Document:

exv10wd

 

EXHIBIT 10.D

 

 

EL PASO CGP COMPANY, L.L.C.

(formerly known as El Paso CGP Company)

as Original Company

and

EL PASO CORPORATION

as New Company

and

THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Trustee

THIRTEENTH SUPPLEMENTAL INDENTURE

Dated as of December 31, 2005

to

INDENTURE

Dated as of February 24, 1997

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 
	 	 	Page	
	 	 	 	
	
    
    ARTICLE 1 Relation to Indenture; Definitions

    	 	 	1	 
	 	
    
    Section 1.01.
    Relation to Indenture

    	 	 	1	 
	 	
    
    Section 1.02.
    Definitions

    	 	 	1	 
	 	
    
    Section 1.03.
    General References

    	 	 	2	 
	 
	
    ARTICLE 2 Assumption of Obligations	 	 	2	 
	 
	
    ARTICLE 3 Miscellaneous	 	 	2	 
	 	
    
    Section 3.01.
    Certain Trustee Matters

    	 	 	2	 
	 	
    
    Section 3.02.
    Continued Effect

    	 	 	2	 
	 	
    
    Section 3.03.
    Governing Law

    	 	 	2	 
	 	
    
    Section 3.04.
    Counterparts

    	 	 	2	 

 

     
THIRTEENTH SUPPLEMENTAL INDENTURE, dated as of
December 31, 2005 (this “Supplemental
Indenture”), among
EL PASO CGP COMPANY,
L.L.C., a Delaware limited liability company
(formerly known as El Paso CGP Company, a Delaware
corporation) (the “Original Company”), EL
PASO CORPORATION, a Delaware corporation (the “New
Company”), and THE BANK OF NEW YORK TRUST COMPANY,
N.A., a national banking association (as
successor-in-interest
to The Bank of New York, a New York banking corporation, and
Harris Trust and Savings Bank, a banking corporation organized
under the laws of the State of Illinois), as trustee under the
Indenture referred to below (in such capacity, the
“Trustee”).

RECITALS OF THE ORIGINAL COMPANY AND THE NEW COMPANY

     
WHEREAS, the Original Company and the Trustee are parties to an
Indenture, dated as of February 14, 1997 (the
“Original Indenture”), such Original Indenture,
as amended and supplemented from time to time (including without
limitation pursuant to this Supplemental Indenture), being
referred to herein as the “Indenture”; and

     
WHEREAS, the Original Company proposes to transfer all or
substantially all of its properties and assets as an entirety to
the New Company (the “Asset Transfer”); and

     
WHEREAS, Article 5 of the Indenture provides that the
Original Company shall not transfer all or substantially all of
its properties and assets as an entirety to any person, unless
(among other things) the person which acquires by transfer all
or substantially all of the Original Company’s properties
and assets as an entirety shall expressly assume, by an
indenture supplemental to the Indenture, executed and delivered
to the Trustee, in form reasonably satisfactory to the Trustee,
all the obligations of the Original Company under the Indenture
and the Securities of each Series outstanding
thereunder; and

     
WHEREAS, pursuant to Section 9.01 of the Indenture, the
Original Company and the Trustee may amend or supplement the
Indenture without notice to or consent of any Securityholder to
comply with Article 5 of the Indenture; and

     
WHEREAS, accordingly, this Supplemental Indenture and the
provisions set forth herein are authorized pursuant to
Section 9.01 of the Indenture; and

     
WHEREAS, the execution and delivery of this Supplemental
Indenture has been duly authorized by the parties hereto, and
all other acts necessary to make this Supplemental Indenture a
valid and binding supplement to the Indenture effectively
amending the Indenture as set forth herein have been duly
taken; and

     
NOW, THEREFORE, in consideration of the premises, agreements and
obligations set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree, for the equal and
proportionate benefit of all Holders of the Securities, as
follows:

ARTICLE 1

Relation to Indenture; Definitions

     
Section 1.01.     Relation
to Indenture. With respect to the Securities of each and
every Series outstanding under the Indenture, this Supplemental
Indenture constitutes an integral part of the Indenture.

     
Section 1.02.     Definitions.

     
For all purposes of this Supplemental Indenture, except as
otherwise expressly provided herein, capitalized terms used
herein and not otherwise defined herein shall have the meanings
assigned thereto in the Original Indenture.

     
Section 1.03.     General
References. All references in this Supplemental Indenture to
Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental
Indenture; and the terms “herein”,
“hereof”, “hereunder” and any
other word of similar import refers to this Supplemental
Indenture.

 

ARTICLE 2

Assumption of Obligations

     
Effective upon the consummation of the Asset Transfer, and
pursuant to and in accordance with Sections 5.01 and 5.02
of the Indenture, (i) the New Company hereby expressly
assumes all of the obligations of the Original Company under the
Indenture and all outstanding Securities of each Series and
(ii) the Original Company is hereby relieved of all
obligations and covenants under the Indenture and the Securities
of each Series.

ARTICLE 3

Miscellaneous

     
Section 3.01.     Certain
Trustee Matters. The recitals contained herein shall be
taken as the statements of the Original Company and the New
Company, and the Trustee assumes no responsibility for their
correctness.

     
The Trustee makes no representations as to the validity or
sufficiency of this Supplemental Indenture or the proper
authorization or due execution thereof by the Original Company
or the New Company.

     
Section 3.02.     Continued
Effect. Except as expressly supplemented and amended by this
Supplemental Indenture, the Original Indenture (as supplemented
and amended to date) shall continue in full force and effect in
accordance with the provisions thereof, and the Original
Indenture (as so supplemented and amended, and as further
supplemented and amended by this Supplemental Indenture) is in
all respects hereby ratified and confirmed. This Supplemental
Indenture and all its provisions shall be deemed a part of the
Original Indenture in the manner and to the extent herein and
therein provided.

     
Section 3.03.     Governing
Law. This Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.

     
Section 3.04.     Counterparts.
This instrument may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same
instrument.

(Signature Pages Follow)

 

     
IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed and delivered, all as
of the day and year first above written.

		
	 	
    EL PASO CGP COMPANY, L.L.C.

			
	 	By: 	
    /s/ John J. Hopper

		
	 	
     

	 	
    Name:        John J.
    Hopper

			
	 	Title:	
    Vice President and Treasurer

		
	 	
    EL PASO CORPORATION

			
	 	By: 	
    /s/ John J. Hopper

		
	 	
     

	 	
    Name:        John J.
    Hopper

			
	 	Title:	
    Vice President and Treasurer

		
	 	
    THE BANK OF NEW YORK TRUST 

     COMPANY, N.A.
	 	
    as Trustee

			
	 	By: 	
    /s/ John Stohlmann

		
	 	
     

	 	
    Authorized Signatoryexv10wa

 

Exhibit 10-a

ADC TELECOMMUNICATIONS, INC.

GLOBAL STOCK INCENTIVE PLAN

(as amended and restated through August 1, 2005)

Section 1. Purpose.

     The purposes of the ADC Telecommunications, Inc. Global Stock Incentive Plan (the “Plan”) are
to: (i) aid in maintaining and developing key employees capable of assuring the future success of
ADC Telecommunications, Inc. (the “Company”), and to offer such personnel incentives to put forth
maximum efforts for the success of the Company’s business; (ii) to enhance the Company’s ability to
attract and retain the services of experienced and knowledgeable outside directors; and (iii) to
afford such key employees and outside directors an opportunity to acquire a proprietary interest in
the Company, thereby aligning their interests with the interests of the Company’s shareholders.

Section 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Affiliate” shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which the Company has a
significant equity interest, as determined by the Committee.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Dividend Equivalent or Performance Award granted under the Plan.

     (c) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted under the Plan.

     (d) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

     (e) “Committee” shall mean a committee of the Board of Directors of the Company designated by
such Board to administer the Plan and composed of not less than three directors, each of whom is a
“Non-Employee Director” within the meaning of
Rule 
16b-3.

     (f) “Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

     (g) “Fair Market Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such property determined by
such methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, for purposes of the Plan, the Fair Market Value of Shares on a given
date shall be (i) the last sale price of the Shares as reported on the Nasdaq National Market
System on such date, if the Shares are then quoted on the Nasdaq National Market System or (ii) the
closing price of the Shares on such date on a national securities exchange, if the shares are then
being traded on a national securities exchange.

     (h) “Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code or any successor provision thereto.

 

 

     (i) “Key Employee” shall mean any employee of the Company or any Affiliate who the Committee
determines to be a key employee.

     (j) “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (k) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (l) “Outside Director” shall mean each member of the Board of Directors of the Company that is
not also an employee of the Company or any Affiliate of the Company.

     (m) “Participant” shall mean either a Key Employee or an Outside Director designated to be
granted an Award under the Plan.

     (n) “Performance Award” shall mean any right granted under Section 6(d) of the Plan.

     (o) “Person” shall mean any individual, corporation, partnership, association or trust.

     (p) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

     (q) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share at some future date.

     (r) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation thereto.

     (s) “Shares” shall mean shares of Common Stock, $.20 par value, of the Company or such other
securities or property as may become subject to Awards pursuant to an adjustment made under Section
4(c) of the Plan.

     (t) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

Section 3. Administration.

     (a) Power and Authority of the Committee. The Plan shall be administered by the Committee.
Subject to the terms of the Plan and applicable law, the Committee shall have full power and
authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted
to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with
respect to which payments are to be calculated in connection with) Awards; (iv) determine the terms
and conditions of any Award or Award Agreement; (v) amend the terms and conditions of any Award or
Award Agreement and accelerate the exercisability of Options or the lapse of restrictions relating
to Restricted Stock or Restricted Stock Units; (vi) determine whether, to what extent and under
what circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other
property, or canceled, forfeited or suspended; (vii) determine whether, to what extent and under
what circumstances cash or Shares payable with respect to an Award under the Plan shall be deferred
either automatically or at the election of the holder thereof or the

2

 

Committee; (viii) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan;
(ix) establish, amend, suspend or waive such rules and regulations and appoint such agents as it
shall deem appropriate for the proper administration of the Plan; and (x) make any other
determination and take any other action that the Committee deems necessary or desirable for the
administration of the Plan. Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to the Plan or any Award
shall be within the sole discretion of the Committee, may be made at any time and shall be final,
conclusive and binding upon any Participant, any holder or beneficiary of any Award and any
employee of the Company or any Affiliate.

     (b) Meetings of the Committee. The Committee shall select one of its members as its chairman
and shall hold its meetings at such times and places as the Committee may determine. A majority of
the Committee’s members shall constitute a quorum. All determinations of the Committee shall be
made by not less than a majority of its members. Any decision or determination reduced to writing
and signed by all of the members of the Committee shall be fully effective as if it had been made
by a majority vote at a meeting duly called and held. The Committee may appoint a secretary and
may make such rules and regulations for the conduct of its business as it shall deem advisable.

Section 4. Shares Available for Awards.

     (a) Shares Available. Subject to adjustment as provided in Section 4(c), as of November 1,
2001, the number of Shares available for the issuance of shares under outstanding Awards and the
granting of future Awards under the Plan shall be 21,329,775. If any Shares covered by an Award or
to which an Award relates are not purchased or are forfeited, or if an Award otherwise terminates
without delivery of any Shares or cash payments to be received thereunder, then the number of
Shares counted against the aggregate number of Shares available under the Plan with respect to such
Award, to the extent of any such forfeiture or termination, shall again be available for granting
Awards under the Plan. In addition, any Shares that are used by a Participant as full or partial
payment to the Company of the purchase price of Shares acquired upon exercise of an Option or to
satisfy applicable tax withholding requirements (including social insurance requirements) upon the
exercise or vesting of an Award shall again be available for granting Awards.

     (b) Accounting for Awards. For purposes of this Section 4,

     (i) if an Award entitles the holder thereof to receive or purchase Shares, the number
of Shares covered by such Award or to which such Award relates shall be counted on the date
of grant of such Award against the aggregate number of Shares available for granting Awards
under the Plan; and

     (ii) if an Award entitles the holder to receive cash payments but the amount of such
payments are denominated in or based on a number of Shares, such number of Shares shall be
counted on the date of grant of such Award against the aggregate number of Shares available
for granting Awards under the Plan;

provided, however, that Awards that operate in tandem with (whether granted simultaneously with or
at a different time from), or that are substituted for, other Awards may be counted or not counted
under procedures adopted by the Committee in order to avoid double counting.

3

 

     (c) Adjustments. In the event that the Committee shall determine that any dividend or other
distribution (whether in the form of cash, Shares, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other securities of the Company
or other similar corporate transaction or event affects the Shares such that an adjustment is
determined by the Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Committee
shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of
Shares (or securities or other property) which thereafter may be made the subject of Awards, (ii)
the number and type of Shares (or securities or other property) subject to outstanding Awards and
(iii) the exercise price with respect to any Award; provided, however, that the number of Shares
covered by any Award or to which such Award relates shall always be a whole number.

     (d) Incentive Stock Options. The aggregate number of Shares available as of November 1, 2001
for outstanding Incentive Stock Options and for granting Incentive Stock Options under the Plan
shall not exceed 21,329,775, subject to adjustment as provided in the Plan and Section 422 or 424
of the Code.

Section 5. Eligibility.

     Any Key Employee, including any Key Employee who is an officer or director of the Company or
any Affiliate, and any Outside Director shall be eligible to be designated a Participant; provided,
however, that an Incentive Stock Option shall not be granted to: (1) an Outside Director; or (2) an
employee of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the Company
within the meaning of Section 424(f) of the Code.

Section 6. Awards.

     (a) Options. The Committee is hereby authorized to grant Options to Participants with the
following terms and conditions and with such additional terms and conditions not inconsistent with
the provisions of the Plan as the Committee shall determine:

     (i) Exercise Price. The purchase price per Share purchasable under an Option shall be
determined by the Committee; provided, however, that such purchase price shall not be less
than the average of the high and low daily trading prices (rounded down to the nearest whole
cent) of a Share on the date of grant as reported on the Nasdaq National Market System, if
the Shares are then quoted on the Nasdaq National Market System or (ii) the average of the
high and low daily trading prices (rounded down to the nearest whole cent) of a Share on a
national securities exchange, if the shares are then being traded an a national securities
exchange on the date of grant of such Option.

     (ii) Option Term. The term of each Option shall be fixed by the Committee, but such
term shall not exceed 10 years from the date on which such Option is granted.

     (iii) Time and Method of Exercise. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part and the method or methods by which, and
the form or forms (including, without limitation, cash, Shares, other securities, other
Awards or other property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price)

4

 

     in which payment of the exercise price with respect thereto may be made or deemed to have been made.

     (b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation
Rights to Participants subject to the terms of the Plan and any applicable Award Agreement. A
Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to
receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the date of
exercise (or, if the Committee shall so determine, at any time during a specified period before or
after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as specified
by the Committee, which price shall not be less than the exercise price for an Option as described
in Section 6(a)(i) hereof on the date of grant of the Stock Appreciation Right. Subject to the
terms of the Plan and any applicable Award Agreement, the grant price, term, methods of exercise,
dates of exercise, methods of settlement and any other terms and conditions of any Stock
Appreciation Right shall be as determined by the Committee. The Committee may impose such
conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem
appropriate.

     (c) Restricted Stock and Restricted Stock Units. The Committee is hereby authorized to grant
Awards of Restricted Stock and Restricted Stock Units to Participants with the following terms and
conditions and with such additional terms and conditions not inconsistent with the provisions of
the Plan as the Committee shall determine:

     (i) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be
subject to such restrictions as the Committee may impose (including, without limitation, any
limitation on the right to vote a Share of Restricted Stock or the right to receive any
dividend or other right or property with respect thereto), which restrictions may lapse
separately or in combination at such time or times, in such installments or otherwise as the
Committee may deem appropriate.

     (ii) Stock Certificates. Any Restricted Stock granted under the Plan shall be
evidenced by issuance of a stock certificate or certificates. Such certificate or
certificates shall be registered in the name of the Participant and shall bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock.

     (iii) Forfeiture; Delivery of Shares. Except as otherwise determined by the Committee,
upon termination of employment or upon resignation or removal as an Outside Director (as
determined under criteria established by the Committee) during the applicable restriction
period, all Shares of Restricted Stock and all Restricted Stock Units at such time subject
to restriction shall be forfeited and reacquired by the Company; provided, however, that the
Committee may, when it finds that a waiver would be in the best interest of the Company,
waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or
Restricted Stock Units. Shares representing Restricted Stock that are no longer subject to
restrictions shall be delivered to the holder thereof promptly after the applicable
restrictions lapse or are waived. In the case of Restricted Stock Units, no Shares shall be
issued at the time such Awards are granted. Upon the lapse or waiver of restrictions and
the restricted period relating to Restricted Stock Units evidencing the right to receive
Shares, such Shares shall be issued and delivered to the holders of the Restricted Stock
Units.

     (iv) Limit on Restricted Stock and Restricted Stock Units Awards. Grants of Restricted
Stock and Restricted Stock Units shall be subject to the limitations set forth in Section
6(f) hereof.

5

 

     (d) Performance Awards. The Committee is hereby authorized to grant Performance Awards to
Participants subject to the terms of the Plan and any applicable Award Agreement. A Performance
Award granted under the Plan (i) shall be granted and payable in Shares (including, without
limitation, Restricted Stock) and (ii) shall confer on the holder thereof the right to receive
Shares upon the achievement of such performance goals during such performance periods as the
Committee shall establish. Subject to the terms of the Plan and any applicable Award Agreement,
the performance goals to be achieved during any performance period, the length of any performance
period, the amount of any Performance Award granted and the number of shares to be issued pursuant
to any Performance Award shall be determined by the Committee. Grants of Performance Awards shall
be subject to the limitations set forth in Section 6(f) hereof.

     (e) Dividend Equivalents. The Committee is hereby authorized to grant to Participants
Dividend Equivalents under which such Participants who hold Restricted Stock Units or Performance
Awards shall be entitled to receive payments (in cash or Shares, as determined in the discretion of
the Committee) equivalent to the amount of cash dividends paid by the Company to holders of Shares.
Subject to the terms of the Plan and any applicable Award Agreement, such Dividend Equivalents may
have such terms and conditions as the Committee shall determine.

     (f) Limit on Restricted Stock, Restricted Stock Units and Performance Awards. The maximum
number of Shares under the Plan available for grants of Restricted Stock, Restricted Stock Units
and Performance Awards made from and after March 2, 2004, in the aggregate, shall be 4,285,714
Shares.

     (g) General.

     (i) No Cash Consideration for Awards. Except as otherwise determined by the Committee,
Awards shall be granted for no cash consideration or for such minimal cash consideration as
may be required by applicable law.

     (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with or in substitution
for any other Award or any award granted under any plan of the Company or any Affiliate
other than the Plan. Awards granted in addition to or in tandem with other Awards or in
addition to or in tandem with awards granted under any such other plan of the Company or any
Affiliate may be granted either at the same time as or at a different time from the grant of
such other Awards or awards.

     (iii) Forms of Payment Under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments to be made by the Company or an Affiliate upon the
grant, exercise or payment of an Award may be made in Shares, cash or a combination thereof
as the Committee shall determine, and may be made in a single payment, in installments or on
a deferred basis, in each case in accordance with rules and procedures established by the
Committee. Such rules and procedures may include, without limitation, provisions for the
payment or crediting of reasonable interest on installments or deferred payments.

     (iv) Limits On Transfer of Awards. No Award and no right under any such Award shall be
assignable, alienable, salable or transferable by a Participant otherwise than by will or by
the laws of descent and distribution; provided, however, that a Participant may, in the
manner established by the Committee,

6

 

     (A) designate a beneficiary or beneficiaries to exercise the rights of the
Participant and receive any property distributable with respect to any Award upon
the death of the Participant, or

     (B) transfer a Non-Qualified Stock Option to any “family member” (as such term
is used in Form S-8 under the Securities Act of 1933) of such Participant, provided
that (1) there is no consideration for such transfer or such transfer is effected
pursuant to a domestic relations order in settlement of marital property rights, and
(2) the Non-Qualified Stock Options held by such transferees continue to be subject
to the same terms and conditions (including restrictions or subsequent transfers) as
were applicable to such Non-Qualified Stock Options immediately prior to their
transfer.

Each Award or right under any Award shall be exercisable during the Participant’s lifetime
only by the Participant, by a transferee pursuant to a transfer permitted by clause (B) of
this Section 6(g)(iv), or, if permissible under applicable law, by the Participant’s or such
transferee’s guardian or legal representative. No Award or right under any such Award may
be pledged, alienated, attached or otherwise encumbered, and any purported pledge,
alienation, attachment or encumbrance thereof shall be void and unenforceable against the
Company or any Affiliate.

     (v) Term of Awards. Subject to the terms of the Plan, the term of each Award shall be
for such period as may be determined by the Committee.

     (vi) Rule 16b-3 Six-Month Limitations. To the extent required in order to comply with
Rule 16b-3 only, any equity security offered pursuant to the Plan may not be sold for at
least six months after acquisition, except in the case of death or disability, and any
derivative security issued pursuant to the Plan shall not be exercisable for at least six
months, except in case of death or disability. Terms used in the preceding sentence shall,
for the purposes of such sentence only, have the meanings, if any, assigned or attributed to
them under Rule 16b-3.

     (vii) Restrictions; Securities Exchange Listing. All certificates for Shares delivered
under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the Plan or
the rules, regulations and other requirements of the Securities and Exchange Commission and
any applicable federal, state or foreign securities laws, and the Committee may cause a legend or legends to be placed on any
such certificates to make appropriate reference to such restrictions. If the Shares are
traded on a securities exchange, the Company shall not be required to deliver any Shares
covered by an Award unless and until such Shares have been admitted for trading on such
securities exchange.

     (viii) Award Limitations Under the Plan. No Participant may be granted any Award or
Awards under the Plan, the value of which Award or Awards are based solely on an increase in
the value of Shares after the date of grant of such Award or Awards, for more than 571,428
Shares, in the aggregate, in any one calendar year period beginning with the 1994 calendar
year. The foregoing annual limitation specifically includes the grant of any Awards
representing qualified performance-based compensation, within the meaning of Section 162(m)
of the Code.

7

 

Section 7. Amendment and Termination; Adjustments.

     Except to the extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board of Directors of the Company may amend, alter, suspend,
discontinue or terminate the Plan; provided, however, that, notwithstanding any other provision of
the Plan or any Award Agreement, without the approval of the shareholders of the Company, no such
amendment, alteration, suspension, discontinuation or termination shall be made that:

     (i) absent such approval, would cause Rule 16b-3 to become unavailable with respect to
the Plan;

     (ii) requires the approval of the Company’s shareholders under any rules or regulations
of the National Association of Securities Dealers, Inc. or any securities exchange that are
applicable to the Company; or

     (iii) requires the approval of the Company’s shareholders under the Code in order to
permit Incentive Stock Options to be granted under the Plan.

     (b) Amendments to Awards. The Committee may waive any conditions of or rights of the Company
under any outstanding Award, prospectively or retroactively, subject to Section 7(c) of the Plan.
The Committee may not amend, alter, suspend, discontinue or terminate any outstanding Award,
prospectively or retroactively, without the consent of the Participant or holder or beneficiary
thereof.

     (c) Prohibition on Option Repricing. The Committee shall not reduce the exercise price of any
outstanding Option, whether through amendment, cancellation or replacement grants, or any other
means, without shareholder approval. In accordance with shareholder approval granted on March 4,
2003, the Company offered to exchange certain outstanding Options in accordance with the provisions
set forth on Exhibit A attached hereto and made a part hereof.

     (d) Correction of Defects, Omissions and Inconsistencies. The Committee may correct any
defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner
and to the extent it shall deem desirable to carry the Plan into effect.

Section 8. Income Tax Withholding; Tax Bonuses.

     (a) Withholding. In order to comply with all applicable federal, state or foreign income tax
or social insurance contribution laws or regulations, the Company may take such action as it deems
appropriate to ensure that all applicable federal, state or foreign payroll, withholding, income,
social insurance contributions or other taxes, which are the sole and absolute responsibility of a
Participant, are withheld or collected from such Participant. In order to assist a Participant in
paying all federal, state and foreign taxes to be withheld or collected upon exercise or receipt of
(or the lapse of restrictions relating to) an Award, the Committee, in its discretion and subject
to such additional terms and conditions as it may adopt, may permit the Participant to satisfy such
tax obligation by (i) electing to have the Company withhold a portion of the Shares otherwise to be
delivered upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a
Fair Market Value equal to the amount of such taxes or (ii) delivering to the Company Shares other
than Shares issuable upon exercise or receipt of (or the lapse of restrictions relating to) such
Award with a Fair

8

 

Market Value equal to the amount of such taxes. The election, if any, must be
made on or before the date that the amount of tax to be withheld is determined.

     (b) Tax Bonuses. The Committee, in its discretion, shall have the authority, at the time of
grant of any Award under this Plan or at any time thereafter to approve bonuses to designated
Participants to be paid upon their exercise or receipt of (or the lapse of restrictions relating
to) Awards in order to provide funds to pay all or a portion of federal, state and foreign taxes
due as a result of such exercise or receipt (or the lapse of such restrictions). The Committee
shall have full authority in its discretion to determine the amount of any such tax bonus.

Section 9. General Provisions.

     (a) No Rights to Awards. No Key Employee, Participant or other Person shall have any claim to
be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Key
Employees, Participants or holders or beneficiaries of Awards under the Plan. The terms and
conditions of Awards need not be the same with respect to different Participants.

     (b) Delegation. The Committee may delegate to one or more officers of the Company or any
affiliate or a committee of such officers the authority, subject to such terms and limitations as
the Committee shall determine, to grant Awards to Key Employees who are not officers or directors
of the Company for purposes of Section 16 of the Securities Exchange Act of 1934, as amended.

     (c) Terms of Awards. The specific terms of an Award pursuant to the Plan shall be set forth
in an Award Agreement duly executed (by manual, facsimile or electronic signature) on behalf of the
Company.

     (d) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent
the Company or any Affiliate from adopting or continuing in effect other or additional compensation
arrangements, and such arrangements may be either generally applicable or applicable only in
specific cases.

     (e) No Right to Employment or Directorship. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or
any Affiliate or any right to remain as a member of the Board of Directors, as the case may be. In
addition, the Company or an Affiliate may at any time dismiss a Participant from employment (or
remove an Outside Director), free from any liability or any claim under the Plan, unless otherwise
expressly provided in the Plan or in any Award Agreement.

     (f) Governing Law. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws of the State of
Minnesota.

     (g) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan or any Award
under any law deemed applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or deemed amended without,
in the determination of the Committee, materially altering the purpose or intent of the Plan or the
Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the
Plan or any such Award shall remain in full force and effect.

9

 

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to
receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any Affiliate.

     (i) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash shall be paid in lieu of any
fractional Shares or whether such fractional Shares or any rights thereto shall be canceled,
terminated or otherwise eliminated.

     (j) Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 10. Effective Date of the Plan.

     The Plan shall be effective as of the date of its approval by the shareholders of the Company.

Section 11. Term of the Plan.

     Awards shall be granted under the Plan during a period commencing February 26, 1991, the date
the Plan was approved by the shareholders of the Company, through March 2, 2009, the date to which
the shareholders of the Company extended the expiration date of the Plan. However, unless
otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore
granted may extend beyond the ending date of the period stated above, and the authority of the
Committee provided for hereunder with respect to the Plan and any Awards, and the authority of the
Board of Directors of the Company to amend the Plan, shall extend beyond the end of such period.

10

 

EXHIBIT A

(The values and share amounts reflected herein have not been adjusted for the Reverse Stock Split 

approved by the Company’s Board of Directors and effective on May 10, 2005)

     The Company may offer, on a one-time basis, to exchange outstanding Options with an
exercise price per share equal to or greater than $4.00 and an expiration date on or after January
1, 2004, whether or not such options were granted under the Plan (the “Eligible Options”), other
than Options granted to the Company’s five most highly compensated executive officers named in the
proxy statement for the Company’s 2003 Annual Meeting of Shareholders, members of the Board of
Directors, former employees, retirees and such employees in countries outside the United States as
may be deemed ineligible for the exchange program, for replacement Options (“Replacement Options”)
to be granted under the Plan on a date that is at least six months and one day from the latest date
on which an Eligible Option is validly surrendered. The Replacement Options will have an exercise
price as described in Section 6(a)(i) of the Plan.

     The exchange ratios for shares covered by Eligible Options surrendered in exchange for shares
covered by Replacement Options shall be as follows, assuming a fair market value of the Company’s
Common Stock on the date of commencement of the stock option exchange program of $1.00, $2.00,
$3.00, $4.00, $5.00 or $7.50 per share. For purposes of calculating the exchange ratios, the fair
market value of the Common Stock will be the average of the closing prices of the Common Stock over
a period of 20 consecutive trading days ending no earlier than 45 days and no later than 25 days
prior to the commencement of the exchange program (the “Current Stock Price”).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current	 	$1.00/share	 	$2.00/share	 	$3.00/share	 	$4.00/share	 	$5.00/share	 	$7.50/share
	Tier	 	Exercise Price	 	Exchange Ratio	 	Exchange Ratio	 	Exchange Ratio	 	Exchange Ratio	 	Exchange Ratio	 	Exchange Ratio
	1
	 	$	4.00 - 5.49	 	 	 	2.00 to 1	 	 	 	1.50 to 1	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	2
	 	$	5.50 - 7.99	 	 	 	3.00 to 1	 	 	 	2.00 to 1	 	 	 	1.75 to 1	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	3
	 	$	8.00 - 14.99	 	 	 	6.00 to 1	 	 	 	3.25 to 1	 	 	 	2.25 to 1	 	 	 	2.00 to 1	 	 	 	1.75 to 1	 	 	 	N/A	 
	4
	 	$15.00 or higher	 	 	11.25 to 1	 	 	 	5.50 to 1	 	 	 	3.75 to 1	 	 	 	3.00 to 1	 	 	 	2.75 to 1	 	 	 	2.00 to 1	 

     If the Current Stock Price is between the Current Stock Prices listed in the table above,
the final exchange ratios will be determined by interpolating between these prices and rounding to
the nearest .25 of a share. If the actual Current Stock Price is below $1.00 per share, the
exchange ratios will be increased appropriately. The exchange program will be cancelled in its
entirety if the Current Stock Price is equal to or greater than $7.50 per share.

     To participate in the stock option exchange program, an employee must surrender all of the
Eligible Options issued to such employee with an exercise price at or above the lowest tier
exercise price of Eligible Options the employee chooses to surrender.

     Each Replacement Option shall be a Non-Qualified Stock Option; shall vest 25% on the six-month
anniversary of the date of grant, with an additional 25% vesting at the end of each subsequent
six-month period; and shall have a term of seven years from the date of grant. All other terms of
the Replacement Options shall be consistent with the Company’s standard terms for Non-Qualified
Stock Options granted under the Plan.

11

 

     All other terms and conditions of the stock option exchange program shall be determined in the
sole discretion of the Board of Directors or the Compensation Committee.

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]