Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - EZ English Online Inc. - Exhibit 10.1

Exhibit 10.1

This User Agreement ("Agreement") is a contract between you and
PayPal, Inc. and applies to your use of the PayPalTM payment service and any
related products and services available through www.paypal.com (collectively the
"Service"). If you do not agree to be bound by the terms and conditions of this
Agreement, please do not use or access our Services. 

You must read, agree with, and accept all of the terms and
conditions contained in this Agreement and the Privacy Policy, which include
those terms and conditions expressly set out below and those incorporated by
reference, before you may become a member of PayPal. We strongly recommend that,
as you read this Agreement, you also access and read the information contained
in the other pages and websites referred to in this document, as they may
contain further terms and conditions that apply to you as a PayPal user. Please
note: underlined words and phrases are links to these pages and websites. By
accepting this Agreement, you also agree that your use of other PayPal websites
and Services will be governed by the terms and conditions posted on those
websites. 

For additional information about the Service and how it works,
please also consult the PayPal Help Center.

We may amend this Agreement at any time by posting the amended
terms on our site. Except as stated below, all amended terms shall be effective
30 days after they are initially posted on our site. Upcoming changes will be
posted on the "Policy Updates" page, accessible from "Policy Updates" link on
the Account Overview page once you have logged in. In addition, you can set your
Preferences to receive email notification of all policy updates. You may review
the current Agreement prior to initiating a transaction at any time at our
User Agreement page. 

In this Agreement, "you" or "your" means any person or entity
using the Service ("Users"). Unless otherwise stated, "PayPal," "we" or "our"
will refer collectively to PayPal, Inc. and its subsidiaries including PayPal
Asset Management Inc. Unless otherwise specified, all references to a "bank" in
this Agreement include savings associations and credit unions, and all
references to a "credit card" include Visa- and MasterCard-branded debit cards.

This Agreement was last modified on January 20, 2006.

	1. 	
      Eligibility. In order to use the Service, you must
      register for a Personal, Premier, or Business account. Users may only hold
      one Personal account and either one Premier or one Business account. Our
      Services are only available to individuals or businesses that can form
      legally binding contracts under applicable law. Without limiting the
      foregoing, our Service is not available to minors (under 18), persons who
      are suspended from our Service, or to persons who present an unacceptable
      level of credit risk. In order to receive credit card funded payments or
      use the Service to conduct business or in conjunction with a business, you
      must upgrade to or register for a Premier or Business
  account.

	
2. 		
The Legal Relationship between You and PayPal.

	
	 	 
		
2.1 Agency Relationship. PayPal acts as a facilitator to help you accept payments from and make payments to third parties. We act as your agent based upon your direction and your requests to use our Services that require us
to perform tasks on your behalf. PayPal will at all times hold your funds separate from its corporate funds, will not use your funds for its operating expenses or any other corporate purposes, and will not voluntarily make funds available to its
creditors in the event of bankruptcy or for any other purpose. You acknowledge that (i) PayPal is not a bank and the Service is a payment processing service rather than a banking service, and (ii) PayPal is not acting as a trustee, fiduciary or
escrow with respect to your funds, but is acting only as an agent and custodian.

	
	 	 
		
You are not required to carry a balance in your PayPal account in order to use the Service. If you do carry a U.S. Dollar balance in your PayPal account and do not enroll in the PayPal Money Market Fund, PayPal will pool your
funds together with funds from other Users, and will place those funds in accounts at one or more FDIC-insured banks ("Pooled Accounts"). Those funds may be eligible for FDIC pass-through insurance. Any balances that you hold in currencies other
than U.S. Dollars will also be pooled and placed in bank accounts on your behalf, but will not be eligible for FDIC insurance.

	
	 	 
		
You agree that you will not receive interest or other earnings on the funds that PayPal handles as your agent. PayPal may earn interest on those funds, or may receive a reduction in fees or expenses charged for banking services by
the banks that hold your funds.

	
	 	 
		
If you enroll in the Money Market Fund, PayPal's subsidiary PayPal Asset Management Inc. will act as your agent to transfer any U.S. Dollar balance in your PayPal account on a daily basis to purchase shares in the Money Market
Fund. Thereafter, payments that you send through PayPal will be funded by a redemption of your shares in the Money Market Fund. For more information on the Money Market Fund, please review the prospectus.

	
	 	 
		
By initiating and sending payments through the Service or adding funds to your balance, you appoint PayPal as your agent to obtain the funds on your behalf and to transfer the funds to the recipient that you designate or to a
Pooled Account, subject to the terms and restrictions of this Agreement. PayPal will obtain the funds first by debiting your funds in the Pooled Accounts or redeeming your shares in the Money Market Fund, if any. If this is not sufficient to fund
your payment fully, PayPal will obtain the remaining funds per your instructions by debiting a bank account that you designate or charging your credit card. When you send a payment, until that payment is accepted by the recipient (which may occur
instantly), you remain the owner of those funds and PayPal holds those funds as your agent, but you will not be able to withdraw those funds or send the funds to any other recipient unless the initial transaction is cancelled.

	
	 	 
		
By receiving payments through the Service, you appoint PayPal as your agent to cause the funds to be deposited on your behalf in the Pooled Accounts until you further instruct PayPal with respect to the transmission of your funds.
Through the PayPal website, you may provide instructions to withdraw the

	

	 	funds, enroll in an automatic sweep of the funds into
        the PayPal Money Market Fund or transfer the funds to a third party, in
        each case subject to the terms and restrictions of this Agreement. If
        you receive a notice that a payment has been sent to you through PayPal
        but you have not registered for the Service, PayPal will not become your
        agent and you will have no claim to those funds unless and until you register
        for the Service and indicate your acceptance of the payment. If you register
        for a Premier or Business account and intend to accept credit card payments,
        you will be receiving services provided by Wells Fargo Bank, N.A. and
        Wells Fargo Merchant Services, LLC (collectively "Wells Fargo"), and the
        terms of the Premier and Business Account
        Policy will govern your rights, obligations and liabilities
        with respect to such credit card transactions. 

       2.2 PayPal is only a Payment Service Provider.
        PayPal acts as a payment service provider by creating, hosting, maintaining
        and providing our Service to you via the Internet. We do not have any
        control over the products or services that are paid for with our Service.
        We cannot ensure that a buyer or a seller you are dealing with will actually
        complete the transaction. 

       2.3 Identity Authentication. We use many techniques
        to identify our users when they register on our site. Verification of
        Users is only an indication of increased likelihood that a User's identity
        is correct. You authorize PayPal, directly or through third parties, to
        make any inquiries we consider necessary to validate your registration.
        This may include ordering a credit report and performing other credit
        checks or verifying the information you provide against third party databases.
        However, because user verification on the Internet is difficult, PayPal
        cannot and does not guarantee any user's identity. 

       2.4 Release. In the event that you have a dispute
        with one or more users, you release PayPal (and our officers, directors,
        agents, subsidiaries, joint ventures and employees) from any and all claims,
        demands and damages (actual and consequential) of every kind and nature
        arising out of or in any way connected with such disputes. If you are
        a California resident, you waive California Civil Code §1542, which
        says: "A general release does not extend to claims which the creditor
        does not know or suspect to exist in his favor at the time of executing
        the release, which if not known by him must have materially affected his
        settlement with the debtor." 

       2.5 No Warranty. WE, OUR PARENT, SUBSIDIARIES,
        EMPLOYEES AND OUR SUPPLIERS PROVIDE OUR SERVICES "AS IS" AND WITHOUT ANY
        WARRANTY OR CONDITION, EXPRESS, IMPLIED OR STATUTORY. WE, OUR PARENT,
        SUBSIDIARIES, EMPLOYEES AND OUR SUPPLIERS SPECIFICALLY DISCLAIM ANY IMPLIED
        WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE
        AND NON-INFRINGEMENT. PayPal shall make reasonable efforts to ensure that
        requests for electronic debits and credits involving bank accounts, credit
        cards, and check issuances are processed in a timely manner and but we
        make no representations or warranties regarding the amount of time needed
        to complete processing because our Service is largely dependant upon many
        factors outside of our control, such as delays in the banking system or
        the U.S. or international mail service. Some states do not allow the disclaimer
        of implied warranties, so the foregoing disclaimer may not apply to you.
        This warranty gives you specific legal rights and you may also have other
        legal rights that vary from state to state. 

 

	 	The above clause is completely separate from PayPal's
        Money Back Guarantee, which you may choose to purchase at the time of
        an eligible transaction, and which assigns to you certain privileges,
        as defined in the Money Back Guarantee Policy.

      2.6 Limitation of Liability. IN NO EVENT SHALL WE,
        OUR PARENT, SUBSIDIARIES, EMPLOYEES OR OUR SUPPLIERS BE LIABLE FOR LOST
        PROFITS OR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT
        OF OR IN CONNECTION WITH OUR WEB SITE, OUR SERVICE, OR THIS AGREEMENT
        (HOWEVER ARISING, INCLUDING NEGLIGENCE). Some states do not allow the
        exclusion or limitation of incidental or consequential damages so the
        above limitation or exclusion may not apply to you. 

      OUR LIABILITY, AND THE LIABILITY OF OUR PARENT, SUBSIDIARIES,
        EMPLOYEES AND SUPPLIERS, TO YOU OR ANY THIRD PARTIES IN ANY CIRCUMSTANCE
        IS LIMITED TO THE ACTUAL AMOUNT OF DIRECT DAMAGES. 

      2.7 Indemnification. You agree to indemnify and
        hold PayPal, its parent, subsidiaries, affiliates, officers, directors
        and employees harmless from any claim or demand (including attorneys'
        fees) made or incurred by any third party due to or arising out of your
        breach of this Agreement or the documents it incorporates by reference,
        or your violation of any law or the rights of a third party relating to
        your use of the Service. 

      2.8 Liability for Violations of the Acceptable Use Policy.
        If you engage in the following behavior, PayPal may fine you, as explained
        below. 

	 	i. 	
      Using the PayPal service to receive payments for any
      sexually oriented or obscene materials or services in violation of
      PayPal’s Mature Audiences
  Policy.

	 	 	 
	 	ii. 	
      Using the PayPal service to receive payments for any
      narcotics, other controlled substances, steroids or prescription drugs in
      violation of PayPal’s Prescription Drugs and
      Devices Policy or the Drugs and Drug
      Paraphernalia Policy.

	 	 	 
	 	iii. 	
      Using the PayPal service to receive payments for wagers,
      gambling debts or gambling winnings, regardless of the location or type of
      gambling activity.

	 	You and PayPal agree that the damages that PayPal will sustain as a result
      of the behavior outlined above will be substantial, including (without limitation)
      fines and other related expenses from its payment processors and service
      providers, but may be extremely difficult and impracticable to ascertain.
      In the event that you engage in such activities, then PayPal may fine you
      $500.00 USD and/or PayPal may take legal action against you to recover losses
      that are in excess of the amount fined. You acknowledge and agree that $500.00
      USD is presently a reasonable minimum estimate of PayPal’s damages,
      considering all currently existing circumstances, including (without limitation)
      the relationship of the sum to the range of harm to PayPal that reasonably
      could be anticipated and the anticipation that proof of actual 

		
      damages may be impractical or extremely difficult. You
      agree that PayPal is entitled to deduct such fines directly from any
      existing balance in the offending account, or any other PayPal account
      owned by you.

	 	 
		
      If you use the PayPal service in a manner that violates
      theAcceptable Use Policy, including but
      not limited to the three categories described above, your account will be
      subject to limitation or immediate termination, as stated in the Closing Accounts and Limiting Account Access
      Policy.

	 	 
		
      You further understand that, if you use the PayPal
      service in a manner that violates the Acceptable Use Policy, including but
      not limited to the three categories described above, PayPal may incur
      substantial liability and/or suffer significant damages, including
      (without limitation) fines and other related expenses from its payment
      processors and service providers. By selling goods or services (including
      access to content) in contravention of the Acceptable Use Policy or the
      Restricted Activities section of this User Agreement (currently Section
      7.2), you acknowledge liability to PayPal for any and all damages suffered
      by PayPal. Without limiting the foregoing, you agree to reimburse PayPal
      for any and all costs, expenses, and fines levied on PayPal by its payment
      processors and/or service providers as a result of your
  activities.

	 	 
		
      You agree that, if either you or PayPal commence
      litigation or arbitration in connection with this paragraph, the
      prevailing party is entitled to recover reasonable attorneys’ fees and any
      other costs incurred in such proceeding in addition to any other relief to
      which the prevailing party may be entitled.

	 	 
	3. 	
      Fees. All fees are set forth in the Fee Schedule.
      All fees will be assessed in the currency of the payment. Additional
      information about PayPal's fees is available in the Fees Policy. Your account and all transactions
      are made and displayed in U.S. dollars unless otherwise specified and may
      be subject to exchange rates.

	 	 
	4. 	
      Non-U.S. Use. To be eligible for an account, you
      must be a resident of the United States or one of the approved countries
      listed below:

	o 	Anguilla 	o 	France 	o 	Netherlands 
	o 	Argentina 	o 	Germany 	o 	New Zealand 
	o 	Australia 	o 	Greece 	o 	Norway 
	o 	Austria 	o 	Hong Kong 	o 	Poland 
	o 	Belgium 	o 	Hungary 	o 	Portugal 
	o 	Brazil 	o 	Iceland 	o 	Singapore 
	o 	Canada 	o 	India 	o 	Slovakia 
	o 	Chile 	o 	Ireland 	o 	Slovenia 
	o 	China 	o 	Israel 	o 	South Africa 
	o 	Costa Rica 	o 	Italy 	o 	South Korea 
	o 	Cyprus 	o 	Jamaica 	o 	Spain 
	o 	Czech 	o 	Japan 	o 	Sweden 
	  	Republic	o 	Latvia 	o 	Switzerland 
	o 	Denmark 	o 	Lithuania 	o 	Taiwan 
	o 	Dominican 	o 	Luxembourg 	o 	United 

	  	Republic 	o 	Malta 	  	Kingdom 
	o 	Estonia 	o 	Mexico 	o 	Turkey 
	o 	Finland 	  	  	o 	Malaysia 
	  	  	  	  	o 	Thailand 
	  	  	  	  	o 	Venezuela 
	  	  	  	  	o 	Ecuador 
	  	  	  	  	o 	Uruguay 

		 Countries marked with a in the above table
        may withdraw funds from their PayPal account to a local bank account,
        either electronically or by bank draft, and are considered "Withdrawal
        Countries".

	 	 	 
		 Non-U.S. Users in some countries may not use
        the Service to receive payments, and may only use the Service to send
        payments. These countries are designated on the PayPal Non-U.S. Accounts
        page. If you are an Non-U.S. User, you warrant that you are violating
        no law or regulation by your use of PayPal.

	 	 	 
	5. 	 Receiving Payments.

	 	 	 
		5.1 	 Credit Card Funded Payments. The only accounts
        that can receive credit card funded payments are Premier and Business
        Accounts. Personal Accounts that receive credit card funded payments may
        accept the payment by upgrading to a Premier or Business Account, or they
        will have to deny the payment. Personal Accounts may receive non-credit
        card funded payments for free. By accepting a credit card payment, you
        agree that you are responsible for the payment if it is reversed. If such
        reversal occurs on a credit card funded payment made to your account,
        we will reverse the payment and debit your PayPal account balance to pay
        for the reversal unless the transaction is covered by the Seller Protection
        Policy. If there are insufficient funds in your PayPal balance, you agree
        to reimburse PayPal through other means, as described in the Payments (Sending, Receiving, and Withdrawing) Policy.

	 	 	 
		5.2 	 Removal of Expired Cards. We will notify you
        of expired credit cards in your account and provide you the opportunity
        to update those cards before we remove them as a funding source in your
        account.

	 	 	 
		5.3 	 Withdrawals. In order to withdraw money from
        your PayPal account we require you to provide PayPal with a number of
        forms of identification as further described and protected in our Privacy
        Policy. We require this information to authenticate your identity and
        to determine how much you may withdraw from your account per month. We
        may limit withdrawals and require additional information from you depending
        upon your location (U.S. or international), credit rating, and other factors.
        Generally, in order to withdraw more than $500.00 USD per month, we require
        you to complete some authentication procedures, such as confirming: your
        email address, your bank account, and your social security number. You
        may withdraw funds by direct deposit to the bank account you have on file
        with us or you may elect to receive a physical check for a nominal processing
        fee as disclosed in our Fee Schedule. Generally, checks will only be sent
        to Confirmed Addresses.

		
Importantly, if you are an Non-U.S. User and do not reside in a Withdrawal Country, please note that you may not be able to withdraw funds from your PayPal Account and should therefore only accept payments if you know you will
send payments in equal amounts out of your account. For more details and guidelines about withdrawals, please refer to our Payments Policy.

	
	 	 	 
	
6. 		
Sending Payments.

	
	 	 	 
		
6.1 		
Sending Payments. In order to send payments through our Service we require you to provide PayPal with a number of forms of identification as further described and protected in our Privacy Policy. We require this information
to authenticate your identity and to determine how much you may send with your account. We may require additional information from you depending on your location and other factors. Based on the information you provide, we will determine your Sending
Limit. Generally, accounts that have a confirmed email address and credit card on file may send up to $2,000.00 USD. Accounts that are Verified by adding and confirming a bank account will receive a higher Sending Limit or no limit at all.

	
	 	 	 
		
6.2 		
Enrolling in the Expanded Use Program. Non-U.S. members (and some U.S. members) may be asked to enroll in the Expanded Use Program before they may send any payments. American Express has decided to decline PayPal credit
card transactions that are funded with an American Express Corporate card. As a result, any attempts to register or use an American Express Corporate Card will be denied. Some accounts, at PayPal's discretion, may have a higher or lower limit before
completing enrollment in the Expanded Use Program. Some transactions, at PayPal's discretion, may not apply towards the limit. To obtain your Expanded Use Number, you must pay a Expanded Use Fee, log in to your PayPal account, and enter the four-
digit Expanded Use Number associated with the charge. After you have successfully entered your Expanded Use Number, you will receive a bonus on the next PayPal payment you send. This bonus may take up to 24 hours to process and be reflected in your
PayPal account balance. This Expanded Use Enrollment will be complete and your sending limit lifted if and when you correctly enter your Expanded Use Number on the PayPal website. If you remove the funding source (e.g. the bank account or credit
card) used to enroll in the Expanded Use Program, PayPal may require you to enroll in the Expanded Use Program again.

	
	 	 	 
		
6.3 		
Refused Payments. When you send a payment to a third party through our Service, the recipient is not required to accept the payment, even if the recipient is already registered with PayPal. The recipient may return the
payment or, in some cases, use the PayPal Service to deny payments that you send. Any payments sent through PayPal that are denied or unclaimed by a recipient will be returned to you on the earlier of: (a) the date of such denial, or (b) 30 days
after the date the payment is sent. For more details and guidelines about Sending Payments, please refer to our Payments Policy.

	
	 	 	 
		
6.4 		
Electronic Transfers. When you make a payment through PayPal that is funded with Instant Transfer or eCheck, and when you initiate an "Add Funds"

	

		
transaction you are requesting an electronic transfer from your bank account. Upon such request, PayPal will make electronic transfers via the Automated Clearing House (ACH) system from your U.S. bank account in the amount you
specify. You agree that such requests constitute your authorization for such transfers. PayPal will never make transfers from your bank account without your authorization. PayPal provides you protection against unauthorized withdrawals from your
bank account under the terms of the Electronic Fund Transfer Rights and Error Resolution Policy below.

	
	 	 	 
		
6.5 		
Right of Merchant Recipients to Delay Payment Processing. When you authorize a payment to be sent to certain merchant users (who hold Premier or Business Account(s)), your payment instruction will be valid for a variable
period of time. Your payment will not be treated as transferred to the merchant until the merchant user chooses to process the payment within the period your payment instruction is valid.

	
	 	 	 
			
We will complete your payment transfer by first debiting your balance (if any). If at the time you authorize the payment you have sufficient balance to make the payment, we will, at this time, debit an amount equal to the payment
from your balance and highlight the transaction as pending. You will not be able to access this amount even if the merchant has not yet completed the processing of this payment.

	
	 	 	 
			
If you do not hold a sufficient amount in your balance at the time you authorized the payment, we will complete the payment transfer by firstly debiting your balance (if any) at the time you made the authorization. The transaction
will be highlighted as pending and you will not be able to access this amount even if the merchant has not yet completed the processing of this payment. We will subsequently obtain the remaining e-money by debiting your registered bank account,
debit card or credit card which you specify at the time of authorization as your back up funding source at the time the payment is processed.

	
	 	 	 
			
Between the time you authorize a payment and the time the payment is processed, the merchant may amend the payment amount (for example, to account for taxes, postage or amendments to the purchase you made with the merchant). You
agree, at the time of authorization, to authorize a payment to be made to the merchant up to the amount which appears as the maximum amount on the payment authorization page to include any additional amounts which may be payable by you to the
merchant, as subsequently agreed by you and the merchant. You further agree that we are not required to verify this additional amount with you at the time the payment is transferred and that we may transfer any amount up to the maximum amount on the
basis of your authorization and upon receiving instructions from the merchant of the final payment amount.

	
	 	 	 
	
7. 		
Your Information and Restricted Activities

	
	 	 	 
		
7.1 		
Definition. "Your Information" is defined as any information you provide to us or other users in the registration, payment process, stores or other

	

	 	features of our Service. You are solely responsible
        for Your Information, as we act as a passive conduit for your online distribution
        and publication of Your Information. 

       7.2 Restricted Activities. Your Information and
        your activities (including your payments and receipt of payments) through
        our Service shall not: (a) be false, inaccurate or misleading; (b) be
        fraudulent or involve the sale of counterfeit or stolen items; (c) consist
        of providing yourself a cash advance from your credit card (or helping
        others to do so), (d) be related in any way to gambling and/or gaming
        activities, including but not limited to payment or the acceptance of
        payments for wagers, gambling debts or gambling winnings, regardless of
        the location or type of gambling activity (including online and offline
        casinos, sports wagering and office pools); (e)violate PayPal's Acceptable
        Use Policy; (f) infringe on any third party's copyright, patent, trademark,
        trade secret or other property rights or rights of publicity or privacy;
        (g) violate any law, statute, ordinance, contract or regulation (including,
        but not limited to, those governing financial services, consumer protection,
        unfair competition, antidiscrimination, or false advertising); (h) be
        defamatory, trade libelous, unlawfully threatening or unlawfully harassing;
        (i) be obscene or contain child pornography; (j) contain any viruses,
        Trojan horses, worms, time bombs cancelbots, easter eggs or other computer
        programming routines that may damage, detrimentally interfere with, surreptitiously
        intercept or expropriate any system, data or other personal information;
        or (k) create liability for us or cause us to lose (in whole or in part)
        the services of our ISP's or other suppliers. If you use, or attempt to
        use the Service for purposes other than sending and receiving payments
        and managing your account, including but not limited to tampering, hacking,
        modifying or otherwise corrupting the security or functionality of Service,
        your account will be terminated and you will be subject to damages and
        other penalties, including criminal prosecution where available. 

       7.3 License. Solely to enable PayPal to use the
        information you supply us with, so that we are not violating any rights
        you might have in that information, you agree to grant us a non-exclusive,
        worldwide, royalty-free, perpetual, irrevocable, sublicensible (through
        multiple tiers) right to exercise the copyright, publicity, and database
        rights (but no other rights) you have in Your Information, in any media
        now known or not currently known, with respect to Your Information. PayPal
        will use and protect Your Information in accordance with our Privacy Policy.
      

       7.4 Trademarks. PayPal.com, PayPal, and all related
        logos, products and services described in this website are either trademarks
        or registered trademarks of PayPal, Inc., or its licensors, and (aside
        from the circumstances described below) may not be copied, imitated or
        used, in whole or in part, without the prior written permission of PayPal.
        In addition, all page headers, custom graphics, button icons, and scripts
        are service marks, trademarks, and/or trade dress of PayPal and may not
        be copied, imitated, or used, in whole or in part, without the prior written
        permission of PayPal. 

       Notwithstanding the above, HTML logos provided by PayPal
        through its Affiliate Program, Website Payments features, or Auctions
        Tools features ("Logos"), may be used without prior written consent for
        the purpose of directing web traffic to the Service. These Logos may not
        be altered, 

		 modified, or changed in any way, or used in a manner
        that is disparaging to PayPal or the Service. Logos may not be displayed
        in any manner that implies sponsorship or endorsement by PayPal. PayPal
        is a payment service, and no partnership, joint venture, employee-employer
        or franchiser-franchisee relationship is intended or created by this Agreement.

	 	 
	 8. 	 Access and Interference. Our web site contains
        robot exclusion headers and you agree that you will not use any robot,
        spider, other automatic device, or manual process to monitor or copy our
        web pages or the content contained herein without our prior expressed
        written permission. You agree that you will not use any device, software
        or routine to bypass our robot exclusion headers, or to interfere or attempt
        to interfere with the proper working of the PayPal site or any activities
        conducted on our site. You agree that you will not take any action that
        imposes an unreasonable or disproportionately large load on our infrastructure.
        Much of the information on our site is proprietary or is licensed to PayPal
        by our users or third parties. You agree that you will not copy, reproduce,
        alter, modify, create derivative works, publicly display or frame any
        content (except for Your Information) from our web site without the prior
        expressed written permission of PayPal or the appropriate third party.
        If you use, or attempt to use the Service for purposes other than sending
        and receiving payments and managing your account, including but not limited
        to tampering, hacking, modifying or otherwise corrupting the security
        or functionality of Service, your account will be terminated and you will
        be subject to damages and other penalties, including criminal prosecution
        where available.

	 	 
	 9. 	 Privacy and Security. We do not sell or rent
        your personal information to third parties for marketing purposes without
        your consent and we only use Your Information as described in the Privacy
        Policy. We view protection of users' privacy as a very important principle.
        We understand clearly that you and Your Information are one of our most
        important assets. We store and process Your Information on computers located
        in the United States that are protected by physical as well as technological
        security devices. You should only log in to your PayPal account on a page
        which begins with https://www.paypal.com/. All of our pages begin with
        https://www.paypal.com/ and therefore you should not use any other site
        that does not begin as such. We use third parties to verify and certify
        our privacy principles. Our current Privacy Policy is available at https://www.paypal.com/cgi-bin/webscr?cmd=p/gen/privacy-outside.
        If you object to your information being transferred or used in this way,
        please do not use our Services.

	 	 
	 10. 	 Termination or Closing Your Account. You may
        close your account at any time by clicking the Close Account link
        in your Profile on the PayPal website. Upon closure of an account, any
        pending transactions will be cancelled and any balances associated with
        Redemption Codes (for programs such as eBay Anything Points, Gift Certificates,
        or Coupons) will be forfeited. Any funds that we are holding in custody
        for you at the time of closure, less any applicable fees, will be paid
        to you by check, assuming all withdrawal related authentication requirements
        have been fulfilled (for example, you may not use closure of your account
        as a means of evading withdrawal limits on new

		 Unverified users). You may not use closure
        of your account as a means of evading investigation - if an investigation
        is pending at the time you close your account, PayPal may continue to
        hold your funds for up to 180 days as appropriate to protect PayPal against
        the risk of reversals. If you are later determined to be entitled to some
        or all of the funds in dispute, PayPal will release those funds to you.
        You will remain liable for all obligations related to your account even
        after such account is closed. If you do not access your account for a
        period of three years, it will be terminated. After the date of termination,
        we will use the information you provided to try to send you any funds
        that we are holding in custody for you. If that information is not correct,
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July 14, 2005 at any time, or by calling (402) 935-2050 from 6 AM to midnight Central Time. Additionally, you may report complaints to the Complaint Assistance Unit of the Division of Consumer Services of the Department of Consumer Affairs by
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Financial Services in writing at 200 East Gaines Street, Tallahassee, Florida, 32399, or by telephone at 1-800-342-2762.SCHNITZER STEEL INDUSTRIES, INC.    Exhibit 10.1 to Form 8-K      www.EXFILE.com   (888)775-4789

    EXHIBIT
      10.1

    

    SCHNITZER
      STEEL INDUSTRIES, INC.

    1993
      STOCK INCENTIVE PLAN

    (as
      amended as of January 30, 2006)

    

    1.  Purpose.
      The
      purpose of this 1993 Stock Incentive Plan (the “Plan”) is to enable Schnitzer
      Steel Industries, Inc. (the “Company”) to attract and retain the services of
      (1) selected employees, officers and directors of the Company or of any
      subsidiary of the Company and (2) selected nonemployee consultants and
      advisors to the Company.

     

    2.  Shares
      Subject to the Plan.
      Subject
      to adjustment as provided below and in paragraph 13, the shares to be
      offered under the Plan shall consist of Class A Common Stock of the
      Company, and the total number of shares of Class A Common Stock that may be
      issued under the Plan shall not exceed 7,200,000 shares. The shares issued
      under
      the Plan may be authorized and unissued shares or reacquired shares. If an
      option, stock appreciation right or performance-based award granted under the
      Plan expires, terminates or is cancelled, the unissued shares subject to such
      option, stock appreciation right or performance-based award shall again be
      available under the Plan. If shares sold or awarded as a bonus under the Plan
      are forfeited to the Company or repurchased by the Company, the number of shares
      forfeited or repurchased shall again be available under the Plan.

     

    3.  Effective
      Date and Duration of Plan.

     

    (a)  Effective
      Date.
      The
      Plan shall become effective when adopted by the Board of Directors; provided,
      however, that prior to shareholder approval of the Plan, any awards shall be
      subject to and conditioned on approval of the Plan by a majority of the votes
      cast at a shareholders meeting at which a quorum is present. Options, stock
      appreciation rights and performance-based awards may be granted and shares
      may
      be awarded as bonuses or sold under the Plan at any time after the effective
      date and before termination of the Plan.

     

    (b)  Duration.
      The
      Plan shall continue in effect until all shares available for issuance under
      the
      Plan have been issued and all restrictions on such shares have lapsed. The
      Board
      of Directors may suspend or terminate the Plan at any time except with respect
      to options, performance-based awards and shares subject to restrictions then
      outstanding under the Plan. Termination shall not affect any outstanding
      options, any outstanding performance-based awards, any
      right
      of the Company to repurchase shares or the forfeitability of shares issued
      under
      the Plan.

     

    4.  Administration.
      The
      Plan shall be administered by a committee of the Board of Directors of the
      Company (the “Committee”), which shall determine and designate from time to time
      the individuals to whom awards shall be made, the amount of the awards, and
      the
      other terms and conditions of the awards. Subject to the provisions of the
      Plan,
      the Committee may from time to time adopt and amend rules and regulations
      relating to administration of the Plan, advance the lapse of any waiting period,
      accelerate any exercise date, waive or modify any restriction applicable to
      shares (except those restrictions imposed by law) and make all other
      determinations in the judgment of the Committee necessary or desirable for
      the
      administration of the Plan. The interpretation and construction of the
      provisions of the Plan and related agreements by the Committee shall be final
      and conclusive. The Committee may correct any defect or supply any omission
      or
      reconcile any inconsistency in the Plan or in any related agreement in the
      manner and to the extent it shall deem expedient to carry the Plan into effect,
      and it shall be the sole and final judge of such expediency.

     

    5.  Types
      of Awards; Eligibility.
      The
      Committee may, from time to time, take the following actions, separately or
      in
      combination, under the Plan: (i) grant Incentive Stock Options, as defined
      in Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”), as provided in paragraphs 6(a) and 6(b); (ii) grant options
      other than Incentive Stock Options (“Non-Statutory Stock Options”) as provided
      in paragraphs 6(a) and 6(c); (iii) award stock bonuses as provided in
      paragraph 7; (iv) sell shares subject to restrictions as provided in
      paragraph 8; (v) grant stock appreciation rights as provided in
      paragraph 9; (vi) grant cash bonus rights as provided in
      paragraph 10; (vii) grant performance-based awards as provided in
      paragraph 11 and (viii) grant foreign qualified awards as provided in
      paragraph 12. Any such awards may be made to employees, including employees
      who are officers or directors, and to other individuals described in
      paragraph 1 who the Committee believes have made or will make an important
      contribution to the Company or its subsidiaries; provided, however, that only
      employees of 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
the
        Company shall be eligible to receive Incentive Stock Options under the Plan.
        The
        Committee shall select the individuals to whom awards shall be made and shall
        specify the action taken with respect to each individual to whom an award
        is
        made. At the discretion of the Committee, an individual may be given an election
        to surrender an award in exchange for the grant of a new award. No employee
        may
        be granted options or stock appreciation rights under the Plan for more than
        150,000 shares of Class A Common Stock in any calendar
        year.

    

     

    6.  Option
      Grants.

     

    (a)  General
      Rules Relating to Options.

     

    (i)  Terms
      of Grant.
      The
      Committee may grant options under the Plan. With respect to each option grant,
      the Committee shall determine the number of shares subject to the option, the
      option price, the period of the option, the time or times at which the option
      may be exercised and whether the option is an Incentive Stock Option or a
      Non-Statutory Stock Option. At the time of the grant of an option or at any
      time
      thereafter, the Committee may provide that an optionee who exercised an option
      with Class A Common Stock of the Company shall automatically receive a new
      option to purchase additional shares equal to the number of shares surrendered
      and may specify the terms and conditions of such new options.

     

    (ii)  Exercise
      of Options.
      Except
      as provided in paragraph 6(a)(iv) or as determined by the Committee, no
      option granted under the Plan may be exercised unless at the time of such
      exercise the optionee is employed by or in the service of the Company or any
      subsidiary of the Company and shall have been so employed or provided such
      service continuously since the date such option was granted. Absence on leave
      or
      on account of illness or disability under rules established by the Committee
      shall not, however, be deemed an interruption of employment or service for
      this
      purpose. Unless otherwise determined by the Committee, vesting of options shall
      not continue during an absence on leave (including an extended illness) or
      on
      account of disability. Except as provided in paragraphs 6(a)(iv) and 13,
      options granted under the Plan may be exercised from time to time over the
      period stated in each option in such amounts and at such times as shall be
      prescribed by the Committee, provided that options shall not be exercised for
      fractional shares. Unless otherwise determined by the Committee, if the optionee
      does not exercise an option in any one year with respect to the full number
      of
      shares to which the optionee is entitled in that year, the optionee’s rights
      shall be cumulative and the optionee may purchase those shares in any subsequent
      year during the term of the option.

     

    (iii)  Nontransferability.
      Except
      as provided below, each stock option granted under the Plan by its terms shall
      be nonassignable and nontransferable by the optionee, either voluntarily or
      by
      operation of law, and each option by its terms shall be exercisable during
      the
      optionee’s lifetime only by the optionee. A stock option may be transferred by
      will or by the laws of descent and distribution of the state or country of
      the
      optionee’s domicile at the time of death. A Non-Statutory Stock Option shall
      also be transferable pursuant to a qualified domestic relations order as defined
      under the Code or Title I of the Employee Retirement Income Security Act. The
      Committee may, in its discretion, authorize all or a portion of a Non-Statutory
      Stock Option to be on terms which permit transfer by the optionee to
      (A) the spouse, children or grandchildren of the optionee, including
      stepchildren and adopted children (“Immediate Family Members”), (B) a trust
      or trusts for the exclusive benefit of Immediate Family Members, or (C) a
      partnership or limited liability company in which Immediate Family Members
      are
      the only partners or members, provided that (X) there may be no
      consideration for any transfer, (Y) the stock option agreement pursuant to
      which the options are granted or an amendment thereto must expressly provide
      for
      transferability in a manner consistent with this paragraph, and
      (Z) subsequent transfers of transferred options shall be prohibited except
      by will or by the laws of descent and distribution. Following any transfer,
      options shall continue to be subject to the same terms and conditions as were
      applicable immediately prior to transfer, provided that for purposes of
      paragraphs 6(a)(v) and 13 the term “optionee” shall be deemed to refer to
      the transferee. The continued employment requirement of paragraph 6(a)(ii)
      and the events of termination of employment of paragraph 6(a)(iv) shall
      continue to be applied with respect to the original optionee, and following
      the
      termination of employment of the original optionee the options shall be
      exercisable by the transferee only to the extent, and for the periods specified,
      and all other references to employment, termination of employment, life or
      death
      of the optionee, shall continue to be applied with respect to the original
      optionee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv)  Termination
      of Employment or Service.

     

    (A)  General
      Rule.
      Unless
      otherwise determined by the Committee, in the event the employment or service
      of
      the optionee with the Company or a subsidiary terminates for any reason other
      than because of physical disability, death or retirement as provided in
      subparagraphs 6(a)(iv)(B), (C) and (D), the option may be exercised at any
      time prior to the expiration date of the option or the expiration of
      30 days after the date of such termination, whichever is the shorter
      period, but only if and to the extent the optionee was entitled to exercise
      the
      option at the date of such termination.

     

    (B)  Termination
      Because of Total Disability.
      Unless
      otherwise determined by the Committee, in the event of the termination of
      employment or service because of total disability, the option may be exercised
      at any time prior to the expiration date of the option or the expiration of
      12 months after the date of such termination, whichever is the shorter
      period, but only if and to the extent the optionee was entitled to exercise
      the
      option at the date of such termination. The term “total disability” means a
      mental or physical impairment which is expected to result in death or which
      has
      lasted or is expected to last for a continuous period of 12 months or more
      and which causes the optionee to be unable, in the opinion of the Company and
      two independent physicians, to perform his or her duties as an employee,
      director, officer or consultant of the Company and to be engaged in any
      substantial gainful activity. Total disability shall be deemed to have occurred
      on the first day after the Company and the two independent physicians have
      furnished their opinion of total disability to the Company.

     

    (C)  Termination
      Because of Death.
      Unless
      otherwise determined by the Committee, in the event of the death of an optionee
      while employed by or providing service to the Company or a subsidiary, the
      option may be exercised at any time prior to the expiration date of the option
      or the expiration of 12 months after the date of such death, whichever is
      the shorter period, but only if and to the extent the optionee was entitled
      to
      exercise the option at the date of such termination and only by the person
      or
      persons to whom such optionee’s rights under the option shall pass by the
      optionee’s will or by the laws of descent and distribution of the state or
      country of domicile at the time of death.

     

    (D)  Termination
      Because of Retirement.
      Unless
      otherwise determined by the Committee, in the event of the termination of
      employment or service because of (1) normal retirement after reaching age
      65, (2) early retirement after reaching age 55 and completing 10 years
      of service, or (3) early retirement after completing 30 years of
      service without regard to age, the option may be exercised at any time prior
      to
      the expiration date of the option or the expiration of 12 months after the
      date of such termination, whichever is the shorter period, but only if and
      to
      the extent the optionee was entitled to exercise the option at the date of
      such
      termination.

     

    (E)  Amendment
      of Exercise Period Applicable to Termination.
      The
      Committee, at the time of grant or at any time thereafter, may extend the 30-day
      and 12-month exercise periods any length of time not later than the original
      expiration date of the option, and may increase the portion of an option that
      is
      exercisable, subject to such terms and conditions as the Committee may
      determine.

     

    (F)  Failure
      to Exercise Option.
      To the
      extent that the option of any deceased optionee or of any optionee whose
      employment or service terminates is not exercised within the applicable period,
      all further rights to purchase shares pursuant to such option shall cease and
      terminate.

     

    (v)  Purchase
      of Shares.
      Unless
      the Committee determines otherwise, shares may be acquired pursuant to an option
      granted under the Plan only upon receipt by the Company of notice in writing
      from the optionee of the optionee’s intention to exercise, specifying the number
      of shares as to which the optionee desires to exercise the option and the date
      on which the optionee desires to complete the transaction, and if required
      in
      order to comply with the Securities Act of 1933, as amended, containing a
      representation that it is the optionee’s present intention to acquire the shares
      for investment and not with a view to distribution. Unless the Committee
      determines otherwise, on or before the date specified for completion of the
      purchase of shares pursuant to an option, the optionee must have paid the
      Company the full purchase price of such shares in cash (including, with the
      consent of the Committee, cash that may be the proceeds of a loan from the
      Company) or, with the consent of the Committee, in whole or in part, in
      Class A Common Stock of the Company valued at fair market value, restricted
      stock, performance-based awards or other contingent awards denominated in either
      stock or cash, deferred compensation credits, promissory notes and other forms
      of consideration. The fair market value of Class A Common Stock provided in
      payment of 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
the
        purchase price shall be the closing price of the Class A Common Stock as
        reported in The
        Wall Street Journal
        on the
        trading day preceding the date the option is exercised, or such other reported
        value of the Class A Common Stock as shall be specified by the Committee.
        No shares shall be issued until full payment therefor has been made. With
        the
        consent of the Committee, an optionee may request the Company to apply
        automatically the shares to be received upon the exercise of a portion of
        a
        stock option (even though stock certificates have not yet been issued) to
        satisfy the purchase price for additional portions of the option. Each optionee
        who has exercised an option shall immediately upon notification of the amount
        due, if any, pay to the Company in cash amounts necessary to satisfy any
        applicable federal, state and local tax withholding requirements. If additional
        withholding is or becomes required beyond any amount deposited before delivery
        of the certificates, the optionee shall pay such amount to the Company on
        demand. If the optionee fails to pay the amount demanded, the Company may
        withhold that amount from other amounts payable by the Company to the optionee,
        including salary, subject to applicable law. With the consent of the Committee
        an optionee may satisfy this obligation, in whole or in part, by having the
        Company withhold from the shares to be issued upon the exercise that number
        of
        shares that would satisfy the withholding amount due or by delivering to
        the
        Company Class A Common Stock to satisfy the withholding amount. Upon the
        exercise of an option, the number of shares reserved for issuance under the
        Plan
        shall be reduced by the number of shares issued upon exercise of the
        option.

    

     

    (b)  Incentive
      Stock Options.
      Incentive Stock Options shall be subject to the following additional terms
      and
      conditions:

     

    (i)  Limitation
      on Amount of Grants.
      No
      employee may be granted Incentive Stock Options under the Plan if the aggregate
      fair market value, on the date of grant, of the Class A Common Stock with
      respect to which Incentive Stock Options are exercisable for the first time
      by
      that employee during any calendar year under the Plan and under any other
      incentive stock option plan (within the meaning of Section 422 of the Code)
      of the Company or any parent or subsidiary of the Company exceeds
      $100,000.

     

    (ii)  Limitations
      on Grants to 10 Percent Shareholders.
      An
      Incentive Stock Option may be granted under the Plan to an employee possessing
      more than 10 percent of the total combined voting power of all classes of
      stock of the Company or of any parent or subsidiary of the Company only if
      the
      option price is at least 110 percent of the fair market value of the
      Class A Common Stock subject to the option on the date it is granted, as
      described in paragraph 6(b)(iv), and the option by its terms is not
      exercisable after the expiration of five years from the date it is
      granted.

     

    (iii)  Duration
      of Options.
      Subject
      to paragraphs 6(a)(ii) and 6(b)(ii), Incentive Stock Options granted under
      the Plan shall continue in effect for the period fixed by the Committee, except
      that no Incentive Stock Option shall be exercisable after the expiration of
      10 years from the date it is granted.

     

    (iv)  Option
      Price.
      The
      option price per share shall be determined by the Committee at the time of
      grant. Except as provided in paragraph 6(b)(ii), the option price shall not
      be less than 100 percent of the fair market value of the Class A
      Common Stock covered by the Incentive Stock Option at the date the option is
      granted. The fair market value shall be deemed to be the closing price of the
      Class A Common Stock as reported in The
      Wall Street Journal
      on the
      day preceding the date the option is granted, or if there has been no sale
      on
      that date, on the last preceding date on which a sale occurred, or such other
      value of the Class A Common Stock as shall be specified by the
      Committee.

     

    (v)  Limitation
      on Time of Grant.
      No
      Incentive Stock Option shall be granted on or after the tenth anniversary of
      the
      last action by the Board of Directors approving an increase in the number of
      shares available for issuance under the Plan, which action was subsequently
      approved within 12 months by the shareholders.

     

    (vi)  Conversion
      of Incentive Stock Options.
      The
      Committee may at any time without the consent of the optionee convert an
      Incentive Stock Option to a Non-Statutory Stock Option.

     

    (c)  Non-Statutory
      Stock Options.
      Non-Statutory Stock Options shall be subject to the following additional terms
      and conditions:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)  Option
      Price.
      The
      option price for Non-Statutory Stock Options shall be determined by the
      Committee at the time of grant and may be any amount determined by the
      Committee.

     

    (ii)  Duration
      of Options.
      Non-Statutory Stock Options granted under the Plan shall continue in effect
      for
      the period fixed by the Committee.

     

    7.  Stock
      Bonuses.
      The
      Committee may award shares under the Plan as stock bonuses. Shares awarded
      as a
      bonus shall be subject to the terms, conditions, and restrictions determined
      by
      the Committee. The restrictions may include restrictions concerning
      transferability and forfeiture of the shares awarded, together with such other
      restrictions as may be determined by the Committee. The Committee may require
      the recipient to sign an agreement as a condition of the award, but may not
      require the recipient to pay any monetary consideration other than amounts
      necessary to satisfy tax withholding requirements. The agreement may contain
      any
      terms, conditions, restrictions, representations and warranties required by
      the
      Committee. The certificates representing the shares awarded shall bear any
      legends required by the Committee. The Company may require any recipient of
      a
      stock bonus to pay to the Company in cash upon demand amounts necessary to
      satisfy any applicable federal, state or local tax withholding requirements.
      If
      the recipient fails to pay the amount demanded, the Company may withhold that
      amount from other amounts payable by the Company to the recipient, including
      salary or fees for services, subject to applicable law. With the consent of
      the
      Committee, a recipient may deliver Class A Common Stock to the Company to
      satisfy this withholding obligation. Upon the issuance of a stock bonus, the
      number of shares reserved for issuance under the Plan shall be reduced by the
      number of shares issued.

     

    8.  Restricted
      Stock.
      The
      Committee may issue shares under the Plan for such consideration (including
      promissory notes and services) as determined by the Committee. Shares issued
      under the Plan shall be subject to the terms, conditions and restrictions
      determined by the Committee. The restrictions may include restrictions
      concerning transferability, repurchase by the Company and forfeiture of the
      shares issued, together with such other restrictions as may be determined by
      the
      Committee. All Class A Common Stock issued pursuant to this
      paragraph 8 shall be subject to a purchase agreement, which shall be
      executed by the Company and the prospective recipient of the shares prior to
      the
      delivery of certificates representing such shares to the recipient. The purchase
      agreement may contain any terms, conditions, restrictions, representations
      and
      warranties required by the Committee. The certificates representing the shares
      shall bear any legends required by the Committee. The Company may require any
      purchaser of restricted stock to pay to the Company in cash upon demand amounts
      necessary to satisfy any applicable federal, state or local tax withholding
      requirements. If the purchaser fails to pay the amount demanded, the Company
      may
      withhold that amount from other amounts payable by the Company to the purchaser,
      including salary, subject to applicable law. With the consent of the Committee,
      a purchaser may deliver Class A Common Stock to the Company to satisfy this
      withholding obligation. Upon the issuance of restricted stock, the number of
      shares reserved for issuance under the Plan shall be reduced by the number
      of
      shares issued.

     

    9.  Stock
      Appreciation Rights.

     

    (a)  Grant.
      Stock
      appreciation rights may be granted under the Plan by the Committee, subject
      to
      such rules, terms, and conditions as the Committee prescribes.

     

    (b)  Exercise.

     

    (i)  Each
      stock appreciation right shall entitle the holder, upon exercise, to receive
      from the Company in exchange therefor an amount equal in value to the excess
      of
      the fair market value on the date of exercise of one share of Class A
      Common Stock of the Company over its fair market value on the date of grant
      (or, in the case of a stock appreciation right granted in connection with an
      option, the excess of the fair market value of one share of Class A Common
      Stock of the Company over the option price per share under the option to which
      the stock appreciation right relates), multiplied by the number of shares
      covered by the stock appreciation right or the option, or portion thereof,
      that
      is surrendered. Payment by the Company upon exercise of a stock appreciation
      right may be made in Class A Common Stock valued at fair market value, in
      cash, or partly in Class A Common Stock and partly in cash, all as
      determined by the Committee.

     

    (ii)  A
      stock
      appreciation right shall be exercisable only at the time or times established
      by
      the Committee. If a stock appreciation right is granted in connection with
      an
      option, the following rules shall apply: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
(1) the
        stock appreciation right shall be exercisable only to the extent and on the
        same
        conditions that the related option could be exercised; (2) upon exercise of
        the stock appreciation right, the option or portion thereof to which the
        stock
        appreciation right relates terminates; and (3) upon exercise of the option,
        the related stock appreciation right or portion thereof
        terminates.

    

     

    (iii)  The
      Committee may withdraw any stock appreciation right granted under the Plan
      at
      any time and may impose any conditions upon the exercise of a stock appreciation
      right or adopt rules and regulations from time to time affecting the rights
      of
      holders of stock appreciation rights. Such rules and regulations may govern
      the
      right to exercise stock appreciation rights granted prior to adoption or
      amendment of such rules and regulations as well as stock appreciation rights
      granted thereafter.

     

    (iv)  For
      purposes of this paragraph 9, the fair market value of the Class A
      Common Stock shall be the closing price of the Class A Common Stock as
      reported in The
      Wall Street Journal,
      or such
      other reported value of the Class A Common Stock as shall be specified by
      the Committee, on the trading day preceding the date the stock appreciation
      right is exercised.

     

    (v)  No
      fractional shares shall be issued upon exercise of a stock appreciation right.
      In lieu thereof, cash may be paid in an amount equal to the value of the
      fraction or, if the Committee shall determine, the number of shares may be
      rounded downward to the next whole share.

     

    (vi)  Each
      stock appreciation right granted in connection with an Incentive Stock Option
      and, unless otherwise determined by the Board of Directors, each other stock
      appreciation right granted under the Plan by its terms shall be nonassignable
      and nontransferable by the holder, either voluntarily or by operation of law,
      except by will or by the laws of descent and distribution of the state or
      country of the holder’s domicile at the time of death, and each stock
      appreciation right by its terms shall be exercisable during the holder’s
      lifetime only by the holder; provided, however, that a stock appreciation right
      not granted in connection with an Incentive Stock Option shall also be
      transferable pursuant to a qualified domestic relations order as defined under
      the Code or Title I of the Employee Retirement Income Security Act.

     

    (vii)  Each
      participant who has exercised a stock appreciation right shall, upon
      notification of the amount due, pay to the Company in cash amounts necessary
      to
      satisfy any applicable federal, state and local tax withholding requirements.
      If
      the participant fails to pay the amount demanded, the Company may withhold
      that
      amount from other amounts payable by the Company to the participant including
      salary, subject to applicable law. With the consent of the Committee a
      participant may satisfy this obligation, in whole or in part, by having the
      Company withhold from any shares to be issued upon the exercise that number
      of
      shares that would satisfy the withholding amount due or by delivering
      Class A Common Stock to the Company to satisfy the withholding
      amount.

     

    (viii)  Upon
      the
      exercise of a stock appreciation right for shares, the number of shares reserved
      for issuance under the Plan shall be reduced by the number of shares issued.
      Cash payments of stock appreciation rights shall not reduce the number of shares
      of Class A Common Stock reserved for issuance under the Plan.

     

    10.  Cash
      Bonus Rights.

     

    (a)  Grant.
      The
      Committee may grant cash bonus rights under the Plan in connection with
      (i) options granted or previously granted, (ii) stock appreciation
      rights granted or previously granted, (iii) stock bonuses awarded or
      previously awarded and (iv) shares sold or previously sold under the Plan.
      Cash bonus rights will be subject to rules, terms and conditions as the
      Committee may prescribe. Unless otherwise determined by the Committee, each
      cash
      bonus right granted under the Plan by its terms shall be nonassignable and
      nontransferable by the holder, either voluntarily or by operation of law, except
      by will or by the laws of descent and distribution of the state or country
      of
      the holder’s domicile at the time of death or pursuant to a qualified domestic
      relations order as defined under the Code or Title I of the Employee
      Retirement Income Security Act. The payment of a cash bonus shall not reduce
      the
      number of shares of Class A Common Stock reserved for issuance under the
      Plan.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Cash
      Bonus Rights in Connection With Options.
      A cash
      bonus right granted in connection with an option will entitle an optionee to
      a
      cash bonus when the related option is exercised (or terminates in connection
      with the exercise of a stock appreciation right related to the option) in whole
      or in part. If an optionee purchases shares upon exercise of an option and
      does
      not exercise a related stock appreciation right, the amount of the bonus shall
      be determined by multiplying the excess of the total fair market value of the
      shares to be acquired upon the exercise over the total option price for the
      shares by the applicable bonus percentage. If the optionee exercises a related
      stock appreciation right in connection with the termination of an option, the
      amount of the bonus shall be determined by multiplying the total fair market
      value of the shares and cash received pursuant to the exercise of the stock
      appreciation right by the applicable bonus percentage. The bonus percentage
      applicable to a bonus right shall be determined from time to time by the
      Committee but shall in no event exceed 75 percent.

     

    (c)  Cash
      Bonus Rights in Connection With Stock Bonus.
      A cash
      bonus right granted in connection with a stock bonus will entitle the recipient
      to a cash bonus payable when the stock bonus is awarded or restrictions, if
      any,
      to which the stock is subject lapse. If bonus stock awarded is subject to
      restrictions and is repurchased by the Company or forfeited by the holder,
      the
      cash bonus right granted in connection with the stock bonus shall terminate
      and
      may not be exercised. The amount and timing of payment of a cash bonus shall
      be
      determined by the Committee.

     

    (d)  Cash
      Bonus Rights in Connection With Stock Purchases.
      A cash
      bonus right granted in connection with the purchase of stock pursuant to
      paragraph 8 will entitle the recipient to a cash bonus when the shares are
      purchased or restrictions, if any, to which the stock is subject lapse. Any
      cash
      bonus right granted in connection with shares purchased pursuant to
      paragraph 8 shall terminate and may not be exercised in the event the
      shares are repurchased by the Company or forfeited by the holder pursuant to
      applicable restrictions. The amount and timing of payment of a cash bonus shall
      be determined by the Committee.

     

    (e)  Taxes.
      The
      Company shall withhold from any cash bonus paid pursuant to paragraph 10
      the amount necessary to satisfy any applicable federal, state and local
      withholding requirements.

     

    11.  Performance-Based
      Awards.
      The
      Committee may grant awards intended to qualify as qualified performance-based
      compensation under Section 162(m) of the Code and the regulations thereunder.
      Performance-based awards shall be denominated at the time of grant either in
      Class A Common Stock (“Stock Performance Awards”) or in dollar amounts (“Dollar
      Performance Awards”). Payment under a Stock Performance Award or a Dollar
      Performance Award shall be made, at the discretion of the Committee, in Class
      A
      Common Stock (“Performance Shares”), or in cash or in any combination thereof.
      Performance-based awards shall be subject to the following terms and
      conditions:

     

    (a)  Award
      Period.
      The
      Committee shall determine the period of time for which a Performance-based
      award
      is made (the “Award Period”).

     

    (b)  Performance
      Goals and Payment.
      The
      Committee shall establish in writing objectives (“Performance Goals”) that must
      be met by the Company or any subsidiary, division or other unit of the Company
      (“Business Unit”) during the Award Period as a condition to payment being made
      under the performance-based award. The Performance Goals for each award shall
      be
      one or more targeted levels of performance with respect to one or more of the
      following objective measures with respect to the Company or any Business Unit:
      economic value added (adjusted operating income less a capital charge), number
      of retail locations with positive economic value added, man hours per ton,
      net
      income, earnings per share, stock price increase, total shareholder return
      (stock price increase plus dividends), return on equity, return on assets,
      return on capital, revenues, sales volume, production volume, gross margin,
      gross margin per ton (or other unit of weight or volume), operating income,
      operating income per ton (or other unit of weight or volume), income before
      income taxes, earnings before interest, taxes, depreciation and amortization
      (EBITDA), inventories, inventory turns, cash flows or any of the foregoing
      before the effect of acquisitions, divestitures, accounting changes, and
      restructuring and special charges (determined according to criteria established
      by the Committee). The Committee shall also establish the number of Performance
      Shares or the amount of cash payment to be made under a performance-based award
      if the Performance Goals are met or exceeded, including the fixing of a maximum
      payment (subject to paragraph 11(d)). The Committee may establish other
      restrictions to payment under a performance-based award, such as a continued
      employment requirement, in addition to satisfaction of the Performance Goals.
      Some or all of the Performance Shares may be issued at the time of the award
      as
      restricted shares subject to forfeiture in whole or in part if Performance
      Goals
      or, if applicable, other restrictions are not satisfied.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)  Computation
      of Payment.
      During
      or after an Award Period, the performance of the Company or Business Unit,
      as
      applicable, during the period shall be measured against the Performance Goals.
      If the Performance Goals are not met, no payment shall be made under a
      performance-based award. If the Performance Goals are met or exceeded, the
      Committee shall certify that fact in writing and certify the number of
      Performance Shares earned or the amount of cash payment to be made under the
      terms of the performance-based award.

     

    (d)  Maximum
      Awards.
      No
      participant may be granted in any fiscal year Stock Performance Awards under
      which the maximum aggregate amount payable under the Awards exceeds the
      equivalent of 100,000 shares of Common Stock or Dollar Performance Awards under
      which the maximum aggregate amount payable under the Awards exceeds
      $2,000,000.

     

    (e)  Tax
      Withholding.
      Each
      participant who has received Performance Shares shall, upon notification of
      the
      amount due, pay to the Company in cash or by check amounts necessary to satisfy
      any applicable federal, state and local tax withholding requirements. If the
      participant fails to pay the amount demanded, the Company may withhold that
      amount from other amounts payable by the Company to the participant, including
      salary, subject to applicable law. With the consent of the Committee, a
      participant may satisfy this obligation, in whole or in part, by instructing
      the
      Company to withhold from any shares to be issued or by delivering to the Company
      other shares of Class A Common Stock; provided, however, that the number of
      shares so delivered or withheld shall not exceed the minimum amount necessary
      to
      satisfy the required withholding obligation.

     

    (f)  Effect
      on Shares Available.
      The
      payment of a performance-based award in cash shall not reduce the number of
      shares of Class A Common Stock reserved for issuance under the Plan. The number
      of shares reserved for issuance under the Plan shall be reduced by the number
      of
      shares issued upon payment of an award.

     

    12.  Foreign
      Qualified Grants.
      Awards
      under the Plan may be granted to such officers and employees of the Company
      and
      its subsidiaries and such other persons described in paragraph 1 residing
      in foreign jurisdictions as the Committee may determine from time to time.
      The
      Committee may adopt such supplements to the Plan as may be necessary to comply
      with the applicable laws of such foreign jurisdictions and to afford
      participants favorable treatment under such laws; provided, however, that no
      award shall be granted under any such supplement with terms which are more
      beneficial to the participants than the terms permitted by the
      Plan.

     

    13.  Changes
      in Capital Structure.
      If the
      outstanding Class A Common Stock of the Company is hereafter increased or
      decreased or changed into or exchanged for a different number or kind of shares
      or other securities of the Company or of another corporation by reason of any
      reorganization, merger, consolidation, plan of exchange, recapitalization,
      reclassification, stock split-up, combination of shares or dividend payable
      in
      shares, appropriate adjustment shall be made by the Committee in the number
      and
      kind of shares available for awards under the Plan. In addition, the Committee
      shall make appropriate adjustment in the number and kind of shares as to which
      outstanding options and stock appreciation rights, or portions thereof then
      unexercised, shall be exercisable, so that the optionee’s proportionate interest
      before and after the occurrence of the event is maintained. Notwithstanding
      the
      foregoing, the Committee shall have no obligation to effect any adjustment
      that
      would or might result in the issuance of fractional shares, and any fractional
      shares resulting from any adjustment may be disregarded or provided for in
      any
      manner determined by the Committee. Any such adjustments made by the Committee
      shall be conclusive. In the event of dissolution of the Company or a merger,
      consolidation or plan of exchange affecting the Company, in lieu of providing
      for options and stock appreciation rights as provided above in this
      paragraph 13 or in lieu of having the options and stock appreciation rights
      continue unchanged, the Committee may, in its sole discretion, provide a 30-day
      period prior to such event during which optionees shall have the right to
      exercise options and stock appreciation rights in whole or in part without
      any
      limitation on exercisability and upon the expiration of which 30-day period
      all
      unexercised options and stock appreciation rights shall immediately
      terminate.

     

    14.  Corporate
      Mergers, Acquisitions, etc.
      The
      Committee may also grant options, stock appreciation rights, performance-based
      awards, stock bonuses and cash bonuses and issue restricted stock under the
      Plan
      having terms, conditions and provisions that vary from those specified in this
      Plan provided that any such awards are granted in substitution for, or in
      connection with the assumption of, existing options, stock appreciation rights,
      stock bonuses,

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
cash
        bonuses, restricted stock and performance-based awards granted, awarded or
        issued by another corporation and assumed or otherwise agreed to be provided
        for
        by the Company pursuant to or by reason of a transaction involving a corporate
        merger, consolidation, acquisition of property or stock, separation,
        reorganization or liquidation to which the Company or a subsidiary is a
        party.

    

     

    15.  Amendment
      of Plan.
      The
      Board of Directors may at any time, and from time to time, modify or amend
      the
      Plan in such respects as it shall deem advisable because of changes in the
      law while the Plan is in effect or for any other reason. Except as provided
      in
      paragraphs 6(a)(iv), 9 and 13, however, no change in an award already
      granted shall be made without the written consent of the holder of such
      award.

     

    16.  Approvals.
      The
      obligations of the Company under the Plan are subject to the approval of state
      and federal authorities or agencies with jurisdiction in the matter. The Company
      will use its best efforts to take steps required by state or federal law or
      applicable regulations, including rules and regulations of the Securities and
      Exchange Commission and any stock exchange on which the Company’s shares may
      then be listed, in connection with the grants under the Plan. The foregoing
      notwithstanding, the Company shall not be obligated to issue or deliver
      Class A Common Stock under the Plan if such issuance or delivery would
      violate applicable state or federal securities laws.

     

    17.  Employment
      and Service Rights.
      Nothing
      in the Plan or any award pursuant to the Plan shall (i) confer upon any
      employee any right to be continued in the employment of the Company or any
      subsidiary or interfere in any way with the right of the Company or any
      subsidiary by whom such employee is employed to terminate such employee’s
      employment at any time, for any reason, with or without cause, or to decrease
      such employee’s compensation or benefits, or (ii) confer upon any person
      engaged by the Company any right to be retained or employed by the Company
      or to
      the continuation, extension, renewal, or modification of any compensation,
      contract, or arrangement with or by the Company.

     

    18.  Rights
      as a Shareholder.
      The
      recipient of any award under the Plan shall have no rights as a shareholder
      with
      respect to any Class A Common Stock until the date of issue to the
      recipient of a stock certificate for such shares. Except as otherwise expressly
      provided in the Plan, no adjustment shall be made for dividends or other rights
      for which the record date occurs prior to the date such stock certificate is
      issued.

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