Document:

exh_102.htm

EXHIBIT 10.2

GLOBAL GEOPHYSICAL SERVICES, INC.

13927 South Gessner Road

Missouri City, TX  77489

October 25, 2012

 

Mr. Richard Degner

c/o Global Geophysical Services, Inc.

13927 South Gessner Road

Missouri City, TX  77489

 

Dear Richard:

 

When executed and delivered by you and the Company, this letter agreement shall constitute the mutual agreement of you and Global Geophysical Services, Inc. (the “Company”) with respect to your resignation from the Company and related matters.  You and the Company have agreed as follows:

 

1. Resignation from and Appointment to Certain Positions.  Effective as of October 25, 2012, you have resigned from all director, officer and employee positions you hold with the Company and its subsidiaries and affiliates, except that you will continue to occupy the board position of Non-Executive Chairman of the Board of Directors (the “Board”) of the Company, and, as soon as practicable after the date of this letter agreement, you will be appointed President of the Company’s wholly-owned subsidiary, AutoSeis, Inc. (“AutoSeis”).  During the period that you occupy the position of Non-Executive Chairman of the Board, the Company agrees that there will be no other Chairman of the Board (executive or non-executive).  A duly executed copy of your resignation letter is attached as an exhibit to this letter agreement (the “Resignation Letter”).  You agree that, as requested by the Company from time to time, you will execute such other documents as may be necessary to evidence the resignations covered by the Resignation Letter.

 

2. Terms and Conditions of AutoSeis Employment.  As President of AutoSeis:

 

(a) You will report to the Board.

 

(b) Your base salary will be maintained at its current level.

 

(c) You will be entitled to a commission payment equal to 1% of AutoSeis net sales to third parties (specifically excluding sales to the Company and its 

  

  

  

affiliates) at prices not less than as set forth on an approved pricing list, except as otherwise approved by the Chief Executive Officer of the Company.  Additional bonuses, if any, will be paid in the sole discretion of the Board.

 

(d) Your principal place of business will be an office at the Aperio offices in Houston.  You will not report to the offices of the Company except for meetings of the Company’s Board held at the offices of the Company, matters related to the business of AutoSeis or if requested to do so by the Chief Executive Officer of the Company.

 

(e) If your employment is terminated without “cause” (a “Qualifying Termination”) during the two-year period following the date of your appointment, you will receive a severance package consisting of the following:  (1) (x) if the Qualifying Termination occurs during the first twelve months following the date of this letter agreement, two years of base salary, paid in equal monthly installments over two years, and (y) if the Qualifying Termination occurs during the second twelve months following the date of this letter agreement, one year of base salary, paid in equal monthly installments over one year; (2) full vesting of any unvested Company equity awards; and (3) one year of continued medical coverage at active-employee rates; in each case subject to customary mutual releases and nondisparagement provisions.  For purposes of this letter agreement, “cause” will have the same meaning as set forth in the Company’s 2006 Incentive Compensation Plan but will also include a material breach of this letter agreement.  In consideration of the severance arrangement in this letter agreement, you agree that the Change in Control Agreement, dated as of March 16, 2012, to which you are a party is no longer of any force or effect.

 

3. Mutual Releases.

 

(a) You, individually and on behalf of your estate, heirs, assigns, predecessors-in-interest and successors-in-interest (the “Degner Parties”), absolutely and forever release and discharge the Company, its subsidiaries and affiliates, and all of the shareholders, members, partners, principals, officers, directors, managers, employees, attorneys, agents, representatives, successors and assigns of the foregoing (collectively, the “Company Parties”), from any and all claims, counterclaims, contentions, debts, agreements, rights, demands, covenants, duties, obligations, responsibilities, representations, warranties, promises, liabilities, damages, expenses, attorneys’ fees, costs and causes of action, whether known or unknown, of whatever kind, whether based on contract, tort, statutory or other legal or equitable theory of recovery (each, an “Action”), which any of the Degner Parties now has, ever has had, or may have had up to the date of this letter agreement and any related compensatory, punitive or liquidated damages.  The Actions released by the Degner Parties include, without limitation, those (i) arising out of or in connection with your service as an employee, officer and/or director of the Company or any of its affiliates (or any predecessor thereof), and the termination of such service in any such capacity, (ii) for 

 

  

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severance or vacation benefits, unpaid wages, salary, equity compensation or incentive payments, (iii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort, and (iv) for any violation of applicable state and local labor and employment laws (including, without limitation, all laws concerning harassment, discrimination, retaliation and other unlawful or unfair labor and employment practices).  You represent that neither you, nor any Degner Party, nor any person, organization or other entity acting on behalf of any of them, has filed any complaint, charge, claim or proceeding against any Company Party.  You do acknowledge and agree that the Degner Parties are waiving and releasing, to the maximum extent permitted by applicable law, Actions in your capacity as a stockholder of the Company (including, but not limited to, future Actions based on past conduct).

 

(b) The Company, on behalf of itself and the Company Parties, absolutely and forever releases and discharges the Degner Parties from any and all Actions which any of them now have, ever have had, or may have had up to the date of this letter agreement and any related compensatory, punitive or liquidated damages.  The Company represents that neither it, nor any Company Party, nor any person, organization or other entity acting on behalf of any of them, has filed any complaint, charge claim or proceeding against any Degner Party.

 

(c) You and the Company hereby agree that no fact, evidence, event, or transaction, whether known or unknown, will affect, in any manner, the final and unconditional nature of the releases contained herein.

 

(d) Actions not Released.  The releases given in this letter agreement shall not apply to any Action related to (i) your rights to receive the benefit of equity compensation and other benefits owed to you as of the date of this letter agreement in accordance with the applicable terms, (ii) your rights under any employee benefit plan in which you hold a vested interest, (iii) your or the Company’s right to enforce this letter agreement or (iv) your rights to indemnification as a director or officer of the Company or any of its affiliates.  You do acknowledge and agree that the Company is not waiving or releasing any Action related to the commission of any crime or act of willful misconduct by any Degner Party.

 

(e) You further agree that you will not voluntarily provide assistance, information or advice, directly or indirectly (including through agents or attorneys), to any person or entity in connection with any Action of any kind brought against the Company, nor shall you induce or encourage any person or entity to bring any such Action, nor shall you participate, directly or indirectly, in any such Actions.

 

  

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(f) No Admission of Liability.

 

(i) You, on your behalf and on behalf of the Degner Parties, deny any wrongdoing whatsoever in connection with your dealings with the Company Parties.  It is expressly understood and agreed that nothing contained in this letter agreement shall be deemed or construed at any time for any purpose as an admission of any wrongdoing or liability on the part of any Degner Party.

 

(ii) The Company, on behalf of itself and the Company Parties, denies any wrongdoing whatsoever in connection with its and their dealings with you.  It is expressly understood and agreed that nothing contained in this letter agreement shall be deemed or construed at any time for any purpose as an admission of any wrongdoing or liability on the part of any Company Party.

 

4. Nondisparagement.  From and after the date of this letter agreement, you shall not make or publish any disparaging statements (whether written or oral) regarding the Company or its affiliates, directors, officers or employees, and the Company shall not, and shall use its commercially reasonable efforts to ensure that its directors and officers, and that the directors and officers of its affiliates do not, make or publish any disparaging statements (whether written or oral) regarding you or any member of your immediate family.  However, this letter agreement shall not preclude either you or the Company (or, in the case of the Company, its subsidiaries, and their officers and directors) from making any truthful statements about the other to the extent required or necessary (a) by applicable law or regulation, in connection with any litigation or arbitration (regardless of whether between the parties), (b) in the course of any regulatory or administrative inquiry, review or investigation or (c) in response to a disparaging or incorrect statement made by the other party.

 

5. Miscellaneous.  The rights and obligations of the parties under this letter agreement may be amended, modified, waived or discharged only with the written consent of the parties hereto. This letter agreement shall be binding on, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors and permitted assigns.  This letter agreement shall be deemed to be made in the State of Texas and shall be governed by the laws of the State of Texas without regard to its principles of conflicts of law.  Together with the Resignation Letter, this letter agreement constitutes the entire agreement and understanding between the Company and you with respect to the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral) between you and the Company relating to such subject matter.  All notices or other communications required or permitted to be given by a party hereunder shall be in writing and shall be delivered by hand, sent by facsimile or email, or sent, postage prepaid, by registered, certified or express mail or overnight courier service, to the other party at the addresses contained in the records of the 

 

  

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Company (which each party shall update as necessary from time to time).  This letter agreement may be executed in counterparts (including via facsimile or .pdf file).

 

[signature page follows]

 

 

 

 

 

 

 

 

 

  

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If you are in agreement with the foregoing, please execute and deliver this letter agreement and the Resignation Letter to Chris Graham.

 

 

	 	 
Very truly yours,

 

GLOBAL GEOPHYSICAL SERVICES, INC.

	 	 	 
	 	 	 
	 	/s/ Christopher P. Graham
	 	By:	 
Christopher P. Graham

	 	Its:	 
Senior Vice President & General Counsel

 

 

	 
ACCEPTED AND AGREED:

	 	 
	 	 
	/s/ Richard A. Degner	 
	 
Richard A. Degner

	 

 

 

 

 

6Kirby Corporation 2000 Nonemployee Director Stock Plan

 Exhibit 4.1 
 KIRBY CORPORATION 
 2000 NONEMPLOYEE DIRECTOR STOCK PLAN 

ARTICLE I 

GENERAL 

Section 1.1. Purpose. The purpose of this Plan is to advance the interests of Kirby Corporation, a Nevada corporation (the
“Company”), by providing an additional incentive to attract and retain qualified and competent directors, upon whose efforts and judgment the success of the Company is largely dependent, through the encouragement of stock ownership in the
Company by such persons. 
 Section 1.2. Definitions. As used herein, the following terms shall have the meaning
indicated: 
 (a) “Award” means a grant under this Plan in the form of an Option or Restricted Stock. 

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

(c) “Change in Control” means the occurrence of any of the following events: 

(i) Any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended) becomes the beneficial owner, directly or indirectly, of voting securities representing thirty percent (30%) or more of the combined voting power of the Company’s then outstanding voting securities or, if a person is the
beneficial owner, directly or indirectly, of voting securities representing thirty percent (30%) or more of the combined voting power of the Company’s outstanding voting securities as of the date a particular Award is granted, such person
becomes the beneficial owner, directly or indirectly, of additional voting securities representing ten percent (10%) or more of the combined voting power of the Company’s then outstanding voting securities; 

(ii) During any period of twelve (12) months, individuals who at the beginning of such period constitute the Board
cease for any reason to constitute a majority of the Directors unless the election, or the nomination for election by the Company’s stockholders, of each new Director was approved by a vote of at least a majority of the Directors then still in
office who were Directors at the beginning of the period; 
 (iii) (A) Any consolidation or merger of the Company
or any Subsidiary that results in the holders of the Company’s voting securities immediately prior to the consolidation or merger having (directly or indirectly) less than a majority ownership interest in the outstanding voting securities of
the surviving entity immediately after the consolidation or merger, (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company or
(C) the liquidation or dissolution of the Company; 

 (iv) The stockholders of the Company accept a share exchange, with the
result that stockholders of the Company immediately before such share exchange do not own, immediately following such share exchange, at least a majority of the voting securities of the entity resulting from such share exchange in substantially the
same proportion as their ownership of the voting securities outstanding immediately before such share exchange; or 
 (v) Any tender or exchange offer is made to acquire thirty percent (30%) or more of the voting securities of the Company, other than an offer made by the Company, and shares are acquired pursuant to
that offer. 
 For purposes of this definition, the term “voting securities” means equity securities, or securities
that are convertible or exchangeable into equity securities, that have the right to vote generally in the election of Directors. 
 (d) “Code” means the Internal Revenue Code of 1986, as amended. 
 (e)
“Committee” means the Compensation Committee, if any, appointed by the Board. 
 (f) “Compensation Plan”
means the written plan or program in effect from time to time, as approved by the Board, which sets forth the compensation to be paid to Eligible Directors. 
 (g) “Date of Grant” means the date on which an Option or Restricted Stock is granted to an Eligible Director. 
 (h) “Director” means a member of the Board. 
 (i) “Eligible
Director” means a Director who is not an employee of the Company or a Subsidiary. 
 (j) “Existing Plan” means
the 2000 Nonemployee Director Stock Option Plan as adopted by the Board on September 22, 2000 and as amended through May 27, 2011. 
 (k) “Fair Market Value” of a Share means the closing price on the New York Stock Exchange on the day of reference. If the Shares are not listed for trading on the New York Stock Exchange, the
Fair Market Value on the date of reference shall be determined by any fair and reasonable means prescribed by the Committee. 

(l) “Nonincentive Stock Option” means an option that is not an incentive stock option as defined in Section 422 of the
Internal Revenue Code of 1986, as amended. 
 (m) “Option” means any option granted under this Plan. 

(n) “Optionee” means a person to whom a stock option is granted under this Plan or any successor to the rights of such person
under this Plan by reason of the death of such person. 

  
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 (o) “Payment Date” means the last day of a calendar quarter. 

(p) “Plan” means this 2000 Nonemployee Director Stock Plan for Kirby Corporation. 

(q) “Restricted Stock” means Shares granted under this Plan that are subject to restrictions described in Article III and
the Compensation Plan. 
 (r) “Share” means a share of the common stock, par value ten cents ($0.10) per share, of the
Company. 
 (s) “Subsidiary” means any corporation (other than the Company) in any unbroken chain of corporations
beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in
one of the other corporations in such chain. 
 Section 1.3. Total Shares and Limitations. 

(a) The maximum number of Shares that may be issued under this Plan shall be One Million Five Hundred Thousand (1,500,000) Shares,
which may be from Shares held in the Company’s treasury or from authorized and unissued Shares. If any Award granted under the Plan shall terminate, expire or be cancelled or surrendered as to any Shares, new Options may thereafter be granted
covering such Shares or such Shares may thereafter be issued as Restricted Stock. All Share numbers in the Plan reflect the 2-for-1 split of the common stock of the Company effected on May 31, 2006. 

(b) The maximum aggregate number of Shares that may be issued upon the exercise of Options granted pursuant to Section 2.5 or as
Restricted Stock pursuant to Section 3.4 shall be Ten Thousand (10,000) Shares. 
 ARTICLE II 

STOCK OPTIONS 

Section 2.1. Automatic Grant of Options. Options shall automatically be granted to Eligible Directors as provided in Sections
2.2, 2.3 and 2.4 and may be granted in the discretion of the Committee as provided in Section 2.5. All Options shall be Nonincentive Stock Options. Each Option shall be evidenced by an option agreement containing such terms deemed necessary or
desirable by the Committee that are not inconsistent with the Plan or any applicable law. Neither the Plan nor any Option shall confer upon any person any right to continue to serve as a Director. 

Section 2.2. Automatic One-Time Grant. Each Eligible Director shall automatically be granted an Option for Ten Thousand
(10,000) Shares on the date of such Eligible Director’s first election as a Director. 
 Section 2.3.
Automatic Annual Grants. Immediately after each annual meeting of stockholders of the Company, each Eligible Director shall automatically be granted an Option for Six Thousand (6,000) Shares. 

  
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 Section 2.4. Election to Receive Options. If the Compensation Plan permits
Eligible Directors to elect to receive an Option in lieu of all or part of Director fees otherwise payable in cash, each Eligible Director who has properly and timely made such election as provided in the Compensation Plan shall automatically be
granted an Option for a number of Shares equal to (i) the amount of the fee such Eligible Director elects to receive in the form of an Option divided by (ii) the Fair Market Value of a Share on the Date of Grant multiplied by (iii) 3,
with the result rounded to the nearest whole Share. 
 Section 2.5. Discretionary Grant of Options. The Committee
may in its discretion grant Options to Eligible Directors in addition to the Options granted pursuant to Sections 2.2, 2.3 and 2.4. 
 Section 2.6. Option Price. The option price per Share for any Option shall be the Fair Market Value on the Date of Grant. 

Section 2.7. Date of Grant. 
 (a) The Date of Grant of an Option granted under Section 2.2 shall be the date of the Eligible Director’s first election as a Director. 

(b) The Date of Grant of an Option granted under Section 2.3 shall be the date of the annual meeting of stockholders of the Company
to which the grant relates. 
 (c) The Date of Grant of an Option granted under Section 2.4 shall be the date of the next
annual meeting of stockholders after the election by the Eligible Director pursuant to the Compensation Plan to receive the Option in lieu of cash fees, except that, for an Eligible Director elected between annual stockholder meetings, the Date of
Grant shall be the date of his or her election as a Director. 
 (d) The Date of Grant of an Option granted under
Section 2.5 shall be the date on which the Committee takes formal action to grant the Option or such later date as may be specified by the Committee when granting the Option. 

Section 2.8. Vesting. 
 (a) An Option granted under Section 2.2 shall be exercisable on or after the Date of Grant. 
 (b) An Option granted under Section 2.3 shall become exercisable six months after the Date of Grant. 
 (c) An Option granted under Section 2.4 shall become exercisable on the Payment Date(s) following the Date of Grant as provided in this Section 2.7(c). The number of Shares as to which an Option
granted under Section 2.4 will become exercisable on each Payment Date after the Date of Grant shall equal the number of Shares subject to the Option divided by the number of Payment Dates occurring after the Date of Grant and before the first
anniversary of the most recent annual meeting of stockholders of the Company. 

  
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 (d) An Option granted under Section 2.5 shall become exercisable six months after the
Date of Grant. 
 (e) Notwithstanding the other provisions of this Section 2.7, (i) an Option shall only become
exercisable as provided in this Section 2.7 if the Optionee is a Director at the time the Option would otherwise become exercisable and (ii) upon the occurrence of a Change in Control, all Options outstanding at the time of the Change in
Control shall become immediately exercisable. 
 Section 2.9. Term of Options. The portion of an Option that is
exercisable shall automatically and without notice terminate upon the earlier of (a) one (1) year after the Optionee ceases to be a Director for any reason or (b) ten (10) years after the Date of Grant of the Option. The portion
of an Option that is not exercisable shall automatically and without notice terminate at the time the Optionee ceases to be a Director for any reason. 
 Section 2.10. Exercise of Options. Any Option may be exercised in whole or in part to the extent exercisable in accordance with Section 2.7. An Option shall be deemed exercised when
(i) the Company has received written notice of such exercise in accordance with the terms of the Option and (ii) full payment of the aggregate option price of the Shares as to which the Option is exercised has been made. Unless further
limited by the Committee in any Option, the option price of any Shares purchased shall be paid solely in cash, by certified or cashier’s check, by money order, by personal check or with Shares owned by the Optionee for at least six months, or
by a combination of the foregoing. If the option price is paid in whole or in part with Shares, the value of the Shares surrendered shall be their Fair Market Value on the date received by the Company. 

Section 2.11. Adjustment of Shares. 
 (a) If at any time while the Plan is in effect or unexercised Options are outstanding, there shall be any increase or decrease in the number of issued and outstanding Shares through the declaration of a
stock dividend or through any recapitalization resulting in a stock split, combination or exchange of Shares, then and in such event: 
 (i) appropriate adjustment shall be made in the maximum number of Shares then subject to being optioned under the Plan, and the numbers of Options to be granted under Sections 2.2, 2.3, 2.4 and 2.5, so
that the same proportion of the Company’s issued and outstanding Shares shall continue to be subject to being so optioned, and 
 (ii) appropriate adjustment shall be made in the number of Shares and the exercise price per Share thereof then subject to any outstanding Option, so that the same proportion of the Company’s issued
and outstanding Shares shall remain subject to purchase at the same aggregate exercise price. 
 (b) In the event of a merger,
consolidation or other reorganization of the Company in which the Company is not the surviving entity, the Board or the Committee may provide for any or all of the following alternatives: (i) for Options to become immediately exercisable,
(ii) for exercisable Options to be cancelled immediately prior to such transaction, (iii) for the assumption by the surviving entity of the Plan and the Options, with appropriate adjustments in the number and kind of shares and exercise
prices or (iv) for payment in cash or stock in lieu of and in complete satisfaction of Options. 

  
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 (c) Any fractional shares resulting from any adjustment under this Section 2.10 shall
be disregarded and each Option shall cover only the number of full shares resulting from such adjustment. 
 (d) Except as
otherwise expressly provided herein, the issuance by the Company of shares of its capital stock of any class, or securities convertible into shares of capital stock of any class, either in connection with direct sale or upon the exercise of rights
or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of or
exercise price of Shares then subject to outstanding Options granted under the Plan. 
 (e) Without limiting the generality of
the foregoing, the existence of outstanding Options granted under the Plan shall not affect in any manner the right or power of the Company to make, authorize or consummate (i) any or all adjustments, recapitalizations, reorganizations or other
changes in the Company’s capital structure or its business; (ii) any merger or consolidation of the Company; (iii) any issue by the Company of debt securities, or preferred or preference stock that would rank above the Shares subject
to outstanding Options; (iv) the dissolution or liquidation of the Company; (v) any sale, transfer or assignment of all or any part of the assets or business of the Company; or (vi) any other corporate act or proceeding, whether of a
similar character or otherwise. 
 Section 2.12. Transferability of Options. Each Option shall provide that such
Option shall not be transferable by the Optionee otherwise than by will or the laws of descent and distribution and that so long as an Optionee lives, only such Optionee or his guardian or legal representative shall have the right to exercise such
Option. 
 Section 2.13. Issuance of Shares. No person shall be, or have any of the rights or privileges of, a
stockholder of the Company with respect to any of the Shares subject to any Option unless and until such Shares (whether in certificated or in book entry or other electronic form) shall have been issued and delivered to such person. As a condition
of any transfer of Shares, the Committee may obtain such agreements or undertakings, if any, as it may deem necessary or advisable to assure compliance with any provision of the Plan, any agreement or any law or regulation including, but not limited
to, the following: 
 (a) a representation, warranty or agreement by the Optionee to the Company, at the time any Option is
exercised, that the Optionee is acquiring the Shares for investment and not with a view to, or for sale in connection with, the distribution of any such Shares; and 
 (b) a representation, warranty or agreement to be bound by any restrictions that are, in the opinion of the Committee, necessary or appropriate to comply with the provisions of any securities law deemed
by the Committee to be applicable to the issuance of the Shares. 

  
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 ARTICLE III 
 RESTRICTED STOCK 
 Section 3.1. Automatic Grants of Restricted Stock.
Restricted Stock shall automatically be granted to Eligible Directors as provided in Sections 3.2 and 3.3 and may be granted in the discretion of the Committee as provided in Section 3.4. Each Restricted Stock grant shall be evidenced by an
agreement containing such terms deemed necessary or desirable by the Committee that are not inconsistent with the Plan or any applicable law. No grant of Restricted Stock shall confer upon any person any right to continue to serve as a Director.

 Section 3.2. Automatic Annual Grants. Immediately after each annual meeting of stockholders of the Company, each
Eligible Director shall automatically be granted One Thousand (1,000) shares of Restricted Stock. 
 Section 3.3.
Election to Receive Restricted Stock. If the Compensation Plan permits Eligible Directors to elect to receive Restricted Stock in lieu of all or part of Director fees otherwise payable in cash, each Eligible Director who has properly and
timely made such election as provided in the Compensation Plan shall automatically be granted a number of Shares of Restricted Stock equal to (i) the amount of the fee such Eligible Director elects to receive in the form of Restricted Stock
divided by (ii) the Fair Market Value of a Share on the Date of Grant multiplied by (iii) 1.2, with the result rounded to the nearest whole Share. 
 Section 3.4. Discretionary Grant of Restricted Stock. The Committee may in its discretion grant Restricted Stock to Eligible Directors in addition to Restricted Stock granted pursuant to
Sections 3.2 and 3.3. 
 Section 3.5. Date of Grant. 

(a) The Date of Grant of Restricted Stock granted under Section 3.2 shall be the date of the annual meeting of stockholders of the
Company to which the grant relates. 
 (b) The Date of Grant of Restricted Stock granted under Section 3.3 shall be the
date of the next annual meeting of stockholders after the election by the Eligible Director pursuant to the Compensation Plan to receive the Restricted Stock in lieu of cash fees, except that, for an Eligible Director elected between annual
stockholder meetings, the Date of Grant shall be the date of his or her election as a Director. 
 (c) The Date of Grant of
Restricted Stock granted under Section 3.4 shall be the date on which the Committee takes formal action to grant the Restricted Stock. 
 Section 3.6. Vesting. 
 (a) Restricted Stock granted under
Section 3.2 shall vest six months after the Date of Grant. 
 (b) Restricted Stock granted under Section 3.3 shall
vest on the Payment Date(s) following the Date of Grant as provided in this Section 3.6(b). The number of Shares of Restricted Stock granted under Section 3.3 that will vest on each Payment Date after the Date of

  
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Grant shall equal the number of Shares of Restricted Stock granted divided by the number of Payment Dates occurring after the Date of Grant and before the first anniversary of the most recent
annual meeting of stockholders of the Company. 
 (c) Restricted Stock granted under Section 3.4 shall vest six months
after the Date of Grant. 
 (d) Notwithstanding the other provisions of this Section 3.6, (i) Restricted Stock shall
only vest as provided in this Section 3.6 if the holder is a Director at the time the Restricted Stock would otherwise vest and (ii) upon the occurrence of a Change in Control, all Restricted Stock issued under the Plan that is outstanding
at the time of the Change in Control shall immediately vest. 
 (e) Notwithstanding the vesting conditions set forth in the Plan
or the Compensation Plan, the Committee may in its discretion at any time accelerate the vesting of Restricted Stock or otherwise waive or amend any conditions of a grant of Restricted Stock under the Plan. 

Section 3.7. Restrictions on Transfer. Restricted Stock granted to an Eligible Director under the Plan (whether represented
by stock certificates or in book entry or other electronic form) shall be registered in the Director’s name or, at the option of the Committee, not issued until such time as the Restricted Stock shall become vested or as otherwise determined by
the Committee. If certificates are issued prior to the Shares of Restricted Stock becoming vested, such certificates shall either be held by the Company on behalf of the Director, or delivered to the Director bearing a legend to restrict transfer of
the certificate until the Restricted Stock has vested, as determined by the Committee. The Director shall have the right to vote and receive dividends on the Restricted Stock before it has vested. Except as may otherwise be expressly permitted by
the Committee, no Share of Restricted Stock may be sold, transferred, assigned or pledged by the Director until such Share has vested. In the event that a Director ceases to be a Director before all the Director’s Restricted Stock has vested,
the Shares of Restricted Stock that have not vested shall be forfeited. At the time Restricted Stock vests (and, if the Director has been issued legended certificates for Restricted Stock, upon the return of such certificates to the Company), such
vested Shares shall be issued to the Director, in certificated or book entry or other electronic form, free of all restrictions. 
 Section 3.8. Issuance of Shares. As a condition of the issuance of any Shares of Restricted Stock, the Committee may obtain such agreements or undertakings, if any, as it may deem necessary or
advisable to assure compliance with any provision of the Plan, any agreement or any law or regulation including, but not limited to, the following: 
 (a) a representation, warranty or agreement by the Eligible Director to the Company that the Eligible Director is acquiring the Shares for investment and not with a view to, or for sale in connection
with, the distribution of any such Shares; and 
 (b) a representation, warranty or agreement to be bound by any restrictions
that are, in the opinion of the Committee, necessary or appropriate to comply with the provisions of any securities law deemed by the Committee to be applicable to the issuance of the Shares. 

  
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 Section 3.9. Section 83(b) Election. If a Director receives Restricted
Stock that is subject to a “substantial risk of forfeiture,” the Director may elect under Section 83(b) of the Code to include in his or her gross income, for the taxable year in which the Restricted Stock is received, the Fair Market
Value of such Restricted Stock on the Date of Grant. If the Director makes the Section 83(b) election, the Director shall (a) make such election in a manner that is satisfactory to the Committee, (b) provide the Company with a copy of
such election and (c) agree to promptly notify the Company if any Internal Revenue Service or state tax agent, on audit or otherwise, questions the validity or correctness of such election or of the amount of income reportable on account of
such election. 
 ARTICLE IV 
 ADDITIONAL PROVISIONS 
 Section 4.1. Administration of the Plan. The
Plan shall be administered by the Committee. The Committee shall have the authority to interpret the provisions of the Plan, to adopt such rules and regulations for carrying out the Plan as it may deem advisable, to decide conclusively all questions
arising with respect to the Plan and to make all other determinations and take all other actions necessary or desirable for the administration of the Plan. All decisions and acts of the Committee shall be final and binding upon all affected
Optionees and holders of Restricted Stock. If there is no Committee, the Board shall administer the Plan and in such case all references to the Committee shall be deemed to be references to the Board. 

Section 4.2. Adjustment of Shares. If at any time while the Plan is in effect, there shall be any increase or decrease in the
number of issued and outstanding Shares through the declaration of a stock dividend or through any recapitalization resulting in a stock split, combination or exchange of Shares, the Committee shall make an appropriate adjustment in the number and
kind of Shares then subject to being issued under the Plan, so that the same proportion of the Company’s issued and outstanding Shares shall continue to be subject to issuance under the Plan upon the exercise of Options or as Restricted Stock.

 Section 4.3. Amendment. The Board may amend or modify the Plan in any respect at any time, subject to stockholder
approval if required by applicable law or regulation or by applicable stock exchange rules. 
 Section 4.4. Duration and
Termination. The Plan shall be of unlimited duration. The Board may suspend, discontinue or terminate the Plan at any time. Such action shall not impair any of the rights of any holder of any Option or Restricted Stock outstanding on the date of
the Plan’s suspension, discontinuance or termination without the holder’s written consent. 
 Section 4.5.
Effective Date. The Plan amends and restates the Existing Plan in its entirety, effective upon approval by the stockholders of the Company on April 24, 2012. 

  
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