Document:

exv10w4

 

Exhibit 10.4

Quest Resource Corporation

2005 Omnibus Stock Award Plan

(As Amended and Restated)

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	Article 1. Establishment, Objectives, Duration and Effect of Shareholder Approval
	 	 	1	 
	 
	 	 	 	 
	1.1. Establishment of the Plan
	 	 	1	 
	1.2. Objectives of the Plan
	 	 	1	 
	1.3. Duration of the Plan
	 	 	1	 
	1.4. Shareholder Approval and Effect Thereof
	 	 	1	 
	 
	 	 	 	 
	Article 2. Definitions
	 	 	1	 
	 
	 	 	 	 
	Article 3. Administration
	 	 	7	 
	 
	 	 	 	 
	3.1. Board and Committee
	 	 	7	 
	3.2. Powers of the Board
	 	 	8	 
	 
	 	 	 	 
	Article 4. Shares Subject to the Plan
	 	 	9	 
	 
	 	 	 	 
	4.1. Number of Shares Available
	 	 	9	 
	4.2. Adjustments in Authorized Shares
	 	 	10	 
	4.3. Available Shares
	 	 	10	 
	 
	 	 	 	 
	Article 5. Eligibility and General Conditions of Awards
	 	 	10	 
	 
	 	 	 	 
	5.1. Eligibility
	 	 	10	 
	5.2. Grant Date
	 	 	10	 
	5.3. Maximum Term
	 	 	10	 
	5.4. Award Agreement
	 	 	11	 
	5.5. Restrictions on Share Transferability
	 	 	11	 
	5.6. Termination of Affiliation
	 	 	11	 
	5.7. Nontransferability of Awards
	 	 	14	 
	 
	 	 	 	 
	Article 6. Stock Options
	 	 	14	 
	 
	 	 	 	 
	6.1. Grant of Options
	 	 	14	 
	6.2. Award Agreement
	 	 	14	 
	6.3. Option Price
	 	 	15	 
	6.4. Grant of Incentive Stock Options
	 	 	15	 
	6.5. Exercise of Options
	 	 	17	 
	 
	 	 	 	 
	Article 7. Stock Appreciation Rights
	 	 	18	 
	 
	 	 	 	 
	7.1. Grant of SARs
	 	 	18	 
	7.2. SAR Award Agreement
	 	 	18	 
	7.3. Exercise of SARs
	 	 	18	 
	7.4. Expiration of SARs
	 	 	18	 
	7.5. Payment of SAR Amount
	 	 	18	 

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	 	 	Page
	Article 8. Restricted Shares
	 	 	19	 
	 
	 	 	 	 
	8.1. Grant of Restricted Shares
	 	 	19	 
	8.2. Award Agreement
	 	 	19	 
	8.3. Consideration
	 	 	19	 
	8.4. Effect of Forfeiture
	 	 	19	 
	8.5. Escrow; Legends
	 	 	19	 
	 
	 	 	 	 
	Article 9. Performance Units and Performance Shares
	 	 	19	 
	 
	 	 	 	 
	9.1. Grant of Performance Units and Performance Shares
	 	 	19	 
	9.2. Value/Performance Goals
	 	 	20	 
	9.3. Payment of Performance Units and Performance Shares
	 	 	20	 
	9.4. Form and Timing of Payment of Performance Units and Performance Shares
	 	 	20	 
	 
	 	 	 	 
	Article 10. Bonus Shares and Deferred Shares
	 	 	21	 
	 
	 	 	 	 
	10.1. Bonus Shares
	 	 	21	 
	10.2. Deferred Shares
	 	 	21	 
	 
	 	 	 	 
	Article 11. Beneficiary Designation
	 	 	21	 
	 
	 	 	 	 
	Article 12. Rights of Employees
	 	 	21	 
	 
	 	 	 	 
	12.1. Employment
	 	 	21	 
	12.2. Participation
	 	 	21	 
	 
	 	 	 	 
	Article 13. Amendment, Modification, and Termination
	 	 	21	 
	 
	 	 	 	 
	13.1. Amendment, Modification, and Termination
	 	 	21	 
	13.2. Adjustments Upon Certain Unusual or Nonrecurring Events
	 	 	22	 
	13.3. Awards Previously Granted
	 	 	22	 
	 
	 	 	 	 
	Article 14. Withholding
	 	 	22	 
	 
	 	 	 	 
	14.1. Mandatory Tax Withholding
	 	 	22	 
	14.2. Notification under Code Section 83(b)
	 	 	22	 
	 
	 	 	 	 
	Article 15. Additional Provisions
	 	 	23	 
	 
	 	 	 	 
	15.1. Successors
	 	 	23	 
	15.2. Gender and Number
	 	 	23	 
	15.3. Severability
	 	 	23	 
	15.4. Requirements of Law
	 	 	23	 
	15.5. Securities Law Compliance
	 	 	23	 
	15.6. No Rights as a Shareholder
	 	 	24	 
	15.7. Nature of Payments
	 	 	24	 
	15.8. Governing Law
	 	 	24	 

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QUEST RESOURCE CORPORATION.

2005 Omnibus Stock Award Plan

(As Amended and Restated)

Article 1. Establishment, Objectives, Duration and Effect of Shareholder Approval

     1.1. Establishment of the Plan. Quest Resource Corporation, a Nevada corporation (the
“Company”) and the Board of Directors of the Company (the “Board”) established this Quest Resource
2005 Omnibus Stock Award Plan (the “Plan”) effective as of October 14, 2005 (the “Effective Date”).
The Plan is hereby amended and restated effective as of January 1, 2008.

     1.2. Objectives of the Plan. The Plan is intended to allow employees and Non-Employee
Directors of the Company and its Subsidiaries to acquire or increase equity ownership in the
Company, or to be compensated under the Plan based on growth in the Company’s equity value, thereby
strengthening their commitment to the success of the Company and stimulating their efforts on
behalf of the Company, and to assist the Company and its Subsidiaries in attracting new employees
and retaining existing employees. The Plan is also intended to optimize the profitability and
growth of the Company through incentives which are consistent with the Company’s goals; to provide
incentives for excellence in individual performance; and to promote teamwork.

     1.3. Duration of the Plan. The Plan shall commence on the Effective Date and shall
remain in effect, subject to Section 1.4 and the right of the Board to amend or terminate the Plan
at any time pursuant to Article 13 hereof, until all Shares subject to it shall have been purchased
or acquired according to the Plan’s provisions.

     1.4. Shareholder Approval and Effect Thereof. The Company will submit the Plan to the
shareholders of the Company for approval within twelve months of the Effective Date. If the
Company’s shareholders do not approve the Plan (i) no Awards shall be granted subsequent to such
vote, and (ii) all Awards granted hereunder other than the Initial Awards shall be forfeited by
each Grantee and become null and void; the Initial Awards, however, shall survive according to the
terms and conditions of such Awards and the Plan.

Article 2. Definitions

     Whenever used in the Plan, the following terms shall have the meanings set forth below:

     2.1. “Article” means an Article of the Plan.

     2.2. “Award” means Options, Restricted Shares, Bonus Shares, Deferred Shares, SARs,
Performance Units or Performance Shares granted under the Plan.

     2.3. “Award Agreement” means a written agreement by which an Award is evidenced.

     2.4. “Beneficial Owner” has the meaning specified in Rule 13d-3 of the SEC under the
Exchange Act.

     2.5. “Board” has the meaning set forth in Section 1.1.

 

 

     2.6. “Bonus Shares” means Shares that are awarded to a Grantee without cost and
without restrictions in recognition of past performance (whether determined by reference to another
employee benefit plan of the Company or otherwise) or as an incentive to become an employee of the
Company or a Subsidiary.

     2.7. “Cause” means, unless otherwise defined in an Award Agreement,

     (a) a Grantee’s conviction of, plea of guilty to, or plea of nolo contendere to a
felony or other crime that involves fraud or dishonesty,

     (b) any willful action or omission by a Grantee which would constitute grounds for
immediate dismissal under the employment policies of the Company or the Subsidiary by which
Grantee is employed, including but not limited to intoxication with alcohol or illegal drugs
while on the premises of the Company or any Subsidiary, or violation of sexual harassment
laws or the internal sexual harassment policy of the Company or the Subsidiary by which
Grantee is employed,

     (c) a Grantee’s habitual neglect of duties, including but not limited to repeated
absences from work without reasonable excuse, or

     (d) a Grantee’s willful and intentional material misconduct in the performance of his
duties that results in financial detriment to the Company or any Subsidiary;

provided, however, that for purposes of clauses (b), (c) and (d), Cause shall not include any one
or more of the following: bad judgment, negligence or any act or omission believed by the Grantee
in good faith to have been in or not opposed to the interest of the Company (without intent of the
Grantee to gain, directly or indirectly, a profit to which the Grantee was not legally entitled).
A Grantee who agrees to resign from his affiliation with the Company or a Subsidiary in lieu of
being terminated for Cause may be deemed to have been terminated for Cause for purposes of this
Plan.

     2.8. “Change of Control” means, unless otherwise defined in an Award Agreement, any
one or more of the following:

     (a) any Person other than (i) a Subsidiary, (ii) any employee benefit plan (or any
related trust) of the Company or any of its Subsidiaries or (iii) any Excluded Person,
becomes the Beneficial Owner of 35% or more of the common shares of the Company or of Voting
Securities representing 35% or more of the combined voting power of the Company (such a
person or group, a “35% Owner”), except that (i) no Change of Control shall be
deemed to have occurred solely by reason of such beneficial ownership by a corporation with
respect to which both more than 60% of the common shares of such corporation and Voting
Securities representing more than 60% of the aggregate voting power of such corporation are
then owned, directly or indirectly, by the persons who were the direct or indirect owners of
the common shares and Voting Securities of the Company immediately before such acquisition
in substantially the same proportions as their ownership, immediately before such
acquisition, of the common shares and Voting Securities of the Company, as the case may be
and (ii) such corporation shall not be deemed a 35% Owner; or

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     (b) the Incumbent Directors (determined using the Effective Date as the baseline date)
cease for any reason to constitute at least a majority of the directors of the Company then
serving; or

     (c) the consummation by the Company (whether directly involving the Company or
indirectly involving the Company through one or more intermediaries) of a merger,
reorganization, consolidation, or similar transaction, or the sale or other disposition of
all or substantially all (at least 40%) of the consolidated assets of the Company or a plan
of liquidation of the Company (any of the foregoing transactions, a “Reorganization
Transaction”) which is not an Exempt Reorganization Transaction.

The definition of “Change of Control” may be amended at any time prior to the occurrence of a
Change of Control, and such amended definition shall be applied to all Awards granted under the
Plan whether or not outstanding at the time such definition is amended, without requiring the
consent of any Grantee. Notwithstanding the occurrence of any of the foregoing events, (a) a
Change of Control shall be deemed not to have occurred with respect to any Section 16 Person if
such Section 16 Person is, by agreement (written or otherwise), a participant on such Section 16
Person’s own behalf in a transaction which causes the Change of Control to occur and (b) a Change
of Control shall not occur with respect to a Grantee if, in advance of such event, the Grantee
agrees in writing that such event shall not constitute a Change of Control.

     2.9. “Change of Control Period” has the meaning set forth in Section 5.6(c).

     2.10. “Change of Control Value” means the Fair Market Value of a Share on the date of
a Change of Control.

     2.11. “Code” means the Internal Revenue Code of 1986, as amended from time to time,
and regulations and rulings thereunder. References to a particular section of the Code include
references to successor provisions of the Code or any successor statute.

     2.12. “Company” has the meaning set forth in Section 1.1.

     2.13. “Deferred Shares” means Shares that are awarded to a Grantee on a deferred basis
pursuant to Section 10.2

     2.14. “Disabled” or “Disability” means an individual (i) is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months or (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than twelve (12) months, receiving income replacement benefits
for a period of not less than 3 months under a Company-sponsored accident and health plan.
Notwithstanding the foregoing, with respect to an Incentive Stock Option, “Disability” means a
permanent and total disability, within the meaning of Code Section 22(e)(3), as determined by the
Board in good faith, upon receipt of medical advice from one or more individuals, selected by the
Board, who are qualified to give professional medical advice.

     2.15. “Effective Date” has the meaning set forth in Section 1.1.

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     2.16. “Eligible Person” means any employee (including any officer) of the Company or
any Subsidiary, including any such employee who is on an approved leave of absence or has been
subject to a disability which does not qualify as a Disability and any Non-Employee Director.

     2.17. “Exchange Act” means the Securities Exchange Act of 1934, as amended. References
to a particular section of the Exchange Act include references to successor provisions.

     2.18. “Excluded Person” means any Person who, along with such Person’s Affiliates and
Associates (as such terms are defined in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act) is the Beneficial Owner of 15% or more of the Shares outstanding as of the Effective
Date.

     2.19. “Exempt Reorganization Transaction” means a Reorganization Transaction which (i)
results in the Persons who were the direct or indirect owners of the outstanding common shares and
Voting Securities of the Company immediately before such Reorganization Transaction becoming,
immediately after the consummation of such Reorganization Transaction, the direct or indirect
owners of both more than 60% of the then-outstanding common shares of the Surviving Corporation and
Voting Securities representing more than 60% of the aggregate voting power of the Surviving
Corporation, in substantially the same respective proportions as such Persons’ ownership of the
common shares and Voting Securities of the Company immediately before such Reorganization
Transaction, or (ii) after such transaction, more than 50% of the members of the board of directors
of the Surviving Corporation were Incumbent Directors at the time of the Board’s approval of the
agreement providing for the Reorganization Transaction or other action of the Board approving the
transaction (or whose election or nomination was approved by a vote of at least two-thirds of the
members who were members of the Board at that time).

     2.20. “Fair Market Value” means (A) with respect to any property other than Shares,
the fair market value of such property determined by such methods or procedures as shall be
established from time to time by the Board, and (B) with respect to Shares that are readily
tradable on an established securities market (within the meaning of Treasury Regulations
§ 1.897-1(m)) the closing price for a Share on the Grant Date and if there is no closing price on
such date, the closing price for a Share on the last trading day before the Grant Date and (C) with
respect to Shares not readily tradable on an established securities market, the value determined by
the reasonable application of a reasonable valuation method applying those factors and principles
set forth in Treasury Regulations 1.409A-1(b)(5)(iv)(B).

     2.21. “Freestanding SAR” means any SAR that is granted independently of any Option.

     2.22. “Good Reason” means any action by the Company or the Subsidiary employing a
Grantee which results in any of the following without the Grantee’s consent: (a) a material
diminution or other material adverse change in the Grantee’s position, authority or duties, (b)
requiring the Grantee to be based at any office or location more than 50 miles from the location
where he or she was previously based; (c) a material diminution in the Grantee’s compensation in
the aggregate, other than a diminution applicable to all similarly situated employees. A Grantee

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shall not have Good Reason to terminate his or her position unless, (1) within 60 days
following the event or circumstance set forth above in (a), (b) or (c), the Grantee notifies the
Company of such event or circumstance, (2) the Grantee gives the Company 30 days to correct the
event or circumstance, and (3) the Company does not correct, in all material respects, such event
or circumstance.

     2.23. “Grant Date” has the meaning set forth in Section 5.2.

     2.24. “Grantee” means an individual who has been granted an Award.

     2.25. “Including” or “includes” mean “including, without limitation,” or
“includes, without limitation”, respectively.

     2.26. “Incumbent Directors” means, as of any specified baseline date, individuals then
serving as members of the Board who were members of the Board as of the date immediately preceding
such baseline date; provided that any subsequently-appointed or elected member of the Board whose
election, or nomination for election by shareholders of the Company or the Surviving Corporation,
as applicable, was approved by a vote or written consent of a majority of the directors then
comprising the Incumbent Directors shall also thereafter be considered an Incumbent Director,
unless the initial assumption of office of such subsequently-elected or appointed director was in
connection with (i) an actual or threatened election contest, including a consent solicitation,
relating to the election or removal of one or more members of the Board, (ii) a “tender offer” (as
such term is used in Section 14(d) of the Exchange Act), or (iii) a proposed Reorganization
Transaction.

     2.27. “Initial Awards” means those Awards set forth on Schedule 2.27 to this Plan.

     2.28. “Non-Employee Director” means a director of the Company who is not an officer or
employee of the Company or any of its affiliates. A “Non-Employee Director” includes any director
of the Company who serves as a consultant to the Company or any of its affiliates.

     2.29. “Option” means an option granted under Article 6 of the Plan, including an
incentive stock option.

     2.30. “Option Price” means the price at which a Share may be purchased by a Grantee
pursuant to an Option.

     2.31. “Option Term” means the period beginning on the Grant Date of an Option and
ending on the expiration date of such Option, as specified in the Award Agreement for such Option
and as may, consistent with the provisions of the Plan and Code section 409A, be extended from time
to time by the Board prior to the expiration date of such Option then in effect.

     2.32. “Performance Period” has the meaning set forth in Section 9.2.

     2.33. “Performance Share” or “Performance Unit” has the meaning set forth in
Article 9.

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     2.34. “Period of Restriction” means the period during which the transfer of Restricted
Shares is limited in some way (based on the passage of time, the achievement of performance goals,
or upon the occurrence of other events as determined by the Board) or the Share are subject to a
substantial risk of forfeiture, as provided in Article 8.

     2.35. “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in
Section 13(d) thereof.

     2.36. “Plan” has the meaning set forth in Section 1.1.

     2.37. “Plan Committee” has the meaning set forth in Article 3.

     2.38. “Reorganization Transaction” has the meaning set forth in Section 2.8(c).

     2.39. “Restricted Shares” means Shares that are subject to transfer restrictions and
are subject to forfeiture if conditions specified in the Award Agreement applicable to such Shares
are not satisfied.

     2.40. “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act,
together with any successor rule, as in effect from time to time.

     2.41. “SAR” means a stock appreciation right and includes both Tandem SARs and
Freestanding SARs.

     2.42. “SAR Term” means the period beginning on the Grant Date of a SAR and ending on
the expiration date of such SAR, as specified in the Award Agreement for such SAR and as may,
consistent with the provisions of the Plan, be extended from time to time by the Board prior to the
expiration date of such SAR then in effect.

     2.43. “SEC” means the United States Securities and Exchange Commission, or any
successor thereto.

     2.44. “Section” means, unless the context otherwise requires, a Section of the Plan.

     2.45. “Section 16 Person” means a person who is subject to obligations under Section
16 of the Exchange Act with respect to transactions involving equity securities of the Company.

     2.46. “Share” means a common share, $.001 par value, of the Company.

     2.47. “Subsidiary” means with respect to any Person (a) any corporation of which more
than 50% of the Voting Securities are at the time, directly or indirectly, owned by such Person,
and (b) any partnership or limited liability company in which such Person has a direct or indirect
interest (whether in the form of voting power or participation in profits or capital contribution)
of more than 50%. Solely with respect to a grant of an incentive stock option under the
requirements of Section 422 of the Code, “Subsidiary” means a “subsidiary corporation” as defined
in Section 424(f) of the Code.

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     2.48. “Substitute Option” has the meaning set forth in Section 6.3.

     2.49. “Surviving Corporation” means the corporation resulting from a Reorganization
Transaction or, if Voting Securities representing at least 50% of the aggregate voting power of
such resulting corporation are directly or indirectly owned by another corporation, such other
corporation.

     2.50. “Tandem SAR” means a SAR that is granted in connection with, or related to, an
Option, and which requires forfeiture of the right to purchase an equal number of Shares under the
related Option upon the exercise of such SAR; or alternatively, which requires the cancellation of
an equal amount of SARs upon the purchase of the Shares subject to the Option.

     2.51. “Tax Withholding” has the meaning set forth in Section 14.1(a).

     2.52. “Termination of Affiliation” occurs on the first day on which an individual is
for any reason (a) no longer providing services to the Company or any Subsidiary in the capacity of
an employee, (b) with respect to an individual who is an employee of a Subsidiary, the first day on
which such Subsidiary ceases to be a Subsidiary, or (c) with respect to a Non-Employee Director, no
longer serving as a director of the Company. A Termination of Affiliation shall have the same
meaning as a “separation from service” under Code section 409A(2)(A)(i) and the regulations issued
thereunder.

     2.53. “Voting Securities” of a corporation means securities of such corporation that
are entitled to vote generally in the election of directors, but not including any other class of
securities of such corporation that may have voting power by reason of the occurrence of a
contingency.

Article 3. Administration

     3.1. Board and Committee. Subject to Article 13, and to Section 3.2, the Plan shall
be administered by the Board, or a committee of the Board appointed by the Board to administer the
Plan (“Plan Committee”). To the extent the Board considers it desirable for transactions relating
to Awards to be eligible to qualify for an exemption under Rule 16b-3, the Plan Committee shall
consist of two or more directors of the Company, all of whom qualify as “non-employee directors
within the meaning of Rule 16b-3. To the extent the Board considers it desirable for compensation
delivered pursuant to Awards to be eligible to qualify for an exemption from the limit on tax
deductibility of compensation under Section 162(m) of the Code, the Plan Committee shall consist of
two or more directors of the Company, all of whom shall qualify as “outside directors” within the
meaning of Code Section 162(m). The number of members of the Plan Committee shall from time to
time be increased or decreased, and shall be subject to such conditions, including, but not limited
to having exclusive authority to make certain grants of Awards or to perform such other acts, in
each case as the Board deems appropriate to permit transactions in Shares pursuant to the Plan to
satisfy such conditions of Rule 16b-3 or Code Section 162(m) as then in effect.

     Any references herein to “Board” are, except as the context requires otherwise, references to
the Board or the Plan Committee, as applicable.

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     3.2. Powers of the Board. Subject to the express provisions of the Plan, the Board
has full and final authority and sole discretion as follows:

     (a) taking into consideration the reasonable recommendations of management, to
determine when, to whom and in what types and amounts Awards should be granted and the terms
and conditions applicable to each Award, including the Option Price, the Option Term, the
benefit payable under any SAR, Performance Unit or Performance Share and whether or not
specific Awards shall be granted in connection with other specific Awards, and if so whether
they shall be exercisable cumulatively with, or alternatively to, such other specific
Awards;

     (b) to determine the amount, if any, that a Grantee shall pay for Restricted Shares,
whether and on what terms to permit or require the payment of cash dividends thereon to be
deferred, when Restricted Shares (including Restricted Shares acquired upon the exercise of
an Option) shall be forfeited and whether such shares shall be held in escrow;

     (c) to construe and interpret the Plan and to make all determinations necessary or
advisable for the administration of the Plan;

     (d) to make, amend, and rescind rules relating to the Plan, including rules with
respect to the exercisability and nonforfeitability of Awards upon the Termination of
Affiliation of a Grantee;

     (e) to determine the terms and conditions of all Award Agreements (which need not be
identical) and, with the consent of the Grantee, to amend any such Award Agreement at any
time, among other things, to permit transfers of such Awards to the extent permitted by the
Plan; provided that the consent of the Grantee shall not be required for any amendment which
(A) does not adversely affect the rights of the Grantee, or (B) is necessary or advisable
(as determined by the Board) to carry out the purpose of the Award as a result of any new or
change in existing applicable law;

     (f) to cancel, with the consent of the Grantee, outstanding Awards and to grant new
Awards in substitution therefor;

     (g) to accelerate the exercisability (including exercisability within a period of less
than six months after the Grant Date) of, and to accelerate or waive any or all of the terms
and conditions applicable to, any Award or any group of Awards for any reason and at any
time, including in connection with a Termination of Affiliation;

     (h) subject to Section 5.3, to extend the time during which any Award or group of
Awards may be exercised;

     (i) to delegate to any member of the Board or committee of Board members such of its
powers as it deems appropriate, including the power to subdelegate, except that only a
member of the Board of Directors of the Company (or a committee thereof) may grant Awards
from time to time to specified categories of Eligible Persons in amounts and on terms to be
specified by the Board; provided that no such grants shall be

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made other than by the Board of Directors of the Company or the Plan Committee to
individuals who are then Section 16 Persons or other than by the Plan Committee to
individuals who are then or are deemed likely to become a “covered employee” within the
meaning of Code Section 162(m);

     (j) to delegate to officers, employees or independent contractors of the Company
matters involving the routine administration of the Plan and which are not specifically
required by any provision of this Plan of to be performed by the Board of Directors of the
Company;

     (k) to delegate its duties and responsibilities under the Plan with respect to foreign
Subsidiary plans, except its duties and responsibilities with respect to Section 16 Persons,
and (A) the acts of such delegates shall be treated hereunder as acts of the Board and (B)
such delegates shall report to the Board regarding the delegated duties and
responsibilities;

     (l) to impose such additional terms and conditions upon the grant, exercise or
retention of Awards as the Board may, before or concurrently with the grant thereof, deem
appropriate, including limiting the percentage of Awards which may from time to time be
exercised by a Grantee; and

     (m) to take any other action with respect to any matters relating to the Plan for which
it is responsible.

     All determinations on any matter relating to the Plan or any Award Agreement may be made in
the sole and absolute discretion of the Board, and all such determinations of the Board shall be
final, conclusive and binding on all Persons. No member of the Board shall be liable for any
action or determination made with respect to the Plan or any Award.

Article 4. Shares Subject to the Plan

     4.1. Number of Shares Available.

     (a) Plan Limit. Subject to adjustment as provided in Section 4.2, the number of Shares
hereby reserved for delivery under the Plan is 2,200,000 Shares. If any Shares subject to
an Award granted hereunder are forfeited or an Award or any portion thereof otherwise
terminates or is settled without the issuance of Shares, or in the case of SARs and
Performance Units, without the payment of cash, the Shares subject to such Award, to the
extent of any such forfeiture, termination or settlement, shall again be available for grant
under the Plan. The Board may from time to time determine the appropriate methodology for
calculating the number of Shares issued pursuant to the Plan.

     (b) Individual Limit. No Grantee may be granted Options, SARs, Restricted Shares,
Bonus Shares or Deferred Shares, Performance Units or Performance Shares in Shares, or in
any combination thereof, relating to an aggregate number of Shares under the Plan that
exceeds 500,000 shares in any 5-year period. If a previously granted Option, SAR,
Performance Unit, or Performance Share is forfeited, canceled or repriced, such forfeited,
canceled or repriced Option, SAR, Performance Unit, or Performance

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Share as the case may be, shall continue to be counted against the maximum number of
Shares, SARs, Performance Units or Performance Shares that may be delivered to any Grantee
over the life of the Plan.

     4.2. Adjustments in Authorized Shares. In the event that the Board determines that
any dividend or other distribution (whether in the form of cash, Shares, other securities, or other
property), recapitalization, share split, reverse share split, subdivision, consolidation or
reduction of capital, reorganization, merger, scheme of arrangement, split-up, spin-off or
combination involving the Company or repurchase or exchange of Shares or other rights to purchase
Shares or other securities of the Company, or other similar corporate transaction or event affects
the Shares such that any adjustment is necessary in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Board shall,
in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or
other securities or property of the Company or any Person that is a party to a Reorganization
Transaction with the Company) with respect to which Awards may be granted, (ii) the number and type
of Shares (or other securities or property of the Company or any Person that is a party to a
Reorganization Transaction with the Company) subject to outstanding Awards, and (iii) the grant or
exercise price with respect to any Award or, if deemed appropriate, make provision for a cash
payment to the holder of an outstanding Award or the substitution of other property for Shares
subject to an outstanding Award; provided, that the number of Shares subject to any Award
denominated in Shares shall always be a whole number. In the case of any substitution or
adjustment affecting an Option (including a “nonqualified stock option”) such substitution or
adjustments shall be made in a manner that is in accordance with the substitution and assumption
rules set forth in Treasury Regulations 1.424.1 and the applicable guidance relating to Code
section 409A.

     4.3. Available Shares. Shares delivered in connection with Awards may be newly issued
Shares, Shares purchased by the Company on the open market, or Shares issued from treasury.

Article 5. Eligibility and General Conditions of Awards

     5.1. Eligibility. The Board may grant Awards to any Eligible Person, whether or not
he or she has previously received an Award; provided, however, that an Eligible Person who is a
Non-Employee Director may only be granted an Award that is an Option (excluding an incentive stock
option, Restricted Shares, Bonus Shares or Deferred Shares.

     5.2. Grant Date. The Grant Date of an Award shall be the date on which the Board
grants the Award or such later date as specified by the Board (i) in the Board’s resolutions or
minutes addressing the Award grants or (ii) in the Award Agreement.

     5.3. Maximum Term. Subject to the following proviso, the Option Term or other period
during which an Award may be outstanding shall not extend more than 10 years after the Grant Date,
and shall be subject to earlier termination as herein specified. After an Award has been granted,
the maximum term may only be extended in a manner which complies with Code section 409A.

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     5.4. Award Agreement. To the extent not set forth in the Plan, the terms and
conditions of each Award (which need not be the same for each grant or for each Grantee) shall be
set forth in an Award Agreement.

     5.5. Restrictions on Share Transferability. The Board may include in the Award
Agreement such restrictions on any Shares acquired pursuant to the exercise or vesting of an Award
as it may deem advisable, including restrictions under applicable federal securities laws.

     5.6. Termination of Affiliation. Except as otherwise provided in an Award Agreement
(including an Award Agreement as amended by the Board pursuant to Section 3.2), and subject to the
provisions of Section 13.1, the extent to which the Grantee shall have the right to exercise, vest
in, or receive payment in respect of an Award following Termination of Affiliation shall be
determined in accordance with the following provisions of this Section 5.6.

          (a) For Cause. If a Grantee has a Termination of Affiliation for Cause:

     (i) the Grantee’s Restricted Shares and Deferred Shares that are forfeitable
immediately before such Termination of Affiliation shall automatically be forfeited
on such date, subject in the case of Restricted Shares to the provisions of Section
8.4 regarding repayment of certain amounts to the Grantee;

     (ii) the Grantee’s Deferred Shares that were vested immediately before such
Termination of Affiliation shall promptly be settled by delivery to such Grantee of
a number of unrestricted Shares equal to the aggregate number of such vested
Deferred Shares, and

     (iii) any unexercised Option or SAR, and any Performance Share or Performance
Unit with respect to which the Performance Period has not ended immediately before
such Termination of Affiliation, shall terminate effective immediately upon such
Termination of Affiliation.

          (b) On Account of Death or Disability. If a Grantee has a Termination of
Affiliation on account of death or Disability:

     (i) the Grantee’s Restricted Shares that were forfeitable immediately before
such Termination of Affiliation shall thereupon become nonforfeitable;

     (ii) the Grantee’s Deferred Shares that were forfeitable immediately before
such Termination of Affiliation shall thereupon become nonforfeitable and the
Company shall, unless otherwise provided in an Award Agreement, promptly settle all
Deferred Shares, whether or not forfeitable, by delivery to the Grantee (or, after
his or her death, to his or her personal representative or beneficiary designated in
accordance with Article 11) of a number of unrestricted Shares equal to the
aggregate number of the Grantee’s Deferred Shares;

     (iii) any unexercised Option or SAR, whether or not exercisable immediately
before such Termination of Affiliation, shall be fully exercisable and may be
exercised, in whole or in part, at any time up to one year after such

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Termination of Affiliation (but only during the Option Term or SAR Term,
respectively) by the Grantee or, after his or her death, by (A) his or her personal
representative or the person to whom the Option or SAR, as applicable, is
transferred by will or the applicable laws of descent and distribution, or (B) the
Grantee’s beneficiary designated in accordance with Article 11; and

     (iv) the benefit payable with respect to any Performance Share or Performance
Unit with respect to which the Performance Period has not ended immediately before
such Termination of Affiliation on account of death or Disability shall be equal to
the product of the Fair Market Value of a Share as of the date of such Termination
of Affiliation or the value of the Performance Unit specified in the Award Agreement
(determined as of the date of such Termination of Affiliation), as applicable,
multiplied successively by each of the following:

     (A) a fraction, the numerator of which is the number of months
(including as a whole month any partial month) that have elapsed since the
beginning of such Performance Period until the date of such Termination of
Affiliation and the denominator of which is the number of months (including
as a whole month any partial month) in the Performance Period; and

     (B) a percentage determined by the Plan Committee that would be earned
under the terms of the applicable Award Agreement assuming that the rate at
which the performance goals have been achieved as of the date of such
Termination of Affiliation would continue until the end of the Performance
Period, or, if the Board elects to compute the benefit after the end of the
Performance Period, the Performance percentage, as determined by the Board,
attained during the Performance Period.

          (c) Change of Control Period. If a Grantee has a Termination of Affiliation
during the period (“Change of Control Period”) commencing on a Change of Control and ending
on the first anniversary of the Change of Control, which Termination of Affiliation is
initiated by the Company or a Subsidiary other than for Cause, or initiated by the Grantee
for Good Reason, then

     (i) the Grantee’s Restricted Shares that were forfeitable shall thereupon
become nonforfeitable;

     (ii) the Grantee’s Deferred Shares that were forfeitable shall thereupon become
nonforfeitable and the Company shall immediately settle all Deferred Shares, whether
or not previously forfeitable, by delivery to such Grantee of a number of
unrestricted Shares equal to the aggregate number of the Grantee’s Deferred Shares;

     (iii) any unexercised Option or SAR, whether or not exercisable on the date of
such Termination of Affiliation, shall thereupon be fully exercisable and may be
exercised, in whole or in part for ninety (90) days following such

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Termination of Affiliation (but only during the Option Term or SAR Term,
respectively); and

     (iv) the Company shall immediately pay to the Grantee, with respect to any
Performance Share or Performance Unit with respect to which the Performance Period
has not ended as of the date of such Termination of Affiliation, a cash payment
equal to the product of (A) in the case of a Performance Share, the Change of
Control Value or (B) in the case of a Performance Unit, the value of the Performance
Unit specified in the Award Agreement, as applicable, multiplied successively by
each of the following:

     (A) a fraction, the numerator of which is the number of whole and
partial months that have elapsed between the beginning of such Performance
Period and the date of such Termination of Affiliation and the denominator
of which is the number of whole and partial months in the Performance
Period; and

     (B) a percentage equal to a greater of (x) the target percentage, if
any, specified in the applicable Award Agreement or (y) the maximum
percentage, if any, that would be earned under the terms of the applicable
Award Agreement assuming that the rate at which the performance goals have
been achieved as of the date of such Termination of Affiliation would
continue until the end of the Performance Period.

          (d) Any Other Reason. If a Grantee has a Termination of Affiliation for any
reason other than for Cause, death or Disability, and other than under the circumstances
described in Section 5.6(c), then:

     (i) the Grantee’s Restricted Shares and Deferred Shares, to the extent
forfeitable immediately before such Termination of Affiliation, shall thereupon
automatically be forfeited, subject in the case of Restricted Shares to the
provisions of Section 8.4 regarding repayment of certain amounts to the Grantee;

     (ii) the Grantee’s Deferred Shares that were not forfeitable immediately before
such Termination of Affiliation shall promptly be settled by delivery to the Grantee
of a number of unrestricted Shares equal to the aggregate number of the Grantee’s
vested Deferred Shares;

     (iii) any unexercised Option or SAR, to the extent exercisable immediately
before such Termination of Affiliation, shall remain exercisable in whole or in part
for ninety (90) days after such Termination of Affiliation (but only during the
Option Term or SAR Term, respectively) by the Grantee or, after his or her death, by
(A) his or her personal representative or the person to whom the Option or SAR, as
applicable, is transferred by will or the applicable laws of descent and
distribution, or (B) the Grantee’s beneficiary designated in accordance with Article
11; and

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     (iv) any Performance Shares or Performance Units with respect to which the
Performance Period has not ended as of the date of such Termination of Affiliation
shall terminate immediately upon such Termination of Affiliation.

     5.7. Nontransferability of Awards.

          (a) Except as provided in Section 5.7(c) below, each Award, and each right under any
Award, shall be exercisable only by the Grantee during the Grantee’s lifetime, or, if
permissible under applicable law, by the Grantee’s guardian or legal representative.

          (b) Except as provided in Section 5.7(c) below, no Award (prior to the time, if
applicable, Shares are issued in respect of such Award), and no right under any Award, may
be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Grantee otherwise than by will or by the laws of descent and distribution and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be
void and unenforceable against the Company or any Subsidiary; provided, that the designation
of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale,
transfer or encumbrance.

          (c) To the extent and in the manner permitted by the Board, and subject to such terms
and conditions as may be prescribed by the Board, a Grantee may transfer an Award to (a) a
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law of the Grantee, (including adoptive relationships), (b) any
person sharing the Grantee’s household (other than a tenant or employee), (c) a trust in
which persons described in (a) or (b) have more than 50% of the beneficial interest, (d) a
foundation in which persons described in (a) or (b) or the Grantee own more than 50% of the
voting interests; provided such transfer is not for value. The following shall not be
considered transfers for value: (i) a transfer under a domestic relations order in
settlement of marital property rights; and (ii) a transfer to an entity in which more than
50% of the voting interests are owned by persons described in (a) or (b) above or the
Grantee, in exchange for an interest in that entity.

Article 6. Stock Options

     6.1. Grant of Options. Subject to the terms and provisions of the Plan, Options may
be granted to any Eligible Person in such number, and upon such terms, and at any time and from
time to time as shall be determined by the Board. Without limiting the generality of the
foregoing, the Board may grant to any Eligible Person, or permit any Eligible Person to elect to
receive, an Option in lieu of or in substitution for any other compensation (whether payable
currently or on a deferred basis, and whether payable under this Plan or otherwise) which such
Eligible Person may be eligible to receive from the Company or a Subsidiary, which Option may have
a value (as determined by the Board under Black-Scholes or any other option valuation method) that
is equal to or greater than the amount of such other compensation.

     6.2. Award Agreement. Each Option grant shall be evidenced by an Award Agreement that
shall specify the Option Price, the Option Term, the number of shares to which

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the Option pertains, the time or times at which such Option shall be exercisable and such
other provisions as the Board shall determine.

     6.3. Option Price.

     (a) The Option Price of an Option under this Plan shall be determined by the Board, and
shall be no less than 100% of the Fair Market Value of a Share on the Grant Date; provided,
however, that any Option (“Substitute Option”) that is (x) granted to a Grantee in
connection with the acquisition (“Acquisition”), however effected, by the Company of another
corporation or entity (“Acquired Entity”) or the assets thereof, (y) associated with an
option to purchase shares of stock or other equity interest of the Acquired Entity or an
affiliate thereof (“Acquired Entity Option”) held by such Grantee immediately prior to such
Acquisition, and (z) intended to preserve for the Grantee the economic value of all or a
portion of such Acquired Entity Option, shall be granted such that such option substitution
is completed in conformity with the rules set forth in Section 424(a) of the Code.

     (b) Subject to the limitations set forth below and those contained in Sections 6 and
13, the Committee may make any adjustment in the Option Price, the number of Shares subject
to, or the terms of, an outstanding Option and a subsequent granting of an Option by
amendment or by substitution of an outstanding Option. Such amendment, substitution, or
re-grant may result in terms and conditions (including Option Price, number of Shares
covered, vesting schedule or exercise period) that differ from the terms and conditions of
the original Option; provided, however, the Committee may not, without stockholder approval
(i) amend an Option to reduce its Option Price, (ii) cancel an Option and regrant an Option
with a lower Option Price than the original Option Price of the cancelled Option, or (iii)
take any other action (whether in the form of an amendment, cancellation or replacement
grant) that has the effect of “repricing” an Option, as defined under applicable NYSE rules
or the rules of the established stock exchange or quotation system on which the Company
Stock is then listed or traded if such Exchange’s or quotation system’s rules define what
constitutes a repricing. The Committee also may not adversely affect the rights of any
Eligible Person to previously granted Options without the consent of such Eligible Person.
If such action is affected by the amendment, the effective date of such amendment shall be
the date of the original grant. Any adjustment, modification, extension or renewal of an
Option shall be effected such that the Option is either exempt from, or is compliant with,
Code section 409A.

     6.4. Grant of Incentive Stock Options.

     (a) At the time of the grant of any Option to an Eligible Person who is an employee of
the Company or a Subsidiary, the Board may designate that such option shall be made subject
to additional restrictions to permit it to qualify as an “incentive stock option” under the
requirements of Section 422 of the Code. The maximum number of shares that may be issued
pursuant to the grants of incentive stock options shall be the same maximum limit on shares
that may be issued under the Plan for all awards as set forth in Section 4.1(a). Any option
designated as an incentive stock option:

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     (i) shall not be granted to a person who owns shares (including shares treated
as owned under Section 424(d) of the Code) possessing more than 10% of the total
combined voting power of all classes of shares of the Company;

     (ii) shall be for a term of not more than 10 years from the Grant Date, and
shall be subject to earlier termination as provided herein or in the applicable
Award Agreement;

     (iii) shall not have an aggregate Fair Market Value (determined for each
incentive stock option at its Grant Date) of Shares with respect to which incentive
stock options are exercisable for the first time by such Grantee during any calendar
year (under the Plan and any other employee stock option plan of the Grantee’s
employer or any parent or Subsidiary thereof (“Other Plans”)), determined in
accordance with the provisions of Section 422 of the Code, which exceeds $100,000
(the “$100,000 Limit”);

     (iv) shall, if the aggregate Fair Market Value of a Share (determined on the
Grant Date) with respect to the portion of such grant which is exercisable for the
first time during any calendar year (“Current Grant”) and all incentive stock
options previously granted under the Plan and any Other Plans which are exercisable
for the first time during a calendar year (“Prior Grants”) would exceed the $100,000
Limit, be exercisable as follows:

     (A) the portion of the Current Grant which would, when added to any
Prior Grants, be exercisable with respect to Shares which would have an
aggregate Fair Market Value (determined as of the respective Grant Date for
such options) in excess of the $100,000 Limit shall, notwithstanding the
terms of the Current Grant, be exercisable for the first time by the Grantee
in the first subsequent calendar year or years in which it could be
exercisable for the first time by the Grantee when added to all Prior Grants
without exceeding the $100,000 Limit; and

     (B) if, viewed as of the date of the Current Grant, any portion of a
Current Grant could not be exercised under the preceding provisions of this
Subsection (iv) during any calendar year commencing with the calendar year
in which it is first exercisable through and including the last calendar
year in which it may by its terms be exercised, such portion of the Current
Grant shall not be an incentive stock option, but shall be exercisable as a
separate Option at such date or dates as are provided in the Current Grant;

     (v) shall be granted within 10 years from the earlier of the date the Plan is
adopted or the date the Plan is approved by the shareholders of the Company;

     (vi) shall require the Grantee to notify the Board of any disposition of any
Shares issued pursuant to the exercise of the incentive stock option under the

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circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions), within 10 days of such disposition; and

     (vii) shall by its terms not be assignable or transferable other than by will
or the laws of descent and distribution and may be exercised, during the Grantee’s
lifetime, only by the Grantee; provided, however, that the Grantee may, to the
extent provided in the Plan in any manner specified by the Board, designate in
writing a beneficiary to exercise such incentive stock option after the Grantee’s
death.

Notwithstanding the foregoing, the Board may, without the consent of the Grantee, at any time
before the exercise of an option (whether or not an incentive stock option), take any action
necessary to prevent such option from being treated as an incentive stock option.

     6.5. Exercise of Options. Options shall be exercised by the delivery of a written
notice of exercise to the Company or its designee, setting forth the number of Shares with respect
to which the Option is to be exercised, accompanied by full payment for the Shares made by cash,
personal check or wire transfer or, subject to the approval of the Board pursuant to procedures
approved by the Board,

     (a) through the sale of the Shares acquired on exercise of the Option through a
broker-dealer to whom the Grantee has submitted an irrevocable notice of exercise and
irrevocable instructions to deliver promptly to the Company the amount of sale or loan
proceeds sufficient to pay for such Shares, together with, if requested by the Company, the
amount of federal, state, local or foreign withholding taxes payable by Grantee by reason of
such exercise,

     (b) through simultaneous sale through a broker of Shares acquired on exercise, as
permitted under Regulation T of the Federal Reserve Board, or

     (c) by delivery to the Company of certificates representing the number of Shares then
owned by the Grantee, the Fair Market Value of which equals the purchase price of the Shares
purchased in connection with the Option exercise, properly endorsed for transfer to the
Company; provided however, that Shares used for this purpose must have been held by the
Grantee for such minimum period of time as may be established from time to time by the
Board; and provided further that the Fair Market Value of any Shares delivered in payment of
the purchase price upon exercise of the Options shall be the Fair Market Value as of the
exercise date, which shall be the date of delivery of the certificates for the Stock used as
payment of the exercise price. For purposes of this Section 6.5(c), in lieu of actually
surrendering to the Company the stock certificates representing the number of Shares then
owned by the Grantee, the Board may, in its discretion permit the Grantee to submit to the
Company a statement affirming ownership by the Grantee of such number of Shares and request
that such Shares, although not actually surrendered, be deemed to have been surrendered by
the Grantee as payment of the exercise price.

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Article 7. Stock Appreciation Rights

     7.1. Grant of SARs. Subject to the terms and conditions of this Plan, SARs may be
granted to any Eligible Person at any time and from time to time as shall be determined by the
Board in its sole discretion. The Board may grant Freestanding SARs or Tandem SARs, or any
combination thereof.

     (a) Number of Shares. The Board shall have complete discretion to determine
the number of SARs granted to any Grantee, subject to the limitations imposed in this Plan
and by applicable law.

     (b) Exercise Price and Other Terms. All SARs shall be granted with an exercise
price no less than the Fair Market Value of the underlying Shares of Stock on the SARs’
Grant Date. The Board, subject to the provisions of this Plan, shall have complete
discretion to determine the terms and conditions of SARs granted under this Plan. The
exercise price per Share of Tandem SARs shall equal the exercise price per Share of the
related Option.

     7.2. SAR Award Agreement. Each SAR granted under the Plan shall be evidenced by a
written SAR Award Agreement which shall be entered into by the Company and the Grantee to whom the
SAR is granted and which shall specify the exercise price per share, the SAR Term, the conditions
of exercise, and such other terms and conditions as the Board in its sole discretion shall
determine.

     7.3. Exercise of SARs. SARs shall be exercised by the delivery of a written notice of
exercise to the Company or its designee, setting forth the number of Shares over which the SAR is
to be exercised. Tandem SARs (a) may be exercised with respect to all or part of the Shares
subject to the related Option upon the surrender of the right to exercise the equivalent portion of
the related Option; (b) may be exercised only with respect to the Shares for which its related
Option is then exercisable; and (c) may be exercised only when the Fair Market Value of the Shares
subject to the Option exceeds the Option Price of the Option. The value of the payment with
respect to the Tandem SAR may be no more than 100% of the difference between the Option Price of
the underlying Option and the Fair Market Value of the Shares subject to the underlying Option at
the time the Tandem SAR is exercised.

     7.4. Expiration of SARs. A SAR granted under this Plan shall expire on the date set
forth in the SAR Award Agreement, which date shall be determined by the Board in its sole
discretion. Unless otherwise specifically provided for in the SAR Award agreement, a Tandem SAR
granted under this Plan shall be exercisable at such time or times and only to the extent that the
related Option is exercisable. The Tandem SAR shall terminate and no longer be exercisable upon
the termination or exercise of the related Options, except that Tandem SARs granted with respect to
less than the full number of shares covered by a related Option shall not be reduced until the
exercise or termination of the related Option exceeds the number of Shares not covered by the SARs.

     7.5. Payment of SAR Amount. Upon exercise of a SAR, a Grantee shall be entitled to
receive payment from the Company in an amount determined by multiplying (i) the positive

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difference between the Fair Market Value of a Share on the date of exercise over the exercise
price per Share by (ii) the number of Shares with respect to which the SAR is exercised. The
payment upon a SAR exercise shall, at the Committee’s discretion, be paid (i) in whole Shares of
equivalent value, (ii) in cash, or (iii) some combination thereof. Any value attributable to a
fractional Share shall be paid in cash.

Article 8. Restricted Shares

     8.1. Grant of Restricted Shares. Subject to the terms and provisions of the Plan, the
Board, at any time and from time to time, may grant Restricted Shares to any Eligible Person in
such amounts as the Board shall determine.

     8.2. Award Agreement. Each grant of Restricted Shares shall be evidenced by an Award
Agreement, which shall specify the Period(s) of Restriction, the number of Restricted Shares
granted, and such other provisions as the Board shall determine. The Board may impose such
conditions or restrictions on any Restricted Shares as it may deem advisable, including
restrictions based upon the achievement of specific performance goals (Company-wide, divisional,
Subsidiary or individual), time-based restrictions on vesting or restrictions under applicable
securities laws.

     8.3. Consideration. The Board shall determine the amount, if any, that a Grantee
shall pay for Restricted Shares. Such payment shall be made in full by the Grantee before the
delivery of the shares and in any event no later than 10 business days after the Grant Date for
such shares.

     8.4. Effect of Forfeiture. If Restricted Shares are forfeited, and if the Grantee was
required to pay for such shares or acquired such Restricted Shares upon the exercise of an Option,
the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price equal
to the lesser of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair
Market Value of a Share on the date of such forfeiture. The Company shall pay to the Grantee the
required amount as soon as is administratively practical. Such Restricted Shares shall cease to be
outstanding, and shall no longer confer on the Grantee thereof any rights as a shareholder of the
Company, from and after the date of the event causing the forfeiture, whether or not the Grantee
accepts the Company’s tender of payment for such Restricted Shares.

     8.5. Escrow; Legends. The Board may provide that the certificates for any Restricted
Shares (x) shall be held (together with a stock power executed in blank by the Grantee) in escrow
by the Secretary of the Company until such Restricted Shares become nonforfeitable or are forfeited
or (y) shall bear an appropriate legend restricting the transfer of such Restricted Shares. If any
Restricted Shares become nonforfeitable, the Company shall cause certificates for such shares to be
issued without such legend.

Article 9. Performance Units and Performance Shares

     9.1. Grant of Performance Units and Performance Shares. Subject to the terms of the
Plan, Performance Units or Performance Shares may be granted to any Eligible Person in such amounts
and upon such terms, and at any time and from time to time, as the Board shall determine. Each
grant of Performance Units or Performance Shares shall be evidenced by an

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Award Agreement which shall specify the terms and conditions applicable to the Performance
Units or Performance Shares, as the Board determines.

     9.2. Value/Performance Goals. Each Performance Unit shall have an initial value that
is established by the Board at the time of grant, that is equal to the Fair Market Value of a Share
on the Grant Date. The Board shall set performance goals which, depending on the extent to which
they are met, will determine the number or value of Performance Units or Performance Shares that
will be paid to the Grantee. For purposes of this Article 9, the time period during which the
performance goals must be met shall be called a “Performance Period.” The Board shall have
complete discretion to establish the performance goals. Without limitation, the performance goals
may provide for a targeted level or levels of achievement using one or more of the following
measures: (a) earnings per share, (b) net income, (c) return on equity, (d) pro forma net income,
(e) return on designated assets, (f) return on revenues, (g) Fair Market Value per share, (i) book
value per share, (j) debt reduction, or (k) any combination of the above, in the conjunctive or
disjunctive, at the discretion of the Board. Objective and measurable goals set by a “management
by objectives” process, and approved by the Board may also be considered. Such goals may relate to
the satisfaction of external or internal requirements.

     9.3. Payment of Performance Units and Performance Shares. Subject to the terms of
this Plan, after the applicable Performance Period has ended, the holder of Performance Units or
Performance Shares shall be entitled to receive a payment based on the number and value of
Performance Units or Performance Shares earned by the Grantee over the Performance Period,
determined as a function of the extent to which the corresponding performance goals have been
achieved.

     If a Grantee is promoted, demoted or transferred to a different business unit of the Company
during a Performance Period, then, to the extent the Board determines appropriate, the Board may
adjust, change or eliminate the performance goals or the applicable Performance Period as it deems
appropriate in order to make them appropriate and comparable to the initial performance goals or
Performance Period.

     9.4. Form and Timing of Payment of Performance Units and Performance Shares. Payment
of earned Performance Units or Performance Shares shall be made in a lump sum following the close
of the applicable Performance Period. The Board may cause earned Performance Units or Performance
Shares to be paid in cash or in Shares (or in a combination thereof) which have an aggregate Fair
Market Value equal to the value of the earned Performance Units or Performance Shares at the close
of the applicable Performance Period. Such Shares may be granted subject to any restrictions
deemed appropriate by the Board. The form of payout of such Awards shall be set forth in the Award
Agreement pertaining to the grant of the Award.

     As determined by the Board, a Grantee may be entitled to receive any dividends declared with
respect to Shares which have been earned in connection with grants of Performance Units or
Performance Shares but not yet distributed to the Grantee. In addition, a Grantee may, as
determined by the Board, be entitled to exercise his or her voting rights with respect to such
Shares.

-20-

 

Article 10. Bonus Shares and Deferred Shares

     10.1. Bonus Shares. Subject to the terms of the Plan, the Board may grant Bonus
Shares to any Eligible Person, in such amount and upon such terms and at any time and from time to
time as shall be determined by the Board.

     10.2. Deferred Shares. Subject to the terms and provisions of the Plan, Deferred
Shares may be granted to any Eligible Person in such amounts and upon such terms, and at any time
and from time to time, as shall be determined by the Board. The Board may impose such conditions
or restrictions on any Deferred Shares as it may deem advisable, including time-vesting
restrictions and deferred payment features. The Board may cause the Company to establish a grantor
trust to hold Shares subject to Deferred Share Awards. Without limiting the generality of the
foregoing, the Board may grant to any Eligible Person, or permit any Eligible Person to elect to
receive, Deferred Shares in lieu of or in substitution for any other compensation (whether payable
currently or on a deferred basis, and whether payable under this Plan or otherwise) which such
Eligible Person may be eligible to receive from the Company or a Subsidiary. Any grant of Deferred
Shares shall comply with section 409A of the Code.

Article 11. Beneficiary Designation

     Each Grantee under the Plan may, from time to time, name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom any benefit under the Plan is to be paid in case
of the Grantee’s death before he or she receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Grantee, shall be in a form prescribed by the
Company, and will be effective only when filed by the Grantee in writing with the Company during
the Grantee’s lifetime. In the absence of any such designation, benefits remaining unpaid at the
Grantee’s death shall be paid to the Grantee’s estate.

Article 12. Rights of Employees

     12.1. Employment. Nothing in the Plan shall interfere with or limit in any way the
right of the Company to terminate any Grantee’s employment at any time, nor confer upon any Grantee
the right to continue in the employ of the Company.

     12.2. Participation. No employee shall have the right to be selected to receive an
Award, or, having been so selected, to be selected to receive a future Award.

Article 13. Amendment, Modification, and Termination

     13.1. Amendment, Modification, and Termination. Subject to the terms of the Plan, the
Board of Directors of the Company may at any time and from time to time, alter, amend, suspend or
terminate the Plan in whole or in part without the approval of the Company’s shareholders, except
to the extent the Board of Directors of the Company determines it is desirable to obtain approval
of the Company’s shareholders, to retain eligibility for exemption from the limitations of Code
Section 162(m), to have available the ability for Options to qualify as ISOs, to comply with the
requirements for listing on any exchange where the Company’s Shares are listed, or for any other
purpose the Board of Directors of the Company deems appropriate.

-21-

 

     13.2. Adjustments Upon Certain Unusual or Nonrecurring Events. The Board may make
adjustments in the terms and conditions of Awards in recognition of unusual or nonrecurring events
(including the events described in Section 4.2) affecting the Company or the financial statements
of the Company or of changes in applicable laws, regulations, or accounting principles, whenever
the Board determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan.

     13.3. Awards Previously Granted. Notwithstanding any other provision of the Plan to
the contrary (but subject to Section 2.7 and Section 13.2), no termination, amendment or
modification of the Plan shall adversely affect in any material way any Award previously granted
under the Plan, without the written consent of the Grantee of such Award.

Article 14. Withholding

     14.1. Mandatory Tax Withholding.

     (a) Whenever under the Plan, Shares are to be delivered upon exercise or payment of an
Award, or upon Restricted Shares becoming nonforfeitable, or any other event with respect to
rights and benefits hereunder, the Company shall be entitled to require and may accommodate
the Grantee’s request if so requested, (x) that the Grantee remit an amount in cash
sufficient to satisfy the minimum federal, state, local and foreign tax withholding
requirements related thereto (“Tax Withholding”), (y) the withholding of such Tax
Withholding from compensation otherwise due to the Grantee or from any Shares or other
payment due to the Grantee under the Plan or (z) any combination of the foregoing.

     (b) Any Grantee who makes a disqualifying disposition of an incentive stock option (if
incentive stock options are eligible to be granted hereunder granted under the Plan or who
makes an election under Section 83(b) of the Code shall remit to the Company an amount
sufficient to satisfy all resulting Tax Withholding; provided that, in lieu of or in
addition to the foregoing, the Company shall have the right to withhold such Tax Withholding
from compensation otherwise due to the Grantee or from any Shares or other payment due to
the Grantee under the Plan.

     14.2. Notification under Code Section 83(b). If the Grantee, in connection with the
exercise of any Option, or the grant of Restricted Shares, makes the election permitted under
Section 83(b) of the Code to include in such Grantee’s gross income in the year of transfer the
amounts specified in Section 83(b) of the Code, then such Grantee shall notify the Company of such
election within 10 days of filing the notice of the election with the Internal Revenue Service, in
addition to any filing and notification required pursuant to regulations issued under Section 83(b)
of the Code. The Board may, in connection with the grant of an Award or at any time thereafter
prior to such an election being made, prohibit a Grantee from making the election described above.

-22-

 

Article 15. Additional Provisions

     15.1. Successors. All obligations of the Company under the Plan with respect to
Awards granted hereunder shall be binding on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise
of all or substantially all of the business or assets of the Company.

     15.2. Gender and Number. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural.

     15.3. Severability. If any part of the Plan is declared by any court or governmental
authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any other
part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if
possible, be construed in a manner which will give effect to the terms of such Section or part of a
Section to the fullest extent possible while remaining lawful and valid.

     15.4. Requirements of Law. The granting of Awards and the issuance of Shares under
the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by
any governmental agencies or stock exchanges as may be required. Notwithstanding any provision of
the Plan or any Award, Grantees shall not be entitled to exercise, or receive benefits under, any
Award, and the Company shall not be obligated to deliver any Shares or other benefits to a Grantee,
if such exercise or delivery would constitute a violation by the Grantee or the Company of any
applicable law or regulation.

     15.5. Securities Law Compliance.

     (a) If the Board deems it necessary to comply with any applicable securities law, or
the requirements of any stock exchange upon which Shares may be listed, the Board may impose
any restriction on Shares acquired pursuant to Awards under the Plan as it may deem
advisable. All certificates for Shares delivered under the Plan pursuant to any Award or
the exercise thereof shall be subject to such stop transfer orders and other restrictions as
the Board may deem advisable under the rules, regulations and other requirements of the SEC,
any stock exchange upon which Shares are then listed, any applicable securities law, and the
Board may cause a legend or legends to be placed on any such certificates to refer to such
restrictions. If so requested by the Company, the Grantee shall represent to the Company in
writing that he or she will not sell or offer to sell any Shares unless a registration
statement shall be in effect with respect to such Shares under the Securities Act of 1933 or
unless he or she shall have furnished to the Company evidence satisfactory to the Company
that such registration is not required.

     (b) If the Board determines that the exercise of, or delivery of benefits pursuant to,
any Award would violate any applicable provision of securities laws or the listing
requirements of any stock exchange upon which any of the Company’s equity securities are
then listed, then the Board may postpone any such exercise or delivery, as applicable, but
the Company shall use all reasonable efforts to cause such exercise or delivery to comply
with all such provisions at the earliest practicable date.

-23-

 

     15.6. No Rights as a Shareholder. A Grantee shall not have any rights as a
shareholder with respect to the Shares (other than Restricted Shares) which may be deliverable upon
exercise or payment of such Award until such shares have been delivered to him or her. Restricted
Shares, whether held by a Grantee or in escrow by the Secretary of the Company, shall confer on the
Grantee all rights of a shareholder of the Company, except as otherwise provided in the Plan or
Award Agreement. Unless otherwise determined by the Board at the time of a grant of Restricted
Shares, any cash dividends that become payable on Restricted Shares shall be deferred and, if the
Board so determines, reinvested in additional Restricted Shares. Except as otherwise provided in an
Award Agreement, any share dividends and deferred cash dividends issued with respect to Restricted
Shares shall be subject to the same restrictions and other terms as apply to the Restricted Shares
with respect to which such dividends are issued. The Board may provide for payment of interest on
deferred cash dividends.

     15.7. Nature of Payments. Awards shall be special incentive payments to the Grantee
and shall not be taken into account in computing the amount of salary or compensation of the
Grantee for purposes of determining any pension, retirement, death or other benefit under (a) any
pension, retirement, profit-sharing, bonus, insurance or other employee benefit plan of the Company
or any Subsidiary or (b) any agreement between (i) the Company or any Subsidiary and (ii) the
Grantee, except as such plan or agreement shall otherwise expressly provide.

     15.8. Governing Law. The Plan and the rights of any Grantee receiving an Award
thereunder shall be construed and interpreted in accordance with and governed by the laws of the
State of Nevada without giving effect to the principles of the conflict of laws to the contrary.

-24-

 

Schedule 2.27 – Initial Awards

ALL NUMBERS HAVE BEEN ADJUSTED TO GIVE EFFECT TO THE 2.5:1 REVERSE STOCK SPLIT EFFECTIVE OCTOBER
31, 2005

	 	 	 	 	 	 	 
	 	 	 	 	 	 	# of Shares
	Name	 	Type of Award	 	Grant Date	 	Subject to Award
	David E. Grose

	 	Bonus Shares
	 	October 14, 2005
	 	16,000 shares,
payable on January
1, 2007.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	16,000 shares,
payable on January
1, 2007, if Grose
is employed by the
Company on June 1,
2006.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	16,000 shares,
payable on June 1,
2007, if Grose is
employed by the
Company on June 1,
2007.
	 
	 	 	 	 	 	 
	Richard Marlin

	 	Bonus Shares
	 	October 14, 2005
	 	12,000 shares,
payable on January
1, 2007, if Marlin
is employed by the
Company on April 4,
2006.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	12,000 shares,
payable on April 4,
2007, if Marlin is
employed by the
Company on April 4,
2007.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	12,000 shares,
payable on April 4,
2008, if Marlin is
employed by the
Company on April 4,
2008.

-25-

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	# of Shares
	Name	 	Type of Award	 	Grant Date	 	Subject to Award
	Lou Holman

	 	Bonus Shares
	 	October 14, 2005
	 	12,000 shares,
payable January 1,
2007.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	12,000 shares,
payable on January
1, 2007, if Holman
is employed by the
Company on January
1, 2006.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	12,000 shares,
payable on January
1, 2007, if Holman
is employed by the
Company on January
1, 2007.
	 
	 	 	 	 	 	 
	Richard Howard

	 	Bonus Shares
	 	October 14, 2005
	 	12,000 shares,
payable on January
1, 2007, if Howard
is employed by the
Company on April 4,
2006.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	12,000 shares,
payable on April 4,
2007, if Howard is
employed by the
Company on April 4,
2007.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	12,000 shares,
payable on April 4,
2008, if Howard is
employed by the
Company on April 4,
2008.

-26-

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	# of Shares
	Name	 	Type of Award	 	Grant Date	 	Subject to Award
	Tim Bell

	 	Bonus Shares
	 	October 14, 2005
	 	4,000 shares,
payable on January
1, 2007.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	4,000 shares,
payable on January
1, 2007, if Bell is
employed by the
Company on November
1, 2006.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	4,000 shares,
payable on November
1, 2007, if Bell is
employed by the
Company on November
1, 2007.
	 
	 	 	 	 	 	 
	Brent Mueller

	 	Bonus Shares
	 	October 14, 2005
	 	8,000 shares,
payable on January
1, 2007, if Mueller
is employed by the
Company on February
14, 2006.
	 
	 	 	 	 	 	 
	John C. Garrison

	 	Stock Option
	 	October 14, 2005
	 	An option for
50,000 shares
(options for 10,000
shares are
immediately vested;
options for the
remaining 40,000
shares will vest at
10,000 shares per
year on October 14,
2006, October 14,
2007, October 14,
2008 and October
14, 2009, provided
that Garrison is
serving as a
director of the
Company on the date
such options vest).

-27-

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	# of Shares
	Name	 	Type of Award	 	Grant Date	 	Subject to Award
	James B. Kite

	 	Stock Option
	 	October 14, 2005
	 	An option for
50,000 shares
(options for 10,000
shares are
immediately vested;
options for the
remaining 40,000
shares will vest at
10,000 shares per
year on October 14,
2006, October 14,
2007, October 14,
2008 and October
14, 2009, provided
that Kite is
serving as a
director of the
Company on the date
such options vest).
	 
	 	 	 	 	 	 
	Kevin R. White

	 	Stock Option
	 	October 14, 2005
	 	An option for
50,000 shares
(options for 10,000
shares are
immediately vested;
options for the
remaining 40,000
shares will vest at
10,000 shares per
year on October 14,
2006, October 14,
2007, October 14,
2008 and October
14, 2009, provided
that White is
serving as a
director of the
Company on the date
such options vest).

-28-

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	# of Shares
	Name	 	Type of Award	 	Grant Date	 	Subject to Award
	Ronnie K. Irani

	 	Stock Option
	 	October 14, 2005
	 	An option for
50,000 shares
(options for 10,000
shares are
immediately vested;
options for the
remaining 40,000
shares will vest at
10,000 shares per
year on October 14,
2006, October 14,
2007, October 14,
2008 and October
14, 2009, provided
that Irani is
serving as a
director of the
Company on the date
such options vest).
	 
	 	 	 	 	 	 
	Jon H. Rateau

	 	Stock Option
	 	October 14, 2005
	 	An option for
50,000 shares
(options for 10,000
shares are
immediately vested;
options for the
remaining 40,000
shares will vest at
10,000 shares per
year on October 14,
2006, October 14,
2007, October 14,
2008 and October
14, 2009, provided
that Rateau is
serving as a
director of the
Company on the date
such options vest).

-29-Execution Version

Rule 10b5-1 Stock Purchase Plan 

This Rule 10b5-1 Stock Purchase Plan (this “Purchase Plan”), is entered into on January 14, 2008 by and between Citigroup Global Markets Inc. (“Broker”), BPW Acquisition Corp., a Delaware corporation (the “Company”), and Perella Weinberg Partners Acquisition LP, a Delaware limited partnership (the “Sponsor” and collectively with the Broker and the Company, the “Parties”). 

WHEREAS, Sponsor desires to establish a plan that qualifies for the affirmative defense and safe harbor provided by Rule 10b5-1 (“Rule 10b5-1”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) to purchase shares of common stock, par value $0.001 per share (the “Shares”), of the Company, as described in the Company’s Registration Statement on Form S-1 relating to the initial public offering of the Company. 

WHEREAS, Sponsor desires to engage Broker as its exclusive agent to purchase Shares on its behalf in accordance with this Purchase Plan; and

WHEREAS, Sponsor has established or, prior to effecting transactions under this Purchase Plan will establish, an account (the “Account”) with Broker by executing an account agreement and all other necessary ancillary documents with Broker; 

NOW, THEREFORE, the Parties hereby agree as follows: 

1. Engagement of Broker 

During the term of this Purchase Plan, Broker shall act as Sponsor’s exclusive agent to purchase Shares pursuant to this Purchase Plan. Subject to the terms and conditions set forth herein, Broker hereby accepts such appointment and engagement. 

2. Trading Instructions 

(a) Broker is authorized to begin purchasing Shares as agent for Sponsor as set forth herein pursuant to this Purchase Plan on the later of (i) the day after the Company files an initial preliminary proxy statement (the “Preliminary Proxy Statement”) with the Securities and Exchange Commission relating to a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination (the “Business Combination”), with one or more operating businesses (the “Target”) and (ii) 60 calendar days after termination of the “restricted period” in
connection with the Company’s initial public offering under Regulation M (the “Commencement Date”). Broker shall cease purchasing Shares on the Termination Date (as defined below). The period beginning on the Commencement Date and ending on the Termination Date is referred to herein as the “Plan Period”. For the avoidance of doubt, Broker shall not begin purchasing Shares as agent pursuant to this Purchase Plan, until it receives written notification from the Company and Sponsor of the Commencement Date in accordance with Section 5(a) herein. Such notice shall be given to Broker in writing by facsimile at (646) 862-9799 and (212) 723-8019, Attention: Jill Eisenstein, and confirmed by telephone at (212) 723-7838. 

(b) In accordance with Broker’s customary procedures, Broker will deposit Shares purchased hereunder into the Account against payment to Broker of the purchase price therefor and commissions and other fees in respect thereof. 

(c) Broker will notify Sponsor of all transactions executed under this Purchase Plan pursuant to customary trade confirmations, which shall be provided within 24 hours of each transaction to Perella 

 

 

Weinberg Partners Acquisition LP, Att: General Counsel, by facsimile at (212) 287-3201 confirmed by telephone at (212) 287-3200, with a copy to Richard (Arjay) Jensen at ajensen@pwpartners.com.

(d) (i) On each day on which the American Stock Exchange (the “Exchange”) is open for trading (each, a “Business Day”), Broker shall use commercially reasonable efforts to purchase, as agent and for the account of Sponsor in compliance with Rule 10b-18(b), the lesser of (x) the maximum number of Shares Sponsor is permitted to purchase under Rule 10b-18 on such Business Day and (y) the number of Shares to be purchased pursuant to the Share Repurchase Guidelines set forth on Appendix A hereto, provided, however, that to the extent such purchases would not constitute “Rule 10b-18 purchases” as defined under Rule 10b-18 solely as a result of
Rule 10b-18(a)(13)(iv), Broker may upon the advice of counsel to Broker, disregard any restriction contained in Rule 10b-18(a)(13)(iv)(B) in determining the number of shares that may be purchased pursuant to clause (x) above. 

(ii) The Parties acknowledge that Broker will receive certain underwriting discounts and commissions in connection with the Company’s initial public offering, and the Parties agree that the fees for services provided by Broker pursuant to this Purchase Plan are included in such underwriting discounts and commissions. 

(e) Broker will make, keep and produce promptly upon request a daily time-sequenced schedule of all Share purchases made under this Purchase Plan, on a transaction-by-transaction basis, including (i) size, time of execution and price of purchase; and (ii) the exchange, quotation system, or other facility through which the Share purchase occurred, which obligations are set forth under the heading “Daily Time-Sequenced Schedule Obligations” on Appendix A hereto. 

(f) Sponsor agrees that this Purchase Plan constitutes an irrevocable limit order to purchase Shares pursuant to the terms of this Purchase Plan, including the Share Repurchase Guidelines set forth on Appendix A hereto. 

3. Broker’s Discretion to Deviate from Trading Instructions 

(a) Subject to the Share Repurchase Guidelines and other terms and conditions set forth in this Purchase Plan, Broker shall have full discretion with respect to the execution of all purchases, and Sponsor acknowledges and agrees that Sponsor does not have, and shall not attempt to exercise, any influence over how, when or whether to effect such purchases of Shares pursuant to this Purchase Plan. 

(b) Notwithstanding any provision herein to the contrary, including the provisions of Section 2(d)(i), in the event that, on any Business Day, in the opinion of Broker’s counsel, effecting purchases hereunder would result in a violation of applicable law or a breach of any contract to which Broker or its affiliates are a party or by which it or its affiliates are bound or such purchases would result in a violation of applicable law by Sponsor (collectively, “Restrictions”), Broker may refrain from purchasing Shares or purchase fewer than the otherwise applicable number of Shares to be purchased set forth in the Share Repurchase Guidelines, as determined by Broker, in its discretion with regard to such Restrictions. 

4. Termination Date 

This Purchase Plan shall terminate upon the Termination Date. “Termination Date” means the earliest of: 

(a) the Business Day immediately preceding the record date for the meeting of stockholders at which the Business Combination is to be voted upon by the Company’s stockholders; 

 

 

(b) the Business Day on which the aggregate purchase price for all Shares purchased under this Purchase Plan equals $12,500,000; provided that, for avoidance of doubt, in no event shall the aggregate purchase price for all Shares purchased under this Purchase Plan exceed $12,500,000; 

(c) the date that Broker receives notice that Sponsor has filed a petition for bankruptcy or reorganization, or a petition for bankruptcy has been filed against Sponsor and has not been dismissed within sixty (60) calendar days of its filing; 

(d) the date that Sponsor or any other person publicly announces a tender or exchange offer with respect to the Shares or a merger, acquisition, reorganization, recapitalization or other similar business combination or transaction as a result of the consummation of which the Shares would be exchanged or converted into cash, securities or other property other than, in each case, in connection with the Business Combination; 

(e) the date following the date on which the Company publicly announces that it does not intend to proceed with the Business Combination that was the subject of the Preliminary Proxy Statement; and 

(f) such time as Broker determines, in its sole discretion, that it is prohibited for any reason from engaging in purchasing activity as Sponsor’s agent under this Purchase Plan. 

If Broker determines that any event specified in Paragraphs (b), (c), (d), (e), or (f) of this Section 4 has occurred, Broker shall promptly notify Sponsor that this Purchase Plan has terminated pursuant to the terms of this Section 4 and the date of such termination. 

5. Representations, Warranties and Covenants 

(a) From the date hereof until the Termination Date, each of the Company and Sponsor agrees not to discuss with Broker the Company’s and/or Target’s business, operations or prospects or any other information likely to be related to the value of the Shares or likely to influence a decision to sell Shares. Notwithstanding the preceding sentence, with the approval of counsel to Broker, Sponsor and the Company may communicate with Broker personnel who are not responsible for, and have no ability to influence, the execution of this Purchase Plan. Notwithstanding the first sentence in this paragraph, the Company and Sponsor shall jointly provide Broker with written notification of (i) the Commencement Date, whether the shareholders of the Target have voted on the Business Combination prior to the Commencement Date, and the Per Share Amount (as defined in
Appendix A) as soon as practicable after the Preliminary Proxy Statement is filed by the Company with the Securities and Exchange Commission and (ii) the mailing of a proxy or other solicitation materials to shareholders of the Target with respect to a vote on the Business Combination or any fact that would make purchases under this Purchase Plan unlawful pursuant to Regulation M or otherwise, as soon as such fact is known to the Company or Sponsor.

(b) Sponsor represents and warrants to Broker that it has duly authorized this Purchase Plan and the transactions contemplated hereby. 

(c) Sponsor agrees that it will not, and the Company agrees with Broker that neither it nor any “affiliated purchaser” as defined in Rule 10b-18 will, make any purchases of blocks as described in the proviso in Rule 10b-18(b)(4) during the four full calendar weeks immediately preceding the Commencement Date. 

(d) Sponsor represents and warrants to Broker that it is not aware of any material, nonpublic information concerning the Company or its securities (“Material, Nonpublic Information”) and is 

 

 

entering into this Purchase Plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1. 

(e) Broker represents and warrants to the Company and Sponsor that it has implemented reasonable policies and procedures, taking into consideration the nature of Broker’s business, to ensure that individuals making investment decisions will not violate the laws prohibiting trading on the basis of Material, Nonpublic Information. These policies and procedures include those that restrict any purchase or sale, or the causing of any purchase or sale, of any security as to which Broker has Material, Nonpublic Information, as well as those that prevent such individuals from becoming aware of or being in possession of Material, Nonpublic Information. 

(f) From the date hereof until the Termination Date, Sponsor agrees not to enter into any hedging transaction with respect to any Shares. 

(g) Each of the Company and Sponsor agrees that, during the period from the Commencement Date to the date falling that number of days following the Termination Date equal to the “restricted period” applicable to the Company, it will not engage in any “distribution” with respect to which the Shares are a “covered security” (as such terms are defined in Regulation M) or any other activity that would prohibit repurchase of Shares by Broker. 

(h) Each of the Company and Sponsor represents and warrants that as of the time of execution of this Purchase Plan, it has not entered into any similar plan or agreement with respect to Shares or any security or interest convertible into or exchangeable for Shares. Each of the Company and Sponsor agrees that without the prior written consent of Broker, it shall not, during the Plan Period, directly or indirectly (including, without limitation, by means of a cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share), or any security convertible into or exchangeable for Shares. 

(i) Each of the Company and Sponsor agrees to inform Broker (i) of any purchases made during the Plan Period by an “affiliated purchaser” as defined in Rule 10b-18 promptly upon becoming aware of such purchases and (ii) if any “affiliated purchaser” intends to make any such purchases, promptly upon being informed of such intention. 

6. Compliance with the Securities Laws 

(a) It is the intent of the parties that this Purchase Plan comply with the requirements of Rule 10b5-1(c)(1)(i)(B), and the parties agree that this Purchase Plan shall be interpreted to comply with the requirements of Rule 10b5-1(c). 

(b) Broker agrees to use its commercially reasonable efforts to satisfy the conditions of Rule 10b-18(b) as contemplated in Section 2(d)(i) in effecting purchases of Shares pursuant to this Purchase Plan. 

7. Indemnification 

(a) Sponsor agrees to indemnify and hold harmless Broker (and its directors, officers, employees and affiliates) from and against all claims, liabilities, losses, damages and expenses (including reasonable attorney’s fees and costs) arising out of or attributable to (i) any material breach by the Company or Sponsor of this Purchase Plan (including the Company’s and Sponsor’s representations and warranties), and (ii) any violation by the Company or Sponsor of applicable laws or regulations with respect to the transactions contemplated by this Purchase Plan. This indemnification will survive the termination of this 

 

 

Purchase Plan. Sponsor will have no indemnification obligations hereunder in the case of gross negligence or willful misconduct of Broker or any other indemnified person or if Broker fails to comply with Section 6(b) hereof (unless such failure arises out of or is attributable to a breach by the Company or Sponsor of its representations, warranties or obligations hereunder), as determined by a final, non-appealable judgment of a court of competent jurisdiction.

(b) Notwithstanding any other provision herein, no party hereto will be liable to the other for (i) special, indirect, punitive, exemplary, or consequential damages, or incidental losses or damages of any kind, including but not limited to lost profits, lost savings, loss of use of facility or equipment, regardless of whether arising from breach of contract, warranty, tort, strict liability or otherwise, and even if advised of the possibility of such losses or damages or if such losses or damages could have been reasonably foreseen, or (ii) any failure to perform or for any delay in performance that results from a cause or circumstance that is beyond its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common carrier or utility systems, severe weather, market disruptions or other causes commonly known
as “acts of God.” 

(c) The Company and Sponsor acknowledge and agree that Broker has not provided the Company or Sponsor with any tax, accounting or legal advice with respect to this Purchase Plan, including whether Sponsor would be entitled to any of the affirmative defenses under Rule 10b5-1 or entitled to the safe harbor of Rule 10b-18. 

8. General 

(a) This Purchase Plan (including any Appendices, Annexes or Exhibits) constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes any previous or contemporaneous agreements, understandings, proposals or promises with respect thereto, whether written or oral. 

 (b) This Purchase Plan will be governed by, and construed in accordance with, the laws of the State of New York, without regard to such State’s conflict of laws rules. 

 (c) This Purchase Plan and each party’s rights and obligations hereunder may not be assigned or delegated without the written permission of the other party and shall inure to the benefit of each party’s successors and permitted assigns, whether by merger, consolidation or otherwise. 

(d) This Purchase Plan may be executed in two or more counterparts and by facsimile signature. 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the undersigned have signed this Purchase Plan as of the date first written above. 

 

	
                         
 	
                         
 	
                         
 	
                        Citigroup Global Markets Inc.
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
      
 /s/ JILL M. EISENSTEIN
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: Jill M. Eisenstein
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: Vice President
 

 

	
                         
 	
                         
 	
                         
 	
                        BPW Acquisition Corp.
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
                        
 /s/ MICHAEL E. MARTIN
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: Michael E. Martin
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: Chief Executive Officer
 

 

	
                         
 	
                         
 	
                         
 	
                        Perella Weinberg Partners Acquisition LP
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                        By: PWP Acquisition GP, LLC, its general partner 
 

 

	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
                        
 /s/ JOSEPH R. PERELLA
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: Joseph R. Perella
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: Authorized Signatory
 

 

 

APPENDIX A 

Share Repurchase Guidelines 

 

	
                        Purchase Price Range
 	
                         
 	
                        Number of Shares to be Purchased
 
	
                        $____ [Per Share Amount] or below1 
 	
                         
 	
                        Broker is to buy $12.5 million of Shares (AMEX: BPW), excluding commissions, subject to the conditions of Rule 10b-18(b) and less the aggregate purchases of any Shares previously purchased.
 

Daily Time-Sequenced Schedule Obligations 

 

	
                        Obligor
 	
                         
 	
                          Obligation
 
	
                        Broker 
 	
                         
 	
                        Broker is to make, keep and produce promptly upon request a daily time-sequenced schedule of all Share purchases made under this Purchase Plan, on a transaction-by-transaction basis, including:
 
	
                         
 	
                         
 	
                        •           size, time of execution, price of purchase; and
 
	
                         
 	
                         
 	
                        •           the exchange, quotation system, or other facility through which the Share purchase occurred.
 

All Share amounts and limit prices listed herein shall be increased or decreased to reflect stock

splits should they occur.

	
                        1
 	
                        The Per Share Amount shall be the amount per share held in the Company’s trust account, as reported in the Preliminary Proxy Statement.

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