Document:

EX-10.8

 

Exhibit 10.8

CONTRACT FOR THE SALE

OF CoCu Concentrate

N° CTA/507/KCO

Between :

CENTRAL TRADING OF AFRICA Ltd,

12 The Shrubberies, George Lane GB — London E18 1 BD, represented herein by Mr Axel WEND

Hereinafter referred to as CTA

And

OMG KOKKOLA CHEMICALS Oy, a company organized and existing under the laws of the Republic of
Finland, represented by Mr. JORAN SOPO;

Hereinafter referred to as KCO

IT IS HEREBY AGREED AS FOLLOWS:

Table of contents:

ARTICLE 1 . DEFINITIONS

ARTICLE 2 : PURPOSE — DURATION and RECONDUCTION

ARTICLE 3 : CHARACTERISTICS & SPECIFICATIONS OF THE PRODUCTS TO BE DELIVERED

ARTICLE 4: PRICE

4.1. Reference and Quotational Period

4.2. Price Calculation

4.3. Penalty— Premium for the Cobalt

4.4. Invoicing

ARTICLE 5 : SAMPLING AND FINAL ANALYSIS

5.1. Weighing — Sampling

5.2. Analysis

ARTICLE 6 : APPOINTMENT

ARTICLE 7 : NOTICES

ARTICLE 8 : QUOTATIONAL PERIOD

ARTICLE 9 : FORCE MAJEURE

ARTICLE 10 : REFERENCE DOCUMENT

ARTICLE 11 : AMENDMENT

ARTICLE 12 : NON WAIVER

ARTICLE 13 : VALIDITY OF CLAUSES AND HEADINGS

ARTICLE 14 : INTERPRETATION

ARTICLE 15 : AMICABLE SETTLEMENT

ARTICLE 16 : JURISDICTION — LANGUAGE

ARTICLE 1 : DEFINITIONS

Wherever used in this contract unless the context otherwise requires:

CIF: means loaded on boat, packing big bags included, African port to Kokkola port Finland,
transport and

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insurance charges to CTA according to Incoterms 2000.

Business Day means a day which is not a Saturday, Sunday or a public holiday in Europe or Africa,

in such a way that is any period end a non Business Day, it will expire the first next Business Day

LMB: means London Metal Bulletin.

LME: means London Metal Exchange.

Dispatched Lot and Dispatched Sub-Lot: shall designate any lot of CoCu Concentrate, sent from the
Democratic Republic of Congo (Katanga) for purchase by KCO. The lots will be labelled by CTA by
affixing a code and number on each big bag.

Shipping means the quantity of CoCu Concentrate shipped in an African port. On its arrival in
Kokkola it should be divided in Received Lots.

Received Lot : means the Cobaltiferous Product received by KCO in Kokkola, containing approximately
**. Each Received Lot can be a sub-division of a Shipping.

Month means calendar Month.

Quotational period: shall mean the period taken into consideration for invoicing, as specified into
article 4.1. hereafter.

CoCu Concentrate: shall designate the materials defined into article 3 hereafter.

Ton and metric Ton means 2204,62 pounds

WMT means wet metric ton.

DMT means dry metric ton.

USD means lawful currency of the United States of America

ARTICLE 2 : PURPOSE — DURATION and RECONDUCTION

The purpose of this contract is related to the delivery of CoCu Concentrate of ** of Cobalt
contained divided into ** Monthly Shipping of ** of Cobalt contained.

This CoCu Concentrate shall be forwarded out of Katanga to be delivered CIF (Incoterms 2000) to
Kokkola -Finland

This contract enter into force on October 1st, 2007.

The parties will meet on or before ** latest for a possible renewal of the
quantities for the **

ARTICLE 3: CHARACTERISTICS & SPECIFICATIONS OF THE PRODUCTS TO BE DELIVERED

Taking into account article 2, CTA agrees to sell and deliver and KCO agrees to purchase CoCu
Concentrate having the following characteristics assayed on a dry basis:

**

These CoCu Concentrate shall be ex ** exclusively.

ARTICLE 4: PRICE

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4.1. Reference and Quotation Period

4.1.1 For the Cobalt contained:

**

4.1.2. For the Copper contained:

**

4.2. Price calculation

4.2.1 For the Cobalt contained:

The payable amount for the Cobalt Contained is fixed as follows:

**

4.2.2 For the Copper contained

The amount payable for Copper contained Is determined according to following formula:

**

4.3. Penalty — Premium for the Cobalt

4.3.1 Penalty if the Cobalt contained is **

If Co-contained in a Received Lot is ** there will be a discount of the price defined here above.

The discount is **.

The discount is **.

4.3.2 Premium if the Cobalt contained is **

If Co-contained in Received Lot is ** there will be a premium of the price defined here above.

The premium is **.

The premium is **.

4.4. Invoicing / Payments

4.4.1. Provisional invoice / payment

A first provisional invoice will be issued as on loading African Port. It shall be drawn on the
basis of the Producer’s analysis and calculated under the terms of article 4.1. and 4.2, but with
reference to the **.

** of the provisional invoice will be payable within ** subjected to the transmission of the
following documents:

- a Commercial Invoice,

- the table of loading

- an original set of Bill of Lading

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4.4.2. Final Invoice

The final invoice shall be issued according to the terms of article 4.1 and 4.2 after final
weights, prices and assays as specified in article 5, are known. The final amount shall be payable
at sight, after deduction of the amount paid under the provisional invoice.

ARTICLE 5 : SAMPLING AND FINAL ANALYSIS

On the arrival of any Received Lot at Kokkola, it will be proceed as follows at Buyer’s cost:

5.1. Weighing — Sampling

The sampling operation will be carried as on arrival of the Products at the plant of destination by
Finnish Cargo Control Ltd. (acting as independent controller) and latest 15 calendar days after
arrival at the Port of Kokkola.

Any weighed and sampled lot will constitute a Received Lot with which all the provisions of this
article and its continuations that it induces will apply.

For any sampled lot, each party shall receive from Finnish Cargo Control Ltd. two sealed samples
set, one for its own analysis and the other one being hold for reserve in case of umpire analysis.

Finnish Cargo Control Ltd. will preserve too one sample set in case of umpire assay.

Each party shall have the right to assist or to be represented during the sampling operation.

Within 15 calendar days from sampling, Finnish Cargo Control Ltd. weighing report with
determination of moisture and dry weigh shall be sent to the parties.

Such weights shall be final.

Finnish Cargo Control Ltd. shall include in its weighing and sampling report all the references
related to the loading tables.

The samples for CTA will have to arrive to TEA Pty (South Africa) within 15 calendars days after
the date of operations of sampling. GFI, agent for CTA, shall be inform of the sending by email.

5.2. Analysis

Assays shall be made independently by KCO and CTA and these results shall be exchanged on a way
and date to be mutually agreed upon.

If the difference of assays for Co and Cu is not higher than ** the accepted contained shall be
the arithmetic average of these results for the issue of the final invoice.

In the event of a greater difference and if one of the parties so requests, an umpire assay shall
be made by an umpire laboratory to be mutually agreed who will be either:

Griffith, Britain

2 Perry Road, Witham

Essex, CM8 3TU

England, Great Britain

Or

Alfred H. Knight International Ltd

Eccleston Grange

Prescot Road

St. Helens

4

 

Merseyside WA10 3BQ — UK

· Should the umpire assay be the exact arithmetic mean of the exchanged assays then the
umpire result shall be final; with such a case the cost of the umpire assay shall be borne equally
by both parties.

· Should the umpire assay fall between the results of the two parties or coincide with
either, the arithmetical mean of the umpire assay and the assay of the party that is the nearer one
to the umpire shall be taken as the agreed assay. The cost of the umpire assay shall be borne by
the party whose results of assay deviate the most with the umpire assay ones.

· Should the umpire assay fall outside the exchanged results, the assay of the party which is
nearer the umpire shall be taken as agreed assay. The cost of this assay shall be borne by the
other party.

Should one of the assay not be available within 45 calendar days after arrival, the parties will
contact each other to determine the amount that KCO shall pay in addition to the provisional
invoice. CTA will issue and send an additional invoice accordingly.

Should one of the assay not be available within 60 calendar days after arrival, the available assay
will attest for the final invoicing.

The assay results, as defined here above will be final, compulsory and binding for each party and
for all the purpose of this contract.

Based on the dry tonnage determined by the independent controller and the final assay results
applicable to the Received Lot, CTA will issue the final invoice related to the Shipping. The
invoice shall be transmitted to KCO via facsimile or electronic mail.

The original of the invoice shall be sent by express courier.

ARTICLE 6: APPOINTMENT

To facilitate the proper monitoring of the performance of this Contract, in particularly its
transport and follow-up components, CENTRAL TRADING OF AFRICA Limited has appointed, irrevocably
for this purpose, GEORGE FORREST INTERNATIONAL S.A. (GFI) a Belgian Company, Avenue Pasteur 9, 1300
Wavre, Belgium.

This mandate is recognised to be valid and not opposable by KCO.

This appointment shall remain in force until the expiration of this contract.

ARTICLE 7: NOTICES

All communications or notices, shall be delivered in person or sent by pre paid registered post, or
by any other way under which the sender preserve a formal evidence of transmission and reception.

For CTA

CTA Ltd

c/o GFI SA

Avenue Pasteur, 9

1300 Wavre — Belgium

Email: wb.gfl@forrestgroup.com

Tel: + 32 10 23 96 80

Fax: + 32 10 23 96 89

For KCO

KCO

OMG Kokkola Chemicals Oy

5

 

Att : The President

P.O. Box 286

FIN-67101 Kokkola — Finland

Email : joran.sopo@eu.omgi.com

Telephone : +358 6 828 0111

Telecopy : +358 6 828 1009

Any change of adress will be taken into consideration only if it has been notified in wrtitting by
a party to the other.

ARTICLE 8: DEFAULT PROCEDURE

Should any party remain under default of performing any of its obligations, or in the event of a
default with the undertaken commitments, the injured party shall have the right to serve notice to
the defaulting party by registered letter.

The defaulting party shall remedy the problem within a strict period of 15 calendar days as of the
service of notice.

The very fact that the defaulting party falls to remedy the default within the 15-day period shall
entitle the injured party to introduce the procedure provided in Article 15 infra.

If the default concerns the total or partial non-payment of an invoice drawn up according to this
contract, CTA shall be entitled to cancel the contract, without prejudice to its rights for payment
and indemnification.

ARTICLE 9: FORCE MAJEURE

All cases of force majeure shall be assessed in accordance with law. A case of force majeure is any
act, situation, de facto or de jure, phenomenon or circumstance of an external, unforeseeable and
irreversible nature beyond the reasonable control of the party that invokes it.

The party invoking a case of force majeure must notify the other within the ten days of becoming
conscious thereof, by providing a detailed memorandum of the constituting facts. Such a case may be
invoked only while it runs.

In the event of non-performance, by one of the parties, of its contractual obligations because of a
case of force majeure, the period granted for the performance thereof shall be extended by the
delay caused by said force majeure.

When the case of force majeure constitutes a definitive obstacle to the performance of this
contract, either party may cancel it after consultation.

ARTICLE 10: REFERENCE DOCUMENT

This contract cancels and replaces all documents exchanged previously by and between the parties
regarding the same purposes.

ARTICLE 11: AMENDMENT

Any amendment or addition to this contract shall come with effect only if done in writing and duly
signed by both parties.

Should an amendment or a change have an effect on any other clause of this contract, the parties
shall amend or change said other clauses to avoid any conflict between said clauses and the
amendment.

ARTICLE 12: NO WAIVER

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That fact that at any time whatsoever either party does not request for the performance of any
provision of this contract, shall under no circumstances affect the right of that party to request
this contract to be performed. The release by either party, at any time, from compliance with a
provision of this contract by the other party shall at no time be misconstrued as a release by
said party from all subsequent performance of the provision or a release from the performance of
any other provision of this contract.

ARTICLE 13: VALIDITY OF THE CLAUSES AND HEADINGS

If a clause of this contract were to become null and void, such voidance shall not affect the
other provisions or annexe of said contract. The parties shall endeavor, through negotiations
conducted in good faith, to replace any provision of this contract that becomes null and void as
well as any other provision thereby affected.

The headings of this contract are considered as references for convenience only and shall not
affect or limit the meaning or interpretation of the provisions.

ARTICLE 14: INTERPRETATION

The parties recognize that the rights and obligations resulting out of this contract result from
negotiations conducted between themselves in good faith; any possible ambiguity, gap or difficulty
of interpretation shall be settled consequently not with regard to the stipulating or beneficiary
party, but only with regard to the general and fair balance of the rights and obligations between
the parties.

ARTICLE 15: AMICABLE SETTLEMENT

In the event of a dispute between the parties arising out of or related to this contract, the
parties shall meet to find an amicable solution, prior to any court action and except in emergency
cases. To this end, the parties (or their agents expressly designated for this purpose) shall meet
within 15 days as of the date of a written notice served by the first party to take action to the
other party, and shall consult and negotiate in good faith, taking their mutual interests into
consideration, so as to reach a fair solution to the satisfaction of either parties.

Should the parties fail to a solution within a period of 30 days starting as of the date of
notification, the courts upon the initiative of the first party to take action shall settle the
dispute, complaint or problem.

Other than in cases of emergency, the foregoing reconciliation procedure shall be carried out
beforehand, such that any court proceedings must be put in abeyance if the reconciliation procedure
has not been carried out.

ARTICLE 16: COMPETENT COURTS — LANGUAGE

Any dispute of any kind between the parties not amicably settled shall be submitted to the courts
of Brussels.

Belgian law only shall apply, but with no regard to those related to conflict of jurisdiction and
to CISG.

In consequence whereof, the parties signed this contract drafted in French and in English, in
triplicate, two originals for CTA and one for KCO, by their authorized representatives. The English
version will be binding.

October 4th 2007.

	 	 	 
	/s/

	 	/s/ Jöran Sopo
	CTA

	 	KCO

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Appendix 1 — to the contract CTA/507/KCO

**

** Confidential treatment has been requested with respect to certain information contained within
this document. Confidential portions are omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act of 1934.

8EX-4.3

 

Exhibit 4.3

STONERIDGE, INC.

AMENDED AND RESTATED

LONG-TERM INCENTIVE PLAN

SECTION 1.    Purpose; Definitions.

                          The purpose of the Stoneridge, Inc. Amended and Restated Long-Term Incentive Plan (the “Plan”)
is to enable Stoneridge, Inc. (the “Company”) and its Subsidiaries (as defined below) to attract,
retain and reward key employees of the Company and of its Affiliates and to strengthen the
mutuality of interests between those employees and the Company’s shareholders by offering such
employees equity or equity-based incentives thereby increasing their proprietary interest in the
Company’s business and enhancing their personal interest in the Company’s success.

For purposes of the Plan, the following terms are defined as follows:

(a)      “Affiliate” means any entity (other than the Company and any Subsidiary) that is
designated by the Board as a participating employer under the Plan.

(b)      “Award” means any award of Stock Options, Restricted Shares, Deferred Shares,
Share Purchase Rights, Share Appreciation Rights or Other Share-Based Awards under
the Plan.

(c)      “Board” means the Board of Directors of the Company.

(d)      “Cause” means, unless otherwise provided by the Committee, (i) “Cause” as
defined in any Individual Agreement to which the participant is a party, or (ii) if
there is no such Individual Agreement or if it does not define Cause:

(1)      misappropriation of funds from the Company or dishonesty in the course of fulfilling the
participant’s employment duties;

(2)      conviction of a felony;

(3)      commission of a crime or act or series of acts involving moral turpitude;

(4)      commission of an act or series of acts of dishonesty that are materially inimical to the
best interests of the Company;

(5)      breach of any material term of an employment agreement, if any;

(6)      willful and repeated failure to perform the duties associated with the participant’s
position, which failure

 

 

has not been cured within thirty (30) days after the Company gives notice thereof to the
participant; or

(7)      failure to cooperate with any Company investigation or with any investigation, inquiry,
hearing or similar proceedings by any governmental authority having jurisdiction over the
participant or the Company.

The Committee shall, unless otherwise provided in an Individual Agreement with the
participant, have the sole discretion to determine whether “Cause” exists, and its
determination shall be final.

(d)      “Change in Control” has the meaning set forth in Section 11(b).

(e)      “Change in Control Price” has the meaning set forth in Section 11(d).

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

(g)      “Committee” means the Committee referred to in Section 2 of the Plan.

(h)      “Company” means Stoneridge, Inc., an Ohio corporation, or any successor
corporation.

(i)      “Deferred Shares” means an Award of the right to receive Shares at the end of a
specified deferral period granted pursuant to Section 7.

(j)      “Disability” means a permanent and total disability as defined in Section
22(e)(3) of the Code.

(k)      “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(l)      “Fair Market Value” means, as of a given date (in order of applicability): (i)
the closing price of a Common Share on the principal exchange on which the Common
Shares are then trading, if any, on the day immediately prior to such date, or if
Common Shares were not traded on the day previous to such date, then on the next
preceding trading day during which a sale occurred; or (ii) if Common Shares are not
traded on an exchange but are quoted on NASDAQ or a successor quotation system, (A)
the last sale price (if Common Shares are then listed as a National Market Issue
under the NASD National Market System) or (B) if Common Shares are not then so
listed, the mean between the closing representative bid and asked prices for Common
Shares on the day previous to such date as reported by NASDAQ or such successor
quotation system; or (iii) if Common Shares are not publicly traded on an exchange
and not quoted on NASDAQ or a successor quotation system, the mean between the
closing bid and asked prices for Common Shares, on the day previous to such date, as
determined in good faith by the Committee; or (iv) if Common Shares are not

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publicly traded, the fair market value established by the Committee acting in good
faith.

(m)      “Incentive Stock Option” means any Stock Option intended to be and designated
as, and that otherwise qualifies as, an “Incentive Stock Option” within the meaning
of Section 422 of the Code or any successor section thereto.

(n)      “Individual Agreement” means an employment or similar agreement between a
participant and the Company or one of its Subsidiaries or Affiliates.

(n)      “Non-Employee Director” has the meaning set forth in Section 16 of the Exchange
Act, or any successor definition adopted by the Securities and Exchange Commission
(the “Commission”).

(o)      “Non-Qualified Stock Option” means any Stock Option that is not an Incentive
Stock Option.

(p)      “Other Share-Based Awards” means an Award granted pursuant to Section 10 that is
valued, in whole or in part, by reference to, or is otherwise based on, Shares.

(q)      “Outside Director” has the meaning set forth in Section 162(m) of the Code and
the regulations promulgated thereunder.

(r)      “Plan” means the Stoneridge, Inc. Amended and Restated Long-Term Incentive Plan,
as amended from time to time.

(s)      “Potential Change in Control” has the meaning set forth in Section 11(c).

(t)      “Restricted Shares” means an Award of Shares that is granted pursuant to Section
6 and is subject to restrictions.

(u)      “Section 16 Participant” means a participant under the Plan who is then subject
to Section 16 of the Exchange Act.

(v)      “Shares” means the Common Shares, without par value, of the Company.

(w)      “Share Appreciation Right” means an Award of a right to receive an amount from
the Company that is granted pursuant to Section 9.

(x)      “Stock Option” or “Option” means any option to purchase Shares (including
Restricted Shares and Deferred Shares, if the Committee so determines) that is
granted pursuant to Section 5.

(y)      “Share Purchase Right” means an Award of the right to purchase Shares that is
granted pursuant to Section 8.

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(z)      “Subsidiary” means any corporation (other than the Company) in an unbroken chain
of corporations beginning with the Company if each of the corporations (other than
the last corporation in the unbroken chain) owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other corporations
in that chain. For purposes of Section 409A of the Code and the regulations
thereunder “at least 50%” is to be used instead of “at least 80%” in applying the
tests to determine whether a corporation is a service recipient.

SECTION 2.   Administration.

                          The Plan shall be administered by the Compensation Committee of the Board or such other
committee authorized by the Board to administer the Plan (the “Committee”), or absent the
Committee, the full Board. The Committee shall consist of not less than three directors of the
Company all of whom shall be Outside Directors, Non-Employee Directors and Independent Directors
(as defined by the listing standards of the NYSE if the Company’s Shares are traded on the New York
Stock Exchange). Those directors shall be appointed by the Board and shall serve as the Committee
at the pleasure of the Board.

                          The Committee shall have full power to interpret and administer the Plan and full authority to
select the individuals to whom Awards will be granted and to determine the type and amount of any
Awards to be granted to each participant, the consideration, if any, to be paid for any Awards, the
timing of any Awards, the terms and conditions of any Award granted under the Plan, and the terms
and conditions of the related agreements that will be entered into with participants. As to the
selection of and grant of Awards to participants who are not executive officers of the Company or
any Subsidiary or Affiliate or Section 16 Participants, the Committee may delegate its
responsibilities to members of the Company’s management in a manner consistent with applicable law
and provided that such participant’s compensation is not subject to the limitations of Section
162(m) of the Code.

                          The Committee shall have the authority to adopt, alter and repeal such rules, guidelines and
practices governing the Plan as it shall, from time to time, deem advisable; to interpret the terms
and provisions of the Plan and any Award issued under the Plan (and any agreements relating
thereto); to direct employees of the Company or other advisors to prepare such materials or perform
such analyses as the Committee deems necessary or appropriate; and otherwise to supervise the
administration of the Plan.

                          Any interpretation or administration of the Plan by the Committee, and all actions and
determinations of the Committee, shall be final, binding and conclusive on the Company, its
shareholders, Subsidiaries, Affiliates, all participants in the Plan, their respective legal
representatives, successors and assigns, and all persons claiming under or through any of them. No
member of the Board or of the Committee shall incur any liability for any action taken or omitted,
or any determination made, in good faith in connection with the Plan.

SECTION 3.    Shares Subject to the Plan.

(a)      Aggregate Shares Subject to the Plan. Subject to adjustment as provided in
Section 3(c), the total number of Shares reserved and available for Awards under

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the Plan is 1,500,000 (this is an additional 1,500,000 Shares to the 2,500,000
Shares included in the Company original equity incentive plan, as amended, that
expires on June 30, 2007), pursuant to which the maximum number of Shares which may
be issued subject to Incentive Stock Options is 500,000. Any Shares issued
hereunder may consist, in whole or in part, of authorized and unissued shares or
treasury shares.

(b)      Forfeiture or Termination of Awards of Shares. If any Shares subject to any
Award granted hereunder are forfeited or an Award otherwise terminates or expires
without the issuance of Shares, the Shares subject to that Award shall again be
available for distribution in connection with future Awards under the Plan as set
forth in Section 3(a), unless the participant who had been awarded those forfeited
Shares or the expired or terminated Award has theretofore received dividends or
other benefits of ownership with respect to those Shares. For purposes hereof, a
participant shall not be deemed to have received a benefit of ownership with respect
to those Shares by the exercise of voting rights or the accumulation of dividends
that are not realized because of the forfeiture of those Shares or the expiration or
termination of the related Award without issuance of those Shares.

(c)      Adjustment. In the event of any merger, reorganization, consolidation,
recapitalization, share dividend, share split, combination of shares or other change
in corporate structure of the Company affecting the Shares, such substitution or
adjustment shall be made in the aggregate number of Shares reserved for issuance
under the Plan, in the number and option price of Shares subject to outstanding
options granted under the Plan, in the number and purchase price of Shares subject
to outstanding Share Purchase Rights granted under the Plan, in the number of Share
Appreciation Rights granted under the Plan, in the number of underlying Shares
granted under the Plan will be based on, and in the number of Shares subject to
Restricted Share Awards, Deferred Share Awards and any other outstanding Awards
granted under the Plan as may be approved by the Committee, in its sole discretion;
but the number of Shares subject to any Award shall always be a whole number. Any
fractional Shares shall be eliminated.

(d)      Annual Award Limit. No participant may be granted Stock Options or other Awards
under the Plan with respect to an aggregate of more than 400,000 Shares (subject to
adjustment as provided in Section 3(c) hereof) during any calendar year.

SECTION 4.    Eligibility.

                          Grants may be made from time to time to those officers and other key employees of the Company
who are designated by the Committee in its sole and exclusive discretion. Eligible persons may
include, but shall not necessarily be limited to, officers and key employees of the Company and any
Subsidiary or Affiliate; however, Stock Options intended to qualify as Incentive Stock Options
shall be granted only to eligible persons while actually employed by

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the Company, a Subsidiary or an Affiliate. The Committee may grant more than one Award to the same
eligible person. No Award shall be granted to any eligible person during any period of time when
such eligible person is on a leave of absence.

SECTION 5.   Stock Options.

(a)      Grant. Stock Options may be granted alone, in addition to or in tandem with
other Awards granted under the Plan or cash awards made outside the Plan. The
Committee shall determine the individuals to whom, and the time or times at which,
grants of Stock Options will be made, the number of Shares purchasable under each
Stock Option, and the other terms and conditions of the Stock Option in addition to
those set forth in Sections 5(b) and 5(c). Any Stock Option granted under the Plan
shall be in such form as the Committee may from time to time approve.

           Stock Options granted under the Plan may be of two types which shall be
indicated on their face: (i) Incentive Stock Options and (ii) Non-Qualified Stock
Options. Subject to Section 5(c) hereof, the Committee shall have the authority to
grant to any participant Incentive Stock Options, Non-Qualified Stock Options or
both types of Stock Options.

(b)      Terms and Conditions. Options granted under the Plan shall be evidenced by an
agreement (“Option Agreements”), shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not inconsistent
with the terms of the Plan, as the Committee shall deem desirable:

           (1)      Option Price. The option price per share of Shares purchasable under a
Non-Qualified Stock Option or an Incentive Stock Option shall be determined by the
Committee at the time of grant and shall be not less than 100% of the Fair Market
Value of the Shares at the date of grant (or, with respect to an Incentive Stock
Option, 110% of the Fair Market Value of the Shares at the date of grant in the case
of a participant who at the date of grant owns Shares possessing more than 10% of
the total combined voting power of all classes of stock of the Company or its parent
or Subsidiary corporations (as determined under Sections 424(d), (e) and (f) of the
Code)).

          (2)      Option Term. The term of each Stock Option shall be determined by the
Committee and may not exceed ten years from the date the Option is granted (or, with
respect to an Incentive Stock Options, five years in the case of a participant who
at the date of grant owns Shares possessing more than 10% of the total combined
voting power of all classes of stock of the Company or its parent or Subsidiary
corporations (as determined under Sections 424(d), (e) and (f) of the Code)).

          (3)      Exercise. Stock Options shall be exercisable at such time or times and
shall be subject to such terms and conditions as shall be determined by the
Committee at or after grant; but, except as provided in Section 5(b)(6) and Section
11, unless otherwise determined by the Committee at or after grant, no

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Stock Option shall be exercisable prior to six months and one day following the date
of grant. If any Stock Option is exercisable only in installments or only after
specified exercise dates, the Committee may waive, in whole or in part, such
installment exercise provisions, and may accelerate any exercise date or dates, at
any time at or after grant based on such factors as the Committee shall determine,
in its sole discretion.

          (4)      Method of Exercise. Subject to any installment exercise provisions that
apply with respect to any Stock Option, and the six-month and one day holding period
set forth in Section 5(b)(3), a Stock Option may be exercised in whole or in part,
at any time during the Option period, by the holder thereof giving to the Company
written notice of exercise specifying the number of Shares to be purchased.

          That notice shall be accompanied by payment in full of the Option price of the
Shares for which the Option is exercised, in cash or Shares or by check or such
other instrument as the Committee may accept. The value of each such Share
surrendered or withheld shall be 100% of the Fair Market Value of the Shares on the
date the option is exercised.

           No Shares shall be issued on an exercise of an Option until full payment has
been made. A participant shall not have rights to dividends or any other rights of
a shareholder with respect to any Shares subject to an Option unless and until the
participant has given written notice of exercise, has paid in full for those Shares,
has given, if requested, the representation described in Section 15(a) and those
Shares have been issued to him.

          (5)      Non-Transferability of Options. No Stock Option shall be transferable by
any participant other than by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order (as defined in the Code or the
Employment Retirement Income Security Act of 1974, as amended) except that, if so
provided in the Option Agreement, the participant may transfer without consideration
the Option, other than an Incentive Stock Option, during the participant’s lifetime
to one or more members of the participant’s family, to one or more trusts for the
benefit of one or more of the participant’s family, or to a partnership or
partnerships of members of the participant’s family, or to a charitable organization
as defined in Section 501(c)(3) of the Code, provided that the transfer would not
result in the loss of any exemption under Rule 16b-3 of the Exchange Act with
respect to any Option. The transferee of an Option will be subject to all
restrictions, terms and conditions applicable to the Option prior to its transfer,
except that the Option will not be further transferable by the transferee other than
by will or by the laws of descent and distribution.

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(6)      Termination of Employment.

(i)      Termination by Death. Subject to Sections 5(b)(3) and 5(c), if any
participant’s employment with the Company or any Subsidiary or Affiliate
terminates by reason of death, any Stock Option held by that participant
shall become immediately and automatically vested and exercisable. If
termination of a participant’s employment is due to death, then any Stock
Option held by that participant may thereafter be exercised for a period of
two years (or with respect to an Incentive Stock Option, for a period of one
year) (or such other period as the Committee may specify at grant) from the
date of death. Notwithstanding the foregoing, in no event will any Stock
Option be exercisable after the expiration of the option period of such
Option. The balance of the Stock Option shall be forfeited if not exercised
within two years (or one year with respect to Incentive Stock Options).

(ii)      Termination by Reason of Disability. Subject to Sections 5(b)(3) and
5(c), if a participant’s employment with the Company or any Subsidiary or
Affiliate terminates by reason of Disability, any Stock Option held by that
participant shall become immediately and automatically vested and
exercisable. If termination of a participant’s employment is due to
Disability, then any Stock Option held by that participant may thereafter be
exercised by the participant or by the participant’s duly authorized legal
representative if the participant is unable to exercise the Option as a
result of the participant’s Disability, for a period of two years (or with
respect to an Incentive Stock Option, for a period of one year) (or such
other period as the Committee may specify at grant) from the date of such
termination of employment; and if the participant dies within that two-year
period (or such other period as the Committee may specify at or after
grant), any unexercised Stock Option held by that participant shall
thereafter be exercisable by the estate of the participant (acting through
its fiduciary) for the duration of the two-year period from the date of that
termination of employment. Notwithstanding the foregoing, in no event will
any Stock Option be exercisable after the expiration of the option period of
such Option. The balance of the Stock Option shall be forfeited if not
exercised within two years (or one year with respect to Incentive Stock
Options).

(iii)      Termination for Cause. Unless otherwise determined by the Committee
at or after the time of granting any Stock Option, if a participant’s
employment with the Company or any Subsidiary or Affiliate terminates for
Cause, any unvested Stock Options will be forfeited and terminated
immediately upon termination and any vested Stock Options held by that
participant shall terminate 30 days after the date employment terminates.
Notwithstanding the foregoing, in no event

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will any Stock Option be exercisable after the expiration of the option
period of such Option. The balance of the Stock Option shall be forfeited.

(iv)      Other Termination. Unless otherwise determined by the Committee at or
after the time of granting any Stock Option, if a participant’s employment
with the Company or any Subsidiary or Affiliate terminates for any reason
other than death, Disability or for Cause, all Stock Options held by that
participant shall thereupon terminate three months after the date employment
terminates. Notwithstanding the foregoing, in no event will any Stock
Option be exercisable after the expiration of the option period of such
Option. The balance of the Stock Option shall be forfeited.

(v)      Leave of Absence. In the event a participant is granted a leave of
absence by the Company or any Subsidiary or Affiliate to enter military
service or because of sickness, the participant’s employment with the
Company or such Subsidiary or Affiliate will not be considered terminated,
and the participant shall be deemed an employee of the Company or such
Subsidiary or Affiliate during such leave of absence or any extension
thereof granted by the Company or such Subsidiary or Affiliate.
Notwithstanding the foregoing, in the case of an Incentive Stock Option, a
leave of absence of more than three months will be viewed as a termination
of employment unless continued employment is guaranteed by contract or
statute.

(c)      Incentive Stock Options. Notwithstanding Sections 5(b)(5) and (6), an Incentive
Stock Option shall be exercisable by (i) a participant’s authorized legal
representative (if the participant is unable to exercise the Incentive Stock Option
as a result of the participant’s Disability) only if, and to the extent, permitted
by Section 422 of the Code and (ii) by the participant’s estate, in the case of
death, or authorized legal representative, in the case of Disability, no later than
ten years from the date the Incentive Stock Option was granted (in addition to any
other restrictions or limitations that may apply). Anything in the Plan to the
contrary notwithstanding, no term or provision of the Plan relating to Incentive
Stock Options shall be interpreted, amended or altered, nor shall any discretion or
authority granted under the Plan be exercised, so as to disqualify the Plan under
Section 422 of the Code, or, without the consent of the participants affected, to
disqualify any Incentive Stock Option under such Section 422 or any successor
section thereto.

(d)      Buyout Provisions. The Committee may at any time buy out for a payment in
cash, Shares, Deferred Shares or Restricted Shares an Option previously granted,
based on such terms and conditions as the Committee shall establish and agree upon
with the participant, but no such transaction involving a Section 16 Participant
shall be structured or effected in a manner that would

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result in any liability on the part of the participant under, Section 16(b) of the
Exchange Act or the rules and regulations promulgated thereunder.

SECTION 6.  Restricted Shares.

(a)      Grant. Restricted Shares may be issued alone, in addition to or in tandem with
other Awards under the Plan or cash awards made outside the Plan. The Committee
shall determine the individuals to whom, and the time or times at which, grants of
Restricted Shares will be made, the number of Restricted Shares to be awarded to
each participant, the price (if any) to be paid by the participant (subject to
Section 6(b)), the date or dates upon which Restricted Share Awards will vest and
the period or periods within which those Restricted Share Awards may be subject to
forfeiture, and the other terms and conditions of those Awards in addition to those
set forth in Section 6(b).

The Committee may condition the grant of Restricted Shares upon the attainment of
specified performance goals or such other factors as the Committee may determine in
its sole discretion.

(b)      Terms and Conditions. Restricted Shares awarded under the Plan shall be subject
to the following terms and conditions and such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall deem desirable.
A participant who receives a Restricted Share Award shall not have any rights with
respect to that Award, unless and until the participant has executed an agreement
evidencing the Award in the form approved from time to time by the Committee and has
delivered a fully executed copy thereof to the Company, and has otherwise complied
with the applicable terms and conditions of that Award.

          (1)      The purchase price (if any) for Restricted Shares shall be determined by
the Committee at the time of grant.

          (2)      Awards of Restricted Shares must be accepted by executing a Restricted
Share Award agreement and paying the price (if any) that is required under Section
6(b)(1).

          (3)      Each participant receiving a Restricted Share Award shall be issued a stock
certificate in respect of those Restricted Shares. The certificate shall be
registered in the name of the participant and shall bear an appropriate legend
referring to the terms, conditions and restrictions applicable to the Award.

          (4)      The Committee shall require that the stock certificates evidencing such
Restricted Shares be held in custody by the Company until the restrictions thereon
shall have lapsed, and that, as a condition of any Restricted Shares Award the
participant shall have delivered to the Company a stock power, endorsed in blank,
relating to the Shares covered by that Award.

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           (5)      Subject to the provisions of this Plan and the Restricted Share Award
agreement, during a period set by the Committee commencing with the date of any
Award (the “Restriction Period”), the participant shall not be permitted to sell,
transfer, pledge, assign or otherwise encumber the Restricted Shares covered by that
Award. The Restriction Period shall not be less then six months and one day in
duration (“Minimum Restriction Period”) unless otherwise determined by the Committee
at the time of grant. Subject to these limitations and the Minimum Restriction
Period requirements, the Committee, in its sole discretion, may provide for the
lapse of such restrictions in installments and may accelerate or waive such
restrictions, in whole or in part, based on service, performance or such other
factors and criteria as the Committee may determine, in its sole discretion.

          (6)      Except as provided in this Section 6(b)(6), Section 6(b)(5) and Section
6(b)(7) the participant shall have, with respect to the Restricted Shares awarded,
all of the rights of a shareholder of the Company, including the right to vote the
Shares, and the right to receive any dividends. The Committee, in its sole
discretion, as determined at the time of an Award, may permit or require the payment
of cash dividends to be deferred and subject to forfeiture and, if the Committee so
determines, reinvested, subject to Section 15(f), in additional Restricted Shares to
the extent Shares are available under Section 3, or otherwise reinvested. Unless
the Committee or Board determines otherwise, Share dividends issued with respect to
Restricted Shares shall be treated as additional Restricted Shares that are subject
to the same restrictions and other terms and conditions that apply to the Shares
with respect to which such dividends are issued.

           (7)      No Restricted Shares shall be transferable by a participant other than by
will or by the laws of descent and distribution or pursuant to a qualified domestic
relations order (as defined in the Code or the Employment Retirement Income Security
Act of 1974, as amended) except that, if so provided in the Restricted Shares
Agreement, the participant may transfer without consideration the Restricted Shares
during the participant’s lifetime to one or more members of the participant’s
family, to one or more trusts for the benefit of one or more of the participant’s
family, to a partnership or partnerships of members of the participant’s family, or
to a charitable organization as defined in Section 501(c)(3) of the Code, provided
that the transfer would not result in the loss of any exemption under Rule 16b-3 of
the Exchange Act with respect to any Restricted Shares. The transferee of
Restricted Shares will be subject to all restrictions, terms and conditions
applicable to the Restricted Shares prior to its transfer, except that the
Restricted Shares will not be further transferable by the transferee other than by
will or by the laws of descent and distribution.

           (8)      Unless otherwise determined by the Committee at or after the time of
granting any Restricted Shares, if a participant’s employment with the Company or
any Subsidiary or Affiliate terminates by reason of death, any

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Restricted Shares held by such participant shall thereupon vest and all restrictions
thereon shall lapse.

          (9)      Unless otherwise determined by the Committee at or after the time of
granting any Restricted Shares, if a participant’s employment with the Company or
any Subsidiary or Affiliate terminates by reason of Disability, any Restricted
Shares held by such participant shall thereupon vest and all restrictions thereon
shall lapse.

          (10)      Unless otherwise determined by the Committee at or after the time of
granting any Restricted Shares, if a participant’s employment with the Company or
any Subsidiary or Affiliate terminates for any reason other than death or
Disability, the Restricted Shares held by that participant that are unvested or
subject to restriction at the time of termination shall thereupon be forfeited.

SECTION 7.   Deferred Shares.

(a)      Grant. Deferred Shares may be awarded alone, in addition to or in tandem with
other Awards granted under the Plan or cash awards made outside the Plan. The
Committee shall determine the individuals to whom, and the time or times at which,
Deferred Shares shall be awarded, the number of Deferred Shares to be awarded to any
participant, the duration of the period (the “Deferral Period”) during which, and
the conditions under which, receipt of the Shares will be deferred, and the other
terms and conditions of the Award in addition to those set forth in Section 7(b).

           The Committee may condition the grant of Deferred Shares upon the attainment of
specified performance goals or such other factors as the Committee shall determine,
in its sole discretion.

(b)      Terms and Conditions. Deferred Share Awards shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:

          (1)      The purchase price for Deferred Shares shall be determined at the time of
grant by the Committee. Subject to the provisions of the Plan and the Award
agreement referred to in Section 7(b)(8), Deferred Share Awards may not be sold,
assigned, transferred, pledged or otherwise encumbered during the Deferral Period.
At the expiration of the Deferral Period (or the Elective Deferral Period referred
to in Section 7(b)(8), when applicable), stock certificates shall be delivered to
the participant, or his legal representative, for the Shares covered by the Deferred
Share Award. The Deferral period applicable to any Deferred Share Award shall not
be less than six months and one day (“Minimum Deferral Period”).

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          (2)      Unless otherwise determined by the Committee at the time of grant, amounts
equal to any dividends declared during the Deferral Period with respect to the
number of Shares covered by a Deferred Share Award will be paid to the participant
currently, or deferred and deemed to be reinvested in additional Deferred Shares, or
otherwise reinvested, all as determined by the Committee, in its sole discretion, at
or after the time of the Award.

           (3)      No Deferred Shares shall be transferable by a participant other than by
will or by the laws of descent and distribution or pursuant to a qualified domestic
relations order (as defined in the Code or the Employment Retirement Income Security
Act of 1974, as amended) except that, if so provided in the Deferred Shares
Agreement, the participant may transfer without consideration the Deferred Shares
during the participant’s lifetime to one or more members of the participant’s
family, to one or more trusts for the benefit of one or more of the participant’s
family, to a partnership or partnerships of members of the participant’s family, or
to a charitable organization as defined in Section 501(c)(3) of the Code, provided
that the transfer would not result in the loss of any exemption under Rule 16b-3 of
the Exchange Act with respect to any Deferred Shares. The transferee of Deferred
Shares will be subject to all restrictions, terms and conditions applicable to the
Deferred Shares prior to its transfer, except that the Deferred Shares will not be
further transferable by the transferee other than by will or by the laws of descent
and distribution.

           (4)      Unless otherwise determined by the Committee at or after the time of
granting any Deferred Shares, if a participant’s employment by the Company or any
Subsidiary or Affiliate terminates by reason of death, any Deferred Shares held by
that participant shall thereafter vest and any restrictions shall lapse.

          (5)      Unless otherwise determined by the Committee at or after the time of
granting any Deferred Shares, if a participant’s employment by the Company or any
Subsidiary or Affiliate terminates by reason of Disability, any Deferred Shares held
by that participant shall thereafter vest and any restrictions shall lapse.

          (6)      Unless otherwise determined by the Committee at or after the time of
granting any Deferred Share Award, if a participant’s employment by the Company or
any Subsidiary or Affiliate terminates for any reason other than death or
Disability, all Deferred Shares held by such participant which are unvested or
subject to restriction shall thereupon be forfeited.

           (7)      A participant may elect to further defer receipt of a Deferred Share Award
(or an installment of an Award) for a specified period or until a specified event
(the “Elective Deferral Period”), subject in each case to the Committee’s approval
and the terms of this Section 7 and such other terms as are determined by the
Committee, all in its sole discretion. Subject to any exceptions approved

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by the Committee, such election may be made only if and to the extent permitted and
in accordance with Section 409A of the Code.

          (8)      Each such Award shall be confirmed by, and subject to the terms of, a
Deferred Share Award agreement evidencing the Award in the form approved from time
to time by the Committee.

SECTION 8.    Share Purchase Rights.

(a)      Grant. Share Purchase Rights may be granted alone, in addition to or in tandem
with other Awards granted under the Plan or cash awards made outside the Plan. The
Committee shall determine the individuals to whom, and the time or times at which,
grants of Share Purchase Rights will be made, the number of Shares which may be
purchased pursuant to the Share Purchase Rights, and the other terms and conditions
of the Share Purchase Rights in addition to those set forth in Section 8(b). The
Shares subject to the Share Purchase Rights must be purchased at the Fair Market
Value of such Shares on the date of grant. Subject to Section 8(b) hereof, the
Committee may also impose such deferral, forfeiture or other terms and conditions as
it shall determine, in its sole discretion, on such Share Purchase Rights or the
exercise thereof.

           Each Share Purchase Right Award shall be confirmed by, and be subject to the
terms of, a Share Purchase Rights Agreement which shall be in form approved by the
Committee.

(b)      Terms and Conditions. Share Purchase Rights may contain such additional terms
and conditions not inconsistent with the terms of the Plan as the Committee shall
deem desirable and shall generally be exercisable for such period as shall be
determined by the Committee. However, Share Purchase Rights granted to Section 16
Participants shall not become exercisable earlier than six months and one day after
the grant date. Share Purchase Rights shall not be transferable by a participant
other than by will or by the laws of descent and distribution.

SECTION 9.    Share Appreciation Rights.

(a)      Grant. Share Appreciation Rights may be granted in connection with all or any
part of an Option. Share Appreciation Rights may be exercised in whole or in part
at such times under such conditions as may be specified by the Committee in the
participant’s Option Agreement.

(b)      Terms and Conditions. The following terms and conditions will apply to all
Share Appreciation Rights that are granted in connection with Options:

           (1)      Rights. Share Appreciation Rights shall entitle the participant, upon
exercise of all or any part of the Share Appreciation Rights, to surrender to the
Company unexercised, that portion of the underlying Option relating to the same
number of Shares as is covered by the Share Appreciation Rights (or the

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portion of the Share Appreciation Rights so exercised) and to receive in exchange
from the Company an amount equal to the excess of (x) the Fair Market Value, on the
date of exercise, of the Shares covered by the surrendered portion of the underlying
Option over (y) the exercise price of the Shares covered by the surrendered portion
of the underlying Option. The Committee may limit the amount that the participant
will be entitled to receive upon exercise of the Share Appreciation Right.

          (2)      Surrender of Option. Upon the exercise of the Share Appreciation Right and
surrender of the related portion of the underlying Option, the Option, to the extent
surrendered, will not thereafter be exercisable. The underlying Option may provide
that such Share Appreciation Rights will be payable solely in cash. The terms of
the underlying Option shall provide a method by which an alternative fair market
value of the Shares on the date of exercise shall be calculated based on one of the
following: (x) the closing price of the Shares on the national exchange on which
they are then traded on the business day immediately preceding the day of exercise;
(y) the highest closing price of the Shares on the national exchange on which they
have been traded, during the 90 days immediately preceding the Change in Control; or
(z) the greater of (x) and (y).

          (3)      Exercise. In addition to any further conditions upon exercise that may be
imposed by the Committee, the Share Appreciation Rights shall be exercisable only to
the extent that the related Option is exercisable, except that in no event will a
Share Appreciation Right held by a Section 16 Participant be exercisable within the
first six months after it is awarded even though the related Option is or becomes
exercisable, and each Share Appreciation Right will expire no later than the date on
which the related Option expires. A Share Appreciation Right may be exercised only
at a time when the Fair Market Value of the Shares covered by the Share Appreciation
Right exceeds the exercise price of the Shares covered by the underlying Option.

          (4)      Method of Exercise. Share Appreciation Rights may be exercised by the
participant’s giving written notice of the exercise to the Company, stating the
number of Share Appreciation Rights the participant has elected to exercise and
surrendering the portion of the underlying Option relating to the same number of
Shares as the number of Share Appreciation Rights elected to be exercised.

          (5)      Payment. The manner in which the Company’s obligation arising upon the
exercise of the Share Appreciation Right will be paid will be determined by the
Committee and shall be set forth in the participant’s Option Agreement. The
Committee may provide for payment in Shares or cash, or a fixed combination of
Shares or cash, or the Committee may reserve the right to determine the manner of
payment at the time the Share Appreciation Right is exercised. Shares issued upon
the exercise of a Share Appreciation Right will be valued at their Fair Market Value
on the date of exercise.

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SECTION 10.    Other Share-Based Awards.

(a)      Grant. Other Awards of Shares and other Awards that are valued, in whole or in
part, by reference to, or are otherwise based on, Shares, including, without
limitation, performance shares, convertible preferred shares, convertible
debentures, exchangeable securities, and Share Awards or options valued by reference
to Book Value or subsidiary performance, may be granted alone, in addition to or in
tandem with other Awards granted under the Plan or cash awards made outside of the
Plan.

           At the time the Shares or Other Share-Based Awards are granted, the Committee
shall determine the individuals to whom and the time or times at which such Shares
or Other Share-Based Awards shall be awarded, the number of Shares to be used in
computing an Award or which are to be awarded pursuant to such Awards, the
consideration, if any, to be paid for such Shares or Other Share-Based Awards, and
all other terms and conditions of the Awards in addition to those set forth in
Section 10(b). The Committee will also have the right, at its sole discretion, to
settle such Awards in Shares, Restricted Shares or cash in an amount equal to then
value of the Shares or Other Share-Based Awards.

          The provisions of Other Share-Based Awards need not be the same with respect to
each participant.

(b)      Terms and Conditions. Other Share-Based Awards shall be subject to the
following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Committee shall deem
desirable.

           (1)      Subject to the provisions of this Plan and the Award agreement referred to
in Section 10(b)(5) below, Shares awarded or subject to Awards made under this
Section 10 may not be sold, assigned, transferred, pledged or otherwise encumbered
prior to the date on which the Shares are issued, or, if later, the date on which
any applicable restriction, performance, holding or deferral period or requirement
is satisfied or lapses. All Shares or Other Share-Based Awards granted under this
Section 10 shall be subject to a minimum holding period (including any applicable
restriction, performance and/or deferral periods ) of six months and one day
(“Minimum Holding Period”).

           (2)      Subject to the provisions of this Plan and the Award agreement and unless
otherwise determined by the Committee at the time of grant, the recipient of an
Other Share-Based Award shall be entitled to receive, currently, interest or
dividends with respect to the number of Shares covered by the Award, as determined
at the time of the Award by the Committee, in its sole discretion, and the Committee
may provide that such amounts (if any) shall be deemed to have been reinvested in
additional Shares or otherwise reinvested.

-16-

 

          (3)      Subject to the Minimum Holding Period, any Other Share-Based Award and any
Shares covered by any such Award shall vest or be forfeited to the extent, at the
times and subject to the conditions, if any, provided in the Award agreement, as
determined by the Committee, in its sole discretion.

          (4)      In the event of the participant’s Disability or death, or in cases of
special circumstances, the Committee may, in its sole discretion, waive, in whole or
in part, any or all of the remaining limitations imposed hereunder or under any
related Award agreement (if any) with respect to any part or all of any Award under
this Section 10, provided that the Minimum Holding Period requirement may not be
waived, except in case of a participant’s death.

           (5)      Each Award shall be confirmed by, and subject to the terms of, an agreement
or other instrument evidencing the Award in the form approved from time to time by
the Committee, the Company and the participant.

          (6)      Shares (including securities convertible into Shares) issued on a bonus
basis under this Section 10 shall be issued for no cash consideration. Shares
(including securities convertible into Shares) purchased pursuant to a purchase
right awarded under this Section 10 shall bear a price of at the Fair Market Value
of the Shares on the date of grant. The purchase price of such Shares, and of any
Other Share-Based Award granted hereunder, or the formula by which such price is to
be determined, shall be fixed by the Committee at the time of grant.

          (7)      In the event that any “derivative security, ” as defined in Rule 16a-1(c)
(or any successor thereof) promulgated by the Securities and Exchange Commission
under Section 16 of the Exchange Act, is awarded pursuant to this Section 10 to any
Section 16 Participant, such derivative security shall not be transferable other
than by will or by the laws of descent and distribution.

SECTION 11.   Change In Control Provision.

(a)      Impact of Event. Notwithstanding any other provisions hereof or in any agreement to the
contrary, in the event of: (i) a “Change in Control” as defined in Section 11(b) or (ii) a
“Potential Change in Control” as defined in Section 11(c), the following acceleration and
valuation provisions shall apply:

          (1)      Any Stock Options awarded under the Plan not previously exercisable and vested
shall become fully exercisable and vested;

          (2)      Any Share Appreciation Rights shall become immediately exercisable;

          (3)      The restrictions applicable to any Restricted Shares Awards, Deferred
Shares, Share Purchase Rights and Other Share-Based Awards shall lapse and such
Shares and Awards shall be deemed fully vested; and

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           (4)      The value of all outstanding Awards, in each case to the extent vested,
shall, unless otherwise determined by the Committee in its sole discretion at or
after grant but prior to any Change in Control or Potential Change in Control, be
cashed out on the basis of the “Change in Control Price” as defined in Section 11(d)
as of the date of such Change in Control or such Potential Change in Control is
determined to have occurred;

(b)      Definition of Change in Control. For purposes of Section 11(a), a “Change in
Control” means the occurrence of any of the following: (i) the Board or
shareholders of the Company approve a consolidation or merger that results in the
shareholders of the Company immediately prior to the transaction giving rise to the
consolidation or merger owning less than 50% of the total combined voting power of
all classes of stock entitled to vote of the surviving entity immediately after the
consummation of the transaction giving rise to the merger or consolidation; (ii) the
Board or shareholders of the Company approve the sale of substantially all of the
assets of the Company or the liquidation or dissolution of the Company; (iii) any
person or other entity (other than the Company or a Subsidiary or any Company
employee benefit plan (including any trustee of any such plan acting in its capacity
as trustee)) purchases any Shares (or securities convertible into Shares) pursuant
to a tender or exchange offer without the prior consent of the Board of Directors,
or becomes the beneficial owner of securities of the Company representing 25% or
more of the voting power of the Company’s outstanding securities; or (iv) during any
two-year period, individuals who at the beginning of such period constitute the
entire Board of Directors cease to constitute a majority of the Board of Directors,
unless the election or the nomination for election of each new director is approved
by at least two-thirds of the directors then still in office who were directors at
the beginning of that period.

(c)      Definition of Potential Change in Control. For purposes of Section 11(a), a
“Potential Change in Control” means the happening of any one of the following:

           (1)      The approval by the shareholders of the Company of an agreement by the
Company, the consummation of which would result in a Change in Control of the
Company as defined in Section 11(b); or

           (2)      The acquisition of beneficial ownership, directly or indirectly, by any
entity, person or group (other than the Company or a Subsidiary or any Company
employee benefit plan (including any trustee of any such plan acting in its capacity
as trustee)) of securities of the Company representing 15% or more of the combined
voting power of the Company’s outstanding securities and the adoption by the Board
of a resolution to the effect that a Potential Change in Control of the Company has
occurred for purposes of this Plan.

(d)      Change in Control Price. For purposes of this Section 11, “Change in Control
Price,” means the highest price per share paid in any transaction reported on the
New York Stock Exchange Composite Index (or, if the Shares are

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not then traded on the New York Stock Exchange, the highest price paid as reported
for any national exchange on which the Shares are then traded) or paid or offered in
any bona fide transaction related to a Change in Control or Potential Change in
Control of the Company, at any time during the 60-day period immediately preceding
the occurrence of the Change in Control (or, when applicable, the occurrence of the
Potential Change in Control event).

SECTION 12.   Form and Timing of Payment Under Awards; Deferrals.

          Subject to the terms of the Plan and any applicable Award Agreement (as may be amended
pursuant to Section 13 hereof), payments to be made by the Company, a Subsidiary or Affiliate upon
the exercise of an Option or other Award or settlement of an Award may be made in such forms as the
Committee shall determine, including, without limitation, cash, Shares, other Awards or other
property, and may be made in a single payment or transfer or in installments; provided, however,
that settlement in other than Shares must be authorized by the applicable Award Agreement. The
settlement of any Award may be accelerated and cash paid in lieu of Shares in connection with such
settlement; provided, however, that settlement in cash must be authorized by the applicable Award
Agreement. The acceleration of any Award that does not result in a cash settlement must also be
authorized by the applicable Award Agreement. If and to the extent permitted by and in accordance
with Section 409A of the Code and the regulations thereunder, installment or deferred payments may
be required by the Committee or permitted at the election of the participant on terms and
conditions approved by the Committee, including without limitation the ability to defer awards
pursuant to any deferred compensation plan maintained by the Company, a Subsidiary or Affiliate.
Payments may include, without limitation, provisions for the payment or crediting of a reasonable
interest rate on installment or deferred payments or other amounts in respect of installment or
deferred payments denominated in Shares.

SECTION 13.   Amendments and Termination.

                           The Board may at any time, in its sole discretion, amend, alter or discontinue the Plan, but
no such amendment, alteration or discontinuation shall be made that would (i) impair the rights of
a participant under an Award theretofore granted, without the participant’s consent, or (ii)
require shareholder approval under any applicable law, rule, regulation or listing standard of an
exchange or market on which the Shares are listed and/or traded, unless such shareholder approval
is received. The Company shall submit to the shareholders of the Company for their approval any
amendments to the Plan which are required by Section 16 of the Exchange Act or the rules and
regulations thereunder, or Section 162(m) of the Code, or the listing standards of an exchange or
market on which the Shares are listed and/or traded to be approved by the shareholders.

                           The Committee may at any time, in its sole discretion, amend the terms of any Award, but no
such amendment shall be made that would impair the rights of a participant under an Award
theretofore granted, without the participant’s consent; nor shall any such amendment be made which
would make the applicable exemptions provided by Rule 16b-3 under the Exchange Act unavailable to
any Section 16 Participant holding the Award without the participant’s consent.

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                           Subject to the above provisions, the Board shall have all necessary authority to amend the
Plan to clarify any provision or to take into account changes in applicable securities and tax laws
and accounting rules, as well as other developments.

SECTION 14.    Unfunded Status of Plan.

                           The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments not yet made to a participant by the Company, nothing contained
herein shall give that participant any rights that are greater than those of a general creditor of
the Company.

SECTION 15.    General Provisions.

(a)      The Committee may require each participant acquiring Shares pursuant to an Award
under the Plan to represent to and agree with the Company in writing that the
participant is acquiring the Shares without a view to distribution thereof. The
certificates for any such Shares may include any legend which the Committee deems
appropriate to reflect any restrictions on transfer.

           All Shares or other securities delivered under the Plan shall be subject to
such stop-transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Shares are then listed, and any
applicable federal or state securities laws, and the Committee may cause a legend or
legends to be put on any certificates for those Shares to make appropriate reference
to such restrictions.

(b)      Nothing contained in this Plan shall prevent the Board from adopting other or
additional compensation arrangements, subject to shareholder approval if such
approval is required, and such arrangements may be either generally applicable or
applicable only in specific cases.

(c)      Neither the adoption of the Plan, nor its operation, nor any document
describing, implementing or referring to the Plan, or any part thereof, shall confer
upon any participant under the Plan any right to continue in the employ, or as a
director, of the Company or any Subsidiary or Affiliate, or shall in any way affect
the right and power of the Company or any Subsidiary or Affiliate to terminate the
employment, or service as a director, of any participant under the Plan at any time
with or without assigning a reason therefor, to the same extent as the Company or
any Subsidiary or Affiliate might have done if the Plan had not been adopted.

(d)      For purposes of this Plan, a transfer of a participant between the Company and
its Subsidiaries and Affiliates shall not be deemed a termination of employment.

(e)      No later than the date as of which an amount first becomes includable in the
gross income of the participant for federal income tax purposes with respect

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to any award under the Plan, the participant shall pay to the Company, or make
arrangements satisfactory to the Committee regarding the payment of, any federal,
state or local taxes or other items of any kind required by law to be withheld with
respect to that amount. Subject to the following sentence, unless otherwise
determined by the Committee, withholding obligations may be settled with Shares,
including unrestricted Shares previously owned by the participant or Shares that are
part of the Award that gives rise to the withholding requirement. Notwithstanding
the foregoing, any right by a Section 16 Participant to elect to settle any tax
withholding obligation with Shares that are part of an Award must be set forth in
the agreement evidencing the Award or be approved by the Committee, in its sole
discretion. The obligations of the Company under the Plan shall be conditional on
those payments or arrangements and the Company and its Subsidiaries and Affiliates
shall, to the extent permitted by law, have the right to deduct any such taxes from
any payment of any kind otherwise payable to the participant. Shares withheld by,
or otherwise remitted to, the Company to satisfy a participant’s tax withholding
obligations upon the lapse of restrictions on Restricted Shares or the exercise of
Options or Share Appreciation Rights granted under the Plan or upon any other
payment or issuance of shares under the Plan will not be available for the use of
new awards under the Plan.

(f)      The actual or deemed reinvestment of dividends in additional Restricted Shares
(or in Deferred Shares or other types of Awards) at the time of any dividend payment
shall be permissible only if sufficient Shares are available under Section 3 for
such reinvestment (taking into account then outstanding Stock Options, Share
Purchase Rights and other Plan Awards).

(g)      The Plan, all Awards made and actions taken thereunder and any agreements
relating thereto shall be governed by and construed in accordance with the laws of
the State of Ohio.

(h)      All agreements entered into with participants pursuant to the Plan shall be
subject to the Plan.

(i)      The provisions of Awards need not be the same with respect to each participant.

(j)      The Plan is intended, and shall be interpreted, to comply with Section 409A of
the Code. Anything in this Plan to the contrary notwithstanding, if it is
determined that any payment to be made to a “specified employee”, as defined in
Section 409A of the Code, is considered “nonqualified deferred compensation” subject
to Section 409A of the Code, then such payment if made upon a “separation of
service”, as defined in Section 409A of the Code, shall be delayed for six months
following the specified employee’s separation of service.

SECTION 16.   Shareholder Approval; Effective Date of Plan.

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                           The Company’s Long-Term Incentive Plan (the “Original Plan”), which authorized the issuance of
1,000,000 common shares, was adopted by the Board on August 5, 1997 and by the shareholders on
September 30, 1997. On May 7, 2001, the shareholders approved an amendment to the Original Plan
to authorize an additional 1,500,000 common shares for issuance under the Original Plan. No awards
may be made pursuant to the Original Plan after June 30, 2007.

                           This Amended and Restated Long-Term Incentive Plan was adopted by the Board of Directors on
February 18, 2006, and this Amended and Restated Long-Term Incentive Plan is subject to the
approval by the holders of the Company’s outstanding Shares, in accordance with applicable law and
the listing standards of the New York Stock Exchange. This Amended and Restated Long-Term
Incentive Plan will become effective on the date of such shareholder approval.

SECTION 17.   Term of Plan.

                           No Award shall be granted pursuant to the Plan on or after April 24, 2016, but Awards granted
prior to such date may extend beyond that date.

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