Document:

kl09038_ex10-1.htm

 

    
      

    

    Exhibit
10.1

    

     

    Peter
C. Georgiopoulos

    c/o
General Maritime Corporation

    299 Park
Avenue, Second Floor

    New York,
New York 10171

     

    
 

                         September 29, 2009

     

    General
Maritime Corporation

    299 Park
Avenue, Second Floor

    New York,
New York 10171

    

    Gentlemen:

     

    Reference
is hereby made to that certain letter agreement, dated October 24, 2008 (the
“Letter
Agreement”), by and among General Maritime Corporation (renamed General
Maritime Subsidiary Corporation), Galileo Holding Corporation (renamed General
Maritime Corporation) (the “Company”), and me, as
amended.  Capitalized terms used herein shall have the respective
meanings ascribed to them in the Letter Agreement.

     

    Section
3(a)(i) of the Letter Agreement provides that the Company will make a payment to
me in the amount of $22 million in cash on July 1, 2009.  I
acknowledge that I have received $15 million of this amount.  This
letter agreement will confirm our mutual agreement that, Section 3(a)(1) of the
Letter Agreement notwithstanding, the Company will be deemed to have timely paid
me the remaining $7 million if payment is made in cash on or prior to December
31, 2009.

     

    Pursuant
to the last sentence of Section 19(g) of the Letter Agreement, if you are in
agreement with the foregoing, please indicate such agreement by signing and
returning one copy of this letter agreement to me, whereupon this letter
agreement will constitute our agreement with respect to the subject matter
hereof.

    
      
        	
                 

                 

                 

                 

              	
                Very
      truly yours,

                 

                Peter C.
  Georgiopoulos

              

      

       

    

    Confirmed
and agreed to:

    

    
      	
              GENERAL
      MARITIME CORPORATION

               

              By:
      /s/ John C.
      Georgiopoulos            
      

              Name:    John
      C. Georgiopoulos

              Title:      Executive
      Vice President

            	
              GENERAL
      MARITIME SUBSIDIARY CORPORATION

               

              By:
      /s/
      John C.
      Georgiopoulos           
      

              Name:   John
      C. Georgiopoulos

              Title:     TreasurerExhibit 10.3

CREXUS INVESTMENT CORP.

2009 EQUITY INCENTIVE PLAN

	
  

 	
  

 
	
  

 	
 Section
1.          Purpose of the Plan 

 
	
  

 	
  

 
	
           The
 purpose of the Plan is to aid the Company and its Affiliates in attracting,
 rewarding, and retaining employees, non-employee directors or other service
 providers and to motivate such employees, non-employee directors or other
 Persons who perform services for the Company or an Affiliate to stimulate
 their efforts toward the Company’s continued success, long-term growth and
 profitability by providing incentives through the granting of Awards. The
 Company expects that it will benefit from the added interest which such key
 employees, non-employee directors or other service providers will have in the
 welfare of the Company as a result of their proprietary interest in the
 Company’s success. 

 
	
  

 
	
  

 	
 Section
2.          Definitions 

 
	
  

 	
  

 
	
           The
 following capitalized terms used in the Plan have the respective meanings set
 forth in this Section: 

 
	
  

 
	
  

 	
             (a)          Act: The Securities Exchange Act of
 1934, as amended, or any successor thereto. 

 
	
  

 	
  

 
	
  

 	
             (b)          Affiliate: Any entity directly or
 indirectly controlling, controlled by, or under common control with, the
 Company or any other entity designated by the Board in which the Company or
 stockholder of the Company has an interest. 

 
	
  

 	
  

 
	
  

 	
             (c)          Award: An Option, Stock Appreciation
 Right, Restricted Shares, Dividend Equivalent Right, or Other Share-Based
 Award granted pursuant to the Plan. 

 
	
  

 	
  

 
	
  

 	
             (d)          Beneficial Owner: A “beneficial owner,”
 as such term is defined in Rule 13d-3 and 13d-5 under the Act (or any
 successor rule thereto). 

 
	
  

 	
  

 
	
  

 	
             (e)           Board: The Board of Directors of the
 Company. 

 
	
  

 	
  

 
	
  

 	
             (f)           Change in Control: The occurrence of any
 of the following events: 

 

	
  

 	
  

 	
  

 
	
  

 	
 i.

 	
 any
 “person,” including a “group” (as such terms are used in Sections 13(d) and
 14(d) of the Exchange Act), but excluding the Company, any entity
 controlling, controlled by or under common control with the Company, any
 trustee, fiduciary or other person or entity holding securities under any
 employee benefit plan or trust of the Company or any such entity, and, with
 respect to any particular Participant, the Participant and any “group” (as
 such term is used in Section 13(d)(3) of the Exchange Act) of which the
 Participant is a member), is or becomes the “beneficial owner” (as defined in
 Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities
 of the Company representing 50% or more

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 of either
 (A) the combined voting power of the Company’s then outstanding securities or
 (B) the then outstanding Shares (in either such case other than as a result
 of an acquisition of securities directly from the Company);

 
	
  

 	
  

 	
  

 
	
  

 	
 ii.

 	
 any consolidation
 or merger of the Company where the shareholders of the Company, immediately
 prior to the consolidation or merger, would not, immediately after the
 consolidation or merger, beneficially own (as such term is defined in Rule
 13d-3 under the Exchange Act), directly or indirectly, shares representing in
 the aggregate 50% or more of the combined voting power of the securities of
 the corporation issuing cash or securities in the consolidation or merger (or
 of its ultimate parent corporation, if any); 

 
	
  

 	
  

 	
  

 
	
  

 	
 iii.

 	
 there shall
 occur (A) any sale, lease, exchange or other transfer (in one transaction or
 a series of transactions contemplated or arranged by any party as a single
 plan) of all or substantially all of the assets of the Company, other than a
 sale or disposition by the Company of all or substantially all of the
 Company’s assets to an entity, at least 50% of the combined voting power of
 the voting securities of which are owned by “persons” (as defined above) in
 substantially the same proportion as their ownership of the Company
 immediately prior to such sale or (B) the approval by shareholders of the
 Company of any plan or proposal for the liquidation or dissolution of the
 Company; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 iv.

 	
 the members
 of the Board at the beginning of any consecutive 24-calendar-month period
 (the “Incumbent Directors”) cease for any reason other than due to death to
 constitute at least a majority of the members of the Board; provided that any
 Director whose election, or nomination for election by the Company’s shareholders,
 was approved or ratified by a vote of at least a majority of the members of
 the Board then still in office who were members of the Board at the beginning
 of such 24-calendar-month period, shall be deemed to be an Incumbent
 Director. 

 
	
  

 	
  

 	
  

 
	
  

 	
 Notwithstanding
 the foregoing, for any Awards that constitute a nonqualified deferred
 compensation plan within the meaning of Section 409A(d) of the Code and
 provide for an accelerated payment in connection with a Change in Control,
 Change in Control shall have the same meaning as set forth in any
 regulations, revenue procedure, revenue rulings or other pronouncements
 issued by the Secretary of the United States Treasury pursuant to Section
 409A of the Code, applicable to such plans. 

 

- 2 -

	
  

 	
  

 
	
  

 	
             (g)          Code: The Internal Revenue Code of 1986,
 as amended, or any successor thereto. 

 
	
  

 	
  

 
	
  

 	
             (h)          Committee: The Compensation Committee of
 the Board or such other committee as may be appointed by the Board in
 accordance with Section 4 of the Plan. The Board may exercise any power or
 right of the Committee; provided, that, the Board may not grant any Award
 that is intended to be performance-based compensation under Section 162(m) of
 the Code. 

 
	
  

 	
  

 
	
  

 	
             (i)           Company: CreXus Investment Corp., a
 Maryland corporation. 

 
	
  

 	
  

 
	
  

 	
             (j)           Dividend Equivalent Right: a right
 awarded under Section 8 of the Plan to receive (or have credited) the
 equivalent value of dividends paid on common stock of the Company. 

 
	
  

 	
  

 
	
  

 	
             (k)          Effective Date: The date the initial
 public offering of shares of the Company’s common stock. 

 
	
  

 	
  

 
	
  

 	
             (l)           Fair Market Value: On a given date, (i)
 if there should be a public market for the Shares on such date, the closing
 price of the Shares as reported on such date on the Composite Tape of the
 principal national securities exchange on which such Shares are listed or
 admitted to trading, or, if the Shares are not listed or admitted on any
 national securities exchange, the closing price on such date as quoted on the
 National Association of Securities Dealers Automated Quotation System (or
 such market in which such prices are regularly quoted) (the “NASDAQ”), or, if
 no sale of Shares shall have been reported on the Composite Tape of any
 national securities exchange or quoted on the NASDAQ on such date, then the
 immediately preceding date on which sales of the Shares have been so reported
 or quoted shall be used; provided that, in the event of an initial public
 offering of the Shares of the Company, the Fair Market Value on the date of
 such initial public offering shall be the price at which the initial public
 offering was made, and (ii) if there should not be a public market for the
 Shares on such date, the Fair Market Value shall be the value established by
 the Committee in its sole discretion, in accordance with any applicable
 requirements of Section 409(A) of the Code. 

 
	
  

 	
  

 
	
  

 	
             (m)         Group: A “group” as such term is used in Sections 13(d) and 14(d) of the
 Act, acting in concert. 

 
	
  

 	
  

 
	
  

 	
             (n)          ISO: An Option that is also an incentive
 stock option, as described in Section 422 of the Code, granted pursuant to
 Section 6(c) of the Plan. 

 
	
  

 	
  

 
	
  

 	
             (o)          Management Agreement: The Management
 Agreement between the Company and the Manager, dated as of August 31, 2009,
 as the same may be amended from time to time. 

 
	
  

 	
  

 
	
  

 	
             (p)          Manager: Fixed Income Discount Advisory
 Company, a Delaware corporation, or any successor or assign. 

 

- 3 -

	
  

 	
  

 
	
  

 	
           (q)          Option: An option to purchase Shares
 granted pursuant to Section 6 of the Plan. 

 
	
  

 	
  

 
	
  

 	
           (r)          Option Price: The purchase price per
 Share under the terms of an Option, as determined pursuant to Section 6(a) of
 the Plan. 

 
	
  

 	
  

 
	
  

 	
           (s)          Other Share-Based Awards: Awards granted
 pursuant to Section 9 of the Plan. 

 
	
  

 	
  

 
	
  

 	
           (t)          Participant: Members of the Board,
 employees of, or any Person who performs services for, the Company, the
 Manager or an Affiliate of either the Company or the Manager (whether as a
 consultant, advisor or otherwise) who is selected by the Committee or
 designated by the Manager to participate in the Plan. 

 
	
  

 	
  

 
	
  

 	
           (u)          Person: A “person,” as such term is used
 for purposes of Section 13(d) or 14(d) of the Act (or any successor section
 thereto). 

 
	
  

 	
  

 
	
  

 	
           (v)          Plan: The 2009 Equity Incentive Plan. 

 
	
  

 	
  

 
	
  

 	
           (w)         Restricted Shares: An Award of Shares to
 a Participant under Section 9 that may be subject to certain restrictions and
 a risk of forfeiture. 

 
	
  

 	
  

 
	
  

 	
           (x)          RSU: A restricted share unit, granted
 pursuant to Section 9 of the Plan, which represents the right to receive a
 Share. 

 
	
  

 	
  

 
	
  

 	
           (y)          Shares: Shares of common stock of the
 Company, subject to adjustment pursuant to Section 10 of the Plan. 

 
	
  

 	
  

 
	
  

 	
           (z)          Stock Appreciation Right: A stock
 appreciation right granted in connection with or independent of the grant of
 an Option, pursuant to Section 7 of the Plan. 

 
	
  

 	
  

 
	
  

 	
 Section
 3.         Shares
 Subject to the Plan

 

          Subject
to this Section 3, and subject to adjustments as provided in Section 10, the
total number of Shares that may be issued with respect to Awards granted under
the Plan, in the aggregate, may not exceed 2.5% of the authorized number of
Shares of the Company on the Effective Date; provided, however, that no Award
may cause the total number of Shares subject to all outstanding Awards to
exceed an amount equal to (i) 2.5% of the number of Shares outstanding on a
fully diluted basis (assuming, if applicable, the exercise of all outstanding
options and the conversion of all warrants and convertible securities into
Shares) at the time of the Award less (ii) 250,000 Shares. The Shares that may
be used hereunder may consist, in whole or in part, of unissued Shares or
previously issued Shares that have been reacquired by the Company, as
determined by the Chief Financial Officer of the Company (or the Chief
Financial Officer’s designee) from time to time, unless otherwise determined by
the Committee. The issuance of Shares upon the exercise or payment of an Award
shall reduce the total number of Shares available under the Plan, as
applicable. Shares which are subject to Awards that terminate, lapse or are
cancelled may again be used to satisfy Awards under the Plan. If the Option
Price of any Option granted under the Plan is satisfied by delivering Shares to
the 

- 4 -

Company in
accordance with the terms of Section 6(b) of the Plan (including a through a
net settlement), only the number of Shares issued net of the Shares delivered
shall be deemed delivered for purposes of determining the maximum number of
Shares available under the Plan. If, in accordance with the terms of the Plan,
a Participant pays the Option Price for an Option or satisfies any tax
withholding requirement with respect to any taxable event arising as a result
of this Plan by either tendering previously owned Shares or having the Company
withhold Shares, then such Shares shall not be deemed to have been delivered
for purposes of determining the maximum number of Shares available under the
Plan. Shares subject to Dividend Equivalent Rights, other than Dividend
Equivalent Rights based directly on the dividends payable with respect to
Shares subject to Options, shall be subject to the limitation of this Section
3. If any Dividend Equivalent Rights or Other Share-Based Awards under Section
9 are paid out in cash, then the underlying Shares may again be made the subject
of Awards under the Plan. For purposes of Section 422(b)(1) of the Code, the
maximum number of Shares which may be issued under the Plan pursuant to ISOs is
as set forth in the first sentence of this Section 3 above, without regard to
the adjustments above resulting from Awards that terminate, lapse or are
cancelled, from Shares used to satisfy the Option Price of any Option, from
Shares used to satisfy any tax withholding obligation or from Awards settled in
cash. In addition, in no event shall a Participant receive an Award or Awards
during any one (1) calendar year covering in the aggregate more than two
hundred thousand (200,000) Shares (whether such Award or Awards may be settled
in Shares, cash or any combination of Shares and cash). 

          Section
4.          Administration

          The
Plan shall be administered by the Committee, which may delegate its duties and
powers in whole or in part as it determines, including to a subcommittee
consisting of at least two individuals who are intended to qualify as
“non-employee directors” within the meaning of Rule 16b-3 under the Act (or any
successor rule thereto) and “outside directors” within the meaning of Section
162(m) of the Code. The Committee may grant Awards under this Plan only to
Participants; provided that Awards may also, in the discretion of the
Committee, be made under the Plan in assumption of, or in substitution for,
outstanding awards previously granted by the Company or its Affiliates or a
company that becomes an Affiliate. The number of Shares underlying such
substitute Awards shall be counted against the aggregate number of Shares
available for Awards under the Plan. The Committee is authorized to interpret
the Plan, to establish, amend and rescind any rules and regulations relating to
the Plan, and to make any other determinations that it deems necessary or
desirable for the administration of the Plan. The Committee may correct any
defect or supply any omission or reconcile any inconsistency in the Plan in the
manner and to the extent the Committee deems necessary or desirable. Any
decision of the Committee in the interpretation and administration of the Plan,
as described herein, shall lie within its sole and absolute discretion and
shall be final, conclusive and binding on all parties concerned (including, but
not limited to, Participants and their beneficiaries or successors). The
Committee shall have the full power and authority to establish the terms and
conditions of any Award consistent with the provisions of the Plan and to waive
any such terms and conditions at any time, in its sole discretion (including,
without limitation, accelerating or waiving any vesting conditions and/or
accelerating any payment). No member of the Committee shall be personally
liable for any action, determination or interpretations taken or made in good
faith with respect to this Plan or Awards made hereunder, and all members of
the Committee shall be fully 

- 5 -

indemnified
and protected by the Company in respect of any such action, determination or
interpretation. 

          Section
5.       Limitations 

          No
Award may be granted under the Plan after the tenth anniversary of the earlier
of (i) the stockholders adopt the Plan or (ii) the date the Board adopts the
Plan, but Awards theretofore granted may extend beyond that date and will
continue to be governed by the terms of the Plan. 

          Section
6.       Terms and
Conditions of Options 

          Options
granted under the Plan shall be, as determined by the Committee, non-qualified
stock options or ISOs for United States federal income tax purposes (or other
types of Options in jurisdictions outside the United States), as evidenced by
the related Award, and shall be subject to the foregoing, the following terms
and conditions, and to such other terms and conditions, not inconsistent
therewith, as the Committee shall determine: 

	
  

 	
  

 
	
  

 	
           (a)          Option
 Price; Exercisability. Any Option granted under the Plan shall
 have an Option Price of not less than the Fair Market Value of one Share on
 the date the Option is granted, and shall be vested and exercisable in
 installments at such time and upon such terms and conditions, as may be
 determined by the Committee, but in no event shall an Option be exercisable
 more than ten years after the date it is granted. 

 
	
  

 	
  

 
	
  

 	
           (b)          Exercise
 of Options. Except as otherwise provided in the Plan or in an Award, an
 Option may be exercised for all, or from time to time any part, of the Shares
 for which it is then exercisable. For purposes of this Section 6 of the Plan,
 the exercise date of an Option shall be the later of the date a notice of
 exercise is received by the Company and, if applicable, the date payment is
 received by the Company pursuant to clauses (i) through (vi) in the following
 sentence. Except as otherwise provided in an Award, the purchase price for
 the Shares as to which an Option is exercised shall be paid in full at the
 time of exercise at the election of the Participant: (i) in cash or its
 equivalent (e.g., by check); (ii) to the extent permitted by the Committee,
 in Shares having a Fair Market Value equal to the aggregate Option Price for
 the Shares being purchased and satisfying such other requirements as may be
 imposed by the Committee; (iii) partly in cash and, to the extent permitted
 by the Committee, partly in such Shares; (iv) to the extent permitted by
 applicable law through the delivery of irrevocable instructions to a broker
 to sell Shares obtained upon the exercise of the Option and deliver promptly
 to the Company an amount out of the proceeds of such sale equal to the
 aggregate Option Price for the Shares being purchased, (v) to the extent
 permitted by the Committee, through net settlement in Shares (a “cashless
 exercise”) or (vi) by any other means which the Committee determines to be
 consistent with the Plan’s purpose and applicable law. The Committee may also
 authorize the Company to make or facilitate loans to Participants to enable
 them to exercise Options to the extent not prohibited by applicable law. The
 Committee may permit Participants to exercise Options in joint-tenancy with
 the Participant’s spouse. 

 

- 6 -

	
  

 	
  

 
	
  

 	
           (c)          ISOs.
 The Committee may grant Options under the Plan that are intended to be ISOs.
 No ISO shall have an Option Price of less than the Fair Market Value of one
 Share on the date granted or have a term in excess of ten years.
 Additionally, no ISO may be granted to any Participant who, at the time of
 such grant, owns more than ten percent of the total combined voting power of
 all classes of shares of the Company or of any Subsidiary, unless (i) the
 Option Price for such ISO is at least 110% of the Fair Market Value of one
 Share on the date the ISO is granted and (ii) the date on which such ISO
 terminates is a date not later than the day preceding the fifth anniversary
 of the date on which the ISO is granted. Any Participant who disposes of
 Shares acquired upon the exercise of an ISO either (A) within two years after
 the date of grant of such ISO or (B) within one year after the transfer of
 such Shares to the Participant, shall notify the Company of such disposition
 and of the amount realized upon such disposition. All options granted under
 the Plan are intended to be nonqualified stock options, unless the applicable
 Award agreement expressly states that the Option is intended to be an ISO. If
 an Option is intended to be an ISO, and if for any reason such Option (or
 portion thereof) shall not qualify as an ISO, then, to the extent of such
 non-qualification, such Option (or portion thereof) shall be regarded as a
 nonqualified stock option granted under the Plan; provided that such Option
 (or portion thereof) otherwise complies with the Plan’s requirements relating
 to nonqualified stock options. In no event shall any member of the Committee,
 the Company or any of its Affiliates (or their respective employees, officers
 or directors) have any liability to any Participant (or any other Person) due
 to the failure of an Option to qualify for any reason as an ISO. 

 
	
  

 	
  

 
	
  

 	
           (d)          Attestation.
 Wherever in this Plan or any agreement evidencing an Award a Participant is
 permitted to pay the Option Price (or taxes relating to the exercise of an
 Option) by delivering Shares, the Participant may, subject to procedures
 satisfactory to the Committee (and to the extent permitted by applicable
 law), satisfy such delivery requirement by presenting proof of record
 ownership of such Shares, or, to the extent permitted by the Committee,
 beneficial ownership of such Shares, in which case the Company shall treat
 the Option as exercised without further payment and shall withhold such
 number of Shares from the Shares acquired by the exercise of the Option. 

 
	
  

 	
  

 
	
  

 	
 Section
 7.        Terms and
 Conditions of Stock Appreciation Rights 

 
	
  

 	
  

 
	
  

 	
           (a)          Grants.
 The Committee also may grant (i) a Stock Appreciation Right independent of an
 Option or (ii) a Stock Appreciation Right in connection with an Option, or a
 portion thereof. A Stock Appreciation Right granted pursuant to clause (ii)
 of the preceding sentence (A) may be granted at the time the related Option
 is granted or at any time prior to the exercise or cancellation of the related
 Option, (B) shall cover the same number of Shares covered by an Option (or
 such lesser number of Shares as the Committee may determine) and (C) shall be
 subject to the same terms and conditions as such Option except for such
 additional limitations as are contemplated by this Section 7 (or such
 additional limitations as may be included in a Stock Appreciation Right
 Award). 

 
	
  

 	
  

 
	
  

 	
           (b)          Terms.
 The exercise price per Share of a Stock Appreciation Right shall be an amount
 determined by the Committee but in no event shall such amount be less than
 the greater of (i) the Fair Market Value of a Share on the date the Stock

 

- 7 -

	
  

 	
  

 
	
  

 	
 Appreciation
 Right is granted or, in the case of a Stock Appreciation Right granted in
 conjunction with an Option, or a portion thereof, the Option Price of the
 related Option and (ii) the minimum amount permitted by applicable laws,
 rules, by-laws or policies of regulatory authorities or stock exchanges. Each
 Stock Appreciation Right granted independent of an Option shall entitle a
 Participant upon exercise to a payment from the Company of an amount equal to
 (i) the excess of (A) the Fair Market Value on the exercise date of one Share
 over (B) the exercise price per Share, times (ii) the number of Shares
 covered by the Stock Appreciation Right. Each Stock Appreciation Right
 granted in conjunction with an Option, or a portion thereof, shall entitle a
 Participant to surrender to the Company the unexercised Option, or any
 portion thereof, and to receive from the Company in exchange therefor an
 amount equal to (i) the excess of (A) the Fair Market Value on the exercise
 date of one Share over (B) the Option Price, times (ii) the number of Shares
 covered by the Option, or portion thereof, which is surrendered. The date a
 notice of exercise is received by the Company shall be the exercise date.
 Payment shall be made in Shares or in cash, or partly in Shares and partly in
 cash (any such Shares valued at such Fair Market Value), all as shall be
 determined by the Committee. Stock Appreciation Rights may be exercised from
 time to time upon actual receipt by the Company of written notice of exercise
 stating the number of Shares with respect to which the Stock Appreciation
 Right is being exercised. No fractional Shares will be issued in payment for
 Stock Appreciation Rights, but instead cash will be paid for a fraction or,
 if the Committee should so determine, the number of Shares will be rounded
 downward to the next whole Share. 

 
	
  

 	
  

 
	
  

 	
           (c)          Limitations.
 The Committee may impose, in its discretion, such conditions upon the
 exercisability of Stock Appreciation Rights as it may deem fit; provided that
 no Stock Appreciation Right may remain exercisable more than 10 years after
 the date of grant. 

 
	
  

 	
  

 
	
  

 	
 Section
 8.        Terms and
 Conditions of Dividend Equivalent Rights

 
	
  

 	
  

 
	
  

 	
           (a)          Grants.
 Subject to the other terms of the Plan, the Committee shall, in its
 discretion as reflected by the terms of the Award Agreements, authorize the
 granting of Dividend Equivalent Rights to Participants based on the regular
 cash dividends declared on Shares, to be credited as of the dividend payment
 dates, during the period between the date an Award is granted, and the date
 such Award is exercised, vests or expires, as determined by the Committee.
 Such Dividend Equivalent Rights shall be converted to cash or additional
 Shares by such formula and at such time and subject to such limitation as may
 be determined by the Committee. With respect to Dividend Equivalent Rights
 granted with respect to Options intended to be qualified performance-based
 compensation for purposes of Section 162(m) of the Code, such Dividend Equivalent
 Rights shall be payable regardless of whether such Option is exercised. If a
 Dividend Equivalent Right is granted in respect of another Award hereunder,
 then, unless otherwise stated in the Award Agreement, in no event shall the
 Dividend Equivalent Right be in effect for a period beyond the time during
 which the applicable portion of the underlying Award is in effect. 

 

- 8 -

	
  

 	
  

 
	
  

 	
           (b)          Certain
 Terms. The terms of a Dividend Equivalent Right shall be set by the
 Committee in its discretion. Payment of the amount determined in accordance
 with Section 8(a) shall be in cash, in Common Stock or a combination of the
 both, as determined by the Committee. 

 
	
  

 	
  

 
	
  

 	
           (c)          Other
 Types of Dividend Equivalent Rights. The Committee may establish a
 program under which Dividend Equivalent Rights of a type whether or not
 described in the foregoing provisions of this Section 8 may be granted to
 Participants. For example, and without limitation, the Committee may grant a
 dividend equivalent right in respect of each Share subject to an Option,
 which right would consist of the right (subject to Section 8(b)) to receive a
 cash payment in an amount equal to the dividend distributions paid on a Share
 from time to time.

 
	
  

 	
  

 
	
  

 	
 Section
 9.        Other
 Share-Based Awards 

 
	
  

 	
  

 
	
  

 	
           (a)          Generally.
 The Committee, in its sole discretion, may grant Awards of Shares, Awards of
 Restricted Shares, Awards of RSUs and other Awards that are valued in whole
 or in part by reference to, or are otherwise based on the Fair Market Value,
 of Shares (“Other Share-Based Awards”). Such Other Share-Based Awards
 shall be in such form, and dependent on such conditions, as the Committee
 shall determine, including, without limitation, the right to receive one or
 more Shares (or the equivalent cash value of such Shares) upon the completion
 of a specified period of service, the occurrence of an event and/or the
 attainment of performance objectives. Other Share-Based Awards may be granted
 alone or in addition to any other Awards granted under the Plan. Subject to
 the provisions of the Plan, the Committee shall determine: (i) to whom and
 when Other Share-Based Awards will be made; (ii) the number of Shares to be
 awarded under (or otherwise related to) such Other Share-Based Awards; (iii)
 whether such Other Share-Based Awards shall be settled in cash, Shares or a
 combination of cash and Shares; and (iv) all other terms and conditions of
 such Other Share-Based Awards (including, without limitation, the vesting provisions
 thereof and provisions ensuring that all Shares so awarded and issued shall
 be fully paid and non-assessable). 

 
	
  

 	
  

 
	
  

 	
           (b)          Performance-Based
 Awards. Notwithstanding anything to the contrary herein, certain Other
 Share-Based Awards granted under this Section 9 may be granted in a manner
 which is intended to be deductible by the Company under Section 162(m) of the
 Code (or any successor section thereto) (“Performance-Based Awards”). A
 Participant’s Performance-Based Award shall be determined based on the
 attainment of written performance goals approved by the Committee for a
 performance period established by the Committee (i) while the outcome for
 that performance period is substantially uncertain and (ii) no more than 90
 days after the commencement of the performance period to which the
 performance goal relates or, if less, the number of days which is equal to 25
 percent of the relevant performance period. The performance goals, which must
 be objective, shall be based upon one or more of the following criteria: (i)
 consolidated earnings before or after taxes (including earnings before
 interest, taxes, depreciation and amortization); (ii) net income; (iii)
 operating income; (iv) earnings per Share; (v) book value per Share; (vi)
 return on stockholders’ equity; (vii) expense management; (viii) return on
 investment; (ix) improvements in capital structure; (x)

 

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 profitability
 of an identifiable business unit or product; (xi) maintenance or improvement
 of profit margins; (xii) stock price; (xiii) dividend per Share; (xiv)
 revenues or sales; (xv) costs; (xvi) cash flow; and (xvii) return on assets.
 The foregoing criteria may relate to the Company, one or more of its
 Affiliates or one or more of its or their divisions or units, or any combination
 of the foregoing, and may be applied on an absolute basis and/or be relative
 to prior years for the Company, one or more peer group companies or indices,
 or any combination thereof, all as the Committee shall determine. In
 addition, to the degree consistent with Section 162(m) of the Code (or any
 successor section thereto), the performance goals may be calculated without
 regard to extraordinary items. The Committee shall determine whether, with
 respect to a performance period, the applicable performance goals have been
 met with respect to a given Participant and, if they have, shall so certify
 and ascertain the amount of the applicable Performance-Based Award. No
 Performance-Based Awards will be paid for such performance period until such
 certification is made by the Committee. The amount of the Performance-Based
 Award actually paid to a given Participant may be less than the amount
 determined by the applicable performance goal formula, at the discretion of
 the Committee. The amount of the Performance-Based Award determined by the
 Committee for a performance period shall be paid to the Participant at such
 time as determined by the Committee in its sole discretion after the end of
 such performance period; provided, however, that a Participant may, if and to
 the extent permitted by the Board and consistent with the provisions of
 Sections 162(m) and 409A of the Code, elect to defer payment of a
 Performance-Based Award.

 
	
  

 	
  

 
	
  

 	
 Section
 10.       Adjustments
 Upon Certain Events 

 
	
  

 	
  

 
	
           Subject
 to Section 18 below, the following provisions shall apply to all Awards
 granted under the Plan: 

 
	
  

 	
  

 
	
  

 	
           (a)          Generally.
 In the event of any change in the outstanding Shares after the Effective Date
 by reason of any Share dividend or split, reorganization, recapitalization,
 merger, consolidation, spin-off or combination transaction or exchange of
 Shares or other corporate exchange, or any distribution to stockholders of
 Shares other than regular cash dividends or any transaction similar to the foregoing,
 the Committee in its sole discretion and without liability to any person
 shall make such substitution or adjustment, if any, as it deems to be
 equitable, as to (i) the number or kind of Shares or other securities
 available for issuance, issued or reserved for issuance pursuant to the Plan
 and pursuant to outstanding Awards; (ii) the maximum amounts of Awards that
 may be granted during a calendar year to any Participant pursuant to Section
 3; (iii) the Option Price or exercise price of any Stock Appreciation Right;
 and/or (iv) any other affected terms of any Award. 

 
	
  

 	
  

 
	
  

 	
           (b)          Change
 in Control. In the event of a Change in Control after the Effective Date,
 the Committee may, in its sole discretion, provide for: (i) the accelerated
 vesting (including transferability) or exercisability of any outstanding
 Awards then held by Participants that are otherwise unexercisable or
 unvested, as the case may be, to the extent determined by the Committee and
 as of a date selected by the Committee; (ii) the earning of all or any
 outstanding performance shares or incentive awards; (iii) the termination of
 an Award upon the consummation of the Change in Control, and the

 

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 payment of a
 cash amount in exchange for the cancellation of an Award which, in the case
 of Options and Stock Appreciation Rights, may equal the excess, if any, of
 the Fair Market Value of the Shares in the Change in Control subject to such
 Options or Stock Appreciation Rights over the aggregate exercise price of
 such Options or Stock Appreciation Rights; and/or (iv) the issuance of
 substitute Awards that will substantially preserve the otherwise applicable
 terms of any affected Awards previously granted hereunder. 

 

          Section
11.          No Right to
Employment or Awards 

          The
granting of an Award under the Plan shall impose no obligation on the Company
or any Affiliate to continue the employment or service or consulting
relationship of a Participant and shall not lessen or affect the Company’s or
Affiliate’s right to terminate the employment or service or consulting
relationship of such Participant. No Participant or other person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards. The terms and
conditions of Awards and the Committee’s determinations and interpretations
with respect thereto need not be the same with respect to each Participant
(whether or not such Participants are similarly situated). 

          Section
12.          Successors
and Assigns 

          The
Plan shall be binding on all successors and assigns of the Company and a
Participant, including without limitation, the estate of such Participant and
the executor, administrator or trustee of such estate, or any receiver or
trustee in bankruptcy or representative of the Participant’s creditors. 

          Section
13.          Transferability
of Awards 

          Unless
otherwise permitted by the Committee on such terms and conditions as it shall
determine, an Award shall not be transferable or assignable by the Participant
other than by will or by the laws of descent and distribution. An Award
exercisable after the death of a Participant may be exercised by the legatees,
personal representatives or distributees of the Participant. 

          Section
14.          Amendments or
Termination 

          Subject
to Section 10 of the Plan, the Board may amend, alter or discontinue the Plan,
but no amendment, alteration or discontinuation shall be made which would: (a)
increase the maximum number of Shares available for Awards under the Plan
(including the limits applicable to the different types of Awards) or change
the class of eligible Participants under the Plan (other than amendments having
such purpose that are approved by a majority of the Stockholders of the Company
that are present and entitled to vote on such matter at a meeting duly convened
for such purposes (or such other standard of Stockholder vote as may be
required by applicable state or federal law)); (b) without the consent of a
Participant, diminish any of the rights of the Participant under any Award
theretofore granted to such Participant under the Plan; or (c) be prohibited by
applicable law or otherwise require stockholder approval (whether in order to
maintain the full tax deductibility of all Awards under Section 162(m) of the
Code or otherwise); provided, however, that the Committee may amend the Plan in
such manner as it deems necessary to permit Awards to meet the requirements of
the Code or other applicable laws. [In 

- 11 -

no event may
the Board amend the Plan or any Award to provide for the repricing of any
Option price or exercise price of any Stock Appreciation Rights without the
approval by the Stockholders of the Company. Notwithstanding any provision
herein to the contrary, the repricing of Options or Stock Appreciation Rights
is prohibited without prior approval of the Company’s stockholders. For this
purpose, a “repricing” means any of the following (or any other action that has
the same effect as any of the following): (A) changing the terms of an Option
or Stock Appreciation Right to lower its Option Price or grant price; (B) any
other action that is treated as a “repricing” under generally accepted
accounting principles; and (C) repurchasing for cash or canceling an Option or
Stock Appreciation Right at a time when its Option Price or grant price is
greater than the Fair Market Value of the underlying Shares in exchange for
another Award, unless the cancellation and exchange occurs in connection with a
change in capitalization or similar change under Section 10 above. Such
cancellation and exchange would be considered a “repricing” regardless of
whether it is treated as a “repricing” under generally accepted accounting
principles and regardless of whether it is voluntary on the part of the
Participant.” 

          Without
limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be
interpreted in accordance with Section 409A of the Code and Department of
Treasury regulations and other interpretative guidance issued thereunder,
including without limitation any such regulations or other guidance that may be
issued after the Effective Date. Notwithstanding any provision of the Plan to
the contrary, in the event that the Committee reasonably determines that any
amounts payable hereunder may be taxable to a Participant under Section 409A of
the Code and related Department of Treasury guidance prior to payment to such
Participant of such amount, the Company may (a) adopt such amendments to the
Plan and Awards and appropriate policies and procedures, including amendments
and policies with retroactive effect, that the Committee determines necessary
or appropriate to preserve the intended tax treatment of the benefits provided
by the Plan and Awards hereunder and/or (b) take such other actions as the
Committee determines necessary or appropriate to comply with the requirements
of Section 409A of the Code, provided that under no circumstances shall the
Company or any affiliate be liable for or indemnify any Participant for any
additional taxes or other amounts that may be imposed upon such Participant
pursuant to or as a result of Section 409A of the Code. 

          Section
15.          International
Participants 

          With
respect to Participants, if any, who reside or work outside the United States
of America, the Committee may, in its sole discretion, amend the terms of the
Plan or Awards with respect to such Participants in order to conform such terms
with the provisions of local law, and the Committee may, where appropriate,
establish one or more sub-plans to reflect such amended or varied provisions. 

          Section
16.          Choice of Law

          The
Plan shall be governed by and construed in accordance with the laws of the
State of New York without regard to conflicts of laws. 

          Section
17.          Effectiveness
of the Plan 

- 12 -

          The
Plan shall be effective as of the Effective Date.

          Section
18.          Section 409A 

          Without
limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be
interpreted in accordance with Section 409A of the Code and Department of
Treasury regulations and other interpretative guidance issued thereunder,
including without limitation any such regulations or other guidance that may be
issued after the Effective Date. Notwithstanding any provision of the Plan to
the contrary, in the event that the Committee reasonably determines that any
amounts payable hereunder may be taxable to a Participant under Section 409A of
the Code and related Department of Treasury guidance prior to payment to such
Participant of such amount, the Company may (a) adopt such amendments to the
Plan and Awards and appropriate policies and procedures, including amendments
and policies with retroactive effect, that the Committee determines necessary
or appropriate to preserve the intended tax treatment of the benefits provided
by the Plan and Awards hereunder and/or (b) take such other actions as the Committee
determines necessary or appropriate to comply with the requirements of Section
409A of the Code, provided that under no circumstances shall the Company or any
affiliate be liable for or indemnify any Participant for any additional taxes
or other amounts that may be imposed upon such Participant pursuant to or as a
result of Section 409A of the Code.

          Section
19.          Tax
Withholding

          The
Company shall have the power and the right to deduct or withhold, or require a
Participant to remit to the Company, an amount sufficient to satisfy Federal,
state, and local taxes (including the Participant’s FICA obligation) required
by law to be withheld with respect to any taxable event arising as a result of
this Plan. In that regard, the Company may cause any such tax withholding
obligation to be satisfied by the Company withholding Shares having a Fair
Market Value on the date the tax is to be determined equal to the minimum
statutory total tax which could be imposed on the transaction. In the alternative,
the Company may permit Participants to elect to satisfy the tax withholding
obligation, in whole or in part, by either (i) having the Company withhold
Shares having a Fair Market Value on the date the tax is to be determined equal
to the minimum statutory total tax which could be imposed on the transaction or
(ii) tendering previously acquired Shares having an aggregate Fair Market Value
equal to the minimum statutory total tax which could be imposed on the
transaction (provided that the Shares which are tendered must have been held by
the Participant for at least six (6) months prior to their tender unless such
Shares had been acquired by the Participant on the open market). All such
elections shall be irrevocable, made in writing, signed by the Participant, and
shall be subject to any restrictions or limitations that the Committee, in its
sole discretion, deems appropriate.

- 13 -

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