Document:

EX-10.1 SECOND AMENDED & RESTATED STOCK PLAN

 

Exhibit 10.1

SECOND AMENDED AND RESTATED

TENSAR HOLDINGS, INC.

2005 STOCK INCENTIVE PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1. PURPOSE
	 	 	1	 
	 
	 	 	 	 
	2. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	3. ADMINISTRATION OF THE PLAN
	 	 	5	 
	3.1 Board
	 	 	5	 
	3.2 Committee
	 	 	5	 
	3.3 Grants
	 	 	5	 
	3.4 No Liability
	 	 	6	 
	 
	 	 	 	 
	4. STOCK SUBJECT TO THE PLAN
	 	 	6	 
	 
	 	 	 	 
	5. GRANT ELIGIBILITY
	 	 	7	 
	5.1 Employees and Other Service Providers
	 	 	7	 
	5.2 Successive Grants
	 	 	7	 
	5.3 Limitations on Incentive Stock Options
	 	 	7	 
	 
	 	 	 	 
	6. AWARD AGREEMENT
	 	 	7	 
	 
	 	 	 	 
	7. TERMS AND CONDITIONS OF OPTIONS
	 	 	7	 
	7.1 Option Price
	 	 	8	 
	7.2 Vesting
	 	 	8	 
	7.3 Term
	 	 	8	 
	7.4 Exercise of Options on Termination of Service
	 	 	8	 
	7.5 Limitations on Exercise of Option
	 	 	9	 
	7.6 Exercise Procedure
	 	 	9	 
	7.7 Right of Holders of Options
	 	 	9	 
	7.8 Delivery of Stock Certificates
	 	 	9	 
	 
	 	 	 	 
	8. TRANSFERABILITY OF OPTIONS
	 	 	9	 
	 
	 	 	 	 
	9. MANAGEMENT ROLLOVER RESTRICTED STOCK
	 	 	10	 
	 
	 	 	 	 
	10. RESTRICTED STOCK
	 	 	10	 
	10.1 Grant of Restricted Stock
	 	 	10	 
	10.2 Restrictions
	 	 	10	 
	10.3 Restricted Stock Certificates
	 	 	11	 
	10.4 Rights of Holders of Restricted Stock
	 	 	11	 
	10.5 Termination of Service
	 	 	11	 
	10.6 Purchase and Delivery of Stock
	 	 	11	 
	 
	 	 	 	 
	11. FORM OF PAYMENT
	 	 	12	 
	11.1 General Rule
	 	 	12	 
	11.2 Surrender of Stock
	 	 	12	 
	11.3 Cashless Exercise
	 	 	12	 
	11.4 Promissory Note
	 	 	12	 
	 
	 	 	 	 
	12. TAXES
	 	 	12	 
	12.1 Withholding Taxes
	 	 	12	 

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	 	 	Page
	12.2 Elections
	 	 	13	 
	12.3 Company Taxes
	 	 	13	 
	 
	 	 	 	 
	13. RESTRICTIONS ON TRANSFER OF SHARES OF STOCK
	 	 	13	 
	13.1 Right of First Refusal
	 	 	13	 
	13.2 Repurchase and Other Rights
	 	 	14	 
	13.3 Payment in Cash
	 	 	14	 
	13.4 Publicly Traded Stock
	 	 	14	 
	13.5 Legend
	 	 	14	 
	13.6 Shareholders Agreement
	 	 	14	 
	 
	 	 	 	 
	14. PARACHUTE LIMITATIONS
	 	 	15	 
	 
	 	 	 	 
	15. REQUIREMENTS OF LAW
	 	 	15	 
	15.1 General
	 	 	15	 
	15.2 Rule l6b-3
	 	 	16	 
	15.3 Registration of Stock
	 	 	16	 
	15.4 Financial Reports
	 	 	16	 
	 
	 	 	 	 
	16. EFFECT OF CHANGES IN CAPITALIZATION
	 	 	17	 
	16.1 Changes in Stock
	 	 	17	 
	16.2 Reorganization In Which
the Company Is the
Surviving Entity and in
Which
No Change of
Control Occurs
	 	 	17	 
	16.3 Reorganization, Sale of
Assets or Sale of Stock
Which Involves a Change
of
Control
	 	 	17	 
	16.4 Adjustments
	 	 	18	 
	16.5 No Limitations on Company
	 	 	18	 
	 
	 	 	 	 
	17. DURATION AND AMENDMENTS
	 	 	19	 
	17.1 Term of the Plan
	 	 	19	 
	17.2 Amendment and Termination of the Plan
	 	 	19	 
	 
	 	 	 	 
	18. GENERAL PROVISIONS
	 	 	19	 
	18.1 Disclaimer of Rights
	 	 	19	 
	18.2 Nonexclusivity of the Plan
	 	 	19	 
	18.3 Captions
	 	 	20	 
	18.4 Other Award Agreement Provisions
	 	 	20	 
	18.5 Number and Gender
	 	 	20	 
	18.6 Severability
	 	 	20	 
	18.7 Pooling
	 	 	20	 
	18.8 Governing Law
	 	 	20	 
	 
	 	 	 	 
	19. EXECUTION
	 	 	20	 

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SECOND AMENDED AND RESTATED

TENSAR HOLDINGS, INC.

2005 STOCK INCENTIVE PLAN

     Tensar Holdings, Inc., a Delaware corporation (the “Company”), sets forth herein the terms of
its Second Amended and Restated 2005 Stock Incentive Plan (the “Plan”) as follows:

1. PURPOSE

     The Plan is intended to enhance the Company’s and its Affiliates’ (as defined herein) ability
to attract and retain highly qualified officers, directors, key employees, and other persons, and
to motivate such officers, directors, key employees, and other persons to serve the Company and its
Affiliates and to expend maximum effort to improve the business results and earnings of the
Company, by providing to such officers, directors, key employees and other persons an opportunity
to acquire or increase a direct proprietary interest in the operations and future success of the
Company. To this end, the Plan provides for the grant of stock options and restricted stock in
accordance with the terms hereof. Stock options granted under the Plan may be nonqualified stock
options or incentive stock options, as provided herein. The Plan is intended to satisfy the
requirements for a “plan” described in Rule 701 promulgated under the Securities Act, and the
Company intends that this Plan be interpreted in accordance with that intent.

2. DEFINITIONS

     For purposes of interpreting the Plan and related documents (including Award Agreements), the
following definitions shall apply:

     2.1 “Affiliate” means, with respect to the Company, any company or other trade or business
that controls, is controlled by or is under common control with the Company within the meaning of
Rule 405 of Regulation C under the Securities Act, including, without limitation, any Subsidiary.

     2.2 “Award Agreement” means the stock option agreement, restricted stock agreement
or other written agreement between the Company and a Grantee that evidences and sets out the terms
and conditions of a Grant.

     2.3 “Benefit Arrangement” shall have the meaning set forth in Section 14 hereof.

     2.4 “Board” means the Board of Directors of the Company.

     2.5 “Cause” means, as determined by the Board and unless otherwise provided in an applicable
employment agreement between the Grantee or Service Provider, as applicable, and with the Company
or an Affiliate: (i) gross negligence or willful misconduct in connection with the performance of
duties; (ii) conviction of a criminal offense (other than minor traffic offenses); or (iii)
material breach of any term of any employment, consulting or other services,

 

 

confidentiality, intellectual property or non-competition agreement, if any, between the Grantee
or Service Provider, as applicable, and the Company or an Affiliate.

     2.6 “Change of Control” means (i) a merger, consolidation, or reorganization involving the
Company in which the Company’s shareholders immediately prior to such transaction do not own,
immediately following the consummation of such transaction, more than fifty percent (50%) of the
voting power of the surviving company; or (ii) the sale of all or substantially all of the
Company’s assets (on a consolidated basis with its subsidiaries); or (iii) the Arcapita Investors
(as such term is defined in the Shareholders Agreement) no longer own more than (x) 50% of the then
issued and outstanding capital stock of the Company and (y) 50% of all classes of voting stock of
the Company then issued and outstanding; (iv) any combination of, or similar transaction to, the
foregoing; or (v) Arcapita Bank B.S.C.(c) no longer controls (either through the ownership of
voting securities or the holding of voting proxies) the Arcapita Investors.

     2.7 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended.

     2.8 “Committee” means a committee of, and designated from time to time by resolution of, the
Board, which shall consist of one or more members of the Board.

     2.9 “Common Stock” means the common stock, par value $0.01 per share, of the Company.

     2.10 “Company” means Tensar Holdings, Inc., a Delaware corporation.

     2.11 “Disability” means Grantee is unable to perform substantially all of Grantee’s principal
duties on behalf of the Company or its Affiliates and by reason thereof either Grantee or the
Company elects to terminate Grantee’s employment with the Company or its Affiliates. The Company
and Grantee agree and covenant to interpret this definition of Disability. consistently with the
requirements of the Americans with Disabilities Act, Family and Medical Leave Act and any
applicable state law.

     2.12 “Effective Date” means October 31, 2005, the date the Plan is approved by the Board.

     2.13 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as
hereafter amended.

     2.14 “Exchange Agreement” means the Exchange Agreement, dated June 22, 2006, by and among the
Company, David Johnstone, John Kiely, Hendrik Jas, James McNally and Anthony Walsh.

     2.15 “Fair Market Value” means (i) if the Stock is not publicly traded, the price that the
Board acting in good faith determines through any reasonable valuation method for which a share of
Stock might change hands between a willing buyer and a willing seller, neither being under any
compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, or (ii) if
the Stock is publicly traded, the closing price on any date for a share of Stock as

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reported by The Wall Street Journal or if, The Wall Street Journal does not report
such closing price, such closing price as reported by a newspaper or trade journal selected by the
Board or, if no such closing price is available on such date, such closing price as so reported for
the immediately preceding business day on which the Stock is traded.

     2.16 “Family Member” means a person who is a spouse, former spouse, child, stepchild,
grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in- law,
son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive
relationships, of the Grantee, any person sharing the Grantee’s household (other than a tenant or
employee), a trust in which any one or more these persons have more than fifty percent of the
beneficial interest, a foundation in which any one or more of these persons (or the Grantee)
control the management of assets, and any other entity in which one or more these persons (or the
Grantee) own more than fifty percent of the voting interests; provided, however, that to the extent
required by applicable law, the term Family Member shall be limited to a person who is a spouse,
former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother, sister, brother- in-law, or sister-in-law,
including adoptive relationships, of the Grantee or a trust or foundation for the exclusive benefit
of any one or more of these persons.

     2.17 “Grant” means an award of an Option or Restricted Stock under the Plan.

     2.18 “Grant Date” means, as determined by the Board, the latest to occur of (i) the date as of
which the Board approves a Grant, (ii) the date on which the recipient of a Grant first becomes
eligible to receive a Grant under Section 5 hereof, (iii) and with respect to Management Rollover
Restricted Stock, the date upon which such Stock is substituted and exchanged for Rollover
Restricted Common Stock, or (iv) such other date as may be specified by the Board.

     2.19 “Grantee” means a person who receives or holds an Option or Restricted Stock under the
Plan.

     2.20 “Incentive Stock Option” means an “incentive stock option” within the meaning of Section
422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended
from time to time.

     2.21 “Management Rollover Restricted Stock” means an award of Restricted Stock that is granted
pursuant to (i) the Subscription and Contribution Agreement dated October 31, 2005 or (ii) the
Exchange Agreement.

     2.22 “Merger Agreement” means the Agreement and Plan of Merger, dated September 13, 2005, as
amended by that Amendment No. 1 to Agreement and Plan of Merger, dated October 31, 2005, by and
among The Tensar Corporation, the Company and The Merger Sub, Inc.

     2.23 “Nonqualified Stock Option” means a stock option that is not an Incentive Stock Option.

     2.24 “Option ” means an option to purchase one or more shares of Stock pursuant to the
Plan.

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     2.25 “Option Price” means the purchase price for each share of Stock subject to an
Option.

     2.26 “Other Agreement” shall have the meaning set forth in Section 14 hereof.

     2.27 “Plan” means this Amended and Restated Tensar Holdings, Inc. 2005 Stock Incentive Plan.

     2.28 “Public Offering” means the sale, in an underwritten public offering registered under the
Securities Act, of Stock, or of any other security of the Company which is substituted for Stock
under Section 16.

     2.29 “Purchase Price” means the purchase price for each share of Stock pursuant to a Grant of
Restricted Stock.

     2.30 “Reporting Person” means a person who is required to file reports under Section 16(a) of
the Exchange Act.

     2.31 “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 10
hereof, that are subject to restrictions and to a risk of forfeiture.

     2.32 “Rollover Restricted Common Stock” means the Restricted Stock described in Section 9
hereof.

     2.33 “Securities Act” means the Securities Act of 1933, as now in effect or as
hereafter amended.

     2.34 “Service” means service as an employee, officer, director or other Service Provider
of the Company or an Affiliate. Unless otherwise stated in the applicable Award Agreement, a
Grantee’s change in position or duties shall not result in interrupted or terminated Service, so
long as such Grantee continues to be an employee, officer, director or other Service Provider of
the Company or an Affiliate. Subject to the preceding sentence, whether a termination of Service
shall have occurred for purposes of the Plan shall be determined by the Board, which determination
shall be final, binding and conclusive.

     2.35 “Service Provider” means an employee, officer or director of the Company or an Affiliate,
or a consultant or adviser currently providing services to the Company or an Affiliate.

     2.36 “Share Purchase Agreement” means the Share Purchase Agreement, dated May 16, 2006, by and
among the Company, TTC UK Holdings Limited, 3i Group, Plc, Electra General Partner and the other
vendors party thereto, as amended, modified or otherwise supplemented.

     2.37 “Shareholders Agreement” means the Amended and Restated Shareholders
Agreement by and among Tensar Holdings, Inc. and its shareholders dated June      , 2006, as
amended from time to time or the then effective Shareholders Agreement at the time of any grant of
Restricted Stock or exercise of any Option.

4

 

     2.38 “Stock” means the Common Stock.

     2.39 “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of
Section 424(f) of the Code.

     2.40 “Ten-Percent Stockholder” means an individual who owns more than ten percent (10%) of the
total combined voting power of all classes of outstanding stock of the Company, its parent or any
of its Subsidiaries. In determining stock ownership, the attribution rules of Section 424(d) of the
Code shall be applied.

3. ADMINISTRATION OF THE PLAN

     3.1 Board.

          The Board shall have such powers and authorities related to the administration of the Plan as
are consistent with the Company’s certificate of incorporation and by-laws and applicable law. The
Board shall have full power and authority to take all actions and to make all determinations
required or provided for under the Plan, any Grant or any Award Agreement, and shall have full
power and authority to take all such other actions and make all such other determinations not
inconsistent with the specific terms and provisions of the Plan that the Board deems to be
necessary or appropriate to the administration of the Plan, any Grant or any Award Agreement. All
such actions and determinations shall be by the affirmative vote of a majority of the members of
the Board present at a meeting or by unanimous consent of the Board executed in writing in
accordance with the Company’s certificate of incorporation and by-laws and applicable law. The
interpretation and construction by the Board of any provision of the Plan, any Grant or any Award
Agreement shall be final, binding and conclusive. To the extent permitted by law, the Board may
delegate its authority under the Plan to a member of the Board or an executive officer of the
Company who is a member of the Board.

     3.2 Committee.

          The
Board from time to time may delegate to one or more Committees such powers and
authorities related to the administration and implementation of the Plan, as set forth in Section
3.1 above and in other applicable provisions, as the Board shall determine, consistent with the
certificate of incorporation and by-laws of the Company and applicable law. In the event that the
Plan, any Grant or any Award Agreement entered into hereunder provides for any action to be taken
by or determination to be made by the Board, such action may be taken by or such determination may
be made by the applicable Committee if the power and authority to do so has been delegated to the
Committee by the Board as provided for in Section 3.1. Unless otherwise expressly determined by
the Board, any such action or determination by the Committee shall be final, binding and
conclusive. To the extent permitted by law, the Committee may delegate its authority under the
Plan to a member of the Board or an executive officer of the Company who is a member of the Board.

     3.3 Grants.

          Subject to the other terms and conditions of the Plan, the Board shall have full and
final authority to:

5

 

          (i) designate Grantees,

          (ii) determine the type or types of Grants to be made to a Grantee,

          (iii) determine the number of shares of Stock to be subject to a Grant,

          (iv) establish the terms and conditions of each Grant (including,
but not limited to, the Option Price of any Option or the purchase price for
any Restricted Stock, the nature and duration of any restriction or condition
(or provision for lapse thereof) relating to the vesting, exercise, transfer,
or forfeiture of a Grant or the shares of Stock subject thereto, and any terms
or conditions that may be necessary to qualify Options as Incentive Stock
Options),

          (v) prescribe the form of each Award Agreement evidencing a Grant,

          (vi) amend, modify, or supplement the terms of any outstanding Grant, and

          (vii) grant Management Rollover Restricted Stock.

          Such authority specifically includes the authority, in order to effectuate the purposes of
the Plan but without amending the Plan, to modify Grants to eligible individuals who are foreign
nationals or are individuals who are employed outside the United States to recognize differences
in local law, tax policy, or custom. As a condition to any Grant, the Board shall have the right,
at its discretion, to require Grantees to return to the Company Grants previously awarded under
the Plan. Subject to the terms and conditions of the Plan, any such subsequent Grant shall be upon
such terms and conditions as are specified by the Board at the time the new Grant is made. The
Board shall have the right, in its discretion, to make Grants in substitution or exchange for any
other grant under another plan of the Company, any Affiliate, or any business entity to be
acquired by the Company or an Affiliate. The Company may retain the right in an Award Agreement to
cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in
violation or breach of or in conflict with any non-competition agreement, any agreement
prohibiting solicitation of employees or clients of the Company or any Affiliate thereof or any
confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in
competition with the Company or any Affiliate thereof, to the extent specified in such Award
Agreement applicable to the Grantee.

     3.4 No Liability.

          No member of the Board or of the Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any Grant or Award Agreement.

4. STOCK SUBJECT TO THE PLAN

     Subject to adjustment as provided in Section 16 hereof, the number of shares of Stock
available for issuance under the Plan shall be 2,632,206 shares of Stock. Stock issued or to be
issued under the Plan shall be authorized but unissued shares or, to the extent permitted by
applicable law, issued shares that have been reacquired by the Company. If any shares covered by a
Grant are not purchased or are forfeited (including issued but unvested Restricted Stock

6

 

repurchased by the Company), or if a Grant otherwise terminates without delivery of any Stock
subject thereto, then the number of shares of Stock counted against the aggregate number of shares
available under the Plan with respect to such Grant shall, to the extent of any such forfeiture or
termination, again be available for making Grants under the Plan. If the exercise price of any
Option granted under the Plan is satisfied by tendering shares of Stock to the Company (by either
actual delivery or by attestation), only the number of shares of Stock issued net of the shares of
Stock tendered shall be deemed delivered for purposes of determining the maximum number of shares
of Stock available for delivery under the Plan.

5. GRANT ELIGIBILITY

     5.1 Employees and Other Service Providers.

          Grants (including Grants of Incentive Stock Options, subject to Section 5.3) may be made
under the Plan to any employee, officer or director of, or other Service Provider providing
services to, the Company or any Affiliate. To the extent required by applicable state law, Grants
within certain states may be limited to employees and officers or employees, officers and
directors.

     5.2 Successive Grants.

          An eligible person may receive more than one Grant, subject to such restrictions as are
provided herein.

     5.3 Limitations on Incentive Stock Options.

          An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option
is an employee of the Company or any Subsidiary of the Company (or any parent of the Company);
(ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent
that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares
of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable
for the first time during any calendar year (under the Plan and all other plans of the Grantee’s
employer and its affiliates) does not exceed $100,000. This limitation shall be applied by taking
Options into account in the order in which they were granted.

6. AWARD AGREEMENT

          Each Grant pursuant to the Plan shall be evidenced by an Award Agreement, in such form or
forms as the Board shall from time to time determine, which specifies the number of shares subject
to the Grant and provides for adjustment in accordance with Section 16. Award Agreements granted
from time to time or at the same time need not contain similar provisions but shall be consistent
with the terms of the Plan. Each Award Agreement evidencing a Grant of Options shall specify
whether such Options are intended to be Nonqualified Stock Options or Incentive Stock Options, and
in the absence of such specification such options shall be deemed Nonqualified Stock Options.

7. TERMS AND CONDITIONS OF OPTIONS

7

 

     7.1 Option Price.

          The Option Price of each Option shall be fixed by the Board and stated in the Award
Agreement evidencing such Option; provided, however, that if the Option Price is less than the
Fair Market Value of a share of Stock on the date a Nonqualified Stock Option is granted, the
Option Certificate for such Nonqualified Stock Option shall include such terms and conditions as
are necessary to comply with the provisions of Section 409A of the Code. In the case of an
Incentive Stock Option the Option Price shall not be less than the Fair Market Value on the Grant
Date of a share of Stock; provided, however, that in the event that a Grantee is a Ten-Percent
Stockholder, the Option Price of an Incentive Stock Option granted to such Grantee shall be not
less than 110% of the Fair Market Value of a share of Stock on the Grant Date. To the extent
required by applicable law, in the case of a Nonqualified Stock Option, the Option Price shall be
not less than 85% of the Fair Market Value on the Grant Date of a share of Stock; provided,
however, that in the event that a Grantee is a Ten-Percent Stockholder, the Option Price shall be
not less than 110% of the Fair Market Value of a share of Stock on the Grant Date. In no case
shall the Option Price of any Option be less than the par value of a share of Stock.

     7.2 Vesting.

          Subject to Sections 7.3 and 16.3 hereof, and unless otherwise provided in an Award Agreement,
each Option granted under the Plan shall become exercisable as follows: twenty-five percent (25%)
of the total number of shares of Stock covered by the Grant shall vest on the first anniversary of
the Grant Date, provided Grantee is then still in Service; and thereafter, on each of the second,
third and fourth anniversaries of the Grant Date, provided Grantee is then still in Service, the
Option shall vest as to a further twenty-five percent (25%), respectively, of the total number of
shares of Stock covered by the Grant. For purposes of this Section 7.2, fractional numbers of
shares of Stock subject to an Option shall be rounded down to the next nearest whole number.

     7.3 Term.

          Each Option granted under the Plan shall terminate, and all rights to purchase shares of
Stock thereunder shall cease, upon the expiration of ten years from the Grant Date, or under such
circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the
Board and stated in the Award Agreement relating to such Option; provided, however, that in the
event that the Grantee is a Ten-Percent Stockholder, an Option granted to such Grantee that is
intended to be an Incentive Stock Option shall not be exercisable after the expiration of five
years from its Grant Date.

     7.4 Exercise of Options on Termination of Service.

          Each Award Agreement shall set forth the extent to which the Grantee shall have the right to
exercise the Option following termination of the Grantee’s Service. Such provisions shall be
determined in the sole discretion of the Board, need not be uniform among all Options issued
pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.
Notwithstanding the foregoing each Option shall provide that the Grantee shall have the right to
exercise the vested portion of any Option held at termination of Service for at least thirty

8

 

(30) days following termination of Service for any reason (other than for Cause), and that the
Grantee or the Grantee’s beneficiary or estate shall have the right to exercise the Option for at
least six (6) months if the Grantee’s Service terminates due to Disability or death.

     7.5 Limitations on Exercise of Option.

          Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in
whole or in part, prior to the date the Plan is approved by the shareholders of the Company, or
after ten years following the Grant Date, or after the occurrence of an event referred to in
Section 16 hereof which results in termination of the Option.

     7.6 Exercise Procedure.

          An Option that is exercisable may be exercised by the Grantee’s delivery to the Company of
written notice of exercise on any business day, at the Company’s principal office, on the form
specified by the Company. Such notice shall specify the number of shares of Stock with respect to
which the Option is being exercised and shall be accompanied by payment in full of the Option
Price of the shares for which the Option is being exercised. The minimum number of shares of Stock
with respect to which an Option may be exercised, in whole or in part, at any time shall be the
lesser of (i) 100 shares or such lesser number set forth in the applicable Award Agreement and
(ii) the maximum number of shares available for purchase under the Option at the time of exercise.
The Option Price shall be payable in a form described in Section 11.

     7.7 Right of Holders of Options.

          Unless otherwise stated in the applicable Award Agreement, a Grantee holding or
exercising an Option shall have none of the rights of a shareholder (for example, the right to
cash or dividend payments or distributions attributable to the subject shares of Stock or to
direct the voting of shares of Stock) until the shares of Stock covered thereby are fully paid and
issued to such Grantee.

     7.8 Delivery of Stock Certificates.

          Promptly after the exercise of an Option by a Grantee and the payment in full of the Option
Price, such Grantee shall be entitled to the issuance of a stock certificate or certificates
evidencing such Grantee’s ownership of the shares of Stock purchased upon such exercise of the
Option.

8. TRANSFERABILITY OF OPTIONS

          During the lifetime of a Grantee, only the Grantee (or, in the event of legal incapacity
or incompetency, the Grantee’s guardian or legal representative) may exercise an Option. No Option
shall be assignable or transferable by the Grantee to whom it is granted, other than by will or
the laws of descent and distribution.

9

 

9. MANAGEMENT ROLLOVER RESTRICTED STOCK

     9.1 The Board granted Management Rollover Restricted Stock pursuant to the terms stated in the
Subscription and Contribution Agreement, dated October 31, 2005. As provided in the Merger
Agreement, all Management Rollover Restricted Stock shall be a substitute for shares of Rollover
Restricted Common Stock (as defined in the Merger Agreement) which certain members of the Company’s
management transferred to the Purchaser in connection with the Merger (as defined in the Merger
Agreement).

     9.2 The Board shall grant Management Rollover Restricted Stock pursuant to the terms stated in
the Exchange Agreement. As provided in the Share Purchase Agreement, all Management Rollover
Restricted Stock shall be a substitute for TCI Loan Notes (as defined in the Share Purchase
Agreement) which certain members of management of The Tensar Group Limited transferred to the
Company in connection with the transactions consummated under the Share Purchase Agreement.

10. RESTRICTED STOCK

     10.1 Grant of Restricted Stock.

          The Board may from time to time grant Restricted Stock to persons eligible to receive Grants
under Section 5 hereof, subject to such restrictions, conditions and other terms as the Board may
determine.

     10.2 Restrictions.

          At the time a Grant of Restricted Stock is made, the Board shall establish a restriction
period applicable to such Restricted Stock. Unless a Grant of Restricted Stock is subject to a
different restriction period a Grantee’s right to Restricted Stock shall vest as follows:
twenty-five percent (25%) of the total number of shares of Restricted Stock covered by the Grant
shall vest on the first anniversary of the Grant Date, provided Grantee is then still in Service;
and thereafter, on each of the second, third and fourth anniversaries of the Grant Date, provided
Grantee is then still in Service, the Restricted Stock shall vest as to a further twenty-five
percent (25%), respectively, of the total number of shares covered by the Grant. No additional
shares of Restricted Stock shall vest after Grantee’s Service has terminated for any reason. The
Board may, in its sole discretion, at the time a Grant of Restricted Stock is made, prescribe
conditions that must be satisfied prior to the expiration of the restriction period, including the
satisfaction of corporate or individual performance objectives or continued Service, in order that
all or any portion of the Restricted Stock shall vest.

          The Board also may, in its sole discretion, shorten or terminate the restriction period or
waive any of the conditions applicable to all or a portion of the Restricted Stock. The Restricted
Stock may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of
during the restriction period or prior to the satisfaction of any other conditions prescribed by
the Board with respect to such Restricted Stock.

10

 

     10.3 Restricted Stock Certificates.

          The Company shall issue, in the name of each Grantee to whom Restricted Stock has been
granted, stock certificates representing the total number of shares of Restricted Stock granted to
the Grantee, as soon as reasonably practicable after the Grant Date. The Board may provide in an
Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the
Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company, or the
restrictions lapse, or (ii) such certificates shall be delivered to the Grantee, provided,
however, that such certificates shall bear a legend or legends that complies with the applicable
securities laws and regulations and makes appropriate reference to the restrictions imposed under
the Plan, the Award Agreement and the Shareholders Agreement.

     10.4 Rights of Holders of Restricted Stock.

          Unless the Board otherwise provides in an Award Agreement, holders of Restricted Stock shall
have the right to vote such Stock and the right to receive any dividends declared or paid with
respect to such Stock. The Board may provide that any non-cash dividends paid on Restricted Stock
must be reinvested in shares of Stock, which may or may not be subject to the same vesting
conditions and restrictions applicable to such Restricted Stock. All distributions, if any,
received by a Grantee with respect to Restricted Stock as a result of any stock split, stock
dividend, combination of shares, or other similar transaction shall be subject to the restrictions
applicable to the original Grant.

     10.5 Termination of Service.

          Unless otherwise provided by the Board in the applicable Award Agreement, upon the termination
of a Grantee’s Service with the Company or an Affiliate, any shares of Restricted Stock held by
such Grantee that have not vested, or with respect to which all applicable restrictions and
conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of Restricted
Stock, the Grantee shall have no further rights with respect to such Grant, including but not
limited to any right to vote Restricted Stock or any right to receive dividends with respect to
shares of Restricted Stock.

     10.6 Purchase and Delivery of Stock.

          The Grantee shall be required to purchase the Restricted Stock from the Company at a Purchase
Price equal to the greater of (i) the aggregate par value of the shares of Stock represented by
such Restricted Stock or (ii) the Purchase Price, if any, specified in the Award Agreement
relating to such Restricted Stock. The Purchase Price shall be payable in a form described in
Section 11 or, in the discretion of the Board, in consideration for past Services rendered to the
Company or an Affiliate. To the extent required by applicable law, the Purchase Price of a share
of Restricted Stock shall be not less than 85% of the Fair Market Value on the Grant Date of a
share of Stock; provided, however, that in the event that the Grantee is a Ten-Percent
Stockholder, the Purchase Price shall be not less than 100% of the Fair Market Value on the Grant
Date of a share of Stock.

          Upon the expiration or termination of the restriction period and the satisfaction of
any other conditions prescribed by the Board, having properly paid the Purchase Price, the

11

 

restrictions applicable to shares of Restricted Stock shall lapse, and, except as otherwise
provided in the Award Agreement and the Shareholders Agreement, a stock certificate for such
shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s
beneficiary or estate, as the case may be.

11. FORM OF PAYMENT

     11.1 General Rule.

          Payment of the Option Price for the shares purchased pursuant to the exercise of an Option or
the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents acceptable to
the Company.

     11.2 Surrender of Stock.

          To the extent the Award Agreement so provides, payment of the Option Price for shares
purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock may be
made all or in part through the tender to the Company of shares of Stock, which shares, if acquired
from the Company, shall have been held for at least six months at the
time of tender and which
shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price
has been paid thereby, at their Fair Market Value on the date of exercise.

     11.3 Cashless Exercise.

          With respect to an Option only (and not with respect to Restricted Stock), to the extent the
Award Agreement so provides and the shares of Stock have become publicly traded, payment of the
Option Price for shares purchased pursuant to the exercise of an Option may be made all or in part
by delivery (on a form acceptable to the Board) of an irrevocable direction to a licensed
securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of
the sales proceeds to the Company in payment of the Option Price and any withholding taxes
described in Section 12.

     11.4 Promissory Note.

          To the extent the Award Agreement so provides, payment of the Option Price for shares
purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock may be
made all or in part with a full recourse promissory note executed by the Grantee. The interest
rate and other terms and conditions of such note shall be determined by the Board. The Board may
require that the Grantee pledge the Stock subject to the Grant for the purpose of securing payment
of the note. In no event shall stock certificate(s) representing the Stock be released to the
Grantee until such note is paid in full.

12. TAXES

     12.1 Withholding Taxes.

          The Company or any Affiliate, as the case may be, shall have the right to deduct from
payments of any kind otherwise due to a Grantee any Federal, state, or local taxes, levies,

12

 

contributions or amounts of such nature or of any kind required by law to be withheld with respect
to the vesting of or other lapse of restrictions applicable to Restricted Stock or upon the
issuance of any shares of Stock upon the exercise of an Option. At the time of such vesting, lapse,
or exercise, the Grantee shall pay to the Company or Affiliate, as the case may be, any amount that
the Company or Affiliate may reasonably determine to be necessary to satisfy such withholding
obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by
the Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to
satisfy such obligations, in whole or in part, (i) by causing the Company or the Affiliate to
withhold shares of Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or
the Affiliate shares of Stock already owned by the Grantee. The shares of Stock so delivered or
withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair
Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined
by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be
determined. A Grantee who has made an election pursuant to this Section 12 may satisfy his or her
withholding obligation only with shares of Stock that are not subject to any vesting requirement.

     12.2 Elections.

          A Grantee (or such other individual who is entitled to exercise an Option pursuant to a Grant
under the terms of this Plan) shall not exercise an Option unless and until such Grantee or other
individual shall have entered into the appropriate elections and forms for UK tax purposes as
reasonably determined and in such form as reasonably required by the Company and with the Company
in respect of the Stock granted under such Option.

     12.3 Company Taxes.

          To the extent permitted by law and notwithstanding anything in the Plan or an Award Agreement
to the contrary, a Grantee (or such other individual who is entitled to exercise an Option pursuant
to a Grant under the terms of this Plan) shall not exercise an Option unless and until such Grantee
or other individual shall have paid or made satisfactory arrangements to pay the Company or any
Affiliate, as the case may be, such sum as in the reasonable opinion of the Company or any such
Affiliate, as the case may be, is sufficient to indemnify the Company and any such Affiliate to the
extent permitted by law against the Company’s or any Affiliate’s employer’s national insurance
contributions, payroll taxes or such similar federal, state, local or foreign taxes, contributions,
levies or duties.

13. RESTRICTIONS ON TRANSFER OF SHARES OF STOCK

     13.1 Right of First Refusal.

          Subject to Section 13.4 below, a Grantee (or such other individual who is entitled to
exercise an Option or otherwise acquire shares pursuant to a Grant under the terms of this Plan)
shall not (unless otherwise permitted or required under the Shareholders Agreement) sell, pledge,
assign, gift, transfer, or otherwise dispose of any shares of Stock acquired pursuant to a Grant
to any person or entity without first offering such shares to the Company for purchase on the same
terms and conditions as those offered the proposed transferee. The Company may

13

 

assign its right of first refusal under this Section 13.1 in whole or in part, to (1) any holder of
stock or other securities of the Company, (2) any Affiliate or (3) any other person or entity that
the Board determines has a sufficient relationship with or interest in the Company. The Company
shall give reasonable written notice to the Grantee of any such assignment of its rights. The
restrictions of this Section 13.1 apply to any person to whom Stock that was originally acquired
pursuant to a Grant is sold, pledged, assigned, bequeathed, gifted, transferred or otherwise
disposed of, without regard to the number of such subsequent transferees or the manner in which
they acquire the Stock, but the restrictions of this Section 13.1 do not apply to a transfer of
Stock that occurs as a result of the death of the Grantee or of any subsequent transferee (but
shall apply to the executor, the administrator or personal representative, the estate, and the
legatees, beneficiaries and assigns thereof).

     13.2 Repurchase and Other Rights.

          Stock issued upon exercise of an Option or pursuant to the Grant of Restricted Stock may be
subject to such right of repurchase or other transfer restrictions as the Board may determine,
consistent with applicable law. Any such additional restriction shall be set forth in the Award
Agreement or the Shareholders Agreement. Notwithstanding anything to the contrary herein or
elsewhere in this Plan, neither the Board nor the Committee shall have the right or power to
unilaterally amend or modify the terms, conditions, rights or obligations of the parties under any
Management Rollover Restricted Stock Agreement.

     13.3 Payment in Cash.

          Upon the Grantee’s termination of Service, the repurchase of shares of Stock acquired by the
Grantee pursuant to the exercise of an Option or under a Grant of Restricted Stock, payment shall
be made in cash or by cancellation of indebtedness within the later of 90 days from the date of
termination of Service or 90 days from the date of exercise or purchase, as the case may be.

     13.4 Publicly Traded Stock.

          If the Stock is listed on an established national or regional stock exchange or is admitted
to quotation on The Nasdaq Stock Market, Inc., or is publicly traded in an established securities
market, the foregoing transfer restrictions of Sections 13.1 and 13.2 shall terminate as of the
first date that the Stock is so listed, quoted or publicly traded.

     13.5 Legend.

          In order to enforce the restrictions imposed upon shares of Stock under this Plan or as
provided in an Award Agreement, the Board may cause a legend or legends to be placed on any
certificate representing shares issued pursuant to this Plan that complies with the applicable
securities laws and regulations and makes appropriate reference to the restrictions imposed under
it.

     13.6 Shareholders Agreement.

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          Unless this requirement is waived by the Committee, the Grantee agrees to enter into, execute
a counterpart signature page to, and be bound by the then existing Shareholders Agreement within
the time prescribed by the Committee or the Grantee shall forfeit any Award of Restricted Stock or
other form of equity based grant.

14. PARACHUTE LIMITATIONS

     Notwithstanding any other provision of this Plan or of any other agreement, contract, or
understanding heretofore or hereafter entered into by a Grantee with the Company or any Affiliate,
except an agreement, contract, or understanding heretofore or hereafter entered into that expressly
modifies or excludes application of this paragraph (an “Other Agreement”), and notwithstanding any
formal or informal plan or other arrangement for the direct or indirect provision of compensation
to the Grantee (including groups or classes of participants or beneficiaries of which the Grantee
is a member), whether or not such compensation is deferred, is in cash, or is in the form of a
benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified
individual,” as defined in Section 280G(c) of the Code, any Options or Restricted Stock held by
that Grantee and any right to receive any payment or other benefit under this Plan shall not become
exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit,
taking into account all other rights, payments, or benefits to or for the Grantee under this Plan,
all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the
Grantee under this Plan to be considered a “parachute payment” within the meaning of Section
280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of
receiving a Parachute Payment, the aggregate after-tax amounts received by the Grantee from the
Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the
maximum after-tax amount that could be received by the Grantee without causing any such payment or
benefit to be considered a Parachute Payment. In the event that the receipt of any such right to
exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights,
payments, or benefits to or for the Grantee under any Other Agreement or any Benefit Arrangement
would cause the Grantee to be considered to have received a Parachute Payment under this Plan that
would have the effect of decreasing the aftertax amount received by the Grantee as described in
clause (ii) of the preceding sentence, then the Grantee shall have the right, in the Grantee’s sole
discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements,
and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment
or benefit to the Grantee under this Plan be deemed to be a Parachute Payment.

15. REQUIREMENTS OF LAW

     15.1 General.

          The Company shall not be required to sell or issue any shares of Stock under any Grant if the
sale or issuance of such shares would constitute a violation by the Grantee, any other individual
exercising a right emanating from such Grant, or the Company of any provision of any law or
regulation of any governmental authority, including without limitation any federal or state
securities laws or regulations. If at any time the Company shall determine, in its discretion, that
the listing, registration or qualification of any shares subject to a Grant upon any securities
exchange or under any governmental regulatory body is necessary or desirable as a condition of,

15

 

or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be
issued or sold to the Grantee or any other individual exercising an Option pursuant to such Grant
unless such listing, registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall
in no way affect the date of termination of the Grant. Specifically, in connection with the
Securities Act, upon the exercise of any right emanating from such Grant or the delivery of any
shares of Restricted Stock, unless a registration statement under the Securities Act is in effect
with respect to the shares of Stock covered by such Grant, the Company shall not be required to
sell or issue such shares unless the Board has received evidence satisfactory to it that the
Grantee or any other individual exercising an Option may acquire such shares pursuant to an
exemption from registration under the Securities Act. Any determination in this connection by the
Board shall be final, binding, and conclusive. The Company may, but shall in no event be obligated
to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be
obligated to take any affirmative action in order to cause the exercise of an Option or the
issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any
governmental authority. As to any jurisdiction that expressly imposes the requirement that an
Option shall not be exercisable until the shares of Stock covered by such Option are registered or
are exempt from registration, the exercise of such Option (under circumstances in which the laws of
such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or
the availability of such an exemption.

     15.2 Rule 16b-3.

          During any time when the Company has a class of equity security registered under Section 12 of
the Exchange Act, it is the intent of the Company that Grants pursuant to the Plan and the exercise
of Options granted hereunder will qualify for the exemption provided by Rule 16b-3 under the
Exchange Act. To the extent that any provision of the Plan or action by the Board does not comply
with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law
and deemed advisable by the Board, and shall not affect the validity of the Plan. In the event that
Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any
respect necessary to satisfy the requirements of, or to take advantage of any features of, the
revised exemption or its replacement.

     15.3 Registration of Stock. If the Company registers Stock under the Securities Act in
connection with a Public Offering, the Company shall to the extent practicable under the
circumstances cause all shares of Stock reserved for issuance under this Plan to be included in
such registration on the same terms and conditions as the other Stock then being registered.

     15.4 Financial Reports.

          To the extent required by applicable law, not less often than annually, the Company shall
furnish to Grantees summary financial information including a balance sheet regarding the
Company’s financial condition and results of operations, unless such Grantees have duties with the
Company that assure them access to equivalent information. Such financial statements need not be
audited.

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16. EFFECT OF CHANGES IN CAPITALIZATION

     16.1 Changes in Stock.

          The number of shares for which Grants of Options and Restricted Stock may be made under the
Plan shall be proportionately increased or decreased for any increase or decrease in the number of
shares of Stock on account of any recapitalization, reclassification, stock split, reverse split,
combination of shares, exchange of shares, stock dividend or other distribution payable in capital
stock, or for any other increase or decrease in such shares effected without receipt of
consideration by the Company occurring after the Effective Date (any such event hereafter referred
to as a “Corporate Event”). In addition, subject to the exception set forth in the last sentence of
Section 16.4, the number of shares for which Grants are outstanding shall be proportionately
increased or decreased for any increase or decrease in the number of shares of Stock on account of
any Corporate Event. Any such adjustment in outstanding Options shall not change the aggregate
Option Price payable with respect to shares that are subject to the unexercised portion of an
Option outstanding but shall include a corresponding proportionate adjustment in the Option Price
per share. The conversion of any convertible securities of the Company shall not be treated as an
increase in shares effected without receipt of consideration. In the event of any distribution to
the Company’s shareholders of securities of any other entity or other assets (other than dividends
payable in cash or stock of the Company) without receipt of consideration by the Company, the
Company may, in such manner as the Company deems appropriate, adjust (i) the number and kind of
shares subject to outstanding Awards and/or (ii) the exercise price of outstanding Options to
reflect such distribution.

     16.2 Reorganization In Which the Company Is the Surviving Entity and in Which No Change of
Control Occurs.

          Subject to the exception set forth in the last sentence of Section 16.4, if the Company shall
be the surviving entity in any reorganization, merger, or consolidation of the Company with one or
more other entities and in which no Change of Control occurs, any Grant theretofore made pursuant
to the Plan shall pertain to and apply solely to the shares of Stock to which a holder of the
number of shares of Stock subject to such Grant would have been entitled immediately following
such reorganization, merger, or consolidation, and in the case of Options, with a corresponding
proportionate adjustment of the Option Price per share so that the aggregate Option Price
thereafter shall be the same as the aggregate Option Price of the shares remaining subject to the
Option immediately prior to such reorganization, merger, or consolidation. Subject to any contrary
language in an Award Agreement evidencing a Grant of Restricted Stock, any restrictions applicable
to such Restricted Stock shall apply as well to any replacement shares received by the Grantee as
a result of the reorganization, merger or consolidation.

     16.3 Reorganization, Sale of Assets or Sale of Stock Which Involves a Change of Control.

          Subject to the exceptions set forth in the last sentence of this Section 16.3 and the last
sentence of Section 16.4, upon the occurrence of a Change of Control, (i) all outstanding shares
of Restricted Stock shall be deemed to have vested, and, with the exception of such restrictions
imposed under Section 13, all restrictions and conditions applicable to such shares of

17

 

Restricted Stock shall be deemed to have lapsed, immediately prior to the occurrence of such Change
of Control, and (ii) either of the following two actions shall be taken: (A) fifteen days prior to
the scheduled consummation of a Change of Control, all Options outstanding hereunder shall become
immediately exercisable and shall remain exercisable for a period of fifteen days, or (B) the Board
may elect, in its sole discretion, to cancel any outstanding Grants and pay or deliver, or cause to
be paid or delivered, to the holder thereof an amount in cash or securities having a value (as
determined by the Board acting in good faith), in the case of Restricted Stock, equal to the
formula or fixed price per share paid to holders of shares of Stock and, in the case of Options,
equal to the product of the number of shares of Stock subject to the Option (the “Option Shares”)
multiplied by the amount, if any, by which (I) the formula or fixed price per share paid to holders
of shares of Stock pursuant to such transaction exceeds (II) the Option Price applicable to such
Option Shares. With respect to the Company’s establishment of an exercise window, (i) any exercise
of an Option during such fifteen-day period shall be conditioned upon the consummation of the event
and shall be effective only immediately before the consummation of the event, and (ii) upon
consummation of any Change of Control the Plan, and all outstanding but unexercised Options shall
terminate. The Board shall send written notice of an event that will result in such a termination
to all individuals who hold Options not later than the time at which the Company gives notice
thereof to its shareholders.

          This Section 16.3 shall not apply to any Change of Control to the extent that provision is
made in writing in connection with such Change of Control for the assumption or continuation of
the Options and Restricted Stock theretofore granted, or for the substitution for such Options and
Restricted Stock for Stock options and Restricted Stock relating to the stock of a successor
entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares
(disregarding any consideration that is not Stock) and option prices, in which event the Plan and
Options and Restricted Stock theretofore granted shall continue in the manner and under the terms
so provided.

     16.4 Adjustments.

          Adjustments under Section 16 related to shares of Stock or securities of the Company shall be
made by the Board, whose determination in that respect shall be final, binding and conclusive. No
fractional shares or other securities shall be issued pursuant to any such adjustment, and any
fractions resulting from any such adjustment shall be eliminated in each case by rounding downward
to the nearest whole share. The Board may provide in the Award Agreements at the time of Grant, or
any time thereafter with the consent of the Grantee, for different provisions to apply to a Grant
in place of those described in Sections 16.1, 16.2 and 16.3.

     16.5 No Limitations on Company.

          The making of Grants pursuant to the Plan shall not affect or limit in any way the right
or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its
capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or
transfer all or any part of its business or assets.

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17. DURATION AND AMENDMENTS

     17.1 Term of the Plan.

          The Effective Date of this Plan is the date of its adoption by the Board, subject to the
approval of the Plan by the Company’s stockholders. In the event that the stockholders fail to
approve the Plan within twelve (12) months after its adoption by the Board, any Grants already
made shall be null and void, and no additional Grants shall be made after such date. The Plan
shall terminate automatically ten (10) years after its adoption by the Board and may be terminated
on any earlier date as next provided.

     17.2 Amendment and Termination of the Plan.

          The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to
any shares of Stock as to which Grants have not been made. An amendment to the Plan shall be
contingent on approval of the Company’s stockholders only to the extent required by applicable
law, regulations or rules. No Grants shall be made after the termination of the Plan. No
amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, alter
or impair rights or obligations under any Grant theretofore awarded under the Plan.

18. GENERAL PROVISIONS

     18.1 Disclaimer of Rights.

          No provision in the Plan or in any Grant or Award Agreement shall be construed to confer
upon any individual the right to remain in the employ or service of the Company or any Affiliate,
or to interfere in any way with any contractual or other right or authority of the Company either
to increase or decrease the compensation or other payments to any individual at any time, or to
terminate any employment or other relationship between any individual and the Company or any
Affiliate. The obligation of the Company to pay any benefits pursuant to this Plan shall be
interpreted as a contractual obligation to pay only those amounts described herein, -in the manner
and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the
Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or
escrow for payment to any participant or beneficiary under the terms of the Plan.

     18.2 Nonexclusivity of the Plan.

          Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the
Company for approval shall be construed as creating any limitations upon the right and authority of
the Board to adopt such other incentive compensation arrangements (which arrangements may be
applicable either generally to a class or classes of individuals or specifically to a particular
individual or particular individuals) as the Board in its discretion determines desirable,
including, without limitation, the granting of stock options otherwise than under the Plan.

19

 

     18.3 Captions.

          The use of captions in this Plan or any Award Agreement is for the convenience of reference
only and shall not affect the meaning of any provision of the Plan or such Award Agreement.

     18.4 Other Award Agreement Provisions.

          Each Grant awarded under the Plan may contain such other terms and conditions not
inconsistent with the Plan as may be determined by the Board, in its sole discretion.

     18.5 Number and Gender.

          With respect to words used in this Plan, the singular form shall include the plural
form, the masculine gender shall include the feminine gender, etc., as the context requires.

     18.6 Severability.

          If any provision of the Plan or any Award Agreement shall be determined to be illegal or
unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof
shall be severable and enforceable in accordance with their terms, and all provisions shall remain
enforceable in any other jurisdiction.

     18.7 Pooling.

          In the event any provision of the Plan or an Award Agreement would prevent the use of pooling
of interests accounting in a corporate transaction involving the Company or its Affiliates and such
transaction is contingent upon pooling of interests accounting, then that provision shall be deemed
amended or revoked to the extent required to preserve such pooling of interests. The Company may
require in an Award Agreement that a Grantee who receives a Grant under the Plan shall, upon advice
from the Company, take (or refrain from taking, as appropriate) all actions necessary or desirable
to ensure that pooling of interests accounting is available.

     18.8 Governing Law.

          The validity and construction of this Plan and the instruments evidencing the Grants awarded
hereunder shall be governed by the laws of the State of Georgia other than any conflicts or choice
of law rule or principle that might otherwise refer construction or interpretation of this Plan
and the instruments evidencing the Grants awarded hereunder to the substantive laws of any other
jurisdiction.

19. EXECUTION

     To record adoption of the Plan by the Board as of August 23, 2006, and approval of the
Plan by the shareholders as of August 23, 2006, the Company has caused its authorized officer to
execute the Plan.

20

 

	 	 	 	 	 	 	 
	 	 	TENSAR HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip D. Egan
 

	 	 
	 

	 	Name:
	 	Philip D. Egan	 	 
	 

	 	Title:
	 	President & Chief Executive Officer	 	 

21EX-10.2 FORM OF 2005 STOCK INCENTIVE PLAN

 

Exhibit 10.2

Option No.: NQ-     

TENSAR HOLDINGS, INC.

2005 STOCK INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

     Tensar Holdings Inc., a Delaware corporation (the “Company”), hereby grants an option to
purchase shares of its Common Stock, par value $.01 per share (the “Common Stock”), to the optionee
named below, subject to the vesting and other terms and conditions set forth in the attached
Agreement and in the Company’s 2005 Stock Incentive Plan (the “Plan”). Capitalized terms used
herein which are defined in the Plan shall have the meanings set forth in the Plan, unless
otherwise defined herein.

Grant Date:                                         

Name of Optionee:                                         

Optionee’s Social Security Number:                                         

Number of Shares of Common Stock Covered by Option:                                         

Option Price per Share of Common Stock:                                         

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also attached. You acknowledge that you have
carefully reviewed the Plan, and agree that this Agreement will control in the event any provision
of the Plan is inconsistent herewith.

	 	 	 	 	 
	Optionee:
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	Company:
	 	 	 	 
	 

	 	 

Philip D. Egan

President & CEO
	 	 

Attachment

This is not a stock certificate or a negotiable instrument

 

 

TENSAR HOLDINGS INC.

2005 STOCK INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

	 	 	 	 	 
	Nonqualified Stock 

Option	 	This option is not intended to be an incentive stock option under
Section 422 of the Internal Revenue Code and will be interpreted
accordingly.
	 
	 	 	 	 
	Vesting	 	25% of the total number of shares covered by this grant as shown
on the cover sheet shall vest upon each of the first, second, third
and fourth anniversary dates of the Grant Date, provided you are
then still in Service. Vesting in any remaining shares shall
terminate, and your rights in any such unvested shares shall expire,
immediately upon the date of your termination of Service for any
reason. This option may be exercised, in whole or in part, to
purchase a whole number of shares of not less than 100 shares of
Common Stock, unless the number of shares purchased is the total
number available for purchase under the option, by following the
procedures set forth in the Plan and below in this Agreement, and
in the Plan.
	 
	 	 	 	 
	Term	 	Your option will expire in any event at the close of business at
Company headquarters on the day before the tenth (10th)
anniversary of the Grant Date, as shown on the cover sheet.
Notwithstanding the foregoing, in the event your Service terminates
for Cause, then you shall immediately forfeit all rights to your
option and the option shall immediately expire.
	 
	 	 	 	 
	Leaves of Absence	 	For purposes of this option, your Service does not terminate when
you go on a bona fide employee leave of absence that was approved
by the Company in writing, if the terms of the leave provide for
continued Service crediting, or when continued Service crediting is
required by applicable law. However, your Service will be treated
as terminating 90 days after you went on employee leave, unless
your right to return to active work is guaranteed by law or by a
contract. Your Service terminates in any event when the approved
leave ends unless you immediately return to active employee work.
The Company determines, in its sole discretion, which leaves count
for this purpose, and when your Service terminates for all purposes
under the Plan
	 
	 	 	 	 
	Notice of Exercise	 	When you wish to exercise this option, you must notify the
Company by filing the proper “Notice of Exercise” form at the
address given on the form. Your notice must specify how many
shares you wish to purchase. Your notice must also specify how
your shares of Common Stock should be registered (in your name

2

 

	 	 	 	 	 
	 	 	only or in your and your spouse’s names as joint tenants with right
of survivorship). The notice will be effective when it is received by
the Company.
	 
	 	 	If someone else wants to exercise this option after your death, that
person must prove to the Company’s satisfaction that he or she is
entitled to do so.
	 
	 	 	 	 
	Form of Payment	 	When you submit your notice of exercise, you must include
payment of the Option Price for the shares you are purchasing.
Payment may be made in one (or a combination) of the following
forms:
	 
	 	 	 	 
	 

	 	•
	 	Cash, a cashier’s check, a money order, or such other form of
consideration as is acceptable to the Company in its sole
discretion.
	 
	 	 	 	 
	 

	 	•
	 	To the extent a public market for the Common Stock exists, as
determined by the Company, by delivery (on a form prescribed
by the Company) of an irrevocable direction to a licensed
securities broker acceptable to the Company to sell Common
Stock and to deliver all or part of the sale proceeds to the
Company in payment of the aggregate Option Price and any
withholding taxes.
	 
	 	 	 	 
	Withholding Taxes	 	You will not be allowed to exercise this option unless you make
acceptable arrangements to pay any withholding or other taxes that
may be due as a result of the option exercise or the sale of Common
Stock acquired under this option. In the event that the Company
determines that any federal, state, local or foreign tax or
withholding payment is required relating to the exercise or sale of
shares arising from this grant, the Company shall have the right to
require such payments from you, or withhold such amounts from
other payments due to you from the Company or any Affiliate.
	 
	 	 	 	 
	Tax Spread Payment	 	In connection with your exercise of options under this Agreement,
and provided the Company is in compliance with its covenants and
other loan obligations to its lenders at the time, the Company shall
pay you in a lump sum cash payment, within five (5) calendar days
of such exercise, an amount equal to the product of (1) the
difference between your individual federal tax rate in effect at the
time of exercise (including your Medicare tax obligation) and the
long-term federal capital gains tax rate in effect at the time of
exercise and (2) the difference between the Fair Market Value of
the applicable shares of Common Stock and the aggregate per share
Option Price per share for the Common Stock (the “Tax Spread”),
which Tax Spread payment shall be grossed up for applicable

3

 

	 	 	 	 	 
	 	 	federal (including your Medicare tax
obligation) and state personal income taxes so
that you net, after such taxes, an amount equal
to the Tax Spread. Any such payment to you
hereunder shall be supported by accurate and
complete documentation provided to and approved
by the Company’s Chief Financial Officer (which
documentation may include, if requested, a copy
of your state and federal income tax return).

	 
	 	 	 	 
	 	 	
If your Service terminates for reasons other
than Cause or your voluntary resignation, you
will be entitled to a Tax Spread payment as and
when provided above. If your Service terminates
for Cause or as a result of your voluntary
resignation, then (i) you immediately forfeit
your right to the Tax Spread payment, and (ii)
if you have been provided any Tax Spread
payment(s) hereunder within 180 days of such
termination for Cause or voluntary resignation,
then you shall be required to reimburse the
Company within 30 days of such termination (or
the Company may deduct, and you hereby
authorize such deduction) the full amount of
such payment(s) made to you.
	 
	 	 	 	 
	Transfer of Option	 	During your lifetime, only you (or, in the
event of your legal incapacity or incompetency,
your guardian or legal representative) may
exercise the option. You cannot transfer or
assign this option. For instance, you cannot
sell this option or use it as security for a
loan. If you attempt to do any of these things,
this option will immediately become invalid.
You may, however, dispose of this option in
your will or it may be transferred upon your
death by the laws of descent and distribution.

	 
	 	 	 	 
	 	 	
Regardless of any marital property settlement
agreement, the Company is not obligated to
honor a notice of exercise from your spouse,
nor is the Company obligated to recognize your
spouse’s interest in your option in any other
way.
	 
	 	 	 	 
	Market Stand-off 

Agreement	 	In connection with any underwritten public
offering by the Company of its equity
securities pursuant to an effective
registration statement filed under the
Securities Act of 1933 (the “Securities Act”),
including the Company’s initial public
offering, you agree not to sell, make any short
sale of, loan, hypothecate, pledge, grant any
option for the purchase of, or otherwise
dispose or transfer for value or agree to
engage in any of the foregoing transactions
with respect to any shares of Common Stock
without the prior written consent of the
Company or its underwriters, for such period of
time after the effective date of such
registration statement as may be requested by
the Company or the underwriters.

4

 

	 	 	 	 	 
	Investment 

Representation	 	If the sale of Common Stock under the
Plan is not registered under the
Securities Act, but an exemption is
available which requires an
investment or other representation,
you shall represent and agree at the
time of exercise that the Common
Stock being acquired upon exercise of
this option is being acquired for
investment, and not with a view to
the sale or distribution thereof, and
shall make such other representations
as are deemed necessary or
appropriate by the Company and its
counsel.
	 
	 	 	 	 
	The Company’s Right
of 
First Refusal	 	In the event that you propose to
sell, pledge or otherwise transfer to
a third party any Common Stock
acquired as a result of the exercise
of the option granted under this
Agreement, or any interest in such
Common Stock, the Company shall have
a “Right of First Refusal” with
respect to all (and not less than
all) of such shares of Common Stock.
If you desire to transfer Common
Stock so acquired under this
Agreement, you must give a written
“Transfer Notice” to the Company
describing fully the proposed
transfer, including the number of
shares proposed to be transferred,
the proposed transfer price and the
name and address of the proposed
transferee.
	 
	 	 	 	 
	 	 	The Transfer Notice shall be signed
both by you and by the proposed new
transferee and must constitute a
binding commitment of both parties to
the transfer of the shares. The
Company shall have the right to
purchase all, and not less than all,
of the shares of Common Stock on the
terms of the proposal described in
the Transfer Notice (subject,
however, to any change in such terms
permitted in the next paragraph) by
delivery of a notice of exercise of
the Right of First Refusal within
thirty (30) days after the date when
the Transfer Notice was received by
the Company.
	 
	 	 	 	 
	 	 	If the Company fails to exercise its
Right of First Refusal within thirty
(30) days after the date when it
received the Transfer Notice, you
may, not later than ninety (90) days
following receipt of the Transfer
Notice by the Company, conclude a
transfer of the Common Stock that is
the subject of the Transfer Notice on
the terms and conditions described in
the Transfer Notice. Any proposed
transfer on terms and conditions
different from those described in the
Transfer Notice, as well as any
subsequent proposed transfer by you,
shall again be subject to the Right
of First Refusal and shall require
compliance with the procedure
described in the paragraph above. If
the Company exercises its Right of
First Refusal, the parties shall
consummate the sale of the Common
Stock on the terms set forth in the
Transfer Notice within 60 days after
the date when the Company received
the Transfer Notice (or within such
longer period as may have been
specified in the Transfer Notice);
provided, however, that in the event
the Transfer Notice provided that
payment for the Common Stock was to
be

5

 

	 	 	 	 	 
	 	 	made in a form other than lawful money paid at the time of transfer,
the Company shall have the option of paying for the Common
Stock with lawful money equal to the present value of the
consideration described in the Transfer Notice.
	 
	 	 	 	 
	 	 	In the case of any purchase of Common Stock under this Right of
First Refusal, at the option of the Company, the Company may pay
you the purchase price in four or fewer annual installments.
Interest shall be credited on the installments at the prime rate as
reported in the Wall Street Journal on the date on which the
purchase is made. The Company shall pay at least one-fourth of
the total purchase price each year, plus interest on the unpaid
balance, with the first payment being made on or before the 60th
day after the purchase.
	 
	 	 	 	 
	 	 	The Company’s rights under this subsection shall be freely
assignable, in whole or in part, shall inure to the benefit of its
successors and assigns, and shall be binding upon any transferee of
the shares of Common Stock.
	 
	 	 	 	 
	 	 	The Company’s Right of First Refusal shall terminate in the event
that the Common Stock is listed on an established national or
regional stock exchange, is admitted for quotation on The Nasdaq
Stock Market, Inc., or is publicly traded in an established securities
market.
	 
	 	 	 	 
	Company Repurchase 

Rights	 	In the event that your Service terminates for any reason, the
Company may, for a period up to two years after such termination,
or shall, as hereafter provided, repurchase all or part of the shares
of Common Stock acquired by you as a result of the exercise of
vested options hereunder (“Option Stock”) and also any vested
unexercised options hereunder (“Vested Options”) as follows:
	 
	 	 	 	 
	 

	 	•
	 	If you are terminated by the Company for Cause, the Company
will repurchase all of your Option Stock at the same Option
Price that you originally paid for such shares at the time of
exercise. You will forfeit your Vested Options and unvested
options.
	 
	 	 	 	 
	 

	 	•
	 	If you voluntarily terminate your Service, or your Service
terminates due to your death or Disability (as defined below), or
you are terminated by the Company without Cause, the
Company has the option to repurchase all or part of your Option
Stock and Vested Options at their Fair Market Value (less the
Option Price per share in the case of your Vested Options) at
the end of the quarter prior to the date of such repurchase. Your

6

 

	 	 	 	 	 
	 

	 	 	 	unvested options will be forfeited.
	 
	 	 	 	 
	 	 	Payment for the repurchase of Option Stock and Vested Options by
the Company will be in the form of cash or, at the Company’s
option, in the form of a promissory note (“Note”), and a pledge of
the repurchased shares (including the shares represented by the
repurchased Vested Options) will be given to you as collateral for
the Note. Payments of principal and interest on the Note will be
made over 48 months, with interest on the principal amount of the
Note computed at the prime rate as reported in the Wall Street
Journal on the date the Note is issued. Such Note shall be paid in
full immediately prior to a Change of Control. All repurchases of
Option Stock and Vested Options will be subject to the Company’s
lenders’ loan restrictions that limit all employee stock repurchase
payments.
	 
	 	 	 	 
	 	 	For purposes of this Agreement, “Disability” means you are unable
to perform substantially all of your principal duties on behalf of the
Company and by reason thereof either you or the Company elects
to terminate your employment with the Company. The Company
and you agree and covenant to interpret this definition of Disability
consistently with the requirements of the Americans with
Disabilities Act, the Family and Medical Leave Act and any
applicable state law.
	 
	 	 	 	 
	Retention Rights	 	Neither your option nor this Agreement gives you the right to be
retained by the Company (or any parent, Subsidiaries or Affiliates)
in any capacity. The Company (and any parent, Subsidiaries or
Affiliates) reserves the right to terminate your Service at any time
and for any reason.
	 
	 	 	 	 
	Shareholder Rights	 	You, or your estate or heirs, have no rights as a shareholder of the
Company until a certificate for shares exercised under this option
has been issued (or an appropriate book entry has been made). No
adjustments are made for dividends or other rights if the applicable
record date occurs before your stock certificate is issued (or an
appropriate book entry has been made), except as otherwise
described in the Plan or this Agreement.
	 
	 	 	 	 
	Adjustments	 	In the event of a stock split, a stock dividend or a similar change in
the Common Stock, the number of shares covered by this option
and the Option Price per share may be adjusted (and rounded down
to the nearest whole number) pursuant to the Plan. Your option
shall be subject to the terms of any agreement of merger,
liquidation or reorganization, or the like, in the event the Company
is subject to such corporate activity.

7

 

	 	 	 	 	 
	Legends	 	All certificates representing the Common Stock issued upon
exercise of this option shall, where applicable, have endorsed
thereon a legend which shall be substantially as follows:

	 
	 	 	 	 
	 	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE, AND MAY NOT BE OFFERED, SOLD OR
TRANSFERRED UNLESS THEY HAVE BEEN REGISTERED
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION
IS AVAILABLE.
	 
	 	 	 	 
	 	 	THE TRANSFER, ENCUMBRANCE, PLEDGE, ASSIGNMENT
OR OTHER DISPOSITION OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE
CONDITIONS AND RESTRICTIONS SPECIFIED IN (1) AN
AGREEMENT BY AND BETWEEN THE COMPANY AND
THE REGISTERED HOLDER, OR HIS OR HER
PREDECESSOR IN INTEREST, AND (2) A SHAREHOLDERS’
AGREEMENT, DATED AS OF OCTOBER 31, 2005, BY AND
AMONG THE COMPANY AND CERTAIN SHAREHOLDERS.
A COPY OF THE AGREEMENTS REFERENCED ABOVE
MAY BE OBTAINED BY THE HOLDER HEREOF UPON
WRITTEN REQUEST TO THE SECRETARY OF THE
COMPANY.”
	 
	 	 	 	 
	Applicable Law	 	This Agreement will be interpreted and enforced under the laws of
the State of Georgia, other than any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation
of this Agreement to the substantive law of another jurisdiction.
	 
	 	 	 	 
	The Plan	 	The text of the Plan is incorporated in this Agreement by reference.
Certain capitalized terms used in this Agreement are defined in the
Plan, and have the meaning set forth in the Plan.

	 
	 	 	 	 
	 	 	
This Agreement (including the cover sheet) and the Plan constitute
the entire understanding between you and the Company regarding
this option. Any prior agreements, commitments or negotiations
concerning this option are superseded. In the event that any
provision in this Agreement conflicts with a provision in the Plan,
then the provision in this Agreement shall control.
	 
	 	 	 	 
	Other Agreements	 	You agree, as a condition of the grant of this option, that in
connection with the exercise of the option, you will execute such
document(s) as necessary to become a party to any shareholder
agreement, registration rights agreement or other agreement as the

8

 

Company may require.

By signing the cover sheet of this Agreement, you agree to all of the terms and

conditions described above and in the Plan.

9

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