Document:

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EXHIBIT 10.1

KAYDON CORPORATION

EXECUTIVE MANAGEMENT BONUS PROGRAM

(Amended and Restated Effective February 14, 2008)

     1. Definitions. The following terms have the meanings indicated unless a different
meaning is clearly required by the context:

     “Approval Date” means March 2, 2005, which is the date on which this Bonus Plan was approved
by the Board of Directors of the Company.

     “Bonus Plan” means this Kaydon Corporation Executive Bonus Program, as amended from time to
time.

     “Cause” means a determination by the Company that a Participant has committed a fraud or
felony, engaged in deliberate, willful or gross misconduct, or in conduct detrimental to the
Company team effort, or was insubordinate, or performed in an overall unacceptable manner, or
violated the policies of the Company as may be established by the Company from time-to-time, or
committed an act of moral turpitude, or committed any other act that causes or may reasonably be
expected to cause substantial injury to the Company or to its reputation.

     “Change in Control” means (i) the failure of the Continuing Directors at any time to
constitute at least a majority of the Board of Directors of the Company, (ii) the acquisition by
any Person other than an Excluded Holder of beneficial ownership (within the meaning of Rule 13d-3
issued under the Securities Exchange Act of 1934, as amended) of 20% or more of the outstanding
Common Stock of the Company or the combined voting power of the Company’s outstanding voting
securities, (iii) the approval by the stockholders of the Company of a reorganization, merger or
consolidation unless with a Permitted Successor, or (iv) the approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company or a sale or disposition of all or
substantially all of its assets other than to a Permitted Successor.

     “Committee” means the Compensation Committee of the Company’s Board of Directors, each of the
members of which is a “non-employee director” within the meaning of Rule 16b-3.

     “Company” means Kaydon Corporation and any of its wholly-owned subsidiaries or affiliates.

     “Continuing Directors” means the individuals constituting the Board of Directors of the
Company on the Approval Date, and any subsequent directors whose election or nomination for
election was approved by a vote of 2/3 or more of the individuals who are then Continuing
Directors, but specifically excluding any individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors
of the Company.

     “Excluded Holder” means any Person who on the Approval Date was the beneficial owner of 20% or
more of the outstanding Common Stock of the Company, a subsidiary of the Company, any employee
benefit plan of the Company or any subsidiary of the Company or any

 

 

trust holding such Common Stock pursuant to the terms of an employee benefit plan of the
Company.

     “Executive Officer” means the Chief Executive Officer (“CEO”), the Chief Financial Officer,
the Chief Operating Officer and such other Senior Vice Presidents or other senior executive
officers of the Company as the Committee shall designate from time to time.

     “Good Reason” means (a) the assignment of a Participant to any duties or responsibilities that
are a reduction of, or are materially inconsistent with, the Participant’s position, duties,
responsibilities or status on the Approval Date, (b) a change in a Participant’s reporting
responsibilities or titles in effect on the Approval Date that results in a reduction of the
Participant’s responsibilities or position, (c) the reduction of a Participant’s annual salary,
level of benefits (except for a reduction uniformly applicable to all similarly situated
executives), projected Supplemental Executive Retirement Plan benefits, or (d) transfer of the
Participant to a location more than forty (40) miles from the Participant’s location of employment
on the Approval Date which requires a change in residence or a material increase in the amount of
travel normally required of the Participant in connection with his employment.

     “Permitted Successor” means a corporation that immediately after the consummation of a
transaction described in the definition of “Change in Control” satisfies all of the following
criteria: (a) at least 60% of the voting securities of such corporation is beneficially owned by
Persons who were the beneficial owners of the Company’s Common Stock immediately prior to such
transaction, (b) no Person other than an Excluded Holder beneficially owns, directly or indirectly,
20% or more of the outstanding voting securities of such corporation and (c) at least a majority of
the Board of Directors of such corporation is comprised of Continuing Directors.

     “Person” means a natural person, corporation, partnership, limited liability company,
government or political subdivision, agency or instrumentality of a government.

     2. Purpose. The purpose of this Bonus Plan is to provide annual incentives to certain
senior executive officers in a manner designed to reinforce the Company’s performance goals; to
link a significant portion of participants’ compensation to the achievement of such goals; and to
continue to attract, motivate and retain key executives on a competitive basis.

     3. Participation. Participants in this Bonus Plan are the Executive Officers of the
Company. The Committee shall determine the effective date of a Participant’s participation in this
Bonus Plan. Each Participant shall execute an Agreement annually, a form of which is attached
hereto as Exhibit A, acknowledging his willingness to participate in this Bonus Plan and agreeing
to preserve corporate opportunity with the Company for a period ending two years following receipt
of the last bonus payment made pursuant to this Bonus Plan. The Company may modify and amend the
Agreement at its discretion prior to each Bonus Plan year.

     4. Performance Metric and Adjustments. The metric, or benchmark, against which
Company performance shall be measured for purposes of determining whether bonuses shall be awarded
to Participants, and the amount of such bonuses, shall be earnings before interest, taxes,
depreciation and amortization (“EBITDA”) from continuing operations.

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     5. Performance Objective. The performance objective for each year will be Target
EBITDA, which shall be determined by the Committee each year at a regular Board of Directors
meeting occurring prior to the 90th day of the year for which Target EBITDA is to be
determined. In conjunction with, or promptly after, the presentation of the annual budget for the
following year, management will present to the Committee a recommended Target EBITDA for the
following fiscal year. The Committee shall evaluate the recommended Target EBITDA and Budget and
may determine the final Target EBITDA utilizing this information and any additional information
that it deems relevant.

     6. Bonus Calculations. Participant bonuses shall be based on the level of EBITDA
achieved for the fiscal year, compared to Target EBITDA for that year, in accordance with the
following:

     (a) No Bonus payout shall be made if EBITDA achieved is equal to or less than 90% of
Target EBITDA;

     (b) Bonus payments will equal 6% of base salary for each Participant other than the CEO
(“Non-CEO Participants”), and 10% of base salary for the CEO, for each 1% that EBITDA
achieved for the year exceeds 90% of Target EBITDA, up to 100% of Target EBITDA, and 4% of
base salary for Non-CEO Participants, and 10% of base salary for the CEO, for each 1% that
EBITDA achieved exceeds 100% of Target EBITDA. An example would be:

	 	(a)	 	if EBITDA is 93% of Target EBITDA, the bonus will be
18% of a Non-CEO Participant’s base salary and 30% of the CEO’s base
salary;
	 
	 	(b)	 	if EBITDA is 100% of Target EBITDA, the bonus will be
60% of a Participant’s base salary; and 100% of the CEO’s base salary and
	 
	 	(c)	 	if EBITDA is 110% of Target EBITDA, the bonus will be
100% of a Participant’s base salary and 200% of the CEO’s base salary.

     (c) A Non-CEO Participant’s bonus may not exceed 100% of the Participant’s base salary
and the CEO’s bonus may not exceed 200% of base salary.

     7. Discretionary Bonus Payments. In addition, at the discretion of the Committee, a
discretionary cash bonus may be paid to any Participant in an amount up to 25% of base salary that
shall be in addition to, or in lieu of, the bonus payment, if any, determined pursuant to Section
6.

     8. Payment of Bonus Awards.

     (a) Conditions for Payment After Termination of Employment. If a Participant’s
employment with the Company terminates, the following provisions shall apply:

     (i) Termination for Cause. If a Participant’s employment is terminated
by the Company for Cause, no bonus shall be paid to the former Participant for any
period prior to the date of termination.

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     (ii) Termination by Participant. If a Participant terminates his or
her employment without Good Reason, no bonus shall be paid to the former Participant
for any period prior to the date of termination.

     (iii) Termination Following Death, Disability or Retirement. If a
Participant’s employment is terminated due to a Participant’s death, disability or
retirement at the normal retirement age prior to payment of a bonus award, such
bonus shall be paid (A) in the event of death, to the designated beneficiary of the
Participant or, if no beneficiary shall have been designated, the representative of
the Participant’s estate and (B) in the event of disability or retirement, to the
former Participant, and if termination occurs during a fiscal year, the amount of
bonus award shall be pro rated for that year based on the number of days worked
prior to termination of employment.

     (iv) Termination without Cause or for Good Reason, etc. If a
Participant’s employment is terminated without Cause, or the Participant terminates
his or her employment for Good Reason following a Change in Control and prior to the
payment of a bonus award, the Company shall nevertheless pay such bonus to the
terminated Participant. If termination occurs during a fiscal year, the amount of
bonus award shall be pro rated for that year based on the number of days worked
prior to termination of employment.

     (b) Change in Control Payment. In the event of a Change in Control of the
Company, a bonus for the year in which the Change in Control occurs, together with any
unpaid bonus from the preceding year, shall be immediately payable on the date of the Change
in Control. Such bonus shall be equal to 100% of a Participant’s base salary for the year
in which a Change in Control occurs.

     9. Administrative Provisions. This Bonus Plan shall be administered by the Committee.
The Committee shall have full, exclusive and final authority in all determinations and decisions
affecting this Bonus Plan and Participants, including sole authority to interpret and construe any
provision of this Bonus Plan, to adopt such rules and regulations for administering this Bonus Plan
as it may deem necessary or appropriate under the circumstances, and to make any other
determination it deems necessary or appropriate for the administration of this Bonus Plan.
Decisions of the Committee shall be final and conclusive, and binding on all parties. All expenses
of administering this Bonus Plan shall be borne by the Company. No member of the Committee shall
be liable for any action, omission, or determination relating to this Bonus Plan, and the Company
shall indemnify and hold harmless each member of the Committee and each other director or employee
of the Company or its affiliates to whom any duty or power relating to the administration or
interpretation of this Bonus Plan has been delegated against any cost or expense (including counsel
fees, which fees shall be paid as incurred) or liability (including any sum paid in settlement of a
claim with the approval of the Committee) arising out of or in connection with any action, omission
or determination relating to this Bonus Plan, unless, in each case, such action, omission or
determination was taken or made by such member, director or employee in bad faith and without
reasonable belief that it was in the best interests of the Company.

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     10. Miscellaneous.

     (a) This Bonus Plan was adopted by the Board of Directors on the Approval Date and will
be effective commencing with bonuses payable in respect of the Company’s fiscal year ending
December 31, 2005. This Bonus Plan was amended and restated effective February 14, 2008, by
action of the Board of Directors, in compliance with the provisions of Section 10(b).

     (b) The Board of Directors may at any time amend this Bonus Plan in any fashion or
terminate or suspend this Bonus Plan, provided that no such action shall adversely affect a
Participant’s rights under this Bonus Plan with respect to bonus arrangements agreed to by
the Company and the Participant, pursuant to a written agreement or otherwise, before the
date of such action, without the consent of the Participant.

     (c) This Bonus Plan shall be governed by and construed in accordance with the internal
laws of the State of Michigan applicable to contracts made, and to be wholly performed,
within such State, without regard to principles of choice of laws.

     (d) All amounts required to be paid under this Bonus Plan shall be subject to any
required Federal, state, local and other applicable withholdings or deductions.

     (e) Nothing contained in this Bonus Plan shall confer upon any Participant or any other
person any right with respect to the continuation of employment by the Company or interfere
in any way with the right of the Company at any time to terminate such employment or to
increase or decrease the compensation payable to the Participant from the rate in effect at
the commencement of a fiscal year or to otherwise modify the terms of such Participant’s
employment. No person shall have any claim or right to participate in or receive any award
under this Bonus Plan for any particular fiscal year or any part thereof.

     (f) The Company’s obligation to pay a Participant any amounts under this Bonus Plan
shall be subject to setoff, counterclaim or recoupment of amounts owed by a Participant to
the Company.

     (g) The right of a Participant or of any other person to any payment under this Bonus
Plan shall not be assigned, transferred, pledged or encumbered in any manner, and any
attempted assignment, transfer, pledge or encumbrance shall be null and void and of no force
or effect.

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EXHIBIT A

AGREEMENT

     This Agreement (the “Agreement”) is made as of ___, 20___, by and between KAYDON
CORPORATION, a Delaware corporation (the “Company”), and ___(the “Executive”). The
Executive is a Participant in the Company’s ___Cash Bonus Plan (the “Bonus Plan”) and is eligible to
receive a cash bonus award(s) under the Bonus Plan provided that the performance targets
established under the Bonus Plan are achieved. It is a condition of the Executive’s eligibility to
participate in the Bonus Plan that this Agreement be entered into annually and to protect and
preserve the Company’s existing and future business relationships and corporate opportunities.

     *Capitalized terms not expressly defined in this Agreement shall have the meanings ascribed to
them in the Bonus Plan. The parties, intending to be legally bound, agree as follows:

     1. Non-Disclosure of Confidential Information. The Executive agrees not to disclose
to any unauthorized Persons or use for his own account or for the benefit of any third party any
Confidential Information, whether or not such information is embodied in writing or other physical
form or is retained in the memory of the Executive, without the Company’s written consent, unless
and only to the extent that the Confidential Information is or becomes generally known to and
available for use by the public other than as a result of the Executive’s fault or the fault of any
other Person bound by a duty of confidentiality to the Company.

     As used herein, “Confidential Information” includes: (a) any and all trade secrets concerning
the business and affairs of the Company, its subsidiaries and affiliates, product specifications,
data, know-how, formulae, compositions, processes, designs, sketches, photographs, graphs,
drawings, samples, inventions and ideas, past, current and planned research and development,
current and planned manufacturing and distribution methods and processes, customer lists, current
and anticipated customer requirements, price lists, market studies, business plans, computer
software and programs (including object code and source code), database technologies, and similar
systems of the Company, its subsidiaries and affiliates; (b) any and all information concerning the
business and affairs of the Company, its subsidiaries and affiliates (which includes historical
financial statements, financial projections and budgets, historical and projected sales, capital
spending budgets and plans, the names and backgrounds of key personnel, contractors, agents,
suppliers and potential suppliers, personnel training and techniques and materials, and purchasing
methods and techniques, however documented; and (c) any and all notes, analysis, compilations,
studies, summaries and other material prepared by or for the Company, its subsidiaries and
affiliates containing or based, in whole or in part, upon any information included in the
foregoing.

     2. Non-Competition and Non-Solicitation. As an inducement for the Company to permit
the Executive to participate in the Bonus Plan, the Executive agrees that for a period of two years
after the receipt of the last payment of a bonus award under the Bonus Plan:

     (a) The Executive will not, directly or indirectly, engage or invest in, own, manage,
operate, finance, control or participate in the ownership, management, operation, financing
or control of, be employed by, associated with or in any manner connected with, or render
services or advice or other aid to, or guarantee any obligation of, any

 

 

Person engaged in or planning to become engaged in the a business whose products or
activities compete in whole or in part with the business conducted by the Company, its
subsidiaries or its affiliates at the time of receipt by the Executive of such last bonus
payment; provided, however, that the Executive may purchase or otherwise acquire up to (but
not more than) two percent (2%) of any class of securities of any enterprise (but without
otherwise participating in the activities of such enterprise) if such securities are listed
on any national or regional securities exchange or have been registered under Section 12(g)
of the Securities Exchange Act of 1934. Seller and each Shareholder agree that this covenant
is reasonable with respect to its duration, geographical area and scope.

     (b) The Executive will not, directly or indirectly, (A) induce or attempt to induce any
employee of the Company, its subsidiaries or its affiliates to leave his or her employment;
(B) in any way interfere with the relationship between the Company, its subsidiaries or its
affiliates and any such employee; (C) employ or otherwise engage as an employee, independent
contractor or otherwise any employee of the Company, its subsidiaries or its affiliates; or
(D) induce or attempt to induce any customer, supplier, licensee or other Person to cease
doing business with the Company, its subsidiaries or its affiliates or in any way interfere
with the relationship between any such customer, supplier, licensee or other business
entity.

     (c) The Executive will not, directly or indirectly, solicit the business of any Person
known to be a customer of the Company, its subsidiaries or its affiliates, whether or not
the Executive had personal contact with such Person, with respect to products or activities
which compete in whole or in part with the business operated by the Company, its
subsidiaries or its affiliates.

     (d) The Executive will not disparage the Company, its subsidiaries or its affiliates or
the business conducted by any of them or any shareholder, director, officer, employee or
agent of the Company, its subsidiaries or its affiliates.

     3. Arbitration. The Executive and the Company agree that any disagreement dispute,
controversy, or claim arising out of or relating to this Agreement, its interpretation, or
validity, or the terms and conditions of the Executive’s employment (including but not limited to
the termination of that employment), will be settled exclusively and finally by arbitration
irrespective of its magnitude, the amount in controversy, or the nature of the relief sought. The
arbitration shall be conducted in accordance with the Employment Arbitration Rules (the
“Arbitration Rules”) of the American Arbitration Association (the “AAA”) (the terms of which then
in effect are incorporated here). The arbitral tribunal shall consist of one arbitrator skilled in
arbitration of executive employment matters. The parties to the arbitration shall jointly directly
appoint the arbitrator within thirty (30) days of initiation of the arbitration. If the parties
fail to appoint the arbitrator as provided above, the arbitrator shall be appointed by the AAA as
provided in the Arbitration Rules and shall be a person who has had substantial experience in
executive employment matters. The Company shall pay all of the fees, if any, and expenses of the
arbitrator and the arbitration. The arbitration shall be conducted in the Southeastern Michigan
area or in such other city in the United States of America as the parties to the dispute may
designate by mutual written consent. At any oral hearing of evidence in connection with the
arbitration, each party or its legal counsel shall have the right to examine its witnesses and to

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cross-examine the witnesses of any opposing party. No evidence of any witness may be
presented in any form unless the opposing party or parties has the opportunity to cross-examine the
witness, except under extraordinary circumstances where the arbitrator determines that the
interests of justice require a different procedure. Any decision or award of the arbitrator shall
be final and binding upon the parties to the arbitration proceeding. The parties agree that the
arbitral award may be enforced against the parties to the arbitration proceeding or their assets
wherever they may be found and that a judgment upon the arbitral award may be entered in any court
having jurisdiction. Nothing contained here shall be deemed to give the arbitral tribunal any
authority, power, or right to alter, change, amend, modify, add to, or subtract from any of the
provisions of this Agreement. The provisions of this Section shall survive the termination or
expiration of this Agreement, shall be binding upon the Company’s and the Executive’s respective
successors, heirs, personal representatives, designated beneficiaries and any other person
asserting a claim described above, and may not be modified without the consent of the Company. To
the extent arbitration is required, no person asserting a claim has the right to resort to any
federal, state or local court or administrative agency concerning the claim unless expressly
provided by federal statute, and the decision of the arbitrator shall be a complete defense to any
action or proceeding instituted in any tribunal or agency with respect to any dispute, unless
precluded by federal statute.

     4. Miscellaneous.

     (a) This Agreement will be governed by Michigan law and will be binding upon and will
inure to the benefit of the respective successors and assigns of the parties.

     (b) The rights and remedies of the parties to this Agreement are cumulative and not
alternative. Neither the failure nor any delay by any party in exercising any right, power
or privilege under this Agreement will operate as a waiver of such right, power or
privilege, and no single or partial exercise of any such right, power or privilege will
preclude any other or further exercise of such right, power or privilege or the exercise of
any other right, power or privilege. To the maximum extent permitted by applicable law, (a)
no claim or right arising out of this Agreement can be discharged, in whole or in part, by a
waiver or renunciation of the claim or right except in writing; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it is given;
and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation
of such party, or of the right of the party giving such notice or demand to require the
other party, to take further action without notice or demand as provided in this Agreement.

     (c) Any action or proceeding seeking to enforce any provision of, or based upon any
right arising out of, this Agreement may be brought against any of the parties in the courts
of the State of Michigan, County of Washtenaw or, if it has or can acquire jurisdiction, in
the United States District Court for the Eastern District of Michigan, and the parties
consent to the jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein.

     (d) Whenever possible, each provision and term of this Agreement will be interpreted in
a manner to be effective and valid, but if any provision or term of this

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Agreement is held to be prohibited or invalid, then such provision or term will be
ineffective only to the extent of such prohibition or invalidity, without invalidating or
affecting in any manner whatsoever the remainder of such provision or term or the remaining
provisions or terms of this Agreement. If any of the covenants set forth in this Agreement
are held to be unreasonable, arbitrary or against public policy, such covenants will be
considered divisible with respect to scope, time and geographic area, and in such lesser
scope, time and geographic area, will be effective, binding and enforceable against Seller
and Shareholders to the greatest extent permissible.

     (e) This Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken together, will
be deemed to constitute one and the same agreement.

     (f) The headings of sections in this Agreement are provided for convenience only and
will not affect its construction or interpretation. All references to “Section” or
“Sections” refer to the corresponding Section or Sections of this Agreement unless otherwise
specified. All words used in this Agreement will be construed to be of such gender or
number as the circumstances require. Unless otherwise expressly provided, the word
“Including” does not limit the preceding words or terms.

     (g) All notices, consents, waivers and other communications under this Agreement must
be in writing and will be deemed to have been duly given when (a) delivered by hand (with
written confirmation of receipt); (b) sent by facsimile (with written confirmation of
receipt), provided that a copy is also promptly mailed by registered mail, return receipt
requested; or (c) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate addresses
and facsimile numbers set forth below (or to such other addresses and facsimile numbers as a
party may designate by notice to the other parties):

	 	 	 	 	 
	Executive:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Company:

	 	315 East Eisenhower Parkway, Suite 300
	 	 
	 

	 	Ann Arbor, Michigan 48108	 	 

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

	 	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	KAYDON CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

A-4exv10w4

 

EXHIBIT
10.4

KAYDON CORPORATION

1999 LONG TERM STOCK INCENTIVE PLAN

(Amended and Restated Effective October 25, 2007)

Section 1. Purposes. The purposes of the 1999 Long Term Stock Incentive Plan (the “Plan”) are to
encourage selected employees of, and Consultants to, Kaydon Corporation (the “Company”) and its
Subsidiaries to acquire a proprietary interest in the Company in order to create an increased
incentive to contribute to the Company’s future success and prosperity, and enhance the ability of
the Company and its Subsidiaries to attract and retain highly qualified individuals upon whom the
sustained progress, growth and profitability of the Company depend, thus enhancing the value of the
Company for the benefit of its stockholders.

Section 2. Definitions. As used in the Plan, the following terms shall have the meanings set forth
below:

     (a) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award, Dividend Equivalent or Other Stock-Based Award granted under the
Plan.

     (b) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted under the Plan.

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

     (d) “Change in Control” means the occurrence of any of the following events:

     (i) 50% Stock. The acquisition, by a person or Persons Acting as a Group, of
stock of the Company that together with stock held by such person or group constitutes more
than 50% of the total fair market value or total voting power of the stock of Company;

     (ii) 35% Stock. The acquisition, by a person or Persons Acting as a Group, of
ownership of stock of the Company that constitutes 35% or more of the total voting power of
Company’s stock in a single transaction or within a twelve month period ending with the most
recent acquisition;

     (iii) Directors. The majority of members of the Board being replaced during
any twelve month period by directors whose appointment or election is not endorsed by a
majority of the members of the Board prior to the date of appointment or election;

     (iv) Assets. The acquisition, by a person or Persons Acting as a Group, of the
Company’s assets that have a total gross fair market value equal to or exceeding forty
percent (40%) of the total gross fair market value of Company’s assets in a single
transaction or within a twelve month period ending with the most recent acquisition. For
the purpose of this section, gross fair market value means the value of the assets of the
corporation, or the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets; or

 

 

     (v) Merger. A reorganization, merger or consolidation of the Company, the
substantive effect of which is a Change in Control under any of subsections (i), (ii), (iii)
or (iv) above, unless with or into a Permitted Successor.

     (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (f) “Committee” shall mean the Compensation Committee of the Company, each of the members of
which is a “non-employee director” within the meaning of Rule 16b-3.

     (g) “Consultant” shall mean any individual performing bona fide services for the Company
(other than services in connection with the offer or sale of securities in a capital-raising
transaction) including former and prospective employees of the Company and any other individuals
designated as such by the Committee.

     (h) “Continuing Directors” are the individuals constituting the Board as of the date this
Amended and Restated Plan was adopted by the Board and any subsequent directors whose election or
nomination for election by the Company’s stockholders was approved by a vote of two-thirds of the
individuals who are then Continuing Directors, but specifically excluding any individual whose
initial assumption of office occurs as a result of either an actual or threatened election contest
(as the term is used in Rule 14a-11 of Regulation 14A issued under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board.

     (i) “Disability” means the Participant: (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12 months;
or (ii) is, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than 3 months under an
accident and health plan covering employees of the Company. To the extent required hereunder, the
determination of Disability shall be made by a medical board certified physician selected by the
Company and acceptable to the Participant (or the Participant’s legal representative, if one has
been appointed), provided such agreement as to acceptability shall not be unreasonably withheld.

     (j) “Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

     (k) “Employee Benefit Plan” means any plan or program established by the Company or a
Subsidiary for the compensation or benefit of employees of the Company or any of its Subsidiaries.

     (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (m) “Excluded Holder” means any Person who at the time this Amended and Restated Plan was
adopted by the Board was the beneficial owner of 20% or more of the outstanding common stock of the
Company; or the Company, a Subsidiary or any Employee Benefit Plan of

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the Company or a Subsidiary or any trust holding such common stock or other securities
pursuant to the terms of an Employee Benefit Plan.

     (n) “Fair Market Value” means, as of any date, if there is then a public market for the
Shares, the closing price of the Shares as reported on the New York Stock Exchange (“NYSE”) or such
other national or regional securities exchange or market system constituting the primary market for
the Shares. If the relevant date does not fall on a day on which the Shares are trading on NYSE or
other national or regional securities exchange or market system, the date on which the Fair Market
Value shall be established shall be the last day on which the Shares were so traded prior to the
relevant date. If there is then no public market for the Shares, the Fair Market Value on any
relevant date shall be as determined by the Committee without regard to any restriction other than
a restriction which, by its terms, will never lapse.

     (o) “Incentive Stock Option” shall mean an Option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code, or any successor provision
thereto.

     (p) “Non-Qualified Stock Option” shall mean an Option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (q) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (r) “Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

     (s) “Participant” shall mean an employee of, or Consultant to, the Company or any Subsidiary
designated to be granted an Award under the Plan.

     (t) “Performance Award” shall mean any right granted under Section 6(d) of the Plan.

     (u) “Permitted Successor” means a corporation which, immediately following the consummation of
a transaction specified in the definition of “Change in Control” above, satisfies each of the
following criteria:

     (i) Stock. Sixty percent or more of the outstanding common stock of the
corporation and the combined voting power of the outstanding securities of the corporation
entitled to vote generally in the election of directors (in each case determined immediately
following the consummation of the applicable transaction) is beneficially owned, directly or
indirectly, by all or substantially all of the Persons who were the beneficial owners of
Company’s outstanding common stock and outstanding securities entitled to vote generally in
the election of directors (respectively) immediately prior to the applicable transaction;

     (ii) Limitation. No Person other than an Excluded Holder beneficially owns,
directly or indirectly, 20% or more of the outstanding common stock of the corporation or
the combined voting power of the outstanding securities of the corporation entitled to vote
generally in the election of directors (for these purposes the term Excluded Holder

3

 

shall include the corporation, any subsidiary of the corporation and any Employee
Benefit Plan of the corporation or any such subsidiary or any trust holding common stock or
other securities of the corporation pursuant to the terms of any such Employee Benefit
Plan); and

     (iii) Board. At least a majority of the board of directors is comprised of
Continuing Directors.

     (v) “Person” has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the Exchange
Act.

     (w) “Persons Acting as a Group” means owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock (or assets), or similar business transaction with
the Company. If a person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase or acquisition of stock (or assets), or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a corporation prior to
the transaction giving rise to the change and not with respect to the ownership interest in the
other corporation. Persons will not be considered to be acting as a group solely because they
purchase or own stock of the same corporation at the same time or as a result of the same public
offering, or purchase assets of the same corporation at the same time.

     (x) “Restricted Period” shall mean the period of time during which Awards of Restricted Stock
or Restricted Stock Units are subject to restrictions.

     (y) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

     (z) “Restricted Stock Unit” shall mean any right granted under Section 6(c) of the Plan that
is denominated in Shares.

     (aa) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act, or any successor rule or regulation.

     (bb) “Section 16” shall mean Section 16 of the Exchange Act, the rules and regulations
promulgated by the Securities and Exchange Commission thereunder, or any successor provision, rule
or regulation.

     (cc) “Shares” shall mean the Company’s common stock, par value $.10 per share, and such other
securities or property as may become the subject of Awards, or become subject to Awards, pursuant
to an adjustment made under Section 4(c) of the Plan.

     (dd) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

     (ee) “Subsidiary” means any corporation or other entity of which 50% or more of the
outstanding voting stock or voting ownership interest is directly or indirectly owned or controlled
by the Company or by one or more Subsidiaries of the Company.

4

 

Section 3. Administration. The Committee shall administer the Plan, and subject to the terms of
the Plan and applicable law, the Committee’s authority shall include without limitation the power
to:

     (a) designate Participants;

     (b) determine the types of Awards to be granted;

     (c) determine the number of Shares to be covered by Awards and any payments, rights or other
matters to be calculated in connection therewith;

     (d) determine the terms and conditions of Awards and amend the terms and conditions of
outstanding Awards;

     (e) determine how, whether, to what extent, and under what circumstances Awards may be settled
or exercised in cash, Shares, other securities, other Awards or other property, or canceled,
forfeited or suspended; provided, however, that the Committee shall not accept the tender of Shares
that have been held by the Participant for less than six months;

     (f) determine subject to compliance with any restrictions under Code Section 409A (and as
specifically provided in any Award Agreement hereunder), how, whether, to what extent, and under
what circumstances cash, Shares, other securities, other Awards, other property and other amounts
payable with respect to an Award shall be deferred either automatically or at the election of the
holder thereof or of the Committee;

     (g) determine the methods or procedures for establishing the fair market value of any property
(including, without limitation, any Shares or other securities) transferred, exchanged, given or
received with respect to the Plan or any Award;

     (h) prescribe and amend the forms of Award Agreements and other instruments required under or
advisable with respect to the Plan;

     (i) designate Options granted to key employees of the Company or its Subsidiaries as Incentive
Stock Options;

     (j) interpret and administer the Plan, Award Agreements, Awards and any contract, document,
instrument or agreement relating thereto;

     (k) establish, amend, suspend or waive such rules and regulations and appoint such agents as
it shall deem appropriate for the administration of the Plan;

     (l) decide all questions and settle all controversies and disputes which may arise in
connection with the Plan, Award Agreements and Awards;

     (m) make any other determination and take any other action that the Committee deems necessary
or desirable for the interpretation, application and administration of the Plan, Award Agreements
and Awards.

5

 

All designations, determinations, interpretations and other decisions under or with respect to the
Plan, Award Agreements or any Award shall be within the sole discretion of the Committee, may be
made at any time and shall be final, conclusive and binding upon all persons, including the
Company, Subsidiaries, Participants, beneficiaries of Awards and stockholders of the Company.

Section 4. Shares Available for Awards

(a) Shares Available. Subject to adjustment as provided in Section 4(c):

     (i) Initial Authorization. There shall be 2,000,000 Shares initially available for
issuance under the Plan.

     (ii) Acquired Shares. In addition to the amount set forth above, up to 2,000,000
Shares acquired by the Company subsequent to the effectiveness of the Plan as full or
partial payment for the exercise price for an Option or any other stock option granted by
the Company, or acquired by the Company, in open market transactions or otherwise, in
connection with the Plan or any Award hereunder or any other employee stock option or
restricted stock issued by the Company may thereafter be included in the Shares available
for Awards. If any Shares covered by an Award or to which an Award relates are forfeited,
or if an Award expires, terminates or is canceled, then the Shares covered by such Award, or
to which such Award relates, or the number of Shares otherwise counted against the aggregate
number of Shares available under the Plan by reason of such Award, to the extent of any such
forfeiture, expiration, termination or cancellation, may thereafter be available for further
granting of Awards and included as acquired Shares for purposes of the preceding sentence.

     (iii) Accounting for Awards. For purposes of this Section 4,

     (A) if an Award (other than a Dividend Equivalent) is denominated in Shares,
the number of Shares covered by such Award, or to which such Award relates, shall be
counted on the date of grant of such Award against the aggregate number of Shares
available for granting Awards under the Plan to the extent determinable on such date
and insofar as the number of Shares is not then determinable under procedures
adopted by the Committee consistent with the purposes of the Plan; and

     (B) Dividend Equivalents and Awards not denominated in Shares shall be counted
against the aggregate number of Shares available for granting Awards under the Plan
in such amount and at such time as the Committee shall determine under procedures
adopted by the Committee consistent with the purposes of the Plan;

provided, however, that Awards that operate in tandem with (whether granted simultaneously
with or at a different time from), or that are substituted for, other Awards or restricted
stock awards or stock options granted under any other plan of the Company may be counted or
not counted under procedures adopted by the Committee in order to avoid double counting.
Any Shares that are delivered by the Company or its Subsidiaries, and any Awards that are
granted by, or become obligations of, the

6

 

Company, through the assumption by the Company of, or in substitution for, outstanding
restricted stock awards or stock options previously granted by an acquired company shall
not, except in the case of Awards granted to Participants who are directors or officers of
the Company for purposes of Section 16, be counted against the Shares available for granting
Awards under the Plan.

     (iv) Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an
Award may consist, in whole or in part, of authorized but unissued Shares or of Shares
reacquired by the Company, including but not limited to Shares purchased on the open market.

     (b) Individual Stock-Based Awards. Subject to adjustment as provided in Section 4(c),
no Participant may receive stock-based Awards under the Plan during any three consecutive calendar
years that relate to more than 500,000 Shares. No provision of this Paragraph 4(b) shall be
construed as limiting the amount of any cash-based Award which may be granted to any Participant.

     (c) Adjustments. Subject to compliance with any restrictions under Code Section 409A,
upon the occurrence of any dividend or other distribution (whether in the form of cash, Shares,
other securities or other property), change in the capital or shares of capital stock,
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other securities of the Company
or extraordinary transaction or event which affects the Shares, then the Committee shall have the
authority to make such adjustment, if any, in such manner as it deems appropriate, in (i) the
number and type of Shares (or other securities or property) which thereafter may be made the
subject of Awards, (ii) outstanding Awards including without limitation the number and type of
Shares (or other securities or property) subject thereto, and (iii) the grant, purchase or exercise
price with respect to outstanding Awards and, if deemed appropriate, make provision for cash
payments to the holders of outstanding Awards; provided, however, that the number of Shares subject
to any Award denominated in Shares shall always be a whole number.

Section 5. Eligibility. Any employee of, or Consultant to, the Company or any Subsidiary,
including any officer of the Company (who may also be a director, but excluding a member of the
Committee, any person who serves only as a director of the Company and any Consultant to the
Company or a Subsidiary who is also a director of the Company and who is not rendering services
pursuant to a written agreement with the entity in question), as may be selected from time to time
by the Committee or by the directors to whom authority may be delegated pursuant to Section 3
hereof in its or their discretion, is eligible to be designated a Participant.

Section 6. Awards

     (a) Options. The Committee is authorized to grant Options to Participants to purchase
Shares of the Company.

     (i) Committee Determinations. Subject to the terms of the Plan, the Committee shall
determine:

7

 

     (A) the purchase price per Share under each Option; provided, that no Option
will be granted with an exercise price that is below the Fair Market Value of the
Shares on the date such Option is granted;

     (B) the term of each Option; and

     (C) the time or times at which an Option may be exercised, in whole or in part,
the method or methods by which and the form or forms (including, without limitation,
cash, Shares or other property, or any combination thereof, having a fair market
value on the exercise date equal to the relevant exercise price) in which payment of
the exercise price with respect thereto may be made or deemed to have been made.
The terms of any Incentive Stock Option granted under the Plan shall comply in all
respects with the provisions of Section 422 of the Code, or any successor provision
thereto, and any regulations promulgated thereunder.

Subject to the terms of the Plan, the Committee may impose such conditions or restrictions
on any Option as it deems appropriate, and as shall be set forth in the Award Agreement
therefor.

(ii) Other Terms. Unless otherwise determined by the Committee:

     (A) A Participant electing to exercise an Option shall give written notice to
the Company, as may be specified by the Committee, of exercise of the Option and the
number of Shares elected for exercise, such notice to be accompanied by such
instruments or documents as may be required by the Committee, and shall tender the
purchase price of the Shares elected for exercise.

     (B) At the time of exercise of an Option payment in full in cash shall be made
for all Shares then being purchased. At the discretion of the Committee, as set
forth in a Participant’s Award Agreement, any Option granted under the Plan may be
deemed exercised by delivery to the Company of a properly executed exercise notice,
acceptable to the Committee, together with irrevocable instructions to the
Participant’s broker to deliver to the Company sufficient cash to pay the exercise
price and any applicable income and employment withholding taxes, in accordance with
a written agreement between the Company and the brokerage firm.

     (C) The Company shall not be obligated to issue any Shares unless and until:

     (1) if the class of Shares at the time is listed upon any stock
exchange, the Shares to be issued have been listed, or authorized to be
added to the list upon official notice of issuance, upon such exchange, and

     (2) in the opinion of the Company’s counsel there has been compliance
with applicable law in connection with the issuance and

8

 

delivery of Shares and such issuance shall have been approved by the
Company’s counsel.

Without limiting the generality of the foregoing, the Company may require from the
Participant such investment representation or such agreement, if any, as the
Company’s counsel may consider necessary in order to comply with the Securities Act
of 1933 as then in effect, and may require that the Participant agree that any sale
of the Shares will be made only in such manner as shall be in accordance with law
and that the Participant will notify the Company of any intent to make any
disposition of the Shares whether by sale, gift or otherwise. The Participant shall
take any action reasonably requested by the Company in such connection. A
Participant shall have the rights of a stockholder only as and when Shares have been
actually issued to the Participant pursuant to the Plan.

     (D) If the employment of, or consulting arrangement with, a Participant
terminates for any reason (including termination by reason of the fact that an
entity is no longer a Subsidiary) other than the Participant’s death, the
Participant may thereafter exercise the Option as provided below, except that the
Committee may terminate the unexercised portion of the Option concurrently with or
at any time following termination of the employment or consulting arrangement
(including termination of employment upon a change of status from employee to
Consultant) if it shall determine that the Participant has engaged in any activity
detrimental to the interests of the Company or a Subsidiary. If such termination is
voluntary on the part of the Participant, the option may be exercised only within
ten days after the date of termination. If such termination is involuntary on the
part of the Participant, if an employee retires or if the employment or consulting
relationship is terminated by reason of Disability, the Option may be exercised
within three months after the date of termination or retirement; provided, however,
that at the Committee’s discretion, Options held by a retiree of the Company may
continue to vest in accordance with the Option vesting schedule in effect prior to
such Participant’s retirement (however any Incentive Stock Option would
automatically convert to a Non-Qualified Option after the three-month period after
retirement). For purposes of this Paragraph (D), a Participant’s employment or
consulting arrangement shall not be considered terminated (i) in the case of
approved sick leave or other bona fide leave of absence (not to exceed one year),
(ii) in the case of a transfer of employment or the consulting arrangement among the
Company and Subsidiaries, or (iii) by virtue of a change of status from employee to
Consultant or from Consultant to employee, except as provided above.

     (E) If a Participant dies at a time when entitled to exercise an Option, then
at any time or times within one year after death such Option may be exercised, as to
all or any of the Shares which the Participant was entitled to purchase immediately
prior to death. The Company may decline to deliver Shares to a designated
beneficiary until it receives indemnity against claims of third parties satisfactory
to the Company. Except as so exercised such Option shall expire at the end of such
period.

9

 

     (F) An Option may be exercised only if and to the extent such Option was
exercisable at the date of termination of employment or the consulting arrangement,
and an Option may not be exercised at a time when the Option would not have been
exercisable had the employment or consulting arrangement continued.

     (iii) Restoration Options. Subject to compliance with any restrictions under Code
Section 409A, the Committee may grant a Participant the right to receive a restoration
Option with respect to an Option or any other option granted by the Company. Unless the
Committee shall otherwise determine, a restoration Option shall provide that the underlying
option must be exercised while the Participant is an employee of or Consultant to the
Company or a Subsidiary and the number of Shares which are subject to a restoration Option
shall not exceed the number of whole Shares exchanged in payment of the original option.

     (b) Stock Appreciation Rights. The Committee is authorized to grant Stock
Appreciation Rights to Participants. Subject to the terms of the Plan, a Stock Appreciation Right
granted under the Plan shall confer on the holder thereof a right to receive, upon exercise
thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise or, if the
Committee shall so determine in the case of any such right other than one related to any Incentive
Stock Option, at any time during a specified period before or after the date of exercise, over (ii)
the grant price of the right as specified by the Committee; provided, that no such Stock
Appreciation Right will be granted with an exercise price that is below the Fair Market Value of
the Shares on the date such right is granted. Subject to the terms of the Plan, the Committee
shall determine the grant price, term, methods of exercise and settlement and any other terms and
conditions of any Stock Appreciation Right and may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate, and as shall be set forth in
the Award Agreement therefor.

     (c) Restricted Stock and Restricted Stock Units.

     (i) Issuance. The Committee is authorized to grant to Participants Awards of
Restricted Stock, which shall consist of Shares, and Restricted Stock Units which shall give
the Participant the right to receive cash, other securities or other property, in each case
subject to the termination of the Restricted Period determined by the Committee.

     (ii) Restrictions. The Restricted Period may differ among Participants and may have
different expiration dates with respect to portions of Shares covered by the same Award.
Subject to the terms of the Plan, Awards of Restricted Stock and Restricted Stock Units
shall have such restrictions as the Committee may impose (including, without limitation,
limitations on the right to vote Restricted Stock or the right to receive any dividend or
other right or property), which restrictions may lapse separately or in combination at such
time or times, in installments or otherwise. Unless the Committee shall otherwise
determine, any Shares or other securities distributed with respect to Restricted Stock or
which a Participant is otherwise entitled to receive by reason of such Shares shall be
subject to the restrictions contained in the applicable Award Agreement. Subject to the
aforementioned restrictions and the provisions of the Plan, Participants

10

 

shall have all of the rights of a stockholder with respect to Shares of Restricted
Stock. In addition, any Award Agreement with respect to an Award of Restricted Stock Units
shall set forth the specific time that payment of such Award will be made upon the lapsing
of any restrictions and the form of payment thereunder, in compliance with any applicable
restrictions under Code Section 409A; including the requirement that any payment upon a
“specified employee’s” termination of employment be delayed for six months.

     (iii) Registration. Restricted Stock granted under the Plan may be evidenced in such
manner as the Committee may deem appropriate, including, without limitation, book-entry
registration or issuance of stock certificates.

     (iv) Forfeiture. Except as otherwise determined by the Committee:

     (A) If the employment of, or consulting arrangement with, a Participant
terminates for any reason (including termination by reason of the fact that any
entity is no longer a Subsidiary), other than the Participant’s death or Disability
or, in the case of an employee, retirement, all Shares of Restricted Stock
theretofore awarded to the Participant which are still subject to restrictions shall
upon such termination of employment or the consulting relationship be forfeited and
transferred back to the Company. Notwithstanding the foregoing or Paragraph (C)
below, if a Participant continues to hold an Award of Restricted Stock following
termination of the employment or consulting arrangement (including retirement and
termination of employment upon a change of status from employee to Consultant), the
Shares of Restricted Stock which remain subject to restrictions shall nonetheless be
forfeited and transferred back to the Company if the Committee at any time
thereafter determines that the Participant has engaged in any activity detrimental
to the interests of the Company or a Subsidiary. For purposes of this Paragraph
(A), a Participant’s employment or consulting arrangement shall not be considered
terminated (i) in the case of approved sick leave or other bona fide leave of
absence (not to exceed one year), (ii) in the case of a transfer of employment or
the consulting arrangement among the Company and Subsidiaries, or (iii) by virtue of
a change of status from employee to Consultant or from Consultant to employee,
except as provided above.

     (B) If a Participant ceases to be employed or retained by the Company or a
Subsidiary by reason of death or Disability or if following retirement a Participant
continues to have rights under an Award of Restricted Stock and thereafter dies, the
restrictions contained in the Award shall lapse with respect to such Restricted
Stock.

     (C) If an employee ceases to be employed by the Company or a Subsidiary by
reason of retirement, the restrictions contained in the Award of Restricted Stock
shall continue to lapse in the same manner as though employment had not terminated.

11

 

     (D) At the expiration of the Restricted Period as to Shares covered by an Award
of Restricted Stock, the Company shall deliver the Shares as to which the Restricted
Period has expired, as follows:

     (1) if an assignment to a trust has been made in accordance with
Section 6(g)(iv)(B)(1), to such trust; or

     (2) if the Restricted Period has expired by reason of death and a
beneficiary has been designated in a form approved by the Company, to the
beneficiary so designated; or

     (3) in all other cases, to the Participant or the legal representative
of the Participant’s estate.

     (d) Performance Awards. The Committee is authorized to grant Performance Awards to
Participants. Subject to the terms of the Plan, a Performance Award granted under the Plan (i) may
be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other
securities, or other property, and (ii) shall confer on the holder thereof rights valued as
determined by the Committee and payable to, or exercisable by, the holder of the Performance Award,
in whole or in part, upon the achievement of such performance goals during such performance periods
as the Committee shall establish. Subject to the terms of the Plan, and as shall be set forth in
the Award Agreement therefor, the performance goals to be achieved during any performance period,
the length of any performance period, the amount of any Performance Award granted, the amount of
any payment or transfer to be made pursuant to any Performance Award and other terms and conditions
shall be determined by the Committee. In addition, any Award Agreement with respect to a
Performance Award shall set forth the specific time that payment of such Award will be made upon
the satisfaction of any performance goals and/or period and the form of payment thereunder, in
compliance with any applicable restrictions under Code Section 409A; including the requirement that
any payment upon a “specified employee’s” termination of employment be delayed for six months.

     (e) Dividend Equivalents. The Committee is authorized to grant to Participants Awards
under which the holders thereof shall be entitled to receive payments equivalent to dividends or
interest with respect to a number of Shares determined by the Committee, and the Committee may
provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or
otherwise reinvested. Subject to the terms of the Plan, and as shall be set forth in the Award
Agreement therefor, such Awards may have such terms and conditions as the Committee shall
determine. In addition, any Award Agreement with respect to a Dividend Equivalent Award shall set
forth the specific time that payment of such Award will be made and the form of payment
thereunder, in compliance with any applicable restrictions under Code Section 409A; including the
requirement that any payment upon a “specified employee’s” termination of employment be delayed
for six months.

     (f) Other Stock-Based Awards. The Committee is authorized to grant to Participants
such other Awards that are denominated or payable in, valued in whole or in part by reference to or
otherwise based on or related to Shares (including, without limitation, securities convertible into
Shares), as are deemed by the Committee to be consistent with the purposes of the Plan,

12

 

provided, however, that such grants to persons who are subject to Section 16 must comply with
the provisions of Rule 16b-3. Subject to the terms of the Plan, and as shall be set forth in the
Award Agreement therefor, the Committee shall determine the terms and conditions of such Awards.
Shares or other securities delivered pursuant to a purchase right granted under this Section 6(f)
shall be purchased for such consideration, which may be paid by such method or methods and in such
form or forms, including, without limitation, cash, Shares, other securities or other property or
any combination thereof, as the Committee shall determine. In addition, any Award Agreement with
respect to any other stock-based Award shall set forth the specific time that payment of such Award
will be made and the form of payment thereunder, in compliance with any applicable restrictions
under Code Section 409A; including the requirement that any payment upon a “specified employee’s”
termination of employment be delayed for six months.

(g) General.

     (i) No Cash Consideration for Awards. Except for Options and Stock Appreciation Rights
Awards, Awards may be granted hereunder for no cash consideration or for such minimal cash
consideration as may be required by applicable law.

     (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, and as shall be set forth in the Award Agreement therefor, be granted either
alone or in addition to, in tandem with or in substitution (subject to compliance with any
restrictions under Code Section 409A) for any other Award or any award granted under any
other plan of the Company or any Subsidiary. Awards granted in addition to or in tandem
with other Awards or in addition to or in tandem with awards granted under another plan of
the Company or any Subsidiary, may be granted either at the same time as or at a different
time from the grant of such other Awards or awards.

     (iii) Forms of Payment Under Awards. Subject to the terms of the Plan and as shall be
set forth in any applicable Award Agreement, payments or transfers to be made by the Company
or a Subsidiary upon the grant, exercise, or payment of an Award may be made in such form or
forms as the Committee shall determine, including, without limitation, cash, Shares, other
securities or other property, or any combination thereof, and may be made in a single
payment or transfer, in installments, or on a deferred basis, in each case in accordance
with rules and procedures established by the Committee. Such rules and procedures may
include, without limitation, provisions for the payment or crediting of reasonable interest
on installment or deferred payments or the grant or crediting of Dividend Equivalents in
respect of installment or deferred payments. In addition, any Award Agreement hereunder,
other than for an Award of Options, Stock Appreciation Rights or Restricted Stock, shall set
forth the specific time that payment of such Award will be made and the form of payment
thereunder, in compliance with any applicable restrictions under Code Section 409A;
including the requirement that any payment upon a “specified employee’s” termination of
employment be delayed for six months.

     (iv) Limits on Transfer of Awards.

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     (A) Except as the Committee may otherwise determine, no Award or right under
any Award may be sold, encumbered, pledged, alienated, attached, assigned or
transferred in any manner and any attempt to do any of the foregoing shall be void
and unenforceable against the Company.

     (B) Notwithstanding the provisions of Paragraph (A) above:

     (1) Except as set forth in Paragraph (2) below, a Participant may
assign or transfer a Non-Qualified Stock Option or rights under an Award of
Restricted Stock:

	 	•	 	to a beneficiary designated by the Participant in writing on
a form approved by the Committee;
	 
	 	•	 	by will or the applicable laws of descent and distribution to
the personal representative, executor or administrator of the
Participant’s estate; or
	 
	 	•	 	to a revocable grantor trust established by the Participant
for the sole benefit of the Participant during the Participant’s
life, and under the terms of which the Participant is and
remains the sole trustee until death or Disability. Such
assignment shall be effected by a written instrument in form and
content satisfactory to the Committee, and the Participant shall
deliver to the Committee a true copy of the agreement or other
document evidencing such trust. If in the judgment of the
Committee the trust to which a Participant may attempt to assign
rights under such an Award does not meet the criteria of a trust
to which an assignment is permitted by the terms hereof, or if
after assignment, because of amendment, by force of law or any
other reason such trust no longer meets such criteria, such
attempted assignment shall be void and may be disregarded by the
Committee and the Company and all rights to any such Awards
shall revert to and remain solely in the Participant.
Notwithstanding a qualified assignment, the Participant, and not
the trust to which rights under such an Award may be assigned,
for the purpose of determining compensation arising by reason of
the Award, shall continue to be considered an employee or
Consultant, as the case may be, of the Company or a Subsidiary,
but such trust and the Participant shall be bound by all of the
terms and conditions of the Award Agreement and this Plan.
Shares issued in the name of and delivered to such trust shall
be conclusively considered issuance and delivery to the
Participant.

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     (2) The Committee shall not permit directors or officers of the Company
for purposes of Section 16 to transfer or assign Awards except as permitted
under Rule 16b-3.

     (C) The Committee, the Company and its officers, agents and employees may rely
upon any beneficiary designation, assignment or other instrument of transfer, copies
of trust agreements and any other documents delivered to them by or on behalf of the
Participant which they believe genuine and any action taken by them in reliance
thereon shall be conclusive and binding upon the Participant, the personal
representatives of the Participant’s estate and all persons asserting a claim based
on an Award. The delivery by a Participant of a beneficiary designation, or an
assignment of rights under an Award as permitted hereunder, shall constitute the
Participant’s irrevocable undertaking to hold the Committee, the Company and its
officers, agents and employees harmless against claims, including any cost or
expense incurred in defending against claims, of any person (including the
Participant) which may be asserted or alleged to be based on an Award, subject to a
beneficiary designation or an assignment. In addition, the Company may decline to
deliver Shares to a beneficiary until it receives indemnity against claims of third
parties satisfactory to the Company.

     (v) Share Certificates. All certificates for Shares or other securities delivered
under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the Plan or
the rules, regulations and other requirements of the Securities and Exchange Commission, any
stock exchange upon which such Shares or other securities are then listed and any applicable
Federal or state securities laws, and the Committee may cause a legend or legends to be put
on any such certificates to make appropriate reference to such restrictions.

     (vi) Change in Control. Notwithstanding any of the provisions of this Plan or
instruments evidencing Awards granted hereunder, upon a Change in Control (as defined
above) the vesting of all rights of Participants under outstanding Awards shall be
accelerated and all restrictions thereon shall terminate in order that Participants may
fully realize the benefits thereunder, in the manner otherwise provided for as to the time
and form of payment in the Participant’s Award Agreement. Such acceleration shall include,
without limitation, the immediate exercisability in full of all Options and Stock
Appreciation Rights and the termination of restrictions on Restricted Stock and Restricted
Stock Units. Further, in addition to the Committee’s authority set forth in Section 4(c)
and subject to compliance with any restrictions under Code Section 409A, the Committee (as
constituted before such Change in Control) is authorized and has sole discretion, as to any
Award of Options, Stock Appreciation Rights or Restricted Stock, to take any one or more of
the following actions: (i) provide for the purchase of any such Award, upon the
Participant’s request, for an amount of cash equal to the net value of such Award to the
holder thereof (taking into account any exercise price with respect to such Award and the
Fair Market Value of the Shares as of that time) that could have been attained upon the
exercise of such Award or realization of the Participant’s rights had such Award been
currently exercisable or payable; (ii) make such adjustment to any such Award then

15

 

outstanding as the Committee deems appropriate to reflect such Change in Control; and
(iii) cause any such Award then outstanding to be assumed, or new rights substituted
therefor, by the acquiring or surviving corporation after such Change in Control.

     (vii) Cash Settlement. Notwithstanding any provision of this Plan or of any Award
Agreement to the contrary, any Award of Options, Stock Appreciation Rights or Restricted
Stock outstanding hereunder may at any time be canceled in the Committee’s sole discretion
upon payment of the net value of such Award to the holder thereof in cash (taking into
account any exercise price with respect to such Award and the Fair Market Value of the
Shares as of that time).

Section 7. Amendment and Termination. Except to the extent prohibited by applicable law and unless
otherwise expressly provided in an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board may amend the Plan and the Board or the
Committee may amend any outstanding Award; provided, however, that without the consent of affected
Participants, no amendment of the Plan or of any Award may impair the rights of Participants under
outstanding Awards.

     (b) Waivers. The Committee may waive any conditions or rights under any Award
theretofore granted, prospectively or retroactively, without the consent of any Participant.

     (c) Adjustments of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events. Subject to compliance with any restrictions under Code Section 409A, the Committee
shall be authorized to make adjustments in the terms and conditions of, and the criteria included
in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the
events described in Section 4(c) hereof) affecting the Company, any Subsidiary, or the financial
statements of the Company or any Subsidiary, or of changes in applicable laws, regulations, or
accounting principles, whenever the Committee determines that such adjustments are appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits to be made available
under the Plan.

     (d) Correction of Defects, Omissions, and Inconsistencies. Subject to compliance with
any restrictions under Code Section 409A, the Committee may correct any defect, supply any omission
or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall
deem desirable to effectuate the Plan.

Section 8. General Provisions

     (a) No Rights to Awards. No Participant or other person shall have any claim to be
granted any Award under the Plan, and there is no obligation for uniformity of treatment of
Participants or holders or beneficiaries of Awards under the Plan. The terms and conditions of
Awards of the same type and the determination of the Committee to grant a waiver or modification of
any Award and the terms and conditions thereof need not be the same with respect to each
Participant.

     (b) Withholding. The Company or any Subsidiary shall be authorized to withhold from
any Award granted or any payment due or transfer made under any Award or under the

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Plan the amount (in cash, Shares, other securities, other Awards or other property) of
withholding taxes due in respect of an Award, its exercise or any payment or transfer under such
Award or under the Plan and to take such other action as may be necessary in the opinion of the
Company or Subsidiary to satisfy all obligations for the payment of such taxes. In no event shall
the Company or any Subsidiary withhold from an Award under the Plan more Shares than are required
to meet the established minimum tax withholding requirements of federal, state and local
obligations.

     (c) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall
prevent the Company or any Subsidiary from adopting or continuing in effect other or additional
compensation arrangements, including the grant of options and other stock-based awards, and such
arrangements may be either generally applicable or applicable only in specific cases.

     (d) No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Subsidiary. Further, the
Company or a Subsidiary may at any time dismiss a Participant from employment, free from any
liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any
Award Agreement or other written agreement with the Participant.

     (e) Governing Law. The validity, construction and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware and applicable Federal law.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any person or Award, or
would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person
or Award, and the remainder of the Plan and any such Award shall remain in full force and effect.

     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Subsidiary and a Participant or any other person. To the extent that any person
acquires a right to receive payments from the Company or any Subsidiary pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of the Company or any
Subsidiary.

     (h) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award, and subject to compliance with any restrictions under Code Section 409A,
the Committee shall determine whether cash, other securities, or other property shall be paid or
transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights
thereto shall be canceled, terminated or otherwise eliminated.

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     (i) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 9. Effective Date of the Plan. The Plan was originally effective as of April 30, 1999, the
date of its approval by the Company’s stockholders. The Plan is hereby amended and restated
effective October 25, 2007, by Board action, in compliance with the provisions of Section 7(a)
hereof.

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