Document:

EX-4.1

 

Exhibit 4.1

CBIZ, INC.

2007 EMPLOYEE STOCK PURCHASE PLAN

	1.	 	Purpose of the Plan. This Plan amends and restates the CBIZ, Inc. 2007 Employee
Stock Purchase Plan, to make certain changes to the purchasing provisions of the Plan
originally adopted by the Board of Directors on February 8, 2007 and approved by the Company’s
shareholders on May 17, 2007. The purpose of the Plan is to provide employees of the Company,
any Parent and its Participating Subsidiaries with an opportunity to purchase Common Stock
through accumulated payroll deductions. It is the intention of the Company that the Plan
qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of
the Plan, accordingly, will be construed so as to extend and limit Plan participation in a
uniform and nondiscriminatory basis consistent with the requirements of Section 423 of the
Code.
	 
	2.	 	Definitions.

          “Administrator” means the Board or any committee of the Board that the Board has
designated to administer the Plan.

          “Board” means the Company’s Board of Directors.

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

          “Change in Control” means the happening of any of the following:

	 	(i)	 	An acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40% or more of
the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Company
Voting Securities”); excluding, however, the following: (1) any acquisition directly
from the Company, other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly from the
Company, (2) any acquisition by the Company, (3) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any entity
controlled by the Company, or (4) any acquisition pursuant to a transaction which
complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or
	 
	 	(ii)	 	A change in the composition of the Board such that the individuals who, as of
the effective date of the Plan, constitute the Board (such Board being hereinafter
referred to as the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, for purposes of this definition, that any
individual who becomes a member of the Board subsequent to the effective date of the
Plan, whose election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of those individuals who are members of the
Board and who were also members of the Incumbent

 

 

	 	 	 	Board (or deemed to be such pursuant to this proviso) shall be considered as though
such individual were a member of the Incumbent Board; but, provided further, that
any such individual whose initial assumption of office occurs as a result of either
an actual or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board
shall not be so considered as a member of the Incumbent Board; or
	 
	 	(iii)	 	Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (“Corporate
Transaction”); excluding, however, such a Corporate Transaction pursuant to which (1)
all or substantially all of the individuals and entities who are the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Corporate Transaction will beneficially own,
directly or indirectly, more than 50% of, respectively, the outstanding shares of
common stock, and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Corporate Transaction (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately
prior to such Corporate Transaction, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (2) no Person (other than
the Company, any employee benefit plan (or related trust) of the Company or such
corporation resulting from such Corporate Transaction) will beneficially own, directly
or indirectly, 40% or more of, respectively, the outstanding shares of common stock of
the corporation resulting from such Corporate Transaction or the combined voting power
of the outstanding voting securities of such corporation entitled to vote generally in
the election of directors except to the extent that such ownership existed prior to the
Corporate Transaction, and (3) individuals who were members of the Incumbent Board will
constitute at least a majority of the members of the board of directors of the
corporation resulting from such Corporate Transaction; or
	 
	 	(iv)	 	The complete liquidation or dissolution of the Company.

          “Common Stock” means the common shares, $.01 par value of the Company.

          “Company” means CBIZ Inc., a Delaware corporation.

          “Compensation” means regular salary payments, annual and quarterly performance
bonuses, hire-on bonuses, cash recognition awards, commissions, overtime pay, shift premiums, and
elective contributions by the participant to qualified employee benefit plans, but excludes all
other payments including, without limitation, long-term disability or workers compensation
payments, car allowances, employee referral bonuses, relocation payments, expense

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reimbursements (including but not limited to travel, entertainment, and moving expenses),
salary gross-up payments, and non-cash recognition awards.

          “Continuous Status as an Employee” means the absence of any interruption or
termination of service as an Employee. Continuous Status as an Employee shall not be considered
interrupted in the case of (i) sick leave, (ii) military leave, (iii) any other leave of absence
approved by the Company, provided that the leave is for a period of not more than three (3) months,
unless reemployment upon the expiration of such leave is provided by contract or statute, or unless
provided otherwise pursuant to Company policy adopted from time to time, or (iv) in the case of
transfers between locations of the Company or between the Company and its Participating
Subsidiaries.

          “Employee” means any individual who is an employee of the Company, any Parent or any
Subsidiary within the meaning of Section 3401(c) of the Code and the Treasury Regulations
thereunder, except the following:

          (i) employees who would, upon enrollment in a Purchase Period, own directly or indirectly
(including options or rights to acquire stock possessing) five percent or more of the total
combined voting power or value of all classes of stock of the Company, any Parent or any
Subsidiary; and

          (ii) employees who are customarily employed by the Company, any Parent, or any Subsidiary 20
hours or less per week or no more than five months in any calendar year.

          (iii) employees who have not had Continuous Status as an Employee for at least ninety (90)
days before the Grant Date.

          “Expiration Date” means the last day of a Purchase Period which shall be the fifteenth
(15th) day of each calendar month, or such other day as the Administrator may determine.
In any event, the Expiration Date shall not be more than twenty-seven (27) months after the Grant
Date.

          “Fair Market Value” means, except as otherwise provided by the Administrator, as of
any given date, the closing per-share sales price for the shares on any national securities
exchange (including Nasdaq) listing the Company’s Common Stock for the immediately preceding date,
or if the shares were not traded on such national securities exchange on such date, then on the
next preceding date on which such shares of Common Stock were traded, all as reported by such
source as the Administrator may select.

          “Grant Date” means the first business day of each Purchase Period of the Plan.

          “Parent” means a “parent corporation,” whether now or hereafter existing, as defined
in Section 424(e) of the Code.

          “Participating Subsidiary” means any Subsidiary that has been designated by the
Administrator from time to time as eligible to participate under the Plan.

          “Plan” means the CBIZ, Inc. 2007 Employee Stock Purchase Plan, a plan intended to
qualify under Section 423 of the Code.

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          “Purchase Period” means the period beginning on the Grant Date and ending on the
Expiration Date. The Purchase Period shall not exceed twenty-seven (27) months from the Grant
Date.

          “Purchase Right” means the right to purchase shares of Common Stock under the Plan on
the terms or conditions set forth herein and as determined by the Administrator as provided
hereunder.

          “Subsidiary” shall mean any corporation described in Section 424(e) or (f) of the
Code.

	3.	 	Administration of the Plan. The Administrator shall administer the Plan. The
Administrator shall have full power and authority to construe and interpret the Plan and may
from time to time adopt such rules and regulations for carrying out the Plan, as it may deem
best. Decisions of the Administrator shall be final, conclusive and binding upon all parties,
including the Company, its shareholders, any Parent, any Subsidiary and their respective
Employees. The Administrator may in its sole discretion determine from time to time that the
Company shall permit purchase of shares under the Plan by all of the then eligible Employees,
provided, however, that it shall be under no obligation to do so.

	4.	 	Participation in the Plan. The individuals who shall be eligible to purchase shares
under the Plan shall be all Employees of the Company, any Parent or any Participating
Subsidiary who are so employed by the Company, any Parent or Participating Subsidiary on the
Grant Date of the Purchase Period; provided, however, that no individual shall be eligible to
effect a purchase at any time if immediately thereafter and after giving effect thereto, the
aggregate value or voting power of all shares of Common Stock of the Company, any Parent and
any Subsidiary then owned by such individual, either directly or indirectly, within the
meaning of the applicable sections of the Code and including all shares of stock with respect
to which such individual holds options, would equal or exceed in the aggregate 5% of the total
value or combined voting power of all classes of stock of the Company or any Subsidiary.

	5.	 	Stock. The total number of shares of Common Stock which may be purchased under the
Plan shall not exceed in the aggregate 1,000,000 shares. Such shares shall be shares that the
Company has reacquired in the open market or otherwise for purposes of the Plan or which are
otherwise held in treasury.

     6. Number of Shares That an Employee May Purchase.

	 	(a)	 	An eligible Employee may elect to purchase through payroll deductions
during a Purchase Period a number of whole shares of Common Stock determined by the
Administrator from time to time.
	 
	 	(b)	 	The number of whole shares of Common Stock that a participating
Employee may purchase on the Expiration Date shall be determined by dividing the
Employee’s contributions accumulated during the Purchase Period and retained in the
Employee’s account as of the Expiration Date, plus any supplemental purchase amount
permitted pursuant to Section 8(d) hereof, by the applicable purchase price;
provided, however, that the purchase shall be subject to the limitations set forth
in this Section 6.

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	 	(c)	 	The Company reserves the right to limit the maximum amount of stock
which an eligible Employee may purchase, provided that the limit will be determined
on the basis of a uniform relationship to all eligible Employees’ basic or regular
rate of Compensation, or will be a fixed maximum amount of stock that any Employee
may purchase under the Plan.
	 
	 	(d)	 	Notwithstanding the foregoing provisions of the Plan, no eligible
Employee may be granted a Purchase Right to the extent that his or her rights to
purchase stock under all employee stock purchase plans (as defined in Section 423
of the Code) of the Company, its Parents and Subsidiaries accrues at a rate which
exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the
Fair Market Value of the stock at the time the Purchase Right is granted) for each
calendar year in which the Purchase Right is outstanding at any time. A Purchase
Right shall be considered to accrue on its Exercise Date.

	7.	 	Participation.

	 	(a)	 	An eligible Employee may become a participant in the Plan by completing
a subscription agreement and any other required documents provided by the Company
and submitting them in the form and manner designated by the Company.
	 
	 	(b)	 	Unless otherwise determined by the Company, payroll deductions in
respect of a Purchase Period shall commence on the first full payroll period
beginning on or after the Grant Date and shall end on the last payroll period
ending prior to the Expiration Date, unless sooner terminated by the participating
Employee as provided in Section 10.

	8.	 	Method of Payment of Contributions.

	 	(a)	 	A participating Employee shall elect to have payroll deductions made on
each payday during the Purchase Period in whole dollar amounts of at least
twenty-five dollars ($25) per Purchase Period, or such other nominal minimum amount
as the Administrator may determine. All payroll deductions made by a participating
Employee shall be credited to his or her account under the Plan. A participating
Employee may not make any additional payments into such account, except as the
Administrator may permit pursuant to Section 8(d) hereof. A participating
Employee’s subscription agreement will remain in effect for successive Purchase
Periods unless terminated as provided in Section 10 or 8(c) hereof.
	 
	 	(b)	 	A participating Employee may discontinue his or her participation in
the Plan as provided in Section 10, or, subject to the limitation in Section 6(d),
may increase or decrease the rate of his or her payroll deductions during the
Purchase Period by (i) properly completing and submitting to the Company’s payroll
office (or its
designee), on or before a date prescribed by the Administrator prior to an
applicable Exercise Date, a new subscription agreement authorizing the change in
payroll deduction rate in the form provided by the Administrator for such purpose,

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or (ii) following an electronic or other procedure prescribed by the Administrator;
provided, however, that a participant may only make one payroll deduction change
during each Purchase Period. If a participant has not followed the procedures to
change the rate of payroll deductions, the rate of his or her payroll deductions
will continue at the originally elected rate throughout the Purchase Period and
future Purchase Periods (unless terminated as provided in Section 10 or 8(c)). The
Administrator may, in its sole discretion, limit the nature and/or number of payroll
deduction rate changes that may be made by participants during any Purchase Period.
Any change in payroll deduction rate made pursuant to this Section 6(b) will be
effective as of the first full payroll period following five (5) business days after
the date on which the change is made by the participant (unless the Administrator,
in its sole discretion, elects to process a given change in payroll deduction rate
more quickly).

	 	(c)	 	Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 6(c) and (d) hereof, the Company may
cause a participant’s payroll deductions to be decreased in respect of a Purchase
Period to as low as zero dollars ($0.00).
	 
	 	(d)	 	The Administrator may, in its discretion, permit a participating
Employee to purchase shares of Common Stock on the Expiration Date of any Purchase
Period, in accordance with procedures established by the Administrator, through
payment by check or money order (a “supplemental purchase”). Each such
supplemental purchase shall be for a minimum of one hundred dollars ($100), to a
maximum of the limitation in Section 8(a) above reduced by the amount of the
participant’s payroll deductions, if any, for such Purchase Period.

	9.	 	Exercise of Purchase Rights. Unless a participating Employee withdraws from the Plan
as provided in Section 10, his or her right to purchase whole shares in any Purchase Period
will be exercised automatically on each Expiration Date, and the maximum number of whole
shares subject to the Purchase Right will be purchased at the applicable purchase price with
the accumulated contributions in his or her account. Notwithstanding anything herein to the
contrary, the maximum amount that may be applied to purchase shares of Common Stock during any
calendar year shall not in the aggregate exceed the amount required to purchase shares with a
Fair Market Value, determined at the Grant Date, equal to twenty-five thousand dollars
($25,000).

	10.	 	Voluntary Withdrawals; Termination of Employment.

	 	(a)	 	A participating Employee may withdraw all but not less than all the
contributions credited to his or her account under the Plan at any time prior to
the Expiration Date of a Purchase Period by notifying the Company in the form and
manner designated by the Company. All of the participating Employee’s
contributions credited to his or her account will be paid to him or her not later
than sixty (60)
days after receipt of his or her notice of withdrawal and his or her Purchase Right
for the then current Purchase Period will be automatically terminated, and no

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	 	 	 	further contributions for the purchase of Common Stock will be permitted or made
during that period.
	 
	 	(b)	 	Upon termination of the participating Employee’s Continuous Status as
an Employee prior to the Expiration Date of a Purchase Period for any reason,
whether voluntary or involuntary, including retirement or death, the contributions
credited to his or her account will be returned to him or her or, in the case of
his or her death, to the Employee’s estate, and his or her Purchase Right will be
automatically terminated.
	 
	 	(c)	 	A participating Employee’s withdrawal during a Purchase Period will not
have any effect upon his or her eligibility to participate in a succeeding Purchase
Period or in any similar plan that may hereafter be adopted by the Company.

	11.	 	Terms and Conditions.

	 	(a)	 	General:

     The purchase terms of a Purchase Period shall be in the form as the Administrator shall from
time to time approve, and shall contain the terms and conditions as the Administrator shall
prescribe which are not inconsistent with the Plan.

	 	(b)	 	Purchase Price:

     The Administrator shall establish the purchase price per share for each Purchase Period but in
no event will the purchase price per share be less than eighty-five (85%) of the Fair Market Value
of a share of Common Stock on the Expiration Date.

          (c) Term:

     Each Purchase Period shall commence on the Grant Date and terminate, subject to earlier
termination by the Administrator, on the Expiration Date. Notwithstanding the foregoing, unless
otherwise determined by the Administrator, a Purchase Period shall have a Grant Date coincident
with the first day of a payroll period and an Expiration Date coincident with the last day of such
payroll period.

	 	(d)	 	Employee’s Purchase Directions:

     At the conclusion of the Purchase Period, each participant Employee shall purchase all of the
whole shares purchasable in such Purchase Period with the contributions credited to such Employee’s
account unless such Employee shall, in the manner provided for by the Administrator pursuant to
this Plan, notify the Company as set forth in Section 10 that the Employee does not desire to
purchase any of such shares.

	 	(e)	 	Resale Restrictions.

     Unless waived by the Company under this Plan, or otherwise as determined by the Company, no
shares purchased under this Plan may be sold, hypothecated or otherwise

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transferred until one year
after the date of purchase other than by will, by the laws of descent and distribution, by transfer
to a trust where under Section 671 of the Code and other applicable laws the participant Employee
is considered the sole beneficial owner of such shares while it is held in trust, or by transfer to
a testamentary trust in which member’s of the participant Employee’s Immediate Family have a
beneficial interest of more than 50% and that provides that such shares are to be transferred to
the beneficiaries upon the Employee’s death, and each share certificate shall bear notice of such
restriction. For purposes of this paragraph, “Immediate Family” means 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, or any person sharing the participant Employee’s household (other
than a tenant or employee). All resale restrictions shall lapse upon a tender offer initiated by
the Company or upon a Change in Control.

	 	(f)	 	Assignability:

     No rights hereunder shall be assignable or transferable.

	 	(g)	 	Employee’s Agreement:

     If, at the time of the purchase of shares which are covered by a Purchase Right, in the
opinion of counsel for the Company, it is necessary or desirable, in order to comply with any
applicable laws or regulations relating to the sale of securities, that the Employee purchasing
such shares shall agree that such Employee will purchase such shares for investment and not with
any present intention to resell the same, the Employee will, upon the request of the Company,
execute and deliver to the Company an agreement to such effect. The Company may also require that a
legend setting forth such investment intention be stamped or otherwise written on the certificates
for shares purchased pursuant to the Plan.

	 	(h)	 	Rights as a Shareholder:

     An Employee who has been granted one or more Purchase Rights hereunder shall have no rights as
a shareholder with respect to shares covered by any such Purchase Rights until the date of the
issuance of the shares to the Employee. No adjustment will be made for dividends or other rights
for which the record date is prior to the date of such issuance. For purposes of the Plan, the
Company, in lieu of the issuance of certificates, may utilize a book entry account system for
recording ownership of shares of Common Stock, subject to the rules generally applicable to such
system.

	 	(i)	 	Interest:

     No interest shall accrue on payroll deductions made under or pursuant to the Plan or during
any Purchase Period.

	12.	 	Term of Plan. No Purchase Rights shall be granted after June 30, 2012.

	13.	 	Amendments. The Plan is wholly discretionary in nature. As such, the Board may, in
its sole discretion, from time to time alter, amend, suspend, or discontinue the Plan or alter
or amend any and all Purchase Rights or terminate any Purchase Period; provided, however,

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that
no such action of the Board may, without the approval of the shareholders, make any amendment
for which shareholder approval is necessary to comply with any tax or regulatory requirement
with which the Administrator has determined it is necessary or advisable to have the Company
comply. Subject to the limitations in this Section 13 relating to shareholder approval, the
Administrator may, in its sole discretion, make such amendment or modification to the Plan or
any Purchase Rights granted hereunder as is necessary or desirable to comply with, or
effectuate administration of, the Plan under the laws, rules or regulations of any foreign
jurisdiction, the laws of which may be applicable to the Plan or its participants hereunder.
Further, in the event the Administrator determines that the ongoing operation of the Plan may
result in any unfavorable financial accounting consequence, the Administrator may, in its
discretion and, to the extent necessary or desirable, modify, amend or terminate the Plan to
reduce or eliminate any such accounting consequence.

	14.	 	Application of Funds. The proceeds received by the Company from the sale of the
Common Stock under the Plan will be used for general corporate purposes.

	15.	 	Governing Law. The Plan and the purchase of shares of Common Stock under the Plan
shall be construed in accordance with and governed by the laws of the State of Delaware
without regard to its choice of law rules.

	16.	 	Additional Restrictions of Rule 16b-3. The terms and conditions of Purchase Rights
granted hereunder to, and the purchase of shares of Common Stock by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3
thereunder. The Plan shall be deemed to contain, all Purchase Rights shall contain, and the
shares of Common Stock issued upon exercise of Purchase Rights shall be subject to, such
additional conditions and restrictions as may be required by such Rule 16b-3 to qualify for
the maximum exemption from such Section 16 with respect to Plan transactions.
	 
	17.	 	Effective Date. The effective date of this amendment and restatement of the Plan
shall be August 2, 2007. The original effective date of the Plan was to be August 1, 2007.

[Signature page follows]

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	18.	 	Execution.

     IN WITNESS WHEREOF, upon authorization of the Board of Directors, the undersigned has executed
this amendment and restatement of the CBIZ, Inc. 2007 Employee Stock Purchase Plan this 2nd day of
August, 2007.

	 	 	 	 	 	 	 
	 	 	CBIZ, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael W. Gleespen	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	Corporate Secretary 	 	 
	 

	 	 	 	 

	 	 

Page 10 of 10EX-10.1

 

Exhibit 10.1

BLACK BOX CORPORATION

1992 STOCK OPTION PLAN

(As Amended through August 9, 2007)

     I. PURPOSES

     BLACK BOX CORPORATION (the “Company”) desires to afford certain of its key employees and the
key employees of any subsidiary corporation or parent corporation of the Company now existing or
hereafter formed or acquired who are responsible for the continued growth of the Company an
opportunity to acquire a proprietary interest in the Company, and thus to create in such key
employees an increased interest in and a greater concern for the welfare of the Company and its
subsidiaries.

     The Company, by means of this 1992 Stock Option Plan as originally approved on November 11,
1992, and as further amended on May 10, 1994, August 9, 1994, August 7, 1995, August 12, 1996,
August 13, 1997, February 3, 1998, August 10, 1998, August 10, 1999, August 8, 2000, August 23,
2001, August 15, 2002, August 12, 2003, August 10, 2004, March 15, 2005, May 4, 2005, August 9,
2005 and August 9, 2007 (the “Plan”), seeks to retain the services of persons now holding key
positions and to secure the services of persons capable of filling such positions.

     The stock options (“Options”) and stock appreciation rights (“Rights”) offered pursuant to the
Plan are a matter of separate inducement and are not in lieu of any salary or other compensation
for the services of any key employee.

     The Options granted under the Plan are intended to be either incentive stock options
(“Incentive Options”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”), or options that do not meet the requirements for Incentive Options
(“Non-Qualified Options”), but the Company makes no warranty as to the qualification of any Option
as an Incentive Option.

     II. AMOUNT OF STOCK SUBJECT TO THE PLAN; PER PERSON LIMITATION

     The total number of shares of common stock of the Company which may be purchased or acquired
pursuant to the exercise of Options or Rights granted under the Plan shall not exceed, in the
aggregate, 9,200,000 shares of the authorized common stock, $.001 par value per share, of the
Company (the “Shares”), such number subject to adjustment as provided in Article XII hereof.
Shares that are the subject of Rights and related Options shall be counted only once in determining
whether the maximum number of Shares that may be purchased or awarded under the Plan has been
exceeded. No person may receive Options or Rights under the Plan for more than 500,000 Shares in
any given fiscal year.

     Shares acquired under the Plan may be either authorized but unissued Shares or Shares of
issued stock held in the Company’s treasury, or both, at the discretion of the Company. If and to
the extent that Options or Rights granted under the Plan expire or terminate without having been

 

 

exercised, the Shares covered by such expired or terminated Options or Rights shall again
become available for award under the Plan.

     Except as provided in Article XIX and subject to Article II, the Company may, from time to
time during the period beginning on the date on which the Company consummates an underwritten
initial public offering of Shares (the “Effective Date”) and originally ending on November 30, 2002
but amended to end on November 30, 2012 (the “Termination Date”), grant to certain key employees of
the Company, or of any subsidiary corporation or parent corporation of the Company now existing or
hereafter formed or acquired, Incentive Options and/or Non-Qualified Options and/or Rights under
the terms hereinafter set forth.

     Provisions of the Plan that pertain to Options or Rights granted to an employee shall apply to
Options, Rights or a combination thereof.

     As used in the Plan, the terms “subsidiary corporation” and “parent corporation” shall mean,
respectively, a corporation coming within the definition of such terms contained in Sections 424(f)
and 424(e) of the Code.

     III. ADMINISTRATION

     The board of directors of the Company (the “Board of Directors”) shall designate from among
its members a stock option committee, which may be the Compensation Committee of the Board of
Directors (the “Committee”), to administer the Plan. The Committee shall consist of no fewer than
two members of the Board of Directors, each of whom shall be a “disinterested person” within the
meaning of Rule 16b-3 (or any successor rule or regulation) promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). A majority of the members of the Committee
shall constitute a quorum, and the act of a majority of the members of the Committee shall be the
act of the Committee. Any member of the Committee may be removed at any time either with or
without cause by resolution adopted by the Board of Directors, and any vacancy on the Committee at
any time may be filled by resolution adopted by the Board of Directors.

     Subject to the express provisions of the Plan, the Committee shall have authority, in its
discretion, to determine the employees to whom Options or Rights shall be granted, the time when
such Options or Rights shall be granted, the number of Shares which shall be subject to each Option
or Right, the purchase price or exercise price of each Option or Right, the period(s) during which
such Options or Rights shall become exercisable (whether in whole or in part) and the other terms
and provisions thereof (which need not be identical).

     Subject to the express provisions of the Plan, the Committee also shall have authority to
construe the Plan and the Options and Rights granted thereunder, to amend the Plan and the Options
and Rights granted thereunder, to prescribe, amend and rescind rules and regulations relating to
the Plan, to determine the terms and provisions of the Options (which need not be identical) and
Rights (which need not be identical) granted thereunder and to make all other determinations
necessary or advisable for administering the Plan. The Committee also shall have the authority to
require, in its discretion, as a condition of the granting of any such Option or Right, that the
employee agree (i) not to sell or otherwise dispose of Shares acquired pursuant to the exercise of
such Option or Right for a period of six (6) months following the date of the

2

 

acquisition of such Option or Right and (ii) that in the event of termination of employment of
such employee, other than as a result of dismissal without cause, such employee will not, for a
period to be fixed at the time of the grant of the Option or Right, enter into any other employment
or participate directly or indirectly in any other business or enterprise which is competitive with
the business of the Company or any subsidiary corporation or parent corporation of the Company, or
enter into any employment in which such employee will be called upon to utilize special knowledge
obtained through employment with the Company or any subsidiary corporation or parent corporation
thereof. In no event will an employee who is subject to the reporting requirements of Section
16(a) of the Exchange Act be entitled to sell or otherwise dispose of any Shares acquired pursuant
to exercise of any such Options or Rights for a period of six (6) months from the date of the
acquisition of such Options or Rights. Notwithstanding the foregoing, the Committee shall not have
the authority to reduce the exercise price of (i.e., reprice) any outstanding Option or Right
without stockholder approval.

     The determination of the Committee on matters referred to in this Article III shall be
conclusive.

     The Committee may employ such legal counsel, consultants and agents as it may deem desirable
for the administration of the Plan and may rely upon any opinion or computation received from any
such legal counsel, consultant or agent. Expenses incurred by the Committee in the engagement of
such counsel, consultant or agent shall be paid by the Company. No member or former member of the
Committee shall be liable for any action or determination made in good faith with respect to the
Plan or any award of Options or Rights granted hereunder.

     IV. ELIGIBILITY

     Options and Rights may be granted only to key employees of the Company or of any subsidiary
corporation or parent corporation of the Company, except as hereinafter provided, and shall not be
granted to any officer or director who is not also a key employee or to any member of the
Committee. Any person who shall have retired from active employment by the Company or a subsidiary
corporation or parent corporation thereof, although such person shall have entered into a
consulting contract with the Company or a subsidiary corporation or parent corporation thereof,
shall not be eligible to receive an Option or a Right.

     The Plan does not create a right in any employee to participate in the Plan, nor does it
create a right in any employee to have any Options or Rights granted to him or her.

     V. OPTION PRICE AND PAYMENT

     The price for each Share purchasable under any Option granted hereunder shall be such amount
as the Committee shall, in its best judgment, determine to be not less than one hundred percent
(100%) of the fair market value per Share at the date the Option is granted; provided,
however, that in the case of an Incentive Option granted to a person who, at the time such
Option is granted, owns shares of the Company or any subsidiary corporation or parent corporation
of the Company which possesses more than ten percent (10%) of the total combined voting power of
all classes of shares of the Company or of any subsidiary corporation or parent corporation of the
Company, the purchase price for each Share shall be such amount as the Committee in its best
judgment shall determine to be not less than one hundred ten percent (110%) of the fair

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market value per Share at the date the Option is granted. In determining stock ownership of
an employee for any purposes under the Plan, the rules of Section 424(d) of the Code shall be
applied, and the Committee may rely on representations of fact made to it by the employee and
believed by it to be true.

     If the Shares are listed on a national securities exchange in the United States (which, for
purposes of this Article V, shall be deemed to include any last sale reported over-the-counter
market), on any date on which the fair market value per Share is to be determined, the fair market
value per Share shall be deemed to be the average of the high and low quotations at which such
Shares are sold on such national securities exchange on the date such Option is granted. If the
Shares are listed on a national securities exchange in the United States on such date, but the
Shares are not traded on such date, or such national securities exchange is not open for business
on such date, the fair market value per Share shall be determined as of the closest preceding date
on which such exchange shall have been open for business and the Shares shall have been traded. If
the Shares are listed on more than one national securities exchange in the United States on the
date on which the fair market value per Share is to be determined, the Committee shall determine
which national securities exchange shall be used for the purpose of determining the fair market
value per Share.

     If a public market exists for the Shares on any date on which the fair market value per Share
is to be determined but the Shares are not listed on a national securities exchange in the United
States, the fair market value per Share shall be deemed to be the mean between the closing bid and
asked quotations in the over-the-counter market for the Shares on such date. If there are no bid
and asked quotations for the Shares on such date, the fair market value per Share shall be deemed
to be the mean between the closing bid and asked quotations in the over-the-counter market for the
Shares on the closest date preceding such date for which such quotations are available.

     If no public market exists for the Shares on any date on which the fair market value per Share
is to be determined, the Committee shall, in its sole discretion and best judgment, determine the
fair market value of a Share.

     For purposes of this Plan, the determination by the Committee of the fair market value of a
Share shall be conclusive.

     Upon the exercise of an Option granted hereunder, the Company shall cause the purchased Shares
to be issued only when it shall have received the full purchase price for the Shares in cash or by
certified check; provided, however, that in lieu of cash, the holder of an Option
may, if and to the extent the terms of such Option so provide and to the extent permitted by
applicable law, exercise an Option (i) in whole or in part, by delivering to the Company shares of
common stock of the Company (in proper form for transfer and accompanied by all requisite stock
transfer tax stamps or cash in lieu thereof) owned by such holder having a fair market value equal
to the exercise price applicable to that portion of the Option being exercised by the delivery of
such Shares or (ii) in part, by delivering to the Company an executed promissory note on such terms
and conditions as the Committee shall determine, at the time of grant, in its sole discretion;
provided, however, that the principal amount of such note shall not exceed eighty
percent (80%) (or such lesser percentage as would be permitted by applicable

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margin regulations) of the aggregate purchase price of the Shares then being purchased
pursuant to the exercise of such Option. The fair market value of the stock so delivered shall be
determined as of the date immediately preceding the date on which the Option is exercised, or as
may be required in order to comply with or to conform to the requirements of any applicable laws or
regulations.

     VI. USE OF PROCEEDS

     The cash proceeds of the sale of Shares pursuant to the Plan are to be added to the general
funds of the Company and used for its general corporate purposes as the Board of Directors shall
determine.

     VII. TERM OF OPTIONS AND LIMITATIONS ON THE RIGHT OF EXERCISE

     Any Option shall be exercisable at such times, in such amounts and during such period or
periods as the Committee shall determine at the date of the grant of such Option; provided,
however, that an Incentive Option shall not be exercisable after the expiration of ten (10)
years from the date such Option is granted; and provided further that, in the case
of an Incentive Option granted to a person who, at the time such Option is granted, owns stock of
the Company or any subsidiary corporation or parent corporation of the Company possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of the Company or of
any subsidiary corporation or parent corporation of the Company, such Option shall not be
exercisable after the expiration of five (5) years from the date such Option is granted.

     Except to the extent otherwise provided under the Code, to the extent that the aggregate fair
market value of stock for which Incentive Options are exercisable for the first time by an employee
during any calendar year (under all stock option plans of the Company and of any parent corporation
or subsidiary corporation of the Company) exceeds one hundred thousand dollars ($100,000), such
Options shall be treated as Non-Qualified Options. For purposes of this limitation, (i) the fair
market value of stock is determined as of the time the Option is granted, and (ii) the limitation
will be applied by taking into account Options in the order in which they were granted.

     Subject to the provisions of Article XVIII, the Committee shall have the right to accelerate,
in whole or in part, from time to time, conditionally or unconditionally, rights to exercise any
Option granted hereunder.

     To the extent that an Option is not exercised within the period of exercisability specified
therein, it shall expire as to the then unexercised part.

     In no event shall an Option granted hereunder be exercised for a fraction of a Share.

     VIII. EXERCISE OF OPTIONS

     Options granted under the Plan shall be exercised by the optionee as to all or part of the
Shares covered thereby by the giving of written notice of the exercise thereof to the Corporate
Secretary of the Company at the principal business office of the Company, specifying the number of
Shares to be purchased and specifying a business day not more than fifteen (15) days

5

 

from the date such notice is given for the payment of the purchase price against delivery of
the Shares being purchased. Subject to the terms of Articles XIV, XV, XVI, and XVII, the Company
shall cause certificates for the Shares so purchased to be delivered to the optionee at the
principal business office of the Company, against payment of the full purchase price, on the date
specified in the notice of exercise.

     IX. STOCK APPRECIATION RIGHTS

     In the discretion of the Committee, a Right may be granted (i) alone, (ii) simultaneously with
the grant of an Option (either Incentive or Non-Qualified) and in conjunction therewith or in the
alternative thereto or (iii) subsequent to the grant of a Non-Qualified Option and in conjunction
therewith or in the alternative thereto.

     The exercise price of a Right granted alone shall be determined by the Committee but shall not
be less than one hundred percent (100%) of the fair market value of one Share on the date of grant
of such Right. A Right granted simultaneously with or subsequent to the grant of an Option and in
conjunction therewith or in the alternative thereto shall have the same exercise price as the
related Option, shall be transferable only upon the same terms and conditions as the related
Option, and shall be exercisable only to the same extent as the related Option; provided,
however, that a Right, by its terms, shall be exercisable only when the fair market value
of the Shares subject to the Right and related Option exceeds the exercise price thereof.

     Upon exercise of a Right granted simultaneously with or subsequent to an Option and in the
alternative thereto, the number of Shares for which the related Option shall be exercisable shall
be reduced by the number of Shares for which the Right shall have been exercised. The number of
Shares for which a Right shall be exercisable shall be reduced upon any exercise of a related
Option by the number of Shares for which such Option shall have been exercised.

     Any Right shall be exercisable upon such additional terms and conditions as may from time to
time be prescribed by the Committee.

     A Right shall entitle the holder upon exercise thereof to receive from the Company, upon a
written request filed with the Corporate Secretary of the Company at its principal offices (the
“Request”), a number of Shares (with or without restrictions as to substantial risk of forfeiture
and transferability, as determined by the Committee in its sole discretion), an amount of cash, or
any combination of Shares and cash, as specified in the Request (but subject to the approval of the
Committee in its sole discretion, at any time up to and including the time of payment, as to the
making of any cash payment), having an aggregate fair market value equal to the product of (i) the
excess of the fair market value, on the day of such Request, of one Share over the exercise price
per Share specified in such Right or its related Option, multiplied by (ii) the number of Shares
for which such Right shall be exercised.

     Any election by a holder of a Right to receive cash in full or partial settlement of such
Right, and any exercise of such Right for cash, may be made only by a Request filed with the
Corporate Secretary of the Company during the period beginning on the third business day following
the date of release for publication by the Company of quarterly or annual summary statements of
sales and earnings and ending on the twelfth business day following such date. Within thirty (30)
days of the receipt by the Company of a Request to receive cash in full or

6

 

partial settlement of a Right or to exercise such Right for cash, the Committee shall, in its
sole discretion, either consent to or disapprove, in whole or in part, such Request. A Request to
receive cash in full or partial settlement of a Right or to exercise a Right for cash may provide
that, in the event the Committee shall disapprove such Request, such Request shall be deemed to be
an exercise of such Right for Shares.

     If the Committee disapproves in whole or in part any election by a holder to receive cash in
full or partial settlement of a Right or to exercise such Right for cash, such disapproval shall
not affect such holder’s right to exercise such Right at a later date, to the extent that such
Right shall be otherwise exercisable, or to elect the form of payment at a later date, provided
that an election to receive cash upon such later exercise shall be subject to the approval of the
Committee. Additionally, such disapproval shall not affect such holder’s right to exercise any
related Option or Options granted to such holder under the Plan.

     A holder of a Right shall not be entitled to request or receive cash in full or partial
payment of such Right unless such Right shall have been held for six (6) months from the date of
acquisition to the date of cash settlement thereof; provided, however, that such
prohibition shall not apply if the holder of such Right is not subject to the reporting
requirements of Section 16(a) of the Exchange Act. In no event will a holder of a Right who is
subject to the reporting requirements of Section 16(a) of the Exchange Act be entitled to make such
a request or receive cash in full or partial payment of such Right until the Company shall have
satisfied the informational requirements of Rule 16b-3(e)(1) promulgated under the Exchange Act for
the specified one year period.

     A Right shall be deemed exercised on the last day of its term, if not otherwise exercised by
the holder thereof, provided that the fair market value of the Shares subject to the Right exceeds
the exercise price thereof on such date.

     For all purposes of this Article IX, the fair market value of Shares shall be determined in
accordance with the principles set forth in Article V.

     X. NON-TRANSFERABILITY OF OPTIONS AND STOCK APPRECIATION RIGHTS 

     Neither an Option nor a Right granted hereunder shall be transferable, whether by operation of
law or otherwise, other than by will or the laws of descent and distribution, and any Option or
Right granted hereunder shall be exercisable during the lifetime of the holder only by such holder.
Except to the extent provided above, Options and Rights may not be assigned, transferred, pledged,
hypothecated or disposed of in any way (whether by operation of law or otherwise) and shall not be
subject to execution, attachment or similar process.

     XI. TERMINATION OF EMPLOYMENT

     Upon termination of employment of any employee with the Company and all subsidiary
corporations and parent corporations of the Company, an Option or Right previously granted to the
employee, unless otherwise specified by the Committee in the Option or Right, shall, to the extent
not theretofore exercised, terminate and become null and void, provided that:

7

 

     (a) if the employee shall die while in the employ of such corporation or during either
the three (3) month or one (1) year period, whichever is applicable, specified in clause (b)
below and at a time when such employee was entitled to exercise an Option or Right as herein
provided, the legal representative of such employee, or such person who acquired such Option
or Right by bequest or inheritance or by reason of the death of the employee, may, not later
than one (1) year from the date of death, exercise such Option or Right, to the extent not
theretofore exercised, in respect of any or all of such number of Shares as specified by the
Committee in such Option or Right; and

     (b) if the employment of an employee to whom such Option or Right shall have been
granted shall terminate by reason of the employee’s retirement (at such age or upon such
conditions as shall be specified by the Board of Directors), disability (as described in
Section 22(e)(3) of the Code) or dismissal by the employer other than for cause (as defined
below), and while such employee is entitled to exercise such Option or Right as herein
provided, such employee shall have the right to exercise such Option or Right so granted, to
the extent not theretofore exercised, in respect of any or all of such number of Shares as
specified by the Committee in such Option or Right, at any time up to and including (i)
three (3) months after the date of such termination of employment in the case of termination
by reason of retirement or dismissal other than for cause and (ii) one (1) year after the
date of termination of employment in the case of termination by reason of disability.

     If an employee voluntarily terminates his or her employment, or is discharged for cause, any
Option or Right granted hereunder shall, unless otherwise specified by the Committee in the Option
or Right, forthwith terminate with respect to any unexercised portion thereof.

     If an Option or Right granted hereunder shall be exercised by the legal representative of a
deceased or disabled employee or former employee, or by a person who acquired an Option or Right
granted hereunder by bequest or inheritance or by reason of death of any employee or former
employee, written notice of such exercise shall be accompanied by a certified copy of letters
testamentary or equivalent proof of the right of such legal representative or other person to
exercise such Option or Right.

     For the purposes of the Plan, the term “for cause” shall mean (i) with respect to an employee
who is party to a written agreement with, or, alternatively, participates in a compensation or
benefit plan of the Company or a subsidiary corporation or parent corporation of the Company, which
agreement or plan contains a definition of “for cause” or “cause” (or words of like import) for
purposes of termination of employment thereunder by the Company or such subsidiary corporation or
parent corporation of the Company, “for cause” or “cause” as defined in the most recent of such
agreements or plans, or (ii) in all other cases, (a) the willful commission by an employee of a
criminal or other act that causes substantial economic damage to the Company or a subsidiary
corporation or parent corporation of the Company or substantial injury to the business reputation
of the Company or a subsidiary corporation or parent corporation of the Company; (b) the commission
by an employee of an act of fraud in the performance of such employee’s duties on behalf of the
Company or a subsidiary corporation or parent corporation of the Company; or (c) the continuing
willful failure of an employee to perform the duties of such employee to the Company or a
subsidiary corporation or parent

8

 

corporation of the Company (other than such failure resulting from the employee’s incapacity
due to physical or mental illness) after written notice thereof (specifying the particulars thereof
in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given to
the employee by the Board of Directors or the Committee. For purposes of the Plan, no act, or
failure to act, on the employee’s part shall be considered “willful” unless done or omitted to be
done by the employee not in good faith and without reasonable belief that the employee’s action or
omission was in the best interest of the Company or a subsidiary corporation or parent corporation
of the Company.

     For the purposes of the Plan, an employment relationship shall be deemed to exist between an
individual and a corporation if, at the time of the determination, the individual was an “employee”
of such corporation for purposes of Section 422(a) of the Code. If an individual is on military,
sick leave or other bona fide leave of absence, such individual shall be considered an “employee”
for purposes of the exercise of an Option or Right and shall be entitled to exercise such Option or
Right during such leave if the period of such leave does not exceed ninety (90) days, or, if
longer, so long as the individual’s right to reemployment with the corporation granting the option
(or a related corporation) is guaranteed either by statute or by contract. If the period of leave
exceeds ninety (90) days, the employment relationship shall be deemed to have terminated on the
ninety-first (91st) day of such leave, unless the individual’s right to reemployment is guaranteed
by statute or contract.

     A termination of employment shall not be deemed to occur by reason of (i) the transfer of an
employee from employment by the Company to employment by a subsidiary corporation or a parent
corporation of the Company or (ii) the transfer of an employee from employment by a subsidiary
corporation or a parent corporation of the Company to employment by the Company or by another
subsidiary corporation or parent corporation of the Company. Furthermore, solely for purposes of
determining the rights and obligations under any outstanding Options or Rights theretofore granted,
in the event that the Company ceases to own, directly or indirectly, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock of a subsidiary company by
virtue of a recapitalization, stock dividend, stock split, split-up, spin-off, combination of
shares or other like change in capital structure of the Company, the Committee may determine that
employment by such former subsidiary (or any parent or subsidiary company of such subsidiary) shall
continue to be deemed to be employment by the Company for purposes of the Plan.

     In the event of the complete liquidation or dissolution of a subsidiary corporation, or in the
event that the Company ceases to own, directly or indirectly, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock of such corporation, any
unexercised Options or Rights theretofore granted to any person employed by such subsidiary
corporation will be deemed canceled unless such person is employed by the Company or by any parent
corporation or another subsidiary corporation after the occurrence of such event. In the event an
Option or Right is to be canceled pursuant to the provisions of the previous sentence, notice of
such cancellation will be given to each employee holding unexercised Options or Rights and such
holder will have the right to exercise such Options or Rights in full (without regard to any
limitation set forth or imposed pursuant to Article VII) during the thirty (30) day period
following notice of such cancellation.

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     Notwithstanding anything to the contrary contained in this Article XI, in no event, however,
shall any person be entitled to exercise any Option or Right after the expiration of the period of
exercisability of such Option or Right as specified therein.

     XII. ADJUSTMENT OF SHARES; EFFECT OF CERTAIN TRANSACTIONS

     In the event of any change in the outstanding Shares through merger, consolidation,
reorganization, recapitalization, stock dividend, stock split, split-up, split-off, spin-off,
combination of shares, exchange of shares, issuance of rights to subscribe for Shares, or other
like change in capital structure of the Company, the Committee shall make such adjustment to each
outstanding Option and Right that it, in its sole discretion, deems appropriate. The term “Shares”
after any such change shall refer to the securities, cash and/or property then receivable upon
exercise of an Option or Right. In addition, in the event of any such change, the Committee shall
make any further adjustments as may be appropriate to the maximum number of Shares which may be
acquired under the Plan pursuant to the exercise of Options and Rights, the maximum number of
Shares which may be so acquired by one employee and the number of Shares and prices per Share
subject to outstanding Options and Rights as shall be equitable to prevent dilution or enlargement
of rights under such Options or Rights, and the determination of the Committee as to these matters
shall be conclusive. Notwithstanding the foregoing, (i) each such adjustment with respect to an
Incentive Option and any related Right shall comply with the rules of Section 424(a) of the Code
and (ii) in no event shall any adjustment be made which would render any Incentive Option granted
hereunder to be other than an “incentive stock option” for purposes of Section 422 of the Code.

     In the event of a “change in control” of the Company, all then outstanding Options and Rights
shall immediately become exercisable. For purposes of the Plan, a “change in control” of the
Company occurs if: (a) any “Person” (as such term is used in Sections 13(d) and 14(d)(2) of the
Exchange Act), other than Odyssey Partners, L.P. and its affiliates (which, for purposes of this
Article XII only, is deemed to include E.R. Yost) is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing (i) fifty percent (50%) or more of the combined voting power of the Company’s
then-outstanding securities; or (ii) twenty-five percent (25%) or more but less than fifty percent
(50%) of the combined voting power of the Company’s then-outstanding securities if such
transaction(s) giving rise to such beneficial ownership are not approved by the Board of Directors;
or (b) at any time a majority of the members of the Board of Directors has been elected or
designated by any Person, other than Odyssey Partners, L.P. and its affiliates (which, for purposes
of this Article XII only, is deemed to include E.R. Yost); or (c) the Board of Directors shall
approve a sale of all or substantially all of the assets of the Company or any merger,
consolidation, issuance of securities or purchase of assets, in all cases other than to or with
Odyssey Partners, L.P. or its affiliates (which, for purposes of this Article XII only, is deemed
to include E.R. Yost), the result of which would be the occurrence of any event described in clause
(a) or (b) above.

     The Committee, in its discretion, may determine that, upon the occurrence of a transaction
described in the preceding paragraph, each Option or Right outstanding hereunder shall terminate
within a specified number of days after notice to the holder, and such holder shall receive, with
respect to each Share subject to such Option or Right, cash in an amount equal to

10

 

the excess of the fair market value of such Shares immediately prior to the occurrence of such
transaction over the exercise price per Share of such Option or Right. The provisions contained in
the preceding sentence shall be inapplicable to an Option or Right granted within six (6) months
before the occurrence of a transaction described above if the holder of such Option or Right is
subject to the reporting requirements of Section 16(a) of the Exchange Act.

     XIII. RIGHT TO TERMINATE EMPLOYMENT

     The Plan shall not impose any obligation on the Company or on any subsidiary corporation or
parent corporation thereof to continue the employment of any holder of Options or Rights and it
shall not impose any obligation on the part of any holder of Options or Rights to remain in the
employ of the Company or of any subsidiary corporation or parent corporation thereof.

     XIV. PURCHASE FOR INVESTMENT

     Except for hereinafter provided, the Committee may require an employee, as a condition upon
exercise of any Option or Right granted hereunder, to execute and deliver to the Company (a) stock
powers with respect to Shares underlying a particular Option or Right and required to be held by a
custodian, and (b) a written statement, in form satisfactory to the Committee in which the employee
represents and warrants that Shares are being acquired for such person’s own account for investment
only and not with a view to the resale or distribution thereof. The employee shall, at the request
of the Committee, be required to represent and warrant in writing that any subsequent resale or
distribution of Shares by the Employee shall be made only pursuant to either (i) a Registration
Statement on an appropriate form under the Securities Act of 1933, as amended (the “Securities
Act”), which Registration Statement has become effective and is current with regard to the Shares
being sold, or (ii) a specific exemption from the registration requirements of the Securities Act,
but in claiming such exemption the employee shall, prior to any offer of sale or sale of such
Shares, obtain a prior favorable written opinion of counsel, in form and substance satisfactory to
counsel for the Company, as to the application of such exemption thereto. The foregoing
restriction shall not apply to (i) issuances by the Company so long as the Shares being issued are
registered under the Securities Act and a prospectus in respect thereof is current or (ii)
re-offerings of Shares by affiliates of the Company (as defined in Rule 405 or any successor rule
or regulation promulgated under the Securities Act) if the Shares being re-offered are registered
under the Securities Act and a prospectus in respect thereof is current.

     XV. ISSUE OF CERTIFICATES, LEGENDS, PAYMENT OF EXPENSES

     Upon any exercise of an Option or Right which may be granted hereunder and, in the case of an
Option, payment of the purchase price, a certificate or certificates for the Shares shall be issued
by the Company in the name of the person exercising the Option or Right and shall be delivered to
or upon the order of such person.

     The Company may endorse such legend or legends upon the certificates for Shares issued
pursuant to the Plan and may issue such “stop transfer” instructions to its transfer agent in
respect of such Shares as, in its discretion, it determines to be necessary or appropriate to (i)
prevent a violation of, or to perfect an exemption from, the registration requirements of the
Securities Act,

11

 

(ii) implement the provisions of the Plan and any agreement between the Company and the
optionee or grantee with respect to such Shares, or (iii) permit the Company to determine the
occurrence of a disqualifying disposition, as described in Section 421(b) of the Code, of Shares
transferred upon exercise of an Incentive Option granted under the Plan.

     The Company shall pay all issue or transfer taxes with respect to the issuance or transfer of
Shares, as well as all fees and expenses necessarily incurred by the Company in connection with
such issuance or transfer, except fees and expenses which may be necessitated by the filing or
amending of a Registration Statement under the Securities Act, which fees and expenses shall be
borne by the recipient of the Shares unless such Registration Statement has been filed by the
Company for its own corporate purposes (and the Company so states) in which event the recipient of
the Shares shall bear only fees and expenses as are attributable solely to the inclusion of the
Shares he or she received in the Registration Statement.

     All Shares issued as provided herein shall be fully paid and non-assessable to the extent
permitted by law.

     XVI. WITHHOLDING TAXES

     The Company may require an employee exercising a Right or Non-Qualified Option granted
hereunder, or disposing of Shares acquired pursuant to the exercise of an Incentive Option in a
disqualifying disposition (within the meaning of Section 421(b) of the Code), to reimburse the
corporation that employs such employee for any taxes required by any government to be withheld or
otherwise deducted and paid by such corporation in respect of the issuance or disposition of such
Shares. In lieu thereof, the corporation that employs such employee shall have the right to
withhold the amount of such taxes from any other sums due or to become due from such corporation to
the employee upon such terms and conditions as the Committee shall prescribe. The corporation that
employs such employee may, in its discretion, hold the stock certificate to which such employee is
entitled upon the exercise of an Option as security for the payment of such withholding tax
liability, until cash sufficient to pay that liability has been accumulated. In addition, at any
time that the Company becomes subject to a withholding obligation under applicable law with respect
to the exercise of a Right or Non-Qualified Option (the “Tax Date”), except as set forth below, a
holder of a Right or Non-Qualified Option may elect to satisfy, in whole or in part, the holder’s
related personal tax liabilities (an “Election”) by (i) directing the Company to withhold from
Shares issuable in the related exercise either a specified number of Shares or Shares having a
specified value (in each case not in excess of the related personal tax liabilities), (ii)
tendering Shares previously issued pursuant to the exercise of an Option or Right or other Shares
of the Company’s common stock owned by the holder or (iii) combining any or all of the foregoing
options in any fashion. An Election shall be irrevocable. The withheld Shares and other Shares
tendered in payment shall be valued at their fair market value (determined in accordance with the
principles set forth in Article V of the Plan) on the Tax Date. The Committee may disapprove of
any Election, suspend or terminate the right to make Elections or provide that the right to make
Elections shall not apply to particular Shares or exercises. The Committee may prescribe
additional rules, in its discretion, to permit a holder of an Option or Right who is subject to the
reporting requirements of Section 16(a) of the Exchange Act to effect such tax withholding in
compliance with the Rules promulgated under Section 16 of the Exchange Act and the positions of the
staff of the Securities and Exchange Commission

12

 

expressed in no-action or interpretative letters exempting such tax withholding transactions
from liability under Section 16(b) of the Exchange Act. The Committee may also impose any
additional conditions or restrictions on the right to make an Election as it shall deem
appropriate.

     XVII. LISTING OF SHARES AND RELATED MATTERS

     The Committee may delay any award, issuance or delivery of Shares if it determines that
listing, registration or qualification of Shares or the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of, or in connection with, the sale or
purchase of Shares under the Plan, until such listing, registration, qualification, consent or
approval shall have been effected or obtained, or otherwise provided for, free of any conditions
not acceptable to the Committee.

     XVIII. AMENDMENT OF THE PLAN

     The Board of Directors or the Committee, as the case may be, may, from time to time, amend the
Plan, provided that no amendment shall be made, without the approval of the stockholders of the
Company, that will (i) increase the total number of Shares reserved for Options under the Plan
(other than an increase resulting from an adjustment provided for in Article XII), (ii) reduce the
exercise price of any Incentive Option granted hereunder below the price required by Article V,
(iii) modify the provisions of the Plan relating to eligibility, or (iv) materially increase the
benefits accruing to participants under the Plan. The Board of Directors or the Committee, as the
case may be, shall be authorized to amend the Plan and the Options granted thereunder to permit the
Incentive Options granted thereunder to qualify as incentive stock options within the meaning of
Section 422 of the Code. The rights and obligations under any Option or Right granted before
amendment of the Plan or any unexercised portion of such Option or Right shall not be adversely
affected by amendment of the Plan, Option or Right without the consent of the holder of such Option
or Right.

     XIX. TERMINATION OR SUSPENSION OF THE PLAN

     The Board of Directors may at any time suspend or terminate the Plan. The Plan, unless sooner
terminated by action of the Board of Directors, shall terminate at the close of business on the
Termination Date. Options and Rights may not be granted while the Plan is suspended or after it is
terminated. Rights and obligations under any Option or Right granted while the Plan is in effect
shall not be altered or impaired by suspension or termination of the Plan, except upon the consent
of the person to whom the Option or Right was granted. The power of the Committee to construe and
administer any Options or Rights granted prior to the termination or suspension of the Plan under
Article III nevertheless shall continue after such termination or during such suspension.

     XX. GOVERNING LAW

     The Plan, such Options and Rights as may be granted thereunder and all related matters shall
be governed by, and construed and enforced in accordance with, the laws of the State of Delaware
from time to time obtaining.

13

 

     XXI. PARTIAL INVALIDITY

     The invalidity or illegibility of any provision hereof shall not be deemed to affect the
validity of any other provision.

     XXII. EFFECTIVE DATE

     This Plan became effective at 5:30 P.M., New York City Time, on the Effective Date.

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