Document:

2003 Equity Incentive Plan

 
Exhibit 10.12

 
 
 
 
 
 
 
 
Factory Card & Party Outlet Corp. 
 
2003 Equity Incentive Plan 

 
Table of
Contents 
 

	 	  	 	  	 Page

	 Article 1.
	  	 Effective Date, Objectives and Duration
	  	 1

	 1.1  
	  	 Effective Date of the Plan
	  	 1

	 1.2  
	  	 Objectives of the Plan
	  	 1

	 1.3  
	  	 Duration of the Plan
	  	 1

	
	 Article 2.
	  	 Definitions
	  	 1

	 2.1  
	  	 “Affiliate”
	  	 1

	 2.2  
	  	 “Award”
	  	 1

	 2.3  
	  	 “Award Agreement”
	  	 1

	 2.4  
	  	 “Change of Control”
	  	 2

	 2.5  
	  	 “Code”
	  	 2

	 2.6  
	  	 “Committee”
	  	 2

	 2.7  
	  	 “Common Stock”
	  	 2

	 2.8  
	  	 “Covered Employee”
	  	 2

	 2.9  
	  	 “Deferred Stock”
	  	 2

	 2.10
	  	 “Disability”
	  	 2

	 2.11
	  	 “Dividend Equivalent”
	  	 2

	 2.12
	  	 “Eligible Person”
	  	 2

	 2.13
	  	 “Exchange Act”
	  	 2

	 2.14
	  	 “Fair Market Value”
	  	 2

	 2.15
	  	 “Grant Date”
	  	 3

	 2.16
	  	 “Grantee”
	  	 3

	 2.17
	  	 “Incentive Stock Option” or “ISO”
	  	 3

	 2.18
	  	 “including” or “includes”
	  	 3

	 2.19
	  	 “Limited Right”
	  	 3

	 2.20
	  	 “Mature Shares”
	  	 3

	 2.21
	  	 “Nonstatutory Stock Option” or “NSO”
	  	 3

	 2.22
	  	 “Option”
	  	 3

	 2.23
	  	 “Option Price”
	  	 3

	 2.24
	  	 “Option Term”
	  	 3

	 2.25
	  	 “Other Stock-Based Award”
	  	 3

	 2.26
	  	 “Performance Award”
	  	 3

	 2.27
	  	 “Performance-Based Exception”
	  	 3

	 2.28
	  	 “Performance Measures”
	  	 3

	 2.29
	  	 “Performance Period”
	  	 3

	 2.30
	  	 “Performance Share”
	  	 4

	 2.31
	  	 “Performance Unit”
	  	 4

	 2.32
	  	 “Period of Restriction”
	  	 4

	 2.33
	  	 “Permitted Transferee”
	  	 4

	 2.34
	  	 “Person”
	  	 4

	 2.35
	  	 “Reload Option”
	  	 4

	 2.36
	  	 “Restricted Shares”
	  	 4

 

	 2.37
	  	 “Retirement”
	  	 4

	 2.38
	  	 “Rule 16b-3”
	  	 4

	 2.39
	  	 “SEC”
	  	 4

	 2.40
	  	 “Section 16 Non-Employee Director”
	  	 5

	 2.41
	  	 “Section 16 Person”
	  	 5

	 2.42
	  	 “Share”
	  	 5

	 2.43
	  	 “Stock Appreciation Right” or “SAR”
	  	 5

	 2.44
	  	 “Termination of Employment”
	  	 5

	
	 Article 3.
	  	 Administration
	  	 5

	 3.1  
	  	 Committee
	  	 5

	 3.2  
	  	 Powers of Committee
	  	 6

	
	 Article 4.
	  	 Shares Subject to the Plan, Maximum Awards, and 162(m) Compliance
	  	 8

	 4.1  
	  	 Number of Shares Available for Grants
	  	 8

	 4.2  
	  	 Adjustments in Authorized Shares and Awards
	  	 8

	 4.3  
	  	 Annual Individual Limitations
	  	 8

	 4.4  
	  	 Performance-Based Exception Under Section 162(m)
	  	 9

	
	 Article 5.
	  	 Eligibility and General Conditions of Awards
	  	 11

	 5.1  
	  	 Eligibility
	  	 11

	 5.2  
	  	 Award Agreement
	  	 11

	 5.3  
	  	 General Terms and Consideration
	  	 11

	 5.4  
	  	 Termination of Employment
	  	 11

	 5.5  
	  	 Nontransferability of Awards
	  	 12

	 5.6  
	  	 Cancellation and Rescission of Awards
	  	 13

	 5.7  
	  	 Stand-Alone, Tandem and Substitute Awards
	  	 14

	 5.8  
	  	 Compliance with Rule 16b-3
	  	 14

	 5.9  
	  	 Deferral of Award Payouts
	  	 15

	
	 Article 6.
	  	 Stock Options
	  	 15

	 6.1  
	  	 Grant of Options
	  	 15

	 6.2  
	  	 Award Agreement
	  	 15

	 6.3  
	  	 Option Price
	  	 15

	 6.4  
	  	 Grant of Incentive Stock Options
	  	 15

	 6.5  
	  	 Payment
	  	 17

	 6.6  
	  	 Reload Options
	  	 17

	
	 Article 7.
	  	 Stock Appreciation Rights
	  	 18

	 7.1  
	  	 Issuance
	  	 18

	 7.2  
	  	 Award Agreements
	  	 18

	 7.3  
	  	 Grant Price
	  	 18

	 7.4  
	  	 Exercise and Payment
	  	 18

	 7.5  
	  	 Grant of Limited Rights
	  	 19

	 7.6  
	  	 Other Limitations
	  	 19

 

ii 

 

	 Article 8.
	  	 Restricted Shares
	  	 20

	   8.1
	  	 Grant of Restricted Shares
	  	 20

	   8.2
	  	 Award Agreement
	  	 20

	   8.3
	  	 Consideration for Restricted Shares
	  	 20

	   8.4
	  	 Voting and Dividend Rights
	  	 20

	   8.5
	  	 Effect of Forfeiture
	  	 20

	   8.6
	  	 Escrow; Legends
	  	 20

	
	 Article 9.
	  	 Performance Awards
	  	 21

	   9.1
	  	 Grant of Performance Awards
	  	 21

	   9.2
	  	 Value/Performance Goals
	  	 21

	   9.3
	  	 Earning of Performance Awards
	  	 21

	   9.4
	  	 Adjustment on Change of Position
	  	 21

	   9.5
	  	 Voting and Dividend Rights
	  	 21

	
	 Article 10.
	  	 Deferred Stock
	  	 22

	 10.1
	  	 Grant of Deferred Stock
	  	 22

	 10.2
	  	 Delivery and Limitations
	  	 22

	 10.3
	  	 Forfeiture
	  	 22

	
	 Article 11.
	  	 Dividend Equivalents
	  	 22

	
	 Article 12.
	  	 Other Stock-Based Awards
	  	 22

	
	 Article 13.
	  	 Withholding
	  	 23

	 13.1
	  	 Required Withholding
	  	 23

	 13.2
	  	 Elective Excess Withholding
	  	 23

	 13.3
	  	 Notification under Code Section 83(b)
	  	 23

	
	 Article 14.
	  	 Change of Control
	  	 24

	 14.1
	  	 Effect of Change of Control
	  	 24

	 14.2
	  	 Definition of Change of Control
	  	 24

	
	 Article 15.
	  	 Amendment, Modification, and Termination
	  	 25

	 15.1
	  	 Amendment, Modification, and Termination
	  	 25

	 15.2
	  	 Awards Previously Granted
	  	 25

	
	 Article 16.
	  	 Additional Provisions
	  	 25

	 16.1
	  	 Successors
	  	 25

	 16.2
	  	 Gender and Number
	  	 25

	 16.3
	  	 Severability
	  	 26

	 16.4
	  	 Requirements of Law
	  	 26

	 16.5
	  	 Securities Law Compliance
	  	 26

	 16.6
	  	 No Rights as a Stockholder
	  	 26

	 16.7
	  	 Nature of Payments
	  	 27

	 16.8
	  	 Non-Exclusivity of Plan
	  	 27

 

iii 

	 16.9
	  	 Governing Law
	  	 27

	 16.10
	  	 Share Certificates
	  	 27

	 16.11
	  	 Unfunded Status of Awards; Creation of Trusts
	  	 27

	 16.12
	  	 Affiliation
	  	 28

	 16.13
	  	 Participation
	  	 28

	 16.14
	  	 Military Service
	  	 28

	 16.15
	  	 Construction
	  	 28

	 16.16
	  	 Headings
	  	 28

	 16.17
	  	 Obligations
	  	 28

	 16.18
	  	 Stockholder Approval
	  	 28

 
 

iv 

 
FACTORY CARD
& PARTY OUTLET CORP. 
2003 EQUITY INCENTIVE PLAN 
 
Article I. 
Effective Date, Objectives and Duration 
 
1.1    Effective Date of the Plan.    Factory Card & Party Outlet Corp., a Delaware corporation (the “Company”), hereby establishes this
Factory Card & Party Outlet Corp. 2003 Equity Incentive Plan (the “Plan”) as set forth herein effective as of January 27, 2003 (the “Effective Date”), the date of its adoption by the Board of Directors (the “Board”)
of the Company, subject to approval by the Company’s stockholders. 
 
1.2    Objectives of the Plan.    The Plan is intended (i) to allow selected employees and officers of the Company and its Affiliates to acquire or increase equity ownership in
the Company, thereby strengthening their commitment to the success of the Company and stimulating their efforts on behalf of the Company, (ii) assisting the Company and its Affiliates in attracting and retaining employees and officers, (iii) to
optimize the profitability and growth of the Company and its Affiliates through incentives which will promote the Company’s goals, and (iv) to provide employees and officers with an incentive for excellence in individual performance.

 
1.3    Duration of the
Plan.    The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board of Directors of the Company (“Board”) to amend or terminate the Plan at any time pursuant to
Article 15 hereof, until the earlier of (i) January 27, 2013, or (ii) the date all Shares subject to the Plan shall have been purchased or acquired and the restrictions on all Restricted Shares granted under the Plan shall have lapsed, according to
the Plan’s provisions. 
 
Article II.

Definitions 
 
Whenever used in the Plan, the following terms shall have the meanings set forth below: 
 
2.1    “Affiliate” means
any Person that directly or indirectly, through one or more intermediaries, controls, or is controlled by or is under common control with the Company. 
 
2.2    “Award” means Options (including Nonstatutory Stock Options, Incentive Stock Options and
Reload Options), Stock Appreciation Rights, Restricted Shares, Performance Units, Performance Shares, Deferred Stock, Dividend Equivalents, or Other Stock-Based Awards granted under the Plan. 
 
2.3    “Award Agreement”
means the written agreement by which an Award shall be evidenced. 
 
2.4    “Change of Control” has the meaning set forth in Section 14.2. 
 
2.5    “Code” means the Internal Revenue Code of 1986, as amended from time to time. References to a
particular section of the Code include references to regulations and rulings thereunder and to successor provisions. 
 
2.6    “Committee” has the meaning set forth in Section 3.1. 
 
2.7    “Common Stock”
means the common stock of the Company. 

 
2.8    “Covered Employee” means a Grantee who, as of the date that the value of an Award is recognizable as income, is one of the group of “covered employees,” within the meaning of Code
Section 162(m), with respect to the Company. 
 
2.9    “Deferred Stock” means a right granted under Section 10.1 to receive Shares at the end of a specified deferral period. 
 
2.10    “Disability” means, unless otherwise defined in an Award
Agreement, or as otherwise determined under procedures established by the Committee for purposes of the Plan, a disability within the meaning of Section 22(e)(3) of the Code. 
 
2.11    “Dividend Equivalent” means a right to receive payments equal to
interest or dividends or property, if and when paid or distributed, on a specified number of Shares. 
 
2.12    “Eligible Person” means any employee (including any officer) of the Company or any Affiliate,
or potential employee (including a potential officer) of the Company or an Affiliate. 
 
2.13    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. References to a particular section of the Exchange Act include
references to successor provisions. 
 
2.14    “Fair Market Value” means (a) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from
time to time by the Committee, and (b) with respect to Shares, unless otherwise determined in the good faith discretion of the Committee, as of any date, (i) the closing price on the date of determination reported in the table entitled “New
York Stock Exchange Composite Transactions” contained in The Wall Street Journal (or an equivalent successor table) (or, if no sale of Shares was reported for such date, on the most recent trading day prior to such date on which a sale
of Shares was reported); (ii) if the Shares are not listed on the New York Stock Exchange, the closing sales price of the Shares on such other national exchange on which the Shares are principally traded, or as reported by the National Market
System, or similar organization, or if no such quotations are available, the average of the high bid and low asked quotations in the over-the-counter market as reported by the National Quotation Bureau Incorporated, Pink Sheets LLC, NASD Bulletin
Board, or similar organizations; or (iii) in the event that there shall be no public market for the Shares, the fair market value of the Shares as determined (which determination shall be conclusive) in good faith by the Committee. 
 
2.15    “Grant Date”
means the date on which an Award is granted or such later date as specified in advance by the Committee. 
 
2.16    “Grantee” means a person who has been granted an Award. 
 
2.17    “Incentive Stock
Option” or “ISO” means an Option that is intended to meet the requirements of Section 422 of the Code. 
 
2.18    “including” or “includes” means “including, without limitation,”
or “includes, without limitation,” respectively. 
 
2.19    “Limited Right” means an SAR that is exercisable only for a limited period after a Change of Control as provided in Section 7.5. 
 
2.20    “Mature Shares”
means Shares for which the holder thereof has good title, free and clear of all liens and encumbrances, and which such holder either (i) has held for at least six months or (ii) has purchased on the open market. 
 

2 

 
2.21    “Nonstatutory Stock Option” or “NSO” means an Option that is not intended to meet the requirements of Section 422 of the Code. 
 
2.22    “Option” means a
right granted to an Eligible Person allowing the Grantee to purchase Shares at such price or prices and during such period or periods as the Committee shall determine. 
 
 
2.23    “Option Price” means the per-share purchase price of a Share subject to an Option. 
 
2.24    “Option Term” means the period beginning on the Grant Date of an Option and ending on the
date such Option expires, terminates or is cancelled. 
 
2.25    “Other Stock-Based Award” means a right, granted under Article 12 hereof, that relates to or is valued by reference to Shares or other Awards relating to Shares. 
 
2.26    “Performance
Award” means any Award of Performance Shares or Performance Units. 
 
2.27    “Performance-Based Exception” means the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code contained in
Section 162(m)(4)(C) of the Code (including the special provisions for options thereunder). 
 
2.28    “Performance Measures” has the meaning set forth in Section 4.4. 
 
2.29    “Performance Period” means the time established by the Committee at the time any Performance
Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award are to be measured. 
 
2.30    “Performance Share” means a grant pursuant to Article 9 of a unit valued by reference to a
designated number of Shares, which value may be paid to the Grantee by delivery of such property as the Committee shall determine, including cash, Shares, or any combination thereof, upon achievement of such performance goals during the Performance
Period as the Committee shall establish at the time of such grant or thereafter. 
 
2.31    “Performance Unit” means a grant pursuant to Article 9 of a unit valued by reference to a designated amount of property other than Shares, which value may
be paid to the Grantee by delivery of such property as the Committee shall determine, including cash, Shares, or any combination thereof, upon achievement of such performance goals during the Performance Period as the Committee shall establish at
the time of such grant or thereafter. 
 
2.32    “Period of Restriction” means the period during which Restricted Shares are subject to forfeiture if the conditions specified in the Award Agreement are not satisfied. 
 
2.33    “Permitted
Transferee” means, in respect of any Grantee, any member of the Immediate Family of such Grantee, any trust of which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any partnership of which
all of the partners are such Grantee or members of his or her Immediate Family. The “Immediate Family” of a Grantee means the Grantee’s spouse, children, step children, grandchildren, parents, stepparents, siblings, grandparents,
nieces and nephews. 
 
2.34    “Person” means any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization, association, corporation, institution, public
benefit corporation, entity or government instrumentality, division, agency, body or department. 
 
2.35    “Reload Option” has the meaning set forth in Section 6.6. 
 

3 

 
2.36    “Restricted Shares” means Shares that are issued with the restriction that the holder may not sell, transfer, pledge, or assign such Share and with such other restrictions as the
Committee, in its sole discretion, may impose (including any restriction on the right to vote such Share, and the right to receive cash dividends or Dividend Equivalents), which restrictions may lapse separately or in combination at such time or
times, in installments or otherwise, as the Committee may specify. 
 
2.37    “Retirement” means, unless otherwise defined in an Award Agreement, or as otherwise determined under procedures established by the Committee for purposes of the Plan, a
Termination of Employment occurring other than for cause after the date the Grantee (i) has attained age 55 and completed at least 5 years of service with the Company or its Affiliates, or (ii) attained age 63. 
 
2.38    “Rule 16b-3”
means Rule 16b-3 promulgated by the SEC under the Exchange Act, as amended from time to time, together with any successor rule. 
 
2.39    “SEC” means the United States Securities and Exchange Commission, or any successor thereto.

 
2.40    “Section 16
Non-Employee Director” means a member of the Board who satisfies the requirements to qualify as a “non-employee director” under Rule 16b-3. 
 
2.41    “Section 16 Person” means a person who is subject to potential liability under Section 16(b)
of the 1934 Act with respect to transactions involving equity securities of the Company. 
 
2.42    “Share” means a share of Common Stock, and such other securities of the Company as may be substituted or resubstituted for Shares pursuant to Section 4.2
hereof. 
 
2.43    “Stock Appreciation Right” or “SAR” means a right granted to an Eligible Person pursuant to Article 7 to receive, upon exercise by the Grantee, an amount equal to the
number of Shares with respect to which the SAR is granted multiplied by the excess of (i) the Fair Market Value of one Share on the date of exercise or, if the Committee shall so determine in the case of any such right other than one related to any
Incentive Stock Option, at any time during a specified period before the date of exercise, over (ii) the grant price of the right as specified by the Committee. 
 
2.44    “Termination of Employment” occurs on the first day on which an
individual is for any reason no longer providing services to the Company or an Affiliate in the capacity of an employee or officer; or, with respect to an individual who is an employee or officer of an Affiliate, the first day on which such entity
ceases to be an Affiliate (unless immediately thereafter, the individual becomes or remains an employee or officer of the Company or an Affiliate that remains an Affiliate). 
 
Article III. 
Administration 
 
3.1    Committee. 
 
(a)    The Plan shall be administered by the Compensation Committee of the Board. 
 
(b)    The Board may by resolution authorize one or more officers of the Company to do one or both of the following:
(i) designate Eligible Persons who are employees of the Company or of any of its Affiliates, and who are not executive officers and are not (and are not expected to be) Covered Employees and/or are Section 16 Persons at the time any such delegated
authority is exercised, to be recipients of Options or other Awards, and (ii) determine the number of such Shares subject to Options or other Awards to be received by such Eligible Persons and the terms and conditions (consistent with the Plan) of
such Awards; provided, however, that (A) the resolution so authorizing such officer or officers shall specify the total number of such Shares subject to 
 

4 

 
Options or other Awards such
officer or officers may award; and (B) the Committee may not authorize any officer to designate himself or herself as a recipient of any such Award. 
 
(c)    Unless the context requires otherwise, any references herein to “Committee” includes the Compensation
Committee, or an officer authorized pursuant to subsection (b), as applicable. 
 
3.2    Powers of Committee. Subject to and consistent with the provisions of the Plan, the Committee has full and final authority and sole discretion as follows:

 
(a)    to determine when, to
whom and in what types and amounts Awards should be granted; 
 
(b)    to grant Awards to Eligible Persons in any number, and to determine the terms and conditions applicable to each Award (including the number of Shares or the amount of cash or other property to which an
Award will relate, any exercise price, grant price or purchase price, any limitation or restriction, any schedule for or performance conditions relating to the earning of the Award or the lapse of limitations, forfeiture restrictions, restrictions
on exercisability or transferability, any performance goals including those relating to the Company and/or an Affiliate and/or any division thereof and/or an individual, and/or vesting based on the passage of time, based in each case on such
considerations as the Committee shall determine); 
 
(c)    to determine the benefit payable under any Performance Unit, Performance Share, Dividend Equivalent, or Other Stock-Based Award and to determine whether any performance or vesting conditions have been
satisfied; 
 
(d)    to
determine whether or not specific Awards shall be granted in connection with other specific Awards, and if so, whether they shall be exercisable cumulatively with, or alternatively to, such other specific Awards and all other matters to be
determined in connection with an Award; 
 
(e)    to determine the Option Term; 
 
(f)    to determine the amount, if any, that a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash dividends thereon to be deferred and the terms related thereto,
when Restricted Shares (including Restricted Shares acquired upon the exercise of an Option) shall be forfeited and whether such shares shall be held in escrow; 
 
(g)    to determine whether, to what extent and under what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Shares, other Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered or any terms of the Award may be waived, and to accelerate the
exercisability of, and to accelerate or waive any or all of the terms and conditions applicable to, any Award or any group of Awards for any reason and at any time; 
 
(h)    to determine whether, to what extent and under what circumstances cash, Shares,
other Awards, other property and other amounts payable with respect to an Award will be deferred either automatically (whether to limit loss of deductions pursuant to Code Section 162(m) or otherwise), at the election of the Committee or at the
election of the Grantee; 
 
(i)    to offer to exchange or buy out any previously granted Award for a payment in cash, Shares or other Award; 
 
(j)    to construe and interpret the Plan and to make all determinations, including determinations whether a
Grantee’s Termination of Employment occurs for Retirement, death, Disability, cause, or other reason, and all other factual determinations, necessary or advisable for the administration of the Plan; 
 
(k)    to make, amend, suspend, waive and
rescind rules and regulations relating to the Plan; 
 

5 

 
(l)    to appoint such agents as the Committee may deem necessary or advisable to administer the Plan; 
 
(m)    to determine the terms and conditions of all Award Agreements applicable to Eligible Persons (which need not be
identical) and, subject to Section 15.2, to amend any such Award Agreement at any time in any manner permitted by the Plan as then in effect; 
 
(n)    to cancel, with the consent of the Grantee, outstanding Awards and to grant new Awards in substitution
therefor; 
 
(o)    to impose
such additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or concurrently with the grant thereof, deem appropriate, including limiting the percentage of Awards which may from time to time be
exercised by a Grantee; 
 
(p)    to make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events (including events described in Section 4.2) affecting the Company or an
Affiliate or the financial statements of the Company or an Affiliate, or in response to changes in applicable laws, regulations or accounting principles; provided, however, that in no event shall such adjustment increase the value of
an Award for a person expected to be a Covered Employee for whom the Committee desires to have the Performance-Based Exception apply; 
 
(q)    to correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the
Plan, the rules and regulations, and Award Agreement or any other instrument entered into or relating to an Award under the Plan; and 
 
(r)    to take any other action with respect to any matters relating to the Plan for which it is responsible and to
make all other decisions and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan. 
 
Any action of the Committee with respect to the Plan shall be final, conclusive and binding on all persons,
including the Company, its Affiliates, any Grantee, any person claiming any rights under the Plan from or through any Grantee, and stockholders, except to the extent the Committee may subsequently modify, or take further action not consistent with,
its prior action. If not specified in the Plan, the time at which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified by the Committee. The express grant of any
specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Company or any Affiliate the
authority, subject to such terms as the Committee shall determine, to perform specified functions under the Plan (subject to Sections 4.3 and 5.8(c)). 
 
Article IV. 
Shares Subject to the Plan, Maximum Awards, and 162(m) Compliance 
 
4.1    Number of Shares Available for Grants.    Subject to adjustment as provided in Section 4.2, the number of Shares hereby reserved for delivery under
the Plan shall be 250,000 of which 100,000 Shares shall be available for delivery as Restricted Shares or Deferred Stock. If any Shares subject to an Award granted hereunder are forfeited or such Award otherwise terminates without the delivery of
such Shares, the Shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for grant under the Plan. If any Shares subject to an Award granted hereunder are withheld, applied as payment, or sold and
the proceeds thereof applied as payment in connection with the exercise of an Award or the withholding or payment of taxes related thereto (“Returned Shares”), such Returned Shares shall again be available for grant under the Plan. The
Committee shall from time to time determine the appropriate methodology for calculating the number of Shares to which an Award relates pursuant to the Plan. Shares delivered pursuant to the Plan 
 

6 

 
may be, in whole or in part,
authorized and unissued Shares, or treasury Shares, including Shares repurchased by the Company for purposes of the Plan. 
 
4.2    Adjustments in Authorized Shares and Awards.    In the event that the Committee
determines that any dividend or other distribution (whether in the form of cash, Shares, or other property), recapitalization, forward or reverse stock split, subdivision, consolidation or reduction of capital, reorganization, merger, consolidation,
scheme of arrangement, split-up, spin-off or combination involving the Company or repurchase or exchange of Shares or other securities of the Company or other rights to purchase Shares or other securities of the Company, or other similar corporate
transaction or event affects the Shares such that any adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then
the Committee shall, in such manner as it may deem equitable, adjust any or all of (a) the number and type of Shares (or other securities or property) with respect to which Awards may be granted, (b) the number and type of Shares (or other
securities or property) subject to outstanding Awards, (c) the grant or exercise price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award, (d) the number and kind of Shares of
outstanding Restricted Shares or relating to any other outstanding Award in connection with which Shares are subject, and (e) the number of Shares with respect to which Awards may be granted to a Grantee, as set forth in Section 4.3;
provided, in each case, that with respect to Awards of Incentive Stock Options intended to continue to qualify as Incentive Stock Options after such adjustment, no such adjustment shall be authorized to the extent that such adjustment would
cause the Incentive Stock Option to violate Section 424(a) of the Code; and provided further that the number of Shares subject to any Award denominated in Shares shall always be a whole number. 
 
4.3    Annual Individual
Limitations.    Awards to any one individual in any one calendar year are subject to the following limits, subject to adjustment as provided in Section 4.2: 
 
(a)    Options.    The maximum number of Shares with respect
to which Options may be granted during a calendar year to any Grantee is 50,000; 
 
(b)    SARs.    The maximum number of Shares with respect to which SARs may be granted during a calendar year to any Grantee is 50,000; 
 
(c)    Aggregate Options and
SARs.    The sum of the number of Shares with respect to which Options may be granted plus the number of Shares with respect to which SARs may be granted in total during a calendar year to any Grantee shall not exceed
100,000; 
 
(d)    Other
Share-Denominated Awards.    The maximum number of Shares with respect to which Restricted Stock, Performance Shares, and Other Stock-Based Awards denominated in Shares in total may be granted during a calendar year to any
Grantee is 100,000; and 
 
(e)    Dollar-Denominated Awards.    The maximum dollar amount of compensation that may be represented by Performance Units and Other Stock-Based Awards not denominated in Shares awarded
during calendar year to any Grantee is 150% of the Grantee’s annual base salary in effect on the date of the Award multiplied by the number of whole and fractional years in the Performance Period for Performance Units. (Thus, Awards that accrue
over more than one calendar year (or fiscal year) may exceed the on-year grant limit in the prior sentence at the time of payment or settlement). 
 
4.4    Performance-Based Exception Under Section 162(m).    The general performance
measures for Awards (other than Options) designed to qualify for the Performance-Based Exception shall be chosen from among the following: 
 
(a)    Earnings (either in the aggregate or on a per-share basis); 
 

7 

 
(b)    Net income or loss; 
 
(c)    Operating income or loss; 
 
(d)    Operating profit; 
 
(e)    Cash flow; 
 
(f)    Stockholder returns (including return on assets, investments, equity, or gross sales) (including income applicable to common stockholders or other class of stockholders); 
 
(g)    Return measures (including return
on assets, equity, or sales); 
 
(h)    Earnings before or after either, or any combination of, interest, taxes, depreciation or amortization (EBITDA); 
 
(i)    Gross revenues; 
 
(j)    Share price (including growth measures and total stockholder return or attainment by the Shares of a specified
value for a specified period of time); 
 
(k)    Reductions in expense levels in each case, where applicable, determined either on a Company-wide basis or in respect of any one or more business units; 
 
(l)    Net economic value; 
 
(m)    Market share; 
 
(n)    Annual net income to common stock;

 
(o)    Annual cash flow
provided by operations; 
 
(p)    Changes in annual revenues; 
 
(q)    Strategic business criteria, consisting of one or more objectives based on meeting specified revenue, market penetration, geographic business expansion goals, objectively identified project
milestones, production volume levels, cost targets, and goals relating to acquisitions or divestitures; 
 
(r)    Economic value added; 
 
(s)    Sales; 
 
(t)    Costs; 
 
(u)    Results of customer satisfaction surveys; 
 
(v)    Aggregate product price and other product price measures; 
 
(w)    Safety record; 
 
(x)    Service reliability; 
 
(y)    Operating and maintenance cost
management; 
 
(z)    Debt
rating; and/or 
 

8 

 
(aa)    Achievement of business or operational goals such as market share and/or business development; 
 
provided that applicable performance measures may be applied on a pre- or post-tax basis; and provided further that the Committee may, on
the Grant Date of an Award intended to comply with the Performance-Based Exception, and in the case of other Awards at any time, provide that the formula for such Award may include or exclude items to measure specific objectives, such as losses from
discontinued operations, extraordinary gains or losses, the cumulative effect of accounting changes, acquisitions or divestitures, foreign exchange impacts and any unusual, nonrecurring gain or loss. For Awards intended to comply with the
Performance-Based Exception, the Committee shall set the Performance Measures within the time period prescribed by Section 162(m) of the Code. The levels of performance required with respect to Performance Measures may be expressed in absolute or
relative levels and may be based upon a set increase, set positive result, maintenance of the status quo, set decrease or set negative result. Performance Measures may differ for Awards to different Grantees. The Committee shall specify the
weighting (which may be the same or different for multiple objectives) to be given to each performance objective for purposes of determining the final amount payable with respect to any such Award. Any one or more of the Performance Measures may
apply to the Grantee, a department, unit, division or function within the Company or any one or more Affiliates; and may apply either alone or relative to the performance of other businesses or individuals (including industry or general market
indices). 
 
The Committee shall have the
discretion to adjust the determinations of the degree of attainment of the pre-established performance goals; provided, however, that Awards which are designed to qualify for the Performance-Based Exception may not be adjusted upward
(the Committee shall retain the discretion to adjust such Awards downward). The Committee may not delegate any responsibility with respect to Awards intended to qualify for the Performance-Based Exception. All determinations by the Committee as to
the achievement of the Performance Measure(s) shall be in writing prior to payment of the Award. 
 
Article V. 
Eligibility and General Conditions of Awards

 
5.1    Eligibility.    The Committee may in its discretion grant Awards to any Eligible Person, whether or not he or she has previously received an Award. 
 
5.2    Award
Agreement.    To the extent not set forth in the Plan, the terms and conditions of each Award shall be set forth in an Award Agreement. 
 
5.3    General Terms and Consideration.    The Committee may impose on any Award or the
exercise or settlement thereof, at the date of grant or, subject to the provisions of Section 15.2, thereafter, such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine, including terms
requiring forfeiture, acceleration or pro-rata acceleration of Awards in the event of a Termination of Employment by the Grantee. Except as may be required under the Delaware General Corporation Law, Awards may be granted for no consideration other
than prior and future services. 
 
5.4    Termination of Employment.    The Committee may determine and set forth in an Award Agreement the extent to which an Award not vested shall terminate upon a Grantee’s
Termination of Employment. Except as otherwise provided in such Award Agreement, all Awards not vested shall terminate upon a Grantee’s Termination of Employment, except as provided below in this Section. 
 
(a)    Options and SARs.

 
(i)    Except as otherwise provided in an Award Agreement or clause (ii) or (iii) below, upon a Grantee’s Termination of Employment, all Options and SARs not vested and exercisable immediately before such
Termination of Employment shall terminate and no Option or SAR may be exercised after such Termination of Employment. 
 

9 

 
(ii)    If Termination of Employment occurs for a reason other than retirement, death, Disability or cause, Options and SARs which were vested and exercisable immediately before such Termination of Employment
shall remain exercisable for a period of 90 days following such Termination of Employment (but not for more than 10 years from the grant date of the Award or expiration of the Option Term, if earlier) and shall then terminate. 
 
(iii)    If Termination
of Employment occurs by reason of retirement, death or disability, Options and SARs which were vested and exercisable immediately before such Termination of Employment shall remain exercisable for a period of one year following such Termination of
Employment (but not for more than 10 years from the grant date of the Award or expiration of the Option Term, if earlier) and shall then terminate. 
 
(b)    Restricted Shares.    Except as otherwise provided in an Award Agreement, upon a
Grantee’s Termination of Employment, all Restricted Shares still subject to restrictions shall be forfeited by the Grantee (and the Grantee shall sign any document and take any other action required to assign such Shares back to the Company)
and reacquired by the Company. 
 
(c)    Performance Awards.    Except as otherwise provided in an Award Agreement: 
 
(i)    If Termination of Employment occurs during a Performance Period for a reason other than
retirement, disability or death, all Performance Awards shall be forfeited upon such Termination of Employment. 
 
(ii)    If Termination of Employment occurs during a Performance Period by reason of retirement,
disability or death, the Grantee shall be entitled to payment at or after conclusion of the Performance Period in accordance with the terms of the Award of that portion of the Performance Award equal to the amount that would be payable if the
Grantee continued in employment for the remainder of the Performance Period multiplied by a fraction, the numerator of which is the number of days in the Performance Period preceding such Termination of Employment and the denominator of which is the
total number of days in the Performance Period. 
 
5.5    Waiver by Committee.    Notwithstanding the foregoing provisions of this Section, the Committee may in its sole discretion as to all or part of any Award as to any Grantee, at the
time the Award is granted or thereafter, determine that Awards shall become exercisable or vested upon a Termination of Employment, determine that Awards shall continue to become exercisable or vested in full or in installments after Termination of
Employment, extend the period for exercise of Options or SARs following Termination of Employment (but not beyond 10 years from the date of grant of the Option or SAR), or provide that any Performance Award shall in whole or in part not be forfeited
upon such Termination of Employment. 
 
5.6    Nontransferability of Awards. 
 
(a)    Each Award and each right under any Award shall be exercisable only by the Grantee during the Grantee’s lifetime, or, if permissible under applicable law, by the
Grantee’s guardian or legal representative or by a transferee receiving such Award pursuant to a qualified domestic relations order (a “QDRO”) as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974 as
amended, or the rules thereunder. Nothing herein shall be construed as requiring the Committee to honor a QDRO except to the extent required under applicable law. 
 
(b)    No Award (prior to the time, if applicable, unrestricted Shares are delivered in
respect of such Award or Restricted Shares become unrestricted), and no right under any Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Grantee otherwise than by will or by the laws of descent
and distribution (or in the case of Restricted Shares, by transfer to the Company) or pursuant to 
 

10 

a QDRO, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company or any Affiliate. 
 
(c)    Notwithstanding subsections (a) and (b) above, a Grantee may designate a beneficiary (“Beneficiary”) by written instrument filed with the Company in a manner specified by the Committee in the
Award Agreement or in the Committee’s rules and procedures of general application, to exercise an Option or SAR or receive Restricted Shares or Deferred Stock or otherwise receive payment under any Award to the extent exercisable or payable
after the death of the Grantee. 
 
(d)    Notwithstanding subsections (a) and (b) above, a Grantee may transfer a Nonstatutory Stock Option, SAR or Deferred Stock for no consideration to a Permitted Transferee in accordance with rules and subject
to such conditions as may be specified by the Committee in the Award Agreement or in the Committee’s rules or procedures of general application. Following the transfer of a Nonstatutory Stock Option, SAR or Deferred Stock to a Permitted
Transferee, the Permitted Transferee shall have all of the rights and obligations of the Grantee to whom the Award was granted and such Grantee shall not retain any rights with respect to the transferred Award, except that (i) the payment of any tax
attributable to the exercise of the Nonstatutory Stock Option or SAR or receipt of the Deferred Stock shall remain the obligation of the Grantee, (ii) the period during which the Nonstatutory Stock Option or SAR shall become exercisable or remain
exercisable shall depend on the service of the original Grantee and the circumstances of his or her Termination of Employment. A Permitted Transferee may not again transfer an Award to another Permitted Transferee. 
 
(e)    If for any reason an Award is
exercised or Shares are to be delivered or payment is to be made under any Award by or to a person other than the original Grantee, the person exercising or receiving delivery or payment under such Award shall, as a condition to such exercise,
delivery or receipt, supply the Committee with such evidence as the Committee may reasonably require to establish the identity of such person and such person’s right to exercise or receive delivery or payment under such Award. A Permitted
Transferee or other transferee, Beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through any Grantee shall be subject to the provisions of the Plan and any applicable Award Agreement, except to
the extent the Plan and Award Agreement otherwise provide with respect to such persons, and to any additional restrictions or limitations deemed necessary or appropriate by the Committee. 
 
5.7    Cancellation and Rescission of Awards.    Unless the
Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold, or otherwise limit or restrict any unexercised Award at any time if the Grantee is not in compliance with all applicable provisions of the Award Agreement and
the Plan. 
 
5.8    Stand-Alone, Tandem and Substitute Awards. 
 
(a)    Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other Award
granted under the Plan; provided that if the stand-alone, tandem or substitute Award is intended to qualify for the Performance-Based Exception, it must separately satisfy the requirements of the Performance-Based Exception. If an Award is
granted in substitution for another Award or any non-Plan award or benefit, the Committee shall require the surrender of such other Award or non-Plan award or benefit in consideration for the grant of the new Award. Awards granted in addition to or
in tandem with other Awards or non-Plan awards or benefits may be granted either at the same time as or at a different time from the grant of such other Awards or non-Plan awards or benefits. 
 
(b)    The Committee may, in its
discretion and on such terms and conditions as the Committee considers appropriate in the circumstances, grant Awards under the Plan (“Substitute Awards”) in substitution for stock and stock-based awards (“Acquired Entity
Awards”) held immediately prior to such merger, consolidation or acquisition by employees of another corporation or entity who become Eligible Persons as the result of a merger or consolidation of the employing corporation or other entity (the
“Acquired Entity”) with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the Acquired 

 

11 

Entity, in order to preserve for the Grantee the economic value of all or a portion of such Acquired Entity Award, at such price as the
Committee determines necessary to achieve preservation of economic value 
 
5.9    Compliance with Rule 16b-3. 
 
(a)     Six-Month Holding Period Advice.    Unless a Grantee could otherwise dispose of or exercise a derivative security or dispose of Shares delivered
under the Plan without incurring liability under Section 16(b) of the Exchange Act, the Committee may advise or require a Grantee to comply with the following in order to avoid incurring liability under Section 16(b): 
 
(i)    at least six
months must elapse from the date of acquisition of a derivative security under the Plan to the date of disposition of the derivative security (other than upon exercise or conversion) or its underlying equity security, and 
 
(ii)    Shares granted or
awarded under the Plan other than upon exercise or conversion of a derivative security must be held for at least six months from the date of grant of an Award. 
 
(b)    Reformation to Comply with Exchange Act Rules.    To
the extent the Committee determines that a grant or other transaction by a Section 16 Person should comply with applicable provisions of Rule 16b-3 (except for transactions exempted under alternative Exchange Act rules), the Committee shall take
such actions as necessary to make such grant or other transaction so comply, and if any provision of this Plan or any Award Agreement relating to a given Award does not comply with the requirements of Rule 16b-3 as then applicable to any such grant
or transaction, such provision will be construed or deemed amended, if the Committee so determines, to the extent necessary to conform to the then applicable requirements of Rule 16b-3. 
 
(c)    Rule 16b-3 Administration.    Any function relating to
a Section 16 Person shall be performed solely by the Committee or the Board if necessary to ensure compliance with applicable requirements of Rule 16b-3, to the extent the Committee determines that such compliance is desired. Each member of the
Committee or person acting on behalf of the Committee shall be entitled to, in good faith, rely or act upon any report or other information furnished to him by any officer, manager or other employee of the Company or any Affiliate, the
Company’s independent certified public accountants or any executive compensation consultant or attorney or other professional retained by the Company to assist in the administration of the Plan. 
 
5.10    Deferral of Award
Payouts.    The Committee may permit or require a Grantee to defer receipt of the payment of cash or the delivery of Shares that would otherwise be due by virtue of the exercise of an Option, the lapse or waiver of
restrictions with respect to Restricted Shares, the satisfaction of any requirements or goals with respect to Performance Units or Performance Shares, the lapse or waiver of the deferral period for Deferred Stock, or the lapse or waiver of
restrictions with respect to Other Stock-Based Awards. If any such deferral is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. Except as otherwise provided in an Award
Agreement, any payment or any Shares that are subject to such deferral shall be made or delivered to the Grantee upon the Grantee’s Termination of Employment. 
 
Article VI. 
Stock Options 
 
6.1    Grant of Options.    Subject to and consistent with the provisions of the Plan, the Committee may, at any time and from time to time, grant Options to any Eligible Person
in such number, and upon such terms, as shall be determined by the Committee. 
 
6.2    Award Agreement.    Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the Option Term, the number of
Shares to which the Option pertains, the time or times at which such Option shall be exercisable and such other provisions as the Committee shall determine. 

 

12 

 
6.3    Option Price.    The Option Price of an Option under this Plan shall be determined in the sole discretion of the Committee, provided that the Option Price shall not be less
than 100% of the Fair Market Value of a Share on the Grant Date. Subject to the adjustment allowed under Section 4.2, neither the Committee nor the Board shall have the authority or discretion to change the Option Price of any outstanding Option.

 
6.4    Grant of Incentive
Stock Options.    At the time of the grant of any Option, the Committee may in its discretion designate that such Option shall be made subject to additional restrictions to permit it to qualify as an Incentive Stock Option.
Any Option designated as an Incentive Stock Option: 
 
(a)    shall be granted only to an employee of the Company or a Subsidiary Corporation (as defined below); 
 
(b)    shall have an Option Price of not less than 100% of the Fair Market Value of a Share on the Grant Date, and, if
granted to a person who owns capital stock (including stock treated as owned under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of capital stock of the Company or any Subsidiary Corporation
(a “10% Owner”), have an Option Price not less than 110% of the Fair Market Value of a Share on its Grant Date; 
 
(c)    shall be for a period of not more than 10 years (five years if the Grantee is a 10% Owner) from its Grant Date,
and shall be subject to earlier termination as provided herein or in the applicable Award Agreement; 
 
(d)    shall not have an aggregate Fair Market Value (as of the Grant Date) of the Shares with respect to which
Incentive Stock Options (whether granted under the Plan or any other stock option plan of the Grantee’s employer or any parent or Subsidiary Corporation (“Other Plans”)) are exercisable for the first time by such Grantee during any
calendar year (“Current Grant”), determined in accordance with the provisions of Section 422 of the Code, which exceeds $100,000 (the “$100,000 Limit”); 
 
(e)    shall, if the aggregate Fair Market Value of the Shares (determined on the Grant
Date) with respect to the Current Grant and all Incentive Stock Options previously granted under the Plan and any Other Plans which are exercisable for the first time during a calendar year (“Prior Grants”) would exceed the $100,000 Limit,
be, as to the portion in excess of the $100,000 Limit, exercisable as a separate option that is not an Incentive Stock Option at such date or dates as are provided in the Current Grant; 
 
(f)    shall require the Grantee to notify the Committee of any disposition of any Shares
delivered pursuant to the exercise of the Incentive Stock Option under the circumstances described in Section 421(b) of the Code (relating to holding periods and certain disqualifying dispositions) (“Disqualifying Disposition”), within 10
days of such a Disqualifying Disposition; 
 
(g)    shall by its terms not be assignable or transferable other than by will or the laws of descent and distribution and may be exercised, during the Grantee’s lifetime, only by the Grantee; provided,
however, that the Grantee may, to the extent provided in the Plan in any manner specified by the Committee, designate in writing a beneficiary to exercise his or her Incentive Stock Option after the Grantee’s death; and 
 
(h)    shall, if such Option nevertheless
fails to meet the foregoing requirements, or otherwise fails to meet the requirements of Section 422 of the Code for an Incentive Stock Option, be treated for all purposes of this Plan, except as otherwise provided in subsections (d) and (e) above,
as an Option that is not an Incentive Stock Option. 
 
For purposes of this Section 6.4, “Subsidiary Corporation” means a corporation other than the Company in an unbroken chain of corporations beginning with the Company if, at the time of granting the Option, each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the 

 

13 

total combined voting power of all classes of stock in one of the other corporations in such chain. Notwithstanding the foregoing and Section
14.2, the Committee may, without the consent of the Grantee, at any time before the exercise of an Option (whether or not an Incentive Stock Option), take any action necessary to prevent such Option from being treated as an Incentive Stock Option.

 
6.5    Payment.    Except as otherwise provided by the Committee in an Award Agreement, Options shall be exercised by the delivery of a written notice of exercise to the Company, setting
forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares made by any one or more of the following means, subject to the approval of the Committee: 
 
(a)    cash, negotiable personal check or
electronic funds transfer; 
 
(b)    with the approval of the Committee, tender of Mature Shares, valued at their Fair Market Value on the date of exercise; 
 
(c)    with the approval of the Committee, attestation through the submission of
acceptable certification of ownership of Mature Shares valued at their Fair Market Value on the date of exercise; 
 
(d)    with the approval of the Committee, Restricted Shares held by the Grantee for at least six months prior to the
exercise of the Option, each such share valued at the Fair Market Value of a Share on the date of exercise; or 
 
(e)    subject to applicable law, pursuant to procedures previously approved by the Company, through the sale of the
Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable notice of exercise and irrevocable instructions to deliver promptly to the Company the amount of sale or loan proceeds sufficient to
pay for such Shares, together with, if requested by the Company, the amount of federal, state, local or foreign withholding taxes payable by Grantee by reason of such exercise. 
 
The Committee may in its discretion specify that, if any Restricted Shares (“Tendered Restricted Shares”) are used
to pay the Option Price, (x) all the Shares acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise of the Option, or (y) a number of Shares acquired on
exercise of the Option equal to the number of Tendered Restricted Shares shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise of the Option. 
 
6.6    Reload
Options.    In the event a Grantee exercises a Nonstatutory Stock Option (an “Original Option”) and pays the exercise price and/or pays applicable withholding taxes triggered by the exercise of the Original Option
with Mature Shares, the Committee may award to the Grantee a new Nonstatutory Stock Option (a “Reload Option”), on the date the Original Option was exercised, for a number of Shares equal to the number of Shares exchanged by the Grantee to
exercise the Original Option or to pay such withholding taxes; subject to the following: 
 
(a)    No Reload Option shall be granted if the exercise date of the Original Option is (i) within six months of the expiration date of the Original Option, (ii) a date after the
Grantee’s Termination of Employment, or (iii) a date after the Plan has terminated. 
 
(b)    The Reload Option shall be exercisable on the same terms and conditions as the Original Option except that (i) the Reload Option shall become exercisable in full on the day
that is six (6) months after the date the Original Option was exercised; (ii) the exercise price shall be equal to the Fair Market Value of the Common Stock on the date the date the Original Option was exercised, and (iii) the expiration date of the
Reload Option shall be the date of expiration of the Original Option. 
 

14 

 
(c)    The Committee may provide in the Award Agreement for any Nonstatutory Option that a Reload Option will automatically be granted on exercise of such Option in circumstances in which the grant of a Reload
Option is permitted by this Section 6.6. 
 
(d)    Except as provided in subsection (c) the Committee shall issue a new Award Agreement to evidence the Reload Option and such Award Agreement will supersede the Award Agreement for the Original Option in all
respects insofar as the Reload Option is concerned. 
 
(e)    A Grantee is not permitted to reload a Reload Option unless otherwise permitted by the Committee in its sole discretion. 
 
 
Article VII. 
 
Stock Appreciation Rights 
 
7.1    Issuance.    Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant SARs to any Eligible Person either alone or in
addition to other Awards granted under the Plan. Such SARs may, but need not, be granted in connection with a specific Option granted under Article 6. Any SAR related to a Nonstatutory Stock Option may be granted at the same time such Option is
granted or at any time thereafter before exercise or expiration of such Option. Any SAR related to an Incentive Stock Option must be granted at the same time such Option is granted. The Committee may impose such conditions or restrictions on the
exercise of any SAR as it shall deem appropriate. 
 
7.2    Award Agreements.    Each SAR grant shall be evidenced by an Award Agreement in such form and the Committee may approve and shall contain such terms and conditions not
inconsistent with other provisions of the Plan as shall be determined from time to time by the Committee. 
 
7.3    Grant Price.    The grant price of a SAR shall be determined by the Committee in its
sole discretion; provided that the grant price shall not be less than the lesser of 100% of the Fair Market Value of a Share on the date of the grant of the SAR, or the Option Price under the Nonstatutory Stock Option to which the SAR relates.

 
7.4    Exercise and
Payment.    Upon the exercise of SARs, the Grantee shall be entitled to receive the value thereof. The Fair Market Value of a Share on the date of exercise of SARs shall be determined in the same manner as the Fair Market
Value of a Share on the date of grant of an Option is determined. SARs shall be deemed exercised on the date written notice of exercise in a form acceptable to the Committee is received by the Secretary of the Company. Unless the Award Agreement
provides otherwise or reserves to the Committee or the Grantee or both the right to defer payment, the Company shall make payment in respect of any SAR within five days of the date the SAR is exercised. Any payment by the Company in respect of a SAR
may be made in cash, Shares, other property, or any combination thereof, as the Committee, in its sole discretion, shall determine. 
 
7.5    Grant of Limited Rights. 
 
(a)    The Committee in its sole discretion may grant Limited Rights upon or after the
grant of any Option under the Plan. Each Limited Right shall be identified with a share of Stock subject to an Option of the Grantee. The number of Limited Rights awarded to a Grantee shall equal the number of Shares subject to the Option with which
such Limited Rights are identified. Upon the exercise, expiration, termination, forfeiture, or cancellation of a Grantee’s Option, the Grantee’s associated Limited Rights shall terminate. 
 
(b)    Limited Rights shall become
exercisable upon the occurrence of a Change of Control. Limited Rights shall be exercised by delivery to the Company, within 90 days after the date of such Change of Control, of written notice of intent to exercise specific Limited Rights. The
exercise of Limited Rights shall result in the cancellation of the Option with which such Limited Rights are identified, to the extent of such exercise. 

 

15 

 
(c)    The Company shall notify all Grantees holding Limited Rights of the occurrence of a Change of Control promptly after its occurrence, but any failure of the Company so to notify shall not deprive any Grantee
of any rights that accrued as a result of a Change of Control. Any such failure of the Company shall, if a Grantee does not otherwise know of the Change of Control, automatically extend the 90-day period specified above until 90 days after the
Company notifies such Grantee or such Grantee otherwise knows of the Change of Control, whichever first occurs, but in no event beyond the maximum term of the identified Option specified in the applicable Award Agreement. 
 
(d)    Within five business days after the
exercise of any Limited Rights, the Company shall pay to the Grantee, in cash an amount equal to the difference between (i) the Change of Control Value, and (ii) the Option Price of the Option. 
 
(e)    For purposes of this Section 7.5
“Change of Control Value” means the greater of (A) the highest Fair Market Value of a Share during the 180-day period preceding the 30th day prior to the date of the Company’s receipt of notice of exercise of Limited Rights, or (B) the cash amount (or fair cash value, as determined by the Committee in its sole discretion, of
consideration other than cash), payable in respect of a Share to holders of Shares in connection with the Change of Control. 
 
7.6    Other Limitations.    The Committee may at any time impose any other limitations
upon the exercise of SARs which, in the Committee’s sole discretion, are necessary or desirable in order for Grantees to qualify for an exemption from Section 16(b) of the Exchange Act. 
 
Article VIII. 
Restricted Shares 
 
8.1    Grant of Restricted Shares.    Subject to and consistent with the provisions of the
Plan, the Committee, at any time and from time to time, may grant Restricted Shares to any Eligible Person in such amounts as the Committee shall determine. 
 
8.2    Award Agreement.    Each grant of Restricted Shares shall be evidenced by an Award
Agreement that shall specify the Period(s) of Restriction, the number of Restricted Shares granted, and such other provisions as the Committee shall determine. The Committee may impose such conditions and/or restrictions on any Restricted Shares
granted pursuant to the Plan as it may deem advisable, including restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, and/or restrictions under
applicable securities laws; provided that such conditions and/or restrictions may lapse, if so determined by the Committee, in the event of the Grantee’s Termination of Employment due to death, disability, normal or approved early
retirement, or involuntary termination by the Company or an Affiliate without cause. 
 
8.3    Consideration for Restricted Shares.    The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted Shares.

 
8.4    Voting and
Dividend Rights.    The Committee shall determine the extent to which the Grantee shall have the right to receive dividends and to vote Restricted Shares during the Period of Restriction. Unless otherwise specified in the
Award Agreement, the Grantee shall have the right to receive dividends and to vote Restricted Shares during the Period of Restriction. 
 
8.5    Effect of Forfeiture.    If Restricted Shares are forfeited, and if the Grantee was
required to pay for such shares or acquired such Restricted Shares upon the exercise of an Option, the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price equal to the lesser of (x) the amount paid by the Grantee
for such Restricted Shares, or (y) the Fair Market Value of a Share on the date of such forfeiture. The Company shall pay to the Grantee the deemed sale price as soon as is administratively practical. Such Restricted Shares shall cease to be
outstanding, and shall no longer confer on the Grantee thereof any rights as a 

 

16 

stockholder of the Company, from and after the date of the event causing the forfeiture, whether or not the Grantee accepts the
Company’s tender of payment for such Restricted Shares. 
 
8.6    Escrow; Legends.    The Committee may provide that the certificates for any Restricted Shares (a) shall be held (together with a stock power executed in blank by the Grantee) in
escrow by the Secretary of the Company until such Restricted Shares become nonforfeitable or are forfeited and/or (y) shall bear an appropriate legend restricting the transfer of such Restricted Shares. If any Restricted Shares become
nonforfeitable, the Company shall cause certificates for such Shares to be delivered (or otherwise transferred of record) without such legend. 
 
Article IX. 
Performance Awards 
 
9.1    Grant of Performance Awards.    Subject to and consistent with the provisions of the Plan, the Committee may, at any time and from time to time, award Performance Units or
Performance Shares to any Eligible Person in such amounts and upon such terms as shall be determined by the Committee. 
 
9.2    Value/Performance Goals.    The Committee shall set performance goals in its
discretion which, depending on the extent to which they are met, will determine the number or value of Performance Awards that will be paid to the Grantee. With respect to Covered Employees and to the extent the Committee deems it appropriate to
comply with Section 162(m) of the Code, all performance goals shall be objective Performance Measures satisfying the requirements for the Performance-Based Exception, and shall be set by the Committee within the time period prescribed by Section
162(m) of the Code and related regulations. 
 
(a)    Performance Unit.    Each Performance Unit shall have an initial value that is established by the Committee at the time of grant. 
 
(b)    Performance
Share.    Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. 
 
9.3    Earning of Performance Awards.    After the applicable Performance Period has ended,
the holder of Performance Awards shall be entitled to payment based on the level of achievement of performance goals set by the Committee. If a Performance Award is intended to comply with the Performance-Based Exception, the Committee shall certify
the level of achievement of the performance goals in writing before the Award is settled. At the discretion of the Committee, the settlement of Performance Awards may be in cash, Shares of equivalent value, or in some combination thereof, as set
forth in the Award Agreement. 
 
9.4    Adjustment on Change of Position.    If a Grantee is promoted, demoted or transferred to a different business unit of the Company during a Performance Period, then, to the extent
the Committee determines the performance goals or Performance Period are no longer appropriate, the Committee may adjust, change, eliminate or cancel the performance goals or the applicable Performance Period as it deems appropriate in order to make
them appropriate and comparable to the initial performance goals or Performance Period. 
 
9.5    Voting and Dividend Rights.    At the discretion of the Committee, a Grantee may be entitled to receive any dividends or Dividend Equivalents
declared with respect to Shares deliverable in connection with grants of Performance Awards which have been earned, but not yet delivered (or otherwise transferred of record) to the Grantee. A Grantee shall not have the right to vote Shares
deliverable in connection with grants of Performance Awards until such Shares have been delivered (or otherwise transferred of record) to the Grantee. 
 

17 

 
Article X.

Deferred Stock 
 
10.1    Grant of Deferred Stock.    Subject to and consistent with the provisions of the
Plan, the Committee, at any time and from time to time, may grant Deferred Stock to any Eligible Person, in such amount and upon such terms as the Committee shall determine. 
 
10.2    Delivery and Limitations.    Delivery of Shares will
occur upon expiration of the deferral period specified for the Award of Deferred Stock by the Committee. In addition, an Award of Deferred Stock shall be subject to such limitations as the Committee may impose, which limitations may lapse at the
expiration of the deferral period or at other specified times, separately or in combination, in installments or otherwise, as the Committee shall determine at the time of grant or thereafter. A Grantee awarded Deferred Stock will have no voting
rights and will have no rights to receive dividends in respect of Deferred Stock, unless and only to the extent that the Committee shall award Dividend Equivalents in respect of such Deferred Stock. 
 
10.3    Forfeiture.    Except as otherwise determined by the Committee, upon Termination of Employment during the applicable deferral period, Deferred Stock that is at that time subject
to deferral (other than a deferral at the election of the Grantee) shall be forfeited. 
 
Article XI. 
Dividend Equivalents 
 
11.1    The Committee is authorized to
grant Awards of Dividend Equivalents alone or in conjunction with other Awards. The Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or
additional Awards or otherwise reinvested. 
 
Article XII. 
Other Stock-Based Awards 
 
12.1    The Committee is authorized,
subject to limitations under applicable law, to grant such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with
the purposes of the Plan; including Shares awarded which are not subject to any restrictions or conditions, convertible or exchangeable debt securities or other rights convertible or exchangeable into Shares, and Awards valued by reference to the
value of securities of or the performance of specified Affiliates. Subject to and consistent with the provisions of the Plan, the Committee shall determine the terms and conditions of such Awards. Except as provided by the Committee, Shares
delivered pursuant to a purchase right granted under this Article 12 shall be purchased for such consideration, paid for by such methods and in such forms, including cash, Shares, outstanding Awards or other property, as the Committee shall
determine. 
 
Article XIII. 
Withholding 
 
13.1    Required Withholding. 
 
(a)    Whenever, under the Plan, Shares are to be delivered upon exercise or payment of
an Award, upon Restricted Shares becoming nonforfeitable, upon payment of cash, or any other event with respect to rights and benefits hereunder, the Company or any Affiliate shall be entitled to require (A) that the Grantee remit an amount in cash,
or in the Company’s discretion, in Mature Shares, sufficient to satisfy all of the employer’s federal, state, and local tax withholding requirements related thereto but no more than the minimum amount necessary to satisfy such amounts
(“Required Withholding”), (B) the withholding of such Required 

 

18 

Withholding from compensation otherwise due to the Grantee or from any Shares due to the Grantee under the Plan or (C) any combination of the
foregoing. 
 
(b)    Any
Grantee who makes a Disqualifying Disposition (as defined in Section 6.4(g)) or an election under Section 83(b) of the Code shall remit to the Company an amount sufficient to satisfy all resulting Required Withholding; provided that, in lieu
of or in addition to the foregoing, the Company and/or an Affiliate shall have the right to withhold such Required Withholding from compensation otherwise due to the Grantee or from any Shares or other payment due to the Grantee under the Plan.

 
13.2     Elective Excess
Withholding. 
 
(a)    Subject to the following subsection and with the Committee’s prior approval, a Grantee may elect to remit (or attest to the ownership of) Mature Shares upon the exercise or settlement of an Award or
upon Restricted Shares becoming non-forfeitable (each, a “Taxable Event”) having a Fair Market Value equal to an amount greater than the Required Withholding for the Taxable Event but not to exceed the estimated total amount of such
Grantee’s tax liability (“Excess Withholding”) with respect to the Taxable Event. 
 
(b)    Each Excess Withholding election shall be subject to the following conditions: 
 
(i)    any Grantee’s election shall be subject to the Committee’s discretion to revoke the
Grantee’s right to elect Excess Withholding at any time before the Grantee’s election if the Committee has reserved the right to do so in the Award Agreement; 
 
(ii)    the Grantee’s election must be made before the date (the
“Tax Date”) on which the amount of tax to be withheld is determined; and 
 
(iii)    the Grantee’s election shall be irrevocable. 
 
13.3    Notification under Code
Section 83(b).    If the Grantee, in connection with the exercise of any Option, or the grant of Restricted Shares, makes the election permitted under Section 83(b) of the Code to include in such Grantee’s gross income
in the year of transfer the amounts specified in Section 83(b) of the Code, then such Grantee shall notify the Company of such election within 10 days of filing the notice of the election with the Internal Revenue Service, in addition to any filing
and notification required pursuant to regulations issued under Section 83(b) of the Code. The Committee may, in connection with the grant of an Award or at any time thereafter, prohibit a Grantee from making the election described above.

 
Article XIV. 
Change of Control 
 
14.1    Effect of Change of Control.    In order to maintain the Grantees’ rights in
the event of any Change of Control of the Company, as hereinafter defined, the Committee, as constituted before such Change in Control, may, in its sole discretion, as to any Award, either at the time an Award is made or any time thereafter, take
any one or more of the following actions: (i) provide for the acceleration of any time periods relating to the exercise or realization of any such Award so that such Award may be exercised or realized in full on or before a date fixed by the
Committee; (ii) provide for the purchase of any such Award with or without the Grantee’s consent for an amount of cash equal to the amount that could have been attained upon the exercise of such Award or realization of the Grantee’s rights
had such Award been currently exercisable or payable or exercisable or payable during a stipulated period prior to the Change of Control; (iii) make such adjustment to any such Award then outstanding as the Committee deems appropriate to reflect
such Change in Control; or (iv) cause any such Award then outstanding to be assumed, or new rights substituted therefor, by the acquiring or surviving corporation after such Change in Control. The Committee may, in its discretion, include such
further provisions and limitations respecting a Change in Control in any Award Agreement as it may deem equitable and in the best interests of the Company. 
 

19 

 
14.2    Definition of Change of Control.    A “Change of Control” shall be deemed to have occurred if: 
 
(a)    any “Person” (as such term is used in Section 13(d) of the Exchange Act)
is or becomes the “beneficial owner” (as determined pursuant to Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the
Company’s then outstanding securities including, but not limited to, by reason of the acquisition of securities of the Company prior to the Effective Date; or 
 
(b)    during any period of two (2) consecutive years (not including any period prior to
the Effective Date), individuals who at the beginning of such period constitute the members of the Board and any new director, whose election to the Board or nomination for election to the Board by the Company stockholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the
Board; or 
 
(c)    the Company
shall merge with or consolidate into any other corporation, other than a merger or consolidation which would result in the holders of the voting securities of the company outstanding immediately prior thereto holding immediately thereafter
securities representing at least seventy-five percent (75%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; except that a merger or
consolidation or recapitalization of the Company (or similar transaction) in which no Person (other than Company or an employee benefit plan sponsored by the Company) acquires more than thirty percent (30%) of the combined voting power of the
Company’s then outstanding securities shall not constitute a Change in Control; or 
 
(d)    the stockholders of the Company approve a plan of complete liquidation of the Company or such a plan is commenced; or 
 
(e)    the Company enters into or the
stockholders of the Company approve an agreement for the sale and disposition of all or substantially all of the Company or of all or substantially all of the Company’s assets. 
 
Article XV. 
Amendment, Modification, and Termination 
 
15.1    Amendment, Modification, and Termination.    Subject to Section 15.2, the Board may, at any time and from time to time, alter, amend, suspend,
discontinue or terminate the Plan in whole or in part without the approval of the Company’s stockholders, except that (a) any amendment or alteration shall be subject to the approval of the Company’s stockholders if such stockholder
approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted, and (b) the Board may otherwise, in its discretion, determine to submit
other such amendments or alterations to stockholders for approval. Without limiting the generality of the foregoing, the number of Shares available for grant hereunder shall not be increased without the approval of the Company’s stockholders.

 
15.2    Awards Previously
Granted.    Except as otherwise specifically permitted in the Plan or an Award Agreement, no termination, amendment, or modification of the Plan, or amendment or modification of an Award Agreement, shall adversely affect in
any material way any Award or such Award Agreement previously granted under the Plan without the written consent of the Grantee of such Award; provided that the consent of the Grantee shall not be required for any amendment that is necessary
or advisable (as determined by the Committee) to carry out the purpose of the Award as a result of any new applicable law or change in an existing applicable law. 
 

20 

 
Article XVI.

Additional Provisions 
 
16.1    Successors.    All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise of all or substantially all of the business and/or assets
of the Company. 
 
16.2    Severability.    If any part of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any
other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while
remaining lawful and valid. 
 
16.3    Requirements of Law.    The granting of Awards and the delivery of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by
any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision of the Plan or any Award, Grantees shall not be entitled to exercise, or receive benefits under, any Award, and the Company (and any
Affiliate) shall not be obligated to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would constitute a violation by the Grantee or the Company of any applicable law or regulation. 
 
16.4    Securities Law Compliance.

 
(a)    If the Committee
deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon which Shares may be listed, the Committee may impose any restriction on Shares acquired pursuant to Awards under the Plan as it may deem
advisable. All certificates for Shares delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and
other requirements of the SEC, any stock exchange upon which Shares are then listed, any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such
restrictions. If so requested by the Company, the Grantee shall make a written representation to the Company that he or she will not sell or offer to sell any Shares unless a registration statement shall be in effect with respect to such Shares
under the Securities Act of 1993, as amended, and any applicable state securities law or unless he or she shall have furnished to the Company, in form and substance satisfactory to the Company, that such registration is not required. 
 
(b)    If the Committee determines that
the exercise or nonforfeitability of, or delivery of benefits pursuant to, any Award would violate any applicable provision of securities laws or the listing requirements of any national securities exchange or national market system on which are
listed any of the Company’s equity securities, then the Committee may postpone any such exercise, nonforfeitability or delivery, as applicable, but the Company shall use all reasonable efforts to cause such exercise, nonforfeitability or
delivery to comply with all such provisions at the earliest practicable date. 
 
16.5    No Rights as a Stockholder.    No Grantee shall have any rights as a stockholder of the Company with respect to the Shares (other than Restricted
Shares) which may be deliverable upon exercise or payment of such Award until such Shares have been delivered (or otherwise transferred of record) to him or her. Restricted Shares, whether held by a Grantee or in escrow by the Secretary of the
Company, shall confer on the Grantee all rights of a stockholder of the Company, except as otherwise provided in the Plan or Award Agreement. At the time of a grant of Restricted Shares, the Committee may require the payment of cash dividends
thereon to be deferred and, if the Committee so determines, reinvested in additional Restricted Shares. Stock dividends and deferred cash dividends issued with respect to Restricted Shares shall be subject to the same restrictions and 

 

21 

other terms as apply to the Restricted Shares with respect to which such dividends are issued. The Committee may in its discretion provide
for payment of interest on deferred cash dividends. 
 
16.6    Nature of Payments.    Unless otherwise specified in the Award Agreement, Awards shall be special incentive payments to the Grantee and shall not be taken into account in
computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death or other benefit under (a) any pension, retirement, profit-sharing, bonus, insurance or other employee benefit plan of the
Company or any Affiliate, except as such plan shall otherwise expressly provide, or (b) any agreement between (i) the Company or any Affiliate and (ii) the Grantee, except as such agreement shall otherwise expressly provide. 
 
16.7    Non-Exclusivity of
Plan.    Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other
compensatory arrangements for employees as it may deem desirable. 
 
16.8    Governing Law.    The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware, other than its laws
respecting choice of law. 
 
16.9    Share Certificates.    All certificates for Shares delivered under the terms of the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may
deem advisable under federal or state securities laws, rules and regulations thereunder, and the rules of any national securities laws, rules and regulations thereunder, and the rules of any national securities exchange or automated quotation system
on which Shares are listed or quoted. The Committee may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions or any other restrictions or limitations that may be applicable to Shares. In
addition, during any period in which Awards or Shares are subject to restrictions or limitations under the terms of the Plan or any Award Agreement, or during any period during which delivery or receipt of an Award or Shares has been deferred by the
Committee or a Grantee, the Committee may require any Grantee to enter into an agreement providing that certificates representing Shares deliverable or delivered pursuant to an Award shall remain in the physical custody of the Company or such other
person as the Committee may designate. 
 
16.10    Unfunded Status of Awards; Creation of Trusts.    The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any
payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give any such Grantee any rights that are greater than those of a general creditor of the Company; provided, however,
that the Committee may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Plan to deliver cash, Shares or other property pursuant to any Award which trusts or other arrangements shall be
consistent with the “unfunded” status of the Plan unless the Committee otherwise determines. 
 
16.11    Affiliation.    Nothing in the Plan or an Award Agreement shall interfere with or
limit in any way the right of the Company or any Affiliate to terminate any Grantee’s employment at any time, nor confer upon any Grantee the right to continue in the employ of or as an officer of the Company or any Affiliate. 
 
16.12    Participation.    No employee or officer shall have the right to be selected to receive an Award under this Plan or, having been so selected, to be selected to receive a future
Award. 
 
16.13    Military
Service.    Awards shall be administered in accordance with Section 414(u) of the Code and the Uniformed Services Employment and Reemployment Rights Act of 1994. 
 
16.14    Construction.    The following rules of construction
will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive, and (b) words in the singular include the plural, words in the plural 

 

22 

include the singular, and words in the neuter gender include the masculine and feminine genders and words in the masculine or feminine gender
include the other neuter genders. 
 
16.15    Headings.    The headings of articles and sections are included solely for convenience of reference, and if there is any conflict between such headings and the text of this
Plan, the text shall control. 
 
16.16    Obligations.    Unless otherwise specified in the Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property pursuant to Awards under this
Plan shall be the sole obligation of a Grantee’s employer; provided that the obligation to deliver or transfer any Shares pursuant to Awards under this Plan shall be the sole obligation of the Company. 
 
16.17    Stockholder
Approval.    All Awards granted on or after the Effective Date and prior to the date the Company’s stockholders approve the Plan are expressly conditioned upon and subject to approval of the Plan by the Company’s
stockholders. 
 

23Amended and Restated By-Laws of Factory Card & Party Outlet Corp.

 
Exhibit 10.13

 
AMENDED AND RESTATED BY-LAWS

of 
FACTORY CARD & PARTY OUTLET CORP. 
 
A Delaware Corporation 
(hereinafter called the “Corporation”) 
 
ARTICLE I 
 
MEETINGS OF STOCKHOLDERS 
 
Section 1. ANNUAL MEETING. The annual meeting of stockholders
of the Corporation shall be held, in each year, on the date and at the time as shall be fixed by the Board and stated in the notice of said meeting. At annual meetings, the stockholders shall elect directors by a plurality vote and shall transact
such other business as may properly be brought before the meeting. 
 
Section 2. SPECIAL MEETINGS. Special Meetings of the stockholders may be called at any time by the Board or by the Chairman of the Board or President and shall be called by the President or Secretary upon the written request
(stating the purpose or purposes of the meeting) of a majority of the Board or a majority of the stockholders of the Corporation. Only business related to the purposes set forth in the notice of the meeting may be transacted at a special meeting.

 
Section 3. NOTICE OF MEETINGS, STOCKHOLDER
PROPOSALS AND NOMINATIONS. 
 
(a)
Except as otherwise provided by law, and subject to the provisions set forth in subsections (b) and (c) hereof, written or printed notice stating the place, date and hour of the meeting and, in the case of a special meeting, a brief statement of the
purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) nor more than sixty (60) days before the date of every meeting of stockholders either personally or by mail, by or at the direction of the President or
the Secretary, to each stockholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail addressed to the stockholder at his or her address as it appears on the
records of the Corporation, with postage thereon prepaid. Whenever any notice is required to be given under the provisions of Delaware law, the certificate of incorporation of the Corporation (the “certificate of incorporation”), or these
By-Laws, a waiver thereof in writing signed by the person or persons entitled to such notice, whether it be before or after the time stated therein, shall be deemed equivalent to the giving of such notice. It shall not be requisite to the validity
of any meeting of stockholders that notice thereof, whether prescribed by law, by the certificate of incorporation or by these By-Laws, shall have been given to any stockholder who attends in person or by proxy, except when the person attends a
meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. No notice other than by verbal announcement need be given of any adjourned
meetings of stockholders unless 

the adjournment is for more than thirty (30) days or a new record date is fixed for the adjourned meeting. 
 
(b) At an annual meeting of the stockholders,
only such business shall be conducted as shall have been brought before the meeting (i) by or at the direction of the Board or (ii) by any stockholder of record of the Corporation who complies with the notice procedures set forth in this subsection
(b). For business to be properly brought before an annual meeting by a stockholder, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation. To be timely, a stockholder’s notice must be delivered to
or mailed and received at the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred and twenty (120) days prior to the one year anniversary of the date of the last annual meeting of stockholders;
provided, however, in the event that the date of the annual meeting is more than 30 days before or after such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the
120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement (which may be made by filing of a Form 8-k with
the Securities and Exchange Commission and/or submission of a press release to a news wire service) of the date of such meeting is first made. A stockholder’s notice to the Secretary shall set forth as to each matter the stockholder proposes to
bring before the annual meeting (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and address, as they appear on the
Corporation’s books, of the stockholder proposing such business, (iii) the number of shares of common stock of the Corporation which are beneficially owned by the stockholder and (iv) any material interest of the stockholder in such business.
Notwithstanding anything in these By-Laws to the contrary, no business shall be conducted at an annual meeting except in accordance with the procedures set forth in this subsection (b). The chairman of an annual meeting shall, if the facts warrant,
determine and declare to the meeting that business was not properly brought before the meeting and in accordance with the provisions of this subsection (b), and if he or she should so determine, he or she shall so declare to the meeting and any such
business not properly brought before the meeting shall not be transacted. 
 
(c) Nominations of persons for election to the Board may be made at the annual meeting of stockholders (i) by or at the direction of the Board or (ii) by any stockholder of the Corporation entitled to
vote for the election of directors at the meeting who complies with the notice procedures set forth in this subsection (c). Nominations, other than those made by or at the direction of the Board, shall be made pursuant to timely notice in writing to
the Secretary of the Corporation. To be timely, a stockholder’s notice shall be delivered to or mailed and received at the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred and twenty (120)
days prior to the one year anniversary of the date of the last annual meeting of stockholders; provided, however, in the event that the date of the annual meeting is more than 30 days before or after such anniversary date, notice by
the stockholder to be timely must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior 

 

2 

to such annual meeting or the 10th day following the day on which public announcement (which may be made by filing of a Form 8-k with the
Securities and Exchange Commission and/or submission of a press release to a news wire service) of the date of such meeting is first made. Such stockholder’s notice shall set forth (i) as to each person whom the stockholder proposes to nominate
for election or re-election as a director, all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the
Securities Exchange Act of 1934, as amended (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected); and (ii) as to the stockholder giving the notice, the name and
address, as they appear on the Corporation’s books, of such stockholder and the number of shares of common stock of the Corporation which are beneficially owned by such stockholder. At the request of the Board any person nominated by the Board
for election as a director shall furnish to the Secretary of the Corporation that information required to be set forth in a stockholder’s notice of nomination which pertains to the nominee. No person shall be eligible for election as a director
of the Corporation unless nominated in accordance with the procedures set forth in these By-Laws. The chairman of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the
procedures prescribed by these By-Laws, and if he or she should so determine, he or she shall so declare to the meeting and the defective nomination shall be disregarded. 
 
Section 4. STOCKHOLDER LIST. The officer having charge of the stock ledger of the Corporation shall make, at
least 10 days before every meeting of the stockholders, a complete list of the stockholders entitled to vote at such meeting arranged in alphabetical order, showing the address of each stockholder and the number of shares registered in the name of
each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least 10 days prior to the meeting, either at a place within the city where
the meeting is to be held, which place shall be specified in the notice of the meeting or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the
whole time thereof, and may be inspected by any stockholder who is present. 
 
The stock ledger shall be the only evidence as to who are the stockholders entitled to examine the stock ledger, the list required by this section or the books of the Corporation, or to vote in person
or by proxy at any meeting of stockholders. 
 
Section 5. QUORUM. The holders of a majority of the shares entitled to vote, represented in person or by proxy, shall constitute a quorum for the transaction of business. The stockholders present in person or by proxy at a duly
organized meeting may continue to do business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum. Less than a quorum may adjourn. In the absence of a quorum a majority in voting interest of those
present, or in the absence of all the stockholders, any officer entitled to preside at or act as Secretary of the meeting, may adjourn the meeting until a quorum is present. At any adjourned meeting at which a quorum is present any action may be
taken which might have been taken at the original meeting. 
 

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Whenever the
holders of any class or series or shares are entitled to vote separately on a specified item of business, the provisions of this section shall apply in determining the presence of a quorum of such class or series for the transaction of such
specified item of business. 
 
Section 6. CONDUCT
OF MEETINGS. The Board may, to the extent not prohibited by law, adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and
regulations as adopted by the Board, the Chairman of the Board shall be the chairman of any meeting of stockholders, and such chairman shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts as,
in the judgment of such chairman, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the chairman of the meeting, may to the extent not prohibited by law
include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at
or participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies or such other persons as the chairman of the meeting shall determine; (iv) restrictions on entry to the meeting after the
tune fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. Unless and except to the extent otherwise determined by the Board or the chairman of the meeting, meetings of stockholders
shall not be required to be held in accordance with the rules of parliamentary procedure. 
 
Section 7. VOTING; PROXIES. Except as otherwise provided by law or in the certificate of incorporation, each stockholder of record shall be entitled to one vote for every share registered in his or her
name and may attend meetings and vote or express consent or dissent without a meeting either in person or by proxy. Corporate action to be taken by stockholder vote, other than the election of directors, shall be authorized by a majority of the
votes cast at a meeting of stockholders, except as otherwise provided by law or in the certificate of incorporation. Directors shall be elected in the manner provided in Section 2 of Article II of these By-Laws. Voting need not be by ballot unless
requested by a stockholder at the meeting or ordered by the chairman of the meeting. Every proxy must be signed by the stockholder or his or her attorney-in-fact. The validity and enforceability of any proxy shall be determined in accordance with
Section 212 of the General Corporation Law of the State of Delaware, as amended from time to time. 
 
Section 8. ACTIONS BY STOCKHOLDERS. No action required to be taken or which may be taken at any annual or special meeting of stockholders
of the Corporation may be taken except at a duly called meeting of the stockholders of the Corporation, or upon unanimous written consent of the stockholders entitled to vote thereat. Stockholders of the Corporation may only propose actions to be
taken by the Corporation and nominate members of the Board of Directors upon ninety (90) days prior written notice to the Corporation; provided that, the right of stockholders to propose a matter or nominate a person for election to the Board shall
be subject to Section 2 of Article II of these By-Laws. 
 
Section 9. VOTING PROCEDURES AND INSPECTORS OF ELECTION AT MEETINGS OF STOCKHOLDERS. The Board, in advance of any meeting of stockholders, may appoint one or more inspectors to act at the meeting and make a written report thereof.
The 

 

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Board may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is
able to act at a meeting, the person presiding at the meeting may appoint, and on the request of any stockholder entitled to vote thereat shall appoint, one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge
of his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspectors shall (a) ascertain the number of shares outstanding and the
voting power of each, (b) determine the shares represented at the meeting and the validity of proxies and ballots, (c) count all votes and ballots, (d) determine and retain for a reasonable period a record of the disposition of any challenges made
to any determination by the inspectors, and (e) certify their determination of the number of shares represented at the meeting and their count of all votes and ballots. The inspectors may appoint or retain other persons or entities to assist the
inspectors in the performance of their duties. Unless otherwise provided by the Board, the date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be determined by the person
presiding at the meeting and shall be announced at the meeting. No ballot, proxies or votes, or any revocation thereof or change thereto, shall be accepted by the inspectors after the closing of the polls unless the Court of Chancery of the State of
Delaware upon application by a shareholder shall determine otherwise. 
 
Section 10. PLACE OF MEETINGS. Meetings of the stockholders may be held at the principal office of the Corporation or at such other place within or without the State of Delaware as may be designated by the Board and stated
in the notice of the meeting. 
 
 
ARTICLE II 
 
BOARD OF DIRECTORS 
 
Section 1. GENERAL POWERS. Except as otherwise provided in Delaware Law or the certificate of incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board. 
 
Section 2. NUMBER, QUALIFICATION AND ELECTION. The Board shall
consist of not less than one nor more than fifteen members, the exact number of which shall be fixed by the certificate of incorporation. The number of directors shall thereafter be established from time to time by resolution of the Board. Subject
to the provisions of the certificate of incorporation, the persons receiving the greatest number of votes at an election of the directors at an annual meeting of stockholders shall be the directors and shall hold office until a successor is duly
elected and qualified or until his or her earlier death, resignation or removal as hereinafter provided. 
 
Section 3. QUORUM. At all meetings of the Board, a majority of the entire Board shall constitute a quorum for the transaction of business.
In the absence of a quorum, a majority of the directors present may adjourn the meeting from time to time until a quorum is present. The vote of a majority of directors present at a meeting at which a quorum is present shall be the act of the Board.

 

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Section 4.
TIME AND PLACE OF MEETINGS. The Board shall hold its meetings at such place, either within or without the State of Delaware, and at such time as may be determined from time to time by the Board. 
 
Section 5. ANNUAL MEETINGS. Annual meetings of the Board shall
be held for the election of officers and the transaction of other business. Such meetings shall be held without notice either immediately after the annual meeting of stockholders and at the same place, or as soon as practicable within 20 days after
the final adjournment of the annual meeting of stockholders, upon notice as hereinafter provided in Section 7 of this Article II, at such time and place as shall be determined by the Chairman of the Board or President. 
 
Section 6. MEETINGS. The Board of the Corporation may hold
meetings, both regular and special, either within or without the State of Delaware. Regular meetings of the Board may be held without notice at such time and at such place as may from time to time be determined by the Board. Special meetings of the
Board may be called by the Chair, if there be one, the President, or any director. Notice thereof stating the place, date and hour of the meeting shall be given to each director either by mail not less than forty-eight (48) hours before the date of
the meeting, by telephone or telegram on twenty-four (24) hours’ notice, or on such shorter notice as the person or persons calling such meeting may deem necessary or appropriate in the circumstances. 
 
Section 7. NOTICE OF MEETINGS; WAIVER OF NOTICE. Notice of the
time and place of each special meeting of the Board, and of each annual meeting not held immediately after the annual meeting of stockholders and at the same place, shall be given to each director by mailing it to him or her at his or her residence
or usual place of business at least 2 days before the meeting, or by delivering or telephoning or telegraphing it to him or her at least 1 day before the meeting. Notice of any meeting need not be given to any director who submits a signed waiver of
notice before or after the meeting, or who attends the meeting without protesting the lack of notice to him or her, either before the meeting or when it begins. Notice of any adjourned meeting need not be given, other than by announcement at the
meeting at which the adjournment is taken until a quorum shall be present. 
 
Section 8. AUTHORITY TO ISSUE WARRANTS. The Corporation is hereby expressly authorized and empowered, from time to time, by resolution of its Board, to create and issue, whether or not in connection
with the issue and sale of any shares or other securities of the Corporation, rights or options entitling the holders or owners thereof to purchase or acquire from the Corporation any shares of any class or series or other securities, whether now or
hereafter authorized, such rights or options to be evidenced by or in such warrants or other instruments as shall be approved by the Board. The terms upon which, the time or times, which may be limited or unlimited in duration, at or within which,
and the price or prices at which any such shares or other securities may be purchased or acquired from the Corporation upon the exercise of any such rights or options shall be such as shall be fixed in a resolution or resolutions adopted by the
Board providing for the creation and issue of such rights or options, and set forth or incorporated by reference in the warrants or other instruments evidencing such rights or options, and as shall be permitted by law. The Board is hereby authorized
and empowered to authorize the creation and issue of any such rights or options and any such warrants or other instruments from time to time, for such consideration as the Board may determine. Any and all shares which may be 
 

6 

purchased or acquired or issued upon the exercise of any such right or option shall be deemed fully paid shares and not liable to any further
call or assessment, or partly paid and liable to further call or assessment, as the terms of the warrants or other instruments evidencing such rights or options shall provide. Except as otherwise provided by law, the Board shall have full power and
discretion to prescribe and regulate from time to time the procedure to be followed in, and all other matters concerning, the creation, issue, and exercise of any such rights and options and such warrants or other instruments, and the setting aside
of shares or other securities for the purpose thereof, and the issuance of such shares or other securities upon the exercise thereof. 
 
Section 9. RESIGNATION AND REMOVAL OF DIRECTORS. Any director or the entire Board may be removed at any time, with cause, by the holders
of a majority of the shares then entitled to vote at an election of directors. Whenever the holders of any class or series are entitled to elect one or more directors by the provisions of the Corporation’s certificate of incorporation, the
provisions of this section shall apply, in respect to the removal without cause of a director or directors so elected, to the vote of the holders of the outstanding shares of that class or series and not to the vote of the outstanding shares as a
whole. Any director may resign at any time upon written notice to the Corporation. 
 
Section 10. VACANCIES. In case of a vacancy on the Board resulting from death, resignation, disqualification, increase in the number of authorized directors or other cause, such vacancy shall be filled
for the unexpired term by the vote of a majority of the remaining directors, though less than a quorum, unless otherwise required by law or by the certificate of incorporation. 
 
Section 11. COMPENSATION. Directors shall receive such compensation as the Board determines, together with
reimbursement of their reasonable expenses in connection with the performance of their duties. A director may also be paid for serving the Corporation, its affiliates or subsidiaries in other capacities. 
 
 
ARTICLE III 
 
COMMITTEES

 
Section 1. COMMITTEES. The Board may, by
resolution passed by a majority of the whole Board, designate one or more committees, each committee to consist of one or more directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may
replace any absent or disqualified member at any meeting of the Committee. Any such committee, to the extent provided in the resolution of the Board, shall have and may exercise all the powers and authority of the Board in the management of the
business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers that may require such affixation. Each committee shall keep regular minutes of its meetings and report the same to the Board when
required. 
 
Section 2. PROCEDURES, QUORUM AND
MANNER OF ACTING. Each committee shall fix its own rules of procedure, and shall meet where and as provided by such rules or by resolution of the Board of Directors. Except as otherwise provided by law, the presence of a 

 

7 

majority of the then appointed members of a committee shall constitute a quorum for the transaction of business by that committee, and in
every case where a quorum is present the affirmative vote of a majority of the members of the committee present shall be the act of the committee. Each committee shall keep minutes of its proceedings, and actions taken by a committee shall be
reported to the Board of Directors. 
 
Section 3.
ACTION BY WRITTEN CONSENT. Any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in
writing, and the writing or writings are filed with the minutes of proceedings of the Board or committee. 
 
Section 4. TELEPHONIC MEETINGS. Unless otherwise restricted by the certificate of incorporation or these By-laws, members of the Board, or
any committee designated by the Board, may participate in a meeting of the Board, or such committee, as the case may be, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting
can hear each other, and such participation in a meeting shall constitute presence in person at the meeting. 
 
 
ARTICLE IV 
 
OFFICERS 
 
Section 1. ELECTION AND QUALIFICATIONS. The Board of Directors shall elect the officers of the Corporation, which shall include a
President and a Secretary, and may include, by election or appointment, one or more Vice-Presidents (any one or more of whom may be given an additional designation of rank or function), a Treasurer and such assistant secretaries, such Assistant
Treasurers and such other officers as the Board may from time to time deem proper. Each officer shall have such powers and duties as may be prescribed by these By-laws and as may be assigned by the Board of Directors or the President. Any two or
more offices may be held by the same person except the offices of President and Secretary. 
 
Section 2. TERM OF OFFICE AND REMUNERATION. The term of office of all officers shall be one year and until their respective successors have been elected and qualified, but any officer may be removed
from office, either with or without cause, at any time by the Board of Directors. Any vacancy in any office arising from any cause may be filled for the unexpired portion of the term by the Board of Directors. The remuneration of all officers of the
Corporation may be fixed by the Board of Directors or in such manner as the Board of Directors shall provide. 
 
Section 3. RESIGNATION; REMOVAL. Any officer may resign at any time upon written notice to the Corporation and such resignation shall take
effect upon receipt thereof by the President or Secretary, unless otherwise specified in the resignation. Any officer shall be subject to removal, with or without cause, at any time by vote of a majority of the entire Board. 
 
Section 4. CHAIRMAN OF THE BOARD. The Chairman of the Board of
Directors, if there be one, shall preside at all meetings of the Board of Directors and shall have such other powers and duties as may from time to time be assigned by the Board of Directors. Unless 

 

8 

otherwise determined by the Board, the President shall be the Chairman of the Board of Directors. 
 
Section 5. PRESIDENT AND CHIEF EXECUTIVE OFFICER. Unless
otherwise determined by the Board, the President shall be the chief executive officer of the Corporation, and shall have such duties as customarily pertain to that office. The President shall have general management and supervision of the property,
business and affairs of the Corporation and over its other officers; may appoint and remove assistant officers and other agents and employees and may execute and deliver in the name of the Corporation powers of attorney, contracts, bonds and other
obligations and instruments. In the absence of the Chairman of the Board, the President shall preside at all meetings of the stockholders and the Board. 
 
Section 6. VICE-PRESIDENT. A Vice-President may execute and deliver in the name of the Corporation contracts and other obligations and
instruments pertaining to the regular course of the duties of said office, and shall have such other authority as from time to time may be assigned by the Board of Directors or the President. 
 
Section 7. TREASURER. The Treasurer shall in general have all
duties incident to the position of Treasurer and such other duties as may be assigned by the Board of Directors or the President. 
 
Section 8. SECRETARY. The Secretary shall be the secretary of, and keep the minutes of, all meetings of the Board and of the stockholders,
shall be responsible for giving notice of all meetings of stockholders and of the Board, shall keep the seal and, when authorized by the Board, shall apply it to any instrument requiring it. Subject to the control of the Board, he shall have such
other powers and duties as the Board or the President assigns to him or her. In the absence of the Secretary from any meeting, the minutes shall be kept by the person appointed for the purpose by the presiding officer. 
 
Section 9. ASSISTANT OFFICERS. Any assistant officer shall
have such powers and duties of the officer such assistant officer assists as such officer or the Board of Directors shall from time to time prescribe. 
 
Section 10. COMPENSATION. Unless otherwise restricted by the certificate of incorporation or these By-laws, the Board of Directors shall
have authority to fix the compensation of directors, including fees and reimbursement of expenses. 
 
Section 11. VACANCIES. If any vacancy shall occur among the officers of the Corporation, the Board shall have the power to fill such
vacancy. 
 
Section 12. DELEGATION OF DUTIES OF
OFFICERS. In the case of the absence or disability of an officer of the Corporation, or in case the office is vacant, or for any other reason that the Board may deem sufficient, the Board or any officer designated by it may, except as otherwise
provided by law, delegate the powers or duties of such officer to any other person. 

 

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ARTICLE V 
 
BOOKS AND RECORDS 
 
Section 1. LOCATION. The books and records of the Corporation may be kept at such place or places within or
outside the State of Delaware as the Board of Directors or the respective officers in charge thereof may from time to time determine. The record books containing the names and addresses of all stockholders, the number and class of shares of stock
held by each and the dates when they respectively became the owners of record thereof shall be kept by the Secretary as prescribed in the By-laws and by such officer or agent as shall be designated by the Board of Directors. 
 
Section 2. ADDRESSES OF STOCKHOLDERS. Notices of meetings and
all other corporate notices may be delivered personally or mailed to each stockholder at the stockholder’s address as it appears on the records of the Corporation. 
 
Section 3. FIXING DATE FOR DETERMINATION OF STOCKHOLDERS OF RECORD. 
 
(a) In order that the Corporation may
determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the
record date is adopted by the Board of Directors and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If no record date is fixed by the Board of Directors, the record date for determining
stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the
day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new
record date for the adjourned meeting. 
 
(b) In order that the Corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon
which the resolution fixing the record date is adopted by the Board of Directors and which date shall not be more than 15 days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. If no record date
has been fixed by the Board of Directors, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is required, shall be the first date on which
a signed written consent setting forth the action taken or proposed to be taken is delivered to the Corporation by delivery to its registered office in this State, its principal place of business, or an officer or agent of the Corporation having
custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Corporation’s registered office shall be by hand or by certified or registered mail, return receipt requested. If no record date has been
fixed by the Board of Directors and prior action by the Board of Directors is 

 

10 

required by this chapter, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting
shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action. 
 
(c) In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other
distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which
record date shall not precede the date upon which the resolution fixing the record date is adopted and which record date shall be not more than 60 days prior to such action. If no record date is fixed, the record date for determining stockholders
for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto. 
 
 
ARTICLE VI 
 
CERTIFICATES REPRESENTING STOCK 
 
Section 1. CERTIFICATES; SIGNATURES. The shares of the
Corporation shall be represented by certificates, provided that the Board of Directors of the Corporation may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Any such
resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Corporation. Notwithstanding the adoption of such a resolution by the Board of Directors, every holder of stock represented by
certificates and upon request every holder of uncertificated shares shall be entitled to have a certificate, signed by or in the name of the Corporation by the Chairman or Vice-Chairman of the Board of Directors, or the President or Vice-President,
and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary of the Corporation, representing the number of shares registered in certificate form. Any and all signatures on any such certificate may be facsimiles. In
case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the
Corporation with the same effect as if he were such officer, transfer agent or registrar at the date of issue. The name of the holder of record of the shares represented thereby, with the number of such shares and the date of issue, shall be entered
on the books of the Corporation. 
 
Section 2.
TRANSFERS OF STOCK. Upon compliance with provisions restricting the transfer or registration of transfer of shares of stock, if any, shares of capital stock shall be transferable on the books of the Corporation only by the holder of record thereof
in person, or by duly authorized attorney, upon surrender and cancellation of certificates for a like number of shares, properly endorsed, and the payment of all taxes due thereon. 
 
Section 3. FRACTIONAL SHARES. The Corporation may, but shall not be required to, issue certificates for
fractions of a share where necessary to effect authorized transactions, or the Corporation may pay in cash the fair value of fractions of a share as of the time when those entitled to receive such fractions are determined, or it may issue scrip in
registered or bearer form over the manual or facsimile signature of an officer of the Corporation or of its agent, 

 

11 

exchangeable as therein provided for full shares, but such scrip shall not entitle the holder to any rights of a stockholder except as
therein provided. 
 
Section 4. The Board of
Directors shall have power and authority to make all such rules and regulations as it may deem expedient concerning the issue, transfer and registration of certificates representing shares of the Corporation. 
 
Section 5. LOST, STOLEN OR DESTROYED CERTIFICATES. The
Corporation may issue a new certificate of stock in place of any certificate, theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Board of Directors may require the owner of any lost, stolen or destroyed certificate, or
his legal representative, to give the Corporation a bond sufficient to indemnify the Corporation against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of any such
new certificate. 
 
 
ARTICLE VII 
 
DIVIDENDS 
 
Subject always to the provisions of law and the Certificate of Incorporation, the Board of Directors shall have full power to determine whether any, and, if any, what part of any, funds legally available for the payment of dividends
shall be declared as dividends and paid to stockholders; the division of the whole or any part of such funds of the Corporation shall rest wholly within the lawful discretion of the Board of Directors, and it shall not be required at any time,
against such discretion, to divide or pay any part of such funds among or to the stockholders as dividends or otherwise; and before payment of any dividend, there may be set aside out of any funds of the Corporation available for dividends such sum
or sums as the Board of Directors from time to time, in its absolute discretion, thinks proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any property of the Corporation, or for such
other purpose as the Board of Directors shall think conducive to the interest of the Corporation, and the Board of Directors may modify or abolish any such reserve in the manner in which it was created. 
 
 
ARTICLE VIII 
 
RATIFICATION 
 
Any
transaction, questioned in any law suit on the ground of lack of authority, defective or irregular execution, adverse interest of director, officer or stockholder, non-disclosure, miscomputation, or the application of improper principles or
practices of accounting, may be ratified before or after judgment, by the Board of Directors or by the stockholders, and if so ratified shall have the same force and effect as if the questioned transaction had been originally duly authorized. Such
ratification shall be binding upon the Corporation and its stockholders and shall constitute a bar to any claim or execution of any judgment in respect of such questioned transaction. 
 

12 

 
 
ARTICLE IX 
 
CORPORATE SEAL 
 
The corporate seal shall have inscribed thereon the name of the Corporation and the year of its incorporation, and shall be in such form and contain such other words and/or figures as the Board of Directors shall determine.
The corporate seal may be used by printing, engraving, lithographing, stamping or otherwise making, placing or affixing, or causing to be printed, engraved, lithographed, stamped or otherwise made, placed or affixed, upon any paper or document, by
any process whatsoever, an impression, facsimile or other reproduction of said corporate seal. 
 
 
ARTICLE X 
 
FISCAL YEAR 
 
Section 1. FISCAL YEAR. The fiscal year of the Corporation shall be fixed by resolution of the Board. 
 
 
ARTICLE XI 
 
VOTING OF
SHARES IN OTHER CORPORATIONS. 
 
Section 1.
VOTING OF SHARES IN OTHER CORPORATIONS. Shares in other Corporations which are held by the Corporation may be represented and voted by the Chairman of the Board, President or an Executive Vice President of this Corporation or by proxy or proxies
appointed by one of them. The Board may, however, appoint some other person to vote the shares. 
 
 
ARTICLE XII 
 
DEFINITIONS 
 
Section 1. DEFINITIONS. The term “entire Board” shall mean that number of directors from time to time fixed pursuant to Section
2 of Article II. 
 
 
ARTICLE XIII 
 
INCONSISTENT PROVISIONS 
 
Section 1. INCONSISTENT PROVISIONS. In the event that any provision of these By-Laws is or becomes inconsistent with any provision of the certificate of incorporation, the General Corporation Law of the State of Delaware, any other
applicable law, the provision of these By-Laws shall not be given any effect to the extent of such inconsistency but shall otherwise be given full force and effect. 

 

13 

 
 
ARTICLE XIV 
 
AMENDMENTS 
 
Section 1. AMENDMENTS. By-Laws may be amended, repealed or adopted by the stockholders or by a majority of the entire Board, but any By-Law adopted by the Board may be amended or repealed by the stockholders. 
 
 
ARTICLE XV 
 
INDEMNIFICATION 
 
Section
1. NATURE OF INDEMNITY. Each person who was or is made a party or is threatened to be made a party to or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”),
by reason of the fact that he or she is or was a director or officer of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee, fiduciary, or agent of another Corporation or of a partnership, joint
venture, trust or other enterprise including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as a director, officer, employee, fiduciary or agent or in any other capacity
while serving as a director, officer, employee, fiduciary or agent, shall be indemnified and held harmless by the Corporation to the fullest extent which it is empowered to do so by the General Corporation Law of the State of Delaware, as the same
exists or may hereafter be amended against all expense, liability and loss (including, without limitation, attorneys’ fees) actually and reasonably incurred by such person in connection with such proceeding if he or she acted in good faith and
in a manner he or she reasonably believed to be in or not opposed to the best interests of the Corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. Such
indemnification shall inure to the benefit of his or her heirs, executors and administrators; provided, however, that, except as provided in Section 2 hereof, the Corporation shall indemnify any such person seeking indemnification in connection with
a proceeding initiated by such person only if such proceeding was authorized by the Board. The right to indemnification conferred in this Article XV shall be a contract right and, subject to Sections 2 and 5 hereof, shall include the right to be
paid by the Corporation for the expense incurred in defending any such proceeding, in advance of its final disposition. The Corporation may, by action of the Board, provide indemnification to employees, agents and fiduciaries of the Corporation with
the same scope and effect as the foregoing indemnification of directors and officers. 
 
Section 2. PROCEDURE FOR INDEMNIFICATION OF DIRECTORS AND OFFICERS. Any indemnification of a director, officer, employee, fiduciary or agent of the Corporation under Section 1 of this Article XV or
advance of expenses under Section 5 of this Article XV shall be made promptly, and in any event the Corporation shall use its best efforts to make such indemnification or advance within sixty (60) days, upon the written request of the director,
officer, employee, fiduciary or agent. Notwithstanding the preceding sentence, if a determination (as defined in the General Corporation Law of the State of Delaware) by the Corporation that the director, officer, employee, fiduciary or agent is
entitled to indemnification pursuant to this Article XV is required, and the Corporation fails to respond within sixty (60) days to a written request for indemnity, the Corporation shall be deemed to have approved the 

 

14 

request. If the Corporation denies a written request for indemnification or advancing of expenses, in whole or in part, or if payment in full
pursuant to such request is not made within sixty (60) days after receipt of a written request and delivery of an undertaking required by the General Corporation Law of the State of Delaware, if any, the right to indemnification or advances as
granted by this Article XV shall be enforceable by the director, officer, employee, fiduciary or agent in any court of competent jurisdiction. Such person’s costs and expenses incurred in connection with successfully establishing his or her
right to indemnification, in whole or in part, in any such action shall also be indemnified by the Corporation in accordance with this Article XV. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses
incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any, has been tendered to the Corporation) that the claimant has not met the standards of conduct which make it permissible under the General
Corporation Law of the State of Delaware for the corporation to indemnify the claimant for the amount claimed, but the burden of such defense shall be on the Corporation. Neither the failure of the Corporation (including the Board, its independent
legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in
the General Corporation Law of the State of Delaware shall be a defense to the action for indemnification or create a presumption that the claimant has not met the applicable standard of conduct nor shall an actual determination by the Corporation
(including the Board, its independent legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct, or create a presumption that the claimant has not met the applicable standard of conduct. 
 
Section 3. ARTICLE NOT EXCLUSIVE. The rights to
indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Article XV shall not be exclusive of any other right which any person may have or hereafter acquire under any
statute, provision of the certificate of incorporation, by-law, agreement, vote of stockholders or disinterested directors or otherwise. 
 
Section 4. INSURANCE. The Corporation may purchase and maintain insurance on its own behalf and on behalf of any person who is or was a
director, officer, employee, fiduciary, or agent of the Corporation or was serving at the request of the Corporation as a director, officer, employee or agent of another Corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against him or her and incurred by him or her in any such capacity, whether or not the Corporation would have the power to indemnify such person against such liability under this Article XV. 
 
Section 5. EXPENSES. Expenses incurred by any person described
in Section 1 of this Article XV in defending a proceeding shall be paid by the Corporation in advance of such proceeding’s final disposition upon receipt of any undertaking by or on behalf of the director or officer to repay such amount if it
shall ultimately be determined that he or she is not entitled to be indemnified by the Corporation. Such expenses incurred by other employees and agents may be so paid upon such terms and conditions, if any, as the Board deems appropriate.

 
Section 6. EMPLOYEES AND AGENTS. Persons who are
not covered by the foregoing provisions of this Article XV and who are or were employees or agents of the 

 

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Corporation, or who are or were serving at the request of the Corporation as employees or agents of another Corporation, partnership, joint
venture, trust or other enterprise, may be indemnified to the extent authorized at any time or from time to time by the Board. 
 
Section 7. CONTRACT RIGHTS. The provisions of this Article XV shall be deemed to be a contract right between the Corporation and each
director or officer who serves in any such capacity at any time while this Article XV and the relevant provisions of the General Corporation Law of the State of Delaware or other applicable law are in effect, and any repeal or modification of this
Article XV or any such law shall not affect any rights or obligations then existing with respect to any state of facts or proceeding then existing. 
 
Section 8. MERGER OR CONSOLIDATION. For purposes of this Article XV, references to “the Corporation” shall include, in addition
to the resulting Corporation, any constituent Corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its
directors, officers, and employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent Corporation, or is or was serving at the request of such constituent Corporation as a director, officer,
employee, fiduciary or agent of another Corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under this Article XV with respect to the resulting or surviving Corporation as he or she would have with
respect to such constituent Corporation if its separate existence had continued. 
 
Section 9. SEVERABILITY. Whenever possible, each provision of this Article XV shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Article
XV is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the other provisions of this Article XV. 
 

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