Document:

2005 Non-Statutory Stock Option Plan

 Exhibit 10.1 
  
 TECHNICAL COMMUNICATIONS CORPORATION 
  

2005 NON-STATUTORY STOCK OPTION PLAN 
  
 1. Purpose of the Plan. The purpose of this Technical Communications Corporation 2005 Non-Statutory Stock Option Plan is to promote the success and
interests of the Company and its stockholders by permitting and encouraging employees, directors and consultants of the Company to obtain a proprietary interest in the Company or its subsidiaries through the grant of non-statutory options to
purchase shares of the Company. This Plan will enable the Company to attract, retain and motivate employees, directors and consultants whose services are critical to the success of the Company and align the interests of such individuals with those
of the Company. 
  
 All Options granted under this Plan shall be
Non-statutory Stock Options, or Options that do not qualify as Incentive Stock Options under Section 422 of the Code. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Board” shall mean the Board of Directors of the Company. 
  
 (b) “Code” shall mean the Internal Revenue Code of 1986, as
amended (or any successor thereto). 
  
 (c) “Common
Stock” shall mean the Common Stock, $.10 par value, of the Company. 
  
 (d) “Company” shall mean Technical Communications Corporation, a Massachusetts corporation, and its successors. 
  

(e) “Committee” shall mean a Committee appointed by the Board of Directors in accordance with Section 3(a) of this Plan. 

 (f) “Consultant” shall mean any person who is engaged by the Company or any Subsidiary
to render consulting or advisory services other than as an Employee or Director. 
  
 (g) “Continuous Status as an Employee, Consultant or Director” shall mean the absence of any interruption or termination of service as an Employee, Consultant or Director. Continuous Status as an
Employee, Consultant or Director shall not be considered interrupted in the case of sick leave, military leave, or any other leave of absence approved by the Board; provided that such leave is for a period of not more than 90 days or
reemployment upon the expiration of such leave is guaranteed by contract or statute. 
  
 (h) “Director” shall mean any member of the Board of Directors of the Company or any director of a Subsidiary. 
  

(i) “Employee” shall mean any person, including officers and Directors, employed by the Company or any Subsidiary of the Company.
Neither service as a Director nor the payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
  

(j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor statute. 
  
 (k) “Incentive Stock Option” shall mean an Option intended
to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  
 (l) “Non-statutory Stock Option” shall mean an Option not intended to qualify as an Incentive Stock Option. 
  
 (m) “Option” shall mean a stock option granted pursuant to this Plan. 
  
 (n) “Option Agreement” shall mean the written agreement between the Company and the Optionee setting forth
the terms, conditions and restrictions of a Non-statutory Stock Option granted under the Plan. 
  
 (o) “Optioned Stock” shall mean the Common Stock subject to the Option. 

 (p) “Optionee” shall mean an Employee, Consultant or Director who receives an Option
under the Plan. 
  
 (q) “Plan” shall mean this
Technical Communications Corporation 2005 Non-Statutory Stock Option Plan, as the same shall be amended from time to time. 
  
 (r) “Share” shall mean a share of the Common Stock, as adjusted in accordance with Section 12 herein. 
  
 (s) “Subsidiary” shall mean a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3. Administration of the Plan. 
  
 (a) Procedure. This Plan shall be administered by the Board of Directors of the Company or one or more Committees of the Board of Directors
appointed and constituted in accordance with this Section 3 and with the powers and duties delegated to such Committee by the Board. All references in this Plan to the Board shall also include any such Committee appointed by the Board. From time to
time, the Board may alter the size of any Committee and appoint additional members thereto, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies however caused, or remove all members of a Committee
and thereafter directly administer the Plan. No member of the Board or a Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Options granted under the Plan. If a Committee is appointed by the
Board, a majority of the members of the Committee shall constitute a quorum, and all determinations of the Committee under the Plan may be made at a meeting at which a quorum is present by the vote of a majority of the members of the Committee or by
a writing in lieu of a meeting signed by all members of the Committee. Meetings may be held by telephone conference or similar communication equipment by means of which all persons participating can hear each other. At least two members of the
Committee shall be “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act and “outside directors” within the meaning of Section 162(m) of the Code. 
  
 (b) Powers. Subject to the provisions of the Plan, the Board shall
have the authority, in its discretion, to: (i) determine the Employees, Consultants or Directors to whom, and the time or times at which, Options shall be granted and the number of shares to be represented by each Option; (ii) determine the terms,
conditions and restrictions applicable to each Option (which need not be identical) and any Shares acquired upon exercise thereof, including without limitation the exercise price, method of payment for Shares purchased upon exercise of such Option,
terms of exercisability and 

 termination, and waive any condition or restriction with respect to any Option; (iii) determine the fair market value of
a Share in accordance with Section 8(b) hereof; (iv) establish one or more forms of Option Agreement; (v) modify, amend or renew each Option and Option Agreement (if required, with the consent of the Optionee); (vi) accelerate, continue, extend or
defer (if required, with the consent of the Optionee) the exercisability or vesting of any Option or Shares acquired upon exercise thereof, consistent with the provisions the Plan; (vii) authorize any person to execute on behalf of the Company any
instrument required to effectuate the grant of an Option previously granted by the Board; (viii) interpret the Plan; (ix) establish, amend and rescind rules and regulations relating to the Plan; and (x) make all other determinations deemed necessary
or advisable for the administration of the Plan. 
  
 (c) Effect
of Board’s Decision. All decisions, determinations and interpretations of the Board shall be final and binding on all Optionees and any other holders of any Options granted under the Plan. 
  
 4. Stock Subject to the Plan.  
  
 (a) Subject to the provisions of Section 12 of this Plan, the maximum
aggregate number of shares of Common Stock for which Options may be granted under the Plan is 100,000 shares of Common Stock. The Shares may be authorized but unissued Common Stock or issued and reacquired Common Stock held in treasury. 

 
 (b) If an Option should expire, terminate or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan. In addition, any Shares that are retained by the
Company upon exercise of an Option in order to satisfy the exercise price for such Option, or any withholding taxes due with respect to such exercise, shall be treated as not issued and shall continue to be available under the Plan. 
  
 (c) Notwithstanding any other provision of the Plan, shares issued
under the Plan upon exercise of Options and later repurchased by the Company shall not become available for future grant or sale under the Plan. 

 5. Eligibility 
  
 (a) Non-statutory Stock Options may be granted to Employees, Consultants, or Directors as the Board may determine in its
discretion. An Employee, Consultant or Director who has been granted an Option may, if he or she is otherwise eligible, be granted an additional Option or Options; provided that the grant of an Option in one year or at any particular time
shall not require a grant of an Option in any other year or at any other time and, provided, further, that that in no event shall any Employee, Consultant or Director receive Options hereunder in any one year to purchase more than
50,000 shares of Common Stock under the Plan. The Board may consider such factors it deems relevant in selecting Employees, Consultants and Directors to receive Options, the number of Shares subject to such Options, and the terms, provisions and
restrictions with respect thereto. 
  
 (b) Neither the Plan nor
any Option granted hereunder shall confer upon any Optionee any right with respect to continuation of employment, consulting or advisory relationship or directorship with the Company, nor shall it interfere in any way with his or her right or the
Company’s right to terminate his or her employment, consulting or advisory relationship or directorship at any time. 
  
 6. Term of Plan. The Plan shall be effective upon its adoption by the Board, and shall continue in effect for a term of ten years from the date of
such adoption unless earlier terminated by the Board under Section 14 below. 
  
 7. Term of Options. The term of each Option shall be determined by the Board and set forth in the Option Agreement; provided that no Option granted hereunder shall have a term greater than, or be
exercisable after, ten years from the date of grant thereof. 
  
 8. Exercise Price and Consideration.  
  
 (a)
Exercise Price. The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option hereunder shall be such price as is determined by the Board on the date of grant. 
  
 (b) Fair Market Value. The fair market value of a share of
Common Stock means, as of any given date, the closing sales price of a share of Common Stock on such date on the principal national securities exchange on which the Common Stock is then traded or, if the Common Stock is not then traded on a national
securities exchange, the closing sales price (or, if none, the average of the bid and asked prices) of the Common Stock on such date as reported on the National Association of Securities 

 Dealers Automated Quotation System (“Nasdaq”); provided, however, that if there are no sales
reported on such date, fair market value shall be computed as of the last trading date preceding such date on which a sale was reported; provided, further, that if any such exchange or quotation system is closed on the date of
determination, fair market value shall be determined as of the first day immediately preceding such date on which such exchange or quotation system was open for trading. If the Common Stock is not admitted to trade on a securities exchange or quoted
on Nasdaq, the fair market value shall be as determined in good faith by the Board. 
  
 (c) Form of Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Board and may consist entirely of
cash, check, other Shares of Common Stock having a fair market value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised (which other Shares, in certain situations, shall have been
held for at least six months), or any combination of such methods of payment, or such other consideration and method of payment for the issuance of Shares to the extent permitted under Chapter 156D of the Massachusetts Corporation Law and applicable
securities laws. In making its determination as to the type of consideration to accept, the Board shall consider if acceptance of such consideration may be reasonably expected to benefit the Company. If the Company is then allowing the exercise of
Options pursuant to a same-day sale / cashless exercise program, the consideration received by the Company from a broker pursuant to such program (provided that such program shall not involve the Company’s extending or arranging for the
extension of credit to an Optionee) may also be acceptable consideration hereunder. 
  
 9. Procedure for Exercise of Option; Rights as a Shareholder.  
  
 (a) Any Option granted hereunder shall be exercisable at such time or times and upon such conditions as determined by the Board, and the Option Agreement
with respect to any Option may contain such performance targets, waiting periods, exercise dates, and restrictions on exercise and transfer with respect to the Company, the Optionee and/or the underlying Shares as may be determined by the Board and
as shall be permissible under the terms of the Plan; provided, however, an Option may not be exercised for a fraction of a Share. 
  
 (b) An Option shall be deemed to be exercised when notice of such exercise in the form required by the Option Agreement has been given to the Company in
accordance with the terms of the Option Agreement by the person entitled to exercise the Option, full payment for the Shares with respect to which the Option is exercised has been received by the Company, and all conditions to exercise have been
satisfied or waived. As authorized by the Board, full payment may consist of any consideration and method of payment allowable under Section 8(c) of this Plan. Until the issuance (as 

 evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of
the stock certificate or certificates representing such Shares, no right to vote or receive dividends or any other right of a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall
issue (or cause to be issued) such stock certificate as soon as reasonably practicable following exercise of the Option. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the stock certificate
is issued, except as provided in Section 12 of this Plan. 
  
 (c) Exercise of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of this Plan and for purchase under the Option, by the number of Shares as to which the
Option is exercised. 

 10. Certain Events Affecting Exercisability of Options. 
  
 (a) Termination of Continuous Status as an Employee, Consultant or
Director. In the event of termination of an Optionee’s Continuous Status as an Employee, Consultant or Director, other than by disability or death, such Optionee may, but only within 30 days (or such other period of time as is determined by
the Board, with such determination being made at the time of grant of the Option) after such event of termination of an Optionee’s Continuous Status as an Employee, Consultant or Director, but in no event later than the date of expiration of
the term of such Option as set forth in the Option Agreement, exercise the Option to the extent that the Optionee was entitled to exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at
the date of such termination, or if the Optionee does not exercise such Option (which the Optionee was entitled to exercise) within the time specified herein, the Option shall terminate. Notwithstanding anything herein to the contrary, in the event
of termination of an Optionee’s Continuous Status as an Employee, Consultant or Director for “cause,” then his or her rights under any then-outstanding Option shall immediately terminate at the time of such termination. Termination
for cause shall include but not be limited to the Optionee’s (i) commission of an act of fraud, embezzlement, misappropriation or theft or a felony, (ii) gross negligence, willful misconduct, insubordination or habitual neglect of duty in
carrying out his or her duties as a Employee, Consultant or Director; (iii) non-compliance with any policy of the Company or the Company’s Code of Business Conduct and Ethics and failure to cure such noncompliance within 15 days of notice
thereof from the Company, or (iv) breach of any material term of any agreement, contract or other arrangement between the Optionee and the Company regarding Optionee’s employment by or engagement with the Company, or breach of any duty owed by
Optionee to the Company and/or its stockholders, in each case as determined by the Board. In addition to and not in lieu of the foregoing, if the Board reasonably believes that an Optionee has engaged in any of the activities described in clauses
(i) – (iv) of this Section 10(a), the Board may suspend the Optionee’s right to exercise any Option pending a determination by the Board. 
  
 (b) Disability of Optionee. In the event of termination of an Optionee’s Continuous Status as an Employee, Consultant or Director as a result
of such Optionee’s total and permanent disability (as defined in Section 22(e)(3) of the Code), the Optionee may, but only within six months (or such other period of time not exceeding 12 months as is determined by the Board, with such
determination being made at the time of grant of the Option) from the date of termination, but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement, exercise the Option to the extent the
Optionee was entitled to exercise it at the date of such termination. To the extent that the Optionee was not entitled to exercise the Option at the date of termination, or if the Optionee does not exercise such Option (which the Optionee was
entitled to exercise) within the time of specified herein, the Option shall terminate. 

 (c) Death of Optionee. In the event of the death of an Optionee (i) who is at the time of his or
her death an Employee, Consultant or Director of the Company and who shall have been in Continuous Status as an Employee, Consultant or Director since the date of grant of the Option, or (ii) which occurs within 30 days after the termination of such
Optionee’s Continuous Status as an Employee, Consultant or Director, the Option may be exercised at any time within 12 months following the date of death (but in no event later than the date of expiration of the term of such Option as set forth
in the Option Agreement), by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that would have accrued had the Optionee continued living
and remained in Continuous Status as an Employee, Consultant or Director 12 months after the date of death. 
  
 (d) Expiration of Unvested Options Upon Termination of Employment. Subject to Sections 10(a), (b) and (c) above, to the extent all or any part of
an Option granted to an Employee, Consultant or Director was not exercisable as of the date of termination of an Optionee’s Continuous Status as an Employee, Consultant or Director, such right shall expire as of such date of termination.

  
 11. Non-Transferability of Options. An Option may not
be sold, pledged, assigned hypothecated, transferred, or disposed of in any manner other than by will, by the laws of descent and distribution or pursuant to a qualified domestic relations order. 
  
 12. Adjustments Upon Changes in Capitalization or Merger.  

 
 (a) Subject to any required action by the shareholders of the Company,
the number of shares of Common Stock covered by each outstanding Option, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to
the Plan upon cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected” without receipt of consideration. Such adjustments shall be made by
the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. 

 (b) In the event of the proposed dissolution or liquidation of the Company, each outstanding Option will
terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such instances, declare that any Option shall terminate as of a date fixed by
the Board and give each Optionee the right to exercise his or her Option as to all or any part of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable. In the event of a proposed sale of all or substantially
all of the assets of the Company, or the merger of the Company with or into another corporation where the Company is not the surviving corporation, the Option shall be assumed or an equivalent option or award shall be substituted by such successor
corporation or a parent or subsidiary of such successor corporation. In the event that such successor corporation refuses to assume the Option or to substitute an equivalent option or award, the Board may, in lieu of such assumption or substitution,
accelerate the vesting and exercisability in full of outstanding Options and provide for the Optionee to have the right to exercise the Option as to all of the Optioned Stock, including Shares as to which the Option would not otherwise be
exercisable. If the Board makes an Option fully exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify the Optionee that the Option shall be fully exercisable for a period of at least 14
days from the date of such notice, and the Option will terminate upon the expiration of such period. 
  
 13. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date on which the Board makes the determination
granting such Option. Notice of the determination shall be given to each Employee, Consultant or Director to whom an Option is so granted within a reasonable time after the date of such grant. 
  
 14. Amendment and Termination. The Board may amend or terminate the
Plan from time to time in such respects as the Board may deem advisable; provided that no such amendment or termination of the Plan shall affect or impair the rights of an Optionee under Options granted prior to the date of such amendment or
termination without the consent of the Optionee, except that the Plan may be amended in a manner that does not affect Options granted prior to the date of amendment or termination if such amendment is necessary to retain the benefits of Rule 16b-3
or Section 162(m) of the Code or to otherwise comply with applicable law, or such amendment does not adversely affect the rights of the Optionee; provided, further, that the Board shall not amend the Plan in any manner that requires
stockholder, regulatory or other approval(s) under applicable law, rule or regulation without obtaining such approval(s). 
  
 15. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of applicable law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, the so-called state “blue 

 sky” or securities laws, and the requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investments and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned
relevant provisions of law. 
  
 16. Reservation of Shares.
The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares
as to which such requisite authority shall not have been obtained. 
  
 17. Option Agreement; Modifications to Options. Options shall be evidenced by Option Agreements in such form or forms as the Board shall approve, which form or forms may incorporate all or any terms of the Plan by reference as
determined by the Board. The Option Agreement for each Non-statutory Stock Option granted hereunder shall provide that such Option will not be treated as an Incentive Stock Option. In the event of a conflict between any Option Agreement and the
Plan, the Plan shall control, and in no event shall the Board have the power to grant an Option or execute an Option Agreement that is contrary to the provisions of this Plan. Except as provided in the Option Agreement or as permitted by the Plan,
no Option granted under the Plan may be modified after the date of grant of such Option unless agreed by the Optionee, which agreement must be in writing and signed by the Optionee and the Company. 
  
 18. Governing Law. The Plan and all determinations made and actions
taken pursuant to the Plan shall be governed by the laws of the Commonwealth of Massachusetts and shall be construed in accordance therewith, without regard to such jurisdiction’s conflict of laws principles. 
  
 19. Taxes. The Company shall be entitled, if the Board deems it
necessary or desirable, to withhold (or secure payment from the Optionee in lieu of withholding) the amount of any withholding or other tax required by law to be withheld or paid by the Company with respect to any Common Stock issuable under such
Optionee’s Option, and the Company may defer issuance of Common Stock upon the grant or exercise of an Option unless indemnified to its satisfaction against any liability for any such tax. The amount of such withholding or tax payment shall be
determined by the Board or its 

 delegate and shall be payable by the Optionee at such time or times as the Board determines. An Optionee shall be
permitted to satisfy his or her tax or withholding obligation by (a) having cash withheld from the Optionee’s salary or other compensation payable by the Company or a Subsidiary, (b) the payment of cash by the Optionee to the Company, (c) the
payment in shares of Common Stock already owned by the Optionee valued at fair market value, and/or (d) the withholding from the Option, at the appropriate time, of a number of shares of Common Stock sufficient, based upon the fair market value of
such Common Stock, to satisfy such tax or withholding requirements. The Board shall be authorized, in its sole and absolute discretion, to establish rules and procedures relating to any such withholding methods it deems necessary or appropriate
(including, without limitation, rules and procedures relating to elections by Optionees who are subject to the provisions of Section 16 of the Exchange Act to have shares of Common Stock withheld from an award to meet those withholding obligations).

  
 20. Compliance with Rule 16b-3 and Section 162(m). It
is intended that the Plan be applied and administered in compliance with Rule 16b-3 promulgated under Section 16 of the Exchange Act and with Section 162(m) of the Code. If any provision of the Plan would be in violation of Section 162(m) if applied
as written, such provision shall not have effect as written and shall be given effect so as to comply with Section 162(m) as determined by the Board in its discretion. The Board is authorized to amend the Plan and to make any such modifications to
Option Agreements to comply with Rule 16b-3 and Section 162(m), as they may be amended from time to time, and to make any other such amendments or modifications deemed necessary or appropriate to better accomplish the purposes of the Plan in light
of any amendments made to Rule 16b-3 and Section 162(m). Notwithstanding the foregoing, the Board may amend the Plan so that it (or certain of its provisions) no longer comply with either or both of Rule 16b-3 or Section 162(m) if the Board
specifically determines that such compliance is no longer desired and the Board may grant Options that do not comply with Rule 16b-3 and/or Section 162(m) if the Committee determines, in its sole and absolute discretion, that it is in the interest
of the Company to do so.2005 Stock Incentive Plan

 Exhibit 10.17 
  
  
  
 SPINNAKER EXPLORATION COMPANY 
  
 2005 STOCK INCENTIVE PLAN 

 TABLE OF CONTENTS 
  

			
	 1. Purpose
	  	1
	 2. Definitions
	  	1
	 3. Administration
	  	3
	 (a) Authority of the Committee
	  	3
	 (b) Manner of Exercise of Committee Authority
	  	4
	 (c) Limitation of Liability
	  	4
	 4. Stock Subject to Plan
	  	4
	 (a) Overall Number of Shares Available for Delivery
	  	4
	 (b) Application of Limitation to Grants of Awards
	  	4
	 (c) Availability of Shares Not Delivered Under Awards
	  	4
	 (d) Stock Offered
	  	5
	 5. Eligibility; Per Person Award Limitations
	  	5
	 6. Specific Terms of Awards
	  	5
	 (a) General
	  	5
	 (b) Options
	  	5
	 (c) Restricted Stock
	  	6
	 7. Certain Provisions Applicable to Awards
	  	6
	 (a) Stand-Alone and Additional Awards
	  	6
	 (b) Term of Awards
	  	7
	 (c) Form and Timing of Payment under Awards; Deferrals
	  	7
	 (d) Exemptions from Section 16(b) Liability
	  	7
	 (e) Non-Competition Agreement
	  	7
	 8. Performance Awards
	  	7
	 (a) Performance Conditions
	  	7
	 (b) Performance Awards Granted to Designated Covered Employees
	  	7
	 (c) Written Determinations
	  	8
	 (d) Status of Section 8(b) Awards under Section 162(m) of the Code
	  	9
	 9. Recapitalization or Reorganization
	  	9
	 (a) Existence of Plans and Awards
	  	9
	 (b) Subdivision or Consolidation of Shares
	  	9
	 (c) Recapitalizations and Corporate Changes
	  	10
	 (d) Change in Control
	  	10
	 (e) Additional Issuances
	  	11
	 (f) Restricted Stock Awards
	  	11
	 10. General Provisions
	  	11
	 (a) Transferability
	  	11
	 (b) Taxes
	  	12
	 (c) Changes to this Plan and Awards
	  	12
	 (d) Limitation on Rights Conferred Under Plan
	  	12
	 (e) Unfunded Status of Awards
	  	13
	 (f) Nonexclusivity of this Plan
	  	13
	 (g) Payments in the Event of Forfeitures; Fractional Shares
	  	13
	 (h) Severability
	  	13
	 (i) Governing Law
	  	13
	 (j) Conditions to Delivery of Stock
	  	13
	 (k) Plan Effective Date and Stockholder Approval
	  	14
	 (l) Term of Plan
	  	14

  

 i 

 SPINNAKER EXPLORATION COMPANY 
  
 2005 STOCK INCENTIVE PLAN 
  
 1. Purpose. The purpose of the Spinnaker Exploration Company 2005 Stock Incentive Plan (the “Plan”) is to provide a means through which
Spinnaker Exploration Company, a Delaware corporation (the “Company”), and its subsidiaries may attract and retain able persons as employees, directors and consultants of the Company and to provide a means whereby those persons upon whom
the responsibilities of the successful administration and management of the Company rest, and whose present and potential contributions to the welfare of the Company are of importance, can acquire and maintain stock ownership, or awards the value of
which is tied to the performance of the Company’s stock, thereby strengthening their concern for the welfare of the Company and their desire to remain in its employ. A further purpose of this Plan is to provide such employees and directors with
additional incentive and reward opportunities designed to enhance the profitable growth of the Company. Accordingly, this Plan provides for granting Incentive Stock Options, options which do not constitute Incentive Stock Options, and Restricted
Stock Awards as is best suited to the circumstances of the particular individual as provided herein. 
  
 2. Definitions. For purposes of this Plan, the following terms shall be defined as set forth below, in addition to such terms defined in Section 1
hereof: 
  
 (a) “Award” means any
Option or Restricted Stock Award granted to a Participant under this Plan. 
  
 (b) “Beneficiary” means one or more persons, trusts or other entities which have been designated by a Participant in his or her most recent written beneficiary designation filed with the Committee to receive
the benefits specified under this Plan upon such Participant’s death or to which Awards or other rights are transferred if and to the extent permitted under Section 10(a) hereof. If, upon a Participant’s death, there is no designated
Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the persons, trusts or other entities entitled by will or the laws of descent and distribution to receive such benefits. 
  
 (c) “Beneficial Owner” shall have the meaning
ascribed to such term in Rule 13d-3 under the Exchange Act and any successor to such Rule. 
  
 (d) “Board” means the Company’s Board of Directors. 
  
 (e) “Business Day” means any day other than a Saturday, a Sunday, or a day on which banking
institutions in the state of Texas are authorized or obligated by law or executive order to close. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor
provisions and regulations thereto. 
  
 (g)
“Committee” means a committee of two or more directors designated by the Board to administer this Plan; provided, however, that, unless otherwise determined by the Board, the Committee shall consist solely of two or more directors, each of
whom shall be (i) a “nonemployee director” within the meaning of Rule 16b-3 under the Exchange Act, and (ii) an “outside director” as defined under section 162(m) of the Code, unless administration of this Plan by “outside
directors” is not then required in order to qualify for tax deductibility under section 162(m) of the Code. 
  
 (h) “Covered Employee” means an Eligible Person who is a Covered Employee as specified in Section 8(d) of this Plan. 

 
 (i) “Effective Date” means March 30, 2005.

  
 (j) “Eligible Person” means all
officers and employees of the Company or of any Subsidiary, and other persons who provide services to the Company or any of its Subsidiaries, including directors of the Company. An employee on leave of absence may be considered as still in the
employ of the Company or a Subsidiary for purposes of eligibility for participation in this Plan. 
  
 (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and
successor provisions and rules thereto. 
  

 1 

 (l) “Fair Market Value” means, for a particular day: 
  
 (i) if shares of Stock of the same class are listed or
admitted to unlisted trading privileges on any national or regional securities exchange at the date of determining the Fair Market Value, then the mean of the high and the low reported sales price, regular way, on the composite tape of that exchange
on that Business Day or, if no such sale takes place on that Business Day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to unlisted trading privileges on that securities exchange or, if no such closing prices are available for that day, the last reported sales price, regular way, on the composite tape of that exchange on the last Business Day
before the date in question; or 
  
 (ii) if
shares of Stock of the same class are not listed or admitted to unlisted trading privileges as provided in subparagraph (i) and if sales prices for shares of Stock of the same class in the over-the-counter market are reported by the National
Association of Securities Dealers, Inc. Automated Quotations, Inc. (“NASDAQ”) National Market System as of the date of determining the Fair Market Value, then the last reported sales price so reported on that Business Day or, if no such
sale takes place on that Business Day, the average of the high bid and low asked prices so reported or, if no such prices are available for that day, the last reported sales price so reported on the last Business Day before the date in question; or

  
 (iii) if shares of Stock of the same class
are not listed or admitted to unlisted trading privileges as provided in subparagraph (i) and sales prices for shares of Stock of the same class are not reported by the NASDAQ National Market System (or a similar system then in use) as provided in
subparagraph (ii), and if bid and asked prices for shares of Stock of the same class in the over-the-counter market are reported by NASDAQ (or, if not so reported, by the National Quotation Bureau Incorporated) as of the date of determining the Fair
Market Value, then the average of the high bid and low asked prices on that Business Day or, if no such prices are available for that day, the average of the high bid and low asked prices on the last Business Day before the date in question; or

  
 (iv) if shares of Stock of the same class are
not listed or admitted to unlisted trading privileges as provided in subparagraph (i) and sales prices or bid and asked prices therefor are not reported by NASDAQ (or the National Quotation Bureau Incorporated) as provided in subparagraph (ii) or
subparagraph (iii) as of the date of determining the Fair Market Value, then the value determined in good faith by the Committee, which determination shall be conclusive for all purposes; or 
  
 (v) if shares of Stock of the same class are listed or
admitted to unlisted trading privileges as provided in subparagraph (i) or sales prices or bid and asked prices therefor are reported by NASDAQ (or the National Quotation Bureau Incorporated) as provided in subparagraph (ii) or subparagraph (iii) as
of the date of determining the Fair Market Value, but the volume of trading is so low that the Committee determines in good faith that such prices are not indicative of the fair value of the Stock, then the value determined in good faith by the
Committee, which determination shall be conclusive for all purposes notwithstanding the provisions of subparagraphs (i), (ii) or (iii). 
  
 For purposes of valuing Incentive Stock Options, the Fair Market Value of Stock shall be determined without regard to any restriction other than one that,
by its terms, will never lapse. 
  
 (m)
“Incentive Stock Option” or “ISO” means any Option intended to be and designated as an incentive stock option within the meaning of section 422 of the Code or any successor provision thereto. 
  
 (n) “Option” means a right, granted to a
Participant under Section 6(b) hereof, to purchase Stock or other Awards at a specified price during specified time periods. 
  
 (o) “Participant” means a person who has been granted an Award under this Plan which remains outstanding, including a person who
is no longer an Eligible Person. 
  

 2 

 (p) “Performance Award” means a right, granted to a Participant under Section 8
hereof, to receive Awards based upon performance criteria specified by the Committee. 
  
 (q) “Person” means any person or entity of any nature whatsoever, specifically including an individual, a firm, a company, a
corporation, a partnership, a limited liability company, a trust or other entity; a Person, together with that Person’s Affiliates and Associates (as those terms are defined in Rule 12b-2 under the Exchange Act), and any Persons acting as a
partnership, limited partnership, joint venture, association, syndicate or other group (whether or not formally organized), or otherwise acting jointly or in concert or in a coordinated or consciously parallel manner (whether or not pursuant to any
express agreement), for the purpose of acquiring, holding, voting or disposing of securities of the Company with such Person, shall be deemed a single “Person.” 
  
 (r) “Qualified Member” means a member of the Committee who is a “Non-Employee Director”
within the meaning of Rule 16b-3(b)(3) and an “outside director” within the meaning of Treasury regulation 1.162-27 promulgated pursuant to section 162(m) of the Code. 
  
 (s) “Restricted Stock” means Stock granted to a Participant under Section 6(c) hereof, that is
subject to certain restrictions and to a risk of forfeiture. 
  
 (t) “Rule 16b-3” means Rule 16b-3, promulgated by the Securities and Exchange Commission under section 16 of the Exchange Act, as from time to time in effect and applicable to this Plan and Participants.

  
 (u) “Securities Act” means the
Securities Act of 1933 and the rules and regulations promulgated thereunder, or any successor law, as it may be amended from time to time. 
  
 (v) “Stock” means the Company’s Common Stock, par value $.01 per share, and such other securities as may be substituted (or
resubstituted) for Stock pursuant to Section 9. 
  
 (w) “Subsidiary” means with respect to any Person, any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by that Person.

  
 3. Administration. 
  
 (a) Authority of the Committee. This Plan shall be administered by
the Committee except to the extent the Board elects, in order to comply with Rule 16b-3 or for any other reason, to administer this Plan, in which case references herein to the “Committee” shall be deemed to include references to the
“Board.” Subject to the express provisions of the Plan and Rule 16b-3, the Committee shall have the authority, in its sole and absolute discretion, to (i) adopt, amend, and rescind administrative and interpretive rules and regulations
relating to the Plan; (ii) determine the Eligible Persons to whom, and the time or times at which, Awards shall be granted; (iii) determine the amount of cash and the number of shares of Stock that shall be the subject of each Award; (iv) determine
the terms and provisions of each Award agreement (which need not be identical), including provisions defining or otherwise relating to (A) the term and the period or periods and extent of exercisability of the Options, (B) the extent to which the
transferability of shares of Stock issued or transferred pursuant to any Award is restricted, (C) the effect of termination of employment of a Participant on the Award, and (D) the effect of approved leaves of absence (consistent with any applicable
regulations of the Internal Revenue Service); (v) accelerate the time of exercisability of any Option or the restriction period applicable to any Restricted Stock Award; (vi) construe the respective Award agreements and the Plan; (vii) make
determinations of the Fair Market Value of the Stock pursuant to the Plan; (viii) delegate its duties under the Plan to such agents as it may appoint from time to time, provided that the Committee may not delegate its duties with respect to making
Awards to, or otherwise with respect to Awards granted to, Eligible Persons who are subject to section 16(b) of the Exchange Act or section 162(m) of the Code; (ix) subject to ratification by the Board, terminate, modify, or amend the Plan; and (x)
make all other determinations, perform all other acts, and exercise all other powers and authority necessary or advisable for administering the Plan, including the delegation of those ministerial acts and responsibilities as the Committee deems
appropriate. Subject to Rule 16b-3 and section 162(m) of the Code, the Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan, in any 

  

 3 

 
Award, or in any Award agreement in the manner and to the extent it deems necessary or desirable to carry the Plan into effect, and the Committee shall be
the sole and final judge of that necessity or desirability. The determinations of the Committee on the matters referred to in this Section 3(a) shall be final and conclusive. 
  
 (b) Manner of Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member,
any action of the Committee relating to an Award granted or to be granted to a Participant who is then subject to section 16 of the Exchange Act in respect of the Company, or relating to an Award intended by the Committee to qualify as
“performance-based compensation” within the meaning of section 162(m) of the Code and regulations thereunder, may be taken either (i) by a subcommittee, designated by the Committee, composed solely of two or more Qualified Members, or (ii)
by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that, upon such abstention or recusal, the Committee remains composed solely of two or more
Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of this Plan. Any action of the Committee shall
be final, conclusive and binding on all persons, including the Company, its subsidiaries, stockholders, Participants, Beneficiaries, and transferees under Section 10(a) hereof or other persons claiming rights from or through a Participant. The
express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Company or any
Subsidiary, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions, including administrative functions, as the Committee may determine, to the extent that such delegation will not
result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to section 16 of the Exchange Act in respect of the Company and will not cause Awards intended to qualify as “performance-based
compensation” under section 162(m) of the Code to fail to so qualify. The Committee may appoint agents to assist it in administering this Plan. 
  
 (c) Limitation of Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other
information furnished to him or her by any officer or employee of the Company or a Subsidiary, the Company’s legal counsel, independent auditors, consultants or any other agents assisting in the administration of this Plan. Members of the
Committee and any officer or employee of the Company or a Subsidiary acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to this Plan, and
shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination. 
  
 4. Stock Subject to Plan. 
  
 (a) Overall Number of Shares Available for Delivery. Subject to adjustment in a manner consistent with any adjustment made pursuant to Section 9,
the total number of shares of Stock reserved and available for delivery in connection with Options under this Plan shall not exceed 275,000 shares of Stock. Unless amended to the contrary, and whereby such amendment is approved by the stockholders
of the Company, no Restricted Stock Awards may be granted pursuant to the Plan. 
  
 (b) Application of Limitation to Grants of Awards. No Award may be granted if (i) the number of shares of Stock to be delivered in connection with such Award, or the number of shares to which such Award relates
exceeds (ii) the number of shares of Stock remaining available under this Plan minus the number of shares of Stock issuable in settlement of or relating to then-outstanding Awards. The Committee may adopt reasonable counting procedures to ensure
appropriate counting, avoid double counting and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award. 
  
 (c) Availability of Shares Not Delivered Under Awards. Shares of Stock
subject to an Award under this Plan that expire or are canceled, forfeited, settled in cash or otherwise terminated without a delivery of shares to the 

  

 4 

 
Participant, including (i) the number of shares withheld in payment of any exercise or purchase price of an Award or taxes relating to Awards, and (ii) the
number of shares surrendered in payment of any exercise or purchase price of an Award or taxes relating to any Award shall not again be available for Awards under this Plan. 
  
 (d) Stock Offered. The shares to be delivered under the Plan shall be made available from (i) authorized but unissued
shares of Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased on the open market, in each situation as the Board or the Committee may determine from
time to time at its sole option. 
  
 5. Eligibility; Per Person
Award Limitations. 
  
 Awards may be granted under this Plan
only to Eligible Persons. In each fiscal year of the Company, during any part of which this Plan is in effect, a Covered Employee may not be granted Restricted Stock Awards, if the grant of Restricted Stock Awards is approved by the stockholders of
the Company in an amendment to the Plan, relating to more than 100,000 shares of Stock or Options relating to more than 250,000 shares of Stock, in either case subject to adjustment in a manner consistent with any adjustment made pursuant to Section
9. 
  
 6. Specific Terms of Awards. 
  
 (a) General. Awards may be granted on the terms and conditions set
forth in this Section 6. In addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to Section 10(c)), such additional terms and conditions, not inconsistent with the provisions of this
Plan, as the Committee shall determine, including terms requiring forfeiture of Awards in the event of termination of employment by the Participant and terms permitting a Participant to make elections relating to his or her Award. The Committee
shall retain full power and discretion to accelerate, waive or modify, at any time, any term or condition of an Award that is not mandatory under this Plan; provided, however, that the Committee shall not have any discretion to accelerate, waive or
modify any term or condition of an Award that is intended to qualify as “performance-based compensation” for purposes of section 162(m) of the Code if such discretion would cause the Award to not so qualify. Except in cases in which the
Committee is authorized to require other forms of consideration under this Plan, or to the extent other forms of consideration must be paid to satisfy the requirements of the Delaware General Corporation Law, no consideration other than services may
be required for the grant (but not the exercise) of any Award. 
  
 (b) Options. The Committee is authorized to grant Options to Participants on the following terms and conditions: 
  
 (i) Exercise Price. Each Option agreement shall state the exercise price per share of Stock (the “Exercise Price”);
provided, however, that the Exercise Price per share of Stock subject to an Option shall not be less than the greater of (A) the par value per share of the Stock or (B) 105% of the Fair Market Value per share of the Stock on the date of grant of the
Option. 
  
 (ii) Time and Method of
Exercise. The Committee shall determine the time or times at which or the circumstances under which an Option may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the
methods by which such exercise price may be paid or deemed to be paid, the form of such payment, including without limitation cash, Stock, other Awards or awards granted under other plans of the Company or any Subsidiary, or other property
(including notes or other contractual obligations of Participants to make payment on a deferred basis), and the methods by or forms in which Stock will be delivered or deemed to be delivered to Participants, including, but not limited to, the
delivery of Restricted Stock subject to Section 6(d). In the case of an exercise whereby the Exercise Price is paid with Stock, such Stock shall be valued as of the date of exercise. 
  
 (iii) ISOs. The terms of any ISO granted under this Plan shall comply in all respects with the
provisions of section 422 of the Code. Anything in this Plan to the contrary notwithstanding, no term of this Plan 

  

 5 

 
relating to ISOs shall be interpreted, amended or altered, nor shall any discretion or authority granted under this Plan be exercised, so as to disqualify
either this Plan or any ISO under section 422 of the Code, unless the Participant has first requested the change that will result in such disqualification. Notwithstanding the foregoing, the Fair Market Value of shares of Stock subject to an ISO and
the aggregate Fair Market Value of shares of stock of any parent or Subsidiary corporation (within the meaning of sections 424(e) and (f) of the Code) subject to any other incentive stock option (within the meaning of section 422 of the Code)) of
the Company or a parent or Subsidiary corporation (within the meaning of sections 424(e) and (f) of the Code) that first becomes purchasable by a Participant in any calendar year may not (with respect to that Participant) exceed $100,000, or such
other amount as may be prescribed under section 422 of the Code or applicable regulations or rulings from time to time. As used in the previous sentence, Fair Market Value shall be determined as of the date the incentive stock option is granted.
Failure to comply with this provision shall not impair the enforceability or exercisability of any Option, but shall cause the excess amount of shares to be reclassified in accordance with the Code. 
  
 (c) Restricted Stock. The Committee is authorized to grant Restricted
Stock to Participants on the following terms and conditions: 
  
 (i) Grant and Restrictions. Restricted Stock shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose, which restrictions may
lapse separately or in combination at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements), in such installments or otherwise, as the Committee may determine at the date of
grant or thereafter. Except to the extent restricted under the terms of this Plan and any Award agreement relating to the Restricted Stock, a Participant granted Restricted Stock shall have all of the rights of a stockholder, including the right to
vote the Restricted Stock and the right to receive dividends thereon (subject to any mandatory reinvestment or other requirement imposed by the Committee). During the restricted period applicable to the Restricted Stock, the Restricted Stock may not
be sold, transferred, pledged, hypothecated, margined or otherwise encumbered by the Participant. 
  
 (ii) Forfeiture. Except as otherwise determined by the Committee, upon termination of employment during the applicable restriction
period, Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by the Company; provided that the Committee may provide, by rule or regulation or in any Award agreement, or may determine in any individual
case, that restrictions or forfeiture conditions relating to Restricted Stock shall be waived in whole or in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part the
forfeiture of Restricted Stock. 
  
 (iii)
Certificates for Stock. Restricted Stock granted under this Plan may be evidenced in such manner as the Committee shall determine. If certificates representing Restricted Stock are registered in the name of the Participant, the Committee may
require that such certificates bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company retain physical possession of the certificates, and that the Participant deliver a
stock power to the Company, endorsed in blank, relating to the Restricted Stock. 
  
 (iv) Dividends and Splits. As a condition to the grant of an Award of Restricted Stock, the Committee may require or permit a
Participant to elect that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock. Unless otherwise determined by the Committee, Stock distributed in connection with a Stock split
or Stock dividend, and other property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Stock or other property has been distributed.

  
 7. Certain Provisions Applicable to Awards. 

 
 (a) Stand-Alone and Additional Awards. Awards granted under this
Plan may, in the discretion of the Committee, be granted either alone or in addition to any other Award or any award granted under another plan of the Company, any Subsidiary, or any business entity to be acquired by the Company or a Subsidiary, or
any other right of a Participant to receive payment from the Company or any Subsidiary. 
  

 6 

 (b) Term of Awards. The term of each Award shall be for such period as may be determined by the
Committee; provided that in no event shall the term of any Option exceed a period of seven years (or such shorter term as may be required in respect of an ISO under section 422 of the Code). 
  
 (c) Form and Timing of Payment under Awards; Deferrals. Subject to the
terms of this Plan and any applicable Award agreement, payments to be made by the Company or a Subsidiary upon the exercise of an Option may be made in such forms as the Committee shall determine, including without limitation cash, Stock, other
Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis. The settlement of any Award may be accelerated, and cash paid in lieu of Stock in connection with such settlement, in the discretion
of the Committee or upon occurrence of one or more specified events (in addition to a Change in Control). Installment or deferred payments may be required by the Committee (subject to Section 10(c) of this Plan, including the consent provisions
thereof in the case of any deferral of an outstanding Award not provided for in the original Award agreement) or permitted at the election of the Participant on terms and conditions established by the Committee. Payments may include, without
limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments. Any such deferral shall only be allowed as is provided in a separate deferred compensation plan adopted by the Company. This Plan shall
not constitute an “employee benefit plan” for purposes of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. 
  
 (d) Exemptions from Section 16(b) Liability. It is the intent of the Company that the grant of any Awards to or other transactions by a Participant
who is subject to section 16 of the Exchange Act shall be exempt from section 16 pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt by such Participant). Accordingly, if any provision of this Plan
or any Award agreement does not comply with the requirements of Rule 16b-3 as then applicable to any such transaction, such provision shall be construed or deemed amended to the extent necessary to conform to the applicable requirements of Rule
16b-3 so that such Participant shall avoid liability under section 16(b). 
  
 (e) Non-Competition Agreement. Each Participant to whom an Award is granted under this Plan may be required to agree in writing as a condition to the granting of such Award not to engage in conduct in
competition with the Company or any of its subsidiaries for a period after the termination of such Participant’s employment with the Company and its Subsidiaries as determined by the Committee. 
  
 8. Performance Awards. 
  
 (a) Performance Conditions. The right of a Participant to receive a
grant or settlement of a Restricted Stock Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may
deem appropriate in establishing any performance conditions, and may exercise its discretion to reduce or increase the amounts payable under a Restricted Stock Award subject to performance conditions, except as limited under Section 8(b) in the case
of a Performance Award intended to qualify under section 162(m) of the Code. 
  
 (b) Performance Awards Granted to Designated Covered Employees. If the Committee determines that a Performance Award to be granted to an Eligible Person who is designated by the Committee as likely to be a
Covered Employee should qualify as “performance-based compensation” for purposes of section 162(m) of the Code, the grant, and/or settlement of such Performance Award may be contingent upon achievement of pre-established performance goals
and other terms set forth in this Section 8(b). 
  
 (i) Performance Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria or individual performance criteria and a targeted level or levels of performance with respect to each
of such criteria, as specified by the Committee consistent with this Section 8(b). Performance goals shall be objective and shall otherwise meet the requirements of section 162(m) of the Code and regulations thereunder (including Treasury Regulation
§1.162-27 and successor regulations thereto), including the requirement that the level or levels of performance targeted by the Committee result 

  

 7 

 
in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance Awards shall be granted
and/or settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant and/or settlement of such Performance Awards. Performance goals may differ for Performance Awards
granted to any one Participant or to different Participants. 
  
 (ii) Business and Individual Performance Criteria 
  
 (A) Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or for
specified Subsidiaries or business or geographical units of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used by the Committee in establishing performance goals for such Performance
Awards: (1) earnings per share; (2) increase in revenues; (3) increase in cash flow; (4) increase in cash flow return; (5) return on net assets, return on assets, return on investment, return on capital, or return on equity; (6) economic value
added; (7) operating margin or contribution margin; (8) net income; net income per share; pretax earnings; pretax earnings before interest, depreciation and amortization; pretax operating earnings after interest expense and before incentives,
service fees, and extraordinary or special items; or operating income; (9) total stockholder return; (10) debt reduction; (11) cash flow; or cash flow per share; and (12) any of the above goals determined on an absolute or relative basis or as
compared to the performance of a published or special index deemed applicable by the Committee including, but not limited to, the Standard & Poor’s 500 Stock Index or a group of comparable companies. 
  
 (B) Individual Performance Criteria. The grant and/or
settlement of Performance Awards may also be contingent upon individual performance goals established by the Committee. If required for compliance with section 162(m) of the Code, such criteria shall be approved by the stockholders of the Company.

  
 (iii) Performance Period; Timing for
Establishing Performance Goals. Achievement of performance goals in respect of such Performance Awards shall be measured over a performance period of up to ten years, as specified by the Committee. Performance goals shall be established not
later than 90 days after the beginning of any performance period applicable to such Performance Awards, or at such other date as may be required or permitted for “performance-based compensation” under section 162(m) of the Code.

  
 (iv) Performance Award Pool. The
Committee may establish a Performance Award pool, which shall be an unfunded pool, for purposes of measuring performance of the Company in connection with Performance Awards. The amount of such Performance Award pool shall be based upon the
achievement of a performance goal or goals based on one or more of the criteria set forth in Section 8(b)(ii) hereof during the given performance period, as specified by the Committee in accordance with Section 8(b)(iii) hereof. The Committee may
specify the amount of the Performance Award pool as a percentage of any of such criteria, a percentage thereof in excess of a threshold amount, or as another amount which need not bear a strictly mathematical relationship to such criteria.

  
 (v) Settlement of Performance Awards;
Other Terms. After the end of each performance period, the Committee shall determine the amount, if any, of (A) the Performance Award pool, and the maximum amount of potential Performance Award payable to each Participant in the Performance
Award pool, or (B) the amount of potential Performance Award otherwise payable to each Participant. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance Awards, but may not
exercise discretion to increase any such amount payable to a Covered Employee in respect of a Performance Award subject to this Section 8(b). The Committee shall specify the circumstances in which such Performance Awards shall be paid or forfeited
in the event of termination of employment by the Participant prior to the end of a performance period or settlement of a Performance Award. 
  
 (c) Written Determinations. All determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award
pool or potential individual Performance Awards and as to the 

  

 8 

 
achievement of performance goals relating to Performance Awards under Section 8(b) shall be made in writing in the case of any Award intended to qualify
under section 162(m) of the Code. The Committee may not delegate any responsibility relating to such Performance Awards. 
  
 (d) Status of Section 8(b) Awards under Section 162(m) of the Code. It is the intent of the Company that Performance Awards under Section 8(b)
hereof granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of section 162(m) of the Code and regulations thereunder (including Treasury Regulation §1.162-27 and successor regulations
thereto) shall, if so designated by the Committee, constitute “performance-based compensation” within the meaning of section 162(m) of the Code and regulations thereunder. Accordingly, the terms of Sections 8(b), (c), and (d), including
the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with section 162(m) of the Code and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with
certainty whether a given Participant will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of
Performance Awards who is likely to be a Covered Employee with respect to that fiscal year. If any provision of this Plan as in effect on the date of adoption or any agreements relating to Performance Awards that are designated as intended to comply
with section 162(m) of the Code does not comply or is inconsistent with the requirements of section 162(m) of the Code or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such
requirements. 
  
 9. Recapitalization or Reorganization.

  
 (a) Existence of Plans and Awards. The existence
of this Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or
other disposition of all or any part of its assets or business or any other corporate act or proceeding. 
  
 (b) Subdivision or Consolidation of Shares. The terms of an Award and the number of shares of Stock authorized pursuant to Section 4 for issuance
under the Plan shall be subject to adjustment from time to time, in accordance with the following provisions: 
  
 (i) If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by the issuance
of a distribution on Stock payable in Stock, or otherwise as determined in the sole discretion of the Committee) the number of shares of Stock then outstanding into a greater number of shares of Stock, then (A) the maximum number of shares of Stock
available for the Plan as provided in Section 4 shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or
securities) that may be acquired under any Award shall be increased proportionately, and (C) the price (including the exercise price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be reduced
proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions. 
  
 (ii) If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, reverse Stock split, or
otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, (A) the maximum number of shares of Stock available for the Plan as provided in Section 4 shall be decreased proportionately, and the kind of shares
or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any Award shall be decreased proportionately, and (C) the price
(including the exercise price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or value as to which outstanding
Awards remain exercisable or subject to restrictions. 
  

 9 

 (iii) Whenever the number of shares of Stock subject to outstanding Awards and the price
for each share of Stock subject to outstanding Awards are required to be adjusted as provided in this Section 9(b), the Committee shall promptly prepare a notice setting forth, in reasonable detail, the event requiring adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the change in price and the number of shares of Stock, other securities, cash, or property purchasable subject to each Award after giving effect to the adjustments. The Committee
shall promptly give each Participant such a notice. 
  
 (iv) Adjustments under Subsections 9(b)(i) and (ii) shall be made by the Committee, and its determination as to what adjustments shall be made and the extent thereof shall be final, binding, and conclusive. No fractional interest shall be
issued under the Plan on account of any such adjustments. 
  
 (c)
Recapitalizations and Corporate Changes. If the Company recapitalizes, reclassifies its capital stock, or otherwise changes its capital structure (a “recapitalization”), the number and class of shares of Stock covered by an Option
theretofore granted shall be adjusted so that such Option shall thereafter cover the number and class of shares of capital stock and securities to which the holder would have been entitled pursuant to the terms of the recapitalization if,
immediately prior to the recapitalization, the holder had been the holder of record of the number of shares of Stock then covered by such Option. If (i) the Company merges with or into any entity or is a party to a consolidation, (ii) the Company
sells, leases or exchanges or agrees to sell, lease or exchange all or substantially all of its assets to any other Person or entity, (iii) the Company is to be dissolved and liquidated, (iv) any Person or entity, including a “group” as
contemplated by section 13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power), or
(v) as a result of or in connection with a contested election of member of the Board (“Directors”), the persons who were Directors before such election shall cease to constitute a majority of the Board (each such event is referred to
herein as a “Corporate Change”), no later than (x) ten days after the approval by the stockholders of the Company of such merger, consolidation, reorganization, sale, lease or exchange of assets or dissolution or such election of Directors
or (y) thirty days after a Corporate Change of the type described in clause (iv), the Committee, acting in its sole discretion without the consent or approval of any holder, shall effect one or more of the following alternatives, which alternatives
may vary among individual holders and which may vary among Options held by any individual holder: (A) accelerate the time at which Options then outstanding may be exercised so that such Options may be exercised in full for a limited period of time
on or before a specified date (before or after such Corporate Change) fixed by the Committee, after which specified date all unexercised Options and all rights of holders thereunder shall terminate, (B) require the mandatory surrender to the Company
by selected holders of some or all of the outstanding Options held by such holders (irrespective of whether such Options are then exercisable under the provisions of the Plan) as of a date, before or after such Corporate Change, specified by the
Committee, in which event the Committee shall thereupon cancel each such Option and pay or cause to be paid to each holder the securities or other property (including, without limitation, cash) referred to in clause (D) below with respect to the
shares of Stock subject to such Option in exchange for payment by such holder of the exercise price(s) under such Option for such shares, (C) make such adjustments to Options then outstanding as the Committee deems appropriate to reflect such
Corporate Change (provided, however, that the Committee may determine in its sole discretion that no adjustment is necessary to Options then outstanding), or (D) provide that the number and class of shares of Stock covered by an Option theretofore
granted shall be adjusted so that such Option shall thereafter cover the number and class of shares of stock or other securities or property (including, without limitation, cash) to which the holder would have been entitled pursuant to the terms of
the agreement of merger, consolidation or sale of assets and dissolution if, immediately prior to such merger, consolidation or sale of assets and dissolution, the holder had been the holder of record of the number of shares of Stock then covered by
such Option. 
  
 (d) Change in Control. Notwithstanding any
provision of the Plan to the contrary, if (1) the Company is involved in a merger or consolidation and, immediately after giving effect to such merger or consolidation, less than 50% of the total voting power of the outstanding voting stock of the
surviving or resulting entity and of the parent company of the surviving or resulting entity, if any, is then “beneficially owned” (within the meaning of Rule 13d-3 under the Exchange Act) in the aggregate by the stockholders of the
Company immediately prior to 

  

 10 

 
such merger or consolidation or (2) any person or entity, including a “group” as contemplated by section 13(d)(3) of the Exchange Act, acquires or
gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based upon voting power) other than as a result of a merger or consolidation in which 50% or
more of the total voting power of the outstanding voting stock of the parent company of the surviving or resulting entity is beneficially owned in the aggregate by the stockholders of the Company immediately prior to such merger or consolidation,
then, except as provided in any Option or Restricted Stock Award agreement, (I) outstanding Options and Restricted Stock Awards shall immediately vest and become exercisable or satisfiable, as applicable, and (II) any such Option shall continue to
be exercisable for the remainder of the applicable Option term unless the Committee has determined, in its sole discretion, to take the action described in clause (A) or (B) above with respect to such Option. The provisions contained in this Section
7(c) shall not terminate any rights of the holder to further payments pursuant to any other agreement with the Company following a Corporate Change. 
  
 (e) Additional Issuances. Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or securities
convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such
shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the purchase price
per share, if applicable. 
  
 (f) Restricted Stock Awards.
Without limiting the applicability of Section 9(d), with respect to any Restricted Stock Awards outstanding at the time a Corporate Change occurs, the Committee may, in its discretion and as of a date determined by the Committee, fully vest any or
all Stock awarded to the holder pursuant to such Restricted Stock Award and then outstanding and, upon such vesting, all restrictions applicable to such Restricted Stock Award shall terminate as of such date. Any action by the Committee pursuant to
this Section 9(f) may vary among individual holders and may vary among the Restricted Stock Awards held by any individual holder. 
  
 10. General Provisions. 
  
 (a) Transferability. 
  
 (i) Permitted Transferees. The Committee may, in its discretion, permit a Participant to transfer all or any portion of an Option,
or authorize all or a portion of such Options to be granted to an Eligible Person to be on terms which permit transfer by such Participant; provided that, in either case the transferee or transferees must be any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, in each case with respect to the Participant, any
Person sharing the Participant’s household (other than a tenant or employee of the Company), a trust in which these Persons have more than 50% of the beneficial interest, a foundation in which these Persons (or the Participant) control the
management of assets, and any other entity in which these Persons (or the Participant) own more than 50% of the voting interests (collectively, “Permitted Transferees”); provided further that, (A) there may be no consideration for any such
transfer and (B) subsequent transfers of Options transferred as provided above shall be prohibited except subsequent transfers back to the original holder of the Option and transfers to other Permitted Transferees of the original holder. Agreements
evidencing Options with respect to which such transferability is authorized at the time of grant must be approved by the Committee, and must expressly provide for transferability in a manner consistent with this Subsection 10(a)(i). 
  
 (ii) Qualified Domestic Relations Orders. An Option
or Restricted Stock Award may be transferred, to a Permitted Transferee, pursuant to a qualified domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of written notice of such transfer and a
certified copy of such order. 
  
 (iii) Other
Transfers. Except as expressly permitted by Subsections 10(a)(i) and 10(a)(ii), Options and Restricted Stock Awards shall not be transferable other than by will or the laws of descent and distribution. 

  

 11 

 
Notwithstanding anything to the contrary in this Section 10, an Incentive Stock Option shall not be transferable other than by will or the laws of descent
and distribution. 
  
 (iv) Effect of
Transfer. Following the transfer of any Award as contemplated by Subsections 10(a)(i), 10(a)(ii) and 10(a)(iii), (A) such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer,
provided that the term “Participant” shall be deemed to refer to the Permitted Transferee, the recipient under a qualified domestic relations order, the estate or heirs of a deceased Participant, or other transferee, as applicable, to the
extent appropriate to enable the Participant to exercise the transferred Award in accordance with the terms of this Plan and applicable law and (B) the provisions of the Award relating to exercisability hereof shall continue to be applied with
respect to the original Participant and, following the occurrence of any such events described therein, the Award shall be exercisable by the Permitted Transferee, the recipient under a qualified domestic relations order, the estate or heirs of a
deceased Participant, or other transferee, as applicable, only to the extent and for the periods that would have been applicable in the absence of the transfer. 
  
 (v) Procedures and Restrictions. Any Participant desiring to transfer an Award as permitted under
Subsections 10(a)(i), 10(a)(ii) or 10(a)(iii) shall make application therefor in the manner and time specified by the Committee and shall comply with such other requirements as the Committee may require to assure compliance with all applicable
securities laws. The Committee shall not give permission for such a transfer if (A) it would give rise to short-swing liability under section 16(b) of the Exchange Act or (B) it may not be made in compliance with all applicable federal, state and
foreign securities laws. 
  
 (vi)
Registration. To the extent the issuance to any Permitted Transferee of any shares of Stock issuable pursuant to Awards transferred as permitted in this Section 10(a) is not registered pursuant to the effective registration statement of the
Company generally covering the shares to be issued pursuant to this Plan to initial holders of Awards, the Company shall not have any obligation to register the issuance of any such shares of Stock to any such transferee. 
  
 (b) Taxes. The Company and any Subsidiary is authorized to withhold
from any Award granted, or any payment relating to an Award under this Plan, including from a distribution of Stock, amounts of withholding and other taxes due or potentially payable in connection with any transaction involving an Award, and to take
such other action as the Committee may deem advisable to enable the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to
withhold or receive Stock or other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations, either on a mandatory or elective basis in the discretion of the Committee. 
  
 (c) Changes to this Plan and Awards. The Board may amend, alter,
suspend, discontinue or terminate this Plan or the Committee’s authority to grant Awards under this Plan without the consent of stockholders or Participants, except that any amendment or alteration to this Plan, including any increase in any
share limitation, shall be subject to the approval of the Company’s stockholders not later than the annual meeting next following such Board action if such stockholder approval is required by any federal or state law or regulation or the rules
of any stock exchange or automated quotation system on which the Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine to submit other such changes to this Plan to stockholders for approval; provided that,
without the consent of an affected Participant, no such Board action may materially and adversely affect the rights of such Participant under any previously granted and outstanding Award. The Committee may waive any conditions or rights under, or
amend, alter, suspend, discontinue or terminate any Award theretofore granted and any Award agreement relating thereto, except as otherwise provided in this Plan; provided that, without the consent of an affected Participant, no such Committee
action may materially and adversely affect the rights of such Participant under such Award. 
  
 (d) Limitation on Rights Conferred Under Plan. Neither this Plan nor any action taken hereunder shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or
Participant 

  

 12 

 
or in the employ or service of the Company or a Subsidiary, (ii) interfering in any way with the right of the Company or a Subsidiary to terminate any
Eligible Person’s or Participant’s employment or service at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under this Plan or to be treated uniformly with other Participants and employees, or
(iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is duly issued or transferred shares of Stock in accordance with the terms of an Award. 
  
 (e) Unfunded Status of Awards. This Plan is intended to constitute an
“unfunded” plan for certain incentive awards. 
  
 (f)
Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to
adopt such other incentive arrangements as it may deem desirable, including incentive arrangements and awards which do not qualify under section 162(m) of the Code. Nothing contained in this Plan shall be construed to prevent the Company or any
Subsidiary from taking any corporate action which is deemed by the Company or such Subsidiary to be appropriate or in its best interest, whether or not such action would have an adverse effect on this Plan or any Award made under this Plan. No
employee, beneficiary or other person shall have any claim against the Company or any Subsidiary as a result of any such action. 
  
 (g) Payments in the Event of Forfeitures; Fractional Shares. Unless otherwise determined by the Committee, in the event of a forfeiture of an Award
with respect to which a Participant paid cash or other consideration to the Company in exchange for such Award, the Participant shall be repaid the amount of such cash or other consideration. No fractional shares of Stock shall be issued or
delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, other Awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be
forfeited or otherwise eliminated. 
  
 (h) Severability. If
any provision of this Plan is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and the Plan shall be construed and enforced as if
the illegal or invalid provision had never been included herein. If any of the terms or provisions of this Plan or any Award agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are
subject to section 16(b) of the Exchange Act) or section 422 of the Code (with respect to Incentive Stock Options), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule
16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or section 422 of the Code. With respect to Incentive Stock Options, if this Plan does not contain any
provision required to be included herein under section 422 of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set out at length herein; provided, further, that, to the
extent any Option that is intended to qualify as an Incentive Stock Option cannot so qualify, that Option (to that extent) shall be deemed an Option not subject to section 422 of the Code for all purposes of the Plan. 
  
 (i) Governing Law. All questions arising with respect to the
provisions of the Plan and Awards shall be determined by application of the laws of the State of Delaware, without giving effect to any conflict of law provisions thereof, except to the extent Delaware law is preempted by federal law. The obligation
of the Company to sell and deliver Stock hereunder is subject to applicable federal and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock.

  
 (j) Conditions to Delivery of Stock. Nothing herein or
in any Award granted hereunder or any Award agreement shall require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act or any
similar or superseding 

  

 13 

 
statute or statutes, any other applicable statute or regulation, or the rules of any applicable securities exchange or securities association, as then in
effect. At the time of any exercise of an Option or at the time of any grant of a Restricted Stock Award, the Company may, as a condition precedent to the exercise of such Option or vesting of any Restricted Stock Award, require from the Participant
(or in the event of his death, his legal representatives, heirs, legatees, or distributees) such written representations, if any, concerning the holder’s intentions with regard to the retention or disposition of the shares of Stock being
acquired pursuant to the Award and such written covenants and agreements, if any, as to the manner of disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in the
event of the holder’s death, his legal representatives, heirs, legatees, or distributees) will not involve a violation of the Securities Act or any similar or superseding statute or statutes, any other applicable state or federal statute or
regulation, or any rule of any applicable securities exchange or securities association, as then in effect. No Option shall be exercisable and no restriction on any Restricted Stock Award shall lapse with respect to a Participant unless and until
the holder thereof shall have paid cash or property to, or performed services for, the Company or any of its Subsidiaries that the Committee believes is equal to or greater in value than the par value of the Stock subject to such Award. 

 
 (k) Plan Effective Date and Stockholder Approval. This Plan was
adopted by the Compensation Committee of the Board on March 30, 2005, subject to approval by the stockholders of the Company. 
  
 (l) Term of Plan. No Awards may be granted under the Plan after the fifth anniversary of the Effective Date. The Plan shall remain in effect until
the later of (i) the date all Options granted under the Plan expire, are exercised or are forfeited, and (ii) the date all Restricted Stock Awards granted under the Plan become non-forfeitable or are forfeited. 
  

 14

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