Document:

EXHIBIT

10.49

 

NOTICE OF ASSIGNMENT AND

ACCEPTANCE

 

August 20, 2002

Bank of America, N.A., as

Administrative Agent

335 Madison Avenue

New York, New York

Attn: James Foley

 

Manufacturers’ Services

Limited

300 Baker Avenue

Concord, Massachusetts

01742-2121

Attn: Sean Lannan

 

 

Re:  Manufacturers’ Services Limited

 

Ladies and Gentlemen:

 

We refer to the Credit

Agreement, dated as of June 20, 2002 (as extended, renewed, amended or restated

from time to time, the “Credit Agreement”), made by and among

Manufacturers’ Services Limited, a Delaware corporation (the “Parent”),

Manufacturers’ Services Salt Lake City Operations, Inc., a Delaware corporation

(“MSSLCO”), Manufacturers’ Services Western U.S. Operations, Inc.,  a California corporation (“MSWUSO”),

Manufacturers’ Services Central U.S. Operations, Inc., a Minnesota corporation

(“MSCUSO”), MSL Lowell Operations, Inc., a Delaware corporation (“MSLLO”),

and MSL Midwest Operations, Inc., a Delaware corporation (“MSLMO”; and

together with the Parent, MSSLCO, MSWUSO, MSCUSO and MSLLO, each a “Borrower”

and collectively, the “Borrowers”), the guarantors named therein, the

Lenders, Bank of America, N.A., as administrative agent, Credit Suisse First

Boston, Cayman Islands Branch, as syndication agent, General Electric Capital

Corporation, as documentation agent, and Banc of America Securities LLC and

Credit Suisse First Boston, Cayman Islands Branch, as co-book managers and

co-lead arrangers.  Terms defined in the

Credit Agreement and defined herein are used herein as therein defined.

 

1.             We hereby give you notice of, and request the consent of

the Administrative Agent and the Parent to, the assignment pursuant to the

Assignment and Acceptance attached hereto (the “Assignment and Acceptance”)

by Bank of America, N.A. (the “Assignor”) to Orix Financial Services,

Inc. (the “Assignee”) of 27.273% of the right, title and interest of the

Assignor in and to the Credit Agreement (including the right, title and

interest of the Assignor in and to the Revolving Credit Commitment of the

Assignor and each of the

 

 

outstanding

Revolving Loans and L/C Obligations (as defined in the Assignment and

Acceptance) of the Assignor).

 

2.             The Assignee agrees that, upon receiving the consent of

the Administrative Agent and, if applicable, the Parent to such assignment, the

Assignee will be bound by the terms of the Credit Agreement as fully and to the

same extent as if the Assignee were the Revolving  Lender originally holding such interest in the Credit Agreement.

 

3.             The following administrative details apply to the

Assignee:

 

	

  (A)

  	

  Notice Address:

  	

   

  
	

   

  	

   

  	

  846 E. Algonquin Road,

  Suite 101

  
	

   

  	

   

  	

  Schaumburg, IL

  30173-3854

  
	

   

  	

   

  
	

   

  	

  Assignee name: Orix

  Financial Services, Inc.

  
	

   

  	

   

  
	

   

  	

  Address:

  	

  846 E. Algonquin Road,

  Suite 101

  
	

   

  	

   

  	

  Schaumburg, IL

  30173-3854

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Attention: Maria Melvin

  
	

   

  	

  Telephone:  (770) 970-8016

  
	

   

  	

  Telecopier:  (770) 970-8066

  
	

   

  	

  Telex (Answerback):

  
	

   

  	

   

  
	

  (B)

  	

  Payment Instructions:

  
	

   

  	

   

  	

   

  
	

   

  	

  Account No.:

  	

  050-2481

  
	

   

  	

  ABA:

  	

  043000261

  
	

   

  	

  At:

  	

  Mellon Bank, N.A.

  
	

   

  	

   

  	

  Pittsburgh, PA

  
	

   

  	

  Reference:

  	

  Manufacturers’ Services

  Limited

  
					

 

4.             You are entitled to rely upon the representations,

warranties and covenants of each of the Assignor and Assignee contained in the

Assignment and Acceptance.

 

5.             By its signature below, the Administrative Agent waives

the processing fee referred to in Section 11.2(a) of the Credit Agreement.

 

2

 

IN WITNESS WHEREOF, the

Assignor and the Assignee have caused this Notice of Assignment and Acceptance

to be executed by their respective duly authorized officials, officers or

agents as of the date first above mentioned.

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  
	

   

  	

  BANK OF AMERICA, N.A.

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ James Foley

  
	

   

  	

   

  	

  Name: James Foley

  
	

   

  	

   

  	

  Title: Account Officer

  
	

   

  	

   

  
	

   

  	

  ORIX FINANCIAL SERVICES, INC.

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Michael J. Cox

  
	

   

  	

   

  	

  Name: MICHAEL J. COX

  
	

   

  	

   

  	

  Title:    SVP

  

 

 

	

  ACKNOWLEDGED AND

  ASSIGNMENT

  CONSENTED TO:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Bank of America, N.A.,

  as Administrative Agent

  	

   

  
	

   

  	

   

  
	

  By:

  	

  /s/ James Foley

  	

   

  
	

   

  	

  Name: James Foley

  	

   

  
	

   

  	

  Title: Account Officer

  	

   

  
	

   

  	

   

  	

   

  
	

  Manufacturers’ Services

  Limited

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Sean Lannan

  	

   

  
	

   

  	

  Name: Sean Lannan

  	

   

  
	

   

  	

  Title: VP, Treasurer

  	

   

  

 

3Exhibit 10.1

 

1996 STOCK INCENTIVE PLAN, AS AMENDED

Table of Contents

 

	

   

  	

   

  
	

  1. 

  	

  Purpose 

  
	

   

  	

   

  
	

  2 

  	

  Definitions

  

  
	

   

  	

   

  
	

  3.

  

  	

  Shares and Performance Units Available

  under the Plan 

  
	

   

  	

   

  
	

  4. 

  	

  Option Rights 

  
	

   

  	

   

  
	

  5. 

  	

  Appreciation

  Rights 

  
	

   

  	

   

  
	

  6. 

  	

  Restricted Shares 

  
	

   

  	

   

  
	

  7. 

  	

  Deferred Shares 

  
	

   

  	

   

  
	

  8. 

  	

  Performance

  Shares and Performance Units. 

  
	

   

  	

   

  
	

  9. 

  	

  Transferability 

  
	

   

  	

   

  
	

  10. 

  	

  Adjustments 

  
	

   

  	

   

  
	

  11. 

  	

  Fractional Shares 

  
	

   

  	

   

  
	

  12. 

  	

  Withholding Taxes 

  
	

   

  	

   

  
	

  13. 

  	

  Participation by Directors,

  Officers and Other Key Employees of or Consultants to a Less-Than-80-Percent

  Subsidiary 

  
	

   

  	

   

  
	

  14. 

  	

  Certain Terminations

  of Employment, Hardship and Approved Leaves of Absence 

  
	

   

  	

   

  
	

  15. 

  	

  Foreign

  Participants 

  
	

   

  	

   

  
	

  16. 

  	

  Administration of the Plan 

  
	

   

  	

   

  
	

  17. 

  	

  Amendments and Other

  Matters 

  

 

 

1996

STOCK INCENTIVE PLAN, AS AMENDED

 

1.             Purpose.   The purpose of this Plan is

to attract and retain directors, officers and other key employees of and

consultants to ebix.com, Inc. (the “Corporation”) and its Subsidiaries and

to provide such persons with incentives and rewards for superior performance.

 

2.             Definitions.    (a) As used in

this Plan:

 

“Appreciation

Right”    means a right granted pursuant to Section 5 of this

Plan, including a Free-Standing Appreciation Right and a Tandem Appreciation

Right.

 

“Base

Price”    means the price to be used as the basis for

determining the Spread upon the exercise of a Free-Standing Appreciation Right.

 

“Board”    means

the Board of Directors of the Corporation.

 

“Code”    means

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

 

“Committee”

   means a committee of not less than two “Non-Employee

Directors” (as defined in Rule 16b-3(b)(3)(i) under Section

16(b) of the Exchange Act) appointed by and serving at the pleasure of the

Board.

 

“Common

Shares”    means (i) shares of the

Common Stock, par value $.10 per share, of the Corporation and (ii) any

security into which Common Shares may be converted by reason of any transaction

or event of the type referred to in Section 10 of this Plan.

 

“Date of

Grant”    means the date specified by the Board on which a

grant of Option Rights, Appreciation Rights or Performance Shares or

Performance Units or a grant or sale of Restricted Shares or Deferred Shares

shall become effective, which shall not be earlier than the date on which the

Board takes action with respect thereto.

 

“Deferral

Period”    means the period of time during

which Deferred Shares are subject to deferral limitations under Section 7 of

this Plan.

 

“Deferred

Shares”    means an award pursuant to Section

7 of this Plan of the right to receive Common Shares at the end of a specified

Deferral Period.

 

“Exchange

Act”    means the Securities Exchange Act of 1934, as amended

from time to time.

 

“Free-Standing

Appreciation Right”    means an Appreciation Right

granted pursuant to Section 5 of this Plan that is not granted in tandem with

an Option Right or similar right.

 

“Incentive

Stock Option”    means an Option Right that is

intended to qualify as an “incentive stock option” under Section 422 of the

Code or any successor provision thereto.

 

“Less-Than-80-Percent

Subsidiary”    means a Subsidiary with respect to

which the Corporation directly or indirectly owns or controls less than 80

percent of the total combined voting or other decision-making power.

 

“Management

Objectives”    means the achievement or

performance objectives established pursuant to this Plan for Participants who

have received grants of Performance Shares or Performance Units or, when so

determined by the Board, Restricted Shares.

 

 

“Market

Value per Share”    means the fair market value of the

Common Shares as determined by the Board from time to time.

 

“Nonqualified

Option”    means an Option Right that is not

intended to qualify as a Tax-Qualified Option.

 

“Optionee”

   means the person so designated in an agreement

evidencing an outstanding Option Right.

 

“Option

Price”    means the purchase price payable upon the exercise of

an Option Right.

 

“Option

Right”    means the right to purchase Common Shares from the

Corporation upon the exercise of a Nonqualified Option or a Tax-Qualified

Option granted pursuant to Section 4, or a Replacement Option Right granted

pursuant to Section 17(c), of this Plan.

 

“Participant”

   means a person who is selected by the Board to

receive benefits under this Plan and (i) is at that time a director or an

officer (including officers who are also directors) or other key employee of or

a consultant to the Corporation or any Subsidiary or (ii) has agreed to

commence serving in any such capacity.

 

“Performance

Period”    means, in respect of a Performance

Share or Performance Unit, a period of time established pursuant to Section 8

of this Plan within which the Management Objectives relating thereto are to be

achieved.

 

“Performance

Share”    means a bookkeeping entry that records the equivalent

of one Common Share awarded pursuant to Section 8 of this Plan.

 

“Performance

Unit”    means a bookkeeping entry that records a unit

equivalent to $1.00 awarded pursuant to Section of this Plan.

 

“Replacement

Option Right”    means as Option Right granted

pursuant to Section 17(c) of this Plan in exchange for the surrender and

cancellation of an option to purchase shares of another corporation that is

acquired by the Corporation or a Subsidiary by merger or otherwise.

 

“Restricted

Shares”    means Common Shares granted or

sold pursuant to Section 6 of this Plan as to which neither the substantial

risk of forfeiture nor the restrictions on transfer referred to in Section 6

hereof has expired.

 

“Spread”    means,

in the case of a Free-Standing Appreciation Right, the amount by which the

Market Value per Share on the date when the Appreciation Right is exercised

exceeds the Base Price specified therein or, in the case of a Tandem

Appreciation Right, the amount by which the Market Value per Share on the date

when the Appreciation Right is exercised exceeds the Option Price specified in

the related Option Right.

 

“Subsidiary”

   means a corporation, partnership, joint venture,

unincorporated association or other entity in which the Corporation has a

direct or indirect ownership or other equity interest; provided, however, for

purposes of determining whether any person may be a Participant for purposes of

any grant of Incentive Stock Options, “Subsidiary” means any corporation in

which the Corporation owns or controls directly or indirectly more than 50

percent of the total combined voting power represented by all classes of stock

issued by such corporation at the time of the grant.

 

2

 

“Tandem

Appreciation Right”    means an Appreciation Right

granted pursuant to Section 5 of this Plan that is granted in tandem with an

Option Right or any similar right granted under any other plan of the

Corporation.

 

“Tax-Qualified

Option”    means an Option Right that is

intended to qualify under particular provisions of the Code, including but not

limited to an Incentive Stock Option.

 

3.             Shares and Performance Units Available under the

Plan.     (a) Subject to

adjustment as provided in Section 10 of this Plan, the aggregate number of

Common Shares covered by outstanding awards, except Replacement Option Rights,

granted under this Plan and issued or transferred upon the exercise or payment

thereof, and the aggregate number of Performance Units granted under this Plan,

shall not exceed 6,700,000. Common Shares issued or transferred under this Plan

may be Common Shares of original issuance or Common Shares held in treasury or

a combination thereof.

 

(b)           Subject to

adjustment as provided in Section 10 of this Plan, the aggregate number of

Common Shares covered by Replacement Option Rights granted under this Plan

during any calendar year shall not exceed five percent of the Common Shares

outstanding on January 1 of that year.

 

(c)           For the purposes of

this Section 3:

 

(i)            Upon payment in cash of the benefit

provided by any award granted under this Plan, any Common Shares that were

covered by that award shall again be available for issuance or transfer

hereunder.

 

(ii)           Common Shares covered by any award

granted under this Plan shall be deemed to have been issued or transferred, and

shall cease to be available for future issuance or transfer in respect of any

other award granted hereunder, at the earlier of the time when they are

actually issued or transferred or the time when dividends or dividend

equivalents are paid thereon; provided, however, that Restricted Shares

shall be deemed to have been issued or transferred at the earlier of the time

when they cease to be subject to a substantial risk of forfeiture or the time

when dividends are paid thereon.

 

(iii)          Performance Units that are granted

under this Plan, but are not earned by the Participant at the end of the

Performance Period, shall be available for future grants of Performance Units

hereunder.

 

(d)           Subject to

adjustment as provided in Section 10 of this Plan, the maximum number of

shares of Common Stock that may be covered by Option Rights, Appreciation

Rights, Restricted Shares, Deferred Shares and Performance Shares, in the

aggregate, granted to any one Participant during any calendar year shall be

1,000,000 shares.

 

4.             Option Rights.  The

Board may from time to time authorize grants to Participants of Option Rights

upon such terms and conditions as the Board may determine in accordance with

the following provisions:

 

(a)           Each grant shall

specify the number of Common Shares to which it pertains.

 

(b)           Each grant shall

specify an Option Price per Common Share, which shall be equal to or greater

than the Market Value per Share on the Date of Grant; provided, however, that

 

3

 

the Option Price per Common Share of a

Replacement Option Right may be less that the Market Value per Share on the

Date of Grant.

 

(c)           Each grant shall

specify the form of consideration to be paid in satisfaction of the Option

Price and the manner of payment of such consideration, which may include

(i) cash in the form of currency or check or other cash equivalent

acceptable to the Corporation, (ii) nonforfeitable, unrestricted Common

Shares that are already owned by the optionee and have a value at the time of

exercise that is equal to the Option Price, (iii) any other legal

consideration that the Board may deem appropriate, including but not limited to

any form of consideration authorized under Section (d) below, on such

basis as the Board may determine in accordance with this Plan and (iv) any

combination of the foregoing.

 

(d)           On or after the Date

of Grant of any Nonqualified Option, the Board may determine that payment of

the Option Price may also be made in whole or in part in the form of Restricted

Shares or other Shares that are subject to risk of forfeiture or restrictions

on transfer. Unless otherwise determined by the Board on or after the Date of

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

the forms of consideration specified in this Section 4(d), the Common Shares

received by the Optionee upon the exercise of the Nonqualified Option shall be

subject to the same risks of forfeiture or restrictions on transfer as those

that applied to the consideration surrendered by the optionee; provided,

however, that such risks of forfeiture and restrictions on transfer

shall apply only to the same number of Common Shares received by the optionee

as applied to the forfeitable or restricted Common Shares surrendered by the

Optionee.

 

(e)           Any grant may

provide for deferred payment of the Option Price from the proceeds of sale

through a broker on the date of exercise of some or all of the Common Shares to

which the exercise relates.

 

(f)            Successive grants

may be made to the same Participant regardless of whether any Option Rights

previously granted to the Participant remain unexercised.

 

(g)           Each grant may

specify a period or periods of continuous employment of the Optionee by the

Corporation or any Subsidiary that are necessary before the Option Rights or

installments thereof shall become exercisable, and any grant may provide for

the earlier exercise of the Option Rights in the event of a change in control

of the Corporation or other similar transaction or event.

 

(h)           Option Rights

granted pursuant to this Section 4 may be Nonqualified Options or Tax-Qualified

Options or combinations thereof.

 

(i)            On or after the

Date of Grant of any Nonqualified Option, the Board may provide for the payment

to the Optionee of dividend equivalents thereon in cash or Common Shares on a

current, deferred or contingent basis, or the Board may provide that any

dividend equivalents shall be credited against the Option Price.

 

(j)            No Option Right

granted pursuant to this Section 4 may be exercised more than 10 years from the

Date of Grant.

 

(k)           Each grant shall be

evidenced by an agreement, which shall be executed on behalf of the Corporation

by an officer thereof and delivered to and accepted by the Optionee and shall

contain such terms and provisions as the Board may determine consistent with

this Plan.

 

4

 

5.             Appreciation Rights.    The

Board may also authorize grants to Participants of Appreciation Rights. An

Appreciation Right shall be a right of the Participant to receive from the

Corporation an amount, which shall be determined by the Board and shall be

expressed as a percentage (not exceeding 100 percent) of the Spread at the time

of the exercise of an Appreciation Right. Any grant of Appreciation Rights

under this Plan shall be upon such terms and conditions as the Board may

determine in accordance with the following provisions:

 

(a)           Any grant may

specify that the amount payable upon the exercise of an Appreciation Right may

be paid by the Corporation in cash, Common Shares or any combination thereof

and may (i) either grant to the Participant or reserve to the Board the

right to elect among those alternatives or (ii) preclude the right of the

Participant to receive and the Corporation to issue Common Shares or other

equity securities in lieu of cash.

 

(b)           Any grant may

specify that the amount payable upon the exercise of an Appreciation Right

shall not exceed a maximum specified by the Board on the Date of Grant.

 

(c)           Any grant may

specify (i) a waiting period or periods before Appreciation Rights shall

become exercisable and (ii) permissible dates or periods on or during

which Appreciation Rights shall be exercisable.

 

(d)           Any grant may specify

that an Appreciation Right may be exercised only in the event of a change in

control of the Corporation or other similar transaction or event.

 

(e)           On or after the Date

of Grant of any Appreciation Rights, the Board may provide for the payment to the

Participant of dividend equivalents thereon in cash or Common Shares on a

current, deferred or contingent basis.

 

(f)            Each grant shall be

evidenced by an agreement, which shall be executed on behalf of the Corporation

by any officer thereof and delivered to and accepted by the Optionee and shall

describe the subject Appreciation Rights, identify any related Option Rights,

state that the Appreciation Rights are subject to all of the terms and

conditions of this Plan and contain such other terms and provisions as the

Board may determine consistent with this Plan.

 

(g)           Regarding Tandem

Appreciation Rights only: Each grant shall provide that a Tandem Appreciation

Right may be exercised only (i) at a time when the related Option Right

(or any similar right granted under any other plan of the Corporation) is also

exercisable and the Spread is positive and (ii) by surrender of the

related Option Right (or such other right) for cancellation.

 

(h)           Regarding

Free-Standing Appreciation Rights only:

 

(i)            Each grant shall specify in respect

of each Free-Standing Appreciation Right a Base Price per Common Share, which

shall be equal to or greater than the Market Value per Share on the Date of

Grant;

 

(ii)           Successive grants may be made to the

same Participant regardless of whether any Free-Standing Appreciation Rights

previously granted to the Participant remain unexercised;

 

(iii)          Each grant shall specify the period or

periods of continuous employment of the Participant by the Corporation or any

Subsidiary that are necessary before the Free-

 

5

 

Standing

Appreciation Rights or installments thereof shall become exercisable, and any

grant may provide for the earlier exercise of the Free-Standing Appreciation

Rights in the event of a change in control of the Corporation or other similar

transaction or event; and

 

(iv)          No Free-Standing Appreciation Right

granted under this Plan may be exercised more than 10 years from the Date of

Grant.

 

6.             Restricted Shares.    The

Board may also authorize grants or sales to Participants of Restricted Shares

upon such terms and conditions as the Board may determine in accordance with

the following provisions:

 

(a)           Each grant or sale

shall constitute an immediate transfer of the ownership of Common Shares to the

Participant in consideration of the performance of services, entitling the

Participant to dividend, voting and other ownership rights, subject to the

substantial risk of forfeiture and restrictions on transfer hereinafter

referred to.

 

(b)           Each grant or sale

may be made without additional consideration from the Participant or in

consideration of a payment by the Participant that is less than the Market

Value per Share on the Date of Grant.

 

(c)           Each grant or sale

shall provide that the Restricted Shares covered thereby shall be subject to a

“substantial risk of forfeiture” within the meaning of Section 83 of the Code

for a period to be determined by the Board on the Date of Grant, and any grant

or sale may provide for the earlier termination of such period in the event of

a change in control of the Corporation or other similar transaction or event.

 

(d)           Each grant or sale

shall provide that, during the period for which such substantial risk of

forfeiture is to continue, the transferability of the Restricted Shares shall

be prohibited or restricted in the manner and to the extent prescribed by the

Board on the Date of Grant. Such restrictions may include, but are not limited

to, rights of repurchase or first refusal in the Corporation or provisions

subjecting the Restricted Shares to a continuing substantial risk of forfeiture

in the hands of any transferee.

 

(e)           Any grant or sale

may require that any or all dividends or other distributions paid on the

Restricted Shares during the period of such restrictions be automatically

sequestered and reinvested on an immediate or deferred basis in additional

Common Shares, which may be subject to the same restrictions as the underlying

award or such other restrictions as the Board may determine.

 

(f)            Each grant or sale

shall be evidenced by an agreement, which shall be executed on behalf of the

Corporation by any officer thereof and delivered to and accepted by the

Participant and shall contain such terms and provisions as the Board may

determine consistent with this Plan. Unless otherwise directed by the Board,

all certificates representing Restricted Shares, together with a stock power

that shall be endorsed in blank by the Participant with respect to the

Restricted Shares, shall be held in custody by the Corporation until all

restrictions thereon lapse.

 

7.             Deferred Shares.    The

Board may also authorize grants or sales to Participants of Deferred Shares

upon such terms and conditions as the Board may determine in accordance with

the following provisions:

 

6

 

(a)           Each grant or sale

shall constitute the agreement by the Corporation to issue or transfer Common

Shares to the Participant in the future in consideration of the performance of

services, subject to the fulfillment during the Deferral Period of such

conditions as the Board may specify.

 

(b)           Each grant or sale

may be made without additional consideration from the Participant or in

consideration of a payment by the Participant that is less than the Market

Value per Share on the Date of Grant.

 

(c)           Each grant or sale

shall provide that the Deferred Shares covered thereby shall be subject to a

Deferral Period, which shall be fixed by the Board on the Date of Grant, and

any grant or sale may provide for the earlier termination of the Deferral

Period in the event of a change in control of the Corporation or other similar

transaction or event.

 

(d)           During the Deferral

Period, the Participant shall not have any right to transfer any rights under

the subject award, shall not have any rights of ownership in the Deferred

Shares and shall not have any right to vote the Deferred Shares, but the Board

may on or after the Date of Grant authorize the payment of dividend equivalents

on the Deferred Shares in cash or additional Common Shares on a current,

deferred or contingent basis.

 

(e)           Each grant or sale

shall be evidenced by an agreement, which shall be executed on behalf of the

Corporation by any officer thereof and delivered to and accepted by the

Participant and shall contain such terms and provisions as the Board may

determine consistent with this Plan.

 

8.             Performance Shares and Performance Units.    The

Board may also authorize grants of Performance Shares and Performance Units,

which shall become payable to the Participant upon the achievement of specified

Management Objectives, upon such terms and conditions as the Board may

determine in accordance with the following provisions:

 

(a)           Each grant shall

specify the number of Performance Shares or Performance Units to which it

pertains, which may be subject to adjustment to reflect changes in compensation

or other factors.

 

(b)           The Performance

Period with respect to each Performance Share or Performance Unit shall be

determined by the Board on the Date of Grant and may be subject to earlier

termination in the event of a change in control of the Corporation or other

similar transaction or event.

 

(c)           Each grant shall

specify the Management Objectives that are to be achieved by the Participant,

which may be described in terms of Corporation-wide objectives or objectives

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

Subsidiary, division, department or function within the Corporation or

Subsidiary in which the Participant is employed.

 

(d)           Each grant shall

specify in respect of the specified Management Objectives a minimum acceptable

level of achievement below which no payment will be made and shall set forth a

formula for determining the amount of any payment to be made if performance is

at or above the minimum acceptable level but falls short of full achievement of

the specified Management Objectives.

 

7

 

(e)           Each grant shall

specify the time and manner of payment of Performance Shares or Performance

Units that shall have been earned, and any grant may specify that any such

amount may be paid by the Corporation in cash, Common Shares or any combination

thereof and may either grant to the Participant or reserve to the Board the

right to elect among those alternatives.

 

(f)            Any grant of

Performance Shares may specify that the amount payable with respect thereto may

not exceed a maximum specified by the Board on the Date of Grant. Any grant of

Performance Units may specify that the amount payable, or the number of Common

Shares issuable, with respect thereto may not exceed maximums specified by the

Board on the Date of Grant.

 

(g)           On or after the Date

of Grant of Performance Shares, the Board may provide for the payment to the

Participant of dividend equivalents thereon in cash or additional Common Shares

on a current, deferred or contingent basis.

 

(h)           The Board may adjust

Management Objectives and the related minimum acceptable level of achievement

if, in the sole judgment of the Board, events or transactions have occurred

after the Date of Grant that are unrelated to the performance of the

Participant and result in distortion of the Management Objectives or the

related minimum acceptable level of achievement.

 

(i)            Each grant shall be

evidenced by an agreement, which shall be executed on behalf of the Corporation

by any officer thereof and delivered to and accepted by the Participant and

shall contain such terms and provisions as the Board may determine consistent

with this Plan.

 

9.             Transferability.    (a) Any

grant of an Option Right or other “derivative security” (as defined in

Rule 16a-1 (c) under Section 16(a) of the Exchange Act) under

this Plan may permit the transfer thereof by the Participant upon such terms

and conditions as the Board shall specify.

 

(b)           Any grant made under

this Plan may provide that all or any part of the Common Shares that are to be

issued or transferred by the Corporation upon the exercise of Option Rights or

Appreciation Rights or upon the termination of the Deferral Period applicable

to Deferred Shares or in payment of Performance Shares or Performance Units, or

are no longer subject to the substantial risk of forfeiture and restrictions on

transfer referred to in Section 6 of this Plan, shall be subject to further

restrictions upon transfer.

 

10.           Adjustments.    The Board may make or

provide for such adjustments in the number of Common Shares covered by

outstanding Option Rights, Appreciation Rights, Deferred Shares and Performance

Shares granted hereunder, the Option Prices per Common Share or Base Prices per

Common Share applicable to any such Option Rights and Appreciation Rights, and

the kind of shares (including shares of another issuer) covered thereby, as the

Board may in good faith determine to be equitably required in order to prevent

dilution or expansion of the rights of Participants that otherwise would result

from (a) any stock dividend, stock split, combination of shares,

recapitalization or other change in the capital structure of the Corporation or

(b) any merger, consolidation, spin-off, spin-out, split-off, split-up,

reorganization, partial or complete liquidation or other distribution of

assets, issuance of warrants or other rights to purchase securities or any

other corporate transaction or event having an effect similar to any of the

foregoing. In the event of any such transaction or event, the Board may provide

in substitution for any or all outstanding awards under this Plan such

alternative consideration as it may in good faith determine to be equitable under

the circumstances and may require in connection therewith the surrender of all

awards so replaced. Moreover, the Board may on or after the Date of Grant

provide in the agreement 

 

8

 

evidencing any award under this Plan that the holder

of the award may elect to receive an equivalent award in respect of securities

of the surviving entity of any merger, consolidation or other transaction or

event having a similar effect, or the Board may provide that the holder will

automatically be entitled to receive such an equivalent award. The Board may

also make or provide for such adjustments in the numbers of Common Shares

specified in Sections 3(a)(i) and 3(a)(ii) of this Plan as the Board

may in good faith determine to be appropriate in order to reflect any

transaction or event described in this Section 10.

 

11.           Fractional Shares.    The

Corporation shall not be required to issue any fractional Common Shares

pursuant to this Plan. The Board may provide for the elimination of fractions

or for the settlement thereof in cash.

 

12.           Withholding Taxes.    To the

extent that the Corporation is required to withhold federal, state, local or

foreign taxes in connection with any payment made or benefit realized by a

Participant or other person under this Plan, and the amounts available to the

Corporation for the withholding are insufficient, it shall be a condition to

the receipt of any such payment or the realization of any such benefit that the

Participant or such other person make arrangements satisfactory to the

Corporation for payment of the balance of any taxes required to be withheld. At

the discretion of the Board, any such arrangements may include relinquishment

of a portion of any such payment or benefit. The Corporation and any

Participant or such other person may also make similar arrangements with

respect to the payment of any taxes with respect to which withholding is not

required.

 

13.           Participation by Directors, Officers

and Other Key Employees of or Consultants to a Less-Than-80-Percent Subsidiary.

   As a condition to the effectiveness of any grant

or award to be made hereunder to a Participant who is a director or an officer

or other key employee of or a consultant to a Less-Than-80-Percent Subsidiary,

regardless of whether the Participant is also employed by the Corporation or

another Subsidiary, the Board may require the Less-Than-80-Percent Subsidiary

to agree to transfer to the Participant (as, if and when provided for under

this Plan and any applicable agreement entered into between the Participant and

the Less-Than-80-Percent Subsidiary pursuant to this Plan) the Common Shares

that would otherwise be delivered by the Corporation upon receipt by the

Less-Than 80-Percent Subsidiary of any consideration then otherwise payable by

the Participant to the Corporation. Any such award may be evidenced by an

agreement between the Participant and the Less-Than-80-Percent Subsidiary, in

lieu of the Corporation, on terms consistent with this Plan and approved by the

Board and the Less-Than-80-Percent Subsidiary. All Common Shares so delivered

by or to a Less-Than-80-Percent Subsidiary will be treated as if they had been

delivered by or to the Corporation for purposes of Section 3 of this Plan, and

all references to the Corporation in this Plan shall be deemed to refer to the

Less-Than-80-Percent Subsidiary except with respect to the definitions of the

Board and the Committee and in other cases where the context otherwise

requires.

 

14.           Certain Terminations of Employment, Hardship

and Approved Leaves of Absence.    Notwithstanding

any other provision of this Plan to the contrary, in the event of termination

of employment by reason of death, disability, normal retirement, early

retirement with the consent of the Corporation, termination of employment to

enter public service with the consent of the Corporation or leave of absence

approved by the Corporation, or in the event of hardship or other special

circumstances, of a Participant who holds an Option Right or Appreciation Right

that is not immediately and fully exercisable, any Restricted Shares as to

which the substantial risk of forfeiture or the prohibition or restriction on

transfer has not lapsed, any Deferred Shares as to which the Deferral Period is

not complete, any Performance Shares or Performance Units that have not been

fully earned, or any Common Shares that are subject to any transfer restriction

pursuant to Section 9[(b)] of this Plan, the Board may take any action that it

deems to be equitable under the circumstances or in the best interests of the

Corporation,

 

9

 

including without limitation waiving or modifying

any limitation or requirement with respect to any award under this Plan.

 

15.           Foreign Participants.    In

order to facilitate the making of any award or combination of awards under this

Plan, the Board may provide for such special terms for awards to Participants

who are foreign nationals, or who are employed by the Corporation or any

Subsidiary outside of the United States of America, as the Board may consider

necessary or appropriate to accommodate differences in local law, tax policy or

custom. Moreover, the Board may approve such supplements to, or amendments,

restatements or alternative versions of, this Plan as it may consider necessary

or appropriate for such purposes without thereby affecting the terms of this

Plan as in effect for any other purpose; provided, however that no such

supplements, amendments, restatements or alternative versions shall include any

provisions that are inconsistent with the terms of this Plan, as then in

effect, unless this Plan could have been amended to eliminate the inconsistency

without further approval by the stockholders of the Corporation.

 

16.           Administration of the Plan.    (a) This

Plan shall be administered by the Board, which may delegate any or all of its

authority hereunder to the Committee. To the extent of any such delegation,

references in this Plan to the Board shall be deemed to refer to the Committee,

unless the context requires otherwise. A majority of the Board shall constitute

a quorum, and the acts of the members of the Board who are present at any

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

the members of the Board in writing, shall be the acts of the Board.

 

(b)           The interpretation

and construction by the Board of any provision of this Plan or any agreement,

notification or document evidencing the grant of Option Rights, Appreciation

Rights, Restricted Shares, Deferred Shares, Performance Shares or Performance

Units, and any determination by the Board pursuant to any provision of this

Plan or any such agreement, notification or document, shall be final and

conclusive. No member of the Board shall be liable for any such action taken or

determination made in good faith.

 

17.           Amendments and Other Matters.    (a) This

Plan may be amended from time to time by the Board; provided, however except as

expressly authorized by this Plan, no such amendment shall increase the numbers

of Common Shares specified in Sections 3(a)(i) and 3(a)(ii) hereof or

the number of Performance Units specified in Section 3(b) hereof without

the further approval of the stockholders of the Corporation.

 

(b)           With the concurrence

of the affected Participant, the Board may cancel any agreement evidencing

Option Rights or any other award granted under this Plan. In the event of any

such cancellation, the Board may authorize the granting of new Option Rights or

other awards hereunder, which may or may not cover the same number of Common

Shares as had been covered by the cancelled Option Rights or other award, at

such Option Price, in such manner and subject to such other terms, conditions

and discretion as would have been permitted under this Plan had the cancelled

Option Rights or other award not been granted.

 

(c)           The Board may grant

under this Plan any award or combination of awards authorized under this Plan,

including but not limited to Replacement Option Rights, in exchange for the

surrender and cancellation of an award that was not granted under this Plan,

including but not limited to an award that was granted by the Corporation or a

Subsidiary, or by another corporation that is acquired by the Corporation or a

Subsidiary by merger or otherwise, prior to the adoption of this Plan by the

Board, and any such award or combination of awards so granted under this Plan

may or may not cover the same number of Common Shares as had been covered

 

10

 

by the cancelled award and shall be subject

to such other terms, conditions and discretion as would have been permitted

under this Plan had the cancelled award not been granted.

 

(d)           This Plan shall not

confer upon any Participant any right with respect to continuance of employment

with the Corporation or any Subsidiary and shall not interfere in any way with

any right that the Corporation or any Subsidiary would otherwise have to

terminate any Participant’s employment at any time.

 

(e)           To the extent that

any provision of this Plan would prevent any Option Right that was intended to

qualify as a Tax-Qualified Option from so qualifying, any such provision shall

be null and void with respect to any such Option Right; provided, however that any

such provision shall remain in effect with respect to other Option Rights, and

there shall be no further effect on any provision of this Plan.

 

11

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