Document:

EXHIBIT
10.1

 

FORCE PROTECTION, INC.

2008 Stock Plan

 

ARTICLE I

GENERAL

 

1.1          Purpose

 

The
purpose of the Force Protection, Inc. 2008 Stock Plan is to attract,
retain and motivate officers, directors and key employees (including
prospective employees), consultants and others who may perform services for the
Company (as hereinafter defined), to compensate them for their contributions to
the long-term growth and profits of the Company and to encourage them to
acquire a proprietary interest in the success of the Company.

 

1.2          Definitions
of Certain Terms

 

For
purposes of this 2008 Stock Plan, the following terms have the meanings set
forth below:

 

1.2.1        “Award” means an award made pursuant to the
Plan.

 

1.2.2        “Award Agreement” means the written document
by which each Award is evidenced, and which may, but need not be (as determined
by the Committee) executed or acknowledged by a Grantee as a condition to
receiving an Award or the benefits under an Award, and which sets forth the
terms and provisions applicable to Awards granted under the Plan to such
Grantee. Any reference herein to an agreement in writing will be deemed to
include an electronic writing to the extent permitted by applicable law.

 

1.2.3        “Board” means the Board of Directors of Force
Protection.

 

1.2.4        “Certificate” means a stock certificate (or
other appropriate document or evidence of ownership) representing shares of
Common Stock.

 

1.2.5        “Change in Control” means the occurrence of
any one of the following events:

 

(a)                            any “person” (as such term is defined in Section 3(a)(9) of
the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of
the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of Force
Protection representing 35% or more of the combined voting power of the Company’s
then outstanding securities eligible to vote for the election of the Board (the
“Company Voting
Securities”); provided, however, that the event described in this
paragraph (a) shall not be deemed to be a Change in Control by virtue
of any of the following acquisitions: (1) by the Company; (2) by any
employee benefit plan (or related trust) sponsored or maintained by the
Company; (3) by any underwriter temporarily holding securities pursuant to
an offering of such securities; (4) pursuant to a Non-Control Transaction
(as defined in paragraph (c) below); or (5) a transaction (other
than one described in paragraph (c) below) in which Company Voting
Securities are acquired from the Company, if a majority of the Incumbent Board
(as defined in paragraph (b) below) 

 

 

approves
a resolution providing expressly that the acquisition pursuant to this clause (5) does
not constitute a Change in Control under this paragraph (a);

 

(b)                           individuals who, on February 29, 2008, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority thereof, provided that
any person becoming a director subsequent to February 29, 2008, whose
election or nomination for election was approved by a vote of at least
two-thirds of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of Force Protection in
which such person is named as a nominee for director, without objection to such
nomination) shall be considered a member of the Incumbent Board; provided,
however, that no individual initially elected or nominated as a
director of Force Protection as a result of an actual or threatened election
contest with respect to directors or any other actual or threatened
solicitation of proxies or consents by or on behalf of any person other than
the Board shall be deemed to be a member of the Incumbent Board;

 

(c)                            the consummation of a merger, consolidation, share exchange or similar
form of corporate transaction involving Force Protection or any of its
Subsidiaries that requires the approval of Force Protection’s stockholders
(whether for such transaction or the issuance of securities in the transaction
or otherwise) (a “Reorganization”),
unless immediately following such Reorganization: (1) more than 60% of the
total voting power of (x) the corporation resulting from such
Reorganization (the “Surviving
Company”), or (y) if applicable, the ultimate parent
corporation that directly or indirectly has beneficial ownership of 95% of the
voting securities eligible to elect directors of the Surviving Company (the “Parent Company”), is
represented by Company Voting Securities that were outstanding immediately
prior to such Reorganization (or, if applicable, is represented by shares into
which such Company Voting Securities were converted pursuant to such
Reorganization), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting Securities
among holders thereof immediately prior to the Reorganization; (2) no
person (other than any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Company or the Parent Company) is or becomes the
beneficial owner, directly or indirectly, of 35% or more of the total voting
power of the outstanding voting securities eligible to elect directors of the
Parent Company (or, if there is no Parent Company, the Surviving Company); and (3) at
least a majority of the members of the board of directors of the Parent Company
(or, if there is no Parent Company, the Surviving Company) following the
consummation of the Reorganization were members of the Incumbent Board at the
time of the Board’s approval of the execution of the initial agreement
providing for such Reorganization (any Reorganization which satisfies all of
the criteria specified in (1), (2) and (3) above shall be deemed to
be a “Non-Control
Transaction”);

 

(d)                           the stockholders of Force Protection approve a plan of complete liquidation
or dissolution; or

 

(e)                            the consummation of a sale (or series of sales) of all or substantially
all of the assets of the Company to an entity that is not an affiliate of Force
Protection.

 

Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
any person acquires beneficial ownership of 35% or more of the Company Voting
Securities as a result of the acquisition of Company Voting Securities by the
Company which reduces the number 

 

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of
Company Voting Securities outstanding; provided, that, if after such
acquisition by Force Protection such person becomes the beneficial owner of
additional Company Voting Securities that increases the percentage of outstanding
Company Voting Securities beneficially owned by such person, a Change in
Control shall then occur.

 

1.2.6        “Code” means the Internal Revenue Code of
1986, as amended from time to time, or any successor thereto, and the
applicable rulings and regulations thereunder.

 

1.2.7        “Committee” has the meaning set forth in Section 1.3.1.

 

1.2.8        “Common Stock” means the common stock of Force
Protection, par value $0.001 per share, and any other securities or property
issued in exchange therefor or in lieu thereof pursuant to Section 1.6.3.

 

1.2.9        “Company” means Force Protection, Inc.
and its consolidated subsidiaries.

 

1.2.10      “Consent” has the meaning set forth in Section 3.3.2.

 

1.2.11      “Consultant” means any individual,
corporation, partnership, limited liability company or other entity that
provides bona fide consulting or advisory services to the Company pursuant to a
written agreement.

 

1.2.12      “Covered Person” has the meaning set forth in Section 1.3.4.

 

1.2.13      “Director” means a member of the Board or a
member of the board of directors of a consolidated subsidiary of Force
Protection.

 

1.2.14      “Effective Date” means September 19,
2008.

 

1.2.15      “Employee” means a regular, active employee
and a prospective employee of the Company.

 

1.2.16      “Employment” means a Grantee’s performance of
services for the Company, as determined by the Committee. The terms “employ”
and “employed” will have their correlative meanings. The Committee in its sole
discretion may determine (a) whether and when a Grantee’s leave of absence
results in a termination of Employment (for this purpose, unless the Committee
determines otherwise, a Grantee will be treated as terminating Employment with
the Company upon the occurrence of an Extended Absence), (b) whether and
when a change in a Grantee’s association with the Company results in a
termination of Employment and (c) the impact, if any, of any such leave of
absence or change in association on outstanding Awards. Unless expressly
provided otherwise, any references in the Plan or any Award Agreement to a
Grantee’s Employment being terminated will include both voluntary and
involuntary terminations.

 

1.2.17      “Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time, or any successor thereto, and the
applicable rules and regulations thereunder.

 

1.2.18      “Extended Absence” means the Grantee’s
inability to perform for six continuous months, due to illness, injury or
pregnancy-related complications, substantially all the essential duties of the
Grantee’s occupation, as determined by the Committee.

 

1.2.19      “Fair Market Value” means, with respect to a
share of Common Stock, the closing 

 

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price
reported for the Common Stock on the applicable date as reported on the NASDAQ
Capital Market or, if  not
so reported, as determined in accordance with a valuation methodology approved
by the Committee, unless determined as otherwise specified herein. For purposes
of the grant of any Award, the applicable date will be the trading day on which
the Award is granted or, if the date the Award is granted is not a trading day,
the trading day immediately prior to the date the Award is granted. For
purposes of the exercise of any Award, the applicable date is the date a notice
of exercise is received by the Company or, if such date is not a trading day,
the trading day immediately following the date a notice of exercise is received
by the Company.

 

1.2.20                  “Force Protection” means Force Protection, Inc.,
or a successor entity contemplated by Section 3.6.

 

1.2.21                  “Grantee” means an Employee, Director or
Consultant who receives an Award.

 

1.2.22                  “Incentive Stock Option” means a stock option
to purchase shares of Common Stock that is intended to be an “incentive stock
option” within the meaning of Sections 421 and 422 of the Code, as now
constituted or subsequently amended, or pursuant to a successor provision of
the Code, and which is designated as an Incentive Stock Option in the
applicable Award Agreement.

 

1.2.23                  “Plan” means this Force Protection, Inc.
2008 Stock Plan, as amended from time to time.

 

1.2.24                  “Plan Action” will have the meaning set forth
in Section 3.3.1.

 

1.2.25                  “Section 409A” means Section 409A of
the Code, including any amendments or successor provisions to that section, and
any regulations and other administrative guidance thereunder, in each case as
they may be from time to time amended or interpreted through further
administrative guidance.

 

1.2.26                  “Securities Act” means the Securities Act of
1933, as amended from time to time, or any successor thereto, and the
applicable rules and regulations thereunder.

 

1.2.27                  “Ten Percent Stockholder” means a person
owning stock possessing more than 10% of the total combined voting power of all
classes of stock of Force Protection and of any subsidiary or parent
corporation of Force Protection.

 

1.2.28                  “Treasury Regulations” means the regulations
promulgated under the Code by the United States Treasury Department, as
amended.

 

1.3                               Administration

 

1.3.1                        The Compensation Committee of the Board (as
constituted from time to time, and including any successor committee, the “Committee”) will
administer the Plan. In particular, the Committee will have the authority in
its sole discretion to:

 

(a)                            exercise all of the powers granted to it under the Plan;

 

(b)                           construe, interpret and implement the Plan and all Award Agreements;

 

(c)                            prescribe, amend and rescind rules and regulations relating to the
Plan, including rules governing the Committee’s own operations;

 

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(d)                           make all determinations necessary or advisable in administering the
Plan;

 

(e)                            correct any defect, supply any omission and reconcile any inconsistency
in the Plan;

 

(f)                              amend the Plan to reflect changes in applicable law but, subject to Section 1.6.3 or as otherwise
specifically provided herein, no such amendment shall adversely impair the
rights of the Grantee of any Award without the Grantee’s consent;

 

(g)                           grant Awards and determine who will receive Awards, when such Awards
will be granted and the terms of such Awards, including setting forth
provisions with regard to the effect of a termination of Employment on such
Awards;

 

(h)                           amend any outstanding Award Agreement in any respect, but, subject to Section 1.6.3 or as otherwise
specifically provided herein, no such amendment shall adversely impair the
rights of the Grantee of any Award without the Grantee’s consent, including,
without limitation, to (1) accelerate the time or times at which the Award
becomes vested, unrestricted or may be exercised (and, in connection with such
acceleration, the Committee may provide that any shares of Common Stock
acquired pursuant to such Award will be restricted shares, which are subject to
vesting, transfer, forfeiture or repayment provisions similar to those in the Grantee’s
underlying Award), (2) accelerate the time or times at which shares of
Common Stock are delivered under the Award (and, without limitation on the
Committee’s rights, in connection with such acceleration, the Committee may
provide that any shares of Common Stock delivered pursuant to such Award will
be restricted shares, which are subject to vesting, transfer, forfeiture or
repayment provisions similar to those in the Grantee’s underlying Award), (3) waive
or amend any goals, restrictions or conditions set forth in such Award
Agreement, or impose new goals, restrictions and conditions or (4) reflect
a change in the Grantee’s circumstances (e.g., a change to part-time
employment status or a change in position, duties or responsibilities); and

 

(i)                               determine at any time whether, to what extent and under what
circumstances and method or methods, subject to
Section 3.13, (1) Awards may be (A) settled in cash,
shares of Common Stock, other securities, other Awards or other property (in
which event, the Committee may specify what other effects such settlement will
have on the Grantee’s Award, including the effect on any repayment provisions
under the Plan or Award Agreement), (B) exercised or (C) canceled,
forfeited or suspended, (2) shares of Common Stock, other securities,
other Awards or other property and other amounts payable with respect to an
Award may be deferred either automatically or at the election of the Grantee
thereof or of the Committee, (3) to the extent permitted under applicable
law, loans (whether or not secured by Common Stock) may be extended by the
Company with respect to any Awards, (4) Awards may be settled by Force
Protection, any of its subsidiaries or affiliates or any of its or their
designees and (5) the exercise price for any stock option (other than an
Incentive Stock Option, unless the Committee determines that such a stock
option will no longer constitute an Incentive Stock Option) or stock
appreciation right may be reset.

 

1.3.2                        Actions of the Committee may be taken by the
vote of a majority of its members present at a meeting (which may be held
telephonically). Any action may be taken by a written instrument signed by a
majority of the Committee members, and action so taken will be fully as
effective as if it had been taken by a vote at a meeting. The determination of
the Committee on all matters relating to the Plan or any Award Agreement will
be final, binding and conclusive. The 

 

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Committee
may allocate among its members and delegate to any person who is not a member
of the Committee or to any administrative group within the Company, any of its
powers, responsibilities or duties. In delegating its authority, the Committee
will consider the extent to which any delegation may cause Awards to fail to be
deductible under Section 162(m) of the Code or to fail to meet the
requirements of Rule 16(b)-3(d)(1) or Rule 16(b)-3(e) under
the Exchange Act.

 

1.3.3        Notwithstanding anything to the contrary
contained herein, the Board may, in its sole discretion, at any time and from
time to time, grant Awards or administer the Plan. In any such case, the Board
will have all of the authority and responsibility granted to the Committee
herein.

 

1.3.4        No Director or Employee (each such
person, a “Covered
Person”) will have any liability to any person (including any
Grantee) for any action taken or omitted to be taken or any determination made
in good faith with respect to the Plan or any Award. Each Covered Person will
be indemnified and held harmless by Force Protection against and from (a) any
loss, cost, liability or expense (including attorneys’ fees) that may be
imposed upon or incurred by such Covered Person in connection with or resulting
from any action, suit or proceeding to which such Covered Person may be a party
or in which such Covered Person may be involved by reason of any action taken
or omitted to be taken under the Plan or any Award Agreement, in each case, in
good faith and (b) any and all amounts paid by such Covered Person, with
Force Protection’s approval, in settlement thereof, or paid by such Covered
Person in satisfaction of any judgment in any such action, suit or proceeding
against such Covered Person, provided
that Force Protection will have the right, at its own expense, to assume and
defend any such action, suit or proceeding and, once Force Protection gives
notice of its intent to assume the defense, Force Protection will have sole
control over such defense with counsel of Force Protection’s choice. The
foregoing right of indemnification will not be available to a Covered Person to
the extent that a court of competent jurisdiction in a final judgment or other
final adjudication, in either case, not subject to further appeal, determines
that the acts or omissions of such Covered Person giving rise to the
indemnification claim resulted from such Covered Person’s bad faith, fraud or
willful misconduct. The foregoing right of indemnification will not be
exclusive of any other rights of indemnification to which Covered Persons may
be entitled under Force Protection’s Amended Articles of Incorporation or
By-laws, as a matter of law, or otherwise, or any other power that Force
Protection may have to indemnify such persons or hold them harmless.

 

1.4          Persons
Eligible for Awards

 

Awards
under the Plan may be made to Employees, Directors and Consultants.

 

1.5          Types of
Awards Under Plan

 

Awards
may be made under the Plan in the form of any of the following, in each case in
respect of Common Stock: (a) stock options, (b) stock appreciation
rights, (c) restricted shares, (d) restricted stock units, (e) dividend
equivalent rights and (f) other equity-based or equity-related Awards (as
further described in Section 2.8),
that the Committee determines to be consistent with the purposes of the Plan
and the interests of the Company.

 

1.6          Shares of
Common Stock Available for Awards

 

1.6.1        Common
Stock Subject to the Plan. 
Subject to the other provisions of this Section 1.6,
the total number of shares of Common Stock that may be granted under the Plan
is 5,200,000. Such shares of Common Stock may, in the discretion of the
Committee, be either authorized but unissued shares or shares previously issued
and reacquired by Force Protection. Shares of Common Stock issued in connection
with awards that are assumed, converted or 

 

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substituted
as a result of the Company’s acquisition of another company (including by way
of merger, combination or similar transaction) will not  count against the number of shares that may
be issued under the Plan.

 

1.6.2        Replacement
of Shares.  If any Award
is forfeited, expires, terminates or otherwise lapses, in whole or in part,
without the delivery of Common Stock, then the shares of Common Stock covered
by such forfeited, expired, terminated or lapsed award will again be available
for grant under the Plan. For the avoidance of doubt, the following will not
again become available for issuance under the Plan: (A) any shares of
Common Stock withheld in respect of taxes, (B) any shares tendered or
withheld to pay the exercise price of stock options, (C) any shares
repurchased by the Company from the optionee with the proceeds from the
exercise of stock options and (D) any shares subject to stock appreciation
rights but not issued on exercise as a result of the operation of Section 2.4.4.

 

1.6.3        Adjustments.  The Committee will adjust the number of
shares of Common Stock authorized pursuant to Section 1.6.1,
adjust the individual Grantee limitations set forth in Sections 2.3.1 and 2.4.1, adjust the
number of shares of common stock set forth in
Section 2.3.2 that can be issued through Incentive Stock
Options and adjust the terms of any outstanding Awards (including, without
limitation, the number of shares of Common Stock covered by each outstanding
Award, the type of property to which the Award relates and the exercise or
strike price of any Award), in such manner as it deems appropriate (including,
without limitation, by payment of cash) to prevent the enlargement or dilution
of rights, as a result of any increase or decrease in the number of issued
shares of Common Stock (or issuance of shares of stock other than shares of
Common Stock) resulting from a recapitalization, stock split, reverse stock
split, stock dividend, spinoff, splitup, combination, reclassification or
exchange of shares of Common Stock, merger, consolidation, rights offering,
separation, reorganization or liquidation, or any other change in the corporate
structure or shares of Force Protection, including any extraordinary dividend
or extraordinary distribution; provided that no such adjustment shall be made
if or to the extent that it would cause an outstanding Award to cease to be
exempt from, or to fail to comply with, Section 409A of the Code. After
any adjustment made pursuant to this Section 1.6.3,
the number of shares of Common Stock subject to each outstanding Award will be
rounded down to the nearest whole number.

 

ARTICLE II

AWARDS UNDER THE PLAN

 

2.1          Agreements
Evidencing Awards

 

Each
Award granted under the Plan will be evidenced by an Award Agreement that will
contain such provisions and conditions as the Committee deems appropriate.
Unless otherwise provided herein, the Committee may grant Awards in tandem with
or, subject to Section 3.13,
in substitution for any other Award or Awards granted under the Plan or any
award granted under any other plan of Force Protection. By accepting an Award
pursuant to the Plan, a Grantee thereby agrees that the Award will be subject
to all of the terms and provisions of the Plan and the applicable Award
Agreement.

 

2.2          No Rights
as a Stockholder

 

No
Grantee (or other person having rights pursuant to an Award) will have any of
the rights of a stockholder of Force Protection with respect to shares of
Common Stock subject to an Award until the delivery of such shares. Except as
otherwise provided in Section 1.6.3,
no adjustments will be made for dividends, distributions or other rights
(whether ordinary or extraordinary, and whether in cash, Common Stock, other
securities or other property) for which 

 

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the
record date is before the date the Certificates for the shares are delivered.

 

2.3          Options

 

2.3.1        Grant.  Stock options may be granted to eligible
recipients in such number and at such times during the term of the Plan as the
Committee may determine; provided, however,
that the maximum number of shares of Common Stock as to which stock options may
be granted under the Plan to any one individual in any one fiscal year may not
exceed 1,000,000 shares (as adjusted pursuant to the provisions of Section 1.6.3).

 

2.3.2        Incentive
Stock Options.  At the
time of grant, the Committee will determine (a) whether all or any part of
a stock option granted to an eligible Employee will be an Incentive Stock
Option and (b) the number of shares subject to such Incentive Stock
Option; provided, however, that (1) the
aggregate Fair Market Value (determined as of the time the option is granted)
of the stock with respect to which Incentive Stock Options are exercisable for
the first time by an eligible Employee during any calendar year (under all such
plans of Force Protection and of any subsidiary or parent corporation of Force
Protection) will not exceed $100,000 and (2) no Incentive Stock Option (other
than an Incentive Stock Option that may be assumed or issued by the Company in
connection with a transaction to which Section 424(a) of the Code
applies) may be granted to a person who is not eligible to receive an Incentive
Stock Option under the Code. The form of any stock option which is entirely or
in part an Incentive Stock Option will clearly indicate that such stock option
is an Incentive Stock Option or, if applicable, the number of shares subject to
the Incentive Stock Option. No more than 5,200,000 shares of Common Stock (as
adjusted pursuant to the provisions of Section 1.6.3)
that can be delivered under the Plan shall be issued through Incentive Stock
Options.

 

2.3.3        Exercise
Price.  The exercise price
per share with respect to each stock option will be determined by the Committee
but, except as otherwise permitted by Section 1.6.3,
may never be less than the Fair Market Value of the Common Stock (or, in the
case of an Incentive Stock Option granted to a Ten Percent Stockholder, 110% of
the Fair Market Value). Unless otherwise noted in the Award Agreement, the Fair
Market Value of the Common Stock will be its closing price on the NASDAQ
Capital Market on the date of grant of the Award of stock options.

 

2.3.4        Term
of Stock Option.  In no
event will any stock option be exercisable after the expiration of
10 years (or, in the case of an Incentive Stock Option granted to a Ten
Percent Stockholder, 5 years) from the date on which the stock option is
granted.

 

2.3.5        Exercise
of Stock Option and Payment for Shares.  A stock option may be exercised at such time
or times and subject to such terms and conditions as will be determined by the
Committee at the time the stock option is granted and set forth in the Award
Agreement. Subject to any limitations in the applicable Award Agreement, any
shares not acquired pursuant to the exercise of a stock option on the
applicable vesting date may be acquired thereafter at any time before the final
expiration of the stock option. To exercise a stock option, the Grantee must
give written notice to Force Protection specifying the number of shares to be
acquired and accompanied by payment of the full purchase price therefor in cash
or by certified or official bank check or in another form as determined by the
Company, including: (a) personal check, (b) shares of Common Stock,
based on the Fair Market Value as of the exercise date, of the same class as
those to be granted by exercise of the stock option, (c) any other form of
consideration approved by the Company and permitted by applicable law and (d) any
combination of the foregoing. Any person exercising a stock option will make
such representations and agreements and furnish such information as the
Committee may in its discretion deem necessary or desirable to assure compliance
by Force Protection on terms acceptable to Force Protection with the provisions
of the 

 

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Securities
Act and any other applicable legal requirements. If a Grantee so requests,
shares acquired pursuant to the exercise of a stock option may be issued in the
name of the Grantee and another jointly with the right of survivorship.

 

2.3.6        Repricing.  Except as otherwise permitted by Section 1.6.3, reducing the exercise
price of stock options issued and outstanding under the Plan, including through
amendment, cancellation in exchange for the grant of a substitute Award or
repurchase for cash or other consideration (in each case that has the effect of
reducing the exercise price), will require approval of the stockholders of
Force Protection.

 

2.3.7        Repayment
if Conditions Not Met.  If
the Committee determines that all terms and conditions of the Plan and a
Grantee’s stock option Award Agreement in respect of exercised stock options
were not satisfied, then the Grantee will be obligated to pay the Company
immediately upon demand therefor, an amount equal to the excess of the Fair
Market Value (determined at the time of exercise) of the shares of Common Stock
that were delivered in respect of such exercised stock option over the exercise
price paid therefor, without reduction for any shares of Common Stock applied
to satisfy withholding tax or other obligations in respect of such shares.

 

2.4          Stock
Appreciation Rights

 

2.4.1        Grant.  Stock appreciation rights may be granted to
eligible recipients in such number and at such times during the term of the
Plan as the Committee may determine;
provided, however, that the maximum number of shares of Common Stock
as to which stock appreciation rights may be granted under the Plan to any one
individual in any one fiscal year may not exceed 1,000,000 shares (as adjusted
pursuant to the provisions of Section 1.6.3).

 

2.4.2        Exercise
Price.  The exercise price
per share with respect to each stock appreciation right will be determined by
the Committee but, except as otherwise permitted by Section 1.6.3, may never be less than the Fair Market
Value of the Common Stock. Unless otherwise noted in the Award Agreement, the
Fair Market Value of the Common Stock will be its closing price on the NASDAQ
Capital Market on the date of grant of the Award of stock appreciation rights.

 

2.4.3        Term of Stock Appreciation Right.  In no event will any stock appreciation right
be exercisable after the expiration of 10 years from the date on which the
stock appreciation right is granted.

 

2.4.4        Exercise
of Stock Appreciation Right and Delivery of Shares.  Each stock appreciation right may be
exercised in such installments as may be determined in the Award Agreement at
the time the stock appreciation right is granted. Subject to any limitations in
the applicable Award Agreement, any stock appreciation rights not exercised on
the applicable installment date may be exercised thereafter at any time before
the final expiration of the stock appreciation right. To exercise a stock
appreciation right, the Grantee must give written notice to Force Protection
specifying the number of stock appreciation rights to be exercised. Upon
exercise of stock appreciation rights, shares of Common Stock, cash or other securities
or property, or a combination thereof, as specified by the Committee, equal in
value to (a) the excess of (1) the Fair Market Value of the Common
Stock on the date of exercise over
(2) the exercise price of such stock appreciation right multiplied by (b) the number of
stock appreciation rights exercised will be delivered to the Grantee. Any
person exercising a stock appreciation right will make such representations and
agreements and furnish such information as the Committee may in its discretion
deem necessary or desirable to assure compliance by Force Protection on terms
acceptable to Force Protection with the provisions of the Securities Act and
any other applicable legal requirements. If a Grantee so requests, shares
purchased may be issued in the name of the Grantee and another jointly with the
right of survivorship.

 

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2.4.5                        Repricing. 
Except as otherwise permitted by Section 1.6.3,
reducing the exercise price of stock appreciation rights issued and outstanding
under the Plan, including through amendment, cancellation in exchange for the
grant of a substitute Award or repurchase for cash or other consideration (in
each case that has the effect of reducing the exercise price), will require
approval of the stockholders of Force Protection.

 

2.4.6                        Repayment
if Conditions Not Met.  If the Committee determines that all terms
and conditions of the Plan and a Grantee’s stock appreciation right Award
Agreement in respect of exercised stock appreciation rights were not satisfied,
then the Grantee will be obligated to pay the Company immediately upon demand
therefor, an amount equal to the excess of the Fair Market Value (determined at
the time of exercise) of the shares of Common Stock subject to the exercised
stock appreciation rights over the exercise price therefor, without reduction
for any amount applied to satisfy withholding tax or other obligations in
respect of such stock appreciation rights.

 

2.5                               Restricted Shares

 

2.5.1                        Grants.  The
Committee may grant or offer for sale restricted shares in such amounts and
subject to such terms and conditions as the Committee may determine. Upon the
delivery of such shares, the Grantee will have the rights of a stockholder with
respect to the restricted shares, subject to any other restrictions and
conditions as the Committee may include in the applicable Award Agreement. Each
Grantee of an Award of restricted shares will be issued a Certificate in
respect of such shares, unless the Committee elects to use another system, such
as book entries by the transfer agent, as evidencing ownership of shares of
such shares. In the event that a Certificate is issued in respect of restricted
shares, such Certificate may be registered in the name of the Grantee, and
shall, in addition to such legends required by applicable securities laws, bear
an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award, but will be held by Force Protection or its
designated agent until the time the restrictions lapse.

 

2.5.2                        Right to
Vote and Receive Dividends on Restricted Shares.  Each
Grantee of an Award of restricted shares will, during the period of
restriction, be the beneficial and record owner of such restricted shares and
will have full voting rights with respect thereto. Unless the Committee
determines otherwise in an Award Agreement, during the period of restriction, all
dividends (whether ordinary or extraordinary and whether paid in cash,
additional shares or other property) or other distributions paid upon any
restricted share will be retained by the Company for the account of the
relevant Grantee. Such dividends or other distributions will revert back to the
Company if for any reason the restricted share upon which such dividends or
other distributions were paid reverts back to the Company. Upon the expiration
of the period of restriction, all such dividends or other distributions made on
such restricted share and retained by the Company will be paid to the relevant
Grantee.

 

2.5.3                        Repayment
if Conditions Not Met.  If the Committee determines that all terms
and conditions of the Plan and a Grantee’s restricted share Award Agreement in
respect of restricted shares which have become vested were not satisfied, then
the Grantee will be obligated to pay the Company immediately upon demand
therefor, an amount equal to the Fair Market Value (determined at the time such
shares became vested) of such restricted shares, without reduction for any
amount applied to satisfy withholding tax or other obligations in respect of
such restricted shares.

 

2.6                               Restricted Stock Units

 

2.6.1                        Grant.  The
Committee may grant Awards of restricted stock units in such amounts and
subject to such terms and conditions as the Committee may determine. A Grantee
of a 

 

10

 

restricted
stock unit will have only the rights of a general unsecured creditor of Force
Protection, until delivery of shares of Common Stock, cash or other securities
or property is made as specified in the applicable Award Agreement. On the
delivery date specified in the Award Agreement, the Grantee of each restricted
stock unit not previously forfeited or terminated will receive one share of
Common Stock, cash or other securities or property equal in value to a share of
Common Stock or a combination thereof, as specified by the Committee.

 

2.6.2                        Repayment
if Conditions Not Met.  If the Committee determines that all terms
and conditions of the Plan and a Grantee’s restricted stock unit Award
Agreement in respect of the delivery of shares underlying such restricted stock
units were not satisfied, then the Grantee will be obligated to pay the Company
immediately upon demand therefor, an amount equal to the Fair Market Value
(determined at the time of delivery) of the shares of Common Stock delivered
with respect to such delivery date, without reduction for any shares applied to
satisfy withholding tax or other obligations in respect of such shares of
Common Stock.

 

2.7                               Dividend Equivalent Rights

 

The
Committee may include in the Award Agreement with respect to any Award a
dividend equivalent right entitling the Grantee to receive amounts equal to all
or any portion of the regular cash dividends that would be paid on the shares
of Common Stock covered by such Award if such shares had been delivered
pursuant to such Award. The grantee of a dividend equivalent right will have
only the rights of a general unsecured creditor of Force Protection until
payment of such amounts is made as specified in the applicable Award Agreement.
In the event such a provision is included in an Award Agreement, the Committee
will determine whether such payments will be made in cash, in shares of Common
Stock or in another form, whether they will be conditioned upon the exercise of
the Award to which they relate, the time or times at which they will be made,
and such other terms and conditions as the Committee will deem appropriate.

 

2.8                               Other Stock-Based Awards

 

The
Committee may grant other types of equity-based or equity-related Awards
(including the grant or offer for sale of unrestricted shares of Common Stock
and performance share awards and performance units settled in cash) in such
amounts and subject to such terms and conditions as the Committee may
determine. Such Awards may entail the transfer of actual shares of Common Stock
to Award recipients and may include Awards designed to comply with or take
advantage of the applicable local laws of jurisdictions other than the United
States.

 

ARTICLE III

MISCELLANEOUS

 

3.1                               Amendment of the Plan

 

3.1.1                        Unless otherwise provided in the Plan or in
an Award Agreement, the Board may from time to time suspend, discontinue,
revise or amend the Plan in any respect whatsoever but, subject to Section 1.6.3 or as otherwise
specifically provided herein, no such amendment shall adversely impair the
rights of the Grantee of any Award without the Grantee’s consent.

 

3.1.2                        Unless otherwise determined by the Board,
stockholder approval of any suspension, discontinuance, revision or amendment
will be obtained only to the extent necessary to comply with any applicable
laws, regulations or rules of a securities exchange or self-regulatory
agency; 

 

11

 

provided,
however, if and to the extent the Board determines that it is appropriate for
Awards granted under the Plan to constitute performance-based compensation
within the meaning of Section 162(m)(4)(C) of the Code, no amendment
that would require stockholder approval in order for amounts paid pursuant to
the Plan to constitute performance-based compensation within the meaning of Section 162(m)(4)(C) of
the Code will be effective without the approval of the stockholders of Force
Protection as required by Section 162(m) of the Code and, if and to
the extent the Board determines it is appropriate for the Plan to comply with
the provisions of Section 422 of the Code, no amendment that would require
stockholder approval under Section 422 of the Code will be effective
without the approval of the stockholders of Force Protection.

 

3.2                               Tax Withholding

 

Grantees
shall be solely responsible for any applicable taxes (including, without
limitation, income and excise taxes) and penalties, and any interest that
accrues thereon, that they incur in connection with the receipt, vesting or
exercise of any Award. As a condition to the delivery of any shares of Common
Stock, cash or other securities or property pursuant to any Award or the
lifting or lapse of restrictions on any Award, or in connection with any other
event that gives rise to a federal or other governmental tax withholding
obligation on the part of the Company relating to an Award (including, without
limitation, FICA tax), (a) the Company may deduct or withhold (or cause to
be deducted or withheld) from any payment or distribution to a Grantee whether
or not pursuant to the Plan (including shares of Common Stock otherwise
deliverable), (b) the Committee will be entitled to require that the
Grantee remit cash to the Company (through payroll deduction or otherwise) or (c) the
Company may enter into any other suitable arrangements to withhold, in each
case in an amount not to exceed in the opinion of the Company the minimum
statutory amounts of such taxes required by law to be withheld.

 

3.3                               Required Consents and
Legends

 

3.3.1                        If the Committee at any time determines that
any Consent (as hereinafter defined) is necessary or desirable as a condition
of, or in connection with, the granting of any Award, the delivery of shares of
Common Stock or the delivery of any cash, securities or other property under
the Plan, or the taking of any other action thereunder (each such action a “Plan Action”), then,
subject to Section 3.13 such
Plan Action will not be taken, in whole or in part, unless and until such
Consent will have been effected or obtained to the full satisfaction of the
Committee. The Committee may direct that any Certificate evidencing shares
delivered pursuant to the Plan will bear a legend setting forth such
restrictions on transferability as the Committee may determine to be necessary
or desirable, and may advise the transfer agent to place a stop transfer order
against any legended shares.

 

3.3.2                        The term “Consent” as used in this Article III
with respect to any Plan Action includes (a) any and all listings,
registrations or qualifications in respect thereof upon any securities exchange
or under any federal, state, or local law, or law, rule or regulation of a
jurisdiction outside the United States, (b) any and all written agreements
and representations by the Grantee with respect to the disposition of shares,
or with respect to any other matter, which the Committee may deem necessary or
desirable to comply with the terms of any such listing, registration or
qualification or to obtain an exemption from the requirement that any such
listing, qualification or registration be made, (c) any and all other
consents, clearances and approvals in respect of a Plan Action by any
governmental or other regulatory body or any stock exchange or self-regulatory
agency, (d) any and all consents by the Grantee to (i) the Company’s
supplying to any third party recordkeeper of the Plan such personal information
as the Committee deems advisable to administer the Plan, (ii) the Company’s
deducting amounts from the Grantee’s wages, or another arrangement satisfactory
to the Committee, to reimburse the Company for advances made on the Grantee’s
behalf to satisfy certain withholding and other tax obligations in connection
with an 

 

12

 

Award
and (iii) the Company’s imposing sales and transfer procedures and
restrictions and hedging restrictions on shares of Common Stock delivered under
the Plan and (e) any and all consents or authorizations required to comply
with, or required to be obtained under, applicable local law or otherwise
required by the Committee. Nothing herein will require the Company to list,
register or qualify the shares of Common Stock on any securities exchange.

 

3.4                               Right of Offset

 

The
Company will have the right to offset against its obligation to deliver shares
of Common Stock (or other property or cash) under the Plan or any Award
Agreement any outstanding amounts (including, without limitation, travel and
entertainment or advance account balances, loans, repayment obligations under
any Awards, or amounts repayable to the Company pursuant to tax equalization,
housing, automobile or other employee programs) that the Grantee then owes to
the Company and any amounts the Committee otherwise deems appropriate pursuant
to any tax equalization policy or agreement. Notwithstanding the foregoing, if
an Award provides for the deferral of compensation within the meaning of Section 409A
of the Code, the Committee will have no right to offset against its obligation
to deliver shares of Common Stock (or other property or cash) under the Plan or
any Award Agreement if such offset could subject the Grantee to the additional
tax imposed under Section 409A of the Code in respect of an outstanding
Award.

 

3.5                               Nonassignability; No Hedging

 

Unless
otherwise provided in an Award Agreement, no Award (or any rights and
obligations thereunder) granted to any person under the Plan may be sold,
exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed
of or hedged, in any manner (including through the use of any cash-settled
instrument), whether voluntarily or involuntarily and whether by operation of
law or otherwise, other than by will or by the laws of descent and
distribution, and all such Awards (and any rights thereunder) will be
exercisable during the life of the Grantee only by the Grantee or the Grantee’s
legal representative. Notwithstanding the foregoing, the Committee may permit,
under such terms and conditions that it deems appropriate in its sole
discretion, a Grantee to transfer any Award to any person or entity that the
Committee so determines. Any sale, exchange, transfer, assignment, pledge,
hypothecation, or other disposition in violation of the provisions of this Section 3.5 will be null and void
and any Award which is hedged in any manner will immediately be forfeited. All
of the terms and conditions of the Plan and the Award Agreements will be
binding upon any permitted successors and assigns.

 

3.6                               Change in Control

 

3.6.1                        Unless otherwise provided in the applicable
Award Agreement, in the event of a Change in Control, (i) any outstanding
Awards then held by a Grantee which are unexercisable or otherwise unvested or
subject to lapse restrictions will automatically be deemed exercisable or
otherwise vested or no longer subject to lapse restrictions, as the case may
be, as of the date of such Change in Control and (ii) any outstanding
performance-based Awards shall be deemed earned at the target level (or if no
target level is specified, the maximum level) with respect to all open
performance periods.

 

3.6.2                        In the event of a Change in Control, a
Grantee’s Award shall be treated, to the extent determined by the Committee to
be permitted under Section 409A of the Code, in accordance with one of the
following methods as determined by the Committee in its sole discretion: (i) cancel
such awards for fair value (as determined in the sole discretion of the
Committee) which, in the case of stock options and stock appreciation rights,
may equal the excess, if any, of the value of the consideration to be paid in
the Change in Control transaction to holders 

 

13

 

of
the same number of shares of Common Stock subject to such stock options or
stock appreciation rights over the aggregate exercise price of such stock
options or stock appreciation rights, as the case may be; (ii) provide for
the issuance of substitute awards that will substantially preserve the
otherwise applicable terms of any affected Awards previously granted under the
Plan, as determined by the Committee in its sole discretion; or (iii) provide
that for a period of at least 20 days prior to the Change in Control, any
stock options or stock appreciation rights that would not otherwise become
exercisable prior to the Change in Control will be exercisable as to all shares
of Common Stock subject thereto (but any such exercise will be contingent upon
and subject to the occurrence of the Change in Control and if the Change in
Control does not take place within a specified period after giving such notice
for any reason whatsoever, the exercise will be null and void) and that any
stock options or stock appreciation rights not exercised prior to the
consummation of the Change in Control will terminate and be of no further force
and effect as of the consummation of the Change in Control. For the avoidance
of doubt, in the event of a Change in Control, the Committee may, in its sole
discretion, terminate any stock option or stock appreciation right for which
the exercise price is equal to or exceeds the per share value of the
consideration to be paid in the Change in Control transaction without payment
of consideration therefor.

 

3.7                               Right of Discharge Reserved

 

Neither
the grant of an Award nor any provision in the Plan or in any Award Agreement
will confer upon any Grantee the right to continued Employment by the Company
or affect any right which the Company may have to terminate or alter the terms
and conditions of such Employment.

 

3.8                               Nature of Payments

 

3.8.1                        Any and all grants of Awards and deliveries
of Common Stock, cash, securities or other property under the Plan will be in
consideration of services performed or to be performed for the Company by the
Grantee. Awards under the Plan may, in the discretion of the Committee, be made
in substitution in whole or in part for cash or other compensation otherwise
payable to a Grantee. Only whole shares of Common Stock will be delivered under
the Plan. Awards will, to the extent reasonably practicable, be aggregated in
order to eliminate any fractional shares. Fractional shares may, in the
discretion of the Committee, be forfeited or be settled in cash or otherwise as
the Committee may determine.

 

3.8.2                        All such grants and deliveries of shares of
Common Stock, cash, securities or other property under the Plan will constitute
a special discretionary incentive payment to the Grantee and will not be
required to be taken into account in computing the amount of salary or
compensation of the Grantee for the purpose of determining any contributions to
or any benefits under any pension, retirement, profit-sharing, bonus, life
insurance, severance or other benefit plan of the Company or under any
agreement with the Grantee, unless the Company specifically provides otherwise.

 

14

 

3.9                               Non-Uniform Determinations

 

3.9.1                        The Committee’s determinations under the Plan
and Award Agreements need not be uniform and any such determinations may be
made by it selectively among persons who receive, or are eligible to receive,
Awards under the Plan (whether or not such persons are similarly situated).
Without limiting the generality of the foregoing, the Committee will be
entitled, among other things, to make non-uniform and selective determinations
under Award Agreements, and to enter into non-uniform and selective Award
Agreements, as to (a) the persons to receive Awards, (b) the terms
and provisions of Awards and (c) whether a Grantee’s Employment has been
terminated for purposes of the Plan.

 

3.9.2                        To the extent the Committee deems it
necessary, appropriate or desirable to comply with foreign law or practices and
to further the purposes of the Plan, the Committee may, without amending the
Plan, establish special rules applicable to Awards to Grantees who are
foreign nationals, are employed outside the United States or both and grant
Awards (or amend existing Awards) in accordance with those rules.

 

3.10                        Other Payments or Awards

 

Nothing
contained in the Plan will be deemed in any way to limit or restrict the
Company from making any award or payment to any person under any other plan,
arrangement or understanding, whether now existing or hereafter in effect.

 

3.11                        Plan Headings

 

The
headings in the Plan are for the purpose of convenience only and are not
intended to define or limit the construction of the provisions hereof.

 

3.12                        Termination of Plan

 

The
Board reserves the right to terminate the Plan at any time; provided, however, that in any case, the
Plan will terminate September 18, 2018, and provided further, that all Awards made under the Plan
before its termination will remain in effect until such Awards have been
satisfied or terminated in accordance with the terms and provisions of the Plan
and the applicable Award Agreements.

 

3.13                        Section 409A

 

3.13.1                  All Awards made under the Plan that are
intended to be “deferred compensation” subject to Section 409A shall be
interpreted, administered and construed to comply with Section 409A, and
all Awards made under the Plan that are intended to be exempt from Section 409A
shall be interpreted, administered and construed to comply with and preserve
such exemption. The Board and the Committee shall have full authority to give
effect to the intent of the foregoing sentence. To the extent necessary to give
effect to this intent, in the case of any conflict or potential inconsistency
between the Plan and a provision of any Award or Award Agreement with respect
to an Award, the Plan shall govern.

 

3.13.2                  Without limiting the generality of Section 3.13.1, with respect to any
Award made under the Plan that is intended to be “deferred compensation”
subject to Section 409A: (a) any payment to be made with respect to
such Award in connection with the Grantee’s separation from service to the
Company within the meaning of Section 409A (and any other payment that
would be subject to the limitations in Section 409A(a)(2)(b) of the
Code) shall be delayed until six months after the Grantee’s separation from
service (or earlier death) in accordance with the requirements of Section 409A;
(b) if any payment to be made with respect to such Award would occur at a
time 

 

15

 

when
the tax deduction with respect to such payment would be limited or eliminated
by Section 162(m) of the Code, such payment may be deferred by the
Company under the circumstances described in Section 409A until the
earliest date that the Company reasonably anticipates that the deduction or
payment will not be limited or eliminated; (c) to the extent necessary to
comply with Section 409A, any other securities, other Awards or other
property that the Company may deliver in lieu of shares of Common Stock in
respect of an Award shall not have the effect of deferring delivery or payment
beyond the date on which such delivery or payment would occur with respect to
the shares of Common Stock that would otherwise have been deliverable (unless
the Committee elects a later date for this purpose in accordance with the
requirements of Section 409A); (d) with respect to any required
Consent described in Section 3.3
or the applicable Award Agreement, if such Consent has not been effected or
obtained as of the latest date provided by such Award Agreement for payment in
respect of such Award and further delay of payment is not permitted in
accordance with the requirements of Section 409A, such Award or portion
thereof, as applicable, will be forfeited and terminate notwithstanding any
prior earning or vesting; (e) if the Award includes a “series of
installment payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of
the Treasury Regulations), the Grantee’s right to the series of installment
payments shall be treated as a right to a series of separate payments and not
as a right to a single payment; (f) if the Award includes “dividend  equivalents”
(within the meaning of Section 1.409A-3(e) of the Treasury Regulations), the
Grantee’s right to the dividend equivalents shall be treated separately from
the right to other amounts under the Award; and (g) for purposes of
determining whether the Grantee has experienced a separation from service to
the Company within the meaning of Section 409A, “subsidiary” shall mean a
corporation or other entity in a chain of corporations or other entities in
which each corporation or other entity, starting with Force Protection, has a
controlling interest in another corporation or other entity in the chain,
ending with such corporation or other entity. For purposes of the preceding
sentence, the term “controlling interest” has the same meaning as provided in Section 1.414(c)-2(b)(2)(i) of
the Treasury Regulations, provided that the language “at least 20 percent”
is used instead of “at least 80 percent” each place it appears in Section 1.414(c)-2(b)(2)(i) of
the Treasury Regulations.

 

3.14                        Governing Law

 

THE
PLAN WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEVADA, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

 

3.15                        Choice of Forum

 

3.15.1                  The Company and each Grantee, as a condition
to such Grantee’s participation in the Plan, hereby irrevocably submit to the
exclusive jurisdiction of any state or federal court located in South Carolina
over any suit, action or proceeding arising out of or relating to or concerning
the Plan. The Company and each Grantee, as a condition to such Grantee’s
participation in the Plan, acknowledge that the forum designated by this Section 3.15.1 has a reasonable
relation to the Plan and to the relationship between such Grantee and the
Company. Notwithstanding the foregoing, nothing herein will preclude the
Company from bringing any action or proceeding in any other court for the
purpose of enforcing the provisions of Section 3.15.1.

 

3.15.2                  The agreement by the Company and each Grantee
as to forum is independent of the law that may be applied in the action, and
the Company and each Grantee, as a condition to such Grantee’s participation in
the Plan, (i) agree to such forum even if the forum may under applicable
law choose to apply non-forum law, (ii) hereby waive, to the fullest
extent permitted by applicable law, any objection which the Company or such
Grantee now or hereafter may have to personal 

 

16

 

jurisdiction
or to the laying of venue of any such suit, action or proceeding in any court
referred to in Section 3.15.1,
(iii) undertake not to commence any action arising out of or relating to
or concerning the Plan in any forum other than the forum described in this Section 3.15 and (iv) agree
that, to the fullest extent permitted by applicable law, a final and
non-appealable judgment in any such suit, action or proceeding in any such
court will be conclusive and binding upon the Company and each Grantee.

 

3.15.3                  Each Grantee, as a condition to such Grantee’s
participation in the Plan, hereby irrevocably appoints the General Counsel of
Force Protection as such Grantee’s agent for service of process in connection
with any action, suit or proceeding arising out of or relating to or concerning
the Plan, who will promptly advise such Grantee of any such service of process.

 

3.15.4                  Each Grantee, as a condition to such Grantee’s
participation in the Plan, agrees to keep confidential the existence of, and
any information concerning, a dispute, controversy or claim described in Section 3.15, except that a Grantee
may disclose information concerning such dispute, controversy or claim to the
court that is considering such dispute, controversy or claim or to such Grantee’s
legal counsel (provided that such counsel agrees not to disclose any such
information other than as necessary to the prosecution or defense of the
dispute, controversy or claim).

 

3.16                        Severability; Entire Agreement

 

If
any of the provisions of the Plan or any Award Agreement is finally held to be
invalid, illegal or unenforceable (whether in whole or in part), such provision
will be deemed modified to the extent, but only to the extent, of such
invalidity, illegality or unenforceability and the remaining provisions will
not be affected thereby; provided
that if any of such provisions is finally held to be invalid, illegal, or
unenforceable because it exceeds the maximum scope determined to be acceptable
to permit such provision to be enforceable, such provision will be deemed to be
modified to the minimum extent necessary to modify such scope in order to make
such provision enforceable hereunder. The Plan and any Award Agreements contain
the entire agreement of the parties with respect to the subject matter thereof
and supersede all prior agreements, promises, covenants, arrangements,
communications, representations and warranties between them, whether written or
oral with respect to the subject matter thereof.

 

3.17                        Waiver of Claims

 

Each
Grantee of an Award recognizes and agrees that before being selected by the
Committee to receive an Award he or she has no right to any benefits under the
Plan. Accordingly, in consideration of the Grantee’s receipt of any Award
hereunder, he or she expressly waives any right to contest the amount of any
Award, the terms of any Award Agreement, any determination, action or omission
hereunder or under any Award Agreement by the Committee, the Company or the
Board, or any amendment to the Plan or any Award Agreement (other than an
amendment to the Plan or an Award Agreement to which his or her consent is
expressly required by the express terms of an Award Agreement).

 

3.18                        No Liability With Respect to Tax Qualification or
Adverse Tax Treatment

 

Notwithstanding
anything to the contrary contained herein, in no event shall the Company be
liable to a grantee on account of an Award’s failure to (a) qualify for
favorable United States or foreign tax treatment or (ii) avoid adverse tax
treatment under United States or foreign law, including, without limitation, Section 409A.

 

17

 

3.19                        No Third Party Beneficiaries

 

Except
as expressly provided in an Award Agreement, neither the Plan nor any Award
Agreement will confer on any person other than the Company and the Grantee of
any Award any rights or remedies thereunder. The exculpation and
indemnification provisions of Section 1.3.4
will inure to the benefit of a Covered Person’s estate and beneficiaries and
legatees.

 

3.20                        Successors and Assigns of Force Protection

 

The
terms of the Plan will be binding upon and inure to the benefit of Force
Protection and any successor entity contemplated by Section 3.6.

 

3.21                        Waiver of Jury Trial

 

EACH
GRANTEE WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THE PLAN.

 

3.22                        Date of Adoption, Approval of Stockholders and
Effective Date

 

The
Plan was adopted on September 19, 2008 by the Board, subject to the
approval by the stockholders of Force Protection at the 2008 Annual Meeting of
Stockholders on November 21, 2008. The Plan will only be effective if it
is approved by the stockholders of Force Protection at the 2008 Annual Meeting
of Stockholders. If the Plan is not so approved by the stockholders of Force
Protection, then the Plan will be null and void in its entirety.

 

18Exhibit 10.1

 

CHANGE OF CONTROL EMPLOYMENT
AGREEMENT (BE4 AND HIGHER)

 

CHANGE OF CONTROL EMPLOYMENT AGREEMENT, dated as of
the         
day of                       ,  20        
(this “Agreement”), by and between COMERICA INCORPORATED, a Delaware
corporation (the “Company”), and                                  
                        
(the “Executive”).

 

WHEREAS, the Board of Directors of the Company (the “Board”),
has determined that it is in the best interests of the Company and its
stockholders  to assure that the Company will
have the continued dedication of the Executive, notwithstanding the possibility,
threat or occurrence of a Change of Control (as defined herein).  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive’s full attention and dedication to the Company
in the event of any threatened or pending Change of Control, and to provide the
Executive with compensation and benefits arrangements upon a Change of Control
that ensure that the compensation and benefits expectations of the Executive
will be satisfied and that provide the Executive with compensation and benefits
arrangements that are competitive with those of other corporations.  Therefore, in order to accomplish these
objectives, the Board has caused the Company to enter into this Agreement.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

Section 1.     Certain
Definitions.  (a) “Effective Date” means the first
date during the Change of Control Period (as defined herein) on which a Change
of Control occurs.  Notwithstanding
anything in this Agreement to the contrary, if (A) the Executive’s
employment with the Company is terminated by the Company, (B) the Date of
Termination is prior to the date on which a Change of Control occurs, and (C) it
is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party that has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in
connection with or anticipation of a Change of Control (such a termination of
employment, an “Anticipatory Termination”), then for all purposes of this
Agreement, the “Effective Date” means the date immediately prior to such Date
of Termination.

 

(b)           “Change
of Control Period” means the period commencing on the date hereof and ending on
the third anniversary of the date hereof; provided, however, that, commencing on the date one year after the
date hereof, and on each annual anniversary of such date (such date and each
annual anniversary thereof, the “Renewal Date”), unless previously terminated,
the Change of Control Period shall be automatically extended so as to terminate
three years from such Renewal Date, unless, at least 60 days prior to the
Renewal Date, the Company shall give notice to the Executive that the Change of
Control Period shall not be so extended.

 

(c)           “Affiliated
Company” means any company controlled by, controlling or under common control
with the Company.

 

(d)           “Change
of Control” means:

 

 

(1)           Any
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (A) the
then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (B) the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”); provided, however, that,
for purposes of this Section 1(d), the following acquisitions shall not
constitute a Change of Control:  (i) any
acquisition directly from the Company, (ii) any acquisition by the
Company, (iii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Affiliated Company or (iv) any
acquisition pursuant to a transaction that complies with Sections 1(d)(3)(A),
1(d)(3)(B) and 1(d)(3)(C);

 

(2)           Individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual was a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened election
contest 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;

 

(3)           Consummation
of a reorganization, merger, statutory share exchange or consolidation or
similar transaction involving the Company or any of its subsidiaries, a sale or
other disposition of all or substantially all of the assets of the Company, or
the acquisition of assets or stock of another entity by the Company or any of
its subsidiaries (each, a “Business Combination”), in each case unless,
following such Business Combination, (A) all or substantially all of the
individuals and entities that were the beneficial owners of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than
50% of the then-outstanding shares of common stock (or, for a non-corporate
entity, equivalent securities) and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors (or, for a non-corporate entity, equivalent governing body), as
the case may be, of the entity resulting from such Business Combination (including,
without limitation, an entity that, 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) in substantially the same proportions as
their ownership immediately prior to such Business Combination of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (B) no Person (excluding any corporation resulting
from such Business Combination or any employee benefit plan (or related trust)
of the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the
then-outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then-outstanding
voting securities of such corporation, except to the extent that such ownership
existed prior to the Business Combination, and (C) at least a majority of
the members of the board of directors (or, for a non-corporate entity,
equivalent governing body) of the entity resulting from such Business

 

2

 

Combination were members of the Incumbent Board
at the time of the execution of the initial agreement or of the action of the
Board providing for such Business Combination; or

 

(4)           Approval
by the stockholders  of the Company
of a complete liquidation or dissolution of the Company.

 

Section 2.     Employment
Period.  The Company hereby agrees to continue the
Executive in its employ, subject to the terms and conditions of this Agreement,
for the period commencing on the Effective Date and ending on the last day of
the thirtieth consecutive month following the Effective Date (the “Employment
Period”).  The Employment Period shall
terminate upon the Executive’s termination of employment for any reason.

 

Section 3.     Terms
of Employment.  (a)  Position
and Duties.

 

(1)           During
the Employment Period, (A) the Executive’s position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all respects with the most
significant of those held, exercised and assigned at any time during the
120-day period immediately preceding the Effective Date, and (B) the
Executive’s services shall be performed at the location where the Executive was
employed immediately preceding the Effective Date or at any office or location
less than 60 miles from such location.

 

(2)           During
the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable
attention and time during normal business hours to the business and affairs of
the Company and, to the extent necessary to discharge the responsibilities
assigned to the Executive hereunder, to use the Executive’s reasonable best
efforts to perform faithfully and efficiently such responsibilities.  During the Employment Period, it shall not be
a violation of this Agreement for the Executive to (A) serve on corporate,
civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage
personal investments, so long as such activities do not significantly interfere
with the performance of the Executive’s responsibilities as an employee of the
Company in accordance with this Agreement. 
It is expressly understood and agreed that, to the extent that any such
activities have been conducted by the Executive prior to the Effective Date,
the continued conduct of such activities (or the conduct of activities similar
in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

 

(b)           Compensation.  (1)  Base
Salary.  During the
Employment Period, the Executive shall receive an annual base salary (the “Annual
Base Salary”) at an annual rate at least equal to 26 times the highest
bi-weekly base salary paid or payable, including any base salary that has been
earned but deferred, to the Executive by the Company and the Affiliated
Companies in respect of the one-year period immediately preceding the month in
which the Effective Date occurs.  The
Annual Base Salary shall be paid to the Executive at such intervals as the
Company pays executive salaries generally, unless the Executive shall elect to
defer the receipt of such Base Salary pursuant to an arrangement that meets the
requirements of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”).  During the
Employment Period, the Annual Base Salary shall be reviewed at least annually,
beginning no more than 12

 

3

 

months after the last salary increase awarded to
the Executive prior to the Effective Date. 
Any increase in the Annual Base Salary shall not serve to limit or
reduce any other obligation to the Executive under this Agreement.  The Annual Base Salary shall not be reduced
after any such increase and the term “Annual Base Salary” shall refer to the
Annual Base Salary as so increased.

 

(2)           Annual Bonus.  In addition to the Annual Base Salary, the
Executive shall be awarded, for each fiscal year ending during the Employment
Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the
aggregate of the Executive’s highest bonus under each of

 

(i)            the
Company’s  Management Incentive Plan; and

 

(ii)           any business
unit incentive plan of the Company in which the Executive has participated
during any portion of the last three fiscal years (or any predecessor or
successor plan to any thereof), as applicable, for the last three full fiscal
years prior to the Effective Date, including any bonus or portion thereof that
has been earned but deferred (annualized in the event that the Executive was
not employed by the Company for the whole of such fiscal year and not otherwise
paid a full year’s bonus for such year) (the “Recent Annual Bonus”).  For purposes of determining the Recent Annual
Bonus, the highest bonus under the Management Incentive Plan shall be
determined by including bonuses earned for both the annual and multiyear
performance periods ending in each of the last three full fiscal years prior to
the Effective Date (or for such lesser number of full fiscal years prior to the
Effective Date for which the Executive was eligible to earn such a bonus and
annualized in the case of any pro rata bonus earned for a partial fiscal
year).  Each such Annual Bonus shall be
paid no later than two and a half months after the end of the fiscal year for
which the Annual Bonus is awarded, unless the Executive shall elect to defer
the receipt of such Annual Bonus pursuant to an arrangement that meets the
requirements of Section 409A of the Code.

 

(3)           Long-Term Equity Incentives, Savings and
Retirement Plans. 
During the Employment Period, the
Executive shall be entitled to participate in all equity incentive, savings and
retirement plans, practices, policies, and programs applicable generally to other
peer executives of the Company and the Affiliated Companies, but in no event
shall such plans, practices, policies and programs provide the Executive with
incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is
applicable), savings opportunities and retirement benefit opportunities, in
each case, less favorable, in the aggregate, than the most favorable of those
provided by the Company and the Affiliated Companies for the Executive under
such plans, practices, policies and programs as in effect at any time during
the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, those provided generally at any time after the Effective
Date to other peer executives of the Company and the Affiliated Companies.

 

(4)           Welfare Benefit Plans.  During
the Employment Period, the Executive and/or the Executive’s family, as the case
may be, shall be eligible for participation in and shall receive all benefits
under welfare benefit plans, practices, policies and programs provided by the
Company and the Affiliated Companies (including, without limitation, medical,
prescription, dental, disability, employee life, group life, accidental death
and travel accident insurance plans

 

4

 

and programs) to the extent applicable generally
to other peer executives of the Company and the Affiliated Companies, but in no
event shall such plans, practices, policies and programs provide the Executive
with benefits that are less favorable, in the aggregate, than the most
favorable of such plans, practices, policies and programs in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and the Affiliated Companies.

 

(5)           Expenses.  During
the Employment Period, the Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by the Executive in
accordance with the most favorable policies, practices and procedures of the
Company and the Affiliated Companies in effect for the Executive at any time during
the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and the Affiliated Companies.

 

(6)           Fringe Benefits.  During
the Employment Period, the Executive shall be entitled to fringe benefits,
including, without limitation, tax planning services, payment of club dues,
and, if applicable, use of an automobile and payment of related expenses, in
accordance with the most favorable plans, practices, programs and policies of
the Company and the Affiliated Companies in effect for the Executive at any
time during the 120-day period immediately preceding the Effective Date or, if
more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and the Affiliated Companies.

 

(7)           Office and Support Staff.  During
the Employment Period, the Executive shall be entitled to an office or offices
of a size and with furnishings and other appointments, and to exclusive
personal secretarial and other assistance, at least equal to the most favorable
of the foregoing provided to the Executive by the Company and the Affiliated
Companies at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as provided generally at
any time thereafter with respect to other peer executives of the Company and
the Affiliated Companies.

 

(8)           Vacation.  During
the Employment Period, the Executive shall be entitled to paid vacation in
accordance with the most favorable plans, policies, programs and practices of
the Company and the Affiliated Companies as in effect for the Executive at any
time during the 120-day period immediately preceding the Effective Date or, if
more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and the Affiliated
Companies.

 

Section 4.     Termination
of Employment.  (a)  Death or
Disability.  The Executive’s
employment shall terminate automatically if the Executive dies during the Employment
Period.  If the Company determines in
good faith that the Disability (as defined herein) of the Executive has
occurred during the Employment Period (pursuant to the definition of “Disability”),
it may give to the Executive written notice in accordance with Section 11(b) of
its intention to terminate the Executive’s employment.  In such event, the Executive’s employment
with the Company shall terminate effective on the 30th day after receipt of
such

 

5

 

notice by the Executive (the “Disability
Effective Date”), provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive’s duties.  “Disability”
means the absence of the Executive from the Executive’s duties with the Company
on a full-time basis for 180 consecutive business days as a result of
incapacity due to mental or physical illness that is determined to be total and
permanent by a physician selected by the Company or its insurers and acceptable
to the Executive or the Executive’s legal representative.

 

(b)           Cause.  The
Company may terminate the Executive’s employment during the Employment Period
with or without Cause.  “Cause” means:

 

(1)           the
willful and continued failure of the Executive to perform substantially the
Executive’s duties with the Company or any Affiliated Company (other than any
such failure resulting from incapacity due to physical or mental illness),
after a written demand for substantial performance is delivered to the
Executive by the Board or the Chief Executive Officer of the Company that
specifically identifies the manner in which the Board or the Chief Executive
Officer of the Company believes that the Executive has not substantially
performed the Executive’s duties, or

 

(2)           the
willful engaging by the Executive in illegal conduct or gross misconduct that
is materially and demonstrably injurious to the Company.

 

For purposes of this Section 4(b), no act, or
failure to act, on the part of the Executive shall be considered “willful”
unless it is done, or omitted to be done, by the Executive in bad faith or
without reasonable belief that the Executive’s action or omission was in the
best interests of the Company.  Any act,
or failure to act, based upon (A) authority given pursuant to a resolution
duly adopted by the Board, or if the Company is not the ultimate parent
corporation of the Affiliated Companies and is not publicly-traded, the board
of directors of the ultimate parent of the Company (the “Applicable Board”), (B) the
instructions of the Chief Executive Officer of the Company or a senior officer
of the Company or (C) the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company.  The cessation of employment of the Executive
shall not be deemed to be for Cause unless and until there shall have been
delivered to the Executive a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of the Applicable
Board (excluding the Executive, if the Executive is a member of the Applicable
Board) at a meeting of the Applicable Board called and held for such purpose
(after reasonable notice is provided to the Executive and the Executive is
given an opportunity, together with counsel for the Executive, to be heard
before the Applicable Board), finding that, in the good faith opinion of the
Applicable Board, the Executive is guilty of the conduct described in Section 4(b)(1) or
4(b)(2), and specifying the particulars thereof in detail.

 

(c)           Good Reason.  The
Executive’s employment may be terminated during the Employment Period by the
Executive for Good Reason or by the Executive voluntarily without Good
Reason.  “Good Reason” means:

 

(1)           the
assignment to the Executive of any duties inconsistent in any respect with the
Executive’s position (including status, offices, titles and reporting
requirements), authority,

 

6

 

duties or responsibilities as contemplated by Section 3(a),
or any action by the Company that results in a diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and that is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

 

(2)           any
failure by the Company to comply with any of the provisions of Section 3(b),
other than an isolated, insubstantial and inadvertent failure not occurring in
bad faith and that is remedied by the Company promptly after receipt of notice
thereof given by the Executive;

 

(3)           the
Company’s requiring the Executive to be based at any office or location other
than as provided in Section 4(a)(i)(B) hereof or the Company’s
requiring the Executive to travel on Company business to a substantially
greater extent than required immediately prior to the Effective Date;

 

(4)           any
purported termination by the Company of the Executive’s employment otherwise
than as expressly permitted by this Agreement; or

 

(5)           any
failure by the Company to comply with and satisfy Section 10(c).

 

For purposes of this Section 4(c) of
this Agreement, any good faith determination of Good Reason made by the
Executive shall be conclusive.  Anything in this Agreement to the
contrary notwithstanding, a termination by the Executive for any reason
pursuant to a Notice of Termination given during the 30-day period immediately
following the first anniversary of the Effective Date shall be deemed to be a
termination for Good Reason for all purposes of this Agreement.  The Executive’s mental or physical incapacity
following the occurrence of an event described above in clauses (1) through
(5) shall not affect the Executive’s ability to terminate employment for
Good Reason.

 

(d)           Notice of Termination.  Any
termination by the Company for Cause, or by the Executive for Good Reason, shall
be communicated by Notice of Termination to the other party hereto given in
accordance with Section 11(b).  “Notice
of Termination” means a written notice that (1) indicates the specific
termination provision in this Agreement relied upon, (2) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive’s employment under the
provision so indicated, and (3) if the Date of Termination (as defined
herein) is other than the date of receipt of such notice, specifies the Date of
Termination (which Date of Termination shall be not more than 30 days after the
giving of such notice).  The failure by
the Executive or the Company to set forth in the Notice of Termination any fact
or circumstance that contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, hereunder or
preclude the Executive or the Company, respectively, from asserting such fact
or circumstance in enforcing the Executive’s or the Company’s respective rights
hereunder.

 

(e)           Date of Termination. “Date
of Termination” means (1) if the Executive’s employment is terminated by
the Company for Cause, or by the Executive for Good Reason, the date of receipt
of the Notice of Termination or such later date specified in the Notice of
Termination, as the case may be, (2) if the Executive’s employment is
terminated by the Company other than for Cause or Disability, the date on which
the Company notifies the Executive of such termination, (3) if the
Executive resigns without Good Reason, the date on

 

7

 

which the Executive notifies the Company of such
termination, and (4) if the Executive’s employment is terminated by reason
of death or Disability, the date of death of the Executive or the Disability
Effective Date, as the case may be. 
Notwithstanding the foregoing, in no event shall the Date of Termination
occur until the Executive experiences a “separation from service” within the
meaning of Section 409A of the Code, and notwithstanding anything
contained herein to the contrary, the date on which such separation from
service takes place shall be the “Date of Termination.”

 

Section 5.     Obligations
of the Company upon Termination.  (a) 
By the Executive for Good Reason; By the Company Other Than for Cause, Death
or Disability.  If, during the Employment Period, the Company
terminates the Executive’s employment other than for Cause, Death or Disability
or the Executive terminates employment for Good Reason:

 

(1)           the Company
shall pay to the Executive, in a lump sum in cash within 30 days after the Date
of Termination, the aggregate of the following amounts:

 

(A)          the sum of (i) the
Executive’s Annual Base Salary through the Date of Termination to the extent
not theretofore paid or deferred pursuant to an irrevocable election under any
deferred compensation arrangement subject to Section 409A, (ii) any
accrued vacation pay to the extent not theretofore paid (the sum of the amounts
described in subclauses (i) and (ii), the “Accrued Obligations”) and (iii) an
amount equal to the product of (x) the higher of (I) the Recent
Annual Bonus and (II) the aggregate Annual Bonus under each of the Company’s  Management Incentive Plan and any business
unit incentive plan of the Company in which the Executive has participated (or
any predecessor or successor plan to any thereof) paid or payable, including
any bonus or portion thereof that has been earned but deferred (and annualized
for any fiscal year consisting of less than 12 full months or during which the
Executive was employed for less than 12 full months), for the most recently
completed fiscal year during the Employment Period, if any, (it being
understood that, such Annual Bonus shall be determined by including bonuses
earned for both the annual and multiyear performance periods ending in such
recently completed fiscal year during the Employment Period)  (such higher amount, the “Highest Annual
Bonus”) and (y) a fraction, the numerator of which is the number of days
in the current fiscal year through the Date of Termination and the denominator
of which is 365 (the “Pro Rata Bonus”); and

 

(B)           the amount
equal to the product of (i) three  and (ii) the
sum of (x) the Executive’s Annual Base Salary and (y) the Highest
Annual Bonus.

 

(2)           [FOR THE AGREEMENTS OF EXECUTIVES COMMENCING EMPLOYMENT PRIOR TO JANUARY
1, 2007:  the Company shall
pay to the Executive, at such time as such amounts are payable under the terms
of each applicable SERP (as defined below), or, if the Executive does not
participate in a SERP, in a lump sum in cash within 30 days after the Date of
Termination, an amount equal to the excess of (i) the actuarial equivalent
of the benefit under the Company’s qualified defined benefit retirement plan
(the “Retirement Plan”) (utilizing actuarial assumptions no less

 

8

 

favorable to the
Executive than those in effect under the Retirement Plan immediately prior to
the Effective Date) and any excess or supplemental retirement plan in which the
Executive participates (collectively, the “SERP”) (utilizing actuarial
assumptions no less favorable to the Executive than those in effect under the
SERP immediately prior to the Effective Date) that the Executive would receive
if the Executive’s employment continued for three years after the Date of
Termination, assuming for this purpose that (x) the accrued benefit is fully vested, (y) the Executive’s age
is increased by the number of years (including partial years) that the
Executive is deemed to be so employed and (z) the Executive’s compensation
in each of the three years is that required by Sections 3(b)(1) and 3(b)(2) payable
in equal biweekly installments
over such three-year period, over (ii) the actuarial equivalent of the
Executive’s actual benefit (paid or payable), if any, under the Retirement Plan
and the SERP as of the Date of Termination;]

 

[FOR THE
AGREEMENTS OF EXECUTIVES COMMENCING EMPLOYMENT ON OR AFTER JANUARY 1,
2007:  the Company shall pay
to the Executive, at such time as such amounts are payable under the terms of
each applicable SERP (as defined below),
or, if the Executive does not participate in a SERP, in a lump sum in
cash within 30 days after the Date of Termination, an amount equal to the excess of (i) the account balance under the
Company’s qualified defined contribution retirement plan (the “Defined
Contribution Plan”) and any excess or supplemental defined contribution
plan in which the Executive participates (collectively, the “SERP”) that the Executive would receive if the
Executive’s employment continued for three years after the Date of Termination,
assuming for this purpose that (x) the account balance is fully vested, (y) the
Company makes a nonelective employer contribution to the SERP for each year in
such three-year period in an amount equal to the greatest nonelective employer
contribution made to such plan during the last three full fiscal years prior to
the Effective Date and (z) the Executive’s compensation in each of the
three years is that required by Section 3(b)(1) and Section 3(b)(2) payable
in equal biweekly installments for such three-year period, over (ii) the
account balance (paid or payable), if any, under the Defined Contribution Plan
and the SERP as of the Date of Termination;]

 

(3)           during the three year period following the
Date of Termination (the “Benefits Period”), the Company shall provide the
Executive, his spouse and his eligible dependents with medical and dental
insurance coverage (the “Health Care Benefits”) and life insurance benefits no
less favorable to those which the Executive, his spouse and his eligible
dependents were receiving immediately prior to the Date of Termination or, if more
favorable to such persons, as in effect generally at any time thereafter with
respect to other peer executives of the Company and the Affiliated Companies; provided, however, that
the Health Care Benefits
shall be provided during the Benefits Period in such a manner that such
benefits are excluded from the Executive’s income for federal income tax
purposes; provided, further, however, that if the
Executive becomes re-employed with another employer and is eligible to receive
health care benefits under another employer-provided plan, the health care
benefits provided hereunder shall be secondary to those provided under such
other plan during such applicable period of eligibility.  The
receipt of the Health Care Benefits shall be conditioned upon the Executive
continuing to pay the monthly
premium as in effect at the Company from time to time for coverage provided to
former employees under Section 4980B of the Code  in

 

9

 

respect of the maximum level of coverage that the
Executive could otherwise elect to receive for the Executive, his spouse and
eligible dependents if the Executive were still an employee of the Company
during the Benefits Period (i.e., single,
single plus one, or family) (the “Applicable COBRA Premium”) regardless of what
level of coverage is actually elected.  During the
portion of the Benefits Period in which the Executive, his spouse and his
eligible dependents continue to receive coverage under the Company’s Health Care Benefits
plans, the Company shall pay to the Executive a monthly amount equal to the excess of (x) the Applicable COBRA
Premium over (y) the monthly employee contribution rate that is paid by
Company employees generally for the same or similar coverage, as in effect from
time to time
(and which amount shall in no event be greater than the employee
contribution rate for the applicable level of coverage as in effect immediately
prior to the Effective Date), which payment shall be paid in advance on the
first payroll day of each month, commencing with the month immediately following
the Executive’s Date of Termination.  The Company shall use its reasonable best
efforts to ensure that, following the end of the Benefit Period, the Executive
shall be eligible to elect continued health coverage pursuant to Section 4980B
of the Code or other applicable law (“COBRA Coverage”), as if the Executive’s
employment with the Company had terminated as of the end of such period.  For purposes of determining eligibility (but
not the time of commencement of benefits) of the Executive for retiree welfare
benefits pursuant to the Company’s retiree welfare benefit plans, if any, the
Executive shall be considered to have remained employed until the end of the
Benefit Period and to have retired on the last day of such period.  In order to comply with Section 409A of
the Code, (i) the amount of benefits that the Company is obligated to
provide under this Section 5(a)(3) in any given calendar year shall
not affect the amount of such benefits that the Company is obligated to pay in
any other calendar year; and (ii) the Executive’s right to have the
Company provide such benefits may not be liquidated or exchanged for any other
benefit; and

 

(4)           the
Company shall, at its sole expense as incurred, provide the Executive with
outplacement services the scope and provider of which shall be selected by the
Executive in the Executive’s sole discretion, provided
that such outplacement benefits shall end not later than the last day of the
second calendar year that begins after the Date of Termination; and

 

(5)           except
as otherwise set forth in the last sentence of Section 6, to the extent
not theretofore paid or provided, the Company shall timely pay or provide to
the Executive any Other Benefits (as defined in Section 6) in accordance
with the terms of the underlying plans or agreements.

 

Notwithstanding the foregoing provisions of Sections 5(a)(1), (2) or
(3), in the event that the Executive is a “specified employee” within the
meaning of Section 409A of the Code (as determined in accordance with the
methodology established by the Company as in effect on the Date of Termination)
(a “Specified Employee”), amounts that constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code that would
otherwise be payable and benefits that would otherwise be provided under
Sections 5(a)(1), (2) or (3) during the six-month period immediately
following the Date of Termination (other than the Accrued Obligations) shall
instead be paid, with interest on any delayed payment at the applicable federal

 

10

 

rate provided for in Section 7872(f)(2)(A) of the Code (“Interest”)
determined as of the Date of Termination, or provided on the first business day
after the date that is six months following the Executive’s “separation from
service” within the meaning of Section 409A of the Code (the “Delayed
Payment Date”).

 

(b)           Death.  If the
Executive’s employment is terminated by reason of the Executive’s death during
the Employment Period, the Company shall provide the Executive’s estate or
beneficiaries with the Accrued Obligations and the Pro Rata Bonus and the
timely payment or delivery of the Other Benefits, and shall have no other
severance obligations under this Agreement. 
The Accrued Obligations and the Pro Rata Bonus shall be paid to the
Executive’s estate or beneficiary, as applicable, in a lump sum in cash within
30 days of the Date of Termination.  With
respect to the provision of the Other Benefits, the term “Other Benefits” as
utilized in this Section 5(b) shall include, without limitation, and
the Executive’s estate and/or beneficiaries shall be entitled to receive,
benefits at least equal to the most favorable benefits provided by the Company
and the Affiliated Companies to the estates and beneficiaries of peer
executives of the Company and the Affiliated Companies under such plans,
programs, practices and policies relating to death benefits, if any, as in
effect with respect to other peer executives and their beneficiaries at any
time during the 120-day period immediately preceding the Effective Date or, if
more favorable to the Executive’s estate and/or the Executive’s beneficiaries,
as in effect on the date of the Executive’s death with respect to other peer
executives of the Company and the Affiliated Companies and their beneficiaries.

 

(c)           Disability. 
If
the Executive’s employment is terminated by reason of the Executive’s
Disability during the Employment Period, the Company shall provide the
Executive with the Accrued Obligations and Pro Rata Bonus and the timely
payment or delivery of the Other Benefits in accordance with the terms of the
underlying plans or agreements, and shall have no other severance obligations
under this Agreement.  The Accrued
Obligations and the Pro Rata Bonus shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination, provided,
that in the event that the Executive is a Specified Employee, the Pro Rata
Bonus shall be paid, with Interest, to the Executive on the Delayed Payment
Date.  With respect to the provision of
the Other Benefits, the term “Other Benefits” as utilized in this Section 5(c) shall
include, and the Executive shall be entitled after the Disability Effective
Date to receive, disability and other benefits at least equal to the most
favorable of those generally provided by the Company and the Affiliated
Companies to disabled executives and/or their families in accordance with such
plans, programs, practices and policies relating to disability, if any, as in
effect generally with respect to other peer executives and their families at
any time during the 120-day period immediately preceding the Effective Date or,
if more favorable to the Executive and/or the Executive’s family, as in effect
at any time thereafter generally with respect to other peer executives of the
Company and the Affiliated Companies and their families.

 

(d)           Cause; Other Than for Good Reason. 
If
the Executive’s employment is terminated for Cause during the Employment
Period, the Company shall provide the Executive with the Executive’s Annual
Base Salary through the Date of Termination, and the timely payment or delivery
of the Other Benefits, and shall have no other severance obligations under this
Agreement.  If the Executive voluntarily
terminates employment during the Employment Period, excluding a termination for
Good Reason, the Company shall provide to the Executive the Accrued Obligations
and the Pro Rata Bonus and the timely payment or delivery of the Other

 

11

 

Benefits, and shall have no other
severance obligations under this Agreement. 
In such case, all the Accrued Obligations and the Pro Rata Bonus shall
be paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination, provided, that in the event that
the Executive is a Specified Employee, the Pro Rata Bonus shall be paid, with
Interest, to the Executive on the Delayed Payment Date.

 

Section 6.     Non-exclusivity
of Rights.  Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any plan, program,
policy or practice provided by the Company or the Affiliated Companies and for
which the Executive may qualify, nor, subject to Section 11(f), shall anything
herein limit or otherwise affect such rights as the Executive may have under
any other contract or agreement with the Company or the Affiliated
Companies.  Amounts that are vested
benefits or that the Executive is otherwise entitled to receive under any plan,
policy, practice or program of or any other contract or agreement with the Company
or the Affiliated Companies at or subsequent to the Date of Termination (“Other
Benefits”) shall be payable in accordance with such plan, policy, practice or
program or contract or agreement, except as explicitly modified by this
Agreement.  Without limiting the
generality of the foregoing, the Executive’s resignation under this Agreement
with or without Good Reason, shall in no way affect the Executive’s ability to
terminate employment by reason of the Executive’s “retirement” under, or to be
eligible to receive benefits under, any compensation and benefits plans,
programs or arrangements of the Company or the Affiliated Companies, including
without limitation any retirement or pension plans or arrangements or
substitute plans adopted by the Company, the Affiliated Companies or their
respective successors, and any termination which otherwise qualifies as Good
Reason shall be treated as such even if it is also a “retirement” for purposes
of any such plan.  Notwithstanding the
foregoing, if the Executive receives payments and benefits pursuant to Section
5(a) of this Agreement, the Executive shall not be entitled to any severance
pay or benefits under any severance plan, program or policy of the Company and
the Affiliated Companies, unless otherwise specifically provided therein in a
specific reference to this Agreement.  [FOR CEO AGREEMENT ONLY: Notwithstanding anything in this
Agreement to the contrary, in no event shall the benefits provided in the
Supplemental Pension and Retiree Medical Agreement dated as of the 29th day of May 1998 by and between the Company and
the Executive (the “Supplemental Agreement”) be considered severance pay or
benefits under any severance plan, program or policy of the Company for
purposes of the immediately preceding sentence, and nothing in this Agreement
shall limit the effectiveness of the Supplemental Agreement.]

 

Section 7.     Full
Settlement; Legal Fees. 
The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense, or other claim,
right or action that the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement,
and except as specifically provided in Section 5(a)(2), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company agrees to pay as incurred (within
10 days following the Company’s receipt of an invoice from the Executive), at
any time from the Change of Control through the Executive’s remaining lifetime
(or, if longer, through the 20th anniversary of the Change of Control) to the
full extent permitted by law, all legal fees and expenses that the Executive
may reasonably incur as a result of any contest

 

12

 

(regardless
of the outcome thereof) by the Company, the Executive or others of the validity
or enforceability of, or liability under, any provision of this Agreement or
any guarantee of performance thereof (including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement),
plus, in each case, Interest determined as of the date such legal fees and
expenses were incurred; provided, that
the Executive shall have submitted an invoice for such fees and expenses at
least 10 days before the end of the calendar year next following the calendar
year in which such fees and expenses were incurred (or, in connection with a
contest related to an Anticipatory Termination, following the calendar year in
which such contest is finally resolved). 
The amount of such legal fees and expenses that the Company is obligated
to pay in any given calendar year shall not affect the legal fees and expenses
that the Company is obligated to pay in any other calendar year, and the
Executive’s right to have the Company pay such legal fees and expenses may not
be liquidated or exchanged for any other benefit.

 

Section 8.     Certain Additional Payments by the Company.

 

(a)           Anything in this Agreement to the
contrary notwithstanding and except as set forth below, in the event it shall
be determined that any Payment would be subject to the Excise Tax, then the
Executive shall be entitled to receive an additional payment (the “Gross-Up
Payment”) in an amount such that, after payment by the Executive of all taxes
(and any interest or penalties imposed with respect to such taxes), including,
without limitation, any income taxes (and any interest and penalties imposed
with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, but
excluding any income taxes and penalties imposed pursuant to Section 409A
of the Code, the Executive retains an amount of the Gross-Up Payment equal to
the Excise Tax imposed upon the Payments. 
Notwithstanding the foregoing provisions of this Section 8(a), if
it shall be determined that the Executive is entitled to the Gross-Up Payment,
but that the Parachute Value of all Payments does not exceed 110% of the Safe
Harbor Amount, then no Gross-Up Payment shall be made to the Executive and the
amounts payable under this Agreement shall be reduced so that the Parachute
Value of all Payments, in the aggregate, equals the Safe Harbor Amount.  The reduction of the amounts payable
hereunder, if applicable, shall be made by reducing the payments and benefits
under the following sections in the following order: (i) Section 5(a)(1)(B),
(ii) Section 5(a)(1)(C), (iii) Section 5(a)(1)(A)(v) and
(iv) Section 5(a)(2).  For
purposes of reducing the Payments to the Safe Harbor Amount, only amounts
payable under this Agreement (and no other Payments) shall be reduced.  If the reduction of the amount payable under
this Agreement would not result in a reduction of the Parachute Value of all
Payments to the Safe Harbor Amount, no amounts payable under the Agreement
shall be reduced pursuant to this Section 8(a) and the Executive
shall be entitled to the Gross-Up Payment. 
The Company’s obligation to make Gross-Up Payments under this Section 8
shall not be conditioned upon the Executive’s termination of employment.

 

(b)           Subject to the provisions of Section 8(c),
all determinations required to be made under this Section 8, including
whether and when a Gross-Up Payment is required, the amount of such Gross-Up
Payment and the assumptions to be utilized in arriving at such determination,
shall be made by Ernst & Young LLP, or such other nationally
recognized certified public accounting firm as may be designated by the
Executive (the “Accounting Firm”).  The
Accounting Firm shall provide detailed supporting calculations both to the
Company and the Executive within 15 business days of the receipt of notice from
the Executive that there has been

 

13

 

a Payment or such earlier time as is
requested by the Company.  In the event
that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive may
appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). 
All fees and expenses of the Accounting Firm shall be borne solely by
the Company.  Any determination by the
Accounting Firm shall be binding upon the Company and the Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments that will not have been made by the Company should have been made (the
“Underpayment”), consistent with the calculations required to be made
hereunder.  In the event the Company
exhausts its remedies pursuant to Section 8(c) and the Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

 

(c)           The Executive shall notify the Company in
writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by the Company of the Gross-Up Payment.  Such notification shall be given as soon as
practicable, but no later than 10 business days after the Executive is informed
in writing of such claim.  The Executive
shall apprise the Company of the nature of such claim and the date on which
such claim is requested to be paid.  The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which the Executive gives such notice to the Company (or
such shorter period ending on the date that any payment of taxes with respect
to such claim is due).  If the Company
notifies the Executive in writing prior to the expiration of such period that
the Company desires to contest such claim, the Executive shall:

 

(1)           give the Company any information
reasonably requested by the Company relating to such claim,

 

(2)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

 

(3)           cooperate with the Company in good faith
in order effectively to contest such claim; and

 

(4)           permit the Company to participate in any
proceedings relating to such claim;

 

provided, however, that
the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest,
and shall indemnify and hold the Executive harmless, on an after-tax basis, for
any Excise Tax or income tax (including interest and penalties) imposed as a
result of such representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this Section 8(c), the Company shall control all proceedings
taken in connection with such contest, and, at its sole discretion, may pursue
or forgo any and all administrative appeals, proceedings, hearings and
conferences with the applicable taxing authority in respect of such claim and
may, at its sole discretion, either pay the tax claimed to the appropriate
taxing authority on behalf of the

 

14

 

Executive and direct the Executive to sue for a refund or to contest
the claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however,
that, if the Company pays such claim and directs the Executive to sue for a
refund, the Company shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties) imposed with respect to such payment or with respect to any imputed
income in connection with such payment; and provided, further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount.  Furthermore, the
Company’s control of the contest shall be limited to issues with respect to
which the Gross-Up Payment would be payable hereunder, and the Executive shall
be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

 

(d)           If, after the receipt by the Executive of
a Gross-Up Payment or payment by the Company of an amount on the Executive’s
behalf pursuant to Section 8(c), the Executive becomes entitled to receive
any refund with respect to the Excise Tax to which such Gross-Up Payment
relates or with respect to such claim, the Executive shall (subject to the
Company’s complying with the requirements of Section 8(c), if applicable)
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto).  If, after payment by the Company of an amount
on the Executive’s behalf pursuant to Section 8(c), a determination is
made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then the amount of such payment shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

 

(e)           Any Gross-Up Payment, as determined
pursuant to this Section 8, shall be paid by the Company to the Executive
within five days of the receipt of the Accounting Firm’s determination; provided that, the Gross-Up Payment shall in all events be
paid no later than the end of the Executive’s taxable year next following the
Executive’s taxable year in which the Excise Tax (and any income or other
related taxes or interest or penalties thereon) on a Payment are remitted to
the Internal Revenue Service or any other applicable taxing authority or, in
the case of amounts relating to a claim described in Section 8(c) that
does not result in the remittance of any federal, state, local and foreign
income, excise, social security and other taxes, the calendar year in which the
claim is finally settled or otherwise resolved. 
Notwithstanding any other provision of this Section 8, the Company
may, in its sole discretion, withhold and pay over to the Internal Revenue
Service or any other applicable taxing authority, for the benefit of the
Executive, all or any portion of any Gross-Up Payment, and the Executive hereby
consents to such withholding.

 

(f)            Definitions. 
The following terms shall have the following meanings for purposes of
this Section 8.

 

(i)            “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code,
together with any interest or penalties imposed with respect to such excise tax.

 

15

 

(ii)           “Parachute
Value” of a Payment shall mean the present value as of the date of the change
of control for purposes of Section 280G of the Code of the portion of such
Payment that constitutes a “parachute payment” under Section 280G(b)(2),
as determined by the Accounting Firm for purposes of determining whether and to
what extent the Excise Tax will apply to such Payment.

 

(iii)          A
“Payment” shall mean any payment or distribution in the nature of compensation
(within the meaning of Section 280G(b)(2) of the Code) to or for the
benefit of the Executive, whether paid or payable pursuant to this Agreement or
otherwise.

 

(iv)          The
“Safe Harbor Amount” means 2.99 times the Executive’s “base amount,” within the
meaning of Section 280G(b)(3) of the Code.

 

Section 9.     Confidential Information.  The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or the Affiliated Companies, and
their respective businesses, which information, knowledge or data shall have
been obtained by the Executive during the Executive’s employment by the Company
or the Affiliated Companies and which information, knowledge or data shall not
be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement).  After termination of the Executive’s
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those persons designated by the Company.  In no event shall an asserted violation of
the provisions of this Section 9 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

 

Section 10.     Successors.  (a)  This Agreement is personal to the
Executive, and, without the prior written consent of the Company, shall not be
assignable by the Executive other than by will or the laws of descent and
distribution.  This Agreement shall inure
to the benefit of and be enforceable by the Executive’s legal representatives.

 

(b)           This Agreement shall inure to the benefit
of and be binding upon the Company and its successors and assigns.  Except as provided in Section 10(c),
without the prior written consent of the Executive this Agreement shall not be
assignable by the Company.

 

(c)           The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  “Company”
means the Company as hereinbefore defined and any successor to its business
and/or assets as aforesaid that assumes and agrees to perform this Agreement by
operation of law or otherwise.

 

Section 11.     Miscellaneous.  (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws. 
The captions of this Agreement are not part of the

 

16

 

provisions
hereof and shall have no force or effect. 
Subject to the last sentence of Section 11(h), this Agreement may
not be amended or modified other than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

 

(b)           All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

if to the Executive:

 

At the most recent address on file at
the Company.

 

if to the
Company:

 

Comerica Incorporated

Comerica Bank Tower

1717 Main Street, MC 6404

Dallas, Texas  75201

Attention:  General
Counsel

 

or to such other address as either party shall have furnished to the
other in writing in accordance herewith. 
Notice and communications shall be effective when actually received by
the addressee.

 

(c)           The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

 

(d)           The Company may withhold from any amounts
payable under this Agreement such United States federal, state or local or
foreign taxes as shall be required to be withheld pursuant to any applicable
law or regulation.

 

(e)           The Executive’s or the Company’s failure
to insist upon strict compliance with any provision of this Agreement or the
failure to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate
employment for Good Reason pursuant to Sections 4(c)(1) through 4(c)(5),
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

 

(f)            The Executive and the Company acknowledge
that, except as may otherwise be provided under any other written agreement
between the Executive and the Company, the employment of the Executive by the
Company is “at will” and, subject to Section 1(a), prior to the Effective
Date, the Executive’s employment may be terminated by either the Executive or
the Company at any time prior to the Effective Date, in which case the
Executive shall have no further rights under this Agreement.  From and after the Effective Date, except as
specifically provided herein, this Agreement shall supersede any other
agreement between the

 

17

 

parties with respect to the subject
matter hereof in effect immediately prior to the execution of this Agreement
[other than [FOR CEO AGREEMENT ONLY: the
Supplemental Agreement, ] [FOR TARP SENIOR EXECUTIVE
OFFICERS: the Waiver signed by Executive in connection with the
Company’s  participation
in the United States Department of the Treasury’s Troubled Assets Relief
Program (“TARP”) Capital Purchase Program,  and the Capital Purchase Program Senior
Executive Officer Consent to the Company’s amendments to compensation, bonus,
incentive and other benefit plans, arrangements and agreements in connection with
the Company’s  participation
in the United States Department of the Treasury’s TARP Capital Purchase Program
(the “TARP Amendments”).  For the
avoidance of doubt, this Agreement shall be subject in all respects to the TARP
Amendments].

 

(g)          The Agreement is intended to comply with
the requirements of Section 409A of the Code or an exemption or exclusion
therefrom and shall in all respects be administered in accordance with Section 409A
of the Code.  Each payment under this
Agreement shall be treated as a separate payment for purposes of Section 409A
of the Code.  In no event may the
Executive, directly or indirectly, designate the calendar year of any payment
to be made under this Agreement.  If the
Executive dies following the Date of Termination and prior to the payment of
the any amounts delayed on account of Section 409A of the Code, such
amounts shall be paid to the personal representative of the Executive’s estate
within 30 days after the date of the Executive’s death.  All reimbursements and in-kind benefits that
constitute deferred compensation within the meaning of Section 409A
provided under this Agreement shall be made or provided in accordance with the
requirements of Section 409A of the Code, including, without limitation,
that (i) in no event shall reimbursements by the Company under this
Agreement be made later than the end of the calendar year next following the
calendar year in which the applicable fees and expenses were incurred, provided,
that the Executive shall have submitted an invoice for such fees and expenses
at least 10 days before the end of the calendar year next following the
calendar year in which such fees and expenses were incurred; (ii) the
amount of in-kind benefits that the Company is obligated to pay or provide in
any given calendar year shall not affect the in-kind benefits that the Company
is obligated to pay or provide in any other calendar year; (iii) the
Executive’s right to have the Company pay or provide such reimbursements and
in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in
no event shall the Company’s obligations to make such reimbursements or to
provide such in-kind benefits apply later than the Executive’s remaining
lifetime (or if longer, through the 20th anniversary of the Effective
Date).  Prior to the Effective Date but
within the time period permitted by the applicable Treasury Regulations, the
Company may, in consultation with the Executive, modify the Agreement, in the
least restrictive manner necessary and without any diminution in the value of
the payments to the Executive, in order to cause the provisions of the
Agreement to comply with the requirements of Section 409A of the Code, so
as to avoid the imposition of taxes and penalties on the Executive pursuant to Section 409A
of the Code.

 

Section 12.     Survivorship.  Upon the expiration or other termination of
this Agreement or the Executive’s employment, the respective rights and
obligations of the parties hereto shall survive to the extent necessary to
carry out the intentions of the parties under this Agreement.

 

18

 

IN WITNESS WHEREOF, the Executive has
hereunto set the Executive’s hand and, pursuant to the authorization from its
Board of Directors, the Company has caused these presents to be executed in its
name on its behalf, all as of the day and year first above written.

 

	
   

  	
   

  
	
   

  	
               [Name
  of Executive]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

19

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