Document:

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EXHIBIT 10.4

EAGLE MATERIALS INC.

AMERICAN GYPSUM COMPANY

SALARIED INCENTIVE COMPENSATION PROGRAM

FOR FISCAL YEAR 2007

1. Bonus Pool

     To insure reasonableness and affordability the available funds for bonus payments are
determined as a percent of earnings of American Gypsum Company. The actual percentage may vary
from year to year.

     For Fiscal Year 2007 bonus pool funding will be 2.25% of American Gypsum Company’s operating
profit.

     Participants must be employed at fiscal year-end to be eligible for any bonus award. Awards
may be adjusted for partial year participation for participants added during a year.

     Eagle Materials CEO retains the final right of interpretation and administration of the plan
and to amend or terminate the plan at any time.

2. Eligibility

     The American Gypsum Company President, Vice Presidents and Plant Mangers will be in the plan.
Additional participants who have management responsibilities or are in a professional capacity that
can measurably impact earnings may be recommended by American Gypsum Company President subject to
the approval of the Eagle Materials CEO. The addition of new plan participants will not affect the
total pool available but will in effect dilute the potential bonuses of the original participants.

     Participants must be an exempt salaried manager or professional. No hourly or non-exempt
employee may participate. Participants in this plan may not participate in any other company
incentive plan with monetary awards, except for American Gypsum Company’s Long Term Compensation
Program, the Eagle Materials Long Term Compensation Program and the Eagle Materials Special
Situation Program.

3. Allocation of Pool

     The American Gypsum Company President will be eligible for 20% — 25% of the pool. The American
Gypsum Company President will recommend the distribution of the remainder of the company pool. The
participants in the plan and their percentage of the pool will be approved by the Eagle Materials
CEO at the beginning of the fiscal year for which the bonus is being earned. For example:

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	Participant	 	% of Pool Available
	Company President
	 	 	22	%
	Vice Presidents
	 	 	34	%
	Plant Managers
	 	 	20	%
	Other Participants (Directors, Superintendents)
	 	 	24	%
	 
	 	 	 	 
	Total
	 	 	100	%

     The American Gypsum Company President’s bonus opportunity will be 50% objective goals and 50%
discretionary as determined by Eagle Materials CEO taking into consideration overall job
performance and compliance with Eagle Materials Policies and Code of Ethics. All participants in
the plan must have the ability to significantly affect the performance of the subsidiary company by
achieving measurable, quantifiable objectives. The American Gypsum Company President will
determine the objective and discretionary balance of bonus opportunities for the other participants
in this program, subject to approval by the Eagle Materials CEO.

4. Objective Criteria

     Objective setting is essential to an effective incentive compensation plan. Objectives should
be measurable and focus on areas that have meaningful impact on our operational performance.
Having selected objectives, it is also important to establish a reference point for that objective
which indicates expected performance.

     In addition to consideration of the budget plan as a reference, we will consider historic
performance of a facility, equipment design standards, industry standards, comparable values from
other companies or like situations and any other qualified source or establishing reference points
or basis for determining performance.

     To illustrate the need for the selection of an objective, the reference point and how
performance deviation from the reference is judged, let’s look at safety as an example. Let’s
suppose a company plans 0 lost time accidents, which is reasonable to plan. If they have 1 lost
time accidents, is the performance a total failure, poor, fair or reasonable? If they have 2 lost
time accidents, is the performance unacceptable, poor, fair or reasonable? From this information
it would be difficult to assess their overall safety performance. We could give consideration to
the number of incidents requiring doctor’s treatment. We could include an evaluation of worker’s
compensation claims or dollars spent. As an alternative to these, we could use industry statistics
available from an authoritative source such as OSHA or GA which show accident frequency and
severity ratio for comparable facilities. We could establish a mean or average as our reference
point, based on accident frequency and severity, and agree to a bonus adjustment according to our
percentile ranking with comparable industry.

     Another example might be the case of a dryer system that is allowed to deteriorate. This
would tend to lower thermal efficiency and line speed, but could increase available hours because
we didn’t take the necessary down time to repair the dryer system. A plan built on this premise
might have production and BTU per MSF

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statistics lower than historical performance but up time shown as higher. Rather than using plan
as the reference point for these criteria, we might use historical performance for line speed,
BTU/msf and a combination of historical and industry average for up time. The intent would be to
cause a focus on the issue of not deferring maintenance.

     Because our basic products are commodities the level of prices in a given market area are
established by supply and demand over which local management has little control. Through price
leadership, local management can affect prices in a small range around supply-demand equilibrium.
Accordingly, one of the performance criteria might still be pricing but this does not indicate that
an overall bad or good market is itself a performance indicator of local management. For bonus
purposes, they should neither be penalized nor rewarded for the general economic conditions.

     Fixed assets is another area over which local management exercises limited control. Each
manager basically has to work with the fixed assets he is assigned. Local management can exercise
considerable control over current assets such as receivable and inventory but, as a heavily
capitalized industry with limited transportability, local management essentially has to do the best
they can with the PP&E they are assigned.

     Typical objectives that impact earnings include:

	 	•	 	Sales

	 	•	 	Volume (total or specific product)
	 
	 	•	 	Price
	 
	 	•	 	Market share

	 	•	 	Plant Efficiencies

	 	•	 	Waste
	 
	 	•	 	Speed
	 
	 	•	 	Delay
	 
	 	•	 	Fuel usage/msf
	 
	 	•	 	Contribution/machine hour

	 	•	 	Production

	 	•	 	Volume
	 
	 	•	 	Cost (total or specific component)

	 	•	 	Quality Rating
	 
	 	•	 	Environmental Compliance
	 
	 	•	 	Managing Capital Projects
	 
	 	•	 	Overhead Reduction
	 
	 	•	 	Working Capital

	 	•	 	Inventory turns
	 
	 	•	 	Receivables

	 	•	 	Long Term Planning

	 	•	 	Gypsum reserves
	 
	 	•	 	Maintenance – protection of assets

	 	•	 	Personnel

	 	•	 	Training and development
	 
	 	•	 	Turnover rate
	 
	 	•	 	Union relations

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5. Measuring Performance

     At the close of the fiscal year the American Gypsum Company President will review the
performance of the company versus the objectives submitted at the beginning of the year and
recommend the distribution of the pool to the participants. Distribution of the pool requires
approval of the Eagle Materials CEO.

     Any portion of the Company Operating Pool not paid out (unearned) or forfeited will be added
to the SSP at Corporate.

     At anytime during the fiscal year the American Gypsum Company President may also recommend to
the Eagle Materials CEO an SSP award to recognize outstanding individual performances that
dramatically improved the companies profitability or long term value.

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EXHIBIT 10.5

EAGLE MATERIALS INC.

FY 2007 STRATEGIC EXECUTION GOALS

Wallboard Companies

	1.	 	Goal regarding scheduling and budget of strategic project.
	 
	2.	 	Goal regarding logistic plan.
	 
	3.	 	Goal regarding future expansion opportunities.

Cement Companies

	1.	 	Goal regarding scheduling and budget of strategic projects.
	 
	2.	 	Goal regarding completion of analysis for certain projects.
	 
	3.	 	Goal regarding future expansion opportunities.

Paperboard Company

	1.	 	Goal regarding product differentiation.

Concrete and Aggregate Companies

	1.	 	Goal regarding scheduling and budget of strategic project.
	 
	2.	 	Goal regarding expansion project analysis.

General

	1.	 	Goal relating to strategic expansion opportunities.exv10w6

 

EXHIBIT 10.6

EAGLE MATERIALS INC.

FY 2007 OPERATIONAL EXCELLENCE GOALS

Gypsum Companies

	1.	 	Goal relating to gypsum wallboard production.
	 
	2.	 	Goal relating to wallboard product development.
	 
	3.	 	Goal relating to customer relationships.

Cement Companies

	1.	 	Goals relating to annual production and sales.

Paperboard Company

	1.	 	Goal relating to plant operations.

Concrete and Aggregates Companies

	1.	 	Goal relating to aggregates companies operating and financial
performance.
	 
	2.	 	Goal relating to concrete companies operating and financial
performance.

Safety – All Companies

	1.	 	Goal relating to reportable cases.exv10w1

 

EXHIBIT 10.1

ROCHESTER MEDICAL CORPORATION

2001 STOCK INCENTIVE PLAN

(as amended January 26, 2006)

SECTION 1. PURPOSE OF THE PLAN.

     This Plan shall be known as the “Rochester Medical Corporation 2001 Stock Incentive Plan” and
is hereinafter referred to as the “Plan.” The purpose of this Plan is to promote the interests of
the Company and its shareholders by aiding in maintaining and developing employees, officers,
consultants, independent contractors and non-employee directors capable of assuring the future
success of Rochester Medical Corporation, a Minnesota corporation (the “Company”), to offer such
persons additional incentives to put forth maximum efforts for the success of the business, and to
afford them an opportunity to acquire a proprietary interest in the Company through stock options
as provided herein. Options granted under this Plan may be either incentive stock options
(“Incentive Stock Options”) within the meaning of Section 422 of the United States Internal Revenue
Code of 1986, as amended (the “Code”), or options which do not qualify as Incentive Stock Options.

SECTION 2. STOCK SUBJECT TO THE PLAN.

     (a) Subject to adjustment as provided in Section 11, the maximum number of shares granted as
shares on which options may be exercised under this Plan shall be 1,000,000 shares (the “Shares”)
of the Company’s common stock, par value $.01 per share (the “Common Stock”), and the maximum
number of Shares available for granting Incentive Stock Options under this Plan shall not exceed
1,000,000, subject to adjustment as provided in Section 11 and subject to the provisions of Section
422 or 424 of the Code or any successor provision. The Shares shall be authorized but unissued
shares of Common Stock. If an option or restricted stock grant under this Plan expires or for any
reason is terminated or expires unexercised with respect to any Shares, such Shares shall again be
available for options or restricted stock awards thereafter granted during the term of this Plan.

     (b) No person may be granted any award or awards under this Plan, the value of which is based
solely on an increase in the value of the Shares after the date of grant, for more than 50,000
Shares (subject to adjustment as provided for in Section 11) in the aggregate in any calendar year.
The foregoing annual limitation specifically includes the grant of any award or awards
representing “qualified performance-based compensation” within the meaning of Section 162(m) of the
Code.

SECTION 3. ADMINISTRATION OF PLAN.

     (a) This Plan shall be administered by the Board of Directors of the Company or a committee of
two or more directors of the Company. The members of such committee shall be appointed by and
serve at the pleasure of the Board of Directors. Such committee shall consist

 

 

of not less than
that number of directors that shall be required to permit options or restricted stock granted under
this Plan to qualify under Rule 16b-3 (or any successor rule or regulation) promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, each of
whom shall be a “Non-Employee Director” within the meaning of such Rule. If the Company is subject
to Section 162(m) of the Code, the Company expects to have this Plan administered in accordance
with the requirements for the award of “qualified performance-based compensation” within the
meaning of such Section and each member of such Committee shall be an “outside director” within the
meaning of such Section. If any such committee is established, the Board of Directors may, at any
time and from time to time, without any further action of such committee, exercise the powers and
duties of such committee under this Plan. The group administering this Plan at any time shall be
referred to herein as the “Committee.”

     (b) The Committee shall have plenary authority in its discretion, but subject to the express
provisions of this Plan, (i) to determine the persons to whom and the time or times at which
options shall be granted and the number of Shares to be subject to each option, (ii) to determine
the purchase price of the Shares covered by each option, (iii) to determine the terms and
conditions of each option, (iv) to accelerate the time at which all or any part of an option may be
exercised, (v) to amend or modify the terms of any option with the consent of the holder of the
option, (vi) to interpret this Plan, (vii) to prescribe, amend and rescind rules and regulations
relating to this Plan, (viii) to determine the terms and provisions of each option agreement with
respect to options granted under this Plan (which agreements need not be identical), including the
designation of those options intended to be Incentive Stock Options, and (ix) to make all other
determinations necessary or advisable for the administration of this Plan, subject to the exclusive
authority of the Board of Directors under Section 13 to amend or terminate this Plan. The
Committee’s determinations on the foregoing matters, unless otherwise disapproved by the Board of
Directors of the Company, shall be final and conclusive.

     (c) The Committee shall select one of its members as its Chair and shall hold its meetings at
such times and places as it may determine. A majority of its members shall constitute a quorum.
All determinations of the Committee shall be made by not less than a majority of its members. Any
decision or determination that is set forth in a written document and signed by all of the members
of the Committee shall be fully effective as if it had been made by a majority vote at a meeting
duly called and held. The Committee may appoint a Secretary and may make such rules and
regulations for the conduct of its business as it shall deem advisable.

SECTION 4. ELIGIBILITY.

     Incentive Stock Options may only be granted under this Plan to any full or part-time employee
(which term as used herein includes, but is not limited to, officers and directors who are also
employees) of the Company and of its present and future subsidiary corporations (herein called
“subsidiaries”) that qualify as “subsidiary corporations” of the Company within the meaning of
Section 424(f) of the Code or any successor provision. Full and part-time employees of the Company
and its subsidiaries, members of the Board of Directors of the Company or one of its subsidiaries
who are not also employees thereof, and consultants or independent contractors providing valuable
services to the Company or one of its subsidiaries who are not

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also employees thereof shall be
eligible to receive options which do not qualify as Incentive Stock Options and to receive grants
of restricted stock. In determining the persons to whom options or restricted stock grants shall
be granted and the number of Shares subject to each option or grant, the Committee may take into
account the nature of services rendered by the respective persons, their present and potential
contributions to the success of the Company and such other factors as the Committee in its
discretion shall deem relevant. A person who has been granted an option or restricted stock grant
under this Plan may be granted additional options or restricted stock grants under this Plan if the
Committee shall so determine; provided, however, that to the extent the aggregate fair market value
(determined at the time the Incentive Stock Option is granted) of the Shares with respect to which
all Incentive Stock Options are exercisable for the first time by an employee during any calendar
year (under all plans described in Section 422 of the Code of his or her employer corporation and
its parent and subsidiary corporations described in Section 424(e) or 424(f) of the Code) exceeds
$100,000, such options shall be treated as options which do not qualify as Incentive Stock Options.

SECTION 5. OPTION GRANTS.

     (a) Subject to the provisions of Section 8, the option price for all Incentive Stock options
granted under this Plan shall be determined by the Committee but shall not be less than 100% of the
fair market value of the Shares at the date of granting of such option. The option price for
options granted under this Plan which do not qualify as Incentive Stock Options shall also be
determined by the Committee. For purposes of the preceding sentence and for all other valuation
purposes under this Plan, the fair market value of the Shares shall be as reasonably determined by
the Committee. If on the date of grant of any option granted under this Plan, the Shares are not
publicly traded, the Committee shall make a good faith attempt to satisfy the option price
requirement of this Section 6 and in connection therewith shall take such action as it deems
necessary or advisable.

     (b) Each option and all rights and obligations thereunder shall expire on the date determined
by the Committee and specified in the option agreement. The Committee shall be under no duty to
provide terms of like duration for options granted under this Plan, but the term of an Incentive
Stock Option may not extend more than ten (10) years from the date of granting of such option and
the term of options granted under this Plan which do not qualify as Incentive Stock Options may not
extend more than ten (10) years from the date of granting of such option.

     (c) Options shall be granted for no cash consideration or for such minimal cash consideration
as may be required by applicable law.

     (d) Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, the
following additional provisions shall apply to the grant of stock options which are intended to
qualify as Incentive Stock Options:

     (A) The aggregate Fair Market Value (determined as of the time the option is granted)
of the Shares with respect to which Incentive Stock Options are exercisable for the first
time by any participant during any calendar year (under this Plan and all other plans of the
Company and its Affiliates) shall not exceed $100,000.

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     (B) All Incentive Stock Options must be granted within ten years from the earlier of
the date on which this Plan was adopted by Board of Directors or the date this Plan was
approved by the shareholders of the Company.

     (C) Unless sooner exercised, all Incentive Stock Options shall expire and no longer be
exercisable no later than 10 years after the date of grant; provided, however, that in the
case of a grant of an Incentive Stock Option to a participant who, at the time such Option
is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than
10% of the total combined voting power of all classes of stock of the Company or of its
Affiliate, such Incentive Stock Option shall expire and no longer be exercisable no later
than 5 years from the date of grant.

     (D) The purchase price per Share for an Incentive Stock Option shall be not less than
100% of the Fair Market Value of a Share on the date of grant of the Incentive Stock Option;
provided, however, that, in the case of the grant of an Incentive Stock Option to a
participant who, at the time such option is granted, owns (within the meaning of Section 422
of the Code) stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or of its Affiliate, the purchase price per Share
purchasable under an Incentive Stock Option shall be not less than 110% of the Fair Market
Value of a Share on the date of grant of the Incentive Stock Option.

     (E) Any Incentive Stock Option authorized under the Plan shall contain such other
provisions as the Committee shall deem advisable, but shall in all events be consistent with
and contain all provisions required in order to qualify the Option as an Incentive Stock
Option.

SECTION 6. OPTION EXERCISE.

     (a) The Committee shall have full and complete authority to determine whether the option will
be exercisable in full at any time or from time to time during the term of the option, or to
provide for the exercise thereof in such installments, upon the occurrence of such events and at
such times during the term of the option as the Committee may determine.

     (b) The exercise of any option granted hereunder shall only be effective at such time that the
sale of Shares pursuant to such exercise will not violate any applicable domestic or foreign
securities or other laws.

     (c) An optionee electing to exercise an option shall give written notice to the Company of
such election and of the number of Shares subject to such exercise. The full purchase price of
such Shares shall be tendered with such notice of exercise. Payment shall be made to the Company
either in cash (including check, bank draft or money order), or, at the discretion of the
Committee, (i) by delivery of the optionee’s promissory note, which shall provide for interest at a
rate not less than the minimum rate required to avoid the imputation of income, original issue
discount or a below-market-rate loan pursuant to Sections 483, 1274 or 7872 of the Code or any
successor provisions thereto, (ii) by delivering certificates for shares of Common Stock already
owned by the optionee having a fair market value equal to the full purchase price of the Shares, or
(iii) any combination of cash, promissory notes and shares of

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Common Stock; provided, however, that
an optionee shall not be entitled to tender shares of Common Stock pursuant to successive,
substantially simultaneous exercises of options granted under this or any other stock option plan
of the Company. The fair market value of such tendered shares of Common Stock shall be determined
as provided in Section 6. Until such person has been issued a certificate or certificates for the
Shares subject to such exercise, he or she shall possess no rights as a shareholder with respect to
such Shares.

SECTION 7. ADDITIONAL RESTRICTIONS.

     All Shares or other securities delivered under this Plan pursuant to any option or restricted
stock grant or the exercise thereof shall be subject to such restrictions as the Committee may deem
advisable under this Plan, applicable federal or state securities laws and regulatory requirements,
which restrictions shall be contained in the agreement relating to the option or restricted stock
grant. The Committee shall cause appropriate entries to be made or legends to be affixed to
certificates representing the Shares to reflect such restrictions. If any securities of the
Company are traded on a securities exchange, the Company shall not be required to deliver any
Shares or other securities covered by an option or restricted stock grant unless and until such
Shares or other securities have been admitted for trading on such securities exchange.

SECTION 8. TEN PERCENT SHAREHOLDER RULE.

     Notwithstanding any other provision in this Plan, if at the time an option is otherwise to be
granted pursuant to this Plan the optionee owns directly or indirectly (within the meaning of
Section 424(d) of the Code) shares of common stock of the Company possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company or its parent or
subsidiary corporations (within the meaning of Section 424(e) or 424(f) of the Code), if any, then
any Incentive Stock Option to be granted to such optionee pursuant to this Plan shall satisfy the
requirements of Section 422(c)(7) of the Code, the option price shall be not less than 110% of the
fair market value of the Shares determined as described herein, and such option by its terms shall
not be exercisable after the expiration of five (5) years from the date such option is granted.

SECTION 9. NON-TRANSFERABILITY.

     No option granted under this Plan and no right under any such option shall be transferable by
the recipient otherwise than by will or by the laws of descent and distribution. During the
lifetime of an optionee, an option shall be exercisable only by such optionee. No option granted
under this Plan or right under any such option may be pledged, alienated, attached or otherwise
encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void
and unenforceable against the Company or any affiliate.

SECTION 10. ADJUSTMENTS.

     If the Committee shall determine that, as the result of any change in the Common Stock through
merger, consolidation, reorganization, recapitalization, stock dividend (of whatever amount), stock
split or other similar corporate transaction or change in the corporate structure of the Company,
adjustments in this Plan and outstanding options would be appropriate to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under

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this Plan,
then the Committee shall make such adjustments in this Plan and outstanding options as it may deem
equitable. In the event of any such changes, adjustments shall include, where appropriate, changes
in the number and type of Shares subject to this Plan and the number and type of Shares and the
price per Share subject to outstanding options.

SECTION 11. INCOME TAX WITHHOLDING; TAX BONUSES.

     (a) In order to comply with all applicable domestic or foreign income tax laws or regulations,
the Company may take such action as it deems appropriate to ensure that all applicable federal,
state or local payroll, withholding, income or other taxes, which are the sole and absolute
responsibility of the person receiving the option under this Plan, are withheld or collected from
such person. In order to assist the recipient in paying all or a portion of the federal, state or
local taxes to be withheld or collected upon exercise or receipt of (or the lapse of restrictions
relating to) an option or restricted stock, the Committee, in its discretion and subject to such
additional terms and conditions as it may adopt, may permit the recipient to satisfy such tax
obligation by (i) electing to have the Company withhold a portion of the Shares otherwise to be
delivered upon exercise of such option with a fair market value equal to the amount of such taxes,
or (ii) delivering to the Company shares of Common Stock other than Shares issuable upon exercise
of such option with a fair market value equal to the amount of such taxes. The fair market value
of shares of Common Stock shall be determined in accordance with Section 5. The election, if any,
must be made on or before the date that the amount of tax to be withheld is determined.

     (b) The Committee, in its discretion, shall have the authority, at the time of grant of any
option under this Plan or at any time thereafter, to approve cash bonuses to designated recipients
to be paid upon their exercise of the option in order to provide funds to pay all or a
portion of federal, state or local taxes due as a result of such exercise. The Committee
shall have full authority in its discretion to determine the amount of any such tax bonus.

SECTION 12. AMENDMENT AND TERMINATION.

     (a) The Company’s Board of Directors may amend, alter, suspend, discontinue or terminate this
Plan at any time; provided, however, that notwithstanding any other provision of this Plan or any
option agreement, without the approval of the shareholders of the Company, no such amendment,
alteration, suspension, discontinuation or termination shall be made that, absent such approval (i)
would violate the rules or regulations of any securities exchange that are applicable to the
Company; or (ii) would cause the Company to be unable, under the Code, to grant Incentive Stock
Options under this Plan.

     (b) The Committee may waive any conditions of or rights of the Company under any outstanding
option, prospectively or retroactively. Except as otherwise provided herein or in the option
agreement, the Committee may not amend, alter, suspend, discontinue or terminate any outstanding
option, prospectively or retroactively, if such action would adversely affect the rights of the
holder of such option or restricted stock, without the consent of the holder or beneficiary
thereof.

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     (c) The Committee may correct any defect, supply any omission or reconcile any inconsistency
in this Plan or any option agreement in the manner and to the extent it shall deem desirable to
carry this Plan into effect.

SECTION 13. TIME OF GRANTING.

     The granting of an option pursuant to this Plan shall be effective only if a written agreement
shall have been duly executed and delivered by and on behalf of the Company and the person to whom
such option is granted. Nothing contained in this Plan or in any resolution adopted or to be
adopted by the Board of Directors or by the shareholders of the Company, and no action taken by the
Committee or the Board of Directors (other than the execution and delivery of such an agreement),
shall constitute the granting of an option hereunder.

SECTION 14. NO RIGHT TO AWARDS; NO GUARANTY OF CONTINUED SERVICE OR FUTURE BENEFITS.

     (a) No person shall have any claim to be granted any option under this Plan, and there is no
obligation for uniformity of treatment of employees, directors, consultants, independent contracts
or holders or beneficiaries of options under this Plan. The terms and conditions of options need
not be the same with respect to any recipient or with respect to different recipients.

     (b) Nothing in this Plan or in any agreement hereunder shall confer on any employee, director,
consultant or independent contractor any right to continue in the employ or service of the Company
or any of its subsidiaries or affect in any way the right of the Company or any of its subsidiaries
to terminate any such person’s employment or other services at any time, with or without cause. In
addition, the Company or an affiliate may at any time terminate the employment or service of an
employee, director, consultant or independent contractor free from any liability or any claim under
this Plan or any award or agreement with respect to an option or restricted stock grant hereunder,
unless otherwise expressly provided in this Plan or in any such agreement.

     (c) Options shall be granted under this Plan in the sole discretion of the Board of Directors
or the Committee and will not form part of the recipient’s salary or entitle the recipient to
similar option grants in the future.

SECTION 15. GENERAL PROVISIONS.

     (a) Nothing in this Plan shall prevent the Company or any affiliate from adopting or
continuing in effect other or additional compensation arrangements, and such arrangements may be
either generally applicable or applicable only in specific cases.

     (b) The validity, construction and effect of this Plan or any option agreement hereunder, and
any rules and regulations relating to this Plan or any option agreement hereunder, shall be
determined in accordance with the laws of the State of Minnesota.

     (c) If any provision of this Plan or any option agreement hereunder is or becomes or is deemed
to be invalid, illegal or unenforceable in any jurisdiction or would disqualify this Plan or any
option agreement hereunder under any law deemed applicable by the Committee, such

7

 

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 purpose or
intent of this Plan or the option agreement hereunder, such provision shall be stricken as to such
jurisdiction or option agreement, and the remainder of this Plan or any such agreement shall remain
in full force and effect.

     (d) Neither this Plan nor any option hereunder shall create or be construed to create a trust
or separate fund of any kind or a fiduciary relationship between the Company or any affiliate of
the Company and a recipient or any other person.

     (e) No fractional Shares shall be issued or delivered pursuant to this Plan or any option
hereunder, and the Committee shall determine whether cash shall be paid in lieu of any fractional
Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or
otherwise eliminated.

     (f) Headings are given to the Sections and subsections of this 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 this Plan or any provision hereof.

SECTION 16. EFFECTIVE DATE AND TERMINATION OF PLAN.

     (a) This Plan shall be effective as of February 8, 2001 (the date of its adoption by the Board
of Directors and the shareholders of the Company).

     (b) Unless this Plan shall have been discontinued as provided in Section 12 above, this Plan
shall terminate on February 8, 2011. No option may be granted after such termination, but
termination of this Plan shall not, without the consent of the recipient, alter or impair any
rights or obligations under any option theretofore granted.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]