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EXHIBIT 10.1    
    

NETWORK ENGINES, INC.  

AMENDED AND RESTATED 2000 EMPLOYEE STOCK PURCHASE PLAN  

        The purpose of this Plan is to provide eligible employees of Network Engines, Inc. (the "Company") and certain of its subsidiaries with opportunities to
purchase shares of the Company's common stock, $.01 par value (the "Common Stock"). One Million Two Hundred and Fifty Thousand (1,250,000) shares of Common Stock in the aggregate have been approved
for this purpose. This Plan is intended to qualify as an "employee stock purchase plan" as defined in Section 423 of the Internal Revenue Code of 1986, as amended (the "Code"), and the
regulations promulgated thereunder, and shall be interpreted consistent therewith. 

	1.
	Administration. The Plan will be administered by the Company's Board of Directors (the "Board") or by a Committee appointed by the Board
(the "Committee"). The Board or the Committee has authority to make rules and regulations for the administration of the Plan and its interpretation and decisions with regard thereto shall be final and
conclusive.

	2.
	Eligibility. All employees of the Company, including Directors who are employees, and all employees of any subsidiary of the Company (as
defined in Section 424(f) of the Code) designated by the Board or the Committee from time to time (a "Designated Subsidiary"), are eligible to participate in any one or more of the offerings of
Options (as defined in Section 9) to purchase Common Stock under the Plan provided that:

	(a)
	they
are customarily employed by the Company or a Designated Subsidiary for more than twenty (20) hours a week and for more than five (5) months in a calendar year; and

	(b)
	they
are employees of the Company or a Designated Subsidiary on the first day of the applicable Plan Period (as defined below). 

        No
employee may be granted an option hereunder if such employee, immediately after the option is granted, owns five percent (5%) or more of the total combined voting power or value of
the stock of the Company or any subsidiary. For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of an
employee, and all stock which the employee has a contractual right to purchase shall be treated as stock owned by the employee. 

	3.
	Offerings. The Company will make one or more offerings ("Offerings") to employees to purchase stock under this Plan. Offerings will
begin each November 15 and May 15, or the first business day thereafter (the "Offering Commencement Dates"). Each Offering Commencement Date will begin a six (6) month period (a
"Plan Period") during which payroll deductions will be made and held for the purchase of Common Stock at the end of the Plan Period. The Board or the Committee may, at its discretion, choose a
different Plan Period of twelve (12) months or less for subsequent Offerings. Notwithstanding anything to the contrary, the first Plan Period shall begin on the first date the Company has filed
an effective registration statement on Form S-8 with the Securities and Exchange Commission for purposes of registering under the Securities Act of 1933 all shares of the Common
Stock issuable under this Plan, and shall end on November 15, 2000.

	4.
	Participation. An employee eligible on the Offering Commencement Date of any Offering may participate in such Offering by completing and
forwarding a payroll deduction authorization form to the employee's appropriate payroll office at least five (5) days prior to the applicable Offering Commencement Date. The form will authorize
a regular payroll deduction from the Compensation received by the employee during the Plan Period. Unless an employee files a new form or withdraws from the Plan, his deductions and purchases will
continue at the same rate for future Offerings under the Plan as long as the Plan remains in effect. The term "Compensation" means the amount of money reportable on the employee's Federal Income Tax
Withholding Statement, excluding overtime, shift premium, incentive or bonus awards, allowances and reimbursements for 

expenses
such as relocation allowances for travel expenses, income or gains on the exercise of Company stock options or stock appreciation rights, and similar items, whether or not shown on the
employee's Federal Income Tax Withholding Statement, but including, in the case of salespersons, sales commissions to the extent determined by the Board or the Committee. 

	5.
	Deductions. The Company will maintain payroll deduction accounts for all participating employees. With respect to any Offering made
under this Plan, an employee may authorize a payroll deduction in any dollar amount up to a maximum of fifteen percent (15%) of the Compensation he or she receives during the Plan Period or such
shorter period during which deductions from payroll are made. Payroll deductions may be at the rate of up to fifteen percent (15%) in increments of one percent (1%). The minimum payroll deduction is
initially one percent (1%) of Compensation and may be revised from time to time by the Board or the Committee. 

        No
employee may be granted an Option (as defined in Section 9) which permits his rights to purchase Common Stock under this Plan and any other employee stock purchase plan (as
defined in Section 423(b) of the Code) of the Company and its subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of such Common Stock (determined at the Offering
Commencement Date of the Plan Period) for each calendar year in which the Option is outstanding at any time. 

	6.
	Deduction Changes. An employee may decrease or discontinue his payroll deduction once during any Plan Period, by filing a new payroll
deduction authorization form. However, an employee may not increase his payroll deduction during a Plan Period. If an employee elects to discontinue his payroll deductions during a Plan Period, but
does not elect to withdraw his funds pursuant to Section 8 hereof, funds deducted prior to his election to discontinue will be applied to the purchase of Common Stock on the Exercise Date (as
defined below).

	7.
	Interest. Interest will not be paid on any employee accounts, except to the extent that the Board or the Committee, in its sole
discretion, elects to credit employee accounts with interest at such per annum rate as it may from time to time determine.

	8.
	Withdrawal of Funds. An employee may at any time prior to the close of business on the last business day in a Plan Period and for any
reason permanently draw out the balance accumulated in the employee's account and thereby withdraw from participation in an Offering. Partial withdrawals are not permitted. The employee may not begin
participation again during the remainder of the Plan Period. The employee may participate in any subsequent Offering in accordance with terms and conditions established by the Board or the Committee.

	9.
	Purchase of Shares. On the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then
a participant in the Plan an option ("Option") to purchase on the last business day of such Plan Period (the "Exercise Date"), at the Option Price hereinafter provided for, the largest number of whole
shares of Common Stock of the Company as does not exceed the number of shares determined by multiplying $2,083 by the number of full months in the Offering Period and dividing the result by the
closing price (as defined below) on the Offering Commencement Date of such Plan Period. 

        The
purchase price for each share purchased will be eighty-five percent (85%) of the closing price of the Common Stock on the Exercise Date. Such closing price shall be
(a) the closing price on any national securities exchange on which the Common Stock is listed, (b) the closing price of the Common Stock on the Nasdaq National Market or (c) the
average of the closing bid and asked prices in the over-the-counter-market, whichever is applicable, as published in The Wall Street
Journal. If no sales of Common Stock were made on such a day, the price of the Common Stock for purposes of clauses (a) and (b) above shall be the reported
closing price for the next preceding day on which sales were made. 

        Each
employee who continues to be a participant in the Plan on the Exercise Date shall be deemed to have exercised his Option at the Option Price on such date and shall be deemed to have
purchased from the Company the number of full shares of Common Stock reserved for the purpose of 

the
Plan that his accumulated payroll deductions on such date will pay for, but not in excess of the maximum number determined in the manner set forth above. 

        Any
balance remaining in an employee's payroll deduction account at the end of a Plan Period will be automatically refunded to the employee, except that any balance which is less than
the purchase price of one share of Common Stock will be carried forward into the employee's payroll deduction account for the following Offering, unless the employee elects not to participate in the
following Offering under the Plan, in which case the balance in the employee's account shall be refunded. 

	10.
	Issuance of Certificates. Certificates representing shares of Common Stock purchased under the Plan may be issued only in the name of
the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or (in the Company's sole discretion) in the name of a brokerage firm, bank or
other nominee holder designated by the employee. The Company may, in its sole discretion and in compliance with applicable laws, authorize the use of book entry registration of shares in lieu of
issuing stock certificates.

	11.
	Rights on Retirement, Death or Termination of Employment. In the event of a participating employee's termination of employment prior to
the last business day of a Plan Period, no payroll deduction shall be taken from any pay due and owing to an employee and the balance in the employee's account shall be paid to the employee or, in the
event of the employee's death, (a) to a beneficiary previously designated in a revocable notice signed by the employee (with any spousal consent required under state law) or (b) in the
absence of such a designated beneficiary, to the executor or administrator of the employee's estate or (c) if no such executor or administrator has been appointed to the knowledge of the
Company, to such other person(s) as the Company may, in its discretion, designate. If, prior to the last business day of the Plan Period, the Designated Subsidiary by which an employee is employed
shall cease to be a subsidiary of the Company, or if the employee is transferred to a subsidiary of the Company that is not a Designated Subsidiary, the employee shall be deemed to have terminated
employment for the purposes of this Plan.

	12.
	Optionees Not Stockholders. Neither the granting of an Option to an employee nor the deductions from his pay shall constitute such
employee a stockholder of the shares of Common Stock covered by an Option under this Plan until such shares have been purchased by and issued to him.

	13.
	Rights Not Transferable. Rights under this Plan are not transferable by a participating employee other than by will or the laws of
descent and distribution, and are exercisable during the employee's lifetime only by the employee.

	14.
	Application of Funds. All funds received or held by the Company under this Plan may be combined with other corporate funds and may be
used for any corporate purpose.

	15.
	Adjustment in Case of Changes Affecting Common Stock. In the event of a subdivision of outstanding shares of Common Stock, or the
payment of a dividend in Common Stock, the number of shares approved for this Plan, and the share limitation set forth in Section 9, shall be increased proportionately, and such other
adjustment shall be made as may be deemed equitable by the Board or the Committee. In the event of any other change affecting the Common Stock, such adjustment shall be made as may be deemed equitable
by the Board or the Committee to give proper effect to such event.

	16.
	Merger. If the Company shall at any time merge or consolidate with another corporation and the holders of the capital stock of the
Company immediately prior to such merger or consolidation continue to hold at least 80% by voting power of the capital stock of the surviving corporation ("Continuity of Control"), the holder of each
Option then outstanding will thereafter be entitled to receive at the next Exercise Date upon the exercise of such Option for each share as to which such Option shall be exercised the securities or
property which a holder of one share of the Common Stock was entitled to upon and at the time of such merger or consolidation, and the Board or the Committee shall take such steps in connection with
such merger or consolidation as the Board or the Committee shall deem necessary to assure that the provisions of Section 15 shall thereafter be 

applicable,
as nearly as reasonably may be, in relation to the said securities or property as to which such holder of such Option might thereafter be entitled to receive thereunder. 

        In
the event of a merger or consolidation of the Company with or into another corporation which does not involve Continuity of Control, or of a sale of all or substantially all of the
assets of the Company while unexercised Options remain outstanding under the Plan, (a) subject to the provisions of clauses (b) and (c), after the effective date of such transaction,
each holder of an outstanding Option shall be entitled, upon exercise of such Option, to receive in lieu of shares of Common Stock, shares of such stock or other securities as the holders of shares of
Common Stock received pursuant to the terms of such transaction; or (b) all outstanding Options may be cancelled by the Board or the Committee as of a date prior to the effective date of any
such transaction and all payroll deductions shall be paid out to the participating employees; or (c) all outstanding Options may be cancelled by the Board or the Committee as of the effective
date of any such transaction, provided that notice of such cancellation shall be given to each holder of an Option, and each holder of an Option shall have the right to exercise such Option in full
based on payroll deductions then credited to his account as of a date determined by the Board or the Committee, which date shall not be less than ten (10) days preceding the effective date of
such transaction. 

	17.
	Amendment of the Plan. The Board may at any time, and from time to time, amend this Plan in any respect, except that (a) if the
approval of any such amendment by the shareholders of the Company is required by Section 423 of the Code, such amendment shall not be effected without such approval, and (b) in no event
may any amendment be made which would cause the Plan to fail to comply with Section 423 of the Code.

	18.
	Insufficient Shares. In the event that the total number of shares of Common Stock specified in elections to be purchased under any
Offering plus the number of shares purchased under previous Offerings under this Plan exceeds the maximum number of shares issuable under this Plan, the Board or the Committee will allot the shares
then available on a pro rata basis.

	19.
	Termination of the Plan. This Plan may be terminated at any time by the Board. Upon termination of this Plan all amounts in the
accounts of participating employees shall be promptly refunded.

	20.
	Governmental Regulations. The Company's obligation to sell and deliver Common Stock under this Plan is subject to listing on a national
stock exchange or quotation on the Nasdaq National Market (to the extent the Common Stock is then so listed or quoted) and the approval of all governmental authorities required in connection with the
authorization, issuance or sale of such stock.

	21.
	Governing Law. The Plan shall be governed by Delaware law except to the extent that such law is preempted by federal law.

	22.
	Issuance of Shares. Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares held in the
treasury of the Company, or from any other proper source.

	23.
	Notification upon Sale of Shares. Each employee agrees, by entering the Plan, to promptly give the Company notice of any disposition of
shares purchased under the Plan where such disposition occurs within two (2) years after the date of grant of the Option pursuant to which such shares were purchased.

	24.
	Effective Date and Approval of Shareholders. The Plan shall take effect on March 16, 2000 subject to approval by the
shareholders of the Company as required by Section 423 of the Code, which approval must occur within twelve (12) months of the adoption of the Plan by the Board. 

This Amended and Restated 2000 Employee Stock Purchase Plan:

Adopted by the Board of Directors: March 15, 2005

The original 2000 Employee Stock Purchase Plan:

Adopted by the Board of Directors: March 16, 2000

Approved by the stockholders: May 2000 

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EXHIBIT 10.1QuickLinks
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EXHIBIT 10.1    
    

 
 

1997 EQUITY PARTICIPATION PLAN
  OF
  OWENS-ILLINOIS, INC.
  NON-QUALIFIED STOCK OPTION AGREEMENT    
    

        THIS AGREEMENT, dated [            ], is made by and between Owens-Illinois, Inc., a Delaware corporation hereinafter
referred
to as "Company," and [                        ], an employee of the Company or a
Subsidiary of the Company, hereinafter referred to as
"Optionee": 

        WHEREAS,
the Company wishes to afford the Optionee the opportunity to purchase shares of its $.01 par value Common Stock (as defined hereunder); and 

        WHEREAS,
the Company wishes to carry out the 1997 Equity Participation Plan of Owens-Illinois, Inc. (the terms of which are hereby incorporated by reference and made a part of
this Agreement); and 

        WHEREAS,
the Compensation Committee of the Company's Board of Directors (hereinafter referred to as the "Committee"), appointed to
administer said Plan, has determined that it would be to the advantage and best interest of the Company and its stockholders to grant the Non-Qualified Option provided for herein to the
Optionee as an inducement to remain in the service of the Company, its Parent Corporations or its Subsidiaries (each as defined hereunder) and as an incentive for increased efforts during such
service, and has advised the Company thereof and instructed the undersigned Officers (as defined hereunder) to issue said Option. 

        NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby
agree as follows: 

 
 

ARTICLE I
  
    DEFINITIONS    
    

        Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. The
masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates. 

Section 1.1—Additional Option  

        "Additional Option" means an Option granted to an Optionee to purchase a number of shares of Common Stock equal to
the number of shares of Common Stock tendered or relinquished by the Optionee in payment of the exercise price upon exercise of the Option and/or the number of shares of Common Stock tendered or
relinquished in payment of the amount required to be withheld under applicable federal, state and local income tax laws in connection with the exercise of the Option as described in Article V. 

Section 1.2—Board  

        "Board" shall mean the Board of Directors of the Company. 

Section 1.3—Code  

        "Code" shall mean the Internal Revenue Code of 1986, as amended. 

Section 1.4—Common Stock  

        "Common Stock" shall mean the Company's common stock, $.01 par value. 

 

Section 1.5—Company  

        "Company" shall mean Owens-Illinois, Inc. In addition, "Company" shall mean any corporation assuming, or
issuing new employee stock options in substitution for, the Option and Incentive Stock Options (as defined in Section 1.14 of the Plan), outstanding under the Plan, in a transaction to which
Section 424(a) of the Code applies. 

Section 1.6—Exchange Act  

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

Section 1.7—Fair Market Value  

        "Fair Market Value" of a share of the Company's stock as of a given date shall be: (i) the closing price of
a share of the Company's stock on the principal exchange on which shares of the Company's stock are then trading, if any, on the day previous to such date, or, if shares were not traded on the day
previous to such date, then on the next preceding trading day during which a sale occurred; or (ii) if such stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation
system, (1) the last sales price (if the stock is then listed as a National Market Issue under the NASD National Market System) or (2) the mean between the closing representative bid and
asked prices (in all other cases) for the stock on the day previous to such date as reported by NASDAQ or such successor quotation system; or (iii) if such stock is not publicly traded on an
exchange and not quoted on
NASDAQ or a successor quotation system, the mean between the closing bid and asked prices for the stock, on the day previous to such date, as determined in good faith by the Committee; or
(iv) if the Company's stock is not publicly traded, the fair market value established by the Committee acting in good faith. 

Section 1.8—Officer  

        "Officer" shall mean an officer of the Company, as defined in Rule 16a-1(f) under the Exchange
Act, as such Rule may be amended in the future. 

Section 1.9—Option  

        "Option" shall mean the Non-Qualified Option (as defined in Section 1.15 of the Plan) to
purchase Common Stock of the Company under this Agreement. This Option is a Transferable Option (as defined in Section 1.29 of the Plan). 

Section 1.10—Parent Corporation  

        "Parent Corporation" shall mean any corporation in an unbroken chain of corporations ending with the Company if
each of the corporations other than the Company then owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

Section 1.11—Plan  

        "Plan" shall mean the 1997 Equity Participation Plan of Owens-Illinois, Inc. 

Section 1.12—Rule 16b-3  

        "Rule 16b-3" shall mean that certain Rule 16b-3 under the Exchange Act, as
such rule may be amended in the future. 

2

 

Section 1.13—Secretary  

        "Secretary" shall mean the Secretary of the Company. 

Section 1.14—Securities Act  

        "Securities Act" shall mean the Securities Act of 1933, as amended. 

Section 1.15—Subsidiary  

        "Subsidiary" shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of
the corporations other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. "Subsidiary" shall also mean any partnership in which the Company and/or any Subsidiary owns more than 50% of the capital of profits interests. 

Section 1.16—Termination of Employment  

        "Termination of Employment" shall mean the time when the employee-employer relationship between the Optionee and
the Company, a Parent Corporation or a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge,
death, total disability or retirement, but excluding (i) any termination where there is a simultaneous reemployment by the Company, a Parent Corporation or a Subsidiary or (ii) any
termination where the Optionee continues a relationship (e.g., as a director or as a consultant) with the Company, a Parent Corporation or a Subsidiary. The Committee, in its absolute discretion,
shall determine the effect of all other matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment
resulted from a discharge for good cause, and all questions of whether particular leaves of absence constitute Terminations of Employment. Notwithstanding any other provision of this Agreement, the
Company or any of its subsidiaries has an absolute and unrestricted right to terminate the Optionee's employment at any time for any reason whatsoever, with or without cause. 

Section 1.17—Transferee  

        "Transferee" shall mean any person or entity to whom or to which the Optionee has transferred all or any part of
the Option in accordance with Section 5.2. 

 
 

ARTICLE II
  
    GRANT OF OPTION    
    

Section 2.1—Grant of Option  

        In consideration of the Optionee's agreement to remain in the employ of the Company, its Parent Corporations or its Subsidiaries and for other good and valuable
consideration, on the date hereof the Company irrevocably grants to the Optionee the option to purchase any part or all of an aggregate of
[                        (            )]
shares of its $.01 par value Common Stock upon the terms and conditions set forth in this Agreement. 

Section 2.2—Purchase Price  

        The purchase price of the shares of stock covered by the Option shall be $[            ] per share without commission or other
charge. 

3

 

Section 2.3—Consideration to Company  

        In consideration of the granting of this Option by the Company, the Optionee agrees to render faithful and efficient services to the Company, a Parent Corporation
or a Subsidiary, with such duties and responsibilities as the Company shall from time to time prescribe, for a period of at least one year from the date this Option is granted. Nothing in this
Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of the Company, any Parent Corporation or any Subsidiary or shall interfere with or restrict in any way the
rights of the Company, any Parent Corporation and any Subsidiary, which are hereby expressly reserved, to discharge the Optionee at any time for any reason whatsoever, with or without cause. 

Section 2.4—Adjustments in Option  

        In the event that the outstanding shares of Common Stock subject to the Option are changed into or exchanged for a different number or kind of shares of the
Company or other securities of the Company by reason of merger, consolidation, recapitalization, reclassification, or the number of shares is increased or decreased by reason of a stock split up,
stock dividend, combination of shares or any other increase or decrease in the number of such shares of Common Stock effected without receipt of consideration by the Company (provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration") the Committee shall make appropriate adjustments in the number and
kind of shares as to which the Option, or portions thereof then unexercised, shall be exercisable, to the end that after such event the Optionee's proportionate interest shall be maintained as before
the occurrence of such event. Such adjustment in the Option shall be made without change in the total price applicable to the unexercised portion of the Option (except for any change in the aggregate
price resulting from rounding-off of share quantities or prices) and with any necessary corresponding adjustment in the Option price per share. Any such adjustment made by the Committee
shall be final and binding upon the Optionee, the Company and all other interested persons. 

 
 

ARTICLE III
  
    PERIOD OF EXERCISABILITY    
    

Section 3.1—Commencement of Exercisability  

        (a)   Except
as provided in Section 3.4, no Option may be exercised in whole or in part during the first year after such Option is granted. 

        (b)   Except
to the extent that such Option becomes exercisable sooner pursuant to Section 3.4, the Option shall become exercisable as to
[    ]% of the shares covered by the Option on each of the first [    ] anniversaries of the date of grant of such Option. Such
installments shall be cumulative. 

        (c)   Except
as provided in Section 3.4, no portion of the Option which is unexercisable at Termination of Employment shall thereafter become exercisable. 

Section 3.2—Duration of Exercisability  

        The installments provided for in Section 3.1 are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1 shall remain
exercisable until it becomes unexercisable under Section 3.3. 

4

 

Section 3.3—Expiration of Option  

        The Option may not be exercised to any extent by anyone after the first to occur of the following events: 

        (a)   The
expiration of seven years from the date the Option was granted; or 

        (b)   Except
as provided in clauses (c) through (h) below, the date of the Optionee's Termination of Employment; or 

        (c)   In
the case of an Optionee who retires after reaching the Company's normal retirement age or who takes early retirement after having reached a minimum age of
[    ], the expiration of [    (not to exceed seven)] years from the date the Option was granted; or 

        (d)   In
the case of an Optionee who is discharged not for good cause, the expiration of [    ], but not to exceed one year, from the
Optionee's Termination of Employment unless the Optionee dies within said one-year period; or 

        (e)   In
the case of any Optionee whose right to exercise his or her Option is extended by the Committee, which extension shall not exceed
[    ], but not to exceed three years from the date of Optionee's Termination of Employment, the date upon which such extension expires; or 

        (f)    In
the case of an Optionee who is totally disabled, the expiration of [    ], but not to exceed one year, from the date of the
Optionee's Termination of Employment by reason of his or her disability unless the Optionee dies within said period; or 

        (g)   In
the case of the Optionee's death, the expiration of [    ], but not to exceed one year, from the date of the Optionee's death; or 

        (h)   The
effective date of either the merger or consolidation of the Company with or into another corporation, or the acquisition by another corporation or person (excluding
any employee benefit plan of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company) of all or substantially all of the Company's assets or 51%
or more of the Company's then outstanding voting stock, or the liquidation or dissolution of the Company, unless the Committee
waives this provision in connection with such transaction. At least ten days prior to the effective date of such merger, consolidation, acquisition, liquidation or dissolution, the Committee shall
give the Optionee notice of such event if the Option has then neither been fully exercised nor become unexercisable under this Section 3.3. 

Section 3.4—Acceleration of Exercisability  

        (a)   In
the event of a Termination of Employment resulting from an Optionee's total disability (as determined by the Committee in accordance with Company policies) or death,
the Option shall be exercisable as to all shares covered hereby, notwithstanding that this Option may not have become fully exercisable under Section 3.1; or 

        (b)   In
the event of the merger or consolidation of the Company with or into another corporation, or the acquisition by another corporation or person (excluding any employee
benefit plan of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company) of all or substantially all of the Company's assets or 51% or more of
the Company's then outstanding voting stock, or the liquidation or dissolution of the Company, the Committee shall then provide by resolution, adopted prior to such event and incorporated in the
notice referred to in Section 3.3(h), that at some time prior to the effective date of such event this Option shall be exercisable as to all the shares covered hereby, notwithstanding that this
Option 

5

 

may
not yet have become fully exercisable under Section 3.1; provided, however, that this acceleration of exercisability shall not take place if: 

	(i)
	This
Option becomes unexercisable under Section 3.3 prior to said effective date; or

	(ii)
	In
connection with such an event, provision is made for an assumption of this Option or a substitution therefor of a new option by an employer corporation or a parent
or subsidiary of such corporation. 

        The
Committee may make such determinations and adopt such rules and conditions as it, in its absolute discretion, deems appropriate in connection with such acceleration of
exercisability, including, but not by way of limitation, provisions to ensure that any such acceleration and resulting exercise shall be conditioned upon the consummation of the contemplated corporate
transaction. 

 
 

ARTICLE IV
  
    EXERCISE OF OPTION    
    

Section 4.1—Person Eligible to Exercise  

        During the lifetime of the Optionee, only he or his Transferee, if any, may exercise the Option or any portion thereof. After the death of the Optionee, any
exercisable portion of the Option may, prior to the time when such portion becomes unexercisable under Section 3.3, be exercised by his Transferee, if any, or by his personal representative or
any other person empowered to do so under the Optionee's will or under the then applicable laws of descent and distribution. All of the terms and conditions of this Option in the hands of the Optionee
during his lifetime shall be and remain fully applicable and binding on his Transferee, if any, and on any other person who may become eligible to exercise this Option. 

Section 4.2—Partial Exercise  

        Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when
the Option or portion thereof becomes unexercisable under Section 3.3; provided, however, that each partial exercise shall be for not less than one hundred (100) shares (or the minimum
installment set forth in Section 3.1, if a smaller number of shares) and shall be for whole shares only. 

Section 4.3—Manner of Exercise  

        The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary or his office of all of the following prior to the time when
the Option or such portion becomes unexercisable under Section 3.3: 

        (a)   Notice
in writing signed by the Optionee or the other person then entitled to exercise the Option or portion, stating that the Option or portion is thereby exercised,
such notice complying with all applicable rules established by the Committee; and 

        (b)   (i) Full
payment (in cash or by check) for the shares with respect to which such Option or portion is exercised; or 

	(ii)
	With
the consent of the Committee, (A) shares of the Company's Common Stock owned by the Optionee duly endorsed for transfer to the Company, or (B) shares of the
Company's Common Stock issuable to the Optionee upon exercise of the Option, with a Fair Market Value on the date of option exercise equal to the aggregate purchase price of the shares with respect to
which such Option or portion is exercised; or 

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	(iii)
	With
the consent of the Committee, a full recourse promissory note bearing interest (at least such rate as shall then preclude the imputation of interest under the
Code or successor provision) and payable upon such terms as may be prescribed by the Committee. The Committee may also prescribe the form of such note and the security to be given for such note. The
Option may not be exercised, however, by delivery of a promissory note or by a loan from the Company when or where such loan or other extension of credit is prohibited by law; or;

	(iv)
	With
the consent of the Committee, any combination of the consideration provided in the foregoing subparagraphs (i), (ii) and (iii); and 

        (c)   A
bona fide written representation and agreement, in a form satisfactory to the Committee, signed by the Optionee or other person then entitled to exercise such Option
or portion, stating that the shares of stock are being acquired for his own account, for investment and without any present intention of distributing or reselling said shares or any of them except as
may be permitted under the Securities Act and then applicable rules and regulations thereunder, and that the Optionee or other person then entitled to exercise such Option or portion will indemnify
the Company against and hold it free and harmless from any loss, damage, expense or liability resulting to the Company if any sale or distribution of the shares by such person is contrary to the
representation and agreement referred to above. The Committee may, in its absolute discretion, take whatever additional actions it deems appropriate to insure the observance and performance of such
representation and agreement and to effect compliance with the Securities Act and any other federal or state securities laws or regulations. Without limiting the generality of the foregoing, the
Committee may require an opinion of counsel acceptable to it to the effect that any subsequent transfer of shares acquired on an Option exercise does not violate the Securities Act, and may issue
stop-transfer orders covering such shares. Share certificates evidencing stock issued on exercise of this Option shall bear an appropriate legend referring to the provisions of this
subsection (c) and the agreements herein. The written representation and agreement referred to in the first sentence of this subsection (c) shall, however, not be required if the shares
to be issued pursuant to such exercise have been registered under the Securities Act, and such registration is then effective in respect of such shares; and 

        (d)   Full
payment to the Company (or other employer corporation) of all amounts which, under federal, state or local tax law, it is required to withhold upon exercise of the
Option; with the consent of the Committee, (i) shares of the Company's Common Stock owned by the Optionee duly endorsed for transfer, or, (ii) shares of the Company's Common Stock
issuable to the Optionee upon exercise of the Option, valued at Fair Market Value as of the date of Option exercise, may be used to make all or part of such payment; and 

        (e)   In
the event the Option or portion shall be exercised pursuant to Section 4.1 by any person or persons other than the Optionee, appropriate proof of the right of
such person or persons to exercise the Option. 

Section 4.4—Conditions to Issuance of Stock Certificates  

        The shares of stock deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares
which have been reacquired by the Company. Such shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any certificate or certificates for shares of stock
purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions: 

        (a)   The
admission of such shares to listing on all stock exchanges on which such class of stock is then listed; and 

7

 

        (b)   The
completion of any registration or other qualification of such shares under any state or federal law or under rulings or regulations of the Securities and Exchange
Commission or of any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable; and 

        (c)   The
obtaining of any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be
necessary or advisable; and 

        (d)   The
payment to the Company (or other employer corporation) of all amounts, if any, which, under federal, state or local tax law, it is required to withhold upon exercise
of the Option; and 

        (e)   The
lapse of such reasonable period of time following the exercise of the Option as the Committee may from time to time establish for reasons of administrative
convenience. 

Section 4.5—Rights as Stockholder  

        The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect to any shares purchasable upon the
exercise of any part of the Option unless and until certificates representing such shares shall have been issued by the Company to such holder. 

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ARTICLE V
  
    OTHER PROVISIONS    
    

Section 5.1—Administration  

        The Committee shall have the power to interpret the Plan, this Agreement and all other documents relating to the Option and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and all interpretations and determinations made by
the Committee in good faith shall be final and binding upon the Optionee, the Company and all other interested persons. No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or the Option and all members of the Committee shall be fully protected by the Company in respect to any such action,
determination or interpretation. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement
except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or rules issued thereunder, are required to be determined in the sole
discretion of the Committee. 

Section 5.2—Option Not Transferable  

        Neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Optionee or his successors in
interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by
operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no
effect; provided, however, that this Section 5.2 shall not prevent: 

        (a)   any
transfer by gift, without the receipt of any consideration, of the Option or any part thereof by the Optionee, in writing and with written notice thereof to the
Committee, (i) to the Optionee's spouse; (ii) to any child or more remote lineal descendant of the Optionee or to the spouse of any such child or more remote lineal descendant; or
(iii) to any trust, custodianship, or other similar fiduciary relationship maintained for the benefit of any one or more of such persons; or 

        (b)   any
transfer by will or by the applicable laws of descent and distribution. 

Section 5.3—Shares to Be Reserved  

        The Company shall at all times during the term of the Option reserve and keep available such number of shares of stock as will be sufficient to satisfy the
requirements of this Agreement. 

Section 5.4—Notices  

        Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary, and any notice to be given to
the Optionee shall be addressed to him at the address given beneath his signature hereto. By a notice given pursuant to this Section 5.4, either party may hereafter designate a different
address for notices to be given to it or him. Any notice which is required to be given to the Optionee shall, if the Optionee is then deceased, be given to the Optionee's personal representative if
such representative has previously informed the Company of his status and address by written notice under this Section 5.4. Any notice shall be deemed duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service. 

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Section 5.5—Titles  

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

Section 5.6—Rule 16b-3  

        The Company shall take such actions with respect to the Plan as may be necessary to satisfy the requirements of Rule 16b-3. 

Section 5.7—Conformity to Securities Laws  

        This Agreement is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules
promulgated by the Securities and Exchange Commission thereunder, including without limitation Rule 16b-3. Notwithstanding anything herein to the contrary, this Agreement shall be
administered, and the Option shall be granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, this Agreement
and the Option granted hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 

Section 5.8—Amendment  

        This Agreement may be amended only by a writing executed by the parties hereto which specifically states that it is amending this Agreement. 

Section 5.9—Governing Law  

        The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless
of the law that might be applied under principles of conflicts of laws. 

        IN
WITNESS HEREOF, this Agreement has been executed and delivered by the parties hereto. 

	 	 	OWENS-ILLINOIS, INC.
	

 	
 	

By	

	 	 	Its Senior Vice President

	
 Optionee	 	 
	

	
 	

 
	

 Address	
 	

 
	

Optionee's Social Security Number:	
 	

 
	

	
 	

 

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QuickLinks

EXHIBIT 10.1

1997 EQUITY PARTICIPATION PLAN OF OWENS-ILLINOIS, INC. NON-QUALIFIED STOCK OPTION AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II GRANT OF OPTION

ARTICLE III PERIOD OF EXERCISABILITY

ARTICLE IV EXERCISE OF OPTION

ARTICLE V OTHER PROVISIONS

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