

     Subject to the terms and provisions of this Plan, the Board, at any time and from time to
time, may grant Performance Share Units and/or Performance Shares to Participants in such amounts
and upon such terms as the Committee shall determine.

     14.2.  Value of Performance Share Units/Performance Shares.

     Each Performance Share Unit shall have an initial value that is established by the Board at
the time of grant. The Board shall set performance goals in its discretion which, depending on the
extent to which they are met, will determine the value and/or number of Performance Share
Units/Performance Shares that will be paid out to the Participant.

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     14.3. Earning of Performance Share Units/Performance Shares. 

     Subject to the terms of this Plan, after the applicable Performance Period has ended, the
holder of Performance Share Units/Performance Shares shall be entitled to receive payout on the
value and number of Performance Share Units/Performance Shares earned by the Participant over the
Performance Period, to be determined as a function of the extent to which the corresponding
performance goals have been achieved.

     14.4.  Form and Timing of Payment of Performance Share Units/Performance Shares.

     Payment of earned Performance Share Units/Performance Shares shall be as determined by the
Board and as evidenced in the Award Agreement. Subject to the terms of this Plan, the Board, in its
sole discretion, may pay earned Performance Share Units/Performance Shares in the form of cash or
in shares (or in a combination thereof) equal to the value of the earned Performance Share
Units/Performance Shares at the close of the applicable Performance Period, or as soon as
practicable after the end of the Performance Period. Performance Share Units/Performance Shares may
be granted subject to any restrictions deemed appropriate by the Committee. The determination of
the Committee with respect to the form of payout of such Awards shall be set forth in the Award
Agreement pertaining to the grant of the Award.

     14.5. Performance Conditions.

     The right of a Grantee to exercise or receive a grant or settlement of any Award, and the
timing thereof, may be subject to such performance conditions as may be specified by the Board. The
Board may use such business criteria and other measures of performance as it may deem appropriate
in establishing any performance conditions. If and to the extent required under Code Section
162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m),
shall be exercised by the Committee and not the Board.

     14.6. Performance Awards or Annual Incentive Awards Granted to Designated Covered
Employees.

     If and to the extent that the Board determines that any Award to be granted to a Grantee who
is designated by the Board as likely to be a Covered Employee should qualify as “performance-based
compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such
Award shall be contingent upon achievement of pre-established performance goals and other terms set
forth in this Section 14.6.

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          14.6.1. Performance Goals Generally.

          The performance goals for such Awards shall consist of one or more business criteria and a
targeted level or levels of performance with respect to each of such criteria, as specified by the
Committee consistent with this Section 14.6. Performance goals shall be objective and shall otherwise
meet the requirements of Code Section 162(m) and regulations thereunder including the requirement
that the level or levels of performance targeted by the Committee result in the achievement of
performance goals being “substantially uncertain.” The Committee may determine that such Awards
shall be granted, exercised and/or settled upon achievement of any one performance goal or that two
or more of the performance goals must be achieved as a condition to grant, exercise and/or
settlement of such Awards. Performance goals may differ for Awards granted to any one Grantee or to
different Grantees.

          14.6.2. Timing For Establishing Performance Goals.

          Performance goals shall be established not later than the earlier of (i) 90 days after the
beginning of any Performance Period applicable to such Awards and (ii) the day on which 25% of any
Performance Period applicable to such Awards has expired, or at such other date as may be required
or permitted for “performance-based compensation” under Code Section 162(m).

          14.6.3. Settlement of Awards; Other Terms.

          Settlement of such Awards shall be in cash, Stock, other Awards or other property, in the
discretion of the Committee. The Committee may, in its discretion, reduce the amount of a
settlement otherwise to be made in connection with such Awards. The Committee shall specify the
circumstances in which such Performance Award or Annual Incentive Awards shall be paid or forfeited
in the event of termination of Service by the Grantee prior to the end of a Performance Period or
settlement of Awards.

          14.6.4. Performance Measures. 

          The performance goals upon which the payment or vesting of an Award to a Covered Employee
that is intended to qualify as Performance-Based Compensation shall be limited to the following
Performance Measures:

(a) revenue;

(b) earnings before interest, taxes, depreciation and amortization (“EBITDA”);

(c) funds from operations;

(d) funds from operations per share;

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(e) operating income;

(f) pre or after tax income;

(g) cash available for distribution;

(h) cash available for distribution per share;

(i) net earnings;

(j) earnings per share;

(k) return on equity;

(l) return on assets;

(m) share price performance;

(n) improvements in the Company’s attainment of expense levels;

(o) objectively measurable implementation or completion of critical projects;

(p) improvement in cash flow (before or after tax);

(q) improvement in safety incident rate;

(r) improvement in selling, general & administrative expense as a percentage of
total revenue;

(s) reduction of average stationary days per barge loading;

(t) improvement of working capital (calculated as accounts receivable added to
inventory minus accounts payable divided by revenue);

(u) improvement in the number of reportable spill incidents per year;

(v) objectively quantifiable reductions in the Company’s carbon foot print;

(w) fleet unit turn rate;

- 22 -

 

(x) revenue per day per fleet unit;

(y) productivity per man hour;

(z) productivity per employee;

(aa) objectively quantifiable improvements in accessorial services performance;

(bb) percent of organic growth converted from land modes of transportation; and

(cc) improvement in the number of Notice of Violations related to environmental
impact.

          Any Performance Measure(s) may be used to measure the performance of the Company, Subsidiary,
and/or Affiliate as a whole or any business unit of the Company, Subsidiary, and/or Affiliate or
any combination thereof, as the Committee may deem appropriate, or any of the above Performance
Measures as compared to the performance of a group of comparator companies, or published or special
index that the Committee, in its sole discretion, deems appropriate, or the Company may select
Performance Measure (f) above as compared to various stock market indices. The Committee also has
the authority to provide for accelerated vesting of any Award based on the achievement of
performance goals pursuant to the Performance Measures specified in this Section 14.

 

          14.6.5. Evaluation of Performance. 

           The Committee may provide in any such Award that any evaluation of performance may include or
exclude any of the following events that occur during a Performance Period: (a) asset write-downs;
(b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting
principles, or other laws or provisions affecting reported results; (d) any reorganization and
restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles
Board Opinion No. 30, in management’s discussion and analysis of financial condition and results of
operations appearing in the Company’s annual or quarterly report filed with the SEC, or in the
Company’s press release announcing its annual or quarterly results of operations filed with the SEC
on Form 8-K; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses. To the
extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed
in a form that meets the requirements of Code Section 162(m) for deductibility.

- 23 -

 

          14.6.6. Adjustment of Performance-Based Compensation.

          Awards that are intended to qualify as Performance-Based Compensation may not be adjusted
upward. The Board shall retain the discretion to adjust such Awards downward, either on a formula
or discretionary basis, or any combination as the Committee determines.

          14.6.7. Board Discretion.

          In the event that applicable tax and/or securities laws change to permit Board discretion to
alter the governing Performance Measures without obtaining stockholder approval of such changes,
the Board shall have sole discretion to make such changes without obtaining stockholder approval
provided the exercise of such discretion does not violate Code Section 409A. In addition, in the
event that the Committee determines that it is advisable to grant Awards that shall not qualify as
Performance-Based Compensation, the Committee may make such grants without satisfying the
requirements of Code Section 162(m) and base vesting on Performance Measures other than those set
forth in Section 14.6.4.

     14.7. Status of Section Awards Under Code Section 162(m).

     It is the intent of the Company that Awards under Section 14.6
hereof granted to persons who are designated by the Committee as likely to be Covered Employees
within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the
Committee, constitute “qualified performance-based compensation” within the meaning of Code Section
162(m) and regulations thereunder. Accordingly, the terms of Section 14.6, including the definitions of Covered Employee and other terms used therein, shall be
interpreted in a manner consistent with Code Section 162(m) and regulations thereunder. The
foregoing notwithstanding, because the Committee cannot determine with certainty whether a given
Grantee will be a Covered Employee with respect to a fiscal year that has not yet been completed,
the term Covered Employee as used herein shall mean only a person designated by the Committee, at
the time of grant of an Award, as likely to be a Covered Employee with respect to that fiscal year.
If any provision of the Plan or any agreement relating to such Awards does not comply or is
inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision
shall be construed or deemed amended to the extent necessary to conform to such requirements.

15. PARACHUTE LIMITATIONS

     Notwithstanding any other provision of this Plan or of any other agreement, contract, or
understanding heretofore or hereafter entered into by a Grantee with the Company or any Affiliate,
except an agreement, contract, or understanding that expressly addresses Section 280G or Section
4999 of the Code (an “Other Agreement”), and notwithstanding any formal or informal plan or other
arrangement for the direct or indirect provision of compensation to the Grantee (including groups
or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such
compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a
“Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in
Section 280G(c) of the Code, any Option, Restricted Stock, Restricted Stock Unit, Performance Share
or Performance Share Unit held by that Grantee and any right to receive any payment or other
benefit under this Plan shall

- 24 -

 

not
 become exercisable or vested (i) to the extent that such right to
exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits
to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would
cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment”
within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”)
and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the Grantee from the Company under this Plan, all Other Agreements, and all Benefit
Arrangements would be less than the maximum after-tax amount that could be received by the Grantee
without causing any such payment or benefit to be considered a Parachute Payment. In the event that
the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in
conjunction with all other rights, payments, or benefits to or for the Grantee under any Other
Agreement or any Benefit Arrangement would cause the Grantee to be considered to have received a
Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount
received by the Grantee as described in clause (ii) of the preceding sentence, then the Grantee
shall have the right, in the Grantee’s sole discretion, to designate those rights, payments, or
benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced
or eliminated so as to avoid having the payment or benefit to the Grantee under this Plan be deemed
to be a Parachute Payment; provided, however, that in order to comply with Section
409A of the Code, the reduction or elimination will be performed in the order in which each dollar
of value subject to an Award reduces the Parachute Payment to the greatest extent.

16. REQUIREMENTS OF LAW

     16.1. General.

     The Company shall not be required to sell or issue any shares of Stock under any Award if the
sale or issuance of such shares would constitute a violation by the Grantee, any other individual
exercising an Option, or the Company of any provision of any law or regulation of any governmental
authority, including without limitation any federal or state securities laws or regulations. If at
any time the Company shall determine, in its discretion, that the listing, registration or
qualification of any shares subject to an Award upon any securities exchange or under any
governmental regulatory body is necessary or desirable as a condition of, or in connection with,
the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the
Grantee or any other individual exercising an Option pursuant to such Award unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the
date of termination of the Award. Without limiting the generality of the foregoing, in connection
with the Securities Act, upon the exercise of any Option or any SAR that may be settled in shares
of Stock or the delivery of any shares of Stock underlying an Award, unless a registration
statement under such Act is in effect with respect to the shares of Stock covered by such Award,
the Company shall not be required to sell or issue such shares unless the Board has received
evidence satisfactory to it that the Grantee or any other individual exercising an Option may
acquire such shares pursuant to an exemption from registration under the Securities Act. Any
determination in this connection by the Board shall be final, binding, and conclusive. The Company
may, but shall in no event be obligated to, register any securities covered hereby pursuant to the
Securities Act. The Company
shall not be obligated to take any affirmative action in order to cause the exercise of an Option
or a SAR or the issuance of shares of Stock pursuant to the

- 25 -

 

 Plan to comply with any law or
regulation of any governmental authority. As to any jurisdiction that expressly imposes the
requirement that an Option (or SAR that may be settled in shares of Stock) shall not be exercisable
until the shares of Stock covered by such Option (or SAR) are registered or are exempt from
registration, the exercise of such Option (or SAR) under circumstances in which the laws of such
jurisdiction apply shall be deemed conditioned upon the effectiveness of such registration or the
availability of such an exemption.

     16.2. Rule 16b-3.

     During any time when the Company has a class of equity security registered under Section 12 of
the Exchange Act, it is the intent of the Company that Awards pursuant to the Plan and the exercise
of Options and SARs granted hereunder will qualify for the exemption provided by Rule 16b-3 under
the Exchange Act. To the extent that any provision of the Plan or action by the Board does not
comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted
by law and deemed advisable by the Board, and shall not affect the validity of the Plan. In the
event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this
Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features
of, the revised exemption or its replacement.

17. EFFECT OF CHANGES IN CAPITALIZATION

     17.1. Changes in Stock.

     If the number of outstanding shares of Stock is increased or decreased or the shares of Stock
are changed into or exchanged for a different number or kind of shares or other securities of the
Company on account of any recapitalization, reclassification, stock split, reverse split,
combination of shares, exchange of shares, stock dividend or other distribution payable in capital
stock, or other increase or decrease in such shares effected without receipt of consideration by
the Company occurring after the Effective Date, the number and kinds of shares for which grants of
Options and other Awards may be made under the Plan, including, without limitation, the limits set
forth in Section 6.3, shall be adjusted proportionately and accordingly by the Company. In
addition, the number and kind of shares for which Awards are outstanding shall be adjusted
proportionately and accordingly so that the proportionate interest of the Grantee immediately
following such event shall, to the extent practicable, be the same as immediately before such
event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option
Price or SAR Exercise Price payable with respect to shares that are subject to the unexercised
portion of an outstanding Option or SAR, as applicable, but shall include a corresponding
proportionate adjustment in the Option Price or SAR Exercise Price per share. The conversion of any
convertible securities of the Company shall not be treated as an increase in shares effected
without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution
to the Company’s stockholders of securities of any other entity or other assets (including an
extraordinary dividend but excluding a non-extraordinary dividend of the Company) without receipt
of consideration by the Company, the Company shall, in such manner as the Company deems
appropriate, adjust (i) the number and kind
of shares subject to outstanding Awards and/or (ii) the exercise price of outstanding Options and
Stock Appreciation Rights to reflect such distribution.

- 26 -

 

     17.2. Reorganization in Which the Company Is the Surviving Entity Which does not
Constitute a Corporate Transaction.

     Subject to Section 17.3 hereof, if the Company shall be the surviving entity in any
reorganization, merger, or consolidation of the Company with one or more other entities which does
not constitute a Corporate Transaction, any Option or SAR theretofore granted pursuant to the Plan
shall pertain to and apply to the securities to which a holder of the number of shares of Stock
subject to such Option or SAR would have been entitled immediately following such reorganization,
merger, or consolidation, with a corresponding proportionate adjustment of the Option Price or SAR
Exercise Price per share so that the aggregate Option Price or SAR Exercise Price thereafter shall
be the same as the aggregate Option Price or SAR Exercise Price of the shares remaining subject to
the Option or SAR immediately prior to such reorganization, merger, or consolidation. Subject to
any contrary language in an Award Agreement evidencing an Award, any restrictions applicable to
such Award shall apply as well to any replacement shares received by the Grantee as a result of the
reorganization, merger or consolidation. In the event of a transaction described in this Section 17.2,
Restricted Stock Units shall be adjusted so as to apply to the securities that a holder of the
number of shares of Stock subject to the Restricted Stock Units would have been entitled to receive
immediately following such transaction.

     17.3. Corporate Transaction in which Awards are not Assumed.

     Upon the occurrence of a Corporate Transaction in which outstanding Options, SARs, Restricted
Stock Units and Restricted Stock are not being assumed, substituted or continued:

          (i) all outstanding shares of Restricted Stock shall be deemed to have vested, and all
Restricted Stock Units shall be deemed to have vested and the shares of Stock subject thereto shall
be delivered, immediately prior to the occurrence of such Corporate Transaction, and

          (ii) either of the following two actions shall be taken:

               (A) fifteen days prior to the scheduled consummation of a Corporate Transaction, all Options
and SARs outstanding hereunder shall become immediately exercisable and shall remain exercisable
for a period of fifteen days, or

               (B) the Board may elect, in its sole discretion, to cancel any outstanding Awards of Options,
Restricted Stock, Restricted Stock Units, and/or SARs and pay or deliver, or cause to be paid or
delivered, to the holder thereof an amount in cash or securities having a value (as determined by
the Board acting in good faith), in the case of Restricted Stock or Restricted Stock Units, equal
to the formula or fixed price per share paid to holders of shares of Stock and, in the case of
Options or SARs, equal to the product of the number of shares of Stock subject to the Option or SAR
(the “Award Shares”) multiplied by the amount, if any, by which (I) the formula or fixed price per
share paid to holders of shares of Stock pursuant to such transaction exceeds (II) the Option Price
or SAR Exercise Price applicable to such Award Shares.

- 27 -

 

          With respect to the Company’s establishment of an exercise window, (i) any exercise of an
Option or SAR during such fifteen-day period shall be conditioned upon the consummation of the
event and shall be effective only immediately before the consummation of the event, and (ii) upon
consummation of any Corporate Transaction, the Plan and all outstanding but unexercised Options and
SARs shall terminate. The Board shall send notice of an event that will result in such a
termination to all individuals who hold Options and SARs not later than the time at which the
Company gives notice thereof to its stockholders.

     17.4. Corporate Transaction in which Awards are Assumed.

     The Plan, Options, SARs, Restricted Stock Units and Restricted Stock theretofore granted shall
continue in the manner and under the terms so provided in the event of any Corporate Transaction to
the extent that provision is made in writing in connection with such Corporate Transaction for the
assumption or continuation of the Options, SARs, Restricted Stock Units and Restricted Stock
theretofore granted, or for the substitution for such Options, SARs, Restricted Stock Units and
Restricted Stock for new common stock options and stock appreciation rights and new common stock
units and restricted stock relating to the stock of a successor entity, or a parent or subsidiary
thereof, with appropriate adjustments as to the number of shares (disregarding any consideration
that is not common stock) and option and stock appreciation right exercise prices. In the event a
Grantee’s Award is assumed, continued or substituted upon the consummation of any Corporate
Transaction and his employment is terminated without Cause within one year following the
consummation of such Corporate Transaction, the Grantee’s Award will be fully vested and may be
exercised in full, to the extent applicable, beginning on the date of such termination and for the
one-year period immediately following such termination or for such longer period as the Committee
shall determine.

     17.5. Adjustments.

     Adjustments under this Section 17 related to shares of Stock or securities of the Company shall
be made by the Board, whose determination in that respect shall be final, binding and conclusive.
No fractional shares or other securities shall be issued pursuant to any such adjustment, and any
fractions resulting from any such adjustment shall be eliminated in each case by rounding downward
to the nearest whole share. The Board shall determine the effect of a Corporate Transaction upon
Awards other than Options, SARs, Restricted Stock Units and Restricted Stock, and such effect shall
be set forth in the appropriate Award Agreement. The Board may provide in the Award Agreements at
the time of grant, or any time thereafter with the consent of the Grantee, for different provisions
to apply to an Award in place of those described in Sections 17.1, 17.2, 17.3 and 17.4. This Section 17 does
not limit the Company’s ability to provide for alternative treatment of Awards outstanding under
the Plan in the event of change of control events that are not Corporate Transactions.

     17.6. No Limitations on Company.

     The making of Awards pursuant to the Plan shall not affect or limit in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations, or changes of its
capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or
transfer all or any part of its business or assets.

- 28 -

 

18. GENERAL PROVISIONS

     18.1. Disclaimer of Rights.

     No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon
any individual the right to remain in the employ or service of the Company or any Affiliate, or to
interfere in any way with any contractual or other right or authority of the Company either to
increase or decrease the compensation or other payments to any individual at any time, or to
terminate any employment or other relationship between any individual and the Company. In addition,
notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the
applicable Award Agreement, no Award granted under the Plan shall be affected by any change of
duties or position of the Grantee, so long as such Grantee continues to be a director, officer,
consultant or employee of the Company or an Affiliate. The obligation of the Company to pay any
benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those
amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall
in no way be interpreted to require the Company to transfer any amounts to a third party trustee or
otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary under the
terms of the Plan.

     18.2. Nonexclusivity of the Plan.

     Neither the adoption of the Plan nor the submission of the Plan to the stockholders of the
Company for approval shall be construed as creating any limitations upon the right and authority of
the Board to adopt such other incentive compensation arrangements (which arrangements may be
applicable either generally to a class or classes of individuals or specifically to a particular
individual or particular individuals) as the Board in its discretion determines desirable,
including, without limitation, the granting of stock options otherwise than under the Plan.

     18.3. Withholding Taxes.

     The Company or an Affiliate, as the case may be, shall have the right to deduct from payments
of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by
law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an
Award or upon the issuance of any shares of Stock upon the exercise of an Option or otherwise
pursuant to any Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to
the Company or the Affiliate, as the case may be, any amount that the Company or the Affiliate may
reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior
approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate, as
the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in
whole or in part, (i) by causing the Company or the Affiliate to withhold shares of
Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or the Affiliate
shares of Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall
have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of
the shares of Stock used to satisfy such withholding obligation shall be determined by the Company
or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A
Grantee who has made an election pursuant to this Section 18.3 may satisfy his or her withholding
obligation only with shares of Stock that are not subject to any repurchase, forfeiture,
unfulfilled vesting, or
other similar requirements. The maximum  number of 

- 29 -

 

 shares of Stock that may
be withheld from any Award to satisfy any federal, state or local tax withholding requirements upon
the exercise, vesting, lapse of restrictions applicable to such Award or payment of shares pursuant
to such Award, as applicable, cannot exceed such number of shares having a Fair Market Value equal
to the minimum statutory amount required by the Company to be withheld and paid to any such
federal, state or local taxing authority with respect to such exercise, vesting, lapse of
restrictions or payment of shares.

     18.4. Captions.

     The use of captions in this Plan or any Award Agreement is for the convenience of reference
only and shall not affect the meaning of any provision of the Plan or such Award Agreement.

     18.5. Other Provisions.

     Each Award granted under the Plan may contain such other terms and conditions not inconsistent
with the Plan as may be determined by the Board, in its sole discretion.

     18.6. Number and Gender.

     With respect to words used in this Plan, the singular form shall include the plural form, the
masculine gender shall include the feminine gender, etc., as the context requires.

     18.7. Severability.

     If any provision of the Plan or any Award Agreement shall be determined to be illegal or
unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof
shall be severable and enforceable in accordance with their terms, and all provisions shall remain
enforceable in any other jurisdiction.

     18.8. Governing Law.

     The validity and construction of this Plan and the instruments evidencing the Awards hereunder
shall be governed by the laws of the State of Delaware, other than any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of this Plan and the
instruments evidencing the Awards granted hereunder to the substantive laws of any other
jurisdiction.

     18.9. Section 409A of the Code.

     The Board intends to comply with Section 409A of the Code (“Section 409A”), or an exemption to
Section 409A, with regard to Awards hereunder that constitute nonqualified
deferred compensation within the meaning of Section 409A. To the extent that the Board
determines that a Grantee would be subject to the additional 20% tax imposed on certain
nonqualified deferred compensation plans pursuant to Section 409A as a result of any provision of
any Award granted under this Plan, such provision shall be deemed amended to the minimum extent
necessary to avoid application of such additional tax. The nature of any such amendment shall be
determined by the Board.

- 30 -

 

*    *    *

     To record adoption of the Plan by the Board as of April 1, 2008, and approval of the Plan by
the stockholders on May 19, 2008, the Company has caused its authorized officer to execute the
Plan.

	 	 	 	 	 
	 	AMERICAN COMMERCIAL LINES INC.

 	 
	 	/s/ Dawn R. Landry
 	 
	 	By: Dawn R. Landry 	 
	 	Title:  	Corporate Secretary 	 
	 

- 31 -EXHIBIT 10.2

Exhibit 10.2

Executives                       

Option No.:                     

AMERICAN COMMERCIAL LINES INC.

2008 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

American Commercial Lines Inc., a Delaware corporation (the “Company”), hereby grants an option to
purchase shares of its common stock, $.01 par value, (the “Stock”) to the optionee named below.
The terms and conditions of the option are set forth in this cover sheet and in the attachment
(collectively, the “Agreement”), and in the Company’s 2008 Omnibus Incentive Plan (the “Plan”).

Grant Date:                                         , 200__

	 	 	 	 	 
	Name of Optionee:

	 	__________________________________________________________________________________	 	 
	 

	 	 	 	 

Optionee’s Employee Identification Number:                     -                    -                    

Number of Shares Covered by Option:                     

Option Price per Share: $                    .                    

Vesting Start Date:                     , 200__

Vesting Schedule

     In the event that the Schedule set forth below would result in vesting of a fractional number
of options, the number of options that will vest will be rounded down to the nearest whole share,
and the last scheduled vesting tranche will be rounded up, to the extent necessary, so that the
full number of options will have vested.

	 	 	 
	Vesting Date

	 	Number of options that vest, 
as a percentage of the 
number of options granted

<<<VESTING DETAIL TO BE INSERTED AS APPLICABLE>>>>

	 	 	 	 	 	 	 
	Company:

	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Attachment

This is not a stock certificate or a negotiable instrument. In the event any provision of this
Agreement should appear to be inconsistent with the terms of the Plan, the Plan document will
control.

2

 

AMERICAN COMMERCIAL LINES INC.

2008 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

	 	 	 
	Non-Qualified Stock Option

	 	This option is not intended to be an
incentive stock option under Section
422 of the Internal Revenue Code and
will be interpreted accordingly.
	 
	 	 
	Vesting

	 	This option is only exercisable
before it expires and then only with
respect to the vested portion of the
option. Subject to the preceding
sentence, you may exercise this
option, in whole or in part, to
purchase a whole number of vested
shares by following the procedures
set forth in the Plan and below in
this Agreement.
	 
	 	 
	 

	 	Except as specifically provided in
this Agreement or as may be provided
in other agreements between you and
the Company, no additional shares of
Stock will vest after your Service
has terminated for any reason.
	 
	 	 
	Term

	 	Your option will expire in any event
at the close of business at Company
headquarters on the day before the
10th anniversary of the Grant Date,
as shown on the cover sheet. Your
option will expire earlier if your
Service terminates, as described
below.
	 
	 	 
	Regular Termination

	 	If your Service terminates for any
reason, other than death, Disability
or Cause, then your option will
expire at the close of business at
Company headquarters on the 90th day
after your termination date.
	 
	 	 
	Termination for 

Cause

	 	If your Service is terminated for
Cause, then you shall immediately
forfeit all rights to your option
and the option shall immediately
expire.
	 
	 	 
	Death

	 	If your Service terminates because
of your death, your option will
automatically be fully vested and
your option will expire at the close
of business at Company headquarters
on the date twelve (12) months after
the date of death. During that
twelve month period, your estate or
heirs may exercise the vested
portion of your option. 

In addition, if you die during the
90-day period described in
connection with a regular
termination (i.e., a termination of
your Service not on account of your
death, Disability or Cause), and a
vested portion of your option has
not yet been exercised, then your
option will instead expire on the
date twelve (12) months after your
termination date. In such a case,
during the period following your
death up to the date twelve (12)
months after your termination date,
your estate or heirs may exercise
the vested portion of your option.

3

 

	 	 	 
	Disability

	 	If your Service terminates because
of your Disability, then your option
your option will automatically be
fully vested and your option will
expire at the close of business at
Company headquarters on the date
twelve (12) months after your
termination date.
	 
	 	 
	Termination without Cause or for 

Good Reason following a Corporate 

Transaction

	 	If your Service is terminated by the
Company without Cause or by you for
Good Reason, in either case within
one year following a Corporate
Transaction, then your option will
automatically be fully vested and
your option will expire at the close
of business at Company headquarters
on the 90th day after your
termination date. For purposes of
this Agreement, “Good Reason” shall
have the meaning set forth in the
employment agreement, if any,
between you and the Company or, if
no such employment agreement exists,
such term shall mean your
resignation from employment with the
Company following the occurrence of
either or both of the events set
forth in clauses (A) and (B) below
without your prior written consent,
provided that, in connection with
either or both events, (1) you
deliver written notice to the
Company of your intention to resign
from employment due to either or
both of such events within ninety
(90) days of the event, which notice
specifies in reasonable detail the
circumstances claimed to provide the
basis for such resignation, and
(2) such event or events are not
cured by the Company within thirty
(30) days following delivery of such
written notice:
	 
	 

	 	     (A) a material reduction in your
annual rate of base salary; or
	 
	 

	 	     (B) any removal by the Company of
you from your position or the
assignment to you of duties and
responsibilities materially
inconsistent and adverse with your
position, except in connection with
termination of your employment for
Cause or disability.
	 
	 	 
	Leaves of Absence

	 	For purposes of this option, your
Service does not terminate when you
go on a bona fide employee leave of
absence that was approved by the
Company in writing, if the terms of
the leave provide for continued
Service crediting, or when continued
Service crediting is required by
applicable law. However, your
Service will be treated as
terminating 90 days after you went
on employee leave, unless your right
to return to active work is
guaranteed by law or by a contract.
Your Service terminates in any event
when the approved leave ends unless
you immediately return to active
employee work.
	 
	 

	 	The Company determines, in its sole
discretion, which leaves count for
this purpose, and when your Service
terminates for all purposes under
the Plan.

4

 

	 	 	 
	Notice of Exercise

	 	When you wish to exercise this
option, you must notify the Company
or its designated agent by filing
the proper “Notice of Exercise” form
at the address given on the form.
Your notice must specify how many
shares you wish to purchase. Your
notice must also specify how your
shares of Stock should be registered
(in your name only or in your and
your spouse’s names as joint tenants
with right of survivorship). The
notice will be effective when it is
received by the Company.
	 
	 	 
	 

	 	If someone else wants to exercise
this option after your death, that
person must prove to the Company’s
satisfaction that he or she is
entitled to do so.
	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include payment
of the option price for the shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:
	 
	 	 
	 

	 	•     Cash, your personal check, a
cashier’s check, a money order or
another cash equivalent acceptable
to the Company.
	 
	 	 
	 

	 	•     Shares of Stock withheld by
the Company from the shares of Stock
otherwise to be received, with such
withheld shares having an aggregate
Fair Market Value on the date of
exercise equal to the aggregate
option price.
	 
	 	 
	 

	 	•      Shares of Stock which have
already been owned by you and which
are surrendered to the Company. The
Fair Market Value of the shares,
determined as of the effective date
of the option exercise, will be
applied to the option price.
	 
	 	 
	 

	 	•      By delivery (on a form
prescribed by the Company) of an
irrevocable direction to a licensed
securities broker acceptable to the
Company to sell Stock and to deliver
all or part of the sale proceeds to
the Company in payment of the
aggregate option price and any
withholding taxes.
	 
	 	 
	Withholding Taxes

	 	You will not be allowed to exercise
this option unless you make
acceptable arrangements to pay any
withholding or other taxes that may
be due as a result of the option
exercise or sale of Stock acquired
under this option. Any of the
methods described under “Form of
Payment” will be considered
acceptable arrangements for paying
such taxes.

5

 

	 	 	 
	Transfer of Option

	 	During your lifetime, only you (or,
in the event of your legal
incapacity or incompetency, your
guardian or legal representative)
may exercise the option. You cannot
transfer or assign this option. For
instance, you may not sell this
option or use it as security for a
loan. If you attempt to do any of
these things, this option will
immediately become invalid. You
may, however, dispose of this option
in your will or it may be
transferred upon your death by the
laws of descent and distribution.
	 
	 	 
	 

	 	Regardless of any marital property
settlement agreement, the Company is
not obligated to honor a notice of
exercise from your spouse, nor is
the Company obligated to recognize
your spouse’s interest in your
option in any other way.
	 
	 	 
	Limitations, Retention Rights

	 	The terms and conditions of this
Agreement and your rights in
connection with any shares of Stock
received upon your exercise of the
option are subject to the Company’s
Executive Officer Stock Ownership
Guidelines. 

Neither your option nor this
Agreement give you the right to be
retained by the Company (or any
Parent, Subsidiaries or Affiliates)
in any capacity. The Company (and
any Parent, Subsidiaries or
Affiliates) reserves the right to
terminate your Service at any time
and for any reason.
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until a certificate for your
option’s shares has been issued (or
an appropriate book entry has been
made). No adjustments are made for
dividends or other rights if the
applicable record date occurs before
your stock certificate is issued (or
an appropriate book entry has been
made), except as described in the
Plan.
	 
	 	 
	Forfeiture of Rights

	 	If you should take actions in
competition with the Company, the
Company shall have the right to
cause a forfeiture of your rights,
including, but not limited to, the
right to cause: (i) a forfeiture of
any outstanding option, and
(ii) with respect to the period
commencing twelve (12) months prior
to your termination of Service with
the Company and ending twelve (12)
months following such termination of
Service (A) a forfeiture of any gain
recognized by you upon the exercise
of an option or (B) a forfeiture of
any Stock acquired by you upon the
exercise of an option (but the
Company will pay you the option
price without interest). Unless
otherwise specified in an employment
or other agreement between the
Company and you, you take actions in
competition with the Company if you
directly or indirectly, own, manage,
operate, join or control, or
participate in the ownership,
management, operation or control of,
or are a proprietor, director,
officer, stockholder, member,
partner or an employee or agent of, or 

6

 

	 	 	 
	 

	 	a consultant to any business,
firm, corporation, partnership or
other entity which competes with any
business in which the Company or any
of its Affiliates is engaged during
your employment or other
relationship with the Company or its
Affiliates or at the time of your
termination of Service. Under the
prior sentence, ownership of less
than 1% of the securities of a
public company shall not be treated
as an action in competition with the
Company.
	 
	 	 
	 

	 	Further, if it is ever determined by
the Board, as recommended by the
Audit Committee of the Company, that
your actions have constituted
wrongdoing that contributed to any
material misstatement or omission
from any report or statement filed
by the Company with the U.S.
Securities and Exchange Commission,
gross misconduct, breach of
fiduciary duty to the Company, or
fraud, then your option shall be
immediately forfeited and thereupon
your option shall be cancelled;
provided, however, that if you have
exercised your option within two
years prior to the Board
determination, you shall be required
to pay to the Company an amount
equal to the difference between the
aggregate value of the shares of
Stock acquired upon such exercise of
the option at the date of the Board
determination and the aggregate
exercise price paid by you. In
addition, your option and gains
resulting from the exercise of the
option, shall be subject to
forfeiture in accordance with the
Company’s standard policies relating
to such forfeitures and clawbacks,
as such policies are in effect at
the time of grant of the option.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Stock, the number of shares
covered by this option and the
option price per share shall be
adjusted (and rounded down to the
nearest whole number) if required
pursuant to the Plan. Your option
shall be subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan.

7

 

	 	 	 
	 

	 	This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this option. Any prior
agreements, commitments or
negotiations concerning this option
are superseded.
	 
	 	 
	Data Privacy

	 	In order to administer the Plan, the
Company may process personal data
about you. Such data includes but
is not limited to the information
provided in this Agreement and any
changes thereto, other appropriate
personal and financial data about
you such as home address and
business addresses and other contact
information, payroll information and
any other information that might be
deemed appropriate by the Company to
facilitate the administration of the
Plan.
	 
	 	 
	 

	 	By accepting this option, you give
explicit consent to the Company to
process any such personal data. You
also give explicit consent to the
Company to transfer any such
personal data outside the country in
which you work or are employed,
including, with respect to non-U.S.
resident Optionees, to the United
States, to transferees who shall
include the Company and other
persons who are designated by the
Company to administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	The Company may choose to deliver
certain statutory materials relating
to the Plan in electronic form. By
accepting this option grant you
agree that the Company may deliver
the Plan prospectus and the
Company’s annual report to you in an
electronic format. If at any time
you would prefer to receive paper
copies of these documents, as you
are entitled to, the Company would
be pleased to provide copies.
Please contact the Plan’s
recordkeeper, Merrill Lynch, at
888-888-8888 to request paper copies
of these documents.

8

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