Document:

Exhibit
10.01

 

 

	
  TO:

  	
  David
  J. Field (“Employee”)

  
	
   

  	
   

  
	
  FROM:

  	
  John
  C. Donlevie [sign here] /s/John C. Donlevie

  
	
   

  	
   

  
	
  DATE:

  	
  May 4,
  2010

  
	
   

  	
   

  
	
  RE:

  	
  Consent
  to Receive Annual Bonus in the Form of Equity in Lieu of Cash

  

 

This
Memorandum is made in reference to that certain employment agreement between
you (the “Employee”) and Entercom Communications
Corp. (the “Company”) dated as of
July 1, 2007 as amendment (collectively the “Agreement”).  Specifically, pursuant to Section 4.2
of the Agreement, you have the opportunity to earn an annual performance bonus
(the “Annual Bonus”) to be determined by the
Compensation Committee of the Board (the “Compensation Committee”).  Historically, the Company has paid the Annual
Bonus determined by the Compensation Committee in the form of a cash
payment.  By this Memorandum, you are
consenting to the payment of such Annual Bonus in the form of a grant of equity
of the Company, cash or a combination thereof.

 

To
that end,

 

1.             Consent.  Employee hereby consents to the payment of
the Annual Bonus in the form of equity of the Company, cash or a combination
thereof, at the election of the Compensation Committee, in satisfaction of any
obligation to pay such Annual Bonus in cash.

 

2.             Miscellaneous.  This Memorandum constitutes the
entire agreement and understanding between Employee and the Company concerning
the subject matter hereof.  No other
written or oral agreements or promises have been made with respect to entering
into this Memorandum.  This Memorandum is
not intended, nor shall it be deemed, to: (i) change or alter the
obligations of the Company with respect to the Annual Bonus; or (ii) fix,
increase or decrease the amount, if any, of the Annual Bonus.  All terms and provisions of the Agreement not
expressly modified by this Memorandum remain in full force and effect and are
binding on the Employee and the Company. 
This Memorandum does not, and shall not be deemed to, extend the term of
Employee’s employment with the Company as set forth in the Agreement.

 

For
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, Employee has executed this Memorandum.

 

ACCEPTED &
AGREED TO:

 

	
  By:

  	
  /s/David
  J. Field

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
  David
  J. Field

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  May 4,
  2010Exhibit
10.02

 

 

	
  TO:

  	
  Stephen
  F. Fisher (“Employee”)

  
	
   

  	
   

  
	
  FROM:

  	
  John
  C. Donlevie [sign here]/s/ John C. Donlevie

  
	
   

  	
   

  
	
  DATE:

  	
  May 4,
  2010

  
	
   

  	
   

  
	
  RE:

  	
  Consent
  to Receive Annual Bonus in the Form of Equity in Lieu of Cash

  

 

This
Memorandum is made in reference to that certain employment agreement between
you (the “Employee”) and Entercom Communications
Corp. (the “Company”) dated as of
December 19, 2007 as amendment (collectively the “Agreement”).  Specifically, pursuant to Section 3
of the Agreement, you are eligible for an annual cash bonus (the “Annual Bonus”) to be determined by the Compensation
Committee of the Board (the “Compensation Committee”).  By this Memorandum, you are consenting to the
payment of such Annual Bonus in the form of a grant of equity of the Company,
cash or a combination thereof.

 

To
that end,

 

1.             Consent.  Employee hereby consents to the payment of
the Annual Bonus in the form of equity of the Company, cash or a combination
thereof, at the election of the Compensation Committee, in satisfaction of any
obligation to pay such Annual Bonus in cash.

 

2.             Miscellaneous.  This Memorandum constitutes the
entire agreement and understanding between Employee and the Company concerning
the subject matter hereof.  No other
written or oral agreements or promises have been made with respect to entering
into this Memorandum.  This Memorandum is
not intended, nor shall it be deemed, to: (i) change or alter the
obligations of the Company with respect to the Annual Bonus; or (ii) fix,
increase or decrease the amount, if any, of the Annual Bonus.  All terms and provisions of the Agreement not
expressly modified by this Memorandum remain in full force and effect and are
binding on the Employee and the Company. 
This Memorandum does not, and shall not be deemed to, extend the term of
Employee’s employment with the Company as set forth in the Agreement.

 

For
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, Employee has executed this Memorandum.

 

ACCEPTED &
AGREED TO:

 

	
  By:

  	
  /s/
  Stephen F. Fisher

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
  Stephen
  F. Fisher

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  May 4,
  2010Exhibit
10.03

 

 

	
  TO:

  	
  John
  C. Donlevie (“Employee”)

  
	
   

  	
   

  
	
  FROM:

  	
  Stephen
  F. Fisher [sign
  here]/s/ Stephen F. Fisher

  
	
   

  	
   

  
	
  DATE:

  	
  May 4,
  2010

  
	
   

  	
   

  
	
  RE:

  	
  Consent
  to Receive Annual Bonus in the Form of Equity in Lieu of Cash

  

 

This
Memorandum is made in reference to that certain employment agreement between
you (the “Employee”) and Entercom Communications
Corp. (the “Company”) dated as of
December 23, 1998 (“Agreement”).  Specifically, pursuant to Section 2
of the Agreement, you are eligible for an annual cash bonus (the “Annual Bonus”) to be determined by the CEO of the Company or
the Compensation Committee of the Board (the “Compensation
Committee”).  By this
Memorandum, you are consenting to the payment of such Annual Bonus in the form
of a grant of equity of the Company, cash or a combination thereof.

 

To
that end,

 

1.             Consent.  Employee hereby consents to the payment of
the Annual Bonus in the form of equity of the Company, cash or a combination
thereof, at the election of the Compensation Committee, in satisfaction of any
obligation to pay such Annual Bonus in cash.

 

2.             Miscellaneous.  This Memorandum constitutes the
entire agreement and understanding between Employee and the Company concerning
the subject matter hereof.  No other
written or oral agreements or promises have been made with respect to entering
into this Memorandum.  This Memorandum is
not intended, nor shall it be deemed, to: (i) change or alter the
obligations of the Company with respect to the Annual Bonus; or (ii) fix,
increase or decrease the amount, if any, of the Annual Bonus.  All terms and provisions of the Agreement not
expressly modified by this Memorandum remain in full force and effect and are
binding on the Employee and the Company. 
This Memorandum does not, and shall not be deemed to, extend the term of
Employee’s employment with the Company as set forth in the Agreement.

 

For
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, Employee has executed this Memorandum.

 

ACCEPTED &
AGREED TO:

 

	
  By:

  	
  /s/John
  C. Donlevie

  	
   

  
	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
  John
  C. Donlevie

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  May 4,
  2010Exhibit
10.04

 

Entercom Communications Corp.

Non-employee Director Compensation Policy

 

Cash Compensation:

 

Annual
Board Retainer:  $40,000 per
year.

 

Committee
Membership Fee:

·  Audit
Committee - $7,500 per year

·  Compensation
Committee - $2,500 per year; and

· 
Nominating/Corporate Governance Committee - $2,500 per year.

 

Committee
Chair Fee:

·  Audit
Committee Chair - $10,000 per year; and

·  Compensation
Committee Chair - $7,500 per year.

 

Payment:  The Board Retainer, Committee Membership Fees
and Committee Chair Fees shall be paid in equal quarterly installments on May 31,
August 31, November 30 and February 28 following election to the
board, committee or chair position, as applicable; provided that each
non-employee director shall have the option, on or before their date of
election, to choose to receive restricted stock of the Company in lieu of such
cash payments.  Any such choice to
receive restricted stock in lieu of cash will be granted on the date of election
to the board, committee or chair position and the number of shares will be
computed based on the closing price of the Company’s stock at the end of the
last trading day immediately preceding such election.  Share shares will vest on the day prior to
next the annual meeting of shareholders. 
For partial year service the applicable fee(s) will be prorated
based upon the days of service.

 

Equity Compensation:  An annual grant of $35,000 in shares of restricted
stock to be granted at the time of annual grants to employees of the Company in
the form previously approved by the Compensation Committee and vest over four
years.  The number of shares will be
computed based on the closing price of the Company’s stock at the end of the
last trading day immediately preceding the grant date.Exhibit
10.1

 

SECOND AMENDED AND RESTATED

CHRISTOPHER & BANKS CORPORATION

2006 EQUITY INCENTIVE PLAN

FOR NON-EMPLOYEE DIRECTORS

 

SECTION 1.

DEFINITIONS

 

As used herein, the following
terms shall have the meanings indicated below:

 

(a)           “Administrator”  shall mean the Board of Directors of the
Company, or one or more Committees appointed by the Board, as the case may be.

 

(b)           “Affiliate(s)” shall mean a Parent or Subsidiary of the
Company.

 

(c)           “Award”
shall mean any grant of an Option, Restricted Stock Award, Restricted Stock
Unit Award, Stock Appreciation Right or Performance Award.

 

(d)           “Change
in Control” shall mean:

 

(i)            the occurrence of an acquisition by
an individual, entity or group (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as
amended) of a percentage of the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (but excluding (1) any acquisition directly from the Company (other
than an acquisition by virtue of the exercise of a conversion privilege of a
security that was not acquired directly from the Company), (2) any acquisition
by the Company or an Affiliate and (3) any acquisition by an employee benefit
plan (or related trust) sponsored or maintained by the Company or any
Affiliate) (an “Acquisition”) that is thirty percent (30%) or more of the
Company’s then outstanding voting securities;

 

(ii)           at any time during a period of two
(2) consecutive years or less, individuals who at the beginning of such period
constitute the Board (and any new directors whose election to the Board or
nomination for election by the Company’s shareholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was so approved) cease for any reason (except for death, disability or
voluntary retirement) to constitute a majority thereof;

 

(iii)          the consummation of a merger,
consolidation, reorganization or similar corporate transaction, whether or not
the Company is the surviving company in such transaction, other than a merger,
consolidation, or reorganization that would result in the Persons who are
beneficial owners of the Company’s voting securities outstanding immediately
prior thereto continuing to beneficially own, directly or indirectly, in
substantially the same proportions, at least fifty percent (50%) of the
combined voting power of the Company’s voting securities (or the voting
securities of the surviving entity) outstanding immediately after such merger,
consolidation or reorganization;

 

(iv)          the sale or other disposition of all
or substantially all of the assets of the Company;

 

(v)           the approval by the shareholders of
the Company of a complete liquidation or dissolution of the Company; or

 

(vi)          the occurrence of any transaction or
event, or series of transactions or events, designated by the Board in a duly
adopted resolution as representing a change in the effective control of the
business and affairs of the Company, effective as of the date specified in any
such resolution.

 

1

 

(e)           “Committee”
shall mean a Committee of two or more directors who shall be appointed by and
serve at the pleasure of the Board.  To
the extent necessary for compliance with Rule 16b-3, or any successor
provision, each of the members of the Committee shall be a “non-employee
director.”  Solely for purposes of this
Section 1(d), “non-employee director” shall have the same meaning as set forth
in Rule 16b-3, or any successor provision, as then in effect, of the General
Rules and Regulations under the Securities Exchange Act of 1934, as amended.

 

(f)            The
“Company” shall mean Christopher & Banks Corporation, a Delaware
corporation.

 

(g)           “Fair Market Value” as of any date shall mean (i) if such
stock is listed on the New York Stock Exchange, any other established stock
exchange, the Nasdaq National Market or Nasdaq SmallCap Market, the price of
such stock at the close of the regular trading session of such market or
exchange on such date, as reported by The Wall Street Journal or a
comparable reporting service, or, if no sale of such stock shall have occurred
on such date, on the next preceding date on which there was a sale of stock;
(ii) if such stock is not so listed on the New York Stock Exchange, any other
established stock exchange, the Nasdaq National Market or Nasdaq SmallCap
Market, the average of the closing “bid” and “asked” prices quoted by the OTC
Bulletin Board, the National Quotation Bureau, or any comparable reporting
service on such date or, if there are no quoted “bid” and “asked” prices on
such date, on the next preceding date for which there are such quotes; or (iii)
if such stock is not publicly traded as of such date, the per share value as
determined by the Board, or the Committee, in its sole discretion by applying
principles of valuation with respect to the Company’s Common Stock.

 

(h)           The “Internal Revenue Code” or “Code” is the Internal
Revenue Code of 1986, as amended from time to time.

 

(i)            “Option” means a nonqualified stock option granted
pursuant to the Plan.

 

(j)            “Parent” shall mean any corporation which owns, directly
or indirectly in an unbroken chain, fifty percent (50%) or more of the total
voting power of the Company’s outstanding stock.

 

(k)           The “Participant” means (i) a non-employee director of the
Company or any Affiliate to whom a nonqualified stock option has been granted
pursuant to Section 9; (ii) a non-employee director of the Company or any
Affiliate to whom a Restricted Stock Award or Restricted Stock Unit Award has
been granted pursuant to Section 10; (iii) a non-employee director of the
Company or any Affiliate to whom a Performance Award has been granted pursuant
to Section 11; or (iv) a non-employee director of the Company or any Affiliate
to whom a Stock Appreciation Right has been granted pursuant to Section 12.

 

(l)            “Performance Award” shall mean any Performance Shares or
Performance Units granted pursuant to Section 11 hereof.

 

(m)          “Performance
Objective(s)” shall mean one or more performance objectives established by the
Administrator, in its sole discretion, for Awards granted under this Plan.  Performance Objectives may include, but shall
not be limited to, any one, or a combination of, (i) revenue, (ii) net income,
(iii) earnings per share, (iv) return on equity, (v) return on assets, (vi)
increase in revenue, (vii) increase in share price or earnings, (viii) return
on investment, or (ix) increase in market share, in all cases including, if
selected by the Administrator, threshold, target and maximum levels.

 

(n)           “Performance Period” shall mean the period, established at
the time any Performance Award is granted or at any time thereafter, during
which any Performance Objectives specified by the Administrator with respect to
such Performance Award are to be measured.

 

(o)           “Performance Share” shall mean any grant pursuant to
Section 11 hereof of an Award, which value, if any, shall be paid to a
Participant by delivery of shares of Common Stock of the Company upon
achievement of such Performance Objectives during the Performance Period as the
Administrator shall establish at the time of such grant or thereafter.

 

2

 

(p)           “Performance Unit” shall mean any grant pursuant to
Section 11 hereof of an Award, which value, if any, shall be paid to a
Participant by delivery of cash upon achievement of such Performance Objectives
during the Performance Period as the Administrator shall establish at the time
of such grant or thereafter.

 

(q)           The “Plan” means the Second Amended and Restated
Christopher & Banks Corporation 2006 Equity Incentive Plan For Non-Employee
Directors, as amended hereafter from time to time, including the form of
Agreements as they may be modified by the Administrator from time to time.

 

(r)            “Restricted Stock Award” or “Restricted Stock Unit Award”
shall mean any grant of restricted shares of Stock of the Company or the grant
of any restricted stock units pursuant to Section 10 hereof.

 

(s)           “Stock,” “Option Stock” or “Common Stock” shall mean
Common Stock of the Company (subject to adjustment as described in Section 13)
reserved for Options and Awards pursuant to this Plan.

 

(t)            “Stock Appreciation Right” shall mean a grant pursuant to
Section 12 hereof.

 

(u)           A “Subsidiary” shall mean any corporation of which fifty
percent (50%) or more of the total voting power of the Company’s outstanding
Stock is owned, directly or indirectly in an unbroken chain, by the Company.

 

SECTION 2.

PURPOSE

 

The purpose of the Plan is to
promote the success of the Company and its Affiliates by facilitating the
engagement and retention of competent directors and by furnishing incentive to
directors upon whose efforts the success of the Company and its Affiliates will
depend to a large degree.

 

It is the intention of the
Company to carry out the Plan through the granting of “nonqualified stock
options” pursuant to Section 9 of this Plan; through the granting of Restricted
Stock Awards and Restricted Stock Unit Awards pursuant to Section 10 of this
Plan; through the granting of Performance Awards pursuant to Section 11 of this
Plan; and through the granting of Stock Appreciation Rights pursuant to Section
12 of this Plan.  Adoption of this Plan
shall be and is expressly subject to the condition of approval by the
shareholders of the Company within twelve (12) months before or after the
adoption of the Plan by the Board of Directors. 
Any Awards granted prior to the date this Plan is approved by the
shareholders of the Company shall be expressly subject to receipt of such
approval.

 

SECTION 3. 

EFFECTIVE DATE OF PLAN

 

The Plan shall be effective
following its adoption by the Board of Directors, and its approval by the
stockholders of the Company on the date of the 2010 Annual Meeting of
Stockholders, as required in Section 2.

 

SECTION 4. 

ADMINISTRATION

 

The Plan shall be
administered by the Board of Directors of the Company (hereinafter referred to
as the “Board”) or by a Committee which may be appointed by the Board from time
to time to administer the Plan (hereinafter collectively referred to as the “Administrator”).  Except as otherwise provided herein, the
Administrator shall have all of the powers vested in it under the provisions of
the Plan, including but not limited to exclusive authority to determine, in its
sole discretion, whether an Award shall be granted; the individuals to whom,
and the time or times at which, Awards shall be granted; the number of shares
subject to each Award; the option price; and the performance criteria, if any,
and any other terms and conditions of each Award.  The Administrator shall have full power and
authority to administer and interpret the Plan, to make and amend rules,
regulations and guidelines for administering the Plan, to prescribe the form
and conditions of the respective agreements evidencing each Award (which may
vary from Participant to Participant), and to make all other determinations
necessary or advisable for the administration of the Plan.  The Administrator’s interpretation of the
Plan, and all actions taken and determinations

 

3

 

made by the Administrator pursuant
to the power vested in it hereunder, shall be conclusive and binding on all
parties concerned.

 

No member of the Board or the
Committee shall be liable for any action taken or determination made in good
faith in connection with the administration of the Plan.  In the event the Board appoints a Committee
as provided hereunder, any action of the Committee with respect to the
administration of the Plan shall be taken pursuant to a majority vote of the
Committee members or pursuant to the written resolution of all Committee
members.

 

SECTION 5. 

PARTICIPANTS

 

The Administrator shall from
time to time, at its discretion and without approval of the shareholders,
designate those non-employee directors of the Company or of any Affiliate to
whom Awards shall be granted under this Plan. 
The Administrator may grant additional Awards, including incentive stock
options, under this Plan to some or all Participants then holding Awards, or
may grant Awards solely or partially to new Participants. In designating
Participants, the Administrator shall also determine the number of shares to be
optioned or awarded to each such Participant and the performance criteria
applicable to each Performance Award. The Administrator may from time to time
designate individuals as being ineligible to participate in the Plan.

 

SECTION 6. 

STOCK

 

The Stock to be issued under
this Plan shall consist of authorized but unissued shares of Common Stock.  One Million and One Hundred Twenty-Five
Thousand (1,125,000) shares of Common Stock shall be reserved and available for
Awards under the Plan; provided, however, that the total number of shares of
Common Stock reserved for Awards under this Plan shall be subject to adjustment
as provided in Section 13 of the Plan. 
The following shares of Stock, multiplied by the ratio set forth in the
next paragraph of this Section 6, to the extent applicable, shall continue to
be reserved and available for Awards granted pursuant to the Plan: (i) any
outstanding Award that expires for any reason or otherwise terminates without
an issuance of shares of Stock being made thereunder, (ii) any portion of an
outstanding Option or Stock Appreciation Right that is terminated or cancelled
prior to exercise, (iii) any portion of an Award that is terminated or
cancelled prior to the lapsing of the risks of forfeiture on such Award or
forfeited and returned to the Company for failure to satisfy vesting
requirements or other conditions of the Award, and (iv) shares of Stock
covered by an Award to the extent the Award is settled in cash.

 

For purposes of this Section
6, if an Award entitles the holder thereof to receive or purchase shares of
Stock, the number of shares of Stock covered by such Award or to which such
Award relates shall be counted, in accordance with this Section 6, on the date
of grant of such Award against the aggregate number of shares of Stock
available for Awards under the Plan. 
With respect to (i) Stock Options, (i) Stock Appreciation Rights and
(iii) any Awards other than Stock Options and Stock Appreciation Rights that
were granted prior to the effective date of the Plan specified in Section 3,
the number of shares of Stock available for Awards under the Plan shall be
reduced by one share of Stock for each share of Stock covered by such Award or
to which such Award relates.  With
respect to any Awards other than Options and Stock Appreciation Rights that are
granted after the effective date of the Plan specified in Section 3, the number
of shares of Stock available for Awards under the Plan shall be reduced by 1.75
shares of Stock for each share of Stock covered by such Award or to which such
Award relates.  For Stock Appreciation
Rights settled in shares of Stock upon exercise, the aggregate number of shares
of Stock with respect to which the Stock Appreciation Right is exercised,
rather than the number of shares of Stock actually issued upon exercise, shall
be counted against the number of shares of Stock available for Awards under the
Plan.

 

SECTION 7. 

DURATION OF PLAN

 

Awards may be granted
pursuant to the Plan from time to time until May 25, 2016, which is the tenth
anniversary of the Plan’s initial adoption by the Board of Directors.

 

4

 

SECTION 8. 

PAYMENT

 

Participants may pay for
shares upon exercise of Options or Stock Appreciation Rights granted pursuant
to this Plan with cash, personal check, certified check or, if approved by the
Administrator in its sole discretion, previously-owned shares of the Company’s
Common Stock, or any combination thereof. 
Any stock so tendered as part of such payment shall be valued at such
stock’s then Fair Market Value, or such other form of payment as may be
authorized by the Administrator.  The
Administrator may, in its sole discretion, limit the forms of payment available
to the Participant and may exercise such discretion any time prior to the
termination of the Option or Stock Appreciation Right granted to the
Participant or upon any exercise of the Option or Stock Appreciation Right by
the Participant.  “Previously-owned
shares” means shares of the Company’s Common Stock which the Participant has
owned for at least six (6) months prior to the exercise of the Option, or for
such other period of time as may be required by generally accepted accounting
principles.

 

With respect to payment in
the form of Common Stock of the Company, the Administrator may require advance
approval or adopt such rules as it deems necessary to assure compliance with
Rule 16b-3, or any successor provision, as then in effect, of the General Rules
and Regulations under the Securities Exchange Act of 1934, if applicable.

 

SECTION 9. 

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTIONS

 

Each nonqualified stock
option granted pursuant to this Section 9 shall be evidenced by a written
nonqualified stock option agreement (the “Option Agreement”).  The Option Agreement shall be in such form as
may be approved from time to time by the Administrator and may vary from
Participant to Participant; provided, however, that each Participant and each
Option Agreement shall comply with and be subject to the following terms and
conditions:

 

(a)           Number of Shares and Option Price.  The Option Agreement shall state the total
number of shares covered by the nonqualified stock option.  The option price per share shall be one
hundred percent (100%) of the per share Fair Market Value of the Common Stock
on the date the Administrator grants the Option.

 

(b)           Term
and Exercisability of Nonqualified Stock Option.  The term during which any nonqualified stock
option granted under the Plan may be exercised shall be established in each
case by the Administrator but shall not be longer than ten years.  The Option Agreement shall state when the
nonqualified stock option becomes exercisable and shall also state the maximum
term during which the Option may be exercised. 
If the Stock Option is not exercisable immediately, the Administrator
may accelerate the exercisability of any Stock Option granted hereunder in the
event of the death or disability of the Participant or provide for such
acceleration in the Option Agreement.

 

(c)           Transferability.  The Administrator may, in its sole
discretion, permit the Participant to transfer any or all nonqualified stock
options to any member of the Participant’s “immediate family” as such term is
defined in Rule 16a-1(e) promulgated under the Securities Exchange Act of 1934,
or any successor provision, or to one or more trusts whose beneficiaries are
members of such Participant’s “immediate family” or partnerships in which such
family members are the only partners; provided, however, that the Participant
cannot receive any consideration for the transfer and such transferred
nonqualified stock option shall continue to be subject to the same terms and
conditions as were applicable to such nonqualified stock option immediately
prior to its transfer.

 

(d)           No
Rights as Shareholder.  A Participant
(or the Participant’s successor or successors) shall have no rights as a
shareholder with respect to any shares covered by a nonqualified stock option
until the date of the issuance of a stock certificate evidencing such
shares.  No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is actually issued (except as otherwise
provided in Section 13 of the Plan).

 

(e)           Repricing Prohibited.  Subject to the anti-dilution adjustment
provisions contained in Section 13 hereof, without the prior approval of the
Company’s shareholders, evidenced by a majority of votes cast, the
Administrator shall not cause the cancellation, substitution or amendment of a
Stock Option that would have the effect of reducing the exercise price of such
a Stock Option previously granted under the Plan, or otherwise approve any
modification to such a Stock Option that would be treated as a “repricing”
under the then applicable rules, regulations or listing requirements adopted by
the New York Stock Exchange.

 

5

 

(f)            Other Provisions. 
The Option Agreement authorized under this Section 9 shall contain such
other provisions as the Administrator shall deem advisable.

 

SECTION 10. 

RESTRICTED STOCK AND RESTRICTED STOCK UNIT AWARDS

 

Each Restricted Stock Award
or Restricted Stock Unit Award granted pursuant to the Plan shall be evidenced
by a written restricted stock or restricted stock unit agreement (the “Restricted
Stock Agreement” or “Restricted Stock Unit Agreement,” as the case may
be).  The Restricted Stock Agreement or
Restricted Stock Unit Agreement shall be in such form as may be approved from
time to time by the Administrator and may vary from Participant to Participant;
provided, however, that each Participant and each Restricted Stock Agreement or
Restricted Stock Unit Agreement shall comply with and be subject to the
following terms and conditions:

 

(a)           Number of Shares. 
The Restricted Stock Agreement or Restricted Stock Unit Agreement shall
state the total number of shares of Stock covered by the Restricted Stock Award
or Restricted Stock Unit Award.

 

(b)           Risks of Forfeiture.  The Restricted Stock Agreement or Restricted
Stock Unit Agreement shall set forth the risks of forfeiture, if any, including
risks of forfeiture based on Performance Objectives, which shall apply to the
shares of Stock covered by the Restricted Stock Award or Restricted Stock Unit
Award, and shall specify the manner in which such risks of forfeiture shall
lapse.  The Administrator may, in its
sole discretion, modify the manner in which such risks of forfeiture shall
lapse but only with respect to those shares of Stock which are restricted as of
the effective date of the modification. 
The Administrator may accelerate the lapse of the risks of forfeiture in
the event of the death or disability of the Participant or provide for such
acceleration in the Restricted Stock Agreement or the Restricted Stock Unit
Agreement.

 

(c)                                  Issuance of Shares; Rights as Shareholder.

 

(i)            With respect to a Restricted Stock Award, the Company
shall cause to be issued a stock certificate representing such shares of Stock
in the Participant’s name, and shall hold such certificate as custodian for the
Participant until the risks of forfeiture applicable to the certificate have
lapsed, at which time the Company shall deliver the certificate to the
Participant.  The Company shall place a
legend on such certificate describing the risks of forfeiture and other
transfer restrictions set forth in the Participant’s Restricted Stock Agreement
and providing for the cancellation of such certificate if the shares of Stock
subject to the Restricted Stock Award are forfeited.  Until the risks of forfeiture have lapsed or
the shares subject to such Restricted Stock Award have been forfeited, the
Participant shall be entitled to vote the shares of Stock represented by such
stock certificates and shall receive all dividends attributable to such shares,
but the Participant shall not have any other rights as a shareholder with
respect to such shares.

 

(ii)           With respect to a Restricted Stock Unit Award, as the
risks of forfeiture on the restricted stock units lapse, the Participant shall
be entitled to payment of the restricted stock units.  The Administrator may, in its sole
discretion, pay restricted stock units in cash, shares of Stock or any combination
thereof.  If payment is made in shares of
Stock, the Administrator shall cause to be issued one or more stock
certificates in the Participant’s name and shall deliver such certificates to
the Participant in satisfaction of such restricted stock units.  Until the risks of forfeiture on the
restricted stock units have lapsed, the Participant shall not be entitled to
vote any shares of stock which may be acquired through the restricted stock
units, shall not receive any dividends attributable to such shares, and shall
not have any other rights as a shareholder with respect to such shares.

 

(d)           Nontransferability. 
No Restricted Stock Award or Restricted Stock Unit Award shall be
transferable, in whole or in part, by the Participant, other than by will or by
the laws of descent and distribution, prior to the date the risks of forfeiture
described in the Restricted Stock Agreement or Restricted Stock Unit Agreement
have lapsed.  If the Participant shall
attempt any transfer of any Restricted Stock Award or Restricted Stock Unit
Award granted under the Plan prior to such date, such transfer shall be void
and the Restricted Stock Award or Restricted Stock Unit Award shall terminate.

 

(e)           Other
Provisions.  The Restricted Stock
Agreement or Restricted Stock Unit Agreement authorized under this Section 10
shall contain such other provisions as the Administrator shall deem advisable.

 

6

 

SECTION 11. 

PERFORMANCE AWARDS

 

Each Performance Award granted
pursuant to this Section 11 shall be evidenced by a written performance award
agreement (the “Performance Award Agreement”). 
The Performance Award Agreement shall be in such form as may be approved
from time to time by the Administrator and may vary from Participant to Participant;
provided, however, that each Participant and each Performance Award Agreement
shall comply with and be subject to the following terms and conditions:

 

(a)           Awards.  Performance Awards in the form of Performance
Units or Performance Shares may be granted to any Participant in the Plan.
Performance Units shall consist of monetary awards which may be earned or
become vested in whole or in part if the Company or the Participant achieves
certain Performance Objectives established by the Administrator over a
specified Performance Period. 
Performance Shares shall consist of shares of Stock or other Awards
denominated in shares of Stock that may be earned or become vested in whole or
in part if the Company or the Participant achieves certain Performance Objectives
established by the Administrator over a specified Performance Period.  The Administrator may accelerate the earning
or vesting of the shares or monetary award subject to a Performance Award in
the event of the death or disability of the Participant or provide for such
acceleration in the Performance Award Agreement.

 

(b)           Performance
Objectives, Performance Period and Payment. 
The Performance Award Agreement shall set forth:

 

(i)            the
number of Performance Units or Performance Shares subject to the Performance
Award, and the dollar value of each Performance Unit;

 

(ii)           one
or more Performance Objectives established by the Administrator;

 

(iii)          the Performance Period over which Performance Units or
Performance Shares may be earned or may become vested;

 

(iv)          the
extent to which partial achievement of the Performance Objectives may result in
a payment or vesting of the Performance Award, as determined by the
Administrator; and

 

(v)           the
date upon which payment of Performance Units will be made or Performance Shares
will be issued, as the case may be, and the extent to which such payment or the
receipt of such Performance Shares may be deferred.

 

(c)           Nontransferability.  No Performance Award shall be transferable,
in whole or in part, by the Participant, other than by will or by the laws of
descent and distribution.  If the
Participant shall attempt any transfer of any Performance Award granted under
the Plan, such transfer shall be void and the Performance Award shall
terminate.

 

(d)           No
Rights as Shareholder.  A Participant
(or the Participant’s successor or successors) shall have no rights as a
shareholder with respect to any shares covered by a Performance Award until the
date of the issuance of a stock certificate evidencing such shares.  No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property),
distributions or other rights for which the record date is prior to the date
such stock certificate is actually issued (except as otherwise provided in Section
13 of the Plan).

 

(e)           Other
Provisions.  The Performance Award
Agreement authorized under this Section 11 shall contain such other provisions
as the Administrator shall deem advisable.

 

SECTION 12.  

STOCK
APPRECIATION RIGHTS

 

Each Stock Appreciation Right
granted pursuant to this Section 12 shall be evidenced by a written stock
appreciation right agreement (the “Stock Appreciation Right Agreement”).  The Stock Appreciation Right Agreement shall
be in such form as may be approved from time to time by the Administrator and
may vary from

 

7

 

Participant to Participant;
provided, however, that each Participant and each Stock Appreciation Right
Agreement shall comply with and be subject to the following terms and
conditions:

 

(a)           Awards.  A Stock Appreciation Right shall entitle the
Participant to receive, upon exercise, cash, shares of Stock, or any
combination thereof, having a value equal to the excess of (i) the Fair Market
Value of a specified number of shares of Stock on the date of such exercise,
over (ii) a specified exercise price. 
The specified exercise price shall not be less than 100% of the Fair
Market Value of such shares of Stock on the date of grant of the Stock
Appreciation Right.  A Stock Appreciation
Right may be granted independent of or in tandem with a previously or
contemporaneously granted Option.

 

(b)           Term
and Exercisability.  The term during
which any Stock Appreciation Right granted under the Plan may be exercised
shall be established in each case by the Administrator but shall not be longer
than ten years.  The Stock Appreciation
Right Agreement shall state when the Stock Appreciation Right becomes
exercisable and shall also state the maximum term during which such Stock
Appreciation Right may be exercised.  The
manner of exercise of such Stock Appreciation Right shall be specified in the
Stock Appreciation Right Agreement.  If a
Stock Appreciation Right is granted in tandem with an Option, the Stock
Appreciation Right Agreement shall set forth the extent to which the exercise
of all or a portion of the Stock Appreciation Right shall cancel a
corresponding portion of the Option, and the extent to which the exercise of
all or a portion of the Option shall cancel a corresponding portion of the
Stock Appreciation Right.  The
Administrator may accelerate the exercisability of any Stock Appreciation Right
granted hereunder in the event of the death or disability of the Participant or
provide for such acceleration in the Stock Appreciation Right Agreement.

 

(c)           Nontransferability.  No Stock Appreciation Right shall be
transferable, in whole or in part, by the Participant, other than by will or by
the laws of descent and distribution.  If
the Participant shall attempt any transfer of any Stock Appreciation Right
granted under the Plan, such transfer shall be void and the Stock Appreciation
Right shall terminate.

 

(d)           No
Rights as Shareholder.  A Participant
(or the Participant’s successor or successors) shall have no rights as a
shareholder with respect to any shares covered by a Stock Appreciation Right
until the date of the issuance of a stock certificate evidencing such
shares.  No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is actually issued (except as otherwise
provided in Section 13 of the Plan).

 

(e)           Repricing Prohibited.  Subject to the anti-dilution adjustment
provisions contained in Section 13 hereof, without the prior approval of the
Company’s shareholders, evidenced by a majority of votes cast, the
Administrator shall not cause the cancellation, substitution or amendment of a
Stock Appreciation Right that would have the effect of reducing the exercise
price of such a Stock Appreciation Right previously granted under the Plan, or
otherwise approve any modification to such a Stock Appreciation Right that
would be treated as a “repricing” under the then applicable rules, regulations
or listing requirements adopted by the New York Stock Exchange.

 

(f)            Other
Provisions.  The Stock Appreciation
Right Agreement authorized under this Section 12 shall contain such other
provisions as the Administrator shall deem advisable, including but not limited
to any restrictions on the exercise of the Stock Appreciation Right which may
be necessary to comply with Rule 16b-3 of the Securities Exchange Act of 1934,
as amended.

 

SECTION 13. 

RECAPITALIZATION, SALE, MERGER, EXCHANGE

OR LIQUIDATION

 

In the event of an increase
or decrease in the number of shares of Common Stock resulting from a stock
dividend, stock split, reverse split, combination or reclassification of the
Common Stock, or any other increase or decrease in the number of issued shares
of Common Stock effected without receipt of consideration by the Company, the
number of shares of Stock reserved under Section 6 hereof, the number of shares
of Stock covered by each outstanding Award and Option and the price per share
thereof shall be appropriately adjusted to reflect such change.  Additional shares which may become covered by
the Award or Option pursuant to such adjustment shall be subject to the same
restrictions as are applicable to the shares with respect to which the
adjustment relates.

 

8

 

Unless otherwise provided in the
agreement evidencing an Award, in the event of a Change of Control, the Board
may provide for one or more of the following:

 

(a)           the
equitable acceleration of the exercisability of any outstanding Options or
Stock Appreciation Rights, the vesting and payment of any Performance Awards,
or the lapsing of the risks of forfeiture on any Restricted Stock Awards or
Restricted Stock Unit Awards;

 

(b)           the
complete termination of this Plan, the cancellation of outstanding Options or
Stock Appreciation Rights not exercised prior to a date specified by the Board
(which date shall give Participants a reasonable period of time in which to
exercise such Option or Stock Appreciation Right prior to the effectiveness of
such transaction), the cancellation of any Performance Award and the
cancellation of any Restricted Stock Awards or Restricted Stock Unit Awards for
which the risks of forfeiture have not lapsed;

 

(c)           that
Participants holding outstanding Options and Stock Appreciation Rights receive,
with respect to each share of Stock subject to such Option or Stock
Appreciation Right, as of the effective date of any such transaction, shares of
Common Stock of the Company or shares of stock of any corporation succeeding
the Company by reason of such transaction with a value equal to the excess of
the Fair Market Value of the Stock subject to such Option or Stock Appreciation
Right on the date immediately preceding the effective date of such transaction
over the price per share of such Options or Stock Appreciation Rights;

 

(d)           that
Participants holding outstanding Restricted Stock Awards, Restricted Stock Unit
Awards and Performance Share Awards receive, with respect to each share of
Stock subject to such Awards, as of the effective date of any such transaction,
shares of Common Stock of the Company or shares of stock of any corporation
succeeding the Company by reason of such transaction with a value equal to the
Fair Market Value of the Stock subject to such Awards on the date immediately
preceding the effective date of such transaction;

 

(e)           the
continuance of the Plan with respect to the exercise of Options or Stock
Appreciation Rights which were outstanding as of the date of adoption by the
Board of such plan for such transaction and the right to exercise such Options
and Stock Appreciation Rights as to an equivalent number of shares of stock of
the corporation succeeding the Company by reason of such transaction;

 

(f)            the
continuance of the Plan with respect to Restricted Stock Awards or Restricted
Stock Unit Awards for which the risks of forfeiture have not lapsed as of the
date of adoption by the Board of such plan for such transaction and the right
to receive an equivalent number of shares of stock of the corporation
succeeding the Company by reason of such transaction; and

 

(g)           the
continuance of the Plan with respect to Performance Awards and, to the extent
applicable, the right to receive an equivalent number of shares of stock of the
corporation succeeding the Company by reason for such transaction.

 

The Board may condition any
acceleration of exercisability or other right to which Participant is not
entitled upon any additional agreements from Participant, including, without limitation,
a Participant agreeing to additional restrictive covenants (e.g.,
confidentiality, noncompetition, non-solicitation, non-circumvention, etc.) and
Participant agreeing to continue to perform services for the Company, a
successor or purchaser of all or any portion of the Company’s business or
related assets for substantially the same base salary for a period of up to six
months.

 

The Board may restrict the rights of
or the applicability of this Section 13 to the extent necessary to comply with
Section 16(b) of the Securities Exchange Act of 1934, the Internal Revenue Code
or any other applicable law or regulation. 
The grant of an Award pursuant to the Plan shall not limit in any way
the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge,
exchange or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets.

 

SECTION 14. 

INVESTMENT PURPOSE

 

No shares of Stock shall be
issued pursuant to the Plan unless and until there has been compliance, in the
opinion of Company’s counsel, with all applicable legal requirements, including
without limitation, those relating to

 

9

 

securities laws and stock exchange
listing requirements.  As a condition to
the issuance of Stock to Participant, the Administrator may require Participant
to (a) represent that the shares of Stock are being acquired for investment and
not resale and to make such other representations as the Administrator shall
deem necessary or appropriate to qualify the issuance of the shares as exempt
from the Securities Act of 1933 and any other applicable securities laws, and
(b) represent that Participant shall not dispose of the shares of Stock in
violation of the Securities Act of 1933 or any other applicable securities
laws.

 

As a further condition to the grant
of any Option or the issuance of Stock to Participant, Participant agrees to
the following:

 

(a)           In
the event the Company advises Participant that it plans an underwritten public
offering of its Common Stock in compliance with the Securities Act of 1933, as
amended, and the underwriter(s) seek to impose restrictions under which certain
shareholders may not sell or contract to sell or grant any option to buy or
otherwise dispose of part or all of their stock purchase rights of the Common
Stock underlying Awards, Participant will not, for a period not to exceed 180
days from the prospectus, sell or contract to sell or grant an option to buy or
otherwise dispose of any Option granted to Participant pursuant to the Plan or
any of the underlying shares of Common Stock without the prior written consent
of the underwriter(s) or its representative(s).

 

(b)           In
the event the Company makes any public offering of its securities and
determines in its sole discretion that it is necessary to reduce the number of
issued but unexercised stock purchase rights so as to comply with any state’s
securities or Blue Sky law limitations with respect thereto, the Board of
Directors of the Company shall have the right (i) to accelerate the
exercisability of any Option or Stock Appreciation Right and the date on which
such Option or Stock Appreciation Right must be exercised, provided that the Company
gives Participant prior written notice of such acceleration, and (ii) to cancel
any Options, Stock Appreciation Rights or portions thereof which Participant
does not exercise prior to or contemporaneously with such public offering.

 

(c)           In
the event of a transaction (as defined in Section 13 of the Plan), Participant
will comply with Rule 145 of the Securities Act of 1933 and any other
restrictions imposed under other applicable legal or accounting principles if
Participant is an “affiliate” (as defined in such applicable legal and
accounting principles) at the time of the transaction, and Participant will
execute any documents necessary to ensure compliance with such rules.

 

The Company reserves the right to
place a legend on any stock certificate issued in connection with an Award
pursuant to the Plan to assure compliance with this Section 14.

 

SECTION 15. 

AMENDMENT OF THE PLAN

 

The Board may from time to
time, insofar as permitted by law, suspend or discontinue the Plan or revise or
amend it in any respect; provided, however, that no such revision or amendment,
except as is authorized in Section 13, shall impair the terms and conditions of
any Award which is outstanding on the date of such revision or amendment to the
material detriment of the Participant without the consent of the
Participant.  Notwithstanding the
foregoing, no such revision or amendment shall (i) increase the number of
shares subject to the Plan except as provided in Section 13 hereof, (ii) change
the designation of the class of Participants eligible to receive Awards, (iii)
decrease the price at which Options may be granted, or (iv) materially increase
the benefits accruing to Participants under the Plan without the approval of
the shareholders of the Company if such approval is required for compliance
with the requirements of any applicable law or regulation.  Furthermore, the Plan may not, without the
approval of the shareholders, be amended in any manner that will cause
incentive stock options to fail to meet the requirements of Section 422 of the
Internal Revenue Code.

 

SECTION 16. 

NO OBLIGATION TO EXERCISE OPTION

 

The granting of an Option or Stock
Appreciation Right shall impose no obligation upon the Participant to exercise
such Option or Stock Appreciation Right. 
Further, the granting of an Award hereunder shall not impose upon the
Company or any Affiliate any obligation to retain the Participant in its employ
for any period.

 

10

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