Document:

exv10w10

Exhibit 10.10

OFFICER INDEMNIFICATION AGREEMENT

     This Officer Indemnification Agreement, dated as of [date], 2010 (this “Agreement”), is
made by and between Alon Brands, Inc., a Delaware corporation (the “Company”), and [name]
(“Indemnitee”).

RECITALS:

     A. Section 141 of the Delaware General Corporation Law provides that the business and affairs
of a corporation shall be managed by or under the direction of its board of directors.

     B. Pursuant to Sections 141 and 142 of the Delaware General Corporation Law, significant
authority with respect to the management of the Company has been delegated to the officers of the
Company.

     C. By virtue of the managerial prerogatives vested in the officers of a Delaware corporation,
officers act as fiduciaries of the corporation and its stockholders.

     D. Thus, it is critically important to the Company and its stockholders that the Company be
able to attract and retain the most capable persons reasonably available to serve as officers of
the Company.

     E. In recognition of the need for corporations to be able to induce capable and responsible
persons to accept positions in corporate management, Delaware law authorizes (and in some instances
requires) corporations to indemnify their directors and officers, and further authorizes
corporations to purchase and maintain insurance for the benefit of their directors and officers.

     F. The Delaware courts have recognized that indemnification by a corporation serves the dual
policies of (1) allowing corporate officials to resist unjustified lawsuits, secure in the
knowledge that, if vindicated, the corporation will bear the expense of litigation and (2)
encouraging capable women and men to serve as corporate directors and officers, secure in the
knowledge that the corporation will absorb the costs of defending their honesty and integrity.

     G. The number of lawsuits challenging the judgment and actions of officers of Delaware
corporations, the costs of defending those lawsuits, and the threat to officers’ personal assets
have all materially increased over the past several years, chilling the willingness of capable
women and men to undertake the responsibilities imposed on corporate officers

     H. Under Delaware law, an officer’s right to be reimbursed for the costs of defense of
criminal actions, whether such claims are asserted under state or federal law, does not depend upon
the merits of the claims asserted against the officer and is separate and distinct from any right
to indemnification the officer may be able to establish, and indemnification of the officer against
criminal fines and penalties is permitted if the officer satisfies the applicable standard of
conduct.

     I. Indemnitee is an officer of the Company and [his/her] willingness to serve in such capacity
is predicated, in substantial part, upon the Company’s willingness to indemnify

 

 

[him/her] in accordance with the principles reflected above, to the fullest extent
permitted by the laws of the State of Delaware, and upon the other undertakings set forth in this
Agreement.

     J. Therefore, in recognition of the need to provide Indemnitee with substantial protection
against personal liability, in order to procure Indemnitee’s continued service as an officer of the
Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in
order to provide such protection pursuant to express contract rights (intended to be enforceable
irrespective of, among other things, any amendment to the Company’s certificate of incorporation or
bylaws (collectively, the “Constituent Documents”), any change in the composition of the Company’s
Board of Directors (the “Board”) or any change-in-control or business combination transaction
relating to the Company), the Company wishes to provide in this Agreement for the indemnification
of and the advancement of Expenses (as defined in Section 1(e)) to Indemnitee as set forth in this
Agreement and for the continued coverage of Indemnitee under the Company’s directors’ and officers’
liability insurance policies.

     K. In light of the considerations referred to in the preceding recitals, it is the Company’s
intention and desire that the provisions of this Agreement be construed liberally, subject to their
express terms, to maximize the protections to be provided to Indemnitee hereunder.

AGREEMENT:

     NOW, THEREFORE, the parties hereby agree as follows:

     1. Certain Definitions. In addition to terms defined elsewhere herein, the following terms
have the following meanings when used in this Agreement with initial capital letters:

          (a) “Change in Control” means the occurrence after the date of this Agreement of any of the
following events:

               (i) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 20% or more of the combined voting power of the
then-outstanding Voting Stock of the Company; provided, however, that:

                    (A) for purposes of this Section 1(a)(i), the following acquisitions shall not constitute a
Change in Control: (1) any acquisition of Voting Stock of the Company directly from the Company
that is approved by a majority of the Incumbent Directors, (2) any acquisition of Voting Stock of
the Company by the Company or any Subsidiary, (3) any acquisition of Voting Stock of the Company by
any employee benefit plan (or related trust) sponsored or maintained by the Company or any
Subsidiary, and (4) any acquisition of Voting Stock of the Company by any Person pursuant to a
Business Combination that complies with clauses (A), (B) and (C) of Section 1(a)(iii) below;

                    (B) if any Person acquires beneficial ownership of 20% or more of combined voting power of the
then-outstanding Voting Stock of the Company as a result of a transaction described in clause
(A)(1) of Section 1(a)(i) and such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company representing 1%

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or more of the then-outstanding Voting Stock of the Company, other than in an acquisition
directly from the Company that is approved by a majority of the Incumbent Directors or other than
as a result of a stock dividend, stock split or similar transaction effected by the Company in
which all holders of Voting Stock are treated equally, such subsequent acquisition shall be deemed
to constitute a Change in Control;

                    (C) a Change in Control will not be deemed to have occurred if a Person acquires beneficial
ownership of 20% or more of the Voting Stock of the Company as a result of a reduction in the
number of shares of Voting Stock of the Company outstanding unless and until such Person thereafter
becomes the beneficial owner of any additional shares of Voting Stock of the Company representing
1% or more of the then-outstanding Voting Stock of the Company, other than in an acquisition
directly from the Company that is approved by a majority of the Incumbent Directors or other than
as a result of a stock dividend, stock split or similar transaction effected by the Company in
which all holders of Voting Stock are treated equally; and

                    (D) if at least a majority of the Incumbent Directors determines in good faith that a Person
has acquired beneficial ownership of 20% or more of the Voting Stock of the Company inadvertently,
and such Person divests as promptly as practicable a sufficient number of shares so that such
Person beneficially owns less than 20% of the Voting Stock of the Company, then no Change in
Control shall have occurred as a result of such Person’s acquisition; or

               (ii) a majority of the Directors are not Incumbent Directors; or

               (iii) the consummation of a reorganization, merger or consolidation, or sale or other
disposition of all or substantially all of the assets of the Company or the acquisition of assets
of another corporation, or other transaction (each, a “Business Combination”), unless, in each
case, immediately following such Business Combination (A) all or substantially all of the
individuals and entities who were the beneficial owners of Voting Stock of the Company immediately
prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the
combined voting power of the then outstanding shares of Voting Stock of the entity resulting from
such Business Combination (including an entity which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or through one or more
subsidiaries), (B) no Person (other than the Company, such entity resulting from such Business
Combination, or any employee benefit plan (or related trust) sponsored or maintained by the
Company, any Subsidiary or such entity resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of the combined voting power of the then outstanding shares of
Voting Stock of the entity resulting from such Business Combination, and (C) at least a majority of
the members of the Board of Directors of the entity resulting from such Business Combination were
Incumbent Directors at the time of the execution of the initial agreement or of the action of the
Board providing for such Business Combination; or

               (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of
the Company, except pursuant to a Business Combination that complies with clauses (A), (B) and (C)
of Section 1(a)(iii).

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               (v) For purposes of this Section 1(a) and as used elsewhere in this Agreement, the following
terms shall have the following meanings:

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

                    (B) “Incumbent Directors” means the individuals who, as of the date hereof, are Directors of
the Company and any individual becoming a Director subsequent to the date hereof whose election,
nomination for election by the Company’s stockholders, or appointment, was approved by a vote of at
least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for director, without
objection to such nomination); provided, however, that an individual shall not be an Incumbent
Director if such individual’s election or appointment to the Board occurs as a result of an actual
or threatened election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to
the election or removal of Directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board.

                    (C) “Subsidiary” means an entity in which the Company directly or indirectly beneficially owns
50% or more of the outstanding Voting Stock.

                    (D) “Voting Stock” means securities entitled to vote generally in the election of directors
(or similar governing bodies).

          (b) “Claim” means (i) any threatened, asserted, pending or completed claim, demand, action,
suit or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other,
and whether made pursuant to federal, state or other law; and (ii) any threatened, pending or
completed inquiry or investigation, whether made, instituted or conducted by the Company or any
other person, including any federal, state or other governmental entity, that Indemnitee determines
might lead to the institution of any such claim, demand, action, suit or proceeding.

          (c) “Controlled Affiliate” means any corporation, limited liability company, partnership,
joint venture, trust or other entity or enterprise, whether or not for profit, that is directly or
indirectly controlled by the Company. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of an entity or enterprise, whether through the ownership of voting securities, through
other voting rights, by contract or otherwise; provided that direct or indirect beneficial
ownership of capital stock or other interests in an entity or enterprise entitling the holder to
cast 20% or more of the total number of votes generally entitled to be cast in the election of
directors (or persons performing comparable functions) of such entity or enterprise shall be deemed
to constitute control for purposes of this definition.

          (d) “Disinterested Director” means a director of the Company who is not and was not a party to
the Claim in respect of which indemnification is sought by Indemnitee.

          (e) “Expenses” means attorneys’ and experts’ fees and expenses and all other costs and
expenses actually and reasonably paid or payable in connection with investigating,

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defending, being a witness in or participating in (including on appeal), or preparing to
investigate, defend, be a witness in or participate in (including on appeal), any Claim.

          (f) “Indemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any
actual, alleged or suspected act or failure to act by Indemnitee in [his/her] capacity as a
director, officer, employee or agent of the Company or as a director, officer, employee, member,
manager, trustee or agent of any other corporation, limited liability company, partnership, joint
venture, trust or other entity or enterprise, whether or not for profit, as to which Indemnitee is
or was serving at the request of the Company as a director, officer, employee, member, manager,
trustee or agent, (ii) any actual, alleged or suspected act or failure to act by Indemnitee in
respect of any business, transaction, communication, filing, disclosure or other activity of the
Company or any other entity or enterprise referred to in clause (i) of this sentence, or (iii)
Indemnitee’s status as a current or former director, officer, employee or agent of the Company or
as a current or former director, officer, employee, member, manager, trustee or agent of the
Company or any other entity or enterprise referred to in clause (i) of this sentence or any actual,
alleged or suspected act or failure to act by Indemnitee in connection with any obligation or
restriction imposed upon Indemnitee by reason of such status. In addition to any service at the
actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be
serving or to have served at the request of the Company as a director, officer, employee, member,
manager, trustee or agent of another entity or enterprise if Indemnitee is or was serving as a
director, officer, employee, member, manager, trustee or agent of such entity or enterprise and (i)
such entity or enterprise is or at the time of such service was a Controlled Affiliate, (ii) such
entity or enterprise is or at the time of such service was an employee benefit plan (or related
trust) sponsored or maintained by the Company or a Controlled Affiliate, or (iii) the Company or a
Controlled Affiliate directly or indirectly caused or authorized Indemnitee to be nominated,
elected, appointed, designated, employed, engaged or selected to serve in such capacity.

          (g) “Indemnifiable Losses” means any and all Losses relating to, arising out of or resulting
from any Indemnifiable Claim.

          (h) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent: (i) the Company (or any Subsidiary) or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or
of other indemnitees under similar indemnification agreements), or (ii) any other named (or, as to
a threatened matter, reasonably likely to be named) party to the Indemnifiable Claim giving rise to
a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or Indemnitee
in an action to determine Indemnitee’s rights under this Agreement.

          (i) “Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines,
penalties (whether civil, criminal or other) and amounts paid in settlement, including all
interest, assessments and other charges paid or payable in connection with or in respect of any of
the foregoing.

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     2. Indemnification Obligation. Subject to Section 7, the Company shall indemnify, defend and
hold harmless Indemnitee, to the fullest extent permitted or required by the laws of the State of
Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to
increase the scope of such permitted indemnification, against any and all Indemnifiable Claims and
Indemnifiable Losses; provided, however, that, except as provided in Sections 4 and 20, Indemnitee
shall not be entitled to indemnification pursuant to this Agreement in connection with any Claim
initiated by Indemnitee against the Company or any director or officer of the Company unless the
Company has joined in or consented to the initiation of such Claim.

     3. Advancement of Expenses. Indemnitee shall have the right to advancement by the Company
prior to the final disposition of any Indemnifiable Claim of any and all Expenses relating to,
arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee or which
Indemnitee determines are reasonably likely to be paid or incurred by Indemnitee. Indemnitee’s
right to such advancement is not subject to the satisfaction of any standard of conduct. Without
limiting the generality or effect of the foregoing, within five business days after any request by
Indemnitee, the Company shall, in accordance with such request (but without duplication), (a) pay
such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to
pay such Expenses, or (c) reimburse Indemnitee for such Expenses; provided that Indemnitee shall
repay, without interest any amounts actually advanced to Indemnitee that, at the final disposition
of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or payable
by Indemnitee in respect of Expenses relating to, arising out of or resulting from such
Indemnifiable Claim. In connection with any such payment, advancement or reimbursement, Indemnitee
shall execute and deliver to the Company an undertaking in the form attached hereto as Exhibit A
(subject to Indemnitee filling in the blanks therein and selecting from among the bracketed
alternatives therein), which need not be secured and shall be accepted without reference to
Indemnitee’s ability to repay the Expenses. In no event shall Indemnitee’s right to the payment,
advancement or reimbursement of Expenses pursuant to this Section 3 be conditioned upon any
undertaking that is less favorable to Indemnitee than, or that is in addition to, the undertaking
set forth in Exhibit A.

     4. Indemnification for Additional Expenses. Without limiting the generality or effect of the
foregoing, the Company shall indemnify and hold harmless Indemnitee against and, if requested by
Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within five business days of
such request, any and all Expenses paid or incurred by Indemnitee or which Indemnitee determines
are reasonably likely to be paid or incurred by Indemnitee in connection with any Claim made,
instituted or conducted by Indemnitee for (a) indemnification or reimbursement or advance payment
of Expenses by the Company under any provision of this Agreement, or under any other agreement or
provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims,
and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by
the Company, provided that Indemnitee shall return, without interest, any such advance of Expenses
(or portion thereof) which remains unspent at the final disposition of the Claim to which the
advance related.

     5. Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any Indemnifiable Loss, but not for all of
the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

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     6. Procedure for Notification. To obtain indemnification under this Agreement in respect of
an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the Company a written
request therefor, including a brief description (based upon information then available to
Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss. If, at the time of the receipt of
such request, the Company has directors’ and officers’ liability insurance in effect under which
coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company
shall give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the
applicable insurers in accordance with the procedures set forth in the applicable insurance
policies. The Company shall provide to Indemnitee a copy of such notice delivered to the
applicable insurers, and copies of all subsequent correspondence between the Company and such
insurers regarding the Indemnifiable Claim or Indemnifiable Loss, in each case substantially
concurrently with the delivery or receipt thereof by the Company. The failure by Indemnitee to
timely notify the Company of any Indemnifiable Claim or Indemnifiable Loss shall not relieve the
Company from any liability hereunder unless, and only to the extent that, as a result of such
failure, the Company was deprived of its right to recover any material payment under its applicable
insurance coverage or was otherwise materially prejudiced as a result of such failure.

     7. Determination of Right to Indemnification.

          (a) To the extent that Indemnitee shall have been successful on the merits or otherwise in
defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter
therein, including dismissal without prejudice, Indemnitee shall be indemnified against all
Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in
accordance with Section 2 and no Standard of Conduct Determination (as defined in Section 7(b))
shall be required.

          (b) To the extent that the provisions of Section 7(a) are inapplicable to an Indemnifiable
Claim that shall have been finally disposed of, any determination of whether Indemnitee has
satisfied any applicable standard of conduct under Delaware law that is a legally required
condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses
relating to, arising out of or resulting from such Indemnifiable Claim (a “Standard of Conduct
Determination”) shall be made as follows: (i) if a Change in Control shall not have occurred, or
if a Change in Control shall have occurred but Indemnitee shall have requested that the Standard of
Conduct Determination be made pursuant to this clause (i), (A) by a majority vote of the
Disinterested Directors, even if less than a quorum of the Board, (B) if such Disinterested
Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a
majority vote of all Disinterested Directors, or (C) if there are no such Disinterested Directors,
by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be
delivered to Indemnitee; and (ii) if a Change in Control shall have occurred and Indemnitee shall
not have requested that the Standard of Conduct Determination be made pursuant to clause (i), by
Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered
to Indemnitee. Indemnitee will cooperate with the person or persons making such Standard of
Conduct Determination, including providing to such person or persons, upon reasonable advance
request, any documentation or information which is not privileged or otherwise protected from
disclosure and which is reasonably available to Indemnitee and reasonably necessary to such
determination. The Company shall indemnify and hold harmless Indemnitee against and, if requested
by Indemnitee, shall reimburse Indemnitee

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for, or advance to Indemnitee, within five business days of such request, any and all costs
and expenses (including attorneys’ and experts’ fees and expenses) incurred by Indemnitee in so
cooperating with the person or persons making such Standard of Conduct Determination.

          (c) The Company shall use its reasonable best efforts to cause any Standard of Conduct
Determination required under Section 7(b) to be made as promptly as practicable. If (i) the person
or persons empowered or selected under Section 7 to make the Standard of Conduct Determination
shall not have made a determination within 30 days after the later of (A) receipt by the Company of
written notice from Indemnitee advising the Company of the final disposition of the applicable
Indemnifiable Claim (the date of such receipt being the “Notification Date”) and (B) if such
determination is to be made by Independent Counsel, the selection of an Independent Counsel that is
permitted under the provisions of Section 7(e) to make such determination and (ii) Indemnitee shall
have fulfilled [his/her] obligations set forth in the second sentence of Section 7(b), then
Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided that such
30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the
person or persons making such determination in good faith requires such additional time for the
obtaining or evaluation or documentation and/or information relating thereto.

          (d) If (i) Indemnitee shall be entitled to indemnification hereunder against any Indemnifiable
Losses pursuant to Section 7(a), (ii) no determination of whether Indemnitee has satisfied any
applicable standard of conduct under Delaware law is a legally required condition precedent to
indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has
been determined or deemed pursuant to Section 7(b) or (c) to have satisfied any applicable standard
of conduct under Delaware law which is a legally required condition precedent to indemnification of
Indemnitee hereunder against any Indemnifiable Losses, then the Company shall pay to Indemnitee,
within five business days after the later of (x) the Notification Date in respect of the
Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which
such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted and (y) the
earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above shall
have been satisfied, an amount equal to the amount of such Indemnifiable Losses.

          (e) If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to
Section 7(b)(i), the Independent Counsel shall be selected by the Board of Directors, and the
Company shall give written notice to Indemnitee advising [him/her] of the identity of the
Independent Counsel so selected. If a Standard of Conduct Determination is to be made by
Independent Counsel pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by
Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of
the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable,
may, within five business days after receiving written notice of selection from the other, deliver
to the other a written objection to such selection; provided, however, that such objection may be
asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria
set forth in the definition of “Independent Counsel” in Section 1(h), and the objection shall set
forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person or firm so selected shall act as Independent Counsel. If such written
objection is properly and timely made and substantiated, (i) the Independent Counsel so selected
may not serve as Independent Counsel unless and until such objection is withdrawn or a

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court has determined that such objection is without merit and (ii) the non-objecting party
may, at its option, select an alternative Independent Counsel and give written notice to the other
party advising such other party of the identity of the alternative Independent Counsel so selected,
in which case the provisions of the two immediately preceding sentences and clause (i) of this
sentence shall apply to such subsequent selection and notice. If applicable, the provisions of
clause (ii) of the immediately preceding sentence shall apply to successive alternative selections.
If no Independent Counsel that is permitted under the foregoing provisions of this Section 7(e) to
make the Standard of Conduct Determination shall have been selected within 30 days after the
Company gives its initial notice pursuant to the first sentence of this Section 7(e) or Indemnitee
gives its initial notice pursuant to the second sentence of this Section 7(e), as the case may be,
either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware for
resolution of any objection which shall have been made by the Company or Indemnitee to the other’s
selection of Independent Counsel and/or for the appointment as Independent Counsel of a person or
firm selected by the Court or by such other person as the Court shall designate, and the person or
firm with respect to whom all objections are so resolved or the person or firm so appointed will
act as Independent Counsel. In all events, the Company shall pay all of the reasonable fees and
expenses of the Independent Counsel incurred in connection with the Independent Counsel’s
determination pursuant to Section 7(b).

     8. Presumption of Entitlement. In making any Standard of Conduct Determination, the person or
persons making such determination shall presume that Indemnitee has satisfied the applicable
standard of conduct, and the Company may overcome such presumption only by its adducing clear and
convincing evidence to the contrary. Any Standard of Conduct Determination that is adverse to
Indemnitee may be challenged by the Indemnitee in the Court of Chancery of the State of Delaware.
No determination by the Company (including by its directors or any Independent Counsel) that
Indemnitee has not satisfied any applicable standard of conduct may be used as a defense to any
such action by Indemnitee or create a presumption that Indemnitee has not met any applicable
standard of conduct.

     9. No Other Presumption. For purposes of this Agreement, the termination of any Claim by
judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea
of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet
any applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

     10. Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other
rights Indemnitee may have under the Constituent Documents, or the substantive laws of the
Company’s jurisdiction of incorporation, any other contract or otherwise (collectively, “Other
Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would
have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be
deemed to have such greater right hereunder and (b) to the extent that any change is made to any
Other Indemnity Provision which permits any greater right to indemnification than that provided
under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right
hereunder. The Company will not adopt any amendment to any of the Constituent Documents the effect
of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this
Agreement or any Other Indemnity Provision.

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     11. Liability Insurance and Funding. For the duration of Indemnitee’s service as a director
and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any
pending or possible Indemnifiable Claim, the Company shall use commercially reasonable efforts
(taking into account the scope and amount of coverage available relative to the cost thereof) to
cause to be maintained in effect policies of directors’ and officers’ liability insurance providing
coverage for directors and/or officers of the Company that is at least substantially comparable in
scope and amount to that provided by the Company’s policies of directors’ and officers’ liability
insurance in force as at the date of this Agreement. The Company shall provide Indemnitee with a
copy of all directors’ and officers’ liability insurance applications, binders, policies,
declarations, endorsements and other related materials, and shall provide Indemnitee with a
reasonable opportunity to review and comment on the same. Without limiting the generality or
effect of the two immediately preceding sentences, the Company shall not discontinue or
significantly reduce the scope or amount of coverage from one policy period to the next (i) without
the prior approval thereof by a majority vote of the Incumbent Directors, even if less than a
quorum, or (ii) if at the time that any such discontinuation or significant reduction in the scope
or amount of coverage is proposed there are no Incumbent Directors, without the prior written
consent of Indemnitee (which consent shall not be unreasonably withheld or delayed). In all
policies of directors’ and officers’ liability insurance obtained by the Company, Indemnitee shall
be named as an insured in such a manner as to provide Indemnitee the same rights and benefits,
subject to the same limitations, as are accorded to the Company’s directors and officers most
favorably insured by such policy. The Company may, but shall not be required to, create a trust
fund, grant a security interest or use other means, including without limitation a letter of
credit, to ensure the payment of such amounts as may be necessary to satisfy its obligations to
indemnify and advance expenses pursuant to this Agreement.

     12. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee
against other persons or entities (other than Indemnitee’s successors), including any entity or
enterprise referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(f).
Indemnitee shall execute all papers reasonably required to evidence such rights (all of
Indemnitee’s reasonable Expenses, including attorneys’ fees and charges, related thereto to be
reimbursed by or, at the option of Indemnitee, advanced by the Company).

     13. No Duplication of Payments. The Company shall not be liable under this Agreement to make
any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has
otherwise actually received payment (net of any Expenses incurred in connection therewith) under
any insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise
(including from any entity or enterprise referred to in clause (i) of the definition of
“Indemnifiable Claim” in Section 1(f)) in respect of such Indemnifiable Losses otherwise
indemnifiable hereunder.

     14. Defense of Claims. The Company shall be entitled to participate in the defense of any
Indemnifiable Claim or to assume the defense thereof, with counsel reasonably satisfactory to the
Indemnitee; provided that if Indemnitee believes, after consultation with counsel selected by
Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present
such counsel with an actual or potential conflict, (b) the named parties in any such Indemnifiable
Claim (including any impleaded parties) include both the Company and Indemnitee and Indemnitee
shall conclude that there may be one or more legal defenses available

10

 

to [him/her] that are different from or in addition to those available to the Company, or (c)
any such representation by such counsel would be precluded under the applicable standards of
professional conduct then prevailing, then Indemnitee shall be entitled to retain separate counsel
(but not more than one law firm plus, if applicable, local counsel in respect of any particular
Indemnifiable Claim) at the Company’s expense. The Company shall not be liable to Indemnitee under
this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable Claim
effected without the Company’s prior written consent. The Company shall not, without the prior
written consent of the Indemnitee, effect any settlement of any threatened or pending Indemnifiable
Claim to which the Indemnitee is, or could have been, a party unless such settlement solely
involves the payment of money and includes a complete and unconditional release of the Indemnitee
from all liability on any claims that are the subject matter of such Indemnifiable Claim. Neither
the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement;
provided that Indemnitee may withhold consent to any settlement that does not provide a complete
and unconditional release of Indemnitee.

     15. Successors and Binding Agreement. (a) The Company shall require any successor (whether
direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or
substantially all of the business or assets of the Company, by agreement in form and substance
satisfactory to Indemnitee and [his/her] counsel, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent the Company would be required to perform if no
such succession had taken place. This Agreement shall be binding upon and inure to the benefit of
the Company and any successor to the Company, including without limitation any person acquiring
directly or indirectly all or substantially all of the business or assets of the Company whether by
purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be
deemed the “Company” for purposes of this Agreement), but shall not otherwise be assignable or
delegatable by the Company.

          (b) This Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, heirs, distributees, legatees and
other successors.

          (c) This Agreement is personal in nature and neither of the parties hereto shall, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 15(a) and 15(b). Without limiting the generality or
effect of the foregoing, Indemnitee’s right to receive payments hereunder shall not be assignable,
whether by pledge, creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted
assignment or transfer contrary to this Section 15(c), the Company shall have no liability to pay
any amount so attempted to be assigned or transferred.

     16. Notices. For all purposes of this Agreement, all communications, including without
limitation notices, consents, requests or approvals, required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given when hand delivered or dispatched
by electronic facsimile transmission (with receipt thereof orally confirmed), or five business days
after having been mailed by United States registered or certified mail, return receipt requested,
postage prepaid or one business day after having been sent for next-day delivery by a nationally
recognized overnight courier service, addressed to the Company (to the attention of the Secretary
of the Company) and to Indemnitee at the applicable address shown on

11

 

the signature page hereto, or to such other address as any party may have furnished to the
other in writing and in accordance herewith, except that notices of changes of address will be
effective only upon receipt.

     17. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by and construed in accordance with the substantive laws of the State
of Delaware, without giving effect to the principles of conflict of laws of such State. The
Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of
the State of Delaware for all purposes in connection with any action or proceeding which arises out
of or relates to this Agreement and agree that any action instituted under this Agreement shall be
brought only in the Chancery Court of the State of Delaware.

     18. Validity. If any provision of this Agreement or the application of any provision hereof
to any person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of
this Agreement and the application of such provision to any other person or circumstance shall not
be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal.
In the event that any court or other adjudicative body shall decline to reform any provision of
this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the
immediately preceding sentence, the parties thereto shall take all such action as may be necessary
or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal
with one or more alternative provisions that effectuate the purpose and intent of the original
provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise
illegal.

     19. Miscellaneous. No provision of this Agreement may be waived, modified or discharged
unless such waiver, modification or discharge is agreed to in writing signed by Indemnitee and the
Company. No waiver by either party hereto at any time of any breach by the other party hereto or
compliance with any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or representations, oral or otherwise, expressed or
implied with respect to the subject matter hereof have been made by either party that are not set
forth expressly in this Agreement.

     20. Legal Fees and Expenses. It is the intent of the Company that Indemnitee not be required
to incur legal fees and/or other Expenses associated with the interpretation, enforcement or
defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and
expense thereof would substantially detract from the benefits intended to be extended to Indemnitee
under this Agreement. Accordingly, without limiting the generality or effect of any other
provision of this Agreement, if it should reasonably appear to Indemnitee that the Company has
failed to comply with any of its obligations under this Agreement or in the event that the Company
or any other person takes or threatens to take any action to declare this Agreement void or
unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to
recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee under this
Agreement, the Company irrevocably authorizes the Indemnitee from time to time to retain counsel of
Indemnitee’s choice, at the expense of the Company as hereafter provided, to advise and represent
Indemnitee in connection with any such interpretation, enforcement or defense, including without
limitation the initiation or defense of

12

 

any litigation or other legal action, whether by or against the Company or any director,
officer, stockholder or other person affiliated with the Company, in any jurisdiction.
Notwithstanding any existing or prior attorney-client relationship between the Company and such
counsel, the Company irrevocably consents to Indemnitee’s entering into an attorney-client
relationship with such counsel, and in that connection the Company and Indemnitee agree that a
confidential relationship shall exist between Indemnitee and such counsel. Without respect to
whether Indemnitee prevails, in whole or in part, in connection with any of the foregoing, the
Company will pay and be solely financially responsible for any and all attorneys’ and related fees
and expenses incurred by Indemnitee in connection with any of the foregoing.

     21. Certain Interpretive Matters. Unless the context of this Agreement otherwise requires,
(a) “it” or “its” or words of any gender include each other gender, (b) words using the singular or
plural number also include the plural or singular number, respectively, (c) the terms “hereof,”
“herein,” “hereby” and derivative or similar words refer to this entire Agreement, (d) references
to “Sections” are references to “Sections” of this Agreement, (e) the terms “include,” “includes”
and “including” will be deemed to be followed by the words “without limitation” (whether or not so
expressed), and (f) the word “or” is disjunctive but not exclusive. Whenever this Agreement refers
to a number of days, such number will refer to calendar days unless business days are specified and
whenever action must be taken (including the giving of notice or the delivery of documents) under
this Agreement during a certain period of time or by a particular date that ends or occurs on a
non-business day, then such period or date will be extended until the immediately following
business day. As used herein, “business day” means any day other than Saturday, Sunday or a United
States federal holiday.

     22. Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original but all of which together shall constitute one and the same
agreement.

[Signatures Appear On Following Page]

13

 

     IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized
representative to execute this Agreement as of the date first above written.

	 	 	 	 	 
	 	ALON BRANDS, INC.

7616 LBJ Freeway, Suite 300

Dallas, Texas 75251

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Name:  	 	 
	 	 	Address: 	 
	 

14

 

EXHIBIT A

UNDERTAKING

     This Undertaking is submitted pursuant to the Officer Indemnification Agreement, dated as of
___________ ___, ____ (the “Indemnification Agreement”), between Alon Brands, Inc., a Delaware
corporation (the “Company”), and the undersigned. Capitalized terms used and not otherwise defined
herein have the meanings ascribed to such terms in the Indemnification Agreement.

     The undersigned hereby requests [payment], [advancement], [reimbursement] by the Company of
Expenses which the undersigned [has incurred] [reasonably expects to incur] in connection with
______________________ (the “Indemnifiable Claim”).

     The undersigned hereby undertakes to repay the [payment], [advancement], [reimbursement] of
Expenses made by the Company to or on behalf of the undersigned in response to the foregoing
request if it is determined, following the final disposition of the Indemnifiable Claim and in
accordance with Section 7 of the Indemnification Agreement, that the undersigned is not entitled to
indemnification by the Company under the Indemnification Agreement with respect to the
Indemnifiable Claim.

     IN WITNESS WHEREOF, the undersigned has executed this Undertaking as of this _____ day of
______________, ___.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	[Indemnitee] 	 
	 	 	 	 
	 

15exv10w11

Exhibit 10.11

FORM OF

ALON BRANDS, INC.

2011 INCENTIVE COMPENSATION PLAN

 

 

ALON BRANDS, INC.

2011 INCENTIVE COMPENSATION PLAN

	 	 	 	 	 	 	 
	SECTION	 	 	PAGE	 
	1.	 	Purpose
	 	 	1	 
	2.	 	Term
	 	 	1	 
	3.	 	Definitions
	 	 	1	 
	4.	 	Shares Available Under Plan
	 	 	5	 
	5.	 	Limitations on Awards
	 	 	6	 
	6.	 	Stock Options
	 	 	6	 
	7.	 	Appreciation Rights
	 	 	8	 
	8.	 	Restricted Shares
	 	 	9	 
	9.	 	Restricted Stock Units
	 	 	10	 
	10.	 	Performance Shares and Performance Units
	 	 	11	 
	11.	 	Senior Executive Plan Bonuses
	 	 	12	 
	12.	 	Awards to Eligible Directors
	 	 	13	 
	13.	 	Other Awards
	 	 	13	 
	14.	 	Transferability
	 	 	14	 
	15.	 	Adjustments
	 	 	14	 
	16.	 	Fractional Shares
	 	 	15	 
	17.	 	Withholding Taxes
	 	 	15	 
	18.	 	Administration of the Plan
	 	 	16	 
	19.	 	Amendments and Other Matters
	 	 	16	 
	20.	 	Governing Law
	 	 	17	 

 

 

ALON BRANDS, INC.

2011 INCENTIVE COMPENSATION PLAN

     Alon Brands, Inc., a Delaware corporation (the “Company”), establishes the Alon Brands, Inc.
2011 Incentive Compensation Plan (the “Plan”).

	1.	 	Purpose. The purpose of the Plan is to recruit and retain highly qualified directors,
executive officers and selected employees, and to provide them incentives to put forth
maximum efforts for the success of the Company’s business, in order to serve the best
interests of the Company and its stockholders.

	2.	 	Term. The Plan was approved by the Board and the Company’s stockholders on ________,
20_. The Plan will expire on the tenth anniversary of the date on which it is approved by
the stockholders of the Company. No further Awards will be made under the Plan on or after
such tenth anniversary. Awards that are outstanding on the date the Plan terminates will
remain in effect according to their terms and the provisions of the Plan.

	3.	 	Definitions. The following terms, when used in the Plan with initial capital letters,
will have the following meanings:

	 	(a)	 	Appreciation Right means a right granted pursuant to Section 7.
	 
	 	(b)	 	Award means the award of a Senior Executive Plan Bonus; the grant of
Appreciation Rights, Stock Options, Performance Shares, Performance Units or Restricted
Stock Units; or the grant or sale of Restricted Shares.
	 
	 	(c)	 	Board means the Board of Directors of the Company.
	 
	 	(d)	 	Code means the Internal Revenue Code of 1986, as in effect from time to time.
	 
	 	(e)	 	Committee means:

	 	(i)	 	prior to the effective date of the Company’s IPO, the
Compensation Committee of the Board, and
	 
	 	(ii)	 	on or after the effective date of the Company’s IPO,

	 	(A)	 	with respect to any matter arising under the
Plan that relates to a Participant who is subject to Section 16 of the
Exchange Act, the Incentive Compensation Plan Committee appointed by
the Board, which committee at all times will consist of two or more
members of the Board, all of whom are intended (1) to meet all
applicable independence requirements of the New York Stock Exchange or
the principal national securities exchange or principal market on or in
which the Common Stock is traded and (2) to qualify as “non-employee
directors” as defined in Rule 16b-3 and as “outside

 

 

	 	 	 	directors” as defined in regulations adopted under Section 162(m) of
the Code, as such terms may be amended from time to time, provided,
however, that the failure of a member of the Committee to so qualify
will not invalidate any Award granted to such Participant under the
Plan;
	 
	 	(B)	 	with respect to any matter arising under the
Plan that relates to any other Participant, the Compensation Committee
of the Board; and
	 
	 	(C)	 	to the extent the administration of the Plan
has been assumed by the Board pursuant to Section 18, the Board.

	 	(f)	 	Common Stock means the common stock, par value $.01 per share, of the Company
or any security into which such Common Stock may be changed by reason of any
transaction or event of the type described in Section 15.
	 
	 	(g)	 	Date of Grant means the date specified by the Committee on which an Award will
become effective.
	 
	 	(h)	 	Deferral Period means the period of time during which Restricted Stock Units
are subject to deferral limitations under Section 9.
	 
	 	(i)	 	Eligible Director means a member of the Board who is not (i) an employee of the
Company or any Subsidiary or (ii) an officer, director or employee of (A) Alon Israel
Oil Company or any of its affiliates other than the Company or any Subsidiary; (B) Alon
USA Energy, Inc. or any of its affiliates other than the Company or any Subsidiary; (C)
Bielsol Investments (1987) Ltd. or any of its affiliates; or (D) Kibbutz Movement or
any of its affiliates.
	 
	 	(j)	 	Evidence of Award means an agreement, certificate, resolution or other type or
form of writing or other evidence approved by the Committee which sets forth the terms
and conditions of an Award. An Evidence of Award may be in any electronic medium, may
be limited to a notation on the books and records of the Company and need not be signed
by a representative of the Company or a Participant.
	 
	 	(k)	 	Exchange Act means the Securities Exchange Act of 1934, as amended.
	 
	 	(l)	 	Grant Price means the price per share of Common Stock at which an Appreciation
Right is granted.
	 
	 	(m)	 	IPO means the Company’s initial public offering of its Common Stock through a
firm commitment underwritten offering registered under the Securities Act of 1933, as
amended. For purposes of the Plan, the effective date of the IPO will be the date the
Company prices the IPO.
	 
	 	(n)	 	Management Objectives means the measurable performance objectives, if any,
established by the Committee for a Performance Period that are to be

2

 

	 	 	 	achieved with respect to an Award. Management Objectives may be described in terms
of company-wide objectives (i.e., the performance of the Company and all of its
Subsidiaries) or in terms of objectives that are related to the performance of the
individual Participant or of the division, Subsidiary, department, region or
function within the Company or a Subsidiary in which the Participant receiving the
Award is employed or on which the Participant’s efforts have the most influence.
The achievement of the Management Objectives established by the Committee for any
Performance Period will be determined without regard to any change in accounting
standards by the Financial Accounting Standards Board or any successor entity.

	 	 	 	The Management Objectives applicable to any Award to a Participant who is, or is
determined by the Committee to be likely to become, a “covered employee” within the
meaning of Section 162(m) of the Code (or any successor provision) will be limited
to specified levels of, growth in, or performance relative to peer company
performance in, one or more of the following performance measures (excluding the
effect of extraordinary or nonrecurring items unless the Committee specifically
includes any such extraordinary or nonrecurring item at the time such Award is
granted):

	 	(i)	 	profitability measures;
	 
	 	(ii)	 	revenue, sales and same store sales measures;
	 
	 	(iii)	 	business unit performance;
	 
	 	(iv)	 	leverage measures;
	 
	 	(v)	 	stockholder return;
	 
	 	(vi)	 	expense management;
	 
	 	(vii)	 	asset and liability measures;
	 
	 	(viii)	 	individual performance;
	 
	 	(ix)	 	supply chain efficiency;
	 
	 	(x)	 	customer satisfaction;
	 
	 	(xi)	 	productivity measures;
	 
	 	(xii)	 	cash flow measures;
	 
	 	(xiii)	 	return measures; and
	 
	 	(xiv)	 	product development and/or performance.

3

 

	 	 	 	If the Committee determines that, as a result of a change in the business,
operations, corporate structure or capital structure of the Company, or the manner
in which the Company conducts its business, or any other events or circumstances,
the Management Objectives are no longer suitable, the Committee may in its
discretion modify such Management Objectives or the related minimum acceptable level
of achievement, in whole or in part, with respect to a Performance Period as the
Committee deems appropriate and equitable.

	 	(o)	 	Market Value per Share means, at any date, the closing sale price of the Common
Stock on that date (or, if there are no sales on that date, the last preceding date on
which there was a sale) on the principal national securities exchange or in the
principal market on or in which the Common Stock is traded. If the Common Stock is not
traded as of any given date, the Market Value per Share means the closing sale price of
the Common Stock on the principal national securities exchange or in the principal
market on or in which the Common Stock is traded for the immediately preceding date on
which the Common Stock is traded. If there is no regular public trading market for the
Common Stock, the Market Value per Share means the fair market value of a share of
Common Stock as determined in good faith by the Board.

	 	(p)	 	Option Price means the purchase price per share payable on exercise of a Stock
Option.
	 
	 	(q)	 	Participant means a person who is selected by the Committee to receive an Award
under the Plan and who at that time is an executive officer or other key employee of
the Company or any Subsidiary, or who at that time is an Eligible Director, provided
that an Eligible Director will be a Participant only for purposes of Awards of
Restricted Shares.
	 
	 	(r)	 	Performance Share means a bookkeeping entry that records the equivalent of one
share of Common Stock awarded pursuant to Section 10.
	 
	 	(s)	 	Performance Period means, with respect to an Award, a period of time within
which the Management Objectives relating to such Award are to be measured.
	 
	 	(t)	 	Performance Unit means a unit equivalent to $1.00 (or such other value as the
Committee determines) granted pursuant to Section 10.
	 
	 	(u)	 	Permitted Holders means Alon USA Energy, Inc. or one of its subsidiaries, Alon
Israel Oil Company, Ltd., Bielsol Investments (1987) Ltd., and Tabris Investments Inc.
	 
	 	(v)	 	Restricted Shares means shares of Common Stock granted or sold pursuant to
Section 8 as to which neither the ownership restrictions nor the restrictions on
transfer have expired.

4

 

	 	(w)	 	Restricted Stock Units means an Award pursuant to Section 9 of the right to
receive shares of Common Stock or cash at the end of a specified Deferral Period.
	 
	 	(x)	 	Rule 16b-3 means Rule 16b-3 under Section 16 of the Exchange Act as amended (or
any successor rule to the same effect), as in effect from time to time.
	 
	 	(y)	 	Senior Executive Plan Bonus means an Award of annual incentive compensation
made pursuant to and subject to the conditions set forth in Section 11.
	 
	 	(z)	 	Senior Officer means for purposes of Section 5(b), the Chief Executive Officer,
President, Chief Financial Officer, Chief Operating Officer, or any Senior Vice
President of the Company.
	 
	 	(aa)	 	Spread means the excess of the Market Value per Share on the date an
Appreciation Right is exercised over (i) the Option Price provided for in the Stock
Option granted in tandem with the Appreciation Right or (ii) if there is no tandem
Stock Option, the Grant Price provided for in the Appreciation Right, in either case
multiplied by the number of shares of Common Stock in respect of which the Appreciation
Right is exercised.
	 
	 	(bb)	 	Stock Option means the right to purchase shares of Common Stock upon exercise
of an option granted pursuant to Section 6.
	 
	 	(cc)	 	Subsidiary means (i) any corporation of which at least 50% of the combined
voting power of the then outstanding shares of Voting Stock is owned directly or
indirectly by the Company, (ii) any partnership of which at least 50% of the profits
interest or capital interest is owned directly or indirectly by the Company and (iii)
any other entity of which at least 50% of the total equity interest is owned directly
or indirectly by the Company.
	 
	 	(dd)	 	Voting Stock means the securities entitled to vote generally in the election of
directors or persons who serve similar functions.

	4.	 	Shares Available Under Plan. The aggregate number of shares of Common Stock that may be
(i) subject to an Award of Appreciation Rights or Stock Options or (ii) issued or
transferred as Restricted Shares and released from all restrictions or in payment of
Performance Shares, Performance Units, Restricted Stock Units or Senior Executive Plan
Bonuses will not exceed in the aggregate [________] shares. Such shares may be shares of
original issuance or treasury shares or a combination of the
foregoing. The number of shares of Common Stock available under this Section 4 will be subject to adjustment as
provided in Section 15 and will be further adjusted to include shares that relate to Awards
that expire or are forfeited. The number of shares of Common Stock available under this
Section 4 will not be adjusted to include (i) any shares withheld by, or tendered to, the
Company in payment of the Option Price with respect to a Stock Option or in satisfaction of
the taxes required to be withheld in connection with any Award granted under the Plan or
(ii) any shares subject to an

5

 

	 	 	Appreciation Right that are not transferred to a Participant upon exercise of the
Appreciation Right.

	5.	 	Limitations on Awards. Awards under the Plan will be subject to the following
limitations:

	 	(a)	 	No more than [________] shares of Common Stock, subject to adjustment as
provided in Section 4, may be subject to an Award of Stock Options that are intended to
qualify as incentive stock options under Section 422 of the Code.
	 
	 	(b)	 	The maximum number of shares of Common Stock that:

	 	(i)	 	may be subject to Stock Options or Appreciation Rights granted
to a Participant during any calendar year will not exceed [________] shares
plus an additional [________] shares with respect to Stock Options or
Appreciation Rights granted a Participant who has not previously been employed
by the Company or any Subsidiary and
	 
	 	(ii)	 	may be granted to a Participant during any calendar year as
Performance Shares, Restricted Shares or Restricted Stock Units may not exceed
[________] shares plus an additional [________] shares with respect to
Performance Shares, Restricted Shares or Restricted Stock Units granted a
Participant who has not previously been employed by the Company or any
Subsidiary; provided however, that, upon prior approval of the Board, a Senior
Officers of the Company may, in addition to any other grants to such individual
pursuant to the Plan, receive a one-time grant of up to [________] shares with
respect to Performance Shares, Restricted Shares or Restricted Stock Units.
	 
	 	 	 	The limitations set forth in this Section 5(b) will apply without regard to
whether the applicable Award is settled in cash or in shares of Common Stock.

	 	(c)	 	The maximum aggregate cash value of payments to any Participant for any
Performance Period pursuant to an award of Performance Units will not exceed $1
million.
	 
	 	(d)	 	The payment of a Senior Executive Plan Bonus to any Participant will not exceed
$1 million.

	6.	 	Stock Options. The Committee may from time to time authorize grants of options to any
Participant to purchase shares of Common Stock upon such terms and conditions as it may
determine in accordance with this Section 6. Each Participant who is a key employee of the
Company or any Subsidiary will be eligible to receive a grant of Stock Options that are
intended to qualify as incentive stock options within the meaning of Section 422 of the
Code. Each grant of Stock Options may utilize any or all of the authorizations, and will be
subject to all of the requirements, contained in the following provisions:

6

 

	 	(a)	 	Each grant will specify the number of shares of Common Stock to which it
relates.
	 
	 	(b)	 	Each grant will specify the Option Price, which will not be less than 100% of
the Market Value per Share on the Date of Grant.
	 
	 	(c)	 	Each grant will specify whether the Option Price will be payable (i) in cash or
by check acceptable to the Company, (ii) by the actual or constructive transfer to the
Company of shares of Common Stock owned by the Participant for at least six months (or,
with the consent of the Committee, for less than six months) having an aggregate Market
Value per Share at the date of exercise equal to the aggregate Option Price, (iii) with
the consent of the Committee, by authorizing the Company to withhold a number of shares
of Common Stock otherwise issuable to the Participant having an aggregate Market Value
per Share on the date of exercise equal to the aggregate Option Price or (iv) by a
combination of such methods of payment; provided, however, that the payment methods
described in clauses (ii) and (iii) will not be available at any time that the Company
is prohibited from purchasing or acquiring such shares of Common Stock.
	 
	 	(d)	 	To the extent permitted by law, any grant may provide for deferred payment of
the Option Price from the proceeds of sale through a bank or broker of some or all of
the shares to which such exercise relates.
	 
	 	(e)	 	Successive grants may be made to the same Participant whether or not any Stock
Options or other Awards previously granted to such Participant remain unexercised or
outstanding.
	 
	 	(f)	 	Each grant will specify the required period or periods of continuous service by
the Participant with the Company or any Subsidiary that are necessary before the Stock
Options or installments thereof will become exercisable.
	 
	 	(g)	 	Any grant may specify the Management Objectives that must be achieved as a
condition to the exercise of the Stock Options.
	 
	 	(h)	 	Any grant may provide for the earlier exercise of the Stock Options in the
event of a Change in control or other similar transaction or event.
	 
	 	(i)	 	Stock Options may be (i) options which are intended to qualify under particular
provisions of the Code, (ii) options which are not intended to so qualify or (iii)
combinations of the foregoing.
	 
	 	(j)	 	On or after the Date of Grant, the Committee may provide for the payment to the
Participant of dividend equivalents thereon in cash or Common Stock on a current,
deferred or contingent basis.
	 
	 	(k)	 	The Committee will have the right to substitute Appreciation Rights for
outstanding Options granted to one or more Participants, provided the terms and

7

 

	 	 	 	the economic benefit of the substituted Appreciation Rights are at least equivalent
to the terms and economic benefit of such Options, as determined by the Committee in
its discretion.
	 
	 	(l)	 	Any grant may provide for the effect on the Stock Options or any shares of
Common Stock issued, or other payment made, with respect to the Stock Options of any
conduct of the Participant determined by the Committee to be injurious, detrimental or
prejudicial to any significant interest of the Company or any Subsidiary.
	 
	 	(m)	 	Each grant will be evidenced by an Evidence of Award, which may contain such
terms and provisions, consistent with the Plan, as the Committee may approve, including
without limitation provisions relating to the Participant’s termination of employment
or other termination of service by reason of retirement, death, disability or
otherwise.

	7.	 	Appreciation Rights. The Committee may also from time to time authorize grants to any
Participant of Appreciation Rights upon such terms and conditions as it may determine in
accordance with this Section 7. Appreciation Rights may be granted in tandem with Stock
Options or separate and apart from a grant of Stock Options. An Appreciation Right will be
a right of the Participant to receive from the Company upon exercise an amount which will be
expressed as a percentage of the Spread (not exceeding 100%) at the time of exercise, as
determined by the Committee at the Date of Grant. An Appreciation Right granted in tandem
with a Stock Option may be exercised only by surrender of the related Stock Option. Each
grant of an Appreciation Right may utilize any or all of the authorizations, and will be
subject to all of the requirements, contained in the following provisions:

	 	(a)	 	Each grant will state whether it is made in tandem with Stock Options and, if
not made in tandem with any Stock Options, will specify the number of shares of Common
Stock in respect of which it is made.
	 
	 	(b)	 	Each grant made in tandem with Stock Options will specify the Option Price and
each grant not made in tandem with Stock Options will specify the Grant Price, which in
either case will not be less than 100% of the Market Value per Share on the Date of
Grant.
	 
	 	(c)	 	Any grant may provide that the amount payable on exercise of an Appreciation
Right may be paid (i) in cash, (ii) in shares of Common Stock having an aggregate
Market Value per Share equal to the Spread (or the designated percentage of the Spread)
or (iii) in a combination thereof, as determined by the Committee in its discretion.
	 
	 	(d)	 	Any grant may specify that the amount payable to the Participant on exercise of
an Appreciation Right may not exceed a maximum amount specified by the Committee at the
Date of Grant.

8

 

	 	(e)	 	Successive grants may be made to the same Participant whether or not any
Appreciation Rights or other Awards previously granted to such Participant remain
unexercised or outstanding.
	 
	 	(f)	 	Each grant will specify the required period or periods of continuous service by
the Participant with the Company or any Subsidiary that are necessary before the
Appreciation Rights or installments thereof will become exercisable, and will provide
that no Appreciation Rights may be exercised except at a time when the Spread is
positive and, with respect to any grant made in tandem with Stock Options, when the
related Stock Options are also exercisable.
	 
	 	(g)	 	Any grant may specify the Management Objectives that must be achieved as a
condition to the exercise of the Appreciation Rights.
	 
	 	(h)	 	Any grant may provide for the earlier exercise of the Appreciation Rights in
the event of a Change in control or other similar transaction or event.
	 
	 	(i)	 	On or after the Date of Grant, the Committee may provide for the payment to the
Participant of dividend equivalents thereon in cash or Common Stock on a current,
deferred or contingent basis.
	 
	 	(j)	 	Any grant may provide for the effect on the Appreciation Rights or any shares
of Common Stock issued, or other payment made, with respect to the Appreciation Rights
of any conduct of the Participant determined by the Committee to be injurious,
detrimental or prejudicial to any significant interest of the Company or any
Subsidiary.
	 
	 	(k)	 	Each grant will be evidenced by an Evidence of Award, which may contain such
terms and provisions, consistent with the Plan, as the Committee may approve, including
without limitation provisions relating to the Participant’s termination of employment
or other termination of service by reason of retirement, death, disability or
otherwise.

	8.	 	Restricted Shares. The Committee may also from time to time authorize grants or sales to
any Participant of Restricted Shares upon such terms and conditions as it may determine in
accordance with this Section 8. Each grant or sale will constitute an immediate transfer of
the ownership of shares of Common Stock to the Participant in consideration of the
performance of services, entitling such Participant to ownership rights, but subject to the
restrictions set forth in this Section 8. Each such grant or sale may utilize any or all of
the authorizations, and will be subject to all of the requirements, contained in the
following provisions:

	 	(a)	 	Each grant or sale may be made without additional consideration or in
consideration of a payment by the Participant that is less than the Market Value per
Share at the Date of Grant, except as may otherwise be required by the Delaware General
Corporation Law.

9

 

	 	(b)	 	Each grant or sale may limit the Participant’s dividend and/or voting rights
during the period in which the shares of Restricted Shares are subject to any such
restrictions.
	 
	 	(c)	 	Each grant or sale will provide that the Restricted Shares will be subject, for
a period to be determined by the Committee at the Date of Grant, to one or more
restrictions, including without limitation a restriction that constitutes a
“substantial risk of forfeiture” within the meaning of Section 83 of the Code and the
regulations of the Internal Revenue Service under such section.
	 
	 	(d)	 	Any grant or sale may specify the Management Objectives that, if achieved, will
result in the termination or early termination of the restrictions applicable to the
shares.
	 
	 	(e)	 	Any grant or sale may provide for the early termination of any such
restrictions in the event of a Change in control or other similar transaction or event.
	 
	 	(f)	 	Each grant or sale will provide that during the period for which such
restriction or restrictions are to continue, the transferability of the Restricted
Shares will be prohibited or restricted in a manner and to the extent prescribed by the
Committee at the Date of Grant (which restrictions may include without limitation
rights of repurchase or first refusal in favor of the Company or provisions subjecting
the Restricted Shares to continuing restrictions in the hands of any transferee).
	 
	 	(g)	 	Any grant or sale may provide for the effect on the Restricted Shares or any
shares of Common Stock issued free of restrictions, or other payment made, with respect
to the Restricted Shares of any conduct of the Participant determined by the Committee
to be injurious, detrimental or prejudicial to any significant interest of the Company
or any Subsidiary.
	 
	 	(h)	 	Each grant or sale will be evidenced by an Evidence of Award, which may contain
such terms and provisions, consistent with the Plan, as the Committee may approve,
including without limitation provisions relating to the Participant’s termination of
employment or other termination of service by reason of retirement, death, disability
or otherwise.

	9.	 	Restricted Stock Units. The Committee may also from time to time authorize grants or
sales to any Participant of Restricted Stock Units upon such terms and conditions as it may
determine in accordance with this Section 9. Each grant or sale will constitute the
agreement by the Company to issue or transfer shares of Common Stock or cash 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 Committee may specify.
Each such grant or sale may utilize any or all of the authorizations, and will be subject to
all of the requirements, contained in the following provisions:

10

 

	 	(a)	 	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, except as may otherwise be required by the
Delaware General Corporation Law.
	 
	 	(b)	 	Each grant or sale will provide that the Restricted Stock Units will be subject
to a Deferral Period, which will be fixed by the Committee 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 or other similar transaction or event.
	 
	 	(c)	 	During the Deferral Period, the Participant will not have any right to transfer
any rights under the Restricted Stock Units, will not have any rights of ownership in
the Restricted Stock Units and will not have any right to vote the Restricted Stock
Units, but the Committee may on or after the Date of Grant authorize the payment of
dividend equivalents on such shares in cash or Common Stock on a current, deferred or
contingent basis.
	 
	 	(d)	 	Any grant or sale may provide for the effect on the Restricted Stock Units or
any shares of Common Stock issued free of restrictions, or other payment made, with
respect to the Restricted Stock Units of any conduct of the Participant determined by
the Committee to be injurious, detrimental or prejudicial to any significant interest
of the Company or any Subsidiary.
	 
	 	(e)	 	Each grant or sale will be evidenced by an Evidence of Award, which will
contain such terms and provisions as the Committee may determine consistent with the
Plan, including without limitation provisions relating to the Participant’s termination
of employment or other termination of service by reason of retirement, death,
disability or otherwise.

	10.	 	Performance Shares and Performance Units. The Committee may also from time to time
authorize grants to any Participant of Performance Shares and Performance Units, which will
become payable upon achievement of specified Management Objectives, upon such terms and
conditions as it may determine in accordance with this Section 10. Each such grant may
utilize any or all of the authorizations, and will be subject to all of the requirements,
contained in the following provisions:

	 	(a)	 	Each grant will specify the number of Performance Shares or Performance Units
to which it relates.
	 
	 	(b)	 	The Performance Period with respect to each Performance Share and Performance
Unit will be determined by the Committee at the time of grant.
	 
	 	(c)	 	Each grant will specify the Management Objectives that, if achieved, will
result in the payment of the Performance Shares or Performance Units.
	 
	 	(d)	 	Each grant will specify the time and manner of payment of Performance Shares or
Performance Units which have become payable, which payment may be

11

 

	 	 	 	made in (i) cash, (ii) shares of Common Stock having an aggregate Market Value per
Share equal to the aggregate value of the Performance Shares or Performance Units
which have become payable or (iii) any combination thereof, as determined by the
Committee in its discretion at the time of payment.
	 
	 	(e)	 	Any grant of Performance Shares may specify that the amount payable with
respect thereto may not exceed a maximum specified by the Committee on the Date of
Grant. Any grant of Performance Units may specify that the amount payable, or the
number of shares of Common Stock issued, with respect to the Performance Units may not
exceed maximums specified by the Committee on the Date of Grant.
	 
	 	(f)	 	On or after the Date of Grant, the Committee may provide for the payment to the
Participant of dividend equivalents on Performance Shares in cash or Common Stock on a
current, deferred or contingent basis.
	 
	 	(g)	 	Any grant may provide for the effect on the Performance Shares or Performance
Units or any shares of Common Stock issued, or other payment made, with respect to the
Performance Shares or Performance Units of any conduct of the Participant determined by
the Committee to be injurious, detrimental or prejudicial to any significant interest
of the Company or any Subsidiary.
	 
	 	(h)	 	Each grant will be evidenced by an Evidence of Award, which will contain such
terms and provisions as the Committee may determine consistent with the Plan, including
without limitation provisions relating to the payment of the Performance Shares or
Performance Units in the event of a Change in control or other similar transaction or
event and provisions relating to the Participant’s termination of employment or other
termination of service by reason of retirement, death, disability or otherwise.

	11.	 	Senior Executive Plan Bonuses. The Committee may from time to time authorize the payment
of annual incentive compensation to a Participant who is, or is determined by the Committee
to be likely to become, a “covered employee” within the meaning of Section 162(m) of the
Code (or any successor provision), which incentive compensation will become payable upon
achievement of specified Management Objectives. Subject to Section 5(d), Senior Executive
Plan Bonuses will be payable upon such terms and conditions as the Committee may determine
in accordance with the following provisions:

	 	(a)	 	No later than 90 days after the first day of the Company’s fiscal year, the
Committee will specify the Management Objectives that, if achieved, will result in the
payment of a Senior Executive Plan Bonus for such year.
	 
	 	(b)	 	Following the close of the Company’s fiscal year, the Committee will certify in
writing whether the specified Management Objectives have been achieved. Approved
minutes of a meeting of the Committee at which such

12

 

	 	 	 	certification is made will be treated as written certification for this purpose.
The Committee will also specify the time and manner of payment of a Senior Executive
Plan Bonus which becomes payable, which payment may be made in (i) cash, (ii) shares
of Common Stock having an aggregate Market Value per Share equal to the aggregate
value of the Senior Executive Plan Bonus which has become payable or (iii) any
combination thereof, as determined by the Committee in its discretion at the time of
payment.
	 
	 	(c)	 	If a Change in control occurs during a Performance Period, the Senior Executive
Plan Bonus payable to each Participant for the Performance Period will be determined at
the highest level of achievement of the Management Objectives, without regard to actual
performance and without proration for less than a full Performance Period. The Senior
Executive Plan Bonus will be paid at such time following the Change in control as the
Committee determines in its discretion, but in no event later than 30 days after the
date of an event which results in a Change in control.
	 
	 	(d)	 	Each grant may be evidenced by an Evidence of Award, which will contain such
terms and provisions as the Committee may determine consistent with the Plan, including
without limitation provisions relating to the Participant’s termination of employment
by reason of retirement, death, disability or otherwise.

	12.	 	Awards to Eligible Directors.

	 	(a)	 	Upon the effective date of the Company’s IPO, each Eligible Director will be
granted a number of Restricted Shares equal to $20,000 divided by the offering price
per share to the public in the Company’s IPO as set forth on the cover page of the
prospectus related thereto.
	 
	 	(b)	 	Following the effective date of the Company’s IPO, on the date of an Eligible
Director’s first election to the Board (if such date is not also the date of an annual
meeting of the stockholders of the Company), and immediately after each annual meeting
of the stockholders of the Company, each Eligible Director will be granted Restricted
Shares having an aggregate Market Value per Share equal to $20,000 on the Date of
Grant.
	 
	 	(c)	 	Each grant of Restricted Shares to an Eligible Director will vest in three
equal installments on the first, second and third anniversaries of the Date of Grant
and may not be sold or otherwise transferred (other than by will or the laws of descent
and distribution) prior to such vesting date. If, prior to a vesting date, an Eligible
Director voluntarily resigns or is removed from the Board, the Eligible Director’s
unvested Restricted Shares will be forfeited and cancelled. In the event of an
Eligible Director’s retirement (as defined in the Evidence of Award evidencing such
grant) from the Board, death or disability prior to a vesting date, all unvested
Restricted Shares will become fully vested.

	13.	 	Other Awards.

13

 

	 	(a)	 	The Committee may, subject to limitations under applicable law, grant to any
Participant such other awards that may be denominated or payable in, valued in whole or
in part by reference to, or otherwise based on, or related to, shares of Common Stock
or factors that may influence the value of such shares, including, without limitation,
convertible or exchangeable debt securities, other rights convertible or exchangeable
into Common Stock, purchase rights for Common Stock, awards with value and payment
contingent upon performance of the Company or specified Subsidiaries, affiliates or
other business units thereof or any other factors designated by the Committee, and
awards valued by reference to the book value of shares of Common Stock or the value of
securities of, or the performance of specified Subsidiaries or affiliates or other
business units of the Company. The Committee will determine the terms and conditions
of such awards. Shares of Common Stock delivered pursuant to an award in the nature of
a purchase right granted under this Section 13 will be purchased for such
consideration, paid for at such time, by such methods, and in such forms, including,
without limitation, cash, shares of Common Stock, other awards, notes or other
property, as the Committee determines.
	 
	 	(b)	 	Cash awards, as an element of or supplement to any other award granted under
the Plan, may also be granted pursuant to this Section 13 of the Plan.
	 
	 	(c)	 	The Committee may grant Common Stock as a bonus, or may grant other awards in
lieu of obligations of the Company or a Subsidiary to pay cash or deliver other
property under the Plan or under other plans or compensatory arrangements, subject to
such terms as may be determined by the Committee in a manner that complies with Section
409A of the Code.
	 
	 	(d)	 	Share-based awards pursuant to this Section 13 are not required to be subject
to any minimum vesting period.

	14.	 	Transferability. No Award may be sold, pledged, assigned or transferred in any manner
other than by will or the laws of descent and distribution, pursuant to a qualified domestic
relations order or, with the consent of the Committee, by gifts to family members of the
Participant, including to trusts in which family members of the Participant own more than
50% of the beneficial interests, to foundations in which family members of the Participant
or the Participant controls the management of assets and to other entities in which more
than 50% of the voting interests are owned by family members of the Participant or the
Participant. No Stock Option or Appreciation Right granted to a Participant will be
exercisable during the Participant’s lifetime by any person other than the Participant or
the Participant’s guardian or legal representative or any permitted transferee.

	15.	 	Adjustments.

	 	(a)	 	The Committee may make or provide for such adjustments in (i) the maximum
number of shares of Common Stock specified in Sections 4 and 5, (ii) the number of
shares of Common Stock covered by outstanding Stock Options,

14

 

	 	 	 	Appreciation Rights, Performance Shares and Restricted Stock Units granted under the
Plan, (iii) the Option Price or Grant Price applicable to any Stock Options and
Appreciation Rights, and (iv) the kind of shares covered by any such Awards
(including shares of another issuer), as the Committee in its discretion, exercised
in good faith, may determine is equitably required to prevent dilution or
enlargement of the rights of Participants that otherwise would result from (x) any
stock dividend, stock split, combination of shares, recapitalization or other change
in the capital structure of the Company, or (y) any merger, consolidation, spin-off,
split-off, spin-out, split-up, reorganization, partial or complete liquidation or
other distribution of assets, issuance of rights or warrants to purchase securities,
or (z) 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 Committee, in its
discretion, may provide in substitution for any or all outstanding Awards such
alternative consideration as it, in good faith, may determine to be equitable in the
circumstances and may require in connection with such substitution the surrender of
all Awards so replaced. Moreover, the Committee may on or after the Date of Grant
provide in the Evidence of Award 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
Committee may provide that the holder will automatically be entitled to receive such
an equivalent award.
	 
	 	(b)	 	The Committee may accelerate the payment of, or vesting with respect to, any
Award under the Plan upon the occurrence of a transaction or event described in this
Section 15; provided, however, that in the case of any Award that constitutes a
deferral of compensation within the meaning of Section 409A of the Code, the Committee
will not accelerate the payment of the Award unless it determines in good faith that
such transaction or event satisfies the requirements of a change in control event under
guidance issued by the Secretary of the Treasury under Section 409A of the Code.

	16.	 	Fractional Shares. the Company will not be required to issue any fractional share of
Common Stock pursuant to the Plan. The Committee may provide for the elimination of
fractions or for the settlement of fractions in cash.

	17.	 	Withholding Taxes. To the extent that the Company 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 the Plan, and the amounts available to the Company for
such withholding are insufficient, it will be a condition to the receipt of such payment or
the realization of such benefit that the Participant or such other person make arrangements
satisfactory to the Company for payment of the balance of such taxes required to be
withheld. In addition, if permitted by the Committee, the Participant or such other person
may elect to have any withholding obligation of the Company satisfied with shares of Common
Stock that would otherwise be transferred to the Participant or such other person in payment
of the Participant’s Award. However shares of Common Stock will not be withheld in excess
of the minimum number of shares required to satisfy the Company’s withholding obligation.

15

 

	18.	 	Administration of the Plan.

	 	(a)	 	Unless the administration of the Plan has been expressly assumed by the Board
pursuant to a resolution of the Board, the Plan will be administered by the Committee.
A majority of the Committee will constitute a quorum, and the action of the members of
the Committee present at any meeting at which a quorum is present, or acts unanimously
approved in writing, will be the acts of the Committee.
	 
	 	(b)	 	The Committee has the full authority and discretion to administer the Plan and
to take any action that is necessary or advisable in connection with the administration
of the Plan, including without limitation the authority and discretion to interpret and
construe any provision of the Plan or of any agreement, notification or document
evidencing an Award. The interpretation and construction by the Committee of any such
provision and any determination by the Committee pursuant to any provision of the Plan
or of any such agreement, notification or document will be final and conclusive. No
member of the Committee will be liable for any such action or determination made in
good faith.
	 
	 	(c)	 	It is the Company’s intention that any Award granted under the Plan that
constitutes a deferral of compensation within the meaning of Section 409A of the Code
and the guidance issued by the Secretary of the Treasury thereunder satisfy the
requirements of Section 409A of the Code. In granting such an Award, the Committee
will use its best efforts to exercise its authority under the Plan with respect to the
terms of such Award in a manner that the Committee determines in good faith will cause
the Award to comply with Section 409A of the Code and thereby avoid the imposition of
penalty taxes and interest upon the Participant receiving the Award.
	 
	 	(d)	 	If the administration of the Plan is assumed by the Board pursuant to Section
18(a), the Board will have the same authority, power, duties, responsibilities and
discretion given to the Committee under the terms of the Plan.

	19.	 	Amendments and Other Matters.

	 	(a)	 	The Plan may be amended from time to time by the Committee or the Board but may
not be amended without further approval by the stockholders of the Company if such
amendment would result in the Plan no longer satisfying any applicable requirements of
the New York Stock Exchange (or the principal national securities exchange on which the
Common Stock is traded), Rule 16b-3 or Section 162(m) of the Code.
	 
	 	(b)	 	Neither the Committee nor the Board will authorize the amendment of any
outstanding Stock Option to reduce the Option Price without the further approval of the
stockholders of the Company. Furthermore, no Stock Option will be cancelled and
replaced with Stock Options having a lower Option Price without further approval of the
stockholders of the Company. The provisions of this

16

 

	 	 	 	Section 19(b) are intended to prohibit the repricing of “underwater” Stock Options
and will not be construed to prohibit the adjustments provided for in Section 15.
	 
	 	(c)	 	The Plan may be terminated at any time by action of the Board. The termination
of the Plan will not adversely affect the terms of any outstanding Award.
	 
	 	(d)	 	The Plan does not confer upon any Participant any right with respect to
continuance of employment or other service with the Company or any Subsidiary, nor will
it interfere in any way with any right the Company or any Subsidiary would otherwise
have to terminate such Participant’s employment or other service at any time.
	 
	 	(e)	 	If the Committee determines, with the advice of legal counsel, that any
provision of the Plan would prevent the payment of any Award intended to qualify as
performance-based compensation within the meaning of Section 162(m) of the Code from so
qualifying, such Plan provision will be invalid and cease to have any effect without
affecting the validity or effectiveness of any other provision of the Plan.

	20.	 	Governing Law. The Plan, all Awards and all actions taken under the Plan and the Awards
will be governed in all respects in accordance with the laws of the State of Delaware,
including without limitation, the Delaware statute of limitations, but without giving effect
to the principles of conflicts of laws of such State.

17

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