Document:

exv10w28

 

EXHIBIT 10.28

HERITAGE – CRYSTAL CLEAN, INC.

OMNIBUS INCENTIVE PLAN OF 2008

STOCK OPTION GRANT NOTICE AND AGREEMENT

To: [Name] (referred to herein as “Grantee” or “you”)

Heritage – Crystal Clean, Inc. (the “Company”) is pleased to confirm that you have been granted a
stock option Award (this “Award”), effective [insert date] (the “Grant Date”). This Award is
subject to the terms of this Stock Option Grant Notice and Agreement (this “Agreement”) and is made
under the Heritage – Crystal Clean, Inc. Omnibus Incentive Plan of 2008 (the “Plan”) which is
incorporated into this Agreement by reference. Any capitalized terms used herein that are
otherwise undefined shall have the same meaning provided in the Plan.

     1. Acceptance of Terms and Conditions. By accepting this Award, you agree to be bound by the
terms and conditions herein, the Plan and any and all conditions established by the Company in
connection with Awards issued under the Plan, and understand that this Award does not confer any
legal or equitable right (other than those rights constituting the Award itself) against the
Company or any Subsidiary directly or indirectly, or give rise to any cause of action at law or in
equity against the Company.

     2. Exercise Right. Your Award is to purchase, on the terms and conditions set forth below,
the following number of shares (the “Option Shares”) of the Company’s common stock, par value $.01
per share (the “Common Stock”) at the exercise price specified below (the “Exercise Price”).

	 	 	 
	Number of Option Shares	 	Exercise Price Per Option Share
	 	 	 

     3. Option Type. This Award is comprised of non-qualified stock options and is intended to
conform in all respects with the Plan. Copies of the Plan and the Participation Guide/Prospectus
for the Plan (the “Plan Prospectus”) are incorporated herein by reference, and are available from
the Company’s Compensation Committee. This Award is not intended to qualify as an incentive stock
option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

     4. Expiration Date. The Option Shares granted herein expire on the tenth anniversary of the
Grant Date (the “Expiration Date”), subject to earlier expiration upon your death, disability or
other termination of employment, as provided below.

     5. Vesting. This Award may be exercised only to the extent it has vested. Subject to
Paragraph 8 below, and provided that, for each of the below-stated anniversary dates on which you
continue to be employed by the Company or any of its Subsidiaries (collectively, the “HCCI
Companies”), you will vest in the below-stated percentage of the total number Option Shares awarded
under this Agreement until you are 100% vested in your Award:

	 	 	 	 	 
	Date	 	Vested % of Option Shares Awarded1
	First Anniversary of Grant Date
	 	 	25	%
	Second Anniversary of Grant Date
	 	 	25	%
	Third Anniversary of Grant Date
	 	 	25	%
	Fourth Anniversary of Grant Date
	 	 	25	%

 

			
	1	 	For immediate full vesting, use Grant Date and 100%.

 

 

     6. Death, or Total Disability. In the event that you cease active employment with the HCCI
Companies because of your death or permanent and total disability (as defined under the appropriate
disability benefit plan if applicable), no additional Option Shares shall vest after the date of
death or the date you are determined to be permanently and totally disabled, and the last date on
which any vested Option Shares may be exercised is the six-month anniversary of the date of death
or the date you are determined to be permanently and totally disabled (or the Expiration Date, if
earlier).

     7. Retirement. The retirement provisions described in this Paragraph apply solely to this
Agreement. If you cease active employment with the HCCI Companies after attaining age 62 or older
and completing at least 10 years of service with the HCCI Companies, irrespective of whether you
become a member of the Board of Directors of the Company, no additional shares shall vest, and the
last date on which any vested Option Shares may be exercised is the six-month anniversary of your
retirement date (or the Expiration Date, if earlier).

     8. Other Terminations of Employment and Change in Control.

     a. Involuntary Termination With Severance. If your employment with the Company is
terminated by the Company without Cause (a “Severance Event Termination”), then no
additional shares shall vest, and the last date on which vested Option Shares may be
exercised is the six month anniversary of the date of termination (or the Expiration Date,
if earlier).

     b. Non-Severance Event Termination. If your employment is terminated by the Company
and your employment is terminated for Cause then all vested and unvested Option Shares are
forfeited on the date of termination and may not be exercised. Any financial gain realized
from exercising all or a portion of this Award before your employment is terminated for
Cause shall not be forfeited except as pursuant to Section 10. “Cause” shall mean any one
or more of the following: (1) any willful failure to perform your required duties and
responsibilities, (2) any act of fraud, embezzlement or material dishonesty in connection
with your performance of duties, which has had or will have a detrimental effect on the
Company, (3) your conviction for or plea of nolo contendere to a felony, or (4) any willful
misconduct resulting in a material financial loss or liability to the Company or material
damage to the reputation of the Company.

     c. Voluntary Termination. If you voluntarily terminate your employment with the
Company, other than as described in Paragraph 7 above, then all unvested Option Shares are
forfeited on the date of termination, and the last date on which vested Option Shares may be
exercised is the three month anniversary of the date of termination (or the Expiration Date,
if earlier).

     d. Change in Control. In the event of a Change of Control as defined in the Plan, all
then outstanding Option Shares shall become vested and exercisable.

     9. Exercise. This Award may be exercised in whole or in part for the number of Option Shares
designated by you on either a paper form specified by the Company or via electronic instructions to
the Company’s designated agent. Any such exercise of this Award shall be accompanied by full
payment of the Exercise Price for such number of Option Shares. Payment of the Exercise Price may
be made in one of the following forms:

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     a. in cash;

     b. by surrendering previously acquired shares of Common Stock having a Fair Market
Value at the time of exercise equal to the Exercise Price;

     c. by certifying ownership of shares of Common Stock having a Fair Market Value at the
time of exercise equal to the Exercise Price in exchange for a reduction in the number of
shares of Common Stock issuable upon the exercise of the Award; or

     d. to the extent permitted by applicable law, by delivery of irrevocable instructions
to a broker to (1) promptly deliver to the Company the amount of sale proceeds from the
Stock Option shares or loan proceeds to pay the Exercise Price and any withholding taxes due
to the Company, and (2) deliver to you the balance of the Stock Option proceeds in the form
of cash or shares of Common Stock (as you select).

In connection with any payment of the Exercise Price by surrender or attesting to the ownership of
shares of Common Stock, proof acceptable to the Company shall be submitted substantiating the
shares owned. The value of previously acquired shares submitted (directly or by attestation) in
payment for the Option Shares purchased upon exercise shall be equal to the aggregate fair market
value (as defined in the Plan) of such previously acquired shares on the date of the exercise.
Option Shares will be considered finally exercised on the date on which your payment of the
Exercise Price has been received by the Company. The exercise of any portion of this Award will be
considered your acceptance of all terms and conditions specified in this Agreement. You are
personally responsible for the payment of all taxes related to the exercise.

     10. Forfeiture. Notwithstanding anything contained in this Agreement to the contrary, if,
while employed with or providing services to the Company and continuing for the lesser of 12 months
after termination of your service for any reason or the longest period permitted by applicable law,
you engage in any activity inimical, contrary or harmful to the interests of the Company or any
Subsidiary (referred to herein as “wrongful conduct”), including but not limited to: (1) competing,
directly or indirectly (either as owner, employee or agent), with any of the businesses of the
Company, (2) violating the Company’s business standards and practices, (3) soliciting any present
or future employees or customers of the Company to terminate such employment or business
relationship(s) with the Company, (4) disclosing or misusing any confidential information regarding
the Company, (5) participating in any activity not approved by the Board of Directors which could
reasonably be foreseen as contributing to or resulting in a Change of Control of the Company (as
defined in the Plan) or (6) disparaging or criticizing the Company or any of its Subsidiaries,
orally or in writing, unless such disparaging or criticizing comments are (A) made to the Company’s
officers or members of its Board of Directors and are intended to address a perceived problem
requiring the attention of the individual(s) to whom such comments are made, or (B) otherwise
protected by a law that prohibits retaliation against an individual making such comments, then (i)
this Award, to the extent it remains unexercised, shall terminate automatically on the date on
which you first engaged in such wrongful conduct and (ii) you shall pay to the Company in cash any
financial gain you realized from exercising all or a portion of this Award within the 24-month
period immediately preceding such wrongful conduct; provided, however, that such restrictions shall
only apply to the extent not inconsistent with the terms of your Non-Competition and Non-Disclosure
Agreement. If this Section 10 conflicts with the terms of your Non-Competition and Non-Disclosure
Agreement, the terms of your Non-Competition and Non-Disclosure Agreement shall control. For
purposes of this Paragraph 10, financial gain shall equal, on each date of exercise during the
24-month period immediately preceding such wrongful conduct, the difference between the fair market
value of the Common Stock on the date of exercise and the Exercise Price, multiplied by the number
of shares of Common Stock purchased pursuant to that exercise (without reduction for any shares of
Common Stock surrendered or

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attested to) reduced by any taxes paid in countries other than the
United States to acquire and or exercise and which taxes are not otherwise eligible for refund from
the taxing authorities. By accepting this
Award, you consent to and authorize the Company to deduct from any amounts payable by the
Company to you, any amounts you owe to the Company under this Paragraph 10.

     11. Adjustments. If the number of outstanding shares of Company Common Stock is changed as a
result of a stock split or the like without additional consideration to the Company, the number of
Option Shares subject to this Award and the Exercise Price shall be adjusted to correspond to the
change in the outstanding shares of Common Stock.

     12. Rights as a Stockholder. You will have no rights as a stockholder with respect to any
Option Shares until and unless ownership of such Option Shares has been transferred to you.

     13. Public Offer Waiver. By voluntarily accepting this Award, you acknowledge and understand
that your rights under the Plan are offered to you strictly as an employee of the HCCI Companies
and that this Award is not an offer of securities made to the general public.

     14. Transferability of Option Shares. You may not offer, sell or otherwise dispose of any
Common Stock covered by the Option Shares in a way which would: (i) require the Company to file any
registration statement with the Securities and Exchange Commission (or any similar filing under
state law or the laws of any other country) or to amend or supplement any such filing or (ii)
violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, any other state
or federal law, or the laws of any other country. The Company reserves the right to place
restrictions on Common Stock received by you pursuant to this Award.

     15. Conformity with the Plan. This Award is intended to conform in all respects with, and is
subject to all applicable provisions of the Plan. Inconsistencies between this Agreement, the
Plan, or Plan Prospectus shall be resolved in accordance with the terms of the Plan. By your
acceptance of this Agreement, you agree to be bound by all of the terms of this Agreement, the
Plan, and the Plan Prospectus.

     16. Interpretations. Any dispute, disagreement or question which arises under, or as a result
of, or in any way relates to the interpretation, construction or application of the Plan, this
Agreement, or the Plan Prospectus will be determined and resolved by the Committee or its
authorized delegate. Such determination or resolution by the Committee or its authorized delegate
will be final, binding and conclusive for all purposes.

     17. No Rights to Continued Employment. By voluntarily acknowledging and accepting this Award,
you acknowledge and understand that this Award shall not form part of any contract of employment
between you and any of the HCCI Companies. Nothing in the Agreement, the Plan Prospectus, or the
Plan confers on any Grantee any right to continue in the employ of the HCCI Companies or in any way
affects the HCCI Companies’ right to terminate the Grantee’s employment without prior notice at any
time or for any reason. You further acknowledge that this grant is for future services to the HCCI
Companies and is not under any circumstances to be considered compensation for past services.

     18. Consent to Transfer Personal Data. By accepting this Award, you voluntarily acknowledge
and consent to the collection, use, processing and transfer of personal data as described in this
Paragraph. You are not obliged to consent to such collection, use, processing and transfer of
personal data. The Company holds certain personal information about you, that may include your
name, home

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address and telephone number, fax number, email address, family size, marital status,
sex, beneficiary information, emergency contacts, passport / visa information, age, language
skills, drivers license
information, date of birth, birth certificate, social security number or other employee
identification number, nationality, C.V. (or resume), wage history, employment references, job
title, employment or severance contract, current wage and benefit information, personal bank
account number, tax related information, plan or benefit enrollment forms and elections, option or
benefit statements, any shares of stock or directorships in the Company, details of all options or
any other entitlements to shares of stock awarded, canceled, purchased, vested, unvested or
outstanding in the Grantee’s favor, for the purpose of managing and administering the Plan
(“Data”). The Company and/or its Subsidiaries will transfer Data amongst themselves as necessary
for the purpose of implementation, administration and management of your participation in the Plan,
and the Company may further transfer Data to any third parties assisting the Company in the
implementation, administration and management of the Plan. These recipients may be located
throughout the world, including the United States. You authorize them to receive, possess, use,
retain and transfer the Data, in electronic or other form, for the purposes of implementing,
administering and managing your participation in the Plan, including any requisite transfer of such
Data as may be required for the administration of the Plan and/or the subsequent holding of shares
of stock on your behalf to a broker or other third party with whom you may elect to deposit any
shares of stock acquired pursuant to the Plan. You may, at any time, review Data, require any
necessary amendments to it or withdraw the consents herein in writing by contacting the Company.

     19. Miscellaneous.

     a. Modification. The grant of this Award is documented by the records of the Committee
or its delegate which shall be the final determinant of the number of shares granted and the
conditions of this Agreement. The Committee may amend or modify this Award in any manner to
the extent that the Committee would have had the authority under the Plan initially to grant
such Award, provided that no such amendment or modification shall impair your rights under
this Agreement without your consent. Except as in accordance with the two immediately
preceding sentences and Paragraph 20, this Agreement may be amended, modified or
supplemented only by an instrument in writing signed by both parties hereto.

     b. Governing Law. This Agreement and any controversy arising out of or relating to
this Agreement shall be governed by and construed in accordance with the General Corporation
Law of the State of Delaware as to matters within the scope thereof. All other matters
shall be governed by and construed in accordance with the internal laws of Illinois without
regard to any state’s conflict of law principles. Any legal action related to this Plan
shall be brought only in a federal or state court located in Illinois.

     c. Successors and Assigns. Except as otherwise provided herein, this Agreement will
bind and inure to the benefit of the respective successors and permitted assigns of the
parties hereto whether so expressed or not.

     d. Waiver. The failure of the Company to enforce at any time any provision of this
Award shall in no way be construed to be a waiver of such provision or any other provision
hereof.

     e. Severability. Whenever feasible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be prohibited by or invalid under applicable law,
such provision will be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of this Agreement.

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     f. Impact Upon Termination of Employment. By voluntarily acknowledging and accepting
this Award, you agree that no benefits accruing under the Plan will be reflected in any
severance or indemnity payments that the Company may make or be required to make to you
in the future, regardless of the jurisdiction in which you may be located.

     20. Amendment. By accepting this Award, you agree that the granting of the Award is at the
discretion of the Committee and that acceptance of this Award is no guarantee that future Awards
will be granted under the Plan. Notwithstanding anything in this Agreement, the Plan Prospectus,
or the Plan or to the contrary, this Award may be amended by the Company without the consent of the
Grantee, including but not limited to modifications to any of the rights granted to the Grantee
under this Agreement, at such time and in such manner as the Company may consider necessary or
desirable to reflect changes in law. The Grantee understands that the Company may amend, resubmit,
alter, change, suspend cancel, or discontinue the Plan at any time without limitation.

     21. Plan Documents. The Plan and Plan Prospectus are available by contacting the Chief
Accounting Officer, Ellie Chaves, at (847)836-5670.

	 	 	 	 	 	 	 	 	 	 	 
	GRANTEE	 	HERITAGE-CRYSTAL CLEAN, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	Print Name:	 	 	 	Print Name:	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	 	 	 

- 6 -exv10w29

 

EXHIBIT 10.29

HERITAGE-CRYSTAL CLEAN, INC.

EMPLOYEE STOCK PURCHASE PLAN OF 2008

 

 

CERTIFICATE

     I hereby certify that the attached document is the official version of the Heritage-Crystal
Clean, Inc. Employee Stock Purchase Plan of 2008 adopted by the Board of Directors of the
Corporation by resolution dated                      and subsequently finalized by the duly authorized
officers of the Corporation effective as of                     .

     Dated this     day of                     , 2008.

	 	 	 	 	 	 	 
	 	 	HERITAGE CRYSTAL-CLEAN, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

HERITAGE-CRYSTAL CLEAN, INC.

EMPLOYEE STOCK PURCHASE PLAN OF 2008

     1. Purpose. The Heritage-Crystal Clean, Inc. Employee Stock Purchase Plan of 2008 provides
eligible employees of Heritage-Crystal Clean, Inc., and its Participating Subsidiaries an
opportunity to purchase common stock of the Corporation through payroll deductions on an after-tax
basis. The Plan is intended to qualify for favorable tax treatment under section 423 of the
Internal Revenue Code of 1986, as amended.

     2. Definitions. Where the context of the Plan permits, words in the masculine gender shall
include the feminine gender, the plural form of a word shall include the singular form, and the
singular form of a word shall include the plural form. Unless the context clearly indicates
otherwise, the following terms shall have the following meanings:

	 	(a)	 	Administrator means Chief Accounting Officer of the Corporation or such
independent third party administrator as the Corporation may engage to administer the
Plan.
	 
	 	(b)	 	Authorization Form means a payroll deduction form which authorizes payroll
deductions from a Participant’s Basic Pay and evidences the Participant’s membership in
the Plan. An Authorization Form may be completed in such written or electronic form as
the Committee in its discretion shall determine.
	 
	 	(c)	 	Basic Pay means, in relation to a Participant for a payroll period, the
Participant’s regular compensation earned during such payroll period, before any
deductions or withholding, but excluding overtime, bonuses, amounts paid as
reimbursement of expenses (including those paid as part of commissions) and any other
additional compensation.
	 
	 	(d)	 	Board means the Board of Directors of the Corporation.
	 
	 	(e)	 	Committee means the Compensation Committee of the Board.
	 
	 	(f)	 	Corporation means Heritage-Crystal Clean, Inc., a Delaware corporation, or any
successor thereto.
	 
	 	(g)	 	Eligible Employee is defined in Section 4 below.
	 
	 	(h)	 	Exchange Act means the Securities Exchange Act of 1934, as amended.
	 
	 	(i)	 	Exercise Date with respect to any Offering Period means the Grant Date of the
immediately following Offering Period.

 

 

	 	(j)	 	Exercise Price with respect to any Offering Period means an amount established
by the Committee prior to the Offering Period which amount shall in no event be less
than 95% of the Fair Market Value of Shares on the Offering Period’s Exercise Date.
	 
	 	(k)	 	Fair Market Value of a Share on any date shall be the closing price of the
Corporation’s Stock as reported on the Nasdaq for such date.
	 
	 	(l)	 	Grant Date means the first Monday of each Offering Period on which sales of the
Corporation’s Shares are reported on the Nasdaq or if no Shares are sold on that
Monday, then on the next succeeding day on which there is a sale.
	 
	 	(m)	 	Nasdaq means the Nasdaq Global Market.
	 
	 	(n)	 	Offering Period means a three-month period beginning on the first Monday of
each January (except for 2008, which begins on the first Monday of February), April,
July, and October, respectively, (or such alternative four months in a cycle of
three-month intervals as the Committee may establish in its discretion), and ending on
the last business day before the first Monday of the succeeding three-month period. If
no Shares are sold on what would otherwise be the first Monday of an Offering Period,
then that Offering Period shall commence on the next succeeding day on which there is a
sale, and the immediately preceding Offering Period shall end on the last business day
before the date on which there is a sale. Notwithstanding the definition of Offering
Period, the Initial Offering Period means the two-month period commencing on the first
Monday of February and ending on the last business day before the first Monday of the
next following regular Offering Period under the Plan.
	 
	 	(o)	 	Participant means an Eligible Employee who has completed an Authorization Form
and who continues to make contributions to the Plan, or who no longer contributes to
the Plan, but has Shares still held by the Administrator in accordance with this Plan.
	 
	 	(p)	 	Participating Subsidiaries means Limited Liability Corporations, 50% or more of
each class of the outstanding voting stock or voting power of which is beneficially
owned, directly or indirectly, by the Corporation, which are authorized by the
Corporation to participate in the Plan and which have agreed to participate.
	 
	 	(q)	 	Plan means the Heritage-Crystal Clean, Inc. Employee Stock Purchase Plan of
2008, as amended from time to time.
	 
	 	(r)	 	Plan Account means a payroll deduction account maintained by the Committee for
each Participant to which shall be credited all payroll deductions and from which shall
be deducted amounts charged for the purchase of Shares hereunder and withdrawals.

2

 

	 	(s)	 	Shares mean shares of Heritage-Crystal Clean, Inc. common stock, par value $.01
per share.

     3. Shares Subject to the Plan. There is hereby reserved for issuance under the Plan an
aggregate of 100,000 Shares. Available Shares shall be from such authorized but un-issued Shares
or from Shares reacquired from time to time.

     4. Eligible Employees. All employees of the Corporation or any of its Participating
Subsidiaries shall be eligible to participate in the Plan, except employees whose customary
employment is 20 hours or less per week or not more than five months in any calendar year, or who,
immediately after any Grant Date, own 5% or more of the total combined voting power or value of all
classes of stock of the Corporation or any Participating Subsidiary.

     5. Participation in the Plan. An Eligible Employee may voluntarily participate in the Plan by
completing and filing with the appropriate payroll office an Authorization Form during any Plan
enrollment period, as such enrollment periods may be established by the Committee. Such
Authorization Form may authorize payroll deductions from the employee’s Basic Pay, or some other
means of contributions received from employees.

     6. Contributions. The Committee, in its discretion, may establish a minimum deduction per
payroll period. A Participant’s deductions will commence as soon as administratively possible
during the next succeeding Offering Period after the Participant’s Authorization Form is filed and
recorded in the appropriate payroll office. Such deductions shall continue until the Participant
terminates participation in the Plan or until the Plan is terminated. Subject to the minimum and
maximum deductions set forth in the Plan, a Participant may change the amount of his or her payroll
deduction no more than twice in each calendar year by filing a new Authorization Form with the
appropriate payroll office. The change shall not become effective earlier than the first payroll
period in the next succeeding Offering Period after the Authorization Form is received and recorded
by the appropriate payroll office. Payroll deductions will be held in the Corporation or
Participating Subsidiary’s general accounts until the end of the Offering Period at which time they
will be applied solely for the purchase of Shares under the Plan. Participants will receive
periodic statements of their Plan Account balance.

3

 

     7. Purchase Price. The purchase price of the Shares shall be the Exercise Price as defined
herein.

     8. Number of Shares Purchasable. No Participant may be permitted to acquire more than $25,000
worth of Shares under the Plan per year. This limit shall be monitored by the Committee or its
delegate(s).

     9. Plan Accounts/Shares Acquired. Participating Subsidiaries shall maintain Plan Accounts for
Participants, where applicable. Shares purchased pursuant to the Plan shall be recorded on the
stock transfer records of the Corporation.

     10. Share Purchases. On each Exercise Date, each Participant’s Plan Account shall be charged
for the amount of the Shares to be purchased on that date. The number of Shares to be purchased on
an Exercise Date shall be determined by dividing the balance of the Participant’s Plan Account
(including any balance in the Participant’s Plan Account after the immediately prior Exercise Date)
by the Exercise Price, and then rounding downward to the nearest whole Share. No fractional Shares
shall be purchased, and any balance remaining in the Participant’s Plan Account after the Shares
have been purchased on the Exercise Date shall be carried forward to the next succeeding Offering
Period. As soon as practicable after the Exercise Date, a statement shall be delivered to the
Participant which shall include the number of Shares purchased on the Exercise Date and the
aggregate number of Shares purchased on behalf of such Participant under the Plan.

     11. Termination of Participation. A Participant, at any time and for any reason, may
voluntarily terminate participation in the Plan by notification of withdrawal delivered to the
appropriate office pursuant to administrative rules established by the Committee. A Participant’s
participation in the Plan shall be involuntarily terminated by his/her employer upon termination of
employment for any reason, or upon the Participant no longer being eligible for participation. In
the event of a Participant’s voluntary or involuntary termination of participation in the Plan, no
payroll deduction shall be taken from any pay due thereafter; and the balance in the Participant’s
Plan Account shall be paid either to the Participant or the

4

 

Participant’s estate. Except as provided above, a Participant may not withdraw any credit
balance in the Participant’s Plan Account, in whole or in part.

     12. Ceasing Contributions/Rights of Participants Who Leave Service. A Participant whose
participation in the Plan has terminated (either upon the Participant’s request or upon the
Participant’s termination of employment for any reason) may not rejoin the Plan until the third
succeeding enrollment period following the date of such termination.

     13. Rights as a Stockholder. Except as provided in Section 14, none of the rights or
privileges of a stockholder of the Corporation shall exist with respect to Shares purchased under
the Plan unless and until a statement representing such Shares shall have been issued to the
Participant.

     14. Dividends. Cash dividends on Shares acquired under the Plan will accrue to Participants
in the same manner as for other shareholders. Participants shall be invited to enroll in the
Corporation’s automatic dividend reinvestment plan.

     15. Rights Not Transferable. Rights under the Plan are not transferable by a Participant
other than by will or the laws of descent, and are exercisable during the Participant’s lifetime
only by the Participant.

     16. Application of Funds. All funds received or held by the Corporation under the Plan may be
used for any corporate purposes.

     17. Adjustments in Case of Changes Affecting Shares. In the event of a subdivision of
outstanding Shares, or the payment of a stock dividend, the number of Shares authorized for
issuance under the Plan shall be increased proportionately, and such equitable adjustments shall be
made by the Committee. In the event of any other change affecting the Corporation’s common stock,
such equitable adjustment shall be made by the Committee to give proper effect to such event.

     18. Administration of Plans.

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     (a) The Plan shall be administered by the Committee. The Committee shall have authority to
make rules and regulations for the administration of the Plan including when and how purchases
shall be made, and its interpretations and decisions with regard thereto shall be final and
conclusive. The Committee shall have authority to delegate its ministerial tasks hereunder to the
Corporation’s Human Resources Department and the Human Resources Departments of Participating
Subsidiaries which employ Participants. The Committee (or its delegate(s)) will be responsible
for:

	 	(i)	 	administering the Plan in unison with the Administrator and the
Corporation;
	 
	 	(ii)	 	informing Participants of the current market price of the
Shares upon request;
	 
	 	(iii)	 	informing Participants of the Exercise Price for each Offering
Period;
	 
	 	(iv)	 	informing Eligible Employees about the Plan, making deductions
from Basic Pay, and maintaining Participants’ Plan Accounts; and
	 
	 	(v)	 	obtaining information from the Administrator needed by the
Corporation or Participating Subsidiaries in order to comply with any
applicable reporting and withholding requirements.

(b) The Administrator will be responsible for:

	 	(i)	 	holding the Shares in trust in a book account;
	 
	 	(ii)	 	maintaining all relevant records and issuing documents required
for tax purposes by the Corporation, the Participating Subsidiaries and
Participants;
	 
	 	(iii)	 	providing quarterly statements and other documents as required
to the Participating Subsidiaries for distribution to Participants; and

6

 

	 	(iv)	 	providing management information reports to the Committee and
Participating Subsidiaries.

     19. Amendments to Plans. The Board or any person or persons authorized by the Board, at any
time, or from time to time, may amend, suspend, or terminate the Plan subject to any stockholder
approval needed to comply with the requirements of the Securities and Exchange Commission, the
Internal Revenue Code and the rules of the exchange upon which our common stock is listed,
provided, however, that except to conform the Plan to the requirements of local legislation, no
amendment may be made and no suspension or termination may take effect in respect of rights already
accrued to a Participant as a holder of Shares.

     20. Termination. The Plan shall terminate upon the earlier of the date it is terminated by
the Board and the date that no more Shares remain to be acquired under the Plan. Upon the
termination of the Plan, all remaining credit balances from authorized payroll deductions in
Participants’ Plan Accounts shall be returned to such Participants.

     21. Governmental Regulations. The Corporation’s obligation to sell and deliver Shares under
the Plan is subject to the approval of any governmental authority required in connection with the
authorization, issuance or sale of such stock. The Plan shall be suspended and become inoperative
with respect to Shares not theretofore optioned under the Plan during any period in which no
registration statement or amendment thereto under the Securities Act of 1933, as amended, is in
effect with respect to the Shares so remaining to be purchased under the Plan.

     22. Contracts of Employment and Other Employment Rights. The Plan may be terminated at any
time at the discretion of the Corporation and no compensation will be due to a Participant as a
result. Neither the value of the Shares nor the discount derived from the Purchase Price shall be
added to a Participant’s income for the purpose of calculating any employee benefits. No
additional rights arise to a Participant as a result of participating in the Plan or the
opportunity to participate. Participation in the Plan does not confer on any Participant any right
to future employment. Participation in the Plan is at the discretion of Eligible Employees. No
representation or warranty is given by the Corporation or Participating

7

 

Subsidiaries as to the present or future benefit of participation in the US Program. If a
Corporation or a Participating Subsidiary ceases participation in the Plan or the Corporation
ceases operation of the Plan, employees will have no right or action against the Participating
Subsidiary, the Committee or the Corporation for such termination.

     23. Governing Law. This agreement and any controversy arising out of or relating to this
agreement shall be governed by and construed in accordance with the General Corporation Law of the
State of Delaware as to matters within the scope thereof. To the extend not preempted by ERISA,
all other matters shall be governed by and construed in accordance with the internal laws of
Illinois without regard to any state’s conflict of law principles. Any legal action related to
this Plan shall be brought only in a federal or state court located in Illinois.

     24. Stockholder Approval. This Plan shall be effective as of the date approved by the
shareholders of the Corporation.

8

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