Document:

Exhibit 4.15

 

Exhibit 4.15

AMENDMENT NO. 11 TO

AMENDED AND RESTATED CREDIT AGREEMENT

     This Amendment No. 11 to Amended and Restated Credit Agreement (this “Amendment”), dated as of
May 19, 2005, is entered into by and between SIFCO INDUSTRIES, INC. (the “Borrower”) and NATIONAL
CITY BANK (the “Bank”) for the purposes amending and supplementing the documents and instruments
referred to below.

WITNESSETH:

     WHEREAS, Borrower and Bank are parties to an Amended and Restated Credit Agreement made as of
April 30, 2002, as amended from time to time (as amended, the “Credit Agreement” providing for
$6,000,000 of revolving credits; all terms used in the Credit Agreement being used herein with the
same meaning); and

     WHEREAS, Borrower and Bank desire to further amend certain provisions of the Credit Agreement
to, among other things, amend and/or waive certain financial covenants applicable thereto;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

SECTION I — Amendments to Credit Agreement

     A. Subsection 3B.01 of the Credit Agreement is hereby amended in its entirety to read as
follows:

3B.01 TANGIBLE NET WORTH — Borrower shall not suffer or permit the Tangible Net
Worth of the Reporting Group, as of the end of any month, to be less than the
required minimum amount. The required minimum amount shall be $26,000,000 from the
date of this Amendment through June 29, 2005 and thereafter shall be $27,000,000.
The required minimum amount shall increase as of the last day of each fiscal year of
Borrower, commencing with fiscal year ending September 30, 2005, by an amount equal
to 50% of the consolidated Net Income of the Reporting Group for such fiscal year as
measured by Borrower’s annual audited financial statements for such fiscal year. If
Net Income is less than $0 for any fiscal year, the required minimum amount shall not
be reduced as of the end of that fiscal year.

SECTION II — Waiver

     Bank hereby waives all violations of the Tangible Net Worth covenant contained in subsection
3B.01 of the Credit Agreement which occurred prior to the date hereof. The execution, delivery and
effectiveness of this Amendment and the specific waiver set forth herein shall not operate as a
waiver of any other right, power or remedy of Bank under the Credit Agreement or constitute a
continuing waiver of any kind.

SECTION III — Representations and Warranties

     Borrower hereby represents and warrants to Bank, to the best of Borrower’s knowledge, that

(A) none of the representations and warranties made in the Credit Agreement or any Related
Writing, (collectively, the “Loan Documents”) has ceased to be true and complete in any
material respect as of the date hereof; and

(B) as of the date hereof no “Default” has occurred that is continuing under the Loan
Documents.

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SECTION IV — Acknowledgments Concerning Outstanding Loans

     Borrower acknowledges and agrees that, as of the date hereof, all of Borrower’s outstanding
loan obligations to Bank are owed without any offset, deduction, defense, claim or counterclaim of
any nature whatsoever. Borrower authorizes Bank to share all credit and financial information
relating to Borrower with each of Bank’s parent company and with any subsidiary or affiliate
company of such Bank or of such Bank’s parent company.

SECTION V — References

     On and after the effective date of this Amendment, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof”, or words of like import referring to the Credit Agreement
shall mean and refer to the Credit Agreement as amended hereby. The Loan Documents, as amended by
this Amendment, are and shall continue to be in full force and effect and are hereby ratified and
confirmed in all respects. The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of Bank under the Loan Documents or constitute a
waiver of any provision of the Loan Documents except as specifically set forth herein.

SECTION VI — Counterparts and Governing Law

     This Amendment may be executed in any number of counterparts, each counterpart to be executed
by one or more of the parties but, when taken together, all counterparts shall constitute one
agreement. This Amendment, and the respective rights and obligations of the parties hereto, shall
be construed in accordance with and governed by Ohio law.

     IN WITNESS WHEREOF, the Borrower and the Bank have caused this Amendment to be executed by
their authorized officers as of the date and year first above written.

	 	 	 	 	 	 	 	 	 
	SIFCO INDUSTRIES, INC.	 	NATIONAL CITY BANK	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Frank A. Cappello
	 	By:
	 	/s/ Denise A. Jakubovic	 	 
	

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Frank A. Cappello	 	Name: Denise A. Jakubovic	 	 
	 
	 	 	 	 	 	 	 	 
	Title: V.P. Finance and CFO	 	Title: Assistant Vice President	 	 

8EX-10.1

 

EXHIBIT 10.1

BIG LOTS

2005 LONG-TERM INCENTIVE PLAN

 

 

BIG LOTS

2005 LONG-TERM INCENTIVE PLAN

ARTICLE I

ESTABLISHMENT AND PURPOSE

     1.1 Establishment. The Big Lots 2005 Long-Term Incentive Plan (“Plan”) is hereby
established by Big Lots, Inc. (“Company”), effective as of the date it is approved by the Company’s
shareholders (“Effective Date”).

     1.2 Purposes. The Plan is intended to promote the Company’s long-term financial
success and materially increase shareholder value by motivating performance through incentive
compensation. The Plan also is intended to encourage Participants to acquire ownership interests
in the Company, attract and retain talented associates and enable Participants to participate in
the Company’s long-term growth and financial success.

ARTICLE II

DEFINITIONS

     When used in this Plan, the following terms have the meaning given to them in this section
unless another meaning is expressly provided elsewhere in this Plan or required by the plain
context in which it is used. When applying the terms defined in this section and other terms used
throughout the Plan, the form of any term, phrase or word will, as appropriate, include any and all
of its forms.

     2.1 “Affiliate” means (1) a “parent” or a “subsidiary” of the Company, as those terms
are defined in Code §§424(e) and (f), respectively; and (2) any other entity (other than the
Company) regardless of its form that directly or indirectly controls, is controlled by or is under
common control with, the Company within the meaning of Code §414(b) but substituting “50 percent”
for “80 percent” when determining controlling interest under Code §414(b). 

     2.2 “Award” means any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit or Performance Unit granted to a Participant under the Plan. At the Committee’s
discretion, an Award may be granted as a Performance-Based Award.

     2.3 “Award Agreement” means any written or electronic agreement granting an Award to a
Participant. Each Award Agreement will specify the Grant Date and describe the terms and
conditions imposed on the Award.

     2.4 “Beneficiary” means any person (or entity), who (or which) has been designated by
a Participant in his or her most recent written beneficiary designation filed with the Committee to
receive the compensation or to exercise the rights that are due or exercisable at the Participant’s
death. If there is no designated beneficiary, the term

 

 

means any person or entity entitled by will or the applicable laws of descent and distribution
to receive such compensation.

     2.5 “Board of Directors” or “Board” means the Company’s board of directors.

     2.6 “Change in Control” means any one or more of the following events: (1) any person
or group [as defined for purposes of Section 13(d) of the Exchange Act] becomes the beneficial
owner of, or has the right to acquire (by contract, option, warrant, conversion of convertible
securities or otherwise), 20 percent or more of the outstanding equity securities of the Company
entitled to vote for the election of directors; (2) a majority of the Board of Directors of the
Company then in office is replaced within any period of two years or less by directors not
nominated and approved by a majority of the directors in office at the beginning of such period (or
their successors so nominated and approved), or a majority of the Board of Directors at any date
consists of persons not so nominated and approved; or (3) the shareholders of the Company approve
an agreement to merge or consolidate with another corporation or an agreement to sell or otherwise
dispose of all or substantially all of the Company’s assets (including, without limitation, a plan
of liquidation). Provided, however, the other provisions of this Section 2.6 notwithstanding, the
term “Change in Control” shall not mean any merger, consolidation, reorganization, or other
transaction in which the Company exchanges or offers to exchange newly-issued or treasury Common
Shares representing 20 percent or more, but less than 50 percent, of the outstanding equity
securities of the Company entitled to vote for the election of directors, for 51 percent or more of
the outstanding equity securities entitled to vote for the election of at least the majority of the
directors of a corporation other than the Company or an Affiliate (the “Acquired Corporation”), or
for all or substantially all of the assets of the Acquired Corporation.

     2.7 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
any successor, along with relevant rules, regulations and authoritative interpretations the
Internal Revenue Service issues.

     2.8 “Committee” means the Board committee to which the Board assigns the
responsibility of administering the Plan. The Committee shall consist of at least three members of
the Board, each of whom may serve on the Committee only if the Board determines that he or she (1)
is a “Non-employee Director” for purposes of Rule 16b-3 under the Exchange Act, (2) satisfies the
requirements of an “outside director” for purposes of Code §162(m) and (3) qualifies as
“independent” in accordance with New York Stock Exchange listing standards.

     2.9 “Common Shares” means shares of the Company’s common shares, $0.01 par value (as
such par value may be amended from time to time), whether presently or hereafter issued, and any
other stock or security resulting from adjustment thereof as described hereinafter, or the Common
Shares of any successor to the Company which is designated for the purpose of the Plan.

     2.10 “Covered Employee” means a Participant whose compensation in the year of the
expected payment of an Award will be subject to Code §162(m).

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     2.11 “Disability” means, with respect to ISOs, as that term is defined in Code
§22(e)(3), with respect to any Award (other than an ISO) that is not subject to Code §409A, a
physical or mental condition that, for more than six consecutive months, renders the Participant
incapable, with reasonable accommodation, of performing his or her assigned duties on a full-time
basis or, with respect to any Award (that is not an ISO) that is subject to Code §409A, as that
term is defined under Code §409A.

     2.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

     2.13 “Exercise Price” means the price, if any, a Participant must pay to exercise an
Award or the amount upon which the value of an Award is based.

     2.14 “Fair Market Value” means the volume-weighted average trading price of a Common
Share on any date for which it is relevant or, if a relevant date occurs on a day other than a
trading day, on the next trading day.

     2.15 “Grant Date” means the later of (1) the date the Committee establishes the terms
of an Award or (2) the date specified in the Award Agreement. In no event may the Grant Date be
earlier than the Effective Date.

     2.16 “Incentive Stock Option” or “ISO” means any Option granted under the Plan
that is designated as an “incentive stock option” within the meaning of Code §422.

     2.17 “Non-Qualified Stock Option” or “NQSO” means an Option granted under the
Plan that (1) is not designated as an ISO or (2) an ISO that, for any reason other than exercise,
ceased to be an ISO.

     2.18 “Option” means a right to purchase Common Shares granted to a Participant in
accordance with Article VI. An Option may be either an ISO or NQSO. 

     2.19 “Option Period” means the period during which an Option may be exercised.

     2.20 “Participant” means a person who satisfies the eligibility conditions of Article
V and to whom an Award has been granted by the Committee under the Plan.

     2.21 “Performance-Based Award” means an Award granted subject to the terms of Article
X.

     2.22 “Performance Period” means the period (which, with respect to a Covered Employee,
may be no shorter than a fiscal quarter of the Company) established by the Committee over which the
Committee measures whether or not Performance-Based Awards have been earned.

     2.23 “Performance Unit” means a right granted subject to the terms and conditions
established by the Committee under Article IX.

3

 

     2.24 “Restricted Stock” means Common Shares granted subject to the terms and
conditions established by the Committee under Section 8.1.

     2.25 “Restricted Stock Unit” means an Award granted subject to the terms and
conditions established by the Committee under Section 8.2.

     2.26 “Restriction Period” means the period over which the Committee measures whether
terms and conditions (such as forfeitures) placed on Restricted Stock or Restricted Stock Units
have been met.

     2.27 “Rule 16b-3” means Rule 16b-3, as from time to time in effect and applicable to
the Plan and Participants, issued by the Securities and Exchange Commission under Section 16 of the
Exchange Act or any successor rule.

     2.28 “Stock Appreciation Right” or “SAR” means a right granted under Article
VII.

     2.29 “Termination of Employment” means the occurrence of any act or event that causes
a Participant to cease being an employee of the Company or of any Affiliate, including, without
limitation, death, Disability, dismissal, severance at the election of the Participant, or
severance as a result of the discontinuance, liquidation, sale, or transfer by the Company or its
Affiliates of a business owned or operated by the Company or any Affiliate. With respect to any
person who is not an employee of the Company or any Affiliate (such as an eligible consultant as
determined in accordance with Article V), the Award Agreement shall establish what act or event
shall constitute a Termination of Employment for purposes of the Plan. A Termination of Employment
shall occur with respect to an employee who is employed by an Affiliate if the Affiliate shall
cease to be an Affiliate and the Participant shall not immediately thereafter become an employee of
the Company or an Affiliate.

     2.30 “Vesting Acceleration Feature” means a term in an Award Agreement that, upon
achievement and certification of performance goals set forth in Section 10.3, causes restrictions
imposed on Restricted Stock or Restricted Stock Units to accelerate.

ARTICLE III

ADMINISTRATION

     3.1 Committee Duties. The Committee is granted all powers appropriate and necessary
to administer the Plan. Consistent with the Plan’s purpose, the Committee may adopt, amend and
rescind rules and regulations relating to the Plan to the extent appropriate to protect the
Company’s interests and the Plan’s purpose and has complete discretion to make all other decisions
necessary or advisable for the administration and interpretation of the Plan. Any action by the
Committee will be final, binding and conclusive for all purposes and upon all Participants and
Beneficiaries. Also, the Committee (or the Board, as appropriate) may revoke or amend the Plan and
Award Agreements without any additional consideration to affected Participants, to the extent
necessary to avoid penalties under Code §409A, even if that revocation or those

4

 

amendments reduce, restrict or eliminate rights granted under the Plan or Award Agreement (or
both) before the amendments, although the Company or the Committee may (but neither is required to)
reimburse an affected Participant for any diminution in the value of an Award associated with any
such change.

     3.2 Restrictions on Reload/Repricing. Regardless of any other provision of this Plan
(1) without the prior approval of the shareholders, neither the Company nor the Committee may
reprice or grant any Award in connection with the cancellation of a previously granted Award if the
Exercise Price of the later granted Award is less than the Exercise Price of the earlier granted
Award and (2) no Participant will be entitled (and no Committee discretion may be exercised to
extend to any Participant) an automatic grant of additional Awards in connection with the exercise
of an Option or otherwise.

     3.3 Committee Actions. The Committee may authorize any one or more of its members or
an officer of the Company to execute and deliver documents on behalf of the Committee. The
Committee may allocate among one or more of its members, or may delegate to one or more of its
agents, such duties and responsibilities as it determines. However, the Committee may not delegate
any duties required to be administered by the Committee to comply with Code §162(m) or any
applicable law.

     3.4 Deferral of Awards. In its discretion, the Committee may permit any Participant
to defer recognition of any Award through any means that is acceptable to it and which is
consistent with Code §409A.

ARTICLE IV

SHARES SUBJECT TO PLAN

     4.1 Number of Shares. Subject to Section 4.7, the total number of Common Shares
reserved and available for distribution pursuant to Awards shall be the sum of (1) 1,250,000 newly
issued shares, plus (2) any remaining shares available for issuance under the Company’s 1996
Performance Incentive Plan on December 30, 2005, plus (3) an additional .75 percent of the total
number of issued Common Shares (including treasury shares) as of the start of each of the Company’s
fiscal years (currently comprised of a 52/53-week period which ends on the Saturday nearest to
January 31) that the Plan is in effect (including shares exchanged when exercising Options). Such
shares may consist, in whole or in part, of authorized and unissued shares or shares acquired from
a third party. In any event, the total of Awards under this Plan, the 1996 Performance Incentive
Plan, the Consolidated Stores Corporation Executive Stock Option and Stock Appreciation Rights Plan
and the Director Stock Option Plan shall not exceed 15 percent of the total Common Shares issued
and outstanding (including treasury shares) as of any date.

     4.2 Unfulfilled Awards. Any Common Shares subject to an Award that, for any reason,
is forfeited, cancelled, terminated or relinquished may again be the subject of an Award.
Notwithstanding the foregoing, the following shares shall not become available again for issuance
as an Award: (1) Common Shares tendered by Participants as 

5

 

full or partial payment to the Company upon exercise of Awards granted under this Plan;
(2) Common Shares reserved for issuance upon grant of SARs, to the extent the number of reserved
shares exceeds the number of shares actually issued upon exercise of the SARs, and (3) Common
Shares withheld by, or otherwise remitted to, the Company to meet the obligations described in
Section 13.4.

     4.3 Restrictions on Common Shares. Common Shares issued upon exercise of an Award
shall be subject to the terms and conditions specified herein and to such other term and conditions
as the Committee, in its discretion, may determine or provide in the Award Agreement. The Company
shall not be required to issue or deliver any certificates for Common Shares, cash or other
property prior to (1) the completion of any registration or qualification of such shares under
federal, state or other law or any ruling or regulation of any government body which the Committee
determines to be necessary or advisable; and (2) the satisfaction of any applicable withholding
obligation in order for the Company or an Affiliate to obtain a deduction or discharge its legal
obligation with respect to the exercise of an Award. The Company may cause any certificate (or
other representation of title) for any Common Shares to be delivered to be properly marked with a
legend or other notation reflecting any limitations on transfer of such Common Shares as provided
in this Plan or as the Committee may otherwise require. The Committee may require any person
exercising an Award to make such representations and furnish such information as the Committee may
consider appropriate in connection with the issuance or delivery of the Common Shares in compliance
with applicable law or otherwise.

     4.4 Restrictions on Full Value Awards. The maximum aggregate number of shares of
Restricted Stock, Restricted Stock Units and Performance Units that may be issued under this Plan
shall not exceed 33? percent of all awards granted pursuant to this Plan.

     4.5 ISO Restriction. The maximum aggregate number of shares that may be granted under
this Plan through the exercise of ISOs shall be five million (5,000,000).

     4.6 Shareholder Rights. Except as expressly provided in the Plan or Award Agreement,
no Participant will have any rights as a shareholder with respect to Common Shares subject to an
Award until, after proper transfer of the Common Shares subject to the Award or other action
required, the shares have been recorded on the Company’s official shareholder records as having
been issued and transferred. Upon grant of Restricted Stock, or exercise of an Option or a SAR, or
payment of any other Award or any portion thereof to be made in Common Shares, the Company will
have a reasonable period (but not more than 2-1/2 months after the exercise or settlement date) in
which to issue and transfer the shares, and the Participant will not be treated as a shareholder
for any purpose whatsoever prior to such issuance and transfer, except as provided in the Plan or
Award Agreement. Unless specifically provided in the Plan or Award Agreement, no adjustment shall
be made for cash dividends or other rights for which the record date is prior to the date such
shares are recorded as issued and transferred in the Company’s official shareholder records.

6

 

     4.7 Effect of Certain Changes. In the event of any Company share dividend, share
split, combination or exchange of Common Shares, recapitalization or other change in the capital
structure of the Company, corporate separation, or division of the Company (including, but not
limited to, a split-up, spin-off, split-off or distribution to Company shareholders other than a
normal cash dividend), reorganization, rights offering, a partial or complete liquidation, or any
other corporate transaction, Company securities offering, or event involving the Company and having
an effect similar to any of the foregoing, the Committee may make appropriate adjustments or
substitutions as described below in this section. The adjustments or substitutions may relate to
the number of Common Shares available for Awards under the Plan, the number of Common Shares
covered by outstanding Awards, the exercise price per share of outstanding Awards and any other
characteristics or terms of the Awards as the Committee may deem necessary or appropriate to
reflect equitably the effects of such changes to the Participants.

ARTICLE V

ELIGIBILITY

     5.1 Eligibility. In the Committee’s discretion, any salaried employee, consultant or
advisor to the Company or its Affiliates (other than a member of the Board who also is not a
salaried employee) may be a Participant, provided such eligibility would not jeopardize the Plan’s
compliance with Rule 16b-3 under the Exchange Act or any successor rule. For purposes of this
Plan, a consultant or advisor shall be eligible only if bona fide services are being rendered
pursuant to a valid written agreement between the consultant or advisor and the Company, and the
services rendered are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for the Company’s
securities. However, and unless otherwise permitted under Code §409A, no Award subject to Code
§409A may be granted to any person who is performing services for an entity that is not an
affiliate of the Company within the meaning of Code §§414(b) and (c).

     5.2 Conditions of Participation. By accepting an Award, each Participant agrees in
his or her own behalf and in behalf of his or here Beneficiaries (1) to be bound by the terms of
the Award Agreement and the Plan and (2) that the Committee (or the Board) may amend the Plan and
the Award Agreement without any additional consideration to the extent necessary to avoid penalties
arising under Code §409A, even if those amendments reduce, restrict or eliminate rights or Awards
granted under the Plan or an Award Agreement (or both) before those amendments, although the
Company or the Committee may (but neither is required to) reimburse an affected Participant or
Beneficiary for any diminution in the value of an Award associated with any such change.

7

 

ARTICLE VI

OPTIONS

     6.1 Grant of Options. Except as provided in Secion 4.5, the Committee may grant
Options at any time during the term of this Plan. However:

          (1) No Option intended to be an ISO may be granted more than seven years after the
earlier of the date the Board adopts the Plan or the date the Plan is approved by the
Company’s shareholders.

          (2) Only a person who is a common-law employee of the Company, or an Affiliate on the
Grant Date, may be granted an ISO. Any Option that is not designated as an ISO or which
does not qualify as an ISO will be a NQSO.

     6.2 Terms and Conditions. Options shall be subject to the terms and conditions
specified in the Award Agreement, including:

          (1) Exercise Price. The Exercise Price shall not be less than (a) 100 percent
of Fair Market Value on the Grant Date or (b) 110 percent of Fair Market Value on the Grant
Date in the case of an ISO granted to an individual (a “10 percent Owner”) who owns or who
is deemed to own shares possessing more than 10 percent of the combined voting power of all
classes of shares of the Company or any Affiliate.

          (2) Option Period. The Option Period of each Option will be specified in the
Award Agreement, provided that no Option shall be exercisable fewer than six months after
the Grant Date or more than ten years after the Grant Date (five years in the case of an
ISO granted to a 10 percent Owner).

          (3) Exercisability. Subject to Article X, an Option shall be exercisable
under terms specified in the Award Agreement. The Committee may provide in the Award
Agreement for an accelerated exercise of all or part of an Option upon specified events or
conditions, including one or more of the performance goals listed in Section 10.3. Also,
the Committee may accelerate the exercisability of all or part of any Option at any time.
The aggregate Fair Market Value (determined at the Grant Date) of the Common Shares subject
to ISOs that are exercisable for the first time during any calendar year shall not exceed
$100,000, calculated under Code §422.

          (4) Method of Exercise. Subject to the provisions of this Article VI and the
Award Agreement, a Participant may exercise Options, in whole or in part, during the Option
Period by giving written notice of exercise on a form provided by the Committee specifying
the number of whole Common Shares subject to the Option to be purchased. Such notice must
be accompanied by payment of the Exercise Price by cash or certified check or other form of
payment acceptable to the Committee at the time of exercise, including (a) delivering
Common Shares already owned by the Participant (for any minimum period

8

 

required by the Committee) having a total Fair Market Value on the date of delivery
equal to the Exercise Price; (b) the delivery of cash by a broker-dealer as a “cashless”
exercise, provided this method of payment may not be used by an executive officer of the
Company to the extent it would violate applicable provisions of the Sarbanes-Oxley Act of
2002; (c) withholding by the Company of Common Shares subject to the Option having a total
Fair Market Value as of the date of exercise equal to the Exercise Price; or (d) any
combination of the foregoing.

     6.3 Effect of Termination of Employment. Unless otherwise specifically provided in an
Award Agreement or determined by the Committee, any exercisable Options held by a Participant who
Terminates Employment (1) because of death or Disability may be exercised until the earlier of one
year after Termination of Employment or the expiration date specified in the Award Agreement or (2)
for any reason other than death or Disability may be exercised until the earlier of 90 days after
Termination of Employment or the expiration date specified in the Award Agreement.

     6.4 Notice of Disposition of Common Shares Prior to the Expiration of Specified ISO
Holding Periods. The Committee may require that a Participant exercising an ISO give a written
representation, satisfactory in form and substance, upon which the Company may rely, that the
Participant will report to the Company any disposition of Common Shares acquired through exercise
of an ISO before expiration of the holding periods specified by Code §422(a)(1).

ARTICLE VII

STOCK APPRECIATION RIGHTS

     7.1 Grant of SARs. The Committee may grant SARs at any time during the term of this
Plan, either alone or in tandem with other Awards. If all the terms and conditions specified in
the Award Agreement are met, the Participant may exercise the SAR and receive Common Shares under
the procedures described in this section.

     7.2 Terms and Conditions. SARs shall be subject to the terms and conditions specified
in the Award Agreement, including:

          (1) Exercise Price. The Exercise Price may not be less than 100 percent of
Fair Market Value on the Grant Date.

          (2) Period and Exercise. The Award Agreement will specify the period over
which a SAR may be exercised and the terms and conditions that must be met before it may be
exercised. The Committee may provide in the Award Agreement for an accelerated exercise of
all or part of a SAR upon specified events or conditions, including one or more of the
performance goals listed in Section 10.3. Also, the Committee may accelerate the
exercisability of all or part of any SAR. A Participant may exercise a SAR giving written
notice of

9

 

exercise on a form acceptable to the Committee specifying the portion of the SAR being
exercised.

          (3) Settlement. When a SAR is exercised, the Participant shall be entitled to
receive a number of Common Shares (or, if permitted by rules issued under Code §409A, cash)
equal to the excess of Fair Market Value on the date of exercise over the Exercise Price
multiplied by the number of SARs being settled and divided by the Fair Market Value of one
Common Share on the date of exercise. Also, and unless permitted by rules issued under
Code §409A, neither the Company nor an Affiliate may repurchase the Common Shares delivered
in settlement of a SAR or enter into an arrangement that has a similar effect.

     7.3 Effect of Termination of Employment. Unless otherwise specifically provided in an
Award Agreement or determined by the Committee, any exercisable SARs held by a Participant who
Terminates Employment (1) because of death or Disability may be exercised until the earlier of one
year after Termination of Employment or until the expiration date specified in the Award Agreement
or (2) for any reason other than death or Disability, may be exercised the earlier of 90 days after
Termination of Employment or the expiration date specified in the Award Agreement.

ARTICLE VIII

RESTRICTED STOCK/RESTRICTED STOCK UNITS

     8.1 Restricted Stock. Except as provided in Section 4.4, the Committee may grant
Restricted Stock at any time during the term of this Plan.

          (1) Restricted Stock Grant, Awards and Certificates. Each Participant
receiving a Restricted Stock Award shall be issued a certificate (or other representation
of title) in respect of such Restricted Stock. That certificate shall be registered in the
name of such Participant and shall bear an appropriate legend describing the terms,
conditions and restrictions applicable to such Award as determined by the Committee. The
Committee, in its discretion, may distribute the certificate to the Participant or require
that the certificate be held in escrow by the Company until the Restriction Period lapses
and, as a condition of receiving any Restricted Stock Award, the Participant delivers a
share power, endorsed in blank, relating to the Common Shares underlying the Restricted
Stock Award.

          (2) Terms and Conditions. Restricted Stock shall be subject to such terms and
conditions as specified in the Award Agreement, including:

               (a) Restrictions. The Award Agreement will specify the Restriction
Period and the terms and conditions that must be met if the Restricted Stock is to
be earned. These may include an acceleration of the Restriction Period based on
one or more of the performance goals listed in Section 10.3. Also, Restricted
Stock maybe earned over a period of time

10

 

no shorter than three years from the Grant Date unless the Committee specifies
otherwise in the Award Agreement.

               (b) Rights. Except as provided in Section 13.7 during the Restriction
Period, a Participant receiving a Restricted Stock Award will have, with respect to
the Restricted Stock, all of the rights of a shareholder of the Company holding the
class of Common Shares that is the subject of the Restricted Stock, including, if
applicable, the right to vote the shares and the right to receive any cash
dividends. However, any dividends paid on Restricted Stock held in escrow also
will be held in escrow and either will be paid to the Participant or forfeited at
the end of the Restriction Period, depending on whether the Restricted Stock on
which they were paid is earned or forfeited. Also, any stock dividends will be
subject to the same restrictions that affect the Restricted Stock with respect to
which the dividend was paid. Dividends paid out of escrow will be treated as
remuneration for employment unless an election has been made under Section 13.17.

               (c) Forfeiture. Unless otherwise specifically provided in the Award
Agreement, all Restricted Stock will be forfeited if the Participant Terminates
Employment before the end of the Restriction Period or if applicable terms and
conditions have not been met at the end of the Restriction Period. If forfeited
Restricted Stock was held in escrow during the Restriction Period, it will be
released from escrow. If forfeited Restricted Stock was issued to the Participant,
the share certificates will be returned and cancelled.

               (d) Settlement. If all terms and conditions imposed on the Restricted
Stock Award are met, unlegended certificates (or other representation of title) for
such Common Shares shall be delivered to the Participant.

               (e) Price. The Committee may require a Participant to pay a
stipulated purchase price for each share of Restricted Stock.

     8.2 Restricted Stock Units. Except as provided in Section 4.4, the Committee may
grant Restricted Stock Units at any time during the term of this Plan. Restricted Stock Units
shall be subject to the terms and conditions specified in the Award Agreement, including:

          (1) Restrictions. The Award Agreement will specify the restriction Period and
the terms and conditions that must be met if the Restricted Stock Units are to be earned.
These may include an acceleration of the Restriction Period based on one or more of the
performance goals listed in Section 10.3.

11

 

          (2) Rights. During the Restriction Period, a Participant receiving a
Restricted Stock Unit Award will not have, with respect to the Restricted Stock Unit, any
of the rights of a shareholder of the Company.

          (3) Forfeiture. Unless otherwise specifically provided in the Award
Agreement, all Restricted Stock Units will be forfeited if the Participant Terminates
Employment before the end of the Restriction Period or if applicable terms and conditions
have not been met at the end of the Restriction Period.

          (4) Settlement. On the day when all terms and conditions imposed on the
Restricted Stock Unit Award and specified in the Award Agreement have been met at the end
of the Restriction Period, the Committee, in its discretion, will issue (as soon as
practicable) unlegended certificates (or other representation of title) for Common Shares
equal to the number of Restricted Stock Units to be settled, redeem the Restricted Stock
Units for cash equal to the Fair Market Value (as of the last day of the Restriction
Period) of the Restricted Stock Units being settled or deliver any combination of
unlegended certificates or cash to the Participant having an aggregate value equal to the
Restricted Stock Units being settled.

ARTICLE IX

PERFORMANCE UNITS

     9.1 Grant of Performance Units. Except as provided in Section 4.4, the Committee may
grant Performance Units at any time during the term of the Plan. 

     9.2 Terms and Conditions. The Committee may, in its discretion, grant Performance
Units to Participants. Performance Units may be subject to any terms and conditions, including
vesting, that the Committee specifies in the Award Agreement and to the terms of the Plan.
Performance Units may constitute Performance-Based Awards, as described in Article X. The Award
Agreement will state the form in which the Performance Unit is to be settled and when the
Performance Unit will be settled. Common Shares issued through a Performance Unit Award may be
issued with or without payment by the Participant as required by applicable law or any other
consideration specified by the Committee.

     9.3 Settling Performance Units. One Common Share will be issued for each Performance
Unit to be settled unless the Award Agreement provides for settlement in cash or partially in cash
and partially in Common Shares. If all or part of any Performance Unit Award is to be settled in
cash, the amount distributed will be the Fair Market Value (as of the settlement date specified in
the Award Agreement) of the number of Common Shares that otherwise would have been distributed to
settle the Performance Unit.

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     9.4 Forfeiture. Unless otherwise specifically provided in the Award Agreement, all
Performance Units will be forfeited if the Participant Terminates Employment before meeting all
applicable terms and conditions.

ARTICLE X

PERFORMANCE-BASED AWARDS

     10.1 Grant of Performance-Based Awards. Any Award may be granted in a form that
qualifies as “performance based compensation” as defined under Code §162(m). As determined by the
Committee, in its sole discretion, either the granting or vesting of Performance-Based Awards will
be based on achieving one or more (or any combination of) performance objectives derived from the
criteria listed below over the Performance Period established by the Committee.

     10.2 Establishing Objectives. With respect to Performance-Based Awards, the Committee
will establish in writing the performance objectives to be applied and the Performance Period over
which their achievement will be measured, the method for computing the value of the Award that may
be earned if (and to the extent that) those performance objectives are met and the Participants or
class of Participants to which the performance objectives apply. Performance objectives will be
established in writing no later than 90 days after the beginning of the applicable Performance
Period (but in no event after 25 percent of the Performance Period has elapsed).

     10.3 Performance Goals. Performance criteria imposed on Performance-Based Awards will
be derived using the accounting principles generally accepted in the United States of America and
will be reported or appear in the Company’s periodic filings with the Securities Exchange
Commission (including Forms 10-Q and 10-K) or the Company’s annual report to shareholders and will
be derived from one or more (or any combination of one or more) of the following:

          (1) Income (Loss) per common share from continuing operations; or

          (2) Income (Loss) per common share from income; or

          (3) Operating profit (loss), Operating income (loss), or Income (Loss) from operations
(as the case may be); or

          (4) Income (Loss) from continuing operations before unusual or infrequent items; or

          (5) Income (Loss) from continuing operations; or

          (6) Income (Loss) from continuing operations before income taxes; or

          (7) Income (Loss) from continuing operations before extraordinary item and/or
cumulative effect of a change in accounting principle (as the case may be); or

13

 

          (8) Income (Loss) before extraordinary item and/or cumulative effect of a change in
accounting principle (as the case may be); or

          (9) Net income (loss); or

          (10) Income (Loss) before other comprehensive income (loss); or

          (11) Comprehensive income (loss); or

          (12) Income (Loss) before interest and income taxes (sometimes referred to as “EBIT”);
or

          (13) Income (Loss) before interest, income taxes, depreciation and amortization
(sometimes referred to as “EBITDA”); or

          (14) Any other objective and specific income (loss) category or non-GAAP financial
measure that appears as a line item in the Company’s periodic filings with the Securities
and Exchange Commission or the annual report to shareholders; or

          (15) Any of items (3) through (14) on a weighted average common shares outstanding
basis; or

          (16) Any of items (1) through (14) on a diluted basis as defined in the Financial
Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards (“SFAS”)
No. 128 including authoritative interpretations or amendments thereof which may be issued
from time to time as long as such interpretations or amendments are utilized on the
consolidated statements of operations or statement of operations, as applicable, or in the
notes to the consolidated financial statements; or

          (17) Common stock price; or

          (18) Total shareholder return expressed on a dollar or percentage basis as is
customarily disclosed in the proxy statement accompanying the notice of annual meetings of
shareholders; or

          (19) Percentage increase in comparable store sales; or

          (20) Gross profit (loss) or gross margin (loss) (as the case may be); or

          (21) Economic value added; or

          (22) Any of items (1) through (21) with respect to any subsidiary, Affiliate, business
unit, business group, business venture or legal entity, including any combination thereof,
or controlled directly or indirectly by the Company whether or not such information is
included in the Company’s annual report to shareholders, proxy statement or notice of
annual meeting of shareholders; or

14

 

          (23) Any of items (1) through (21) above may be determined before or after a minority
interest’s share as designated by the Committee; or

          (24) Any of items (1) through (21) above with respect to the period of service to
which the performance goal relates whether or not such information is included in the
Company’s periodic filings, annual report to shareholders, proxy statement or notice of
annual meetings of shareholders; or

          (25) Total shareholder return ranking position meaning the relative placement of the
Company’s total shareholder return [as determined in (18) above] compared to those publicly
held companies in the Company’s peer group as established by the Committee prior to the
beginning of a vesting period or such later date as permitted under the Code. The peer
group shall be comprised of not less than eight and not more than sixteen companies,
including the Company.

          (26) With respect to items (1), (2), (15) and (16) above, other terminology may be
used for “income (loss) per common share” (such as “Basic EPS,” “earnings per common
share,” “diluted EPS,” or “earnings per common share-assuming dilution”) as contemplated by
SFAS No. 128, as amended, revised or superseded;

The Committee in its sole discretion, in setting the performance goals in the time prescribed in
Section 10.2 may provide for the making of equitable adjustments (including the income tax effects
attributable thereto), singularly or in combination, to the goals/targets in recognition of unusual
or non-recurring events or transactions for the following qualifying objective items:

          (27) Asset impairments as described in SFAS No. 144, as amended, revised or
superseded; or

          (28) Costs associated with exit or disposal activities as described by SFAS No. 146,
as amended, revised or superseded; or

          (29) Amortization costs associated with the acquisition of goodwill or other
intangible assets, as described by SFAS No. 142, as amended, revised or superseded; or

          (30) Merger integration costs; or

          (31) Merger transaction costs; or

          (32) Any profit or loss attributable to the business operations of a reportable
segment as described by SFAS No. 131 as amended, revised or superseded; or

          (33) Any profit or loss attributable to a reportable segment as described by SFAS No.
131, as amended, revised or superseded or an entity or entities acquired during the period
of service to which the performance goal relates; or

15

 

          (34) Tax settlements; or

          (35) Any extraordinary item, event or transaction as described in Accounting
Principles Board Opinion (“APB”) No. 30, as amended, revised or superseded; or

          (36) Any unusual in nature, or infrequent in occurrence items, events or transactions
(that are not “extraordinary” items) as described in APB No. 30, as amended, revised or
superseded; or

          (37) Any other non-recurring items or other non-GAAP financial measures (not otherwise
listed); or

          (38) Any change in accounting as described in APB No. 20, as amended, revised or
superseded; or

          (39) Unrealized gains or losses on investments in debt and equity securities as
described in SFAS No. 115, as amended, revised or superseded; or

          (40) Any gain or loss recognized as a result of derivative instrument transactions or
other hedging activities as described in SFAS No. 133, as amended, revised or superseded;
or

          (41) Stock-based compensation charges as described in SFAS No. 123, as amended,
revised or superseded; or

          (42) Any gain or loss as reported as a component of other comprehensive income as
described in SFAS No. 130, as amended, revised or superseded; or

          (43) Any gain or loss as a result of a direct or indirect guarantee, as described in
FASB Interpretations (“FIN”) No. 45, as amended, revised or superseded; or

          (44) Any gain or loss as the result of the consolidation of a variable interest entity
as described in FIN No. 46, as amended, revised or superseded; or

          (45) Any gain or loss as a result of litigation or lawsuit settlement (including class
action lawsuits); or

          (46) Any charges associated with the early retirement of debt obligations.

     10.4 Certification of Performance Goals. Any Award intended to qualify as
“performance based compensation” as defined under Code §162(m) shall not be paid until the
Committee certifies in writing that the performance goals and any other material terms were in fact
satisfied. In the manner required by Code §162(m), the Committee shall, promptly after the date on
which the necessary financial and other information for a

16

 

particular Performance Period becomes available, certify the extent to which performance goals
have been achieved with respect to any Award intended to qualify as “performance-based
compensation” under Code §162(m). In addition, the Committee may, in its discretion, reduce or
eliminate the amount of any Award payable to any Participant, based on such factors as the
Committee may deem relevant.

     10.5 Limitation on Awards. The following limits, which are subject to automatic
adjustment under Section 4.7, will apply to Performance-Based Awards:

          (1) In no event may the number of Restricted Stock shares awarded to any Covered
Employee for any fiscal year exceed 2,000,000 Common Shares.

          (2) During any three consecutive calendar-year period, the maximum number of Common
Shares for which Options and SARs, in the aggregate, may be granted to any Covered Employee
may not exceed 3,000,000 Common Shares. If an Option is cancelled, the cancelled Option
continues to be counted against the maximum number of shares for which Options may be
granted to the Covered Employee under the Plan.

          (3) For Performance Unit Awards that are intended to be “performance-based
compensation” [as that term is used in Code §162(m)[, no more than $6,000,000 may be
subject to such Awards granted to any Covered Employee during any three consecutive
calendar-year period.

ARTICLE XI

CHANGE IN CONTROL PROVISIONS

     11.1 Impact of Event. Notwithstanding any other provision of the Plan to the contrary
and unless otherwise specifically provided in an Award Agreement, in the event of a Change in
Control:

          (1) Any Options and SARs outstanding as of the date of such Change in Control and not
then exercisable shall become fully exercisable to the full extent of the original grant;

          (2) All remaining Restriction Periods shall be accelerated and any remaining
restrictions applicable to any Restricted Stock Awards shall lapse and such Restricted
Stock shall become free of all restrictions and become fully vested and transferable to the
full extent of the original grant;

          (3) All remaining Restriction Periods shall be accelerated and any remaining
restrictions applicable to any Restricted Stock Unit shall lapse and such Restricted Stock
Unit shall become free of all restrictions and become fully vested and transferable to the
full extent of the original grant (i.e., the Restriction Period shall lapse); and

17

 

          (4) Any performance goal or other condition with respect to any Performance Units
shall be deemed to have been satisfied in full, and the Common Shares or cash subject to
such Award shall be fully distributable.

     11.2 Effect of Code §280G. Except as otherwise provided in the Award Agreement or any
other written agreement between the Participant and the Company or any Affiliate in effect on the
date of the Change in Control, if the sum (or value) due under Section 11.1 that are
characterizable as parachute payments, when combined with other parachute payments attributable to
the same Change in Control, constitute “excess parachute payments” as defined in Code §280G(b)(1),
the entity responsible for making those payments or its successor or successors (collectively,
“Payor”) will reduce the Participant’s benefits under this Plan by the smaller of (1) the value of
the sum or the value of the payments due under Section 11.1 or (2) the amount necessary to ensure
that the Participant’s total “parachute payment” as defined in Code §280G(b)(2)(A) under this and
all other agreements will be $1.00 less than the amount that would generate an excise tax under
Code §4999. If the reduction described in the preceding sentence applies, within 10 business days
of the effective date of the event generating the payments, the Payor will apprise the Participant
of the amount of the reduction (“Notice of Reduction”). Within 10 business days of receiving that
information, the Participant may specify how (and against which benefit or payment source,
including benefits and payment sources other than this Agreement) the reduction is to be applied
(“Notice of Allocation”). The Payor will be required to implement these directions within 10
business days of receiving the Notice of Allocation. If the Payor has not received a Notice of
Allocation from the Participant within 10 business days of the date of the Notice of Reduction or
if the allocation provided in the Notice of Allocation is not sufficient to fully implement the
reduction described in this section, the Payor will apply the reduction described in this section
proportionately based on the amounts otherwise payable under Section 11.1 or, if a Notice of
Allocation has been returned that does not sufficiently implement the reduction described in this
section, on the basis of the reductions specified in the Notice of Allocation.

ARTICLE XII

PROVISIONS APPLICABLE TO COMMON SHARES ACQUIRED UNDER THIS PLAN

     Except to the extent required by applicable securities laws, none of the Company, an Affiliate
or the Committee shall have any duty or obligation to affirmatively disclose material information
to a record or beneficial holder of Common Shares or an Award, and such holder shall have no right
to be advised of any material information regarding the Company or any Affiliate at any time prior
to, upon or in connection with receipt or the exercise or distribution of an Award. The Company
makes no representation or warranty as to the future value of the Common Shares that may be issued
or acquired under of the Plan.

18

 

ARTICLE XIII

MISCELLANEOUS

     13.1 Amendment, Alteration and Termination. The Board may amend, alter or terminate
the Plan at any time, but no amendment, alteration or termination shall be made which would impair
the rights of a Participant under an Award theretofore granted without the Participant’s consent.
Notwithstanding the immediately preceding sentence, an amendment may be made to (1) cause the Plan
to comply with applicable law (including, but not limited to, any changes needed to comply with
Code §409A), (2) permit the Company, or an Affiliate a tax deduction under applicable law, or (3)
avoid an expense charge to the Company or an Affiliate. The Committee may amend, alter or
terminate any Award Agreement prospectively or retroactively, on the same conditions and limits
(and exceptions to limitations) that apply to the Board and further subject to any approval or
limitations the Board may impose. Notwithstanding the foregoing, any material amendments to the
Plan or any Award Agreement shall require shareholder approval to the extent required by the rules
of the New York Stock Exchange or other national securities exchange or market that regulates the
securities of the Company.

     13.2 Unfunded Status of Plan. It is intended that the Plan be an “unfunded” plan for
incentive compensation. The Committee may authorize the creation of trusts or other arrangements
to meet the obligations created under the Plan to deliver Common Shares or make payments; provided,
however, that, unless the Committee otherwise determines, the existence of such trusts or other
arrangements is consistent with the “unfunded” status of the Plan.

     13.3 No Additional Obligation. Nothing contained in the Plan shall prevent the
Company or an Affiliate from adopting other or additional compensation or benefit arrangements for
its employees.

     13.4 Withholding. As soon as practicable after the date as of which the amount first
becomes includible in the gross income of the Participant (but no later than the last business day
of the calendar quarter during which the amount first becomes includible in gross income), the
Participant shall pay to the Company or an Affiliate (or other entity identified by the Committee),
or make arrangements satisfactory to the Company or other entity identified by the Committee
regarding the payment of any federal, state, or local taxes of any kind (including any employment
taxes) required by law to be withheld with respect to such income. The obligations of the Company
under the Plan shall be conditional on such payment or arrangements, and the Company and its
Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any
payment otherwise due to the Participant. Subject to approval by the Committee, a Participant may
elect to have such tax withholding obligation satisfied, in whole or in part, by (1) authorizing
the Company to withhold from the Common Shares to be issued pursuant to any Award a number of
Common Shares with an aggregate Fair Market Value (as of the date the withholding is effected) that
would satisfy the required statutory minimum (but no more than such required minimum) with respect
to the Company’s withholding obligation or (2) transferring to the Company Common Shares owned by
the Participant

19

 

with an aggregate Fair Market Value (as of the date the withholding is effected) that would
satisfy the required statutory minimum (but no more than such required minimum) with respect to the
Company’s withholding obligation.

     13.5 Controlling Law. The Plan and all Awards made and actions taken thereunder shall
be governed by and construed in accordance with the laws of Ohio (other than its law respecting
choice of laws). The Plan shall be construed to comply with all applicable law and to avoid
liability (other than a liability expressly assumed under the Plan or an Award Agreement) to the
Company, an Affiliate or a Participant. In the event of litigation arising in connection with
actions under the Plan, the parties to such litigation shall submit to the jurisdiction of courts
located in Franklin County, Ohio or to the federal district court that encompasses that county.

     13.6 Offset. Any amounts owed to the Company or an Affiliate by the Participant of
whatever nature may be offset by the Company from the value of any Award to be transferred to the
Participant, and no Common Shares, cash or other thing of value under this Plan or an Award
Agreement shall be transferred unless and until all disputes between the Company and the
Participant have been fully and finally resolved and the Participant has waived all claims to such
against the Company or an Affiliate. However, no waiver of any liability (or the right to apply
the offset described in this section) may be inferred because the Company pays an Award to a
Participant with an outstanding liability owed to the Company or an Affiliate.

     13.7 Nontransferability; Beneficiaries. No Award or Common Shares subject to an Award
shall be assignable or transferable by the Participant otherwise than by will or the laws of
descent and distribution or pursuant to a beneficiary designation, and Awards shall be exercisable
during the Participant’s lifetime only by the Participant (or by the Participant’s legal
representatives in the event of the Participant’s incapacity). Each Participant may designate a
Beneficiary to exercise any Option or SAR or receive any Award held by the Participant at the time
of the Participant’s death or to be assigned any other Award outstanding at the time of the
Participant’s death. No Award or Common Shares subject to an Award shall be subject to the debts
of a Participant or Beneficiary or subject to attachment or execution or process in any court
action or proceeding unless otherwise provided in this Plan. If a deceased Participant has named
no Beneficiary, any Award held by the Participant at the time of death shall be transferred as
provided in his or her will or by the applicable laws of descent and distribution. Except in the
case of the Participant’s incapacity, only the Participant may exercise an Option or SAR.

     13.8 No Rights with Respect to Continuance of Employment. Nothing contained herein
shall be deemed to alter the relationship between the Company or an Affiliate and a Participant, or
the contractual relationship between a Participant and the Company or an Affiliate if there is a
written contract regarding such relationship. Nothing contained herein shall be construed to
constitute a contract of employment between the Company or an Affiliate and a Participant. The
Company or an Affiliate and each of the Participants continue to have the right to terminate the
employment or service relationship at any time for any reason, except as provided in a written
contract. The

20

 

Company or an Affiliate shall have no obligation to retain the Participant in its employ or
service as a result of this Plan. There shall be no inference as to the length of employment or
service hereby, and the Company or an Affiliate reserves the same rights to terminate the
Participant’s employment or service as existed prior to the individual becoming a Participant in
this Plan.

     13.9 Awards in Substitution for Awards Granted by Other Corporations. Awards
may be granted under the Plan from time to time in substitution for awards held by employees,
directors or service providers of other corporations who are about to become officers or employees
of the Company or an Affiliate (and will be eligible to be Participants) as the result of a
transaction described in Code §424. The terms and conditions of the Awards so granted may vary
from the terms and conditions set forth in this Plan at the time of such grant as the majority of
the members of the Committee may deem appropriate to conform, in whole or in part, to the
provisions of the awards in substitution for which they are granted and to ensure that the
requirements imposed under Code §§409A and 424 are met.

     13.10 Delivery of Stock Certificates. To the extent the Company uses certificates to
represent Common Shares, certificates to be delivered to Participants under this Plan shall be
deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall
have placed such certificates in the United States mail, addressed to the Participant, at the
Participant’s last known address on file with the Company. Any reference in this section or
elsewhere in the Plan or an Award Agreement to actual stock certificates and/or the delivery of
actual stock certificates shall be deemed satisfied by the electronic record-keeping and electronic
delivery of Common Shares or other mechanism then utilized by the Company and its agents for
reflecting ownership of such Common Shares.

     13.11 Indemnification. To the maximum extent permitted under the Company’s Articles
of Incorporation and Code of Regulations, each person who is or shall have been a member of the
Committee, or of the Board, shall be indemnified and held harmless by the Company against and from
(1) any loss, cost, liability or expense (including attorneys’ fees) that may be imposed upon or
reasonably incurred by him or her in connection with or resulting from any claim, action, suit or
proceeding to which he or she may be a party or in which he or she may be involved by reason of any
action taken or failure to act under this Plan or any Award Agreement, and (2) from any and all
amounts paid by him or her in settlement thereof, with the Company’s prior written approval, or
paid by him or her in satisfaction of any judgment in any such claim, action, suit or proceeding
against him or her; provided, however, that he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to handle and defend it on
his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company’s Articles of
Incorporation or Code of Regulations, by contract, as a matter of law, or otherwise, or under any
power that the Company may have to indemnify them or hold them harmless.

21

 

     13.12 No Fractional Shares. No fractional Common Shares shall be issued or delivered
under the Plan or any Award granted hereunder, provided that the Committee, in its sole discretion,
may round fractional shares down to the nearest whole share or settle fractional shares in cash.

     13.13 Severability. If any provision of this Plan shall for any reason be held to be
invalid or unenforceable, such invalidity or unenforceability shall not effect any other provision
hereof, and this Plan shall be construed as if such invalid or unenforceable provision were
omitted.

     13.14 Successors and Assigns. This Plan shall inure to the benefit of and be binding
upon each successor and assign of the Company. All obligations imposed upon a Participant, and all
rights granted to the Company hereunder, shall be binding upon the Participant’s heirs, legal
representatives and successors.

     13.15 Entire Agreement. Except as expressly provided otherwise, this Plan and any
Award Agreement constitute the entire agreement with respect to the subject matter hereof and
thereof, provided that in the event of any inconsistency between the Plan and any Award Agreement,
the terms and conditions of this Plan shall control.

     13.16 Term. No Award shall be granted under the Plan after May 16, 2012.

     13.17 Application of Section 83(b). At the Committee’s discretion, any Participant
may make an early inclusion election under Code §83(b) but only by complying with procedures
developed by the Committee and rules issued under Code §83(b).

     13.18 Headings. The headings of the Articles and their subparts contained in this
Plan are for the convenience of reading and reference purposes only and shall not affect the
meaning, interpretation or be meant to be of substantive significance of this Plan.

22

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