Document:

exv10w15

Exhibit 10.15

REGISTRATION RIGHTS AGREEMENT

BY AND BETWEEN

ENERGY CORPORATION OF AMERICA,

JOHN MORK,

JULIE MORK

AND

ECA MARCELLUS TRUST I

DATED AS OF [____], 2010

 

 

     This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of
[___], 2010, by and among ECA Marcellus Trust I, statutory trust formed under the laws of the State
of Delaware (the “Trust”), and Energy Corporation of America (“ECA”), a West Virginia corporation,
John Mork and Julie Mork (collectively with ECA and John Mork, the “Principal Unitholders”).

RECITALS:

     WHEREAS, in connection with the Initial Public Offering, the Trust has agreed to file a
registration statement or registration statements relating to the sales by the Principal
Unitholders and its Transferees (as defined below) of certain of the Trust Units.

     NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, it is agreed as follows:

     SECTION 1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Affiliate” means with respect to a specified person, any person that directly or indirectly
controls, is controlled by, or is under common control with, the specified person. As used in this
definition, the term “control” (and the correlative terms “controlling,” “controlled by,” and
“under common control”) shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a person, whether through ownership of
voting securities, by contract or otherwise.

     “Agreement” has the meaning set forth in the preamble hereof.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in The City of New York are authorized or obligated by law or executive
order to close.

     “Common Units” has the meaning set forth in the Trust Agreement.

     “Deferral Notice” has the meaning set forth in Section 3(j) hereof.

     “Deferral Period” has the meaning set forth in Section 3(j) hereof.

     “Demand Notice” has the meaning set forth in Section 2(a) hereof.

     “Demand Registration” has the meaning set forth in Section 2(a) hereof.

     “Demanding Qualified Holder(s)” shall mean, with respect to any Demand Registration, the
Qualified Holder(s) delivering the relevant Demand Notice.

     “ECA” has the meaning set forth in the preamble.

 

 

     “Effective Period” means the period commencing on the 180th day after the date
hereof and ending on the date that all Registrable Securities have ceased to be Registrable
Securities.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the SEC thereunder.

     “Expenses” has the meaning set forth in Section 6(a) hereof.

     “Indemnified Party” has the meaning set forth in Section 6(d) hereof.

     “Indemnifying Party” has the meaning set forth in Section 6(d) hereof.

     “Initial Public Offering” means the initial public offering of Common Units registered with
the SEC by a registration statement on Form S-1 (Registration No. 333-165833).

     “Material Event” has the meaning set forth in Section 3(j) hereof.

     “Notice” has the meaning set forth in Section 2(a) hereof.

     “person” shall mean any individual, partnership, limited liability company, corporation,
trust, unincorporated association, governmental agency, subdivision, or instrumentality, or other
entity or association.

     “Principal Unitholders” has the meaning set forth in the preamble.

     “Prospectus” means the prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a prospectus filed as
part of an effective registration statement in reliance upon Rule 430A, Rule 430B or Rule 430C
promulgated under the Securities Act), as amended or supplemented by any amendment, prospectus
supplement or free writing prospectus (as defined in Rule 405 promulgated under the Securities
Act), including post-effective amendments, and all materials incorporated by reference or
explicitly deemed to be incorporated by reference in such Prospectus.

     “Qualified Holder” shall mean the Principal Unitholders and any Transferee of a Principal
Unitholder to whom Registrable Securities are permitted to be transferred in accordance with the
terms of this Agreement, and, in each case, who continues to be entitled to the rights of a
Qualified Holder hereunder.

     “Registrable Securities” means the Trust Units held by the Qualified Holders and any
securities into or for which such Trust Units have been converted or exchanged, and any security
issued with respect thereto upon any dividend, split or similar event until, in the case of any
such security, the earliest of (i) its effective registration under the Securities Act and resale
in accordance with the Registration Statement covering it, (ii) its disposal pursuant to Rule 144
(or any similar provision then in force, but not Rule 144A) under the Securities Act, (iii) its
sale in a private transaction in which the transferor’s rights under this Agreement are not
assigned to the transferee of the securities, (iv) its being held by the Trust, (v) 10 years after
the Qualified Holder ceases to be an Affiliate of the Trust, or (vi) if such security has been sold
in a private

 

 

transaction in which the tranferor’s rights under this Agreement are assigned to the
transferee and such transferee is not an Affiliate of the Trust, the time that is two years following the
later of (a) if the security is a Subordinated Unit, the conversion of the Subordinated Unit into a
Common Unit and (b) the transfer of such security to such transferee.

     “Registration Statement” means any registration statement of the Trust, including any Shelf
Registration Statement, that covers any of the Registrable Securities pursuant to the provisions of
this Agreement, including the Prospectus, amendments and supplements to such registration
statement, including post-effective amendments, all exhibits and all materials incorporated by
reference or explicitly deemed to be incorporated by reference in such registration statement.

     “Required Information” has the meaning set forth in Section 4(a) hereof.

     “Rule 144” means Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the SEC.

     “Rule 144A” means Rule 144A under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the SEC.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the SEC thereunder.

     “Shelf Registration Statement” means a Registration Statement for an offering to be made on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act registering the resale of
Registrable Securities from time to time by Qualified Holders thereof.

     “Special Counsel” means Vinson & Elkins L.L.P. or such other successor counsel as shall be
specified in writing by the Qualified Holders holding a majority of all Registrable Securities.

     “Subordinated Units” has the meaning set forth in the Trust Agreement.

     “Transferee” has the meaning set forth in Section 9(d) hereof.

     “Trust” has the meaning set forth in the preamble hereof.

     “Trust Agreement” means that certain Amended and Restated Trust Agreement of the Trust, dated
as of the date hereof.

     “Trust Units” means Common Units, Subordinated Units, and Common Units issuable upon
conversion of the Subordinated Units pursuant to the terms of the Trust Agreement.

 

 

     SECTION 2. Demand Registration Rights.

     (a) Commencing 180 days after the Initial Public Offering, a Qualified Holder shall have the
right by delivering a written notice to the Trust (the “Demand Notice”) to require the Trust to
register, pursuant to the terms of this Agreement under and in accordance with the provisions of
the Securities Act, the number of Registrable Securities requested to be so registered pursuant to
the terms and conditions set forth in this Agreement (a “Demand Registration”). Following receipt
of a Demand Notice for a Demand Registration, the Trust shall use its reasonable best efforts to
file a Registration Statement as promptly as practicable, but not later than 45 days after such
Demand Notice, and shall use its reasonable best efforts to cause such Registration Statement to be
declared effective under the Securities Act as promptly as practicable after the filing thereof.

          Each Principal Unitholder shall be entitled to a maximum of one Demand Registration, which, if
such Demand Registration has not been exercised, may be transferred to any of such Principal
Unitholder’s successors or assigns who becomes a Qualified Holder pursuant to Section 9(d);
provided, however, that no such succession or assignment shall have the effect of increasing the
number of Demand Registrations to be performed by the Trust with respect to the Registrable
Securities held by such Principal Unitholder. Notwithstanding any other provisions of this Section
2, in no event shall more than one Demand Registration occur during any six-month period (measured
from the effective date of the Registration Statement to the date of the next Demand Notice) or
within 120 days after the effective date of a Registration Statement filed by the Trust; provided
that no Demand Registration may be prohibited for such 120-day period more often than once in a
12-month period.

          No Demand Registration shall be deemed to have occurred for purposes of this Section 2(a) if
the Registration Statement relating thereto does not become effective or is not maintained
effective for the period required pursuant to this Section 2(a), in which case the Demanding
Qualified Holders shall be entitled to an additional Demand Registration in lieu thereof.

          Within ten (10) days after receipt by the Trust of a Demand Notice, the Trust shall give
written notice (the “Notice”) of such Demand Notice to all other Qualified Holders and shall,
subject to the provisions of Section 2(b) hereof, include in such registration all Registrable
Securities held by such Qualified Holders with respect to which the Trust received written requests
for inclusion therein within ten (10) days after such Notice is given by the Trust to such holders.

          All requests made pursuant to this Section 2 will specify the amount of Registrable Securities
to be registered and the intended methods of disposition thereof.

          The Trust shall be required to maintain the effectiveness of the Registration Statement with
respect to any Demand Registration for a period of ninety (90) days after the effective date
thereof or, in the case of a Shelf Registration Statement, the Effectiveness Period; provided,
however, that such period shall be extended for a period of time equal to the period the holders of
Registrable Securities refrain from selling any securities included in such registration at the
request of (i) an underwriter of the Trust or (ii) the Trust pursuant to this Agreement.

 

 

     (b) If any of the Registrable Securities registered pursuant to a Demand Registration are to
be sold in a firm commitment underwritten offering, and the managing underwriter or underwriters
advise the holders of such securities in writing that in its view the total amount of securities
proposed to be sold in such offering is such as to adversely affect the success of such offering
(including, without limitation, securities proposed to be included by other holders of securities
entitled to include securities in the Registration Statement pursuant to incidental or piggyback
registration rights), then the amount of securities to be offered (i) for the account of Demanding
Qualified Holders and (ii) for the account of all such other persons (other than the Demanding
Qualified Holders) shall be reduced to the extent necessary to reduce the total amount of
securities to be included in such offering to the amount recommended by such managing underwriter
or underwriters by first reducing, or eliminating if necessary, all securities of the Trust
requested to be included by such other persons and then, if necessary, reducing the Registrable
Securities requested to be included by the Demanding Qualified Holders, pro rata among such
security holders on the basis of the percentage of the Registrable Securities requested to be
included in such Registration Statement by such security holders. In connection with any Demand
Registration to which the provisions of this subsection (b) apply, no securities other than
Registrable Securities shall be covered by such Demand Registration except as provided in
subsection 2(b)(ii) hereof, and such registration shall not reduce the number of available
registrations with respect to the Qualified Holders under this Section 2 in the event that the
Registration Statement excludes more than 25% of the aggregate number of Registrable Securities
that the Demanding Qualified Holders requested be included.

     (c) The Trust shall be entitled to postpone (but not more than once in any 12-month period),
for a reasonable period of time not in excess of 90 days, the filing of a Registration Statement if
the Trust delivers to the Demanding Qualified Holders a certificate signed by the Trust certifying
that, in its good faith judgment, it would be detrimental to the Trust and its unitholders for such
Registration Statement to be filed and it is therefore beneficial to defer the filing of such
Registration Statement. If the Trust shall so postpone the filing of a Registration Statement, the
Demanding Qualified Holders shall have the right to withdraw the request for registration by giving
written notice to the Trust within 20 days of the anticipated termination date of the postponement
period, as provided in the certificate delivered thereto, and in the event of such withdrawal, such
request shall not reduce the number of available registrations with respect to the Qualified
Holders under this Section 2.

     (d) Whenever the Trust shall effect a Demand Registration pursuant to this Section 2 in
connection with an underwritten offering, no securities other than Registrable Securities shall be
included among the securities covered by such Demand Registration unless (i) the managing
underwriter of such offering shall have advised each holder of Registrable Securities requesting
such registration in writing that it believes that the inclusion of such other securities would not
adversely affect such offering or (ii) the inclusion of such other securities is approved by the
affirmative vote of the holders of at least a majority of the Registrable Securities included in
such Demand Registration by the Demanding Qualified Holders.

 

 

     SECTION 3. Registration Procedures. In connection with the registration obligations
of the Trust under Section 2 hereof, during the Effective Period, the Trust shall:

     (a) Prepare and file with the SEC a Registration Statement or Registration Statements,
including if so requested by the Qualified Holders a Shelf Registration Statement, on any
appropriate form under the Securities Act available for the sale of the Registrable Securities by
the holders thereof in accordance with the intended method or methods of distribution thereof, and
use commercially reasonable efforts to cause each such Registration Statement to become effective
and remain effective as provided herein; provided that before filing any Registration Statement or
Prospectus or any amendments or supplements thereto with the SEC (but excluding reports filed with
the SEC under the Exchange Act), furnish to the Qualified Holders, the Special Counsel and the
managing underwriter or underwriters, if any, copies of all such documents proposed to be filed at
least three (3) Business Days prior to the filing of such Registration Statement or amendment
thereto or Prospectus or supplement thereto.

     (b) Subject to Section 3(j), prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such Registration Statement
continuously effective during the period provided herein with respect to the disposition of all
securities covered by such Registration Statement; cause the related Prospectus to be supplemented
by any required prospectus supplement or free writing prospectus, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and
use commercially reasonable efforts to comply with the provisions of the Securities Act applicable
to the Trust with respect to the disposition of all securities covered by such Registration
Statement during the period provided herein with respect to the disposition of all securities
covered by such Registration Statement in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or such Prospectus as so
supplemented.

     (c) Subject to Section 3(j), from and after the date a Registration Statement is declared
effective, the Trust shall, as promptly as practicable after the date the Required Information is
delivered pursuant to Section 4 hereof and in accordance with this Section 3(c):

     (i) if required by applicable law, file with the SEC a post-effective amendment to the
Registration Statement or prepare and, if required by applicable law, file a supplement to
the related Prospectus or a supplement or amendment to any document incorporated therein by
reference or file any other required document so that the Qualified Holder delivering such
Required Information is named as a selling securityholder in the Registration Statement and
the related Prospectus in such a manner as to permit such Qualified Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with applicable law
and, if the Trust shall file a post-effective amendment to the Registration Statement, use
commercially reasonable efforts to cause such post-effective amendment to be declared
effective under the Securities Act as promptly as is practicable; and

     (ii) provide such Qualified Holder copies of any documents filed pursuant to Section
3(c)(i);

 

 

provided, that, if the Required Information is delivered during a Deferral Period, the Trust shall
so inform the Qualified Holder delivering such Required Information. The Trust shall notify such
Qualified Holder as promptly as practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to Section 3(c)(i). Notwithstanding anything contained
herein to the contrary, the Trust shall be under no obligation to name any Qualified Holder that
has failed to deliver the Required Information in the manner set forth in Section 4 hereof as a
selling securityholder in any Registration Statement or related Prospectus.

     (d) As promptly as practicable give notice to the Qualified Holders, the Special Counsel and
the managing underwriter or underwriters, if any, (i) when any Prospectus, Registration Statement
or post-effective amendment to a Registration Statement has been filed with the SEC and, with
respect to a Registration Statement or any post-effective amendment thereto, when the same has been
declared effective, (ii) of any request, following the effectiveness of any Registration Statement
under the Securities Act, by the SEC or any other federal or state governmental authority for
amendments or supplements to any Registration Statement or related Prospectus, (iii) of the
issuance by the SEC or any other federal or state governmental authority of any stop order
suspending the effectiveness of any Registration Statement or the initiation or threatening of any
proceedings for that purpose, (iv) of the receipt by the Trust of any notification with respect to
the suspension of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such
purpose, (v) of the occurrence of, but not the nature of or details concerning, a Material Event
and (vi) of the determination by the Trust that a post-effective amendment to a Registration
Statement will be filed with the SEC, which notice may, at the discretion of the Trust (or as
required pursuant to Section 3(j)), state that it constitutes a Deferral Notice, in which event the
provisions of Section 3(j) shall apply.

     (e) Use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or the lifting of any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction in
which they have been qualified for sale, in either case as promptly as practicable, and provide
prompt notice to each Qualified Holder of the withdrawal of any such order.

     (f) If requested by the managing underwriters, if any, or the Qualified Holders of the
Registrable Securities being sold in connection with an underwritten offering, promptly include in
a prospectus supplement or post-effective amendment such information as the managing underwriters,
if any, and such Qualified Holders may reasonably request in order to permit the intended method of
distribution of such securities and make all required filings of such prospectus supplement or such
post-effective amendment as soon as practicable after the Trust has received such request;
provided, however, that the Trust shall not be required to take any actions under this Section 3(f)
that are not, in the opinion of counsel for the Trust, in compliance with applicable law.

     (g) As promptly as practicable furnish to each Qualified Holder, the Special Counsel and each
managing underwriter, if any, upon request, at least one (1) conformed copy of the Registration
Statement and any amendment thereto, including exhibits and, if requested, all documents
incorporated or deemed to be incorporated therein by reference.

 

 

     (h) Deliver to each Qualified Holder, the Special Counsel and each managing underwriter, if
any, in connection with any sale of Registrable Securities pursuant to a Registration Statement as
many copies of the Prospectus relating to such Registrable Securities (including each preliminary
Prospectus) and any amendment or supplement thereto as such persons may reasonably request; and the
Trust hereby consents (except during such periods that a Deferral Notice is outstanding and has not
been revoked and subject to Section 3(j)(ii) hereof) to the use of such Prospectus or each
amendment or supplement thereto by each Qualified Holder and the underwriters, if any, in
connection with any offering and sale of the Registrable Securities covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

     (i) Prior to any public offering of the Registrable Securities pursuant to a Registration
Statement, use commercially reasonable efforts to register or qualify or cooperate with the
Qualified Holders, the Special Counsel and the underwriters, if any, in connection with the
registration or qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Qualified Holder or underwriter reasonably requests
in writing (which request may be included with the Required Information); prior to any public
offering of the Registrable Securities pursuant to the Registration Statement, use commercially
reasonable efforts to keep each such registration or qualification (or exemption therefrom)
effective during the period provided herein with respect to the disposition of all securities
covered by such Registration Statement in connection with such Qualified Holder’s offer and sale of
Registrable Securities pursuant to such registration or qualification (or exemption therefrom) and
do any and all other acts or things reasonably necessary or advisable to enable the disposition in
such jurisdictions of such Registrable Securities in the manner set forth in the relevant
Registration Statement and the related Prospectus; provided that neither the Trust nor the Trust
will be required to (i) qualify as a foreign entity or as a dealer in securities in any
jurisdiction where it would not otherwise be required to qualify but for this Agreement or (ii)
take any action that would subject it to general service of process or to taxation in any such
jurisdiction where it is not then so subject.

     (j) Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of any
Registration Statement or the initiation of proceedings with respect to any Registration Statement
under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact as a result of which (x) any Registration Statement shall contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, or (y) any Prospectus shall contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading
(each of subclauses (x) and (y) hereof, a “Material Event”), or (C) the occurrence or existence of
any pending corporate development of the Trust that, in the reasonable discretion of the Trust,
makes it appropriate to suspend the availability of any Registration Statement and the related
Prospectus, the Trust shall:

     (i) in the case of clause (B) above, subject to clause (ii) below, as promptly as
practicable prepare and file, if necessary pursuant to applicable law, a post-effective
amendment to such Registration Statement or a supplement to the related Prospectus or

 

 

any document incorporated therein by reference or file any other required document that
would be incorporated by reference into such Registration Statement and Prospectus so that
such Registration Statement does not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and such Prospectus does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder, and, in the case of a post-effective amendment to a
Registration Statement, subject to clause (ii) below, use commercially reasonable efforts to
cause it to be declared effective as promptly as practicable; and

     (ii) give notice to the Qualified Holders and the Special Counsel, if any, that the
availability of any Registration Statement is suspended (a “Deferral Notice”) and, upon
receipt of any Deferral Notice, each Qualified Holder agrees not to sell any Registrable
Securities pursuant to the Registration Statement until such Qualified Holder’s receipt of
copies of the supplemented or amended Prospectus provided for in clause (i) above, or until
it is advised in writing by the Trust that the Prospectus may be used, and has received
copies of any additional or supplemental filings that are incorporated or deemed
incorporated by reference in such Prospectus, in which case such Qualified Holder will use
the Prospectus as so supplemented or amended in connection with any offering and sale of
Registrable Securities covered thereby.

The Trust shall use commercially reasonable efforts to ensure that the use of the Prospectus may be
resumed (x) in the case of clause (A) above, as promptly as is practicable, (y) in the case of
clause (B) above, as soon as, in the sole judgment of the Trust, public disclosure of such Material
Event would not be prejudicial to or contrary to the interests of the Trust or, if necessary to
avoid unreasonable burden or expense, as soon as practicable thereafter, and (z) in the case of
clause (C) above, as soon as, in the reasonable discretion of the Trust, such suspension is no
longer appropriate. The Trust shall be entitled to exercise its right under this Section 3(j) to
suspend the availability of any Registration Statement or any Prospectus (the “Deferral Period”)
for use by any Qualified Holder.

     (k) If reasonably requested by a Qualified Holder or any underwriter participating in any
disposition of Registrable Securities, if any, in writing in connection with a disposition by such
Qualified Holder of Registrable Securities pursuant to a Registration Statement, make reasonably
available for inspection during normal business hours by a representative for such Qualified
Holder(s) of such Registrable Securities, any broker-dealers, underwriters, attorneys and
accountants retained by such Qualified Holder(s), and any attorneys or other agents retained by a
broker-dealer or underwriter engaged by such Qualified Holder(s), all relevant financial and other
records and pertinent corporate documents and properties of the Trust, and cause the appropriate
officers, directors and employees of the Trust to make reasonably available for inspection during
normal business hours on reasonable notice all relevant information reasonably requested by such
representative for the Qualified Holder(s), or any such broker-dealers, underwriters, attorneys or
accountants in connection with such disposition, in each case as is customary for similar “due
diligence” examinations; provided that (i) the Trust shall not be obligated to make available for
inspection any information that, based on the reasonable advice

 

 

of counsel to the Trust, could subject the Trust to the loss of privilege with respect thereto
and (ii) such persons shall first agree in writing with the Trust that any information that is
reasonably designated by the Trust as confidential at the time of delivery of such information
shall be kept confidential by such persons and shall be used solely for the purposes of exercising
rights under this Agreement, unless (a) disclosure of such information is required by court or
administrative order or is necessary to respond to inquiries of regulatory authorities, (b)
disclosure of such information is required by law (including any disclosure requirements pursuant
to federal securities laws in connection with the filing of any Registration Statement or the use
of any Prospectus referred to in this Agreement) or (c) such information becomes generally
available to the public other than as a result of a disclosure or failure to safeguard by any such
person; and provided further that the foregoing inspection and information gathering shall, to the
greatest extent possible, be coordinated on behalf of all the Qualified Holders and the other
parties entitled thereto by Special Counsel, if any, or another representative selected by the
Qualified Holders holding a majority of Registrable Securities being registered pursuant to such
Registration Statement. Any person legally compelled or required by administrative or court order
or by a regulatory authority to disclose any such confidential information made available for
inspection shall provide the Trust with prompt prior written notice of such requirement so that the
Trust may seek a protective order or other appropriate remedy.

     (l) Use its best efforts to comply with all applicable rules and regulations of the SEC and
make generally available to the Trust’s securityholders earnings statements (which need not be
audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar rule promulgated under the Securities Act) for a 12-month period commencing on the
first day of the first fiscal quarter of the Trust commencing after the effective date of a
Registration Statement, which statements shall be made available no later than the next succeeding
Business Day after such statements are required to be filed with the SEC.

     (m) Cooperate with each Qualified Holder and the managing underwriters, if any, to facilitate
the timely preparation and delivery of certificates representing Registrable Securities sold or to
be sold pursuant to a Registration Statement, which certificates shall not bear any restrictive
legends stating that the Registrable Securities evidenced by the certificates are “restricted
securities” (as defined by Rule 144), and cause such Registrable Securities to be registered in
such names as such Qualified Holder or the managing underwriters, if any, may request in writing at
least two (2) Business Days prior to any sale of such Registrable Securities.

     (n) Provide a CUSIP number for all Registrable Securities covered by each Registration
Statement not later than the effective date of such Registration Statement.

     (o) Cooperate with and assist each Qualified Holder, the Special Counsel and any underwriters
participating in any disposition of Registrable Securities in any filings required to be made with
the Financial Industry Regulatory Authority in connection with the filing or effectiveness of any
Registration Statement, any post-effective amendment thereto or any offer or sale of Registrable
Securities thereunder.

     (p) In the case of a proposed sale pursuant to a Registration Statement involving an
underwritten offering, the Trust shall enter into such customary agreements on behalf of he Trust
(including, if requested, an underwriting agreement in reasonably customary form) and take all

 

 

such other action, if any, as Qualified Holders holding a majority of the Registrable
Securities being sold or any managing underwriters reasonably shall request in order to facilitate
any disposition of the Registrable Securities pursuant to such Registration Statement, including,
without limitation, (i) using commercially reasonable efforts to cause its counsel to deliver an
opinion or opinions in reasonably customary form, (ii) using its reasonable best efforts to cause
its officers to execute and deliver all customary documents and certificates on behalf of the Trust
and (iii) using its reasonable best efforts to cause the Trust’s independent public accountants to
provide a comfort letter or letters in reasonably customary form.

     (q) Use its reasonable best efforts to support the marketing of the Registrable Securities
covered by the Registration Statement taking into account the Trust’s business needs.

     (r) Upon (i) the filing of any Registration Statement and (ii) the effectiveness of any
Registration Statement, announce the same, in each case by press release to Reuters Economic
Services and Bloomberg Business News.

     (s) Use commercially reasonable efforts to cause all such Registrable Securities to be listed
on each securities exchange on which similar securities issued by the Trust are listed or traded.

     SECTION 4. Qualified Holder’s Obligations.

     (a) Each Qualified Holder agrees that if such Qualified Holder wishes to sell Registrable
Securities pursuant to a Registration Statement and related Prospectus, it will do so only in
accordance with this Section 4 and Section 3(j) hereof. The Trust may require each seller of
Registrable Securities as to which any registration is being effected to furnish to the Trust in
writing such information required in connection with such registration regarding such seller and
the distribution of such Registrable Securities as the Trust may, from time to time, reasonably
request in writing (the “Required Information”) and the Trust may exclude from such registration
the Registrable Securities of any seller who unreasonably fails to furnish such information within
a reasonable time after receiving such request. In addition, following the date that a
Registration Statement is declared effective, each Qualified Holder wishing to sell Registrable
Securities pursuant to a Registration Statement and related Prospectus agrees to deliver, at least
seven (7) Business Days prior to any intended distribution of Registrable Securities under the
Registration Statement, to the Trust any additional Required Information as the Trust may
reasonably request so that the Trust may complete or amend the information required by any
Registration Statement.

     (b) Each Qualified Holder agrees, by acquisition of the Registrable Securities, that no
Qualified Holder shall be entitled to sell any of such Registrable Securities pursuant to a
Registration Statement or to receive a Prospectus relating thereto unless such Qualified Holder has
furnished the Trust with the Required Information as required pursuant to this Section 4 and the
information set forth in the next sentence. Each Qualified Holder agrees promptly to furnish to
the Trust all information required to be disclosed in order to make the information previously
furnished to the Trust by such Qualified Holder not misleading and any other information regarding
such Qualified Holder and the distribution of such Registrable Securities as the Trust may from
time to time reasonably request. Any sale of any Registrable Securities by any

 

 

Qualified Holder shall constitute a representation and warranty by such Qualified Holder that
the information relating to such Qualified Holder and its plan of distribution is as set forth in
the Prospectus delivered by such Qualified Holder in connection with such disposition, that such
Prospectus does not as of the time of such sale contain any untrue statement of a material fact
relating to or provided by such Qualified Holder or its plan of distribution and that such
Prospectus does not as of the time of such sale omit to state any material fact relating to or
provided by such Qualified Holder or its plan of distribution necessary in order to make the
statements in such Prospectus, in the light of the circumstances under which they were made, not
misleading.

     SECTION 5. Registration Expenses. The Company shall bear all out-of-pocket fees and
expenses incurred in connection with the performance by the Trust of its obligations under Sections
2 and 3 of this Agreement whether or not any Registration Statement is declared effective. Such
fees and expenses shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (x) with respect to filings required to be made
with the Financial Industry Regulatory Authority and (y) of compliance with federal and state
securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of
the Special Counsel, if any, in connection with Blue Sky qualifications of the Registrable
Securities under the laws of such jurisdictions as Qualified Holders holding a majority of the
Registrable Securities being sold pursuant to a Registration Statement may designate)), (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable
Securities in a form eligible for deposit with The Depository Trust Company), (iii) duplication
expenses relating to copies of any Registration Statement or Prospectus delivered to any Qualified
Holders hereunder, (iv) fees and disbursements of counsel for the Trust and the Special Counsel, if
any, in connection with any Registration Statement, (v) fees of accountants for consents and cold
comfort and (vi) the fees and expenses incurred in connection with the listing by the Trust of the
Registrable Securities on any securities exchange on which similar securities of the Trust are then
listed. However, the Trust shall pay the internal expenses of the Trust (including, without
limitation, all salaries and expenses of officers and employees performing legal or accounting
duties), the expense of any annual audit and the other fees and expenses of the accountants for the
Trust not covered by clause (v) of the preceding sentence, other than any expense that would not
have otherwise been incurred but for the fact of the filing of the Registration Statement or the
timing thereof, the fees and expenses of any person, including special experts, retained by the
Trust and the fees and expenses of any transfer agent for the Registrable Securities.
Notwithstanding the provisions of this Section 5, each seller of Registrable Securities shall pay
its own selling expenses, including any underwriting discount and commissions, all registration
expenses to the extent required by applicable law and, except as otherwise provided herein, fees
and expenses of counsel.

     SECTION 6. Indemnification and Contribution.

     (a) Indemnification by the Trust. The Trust shall indemnify and hold harmless ECA, each
Qualified Holder and each person, if any, who controls ECA or any Qualified Holder within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including, without limitation, any
reasonable legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) (“Expenses”) to which ECA, any Qualified Holder or

 

 

any controlling person of ECA or any Qualified Holder may become subject, under or with
respect to the Securities Act, the Exchange Act, any other federal or state securities law or
otherwise, insofar as such Expenses are caused by any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement at the date and time as of which such
Registration Statement was declared effective by the SEC, any preliminary Prospectus or the
Prospectus, or caused by any omission or alleged omission to state therein a material fact required
to be stated therein or necessary in order to make the statements therein (in the case of a
preliminary Prospectus or Prospectus, in light of the circumstances under which they were made),
not misleading, but in each case only with respect to written information relating to the Trust
furnished by or on behalf of the Trust specifically for inclusion in the documents referred to in
the foregoing indemnity. Subject to Section 6(e) of this Agreement, the Trust shall reimburse ECA,
the Qualified Holders and any controlling persons thereof for any legal or other expenses
reasonably incurred by ECA, the Qualified Holders or any controlling persons thereof in connection
with the investigation or defense of any Expenses with respect to which ECA and the Qualified
Holders or any controlling persons thereof is entitled to indemnity by the Trust under this
Agreement. In connection with any underwritten offering pursuant to Section 8, the Trust will also
agree to indemnify the underwriters, if any, their officers and directors and each person who
controls such underwriters (within the meaning of the Securities Act and the Exchange Act) on terms
and conditions similar to those set forth herein with respect to the indemnification of ECA and the
Qualified Holders, if requested in connection with any Registration Statement, such indemnification
to be set forth in any underwriting agreement to be entered into by the Trust with such
underwriter(s).

     (b) Indemnification by ECA. The Company shall indemnify and hold harmless each Qualified
Holder (other than ECA), the Trust and The Bank of New York Mellon Trust Company, N.A., as trustee
of the Trust (the “Trustee”) and any agents thereof, individually and as trustee, as the case may
be, and each person, if any, who controls such Qualified Holder, the Trust or the Trustee within
the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any Expenses (excluding, however, any taxes, fees and other charges payable by the Trust
on, based on or measured by any fees, commissions or compensation received by the Trust for its
services under this Agreement) to which such Qualified Holder, the Trust, the Trustee or any agent
thereof or any controlling person of such Qualified Holder, the Trust or the Trustee may become
subject, under or with respect to the Securities Act, the Exchange Act, any other federal or state
securities law or otherwise, insofar as such Expenses are caused by (i) an untrue statement or
alleged untrue statement of a material fact contained in any Registration Statement or an omission
or alleged omission to state a material fact required to be stated in or necessary to make the
statements therein not misleading at the date and time as of which such Registration Statement was
declared effective by the SEC, (ii) an untrue statement or alleged untrue statement of a material
fact contained in any preliminary Prospectus or any Prospectus or an omission or alleged omission
to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading as of the date of such preliminary
Prospectus or Prospectus and as of the closing of the sale of Trust Units sold thereunder or (iii)
any untrue statement or alleged untrue statement of a material fact contained in any other filing,
report or other action taken with respect to the Securities Act, the Exchange Act or any other
Federal or state securities law, the listing of the Trust Units on the New York Stock Exchange or
another national securities exchange or any omission or alleged omission to state a material fact
required to be stated therein

 

 

or necessary to make the statements therein not misleading; provided, however, that ECA shall
not be liable to and shall not indemnify the Qualified Holders (other than ECA), the Trust or any
agents or controlling persons thereof, individually or as trustee, as the case may be, in any such
case under the preceding clauses (i) and (ii) of this Section 6(b) to the extent that any such
Expense arises out of, is based upon or is connected with information relating to (a) the Trust in
its individual capacity or (b) such Qualified Holder, in either case prepared or furnished by the
Trust or such Qualified Holder, as the case may be, expressly for use in any Registration
Statement, any preliminary Prospectus or any Prospectus; and provided, further, that ECA shall not
be liable to the Qualified Holders (other than ECA), the Trust or any agents or controlling persons
thereof, individually or as trustee, as the case may be, in any such case under the preceding
clause (iii) of this Section 6(b) to the extent that any such Expense arises out of, is based upon
or is connected with information relating to (a) the Trust in its individual capacity prepared or
furnished by the Trust and the Trust is found liable or (b) such Qualified Holder prepared or
furnished by such Qualified Holder and such Qualified Holder is found liable. Subject to Section
6(e) of this Agreement, ECA shall reimburse the Qualified Holders (other than ECA), the Trust and
the Trustee and any agents or controlling persons thereof for any legal or other expenses
reasonably incurred by the Qualified Holders (other than ECA), the Trust and the Trust or any agent
or controlling persons thereof in connection with the investigation or defense of any Expenses with
respect to which the Qualified Holders (other than ECA), the Trust and the Trustee or any agent or
controlling persons thereof is entitled to indemnity by ECA under this Agreement.

     (c) Indemnification by Certain of the Qualified Holders. Each Qualified Holder (other than
ECA), severally and not jointly, shall indemnify and hold harmless ECA, the Trust, the Trustee and
any agents thereof, individually and as trustee, and any other Qualified Holder and each person, if
any, who controls ECA, the Trust, the Trustee and any agents thereof, individually and as trustee,
or any other Qualified Holder within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any and all Expenses to which ECA, the Trust, the
Trustee and any agents thereof, individually and as trustee, any other Qualified Holder or any
controlling person of ECA, the Trust, the Trustee and any agents thereof, individually and as
trustee, or any other Qualified Holder may become subject, under or with respect to the Securities
Act, the Exchange Act, any other federal or state securities law or otherwise, insofar as such
Expenses are caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement at the date and time as of which such Registration
Statement was declared effective by the SEC, any preliminary Prospectus or the Prospectus, or
caused by any omission or alleged omission to state therein a material fact required to be stated
therein or necessary in order to make the statements therein (in the case of a preliminary
Prospectus or Prospectus, in light of the circumstances under which they were made), not
misleading, but in each case only with respect to written information relating to such Qualified
Holder (other than ECA) furnished by or on behalf of such Qualified Holder specifically for
inclusion in the documents referred to in the foregoing indemnity. Subject to Section 6(e) of this
Agreement, such Qualified Holder shall reimburse ECA, the Trust, the Trustee and any agents
thereof, individually and as trustee, the other Qualified Holders and any agents or controlling
persons thereof for any legal or other expenses reasonably incurred by ECA, the Trust, the Trustee
and any agents thereof, individually and as trustee, the other Qualified Holders or any agent or
controlling persons thereof in connection with the investigation or defense of any Expenses with
respect to which ECA, the Trust, the Trustee and

 

 

any agents thereof, individually and as trustee, and the other Qualified Holders or any agent
or controlling persons thereof is entitled to indemnity by such Qualified Holder under this
Agreement.

     (d) Conduct of Indemnification Proceedings. In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect of which indemnity
may be sought pursuant to Section 6(a), 6(b) or 6(c) hereof, such person (the “Indemnified Party”)
shall promptly notify the person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing and the Indemnifying Party, upon request of the Indemnified Party, shall retain
counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party and any
others the Indemnifying Party may designate in such proceeding and shall pay the reasonable fees
and disbursements of such counsel related to such proceeding. In any such proceeding, any
Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the
Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both the Indemnifying
Party and the Indemnified Party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them, other than solely by
virtue of the rights and obligations of the Indemnifying Party and the Indemnified Party under this
Section 6. It is understood that the Indemnifying Party shall not, in respect of the legal
expenses of any Indemnified Party in connection with any proceeding or related proceedings in the
same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by, in the case of
parties indemnified pursuant to Section 6(a), the Qualified Holders holding a majority of the
Registrable Securities covered by the Registration Statement held by Qualified Holders that are
indemnified parties pursuant to Section 6(a) and, in the case of parties indemnified pursuant to
Section 6(b) or Section 6(c), the Trust. The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final, non-appealable judgment for the plaintiff, the Indemnifying Party agrees to
indemnify the Indemnified Party from and against any Expenses by reason of such settlement or
judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of such Indemnified
Party from all liability on claims that are the subject matter of such proceeding.

     (e) Contribution. To the extent that the indemnification provided for in Section 6(a), 6(b)
or 6(c) is unavailable to an Indemnified Party or insufficient in respect of any Expenses referred
to therein, then each Indemnifying Party under such paragraph, in lieu of indemnifying such
Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such Expenses (i) in such proportion as is appropriate to reflect the relative
benefits received by the Indemnifying Party or Indemnifying Parties on the one hand and the
Indemnified Party or Indemnified Parties on the other hand or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the

 

 

relative fault of the Indemnifying Party or Indemnifying Parties on the one hand and of the
Indemnified Party or Indemnified Parties on the other hand in connection with the statements or
omissions that resulted in such Expenses, as well as any other relevant equitable considerations.
The relative fault of ECA and the other Qualified Holders on the one hand and the Trust on the
other hand shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
required to be stated or necessary in order to make the statements (in the case of a preliminary
Prospectus or Prospectus, in light of the circumstances under which they were made) not misleading,
relates to information supplied by ECA, the other Qualified Holders or by the Trust, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Qualified Holders’ respective obligations to contribute pursuant
to this Section 6 are several in proportion to the respective number of Registrable Securities they
have sold pursuant to a Registration Statement, and not joint.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 6(e) were determined by pro rata allocation or by any other method of allocation that
does not take into account the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the Expenses referred
to in the immediately preceding paragraph shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any such action or claim. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

     (f) The remedies provided for in this Section 6 are not exclusive and shall not limit any
rights or remedies which may otherwise be available to an Indemnified Party at law or in equity,
hereunder or otherwise.

     (g) The indemnity and contribution provisions contained in this Section 6 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of any Qualified Holder, any person controlling ECA or any
other Qualified Holder or any Affiliate of ECA or any other Qualified Holder or by or on behalf of
the Trust, its officers or directors or any person controlling the Trust and (iii) the sale of any
Registrable Securities by any Qualified Holder.

     SECTION 7. Information Requirements. The Trust covenants that, if at any time before
the end of the Effective Period the Trust is not subject to the reporting requirements of the
Exchange Act, it will cooperate with any Qualified Holder and take such further reasonable action
as any Qualified Holder may reasonably request in writing (including, without limitation, making
such reasonable representations as any such Qualified Holder may reasonably request), all to the
extent required from time to time to enable such Qualified Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144 or Rule 144A under the Securities Act and customarily taken in connection with sales
pursuant to such exemptions. Upon the written request of any Qualified Holder, the Trust shall
deliver to such Qualified Holder a written statement as to whether the Trust has complied with such
filing requirements. Notwithstanding the foregoing, nothing in this

 

 

Section 7 shall be deemed to require the Trust to register any of the Trust’s securities under
any section of the Exchange Act.

     SECTION 8. Underwritten Registrations. The Qualified Holders of Registrable
Securities covered by any Registration Statement who desire to do so may sell such Registrable
Securities to an underwriter in an underwritten offering for reoffering to the public. If any of
the Registrable Securities covered by any Registration Statement are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers that will administer
the offering will be selected by the Qualified Holders holding a majority of such Registrable
Securities included in such offering, subject to the consent of the Trust (which shall not be
unreasonably withheld or delayed), and such Qualified Holders shall be responsible for all
underwriting commissions and discounts and any transfer taxes in connection therewith. No person
may participate in any underwritten registration hereunder unless such person (i) agrees to sell
such person’s Registrable Securities on the basis reasonably provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such arrangements and (ii)
completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting arrangements.

     SECTION 9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, without the written consent of the Trust, ECA and the
Qualified Holders holding a majority of Registrable Securities. Notwithstanding the foregoing, a
waiver or consent to depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Qualified Holders whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the rights of other
Qualified Holders may be given by Qualified Holders of at least a majority of the Registrable
Securities being sold by such Qualified Holders pursuant to such Registration Statement; provided
that the provisions of this sentence may not be amended, modified or supplemented except in
accordance with the provisions of the immediately preceding sentence. Notwithstanding the
foregoing, this Agreement may be amended by written agreement signed by the Trust, without the
consent of the Qualified Holders of Registrable Securities, to cure any ambiguity or to correct or
supplement any provision contained herein that may be defective or inconsistent with any other
provision contained herein, or to make such other provisions in regard to matters or questions
arising under this Agreement that shall not adversely affect the interests of the Qualified Holders
of Registrable Securities. Each Qualified Holder of Registrable Securities outstanding at the time
of any such amendment, modification, supplement, waiver or consent or thereafter shall be bound by
any such amendment, modification, supplement, waiver or consent effected pursuant to this Section
9(a), whether or not any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is delivered to such
Qualified Holder.

     (b) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand delivery, by facsimile, by courier guaranteeing overnight delivery or by
first-class mail, return receipt requested, and shall be deemed given

 

 

     (i) when made, if made by hand delivery, (ii) upon confirmation, if made by facsimile, (iii) one
(1) Business Day after being deposited with such courier, if made by overnight courier or (iv) on
the date indicated on the notice of receipt, if made by first-class mail, to the parties as
follows:

     (i) if to a Qualified Holder other than ECA, at the most current address given by such
Qualified Holder to the Trust (initially such address being that which is included on the
signature page hereto with respect to such Qualified Holder other than ECA);

     (ii) if to the Trust or the Trust, to:

ECA Marcellus Trust I

c/o The Bank of New York Mellon Trust Company, N.A.

Institutional Trust Services

919 Congress Avenue, Suite 500

Austin, Texas 78701

Attention: Mike J. Ulrich

Fax: (512) 479-2553

with a copy to:

Bracewell & Giuliani LLP

111 Congress Avenue

Suite 2300

Austin, Texas 78701

Attention: Thomas W. Adkins

Fax: (512) 479-3940

     (iii) if to ECA, to:

4643 South Ulster Street

Suite 1100

Denver, Colorado 80237

Attention: Michael S. Fletcher

Fax: (303) 694-2763

with a copy to:

501 56th Street

Charleston, West Virginia 25304

Attention Donald C. Supcoe

Fax: (304) 925-3285

Vinson & Elkins L.L.P.

1001 Fannin, Suite 2500

Houston, Texas 77002

Attention: David P. Oelman

Fax: (713) 615-5861

 

 

or to such other address as such person may have furnished to the other persons identified in this
Section 9(b) in writing in accordance herewith.

     (c) Approval of Qualified Holders. Whenever the consent or approval of Qualified Holders of a
specified percentage of Registrable Securities is required hereunder, Registrable Securities held
by Affiliates (as such term is defined in Rule 405 under the Securities Act) of the Trust (other
than ECA or subsequent Qualified Holders if such Qualified Holders are deemed to be such Affiliates
solely by reason of their holdings of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Qualified Holders of such required
percentage.

     (d) Successors and Transferees. Any person or group of persons who purchases any Registrable
Securities from ECA or otherwise holds any Registrable Securities as a result of any sale,
liquidation, dividend or distribution by ECA or any of its Affiliates shall be deemed, for purposes
of this Agreement, to be a transferee of ECA, but if and only if such person or group (i) agrees to
be designated as a transferee, (ii) is specifically designated as a transferee in writing by ECA to
the Trust (iii) holds Registrable Securities representing at each one (1) million of the
then-outstanding Registrable Securities and (iv) in the case of a group such group shall
collectively constitute a Transferee for purposes of this Agreement (including without limitation,
for purposes of exercising any Demand Registration right transferred by ECA to such group) (a
“Transferee”). This Agreement shall inure to the benefit of and be binding upon such Transferees
and shall inure to the benefit of and be binding upon each such Transferees, provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms thereof. If ECA designates any person as a Transferee in
accordance with this Section 9(d), then the Registrable Securities acquired by such Transferee
shall be held subject to all of the terms of this Agreement, and by taking and holding such
Registrable Securities, such person shall be conclusively deemed to have agreed to be bound by and
to perform all of the terms and provisions of this Agreement and such person shall be entitled to
receive the benefits hereof.

     (e) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (f) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE.

     (h) Severability. If any term, provision, covenant or restriction of this Agreement is held
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions set forth herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, and the parties hereto shall use their reasonable best
efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction, it being

 

 

intended that all of the rights and privileges of the parties shall be enforceable to the
fullest extent permitted by law.

     (i) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Trust with respect to the Registrable Securities. There are no
restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein, with respect to the registration rights granted by the Trust with respect to the
Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the
parties with respect to such registration rights. No party hereto shall have any rights, duties or
obligations other than those specifically set forth in this Agreement.

     (j) Termination. This Agreement and the obligations of the parties hereunder shall terminate
upon the end of the Effective Period, except for any liabilities or obligations under Section 4, 5
or 6 hereof, each of which shall remain in effect in accordance with its terms.

     (k) Specific Enforcement; Venue. The parties hereto acknowledge and agree that each would be
irreparably damaged if any of the provisions of this Agreement are not performed by the other in
accordance with their specific terms or are otherwise breached. It is accordingly agreed that each
party shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement
by the other and to enforce this Agreement and the terms and provisions hereof specifically against
the other, in addition to any other remedy to which such aggrieved party may be entitled at law or
in equity. Any action or proceeding seeking to enforce any provision of, or based on any rights
arising out of, this Agreement may be brought against any of the parties in the FEDERAL AND WEST
VIRGINIA STATE COURTS SITTING IN CHARLESTON, KANAWHA COUNTY, WEST VIRGINIA and the FEDERAL AND
TEXAS STATE COURTS SITTING IN AUSTIN, TRAVIS COUNTY, TEXAS and each of the parties consents to the
jurisdiction of such courts (and of the appropriate appellate courts) in any such action or
proceeding and waives any objection to venue laid therein. Process in any action or proceeding
referred to in the preceding sentence may be served on any party anywhere in the world.

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	ECA MARCELLUS TRUST I

 	 
	 	By:  	The Bank of New York Mellon
Trust Company, N.A., as trustee 	 
	 
	 
	 
	 	By:  	
 	 
	 	Name:   	 
	 	Title:   	 
	 

	 	 	 	 	 

Signature Page to Registration Rights Agreement

 

 

	 	 	 	 	 
	 	ENERGY CORPORATION OF AMERICA

 	 
	 	By:  	 	 
	 	Name:   	 
	 	Title:   	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	Name:  John Mork 	 
	 
	 	Address for Notice:

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  Julie Mork 	 
	 
	 	Address for Notice:

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

Signature Page to Registration Rights Agreementexv10w2

Exhibit 10.2

CAMPUS CREST COMMUNITIES, INC.

EQUITY INCENTIVE COMPENSATION PLAN

ARTICLE 1

PURPOSE

     1.1. GENERAL. The purpose of the Campus Crest Communities, Inc. Equity Incentive
Compensation Plan (the “Plan”) is to promote the success, and enhance the value, of Campus Crest
Communities, Inc., a Maryland corporation (the “Company”), and its subsidiaries, by linking the
personal interests of their employees, officers and directors to those of Company stockholders and
by providing such persons with an incentive for outstanding performance. The Plan is further
intended to provide flexibility to the Company by increasing its ability to motivate, attract, and
retain the services of employees, officers and directors upon whose judgment, interest, and special
effort the successful conduct of the Company’s operation is largely dependent. Accordingly, the
Plan permits the grant of incentive awards from time to time to selected employees.

ARTICLE 2

EFFECTIVE DATE

     2.1. EFFECTIVE DATE. The Plan shall be effective as of the date upon which it shall
be approved by the stockholders of the Company (the “Effective Date”). The Plan shall be submitted
to the stockholders of the Company for approval within 6 months of the approval thereof by the
Board.

ARTICLE 3

DEFINITIONS

     3.1. DEFINITIONS. When a word or phrase appears in this Plan with the initial letter
capitalized, and the word or phrase does not commence a sentence, the word or phrase shall
generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly
different meaning is required by the context. The following words and phrases shall have the
following meanings:

     (a) “Award” means any grant or award of Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, Performance Shares, Performance Units, Dividend Equivalents, or
Other Stock-Based Award, or any other right or interest relating to Stock or cash, granted to a
Participant under the Plan.

     (b) “Award Agreement” means an agreement, contract, other instrument or document or other
evidence approved by the Board evidencing an Award. An Award Agreement may be in an electronic
medium, may be solely evidenced by a notation on the Company’s books and records, and need not
be signed by a representative of the Company or a Participant. An

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Award Agreement may be in the
form of individual award agreements or certificates or a document describing the terms and provisions of an Award or series of Awards under the Plan.

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

     (d) “Change in Control” with respect to any Award has the meaning assigned to the term in
the change in control agreement, if any, between the Participant and the Company, provided,
however that if there is no such change in control agreement, it shall mean any of the following
events:

     (i) the acquisition at any time by a “person” or “group” (as such terms are
used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the
“Exchange Act”)) who or which are the beneficial owners (as defined in Rule
13(d)-3 under the Exchange Act), directly or indirectly, of securities representing
more than thirty-five percent (35%) of the combined voting power in the election of
directors of the then outstanding securities of the Company or any successor of the
Company, unless the acquisition of securities resulting in such ownership by such
person or group had been approved by the Board of Directors of the Company;

     (ii) within any twelve-month period (beginning on or after the Effective Date)
the date a majority of members of the Company’s Board of Directors is replaced by
directors whose appointment or election is not endorsed by a majority of the members
of the Company’s Board of Directors before the date of the appointment or election;
or

     (iii) within any twelve-month period (beginning on or after the Effective Date)
the acquisition by any one person, or more than one person acting as a group, of the
assets of the Company that have a total gross fair market value of eighty-five
percent (85%) or more of the total gross fair market value of all of the assets of
the the Company immediately before such acquisition or acquisitions; provided that
such person or persons is not an entity controlled by the Company or the
shareholders of the Company.

     (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     (f) “Committee” means the committee of the Board described in Article 4.

     (g) “Company” means Campus Crest Communities, Inc., a Maryland corporation, or any
successor corporation.

     (h) “Covered Employee” means a covered employee as defined in Code Section 162(m)(3) or the
regulations thereunder.

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     (i) “Disability” means a physical or mental condition which is expected to result in death
or can be expected to last for a continuous period of not less than twelve (12) months and which renders the Participant incapable of performing the work for which he is employed or
similar work, as evidenced by eligibility for and actual receipt of benefits payable under a
group Equity disability plan or policy maintained by the Company or any of its Subsidiaries that
is by its terms applicable to the Participant.

     (j) “Dividend Equivalent” means a right granted to a Participant under Article 11.

     (k) “Effective Date” has the meaning assigned such term in Section 2.1.

     (l) “Full Value Award” means an Award other than in the form of an Option which is settled
by the issuance of stock.

     (m) “Fair Market Value” means, as of any given date, the closing price at which the shares
of common stock were traded (or if no transactions were reported on such date on the next
preceding date on which transactions were reported) on the New York Stock Exchange on such date,
or, if different, the principal exchange on which such stock is traded.

     (n) “Grant Date” means the date specified by the Committee on which a grant of an Award
shall become effective, which shall not be earlier than the date on which the Committee takes
action with respect thereto.

     (o) “Non-Employee Director” means a director of the Company who is not an employee of the
Company or an affiliate.

     (p) “Non-Qualified Stock Option” means an Option that is not intended to meet the
requirements of Section 422 of the Code or any successor provision thereto for an incentive
stock option.

     (q) “Option” means a right granted to a Participant under Article 7 of the Plan to purchase
Stock at a specified price during specified time periods. An Option under the Plan shall be a
Non-Qualified Stock Option or an Incentive Stock Option.

     (r) “Other Stock-Based Award” means a right, granted to a Participant under Article 13,
which relates to or is valued by reference to Stock or other Awards relating to Stock.

     (s) “Parent” means a corporation which owns or beneficially owns a majority of the
outstanding voting stock or voting power of the Company.

     (t) “Participant” means a person who, as an employee, officer or director of the Company or
any Subsidiary, has been granted an Award under the Plan.

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     (u) “Performance Criteria” means accepted objective financial criteria in the Company’s
businesses.

     (v) “Performance Objectives” means the performance goals or objectives, if any, established
pursuant to this Plan for Participants who have been granted Awards under the
Plan. Performance Objectives may be described in terms of Company-wide objectives or objectives
that are related to the performance of the individual Participant or the Subsidiary, division,
region, department or function within the Company or Subsidiary in which the Participant is
employed. Performance Objectives may be specified in absolute terms, in percentages, or in
terms of growth from period to period or growth rates over time, as well as measured relative to
an established or specially-created index of Company competitors or peers. Any competitor or
peer in a specially-created index ceases to exist during a Plan Year shall be disregarded for
the entire Plan Year. Performance Objectives need not be based upon an increase or positive
result under a business criterion and could include, for example, the maintenance of the status
quo or the limitation of economic losses (measured, in each case, by reference to a specific
business criterion). Performance Objectives may be based on any Performance Criteria, provided
that any Performance Criteria applicable to a Qualified Performance-Based Award shall be limited
to specified levels of or increases in the (1) earnings (including, but not limited to, earnings
per share or other corporate measures); (2) profit (including, but not limited to, net profit,
gross profit, operating profit, economic profit, profit margins or other profit measures); (3)
net income; (4) revenue; (5) stock price or performance; (6) stockholder return; (7) return
measures (including, but not limited to, return on assets, capital, equity or revenue); (8)
funds from operations (“FFO”); (9) EBITDA (including, but not limited to, cash flow measures);
(10) market share; (11) expenses (including, but not limited to, expense management, expense
efficiency ratios or other expense measures); (12) business expansions or consolidation
(including but not limited to, acquisitions and divestitures); (13) internal rate of return; and
(14) planning accuracy (as measured by comparing planned results to actual results). Except in
the case of a Qualified Performance-Based Award (unless and to the extent permitted under Code
Section 162(m)), if the Committee determines that a change in the business, operations,
corporate structure or capital structure of the Company, or the manner in which it conducts its
business, or other events or circumstances unrelated to the performance of the Participant
render the Performance Objectives unsuitable (including, but not limited to, asset write-downs
or impairment charges, litigation or claim judgments or settlements, changes in tax laws,
accounting principles or other laws or provisions affecting reported results, extraordinary
nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or
management’s discussion and analysis of financial condition and results of operations appearing
in the Company’s annual report to stockholders for the applicable year, foreign exchange gains
and losses, or any other identifiable event of a nonrecurring or extraordinary nature), the
Committee may modify such Performance Objectives or the related minimum acceptable level of
achievement, in whole or in part, as the Committee deems appropriate and equitable.

     (w) “Performance Share” means a bookkeeping entry that records the equivalent of one share
of Stock awarded pursuant to Article 9.

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     (x) “Performance Unit” means a bookkeeping entry that records a unit equivalent to $1.00
awarded pursuant to Article 9.

     (y) “Plan” means the Campus Crest Communities, Inc. Equity Incentive Compensation Plan, as
amended from time to time.

     (z) “Qualified Performance-Based Award” means an Award or portion of an Award that is
intended to qualify for the Section 162(m) Exemption. The Committee shall designate any
Qualified Performance-Based Award as such at the time of grant.

     (aa) “Restricted Stock” means Stock granted to a Participant under Article 10 that is
subject to certain restrictions and to risk of forfeiture.

     (bb) “Restricted Stock Unit” or “RSU” means a bookkeeping entry that records a unit
equivalent to one share of Stock awarded pursuant to Article 12.

     (cc) “Section 162(m) Exemption” means the exemption from the limitation on deductibility
imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(C) of the Code or
any successor provision thereto.

     (dd) “Specified Employee” means a specified employee as defined in Code Section 409A or
applicable proposed or final regulations thereunder.

     (ee) “Stock” means the $.___par value Common Stock of the Company, and such other
securities of the Company as may be substituted for Stock pursuant to Article 16.

     (ff) “Stock Appreciation Right” or “SAR” means a right granted to a Participant under
Article 8 to receive a payment equal to the difference between the Fair Market Value of a share
of Stock as of the date of exercise of the SAR over the grant price of the SAR, all as
determined pursuant to Article 8.

     (gg) “Subsidiary” means a corporation or other entity in which the Company has a direct or
indirect ownership or other equity interest.

     (hh) “1933 Act” means the Securities Act of 1933, as amended from time to time.

     (ii) “1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

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ARTICLE 4

ADMINISTRATION

     4.1. COMMITTEE. The Plan shall be administered by the Compensation Committee of the
Board or, at the discretion of the Board from time to time, by the Board. The Committee shall
consist of three or more members of the Board. It is intended that the directors appointed to
serve on the Committee shall be “non-employee directors” (within the meaning of Rule 16b-3
promulgated under the 1934 Act) and “outside directors” (within the meaning of Code Section 162(m)
and the regulations thereunder) to the extent that Rule 16b-3 and, if necessary for relief from the
limitation under Code Section 162(m) and such relief is sought by the Company, Code Section 162(m),
respectively, are applicable. However, the mere fact that a Committee member shall fail to qualify
under either of the foregoing requirements shall not invalidate any Award made by the Committee
which Award is otherwise validly made under the Plan. The members of the Committee shall be
appointed by, and may be changed at any time and from time to time in the discretion of, the Board.
During any time that the Board is acting as administrator of the Plan, it shall have all the
powers of the Committee hereunder, and any reference herein to the Committee (other than in this
Section 4.1) shall include the Board.

     4.2. ACTION BY THE COMMITTEE. For purposes of administering the Plan, the following
rules of procedure shall govern the Committee. A majority of the Committee shall constitute a
quorum. The acts of a majority of the members present at any meeting at which a quorum is present,
and acts approved unanimously in writing by the members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member by any officer or
other employee of the Company or any Parent or Subsidiary, the Company’s independent certified
public accountants.

     4.3. AUTHORITY OF COMMITTEE. The Committee has the exclusive power, authority and
discretion to:

     (a) Designate Participants;

     (b) Determine the type or types of Awards to be granted to each Participant;

     (c) Determine the number of Awards to be granted and the number of shares of Stock to which
an Award will relate;

     (d) Determine the terms and conditions of any Award granted under the Plan, including but
not limited to, the exercise price, grant price, or purchase price, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on
the exercisability of an Award, and accelerations or waivers thereof, based in each case on such
considerations as the Committee in its sole discretion determines;

6

 

     (e) Determine whether, to what extent, and under what circumstances an Award may be settled
in, or the exercise price of an Award may be paid in, cash, Stock, other Awards, or other
property, or an Award may be canceled, forfeited, or surrendered;

     (f) Prescribe the form of each Award Agreement, which need not be identical for each
Participant and which may be in the form of a document evidencing multiple Awards to one or more
Participants;

     (g) Decide all other matters that must be determined in connection with an Award;

     (h) Establish, adopt or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

     (i) Make all other decisions and determinations that may be required or authorized under
the Plan or as the Committee deems necessary or advisable to administer the Plan;

     (j) Amend the Plan or any Award Agreement as provided herein; and

     (k) Adopt such modification, procedures, and subplans as may be necessary or desirable to
comply with provisions of the laws of non-U.S. jurisdictions in which the Company or a
Subsidiary may operate, in order to assure the viability of the benefits of Awards granted to
Participants located in such other jurisdictions and to meet the objectives of the Plan.

          Notwithstanding the foregoing, grants of Awards to Non-Employee Directors hereunder shall
be made only in accordance with the terms, conditions and parameters of a plan, program or
policy for the compensation of Non-Employee Directors as in effect from time to time, and the
Committee may not make discretionary grants hereunder to Non-Employee Directors.

          Notwithstanding the above, the Board or the Committee may, by resolution, to (i) designate
officers, employees or directors of the Company or any of its Subsidiaries to be recipients of
Awards under the Plan, and (ii) to determine the number of such Awards to be received by any
such Participants; provided however, that such delegation of duties and responsibilities to an
officer of the Company may not be made with respect to the grant of Awards to eligible
Participants (a) who are subject to Section 16(a) of the 1934 Act at the Grant Date, or (b) who
as of the Grant Date are reasonably anticipated to become Covered Employees during the term of
the Award. The acts of such delegates shall be treated hereunder as acts of the Board and such
delegates shall report regularly to the Board and the Committee regarding the delegated duties
and responsibilities and any Awards so granted.

     4.4. DECISIONS BINDING. The Committee’s interpretation of the Plan, any Awards
granted under the Plan, any Award Agreement and all decisions and determinations by the Committee
with respect to the Plan are final, binding, and conclusive on all parties.

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     4.5. AWARD AGREEMENTS. Each Award shall be evidenced by an Award Agreement. Each
Award Agreement shall include such provisions, not inconsistent with the Plan, as may be specified
by the Committee. Award Agreements may be maintained and executed in electronic format.

ARTICLE 5

SHARES SUBJECT TO THE PLAN

     5.1. NUMBER OF SHARES. Subject to adjustment as provided in Sections 5.3 and 16.1,
the aggregate number of shares of Stock reserved and available for Awards or which may be used to
provide a basis of measurement for or to determine the value of an Award (such as with a Stock
Appreciation Right or Performance Unit Award) shall be 2,500,000 shares.

     5.2. REDUCTION RATIO. For purposes of Section 5.1, each share of Stock issued or
transferred pursuant to an Award other than an Option or Stock Appreciation Right shall reduce the
number of shares of Stock available for issuance under the Plan by two (2) shares. Awards that can
be settled only in cash shall not reduce the number of shares of Stock available for issuance under
the Plan.

     5.3. SHARE COUNTING.

          (a) From and after the Effective Date, the following shall not reduce the number of authorized
shares of Stock available for issuance under this Plan:

     (1) Common Stock reserved for issuance upon exercise or settlement, as applicable, of
Awards granted under the Plan to the extent the Awards expire or are canceled or
surrendered;

     (2) Restricted Stock granted under the Plan, to the extent such Restricted Stock is
forfeited under Section 15.9 or is otherwise surrendered to the Company before the
restricted period expires; and

     (3) Awards, to the extent the payment is actually made in cash.

          (b) From and after the Effective Date, the following shares of Stock shall not become
available for issuance under the Plan:

     (1) Shares tendered by Participants as full or partial payment to the Company upon
exercise of an Option granted under this Plan;

     (2) Shares reserved for issuance upon grant of SARs or RSUs, to the extent the number
of reserved shares exceeds the number of shares actually issued upon exercise of the SARs or
RSUs; and

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     (3) Shares withheld by, or otherwise remitted to, the Company to satisfy a
Participant’s tax withholding obligations upon the lapse of restrictions on Restricted Stock
or RSUs or the exercise of Options or SARs granted under the Plan or upon any other payment
or issuance of shares under the Plan.

          (c) Substitute Awards granted pursuant to Section 15.11 of the Plan shall not count against
the shares of Stock otherwise available for issuance under the Plan under Section 5.1.

          (d) A Stock Appreciation Right issued under an Award shall be counted as the equivalent of an
Option for purposes of counting against the shares of Stock available for issuance under the Plan
pursuant to Section 5.1.

     5.4. STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open
market.

     5.5. MINIMUM VESTING REQUIREMENTS. Full-Value Awards granted under the Plan to an
employee shall either (i) be subject to a minimum vesting period of three years (which may include
graduated vesting within such three-year period), or one year if the vesting is based on
Performance Objectives, or (ii) be granted solely in lieu of cash compensation.

ARTICLE 6

ELIGIBILITY

     6.1. GENERAL. Awards may be granted only to individuals who are employees, officers
or directors of the Company or employees or officers of a Parent or Subsidiary.

ARTICLE 7

STOCK OPTIONS

     7.1. GENERAL. The Committee is authorized to grant Options to Participants on the
following terms and conditions:

     (a) EXERCISE PRICE. The exercise price per share of Stock at which an Option is
granted shall be determined by the Committee, provided that the exercise price for any Option
(other than an Option issued as a substitute Award pursuant to Section 15.11) shall not be less
than the Fair Market Value as of the Grant Date. The exercise price of the Option shall not be
reduced, directly or indirectly, without the prior approval by the Company’s shareholders.

     (b) TIME AND CONDITIONS OF EXERCISE. The Award Agreement shall specify the time or
times at which an Option may be exercised in whole or in part. The Award Agreement shall
specify the performance or other conditions, if any, that must be satisfied before all or part
of an Option may be exercised. The Committee may waive any

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exercise provisions at any time in
whole or in part based upon factors as the Committee may determine in its sole discretion so
that the Option becomes exercisable at an earlier date.

     (c) LAPSE OF OPTION. The Option shall lapse ten years after it is granted, unless
an earlier option expiration date is set forth in the Award Agreement, and unless an earlier lapse occurs under Section 15.9. The original term of an Option may not be extended without the
prior approval of the Company’s shareholders.

     (d) PAYMENT. The Award Agreement shall specify the methods by which the exercise
price of an Option may be paid, the form of payment, including, without limitation, cash, shares
of Stock, or other property (including “cashless exercise” arrangements) and the methods by
which shares of Stock shall be delivered or deemed to be delivered to Participants.

     (e) EVIDENCE OF GRANT. All Options shall be evidenced by an Award Agreement
between the Company and the Participant. The Award Agreement shall include such provisions, not
inconsistent with the Plan, as may be specified by the Committee.

ARTICLE 8

STOCK APPRECIATION RIGHTS

     8.1. GRANT OF SARs. The Committee is authorized to grant SARs to Participants on the
following terms and conditions:

     (a) RIGHT TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the
Participant to whom it is granted has the right to receive the excess, if any, of:

     (1) The Fair Market Value of one share of Stock on the date of exercise; over

     (2) The grant price of the Stock Appreciation Right as determined by the
Committee, which shall not be less than the Fair Market Value of one share of Stock
on the Grant Date.

     (b) OTHER TERMS. All awards of Stock Appreciation Rights shall be evidenced by an
Award Agreement. The terms, methods of exercise, methods of settlement, form of consideration
payable in settlement, and any other terms and conditions of any Stock Appreciation Right shall
be determined by the Committee at the time of the grant of the Award and shall be reflected in
the Award Agreement.

     (c) FREESTANDING STOCK APPRECIATION RIGHTS. A Stock Appreciation Right which is
not granted in tandem with an Option or a similar right granted under any other plan of the
Company shall be subject to the following:

     (1) Each grant shall specify in respect of each freestanding Stock Appreciation
Right the grant price of the SAR;

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     (2) Successive grants may be made to the same Participant regardless of whether
any freestanding Stock Appreciation Rights previously granted to such Participant
remain unexercised; and

     (3) Each grant shall specify the period or periods of continuous employment of
the Participant by the Company or any Subsidiary that are necessary before the
freestanding Stock Appreciation Rights or installments thereof shall become
exercisable, and any grant may provide for the earlier exercise of such rights in
the event of acceleration under Article 15.

     (d) Payment in Cash or Shares. Any grant may specify that the amount payable upon the
exercise of a Stock Appreciation Right may be paid by the Company in cash, shares of Stock or
any combination thereof and may (i) either grant to the Participant or reserve to the Committee
the right to elect among those alternatives or (ii) preclude the right of the Participant to
receive and the Company to issue shares of Stock or other equity securities in lieu of cash.

     (e) Exercise Period. Any grant may specify (i) a waiting period or periods before Stock
Appreciation Rights shall become exercisable and (ii) permissible dates or periods on or during
which Stock Appreciation Rights shall be exercisable. No Stock Appreciation Right granted under
this Plan may be exercised more than ten years from the Grant Date. The original term of an SAR
may not be extended without the prior approval of the Company’s shareholders.

     (f) Change in Control. Any grant may specify that a Stock Appreciation Right may be
exercised only in the event of a change in control or other similar transaction or event. For
this purpose, a “change in control” shall satisfy the definition of “change in the ownership or
effective control of a corporation, or a change in the substantial ownership of the assets of a
corporation” set forth in Treasury Regulation Section 1.409A-3(i)(5).

ARTICLE 9

PERFORMANCE SHARES OR PERFORMANCE UNITS

     9.1. GRANT OF PERFORMANCE SHARES OR PERFORMANCE UNITS. The Committee is authorized to
grant Performance Shares or Performance Units to Participants on such terms and conditions as may
be selected by the Committee. The grant of a Performance Share to a Participant will entitle the
Participant to receive at a specified later time a specified number of shares, or the equivalent
cash value if the Committee so provides, if the Performance Objectives established by the Committee
are achieved and the other terms and conditions thereof are satisfied. The grant of a Performance
Unit to a Participant will entitle the Participant to receive at a specified later time a specified
dollar value in cash or other property (including shares) as determined by the Committee, if the
Performance Objectives in the Award are achieved and the other terms and conditions thereof are
satisfied. The Committee shall have the complete discretion to determine the number of Performance
Shares or Performance Units

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granted to each Participant, subject to any limitations contained in
Article 5. All Awards of Performance Shares or Performance Units shall be evidenced by an Award
Agreement. The Award Agreement shall specify the number of Performance Shares or Performance Units
to which it pertains; provided that such number may be adjusted to reflect changes in compensation
or other factors. Further, the Award Agreement shall state that the Performance Shares or
Performance Units are subject to all of the terms and conditions of
this Plan and such other terms and provisions as the Committee may determine consistent with this Plan. An Award of Performance
Shares or Performance Units may or may not be designated as a Qualified Performance-Based Award, as
determined by the Committee.

     9.2. RIGHT TO PAYMENT. A grant of Performance Shares or Performance Units gives the
Participant rights, valued as determined by the Committee, and payable to, or exercisable by, the
Participant to whom the Performance Shares or Performance Units are granted, in whole or in part,
as the Committee shall establish at grant or thereafter. The Committee shall set Performance
Objectives and other terms or conditions to payment of the Performance Shares or Performance Units
in its discretion which, depending on the extent to which they are met, will determine the number
and value of Performance Shares or Performance Units that will be paid to the Participant.

     9.3. PERFORMANCE PERIOD. The performance period with respect to each Performance
Share or Performance Unit shall commence on the date specified in the Award Agreement and may be
subject to earlier termination in the event of an acceleration under Article 15.

     9.4. THRESHOLD PERFORMANCE OBJECTIVES. Each grant may specify in respect of the
specified Performance Objectives a minimum acceptable level of achievement below which no payment
will be made and may set forth a formula for determining the amount of any payment to be made if
performance is at or above such minimum acceptable level but falls short of the maximum achievement
of the specified Performance Objectives.

     9.5. PAYMENT OF PERFORMANCE SHARES AND PERFORMANCE UNITS. Awards of Performance
Shares or Performance Units may be payable in cash, Stock, or Restricted Stock in the discretion of
the Committee, and have such other terms and conditions as determined by the Committee and
reflected in the Award Agreement. For purposes of determining the number of shares of Stock to be
used in payment of a Performance Unit denominated in cash but payable in whole or in part in Stock
or Restricted Stock, the number of shares to be so paid will be determined by dividing the cash
value of the Award to be so paid by the Fair Market Value of a share of Stock on the date of
determination by the Committee of the amount of the payment under the Award.

     9.6. DIVIDEND EQUIVALENTS. Any grant of Performance Shares may provide for the
payment to the Participant of Dividend Equivalents thereon in cash or additional shares of Stock on
a current or contingent basis.

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ARTICLE 10

AWARDS OF RESTRICTED STOCK

     10.1. GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of
Restricted Stock to Participants in such amounts and subject to such terms and conditions as may be
selected by the Committee. All Awards of Restricted Stock shall be evidenced by an Award Agreement
setting forth the terms, conditions and restrictions applicable to the Award. Each grant of Restricted Stock shall constitute an immediate transfer of the ownership of Stock to
the Participant in consideration of the performance of services, subject to the substantial risk of
forfeiture and restrictions on transfer hereinafter referred to.

     10.2. ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject to such
restrictions or transferability as the Committee may impose. Such restrictions may include,
without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends on the Restricted Stock, and provisions subjecting the Restricted Stock to a continuing
risk of forfeiture in the hands of any transferee. These restrictions may lapse separately or in
combination at such times, under such circumstances, in such installments, upon the satisfaction of
Performance Objectives or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

     10.3. CONSIDERATION. Each grant may be made without additional consideration from the
Participant or in consideration of a payment by the Participant that is less than the Fair Market
Value on the Grant Date.

     10.4. SUBSTANTIAL RISK OF FORFEITURE. Each grant shall provide that the Restricted
Stock covered thereby shall be subject to a “substantial risk of forfeiture” within the meaning of
Code Section 83 for a period to be determined by the Committee on the Grant Date. Such grant or
sale may be subject to the earlier termination of such risk of forfeiture in the event of an
acceleration under Article 15. The period during which Restricted Stock is subject to a
“substantial risk of forfeiture” shall not be less than three (3) years, except that
performance-based Restricted Stock shall be subject to a “substantial risk of forfeiture” for a
period of not less than one (1) year.

     10.5. DIVIDENDS, VOTING AND OTHER OWNERSHIP RIGHTS. Unless otherwise provided in an
Award Agreement or any special Plan document governing an Award, an Award of Restricted Stock shall
entitle the Participant to all of the rights of a shareholder with respect to Restricted Stock
(including voting and other ownership rights) throughout the restricted period. Participants may
also be entitled to dividends if permissible under the Company’s credit agreements.

     10.6. PERFORMANCE-BASED RESTRICTED STOCK. Any Award or the vesting thereof of
Restricted Stock may be predicated on or further conditioned upon the attainment of Performance
Objectives established by the Committee and may or may not be designated as a Qualified
Performance-Based Award, as determined by the Committee.

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     10.7. REINVESTING. Any grant may require that any or all dividends (if permitted
under the Company’s credit agreements) or other distributions paid on the Restricted Stock during
the period of such restrictions be automatically sequestered and reinvested in additional shares of
Stock, which may be subject to the same restrictions as the underlying Award or such other
restrictions as the Committee may determine.

     10.8. ISSUANCE OF RESTRICTED STOCK. Restricted Stock issued under the Plan following
vesting shall be evidenced in a manner authorized by the General Corporation Law of the State of Delaware and may be evidenced in any such manner as the Committee shall determine. If
certificates representing shares of Restricted Stock are registered in the name of the Participant,
certificates must bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock or otherwise must be subject to reasonable precautions intended
to prevent unauthorized transfer.

ARTICLE 11

DIVIDEND EQUIVALENTS

     11.1. GRANT OF DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend
Equivalents to Participants with respect to Full Value Awards granted hereunder, subject to such
terms and conditions as may be selected by the Committee (if permitted under the Company’s credit
agreements). Dividend Equivalents shall entitle the Participant to receive payments equal to
dividends with respect to all or a portion of the number of shares of Stock subject to a Full Value
Award, as determined by the Committee. The Committee may provide that Dividend Equivalents be paid
or distributed when accrued or be deemed to have been reinvested in additional shares of Stock, or
otherwise reinvested. An Award of Dividend Equivalents may or may not be designated as a Qualified
Performance-Based Award, as determined by the Committee.

ARTICLE 12

RESTRICTED STOCK UNITS

     12.1 GRANT OF RSUs. The Committee is authorized to grant RSUs to Participants who are
Non-Employee Directors on the following terms and conditions:

     (a) VESTING. Grants of RSUs shall be fully vested and shall be settled on the
earlier of (i) a Change in Control or (ii) the six month anniversary of the date on which the
Participant ceases to serve on the Board of Directors.

     (b) FORM OF PAYMENT. RSUs shall be paid in Stock or cash as specified in the Award
Agreement. The Award Agreement may provide for an election by the Participant as to the form of
payment.

     (c) DIVIDEND EQUIVALENTS. Additional RSUs shall be credited to the Participant’s
account as of each date (a “Dividend Date”) on which cash dividends or special dividends and
distributions are paid with respect to Stock, provided that the record date for

14

 

such dividend or
distribution is prior to the date the Participant’s RSUs become fully vested pursuant to Section
12.1(a) above. The number of additional RSUs to be credited to the Participant’s account as of
any Dividend Date shall be equal to the quotient obtained by dividing (i) the product of (A) the
number of RSUs credited to such account on the record date for such dividend or distribution and
(B) the per share dividend or distribution value payable on such Dividend Date, by (ii) the Fair
Market Value of a share of Stock or such Dividend Date.

ARTICLE 13

OTHER STOCK-BASED AWARDS

     13.1. GRANT OF OTHER STOCK-BASED AWARDS. Subject to the requirements of Section 5.5,
the Committee is authorized, subject to limitations under applicable law, to grant to Participants
such other Awards that are payable in, valued in whole or in part by reference to, or otherwise
based on or related to shares of Stock, as deemed by the Committee to be consistent with the
purposes of the Plan, including without limitation shares of Stock awarded purely as a “bonus” and
not subject to any restrictions or conditions, convertible or exchangeable debt securities, other
rights convertible or exchangeable into shares of Stock, and Awards valued by reference to book
value of shares of Stock or the value of securities of or the performance of specified Parents or
Subsidiaries. The Committee shall determine the terms and conditions of such Awards. An Award
made pursuant to this Article 13 may or may not be designated as a Qualified Performance-Based
Award, as determined by the Committee.

ARTICLE 14

CODE SECTION 409A PROVISIONS

     14.1. DEFERRED COMPENSATION. Notwithstanding anything in the Plan or in any Award
Agreement to the contrary, to the extent that any amount or benefit that would constitute “deferred
compensation” to a Participant would otherwise be payable or distributable under the Plan or any
Award Agreement solely by reason of the occurrence of a Change in Control or on account of the
Participant’s Disability or separation from service, such amount or benefit will not be payable or
distributable to the Participant by reason of such circumstance unless (i) the circumstances giving
rise to such Change in Control, Disability or separation from service meet the description or
definition of “change in control event”, “disability” or “separation from service”, as the case may
be, in Section 409A of the Code and applicable proposed or final regulations, or (ii) the payment
or distribution of such amount or benefit would be exempt from the application of Section 409A of
the Code by reason of the short-term deferral exemption or otherwise. Any payment or distribution
made at or on account of termination of employment to a Participant who is a Specified Employee may
not be made before the date which is six (6) months after the date of the Specified Employee’s
separation from service if the payment or distribution is not exempt from the application of
Section 409A of the Code by reason of the short-term deferral exemption or otherwise. This
provision does not prohibit the vesting of any Award or the vesting of any right to eventual
payment or distribution of any amount or benefit under the Plan or any Award Agreement.

15

 

     14.2. SAFE HARBOR EXTENSION PERIOD. Notwithstanding anything in the Plan or in any
Award Agreement to the contrary, to the extent necessary to avoid the application of Section 409A
of the Code to a Participant, (i) the Committee may not amend an outstanding Option, SAR or similar
Award to extend the time to exercise such Award beyond the later of the fifteenth (15th) day of the
third month following the date at which, or December 31 of the calendar year in which, the Award
would otherwise have expired if the Award had not been extended, based on the terms of the Award at
the original Grant Date (the “Safe Harbor Extension Period”), and (ii) any purported extension of
the exercise period of an outstanding Award beyond the Safe Harbor Extension Period shall be deemed to be an amendment to the last day of the Safe Harbor Extension
Period and no later.

     14.3. DEFERRED COMPENSATION UNDER OTHER PLANS. In the event an Award is made as a
result of a deferral of compensation under another plan or arrangement, the Award shall not be
treated as deferred compensation with respect to this Plan; provided that, if such Award is deemed
to be deferred compensation under this Plan, the Award shall be paid at the time and in the form
specified in the other, relevant plan or arrangement. If the Award is paid at a time or in a form,
or both at a time and in a form, specified in a deferral election, the deferral election shall
specify the time and form of the delayed distribution. Such election must be made at least twelve
(12) months prior to the date the Participant would have a binding right to payment of the Award;
provided that a deferral election of an Award subject to Performance Objectives may be made no
later than the date that is six (6) months before the end of a twelve-month performance period but
before the Award has become both substantially certain to be paid and readily ascertainable. An
election which changes the time or form of payment shall not take effect until five (5) years after
the date the Participant would otherwise be entitled to payment (including the first payment of an
installment or periodic payment) or otherwise have a binding right to the Award.

ARTICLE 15

PROVISIONS APPLICABLE TO AWARDS

     15.1. TERM OF AWARD. The term of each Award shall be for the period as determined by
the Committee, provided that in no event shall the term of any Option or a Stock Appreciation Right
granted in tandem with an Option exceed a period of ten years from its Grant Date.

     15.2. LIMITS ON TRANSFER.

     (a) Except as provided in Section 15.2(b) below, during a Participant’s lifetime, his or
her Awards shall be exercisable only by the Participant. No Awards may be sold, pledged,
assigned, or transferred in any manner other than by will or the laws of descent and
distribution; no Awards shall be subject, in whole or in part, to attachment, execution or levy
of any kind; and any purported transfer in violation hereof shall be null and void. A
Participant may designate a beneficiary in accordance with procedures established by the
Committee pursuant to Section 15.3 below.

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     (b) The Committee may, in its discretion, determine that notwithstanding Section 15.2(a),
any or all Awards shall be transferable to and exercisable by such transferees, and subject to
such terms and conditions, as the Committee may deem appropriate; provided, however, no Award
may be transferred for value (as defined in the General Instructions to Form S-8).

     (c) Notwithstanding Sections 15.2(a) and (b), an Award may be transferred pursuant to a
domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section
applied to an Award under the Plan, but only if the tax consequences flowing from the assignment
or transfer are specified in said order, the order is accompanied by signed

agreement by both or all parties to the domestic relations order, and, if requested by the
Committee, an opinion is provided by qualified counsel for the Participant that the order is
enforceable by or against the Plan under applicable law, and said opinion further specifies the
tax consequences flowing from the order and the appropriate tax reporting procedures for the
Plan.

     15.3. BENEFICIARIES. Notwithstanding Section 15.2, a Participant may, in the manner
determined by the Committee, designate a beneficiary to exercise the rights of the Participant and
to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative, or other person claiming any rights under the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant,
except to the extent the Plan and Award Agreement otherwise provide, and to any additional
restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been
designated or survives the Participant, payment shall be made to the Participant’s estate. Subject
to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time
provided the change or revocation is filed with the Company.

     15.4. STOCK CERTIFICATES. All Stock issued under the Plan is subject to any
stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply
with federal or state securities laws, rules and regulations and the rules of any national
securities exchange or automated quotation system on which the Stock is listed, quoted, or traded.
The Committee may place legends on any Stock certificate to reference restrictions applicable to
the Stock.

     15.5. ACCELERATION FOLLOWING A CHANGE IN CONTROL. Except as otherwise provided in the
Award Agreement, upon termination of a Participant’s employment by the Company without Cause, as
such term is defined in Section 15.9 hereof, within twenty-four (24) months following the
occurrence of a Change in Control, all outstanding Options, Stock Appreciation Rights, and other
Awards in the nature of rights that may be exercised automatically shall become fully exercisable
and all restrictions on all outstanding Awards automatically shall lapse. With respect to
Performance Objectives applicable to any Award for which the performance period is not complete,
the Committee shall have the discretionary authority to determine whether, and if so, the extent to
which, (1) the performance period or the Performance Objectives shall be deemed to be satisfied or
waived following a Change in

17

 

Control, and (2) the Performance Objectives shall be modified,
adjusted or changed on account of the Change in Control.

     15.6. ACCELERATION FOR ANY OTHER REASON. Regardless of whether an event has occurred
as described in Section 15.5 above, and subject to the restrictions on Qualified Performance-Based
Awards, the Committee may in its sole discretion at any time determine that all or a portion of a
Participant’s Options, Stock Appreciation Rights, and other Awards in the nature of rights that may
be exercised shall become fully or partially exercisable, and that all or a part of the
restrictions on all or a portion of the outstanding Awards shall lapse, and that any Performance
Objectives with respect to any Awards held by that Participant shall be deemed to be wholly or
partially satisfied, in each case, as of such date as the Committee may, in its sole discretion,
declare. The Committee may discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 15.6. The
Committee’s discretion to act under this Section 15.6 shall not be limited to individual
circumstances, but shall include the occurrence of any corporate circumstance, transaction or other
event which is not a Change in Control but which the Board deems to be, or to be reasonably likely
to lead to, an effective change in control of the Company of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of the 1934 Act, and in each case, as of such
date as the Committee may, in its sole discretion, declare, which may be on or before the
consummation of such transaction or event.

     15.7. EFFECT OF ACCELERATION. If an Award is accelerated under Section 15.5 or 15.6,
the Committee may, in its sole discretion, provide (i) that the Award will expire after a
designated period of time after such acceleration to the extent not then exercised, (ii) that the
Award will be settled in cash rather than Stock, (iii) that the Award will be assumed by another
party to the transaction giving rise to the acceleration or otherwise be equitably converted in
connection with such transaction, (iv) that the Award may be settled by payment in cash or cash
equivalents equal to the excess of the Fair Market Value of the underlying stock, as of a specified
date associated with the transaction, over the exercise price of the Award, or (v) any combination
of the foregoing. The Committee’s determination need not be uniform and may be different for
different Participants whether or not such Participants are similarly situated.

     15.8. LAPSE OR FORFEITURE AT OR FOLLOWING TERMINATION OF EMPLOYMENT.

     (a) Except as otherwise provided in an Award Agreement, any Award, including, without
limitation, Awards that are unvested, vested and unexercised, or subject or not subject to
restrictions, shall automatically and immediately lapse and be forfeited if the Participant’s
employment is terminated by the Company for Cause. As used herein, “Cause” means termination of
the Participant’s employment by the Company or a Subsidiary due to a material violation of (i)
the Company’s code of business conduct and ethics, (ii) the Participant’s fiduciary duties to
the Company, or (iii) any law, provided such violation has harmed the Company.

18

 

     (b) In the case of an Option or Stock Appreciation Right, the following shall determine the
date such Option or Stock Appreciation Right shall lapse on account of termination of
employment, provided that in no case shall an Option or Stock Appreciation Right extend beyond
the original expiration date specified in the grant thereof:

(i) An Option or Stock Appreciation Right that is not vested on the date a
Participant’s employment terminates shall lapse and no further vesting shall occur
following termination of employment.

(ii) If the Participant’s employment is terminated for reasons other than (I) by
reason of Disability or death or retirement at normal retirement age of 65, or (II)
by the Company for Cause, for that Participant and with respect to any Option or
Stock Appreciation Right that is vested and fully exercisable on the date of
termination of employment, the period for exercising that Option or Stock
Appreciation Right shall end ninety (90) days after the date of the Participant’s
termination of employment and any unexercised Option or Stock Appreciation Right
shall lapse at the end of such ninety-day period.

(iii) If the Participant’s employment terminates by reason of Disability, for that
Participant and with respect to any Option or Stock Appreciation Right that is
vested and fully exercisable on the date of termination of employment, the period
for exercising that Option or Stock Appreciation Right shall end one year after the
date of the Participant’s termination of employment and any unexercised Option or
Stock Appreciation Right shall lapse at the end of such one-year period.

(iv) If the Participant’s employment terminates by reason of death, or if the
Participant dies during the applicable ninety-day or one-year periods described in,
respectively, paragraphs (ii) and (iii) above, for that Participant and with respect
to any Option or Stock Appreciation Right that is vested and fully exercisable on
the date of termination of employment, the period for exercising such Option or
Stock Appreciation Right shall end one year after the date of the Participant’s
death and any unexercised Option or Stock Appreciation Right shall lapse at the end
of such one-year period. Upon the Participant’s death, the Option or Stock
Appreciation Right may be exercised by the Participant’s beneficiary.

(v) If the Participant’s employment is terminated by reason of retirement at normal
retirement age of 65, then, unless the Committee in its discretion determines
otherwise, for that Participant and with respect to any Option or Stock Appreciation
Right that is vested and fully exercisable on the date of termination of employment,
the period for exercising that Option or Stock Appreciation Right shall be the
original term and any unexercised Option or Stock Appreciation Right shall lapse at
the end of the original term.

     (c) In the case of any Restricted Stock as to which the substantial risk of forfeiture or
the prohibition or restriction on transfer has not lapsed, any Performance Shares or

19

 

Performance
Units that have not been fully earned, or any Stock that is subject to any transfer restriction
hereunder:

     (i) If the Participant’s employment is terminated by reason of death or
Disability, then the restrictions will lapse, and the unearned or unvested portion
of the Award will become immediately vested, earned and nonforfeitable.

     (ii) If the Participant’s employment is terminated by reason of retirement at
normal retirement age of 65, then the restrictions will lapse, or the Award will be
deemed earned, as the case may be, with respect to that portion of the Award
according to the following formula: The portion that becomes vested, earned and
nonforfeitable shall equal the number of shares of Restricted Stock granted as of
the Grant Date times the ratio of (i) the number of full months that have elapsed
from the Grant Date to the date of the Participant’s retirement, to

(ii), the number of full months contained in the original term of the Award, unless
the Committee in its discretion determines otherwise.

     (iii) If the Participant’s employment is terminated for any reason other than
by reason of death, Disability, or retirement at normal retirement age of 65 then
the restricted or unearned portion of the Award shall automatically and immediately
be cancelled and forfeited, unless the Committee in its discretion determines
otherwise.

     (d) Whether military, government or other service or other leave of absence shall
constitute a termination of employment shall be determined in each case by the Committee at its
discretion, and any determination by the Committee shall be final and conclusive; provided that
a Participant’s employment shall be deemed to be terminated upon the first date following the
passage of six months of leave unless the Participant has a statutory or contractual right to
reemployment. A termination of employment shall not occur in a circumstance in which a
Participant transfers from the Company to one of its Parents or Subsidiaries, transfers from a
Parent or Subsidiary to the Company, transfers from one Parent or Subsidiary to another Parent
or Subsidiary or, in the discretion of the Committee as specified at or prior to such
occurrence, in the case of a spin-off, sale or disposition of the Participant’s employer from or
by the Company. The Committee may in its sole discretion take any further action that it deems
to be equitable under the circumstances or in the best interests of the Company, including,
without limitation, waiving or modifying any limitation or requirement with respect to any Award
under this Plan. A Participant shall not be considered retired if and so long as he or she
continues to serve as a director of the Company or a Subsidiary of the Company. The period of
any leave of absence shall not be credited for vesting purposes unless otherwise determined by
the Committee.

     (e) Without limiting the Committee’s discretion to cancel any Award at any time, the
Committee shall have full power and authority to cancel an Award if the Participant, while
employed by the Company or a Subsidiary or within a period which begins on the date of
termination of employment and ends on the date which is one year later, engages in any 

20

 

activity
which is in direct competition with the Company or solicits other employees or customers of the
Company or its Subsidiaries in a competitive business venture. Whether a Participant has
engaged in such conduct shall be determined by the Committee in its sole discretion, taking into
account any determination by the Company that the Participant has acted in violation of a
non-compete or non-solicitation agreement with or obligation to the Company or a Subsidiary.

     15.9. PERFORMANCE OBJECTIVES. The Committee may determine that any Award granted
pursuant to this Plan to a Participant (including, but not limited to, Participants who are Covered
Employees) shall be determined solely on the basis of Performance Objectives. If an Award is made
on the basis of Performance Objectives, the Committee shall establish objectives prior to the
beginning of the period for which such Performance Objectives relate (or such later date as may be
permitted under Code Section 162(m) or the regulations thereunder) and the Committee may for any
reason reduce (but not increase) any Award, notwithstanding the achievement of a specified
objective. Any payment of an Award granted with Performance Objectives, including any Qualified Performance-Based Award, shall be conditioned on the
determination of the Committee in each case that the Performance Objectives and any other material
conditions have been satisfied. The Committee’s determination shall be certified in the
Committee’s minutes, and shall be based on receipt of a written certification of the Company’s
Human Resource Department that the Performance Objectives and any other material conditions have
been satisfied.

          Except in the case of Disability or death of the Participant, or upon the occurrence of a
Change in Control, no Qualified Performance-Based Award held by a Covered Employee or by an
employee who in the reasonable judgment of the Committee may be a Covered Employee on the date of
payment, may be amended, nor may the Committee exercise any discretionary authority it may
otherwise have under the Plan with respect to a Qualified Performance-Based Award under the Plan,
in any manner to waive the achievement of the applicable Performance Objective or to increase the
amount payable pursuant thereto or the value thereof, or otherwise in a manner that would cause the
Qualified Performance-Based Award to cease to qualify for the Section 162 (m) Exemption.
Performance periods established by the Committee for a Qualified Performance-Based Award may be as
short as three months and may be any longer period. In the case of Disability or death of the
Participant, the Committee may provide, either in connection with the grant thereof or by amendment
thereafter, that achievement of an applicable Performance Objective will be waived.

          If a Participant is promoted, demoted or transferred to a different business unit or function
during a performance period, the Committee may determine that the specified Performance Objectives
are no longer appropriate and may (i) modify, adjust, change or eliminate the Performance
Objectives or the applicable performance period as it deems appropriate to make such criteria and
period comparable to the initial Performance Objectives and period, or (ii) make a cash payment to
the Participant in an amount determined by the Committee. The foregoing two sentences shall not
apply with respect to an Award that is intended to be a Qualified Performance-Based Award if the
recipient of such Award (a) was a Covered Employee on the date of the modification, adjustment,
change or elimination of the

21

 

Performance Criteria or performance period, or (b) in the reasonable
judgment of the Committee, may be a Covered Employee on the date the Award is expected to be paid.

     15.10. SUBSTITUTE AWARDS. The Committee may grant Awards under the Plan in
substitution for stock and stock-based awards held by employees of another entity who become
employees of the Company or a Subsidiary as a result of a merger or consolidation of the former
employing entity with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary
of property or stock of the former employing entity. The Committee may direct that the substitute
awards be granted on such terms and conditions as the Committee considers appropriate in the
circumstances.

ARTICLE 16

CHANGES IN CAPITAL STRUCTURE

     16.1. GENERAL. In the event a stock dividend, stock-split or a combination or
consolidation of the outstanding stock of the Company into a lesser number of shares, is declared
upon the Stock, the authorization limits under Sections 5.1 and 5.5 shall be increased or decreased
proportionately, and the shares of Stock then subject to each Award shall be increased or decreased
proportionately without any change in the aggregate purchase price therefore. In the event the
Stock shall be changed into or exchanged for a different number or class of shares of stock or
securities of the Company or of another corporation, whether through reorganization,
recapitalization, reclassification, share exchange, spin-off, stock split-up, combination or
exchange of shares, merger or consolidation, the authorization limits under Sections 5.1 and 5.5
shall be adjusted proportionately, and there shall be substituted for each such share of Stock then
subject to each Award the number and class of shares into which each outstanding share of Stock
shall be so exchanged, all without any change in the aggregate purchase price for the shares then
subject to each Award.

          In addition, upon the occurrence or in anticipation of such an event, the Committee may, in
its sole discretion, provide (i) that Awards will be settled in cash rather than Stock, (ii) that
Awards will be assumed by another party to a transaction or otherwise be equitably converted or
substituted in connection with such transaction, (iii) that outstanding Awards may be settled by
payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying
Stock, as of a specified date associated with the transaction, over the exercise price of the
Award, (iv) that performance targets and performance periods for Awards will be modified consistent
with Code Section 162(m) where applicable, or (v) any combination of the foregoing. The
Committee’s determination need not be uniform and may be different for different Participants
whether or not such Participants are similarly situated.

ARTICLE 17

AMENDMENT, MODIFICATION AND TERMINATION

     17.1. AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any
time and from time to time, amend, modify or terminate the Plan without stockholder approval;
provided, however, that if an amendment to the Plan would, in the

22

 

reasonable opinion of the Board
or the Committee, either (i) materially increase the benefits accruing to Participants, (ii)
materially increase the number of shares of Stock available under the Plan, (iii) expand the types
of awards under the Plan, (iv) materially expand the class of employees eligible to participate in
the Plan, (v) materially extend the term of the Plan, or (vi) otherwise constitute a material
change requiring shareholder approval under applicable laws, policies or regulations or the
applicable listing or other requirements of an applicable exchange, then such amendment shall be
subject to shareholder approval; and provided, further, that the Board or Committee may condition
any amendment or modification on the approval of stockholders of the Company if such approval is
necessary or deemed advisable with respect to tax, securities or other applicable laws, policies or
regulations, or to comply with the listing or other requirement of an applicable exchange. Neither
the Board nor the Committee may reprice outstanding Options without stockholder approval.

     17.2. AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may
amend, modify or terminate any outstanding Award without approval of the Participant; provided,
however, that, subject to the terms of the applicable Award Agreement, such amendment, modification
or termination shall not, without the Participant’s consent, reduce

or diminish the value of such Award determined as if the Award had been exercised, vested, cashed
in or otherwise settled on the date of such amendment or termination. No termination, amendment,
or modification of the Plan shall adversely affect any Award previously granted under the Plan,
without the written consent of the Participant.

ARTICLE 18

GENERAL PROVISIONS

     18.1. NO RIGHTS TO AWARDS. No eligible individual shall have any claim to be granted
any Award under the Plan, and neither the Company nor the Committee is obligated to treat eligible
individuals uniformly, and determinations made under the Plan may be made by the Committee
selectively among eligible individuals who receive, or are eligible to receive, Awards.

     18.2. NO STOCKHOLDER RIGHTS. No Award gives the Participant any of the rights of a
stockholder of the Company unless and until shares of Stock are in fact issued to such person in
connection with such Award.

     18.3. WITHHOLDING. The Company or any Parent or Subsidiary shall have the authority
and the right to deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation)
required by law to be withheld with respect to any taxable event arising as a result of the Plan.
With respect to withholding required upon any taxable event under the Plan, the Committee may, at
the time the Award is granted or thereafter, require or permit that any such withholding
requirement be satisfied, in whole or in part, by withholding shares of Stock having a Fair Market
Value on the date of withholding equal to the amount required to be withheld for tax purposes, all
in accordance with such procedures as the Committee establishes. Additionally, if the Committee so
determines, the Participant may deliver to the Company unrestricted shares

23

 

which have been held by
the Participant for at least six (6) months, or any other shorter or longer period as necessary to
avoid the recognition of an expense under generally accepted accounting principles, to satisfy any
additional tax obligations owed by the Participant. The Company shall have the authority to
require a Participant to remit cash to the Company in lieu of the surrender of shares of Stock for
taxes if the surrender of shares for such purpose would result in the Company’s recognition of
expense under generally accepted accounting principles.

     18.4. NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any Award Agreement shall
interfere with or limit in any way the right of the Company or any Parent or Subsidiary to
terminate any Participant’s employment or status as an officer or director at any time, nor confer
upon any Participant any right to continue as an employee, officer or director of the Company or
any Parent or Subsidiary, whether for the duration of the Participant’s Award or otherwise.

     18.5. UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant
pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general creditor of the Company or
any Parent or Subsidiary. This Plan is not intended to be subject to ERISA.

     18.6. INDEMNIFICATION. To the extent allowable under applicable law, each member of
the Committee shall be indemnified and held harmless by the Company from any loss, cost, liability,
or expense that may be imposed upon or reasonably incurred by such member in connection with or
resulting from any claim, action, suit, or proceeding to which such member may be a party or in
which he may be involved by reason of any action or failure to act under the Plan and against and
from any and all amounts paid by such member in satisfaction of judgment in such action, suit, or
proceeding against him provided he gives the Company an opportunity, at its own expense, to handle
and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which
such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter
of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

     18.7. RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings, profit sharing, group
insurance, welfare or benefit plan of the Company or any Parent or Subsidiary unless provided
otherwise in such other plan.

     18.8. EXPENSES. The expenses of administering the Plan shall be borne by the Company
and its Parents or Subsidiaries.

     18.9. FRACTIONAL SHARES. No fractional shares of Stock shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional
shares or whether such fractional shares shall be eliminated by rounding up or down.

24

 

     18.10. GOVERNMENT AND OTHER REGULATIONS. The obligation of the Company to make
payment of Awards in Stock or otherwise shall be subject to all applicable laws, rules, and
regulations, and to such approvals by government agencies as may be required. The Company shall be
under no obligation to register under the 1933 Act, or any state securities act, any of the shares
of Stock paid under the Plan. The shares paid under the Plan may in certain circumstances be
exempt from registration under the 1933 Act, and the Company may restrict the transfer of such
shares in such manner as it deems advisable to ensure the availability of any such exemption.
Payment of an Award hereunder may be delayed in the sole discretion of the Committee if the
Committee reasonably anticipates that payment of the Award would violate Federal securities law or
other applicable law; provided that payment shall be made at the earliest date that the Committee
reasonably anticipates that making the payment will not cause such violation.

     18.11. GOVERNING LAW. To the extent not governed by federal law, the Plan and all
Award Agreements shall be construed in accordance with and governed by the laws of the State of
Delaware.

     18.12. ADDITIONAL PROVISIONS. Each Award Agreement may contain such other terms and
conditions as the Committee may determine; provided that such other terms and conditions are not
inconsistent with the provisions of this Plan.

     18.13. FOREIGN PARTICIPANTS. In order to facilitate the making of any grant or
combination of grants under this Plan, the Committee may provide for such special terms for Awards
to Participants who are foreign nationals, or who are employed by or perform services for the
Company or any Subsidiary outside of the United States of America, as the Committee may consider
necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover,
the Committee may approve such supplements to, or amendments, restatements or alternative versions
of, this Plan as it may consider necessary or appropriate for such purposes without thereby
affecting the terms of this Plan as in effect for any other purpose, provided that no such
supplements, amendments, restatements or alternative versions shall include any provisions that are
inconsistent with the terms of this Plan, as then in effect, unless this Plan could have been
amended to eliminate such inconsistency without further approval by the stockholders of the
Company.

     18.14. NO LIMITATIONS ON RIGHTS OF COMPANY. The grant of any Award shall not in any
way affect the right or power of the Company to make adjustments, reclassification or changes in
its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer
all or any part of its business or assets. The Plan shall not restrict the authority of the
Company, for proper corporate purposes, to draft or assume Awards, other than under the Plan, to or
with respect to any person. If the Committee so directs, the Company may issue or transfer shares
of Stock to a Subsidiary or a Parent, for such lawful consideration as the Committee may specify,
upon the condition or understanding that the Subsidiary or Parent will transfer such shares of
Stock to a Participant in accordance with the terms of an Award granted to such Participant and
specified by the Committee pursuant to the provisions of the Plan.

25

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