Document:

Exhibit 10.2

 

SECURITY AGREEMENT

 

DATED: 
September 19, 2005

 

	
  DEBTOR

   

  Ballisitc Recovery Systems, Inc.

  300 Airport Road

  South St. Paul, MN 55075

   

  State of Formation: Minnesota

  State Organizational No.:  

  	
  SECURED PARTY

   

  Charles F. Parsons and

  Aerospace Marketing, Inc.

  10440 Schultz Road

  Ft. Meyers, FL 33908

  

 

1.     Security
Interest and Collateral.  To secure
the payment and performance of each and every debt, liability and obligation of
every type and description that Debtor may now or at any time hereafter owe to
Secured Party (whether such debt, liability or obligation now exists or is
hereafter created or incurred, and whether it is or may be direct or indirect,
due or to become due, absolute or contingent, primary or secondary, liquidated
or unliquidated, or joint, several or joint and several; all such debts,
liabilities and obligations collectively referred to as the “Obligations”).  Debtor hereby grants Secured Party a security
interest (the “Security Interest”) in the following property (the “Collateral”):

 

(a)           INVENTORY:

 

All inventory of Debtor, whether now owned or
hereafter acquired and wherever located;

 

(b)           EQUIPMENT:

 

All equipment of Debtor, whether now owned or
hereafter acquired, including but not limited to all present and future
machinery, vehicles, furniture, fixtures, manufacturing equipment, shop
equipment, office and recordkeeping equipment, parts and tools, and the goods
described in any equipment schedule or list herewith or hereafter
furnished to Secured Party by Debtor (but no such schedule or list need be
furnished in order for the security interest granted herein to be valid as to
all of Debtor’s equipment);

 

(c)           ACCOUNTS
AND OTHER RIGHTS TO PAYMENT:

 

Each and every right of Debtor to the payment
of money, whether such right to payment now exists or hereafter arises, whether
such right

 

 

to payment arises out of a sale, lease or other disposition of goods or
other property by Debtor, out of a rendering of services by Debtor, out of a
loan by Debtor, out of the overpayment of taxes or other liabilities of Debtor,
or otherwise arises under any contract or agreement, whether such right to
payment is or is not already earned by performance, and howsoever such right to
payment may be evidenced, together with all other rights and interests (including
all liens and security interests) that Debtor may at any time have by law or
agreement against any account debtor or other obligor obligated to make any
such payment or against any of the property of such account debtor or other
obligor; all including but not limited to all present and future payment
intangibles, debt instruments, chattel paper, accounts, deposit accounts, loans
and obligations receivable and tax refunds;

 

(d)           INTANGIBLES:

 

All intangibles of Debtor, whether now owned
or hereafter acquired, including but not limited to, general intangibles,
investment property, software, applications for patents, patents, Supplemental
Type Certificates, copyrights, trademarks, trade secrets, goodwill, tradenames,
customers lists, permits and franchises, internet domain names, uniform
resource locators (URL’s), website contracts and registration rights and the
right to use Debtor’s name;

 

together with all substitutions and replacements for and products of
any of the foregoing property and together with proceeds of any and all of the
foregoing property and, in the case of all tangible Collateral, together with
all accessions and together with (i) all accessories, attachments, parts,
equipment and repairs now or hereafter attached or affixed to or used in
connection with any such goods, and (ii) all warehouse receipts, bills of
lading and other documents of title now or hereafter covering such goods.

 

2.     Representations,
Warranties and Agreements.  Debtor
represents, warrants and agrees that:

 

(a)           Debtor
is a corporation.

 

(b)           The
Collateral will be used primarily for business purposes.

 

(c)           If
any part or all of the tangible Collateral will become so related to particular
real estate as to become a fixture, the real estate concerned is:  

 

 

                     
and the name of the record owner is

 

 

(d)           Debtor’s
chief executive office is located at the address of Debtor shown at the
beginning of this Agreement.

 

3.     Additional
Representations, Warranties and Agreements. 
Debtor represents, warrants and agrees that:

 

(a)           Debtor
has (or will have at the time Debtor acquires rights in Collateral hereafter
arising) absolute title to each item of Collateral free and clear of all
security interests, liens and encumbrances, except the Security Interest and
the encumbrance permitted under paragraph 6(a) (viii) of the
Stipulation and Confession of Judgment of even date, executed contemporaneously
herewith, and will defend the Collateral against all claims or demands of all
persons other than Secured Party.  Any such
security interests, liens or encumbrances not permitted under this Agreement
shall be void.  Debtor will not sell or
otherwise dispose of the Collateral or any interest therein without the prior
written consent of Secured Party, except that, until the occurrence of an Event
of Default and the revocation by Secured Party of Debtor’s right to do so,
Debtor may sell any inventory constituting Collateral to buyers in the ordinary
course of business.  This Agreement has
been duly and validly authorized by all necessary corporate action.

 

(b)           Each
right to payment and each instrument, document, chattel paper and other
agreement constituting or evidencing Collateral is (or will be when arising or
issued) the valid, genuine and legally enforceable obligation, subject to no
defense, set-off or counterclaim (other than those arising in the ordinary
course of business) of the account debtor or other obligor named therein or in
Debtor’s records pertaining thereto as being obligated to pay such
obligation.  Debtor will neither agree to
any material modification or amendment nor agree to any cancellation of any
such obligation without Secured Party’s prior written consent, and will not
subordinate any such right to claims of other creditors of such account debtor
or other obligor.

 

(c)           Debtor
will:

 

(i)            keep
all tangible Collateral in good repair, working order and condition, normal
depreciation excepted, and

 

 

will, from time to time, replace any worn, broken or defective parts
thereof;

 

(ii)           promptly
pay all taxes and other governmental charges levied or assessed upon or against
any Collateral or upon or against the creation, perfection or continuance of
the Security Interest except as Debtor shall contest in good faith and by
appropriate proceedings providing such reserves as are required by generally
accepted accounting principles;

 

(iii)          keep
all Collateral free and clear of all security interests, liens and encumbrances
except the Security Interest and the encumbrance permitted under paragraph 6(a) (viii) of
the Stipulation and Confession of Judgment of even date, executed
contemporaneously herewith;

 

(iv)          at
all reasonable times, permit Secured Party or its representatives to examine or
inspect any Collateral, wherever located, and to examine, inspect and copy
Debtor’s books and records pertaining to the Collateral and its business and
financial condition and permit Secured Party, upon any Event of Default, to
send and discuss with account debtors and other obligors requests for
verifications of amounts owed to Debtor;

 

(v)           keep
accurate and complete records pertaining to the Collateral and pertaining to
Debtor’s business and financial condition and submit to Secured Party such
periodic reports concerning the Collateral and Debtor’s business and financial
condition as Secured Party may from time to time reasonably request;

 

(vi)          promptly
notify Secured Party of any material loss of or material damage to any
Collateral or of any material adverse change, known to Debtor, in the prospect
of payment of any sums due on or under any instrument, chattel paper, or
account constituting Collateral;

 

(vii)         if
Secured Party so requests after the occurrence of an Event of Default, promptly
deliver to Secured Party any instrument, document or chattel paper constituting
Collateral, duly endorsed or assigned by Debtor;

 

(viii)        at
all times keep all tangible Collateral insured against risks of fire (including
so-called extended coverage), theft, collision (in case of Collateral
consisting of motor vehicles) and such other risks and in such amounts as
Secured Party may reasonably request with any loss payable to Secured Party to
the extent of its interest;

 

(ix)           from
time to time authorize such financing statements as Secured Party may
reasonably require in order to perfect the Security Interest and, if any
Collateral consists of an asset subject to a certificate of title, execute such
documents as may be required to have the Security Interest properly noted on a
certificate of title;

 

(x)            pay
when due or reimburse Secured Party on demand for all costs of collection of
any of the Obligations and all other out-of-pocket expenses (including in each
case all reasonable attorneys’ fees) incurred by Secured Party in connection
with the, , satisfaction,

 

 

protection, defense or enforcement of the Security Interest or the, ,
protection, defense or enforcement of this Agreement or any or all of the
Obligations, including expenses incurred in any litigation or bankruptcy or
insolvency proceedings;

 

(xi)           execute,
deliver or endorse any and all instruments, documents, assignments, security
agreements and other agreements and writings that Secured Party may at any time
reasonably request in order to secure, protect, perfect or enforce the Security
Interest and Secured Party’s rights under this Agreement;

 

(xii)          not
use or keep any Collateral, or permit it to be used or kept, for any unlawful
purpose or in violation of any federal, state or local law, statute or
ordinance;

 

(xiii)         not
permit any tangible Collateral to become part of or to be affixed to any real
property without first assuring to the reasonable satisfaction of Secured Party
that the Security Interest will be prior and senior to any interest, or lien
then held or thereafter acquired by any mortgagee of such real property or the
owner or purchaser of any interest therein; and

 

(xiv)        inform
Secured Party of any change to Debtor’s name, address or state of formation
prior to the effective date of such change and authorize and deliver to Secured
Party any financing statement that is necessary as a result of that change to
maintain the perfected status of the Security Interest.

 

If Debtor at any time fails to perform or observe any agreement
contained in this Section 3(d), and if such failure shall continue for a
period of thirty calendar days after Secured Party gives Debtor written notice
thereof (or, in the case of the agreements contained in clauses (viii) and
(ix) of this Section 3(d), immediately upon the occurrence of such
failure, without notice or lapse of time), Secured Party may (but need not)
perform or observe such agreement on behalf and in the name, place and stead of
Debtor (or, at Secured Party’s option, in Secured Party’s own name) and may
(but need not) take any and all other actions that Secured Party may reasonably
deem necessary to cure or correct such failure (including, without limitation,
the payment of taxes, the satisfaction of security interests, liens, or
encumbrances, the performance of obligations under contracts or agreements with
account debtors or other obligors, the procurement and maintenance of
insurance, the filing of financing statements, the endorsement of instruments,
and the procurement of repairs, transportation or insurance); and, except to
the extent that the effect of such payment would be to render any loan

 

 

or forbearance of money usurious or otherwise illegal under any
applicable law, Debtor shall thereupon pay Secured Party on demand the amount
of all moneys reasonably expended and all reasonable costs and expenses
(including reasonable attorneys’ fees) incurred by Secured Party in connection
with or as a result of Secured Party’s performing or observing such agreements
or taking such actions, together with interest thereon from the date thirty
(30) calendar days after demand therefore made by Secured Party at the highest
rate then applicable to any of the Obligations. 
To facilitate the performance or observance by Secured Party of such
agreements of Debtor, Debtor hereby irrevocably appoints (which appointment is
coupled with an interest) Secured Party, or its delegate, as the
attorney-in-fact of Debtor with the right (but not the duty) from time to time
to create, prepare, complete, execute, deliver, endorse or file, in the name
and on behalf of Debtor, any and all instruments, documents, financing statements,
termination statements for filings not permitted under this Agreement held by
other secured parties, applications for insurance and other agreements and
writings required to be obtained, executed, delivered or endorsed by Debtor
under this Section 3 and Section 4.

 

4.     Account
Verification and Collection Rights of Secured Party.  Secured Party shall have the right to verify
any accounts in the name of Debtor or in its own name; and Debtor, whenever
requested after the occurrence of an Event of Default, shall furnish Secured
Party with duplicate statements of the accounts, which statements may be mailed
or delivered by Secured Party for that purpose. 
Notwithstanding Secured Party’s rights under Section 4 with respect
to any and all debt instruments, chattel papers, accounts, and other rights to
payment constituting Collateral (including proceeds), Secured Party may at any
time (both before and after the occurrence of an Event of Default) notify any
account debtor, or any other person obligated to pay any amount due, that such
chattel paper, account, or other right to payment has been assigned or
transferred to Secured Party for security and shall be paid directly to Secured
Party.  If Secured Party so requests at
any time, Debtor will so notify such account debtors and other obligors in
writing and will indicate on all invoices to such account debtors or other
obligors that the amount 

 

 

due is payable directly to Secured Party.  At any time after Secured Party or Debtor
gives such notice to an account debtor or other obligor, Secured Party may (but
need not), in its own name or in Debtor’s name, demand, sue for, collect or
receive any money or property at any time payable or receivable on account of,
or securing, any such chattel paper, account, or other right to payment, or
grant any extension to, make any compromise or settlement with or otherwise
agree to waive, modify, amend or change the obligations (including collateral
obligations) of any such account debtor or other obligor.

 

5.     Assignment
of Insurance.  Debtor hereby assigns
to Secured Party, as additional security for the payment of the Obligations,
any and all moneys (including but not limited to proceeds of insurance and
refunds of unearned premiums) due or to become due under and all other rights
of Debtor under or with respect to, any and all policies of insurance covering
the Collateral, and Debtor hereby directs the issuer of any such policy to pay
any such moneys directly to Secured Party. 
Both before and after the occurrence of an Event of Default, Secured
Party may (but need not), in its own name or in Debtor’s name, execute and
deliver proofs of claim, receive all such moneys, endorse checks and other
instruments representing payment of such moneys, and adjust, litigate,
compromise or release any claim against the issuer of such policy.

 

6.     Events
of Default.  Each of the following
occurrences shall constitute an event of default under this Agreement (herein
called “Event of Default”): (i) Debtor shall fail to pay any or all of the
Obligations when due and ten (10) calendar days have elapsed after written
notice thereof has been sent to Debtor or (if payable on demand) on demand,
shall fail to observe or perform any covenant or agreement herein binding on it
or shall be in default under any loan or credit agreement between it and
Secured Party; (ii) any representations or warranty by Debtor set forth in
this Agreement or made to Secured Party in any financial statements or reports
submitted to Secured Party by or on behalf of Debtor shall prove materially
false or misleading; and thirty (30) calendar days have elapsed after written
notice thereof has been sent to Debtor (iii) a garnishment, summons or a
writ of attachment shall be issued against or served upon Secured Party for the
attachment of any property of Debtor or any 

 

 

indebtedness owing to Debtor and such garnishment, summons or writ of
attachment shall not be released after ten(10) calendar days; (iv) Debtor
or any guarantor of any Obligation shall (A) be or become insolvent (however
defined); or (B) voluntarily file, or have filed against it involuntarily,
a petition under the United States Bankruptcy Code and such bankruptcy not be
dismissed after ninety (90) calendar days; or (C) if a corporation,
partnership, or organization, be dissolved or liquidated or, if a partnership,
suffer the death of a partner or, if an individual, die; or (D) go out of
business; or (v) Secured Party shall in good faith believe that the
prospect of due and punctual payment of any or all of the Obligations is
impaired.  If Secured Party is found to
have declared a default under this paragraph 6(v) in bad faith, Debtor
shall recover its actual damages, court costs and reasonable attorneys fees
from Secured Party

 

7.     Remedies
upon Event of Default.  Upon the
occurrence of an Event of Default under Section 7 and at any time
thereafter, Secured Party may exercise any one or more of the following rights
and remedies: (i) declare all unmatured Obligations to be immediately due
and payable, and the same shall thereupon be immediately due and payable,
without presentment of other notice or demand; (ii) exercise and enforce
any or all rights and remedies available upon default to a secured party under
the Uniform Commercial Code, including but not limited to the right to take
possession of any Collateral, proceeding without judicial process or by
judicial process (without a prior hearing or notice thereof, which Debtor
hereby expressly waives), and the right to sell, lease or otherwise dispose of
any or all of the Collateral, and in connection therewith, Secured Party may
require Debtor to make the Collateral available to Secured Party at a place to
be designated by Secured Party that is reasonably convenient to both parties,
and if notice to Debtor of any intended disposition of Collateral or any other
intended action is required by law in a particular instance, such notice shall
be deemed commercially reasonable if given (in the manner specified in Section 10)
at least 10 calendar days prior to the date of intended disposition or other
action; (iii) exercise or enforce any or all other rights or remedies
available to Secured Party by law or agreement against the Collateral, against
Debtor or against any other person or

 

 

property. Upon the occurrence of the Event of Default described in Section 7(iv)(B),
all Obligations shall be immediately due and payable without demand or notice
thereof.  Upon the occurrence of any
Event of Default, Secured Party is hereby granted a nonexclusive, worldwide and
royalty-free license to use or otherwise exploit all trademarks, trade secrets,
franchises, copyrights and patents of Debtor that Secured Party deems necessary
or appropriate to the disposition of any Collateral.

 

8.     Other
Personal Property.  Unless at the
time Secured Party takes possession of any tangible Collateral, or within seven
days thereafter, Debtor gives written notice to Secured Party of the existence
of any goods, papers or other property of Debtor, not affixed to or
constituting a part of such Collateral, but that are located or found upon or
within such Collateral, describing such property, Secured Party shall not be
responsible or liable to Debtor for any action taken or omitted by or on behalf
of Secured Party with respect to such property without actual knowledge of the
existence of any such property or without actual knowledge that it was located
or to be found upon or within such Collateral.

 

9.     Miscellaneous.  This Agreement does not contemplate a sale of
accounts, payment intangibles or chattel paper. 
This Agreement can be waived, modified, amended, terminated or
discharged and the Security Interest can be released, only explicitly in a
writing signed by Secured Party.  A
waiver signed by Secured Party shall be effective only in a specific instance
and for the specific purpose given.  Mere
delay or failure to act shall not preclude the exercise or enforcement of any
of Secured Party’s rights or remedies. 
All rights and remedies of Secured Party shall be cumulative and may be
exercised singularly or concurrently, at Secured Party’s option, and the
exercise or enforcement of any one such right or remedy shall neither be a
condition to nor bar the exercise or enforcement of any other.  All notices to be given to Debtor shall be
deemed sufficiently given if delivered or mailed by registered or certified
mail, postage prepaid, to Debtor at its address set forth above or at the most
recent address shown on Secured Party’s records.  Secured Party’s duty of care with respect to
Collateral in its possession (as imposed by law) shall be deemed fulfilled if
Secured Party exercises reasonable care in physically safekeeping such
Collateral or, in the case of Collateral in the

 

 

custody or possession of a bailee or other third person, exercises
reasonable care in the selection of the bailee or other third person, and
Secured Party need not otherwise preserve, protect, insure or care for any
Collateral.  Secured Party shall not be
obligated to preserve any rights Debtor may have against prior parties, to
realize on the Collateral at all or in any particular manner or order, or to
apply any cash proceeds of Collateral in any particular order of application
and Secured Party may disclaim any and all implied warranties (as imposed by
law) in connection with the disposition of Collateral.  This Agreement shall be binding upon and
inure to the benefit of Debtor and Secured Party and their respective heirs,
representatives, successors and assigns and shall take effect when signed by
Debtor and delivered to Secured Party, and Debtor waives notice of Secured
Party’s acceptance hereof.  Secured Party
may execute this Agreement if appropriate for the purpose of filing, but the
failure of Secured Party to execute this Agreement shall not affect or impair
the validity or effectiveness of this Agreement.  This Agreement shall be governed by the
internal laws of the State of Minnesota. 
If any provision or application of this Agreement is held unlawful or
unenforceable in any respect, such illegality or unenforceability shall not
affect other provisions or applications that can be given effect and this
Agreement shall be construed as if the unlawful or unenforceable provision or
application had never been contained herein or prescribed hereby.  All representations and warranties contained
in this Agreement shall survive the execution, delivery and performance of this
Agreement and the creation and payment of the Obligations.  Debtor hereby irrevocably submits to the
jurisdiction of the Minnesota District Court, Fourth District, and the Federal
District Court, District of Minnesota, Fourth Division, over any action or
proceeding arising out of or relating to this Agreement and agrees that all
claims in respect of such action or proceeding may be heard and determined in
any such court.  [If this Agreement is
signed by more than one person as Debtor, the term “Debtor” shall refer to each
of them separately and to both or all of them jointly; all such persons shall
be bound both severally and jointly with the other(s); and the Obligations
shall include all debts, liabilities and obligations owed to Secured Party by
any Debtor solely or by both or several or all Debtors jointly or

 

 

jointly and severally, and all property described in Section 1
shall be included as part of the Collateral, whether it is owned jointly by
both or all Debtors or is owned in whole or in part by one (or more) of them.]

 

 

	
  Aerospace Marketing, Inc

  	
  Ballistic Recovery Systems, Inc.

  
	
   

  	
   

  
	
  By

  	
  Charles F. Parsons

  	
   

  	
   

  
	
   

  	
  Charles F. Parsons

  	
  By

  	
  Larry Williams

  	
   

  
	
   

  	
  Its President

  	
   

  	
  Its

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
  Charles F. Parsons

  	
   

  	
   

  
	
  Charles F. Parsons, individuallyExhibit 10.1

 

MERISANT
WORLDWIDE, INC.

 

2005 SHARE
APPRECIATION PLAN

 

1.0                                 DEFINITIONS

 

The following terms shall have
the following meanings unless the context indicates otherwise:

 

1.1                                 “Affiliate”
shall mean with respect to any Person, any other Person that
(i) directly or indirectly controls such Person, (ii) directly or
indirectly is controlled by such Person or (iii) is under direct or
indirect common control with such Person.

 

1.2                                 “Appreciation Award” shall mean a compensatory award that is
granted in accordance with Section 7 below, and that Vests and is paid out in
accordance with Section 8 below.  Each
Appreciation Award may be a First Level Appreciation Award, a Second Level
Appreciation Award or a Third Level Appreciation Award and each such Appreciation
Award shall be represented by a specific number of whole and/or fractional
Share Units.

 

1.3                                 “Award Letter” shall mean a written agreement between the
Company and the Participant that establishes the terms, conditions,
restrictions and/or limitations applicable to an Appreciation Award in addition
to those established by the Plan and by the Committee’s exercise of its
administrative powers.

 

1.4                                 “Beneficial
Owner,”  “Beneficial Ownership” or “Beneficially Own” shall have the meanings
ascribed to any such terms in Rule 13d-3 of the General Rules and Regulations
under the Exchange Act.

 

1.5                                 “Board” shall mean the Board of Directors of the
Company.

 

1.6                                 “Change in Control” shall mean:

 

(a)  acquisition by any Person or group of Persons,
including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), of beneficial
ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act,
of more than 50 percent of either (i) the then outstanding shares of Common
Stock (the “Outstanding Common Stock”) or (ii) the combined voting power
of the then outstanding securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Voting Securities”);
excluding, however, the following: (A) any acquisition directly from the
Company (except for any acquisition resulting from the exercise of an exercise,
conversion or exchange privilege unless the security being so exercised,
converted or exchanged was acquired directly from the Company ), (B) any
acquisition by the Company, (C) any acquisition by an

 

1

 

employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company or (D)
any acquisition by any corporation pursuant to a transaction that complies with
clauses (i), (ii) and (iii) of subsection (b) of this Section 1.5; provided
further, that for purposes of clause (B), if any Person or group of Persons
(other than the Company or any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company) shall become the Beneficial Owner of more than 50 percent of the
Outstanding Common Stock or of the Outstanding Voting Securities by reason of
an acquisition by the Company, and such Person or group of Persons shall, after
such acquisition by the Company, become the Beneficial Owner of any additional
shares of the Outstanding Common Stock or any additional Outstanding Voting
Securities and such Beneficial Ownership is publicly announced, such additional
Beneficial Ownership shall constitute a Change in Control;

 

(b) consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (a “Corporate Transaction”); excluding, however, a
Corporate Transaction pursuant to which (i) all or substantially all of the
individuals or entities who are the Beneficial Owners, respectively, of the
Outstanding Common Stock and the Outstanding Voting Securities immediately
prior to such Corporate Transaction will Beneficially Own, directly or
indirectly, more than 50 percent of, respectively, the outstanding shares of
common stock, and the combined voting power of the outstanding securities
entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Corporate Transaction (including, without
limitation, a corporation that as a result of such transaction owns the Company
or all or substantially all of the Company’s assets either directly or
indirectly) in substantially the same proportions relative to each other as
their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Common Stock and the Outstanding Voting Securities, as the case may
be, (ii) no Person or group of Persons (other than the Company, any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, the corporation resulting from such
Corporate Transaction, or any Person that Beneficially Owned, immediately prior
to such Corporate Transaction, directly or indirectly, more than 50 percent of
the Outstanding Common Stock or of the Outstanding Voting Securities, as the
case may be) will Beneficially Own, directly or indirectly, more than 50
percent of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting
power of the outstanding securities of such corporation entitled to vote
generally in the election of directors and (iii) individuals who were members
of the Incumbent Board will constitute at least a majority of the members of
the board of directors of the corporation resulting from such Corporate
Transaction; or

 

(c) consummation of a plan of complete liquidation or
dissolution of the Company.

 

1.7                                 “Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time, including applicable regulations promulgated
thereunder.

 

2

 

1.8                                 “Committee” shall mean (i) the Board or (ii) a committee or
subcommittee of the Board appointed by the Board from among its members.  The Committee may be the Board’s Compensation
Committee or such committee that performs the functions generally associated
with those functions performed by the compensation committees of publicly
traded corporations.

 

1.9                                 “Common Stock” shall mean the common stock, $.01 par value per
share, of the Company.

 

1.10                           “Company” shall mean Merisant Worldwide, Inc., a Delaware
corporation.

 

1.11                           “Complementary Company”
shall mean any Person that owns or possesses intellectual property or other
assets primarily used by the Company and its Subsidiaries in the Company’s
tabletop sweetener business through licensing or other contractual
arrangements.

 

1.12                           “Distribution Date”
shall mean the Initial Distribution Date or a Subsequent Distribution
Date, as applicable.

 

1.13                           “Effective Date” shall mean September 19, 2005.

 

1.14                           “Employee” shall mean an employee of the Company or any
Subsidiary as described in Treasury Regulation Section 1.421-7(h).

 

1.15                           “Equity Interest”
shall mean a share of stock, membership interest, partnership interest or other
equity interest in a Complementary Company.

 

1.16                           “Equity Value”
shall mean the following (as determined pursuant to Section 8.5):

 

(A + B - C) + (D + E - F), where:

 

 A =                       the
aggregate proceeds received and to be received by the holders of capital stock
of the Company on the Distribution Date and on each Distribution Date prior to
such Distribution Date;

 

B =                              the amount
of any Interim Distributions made after the Effective Date with respect to the
shares of Common Stock;

 

C =          the Return
Amount with respect to New Company Equity;

 

D
=                           to the
extent that all or substantially all of the assets or Equity Interests of the
Complementary Company are conveyed, transferred or sold, including by way of
merger, in connection with a Change of Control or in a related transaction or series
of related transactions contemporaneous with a Change of Control, the aggregate
proceeds received or to be received by holders of Equity Interests in

 

3

 

exchange
for their Equity Interests;

 

E =                               the amount
of any Interim Distributions made after the Effective Date with respect to the
Equity Interests, to the extent D is included in the calculation; and

 

F =                               the Return Amount with respect to Equity Interests, to the extent D is
included in the calculation.

 

1.17                           “ERISA” shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time, including applicable
regulations promulgated thereunder.

 

1.18                           “Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended from time to time, including applicable regulations thereunder.

 

1.19                           “First Level Appreciation Award” shall
mean an Appreciation Award to be paid under the Plan with respect to Equity
Value on the Distribution Date that is less than or equal to $100,000,000.

 

1.20                           “Incumbent Board” shall mean those
individuals who, as of September 19, 2005, constitute the Board; provided that
any individual who becomes a director of the Company subsequent to September
19, 2005 whose election, or nomination for election by the Company’s
stockholders, was approved by the vote of at least a majority of the directors
then comprising the Incumbent Board shall be deemed a member of the Incumbent
Board; and provided further, that any individual who was initially elected as a
director of the Company as a result of an actual or threatened election
contest, as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act, or any other actual or threatened solicitation of
proxies or consents by or on behalf of any Person other than the Board shall
not be deemed a member of the Incumbent Board.

 

1.21                           “Initial
Distribution Date” shall mean (a)
the date on which Merisant Investors receive cash or marketable securities in
exchange for at least 50% of their shares of Common Stock in a single
transaction or a series of related transactions or in any transaction which is
otherwise a Change in Control under paragraph (a) or (b) of the definition
thereof.

 

1.22                           “Initial Participants” shall mean the Participants selected by the Committee
and whom are granted Appreciation Awards during the 120-day period immediately
following the Effective Date in accordance with Section 7 below.

 

1.23                           “Interim Distribution”
shall mean any distribution or payment by the Company, a Complementary Company
or any third party with respect to outstanding shares of Common Stock or Equity
Interests, as applicable.

 

1.24                           “Investors” shall mean (a) the individuals and entities which
are Merisant Investors and (b) the individuals and entities which are or may
become holders of Equity Interests.

 

4

 

1.25                           “Merisant Investors” shall mean the individuals and entities
identified as “Shareholders” in the Shareholders Agreement dated as of March
17, 2000 by and among the Company, Tabletop Holdings, LLC, a Delaware limited
liability company, the entities identified as “Mezzanine Investors” in Schedule
I to such agreement and the individuals identified as “Purchasers” in Schedule
I to such agreement.   The term Merisant
Investors shall include any member of Tabletop Holdings, LLC and any Affiliate
a Merisant Investor who acquires shares of Common Stock from a Merisant
Investor.

 

1.26                           “New Company Equity” shall mean capital
stock of the Company issued to any Person after the Effective Date.

 

1.27                           “Participant” shall mean any Employee or director of the
Company or any Subsidiary to whom an Appreciation Award has been granted by the
Committee under the Plan and, the case of an Employee, who is employed by the
Company or any Subsidiary as of the date the Appreciation Award Vests in
accordance with Section 8 or 9 below.

 

1.28                           “Person” shall
mean any natural person or corporation, limited liability company, partnership
or other entity.

 

1.29                           “Plan” shall mean the Merisant Worldwide, Inc. 2005
Share Appreciation Plan.

 

1.30                           “Return Amount”
shall mean, with respect to Equity Interests, the amount of the
aggregate equity investments in and contributions to the capital of a
Complementary Company made by the Persons who are or have been holders of
Equity Interests plus an amount equal to 12% compounded annual return on such
investment measured with respect to such equity investment or contribution to
the capital to the date as of which such return in paid.  With respect to New Company Equity, the term “Return
Amount” means the amount of the aggregate equity investments in and
contributions to the capital of the Company by any of the Merisant Investors
after the Effective Date plus an amount equal to 12% compounded annual return
on such investment measured with respect to such equity investment or
contribution to the capital to the date as of which such return in paid.

 

1.31                           “SAR Plan” shall mean the Tabletop Holdings, Inc. Stock
Appreciation Rights Plan, as the same may be amended or supplemented from time
to time.

 

1.32                           “Second Level Appreciation Award” shall
mean an Appreciation Award to be paid under the Plan with respect to Equity
Value on the Distribution Date that is greater than $100,000,000 but less than
or equal to $200,000,000.

 

1.33                           “Share Unit”
shall mean a hypothetical share of Common Stock.  Share Units may include fractions of a Share
Unit.

 

1.34                           “Subsequent
Distribution Date” shall mean one or more dates after the Initial Distribution
Date on which at least a substantial portion of the Merisant Investors receive
cash or

 

5

 

marketable securities in
exchange for any of their shares of Common Stock in a transaction or series of
related transactions.

 

1.35                           “Subsidiary” shall mean a corporation of which the Company
directly or indirectly owns more than 50 percent of the Voting Stock or any
other business entity in which the Company directly or indirectly has an
ownership interest of more than 50 percent.

 

1.36                           “Third Level Appreciation Award” shall
mean an Appreciation Award to be paid under the Plan with respect to Equity
Value on the Distribution Date that is greater than $200,000,000.

 

1.37                           “Total Common
Stock” shall mean 9,089,380 shares of Common Stock, as adjusted in
accordance with Section 6.2 below.

 

1.38                           “Total Share Units” shall mean, with
respect to First Level Appreciation Awards, 869,499 Share Units; with respect
to Second Level Appreciation Awards, 1,111,026 Share Units; and, with respect
to Third Level Appreciation Awards, 1,363,531 Share Units.

 

1.39                           “Treasury Regulation” shall mean the regulations promulgated under the
Code by the United States Department of the Treasury, as amended from time to
time.

 

1.40                           “Vest” shall mean that the Participant has an
unrestricted right, title and interest to receive the compensation (whether
payable in cash or stock or a combination of both) attributable to an
Appreciation Award (or a portion of such Appreciation Award) or to otherwise
enjoy the benefits underlying such Appreciation Award without a substantial
risk of forfeiture (as such term is defined and used in Code Section 83).

 

1.41                           “Vesting Date” shall mean the date on which an Appreciation
Award Vests.

 

2.0                                 PURPOSE OF PLAN

 

2.1                                 Purpose.  The
purpose of the Plan is to motivate certain Employees to put forth maximum
efforts toward the growth, profitability, and success of the Company and its
Subsidiaries by providing incentives to such Employees through cash and/or
stock payments.  In addition, the Plan is
intended to provide incentives that will attract and retain highly qualified
individuals as Employees, and to assist in aligning the interests of such
Employees with the interests of the shareholders of the Company.

 

2.2                                 ERISA and Code Section 409A.  The Plan
is NOT intended to be an “employee benefit plan” as such term is defined under
ERISA, and thus the Plan is intended to NOT be subject to ERISA.  In addition, the Plan is NOT intended to be a
“nonqualified deferred compensation plan” as such term is defined and used
under Code Section 409A, and thus the Plan is intended to NOT be subject to
Code Section 409A.

 

6

 

3.0           TERM OF PLAN

 

3.1                                 Term.  The Plan
shall be effective as of the Effective Date and shall terminate on the earlier
of (i) the date that all Appreciation Awards granted under the Plan are paid
out or (ii) the tenth (10th) anniversary of the Effective Date,
unless sooner terminated by the Board in accordance with Section 10 below.

 

4.0                                 ADMINISTRATION

 

4.1                                 Responsibility.  The
Committee shall have the responsibility, in its sole discretion, to control,
operate, manage and administer the Plan in accordance with its terms.

 

4.2                                 Award Agreement.  Each
Appreciation Award granted under the Plan shall be evidenced by an Award
Letter, which shall be authorized by the Committee and signed by the Company
and the Participant; provided, however,
that in the event of any conflict between a provision of the Plan and any
provision of an Award Letter, the provision of the Plan shall control and
prevail.

 

4.3                                 Authority of the Committee.  The
Committee shall have all the discretionary authority that may be necessary or
helpful to enable it to discharge its responsibilities with respect to the
Plan, including but not limited to the following:

 

(a)                                  to determine eligibility for participation in the
Plan;

 

(b)                                 to determine the size of an Appreciation Award
granted under the Plan;

 

(c)                                  to grant Appreciation Awards to, and to enter
into Award Letters with, Participants;

 

(d)                                 to supply any omission, correct any defect, or
reconcile any inconsistency in the Plan in such manner and to such extent as it
shall deem appropriate in its sole discretion to carry the same into effect;

 

(e)                                  to issue administrative guidelines as an aid to
administer the Plan and make changes in such guidelines as it from time to time
deems proper;

 

(f)                                    to make rules for carrying out and administering
the Plan and make changes in such rules as it from time to time deems proper;

 

(g)                                 to the extent permitted under the Plan, grant
waivers of Plan terms, conditions, restrictions, and limitations; and

 

(h)                                 to take any and all other actions it deems
necessary or advisable for the proper operation or administration of the Plan,
including as contemplated by Section 10 below.

 

7

 

4.4                                 Action by the Committee.  The
Committee may act only by a majority of its members.  Any determination of the Committee may be
made, without a meeting, by a writing or writings signed by all of the members
of the Committee.  In addition, the
Committee may authorize any one or more of its members to execute and deliver
documents on behalf of the Committee.

 

4.5                                 Delegation of Authority.  The
Committee may delegate to one or more of its members, or to one or more agents,
such administrative duties as it may deem advisable; provided,
however, that any such delegation shall be in writing.  In addition, the Committee, or any individual
to whom it has delegated duties under this Section 4.5, may employ one or more
Persons to render advice with respect to any responsibility the Committee or
such person may have under the Plan.  The
Committee may employ such legal or other counsel, consultants and agents as it
may deem desirable for the administration of the Plan and may rely upon any
opinion or computation received from any such counsel, consultant or
agent.  Expenses incurred by the
Committee in the engagement of such counsel, consultant or agent shall be paid
by the Company, or the Subsidiary whose employees have benefited from the Plan,
as determined by the Committee.

 

4.6                                 Determinations and
Interpretations by the Committee.  All determinations and interpretations made
by the Committee shall be binding and conclusive on all Participants and their
heirs, successors, and legal representatives.

 

4.7                                 Liability.  No
member of the Board, no member of the Committee and no employee of the Company
shall be liable for any act or failure to act hereunder, except in
circumstances involving his or her bad faith, gross negligence or willful misconduct,
or for any act or failure to act hereunder by any other member or employee or
by any agent to whom duties in connection with the administration of the Plan
have been delegated.

 

4.8                                 Indemnification.  The
Company shall indemnify members of the Committee and any agent of the Committee
who is an employee of the Company, against any and all liabilities or expenses
to which they may be subjected by reason of any act or failure to act with
respect to their duties on behalf of the Plan, except in circumstances
involving such person’s bad faith, gross negligence or willful misconduct.

 

5.0                                 ELIGIBILITY AND PARTICIPATION

 

5.1                                 Eligibility.  All
Employees and any director of the Company or any of its Subsidiaries shall be
eligible to participate in the Plan and to receive Appreciation Awards.

 

5.2                                 Participation. The Committee in its sole discretion shall
designate who shall be a Participant and receive Appreciation Awards under the
Plan.  Designation of a Participant in
any year shall not require the Committee to designate such individual or entity
to receive an Appreciation Award in any other year or, once designated, to
receive the same Appreciation Award as granted to the Participant in any other
year.  The Committee shall consider such
factors as it deems pertinent in selecting Participants and in determining the
type and amount of their respective Appreciation Awards.

 

8

 

6.0                                 SHARE UNITS AVAILABLE UNDER PLAN

 

6.1                                 Available Share Units.  The
aggregate number of Share Units underlying First Level Appreciation Awards,
Second Level Appreciation Awards, and Third Level Appreciation Awards that may
be granted under the Plan cannot exceed the Total Share Units.

 

6.2                                 Adjustment of Share Units.

 

(a)          Adjustments For Fundamental Changes In Common Stock.  If there is any change in the Common Stock of
the Company, through merger, consolidation, reorganization, recapitalization,
stock dividend, stock split, reverse stock split, split up, split off,
combination of shares, exchange of shares, dividend in kind or other change in
capital structure, an adjustment shall be made to the Total Share Units and the
Share Units underlying each outstanding First Level Appreciation Award, Second
Appreciation Award and Third Appreciation Award.

 

(b)         Adjustments For Fundamental Changes In Equity
Interests.   If there is any
change in the Equity Interests of the Complementary Company, through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
reverse stock split, split up, split off, combination of shares, exchange of
shares, dividend in kind or other change in capital structure, an adjustment
shall be made to the Total Share Units and to the Share Units underlying each
outstanding First Level Appreciation Award, Second Appreciation Award or Third
Appreciation Award.  Any such adjustment
shall be contingent and shall only be effective if and when all or
substantially all of the assets or Equity Interests of the Complementary
Company are conveyed, transferred or sold, including by way of merger, in
connection with a Change of Control or in a related transaction or series of
related transactions contemporaneous with a Change of Control.

 

(c)          Adjustment Upon Distribution Date.  The number of Share Units underlying each
outstanding First Level Appreciation Award, Second Appreciation Award and Third
Appreciation Award shall be reduced on each Distribution Date by the number of
Share Units with respect to which compensation under such Appreciation Award
has been paid to the holder thereof on such Distribution Date.

 

(d)         Other Adjustments.  For the purposes of preventing any dilution
or enlargement of Participants’ rights under the Plan, the Committee shall have
the authority to adjust, in an equitable manner, the number of Share Units for
grant or granted under the Plan.

 

(e)          Notice of Adjustments. The Committee shall
deliver written notice to each Participant of any such adjustment to
Participant’s Appreciation Award.

 

9

 

7.0                                 GRANTS

 

7.1                                 Grants. Each grant of an Appreciation Award shall be
designated by a fixed number of Share Units underlying the Appreciation Award.

 

7.2                                 Initial Grants. Within 120 days of the Effective Date, the
Committee shall grant each of the Initial Participants his or her Appreciation
Award as the Committee determines in its sole discretion.

 

7.3                                 Other Grants.  The
Committee in its sole discretion may grant Participants Appreciation Awards at
any time during the term of the Plan.

 

7.4                                 Maximum Number of Grants. The Committee shall not grant Appreciation
Awards so that at any time there are outstanding Appreciation Awards with
underlying Share Units that exceed the available Share Units (as adjusted in
accordance with Section 6.2 above) as determined in accordance with Section 6.1
above.

 

8.0           VESTING AND PAYOUT AT THE END OF
PERFORMANCE PERIOD

 

8.1                                 Vesting.  All
Appreciation Awards that have not been forfeited in accordance with Section 9.1
below shall Vest on the Initial Distribution Date.

 

8.2                                 Calculation of Appreciation
Award Compensation.

 

(a)          First Level Appreciation Awards.  Each First Level Appreciation Award shall be
calculated by multiplying Equity Value up to and including the first
$100,000,000 by a quotient the numerator or which equals the number of
outstanding Share Units underlying such First Level Appreciation Award and the
denominator or which shall equal the Total Share Units underlying all First
Level Appreciation Awards on the Distribution Date plus the aggregate
number of shares of Common Stock outstanding on the Distribution Date plus
the aggregate number of Equity Interests outstanding on the Distribution Date
if substantially all of the assets or Equity Interests of the Complementary
Company are conveyed, transferred or sold, including by way of merger, in
connection with a Change of Control or in a related transaction or series of
related transactions contemporaneous with a Change of Control plus a
hypothetical number of shares of Common Stock determined in good faith by the
Board of Directors to represent the hypothetical outstanding equity
representing the vested, in-the-money portion of awards under the SAR Plan on
the Distribution Date.  The number of
Share Units underlying each First Level Appreciation Award shall be reduced on
each Distribution Date by the number of Share Units with respect to which
compensation under such First Level Appreciation Award has been paid to the
holder thereof on such Distribution Date.

 

(b)         Second Level Appreciation Awards.  Each Second Level Appreciation Award shall be
calculated by multiplying the amount of the Equity Value that exceeds
$100,000,000 but is less than or equal to $200,000,000 by a quotient the
numerator or

 

10

 

which equals the number
of outstanding Share Units underlying such Second Level Appreciation Award and
the denominator or which shall equal the Total Share Units underlying all
Second Level Appreciation Awards on the Distribution Date plus the
aggregate number of shares of Common Stock outstanding on the Distribution Date
plus the aggregate number of Equity Interests outstanding on the
Distribution Date if substantially all of the assets or Equity Interests of the
Complementary Company are conveyed, transferred or sold, including by way of
merger, in connection with a Change of Control or in a related transaction or
series of related transactions contemporaneous with a Change of Control plus
a hypothetical number of shares of Common Stock determined in good faith by the
Board of Directors to represent the hypothetical outstanding equity
representing the vested, in-the-money portion of awards under the SAR Plan on
the Distribution Date. The number of Share Units underlying each Second Level
Appreciation Award shall be reduced on each Distribution Date by the number of
Share Units with respect to which compensation under such Second Level
Appreciation Award has been paid to the holder thereof on such Distribution
Date.

 

(c)          Third Level Appreciation Awards.  Each Third Level Appreciation Award shall be
calculated by multiplying the amount of the Equity Value that exceeds
$200,000,000 by a quotient the numerator or which equals the number of the
outstanding Share Units underlying such Second Level Appreciation Award and the
denominator or which shall equal the Total Share Units underlying all Third
Level Appreciation Awards on the Distribution Date plus the aggregate
number of shares of Common Stock outstanding on the Distribution Date plus
the aggregate number of Equity Interests outstanding on the Distribution Date
if substantially all of the assets or Equity Interests of the Complementary
Company are conveyed, transferred or sold, including by way of merger, in
connection with a Change of Control or in a related transaction or series of
related transactions contemporaneous with a Change of Control plus a
hypothetical number of shares of Common Stock determined in good faith by the
Board of Directors to represent the hypothetical outstanding equity
representing the vested, in-the-money portion of awards under the SAR Plan on
the Distribution Date. The number of Share Units underlying each Third Level
Appreciation Award shall be reduced on each Distribution Date by the number of
Share Units with respect to which compensation under such Third Level Appreciation
Award has been paid to the holder thereof on such Distribution Date.

 

8.3                                 Appreciation Award Payout Date
and Form of Payment.  The Company shall pay to each Participant a
lump sum amount equal to the compensation attributable to his or her Appreciation
Award as determined in accordance with Section 8.2 above within the 30-day
period immediately following the date of a Distribution Date.  Such amount shall be payable in cash, shares
of Common Stock, Equity Interests or any form of non-cash consideration, if
any, as is received by any of the Merisant Investors in the transaction(s) that
give rise to the Distribution Date, or any combination thereof.

 

8.4                                 Limitations on Payout. 
Notwithstanding Section 8.1 or 8.3 above, there shall be no Distribution
Date, no Vesting and no payout pursuant to Section 8.3  (and any cash or

 

11

 

equity securities
received in exchange for shares of Common Stock or Equity Interests will
instead be considered an Interim Distribution) to the extent that the payment
of any amount to any Participant is not permitted or is an event of default
under any debt facility or commercial paper facility or instrument evidencing
indebtedness of the Company or any of its Subsidiaries (collectively, the “Instruments”)
or (b) after making such payment, the Company or any of its Subsidiaries would
be in default under any such Instrument or there would be a Change in Control
(as defined herein or therein).  Nothing
in the preceding sentence, or otherwise, shall require the Company to seek any
waiver or other agreement to enable the Company to make any payment hereunder
that otherwise is not permitted under any such Instrument or would cause an
event of default thereunder or to make any payment hereunder in any particular
form.

 

8.5                                 Equity Value.  The
Equity Value as defined in Section 1.16 shall be determined by the Committee
based on the purchase and sale, merger, and/or other documents evidencing the
transaction(s) that gives rise to the Distribution Date or are entered into in
connection with such transaction(s).  For
purposes of determining the Equity Value, the Committee shall (a) adjust the
Equity Value as it determines in good faith based on the facts and
circumstances at the time to reflect any payments pursuant to or assumption of
the obligations under the SAR Plan and the Plan, such that the Equity Value is
measured not taking into account the obligations of the Company under the SAR
Plan or the Plan and (b) make such adjustments as it determines in good faith
are necessary or appropriate to reflect the costs and expenses associated with
the transaction(s) that gives rise to the Distribution Date or are entered into
in connection with such transaction(s).

 

8.6                                 Fair Market Value of Interim Distributions.  The Fair
Market Value of an Interim Distribution shall be equal to the fair market value
of the Interim Distribution as determined by the Committee based on the facts
and circumstances at the time of such Interim Distribution.

 

9.0                                 FORFEITURE DUE TO TERMINATION OF
EMPLOYMENT

 

9.1                                 Forfeiture of Appreciation Award. Unless otherwise provided by the Committee in
its sole discretion at any time, or as otherwise provided in the Participant’s
employment agreement with the Company, a Participant whose employment with the
Company or any Subsidiary is terminated for any reason or for no reason, either
by the Company or any Subsidiary or by the Participant, or either by death or
disability, shall immediately and forever forfeit all right, title and interest
in his/her Appreciation Award(s) as of the date of the termination of such
Participant’s employment with the Company or any Subsidiary. 
Notwithstanding anything contained in the Plan to the contrary, a
Participant whose employment is terminated without cause by the Company or a
Subsidiary during the 180-day period immediately preceding the Initial
Distribution Date shall NOT forfeit his or her Appreciation Awards under this
Section 9.

 

12

 

10.0                           AMENDMENT AND TERMINATION

 

10.1                           Termination of Plan.  Subject
to the terms of the Plan, the Board may suspend or terminate the Plan in whole
or in part at any time..

 

10.2                           Amendment of Plan.  Subject
to the terms of the Plan, the Board may amend the Plan in whole or in part at
any time.

 

10.3                           Amendment or Cancellation of
Award Agreements.  Notwithstanding any other provisions of the
Plan to the contrary, no amendment, modification or termination of the Plan or
an Appreciation Award shall adversely affect in any material way any
Appreciation Award previously made without the written consent of the
Participant holding such Appreciation Award. This Section 10.3 shall not in any
way affect the provisions of Section 9.1 herein.

 

10.4                           Restrictions to Amendment of Plan.  Notwithstanding
anything contained in the Plan to the contrary, Sections 8.1 and 8.4 shall
never be amended during and after the term of the Plan such that any amendment
to the Plan shall not cause the Plan (i) to be a “nonqualified deferred
compensation plan” as such term is defined and used in Code Section 409A and
(ii) to be subject to Code Section 409A.

 

11.0                           MISCELLANEOUS

 

11.1                           Listing of Shares and Related
Matters.  If at any time the Committee shall determine
that the listing, registration or qualification of Share Units or shares of
stock subject to or with respect to any Appreciation Award on any securities
exchange or under any applicable law, or the consent or approval of any
governmental regulatory authority, is necessary or desirable as a condition of,
or in connection with, the granting of an Appreciation Award or the issuance of
shares of stock thereunder, such Appreciation Award may not be exercised,
distributed or paid out, as the case may be, in whole or in part, unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Committee.

 

11.2                           No Right, Title, or Interest in
Company Assets.  Participants shall have no right, title, or
interest whatsoever in or to any investments which the Company may make to aid
it in meeting its obligations under the Plan. 
Nothing contained in the Plan, and no action taken pursuant to its
provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any Participant, beneficiary,
legal representative or any other Person. 
To the extent that any Person acquires a right to receive payments from
the Company under the Plan, such right shall be no greater than the right of an
unsecured general creditor of the Company. 
All payments to be made hereunder shall be paid from the general funds
of the Company and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of such amounts except as
expressly set forth in the Plan.

 

13

 

11.3                           No Right to Continued Employment
or Service or to Grants.  The Participant’s rights, if any, to continue
to serve the Company or any Subsidiary as an officer, employee, or otherwise,
shall not be enlarged or otherwise affected by his or her designation as a
Participant under the Plan, and the Company or the applicable Subsidiary
reserves the right to terminate the employment of any Employee at any time.  The adoption of the Plan shall not be deemed
to give any Employee or any other individual any right to be selected as a
Participant or to be granted an Appreciation Award.

 

11.4                           Awards Subject to Foreign Laws.  The
Committee may grant Appreciation Awards to individual Participants who are
subject to the tax and/or other laws of nations other than the United States,
and such Appreciation Awards may have terms and conditions as determined by the
Committee as necessary to comply with applicable foreign laws.  The Committee may take any action that it
deems advisable to obtain approval of such Appreciation Awards by the
appropriate foreign governmental entity; provided, however,
that no such Appreciation Awards may be granted pursuant to this Section 11.4
and no action may be taken which would result in a violation of the Exchange
Act or any other applicable law.

 

11.5                           Governing Law.  The
Plan, all Appreciation Awards granted hereunder, and all actions taken in
connection herewith shall be governed by and construed in accordance with the
laws of the State of Illinois without reference to principles of conflict of
laws, except as superseded by applicable federal law.

 

11.6                           No Fractional Shares.  No
fractional shares of stock shall be issued or delivered pursuant to the Plan or
any Appreciation Award.  The Committee
shall determine whether cash or property shall be issued or paid in lieu of
fractional shares or whether such fractional shares or any rights thereto shall
be forfeited or otherwise eliminated.

 

 

* *
* * *

 

14

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