Document:

EXHIBIT 10.1

                              SETTLEMENT AGREEMENT
                              --------------------

            THIS SETTLEMENT AGREEMENT (the "Agreement") is made and entered into
as of the 2nd day of February, 2003, by and between ANDY STENZLER ("Executive")
and COSI, INC. a Delaware corporation (the "Company").

                              STATEMENT OF PURPOSE

            Executive is employed as Chairman and Chief Executive Officer of the
Company pursuant to an Employment Agreement between the parties dated as of
January 1, 2002 (the "Employment Agreement"). Executive's employment with the
Company will cease effective as of January 31, 2003 (the "Date of Termination").
The Company and Executive wish to settle in full all matters and claims,
contractual and non-contractual, relating to Executive's employment with the
Company.

            NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

            1.  Termination of Employment: Termination Payments. The Company and
Executive acknowledge that Executive shall serve as an officer of the Company
and shall remain on the Company's payroll and receive basic salary at his
current annual rate through the Date of Termination at which date Executive will
terminate his employment with the Company. This Settlement Agreement supercedes
and replaces the Employment Agreement entered into between the parties.
Executive shall receive the payments as provided in Exhibit A to this Agreement
including but not limited to (i) his current annual base salary of $350,000 and
non-incentive compensation (including automobile allowance) and the Executive's
then current benefits for two years; and (ii) $350,000 constituting an amount
equal to two times the Executive's cash bonus calculated at 50% of his current
annual base salary which shall be paid in equal bi-weekly installments over such
two year period. The latter payment is full and final satisfaction of all the
Company's obligations for bonus and/or other incentive payments. If Company
fails to make payment of two bi-weekly installments within 15 days of the date
when due, the entire balance remaining becomes due and owing at that time.

            Notwithstanding the foregoing, the Company may cease payment of any
amounts that would otherwise have been due under this Agreement if there has
been a finding by a Court or Arbitrator that Executive has materially breached
Sections 7, 8 or 9 of this Agreement to the detriment of the Company. Prior to
filing in court or submitting to arbitration, the Company must provide the
Executive with written notice setting forth the Board's reasonable, good faith,
belief that Executive has breached, together with substantial proof upon which
the Board reached such determination, and the Executive must fail to use
reasonable best efforts to take corrective action to cure such alleged breach
within 30 days of his receipt of such notice. Further, the Company shall be
entitled to seek an injunction restraining Executive from any in violation of
Sections 7, 8 or 9 of this Agreement, to obtain such equitable relief or to
pursue any other available remedies for such violation or threatened violation,
including recovery of damages from Executive.

            2.  Stock and Stock Options. Executive has been awarded the stock
options set forth on Exhibit B hereto (collectively, the "Stock Options").
Notwithstanding the terms of any Stock Option Agreement or the Plan pursuant to
which any such option was granted, all Stock Options shall become 100% vested as
of the Date of Termination and each such option shall not be subject to
accelerated exercise requirements or early termination provisions and shall
remain exercisable for a two year period from the Date of Termination. Further,
all Stock Options shall be exercisable by the Executive on a "cashless exercise
basis."

            Pursuant to an agreement of even date, attached as Exhibit C hereto,
232,652 shares of stock are to be purchased by certain affiliates of Directors
of the Company from Executive. Upon receipt of the funds for the stock purchase,
Executive shall repay advances from the Company of $112,500 plus interest
accrued through such date at which time the Executive's obligations with respect
thereto shall be satisfied in full and the Company acknowledges that, except
that set forth below, Executive has no loans or indebtedness due to the Company.

            The Executive and the Company agree that the promissory note dated
April 28, 1998 executed in connection with the Executive Stock Agreement of even
date therewith shall not mature until April 28, 2005 or earlier if Executive
files for bankruptcy, insolvency or petition for relief (whether voluntary or
involuntary) under any bankruptcy or insolvency law. The parties agree to enter
into such other documents as are reasonably necessary to effectuate the
foregoing.

            3.  Other Benefits. Executive is a participant in certain benefit
plans of the Company. This Agreement shall not change the terms of such plans or
the benefits earned by or due to Executive thereunder for services rendered to
the Company through the Date of Termination. The benefits earned by or due to
Executive in accordance with the terms of such plans shall be paid or provided
by the Company or such plans (as the case may be) when due (whether such due
date is on, before or after the Date of Termination), and full payments and
provision of benefits shall discharge fully all obligations of the Company and
such plans with respect to Executive's benefits under such plans. The Company
agrees to pay Executive for all outstanding expenses in accordance with the
Company's policies. The Company further agrees to cause Executive's name to be
removed as individual obligor on any indebtedness of the Company, including all
leases, real property and equipment. Proof of compliance of this section will be
provided to Executive within 30 days of the execution of this Agreement.

            4.  Tax Withholding and Reporting. The Company shall be entitled to
withhold from the benefits and payment described herein all income and
employment taxes required to be withheld by applicable law.

            5.  Release of the Company. Executive, on behalf of himself and his
heirs, personal representatives, successors and assigns, hereby releases and
forever discharges the Company, its affiliates, and each and every one of their
respective present and former directors, officers, employees, agents, successors
and assigns from and against any and all claims, demands, damages, actions,
causes of action, costs and expenses, which Executive now has, may ever have had
or may have hereafter upon or by reason of any matter, cause or thing occurring,
done or omitted to be done prior to the date of this Agreement, that constitute
"Employment-Related Claims" or rights and claims Executive has or might have
under the Worker Adjustment and Retraining Notification Act, the Age
Discrimination in Employment Act of 1967, as amended ("ADEA"), Title VII of the
Civil Rights Act of 1964, as amended, and the Americans with Disabilities Act of
1990, as amended; provided, however, that this release shall not apply to any
claims which Executive may have for the payments or provision of the benefits
under this Agreement, or under any agreements, plans, contracts, documents or
programs described or referenced in this Agreement, including the Exhibits
hereto, that this release shall not apply to any rights Executive may have to
obtain contribution in the event of the entry of judgment against him as a
result of any act or failure to act for which both Executive and the Company are
jointly responsible. For purposes of this Agreement, "Employment-Related Claims"
means all rights and claims Executive has or may have related to his employment
by or status as an employee, officer or director of the Company or any of its
affiliates or to the termination of that employment or status or to any
employment practices and policies of the Company or its affiliates.

            Executive acknowledges and agrees that he has read this release in
its entirety and that this release is a general release of all known and unknown
claims, including rights and claims arising under ADEA.

            6.  Indemnification. The Company agrees that if Executive is made a
party, or is threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a "Proceeding"), by
reason of the fact (1) that he was a director, officer or employee of the
Company or was serving at the request of the Company as director, officer,
member, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, or (2) that he was a personal obligor on any indebtedness of the Company
including leases, whether or not the basis of such Proceeding is Executive's
alleged action in an official capacity while serving as director, officer,
member, employee or agent, Executive shall be indemnified and held harmless by
the Company to the fullest extent permitted or authorized by the Company's
certificate of incorporation and bylaws or, if greater, by the laws of the State
of New York, against all cost, expense, liability and loss (including without
limitation, attorney's fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered by
Executive in connection therewith, and such indemnification shall continue as to
Executive even though he has ceased to be a director, member, employee or agent
of the Company or other entity and shall inure to the benefit of Executive's
heirs, executors and administrators. The Company shall advance to Executive all
reasonable costs and expenses, including attorneys' fees, incurred by him in
connection with a Proceeding within 20 days after receipt by the Company of a
written request for such advance. Such request shall include an undertaking by
Executive to repay the amount of such advance if it shall ultimately be
determined that he is not entitled to be indemnified against such costs and
expenses.

            7.  Mutual Nondisparagement/Cooperation. Executive shall not
intentionally make any public statements, encourage others to make statements or
release information intended to disparage or defame the Company or any of its
respective directors or officers. The Company shall not intentionally make any
public statements, encourage others to make statements or release information
intended to disparage or defame Executive's reputation. Notwithstanding the
foregoing, nothing in this Paragraph 7 shall prohibit any person from making
truthful statements when required by order of a court or other body having
jurisdiction. Nothing herein shall preclude Executive from describing his work
at Cosi in connection with his obtaining future employment. The Executive agrees
to cooperate with respect to any claim, arbitral hearing, lawsuit, action or
governmental investigation relating to the conduct of the business of the
Company or its affiliates. The Executive agrees to provide full and complete
disclosure in response to any inquiry in connection with any such matters. The
Company agrees to reimburse the Executive for his reasonable expenses incurred
in connection with such cooperation.

            8.  Non-Competition. The Executive agrees that, without the written
consent of the Company, which consent shall not unreasonably be withheld,
delayed or conditioned, that for a period of twenty-four months following the
Termination Date, Executive shall not directly or indirectly, personally or with
other employees, agents or otherwise, or on behalf of any other person, firm, or
corporation, engage in any restaurant, bar, coffee shop or similar business
establishment in which a majority of revenues are derived from retail sales of
sandwiches and non-alcoholic beverages (any of the foregoing, a "Competitive
Business") within a 25 mile radius of any place of business of the Company
(including franchised operations) or of any place where the Company (or one of
its franchised operations) has done business since the Effective Date of this
Agreement. Notwithstanding the above, ownership by Executive of an interest in
any licensed franchisee of the Company shall not be deemed to be in violation of
this Section 8.

            9.  Non-Solicitation of Employees. The Executive agrees that for a
period of twenty-four months following the Termination Date, Executive shall not
on his own behalf or on behalf of any other person, firm, partnership,
association, corporation, or business organization, entity or enterprise call
on, solicit or attempt to induce any other officer or employee of the Company or
its affiliates or licensed franchisees to terminate his or her employment with
the Company or its affiliates or licensed franchisees and shall not assist any
other person or entity in such a solicitation unless such employee is terminated
by the Company. If the Executive is found to have hired, during the
aforementioned twenty-four months following the Termination Date, any employee
(i) whose immediately preceding Employer was the Company, and (ii) who
voluntarily terminated his or her employment with the Company, then the
Executive shall be presumed to have engaged in soliciting that employee to
terminate his or her employment with the Company. The Company acknowledges that
this Section does not apply to Pam Palladino and that Executive is not
restrained from hiring her at any time.

            10.  Resolution of Disputes. Any disputes arising under or in
connection with this Agreement shall be resolved by binding arbitration, to be
held in New York, New York in accordance with the rules and procedures of the
American Arbitration Association. Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof. Costs of
the arbitration or litigation, including, without limitation, attorneys' fees of
both parties, shall be borne by the Company and the Executive in proportion to
their respective net worths on the date of execution of this Agreement. Pending
the resolution of any arbitration or court proceeding, the Company shall
continue payment of all amounts due Executive under this Agreement and all
benefits to which Executive is entitled at the time the dispute arises.

            11.  Confidentiality. During the Period of Employment and following
termination for any reason, the Executive covenants and agrees that he will not
divulge any trade secrets or other confidential information pertaining to the
business of the Company. The term "confidential information" as used in this
Agreement shall mean any secret, confidential or proprietary information of the
Company or its affiliates, other than those which have become generally known to
the public other than through the act of Executive in breach of this Section 9.
The term "trade secrets" as used in this Agreement shall mean information,
including but not limited to technical or non-technical data, a formula, a
pattern, a compilation, a program, a device, a method, a technique, a drawing, a
recipe, a process, financial data, financial plans, product plans, or a list of
actual or potential customers or suppliers that:

            (a) derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by other
persons who can obtain economic value from its disclosure or use, and

            (b) is the subject of reasonable efforts by the Company to maintain
its secrecy.

            The Company's rights under this Section 11 shall be in addition to,
and not in lieu of, any rights the Company might have under applicable state
law.

            12. Notices. All notices, requests, demands or other communications
under this Agreement will be in writing and shall be deemed to have been duly
given when delivered in person or deposited in the United States mail, postage
prepaid, by registered or certified mail, return receipt requested, to the party
to whom such notice is being given as follows:

            As to Executive:

                  Andy Stenzler
                  303 East 57th Street, Apt. 28G
                  New York, New York 10022

            With a copy to:

                  Anne C. Vladeck, Esq.
                  Vladeck, Waldman, Elias & Engelhard, P.C.
                  1501 Broadway, Suite 800
                  New York, New York 10036

            As to the Company:

                  Cosi
                  242 West 36th Street
                  New York, New York 10038
                  Attention:  Chairman

Either party may change his or its address or the name of the person to whose
attention the notice or other communication shall be directed from time to time
by serving notice thereof upon the other party as provided herein.

            13. Miscellaneous. This Agreement, and the rights and obligations of
the parties hereto, shall be governed by and construed in accordance with the
laws of the State of New York, without regard to principles of conflicts of
laws. If any provision hereof is unenforceable, such provision shall be fully
severable, and this Agreement shall be construed and enforced as if such
unenforceable provision had never comprised a part hereof, the remaining
provisions hereof shall remain in full force and effect, and the court
construing the Agreement shall add as a part hereof a provision as similar in
terms and effect to such unenforceable provision as may be enforceable, in lieu
of the unenforceable provision. This Agreement, the attachments to it and the
agreements, plans, contracts, documents and programs described or referenced
herein, contain the entire agreement between the Company and Executive, and
supersede and invalidate any previous agreements or contracts not so described
or referenced herein. No representations, inducements, promises or agreements,
oral or otherwise, which are not embodied herein, shall be of any force or
effect. As used in this Agreement, the term "affiliate" means a corporation
which is a member of the same controlled group of corporations (within the
meaning of Section 1563(a) of the Code) as the Company. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, personal representatives, successors and assigns.

            14. Company Property. (a) Executive upon the termination of
Executive's employment for any reason, if earlier, upon Company request shall
promptly return all Property (as defined in Section 14(b)) which had been
entrusted or made available to Executive by the Company and, if any copy of any
such Property was made by, or for, Executive, each and every copy of such
Property.

            (b) The term "Property" means records, files memoranda, tapes,
computer disks, reports, price lists, customer lists, drawings, plans, sketches,
keys, computer hardware and software, cellular telephones, credit cards, access
cards, identification cards, palm pilots and the like, Company cars and other
real or personal property of any kind or description.

            15. Representations of the Company. The Company represents and
warrants to Executive that the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby have been
fully and validly authorized on behalf of the Company by its Board of Directors
and that all corporate action required to be taken by the Company for the
execution, delivery and performance of this Agreement has been duly and
effectively taken. The Company acknowledges that Executive has relied upon such
representations and warranties in entering into this Agreement. The Company
represents and warrants to Executive that it has no knowledge or information of
Executive breaching any agreement, rule or law, and further represents that
Company has no knowledge of any claim or potential claim against Executive.

            16. Counterparts. This Agreement may be executed in separate
counterparts (any one of which may be by facsimile), each of which will be
deemed to be an original and all of which taken together will constitute one and
the same agreement.
<PAGE>

            IN WITNESS WHEREOF, Executive has hereunto set his hand and the
Company has caused this Agreement to be executed by its duly authorized
representative, all as of the date first above written.

Witness:

/s/ Anne Weadedi                           /s/ Andy Stenzler
-----------------------------              -----------------------------------
                                           Andy Stenzler

                                           COSI, INC.

                                           By: /s/ Jay Wainwright
                                              --------------------------------CAMDEN NATIONAL CORPORATION 2003 STOCK OPTION PLAN & INCENTIVE PLAN

EXHIBIT 10.12 
 
CAMDEN NATIONAL CORPORATION 
2003 STOCK OPTION AND INCENTIVE PLAN 
 
SECTION 1: GENERAL PURPOSE OF THE PLAN; DEFINITIONS 
 
The name of the plan is the Camden National Corporation 2003
Stock Option and Incentive Plan (the “Plan”). The purpose of the Plan is to encourage and enable the officers, employees, Independent Directors and other key persons (including consultants) of Camden National Corporation (the
“Company”) and its Subsidiaries upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated that providing such
persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with
the Company. 
 
The following terms shall be
defined as set forth below: 
 
“Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 
 
“Administrator” is defined in Section 2(a). 
 
“Award” or “Awards,” except where referring to a particular
category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Deferred Stock Awards, Restricted Stock Awards, Unrestricted Stock Awards, Performance Share Awards and Dividend
Equivalent Rights. 
 
“Board” means the Board of Directors of the Company. 
 
“Change of Control” is defined in Section 17. 
 
“Code” means the Internal
Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 
 
“Committee” means the Committee of the Board referred to in Section 2. 
 
“Covered Employee” means an
employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code. 
 
“Deferred Stock Award” means Awards granted pursuant to Section 8. 
 
“Dividend Equivalent Right”
means Awards granted pursuant to Section 12. 
 
“Effective Date” means the date on which the Plan is approved by stockholders as set forth in Section 19. 
 
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder. 
 
“Fair
Market Value” of the Stock on any given date means the fair market value of the Stock determined in good faith by the Administrator; provided, however, that if the Stock is admitted to quotation on the National Association of Securities
Dealers Automated Quotation System (“NASDAQ”), NASDAQ National System or a national securities exchange, the determination shall be made by reference to market quotations. If there are no market quotations for such date, the determination
shall be made by reference to the last date preceding such date for which there are market quotations. 
 
“Incentive Stock Option” means any Stock Option designated and qualified as an “incentive stock
option” as defined in Section 422 of the Code. 
 

 
“Independent Director” means a member of the Board who is not also an employee of the Company or any Subsidiary. 
 
“Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
 
“Option” or “Stock
Option” means any option to purchase shares of Stock granted pursuant to Section 5. 
 
“Performance Share Award” means Awards granted pursuant to Section 10. 
 
“Performance Cycle” means
one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more performance criteria will be measured for the purpose of determining a grantee’s right to
and the payment of a Performance Share Award, Restricted Stock Award or Deferred Stock Award. 
 
“Restricted Stock Award” means Awards granted pursuant to Section 7. 
 
“Stock” means the Common
Stock, no par value, of the Company, subject to adjustments pursuant to Section 3. 
 
“Stock Appreciation Right” means any Award granted pursuant to Section 6. 
 
“Subsidiary” means any
corporation or other entity (other than the Company) in which the Company has a controlling interest, either directly or indirectly. 
 
“Unrestricted Stock Award” means any Award granted pursuant to Section 9. 
 
SECTION 2: ADMINISTRATION OF PLAN;
ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS 
 
(a) Committee. The Plan shall be administered by either the Board or a committee of not less than two Independent Directors (in either case, the “Administrator”). 
 
(b) Powers of Administrator. The
Administrator shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority: 
 
(i) to select the individuals to whom Awards may from time to time be granted; 
 
(ii) to determine the time or times of grant,
and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock Awards, Performance Share Awards and Dividend Equivalent Rights, or any
combination of the foregoing, granted to any one or more grantees; 
 
(iii) to determine the number of shares of Stock to be covered by any Award; 
 
(iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the
terms of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 
 
(v) to accelerate at any time the exercisability or vesting of all or any portion of any
Award; 
 
(vi) subject to the
provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; 
 
(vii) to determine at any time whether, to what extent, and under what circumstances distribution or the receipt of Stock
and other amounts payable with respect to an Award shall be deferred 

 

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either automatically or at the election of the grantee and whether and to what extent the Company shall pay or credit amounts constituting
interest (at rates determined by the Administrator) or dividends or deemed dividends on such deferrals; and 
 
(viii) at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for
its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 
 
All decisions and interpretations of the Administrator shall be binding on all persons, including the Company and Plan
grantees. 
 
(c) Delegation of
Authority to Grant Awards. The Administrator, in its discretion, may delegate to the Chief Executive Officer of the Company all or part of the Administrator’s authority and duties with respect to the granting of Awards at Fair Market Value, to
individuals who are not subject to the reporting and other provisions of Section 16 of the Exchange Act or “covered employees” within the meaning of Section 162(m) of the Code. Any such delegation by the Administrator shall include a
limitation as to the amount of Awards that may be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price of any Stock Option or Stock Appreciation Right, the conversion ratio or price
of other Awards and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Administrator’s delegate or delegates that were consistent with
the terms of the Plan. 
 
(d)
Indemnification. Neither the Board nor the Committee, nor any member of either or any delegatee thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the
members of the Board and the Committee (and any delegatee thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable
attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under any directors’ and officers’ liability insurance coverage which may be in effect from time to time. 
 
SECTION 3: STOCK ISSUABLE UNDER THE
PLAN; MERGERS; SUBSTITUTION 
 
(a) Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 800,000 shares, subject to adjustment as provided in Section 3(b); provided that not more than 200,000 shares shall
be issued in the form of Unrestricted Stock Awards, Restricted Stock Awards, or Performance Share Awards except to the extent such Awards are granted in lieu of cash compensation or fees. For purposes of this limitation, the shares of Stock
underlying any Awards which are forfeited, canceled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the
Plan. Subject to such overall limitation, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that Stock Options or Stock Appreciation Rights with respect to no more than 30,000 shares
of Stock may be granted to any one individual grantee during any one calendar year period. The shares available for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company and held in its
treasury. 
 
(b) Changes in Stock.
Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock
are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with
respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for a different
number or kind of securities of the Company or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the
Plan, including the maximum number of shares that may be issued in the form of Unrestricted Stock Awards, Restricted Stock Awards or Performance Share Awards, (ii) the number of Stock Options or Stock Appreciation 

 

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Rights that can be granted to any one individual grantee and the maximum number of shares that may be granted under a Performance-based
Award, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price per share subject to each outstanding Restricted Stock Award, and (v) the price for each share subject to
any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock
Options and Stock Appreciation Rights remain exercisable. The adjustment by the Administrator shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the
Administrator in its discretion may make a cash payment in lieu of fractional shares. 
 
The Administrator may also adjust the number of shares subject to outstanding Awards and the exercise price and the terms
of outstanding Awards to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or dispositions of stock or property or any other event if it is determined by the Administrator that such
adjustment is appropriate to avoid distortion in the operation of the Plan, provided that no such adjustment shall be made in the case of an Incentive Stock Option, without the consent of the grantee, if it would constitute a modification, extension
or renewal of the Option within the meaning of Section 424(h) of the Code. 
 
(c) Mergers and Other Transactions. In the case of and subject to the consummation of (i) the dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets of the
Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for a different kind of securities of the successor entity and
the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or (iv) the sale of all
of the Stock of the Company to an unrelated person or entity (in each case, a “Sale Event”), all Options and Stock Appreciation Rights that are not exercisable immediately prior to the effective time of the Sale Event shall become fully
exercisable as of the effective time of the Sale Event and all other Awards with conditions and restrictions relating solely to the passage of time and continued employment shall become fully vested and nonforfeitable as of the effective time of the
Sale Event, except as the Administrator may otherwise specify with respect to particular Awards. Upon the effective time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless provision is made in connection
with the Sale Event in the sole discretion of the parties thereto for the assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the successor entity or parent thereof,
with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree (after taking into account any acceleration hereunder). In the event of such termination, each grantee
shall be permitted, within a specified period of time prior to the consummation of the Sale Event as determined by the Administrator, to exercise all outstanding Options and Stock Appreciation Rights held by such grantee, including those that will
become exercisable upon the consummation of the Sale Event; provided, however, that the exercise of Options and Stock Appreciation Rights not exercisable prior to the Sale Event shall be subject to the consummation of the Sale Event. 
 
Notwithstanding anything to the contrary in
this Section 3(c), in the event of a Sale Event pursuant to which holders of the Stock of the Company will receive upon consummation thereof a cash payment for each share surrendered in the Sale Event, the Company shall have the right, but not the
obligation, to make or provide for a cash payment to the grantees holding Options and Stock Appreciation Rights in exchange for the cancellation thereof, in an amount equal to the difference between (A) the value as determined by the Administrator
of the consideration payable per share of Stock pursuant to the Sale Event (the “Sale Price”) times the number of shares of Stock subject to outstanding Options and Stock Appreciation Rights (to the extent then exercisable at prices not in
excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding Options and Stock Appreciation Rights. 
 
(d) Substitute Awards. The Administrator may grant Awards under the Plan in substitution for stock and stock based awards
held by employees, directors or other key persons of another corporation in connection with the merger or consolidation of the employing corporation with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or
stock of the employing corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the Administrator considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall
not count against the share limitation set forth 

 

4 

in Section 3(a). 
 
SECTION 4: ELIGIBILITY 
 
Grantees under the Plan will be such full or part-time officers and other employees, Independent Directors
and key persons (including consultants and prospective employees) of the Company and its Subsidiaries as are selected from time to time by the Administrator in its sole discretion. 
 
SECTION 5: STOCK OPTIONS 
 
Any Stock Option granted under the Plan shall be in such form
as the Administrator may from time to time approve. 
 
Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary
corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option. 
 
No Incentive Stock Option shall be granted under the Plan
after January 28, 2013. 
 
(a)
Stock Options Granted to Employees, Independent Directors and Key Persons. The Administrator in its discretion may grant Stock Options to eligible employees, Independent Directors and key persons of the Company or any Subsidiary. Stock Options
granted pursuant to this Section 5(a) shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. If the
Administrator so determines, Stock Options may be granted in lieu of cash compensation at the optionee’s election, subject to such terms and conditions as the Administrator may establish. 
 
(i) Exercise Price. The exercise price per
share for the Stock covered by a Stock Option granted pursuant to this Section 5(a) shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant in the case of
Incentive Stock Options, or 85 percent of the Fair Market Value on the date of grant, in the case of Non-Qualified Stock Options (other than options granted in lieu of cash compensation). If an employee owns or is deemed to own (by reason of the
attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the option
price of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date. 
 
(ii) Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be
exercisable more than 10 years after the date the Stock Option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of
stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the term of such Stock Option shall be no more than five years from the date of grant. 
 
(iii) Exercisability; Rights of a
Stockholder. Stock Options shall become exercisable at such time or times, whether or not in installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate the exercisability of all
or any portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 
(iv) Method of Exercise. Stock Options may be
exercised in whole or in part, by giving written notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the extent provided in the
Option Award agreement: 
 
(A) In
cash, by certified or bank check or other instrument acceptable to the Administrator; 
 

5 

 
(B) Through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market or that have been beneficially owned by the optionee for at least six months and are not then
subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date; or 
 
(C) Subject to compliance with applicable law, by the optionee delivering to the Company a properly executed exercise
notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as
so provided, the optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure. 
 
Payment instruments will be received subject to collection.
The delivery of certificates representing the shares of Stock to be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance with the provisions of the
Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Option Award agreement or applicable provisions of laws. In the event an optionee chooses to pay the purchase
price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of shares attested to. 
 
(v) Annual Limit on Incentive Stock Options.
To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted
under this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any Stock Option exceeds this
limit, it shall constitute a Non-Qualified Stock Option. 
 
(b) Reload Options. At the discretion of the Administrator, Options granted under the Plan may include a “reload” feature pursuant to which an optionee exercising an option by the delivery of a number of shares of
Stock in accordance with Section 5(a)(iv)(B) hereof would automatically be granted an additional Option (with an exercise price equal to the Fair Market Value of the Stock on the date the additional Option is granted and with such other terms as the
Administrator may provide) to purchase that number of shares of Stock equal to the sum of (i) the number delivered to exercise the original Option and (ii) the number withheld to satisfy tax liabilities, with an Option term equal to the remainder of
the original Option term unless the Administrator otherwise determines in the Award agreement for the original Option grant. 
 
(c) Non-transferability of Options. No Stock Option shall be transferable by the optionee otherwise than by will or by the
laws of descent and distribution and all Stock Options shall be exercisable, during the optionee’s lifetime, only by the optionee, or by the optionee’s legal representative or guardian in the event of the optionee’s incapacity.
Notwithstanding the foregoing, the Administrator, in its sole discretion, may provide in the Award agreement regarding a given Option that the optionee may transfer his Non-Qualified Stock Options to members of his immediate family, to trusts for
the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable
Option. 
 
SECTION 6.
STOCK APPRECIATION RIGHTS 
 
(a) Nature of Stock Appreciation Rights. A Stock Appreciation Right is an Award entitling the recipient to receive an amount in cash or shares of Stock or a combination thereof having a value equal to the excess of the Fair Market
Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right, which price shall not be less than 85 percent of the Fair Market Value of the Stock on the date of grant (or more than the option exercise price per
share, if the Stock Appreciation Right was granted in tandem with a Stock Option) multiplied by the number of shares of Stock with respect to which the Stock Appreciation Right shall have been exercised, with the Administrator having the right to
determine the form of payment. 
 
(b) Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Administrator in tandem with, or independently of, any Stock Option granted pursuant to Section 5 of the Plan. In 

 

6 

the case of a Stock Appreciation Right granted in tandem with a Non-Qualified Stock Option, such Stock Appreciation Right may be granted
either at or after the time of the grant of such Option. In the case of a Stock Appreciation Right granted in tandem with an Incentive Stock Option, such Stock Appreciation Right may be granted only at the time of the grant of the Option.

 
A Stock Appreciation Right or
applicable portion thereof granted in tandem with a Stock Option shall terminate and no longer be exercisable upon the termination or exercise of the related Option. 
 
(c) Terms and Conditions of Stock Appreciation Rights. Stock Appreciation Rights shall be
subject to such terms and conditions as shall be determined from time to time by the Administrator, subject to the following: 
 
(i) Stock Appreciation Rights granted in tandem with Options shall be exercisable at such time or times and to the extent
that the related Stock Options shall be exercisable. 
 
(ii) Upon exercise of a Stock Appreciation Right, the applicable portion of any related Option shall be surrendered. 
 
(iii) All Stock Appreciation Rights shall be exercisable during the grantee’s lifetime only by the grantee or the
grantee’s legal representative. 
 
SECTION 7. RESTRICTED STOCK AWARDS 
 
(a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award entitling the recipient to acquire, at such purchase price as determined by the Administrator, shares of Stock subject to
such restrictions and conditions as the Administrator may determine at the time of grant (“Restricted Stock”). Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee executing the Restricted Stock Award agreement. The terms and conditions of each such agreement shall be determined by the Administrator, and such
terms and conditions may differ among individual Awards and grantees. 
 
(b) Rights as a Stockholder. Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any applicable purchase price, a grantee shall have the rights of a
stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the Administrator shall otherwise determine, certificates evidencing the
Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in Section 7(d) below, and the grantee shall be required, as a condition of the grant, to deliver to the Company a stock power endorsed
in blank. 
 
(c) Restrictions.
Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Restricted Stock Award agreement. If a grantee’s employment (or other service relationship)
with the Company and its Subsidiaries terminates for any reason, the Company shall have the right to repurchase Restricted Stock that has not vested at the time of termination at its original purchase price, from the grantee or the grantee’s
legal representative. 
 
(d)
Vesting of Restricted Stock. The Administrator at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock
and the Company’s right of repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed
shall no longer be Restricted Stock and shall be deemed “vested.” Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 15 below, in writing after the Award agreement is issued, a
grantee’s rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee’s termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall
be subject to the Company’s right of repurchase as provided in Section 7(c) above. 
 
(e) Waiver, Deferral and Reinvestment of Dividends. The Restricted Stock Award agreement may require or permit the
immediate payment, waiver, deferral or investment of dividends paid on the Restricted Stock. 
 

7 

 
SECTION 8. DEFERRED STOCK AWARDS 
 
(a) Nature of Deferred Stock Awards. A Deferred Stock Award is an Award of phantom stock units to a grantee, subject to restrictions and conditions as the Administrator may determine at the time of
grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. The grant of a Deferred Stock Award is contingent on the grantee executing the Deferred
Stock Award agreement. The terms and conditions of each such agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees. At the end of the deferral period, the Deferred Stock
Award, to the extent vested, shall be paid to the grantee in the form of shares of Stock. 
 
(b) Election to Receive Deferred Stock Awards in Lieu of Compensation. The Administrator may, in its sole discretion,
permit a grantee to elect to receive a portion of the cash compensation or Restricted Stock Award otherwise due to such grantee in the form of a Deferred Stock Award. Any such election shall be made in writing and shall be delivered to the Company
no later than the date specified by the Administrator and in accordance with rules and procedures established by the Administrator. The Administrator shall have the sole right to determine whether and under what circumstances to permit such
elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate. 
 
(c) Rights as a Stockholder. During the deferral period, a grantee shall have no rights as a stockholder; provided,
however, that the grantee may be credited with Dividend Equivalent Rights with respect to the phantom stock units underlying his Deferred Stock Award, subject to such terms and conditions as the Administrator may determine. 
 
(d) Restrictions. A Deferred Stock Award may
not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of during the deferral period. 
 
(e) Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to
Section 15 below, in writing after the Award agreement is issued, a grantee’s right in all Deferred Stock Awards that have not vested shall automatically terminate upon the grantee’s termination of employment (or cessation of service
relationship) with the Company and its Subsidiaries for any reason. 
 
SECTION 9. UNRESTRICTED STOCK AWARDS 
 
Grant or Sale of Unrestricted Stock. The Administrator may, in its sole discretion, grant (or sell at such purchase price determined by
the Administrator) an Unrestricted Stock Award to any grantee pursuant to which such grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted in respect of
past services or other valid consideration, or in lieu of cash compensation due to such grantee. 
 
SECTION 10. PERFORMANCE SHARE AWARDS 
 
(a) Nature of Performance Share Awards. A Performance Share Award is an Award entitling the
recipient to acquire shares of Stock upon the attainment of specified performance goals. The Administrator may make Performance Share Awards independent of or in connection with the granting of any other Award under the Plan. The Administrator in
its sole discretion shall determine whether and to whom Performance Share Awards shall be made, the performance goals, the periods during which performance is to be measured, and all other limitations and conditions. 
 
(b) Rights as a Stockholder. A grantee
receiving a Performance Share Award shall have the rights of a stockholder only as to shares actually received by the grantee under the Plan and not with respect to shares subject to the Award but not actually received by the grantee. A grantee
shall be entitled to receive a stock certificate evidencing the acquisition of shares of Stock under a Performance Share Award only upon satisfaction of all conditions specified in the Performance Share Award agreement (or in a performance plan
adopted by the Administrator). 
 

8 

 
(c) Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 15 below, in writing after the Award agreement is issued, a grantee’s rights in all Performance Share
Awards shall automatically terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason. 
 
(d) Acceleration, Waiver, Etc. At any time prior to the grantee’s termination of
employment (or other service relationship) by the Company and its Subsidiaries, the Administrator may in its sole discretion accelerate, waive or, subject to Section 15, amend any or all of the goals, restrictions or conditions applicable to a
Performance Share Award. 
 
SECTION 11. PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES 
 
Notwithstanding anything to the contrary contained herein, if any Restricted Stock Award, Deferred Stock Award or Performance Share Award granted to a Covered Employee is intended to qualify as
“Performance-based Compensation” under Section 162(m) of the Code and the regulations promulgated thereunder (a “Performance-based Award”), such Award shall comply with the provisions set forth below: 
 
(a) Performance Criteria. The performance
criteria used in performance goals governing Performance-based Awards granted to Covered Employees may include any or all of the following: (i) the Company’s return on equity, assets, capital or investment: (ii) pre-tax or after-tax profit
levels of the Company or any Subsidiary, a division, an operating unit or a business segment of the Company, or any combination of the foregoing; (iii) cash flow, funds from operations or similar measure; (iv) total shareholder return; (v) changes
in the market price of the Stock; (vi) sales or market share; or (vii) earnings per share. 
 
(b) Grant of Performance-based Awards. With respect to each Performance-based Award granted to a Covered Employee, the
Committee shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the performance criteria for such grant, and the achievement targets with respect to each
performance criterion (including a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-based Award will specify the amount payable, or the formula for determining the amount payable,
upon achievement of the various applicable performance targets. The performance criteria established by the Committee may be (but need not be) different for each Performance Cycle and different goals may be applicable to Performance-based Awards to
different Covered Employees. 
 
(c) Payment of Performance-based Awards. Following the completion of a Performance Cycle, the Committee shall meet to review and certify in writing whether, and to what extent, the performance criteria for the Performance Cycle have
been achieved and, if so, to also calculate and certify in writing the amount of the Performance-based Awards earned for the Performance Cycle. The Committee shall then determine the actual size of each Covered Employee’s Performance-based
Award, and, in doing so, may reduce or eliminate the amount of the Performance-based Award for a Covered Employee if, in its sole judgment, such reduction or elimination is appropriate. 
 
(d) Maximum Award Payable. The maximum Performance-based Award payable to any one Covered
Employee under the Plan for a Performance Cycle is 30,000 Shares (subject to adjustment as provided in Section 3(b) hereof). 
 
SECTION 12: DIVIDEND EQUIVALENT RIGHTS 
 
(a) Dividend Equivalent Rights. A Dividend Equivalent Right is an Award entitling the grantee
to receive credits based on cash dividends that would have been paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the grantee. A Dividend
Equivalent Right may be granted hereunder to any grantee as a component of another Award or as a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award agreement. Dividend equivalents credited to
the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of
reinvestment or such other price as may then apply 
 

9 

under a dividend reinvestment plan sponsored by the Company, if any. Dividend Equivalent Rights may be settled in cash or shares of Stock or
a combination thereof, in a single installment or installments. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse
of restrictions on, such other award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other award. A Dividend Equivalent Right granted as a component of another Award may also
contain terms and conditions different from such other award. 
 
(b) Interest Equivalents. Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide in the grant for interest equivalents to be credited with respect to such
cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant. 
 
(c) Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to
Section 15 below, in writing after the Award agreement is issued, a grantee’s rights in all Dividend Equivalent Rights or interest equivalents shall automatically terminate upon the grantee’s termination of employment (or cessation of
service relationship) with the Company and its Subsidiaries for any reason. 
 
SECTION 13. TAX WITHHOLDING 
 
(a) Payment by Grantee. Each grantee shall, no later than the date as of which the value of an Award or of any Stock or
other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or
local taxes of any kind required by law to be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the
grantee. The Company’s obligation to deliver stock certificates to any grantee is subject to and conditioned on tax obligations being satisfied by the grantee. 
 
(b) Payment in Stock. Subject to approval by the Administrator, a grantee may elect to have
the minimum required tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date
the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock owned by the grantee with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy
the withholding amount due. 
 
SECTION 14. TRANSFER, LEAVE OF ABSENCE, ETC. 
 
For purposes of the Plan, the following events shall not be deemed a termination of employment: 
 
(a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one
Subsidiary to another; or 
 
(b)
an approved leave of absence for military service or for sickness, or for any other purpose approved by the Company, if the employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which
the leave of absence was granted or if the Administrator otherwise so provides in writing. 
 
SECTION 15. AMENDMENTS AND TERMINATION 
 
The Board may, at any time, amend or discontinue the Plan and the Administrator may, at any time, amend or
cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent. Except as provided in Section
3(b) or 3(c), in no event may the Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or effect repricing through cancellation and re-grants. If and to the extent determined by the Administrator to be
required by the relevant securities exchange or by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code or to ensure that compensation earned under Awards qualifies as performance-based
compensation under Section 162(m) of the 

 

10 

Code, if and to the extent intended to so qualify, Plan amendments shall be subject to approval by the Company stockholders entitled to vote
at a meeting of stockholders. Nothing in this Section 15 shall limit the Administrator’s authority to take any action permitted pursuant to Section 3(c). 
 
SECTION 16. STATUS OF PLAN 
 
With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other
consideration not received by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in connection with any Award or Awards. In its sole
discretion, the Administrator may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other
arrangements is consistent with the foregoing sentence. 
 
SECTION 17. CHANGE OF CONTROL PROVISIONS 
 
Upon the occurrence of a Change of Control as defined in this Section 17: 
 
(a) Except as otherwise provided in the applicable Award agreement, each outstanding Stock Option and Stock Appreciation
Right shall automatically become fully exercisable. 
 
(b) Except as otherwise provided in the applicable Award Agreement, conditions and restrictions on each outstanding Restricted Stock Award, Deferred Stock Award and Performance Share Award which relate solely to the passage
of time and continued employment will be removed. Performance or other conditions (other than conditions and restrictions relating solely to the passage of time and continued employment) will continue to apply unless otherwise provided in the
applicable Award agreement. 
 
(c)
“Change of Control” shall mean the occurrence of any one of the following events: 
 
(i) any “Person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company,
any of its Subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its Subsidiaries), together with all “affiliates” and “associates”
(as such terms are defined in Rule 12b-2 under the Exchange Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing 25 percent or more of the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Company’s Board of Directors (“Voting Securities”) (in such case other than
as a result of an acquisition of securities directly from the Company); or 
 
(ii) persons who, as of the Effective Date, constitute the Company’s Board of Directors (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a
tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming a director of the Company subsequent to the Effective Date shall be considered an Incumbent Director if
such person’s election was approved by or such person was nominated for election by either (A) a vote of at least a majority of the Incumbent Directors or (B) a vote of at least a majority of the Incumbent Directors who are members of a
nominating committee comprised, in the majority, of Incumbent Directors; but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of members
of the Board of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or
solicitation, shall not be considered an Incumbent Director; or 
 
(iii) the consummation of a consolidation, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate Transaction”);
excluding, however, a Corporate Transaction in which the stockholders of the Company immediately prior to the Corporate Transaction, would, immediately after the Corporate Transaction, beneficially own (as such term is defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares of the corporation issuing cash or securities in the Corporate Transaction (or of its ultimate parent corporation, if any); or

 

11 

 
(iv) the approval by the stockholders of any plan or proposal for the liquidation or dissolution of the Company. 
 
Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred for purposes of the foregoing clause
(i) solely as the result of an acquisition of securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of shares of Voting Securities beneficially owned by any person to
25 percent or more of the combined voting power of all then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities
(other than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns 25 percent or more of the combined voting power of
all then outstanding Voting Securities, then a “Change of Control” shall be deemed to have occurred for purposes of the foregoing clause (i). 
 
SECTION 18. GENERAL PROVISIONS 
 
(a) No Distribution; Compliance with Legal Requirements. The Administrator may require each
person acquiring Stock pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. 
 
No shares of Stock shall be issued pursuant to an Award until all applicable securities law
and other legal and stock exchange or similar requirements have been satisfied. The Administrator may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 
 
(b) Delivery of Stock Certificates. Stock
certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the
grantee’s last known address on file with the Company. 
 
(c) Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, and such
arrangements may be either generally applicable or applicable only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Subsidiary.

 
(d) Trading Policy
Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company’s insider trading policy, as in effect from time to time. 
 
(e) Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or
beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such designation shall be on a form provided for that purpose by the Administrator and shall not be effective until received
by the Administrator. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate. 
 
SECTION 19. EFFECTIVE DATE OF
PLAN 
 
This Plan shall become effective upon
approval by the holders of a majority of the votes cast at a meeting of stockholders at which a quorum is present. Subject to such approval by the stockholders and to the requirement that no Stock may be issued hereunder prior to such approval,
Stock Options and other Awards may be granted hereunder on and after adoption of this Plan by the Board. 
 
SECTION 20. GOVERNING LAW 
 
This Plan and all Awards and actions taken thereunder shall be governed by, and construed in accordance with,
the laws of the State of Maine, applied without regard to conflict of law principles. 
 

12

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