Document:

Exhibit 10.1

SUBLEASE AGREEMENT

THIS
SUBLEASE AGREEMENT (“Sublease”) made as of the 28th day of
July, 2006 by and between Omtool, Ltd., a Delaware corporation (hereinafter “Omtool” or “Sublessor”) with a principal place of
business at 6 Riverside Drive, Andover, MA 01810 and eSped.com, Inc., a
Delaware corporation (hereinafter “eSped”
or “Sublessee”) with a
place of business at 8A Industrial Way Salem, NH 03079.

WHEREAS Omtool has leased approximately 44,048
square rentable feet of space (the “Omtool
Premises”) located on the first and second floors of the
building located at 6 Riverside Drive, Andover, MA (the “Building”) pursuant to that certain
Lease Agreement dated January 6, 2006 (as the same may be modified or amended
from time to time, the “Lease”)
by and between Omtool, as tenant, and SFI I, LLC, as landlord (herein “Landlord”).  A copy of the Lease is annexed hereto as Exhibit A; and

WHEREAS eSped desires to sublease from Omtool, and
Omtool desires to sublease to eSped, a portion of the Omtool Premises
consisting of approximate seven thousand twenty five (7,025) rentable square
feet of space, as more particularly described on Exhibit B attached hereto (the “Subleased Premises”), all subject to
and in accordance with the provisions of this Sublease;

NOW
THEREFORE, for Ten
Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, Sublessor and Sublessee
hereby covenant and agree as follows:

1.             Capitalized terms used in this
Sublease and not otherwise defined herein shall have the meanings ascribed to
such terms in the Lease.

2.             REFERENCE DATA.

	
  Definitions:

  	
   

  
	
   

  	
   

  
	
  2.1 Commencement Date:

  	
  July 1, 2006

  
	
   

  	
   

  
	
  2.2 Term:

  	
  Fifty-eight (58) months

  
	
   

  	
   

  
	
  2.3 eSped’s Pro
  Rata Share of Operating Costs and Taxes:

  	
  16% (7,025/44,048)

  

 

 

 

	
  2.4 Permitted Use:

  	
  Professional Office and related uses, and for no other
  use

  
	
   

  	
  or  urpose.

  
	
   

  	
   

  
	
  2.5 Base Rent:

  	
  Base Rent under this Sublease shall be the following
  amounts 

  
	
   

  	
  for the following periods of time for so long as
  this Sublease 

  
	
   

  	
  remains in force and effect:

  

 

	
  Lease Month

  	
   

  	
  Annualized per RSF

  	
   

  	
  Monthly Base Rent

  
	
  1-58

  	
   

  	
  $14.32

  	
   

  	
  $8,383.17

  

 

	
  2.6 Omtool’s

  	
  Chief Financial Officer

  
	
  Notice/Mailing
  Address:

  	
  Omtool, Ltd.

  
	
   

  	
  6 Riverside Drive

  
	
   

  	
  Andover, MA 01810

  
	
   

  	
   

  
	
  2.7 eSped’s
  Notice/Mailing

  	
  eSped.com, Inc.

  
	
  Address prior to

  	
  8A Industrial Way

  
	
  Commencement
  Date:

  	
  Salem, NH 03079

  
	
   

  	
   

  
	
  eSped’s
  Notice/Mailing

  	
  eSped.com, Inc.

  
	
  Address
  following

  	
  6 Riverside Drive

  
	
  Commencement
  Date:

  	
  Andover, MA 01810

  
	
   

  	
   

  
	
  2.8 Sublessee’s
  Trade Name:

  	
  eSped.com

  
	
   

  	
   

  
	
  2.9 Sublessee
  Emergency Contact:

  	
  Mark Ventre

  
	
   

  	
   

  
	
  2.10 Broker:

  	
  None

  
	
   

  	
   

  
	
  2.11 Security
  Deposit:

  	
  None

  
	
   

  	
   

  
	
  2.12 Sublessor’s
  Work:

  	
  None

  
	
   

  	
   

  
	
  2.13 Signage:

  	
  Subject to Landlord’s approval, if required under
  the Lease, Sublessee shall be entitled  to maintain a vinyl door sign.

  
	
   

  	
   

  
	
  2.14 Required
  Insurance:

  	
  As required in Lease.

  

 

 2
 

 

 

3.             Sublessor hereby leases to
Sublessee, and Sublessee hereby leases from Sublessor, the Subleased Premises
and the common areas (to be used in common with others entitled thereto) more
specifically described in the Lease for the Permitted Uses.

4.             The Term of this Sublease shall be
for a period of fifty-eight (58) months commencing on the Commencement Date and
terminating on the last calendar day of the fifty-eighth (58th) month of the Term, unless earlier terminated in accordance with the
provisions hereof.

5.             Sublessee covenants and agrees to
pay to Sublessor Base Rent in the amounts set forth above for so long as this
Sublease remains in full force and effect. 
Each payment of Base Rent shall be made in advance on or before the
first day of each calendar month of the Term at Sublessor’s address shown
herein or at such place as Sublessor shall from time to time designate in
writing and otherwise in accordance with the provisions of the Lease.

6.             Sublessee shall pay to Sublessor as
additional rent (“Additional Rent”) eSped’s Pro Rata Share of Operating
Costs and Taxes.  Sublessor may make a
good faith estimate of the Additional Rent to be due by Sublessee for any
calendar year or part thereof during the Term. 
During each calendar year or partial calendar year of the Term,
Sublessee shall pay to Sublessor, in advance concurrently with each monthly
installment of Base Rent, an amount equal to the estimated Additional Rent for
such calendar year or part thereof divided by the number of months
therein.  Sublessor and Sublessee agree
that eSped’s estimated Pro Rata Share of Operating Costs and Taxes for the
first Lease Year shall be $3.67 and $2.06 per rentable square foot of Subleased
Premises, respectively; and accordingly, eSped shall pay to Sublessor, in
advance concurrently with each monthly installment of Base Rent, $5.73 per
rentable square foot of Subleased Premises as Additional Rent hereunder during
the first lease year.  From time to time,
Sublessor may estimate and re-estimate the Additional Rent to be due by
Sublessee and deliver a copy of the estimate or re-estimate to Sublessee.  Thereafter, the monthly installments of
Additional Rent payable by Sublessee shall be appropriately adjusted in
accordance with the estimations so that, by the end of the calendar year in
question, Sublessee shall have paid all of the Additional Rent as estimated by
Sublessor.  Any amounts paid based on
such an estimate shall be subject to adjustment as herein provided when actual
Operating Costs  and Taxes are available
for each calendar year or tax year, as applicable.  By May 1 of each calendar year, or as soon
thereafter as practicable, Sublessor shall furnish to Sublessee a statement of
Operating Costs for the previous year and of the Taxes for the previous year
(the “Operating
Costs and Tax Statement”). 
If Sublessee’s estimated payments of Operating Costs or Taxes under this
Section 6 for the year covered by the Operating Costs and Tax Statement
exceed Subtenant’s share of such items as indicated in the Operating Costs and
Tax Statement, then Sublessor shall promptly credit or reimburse Sublessee for
such excess; likewise, if Sublessee’s estimated payments of Operating Costs or
Taxes under this Section 6 for such year are less than Sublessee’s share of
such items as indicated in the Operating Costs and Tax Statement, then
Sublessee shall, within not more than ten (10) business days, pay Sublessor
such deficiency.

 3
 

 

 

Sublessee shall also pay to
Sublessor, as Additional Rent, any additional operating expenses agreed by
Sublessor and Sublessee to be required to keep the Building in good operating
condition.

7.             Security Deposit.  [intentionally omitted].

8.             Additional Sublessee Covenants.  Sublessee hereby covenants:

(a)           To comply with the
terms and provisions of the Lease applicable to the Subleased Premises except
as specifically modified by provisions of this Sublease, and to do nothing
which will subject the Lease to termination by Landlord under the provisions of
the Lease.

(b)           To maintain the Subleased
Premises in the same condition as they are at the commencement of the Term,
reasonable wear and tear, damage by fire and other casualty excepted.

(c)           In the event that
this Sublease shall terminate for any reason prior to the expiration of the Term,
to remove promptly all of Sublessee’s goods and effects from the Subleased
Premises upon the termination of this Sublease and to deliver to Sublessor the
Subleased Premises in the same condition as they were at the commencement of
the Term, or as they were put during the Term, reasonable wear and tear, damage
by fire and other casualty excepted.

(d)           To use the Subleased
Premises only for the Permitted Uses.

9.             Condition and Alterations of the
Subleased Premises.  Sublessee and
Sublessor hereby covenant and agree that:

(a)           Sublessee has
inspected the Subleased Premises and accepts the same “AS IS” as of the
date of this Sublease.  Sublessor shall
have no obligation or duty to Sublessee regarding the preparation of the
Subleased Premises for occupancy of Sublessee, except that Sublessor shall
deliver full and exclusive possession thereof to Sublessee on the Commencement
Date, the Subleased Premises to be then free of all tenants and occupants and
Sublessor’s personal property, and in broom clean condition, and otherwise in
the same condition the Subleased Premises are in as of the date of this
Sublease.

(b)           Notwithstanding any
provisions of the Lease or this Sublease to the contrary, neither Landlord nor
Sublessor shall have any obligations to perform any tenant improvements or to
provide Sublessee with any tenant improvement allowance in connection with the
Subleased Premises.

(c)           In the event
Sublessee desires to make alterations and improvements to the Subleased
Premises, Sublessee shall obtain the prior written consent of :  (i) Sublessor, which consent shall not
be unreasonably withheld or delayed by Sublessor; and (ii) Landlord
pursuant to the provisions of the Lease.

 4
 

 

 

10.           Lease.

(a)           Except as may be
inconsistent with the terms hereof, all of the terms, provisions, covenants and
conditions contained in the Lease are incorporated herein by reference and are
made a part of this Sublease with the same force and effect as if Sublessor
were the Landlord under the Lease and Sublessee were the Tenant thereunder from
and after the Sublease Commencement Date, and: 
(i) in case of any breach of this Sublease by Sublessor, Sublessee
shall have all of the rights and remedies against the Sublessor as would be
available to Tenant against Landlord under the Lease if such breach were made
by the Landlord thereunder; and (ii) in case of any breach of this
Sublease by Sublessee, Sublessor shall have all of the rights and remedies
against the Sublessee as would be available to Landlord against Tenant under
the Lease if such breach were made by the Tenant thereunder.  Further, any references in the Lease to the “Premises”
shall mean and be deemed to be references to the “Subleased Premises.”

(b)           Sublessee shall not
do anything which would cause the Lease to be terminated or forfeited, and
Sublessee shall indemnify and hold Sublessor harmless from and against any and
all claims, liabilities, losses, damage, demands, expenses (including without
limitation reasonable attorney’s fees), actions and causes of action of any
kind whatsoever by reason of any breach or default on the part of Sublessee
hereunder by reason of which the Lease may be terminated or forfeited,
including, without limitation, the failure to pay any and all amounts due and
payable by Sublessee under this Sublease, whether characterized as Base Rent,
Additional Rent, or otherwise, on or before the date when due pursuant to the
provisions of this Sublease.

(c)           This Sublease is
separate from and subject and subordinate to the Lease. If the Lease
terminates, this Sublease shall automatically terminate, and Sublessor shall
not be liable to Sublessee for any damages arising out of such termination.

(d)           Sublessee shall have
all of the rights of Sublessor under the Lease with respect to the Subleased
Premises.

(e)           Sublessor agrees to
fulfill all its obligations under the Lease, including the payment of all
amounts due and payable by Sublessor under the Lease, whether characterized as
Basic Rent, Additional Rent, Taxes, or otherwise, on or before the date when
due pursuant to the Lease.  Sublessor
shall not cause a termination of the Lease, nor enter into any agreement that
will modify or amend the Lease so as to adversely affect Sublessee’s right to
use and occupy the Subleased Premises or any other rights of Sublessee under this
Sublease, or increase or adversely affect the obligations of Sublessee under
this Sublease.  Sublessor agrees to
indemnify, defend and hold Sublessee harmless from and against any claim with
respect to matters occurring or arising prior to the Commencement Date from
Sublessor’s use of the Subleased Premises or the conduct of its business or
from any activity, work or thing done, permitted or suffered by Sublessor on or
about the Subleased Premises, and from any claim from injury or damage to any
person or property while on or about the Subleased Premises.  Sublessor shall also indemnify and hold
Sublessee harmless from and against any and all claims, liabilities,

 5
 

 

 

losses,
damage, demands, expenses (including, without limitation, reasonable attorney’s
fees), actions and causes of action of any kind whatsoever by reason of any
breach or default on the part of Sublessor of the terms of the Lease,
including, without limitation, the failure to pay any and all amounts due and
payable by Sublessor under the Lease, whether characterized as Basic Rent,
Additional Rent, or otherwise, on or before the date when due pursuant to the
Lease; provided, however, that if Sublessee fails to pay to Sublessor any and
all amounts due and payable by Sublessee under this Sublease, whether
characterized as Base Rent, Additional Rent, or otherwise, on or before the
date when due hereunder, Sublessee shall thereby forego and waive its right
hereunder with respect to Sublessor’s liability for and indemnification of
Sublessee as to any and all claims, liabilities, losses, damage, demands,
expenses (including, without limitation, reasonable attorney’s fees), actions
and causes of action related thereto.

(f)            Sublessor, as
sublessor under this Sublease, shall have the benefit of all rights, remedies
and limitations of liability enjoyed by Landlord, as the landlord under the
Lease, but (i) Sublessor shall have no obligations under this Sublease to
perform the obligations of Landlord, as landlord under the Lease, including
without limitation any obligation to provide services or maintain insurance;
(ii) Sublessor shall not be bound by any representations or warranties of
the Landlord under the Lease; (iii) in any instance where the consent of
Landlord is required under the terms of the Lease, the consent of Sublessor and
Landlord shall be required; and (iv) Sublessor shall not be liable to
Sublessee for any failure or delay in Landlord’s performance of its
obligations, as landlord under the Lease; provided, however, that whenever
there shall be any right to enforce any rights against Landlord under the Lease
with respect to the Subleased Premises, including without limitation, a default
by Landlord relating to the Subleased Premises, Sublessor shall promptly notify
eSped in writing of such default, and Sublessor shall use reasonable efforts to
efforts to enforce such rights.  If such
a request is made and Sublessor fails to enforce such rights within a
reasonable period of time thereafter, and Landlord fails to cure, then eSped
shall have the right, in its own name, or in Sublessor’s name, to attempt to
enforce any such rights of eSped, at its sole expense.

11.           Assignment and Subletting.   Sublessee shall not directly or indirectly
transfer or assign any of its right, title or interest in and to this Sublease
(whether by operation of law or otherwise) or sublet any portion of the
Subleased Premises without the prior written consent of Landlord and Sublessor,
which consent of Sublessor shall not be unreasonably withheld.

12.           Broker.  Each of the parties hereto represents and
warrants to the other that it has not dealt with any broker in connection with
the negotiation and approval of this Sublease, and each party shall indemnify
and hold harmless the other against any claim for brokerage fees due to such
party’s breach of its representation and warranty under this Section.

13.           Insurance.  Sublessee shall carry such insurance with
respect to the Subleased Premises as is required of Sublessor under the Lease
in the amounts set forth above.  Both
Sublessor and Landlord shall be named as additional insureds on all policies

 6
 

 

 

required to be carried by
Sublessee.  Certificates of Insurance
evidencing Sublessee’s insurance coverage shall be deposited with Sublessor and
Landlord prior to the Commencement Date.

14.           Notices.  All notices required or permitted hereunder
shall be in writing and shall be deemed duly served if and when delivered by
hand or mailed by registered, certified or express mail, postage prepaid,
return receipt requested, and addressed to the applicable notice address set
forth above.

15.           Severability.  If any provision of this Sublease shall to
any extent be determined by any court of competent jurisdiction to be invalid
or unenforceable for any reason, the parties agree to amend this Sublease so as
to effectuate the original intent of Sublessor and Sublessee.

16.           Entire Agreement; Amendment.  This Sublease may not be amended, altered or
modified except by instrument in writing and executed by Sublessor and
Sublessee and approved by Landlord.

17.           Governing Law.  This Sublease shall be given by and construed
in accordance with the laws of the Commonwealth of Massachusetts.

18.           Binder and Inure.  This Sublease shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and
assigns.

[Remainder of page
intentionally left blank. Signatures appear on next following page.]

 7
 

 

 

Executed as a sealed instrument, all as of
the day and year first above written.

	
  eSped.com, Inc.

  	
  Omtool, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ George Dhionis

  	
  By:

  	
  /s/ Daniel A. Coccoluto

  
	
   

  	
  Duly authorized officer

  	
   

  	
  Duly authorized officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  July 28, 2006

  	
  Date:

  	
  July 28, 2006

  

 

 8

 

 

EXHIBIT A

Attached as Exhibit 10.1 to Omtool, Ltd.’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 12, 2006.

 

 

EXHIBIT B

Attached hereto.Exhibit 10.1

ALLIANT TECHSYSTEMS INC.

EXECUTIVE OFFICER INCENTIVE PLAN

SECTION 1.           PURPOSE AND EFFECTIVE DATE

1.1           Purpose
of this Plan.  The purpose of this
Executive Officer Incentive Plan (this “Plan”) is to provide incentive
compensation to executive officers of Alliant Techsystems Inc. (the “Company”)
in accordance with the Company’s “pay-for-performance” philosophy by directly
relating awards payable under this Plan to company, business unit and/or
individual performance.  This Plan is
intended to permit the grant of awards under this Plan to qualify as “qualified
performance-based compensation” within the meaning of Section 162(m) of the
Code (as defined in Section 2.1).

1.2           Effective
Date.  This Plan will be effective as
of the date of approval by the stockholders of the Company in accordance with
applicable law (the “Effective Date”).

SECTION 2.           DEFINITIONS

2.1           Definitions.  The following capitalized terms used in this
Agreement will have the meanings set forth below:

(a)           “Actual Award”
means as to any Performance Period, the actual award (if any) payable to a
Participant for the Performance Period. 
Each Actual Award will be determined pursuant to the provisions of
Section 3.6.

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

(c)           “Cause” means
the occurrence of any of the following:

(i)            the Participant
willfully and continually fails to substantially perform his or her duties of
employment (other than because of a mental or physical impairment) for a period
of at least 30 days after being given notice of such failure;

(ii)           the Participant
(A) engages in any act of dishonesty, wrongdoing or moral turpitude
(whether or not a felony) or (B) violates the Company’s Code of Conduct or
a Company policy, which violation has an adverse effect upon the Company; or

(iii)          the Participant
breaches his or her duty of loyalty or commits an unauthorized disclosure of
proprietary or confidential information of the Company.

(d)           “Code” means
the Internal Revenue Code of 1986, as amended from time to time.

 

 

(e)           “Committee”
means (i) the Personnel and Compensation Committee of the Board or
(ii) if no Personnel and Compensation Committee exists, then a committee
of Board members appointed by the Board to administer this Plan in accordance
with Section 5.1.

(f)            “Covered
Employee Participant” means any Participant who is reasonably expected to
be a “covered employee” within the meaning of Section 162(m)(3) of the Code
with respect to any Performance Period in which the Company would be entitled
to take a compensation deduction for an Actual Award to such Participant
(determined without regard to the limitation on deductibility imposed by
Section 162(m) of the Code).

(g)           “Covered Employee
Performance Goals” means objective and measurable performance goals
determined by the Committee, in its discretion, to be applicable to a Covered
Employee Participant for a Performance Period. 
As determined by the Committee, the Covered Employee Performance Goals
for any award may provide for a targeted level or levels of achievement using
one or more of the following measures: 
(i) sales or revenues (including, without limitation, sales or
revenue growth); (ii) gross profit; (iii) income before interest and
taxes; (iv) income before interest, taxes, depreciation and amortization;
(v) net income; (vi) net income from operations; (vii) earnings
per Share; (viii) return measures (including, without limitation, return
on assets, capital, invested capital, equity, sales or revenues);
(ix) productivity ratios; (x) expense or cost reduction measures;
(xi) margins; (xii) operating efficiency; (xiii) market share;
(xiv) customer satisfaction; (xv) working capital targets;
(xvi) budget comparisons; (xvii) implementation or completion of
specified projects or processes; (xviii) the formation of joint ventures,
establishment of research or development collaborations or the completion of
other transactions; (xix) cash flow (including, without limitation,
operating cash flow, free cash flow and cash flow return on equity);
(xx) Share price (including, without limitation, growth in Share price and
total stockholder return); (xxi) profitability of an identifiable business
unit or product; (xxii) economic profit or economic value added;
(xxiii) cash value added; (xxiv) market share; or (xxv) Individual
Objectives.  The Covered Employee
Performance Goals may differ from Covered Employee Participant to Covered
Employee Participant and from award to award.

(h)           “Determination
Date” means the 90th day of any Performance Period.

(i)            “Disability”
or “Disabled” will have the meaning given to such term in the Company’s
governing long-term disability plan or, if no such plan exists, such term will
mean total and permanent disability as determined under the rules of the Social
Security Administration.

(j)            “Eligible Employee”
means any executive officer of the Company required to file reports of
beneficial ownership with the Securities and Exchange Commission pursuant to
Section 16(a) of the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations promulgated thereunder.

(k)           “Fiscal Year”
means the fiscal year of the Company.

 2
 

 

 

(l)            “Individual
Objectives” means as to a Participant for any Performance Period, objective
and measurable individual performance goals approved by the Committee in its
discretion.

(m)          “Maximum Award”
means as to a Covered Employee Participant for any Fiscal Year, the lesser of
(i) the maximum award payable under this Plan for any such Fiscal Year or
(ii) $5,000,000.

(n)           “Other
Participant” means a Participant who is not a Covered Employee Participant.

(o)           “Other
Participant Performance Goals” means the performance goals determined by
the Committee, in its discretion, to be applicable to an Other Participant for
a Performance Period.  As determined by
the Committee, the Other Participant Performance Goals may provide for a
targeted level or levels of achievement using one or more of the Covered
Employee Performance Goals or any other performance measures.  The Other Participant Performance Goals may
differ from Other Participant to Other Participant and from award to award.

(p)           “Participant”
means as to any Performance Period, an Eligible Employee who has been selected
by the Committee for participation in this Plan for such Performance Period.

(q)           “Payout Formula”
means as to any Performance Period, the formula or payout matrix established by
the Committee pursuant to Section 3.3 in order to determine the Actual Awards
(if any) to be paid to Participants.  The
formula or matrix may differ from Participant to Participant.

(r)            “Performance
Goal” means a Covered Employee Performance Goal or an Other Participant
Performance Goal, as the case may be.

(s)           “Performance
Period” means any Fiscal Year or other period determined by the Committee
pursuant to Section 3.2(a) over which achievement of Performance Goals
will be measured.  A Performance Period
may be a one-year period or any longer or shorter period, and may differ
from Participant to Participant and from award to award.

(t)            “Retirement”
means the voluntary retirement of a Participant pursuant to the terms of any
retirement plan of the Company.

(u)           “Shares”
means shares of the Company’s common stock.

(v)           “Termination of
Service” means a cessation of the employee-employer relationship between an
Eligible Employee and the Company for any reason, including, without
limitation, a termination by resignation, discharge, death, Disability,
Retirement, or the sale of any subsidiary or other affiliate of the Company or
the sale of a business unit or division of the Company, but excluding any such
termination where there is a simultaneous reemployment by the Company or any
subsidiary or other affiliate of the Company.

 3
 

 

 

2.2           Financial
and Accounting Terms.  Except as
otherwise expressly provided or unless the context otherwise requires,
financial and accounting terms (including, without limitation, terms contained
in the definition of “Covered Employee Performance Goals” set forth in Section
2.1 and in Section 3.2(c)) are used as defined for purposes of, and shall be
determined in accordance with, generally accepted accounting principles in the
United States and derived from the consolidated financial statements of the
Company prepared in the ordinary course of business and filed with the
Securities and Exchange Commission.

SECTION 3.           SELECTION OF PARTICIPANTS AND
DETERMINATION OF AWARDS

3.1           Selection
of Participants.  The Committee, in
its sole discretion, will select the Eligible Employees of the Company who will
be Participants for any Performance Period. 
Participation in this Plan is in the sole discretion of the Committee,
and on a Performance Period by Performance Period basis.  Accordingly, an Eligible Employee who is a
Participant for a given Performance Period is in no way guaranteed or assured
of being selected for participation in any subsequent Performance Period.

3.2           Determination
of Performance Period and Performance Goals.

(a)           The Committee, in
its sole discretion, will determine the Performance Period applicable to awards
made to Participants under this Plan.

(b)           The Committee, in
its sole discretion, will establish the Performance Goals for each Participant
for each Performance Period.  Such
Performance Goals will be set forth in writing.

(c)           The Committee, in
its sole discretion, may specify that the achievement of the Performance Goals
will be determined without regard to the negative or positive effect of certain
events, including, without limitation, any of the following:  (i) charges for extraordinary items and
other unusual or non-recurring items of loss or gain; (ii) asset
impairments; (iii) litigation or claim judgments or settlements;
(iv) changes in the Code or tax rates; (v) changes in accounting
principles; (vi) changes in other laws or regulations affecting reported
results; (vii) charges relating to restructurings, discontinued
operations, severance and contract termination and other costs incurred in
rationalizing certain business activities; and (viii) gains or losses from
the acquisition or disposition of businesses or assets or from the early
extinguishment of debt.

3.3           Determination
of Payout Formula.  The Committee, in
its sole discretion, will establish a Payout Formula for purposes of
determining the Actual Award (if any) payable to each Participant for each
Performance Period.  Each Payout Formula
will (a) be in writing and (b) provide for the payment of a
Participant’s Actual Award based on whether or the extent to which the
Performance Goals for the Performance Period are achieved.  Notwithstanding the foregoing, in no event
will a Covered Employee’s Actual Award for any Performance Period exceed his or
her Maximum Award.

3.4           Determination
of Maximum Awards for Covered Employee Participants.  The Committee, in its sole discretion, will
establish a Maximum Award for each Covered Employee

 4
 

 

Participant (subject to the limit set forth in Section 2.1(m)).  Each Participant’s Maximum Award will be set
forth in writing.

3.5           Date
for Determinations.  The Committee
will make all determinations with respect to awards to Covered Employee
Participants under Sections 3.1, 3.2, 3.3 and 3.4 on or before the
Determination Date.

3.6           Determination
of Actual Awards.

(a)           After the end of
each Performance Period, the Committee will certify in writing the extent to
which the Performance Goals applicable to each Participant for such Performance
Period were achieved or exceeded.  The
Actual Award for each Participant will be determined by applying the Payout
Formula to the level of actual performance that has been certified by the
Committee.

(b)           Notwithstanding
anything to the contrary in this Plan, in determining the Actual Award for any
Covered Employee Participant, the Committee, in its sole discretion, may reduce
the award payable to any Covered Employee Participant below the award which
otherwise would be payable under the Payout Formula.

(c)           Notwithstanding
anything to the contrary in this Plan, in determining the Actual Award for any
Other Participant, the Committee, in its sole discretion, may increase or
reduce the award payable to any Other Participant above or below the award
which otherwise would be payable under the Payout Formula.

SECTION 4.           PAYMENT OF AWARDS

4.1           Continued
Employment.  Except as otherwise
determined by the Committee or provided in Section 4.5, no Actual Award will be
paid under this Plan with respect to a Performance Period to any Participant
who has a Termination of Service prior to the last day of such Performance
Period.

4.2           Form
of Payment.  Each Actual Award will
be paid to the Participant in cash or Shares. 
Any Shares awarded to a Participant under this Plan will be granted and
issued pursuant to the Company’s 2005 Stock Incentive Plan (which has been
approved by the Company’s stockholders) or any other equity compensation plan
approved by the stockholders of the Company in the future.

4.3           Timing
of Payment.  Payment of each Actual
Award will be made as soon as administratively feasible after the end of the
applicable Performance Period; provided, however, that, in no
event, will an Actual Award be paid later than 75 days after the end of such
Performance Period.

4.4           Awards
Payable from Company’s General Assets. 
Each Actual Award that may become payable under this Plan will be paid
solely from the general assets of the Company. 
Nothing in this Plan will be construed to create a trust or to establish
or evidence any Participant’s claim of any right to payment of an Actual Award
other than as an unsecured general creditor of the Company.

 5
 

 

 

4.5           Payment
in the Event of Termination of Service. 
Except as otherwise determined by the Committee and notwithstanding the
provisions of Section 4.1:

(a)           if a Participant
dies prior to the last day of a Performance Period during which he or she would
have earned an Actual Award, such Participant’s beneficiary (or, if the
Participant has not designated a beneficiary, such Participant’s estate) will
be entitled to receive the Actual Award, adjusted on a pro rata basis to
reflect the number of days the Participant was employed by the Company during
such Performance Period; provided, however, that a Participant
must be employed by the Company continuously for at least 90 days during a
Performance Period in order for such Participant’s beneficiary or estate to be
eligible to receive an Actual Award with respect to such Performance Period
(unless otherwise determined by the Committee).

(b)           if a Participant has
a Termination of Service due to Disability or Retirement prior to the last day
of a Performance Period during which he or she would have earned an Actual
Award, such Participant will be entitled to receive the Actual Award, adjusted
on a pro rata basis to reflect the number of days the Participant was employed
by the Company during such Performance Period; provided, however,
that a Participant must be employed by the Company continuously for at least 90
days during a Performance Period in order for such Participant to be eligible
to receive an Actual Award with respect to such Performance Period (unless
otherwise determined by the Committee).

(c)           if a Participant’s
employment is terminated during a Performance Period due to an involuntary
Termination of Service by the Company without Cause, or, if such Participant is
demoted during such Performance Period so that he or she is no longer an
Eligible Employee and is therefore unable to participate in this Plan for the
remainder of the Performance Period, such Participant will be entitled to
receive the Actual Award, adjusted on a pro rata basis to reflect the number of
days the Participant was employed by the Company or participated in this Plan
(as applicable) during such Performance Period; provided, however,
that a Participant must be employed by the Company continuously for at least 90
days during a Performance Period in order for such Participant to be eligible
to receive an Actual Award with respect to such Performance Period (unless
otherwise determined by the Committee).

SECTION 5.           ADMINISTRATION

5.1           Committee
is the Administrator.  This Plan will
be administered by the Committee.  The
Committee will consist of not less than two members of the Board.  The members of the Committee will be
appointed from time to time by, and serve at the pleasure of, the Board.  Each member of the Committee will qualify as
an “outside director” within the meaning of Section 162(m) of the Code.

5.2           Committee
Authority.  The Committee will administer
this Plan in accordance with its provisions. 
The Committee will have full power and authority to (a) determine
which Eligible Employees will be granted awards, (b) prescribe the terms
and conditions of awards, (c) interpret this Plan and any awards,
(d) adopt rules for the administration, interpretation and

 6
 

 

application of this Plan as are consistent with the terms hereof, and
(e) interpret, amend or revoke any such rules.

5.3           Decisions
Binding.  All determinations and
decisions made by the Committee pursuant to the provisions of this Plan will be
final, conclusive and binding on all persons and will be given the maximum
deference permitted by law.

SECTION 6.           AMENDMENT, TERMINATION AND DURATION

6.1           Amendment
or Termination.  The Committee, in
its sole discretion, may amend or terminate this Plan at any time and for any
reason; provided, however, that in no event will the Committee
amend this Plan to the extent such amendment would cause the amounts payable
under this Plan to Covered Employee Participants for a particular Performance
Period to fail to qualify as “qualified performance-based compensation” within
the meaning of Section 162(m) of the Code. 
The amendment or termination of this Plan will not, without the consent
of a Participant, materially and adversely alter or impair any rights or
obligations under any Actual Award theretofore earned by such Participant.  No award may be granted during any period
after termination of this Plan.

6.2           Duration
of this Plan.  This Plan will
commence on the Effective Date, and, subject to the Committee’s right to amend
or terminate this Plan in accordance with Section 6.1, will terminate on the
date five years after the Effective Date (the “Termination Date”).  Awards granted to Participants on or prior to
the Termination Date will remain in full force and effect after the Termination
Date in accordance with the terms thereof, but no new awards may be granted
after the Termination Date.

SECTION 7.           GENERAL PROVISIONS

7.1           Tax
Withholding.  The Company will withhold
all applicable taxes from any Actual Award, including any federal, state and
local taxes.

7.2           No
Effect on Employment or Service. 
Subject to Section 4.5(c), nothing in this Plan will interfere with or
limit in any way the right of the Company to terminate any Participant’s
employment or service at any time, with or without Cause.  For purposes of this Plan, transfer of
employment of a Participant between the Company and any one of its subsidiaries
or affiliates (or between such subsidiaries or affiliates) will not be deemed a
Termination of Service.  Employment with
the Company is on an at-will basis only.

7.3           Participation.  No Eligible Employee will have the right to
be selected to receive an award under this Plan, or, having been so selected,
to be selected to receive a future award.

7.4           Successors.  All obligations of the Company under this
Plan with respect to awards granted hereunder will be binding on any successor
to the Company, whether any such succession is the result of a direct or
indirect purchase, merger, consolidation of the Company, acquisition of all or
substantially all of the business or assets of the Company, or otherwise.

7.5           Beneficiary
Designations.  If permitted by the
Committee, a Participant under this Plan may name a beneficiary or
beneficiaries to whom any Actual Award will be paid in the

 7
 

 

event of the Participant’s death. 
In the absence of any such designation, any awards remaining unpaid at
the Participant’s death will be paid to the Participant’s estate.

7.6           Nontransferability
of Awards.  No award granted under
this Plan may be sold, transferred, pledged or assigned, other than by will, by
the laws of descent and distribution, or to the limited extent provided in
Section 7.5.  All rights with respect to
an award granted to a Participant will be available during his or her lifetime
only to the Participant.

7.7           Severability.  In the event any provision of this Plan is
held illegal or invalid for any reason, the illegality or invalidity will not
affect the remaining parts of this Plan, and this Plan will be construed and
enforced as if the illegal or invalid provision had not been included.

7.8           Requirements
of Law.  The granting of awards under
this Plan will be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities exchanges as
may be required.

7.9           Governing
Law.  This Plan and all awards will
be construed in accordance with and governed by the laws of the State of
Delaware, but without regard to its conflict of law provisions.

7.10         Rules
of Construction.  Captions are
provided in this Plan for convenience only, and captions will not serve as a
basis for interpretation or construction hereof.  Unless otherwise expressly provided or unless
the context otherwise requires, the terms defined in this Plan include the
plural and the singular.

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]