Document:

Agreement Letter

Exhibit 10.1 
 
June 28, 2002 
 
Banco Latinoamericano de Exportaciones, S.A. 
Calle 50 y Aquilino de la Guardia, 
Apartado 6-1497, El Dorado 
Panama, Republic of Panama 
 
Attention: Mr. José Castañeda 
President and
Chief Executive Officer 
 
Dear
Mr. Castañeda: 
 
This letter agreement (this
“Agreement”) confirms the agreement between BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. (together, the “Financial Advisors”) and Banco Latinoamericano de Exportaciones, S.A. (the “Company”) with
respect to the following matters: 
 
Section 1.
Mandate. The Company hereby retains the Financial Advisors to provide the Company with financial advice with respect to ratings-related issues (the “Mandate”). It is anticipated that, in order for the Company to maintain an
investment grade rating on its senior unsecured indebtedness, it will be necessary for the Company to raise additional equity capital in an amount to be determined but currently estimated to be approximately US $100 million. The Company currently
anticipates raising this capital from its existing Class A and Class B shareholders, and possibly certain public sector entities (the “Offering”) in a private placement. In connection with the Mandate, the Company hereby appoints the
Financial Advisors as its exclusive placement agents for any Offering. 
 
In connection with the Mandate, the Financial Advisors may perform certain of their obligations, and exercise certain of their rights, through one or more of their affiliates, and all references herein to the “Financial
Advisors” shall be deemed also to refer to any such affiliates. 
 
Section 2. Actions by the Company and the Financial Advisors 
 
The services to be performed by the Financial Advisors in connection with the Mandate may, to the extent requested by the Company, include: (a) conducting a review and analysis of the Company’s
business, operations and financial projections; (b) evaluating the Company’s projected cash flows, earnings and asset quality; (c) assisting in the determination of an appropriate capital structure for the Company with respect to certain
ratings outcomes; (d) advising the Company on specific tactics and strategies for communicating with Moody’s, S&P and Fitch (the “Rating Agencies”); (e) rendering financial and ratings advice to the Company and participating in
any meetings or negotiations with the Rating Agencies; (f) advising the Company on the timing, nature and terms of any communications with the Rating Agencies; (g) assisting 

Mr. José Castañeda 
June 28, 2002 
Page 2 
 

the Company in preparing any documentation required in connection with rating agency requests or meetings; (h) attending meetings with and
making financial presentations to the Rating Agencies; and (i) providing the Company with other general ratings advice. The engagement of the Financial Advisors hereunder shall not obligate the Financial Advisors or any of their affiliates to
achieve a ratings upgrade or any other particular ratings outcome for the Company from any of the Rating Agencies. 
 
In connection with the Offering, the Financial Advisors will assist the Company in contacting existing holders of the Company’s Class A and Class B
common stock (the “Existing Holders”) to determine the interest of the Existing Holders in making additional equity investments in the Company. In addition, the Financial Advisors will assist the Company in contacting certain other public
sector entities (the “Public Sector Entities”) that the Financial Advisors may identify as potentially having interest in making an equity investment in the Company. 
 
If the Financial Advisors determine that it is necessary in connection with the Offering, the Company, with the Financial
Advisors’ assistance will prepare a Confidential Offering Memorandum (the “Memorandum”), which will contain (a) a description of the Company and its business, assets, prospects and management; (b) the terms and conditions of the
Offering and of the securities being offered (the “Securities”); and (c) such audited and interim unaudited financial statements and projections as the Company and the Financial Advisors deem appropriate. If necessary, the Company will
update the Memorandum prior to completion of the Offering. The Financial Advisors shall be entitled to rely on the accuracy and completeness of all information provided by the Company and its representatives, including information incorporated by
reference in the Memorandum. Additionally, representatives of the Company shall be available to answer questions of, and to provide additional information to, any potential investors. The Company represents that the Memorandum will not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. 
 
The terms of the Offering shall be subject to mutual agreement of the Company and each investor in the Offering. The Financial Advisors will assist in the
negotiation and the structuring of the Securities, and provide related services that the Financial Advisors deem advisable and reasonable that may facilitate the successful completion of the Offering. It is the current intention of the parties that
the Offering will be made as a private placement pursuant to the exemption from the registration requirement of the U.S. Securities Act of 1933, as amended (the “Securities Act”) provided by section 4(2) of the Securities Act (a “4(2)
Offer”) or another appropriate and available exemption. In the event of a 4(2) Offer, any sales of Securities will be effected pursuant to a purchase agreement between the Company and the purchasers of the Securities, which shall (i) contain
customary representations and covenants on behalf of the Company, (ii) provide for the delivery by the Company of such certificates as the Financial Advisors determine to be necessary and by the Company’s internal and external counsel of such
opinions (including, if requested by the Financial Advisors, opinions regarding the accuracy and completeness of the 

Mr. José Castañeda 
June 28, 2002 
Page 3 
 

Memorandum), as the Financial Advisors determine to be necessary, and the availability of an exemption under the Securities Act addressed to
the investors and the Financial Advisors, (iii) provide for delivery to the Financial Advisors of a comfort letter from the Company’s certified public accountants with respect to financial information contained in the Memorandum (iv) contain
such other terms and conditions as shall be agreed to by the Company and the purchasers, and (v) contain customary representations and warranties of the purchasers. The Company agrees that to the extent escrow arrangements are required by law or
regulation to be utilized in connection with the Offering proceeds will be maintained at a “bank” within the meaning of Section 3(a) (6) of the U.S. Securities Exchange Act of 1934, as amended. 
 
In the event that the Offering is conducted outside of the U.S. in reliance on
Regulation S under the Securities Act and/or within the U.S. in reliance on Rule 144A under the Securities Act, the Company and the Financial Advisors will enter into an appropriate placement agreement for such offering containing such terms and
conditions as are customary for internationally recognized investment banking firms for similar transactions, including, without limitation, appropriate indemnification provisions. In the event that the Company and the Financial Advisors decide to
register the Offering under the Securities Act, the Company and the Financial Advisors will enter into an appropriate underwriting agreement containing such terms and conditions as are customary for internationally recognized investment banking
firms for similar transactions, including, without limitation, appropriate indemnification provisions 
 
Nothing in this letter agreement shall constitute a commitment by the Financial Advisors to purchase, underwrite or place any Securities or make any investment in, or provide any financing to, the
Company. In addition, the Financial Advisors may decline to participate in the Offering if they determine that the completion of the Offering is impractical, undesirable or not advisable. 
 
The Company agrees during the term of the engagement not to initiate any discussions with prospective investors looking
toward the issuance of the Securities or any other equity, equity-linked, equity related security or any convertible, exchangeable or subordinated debt security without first notifying the Financial Advisors. If the Company, its directors,
management or controlling shareholders or agents receive any inquiry or are otherwise aware of the interest of any third party concerning such investment during the term of this engagement, they will promptly inform the Financial Advisors of the
prospective investor and its interest. 
 
The Company represents
that it has not during the previous six months and agrees that it will not during the six months following the termination or expiration of the Mandate offer or sell any securities that, if integrated with the Offering, would require the Offering to
be registered under the Securities Act. 
 
Section 3.
Information. The Company will furnish to the Financial Advisors such information as the Financial Advisors reasonably request in connection with the performance of their services hereunder (all such information so furnished is referred to
herein as the “Information”). The 

Mr. José Castañeda 
June 28, 2002 
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Company understands and agrees that the Financial Advisors, in performing their services hereunder, will use and rely upon the Information as
well as publicly available information regarding the Company and that the Financial Advisors do not assume responsibility for independent verification of any information, whether publicly available or otherwise furnished to them, concerning the
Company, including, without limitation, any financial information, forecasts or projections, considered by the Financial Advisors in connection with the rendering of their services. Accordingly, the Financial Advisors shall be entitled to assume and
rely upon the accuracy and completeness of all such information and are not required to conduct a physical inspection of any of the properties or assets, or to prepare or obtain any independent evaluation or appraisal of any of the assets or
liabilities, of the Company. With respect to any financial forecasts and projections made available to the Financial Advisors by the Company and used by the Financial Advisors in their analysis, the Financial Advisors shall be entitled to assume
that such forecasts and projections have been reasonably prepared on bases reflecting the best currently available estimates and judgments of the management of the Company, as to the matters covered thereby. All material non-public information
concerning the Company given to the Financial Advisors by or on behalf of the Company during the course of their engagement hereunder will be used solely in the course of the performance of their services hereunder and will be treated confidentially
by the Financial Advisors for so long as it remains non-public. Except as contemplated in the performance of their services hereunder or as otherwise required by law or by judicial or regulatory process or requested by regulatory agencies with
jurisdiction over a Financial Advisor, the Financial Advisors will not disclose such information to a third party without the consent of the Company (which consent shall not be unreasonably withheld), except that the Financial Advisors may disclose
all information available to it to such of its officers, directors, lawyers, accountants, advisors, agents and representatives who have a need to know such information in order for the Financial Advisors to perform the services contemplated
hereunder and who have been advised of the confidentiality thereof and the restrictions on disclosure imposed hereby. The obligations of the Financial Advisors under the immediately preceding sentence shall terminate on the third anniversary of the
date of the termination of their engagement under this agreement. 
 
Section 4. Fees. As consideration for the Financial Advisors’ services set forth in Section 2, the Company shall pay the Financial Advisors in cash: 
 

	 	(a)	 	A monthly fee of US$150,000 payable in advance on the date hereof commencing for the month of June 2002 and on the first business day of each succeeding month or
portion thereof thereafter until completion of the engagement (the “Retainer Fee”); and 

 

	 	(b)	 	A fee of US$2,000,000 payable upon completion of the Offering provided that such amount shall be reduced by an amount of equal to one third of the amount of any
previously paid Retainer Fee; and 

Mr. José Castañeda 
June 28, 2002 
Page 5 
 
 

	 	(c)	 	A fee of US$1,500,000 (the “Success Fee”), payable on the earlier to occur of (i) confirmation prior to August 1, 2003 but after the completion of the
Offering (or after sufficient indications of interest from investors are received to conclude that the Offering will be completed) by at least two of the Rating Agencies of an investment grade rating on the senior unsecured debt obligations of the
Company or (ii) December 31, 2002, if at least two Rating Agencies continue to rate the senior unsecured debt obligations of the Company as investment grade as of such date. 

 
It is agreed that except as set forth above the Financial Advisors shall not be entitled to additional compensation in
connection with the Offering to Existing Holders and Public Sector Entities that purchase Securities. In the event that the Company offers and sells securities to investors other than existing Class A and Class B shareholders and certain public
sector entities then the Financial Advisors shall be entitled to compensation in the amount customary for such offerings. In that case, the Company and the Financial Advisors will enter into appropriate documentation for such offering containing
such compensation and other terms and conditions as are customary for internationally recognized investment banking firms for similar transactions, including, without limitation, appropriate indemnification provisions. 
 
Section 5. Expenses. In addition to any fees that may be payable
to the Financial Advisors hereunder and regardless of whether or not the Offering is completed or any ratings objective is achieved, the Company agrees, from time to time upon request, to reimburse the Financial Advisors for all: (i) out-of-pocket
expenses (including travel and lodging, data processing and communications charges, courier services and other expenditures) and (ii) other out-of-pocket fees and expenses, including fees and expenses of counsel, and any applicable filing fees.

 
Section 6. Other Services. If, during the term of
this Agreement or during the two (2) year period following the later of, the completion of the Mandate or the date of termination of this Agreement, the Company, either directly or through its subsidiaries, (a) determines to raise new Tier 1 or Tier
2 capital through the issuance of public or private subordinated debt, equity and/or equity-linked securities or (b) requires additional advisory services related to the subject matter of this engagement, the Company shall give the Financial
Advisors a right of first refusal to act as sole lead managers, placement agents or arrangers or as sole advisors, as the case may be, in connection therewith. In any such event, the Company and the Financial Advisors will enter into a separate
agreement or other appropriate documentation for such financing or other activity containing such compensation and other terms and conditions as are customary for internationally recognized investment banking firms for similar transactions,
including, without limitation, appropriate indemnification provisions. 
 
Section 7. Termination of Engagement. The engagement of both Financial Advisors can be terminated by the Company at any time, with or without cause, upon written notice to both Financial Advisors. Either Financial
Advisor may, by written notice to the Company and the other Financial Advisor terminate its engagement hereunder at any time, with or without cause, upon 

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June 28, 2002 
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written advice to that effect to the other parties provided, however, that in the event of any termination under this Section 7:

 

	(a)	 	each of the Financial Advisors will be entitled to its full fee as outlined in (i) Section 4(b) hereof in the event that at any time prior to the expiration of 12
months after such termination by the Company, the Offering is consummated or (ii) Section 4(c) hereof in the event that on December 31, 2002, the Company’s senior unsecured indebtedness is then rated investment grade by at least two Rating
Agencies and 

 

	(b)	 	the provisions of this Section 7 and of Sections 3 (subject to the limitations described therein), 4, 5, 9 10, 11 and 12 hereof shall survive such termination.

 
However, if the Company terminates the Financial
Advisors for Cause (as defined below), no fee shall be due pursuant to Section 7 (a) above. In addition, if the Financial Advisors terminate the engagement without Cause, then no fee shall be due pursuant to Section 7(a) above. For purposes of this
agreement cause (“Cause”) shall mean a material breach of this Agreement by a party, which breach shall not have been cured within a reasonable period following written notice thereof by the other party. 
 
Section 8. Reliance on Others. The Company confirms that it will
not rely on the Financial Advisors for any legal, accounting, tax and other similar advice in connection with this engagement or the Offering. 
 
Section 9. Publicity. In the event of completion of the Mandate, the Financial Advisors shall have the right, at their own expense, to
disclose their activities in respect of the Mandate (including, their participation in the Offering), including, without limitation, the placement of “tombstone” advertisements in financial and other newspapers and journals in compliance
with applicable securities laws. The Financial Advisors agree that the Company shall have the right to announce publicly the execution of this Agreement with the Financial Advisors subject to the Financial Advisors’ prior approval of the
contents of such announcement. 
 
Section 10. Scope of
Responsibility. Neither Financial Advisor nor any of its affiliates (nor any of their respective control persons, directors, officers, employees or agents) shall be liable to the Company or to any other person claiming through the Company for
any claim, loss, damage, liability, cost or expense suffered by the Company or any such other person arising out of or related to such Financial Advisor’s engagement hereunder except for a claim, loss or expense that arises primarily out of or
is based primarily upon any action or failure to act by such Financial Advisor, other than an action or failure to act undertaken at the request or with the consent of the Company, that is found in a final judicial determination (or a settlement
tantamount thereto) to constitute bad faith, willful misconduct or gross negligence on the part of such Financial Advisor. 

Mr. José Castañeda 
June 28, 2002 
Page 7 
 
 
Section 11. Indemnity and Contribution. The Company agrees to indemnify and hold harmless each Financial Advisor and its respective
affiliates (and their respective control persons, directors, officers, employees and agents) to the full extent lawful against any and all claims, losses, damages, liabilities, costs and expenses as incurred (including all reasonable fees and
disbursements of counsel and all reasonable travel and other out-of-pocket expenses incurred in connection with investigation of, preparation for and defense of any pending or threatened claim and any litigation or other proceeding arising
therefrom, whether or not in connection with pending or threatened litigation in which the Financial Advisors or any other indemnified person are a party) arising out of or related the Financial Advisors’ engagement hereunder including, without
limitation, the use and content of the Memorandum; provided, however, there shall be excluded from such indemnification any such claims, losses, damages, liabilities, costs or expenses that arise primarily out of or are based primarily upon
any action or failure to act by such Financial Advisor, other than an action or failure to act undertaken at the request or with the consent of the Company, that is found in a final judicial determination (or a settlement tantamount thereto) to
constitute bad faith, willful misconduct or gross negligence on the part of such Financial Advisor. In the event that the foregoing indemnity is unavailable or insufficient to hold a Financial Advisor and other indemnified parties harmless, then the
Company shall contribute to amounts paid or payable by such Financial Advisor and other indemnified parties in respect of such claims, losses, damages, liabilities, costs and expenses in such proportion as appropriately reflects the relative
benefits received by and, if applicable law does not permit allocation solely on the basis of benefits, fault of, the Company and such Financial Advisor in connection with the matters as to which such claims, losses, damages, liabilities, costs and
expenses relate and other equitable considerations, subject to the limitation that in any event such Financial Advisor’s aggregate contributions in respect of such claims, losses, damages, liabilities, costs and expenses will not exceed the
amount of fees actually received by such Financial Advisor pursuant to this Agreement. 
 
The Company will not, without the prior written consent of the Financial Advisors, settle any litigation relating to the Financial Advisors’ engagement hereunder unless such settlement includes an express, complete and
unconditional release of the Financial Advisors and their affiliates (and their respective control persons, directors, officers, employees and agents) with respect to all claims asserted in such litigation or relating to the Financial Advisors’
engagement hereunder; such release to be set forth in an instrument signed by all parties to such settlement. 
 
Section 12. Taxes, Governing Law; Jurisdiction. All fees and other amounts payable pursuant to this Agreement shall be paid in United States dollars, free and clear of, and without
deduction or withholding on account of, taxes of any kind. If any taxes are so levied or imposed, the Company agrees to pay the full amount of such taxes, and such additional amounts as may be necessary so that every net payment of all amounts due
hereunder, after withholding or deduction for or on account of any taxes, will not be less than the amount provided for herein. The Company will furnish to the Financial Advisors within thirty days after the date the payment of any taxes is due
pursuant to applicable law, certified copies of tax receipts evidencing such payment by the 

Mr. José Castañeda 
June 28, 2002 
Page 8 
 

Company. The Company will indemnify and hold harmless the Financial Advisors against and reimburse the Financial Advisors upon demand the
amount of any taxes so levied or imposed and paid by the Financial Advisors. This letter of engagement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflicts of law principles
thereof. The Company and the Financial Advisors irrevocably agree to waive trial by jury in any action, proceeding, claim or counterclaim brought by or on behalf of either party related to or arising out of this letter of engagement or the
performance of services hereunder. The Company also hereby irrevocably submits to the exclusive jurisdiction of the courts of the State of New York in any proceeding arising out of or relating to this Agreement, and to the federal district courts
located in such State, agrees not to commence any suit, action or proceeding relating thereto except in such courts, and waives, to the fullest extent permitted by law, the right to move to dismiss or transfer any action brought in such court on the
basis of any objection to personal jurisdiction or venue. The Company hereby irrevocably consents to the service of process in any such proceeding by the mailing of copies of such process to it at its address set forth above. The obligation of the
Company in respect of any sum due from it hereunder to the Financial Advisors shall, notwithstanding any judgment in any other currency, be discharged only to the extent that on the business day following receipt by the Financial Advisors of any sum
judged to be so due in such other currency, the Financial Advisors may in accordance with normal banking procedure purchase US dollars with such other currency; if the US dollars so purchased are less than the sum originally due to the Financial
Advisors in US dollars, the Company agrees, as a separate obligation, and notwithstanding any such judgment, to indemnify the Financial Advisors against such loss. To the extent that the Company has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, the Company hereby irrevocably
waives such immunity in respect of its obligations under this Agreement. 
 
Section 13. Disclosure. The Company acknowledges that the Financial Advisors and their affiliates may have and may continue to have commercial and investment banking, financial advisory and other relationships with
parties other than the Company pursuant to which the Financial Advisors may acquire information of interest to the Company. The Financial Advisors shall have no obligation to disclose such information to the Company. 
 
The Financial Advisors and their affiliates are engaged in securities trading
and brokerage activities as well as commercial and investment banking and financial advisory services. In the ordinary course of such activities, the Financial Advisors and their affiliates may hold positions, for their own account or the account of
customers, in equity, debt or other securities or instruments of the Company or any other company or entity. The Financial Advisors agree that they will not use any information obtained from the Company in connection with this engagement in
violation of any applicable insider trading laws or regulations. 

Mr. José Castañeda 
June 28, 2002 
Page 9 
 
 
Section 14. Miscellaneous. Nothing in this Agreement is intended to obligate or commit the Financial Advisors or any of their affiliates to
provide any services other than as set out above. This Agreement may be executed in two or more counterparts, all of which together shall be considered a single instrument. This Agreement constitutes the entire agreement, and supersedes all prior
agreements and understandings (both written and oral) of the parties hereto with respect to the subject matter hereof, and cannot be amended or otherwise modified except in writing executed by the parties hereto. The provisions hereof shall inure to
the benefit of and be binding upon the successors and assigns of the Company and the Financial Advisors. The invalidity or unenforceability of any provision of this Agreement shall in no way offset the validity or enforceability of any other
provision. The terms and provisions of this Agreement are solely for the benefit of the Company and the Financial Advisors and the other indemnified parties and their respective successors, assigns, heirs and personal representatives, and no other
person shall acquire or have any right by virtue of this letter. 
 
If you are in agreement with the foregoing, please sign and return the attached copy of this Agreement, whereupon this Agreement shall become effective as of the date hereof. 
 

	 Sincerely,

	
	 BNP PARIBAS SECURITIES CORP.

	
	 By:
	 	 /s/    JEAN-MICHEL
DOUBLET        

	 	 	 Jean-Michel Doublet, Managing Director

	
	 By:
	 	 /s/    JEAN-MICHEL
DOUBLET        

	 	 	 Jean-Michel Doublet, Director

 

	 DEUTSCHE BANK SECURITIES INC.

	
	 By:
	 	 /s/    LOUIS
WOLFE        

	 	 	 Managing Director

Mr. José Castañeda 
June 28, 2002 
Page 10 
 
 
 

	
	 By:
	 	 /s/    Sarah Lee Martin         

	 	 	 Sarah Lee Martin, Managing Director

AGREED TO: 
 
BANCO LATINOAMERICANO DE EXPORTACIONES, S. A. 
 

	
	 By:
	 	 /s/    José Castañeda         

	 	 	 José Castañeda, CEO

907842000 Broad-based Stock Incentive Plan, as amended

EXHIBIT 10(n) 
 
R.R. DONNELLEY & SONS COMPANY 
 
2000 BROAD-BASED STOCK INCENTIVE PLAN 
(as adopted by the Board of Directors on January 27, 2000 
and amended May 2, 2002) 
 
I. GENERAL 
 
1.
Plan. To provide incentives to certain key employees through rewards based upon the ownership or performance of the common stock of R.R. Donnelley & Sons Company (the “Company”), the Committee hereinafter designated, may grant
cash or bonus awards, stock options, stock appreciation rights (“SARs”), or combinations thereof, to eligible participants, on the terms and subject to the conditions stated in the Plan. For purposes of the Plan, references to employment
by the Company also means employment by a majority-owned subsidiary of the Company and employment by any other entity designated by the Board of Directors of the Company (the “Board”) or the Committee in which the Company has a direct or
indirect equity interest. 
 
2. Eligibility.
“Exempt employees” as defined under the Fair Labor Standards Act of 1938 and selected other employees of the Company, its subsidiaries, and any other entity designated by the Board or the Committee in which the Company has a direct or
indirect equity interest, shall be eligible, upon selection by the Committee, to receive cash or bonus awards, stock options or SARs, either singly or in combination, as the Committee, in its discretion, shall determine (“participants”).

 
3. Limitation on Shares to be Issued.
Subject to adjustment as provided in Section 5 of this Article I, 5,000,000 shares of common stock, par value $1.25 per share (“common stock”), shall be available under the Plan, reduced by the aggregate number of shares of common stock
which become subject to outstanding bonus awards, stock options and SARs which are not granted in tandem with or by reference to a stock option (“free-standing SARs”). Shares subject to a grant or award under the Plan which for any reason
are not issued or delivered, including by reason of the expiration, termination, cancellation or forfeiture of all or a portion of the grant or award or by reason of the delivery or withholding of shares to pay all or a portion of the exercise price
or to satisfy tax withholding obligations, shall again be available for future grants and awards; provided, however, that for purposes of this sentence, stock options and SARs granted in tandem with or by reference to a stock option granted
prior to the grant of such SARs (“tandem SARs”) shall be treated as one grant. In the event the Company repurchases 
 

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shares in the open market or otherwise, a number of shares having a repurchase price equal to the
aggregate proceeds received by the Company from the exercise of stock options granted by the Company under the Plan shall again be available for future grants and awards. 
 
Shares of common stock to be issued shall be treasury stock of the Company. 
 
4. Administration of the Plan. The Plan shall be
administered by a Committee designated by the Board of Directors (the “Committee”). Each member of the Committee may be (i) an “outside director” within the meaning of Section 162(m) of the Code and (ii) a “Non-Employee
Director” within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Committee shall, subject to the terms of the Plan, select eligible participants for grants and awards;
determine the form of each grant and award, either as cash, a bonus award, stock options or SARs or a combination thereof; and determine the number of shares or units subject to the grant or award, the fair market value of the common stock or units
when necessary, the time and conditions of vesting, exercise or settlement, whether dividends or dividend equivalents accrue under any award, and all other terms and conditions of each grant and award, including, without limitation, the form of
instrument evidencing the grant or award. The Committee may establish rules and regulations for the administration of the Plan, interpret the Plan, and impose, incidental to a grant or award, conditions with respect to competitive employment or
other activities not inconsistent with the Plan. All such rules, regulations, interpretations and conditions shall be conclusive and binding on all parties. Each grant and award shall be evidenced by a written instrument and no grant or award shall
be valid until an agreement is executed by the Company and such grant or award shall be effective as of the effective date set forth in the agreement. 
 
The Committee may delegate some or all of its power and authority hereunder to the Chief Executive Officer or other executive officer of
the Company as the Committee deems appropriate; provided, however, that the Committee may not delegate its power and authority with regard to (i) the selection for participation in the Plan of (A) a participant who is a “covered
employee” within the meaning of Section 162(m) of the Code or who, in the Committee’s judgment, is likely to be a covered employee at any time during the period a grant or award hereunder to such participant would be outstanding or (B) an
officer or other person subject to Section 16 of the Exchange Act or (ii) decisions concerning the timing, pricing or amount of a grant or award to such a participant, officer or other person. A majority of the Committee shall constitute a quorum.
The acts of the Committee shall be either (i) acts of a majority of the members of the Committee present at any meeting at which a quorum is present or (ii) acts approved in writing by all of the members of the Committee without a meeting.

 
5. Adjustments. In the event of any stock
split, stock dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or any distribution to holders of common stock other than a
regular cash dividend, the number and class of securities available under the Plan, the number and class of securities subject to each outstanding bonus award, the number and class of securities subject to each outstanding stock option 
 

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and the purchase price per security and the terms of each outstanding SAR shall be appropriately adjusted
by the Committee, such adjustments to be made in the case of outstanding stock options and SARs without an increase in the aggregate purchase price or base price. If any such adjustment would result in a fractional security being (i) available under
the Plan, such fractional security shall be disregarded, or (ii) subject to an outstanding grant or award under the Plan, the Company shall pay the holder thereof, in connection with the first vesting, exercise or settlement of such grant or award,
in whole or in part, occurring after such adjustment, an amount in cash determined by multiplying (i) the fraction of such security (rounded to the nearest hundredth) by (ii) the excess, if any, of (A) the fair market value on the vesting, exercise
or settlement date over (B) the exercise or base price, if any, of such grant or award; provided, however, that if the fair market value of such fractional security immediately after such adjustment is less than the fair market value of one
share of common stock immediately prior to the adjustment, such fractional security shall be disregarded and no payment shall be made. 
 
6. Effective Date and Term of Plan. The Plan shall become effective on March 23, 2000. The Plan shall terminate on the date on
which shares are no longer available for grants or awards under the Plan, unless terminated prior thereto by action of the Board. No further grants or awards shall be made under the Plan after termination, but termination shall not affect the rights
of any participant under any grants or awards made prior to termination. 
 
7. Amendments. The Plan may be amended or terminated by the Board in any respect. No amendment may impair the rights of a holder of an outstanding grant or award without the consent of such holder. 
 
II. BONUS AWARDS 
 
1. Form of Award. Bonus awards, whether performance
awards or fixed awards, may be made to eligible participants in the form of (i) cash, whether in an absolute amount or as a percentage of compensation, (ii) stock units, each of which is substantially the equivalent of a share of common stock but
for the power to vote and, subject to the Committee’s discretion, the entitlement to an amount equal to dividends or other distributions otherwise payable on a like number of shares of common stock, (iii) shares of common stock issued to the
participant but forfeitable and with restrictions on transfer in any form as hereinafter provided or (iv) any combination of the foregoing. 
 
2. Performance Awards. (a) Awards may be made in terms of a stated potential maximum dollar amount, percentage of compensation or
number of units or shares, with such actual amount, percentage or number to be determined by reference to the level of achievement of corporate, sector, business unit, division, individual or other specific performance goals over a performance
period of not less than one nor more than ten years, as determined by the Committee. 
 
(b) In no event shall any participant receive a payment with respect to any performance award if the minimum threshold performance goals requirement applicable to the payment is not achieved during the
performance period. 
 

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(c) The
Committee retains sole discretion to reduce the amount of or eliminate any payment otherwise payable to a participant with respect to any performance award. The Committee may exercise such discretion by establishing conditions for payments with
respect to performance awards in addition to the performance goals, including the achievement of financial, strategic or individual goals, which may be objective or subjective, as it deems appropriate. 
 
(e) For purposes of the Plan, “performance goals”
means the objectives established by the Committee which shall be satisfied or met during the applicable performance period as a condition to a participant’s receipt of all or a part of a performance-based award under the Plan. The performance
goals may, without limitation, be tied to one or more of the following business criteria, determined with respect to the Company or the applicable sector, business unit or division: net sales, cost of sales, gross profit, earnings from operations,
earnings before interest, taxes, depreciation and amortization (“EBITDA”), earnings before income taxes, earnings before interest and taxes, cash flow measures, return on equity, return on assets, return on net assets employed, net income
per common share (basic or diluted), EVA (Economic Value Added, which represents the cash operating earnings of the Company after deducting a charge for capital employed) or any other similar criteria established by the Committee for the applicable
performance period. 
 
3. Fixed Awards.
Awards may be made which are not contingent on the achievement of specific objectives, but are contingent on the participant’s continuing in the Company’s employ for a period specified in the award. 
 
4. Rights with Respect to Restricted Shares. If shares
of restricted common stock are subject to an award, the participant shall have the right, unless and until such award is forfeited or unless otherwise determined by the Committee at the time of grant, to vote the shares and to receive dividends
thereon from the date of grant and the right to participate in any capital adjustment applicable to all holders of common stock; provided, however, that a distribution with respect to shares of common stock, other than a regular quarterly
cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the shares of common stock with respect to which such distribution was made. 
 
During the restriction period, a certificate or certificates representing restricted shares shall be
registered in the holder’s name or the name of a nominee of the Company and may bear a legend, in addition to any legend which may be required under applicable laws, rules or regulations, indicating that the ownership of the shares of common
stock represented by such certificate is subject to the restrictions, terms and conditions of the Plan and the agreement relating to the restricted shares. All such certificates shall be deposited with the Company, together with stock powers or
other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate, which would permit transfer to the Company of all or a portion of the shares of common stock
subject to the award in the event such award is forfeited in whole or in part. Upon termination of any applicable restriction period, including, if applicable, the satisfaction or achievement of applicable 
 

4 

objectives, and subject to the Company’s right to require payment of any taxes, the requisite number
of shares of common stock shall be delivered to the holder of such award. 
 
5. Rights with Respect to Stock Units. If stock units are credited to a participant pursuant to an award, then, subject to the Committee’s discretion, amounts equal to dividends and other distributions otherwise
payable on a like number of shares of common stock after the crediting of the units (unless the record date for such dividends or other distributions precedes the date of grant of such award) shall be credited to an account for the participant and
held until the award is forfeited or paid out and interest shall be credited on the account at a rate determined by the Committee. 
 
6. Vesting and Resultant Events. The Committee may, in its discretion, provide for early vesting of an award in the event of the
participant’s death, permanent and total disability or retirement. At the time of vesting, (i) the award (and any dividend equivalents, other distributions and interest which have been credited), if in units, shall be paid to the participant
either in shares of common stock equal to the number of units, in cash equal to the fair market value of such shares, or in such combination thereof as the Committee shall determine, (ii) the award, if a cash bonus award, shall be paid to the
participant either in cash, or in shares of common stock with a then fair market value equal to the amount of such award, or in such combination thereof as the Committee shall determine and (iii) shares of restricted common stock issued pursuant to
an award shall be released from the restrictions. 
 
III. STOCK OPTIONS 
 
1.
Grants for Eligible Participants. Options to purchase shares of common stock of the Company may be granted to such eligible participants as may be selected by the Committee. 
 
2. Number of Shares and Purchase Price. The number of shares of common stock subject to an option and
the purchase price per share of common stock purchasable upon exercise of the option shall be determined by the Committee; provided, however, that the purchase price per share of common stock shall not be less than 100% of the fair market
value of a share of common stock on the date of grant of the option. 
 
3. Exercise of Options. The period during which options granted hereunder may be exercised shall be determined by the Committee; provided, however, that no stock option shall be exercised later than ten years
after its date of grant. The Committee may, in its discretion, establish performance measures which shall be satisfied or met as a condition to the grant of an option or to the exercisability of all or a portion of an option. The Committee shall
determine whether an option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable option, or portion thereof, may be exercised only with respect to whole shares of common stock.

 
An option may be exercised (i) by giving written
notice to the Company specifying the number of whole shares of common stock to be purchased and 
 

5 

accompanied by payment therefor in full (or arrangement made for such payment to the Company’s
satisfaction) either (A) in cash, (B) in previously owned whole shares of common stock (which the optionee has held for at least six months prior to delivery of such shares or which the optionee purchased on the open market and for which the
optionee has good title free and clear of all liens and encumbrances) having a fair market value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise, (C) in cash by a broker-dealer
acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise or (D) a combination of (A) and (B), (ii) if applicable, by surrendering to the Company any SARs which are canceled by reason of the exercise of the
option and (iii) by executing such documents as the Company may reasonably request. The Committee shall have sole discretion to disapprove of an election pursuant to any of clauses (B)-(D). Any fraction of a share of common stock which would be
required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by the optionee. No shares of common stock shall be delivered until the full purchase price therefor has been paid. 
 
4. Termination of Employment or Service. Subject to the
requirements of the Code, all of the terms relating to the exercise, cancellation or other disposition of an option upon a termination of employment with the Company or service on the Board, as the case may be, of the holder of such option, whether
by reason of disability, retirement, death or any other reason, shall be determined by the Committee; provided, however, that the expiration date of an option may never be extended beyond the original expiration date of such option.

 
IV. STOCK APPRECIATION RIGHTS

 
1. Grants. Free-standing SARs
entitling the grantee to receive cash or shares of common stock having a fair market value equal to the appreciation in market value of a stated number of shares of common stock from the date of grant to the date of exercise of such SARs, or in the
case of tandem SARs, from the date of grant of the related stock option to the date of exercise of such tandem SARs, may be granted to such participants as may be selected by the Committee. The holder of a tandem SAR may elect to exercise either the
option or the SAR, but not both. Tandem SARs shall be automatically canceled upon exercise of the related stock option. 
 
2. Number of SARs and Base Price. The number of SARs subject to a grant shall be determined by the Committee. The base price of a
tandem SAR shall be the purchase price per share of common stock of the related option. The base price of a free-standing SAR shall be determined by the Committee; provided, however, that such base price shall not be less than 100% of the
fair market value of a share of common stock on the date of grant of such SAR. 
 
3. Exercise of SARs. The agreement relating to a grant of SARs may specify whether such grant shall be settled in shares of common stock (including restricted shares of common stock) or cash or
a combination thereof. Upon exercise of an SAR, the grantee 
 

6 

shall be paid the excess of the then fair market value of the number of shares of common stock to which
the SAR relates over the base price of the SAR. Such excess shall be paid in cash or in shares of common stock having a fair market value equal to such excess or in such combination thereof as the Committee shall determine. The period during which
SARs granted hereunder may be exercised shall be determined by the Committee; provided, however, no SAR shall be exercised later than ten years after the date of its grant; and provided, further, that no tandem SAR shall be exercised
if the related option has expired or has been canceled or forfeited or has otherwise terminated. The Committee may, in its discretion, establish performance measures which shall be satisfied or met as a condition to the grant of an SAR or to the
exercisability of all or a portion of an SAR. The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and in part or in full at any time. An exercisable SAR, or portion thereof, may be exercised, in
the case of a tandem SAR, only with respect to whole shares of common stock and, in the case of a free-standing SAR, only with respect to a whole number of SARs. If an SAR is exercised for restricted shares of common stock, the restricted shares
shall be issued in accordance with Section 4 of Article II and the holder of such restricted shares shall have such rights of a stockholder of the Company as determined pursuant to such Section. Prior to the exercise of an SAR for shares of common
stock, including restricted shares, the holder of such SAR shall have no rights as a stockholder of the Company with respect to the shares of common stock subject to such SAR. 
 
A tandem SAR may be exercised (i) by giving written notice to the Company specifying the number of whole SARs
which are being exercised, (ii) by surrendering to the Company any options which are canceled by reason of the exercise of such SAR and (iii) by executing such documents as the Company may reasonably request. A free-standing SAR may be exercised (i)
by giving written notice to the Company specifying the whole number of SARs which are being exercised and (ii) by executing such documents as the Company may reasonably request. 
 
4. Termination of Employment. Subject to the requirements of the Code, all of the terms relating to
the exercise, cancellation or other disposition of an SAR upon a termination of employment with the Company of the holder of such SAR, whether by reason of disability, retirement, death or any other reason, shall be determined by the Committee;
provided, however, that the expiration date of an SAR may never be extended beyond the original expiration date of such SAR. 
 
V. OTHER 
 
1. Non-Transferability of Options and Stock Appreciation Rights. No option or SAR shall be transferable other than (i) by will, the
laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or (ii) as otherwise set forth in the agreement relating to such option or SAR. Each option or SAR may be exercised during the
participant’s lifetime only by the participant or the participant’s guardian, legal representative or similar person or the permitted transferee of the participant. Except as permitted by the second preceding sentence, no option or SAR

 

7 

may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by
operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any option or SAR, such award and all rights thereunder
shall immediately become null and void. 
 
2.
Tax Withholding. The Company shall have the right to require, prior to the issuance or delivery of any shares of common stock or the payment of any cash pursuant to a grant or award hereunder, payment by the holder thereof of any Federal,
state, local or other taxes which may be required to be withheld or paid in connection therewith. An agreement may provide that (i) the Company shall withhold whole shares of common stock which would otherwise be delivered to a holder, having an
aggregate fair market value determined as of the date the obligation to withhold or pay taxes arises in connection therewith (the “Tax Date”), or withhold an amount of cash which would otherwise be payable to a holder, in the amount
necessary to satisfy any such obligation or (ii) the holder may satisfy any such obligation by any of the following means: (A) a cash payment to the Company, (B) delivery to the Company of previously owned whole shares of common stock (which the
holder has held for at least six months prior to the delivery of such shares or which the holder purchased on the open market and for which the holder has good title, free and clear of all liens and encumbrances) having an aggregate fair market
value determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole shares of common stock which would otherwise be delivered having an aggregate fair market value
determined as of the Tax Date or withhold an amount of cash which would otherwise be payable to a holder, equal to the amount necessary to satisfy any such liability, (D) in the case of the exercise of an option, a cash payment by a broker-dealer
acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B) and (C); provided, however, that the Committee shall have sole discretion to disapprove of an election pursuant
to any of clauses (B)-(E). An agreement relating to a grant or award hereunder may not provide for shares of common stock to be withheld having an aggregate fair market value in excess of the minimum amount of taxes required to be withheld. Any
fraction of a share of common stock which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the holder. 
 
3. Acceleration Upon Change in Control. If while (i) any performance award or fixed award granted
under Article II is outstanding or (ii) any stock option granted under Article III of the Plan or SAR granted under Article IV of the Plan is outstanding — 
 
(a) any “person,” as such term is defined in Section 3(a)(9) of the Exchange Act,
as modified and used in Section 13(d) and 14(d) thereof (but not including (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries,
(iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock
of the Company) (hereinafter a “Person”) 
 

8 

is or becomes the beneficial owner, as defined in Rule 13d-3 of the Exchange Act, directly
or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates, excluding an acquisition resulting from the exercise of a conversion
or exchange privilege in respect of outstanding convertible or exchangeable securities) representing 50% or more of the combined voting power of the Company’s then outstanding securities; or 
 
(b) during any period of two (2) consecutive
years beginning January 1, 2000, individuals who at the beginning of such period constitute the Board and any new director (other than a director designated by a Person who has entered into any agreement with the Company to effect a transaction
described in Clause (a), (c) or (d) of this Section) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 
 
(c) the stockholders of the Company approve a merger or consolidation of the Company with any
other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving or acquiring entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, at least 50% of the combined voting power of the voting
securities of the Company or such surviving or acquiring entity outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which
no Person acquires more than 50% of the combined voting power of the Company’s then outstanding securities; or 
 
(d) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the Company’s assets, 
 
(any of such events being hereinafter referred to as a “Change in Control”), then from and after the date on which public announcement of the acquisition of such percentage shall have been made, or the date on
which the change in the composition of the Board set forth above shall have occurred, or the date of any such stockholder approval of a merger, consolidation, plan of complete liquidation or an agreement for the sale of the Company’s assets as
described above occurs (the applicable date being hereinafter referred to as the “Acceleration Date”), (i) with respect to such performance awards, the highest level of achievement specified in the award shall be deemed met and the award
shall be immediately and fully vested, (ii) with respect to such fixed awards, the period of continued employment specified in the award upon which the award is contingent shall be deemed completed and the award shall be immediately and fully vested
and (iii) with 
 

9 

 
respect to such options and
SARs, all such options and SARs, whether or not then exercisable in whole or in part, shall be fully and immediately exercisable. 
 
4. Restrictions on Shares. Each grant and award made hereunder shall be subject to the requirement that if at any time the Company
determines that the listing, registration or qualification of the shares of common stock subject thereto upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is
necessary or desirable as a condition of, or in connection with, the delivery of shares thereunder, such shares shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or
obtained, free of any conditions not acceptable to the Company. The Company may require that certificates evidencing shares of common stock delivered pursuant to any grant or award made hereunder bear a legend indicating that the sale, transfer or
other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder. 
 
5. No Right of Participation or Employment. No person shall have any right to participate in the Plan.
Neither the Plan nor any grant or award made hereunder shall confer upon any person any right to continued employment by the Company, any subsidiary or any affiliate of the Company or affect in any manner the right of the Company, any subsidiary or
any affiliate of the Company to terminate the employment of any person at any time without liability hereunder. 
 
6. Rights as Stockholder. No person shall have any right as a stockholder of the Company with respect to any shares of common stock
or other equity security of the Company which is subject to a grant or award hereunder unless and until such person becomes a stockholder of record with respect to such shares of common stock or equity security. 
 
7. Governing Law. The Plan, each grant and award
hereunder and the related agreement, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware and
construed in accordance therewith without giving effect to principles of conflicts of laws. 
 
8. Foreign Participants. Notwithstanding any provision of the Plan to the contrary the Committee may, with a view to both promoting achievement of the purposes of the plan and complying with
provisions of laws in countries outside the United States in which the Company or its subsidiaries operate or have employees, determine which persons outside the United States shall be eligible to participate in the Plan on such terms and conditions
different from those specified in the Plan as may in the judgement of the Committee be necessary or advisable and, to that end, the Committee may establish sub-plans, modified option exercise procedures and other terms and procedures. 
 

10

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