Document:

Exhibit 4.1

EXHIBIT 4.1

ASSUMPTION AGREEMENT

This Assumption Agreement (the “Assumption Agreement”) is made and entered into as of June 1, 2010,
by Global Indemnity (Cayman) Limited, an exempted company incorporated and registered in the Cayman
Islands (“Additional Guarantor”) for the benefit of each holder of any Notes (as defined in the
Note and Guarantee Agreement referred to below).

WHEREAS, United America Indemnity, Ltd., a Cayman Islands corporation (“Existing Guarantor”) is
party to that certain Note and Guarantee Agreement, dated as of July 20, 2005 between the Existing
Guarantor, U.N. Holdings II, Inc. and each purchaser party thereto (the “Note and Guarantee
Agreement”; capitalized terms used but not defined herein having the meanings set forth for such
terms in the Note and Guarantee Agreement);

WHEREAS, Additional Guarantor may be deemed to acquire substantially all of the assets of Existing
Guarantor upon consummation of the transactions (the “Transaction”) described in (i) that certain
Share Purchase Agreement in relation to the sale and purchase of all the share capital of Wind
River Reinsurance Company, Ltd., dated 27 May 2010, between the Existing Guarantor and the
Additional Guarantor (the “Share Purchase Agreement”) and (ii) that certain Asset Purchase
Agreement, dated 27 May 2010 between the Existing Guarantor and the Additional Guarantor (the
"Asset Purchase Agreement”);

WHEREAS, Section 10.2 of the Note and Guarantee Agreement may require Additional Guarantor to
assume the due and punctual performance and observance of each covenant and condition of the Note
and Guarantee Agreement and the Guarantees (collectively, the “Assumed Obligations”) upon
consummation of the Transaction; and

WHEREAS, Additional Guarantor has agreed to assume the Assumed Obligations and become a party to
the Note and Guarantee Agreement as a Guarantor and an Obligor thereunder upon consummation of the
Transaction.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Additional Guarantor hereby agrees as follows:

1. Assumption. Effective as of the time the Transaction is consummated pursuant to
the Share Purchase Agreement and the Asset Purchase Agreement (which shall be confirmed to each
holder of any Note in writing sent within 2 Business Days thereafter as provided in Section 20 of
the Note and Guarantee Agreement), by executing and delivering this Assumption Agreement,
Additional Guarantor hereby becomes party to the Note and Guarantee Agreement as a Guarantor and an
Obligor thereunder with the same force and effect as if originally named therein as a Guarantor and
an Obligor and, without limiting the generality of the foregoing, hereby, jointly and severally
with Existing Guarantor, assumes and agrees, for the benefit of each holder of any Note or Notes at
any time outstanding, to observe and perform all of the duties, obligations, terms, provisions,
conditions and covenants applicable to Existing Guarantor, and guarantees to each holder of any
Note or Notes at any time outstanding all of the Guaranteed Obligations. Additional Guarantor
hereby further agrees that if the Company shall default in the payment or performance of any of the
Guaranteed Obligations, Additional Guarantor will (x) promptly pay or perform the same, without any
demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of
any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at
extended maturity, by acceleration, by mandatory or optional prepayment or otherwise) in accordance
with the terms of such extension or renewal and (y) pay to the holder of any Note such amounts, to
the extent lawful, as shall be sufficient to pay the costs and expenses of collection or of
otherwise enforcing any of such holder’s rights under the Note and Guarantee Agreement, including,
without limitation, reasonable counsel fees.

The Additional Guarantor hereby waives notice of acceptance of, and reliance upon, this
Assumption Agreement by any holder of any Note.

 

 

 

2. Representations and Warranties. The Additional Guarantor represents and warrants
to the holders of any Note as follows:

2.1 Organization; Power and Authority. The Additional Guarantor is an exempted
limited company formed with limited liability duly organized, validly existing and, if legally
applicable, in good standing under the laws of its jurisdiction of organization, and is duly
qualified as a foreign corporation in each jurisdiction to which such qualification is required by
law and has the corporate power and authority to execute and deliver this Assumption Agreement and
to perform the provisions hereof and of the Note and Guarantee Agreement as assumed hereby.

2.2 Authorization, Etc. This Assumption Agreement has been duly authorized by all
necessary corporate action on the part of the Additional Guarantor.

2.3 Compliance with Laws, Other Instruments, Etc. The execution and delivery by the
Additional Guarantor of this Assumption Agreement and the performance by the Additional Guarantor
of this Assumption Agreement and the Note and Guarantee Agreement as assumed hereby will not
(i) contravene, result in any breach of, or constitute a default under any other Material
agreement or instrument to which the Additional Guarantor is bound, (ii) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or Governmental Authority applicable to the Additional Guarantor or
(iii) violate any provision of any statute or other rule or regulation of any Governmental
Authority applicable to the Additional Guarantor.

2.4 Governmental Authorizations, Etc. No consent, approval or authorization of, or
registration, filing or declaration with, any Governmental Authority is required in connection with
the execution or delivery by the Additional Guarantor of this Assumption Agreement or the
performance by the Additional Guarantor of this Assumption Agreement or the Note and Guarantee
Agreement as assumed hereby.

2.5 Taxes. No liability for any Tax, directly or indirectly, imposed, assessed,
levied or collected by or for the account of any Governmental Authority of or in the jurisdiction
of organization of the Additional Guarantor or any political subdivision thereof or therein will be
incurred by the Additional Guarantor or any holder of a Note as a result of the execution or
delivery of this Assumption Agreement and no deduction or withholding in respect of Taxes imposed
by or for the account of any such authority or political subdivision is required to be made from
any payment by the Additional Guarantor under the Note and Guarantee Agreement except for any such
withholding or deduction arising out of the conditions described in Section 13(b) of the Note and
Guarantee Agreement.

2.6 Ranking. The Additional Guarantor’s payment obligations under the Note and
Guarantee Agreement rank at least pari passu, without preference or priority, with all other
unsecured and unsubordinated indebtedness of the Additional Guarantor, except for such obligations
as may be mandatorily preferred by operation of bankruptcy, insolvency or similar laws of general
application.

2.7
Solvency. The Additional Guarantor is, and after giving effect to this Assumption
Agreement will be, solvent.

2.8
No Default. Immediately before and immediately after giving effect to the Transaction,
no Default or Event of Default shall have occurred and be continuing.

3. Process. The Additional Guarantor hereby irrevocably appoints National Registered
Agents, Inc. to receive for it, and on its behalf, service of process in the United States from the
date of the effectiveness of the Transaction to July 20, 2016 and, concurrently with the
effectiveness of the Transaction, shall enter into appropriate documentation to evidence the
acceptance by National Registered Agents, Inc. of such designation.

 

 

 

4. Governing Law. This Assumption Agreement shall be construed and enforced in
accordance with, and the rights of Additional Guarantor shall be governed by, the law of the State
of New York excluding choice of law principles of the law of such State that would permit the
application of the laws of a jurisdiction other than such State.

[signature page follows]

 

 

 

IN WITNESS WHEREOF, the undersigned has executed this Assumption Agreement as of the date first
above written.

	 	 	 	 	 
	 	 	GLOBAL INDEMNITY (CAYMAN) LIMITED
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas M. McGeehan
	 

	 	 	 	 
	 

	 	Name:
	 	Thomas M. McGeehan
	 

	 	 	 	 
	 

	 	Title:
	 	Director
	 

	 	 	 	 

Acknowledged and Consented:

UNITED AMERICA INDEMNITY, LTD.

	 	 	 	 	 
	By:
	 	/s/ Linda C. Hohn	 	 
	Name:

	 	Linda C. Hohn	 

	 	 
	 

	 	 	 	 
	Title:
	 	Vice PresidentExhibit 10.1

EXHIBIT 10.1

GLOBAL INDEMNITY PLC

SHARE INCENTIVE PLAN

(As Amended and Restated July 2, 2010)

Section 1. Purpose; Definitions

The purpose of the Plan is to give Global Indemnity plc, a public limited company established
in Ireland with registered number 481805 having its registered office at Arthur Cox Building,
Earlsfort Terrance, Dublin 2 (the “Company”), and its Affiliates (as defined below) a
competitive advantage in attracting, retaining and motivating officers, employees, consultants and
non-employee directors, and to provide the Company and its Affiliates with a share plan providing
incentives linked to the financial results of the Company’s businesses and increases in shareholder
value.

On July 2, 2010, the scheme of arrangement between United America Indemnity Ltd. (“UAI
Ltd.”) and the holders of UAI Ltd. common shares became effective (the “Transaction”) pursuant to
which holders of UAI Ltd. Class A and Class B common shares outstanding immediately before the
Transaction became effective received one Class A ordinary share and one Class B ordinary share of
the Company for every two UAI Ltd. Class A common shares and every two UAI Ltd. Class B common
shares; respectively, and UAI Ltd. became a wholly-owned subsidiary of the Company. In connection
with the completion of the Transaction, the Company assumed UAI Ltd.’s existing obligations in
connection with awards granted under UAI Ltd.’s Share Incentive Plan as of completion of the
Transaction.

For purposes of the Plan, the following terms are defined as set forth below:

“Affiliate” of a Person means a Person, directly or indirectly, controlled by, controlling or
under common control with such Person and with respect to the Company, includes without limitation
its Subsidiaries and its Parent.

“Award” means any award under this Plan of any Stock Option, Restricted Share, or Other
Share-Based Award.

“Award Agreement” means a Restricted Share Agreement or an Option Agreement. An Award
Agreement may include provisions included in an employment or consulting agreement of the Company
or any of its Affiliates.

“Board” means the Board of Directors of the Company.

“California Participant” means, in the case of individuals, any Participant residing in
California or working primarily in the California offices of the Company or an Affiliate of the
Company, or, in the case of an entity, any Participant having its principal place of business in
California.

 

 

 

“Cause” means, unless otherwise provided in the Participant’s employment or consulting
agreement with the Company or any of its Affiliates, that (i) the Participant is charged with or
has committed a felony or other crime involving moral turpitude or conduct adverse to the
interests of the Company, (ii) the Participant commits fraud, embezzlement or other conduct adverse
to the interests of the Company or its Affiliates, (iii) the Participant substantially fails to
perform his duties or obligations to the Company or its Affiliates, provided that he has been given
notice and an opportunity to cure not to exceed thirty (30) days under circumstances in which the
Board determines, in its sole discretion, that such failure to perform is in fact curable, or (iv)
the Participant violates Company policies or policies of its Affiliates or materially breaches any
representation made to the Company or its Affiliates.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor thereto.

“Committee” means (a) (i) before an IPO or date any class of common equity securities of the
Company are required to be registered under Section 12 of the Exchange Act (a “Registration
Event”), a committee (or subcommittee) of the Board that the Board may designate to administer or
make decisions required to be made under the Plan, and (ii) after a Registration Event, such
committee (or subcommittee) of the Board that the Board may designate to administer or make
decisions required to be made under the Plan, whose membership shall be composed of not less than
two Non-Employee Directors and, to the extent required by Section 162(m) of the Code and any
regulations thereunder, an “outside director” as defined under Section 162(m) of the Code, each of
whom shall be appointed by and serve at the pleasure of the Board or (b) if at any time no such
committee of the Board is so designated by the Board, the Board.

“Company” has the meaning set forth in the preamble hereto and any successors by operation of
law.

“Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code.
A Disability shall only be deemed to occur at the time of the determination by the Committee of the
Disability.

“Employment” means, unless otherwise defined in an applicable Award Agreement or employment or
consulting agreement, employment with, or service as a director or officer of, or as a consultant
to, the Company or any of its Affiliates.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
any successor thereto.

“Exercise Price” has the meaning set forth in Section 5(a).

“Fair Market Value” of the Ordinary Shares means (unless otherwise provided in the applicable
Award Agreement), as of any given date, the closing price on the applicable date of the Ordinary
Shares on the Nasdaq National Market or, if not listed on such market, on any other national
securities exchange on which the Ordinary Shares are listed or, if not so listed, on The Nasdaq
Stock Market, Inc. and, if not so quoted, the average of the closing bid and ask prices for the
Ordinary Shares in the over-the-counter market on which the Ordinary Shares are actively traded. If
such sales prices are not so available or the Ordinary Shares are not actively traded, as
determined by the Committee in its sole discretion, the Fair Market Value of the Ordinary Shares
shall mean the fair value as determined by the Committee in light of all circumstances,
including comparable recent bona fide sales of applicable or similar securities. For purposes of
the grant of any Stock Option, the applicable date shall be the date on which the Stock Option is
granted.

 

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“Family Member” means, solely to the extent provided for in Rule 701 under the Securities Act
or, following the filing of a Securities Act Form S-8 with respect to the Plan, solely to the
extent provided for in Securities Act Form S-8, any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the employee’s household (other than a tenant or employee), a
trust in which these persons have more than fifty percent (50%) of the beneficial interest, a
foundation in which these persons (or the employee) control the management of assets, and any other
entity in which these persons (or the employee) own more than fifty percent (50%) of the voting
interests or as otherwise defined in Rule 701 under the Securities Act or Securities Act Form S-8,
as applicable.

“FPC” means Fox Paine & Company, LLC, its subsidiaries and related entities (including without
limitation Fox Paine Capital, LLC, Fox Paine Capital Fund, L.P., Fox Paine Capital Fund II GP, LLC,
Fox Paine Capital Fund II L.P., Fox Paine Capital Fund II International, L.P., Fox Paine Capital
Fund II Co-Investors International, L.P.), and all Persons that are partners or shareholders or
members in any such related entities) and all partners, members, directors, employees, shareholders
and agents of any of the foregoing.

“Incentive Stock Option” means a Stock Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code.

“IPO” means the consummation of a registered underwritten public offering or offerings of
Ordinary Shares or other equity security of the Company after the date hereof with gross proceeds
to the Company in the aggregate of at least $60 million.

“Management Shareholders’ Agreement” means the Management Shareholders’ Agreement, dated as of
September 5, 2003, among the Company, the FPC Stockholder, and the Management Investors, as defined
therein, as amended from time to time.

“Non-Employee Director” means a member of the Board who qualifies as a Non-Employee Director
(as defined in Rule 16b-3(b)(3) as promulgated by the SEC under the Exchange Act, or any successor
definition adopted by the SEC).

“Nonstatutory Stock Option” means a Stock Option not intended to qualify as an Incentive Stock
Option. “Option Agreement” means an agreement setting forth the terms and conditions of a Stock
Option Award. “Other Share-Based Award” means any Award granted under Section 7.

“Ordinary Shares” means the Class A Ordinary shares, par value $0.0001 per share, of the
Company having the rights, preferences and privileges set out in the Company’s Articles of
Association, as amended from time to time.

 

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“Parent” means any parent corporation of the Company within the meaning of Section 424(e) of
the Code.

“Participant” has the meaning set forth in Section 4.

“Performance Criteria” has the meaning set forth in Exhibit A.

“Performance Goal” means the objective performance goals established by the Committee and, if
desirable for purposes of Section 162(m) of the Code, based on one or more Performance Criteria.

“Performance Period” means three consecutive fiscal years of the Company, or such shorter
period as determined by the Committee in its discretion.

“Person” means an individual, corporation, partnership, limited liability company, joint
venture, trust, unincorporated organization, government (or any department or agency thereof) or
other entity.

“Plan” means the Global Indemnity plc Share Incentive Plan, as set forth herein and as
hereinafter amended from time to time.

“Plan Shares” has the meaning set forth in Section 10(a).

“Restricted Shares” means an Award of Ordinary Shares granted under Section 6.

“Restricted Share Purchase Agreement” means an agreement setting forth the terms and
conditions of an Award of Restricted Shares.

“Retirement” means a Participant’s Termination of Employment without Cause at or after age
fifty-five (55).

“SEC” means the Securities and Exchange Commission or any successor agency.

“Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor thereto.

“Share Award” means an Award consisting of either shares of Ordinary Shares or a right to
receive Ordinary Shares in the future, each pursuant to Section 6 of the Plan.

“Stock Option” means any Nonstatutory Stock Option or Incentive Stock Option.

“Subsidiary” means any subsidiary corporation of the Company within the meaning of Section
424(f) of the Code.

“Termination of Employment” means (i) a termination of service (for reasons other than a
military or personal leave of absence granted by the Company) of a Participant from the Company or
an Affiliate, unless the Participant thereupon becomes employed by the Company or another
affiliate.

 

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In addition, certain other terms used herein have definitions otherwise ascribed to them
herein.

Section 2. Administration

This Plan shall be administered by the Committee.

Among other things, the Committee shall have the authority, subject to the terms of the Plan,
to:

(a) select the Participants to whom Awards may from time to time be granted and designate the
Affiliates of the Company for purposes of the Plan;

(b) determine whether and to what extent Awards are to be granted hereunder;

(c) determine the number of shares of Ordinary Shares to be covered by each Award granted
hereunder;

(d) determine the terms and conditions of any Award granted hereunder (including, but not
limited to, the Exercise Price (subject to Section 5(a)), any vesting conditions, restrictions or
limitations (which may be related to the performance of the Participant, the Company or any of its
Affiliates)) and any acceleration of vesting or waiver or cancellation regarding any Award and the
shares of Ordinary Shares relating thereto, based on such factors as the Committee shall determine;

(e) subject to Section 8 hereof, modify, amend or adjust the terms and conditions of any
Award, at any time or from time to time, including, but not limited to, the authority to either (1)
reduce the Exercise Price of an outstanding Stock Option or Other Share Based Award or (2)
simultaneously cancel Stock Options for which the Exercise Price exceeds the then current Fair
Market Value of the underlying Ordinary Shares and grant a new Award with an Exercise Price equal
to or greater than the then current Fair Market Value of the underlying Ordinary Shares.

(f) determine to what extent and under what circumstances Ordinary Shares and other amounts
payable with respect to an Award shall be deferred;

(g) adopt, alter and repeal such administrative rules, guidelines and practices governing the
Plan as it shall from time to time deem advisable;

(h) interpret the terms and provisions of the Plan and any Award issued under the Plan (and
any agreement, including, but not limited to, an Award Agreement relating thereto);

(i) adopt any sub-plans applicable to residents of any specified jurisdiction as it deems
necessary or appropriate in order to comply with or take advantage of any tax laws or other laws
applicable to the Company, its Affiliates, or to Participants or to otherwise facilitate the
administration of the Plan, which sub-plans may include additional restrictions or conditions
applicable to Awards or Plan Shares acquired upon exercise of Awards; and

(j) otherwise supervise and administer of the Plan.

 

5

 

The Committee may act only by a majority of its members then serving thereon, except that, if
permissible under applicable law, the Committee may designate or allocate all or any portion of its
responsibilities and powers to any one or more of their number or any officer of the Company. Any
such designation or allocation may be revoked by the Committee at any time.

Any dispute or disagreement which may arise under, or as a result of, or in any way relate to,
the interpretation, construction or application of the Plan or an Award (or related Award
Agreement) granted hereunder shall be determined and resolved by the Committee. Any determination
or resolution made by the Committee pursuant to the provisions of the Plan with respect to the
Plan, any Award or Award Agreement shall be made in the sole discretion of the Committee and, with
respect to an Award, at the time of the grant of the Award or, unless in contravention of any
express term of the Plan or the Award Agreement, at any time thereafter. Except as otherwise set
forth herein or in any Award Agreement, all decisions made by the Committee in accordance with the
terms of this Plan or the Award Agreements shall be final, conclusive and binding on all Persons,
including the Company, its Affiliates and the Participants.

To the maximum extent permitted by applicable law and the Articles of Association of the
Company and to the extent not covered by insurance directly insuring such person, each officer and
member or former member of the Committee or the Board shall be indemnified and held harmless by the
Company against any cost or expense (including reasonable fees and expenses of counsel reasonably
acceptable to the Committee) or liability (including any sum paid in settlement of a claim with the
approval of the Committee), and advanced amounts necessary to pay the foregoing at the earliest
time and to the fullest extent permitted, arising out of any act or omission to act in connection
with the administration of this Plan, except to the extent arising out of such officer’s, member’s
or former member’s own fraud or bad faith. Such indemnification shall be in addition to any rights
of indemnification the employees, officers, directors or members or former officers, directors or
members may have under applicable law or under the Articles of Association of the Company or any
Affiliate. Notwithstanding anything else herein, this indemnification will not apply to the actions
or determinations made by an individual with regard to Awards granted to him or her under this
Plan.

Section 3. Ordinary Shares Subject to Plan

The total number of Ordinary Shares reserved and available for grant under the Plan shall be
5,000,000 (subject to any increase or decrease pursuant to this Section 3 and pursuant to the
Transaction). Shares subject to an Award under the Plan may be authorized and unissued shares of
Ordinary Shares or Ordinary Shares held in or acquired for the treasury of the Company or both.

If any Restricted Shares or Other Share-Based Awards are forfeited to the Company or if any
Stock Option terminates without being exercised, the shares subject to such Awards shall again be
available for distribution in connection with Awards under the Plan. In addition, in determining
the number of Ordinary Shares available for Awards other than Incentive Stock Options, if Ordinary
Shares have been delivered or exchanged by a Participant as full or partial payment to the Company
for payment of the exercise price, or for payment of withholding taxes, or if the number of
Ordinary Shares otherwise deliverable has been reduced for payment of the exercise price or for
payment of withholding taxes, the number of Ordinary Shares exchanged or
reduced as payment in connection with the exercise or for withholding shall again be available
for purposes of Awards other than Incentive Stock Options under this Plan.

 

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The total number of Ordinary Shares subject to any Stock Option which may be granted under
this Plan to each Participant on and after a Registration Event shall not exceed 800,000 shares
(subject to any increase or decrease pursuant to this Section 3 and pursuant to the Transaction)
during each fiscal year of the Company. The individual Participant limitations set forth in this
Section 3 shall be cumulative; that is, to the extent that Ordinary Shares for which Options are
permitted to be granted to a Participant pursuant to this Section during a fiscal year of the
Company are not covered by a grant of an Option in the Company’s fiscal year, such Ordinary Shares
available for grants to such Participant automatically increase in the subsequent fiscal years
during the term of the Plan until used. For the avoidance of doubt, in each fiscal year of the
Company subsequent to the Transaction, the total number of Ordinary Shares subject to any Stock
Option which may be granted under this Plan to each Participant in any such fiscal year is 400,000
(and for the fiscal year during which the Transaction occurs, the limitation shall be based on an
800,000 share limit with respect to the portion of the fiscal year ending immediately prior to the
date of the Transaction, and the limitation shall be based on a 400,000 share limit (in the
aggregate with grants made prior to the Transaction on a split-adjusted basis) with respect to the
portion of the fiscal year commencing on the date of the Transaction).

No individual may be granted in any fiscal year of the Company Other Share-Based Awards that
are contingent upon the attainment of Performance Goals covering more than 400,000 Shares (as such
number may be adjusted from time to time and pursuant to the Transaction). For the avoidance of
doubt, in each fiscal year of the Company subsequent to the Transaction, no individual may be
granted Other Share-Based Awards that are contingent upon the attainment of Performance Goals
covering more than 200,000 Shares (and for the fiscal year during which the Transaction occurs, the
limitation shall be based on an 400,000 share limit with respect to the portion of the fiscal year
ending immediately prior to the date of the Transaction, and the limitation shall be based on a
200,000 share limit (in the aggregate with grants made prior to the Transaction on a split-adjusted
basis) with respect to the portion of the fiscal year commencing on the date of the Transaction).

In the event any merger, reorganization, consolidation, recapitalization, spin-off, stock
dividend, share split, reverse share split, extraordinary distribution with respect to the Ordinary
Shares, any sale or transfer of all or part of the Company’s assets or business or other change in
corporate structure affecting the Ordinary Shares occurs or is proposed (such an event, an “Equity
Restructuring”), the Committee or the Board shall, effective as of the time of the Equity
Restructuring, make such substitution or adjustment in the aggregate number and kind of shares or
other property reserved for issuance under the Plan or any limitations under the Plan, in the
number, kind and Exercise Price (as defined herein) of shares or other property subject to
outstanding Stock Options, in the number and kind of shares or other property subject to Restricted
Share Awards or other Awards, and/or such other substitution or adjustments, in each case as the
Committee or the Board shall determine in its discretion to be appropriate, such that the value of
the adjusted shares or other property immediately prior to the Equity Restructuring is the same as
the value of such adjusted shares or other property immediately following the Equity Restructuring,
provided that, in no case shall such determination adversely affect in any material respect the
rights of a Participant hereunder or under any Award Agreement. In
connection with any event described in this paragraph, the Committee may provide, in its sole
discretion, for the cancellation of any outstanding Stock Option and payment in cash or other
property in exchange therefor.

 

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In the event of a merger or consolidation in which the Company is not the surviving entity or
in the event of any transaction that results in the acquisition of substantially all of the
Company’s outstanding Ordinary Shares by a single person or entity or by a group of persons and/or
entities acting in concert, or in the event of the sale or transfer of all or substantially all of
the Company’s assets (all of the foregoing being referred to as “Acquisition Events”), then the
Committee may, in its sole discretion, terminate all outstanding Stock Options, effective as of the
date of the Acquisition Event, by delivering notice of termination to each Participant at least 20
days prior to the date of consummation of the Acquisition Event, in which case during the period
from the date on which such notice of termination is delivered to the consummation of the
Acquisition Event, each such Participant shall have the right to exercise in full all of his or her
Stock Options that are then outstanding (without regard to any limitations on exercisability
otherwise contained in the Stock Option agreements), but any such exercise shall be contingent upon
and subject to the occurrence of the Acquisition Event, and, provided that, if the Acquisition
Event does not take place within a specified period after giving such notice for any reason
whatsoever, the notice and exercise pursuant thereto shall be null and void.

Section 4. Participants

The following persons shall be “Participants” eligible to be granted Awards under the Plan:
(i) Persons who are officers, directors, employees or consultants of the Company and/or any of its
Affiliates; (ii) Persons who at the time of grant may be performing (or subject to being required
to perform) services for the Company or any of its Affiliates (including, without limitation,
officers, directors, employees, Affiliates and consultants of FPC); and (iii) Non-Employee
Directors of the Company and its Affiliates who are responsible for or contribute to the
management, growth and profitability of the business of the Company and its Affiliates. However,
Incentive Stock Options may be granted only to employees of the Company its Subsidiaries or its
Parent.

Section 5. Stock Options

The Board or the Committee as its duly authorized delegate shall have the authority to grant
to Participants Stock Options. Stock Options shall be evidenced by Option Agreements, which shall
include such terms and provisions as the Committee may determine from time to time. The grant of a
Stock Option shall occur on the date the Committee by resolution selects an individual to receive a
grant of a Stock Option, determines the number of Ordinary Shares to be subject to such Stock
Option to be granted to such individual and specifies the terms and provisions of the Stock Option,
or on such other date as the Committee may determine. The Company shall notify a Participant of any
grant of a Stock Option, and a written Option Agreement shall be duly executed and delivered by the
Company to the Participant. Such Option Agreement shall become effective upon execution and
delivery by the Participant to the Company.

 

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Stock Options shall be subject to the following terms and conditions, and shall contain such
additional terms and conditions as the Committee shall deem desirable:

(a) Exercise Price. The price per Ordinary Share purchasable under a Stock Option
shall be such price as determined by the Committee and set forth in the Option Agreement (the
“Exercise Price”); provided that the Exercise Price shall not be less than the nominal or par value
of the Ordinary Shares, and:

(i) in the case of an Incentive Stock Option

(A) granted to an employee of the Company, its Subsidiaries or its Parent who,
at the time of the grant of such Incentive Stock Option, owns shares representing
more than ten percent (10%) of the voting power of all share classes of the Company
or its Subsidiaries or its Parent (a “Ten Percent Shareholder”), the per share
Exercise Price shall be no less than one hundred ten percent (110%) of the Fair
Market Value per share on the date of grant; and

(B) granted to any employee of the Company, its Subsidiaries or its Parent
other than a Ten Percent Shareholder, the per share Exercise Price shall be no less
than one hundred percent (100%) of the Fair Market Value per share on the date of
grant.

(ii) in the case of a Nonstatutory Stock Option, granted to a California Participant

(A) who is a Ten Percent Shareholder, the per share Exercise Price shall be no
less than one hundred ten percent (110%) of the Fair Market Value per share on the
date of the grant; and

(B) who is not a Ten Percent Shareholder, the per share Exercise Price shall be
no less than eighty-five percent (85%) of the Fair Market Value per share on the
date of grant.

(iii) in the case of any other Stock Option granted, the per share Exercise Price as
determined by the Committee.

(b) Option Term. The term of each Stock Option shall be fixed by the Committee
provided, however, that no Stock Option shall be exercisable more than ten (10) years after the
date such Stock Option is granted. Absent any such term being fixed by the Committee, pursuant to
an Option Agreement or otherwise, such term shall be ten (10) years; provided, however, that the
term of an Incentive Stock Option granted to a Ten Percent Shareholder shall not exceed five (5)
years.

(c) Exercisability. Except as otherwise provided herein, Stock Options shall be
exercisable at such time or times and subject to such terms and conditions as shall be determined
by the Committee; provided that Stock Options granted to California Participants (other than an
officer, director, manager or consultant) shall become exercisable at a rate of no less than twenty
percent (20%) per year over five (5) years from the date the Stock Options are granted. If the
Committee provides that any Stock Option is exercisable only in installments, the Committee
may at any time waive such installment exercise provisions, in whole or in part, based on such
factors as the Committee may determine. In addition, the Committee may at any time accelerate the
exercisability of any Stock Option.

 

9

 

(d) Method of Exercise. Subject to the provisions of this Section 5, vested Stock
Options may be exercised, in whole or in part, at any time during the option term by giving written
notice of exercise to the Company specifying the number of Ordinary Shares subject to the Stock
Option to be purchased.

Such notice shall be accompanied by payment in full of the Exercise Price per share by
certified or bank check or such other instrument or method of payment as the Committee may accept.
Unless determined otherwise by the Committee at the time of grant and set forth in the Option
Agreement, payment, in full or in part, may also be made in the form of fully vested Ordinary
Shares (other than Restricted Shares) already owned by the Participant (for at least six months or
such other period necessary to avoid a charge, for accounting purposes, against the Company’s
earnings as reported in the Company’s financial statements if acquired upon exercise of a Stock
Option or received upon the lapse of restrictions on an Award of Restricted Shares) of the same
class as the Ordinary Shares subject to the Stock Option (based on the Fair Market Value of the
Ordinary Shares on the date the Stock Option is exercised) or, if the Ordinary Shares are traded on
a national securities exchange, The Nasdaq Stock Market, Inc. or quoted on a national quotation
system sponsored by the National Association of Securities Dealers, and the Committee authorizes,
to the extent permitted by law, through a procedure whereby the Participant delivers irrevocable
instructions to a broker reasonably acceptable to the Committee to deliver promptly to the Company
an amount equal to the purchase price.

No Ordinary Shares shall be issued until full payment therefore has been made. Except as
otherwise provided in the Management Shareholders’ Agreement, if the Participant is a party to the
Management Shareholders’ Agreement, and subject to Sections 10(b), 10(e) and 10(h) hereof and the
applicable Option Agreement, a Participant shall have all of the rights of a shareholder of the
Company holding the class or series of Ordinary Shares that is subject to such Stock Option
(including, if applicable, the right to vote the shares and the right to receive dividends and
distributions), when the Participant has given written notice of exercise, has paid in full for
such shares and, if requested, has given the representations referred to in Section 10(b) or as may
otherwise be required in accordance with Sections 10(e) and 10(h).

(e) Nontransferability of Stock Options. No Stock Option shall be transferable by the
Participant other than (i) by will or by the laws of descent and distribution, or (ii) as otherwise
expressly permitted under the applicable Option Agreement, to a Family Member, subject to the
restrictions in the Management Shareholders’ Agreement. All Stock Options granted to California
Participants shall not be transferable by such Participants except as permitted by the California
Code of Regulations Section 260.140.41(d). All Stock Options granted to an individual shall be
exercisable, subject to the terms of the Plan, during the Participant’s lifetime, only by the
Participant or any Person to whom such Stock Option is transferred pursuant to the preceding
sentence, including such Participant’s guardian, legal representative and other transferee. The
term “Participant” includes the estate of the Participant or the legal representative of the
Participant named in the Option Agreement and any Person to whom an Option is
otherwise transferred in accordance with this Section 5(e), by will or the laws of descent and
distribution; provided, however, that references herein to Employment of a Participant or
termination of Employment of a Participant shall continue to refer to the Employment or termination
of Employment of the applicable grantee of an Award hereunder.

 

10

 

(f) Termination of Employment.

(i) Termination for Any Reason (other than Cause). Except as otherwise determined by
the Committee and expressly provided in the applicable Option Agreement or applicable
employment or consulting agreement, upon the termination of the Participant’s Employment for
any reason (other than Cause), including death or Disability, vesting ceases, the term of
unvested stock options lapses and vested and unvested options will become unexercisable,
except that such Participant shall have ninety (90) days to exercise the portion of the
Participant’s Stock Option that is vested on the date of the Participant’s termination of
Employment. In no event shall the Committee grant a Stock Option to a California Participant
that provides the California Participant with less than thirty (30) days after the date of
such California Participant’s termination of Employment if such termination was caused by
other than death, Disability or Cause to exercise the Stock Option with respect to any
vested shares. Furthermore, in no event shall the Committee grant a Stock Option to a
California Participant that provides the California Participant with less than six months
after the California Participant’s termination due to death or Disability to exercise the
Stock Option with respect to any vested shares. Notwithstanding anything contained herein to
the contrary, the Participant shall not be permitted to exercise any Stock Option at a time
beyond the initial option term.

(ii) Termination for Cause. All outstanding and unexercised Stock Options, whether
vested or unvested, as of the time the Participant is notified that his or her Employment is
terminated for Cause or at the time the Participant voluntarily terminates employment within
ninety (90) days after the occurrence of an event that would be grounds for a termination
for Cause, will be cancelled immediately.

Section 6. Restricted Shares

The Committee shall determine the Participants to whom and the time or times at which grants
of Restricted Shares will be awarded, the number of shares to be awarded to any Participant, the
purchase price, the conditions for vesting, the time or times within which such Awards may be
subject to cancellation, repurchase and restrictions on transfer and any other terms and conditions
of the Awards (including provisions (i) relating to placing legends on certificates representing
Restricted Shares, (ii) permitting the Company to require that Restricted Shares be held in custody
by the Company with a share transfer certificate from the owner thereof until restrictions lapse
and (iii) relating to any rights to repurchase Restricted Shares on the part of the Company), in
addition to those contained in the Management Shareholders’ Agreement, if the Participant is a
party to the Management Shareholders’ Agreement. Each Participant receiving Restricted Shares shall
be issued a share certificate in respect of such Restricted Shares, unless the Committee elects to
use another system, such as book entries by the transfer agent, as evidencing ownership of shares
of Restricted Shares. Unless otherwise
specified in the Restricted Share Agreement, upon a Participant’s termination for any reason
during the relevant restriction period, all unvested Restricted Shares will be forfeited to the
Company, without compensation.

 

11

 

Any right of the Company to repurchase Restricted Shares from a California Participant upon
termination of Employment shall be at a repurchase price that is at least equal to the lesser of
(x) the Fair Market Value of such shares on the date of termination of Employment (provided that
such repurchase right shall terminate as of the Registration Event) or (y) the original purchase
price, provided that in the case of (y) such repurchase right lapses at a rate of no less than
twenty percent (20%) of the shares per year over five years from the date the Restricted Shares are
granted; and provided that in the case of both (x) and (y) such repurchase right is exercised
within ninety (90) days of termination of Employment. Furthermore, in addition to the foregoing
restrictions, Restricted Shares held by an officer, director or consultant of the Company or one of
its Affiliate may be subject to additional or greater restrictions and any restrictions set forth
in the Company’s Articles of Association. The terms and conditions of Restricted Share Awards shall
be set forth in a Restricted Share Agreement, which shall include such terms and provisions as the
Committee may determine from time to time, and which shall be duly executed and delivered by the
Company to the Participant and become effective upon execution and delivery by the Participant to
the Company. Except as provided in this Section 6, the Restricted Share Agreement, the Management
Shareholders’ Agreement and any other relevant agreements, the Participant shall have, with respect
to the Restricted Shares, all of the rights of a shareholder of the Company holding the class or
series of Ordinary Shares that is the subject of the Restricted Share Award, including, if
applicable, the right to vote the shares and, subject to the following sentence, the right to
receive any cash dividends or distributions (but, subject to the third paragraph of Section 3, not
the right to receive non-cash dividends or distributions). If so determined by the Committee in the
applicable Restricted Share Agreement, cash dividends and distributions on the class or series of
Ordinary Shares that is the subject of the Restricted Share Award shall be automatically deferred
and reinvested in additional Restricted Shares, held subject to the vesting of the underlying
Restricted Shares, or held subject to meeting conditions applicable only to dividends and
distributions.

Section 7. Other Share-Based Awards

The Committee is authorized to grant to Participants Other Share-Based Awards that are payable
in, valued in whole or in part by reference to, or otherwise based on or related to Ordinary
Shares, including but not limited to, Ordinary Shares awarded purely as a bonus and not subject to
any restrictions or conditions, Ordinary Shares in payment of the amounts due under an incentive or
performance plan sponsored or maintained by the Company or a Subsidiary, share appreciation rights
(either separately or in tandem with Options), share equivalent units, and Awards valued by
reference to book value of Ordinary Shares.

 

12

 

Subject to the provisions of this Plan, the Committee shall have authority to determine the
persons to whom and the time or times at which such Awards shall be made, the number of Ordinary
Shares to be awarded pursuant to or referenced by such Awards, and all other conditions of the
Awards. Grants of Other Share-Based Awards may be subject to such conditions, restrictions and
contingencies as the Committee may determine which may include, but are not limited to, continuous
service with the Company or an Affiliate and/or the
achievement of Performance Goals. Except as provided in the last sentence of this paragraph,
the criteria that may be used by the Committee in granting Other Share-Based Awards contingent on
Performance Goals shall consist of the attainment of one or more of the Performance Goals. The
Committee may select one or more Performance Goals for measuring performance and the measuring may
be stated in absolute terms or relative to comparable companies. The measurements used in
Performance Goals set under the Plan shall be determined in accordance with Generally Accepted
Accounting Principles (“GAAP”), except, to the extent that any objective Performance Goals are
used, if any measurements require deviation from GAAP, such deviation shall be at the discretion of
the Committee at the time the Performance Goals are set or at such later time to the extent
permitted under Section 162(m) of the Code. Other Performance Goals may be used to the extent such
goals satisfy Section 162(m) of the Code or the Other-Share Based Award is not intended to satisfy
the requirements of Section 162(m) of the Code.

Other Share-Based Awards made pursuant to this Section 7 are subject to the following terms
and conditions:

(a) Dividends. Unless otherwise determined by the Committee at the time of Award,
subject to the provisions of the Award agreement and this Plan, the recipient of an Award under
this Section 7 shall be entitled to receive, currently or on a deferred basis, dividends or
dividend equivalents with respect to the number of Ordinary Shares covered by the Award, as
determined at the time of the Award by the Committee, in its sole discretion.

(b) Vesting. Any Award under this Section 7 and any Ordinary Shares covered by any
such Award shall vest or be forfeited to the extent so provided in the Award agreement, as
determined by the Committee, in its sole discretion.

(c) Waiver of Limitation. In the event of the Participant’s Retirement, Disability or
death, or in cases of special circumstances, the Committee may, in its sole discretion, waive in
whole or in part any or all of the limitations imposed hereunder (if any) with respect to any or
all of an Award under this Article.

(d) Purchase Price. Ordinary Shares issued on a bonus basis under this Section 7 may
be issued for no cash consideration; Ordinary Shares purchased pursuant to a purchase right awarded
under this Section 7 shall be priced as determined by the Committee.

(e) Committee Certification. At the expiration of the Performance Period, the
Committee shall determine and certify in writing the extent to which the Performance Goals have
been achieved.

Section 8. Term, Amendment and Termination

This Plan will expire on September 5, 2013, ten years from its adoption by the Board of
Directors of UAI Ltd. Awards outstanding as of such date shall not be affected or impaired by the
expiration of the Plan and shall be subject to the terms of the Plan.

 

13

 

The Board or the Committee may at any time amend, suspend, or terminate the Plan,
prospectively or retroactively; provided, however, that, unless otherwise required by law or
specifically provided herein, no amendment, suspension or termination shall be made that is
adverse to the rights of a Participant under an Award theretofore granted without such
Participant’s consent; provided, further, without the approval of the shareholders of the Company
in accordance with applicable law, to the extent required by the applicable provisions of Rule
16b-3 or Section 162(m) of the Code or the rules of any exchange or system on which the Ordinary
Shares are listed or traded, or, with regard to Incentive Stock Options, Section 422 of the Code,
no amendment may be made which would (i) increase the aggregate number of Ordinary Shares that may
be issued under this Plan or the maximum individual Participant limitations under Section 3; (ii)
change the classification of Participants eligible to receive Awards under this Plan; (iii) extend
the maximum Stock Option period or (iv) require shareholder approval in order for the Plan to
continue to comply with the applicable provisions of Rule 16b-3 or Section 162(m) of the Code, or,
with regard to Incentive Stock Options, Section 422 of the Code.

The Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, but no such amendment shall be made that is adverse to the rights of the Participant
thereunder without the Participant’s consent.

Section 9. Unfunded Status of Plan

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

Section 10. General Provisions

(a) Awards and Certificates. Shares of Restricted Shares and Ordinary Shares issuable
upon the exercise of a Stock Option (together, “Plan Shares”) shall be evidenced in such manner as
the Committee may deem appropriate, including book entry registration or issuance of one or more
share certificates. Any certificate issued in respect of Plan Shares shall be registered in the
name of such Participant and shall bear appropriate legends referring to the terms, conditions, and
restrictions applicable to such Award. Such Plan Shares may bear other legends to the extent the
Committee or the Board determines it to be necessary or appropriate, including any required by the
Management Shareholders’ Agreement. If and when all restrictions expire without a prior
cancellation of the Plan Shares theretofore subject to such restrictions, upon surrender of
legended certificates representing such shares new certificates for such shares shall be delivered
to the Participant without the second legend listed above.

(b) Representations and Warranties. The Committee may require each Person purchasing
or receiving Plan Shares to (i) represent to and agree with the Company in writing that such Person
is acquiring the shares without a view to the distribution thereof and (ii) make any other
representations and warranties that the Committee deems appropriate.

(c) Additional Compensation. Nothing contained in the Plan shall prevent the Company
or any of its Affiliates from adopting other or additional compensation arrangements for its
employees.

 

14

 

(d) No Right of Employment. Adoption of the Plan or grant of any Award shall not
confer upon any employee or any other individual any right to continued Employment, nor shall it
interfere in any way with the right of the Company or any of its Affiliates to terminate the
Employment of any eligible Participant at any time.

(e) Withholding Taxes. No later than the date as of which an amount first becomes
includible in the gross income of a Participant for income tax purposes or subject to Federal
Insurance Contributions Act withholdings with respect to any Award, including, without limitation,
upon exercise of any Stock Option, under the Plan, such Participant shall pay to the Company or, if
appropriate, one of its Affiliates, or make arrangements satisfactory to the Committee regarding
the payment of, any United States federal, state or local or foreign taxes of any kind required by
law to be withheld with respect to such amount. If approved by the Committee, minimum required
statutory withholding obligations may be settled with Ordinary Shares, including Ordinary Shares
that are part of the Award that gives rise to the withholding requirement. The obligations of the
Company under the Plan shall be conditional on such payment or arrangements, and the Company and
its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from
any payment otherwise due to the Participant. The Committee may establish such procedures as it
deems appropriate, including making irrevocable elections, for the settlement of withholding
obligations with Ordinary Shares.

(f) Beneficiaries. The Committee shall establish such procedures as it deems
appropriate for a Participant to designate a beneficiary to whom any amounts payable in the event
of the Participant’s death are to be paid or by whom any rights of the Participant, after the
Participant’s death, may be exercised.

(g) Governing Law. The Plan and all Awards made and actions taken thereunder shall be
governed by and construed and enforced in accordance with the laws of the State of Delaware without
regard to the principles of conflicts of law thereof.

(h) Compliance with Laws. If any law or any regulation of any governmental body,
commission or agency having jurisdiction shall require the Company or a Participant seeking to
exercise Stock Options to take any action with respect to the Plan Shares to be issued upon the
exercise of Stock Options then the date upon which the Company shall issue or cause to be issued
the Plan Shares or the rights associated therewith shall be postponed until full compliance (as
determined by the Committee in its sole discretion) has been made with all such requirements of law
or regulation; provided, that the Company shall use its reasonable efforts to take all necessary
action to comply with such requirements of law or regulation. Moreover, in the event that the
Company shall determine that, in compliance with the Securities Act or other applicable statutes or
regulations (including state “Blue Sky” or other securities laws), it is necessary to register any
of the Plan Shares with respect to which an exercise of a Stock Option has been made, or to qualify
any such Plan Shares (or the Company) for exemption from any of the requirements of the Securities
Act or any other applicable statute or regulation, no Stock Options may be exercised and no Plan
Shares shall be issued to the exercising Participant until the required action has been completed;
provided, that the Company shall use its reasonable efforts to take all necessary action to comply
with such requirements of law or regulation. Notwithstanding anything to the contrary contained
herein, neither the Board nor the members of the Committee owes a fiduciary duty to any Participant
in his or her capacity as such.

 

15

 

(i) Fractional Shares. No fractional shares shall be issued under the Plan and no cash
settlements shall be made with respect to fractional shares eliminated by rounding.

(j) Shareholder Approval. The Plan shall be subject to approval by the shareholders of
the Company within twelve (12) months before or after the date the Plan is adopted. Such
shareholder approval shall be obtained in the degree and manner required under applicable state and
federal or foreign law and the rules of any stock exchange upon which the Company’s Ordinary Shares
are listed, quoted or actively traded.

(k) Information to Participants. The Company shall provide to each California
Participant, not less frequently than annually, copies of annual financial statements. The Company
shall also provide such statements to each individual who acquires Ordinary Shares pursuant to the
Plan while such individual owns such Ordinary Shares. The Company shall not be required to provide
such statements to key employees whose duties in connection with the Company assure their access to
equivalent information.

(l) Agreement. As a condition to the grant of any Award, if requested by the Company
and the lead underwriter of any IPO (the “Lead Underwriter”), a Participant shall irrevocably agree
not to sell, contract to sell, grant any option to purchase, transfer the economic risk of
ownership in, make any short sale of, pledge or otherwise transfer or dispose of, any interest in
any Ordinary Shares or any securities convertible into, derivative of, or exchangeable or
exercisable for, or any other rights to purchase or acquire Ordinary Shares (except Ordinary Shares
included in such IPO or acquired on the public market after such offering) during such period of
time following the effective date of a registration statement of the Company filed under the
Securities Act that the Lead Underwriter shall specify (the “Lock-up Period”). The Participant
shall further agree to sign such documents as may be requested by the Lead Underwriter to effect
the foregoing and agree that the Company may impose stop-transfer instructions with respect to
Ordinary Shares acquired pursuant to an Award until the end of such Lock-up Period.

(m) Management Shareholders’ Agreement and Other Requirements. Notwithstanding
anything herein to the contrary, as a condition to the receipt of Plan Shares, to the extent
required by the Committee, the Participant shall execute and deliver a shareholders’ agreement or
such other documentation which shall set forth certain restrictions on transferability of the Plan
Shares, a right of first refusal of the Company with respect to Plan Shares, the right of the
Company to purchase Plan Shares and such other terms as the Board or Committee shall from time to
time establish. Such shareholders’ agreement shall apply to all Plan Shares acquired under the
Plan. The Company may require, as a condition of grant or exercise of any Award, the Participant to
become a party to any other existing shareholders’ agreement.

(n) California Provisions. Notwithstanding anything herein to the contrary, the
provisions in the Plan applicable to Awards granted to California Participants shall apply only to
the extent necessary to comply with Title 10 of the California Code of Regulations at the time an
Award is granted and shall not apply if the Ordinary Shares are an exempt security under Section
25100 of the California Corporations Code.

 

16

 

APPENDIX A

PERFORMANCE CRITERIA

Performance Goals established for purposes of an Award of Performance-Based Awards intended to
comply with Section 162(m) of the Code shall be based on one or more of the following performance
criteria (“Performance Criteria”): (i) the attainment of certain target levels of, or a specified
percentage increase in, revenues, income before taxes and extraordinary items, net income,
operating income, earnings before income tax, earnings before interest, taxes, depreciation and
amortization or a combination of any or all of the foregoing; (ii) the attainment of certain target
levels of, or a percentage increase in, after-tax or pre-tax profits including, without limitation,
that attributable to continuing and/or other operations; (iii) the attainment of certain target
levels of, or a specified increase in, operational cash flow; (iv) the achievement of a certain
level of, reduction of, or other specified objectives with regard to limiting the level of increase
in, all or a portion of, the Company’s bank debt or other long-term or short-term public or private
debt or other similar financial obligations of the Company, which may be calculated net of such
cash balances and/or other offsets and adjustments as may be established by the Committee; (v)
earnings per share or the attainment of a specified percentage increase in earnings per share or
earnings per share from continuing operations; (vi) the attainment of certain target levels of, or
a specified increase in return on capital employed or return on invested capital; (vii) the
attainment of certain target levels of, or a percentage increase in, after-tax or pre-tax return on
shareholders’ equity; (viii) the attainment of certain target levels of, or a specified increase
in, economic value added targets based on a cash flow return on investment formula; (ix) the
attainment of certain target levels in the fair market value of the shares of the Company’s
Ordinary Shares; (x) the growth in the value of an investment in the Company’s Ordinary Shares
assuming the reinvestment of dividends; (xi) the attainment of a certain level of, reduction of, or
other specified objectives with regard to limiting the level in or increase in, all or a portion of
controllable expenses or costs or other expenses or costs; or (xii) achievement of certain targets
with respect to the Company’s book value, assets or liabilities. For purposes of item (i) above,
“extraordinary items” shall mean all items of gain, loss or expense for the fiscal year determined
to be extraordinary or unusual in nature or infrequent in occurrence or related to a corporate
transaction (including, without limitation, a disposition or acquisition) or related to a change in
accounting principle, all as determined in accordance with standards established by Opinion No. 30
of the Accounting Principles Board.

In addition, such Performance Criteria may be based upon the attainment of specified levels of
Company (or subsidiary, division or other operational unit of the Company) performance under one or
more of the measures described above relative to the performance of other corporations.
Furthermore, such Performance Criteria may be supplemented by reference to per share
determinations. To the extent permitted under Section 162(m) of the Code, but only to the extent
permitted under Section 162(m) of the Code (including, without limitation, compliance with any
requirements for shareholder approval), the Committee may: (i) designate additional business
criteria on which the Performance Criteria may be based or (ii) adjust, modify or amend the
aforementioned business criteria.

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