Document:

Exhibit

10.44

 

MANUFACTURERS’ SERVICES

LIMITED

 

2000

EMPLOYEE STOCK PURCHASE PLAN, AS AMENDED

 

SECTION 1. 

PURPOSE OF PLAN

 

The Manufacturers’ Services

Limited 2000 Employee Stock Purchase Plan (the “Plan”) is intended to provide a

method by which eligible employees of Manufacturers’ Services Limited, a

Delaware corporation (“MSL”), and such of its Subsidiaries as the Board of

Directors of MSL (the “Board of Directors”) may from time to time designate

(MSL and such Subsidiaries being hereinafter referred to as the “Company”) may

use voluntary, systematic payroll deductions to purchase shares of common

stock, $.001 par value of MSL (such common stock being hereafter referred to as

“Stock”) and thereby acquire an interest in the future of MSL.  For purposes of the Plan, a “Subsidiary” is

any corporation that would be treated as a subsidiary of MSL under Section

424(f) of the Internal Revenue Code of 1986, as amended (the “Code”).  The Plan is intended to qualify under Section

423 of the Code and shall be construed accordingly.

 

SECTION 2. 

OPTIONS TO PURCHASE STOCK

 

Under the Plan, there is

available an aggregate of not more than 1,250,000 shares of Stock (subject to

adjustment as provided in Section 15) for sale pursuant to the exercise of

options (“Options”) granted under the Plan to employees of the Company

(“Employees”) who meet the eligibility requirements set forth in Section 3

hereof (“Eligible Employees”).  The

Stock to be delivered upon exercise of Options under the Plan may be either

shares of authorized but unissued Stock or shares of reacquired Stock, as the

Board of Directors may determine.

 

SECTION 3. 

ELIGIBLE EMPLOYEES

 

Except as otherwise provided

below, each Employee of the Company will be eligible to participate in the

Plan.

 

(a)  Any Employee who immediately after the grant of an Option would

own (or pursuant to Section 423(b)(3) of the Code would be deemed to own) stock

possessing 5% or more of the total combined voting power or value of all

classes of stock of the employer corporation or of its parent or subsidiary

corporations, as defined in Section 424 of the Code, will not be eligible to

receive an Option to purchase Stock pursuant to the Plan.

 

(b)  No Employee will be granted an Option under the Plan that would

permit his or her rights to purchase shares of stock under all employee stock

purchase plans of the employer corporation and parent and subsidiary

corporations, as defined in Section 424 of the Code, to accrue at a rate which

exceeds $25,000 in fair market value of such stock (determined at the time the

Option is granted) for each calendar year during which any such Option granted

to such Employee is outstanding at any time, as provided in Section 423 of the

Code.

 

 

(c) The following categories of

Employees shall not be eligible to participate in the Plan:  (i) Employees whose customary employment for

the Company is twenty (20) hours or less per week, (ii) Employees whose

customary employment for the Company is for not more than five (5) months in

any calendar year.

 

SECTION 4. 

METHOD OF PARTICIPATION

 

The periods commencing on the

Company’s payroll cycle ending on or about August 1 and  February 1 or such other dates as the Board

of Directors (or the Board’s delegate) shall determine will be termed “Option

Periods.”  Provided that on a one time

basis, the Option Period in the third quarter of 2001 will commence on the

Company’s payroll cycle ending on or about September 1 and end on or about

January 31, 2002. Each person who is an Eligible Employee on the date that is

15 days prior to an Option Period and will be an Eligible Employee on the first

day of such Option Period may elect to participate in the Plan by executing and

delivering, at least 15 days prior to the first day of such Option Period, a

payroll deduction authorization in accordance with Section 5.  Such Employee will thereby become a

participant (“Participant”) on the first day of such Option Period and will

remain a Participant until his or her participation is terminated as provided

in the Plan.

 

SECTION 5. 

PAYROLL DEDUCTION

 

The payroll deduction

authorization will request withholding at a rate (in whole percentages) of not

less than 1% nor more than 10% from the Participant’s Compensation by means of

substantially equal payroll deductions over the Option Period from payroll

periods ending in the Option Period. 

For purposes of the Plan, “Compensation” means base pay, overtime,

bonuses and other remuneration paid by the Company and includible in a

Participant’s taxable income, plus any such amounts that would be includible in

the Participant’s taxable income but for a deferral election under Section

401(k) of the Code, but not including income arising from the grant or vesting

of a stock option or other stock award or from the disposition of stock

acquired under such an award.  A

Participant may change the withholding rate of his or her payroll deduction

authorization by written notice delivered to the Company at least 15 days prior

to the first day of the Option Period as to which the change is to be

effective.  All amounts withheld in

accordance with a Participant’s payroll deduction authorization will be

credited to a withholding account maintained in the Participant’s name on the

books of the Company.  Amounts credited

to the withholding account shall belong to the Company and shall not be

required to be set aside in trust or otherwise segregated from the Company’s

general assets.

 

SECTION 6. 

GRANT OF OPTIONS

 

Each person who is a Participant

on the first day of an Option Period will be granted, as of such day and for

such Period, an Option entitling the Participant to acquire shares of Stock

equal in number to the lesser of:

 

(a)  the whole number (disregarding any

fractional share amount) determined by dividing $12,500 by the fair market

value of one share of Stock on the first day of the Option Period; and

 

2

 

(b)  the number (rounded down to the nearest

whole number) determined by dividing (i) the balance credited to the

Participant’s withholding account on the last day of the Option Period, by (ii)

the purchase price per share of the Stock determined under Section 7.

 

MSL will reduce, on a substantially proportionate

basis, the number of shares of Stock purchasable by each Participant upon

exercise of his or her Option for an Option Period in the event that the number

of shares then available under the Plan is insufficient.  Option grants under this Section 6 shall be

automatic and need not be separately documented.

 

SECTION 7. 

PURCHASE PRICE

 

The purchase price of Stock

issued pursuant to the exercise of an Option will be 85% of the fair market

value of the Stock at (a) the time of grant of the Option or (b) the time at

which the Option is deemed exercised, whichever is less.  Fair market value will mean the Closing

Price of the Stock.  The “Closing Price”

of the Stock on any business day will be the last sale price, regular way, with

respect to such Stock, or, in case no such sale takes place on such day, the

average of the closing bid and asked prices, regular way, with respect to such

Stock, in either case as reported in the principal consolidated transaction

reporting system with respect to securities listed or admitted to trading on

the New York Stock Exchange; or, if such Stock is not listed or admitted to trading

on the New York Stock Exchange, as reported in the principal consolidated

transaction reporting system with respect to securities listed on the principal

national securities exchange on which such Stock is listed or admitted to

trading; or, if such Stock is not listed or admitted to trading, the last

quoted price with respect to such Stock, or, if not so quoted, the average of

the high bid and low asked prices in the over-the-counter market with respect

to such Stock, as reported by the National Association of Securities Dealers,

Inc. Automated Quotation System or such other similar system then in use; or,

if on any such date such Stock is not quoted by any such organization, the

average of the closing bid and asked prices with respect to such Stock, as furnished

by a professional market maker making a market in such Stock selected by the

Board of Directors in good faith; or, if no such market maker is available, the

fair market value of such Stock as of such day as determined in good faith by

the Board of Directors.

 

SECTION 8. 

EXERCISE OF OPTIONS

 

If any Employee is a Participant

in the Plan on the last business day of an Option Period, he or she will be

deemed to have exercised the Option granted to him or her for that Period.  Upon such exercise, the Company will apply

the balance of the Participant’s withholding account to the purchase of the

number of whole shares of Stock determined under Section 6 and as soon as

practicable thereafter will issue and deliver certificates for said shares to

the Participant or otherwise evidence the transfer of ownership of said shares

and will return to him or her the balance, if any, of his or her withholding

account in excess of the total purchase price of the shares so issued; provided,

that if the balance left in the account consists solely of an amount equal to

the value of a fractional share it will be retained in the Account and carried

over to the next Period.  No fractional

shares will be issued hereunder.

 

3

 

Notwithstanding anything herein

to the contrary, MSL’s obligation to issue and deliver shares of Stock under

the Plan will be subject to the approval required of any governmental authority

in connection with the authorization, issuance, sale or transfer of said

shares, to any requirements of any national securities exchange applicable

thereto, and to compliance by MSL with other applicable legal requirements in

effect from time to time.

 

SECTION 9. 

INTEREST

 

No interest will be payable on

withholding accounts.

 

SECTION 10. 

CANCELLATION AND WITHDRAWAL

 

A Participant who holds an

Option under the Plan may at any time prior to exercise thereof under Section 8

cancel all (but not less than all) of his or her Options by written notice

delivered to the Company.  Upon such

cancellation, the balance in the Participant’s withholding account will be

returned to the Participant.

 

A Participant may terminate his

or her payroll deduction authorization as of any date by written notice

delivered to the Company and will thereby cease to be a Participant as of such

date.  Any Participant who voluntarily

terminates his or her payroll deduction authorization prior to the last

business day of an Option Period will be deemed to have canceled his or her

Option.

 

SECTION 11. 

TERMINATION OF EMPLOYMENT

 

Except as otherwise provided in

Section 12, upon the termination of a Participant’s employment with the Company

for any reason, he or she will cease to be a Participant, any Option held by

him or her under the Plan will be deemed canceled, the balance of his or her

withholding account will be returned, and he or she will have no further rights

under the Plan.

 

SECTION 12. 

DEATH OF PARTICIPANT

 

A Participant may elect that if

death should occur during an Option Period the balance, if any, of the

Participant’s withholding account at the time of death will be applied at the

end of the Period to the exercise of the Participant’s Option and the shares

thereby purchased under the Option (plus any balance remaining in the

Participant’s withholding account) will be delivered to the Participant’s

designated beneficiary or beneficiaries. 

If the Participant has more than one designated beneficiary, the Company

will determine the allocation among them and its determination will be final

and binding on all persons.  For

purposes of the Plan, a Participant’s designated beneficiary(ies) shall be (i)

such person or persons as are treated as the Participant’s beneficiary(ies) for

purposes of the Company group life insurance plan applicable to the Participant,

or (ii) in the absence of any beneficiary determined under clause (i), the

Participant’s estate.

 

4

 

SECTION 13. 

EQUAL RIGHTS; PARTICIPANT’S RIGHTS NOT TRANSFERABLE

 

All Participants granted Options

under the Plan with respect to any Option Period will have the same rights and

privileges.  Each Participant’s rights

and privileges under any Option granted under the Plan will be exercisable

during the Participant’s lifetime only by him or her and except as provided at

Section 12 above may not be sold, pledged, assigned, or transferred in any

manner.  In the event any Participant

violates or attempts to violate the terms of this Section, any Options held by

him or her may be terminated by the Company and, upon return to the Participant

of the balance of his or her withholding account, all of the Participant’s

rights under the Plan will terminate.

 

SECTION 14. 

EMPLOYMENT RIGHTS

 

Nothing contained in the

provisions of the Plan will be construed as giving to any Employee the right to

be retained in the employ of the Company or as interfering with the right of

the Company to discharge any Employee at any time.

 

SECTION 15. 

CHANGE IN CAPITALIZATION

 

In the event of any change in

the outstanding Stock of MSL after January 1, 2000 by reason of a stock

dividend, split-up, recapitalization, merger, consolidation, reorganization, or

other capital change, the aggregate number and type of shares available under

the Plan, the number and type of shares under Options granted but not

exercised, the maximum number and type of shares purchasable under an Option,

and the Option price will be appropriately adjusted.

 

SECTION 16. 

ADMINISTRATION OF PLAN

 

The Plan will be administered by

the Board of Directors or delegates of the Board which may include the

Compensation Committee, which will have the right to determine any questions

which may arise regarding the interpretation and application of the provisions

of the Plan and to make, administer, and interpret such rules and regulations

as it will deem necessary or advisable. 

Reference to the Board of Directors in connection with its

administrative function under the Plan shall include its delegates.

 

SECTION 17. 

AMENDMENT AND TERMINATION OF PLAN

 

MSL reserves the right at any time

or times to amend the Plan to any extent and in any manner it may deem

advisable, by vote of the Board of Directors or delegates of the Board which

may include the Compensation Committee; provided, that any amendment that would be

treated as the adoption of a new plan for purposes of Section 423 of the Code

and the regulations thereunder will have no force or effect unless approved by

the shareholders of MSL within twelve months before or after its adoption.

 

The Plan may be suspended or

terminated at any time by the Board of Directors.  In connection therewith, the Board of Directors may either cancel

outstanding Options or continue them and provide that they will be exercisable

either at the end of the applicable Option Period 

 

5

 

as determined under Section 4 above or on such

earlier date as the Board of Directors may specify (in which case such earlier

date shall be treated as the last day of the applicable Option Period).

 

SECTION 18. 

APPROVAL OF SHAREHOLDERS

 

The

Plan and the exercisability of Options granted hereunder will be subject to the

approval of the shareholders of MSL obtained within twelve months before or

after the date the Plan is adopted by the Board of Directors.

 

6Exhibit 10.45

 

MANUFACTURERS’ SERVICES LIMITED

2000 NON-EMPLOYEE DIRECTOR STOCK OPTION

PLAN, AS AMENDED

 

1.             NAME

AND PURPOSE.  This plan as amended shall

be called the Manufacturers’ Services Limited 2000 Non-Employee Director Stock

Option Plan, As Amended (the “Plan”). 

The Plan is intended to encourage stock ownership by Non-Employee

Directors (as defined below) of Manufacturers’ Services Limited, a Delaware

corporation (the “Company”), to provide such directors with an additional

incentive to manage the Company effectively and to contribute to its success,

and to provide a form of compensation which will attract and retain highly

qualified individuals as members of the Board of Directors of the Company.

 

2.             EFFECTIVE

DATE AND TERM OF THE PLAN.  The Plan shall

become effective on the date of the consummation of the initial public offering

of the Company’s common stock, par value $.001 per share (the “Effective

Date”).  Options may not be granted

under the Plan after the tenth (l0th) anniversary of the Effective Date (the

“Term”); provided, however, that all options outstanding as of that date shall

remain or become exercisable pursuant to their terms and the terms of the Plan.

 

3.             ADMINISTRATION.  The Plan shall initially be administered by

the Board of Directors of the Company (the “Board”).  The Board shall delegate the administration of the Plan to a

committee of Board (the “Committee”) in the event such a committee is

established by the Board for such purpose and that committee is composed solely

of two or more “Non-Employee Directors” (as such term is defined under Rule

16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange

Act”)).  Each member of the Committee

shall be eligible to participate in the Plan. 

References herein to the Committee shall be deemed to refer to the Board

in the event that the administration of the Plan has not been delegated to the

Committee.  The Committee may, from time

to time, establish such regulations, provisions and procedures, within the

terms of the Plan, as in the opinion of its members may be advisable in the

administration of the Plan.  A majority

of the Committee shall constitute a quorum, and the acts of a majority of a

quorum at any meeting, or acts reduced to or approved in writing by a majority

of the members of the Committee, shall be the valid acts of the Committee.  The interpretation and construction by the

Committee of any provisions of the Plan or of any option granted pursuant to

the Plan shall be final and binding upon the Company and any optionee.  No member of the Board of Directors of the

Company or the Committee shall be liable for any action or determination made

in good faith with respect to the Plan or any option granted pursuant thereto.

 

4.             STOCK

AVAILABLE FOR OPTIONS.  Subject to the

adjustments as provided in Subsection 7(f), the aggregate number of shares of

common stock, par value $.001 per share, of the Company (the “Common Stock”)

reserved for purposes of the Plan shall be 625,000 shares of authorized and

unissued shares or issued shares reacquired by the Company (the “Shares”).  Determinations as to the number of Shares

that remain available for issuance under the Plan shall be made in accordance

with such rules and procedures as the Committee shall determine from time to

time.  If any outstanding option under

the Plan expires or is terminated for any reason before the end of the Term of

the Plan, the Shares allocable to the unexercised portion of such option shall

become available for the grant of other options under the Plan.  No shares delivered to the Company in full

or partial payment upon exercise of an option pursuant to Subsection 7(c) 

 

 

or in full or partial payment of any withholding

tax liability permitted under Section 10 shall become available for the grant

of other options under the Plan.

 

5.             PARTICIPATION.  Subject to the limitations contained in this

Section 5, any director of the Company who is not a contractual nor common law

employee of the Company or any of its subsidiaries (a “Non-Employee Director”)

will be eligible to be granted options to purchase shares of the issued or

issuable Common Stock in accordance and consistent with the terms and

conditions of the Plan.  An optionee may

hold more than one option, but only on the terms and subject to the restrictions

hereafter set forth.  Except as provided

herein, terms and conditions of options granted to a director at any given time

need not be the same for any other grant of options.

 

6.             OPTION

GRANTS.

 

(a)           Discretionary Grants.  In addition to the automatic option grants

provided for in Subsections (b) and (c) hereof, the Committee shall be

authorized to determine from time to time the directors (among the Non-Employee

Directors) to be granted options, the number of shares of Common Stock subject

to such options, and the terms and conditions of the options to be

granted.  All options granted under this

Subsection (a) must be approved by either the Board or the Committee prior to

such grant.

 

(b)           Initial Grants.  Each Non-Employee Director who was in office prior to the

Effective Date and remains in office after the Effective Date, shall

automatically be granted options to purchase 20,000 shares of Common Stock

unless such Non-Employee Director had previously received such a grant prior to

the Effective Date.  Any individual

elected to the Board as a Non-Employee Director after the Effective Date shall

automatically be granted options to purchase 40,000 shares of Common Stock (as

adjusted pursuant to Section 8 hereof) upon initial election and re-election to

such position.

 

(c)           Annual Grants.  Each Non-Employee Director shall automatically be entitled to be

granted options to purchase 10,000 shares of Common Stock (as adjusted pursuant

to Section 8 hereof) on each anniversary of such Non-Employee Director’s election

or re-election to the Board of Directors. 

Such options will be granted to each Non-Employee Director on the date

of the Company’s Annual Meeting of Stockholders (or such other date as

determined by the Board in the event that an Annual Meeting of Stockholders is

not held by the Company).

 

(d)           Non-Statutory Stock Options.  All options granted under the Plan shall be

non-statutory options not intended to qualify under Section 422 of the Internal

Revenue Code of 1986, as amended (the “Code”). 

Each option granted under the Plan shall provide that such option will

not be treated as an “incentive stock option,” as that term is defined in

Section 422(b) of the Code.

 

7.             TERMS

AND CONDITIONS OF OPTIONS OF THE PLAN. 

Options granted under this Plan shall be evidenced by agreements in such

form as the Committee shall from time to time approve, which agreements shall

comply with and be subject to the following conditions:

 

2

 

(a)           Term of Options.  The term of each option shall be for a period of not greater than

ten (10) years from the date of grant of the option.

 

(b)           Option Price.  The exercise price of each option shall be equal to one hundred

percent (100%) of the Fair Market Value of the shares of Common Stock on the

date of the grant of the option.  If the

shares are traded in the over-the-counter market, the Fair Market Value per

share shall be the closing price on the national market list as quoted in the

National Association of Securities Dealers Automated Quotation System

(“Nasdaq”) on the day the option is granted or if no sale of shares is

reflected in Nasdaq on that day, on the next preceding day on which there was a

sale of shares reflected in Nasdaq.  If

the shares are not traded in the over-the-counter market but are listed upon an

established stock exchange or exchanges, such Fair Market Value shall be deemed

to be the closing price of the shares on such stock exchange or exchanges on

the day the option is granted or if no sale of the shares shall have been made

on any stock exchange on that day, on the next preceding day on which there was

a sale of the shares.

 

(c)           Medium of Payment.  The option price shall be payable to the

Company either (i) in United States dollars in cash or by check, bank draft, or

money order payable to the order of the Company or (ii) if permitted by the

Board, through the delivery of shares of the Common Stock with a Fair Market

Value on the date of the exercise equal to the option price, provided such

shares are utilized as payment to acquire at least 100 shares of Common Stock,

or (iii) by a combination of (i) and (ii) above.  Fair Market Value will be determined in the manner specified in

Subsection 7(b) except as to the date of determination.

 

(d)           Exercise of Options.  Except as provided herein, the Committee

shall have the authority to determine, at the time of grant of each option

pursuant to Subsection 6(a), the times at which an option may be exercised and

any conditions precedent to the exercise of an option.  Except as provided herein, options granted

pursuant to Subsection 6(b) and Subsection 6(c) shall become exercisable in

three equal installments the first on the grant date, the second on the first

anniversary of the grant date and the third on the second anniversary of the

grant date.  An option shall be

exercisable upon written notice to the Chief Financial Officer of the Company,

as to any or all shares covered by the option, until its termination or

expiration in accordance with its terms or the provisions of the Plan.  Notwithstanding the foregoing, an option

shall not at any time be exercisable with respect to less than 100 shares

unless the remaining shares covered by an option are less than 100 shares.  The purchase price of the shares purchased

pursuant to an option shall be paid in full upon delivery to the optionee of

certificates for such shares.  Exercise

by an optionee’s heir, personal representative or permitted transferee shall be

accompanied by evidence of his or her authority to act, in a form reasonably

satisfactory to the Company.

 

(e)                                  Termination of Service as Director.

 

(i) Termination of Service for any Reason

Other than Death.  In the

event an optionee shall cease to serve the Company as a director for any reason

other than such optionee’s death or Permanent Disability, each option held by

such optionee shall, to the extent rights to purchase shares under the option

have been accrued at the time such optionee ceases to serve as a director,

remain exercisable, in whole or in part, by the optionee, subject to prior

expiration according to its terms and other limitations imposed by the Plan,

for a period of one (1) year 

 

3

 

following the optionee’s cessation of service as

a director of the Company.  If the

optionee dies after such cessation of service, the optionee’s options shall be

exercisable in accordance with Subsection 6(e)(ii) hereof.

 

(ii) Termination of Service for Death or

Permanent Disability.  If an

optionee ceases to be a director by reason of death or Permanent Disability,

each option held by such optionee shall immediately become exercisable and

shall remain exercisable, in whole or in part, by (in the case of Permanent

Disability) the optionee or (in the case of death) the personal representative

of the optionee’s estate or by any person or persons who have acquired the

option directly from the optionee during the shorter of the following

periods:  (A) the term of the option, or

(B) a period of two (2) years from the death or Permanent Disability of such

optionee.  If an optionee dies or a

Permanent Disability occurs during the extended exercise period following

cessation of service specified in Subsection 6(e)(i) above, such option may be

exercised any time within the longer of such extended period or one (1) year

after death or Permanent Disability, subject to the prior expiration of the

term of the option. For purposes of this Subsection 6(e)(ii), “Permanent

Disability” shall mean a determination by the Social Security

Administration or any similar successor agency that an optionee is “permanently

disabled,” and the date on which a Permanent Disability is deemed to have

occurred shall be the date on which such determination by such agency shall

have been made.

 

(f)            Adjustment in Shares Covered by Option.  The number of shares covered by each

outstanding option, and the purchase price per share thereof, shall be

proportionately adjusted for any increase or decrease in the number of issued

and outstanding shares resulting from a split in or combination of shares or

the payment of a stock dividend on the shares or any other increase or decrease

in the number of such shares effected without receipt of consideration by the

Company.  If the Company shall be the

surviving corporation in any merger or consolidation or if the Company is

merged into a wholly-owned subsidiary solely for purposes of changing the

Company’s state of incorporation, each outstanding option shall pertain to and

apply to the securities to which a holder of the number of shares subject to

the option would have been entitled to receive in such transaction.  In the event of a Change in Control any

option awarded under this Plan to the extent not previously exercisable shall

immediately become fully exercisable. 

The Committee in its sole discretion may direct the Company to cash out

all outstanding options on the basis of the Change in Control Price as of the

date a Change in Control occurs or such other date as the Committee may

determine prior to the Change in Control. 

For purposes of this Plan, a “Change in Control” means the

occurrence of any of the following: (A) when any “person” as defined in Section

3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d) thereof,

including a “group” as defined in Section 13(d) of the Exchange Act but

excluding the Company and any subsidiary, any of the Company’s existing

stockholders prior to the Effective Date and any employee benefit plan

sponsored or maintained by the Company or any subsidiary (including any trustee

of such plan acting as trustee), directly or indirectly, becomes the

“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act, as amended

from time to time), after the Effective Date, of securities of the Company

representing forty percent (40%) or more of the combined voting power of the

Company’s then outstanding securities; (B) when, during any period of 24

consecutive months during the existence of the Plan, the individuals who, at

the beginning of such period, constitute the Board of Directors of the Company

(the “Incumbent Directors”) cease for any reason other than death 

 

4

 

to constitute at least a majority thereof;

provided, however, that a director who was not a director at the beginning of

such 24-month period shall be deemed to have satisfied such 24-month

requirement (and be an Incumbent Director) if such director was elected by, or

on the recommendation of or with the approval of, at least two-thirds of the

directors who then qualified as Incumbent Directors either actually (because

they were directors at the beginning of such 24 month period) or by prior

operation of this provision; or (C) the approval by the stockholders of the

Company of a transaction involving the acquisition of the Company by an entity

other than the Company or a subsidiary through purchase of assets, by merger,

or otherwise.  For purposes of this

Plan, “Change in Control Price” means the highest price per share of

Common Stock paid in any transaction reported on the New York Stock Exchange or

paid or offered in any bona fide transaction related to a Change in Control at

any time during the 60-day period immediately preceding the occurrence of the

Change in Control, in each case as determined by the Committee.  In the event of a change in the shares as

presently constituted, which is limited to a change of all of its authorized

shares with par value into the same number of shares with a different par value

or without par value, the shares resulting from any such change shall be deemed

to be the Shares within the meaning of the Plan.  To the extent that the foregoing adjustments relate to stock or

securities of the Company, such adjustments shall be made by the Board, whose

determination in that respect shall be final, binding and conclusive.  Any such adjustment may provide for the

elimination of any fractional share which might otherwise become subject to an

option.  Except as expressly provided in

this Subsection 7(f), the optionee shall have no rights by reason of any split or

combination of shares of stock of any class or the payment of any stock

dividend or any other increase or decrease in the number of shares of stock of

any class or by reason of any dissolution, liquidation, merger, or

consolidation or spinoff of assets or stock of another corporation, and any

issue by the Company of shares of stock of any class, or securities convertible

into shares of stock of any class, shall not affect, and no adjustment by

reason thereof shall be made with respect to, the number or price of shares of

stock subject to the option.  The grant

of an option pursuant to the Plan shall not affect 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 or to consolidate

or to dissolve, liquidate or sell, or transfer all or any part of its business

or assets.

 

(g)           Rights of a Stockholder.  An optionee shall have no rights as a

stockholder with respect to any shares covered by his or her option until the

date on which the optionee becomes the holder of record of such shares.  No adjustment shall be made for dividends,

distributions, or other rights for which the record date is prior to the date

on which he or she shall have become the holder of record thereof, except as

provided in Subsection 7(f).

 

(h)           Postponement of Delivery of Shares and

Representations.  The

Company, in its discretion, may postpone the issuance and/or delivery of shares

upon any exercise of an option until completion of the registration or other

qualification of such shares under any state and/or federal law, rule or

regulation as the Company may consider appropriate, and may require any person

exercising an option to make such representations, including a representation that

it is the optionee’s intention to acquire shares for investment and not with a

view to distribution thereof, and furnish such information as it may consider

appropriate in connection with the issuance or delivery of the shares in

compliance with applicable laws, rules, and regulations.  In 

 

5

 

such event no shares shall be issued to such

holder unless and until the Company is satisfied with the accuracy of any such

representations.

 

(i)            Transferability.  Unless provided in the option agreement, the options granted

pursuant to the Plan are not transferable by a Non-Employee Director.  The Committee shall have the sole discretion

to determine to what extent, if any, the options granted pursuant to the Plan

are transferable by a Non-Employee Director.

 

(j)            Other Provisions.  The option agreements authorized under the Plan shall contain

such other provisions, including, without limitation, restrictions upon the

exercise of the option, as the Committee shall deem advisable.

 

8.             ADJUSTMENTS

IN SHARES AVAILABLE FOR OPTIONS.  The

adjustments in number and kind of shares and the substitution of shares,

affecting outstanding options in accordance with Subsection 7(f) hereof, shall

also apply to the number and kind of shares issuable upon the exercise of

options to be granted pursuant to Section 6 and the number and kind of shares

reserved for issuance pursuant to the Plan, but not yet covered by options.

 

9.             AMENDMENT

OF THE PLAN.  The Board, insofar as

permitted by law, shall have the right from time to time, with respect to any

shares at the time not subject to options, to suspend or discontinue the Plan

or revise or amend it in any respect whatsoever.  So long as the Common Stock is eligible for trading on the New York

Stock Exchange, the Board shall obtain stockholder approval for those revisions

or amendments of the Plan required to be so approved pursuant to the rules of

the New York Stock Exchange.  If the

Plan is amended so that the exemption provided by Rule 16b-3 as a result of the

Plan being approved by the stockholders of the Company is no longer available

for options granted under Subsections 6(b) or 6(c) hereof, all options

subsequently granted thereunder must be approved by either the Board or the

Committee prior to such grant.

 

10.           WITHHOLDING

OF TAXES.  The Company shall have the

right to deduct from any payment to be made pursuant to this Plan, or to

otherwise require, prior to the issuance or delivery of any shares of Common

Stock, payment by the optionee of any federal, state, or local taxes required

by law to be withheld.  Unless otherwise

prohibited by the Committee, an optionee may satisfy any such withholding tax

obligation by any of the following means or by a combination of such

means:  (a) tendering a cash payment;

(b) authorizing the Company to withhold from the shares otherwise issuable to

the optionee a number of shares having a Fair Market Value as of the “Tax

Date,” less than or equal to the amount of withholding tax obligation; or (c)

delivering to the Company unencumbered shares owned by the optionee having a

Fair Market Value, as of the Tax Date, less than or equal to the amount of the

withholding tax obligation.  The “Tax

Date” shall be the date that the amount of tax to be withheld is determined.

Fair Market Value shall be determined in the manner specified in Subsection

7(b), except as to the date of determination. 

An optionee’s election to pay the withholding tax obligation by either

of (b) or (c) above shall be irrevocable, may be disapproved by the Committee,

and must be made either six (6) months prior to the Tax Date or during the

period beginning on the third business day following the date of release of the

Company’s quarterly or annual summary statement of sales and earnings and ending

on the twelfth business day following such date.

 

6

 

11.           RIGHT

OF BOARD OF DIRECTORS OR STOCKHOLDERS TO TERMINATE DIRECTOR’S SERVICE.  Nothing in this Plan or in the grant of any

option hereunder shall in any way limit or affect the right of the Board of

Directors or the stockholders of the Company to remove any director or

otherwise terminate his or her service as a director, pursuant to the law, the

Restated Certificate of Incorporation, or Amended and Restated By-laws of the

Company.

 

12.           APPLICATION

OF FUNDS.  The proceeds received by the

Company from the sale of stock pursuant to options will be used for general

corporate purposes.

 

13.           NO

OBLIGATION TO EXERCISE OPTION.  The

granting of an option shall impose no obligation on the optionee to exercise

such option.

 

14.           CONSTRUCTION.  This Plan shall be construed under the laws

of the State of Delaware.

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]