Document:

Exhibit
10.3

 

HAWAIIAN HOLDINGS,
INC.

3375 Koapaka Street, Suite G-350

Honolulu, HI  96819

 

May 25,
2010

 

Mark
B. Dunkerley

Hawaiian
Airlines, Inc.

 

Dear
Mark:

 

Pursuant
to the Hawaiian Holdings, Inc. (the “Company”) 2005 Stock Incentive Plan
(the “Plan”) and as specified in your employment agreement with the Company of
even date herewith (the “Employment Agreement”), the Plan’s administrative
committee (the “Committee”) has granted to you on May 25, 2010 (the “Date
of Grant”) a restricted stock award covering 238,901 shares of Common Stock,
par value $0.01 (the “Type B Restricted Stock” or the “Award”), for future
services to be rendered, subject to the terms and conditions described in this
letter (the “Notice of Grant”) and to the terms and conditions of the
Restricted Stock Agreement attached as Exhibit A hereto.

 

The
Type B Restricted Stock award is subject to the applicable terms and conditions
of the Plan, which are incorporated herein by reference, and in the event of
any contradiction, distinction or differences between this letter and the terms
of the Plan, the terms of this letter will control.  Unless otherwise indicated, all capitalized
terms used herein have the meanings set forth herein or in the Plan, as applicable.

 

Subject
to your continued employment by the Company or its Subsidiaries through each
vesting date, the Type B Restricted Stock shall vest, if at all (except as
otherwise expressly provided below in the event of a Qualifying Change in
Control), on each of the following dates:

 

·                  On May 25, 2011, 12/41 of the Award
(69,922 shares) will vest (the “First Tranche”), but only if the volume weighted average closing
price of the Company common stock equals or exceeds $7.70 per share over any 20
trading day period commencing on the Date of Grant and ending on the first
anniversary of the Date of Grant;

 

·                  On May 25, 2012, an additional 12/41 of the Award (69,922
shares) will vest (the
“Second Tranche”), but only if the volume weighted average closing price of the
Company common stock equals or exceeds $8.40 per share over any 20 trading day
period commencing on the first anniversary of the Date of Grant and ending on
the second anniversary of the Date of Grant,

 

·                  On May 25, 2013, an additional 12/41 of the Award (69,922
shares) will vest (the
“Third Tranche”), but only if the volume weighted average closing price of the
Company common stock equals or exceeds $9.10 per share over any 20 day period
commencing on the second anniversary of the Date of Grant and ending on the
third anniversary of the Date of Grant; and

 

·                  On November 7, 2013,  the final 5/41 of the Award (29,135 shares) will
vest, but only if the
volume weighted average closing price of the Company common stock equals or
exceeds $9.10 per share over any 20 day period commencing on the second
anniversary of the Date of Grant and ending on November 7, 2013.

 

 

In the event that the
target price for the First, Second or Third Tranches is not achieved during the
first, second or third years, respectively, following the Renewal Effective
Date, but is subsequently achieved for a twenty trading day period ending after
the first, second or third anniversaries, respectively, of the Renewal
Effective Date and prior to November 7, 2013, then subject to your
continued employment with the Company or its Subsidiaries through the end of
such twenty day trading period, such tranche shall vest on such date.  Any of the target share prices herein shall
be proportionately adjusted for any increase or decrease in the number of
issued shares of Company common stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Company
common stock, or any other increase or decrease in the number of issued shares
of Company common stock effected without receipt of consideration by the Company
and shall also be equitably adjusted to reflect any split-up, spin-off or other
change in the corporate structure of the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been “effected without receipt of consideration.”

 

EXAMPLE:  HH Stock trades at a volume weighted average
closing price below $7.70 per share until October 7, 2013. It then trades
at a volume weighted average closing price of $8.32 per share in the twenty
trading day period ending on November 7, 2013.  You remain employed with the Company or its
Subsidiaries through November 7, 2013. 
The First Tranche vests on November 7, 2013.  None of the other Type B Restricted Stock
vests because the target prices were not achieved.

 

Notwithstanding any provision of this Agreement to the contrary, in the
event a Qualifying Change in Control (as such term is defined in the Employment
Agreement) occurs while you are still employed by the Company (or within
twenty-nine (29) days following Employee’s termination of employment pursuant
to Section 7(c) or (d) of the Agreement), and in which the
Company’s stockholders receive per share consideration for Company common stock
(the “Per Share Stockholder Consideration”) that equals or exceeds the per
share price target of any tranche of Type B Restricted Stock, then all tranches
of the Type B Restricted Stock with per share price targets equal to or less
than the Per Share Stockholder Consideration shall have their share price
target performance condition deemed satisfied, and the per share price target
which was applied to the tranche that was eligible to vest on the anniversary
of the Renewal Effective Date coinciding with or immediately preceding the date
on which the Qualifying Change in Control occurs shall be deemed to be the per
share price target for all tranches.  In
such event, any unvested Type B Restricted Stock that has satisfied its
performance condition or is so deemed to have its performance condition
satisfied shall be assumed or substituted by the acquirer for an equity award
equivalent in all material respects to the Type B Restricted Stock (an “Equivalent
Type B Award”) and shall remain subject to the remaining service-based vesting
provisions, subject to accelerated vesting pursuant to Section 8
hereof.  All Type B Restricted Stock with
per share price targets which have not been satisfied or are deemed to have
been satisfied shall be forfeited.  If
any Type B Restricted Stock required to be assumed or substituted for an Equivalent
Type B Award is not so assumed or substituted, then such Type B Restricted
Stock shall become 100% vested upon such Qualifying Change in Control.

 

The
vested portion of your Award will be delivered to you from escrow on each
vesting date, or on such later date as is specified in the Employment
Agreement.

 

2

 

Any
dividends paid on the stock underlying the Award, whether in stock or in cash,
shall be credited to additional Award shares, which will be subject to the same
conditions as the Award Shares.  The
payment of the Award on the applicable Payment Date will be made in
certificates for the shares of Common Stock underlying your Award.

 

You
may elect to personally satisfy any tax withholding that may be due with
respect to vesting of the Type B Restricted Stock, provided that you (or your
beneficiary or estate, if applicable) must give written notice to the Company
of such election at least one week prior to the vesting date.  If no such election has been made, then you
will be entitled to receive a number of shares net of any required tax
withholding.  In either such case, you
will receive certificates for the underlying shares of Common Stock as promptly
as possible after satisfaction of the required tax withholding.

 

The
Company may impose any conditions on the Type B Restricted Stock as it deems
necessary or advisable to ensure that the Type B Restricted Stock satisfies the
requirements of applicable securities laws. 
The Company shall not be obligated to issue or deliver any shares if
such action violates any provision of any law or regulation of any governmental
authority or national securities exchange.

 

By
your signature and the signature of the Company’s representative below, you and
the Company agree that this Notice of Grant, the form of Restricted Stock
Agreement attached as Exhibit A hereto, the Employment Agreement
and the 2005 Stock Incentive Plan constitute your entire agreement with respect
to this Award and may not be modified adversely to your interest except by
means of a writing signed by the Company and you.

 

Please
sign and return a copy of this letter to Hoyt Zia, the Company’s General
Counsel.

 

	
  HAWAIIAN HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Crystal
  K. Rose

  	
   

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND ACCEPTED

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Mark
  B. Dunkerley

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  

 

3

 

EXHIBIT A

 

HAWAIIAN HOLDINGS, INC.

2005 STOCK INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

 

1.                                       Grant of
Restricted Stock.  The Company
hereby grants to Mark B. Dunkerley (“Participant”) an Award of Restricted Stock
as set forth in the Notice of Grant of Restricted Stock and subject to the
terms and conditions in the Notice of Grant, this Restricted Stock Agreement
(the “Agreement”) and the Company’s 2005 Stock Incentive Plan (the “Plan”),
which are incorporated herein by reference. 
Unless otherwise defined herein, the terms defined in the Plan shall
have the same defined meanings in this Agreement.

 

2.                                       Escrow of Shares.

 

(a)                                  All Shares of Restricted Stock will, upon
execution of this Agreement, be delivered and deposited with an escrow holder
designated by the Company (the “Escrow
Holder”), together with the Assignment Separate from Certificate (the “Stock
Assignment”) duly endorsed in blank, attached hereto as Exhibit B-1.  The unvested Shares of
Restricted Stock and the Stock Assignment will be held by the Escrow Holder,
pursuant to the Joint Escrow Instructions of the Company and Participant
attached as Exhibit B-2
hereto, until such time as the Shares of Restricted Stock vest or are
forfeited.

 

(b)                                 The Escrow Holder will not be liable for
any act it may do or omit to do with respect to holding the Shares of
Restricted Stock in escrow while acting in good faith and in the exercise of
its judgment.

 

(c)                                  Upon Participant’s termination as an
employee for any reason and subject to the accelerated vesting provisions of
the Employment Agreement, the Escrow Holder, upon receipt of written notice of
such termination, will take all steps necessary to accomplish the transfer of
the unvested Shares of Restricted Stock to the Company.  Participant hereby appoints the Escrow Holder
with full power of substitution, as Participant’s true and lawful
attorney-in-fact with irrevocable power and authority in the name and on behalf
of Participant to take any action and execute all documents and instruments,
including, without limitation, stock powers which may be necessary to transfer
the certificate or certificates evidencing such unvested Shares of Restricted
Stock to the Company upon such termination; provided, however, that Participant
shall retain the power to instruct the Escrow Holder with respect to voting the
unvested Shares of Restricted Stock and with respect to participating in any
offer made by the Company to its stockholders generally.

 

(d)                                 The Escrow Holder will take all steps
necessary to accomplish the transfer of Shares of Restricted Stock to
Participant upon vesting, or upon such later date as is specified in the
Employment Agreement.

 

(e)                                  Participant will have the right to vote
the Shares while they are held in escrow. 
Any cash dividends declared on the Shares and any stock dividends which
were declared and for which the record date occurred on or after the Date of
Grant and through the date the Shares of Restricted Stock vest, will only be
paid or issued to Participant upon vesting of the Shares of Restricted Stock in
accordance with the vesting schedule set forth in the Notice of Grant.

 

 

(f)                                    If in the event of any dividend or
other distribution (whether in the form of cash, Shares, other securities, or
other property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares or other securities of the Company, or other
change in the corporate structure of the Company affecting the Shares, the Shares of Restricted Stock are
increased, reduced or otherwise changed, and by virtue of any such change
Participant will in his or her capacity as owner of unvested Shares of
Restricted Stock be entitled to new or additional or different shares of stock,
cash or securities (including rights or warrants to purchase securities), such
new or additional or different shares, cash or securities will thereupon be
considered to be unvested Shares of Restricted Stock and will be subject to all
of the conditions and restrictions which were applicable to the unvested Shares
of Restricted Stock pursuant to this Agreement. 
If Participant receives rights or warrants with respect to any unvested
Shares of Restricted Stock, such rights or warrants may be held or exercised by
Participant, provided that until such exercise any such rights or warrants and
after such exercise any shares or other securities acquired by the exercise of
such rights or warrants will be considered to be unvested Shares of Restricted
Stock and will be subject to all of the conditions and restrictions which were
applicable to the unvested Shares of Restricted Stock pursuant to this
Agreement.  The Administrator in its absolute
discretion at any time may accelerate the vesting of all or any portion of such
new or additional shares of stock, cash or securities, rights or warrants to
purchase securities or shares or other securities acquired by the exercise of
such rights or warrants.

 

(g)                                 The Company may instruct the transfer
agent for its Common Stock to place a legend on the certificates representing
the Restricted Stock or otherwise note its records as to the restrictions on
transfer set forth in this Agreement.

 

3.                                       Vesting
Schedule.  Except as
provided in Section 4, and subject to Section 5, the Shares of
Restricted Stock awarded by this Agreement will vest in Participant according
to the vesting schedule specified in the Notice of Grant.  Shares of Restricted Stock scheduled to vest
on a certain date or upon the occurrence of a certain condition will not vest
in Participant in accordance with any of the provisions of this Agreement,
unless Participant will have been continuously an employee of the Company or
any of its Subsidiaries from the Date of Grant until the date such vesting
occurs or as provided in the Notice of Grant in the event of a Qualifying
Change in Control.

 

4.                                       Administrator
Discretion.  The
Administrator, in its discretion, may accelerate the vesting of the balance, or
some lesser portion of the balance, of the unvested Restricted Stock at any
time, subject to the terms of the Plan. 
If so accelerated, such Restricted Stock will be considered as having
vested as of the date specified by the Administrator.

 

5.                                       Forfeiture upon
Certain Terminations as an Employee.  Subject to the accelerated vesting provisions
of the Employment Agreement, if Participant terminates his employment with the
Company or its Subsidiaries, the then unvested Shares of Restricted Stock awarded
by this Agreement will thereupon be forfeited and automatically transferred to
and reacquired by the Company at no cost to the Company upon the date of such
termination and Participant will have no further rights thereunder, except as
provided in the Notice of Grant in the event of a Qualifying Change in
Control.  Participant hereby appoints the
Escrow Agent with full power of substitution, as Participant’s true and lawful
attorney-in-fact with irrevocable power and authority in the name and on behalf
of Participant to take any action and execute all documents and instruments,
including, without limitation, stock powers which may be necessary to transfer
the certificate or certificates evidencing such unvested Shares to the Company
upon such termination of service.

 

2

 

6.                                       Death of
Participant.  Any
distribution or delivery to be made to Participant under this Agreement will,
if Participant is then deceased, be made to Participant’s designated beneficiary,
or if no beneficiary survives Participant, the administrator or executor of
Participant’s estate.  Any such
transferee must furnish the Company with (a) written notice of his or her
status as transferee, and (b) evidence satisfactory to the Company to establish
the validity of the transfer and compliance with any laws or regulations
pertaining to said transfer.

 

7.                                       Tax
Consequences.  Participant
has reviewed with Participant’s own tax advisors the federal, state, local and
foreign tax consequences of this investment and the transactions contemplated
by this Agreement.  Participant is
relying solely on such advisors and not on any statements or representations of
the Company or any of its agents. 
Participant understands that Participant (and not the Company) shall be
responsible for Participant’s own tax liability that may arise as a result of
the transactions contemplated by this Agreement.  Participant understands that Section 83
of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary
income the difference between the purchase price for the Shares of Restricted
Stock and the Fair Market Value of such Shares as of each vesting date.  Participant understands that Participant may
instead elect to be taxed at the time the Shares of Restricted Stock are
granted rather than when such Shares vest by filing an election under Section 83(b) of
the Code with the IRS within thirty (30) days from the date of grant of the
Restricted Stock.  The form for making
this election is attached as Exhibit B-3 hereto.

 

THE PARTICIPANT
ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY AND NOT THE
COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE
PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE
PARTICIPANT’S BEHALF.

 

If making an 83(b) Election, Participant is
also required to (i) provide a copy of the Election to the Company, and (ii) attach
a copy of the 83(b) Election to Participant’s U.S. federal tax return
covering the year in which the exercise occurred.

 

8.                                       Tax Withholding.  Participant agrees to make appropriate arrangements
with the Company (or the Parent or Subsidiary employing or retaining
Participant) in accordance with the procedures offered by the Company for the
satisfaction of all federal, state, and local income and employment tax
withholding requirements applicable to the issuance or vesting of Shares
pursuant to this Award or upon the earlier timely filing of an 83(b) election
with the IRS.  The Participant may in its
sole discretion determine whether the minimum required withholding taxes with
respect to this Award, or any portion thereof, will be paid by selling a
portion of vested shares, by direct payment from the Purchaser to the Company,
by having the Company withhold from the Shares to be issued upon vesting that
number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld (provided that Purchaser gives written notice to the
Company at least one week prior to the vesting date), by some other method, or
by some combination thereof.

 

9.                                       Grant is Not
Transferable.  Except to
the limited extent provided in Section 6, the unvested Shares subject to
this grant and the rights and privileges conferred hereby will not be
transferred, assigned, pledged or hypothecated in any way (whether by operation
of law or otherwise) and will not be subject to sale under execution,
attachment or similar process.

 

3

 

10.                                 Binding
Agreement.  Subject to
the limitation on the transferability of this grant contained herein, this
Agreement will be binding upon and inure to the benefit of the heirs, legatees,
legal representatives, successors and assigns of the parties hereto.

 

11.                                 Administrator
Authority.  The
Administrator will have the power to interpret the Plan and this Agreement and
to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret or revoke any such rules (including,
but not limited to, the determination of whether or not any Shares of
Restricted Stock have vested).  No member
of the Administrator will be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or this Agreement.

 

12.                                 Electronic
Delivery.  The Company
may, in its sole discretion, decide to deliver any documents related to the
Shares of Restricted Stock awarded under the Plan or future Restricted Stock
that may be awarded under the Plan by electronic means or request Participant’s
consent to participate in the Plan by electronic means.  Participant hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through
any on-line or electronic system established and maintained by the Company or
another third party designated by the Company.

 

13.                                 Captions.  Captions provided herein are for convenience
only and are not to serve as a basis for interpretation or construction of this
Agreement.

 

14.                                 Agreement
Severable.  In the
event that any provision in this Agreement will be held invalid or
unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining
provisions of this Agreement.

 

15.                                 Modifications
to the Agreement.  This
Agreement, the Notice of Grant, the Employment Agreement and the Plan
constitute the entire understanding of the parties on the subjects
covered.  Modifications to this Agreement
can be made only in an express written contract executed by the Chair of the
Compensation Committee of the Company’s Board of Directors.

 

16.                                 Governing Law.  This Agreement shall be governed by the laws
of the State of Hawaii, without giving effect to the conflict of law principles
thereof.

 

4

 

EXHIBIT B-1

 

ASSIGNMENT SEPARATE FROM
CERTIFICATE

 

FOR
VALUE RECEIVED I,
                                                    ,
hereby sell, assign and transfer unto Hawaiian Holdings, Inc.
                          
shares of the Common Stock of Hawaiian Holdings, Inc. standing in my name
on the books of said corporation represented by Certificate No.           
herewith and do hereby irrevocably constitute and appoint
                            
to transfer the said stock on the books of the within named corporation with
full power of substitution in the premises.

 

This
Stock Assignment may be used only in accordance with the Restricted Stock
Agreement between Hawaiian Holdings, Inc. and the undersigned dated
                            ,
           (the “Agreement”).

 

 

	
  Dated:
                                ,

  	
   

  	
  Signature:

  	
   

  

 

 

INSTRUCTIONS: Please do not fill in any blanks other than
the signature line.  The purpose of this
assignment is to enable the Company to transfer the unvested Shares of
Restricted Stock to the Company upon Participant’s termination of status as a Service
Provider, without requiring additional signatures on the part of
the Participant.

 

 

EXHIBIT B-2

 

JOINT ESCROW INSTRUCTIONS

 

                                  ,           

 

Corporate Secretary

Hawaiian Holdings, Inc.

3375 Koapaka
Street, Suite G-350

Honolulu, HI 96819

 

Dear
                                  :

 

As Escrow Agent for both Hawaiian Holdings, Inc. (the “Company”), and the undersigned recipient
of stock of the Company (the “Participant”),
you are hereby authorized and directed to hold the documents delivered to you
pursuant to the terms of that certain Restricted Stock Agreement (the “Agreement”) between the Company and
the undersigned, in accordance with the following instructions:

 

1.                                       At the closing,
you are directed (a) to date the stock assignments necessary for the
transfer in question, (b) to fill in the number of shares being
transferred, and (c) to deliver the stock assignments, together with the
certificate evidencing the shares of stock to be transferred, to the Company or
its assignee.

 

2.                                       Participant
irrevocably authorizes the Company to deposit with you any certificates
evidencing shares of stock to be held by you hereunder and any additions and
substitutions to said shares as defined in the Agreement.  Participant does hereby irrevocably
constitute and appoint you as Participant’s attorney-in-fact and agent for the
term of this escrow to execute with respect to such securities all documents
necessary or appropriate to make such securities negotiable and to complete any
transaction herein contemplated.  Subject
to the provisions of this paragraph 2, Participant shall exercise all
rights and privileges of a stockholder of the Company while the stock is held
by you.

 

3.                                       Upon vesting of the shares
held in escrow, or upon such later date as is specified in the Employment Agreement,
you shall deliver or electronically transfer to Participant, or electronically
transfer, a certificate or certificates representing so many shares of stock as
are vested.  Upon any forfeiture of such
shares, you shall deliver or electronically transfer such shares to the
Company.

 

4.                                       If at the time
of termination of this escrow you should have in your possession any documents,
securities, or other property belonging to Participant, you shall deliver all
of the same to Participant and shall be discharged of all further obligations
hereunder.

 

5.                                       Your duties
hereunder may be altered, amended, modified or revoked only by a writing signed
by all of the parties hereto.

 

6.                                       You shall be
obligated only for the performance of such duties as are specifically set forth
herein and may rely and shall be protected in relying or refraining from acting
on any instrument reasonably believed by you to be genuine and to have been
signed or presented by the proper party or parties.  You shall not be personally liable for any
act you may do or omit to do 

 

 

hereunder
as Escrow Agent or as attorney-in-fact for Participant while acting in good
faith, and any act done or omitted by you pursuant to the advice of your own
attorneys shall be conclusive evidence of such good faith.

 

7.                                       You are hereby
expressly authorized to disregard any and all warnings given by any of the
parties hereto or by any other person or corporation, excepting only orders or
process of courts of law and are hereby expressly authorized to comply with and
obey orders, judgments or decrees of any court. 
In case you obey or comply with any such order, judgment or decree, you
shall not be liable to any of the parties hereto or to any other person, firm
or corporation by reason of such compliance, notwithstanding any such order,
judgment or decree being subsequently reversed, modified, annulled, set aside,
vacated or found to have been entered without jurisdiction.

 

8.                                       You shall not
be liable in any respect on account of the identity, authorities or rights of
the parties executing or delivering or purporting to execute or deliver the
Agreement or any documents or papers deposited or called for hereunder.

 

9.                                       You shall be
entitled to employ such legal counsel and other experts as you may deem
necessary properly to advise you in connection with your obligations hereunder,
may rely upon the advice of such counsel, and may pay such counsel reasonable
compensation therefor.

 

10.                                       Your responsibilities as
Escrow Agent hereunder shall terminate if you shall cease to be an officer or
agent of the Company or if you shall resign by written notice to each
party.  In the event of any such
termination, the Company shall appoint a successor Escrow Agent.

 

11.                                       If you reasonably require
other or further instruments in connection with these Joint Escrow Instructions
or obligations in respect hereto, the necessary parties hereto shall join in
furnishing such instruments.

 

12.                                       It is understood and agreed
that should any dispute arise with respect to the delivery and/or ownership or
right of possession of the securities held by you hereunder, you are authorized
and directed to retain in your possession without liability to anyone all or
any part of said securities until such disputes shall have been settled either
by mutual written agreement of the parties concerned or by a final order,
decree or judgment of a court of competent jurisdiction after the time for
appeal has expired and no appeal has been perfected, but you shall be under no
duty whatsoever to institute or defend any such proceedings.

 

13.                                       Any notice required or
permitted hereunder shall be given in writing and shall be deemed effectively
given upon personal delivery or upon deposit in the United States Post Office,
by registered or certified mail with postage and fees prepaid, addressed to
each of the other parties thereunto entitled at the following addresses or at
such other addresses as a party may designate by ten (10) days advance
written notice to each of the other parties hereto.

 

14.                                       By signing these Joint
Escrow Instructions, you become a party hereto only for the purpose of said
Joint Escrow Instructions; you do not become a party to the Agreement.

 

15.                                       This instrument shall be
binding upon and inure to the benefit of the parties hereto, and their
respective successors and permitted assigns.

 

2

 

16.                                       These Joint Escrow Instructions
shall be governed by the internal substantive laws, but not the choice of law
rules, of Hawaii.

 

 

	
  PARTICIPANT

  	
   

  	
  HAWAIIAN
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name

  	
   

  	
  Print
  Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Residence
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ESCROW AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Corporate Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
				

 

3

 

EXHIBIT B-3

 

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF
1986

 

The
undersigned taxpayer hereby elects, pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended, to include in taxpayer’s gross
income or alternative minimum taxable income, as the case may be, for the
current taxable year the amount of any compensation taxable to taxpayer in
connection with taxpayer’s receipt of the property described below.

 

1.                                       The name,
address, taxpayer identification number and taxable year of the undersigned are
as follows:

 

NAME:
                                              

SPOUSE:
                                              

ADDRESS:
                                              

 

TAXPAYER
IDENTIFICATION NO.:
                                              

TAXABLE
YEAR:
                                              

 

2.                                       The property
with respect to which the election is made is described as follows:
                     shares
(the “Shares”) of the Common
Stock of Hawaiian Holdings, Inc. (the “Company”).

 

3.                                       The date on
which the property was transferred
is:                                      
,            .

 

4.                                       The property is
subject to the following restrictions:

 

The
Shares may not be transferred and are subject to forfeiture under the terms of
an agreement between the taxpayer and the Company.  These restrictions lapse upon the
satisfaction of certain conditions contained in such agreement.

 

5.                                       The Fair Market
Value at the time of transfer, determined without regard to any restriction
other than a restriction which by its terms shall never lapse, of such property
is: 
$                                  .

 

6.                                       The amount (if
any) paid for such property is zero dollars.

 

The
undersigned has submitted a copy of this statement to the person for whom the
services were performed in connection with the undersigned’s receipt of the
above-described property.  The transferee
of such property is the person performing the services in connection with the
transfer of said property.

 

The
undersigned understands that the foregoing election may not be revoked except
with the consent of the Commissioner.

 

	
  Dated:
                                              ,

  	
   

  	
   

  
	
   

  	
   

  	
  Taxpayer

  
	
   

  	
   

  	
   

  
	
  The
  undersigned spouse of taxpayer joins in this election.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:
                                              ,

  	
   

  	
   

  
	
   

  	
   

  	
  Spouse of TaxpayerExhibit 4.1

 

COVANCE INC.

2010 EMPLOYEE EQUITY PARTICIPATION
PLAN

 

1.                                      PURPOSE

 

The
Covance Inc. 2010 Employee Equity Participation Plan (the “Plan”) is
intended to (i) encourage executive, managerial, technical and other
Employees of Covance Inc. (the “Corporation” or “Company”) or a Subsidiary
(as defined below) to become owners of stock of the Corporation in order to
increase their proprietary interest in the Corporation’s success; (ii) to
stimulate the efforts of certain key executive, managerial, technical and other
Employees by giving suitable recognition to services which contribute
materially to the Corporation’s success; and (iii) to provide such
Employees with additional incentive and reward opportunity.

 

2.                                      EFFECTIVE DATE AND
DURATION OF PLAN

 

The Plan shall
become effective upon its approval by the shareholders of the Corporation.
Unless previously terminated by the Corporation’s Board of Directors (the “Board”),
the Plan shall have a term of ten years.

 

3.                                      DEFINITIONS

 

(a)           “1934 Act” means the Securities and
Exchange Act of 1934, as amended, including the rules and regulations
promulgated thereunder.

 

(b)           “Award” means a stock option, SAR (as
defined below), stock award (as defined below), any other award made pursuant
to the terms of the Plan, or any combination of them, as described in and
granted under the Plan.

 

(c)           “Award Agreement” is defined in Section 13
hereof.

 

(d)           “Black-Out Period” is defined in Section 9(a) hereof.

 

(e)           “Change of Control” is defined in Section 12(b).

 

(f)            “Code” means the Internal Revenue
Code of 1986, as amended, including any rules and regulations promulgated
thereunder or any successor body of laws, rules and regulations.

 

(g)           “Committee” means the Compensation
and Organization Committee of the Board of Directors or such other committee as
is appointed by the Board to administer the Plan.

 

(h)           “Employee” means an employee or a
consultant of the Corporation or a Subsidiary.

 

(i)            “Fair Market Value” means the
closing selling price of the Shares on the New York Stock Exchange Composite
Tape on the valuation date, or, if there were no sales on the valuation date,
the average of the closing selling prices on the New York Stock Exchange
Composite Tape on the first trading day before and the first trading day after
the valuation date.

 

(j)            “Full Value Award” is defined in Section 6(a) hereof.

 

(k)           “Grant Price” is defined in Section 9
hereof.

 

(l)            “ISO” means an incentive stock
option as defined in Section 422 of the Code.

 

(m)          “Non-Statutory Option” means an option
that is not an ISO.

 

(n)           “Participant” means an Employee who
has been granted an Award under the Plan.

 

(o)           “Prior Plan” means the
Covance Inc. 2007 Employee Equity Participation Plan.

 

(p)           “SAR” means a stock appreciation
right.

 

 

(q)           “Shares” means the common stock of
the Corporation, par value $0.01 per share.

 

(r)            “Stock Award” means an award other
than a stock option or SAR.

 

(s)           “Subsidiary” means an entity that is
directly or indirectly controlled by the Corporation or any entity, including
an acquired entity, in which the Corporation has a significant equity interest,
as determined by the Committee.

 

(t)            “Treasury Shares” means authorized
and issued, but not outstanding, Shares.

 

4.                                      PLAN ADMINISTRATION

 

(a)           The Committee shall be responsible
for administering the Plan. The Committee shall be comprised of two or more
non-employee members of the Board, each of whom is a “Non-Employee Director”
within the meaning of Rule 16b-3 under the 1934 Act and an “outside
director” within the meaning of Section 162(m) of the Code.

 

(b)           The Committee shall have full and
exclusive power to interpret the Plan and to adopt such rules, regulations, and
guidelines for carrying out the Plan as it may deem necessary or proper, all of
which power shall be executed in the best interests of the Corporation and in
keeping with the provisions and objectives of the Plan. This power includes,
but is not limited to (i) selecting Award recipients and the extent of
their participation; (ii) establishing all Award terms and conditions; (iii) adopting
procedures and regulations governing Awards; and (iv) making all other
determinations necessary or advisable for the administration of the Plan. All
decisions made by the Committee shall be final, binding and conclusive on all
persons interested in the Plan or any Awards.

 

The Committee may
delegate from time to time during the term of the Plan to one or more executive
officers or directors of the Corporation the authority to carry out some or all
of its responsibilities provided that the Committee may not delegate its
authority and powers in any way which would be inconsistent with the
requirements of the Code or the 1934 Act. The Committee may at any time rescind
the authority delegated to any such executive officer or director.

 

To the extent consistent
with the Corporation’s Amended and Restated Certificate of Incorporation, no
member of the Committee shall be liable for any action or determination with
respect to the Plan, and the members shall be entitled to indemnification and
reimbursement in the manner provided in the Corporation’s Restated Certificate
of Incorporation, as amended, modified or supplemented from time to time. In
the performance of its functions under the Plan, the Committee shall be
entitled to rely upon information and advice furnished by the Corporation’s
officers, accountants, counsel and any other party the Committee deems
necessary, and no member of the Committee shall be liable for any action taken
or not taken in reliance upon any such advice.

 

(c)           Except to the extent prohibited by
applicable law and unless otherwise expressly provided in an Agreement or in
the Plan, the Committee may alter or amend, and the Board may terminate, the
Plan or any portion thereof at any time; provided, however, that no such
amendment, alteration, or termination shall be made without (i) shareholder
approval (x) if such approval is necessary to comply with any tax or
regulatory requirement for which or with which the Committee or Board deems it
necessary or desirable to qualify or comply or (y) if the proposed
amendment will increase the number of Shares that may be issued under the Plan,
modify the requirements for participation in the Plan, or increase benefits
that have already accrued to Participants under the Plan or (ii) the
consent of the affected Participant, if such action would adversely affect the
rights of such Participant under any outstanding Award. Notwithstanding
anything to the contrary herein, the Committee may amend the Plan in such
manner as may be necessary to enable the Plan to achieve its stated purposes in
any jurisdiction outside the United States in a tax-efficient manner and in
compliance with local rules and regulations. Notwithstanding the foregoing
or any provision of the Plan or an Award to the contrary, (i) the Committee
may at any time (without the consent of any Participant) modify or amend any or
all of the provisions of the Plan or an Award to the extent necessary to
conform the provisions of the of the Plan or an Award to comply with Section 409A,
the regulations issued thereunder or an exception thereto, regardless of
whether such modification or amendment of the Award shall adversely affect the
rights of a Participant, and (ii) except in connection with a corporate
transaction involving the Company (including, without limitation, any stock
dividend, stock split, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination, or
exchange of shares), the terms of outstanding Awards may not be amended to reduce
the exercise price of outstanding options or SARs or cancel outstanding options
or SARs in exchange for cash, other Awards, Options or SARs with an exercise
price that is less than the exercise price of the original Award, without
shareholder approval.

 

 

This Section 4(c) is
intended to prohibit the repricing of stock options and SARs and will not be
construed to prohibit the adjustments provided for in Section 7 of this
Plan.

 

(d)           The termination of the Plan, either
pursuant to Section 2, Section 4(c) or otherwise, shall not
cause any previously granted Awards to terminate. After the termination of the
Plan, any previously granted Awards shall remain in effect and shall continue
to be governed by the terms of the Plan, the Awards, and any applicable Award
Agreements.

 

5.                                      PARTICIPATION

 

The individuals
who shall be eligible to receive Awards under the Plan shall be Employees
(including officers who are directors) as the Committee or one or more
executive officers or directors, in accordance with Section 4(b) hereof,
shall approve from time to time. Designation of a participant in any year shall
not require the Committee to designate that person to receive a benefit in any
other year or to receive the same type or amount of benefit as granted to the
participant in any other year or as granted to any other participant in any
year. The Committee shall consider all factors that it deems relevant in
selecting participants and in determining the type and amount of their
respective benefits.

 

6.                                      LIMITATION ON NUMBER OF
SHARES

 

(a)           Subject to the provisions of this Section 6
and Section 7 hereof, up to 4,300,000 Shares may be issued under the Plan.
The stock subject to the provisions of this Plan shall be shares of authorized
but unissued Shares and Treasury Shares. Any shares granted as options or SARs
shall be counted against this limit as one (1) share for every one (1) share
granted. Any shares granted as awards other than options or SARs (“Full Value
Award”) shall be counted against this limit as one and seventy-four hundredths
(1.74) shares for every one (1) share granted.

 

(b)           In addition to the Shares authorized
by Section 6(a) hereof, the following Shares may be issued under the
Plan: (i) Shares that were available for issuance under the Prior Plan but
were not issued or subject to options granted under the Prior Plan, (ii) Shares
that are forfeited under the Prior Plan and Shares that are not issued under
the Prior Plan because of the cancellation, termination or expiration of
awards, and/or other similar events under the Prior Plan, and (iii) Shares
that are issued under the Plan which are subsequently forfeited in accordance
with the terms of the Award or an Award Agreement or shares that are not issued
because of the cancellation, termination, or expiration of Awards and/or
similar events under the Plan. Shares subject to unexercised portions of
forfeited, terminated or expired stock options and SARs granted under the Plan
shall be credited back to the limit as one (1) share for every one (1) share
granted. Shares issued as Full Value Awards under the Plan which have been
forfeited or otherwise not earned shall be credited back to the limit as one
and seventy-four hundredths (1.74) shares for every one (1) share so
forfeited or not issued.

 

(c)           In addition to the forgoing, the
shares available for issuance as Awards other than stock options and SARs under
the Prior Plan but not so issued may be issued hereunder. There shall be no net
share counting of stock settled SARs under this Plan.

 

(d)           Subject to the foregoing provisions
of this Section 6, if an Award may be paid only in Shares or in either
cash or Shares, the Shares shall be deemed to be issued hereunder only when and
to the extent that payment is actually made in Shares.

 

(e)           Subject to the adjustment provisions
set forth herein, an individual Participant may not receive Awards with respect
to more than 25% of the number of Shares specified in Section 6(a) hereof
over the term of the Plan.

 

7.                                      ADJUSTMENT PROVISIONS

 

In the event that
any dividend or other distribution (whether in the form of Shares, other
securities, or other property), extraordinary cash dividend, recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Shares or other
securities, the exercisability of stock purchase rights received under any
shareholders’ rights plan, the issuance of warrants or other rights to purchase
Shares or other securities, or other similar corporate transaction or event materially
affects the Shares with respect to which Awards have been or may be issued
under the Plan, then the Committee shall, in a manner and to the extent that
the Committee deems appropriate to prevent any dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan:

 

(a)           adjust the number and type of
securities that thereafter may be issued under the Plan,

 

 

(b)           adjust the number and type of
securities subject to outstanding Awards,

 

(c)           adjust the Grant Price or purchase
price with respect to any Award, or

 

(d)           make provision for a cash payment to
the holder of an outstanding Award; provided, however, that in no event shall a
cash payment be made for any Option or SAR which has an exercise or grant price
that is below the current Fair Market Value of the Common Stock.

 

However, no
adjustment shall be authorized with respect to incentive stock options to the
extent that the adjustment would cause the options to violate Section 422(b) of
the Code or any successor provision. In addition, the number of securities
subject to any Award denominated in Shares shall always be a whole number.

 

In the event the
Corporation acquires another entity by means of a merger, consolidation,
acquisition of property or stock, reorganization or otherwise, the Committee
shall be authorized to cause the Corporation to issue or to assume stock
options or stock appreciation rights, whether or not in a transaction to which Section 424(a) of
the Code applies, by means of substitution of new options or rights for
previously issued options or rights or an assumption of previously issued
options or rights. Any substitute Awards granted under the Plan shall not count
against the share limitations set forth in Section 6 hereof, to the extent
permitted by Section 303A.08 of the Corporate Governance Standards of the
New York Stock Exchange. Additionally, in the event that a company acquired by
(or combined with) the Company or any Subsidiary has shares available under a
pre-existing plan approved by shareholders and not adopted in contemplation of
such acquisition or combination, the shares available for grant pursuant to the
terms of such pre-existing plan (as adjusted, to the extent appropriate, using
the exchange ratio or other adjustment or valuation ratio or formula used in
such acquisition or combination to determine the consideration payable to the
holders of common stock of the entities party to such acquisition or
combination) may be used for Awards under the Plan and shall not reduce the
Shares authorized for grant under the Plan; provided that Awards using such
available shares shall not be made after the date awards or grants could have
been made under the terms of the pre-existing plan, absent the acquisition or
combination, and shall only be made to individuals who were not employees or
directors of the Company or any Subsidiary prior to such acquisition or
combination.

 

Subject to any
required action by the Corporation’s shareholders, if the Corporation is a
party to any merger or consolidation where the Corporation is not the survivor,
a Participant holding an outstanding Award valued directly or indirectly by
Shares shall be entitled to receive, upon the exercise of the Award, the same
per Share consideration (cash, shares or other consideration) on the same terms
that a holder of the same number of Shares that are subject to the Participant’s
Award would be entitled to receive pursuant to the merger or consolidation.

 

8.                                      TERMINATION OF GRANTS
UNDER THE PRIOR PLAN

 

Effective upon the
approval of this Plan by the Corporation’s shareholders, no further grants of
options, rights, units or other awards are or will be permitted under the Prior
Plan. All grants and awards under the Prior Plan that remain outstanding after
the approval of this Plan by the Corporation’s shareholders shall be
administered and paid in accordance with the provisions of the Prior Plan; provided, however,
that the shares related to such grants and awards which have not been issued
prior to this Plan’s approval by the Corporation’s shareholders shall be
issuable under this Plan in accordance with Section 9(e) hereof.

 

9.                                      AWARDS UNDER THE PLAN

 

The following
types of Awards may be granted under this Plan, singly, or in combination as
the Committee may determine from time to time:

 

(a)           Stock Options—A stock option shall
represent a right to purchase a specified number of Shares at a stated exercise
price (the “Grant Price”) during a specified time, not to exceed ten years from
the date of grant, as determined by the Committee; provided, however, that if
an Option other than an ISO may not be exercised due to a Black-Out Period
(defined as any period of time when, pursuant to any policies of the Company,
any securities of the Company may not be traded by certain persons as
designated by the Company) within the three business days prior to the normal
expiration date of such Option, then the expiration date of such Option shall
be extended for a period of 30 days following the end of the Black-Out
Period. The Grant Price per Share for each stock option or SAR shall not be
less than 100% of the Fair Market Value on the date of grant. A stock option
may be in the form of an ISO or a Non-Statutory Option which in each case is
consistent with the applicable terms, conditions, and limitations established
by the Committee. Upon satisfaction of the applicable conditions to
exercisability specified in the terms and conditions of the Award Agreement,
the Participant shall be entitled to exercise the option in whole or in part 

 

 

and to receive, upon
satisfaction or payment of the Grant Price in the manner contemplated in this Section 9(a),
the number of Shares in respect of which the option shall have been exercised.

 

The Shares covered
by a stock option may be purchased by methods permitted by the Committee,
including: (i) a cash payment; (ii) tendering Shares owned by the
Participant, valued at the Fair Market Value at the date of exercise; (iii) to
the extent permitted by applicable law, authorizing the Corporation to sell the
Shares (or a sufficient portion thereof) acquired upon exercise of a stock
option, and assigning to the Corporation a sufficient amount of the sale
proceeds to pay for all the Shares acquired through such exercise and any tax
withholding obligations resulting from such exercise, or (iv) such other
methods as the Committee, in its discretion, deems appropriate.

 

The Committee may
not (i) grant additional stock options under the Plan to a Participant
contingent upon the surrender of Shares owned by the Participant in payment of
the Grant Price of a stock option granted under the Plan, or (ii) change
or amend the exercise price of any stock options.

 

(b)           SARs—An SAR shall represent a right
to receive a payment in cash, Shares, or a combination thereof as determined by
the Committee, equal to the excess of the Fair Market Value of a specified
number of Shares on the date the SAR is exercised over an amount which shall be
no less than the Fair Market Value on the date the SAR was granted as set forth
in the applicable Award Agreement. SARs issued hereunder shall not have a term
in excess of ten years.

 

(c)           Other Stock Awards—A Stock Award
shall represent an Award made in Shares or denominated in units equivalent in
value to Shares or any other Award based on or related to Shares. All or part
of any Stock Award may be subject to conditions and restrictions established by
the Committee, and set forth in the applicable Award Agreement, which may
include, but are not limited to, continuous service with the Corporation or a Subsidiary
and/or the achievement of Corporation or individual performance goals. No more
than five percent of the shares available for grant hereunder as Full Value
Awards may be issued as restricted stock other than (i) performance based
restricted stock with at least one year vesting, or (ii) restricted stock
with a vesting term of at least three year pro rata vesting. Notwithstanding
these general preferences for minimum vesting periods, the award may provide
that the restrictions lapse in limited cases of an intervening event related to
death, disability, retirement, or a Change in Control. The performance criteria
that shall be used by the Committee in granting Stock Awards contingent on
performance goals for officers to whom 162(m) of the Code is applicable
shall consist of stock price, earnings level, and return on equity or such
other criteria that shall satisfy the requirements of Section 162(m) or
any successor provision.

 

(d)           Dividends—The Committee may provide
that Awards under Section 9(c) of the Plan earn dividends or dividend
equivalents. Such dividends or dividend equivalents may be paid currently or
may be credited to a participant’s account. Any crediting of dividends or
dividend equivalents may be subject to such restrictions and conditions as the
Committee may establish, including reinvestment in additional Shares or Share
equivalents.

 

(e)           Prior Plan Awards—Awards which,
pursuant to their terms, would have been made under the Prior Plan but were not
done so prior to the approval of this Plan by the Corporation’s shareholders,
such as additional performance shares earned under restricted stock agreements,
shall be issued under the Plan in accordance with the terms of the Prior Plan.

 

10.                               PAYMENTS AND PAYMENT
DEFERRALS

 

Payment of Awards
may be in the form of cash, Shares, other Awards, or combinations thereof as
the Committee shall determine, and with such restrictions as it may impose. The
Committee also may require or permit participants to elect to defer the receipt
or issuance of Shares from stock options or Stock Awards or the settlement of
Awards in cash under such rules and procedures as it may establish under
the Plan. It also may provide that deferred settlements of Awards include the
payment or crediting of earnings on deferred amounts, or the payment or
crediting of dividend equivalents where the deferred amounts are denominated in
Share equivalents. In addition, the Committee may stipulate in an Award
Agreement, either at the time of grant or by subsequent amendment to such Award
Agreement, that a payment or portion of a payment of an Award be delayed in the
event that Section 162(m) of the Code (or any successor or similar
provision of the Code affecting tax deductibility) would disallow a tax
deduction by the Corporation for all or a portion of such payment. The period
of any such delay in payment shall be until the payment, or portion thereof, is
tax deductible, or such earlier date as the Committee shall determine.

 

 

Notwithstanding
any provision of the Plan to the contrary, to the extent that awards under the
Plan are subject to the provisions of Section 409A of the Code, then the
Plan as applied to those amounts shall be interpreted and administered so that
it is consistent with such Code section.

 

11.                               TRANSFERABILITY

 

During the
lifetime of a Participant, the Award shall be exercisable only by such
Participant and Awards shall not be transferable or assignable other than by
will or the laws of descent and distribution, or pursuant to qualified domestic
relations orders as defined in or meeting the requirements of the Code or Title
I of the Employee Retirement Income Security Act of 1974, as amended. The
assigned portion may only be exercised by the person or persons who acquire a
proprietary interest in the Option pursuant to the assignment. The terms
applicable to the assigned portion shall be the same as those in effect for the
Option immediately prior to such assignment and shall be set forth in such
documents issued to the assignee as the Committee may deem appropriate. Notwithstanding
the forgoing, in no event shall any Award be transferred for value or
consideration.

 

12.                               CHANGE OF CONTROL

 

(a)           In the event of a Change of Control,
all Awards which have not vested shall immediately vest upon the occurrence of
such Change of Control.

 

(b)           A “Change of Control” shall be deemed
to occur if and when: (i) any person (including as such term is used in Section 13(d) and
14(d)(2) of the 1934 Act) becomes the beneficial owner, directly or
indirectly, of securities representing 30% or more of the combined voting power
of the Corporation’s then outstanding securities; or (ii) as a result of a
proxy contest or contests or other forms of contested shareholder votes (in
each case either individually or in the aggregate), a majority of the individuals
elected to serve on the Corporation’s Board of Directors are different than the
individuals who served on the Corporation’s Board of Directors at any time
within the two years prior to such proxy contest or contests or other forms of
contested shareholder votes (in each case either individually or in the
aggregate); or (iii) upon consummation of a merger, or consolidation
(where in each case the Corporation is not the survivor thereof), or sale or
disposition of all or substantially all of the Corporation’s assets or a plan
or partial or complete liquidation; or (iv) when an offerer (other than
the Corporation) purchases shares of the Corporation’s Common Stock pursuant to
a tender or exchange offer for securities representing 30% or more of the combined
voting power of the Corporation’s then outstanding securities.

 

13.                               AWARD AGREEMENTS

 

Each Award under
the Plan shall be evidenced by an agreement setting forth its terms,
conditions, and limitations for each Award, and the provisions applicable in the
event the Participant’s employment terminates (an “Award Agreement”). The
Committee need not require the execution of any such agreement by the
recipient, in which case, acceptance of the Award by the respective Participant
shall constitute agreement by the Participant to the terms and conditions of
the Awards.

 

14.                               TAX WITHHOLDING

 

The Corporation
shall have the right to deduct from any settlement of an Award made under the
Plan, including the delivery or vesting of Shares, or require the payment of, a
sufficient amount to cover withholding of any federal, state or local or other
governmental taxes or charges required by law or such greater amount of
withholding as the Committee shall determine from time to time and as permitted
by applicable laws, rules and regulations, or to take such other action as
may be necessary to satisfy any such withholding obligations. If the Committee
permits or requires Shares to be used to satisfy required tax withholdings,
such Shares shall be valued at the Fair Market Value as of the tax recognition
date for such Award or such other date as may be required by applicable law, rule or
regulation.

 

15.                               OTHER BENEFIT AND
COMPENSATION PROGRAMS

 

Unless otherwise
specifically determined by the Committee, settlements of Awards received by
Participants under the Plan shall not be deemed a part of a Participant’s
regular, recurring compensation for purposes of calculating payments or
benefits from any Corporation benefit plan or severance program. Further, the
Corporation or any Subsidiary may adopt from time to time other compensation
programs, plans or arrangements as it deems appropriate or necessary.

 

 

16.                               UNFUNDED PLAN

 

Unless otherwise
determined by the Committee, the Plan shall be unfunded and shall not create
(or be construed to create) a trust or a separate fund or funds. The Plan shall
not establish any fiduciary relationship between the Corporation and any
participant or other person. To the extent any person holds any rights by
virtue of an Award granted under the Plan, such rights shall constitute general
unsecured liabilities of the Corporation and shall not confer upon any
participant any right, title, or interest in any assets of the Corporation.

 

17.                               REGULATORY APPROVALS

 

The implementation
of the Plan, the granting of any Award under the Plan, and the issuance of
Shares upon the exercise or settlement or any Award shall be subject to the
Corporation’s procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the Awards granted under it, or
the Shares issued pursuant to it. In the event any benefit under this Plan is
granted to an employee who is employed or providing services outside the United
States and who is not compensated from a payroll maintained in the United States,
the Committee may, in its sole discretion, modify the provisions of the Plan as
they pertain to such individuals to comply with applicable law, regulation or
accounting rules consistent with the purposes of the Plan and the Board of
Directors or the Committee may, in its discretion, establish one or more
sub-plans to reflect such modified provisions. All sub-plans adopted by the
Committee shall be deemed to be part of the Plan, but each sub-plan shall apply
only to Participants within the affected jurisdiction and the Company shall not
be required to provide copies of any sub-plans to Participants in any
jurisdiction which is not the subject of such sub-plan.

 

18.                               RIGHTS AS A SHAREHOLDER

 

A Participant
shall have no rights as a shareholder with respect to Shares covered by an
Award until the date the Participant or his nominee is the holder of record
with respect to the Shares covered by such Award. No adjustment will be made
for dividends or other rights for which the record date is prior to such date,
except as may be provided pursuant to Section 9(d) hereunder.

 

19.                               FUTURE RIGHTS

 

No person shall
have any claim or right to be granted an Award, and the grant of an Award shall
not be construed as giving a Participant the right to be retained in the employ
of the Corporation or a Subsidiary or to participate in any other compensation
or benefit plan, program or arrangement of the Corporation or any Subsidiary or
to receive any future Award under the Plan. In addition, the Corporation
expressly reserves the right at any time to dismiss a Participant free from any
liability or any claim under the Plan, except as expressly provided in the Plan
or in any Award Agreement entered into hereunder.

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