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Exhibit 10.9    
    

INDEMNITY AGREEMENT  

        THIS INDEMNITY AGREEMENT, dated as of August    , 2005, is made by and between Treehouse Partners Corporation, a Delaware corporation (the "Company"),
and [                        ] (the "Indemnitee"), an "Agent" (as hereinafter defined) of the Company. 

RECITALS  

        A.    The
Company recognizes that competent and experienced persons are increasingly reluctant to serve as directors and officers of corporations unless they are protected by
comprehensive liability insurance or indemnification, or both, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and due to the fact that the
exposure frequently bears no reasonable relationship to the compensation of such directors and officers; 

        B.    The
statutes and judicial decisions regarding the duties of directors and officers are often difficult to apply, ambiguous or conflicting, and therefore fail to provide
such directors and officers with adequate, reliable knowledge of legal risks to which they are exposed or information regarding the proper course of action to take; 

        C.    The
Company and Indemnitee recognize that plaintiffs often seek damages in such large amounts and the costs of litigation may be so enormous (whether or not the case is
meritorious), that the defense and/or settlement of such litigation is often beyond the personal resources of officers and directors; 

        D.    The
Company believes that it is unfair for its directors and officers and those serving other entities at the request of the Company to assume the risk of huge judgments
and other expenses which may occur in cases in which the director or officer received no personal profit and in cases where the director or officer acted in good faith; 

        E.    The
Company, after reasonable investigation, has determined that the liability insurance coverage presently available to the Company provides only limited protection and
may not continue to be available at acceptable premium rates. The Company believes that the interests of the Company and its stockholders would best be served by a combination of such insurance (to
the extent it remains reasonably available) and the indemnification by the Company of the directors and officers of the Company; 

        F.     Section 145
of the General Corporation Law of Delaware ("Section 145"), under which the Company is organized, empowers the Company to indemnify its
officers, directors, employees and agents by agreement and to indemnify persons who serve, at the request of the Company, as the directors, officers, employees or agents of other corporations or
enterprises, and expressly provides that the indemnification provisions of Section 145 are not exclusive; 

        G.    The
Board of Directors has determined that contractual indemnification as set forth herein is not only reasonable and prudent but necessary to promote the best interests
of the Company and its stockholders; 

        H.    The
Company desires and has requested the Indemnitee to serve or continue to serve the Company free from undue concern for claims for damages arising out of or related to
such services to the Company; and 

        I.     The
Indemnitee is willing to serve, or to continue to serve, the Company, provided that he or she is furnished the indemnity provided for herein. 

 

AGREEMENT  

        NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties hereto,
intending to be legally bound, hereby agree as follows: 

        1.    Definitions    

        (a)    Agent.    For purposes of this Agreement, "Agent" of the Company means any person (in all capacities in which
such person is acting, has acted and will act) who is or was a director, officer, employee, fiduciary or other agent of the Company or who is or was serving at the request of the Company as a
director, officer, employee, fiduciary, or agent of another corporation, partnership, joint venture, trust or other enterprise. 

        (b)    Change in Control.    For purposes of this Agreement, a "Change in Control" shall be deemed to have occurred if
(i) during any period of two (2) consecutive years after the date hereof, individuals who at the beginning of such period constitute the board of directors of the Company and any new
director whose election by the board of directors or nomination for election by the Company's stockholders was approved by a vote of a least two-thirds 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 thereof, or
(ii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the Voting
Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least
50% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, (iii) or the stockholders
of the Company approve a plan of complete liquidation and dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all the Company's assets;
provided, however, that a would-be Change in Control under (ii) herein which is approved and recommended in advance by the Company's board of directors shall not be deemed a Change
in Control. 

        (c)    Expenses.    For purposes of this Agreement, "Expenses" includes all direct and indirect costs of any type or
nature whatsoever (including, without limitation, attorneys' fees and related disbursements, other out-of-pocket costs and compensation for time spent by the Indemnitee for
which he or she is not otherwise compensated by the Company or any third party), incurred by the Indemnitee in connection with either (i) the investigation, defense or appeal of or being a
witness or otherwise participating in or preparing for a Proceeding or (ii) the establishment or enforcement of Indemnitee's right to indemnification under this Agreement, Section 145 or
otherwise, including judgments, fines and amounts paid in settlement by or on behalf of Indemnitee. 

        (d)    Other Enterprise.    For purposes of this Agreement, "other enterprise" shall include employee benefit plans;
references to "fines" shall include any excise tax assessed with respect to any employee benefit
plans; and references to "serving at the request of the Company" shall include any service as a director, officer, employee, fiduciary or agent of the Company which imposes duties on, or involves
services by, such director, officer, employee, fiduciary or agent with respect to an employee benefit plan, its participants, or beneficiaries. 

        (e)    Proceedings.    For the purposes of this Agreement, "Proceeding" means any investigation or any threatened,
pending or completed action, suit or other proceeding, whether civil, criminal, administrative, investigative or any other type whatsoever whether instituted by, or in the right of, the Company or by
any other person or entity to which an Agent was or is a party or a witness or 

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is
otherwise involved or is threatened to be made a party or a witness or to be otherwise involved by reason of the fact that he or she is or was an Agent of the Company. 

        (f)    Reviewing Party.    For purposes of this Agreement, "Reviewing Party" shall mean any appropriate person or body
consisting of a member or members of the Company's board of directors or any other person or body selected hereunder (including Special Independent Counsel defined below) who is not a party to the
particular Proceeding for which Indemnitee is seeking indemnification. If there has not been a Change in Control, the Reviewing Party shall be selected by the Company's board of directors. If there
has been a Change in Control, the Reviewing Party shall be Special Independent Counsel. 

        (g)    Special Independent Counsel.    For purposes of this Agreement, "Special Independent Counsel" shall mean
counsel selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld) and who has not, unless waived by the Company and Indemnitee, otherwise performed
services for the Company or Indemnitee within the last ten (10) years. The Company agrees to pay the reasonable fees of the Special Independent Counsel referred to above and to fully indemnify
such counsel against any and all expenses (including attorneys' fees), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 

        (h)    Voting Securities.    For purposes of this Agreement, "Voting Securities" shall mean any securities of the
Company which vote generally in the election of directors. 

        2.    Agreement to Serve.    The Indemnitee has served and agrees to continue to serve as an Agent of the Company, at
its will (or under separate agreement, if such agreement exists), in all capacities Indemnitee currently serves or will serve as an Agent of the Company, so long as he or she is duly appointed or
elected and qualified as such or until such time as he or she tenders his or her resignation in writing; provided, however, that nothing contained in this Agreement is intended to create any right to
continued employment of Indemnitee. 

        3.    Basic Indemnity.    

        (a)   The
Company shall indemnify the Indemnitee if the Indemnitee is or was a witness or a party to or is threatened to be made a party to or is otherwise involved in any
Proceeding brought by any person or entity to the fullest extent permitted by law as soon as practicable but in any event no later than fifteen (15) days after written demand is presented to
the Company, against any and all Expenses, judgments, fines, penalties and amounts paid or owing in settlement (including all interest, assessments and other charges paid or payable in connection with
or in respect of such Expenses, judgments, fines, penalties or amounts paid in settlement) of such Proceeding. 

        (b)   Notwithstanding
anything in this Agreement to the contrary, (i) Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with
any Proceeding (other than a claim for indemnification) initiated by Indemnitee against the Company or any director or officer of the Company unless the Company has joined in or consented to the
initiation of such Proceeding, (ii) the obligations of the Company under Section 3(a) shall be subject to the condition that the Reviewing Party shall not have determined in a writing
stating the reasons therefor that Indemnitee would not be permitted to be indemnified under applicable law, and (iii) the obligation of the Company to make an Expense Advance pursuant to
Section 6 shall be subject to the condition that, if, when and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so indemnified under applicable
law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has
commenced legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should 

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be
indemnified under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee
shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted
or lapsed). 

        (c)   If
the Reviewing Party determines that Indemnitee would not be permitted to be indemnified in whole or in part under applicable law (such determination to be made by the
Reviewing Party independent of any position of the Company on any aspect of the indemnification including but not limited to the appropriateness of the amount of any settlement), Indemnitee shall have
the right to commence litigation in any court, in the States of Delaware or New York or the State(s) of Indemnitee's residence or employment, having subject matter jurisdiction thereof, and in which
venue is proper, seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof, and the Company hereby consents to service of process
and to appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee. 

        (d)   In
addition, notwithstanding anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement: 

        (a)   on
account of any claim against Agent solely for an accounting of profits made from the purchase or sale by Agent of securities of the Company pursuant to the provisions
of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law; 

        (b)   on
account of Agent's conduct that is established by a final judgment as knowingly fraudulent or deliberately dishonest or that constituted willful misconduct; 

        (c)   on
account of Agent's conduct that is established by a final judgment as constituting a breach of Agent's duty of loyalty to the Company or resulting in any personal
profit or advantage to which Agent was not legally entitled; or 

        (d)   if
indemnification is not lawful (and, in this respect, both the Company and Agent have been advised that the Securities and Exchange Commission believes that
indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to
appropriate courts for adjudication). 

        4.    Indemnification at Option of the Company.    Notwithstanding any other provision of this Agreement, the Company
may, in specific cases, provide Indemnitee with full or partial indemnification if the Board of Directors finds it appropriate and such indemnification is not then prohibited by law. 

        5.    Partial Indemnity Etc.    If Indemnitee is entitled under any provision of this Agreement to indemnification by
the Company for some or a portion of the Expenses, judgments, fines, penalties and amounts paid in settlement of a Proceeding but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any Proceeding or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all
Expenses incurred in connection therewith. In connection with any determination by the Reviewing Party as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on
the Company to establish that Indemnitee is not so entitled. 

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        6.    Advancement of Expenses.    The Company shall advance all Expenses incurred by the Indemnitee in connection
with
the investigation, defense, settlement or appeal of any Proceeding for which the Indemnitee is entitled to indemnification hereunder (each an "Expense Advance"). Expense Advances to be made hereunder
shall be paid by the Company to or on behalf of the Indemnitee within fifteen (15) days following delivery of a written demand therefor by the Indemnitee to the Company. 

        7.    Notice and Other Indemnification Procedures.    

        (a)   Promptly
after receipt by the Indemnitee of notice of the commencement, or the threat of commencement, of any Proceeding, the Indemnitee shall, if the Indemnitee
believes that indemnification with respect thereto may be sought from the Company under this Agreement, notify the Company of the commencement or threat of commencement thereof. The failure to so
notify the Company shall not affect the Company's obligation to indemnify the Indemnitee otherwise than under this Agreement. 

        (b)   The
Company shall indemnify Indemnitee against any and all expenses (including attorneys' fees) and, if requested by Indemnitee, shall, within fifteen (15) days
of such request, advance such expenses to Indemnitee which are incurred by Indemnitee in connection with any claim asserted against or action brought by Indemnitee for indemnification hereunder or
advance payment of Expenses by the Company under this Agreement (or any other agreement or the Company's Certificate of Incorporation or By-Laws now or hereafter in effect) relating to
Proceedings, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance expense payment or insurance recovery, as the case may be. 

        (c)   For
purposes of this Agreement, the termination of any claim, action, suit or proceeding by judgment, order, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a
court has determined that indemnification is not permitted by applicable law. 

        8.    Insurance.    The Company may, but is not obligated to, obtain directors' and officers' liability insurance
("D&O Insurance") as may be or became available with respect to which the Indemnitee is named as an insured. Notwithstanding any other provision of this Agreement, the Company shall not be obligated
to indemnify the Indemnitee for expenses, judgments, fines or penalties which have been paid directly to the Indemnitee by D&O Insurance. If the Company has D&O Insurance in effect at the time the
Company receives from the Indemnitee any notice of the commencement of a Proceeding, the
Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the policy. The Company shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policy. 

        9.    Settlement.    The Company shall have no obligation under this Agreement to indemnify the Indemnitee for any
amounts paid in settlement of any Proceeding effected without the Company's prior written consent. The Company shall not settle any claim in which it takes the position that the Indemnitee is not
entitled to indemnification in connection with such settlement without the prior written consent of the Indemnitee, nor shall the Company settle any Proceeding in any manner which would impose any
fine or any obligation on the Indemnitee, without the Indemnitee's prior written consent. Neither the Company nor the Indemnitee shall unreasonably withhold such consent to any proposed settlement;
provided, however, that the Indemnitee shall not be obligated to consent to any proposed settlement unless in connection with such settlement the Indemnitee shall be fully released from all liability
with respect to the relevant Proceeding either because such Proceeding was settled without liability to the Indemnitee or, if the Indemnitee shall have any liability with respect to such 

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Proceeding,
the Indemnitee shall be fully indemnified hereunder from all Expenses resulting from such Proceeding and/or shall receive payment in the amount of such Expenses pursuant to D&O Insurance. 

        10.    Nonexclusivity.    The provisions for indemnification and advance of Expenses set forth in this Agreement shall
not be deemed exclusive of any other rights which the Indemnitee may have under any provision of law, the Company's Certificate of Incorporation (as amended or restated from time to time) or Bylaws,
in any court in which a proceeding is brought, the vote of the Company's stockholders or disinterested directors, other agreements or otherwise, both as to action in his or her official capacity and
to action in another capacity while an Agent of the Company, and the Indemnitee's rights hereunder shall continue after the Indemnitee has ceased acting as an Agent of the Company. To the extent that
a change in applicable law (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently, it is the intent of the parties hereto that the
Indemnitee shall enjoy by this Agreement the greater benefits afforded by such change. 

        11.    Subrogation.    In the event of payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of
such documents necessary to enable the Company effectively to bring suit to enforce such rights. 

        12.    Period of Limitations.    No legal action shall be brought and no cause of action shall be asserted (including
causes of action accruing prior to the date of this Agreement) by or on behalf of the Company or any affiliate of the Company against Indemnitee, Indemnitee's spouse, heirs, executors or personal or
legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company or its affiliate shall be extinguished and
deemed released unless asserted by the timely filing of a legal action within such
two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern. 

        13.    Termination.    This Agreement may be terminated by either party by giving the other three months' written
notice. The Indemnitee's discontinuance to serve as a director of the Company shall work an automatic termination of this Agreement. No termination of this Agreement, automatic or otherwise, shall
nullify any of the rights and obligations of either Indemnitee or the Company hereunder in respect of any matter occurring prior to the effective date of termination. 

        14.    Severability.    If any provision or provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever, the validity, legality and enforceability of the remaining provisions of the Agreement (including without limitation, all portions of any paragraphs of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby. 

        15.    Modification and Waiver.    No supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver. 

        16.    Successors and Assigns.    The terms of this Agreement shall bind, and shall inure to the benefit of, the
heirs, administrators, successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company)
and assigns of the parties hereto. 

        17.    Notice.    All notices, requests, demands and other communications under this Agreement shall be in writing and
shall be deemed duly given (i) if delivered by hand and receipted for by the party addressee, (ii) if mailed by certified or registered mail with postage prepaid, on the third business
day after the mailing date, or (iii) if by facsimile transmission, upon receipt of a clear transmission 

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report.
Addresses for notice to either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice. 

        18.    Governing Law.    This Agreement shall be governed by, and construed in accordance with, the internal laws of
the State of Delaware. 

        19.    Counterparts.    This Agreement may be executed in one or more counterparts, all of which shall be considered
one and the same Agreement. 

        20.    Exclusive Agreement.    Except as expressly set forth herein, this Agreement shall supersede and replace in its
entirety any prior written or oral agreement between the Company and the Indemnitee with regard to the subject matter hereof. 

[Signature Page Follows] 

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        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

	 	 	TREEHOUSE PARTNERS CORPORATION
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	Robert J. Majteles
	 	 	 	 	Title:	 	President
	

 	
 	

[                        ]
	

 	
 	

 

	 	 	Name:	 	 	 	 
	 	 	Address:	 	 	 	 

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QuickLinks

Exhibit 10.9Exhibit 10.1

 

2005 AMENDED AND RESTATED

STOCK PURCHASE AND OPTION PLAN

FOR ROCKWOOD HOLDINGS, INC. AND SUBSIDIARIES

 

1.                                       Purpose of Plan

 

This 2005 Amended and Restated Stock Purchase
and Option Plan for Rockwood Holdings, Inc. and Subsidiaries (formerly the
Amended and Restated 2003 Stock Purchase and Option Plan for Rockwood Holdings,
Inc., which was formerly the 2000 Stock Purchase and Option Plan for K-L
Holdings, Inc. and Subsidiaries) (the “Plan”) is designed:

 

(a)           to promote the long term financial interests and growth of
Rockwood Holdings, Inc. (the “Company”) and its subsidiaries by attracting and
retaining management personnel with the training, experience and ability to
enable them to make a substantial contribution to the success of the Company’s business;

 

(b)            to motivate management personnel by means of growth-related
incentives to achieve long range goals; and

 

(c)            to further the identity of interests of participants with
those of the shareholders of the Company through opportunities for increased
stock, or stock-based, ownership in the Company.

 

2.                                       Definitions

 

As used in the Plan, the following words
shall have the following meanings:

 

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

 

(b)           “Committee” means the Compensation Committee of the Board of
Directors (or, if no such committee is appointed, the Board of Directors).

 

(c)           “Common Stock” or “Share” means common stock of the Company
which may be authorized but unissued, or issued and reacquired.

 

(d)           “Director” means any member of the Board of Directors.

 

(e)           “Employee” means a person, including an officer, in the
regular full-time employment of the Company or one of its Subsidiaries.

 

(f)            “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

(g)           “Grant” means an award made to a Participant pursuant to the
Plan and described in Section 5, including, without limitation, an award of a
Stock Option, Restricted Stock, Purchase Stock, or Other Stock Based Grant or
any combination of the foregoing.

 

(h)           “Grant Agreement” means an agreement between the Company and
a Participant that sets forth the terms, conditions and limitations applicable
to a Grant.

 

 

(i)            “Participant” means an Employee,
Director, consultant or other person having a relationship with the Company or
one of its Subsidiaries, to whom one or more Grants have been made and such
Grants have not all been forfeited or terminated under the Plan.

 

(j)            “Stock-Based Grants” means the
collective reference to the grant of Purchase Stock, Restricted Stock and Other
Stock Based Grants described in Section 5.

 

(k)           “Stock Options” means options to purchase Common Stock,
which may or may not be incentive stock options (“Incentive Stock Options”)
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

(l)            “Subsidiary” means any entity
other than the Company in an unbroken chain of entities beginning with the
Company if each of the entities other than the last entity in the unbroken
chain owns 50% or more of the voting stock or other voting interests in one of
the other entities in such chain.

 

3.                                       Administration of Plan

 

(a)           The Plan shall be administered by the Committee.  All of the members of the Committee and any
other Directors shall be eligible to be selected for Grants under the Plan; provided, however, that the members of the
Committee shall qualify to administer the Plan for purposes of Rule 16b-3 (and
any other applicable rule) promulgated under Section 16(b) of the Exchange Act
to the extent that the Company is subject to such rule.  The Committee may adopt its own rules of
procedure, and the action of a majority of the Committee, taken at a meeting or
taken without a meeting by a writing signed by such majority, shall constitute
action by the Committee.  The Committee
shall have the power and authority to administer, construe and interpret the
Plan, to make rules for carrying it out and to make changes in such rules.  Any such interpretations, rules, and
administration shall be consistent with the basic purposes of the Plan.

 

(b)           The Committee may delegate to the Chief Executive Officer
and to other senior officers of the Company its duties under the Plan subject
to such conditions and limitations as the Committee shall prescribe except that
only the Committee may designate and make Grants to Participants who are
subject to Section 16 of the Exchange Act.

 

(c)           The Committee may employ attorneys, consultants,
accountants, appraisers, brokers or other persons.  The Committee, the Company, and the officers
and Directors of the Company shall be entitled to rely upon the advice,
opinions or valuations of any such persons. 
All actions taken and all interpretations and determinations made by the
Committee in good faith shall be final and binding upon all Participants, the Company
and all other interested persons.  No
member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or
the Grants, and all members of the Committee shall be fully protected by the
Company with respect to any such action, determination or interpretation.

 

4.                                       Eligibility

 

The Committee may from time to time make
Grants under the Plan to such Employees, Directors or other persons having a
relationship with the Company or any of its

 

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Subsidiaries, and in such form and having
such terms, conditions and limitations as the Committee may determine.  Grants may be granted singly, in combination
or in tandem.  The terms, conditions and
limitations of each Grant under the Plan shall be set forth in a Grant
Agreement, in a form approved by the Committee, consistent, however, with the
terms of the Plan.

 

5.                                       Grants

 

From time to time, the Committee will
determine the forms and amounts of Grants for Participants.  Such Grants may take the following forms in
the Committee’s sole discretion:

 

(a)           Stock Options - These are options to purchase
Common Stock, which may or may not be Incentive Stock Options and shall have an
exercise price at least equal to the fair market value of one share of Common
Stock on the date of Grant (or, if the person to whom an Incentive Stock Option
is being granted owns Common Stock representing more than 10 percent of the
voting power of all classes of Company equity, the exercise price shall be at
least equal to 110 percent of the fair market value of one share of Common
Stock on the date of Grant). At the time of the Grant the Committee shall
determine, and shall have contained in the Grant Agreement or other Plan rules,
the option exercise period, the option price, and such other conditions or
restrictions on the grant or exercise of the option as the Committee deems
appropriate, which may include the requirement that the grant of options is
predicated on the acquisition of Purchase Shares under Section 5(c) by the
Participant or as may be required pursuant to applicable law, if such options
shall be Incentive Stock Options. 
Payment of the option exercise price shall be made in cash or in shares
of Common Stock (provided,
that such Shares have been held by the Participant for not less than six months
(or such other period as established by the Committee from time to time)), or a
combination thereof, in accordance with the terms of the Plan, the Grant
Agreement and any applicable guidelines of the Committee in effect at the time.

 

(b)           Restricted Stock - Restricted Stock is Common
Stock delivered to a Participant with or without payment of consideration with
restrictions or conditions on the Participant’s right to transfer or sell such
stock.  The number of shares of
Restricted Stock and the restrictions or conditions on such shares shall be as
the Committee determines, in the Grant Agreement or by other Plan rules, and
the certificate for the Restricted Stock shall bear evidence of such
restrictions or conditions.

 

(c)           Purchase Stock - Purchase Stock refers to
shares of Common Stock offered to a Participant at such price as determined by
the Committee, the acquisition of which may make him eligible to receive under
the Plan, among other things, Stock Options.

 

(d)           Other Stock-Based Grants - The Committee may make other
Grants under the Plan pursuant to which shares of Common Stock or other equity
securities of the Company are or may in the future be acquired, or Grants
denominated in stock units, including ones valued using measures other than
market value of the Common Stock.  Other
Stock-Based Grants may be granted with or without consideration.

 

3

 

6.                                       Limitations and Conditions

 

(a)           Subject to Section 8 hereof, the number of Shares available
for Grants under this Plan shall be 10,000,000 shares of the authorized Common
Stock as of the effective date of the Plan. 
The number of Shares subject to Grants made under this Plan to any one
Participant in any one calendar year shall not be more than $20 million worth
of the Shares.  Unless restricted by
applicable law, Shares related to Grants that are forfeited, terminated,
cancelled or expire unexercised, shall immediately become available for new
Grants.

 

(b)           No Grants shall be made under the Plan beyond ten years
after the effective date of the Plan, but the terms of Grants made on or before
the expiration of the Plan may extend beyond such expiration.  At the time a Grant is made or amended or the
terms or conditions of a Grant are changed, the Committee may provide for
limitations or conditions on such Grant.

 

(c)           Nothing contained herein shall affect the right of the
Company to terminate any Participant’s employment at any time or for any
reason.

 

(d)           Deferrals of Grant payouts may be provided for, at the sole
discretion of the Committee, in the Grant Agreements, but only to the extent
such deferral satisfies the requirements of Section 409A of the Code.

 

(e)           Except as otherwise prescribed by the Committee, the amounts
of the Grants for any employee of a Subsidiary, along with interest, dividend,
and other expenses accrued on deferred Grants shall be charged to the
Participant’s employer during the period for which the Grant is made.  If the Participant is employed by more than
one Subsidiary or by both the Company and a Subsidiary during the period for
which the Grant is made, the Participant’s Grant and related expenses will be
allocated between the companies employing the Participant in a manner
prescribed by the Committee.

 

(f)            Other than as specifically
provided pursuant to a Grant Agreement or other related agreement between a
Participant and the Company, no benefit under the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to do so shall be void.  No such benefit shall, prior to receipt
thereof by the Participant, be in any manner liable for or subject to the
debts, contracts, liabilities, engagements, or torts of the Participant.

 

(g)           Participants shall not be, and shall not have any of the
rights or privileges of, shareholders of the Company in respect of any Shares
purchasable in connection with any Grant unless and until certificates
representing any such Shares have been issued by the Company to (or book entry
representing such Shares has been made and such Shares have been deposited with
the appropriate registered book – entry custodian for the benefit of) such
Participants.

 

(h)           No election as to benefits or exercise of Stock Options or
other rights may be made during a Participant’s lifetime by anyone other than
the Participant except by a legal representative appointed for or by the
Participant.

 

4

 

(i)            Absent express provisions to the
contrary, any grant under this Plan shall not be deemed compensation for
purposes of computing benefits or contributions under any retirement plan of
the Company or its Subsidiaries and shall not affect any benefits under any
other benefit plan of any kind now or subsequently in effect under which the
availability or amount of benefits is related to level of compensation.  This Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended.

 

(j)            Unless the Committee determines
otherwise, no benefit or promise under the Plan shall be secured by any
specific assets of the Company or any of its Subsidiaries, nor shall any assets
of the Company or any of its Subsidiaries be designated as attributable or
allocated to the satisfaction of the Company’s obligations under the Plan.

 

7.                                       Transfers and Leaves of Absence

 

For purposes of the Plan, unless the
Committee determines otherwise:  (a)  a transfer of a Participant’s employment
without an intervening period of separation among the Company and any
Subsidiary shall not be deemed a termination of employment, and (b) a
Participant who is granted in writing a leave of absence shall be deemed to
have remained in the employ of the Company during such leave of absence.

 

8.                                       Adjustments

 

In the event of any change in the outstanding
Common Stock by reason of a stock split, spin-off, stock dividend, stock
combination or reclassification, recapitalization or merger, change of control,
or similar event, the Committee shall adjust appropriately the number of Shares
subject to the Plan and available for or covered by Grants and Share prices
related to outstanding Grants to the extent necessary, and may make such other
revisions to outstanding Grants as it deems are equitably required including,
without limitation, in an event that is not a change of control, providing for
the payment of a dividend in respect of the Shares subject to any outstanding
Grants, in all events in order to allow Participants to participate in such
event in an equitable manner.

 

9.                                       Merger,
Consolidation, Exchange, Acquisition, Liquidation or Dissolution

 

In its absolute discretion, and on such terms
and conditions as it deems appropriate, coincident with or after the grant of
any Stock Option or any Stock-Based Grant, the Committee may provide that such
Stock Option or Stock-Based Grant cannot be exercised after the merger or
consolidation of the Company into another company, the exchange of all or
substantially all of the assets of the Company for the securities of another
company, the acquisition by another company of 80% or more of the Company’s
then outstanding shares of voting stock or the recapitalization,
reclassification, liquidation or dissolution of the Company, and if the
Committee so provides, it shall, on such terms and conditions as it deems
appropriate in its absolute discretion, also provide, either by the terms of
such Stock Option or Stock-Based Grant or by a resolution adopted prior to the
occurrence of such merger, consolidation, exchange, acquisition,
recapitalization, reclassification, liquidation or dissolution, that, for some
period of time prior to such event, such Stock Option or Stock-Based Grant
shall be exercisable as to all shares subject thereto, notwithstanding anything
to the contrary herein (but subject to the provisions of Section 6(b) and that,
upon the occurrence of such event, such Stock Option or

 

5

 

Stock-Based Grant shall terminate and be of
no further force or effect; provided, however, that the Committee may also
provide, in its absolute discretion, that even if the Stock Option or
Stock-Based Grant shall remain exercisable after any such event, from and after
such event, any such Stock Option or Stock-Based Grant shall be exercisable
only for the kind and amount of securities and/or other property, or the cash
equivalent thereof, receivable as a result of such event by the holder of a
number of shares of stock for which such Stock Option or Stock-Based Grant
could have been exercised immediately prior to such event.

 

10.                                 Amendment and Termination

 

The Committee shall have the authority to
make such amendments to any terms and conditions applicable to outstanding
Grants as are consistent with this Plan provided that, except for adjustments
under Section 8 or 9 hereof, (a) no such action shall modify such Grant in a
manner adverse to the Participant without the Participant’s consent except as
such modification is provided for or contemplated in the terms of the Grant and
(b) no such action may provide for an increase in the number of Shares to be
made available for issuance under this Plan without obtaining approval by the
Shareholders of such increase.  The Board
of Directors may amend, suspend or terminate the Plan.

 

11.                                 Foreign Options and Rights

 

The Committee may make Grants to Employees
who are subject to the laws of nations other than the United States, which
Grants may have terms and conditions that differ from the terms thereof as
provided elsewhere in the Plan for the purpose of complying with foreign laws.

 

12.                                 Withholding Taxes

 

The Company shall have the right to deduct
from any cash payment made under the Plan any federal, state or local income or
other taxes required by law to be withheld with respect to such payment.  It shall be a condition to the obligation of
the Company to deliver shares upon the exercise of an Option, upon delivery of
Restricted Stock or upon exercise, settlement or payment of any Other
Stock-Based Grant that the Participant pay to the Company such amount as may be
requested by the Company for the purpose of satisfying any liability for such
withholding taxes.  Any Grant Agreement
may provide that the Participant may elect, in accordance with any conditions
set forth in such Grant Agreement, to pay a portion or all of such minimum
withholding taxes in shares of Common Stock.

 

13.                                 Effective Date and Termination
Dates

 

The Plan shall be effective on and as of the
date of its original approval by the Board of Directors of the Company and
shall be approved by a majority of the shareholders of the Company, and shall
terminate ten years thereafter, subject to earlier termination by the Board of
Directors pursuant to Sections 9 and 10.

 

Effective Date of adoption of Plan:  November 20, 2000.

Effective Date of amendment and restatement
of Plan:  June 9, 2003

 

6

 

Effective Date of amendment of Plan:  September 1, 2004

Effective Date of second amendment of
Plan:  July 18, 2005

Effective Date of amendment and restatement
of Plan:  July 29, 2005

 

7

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