Document:

EX-10.9

 

Exhibit 10.9

November 18, 2005

Mr. John
R. Price 
3144 Granite Road  

Woodstock, Maryland 21163

Dear John:

It is with pleasure that I confirm our offer of employment as President and Chief Executive Officer
at the Federal Home Loan Bank of Pittsburgh. You are being offered a monthly salary of $41,667;
and your start date will be January 2, 2006. In addition to your base salary and standard benefit
plans, this offer includes the following:

	•	 	Effective January 2, 2006 participation in the Bank’s Annual Incentive Compensation Program
at an eligibility level of: threshold, 20%; target, 35%; and maximum, 50%.

	•	 	Effective January 2, 2006 participation in the Bank’s Long-Term Incentive Compensation
Program at an annualized eligibility level of: threshold, 12.5%; target, 25%; and maximum,
50%.

	•	 	Twenty vacation days and five flex days annually.

	•	 	Participation in the Bank’s Supplemental Executive Retirement Plan and Supplemental Thrift Plan.

	•	 	Use of a Bank-owned automobile up to a value of $45,000 and reimbursement of parking expenses.

	•	 	Business club membership.

	•	 	Relocation costs that include closing costs for selling and purchasing a home; house hunting
trips; house visitations to your current residence up to six months; temporary living
accommodations up to six months; moving and storage of all household furnishings and personal
belongings; and $50,000 for incidental expenses associated with the relocation of you and your
family. This offer also includes gross up of all taxable relocation expenses.

John, in the event that your employment is severed without cause, we offer you a severance package
of 12 months’ base salary continuation and medical coverage for the length of the severance.

Please sign and return this original letter to indicate your acceptance of this offer; a copy of
this letter is enclosed for your records.

On behalf of the Board of Directors, we welcome you to your new role and look forward to your
leadership of the Federal Home Loan Bank of Pittsburgh.

If you have any questions, please feel free to contact me at 302-571-7294 (office), 302-652-1375
(home) or Jackie Heidelberg. Her phone number is 412-288-2831 (office) or 412-310-7207 (cell).

Sincerely,

/s/
Marvin N. Schoenhals       

Marvin N. Schoenhals 

Chairman, Board of Directors

I accept the position and terms offered in this letter.

	 	 	 
	/s/ John R. Price

	 	nov 21st, 2005
	 

	 	 
	Signature

	 	Date
	 
	601
Grant Street • Pittsburgh, PA 15219-4455 • 412/288-3400
	 	 

1exv4w3

 

Exhibit 4.3

USN CORPORATION 2006 EQUITY COMPENSATION PLAN

     1. Purpose. The purpose of the USN Corporation 2006 Equity Compensation Plan is to provide
officers, other employees and directors of, and consultants to, USN Corporation and any of its
Subsidiaries an incentive (a) to enter into and remain in the service of the Company and its
Subsidiaries, (b) to enhance the long-term performance of the Company and its Subsidiaries, and (c)
to acquire a proprietary interest in the success of the Company and its Subsidiaries.

     2. Definitions. Wherever the following capitalized terms are used in the Plan, they shall
have the meanings specified below:

     “Award” means an award of a Stock Option, Stock Appreciation Right, Restricted Stock
Award or Restricted Stock Unit Award, Performance Share Award or Performance Unit Award
granted under the Plan.

     “Award Agreement” means a written or electronic agreement entered into between the
Company and a Participant setting forth the terms and conditions of an Award granted to a
Participant.

     “Board” means the Board of Directors of the Company.

     “Cause” means termination of Participant’s employment for “cause” as defined in any
employment or severance agreement the Participant may have with the Company or a Subsidiary
or, if no such agreement exists, unless otherwise provided in a particular Award Agreement,
“cause” means (a) conviction or pleading guilty or no contest to any crime (whether or not
involving the Company or any of its Subsidiaries) constituting a felony in the jurisdiction
involved; (b) engaging in any substantiated act involving moral turpitude; (c) engaging in
any act which, in each case, subjects, or if generally known would subject, the Company or
any of its Subsidiaries to public ridicule or embarrassment; (d) material violation of the
Company’s or any of its Subsidiaries’ policies, including, without limitation, those
relating to sexual harassment or the disclosure or misuse of confidential information; (e)
serious neglect or misconduct in the performance of the grantee’s duties for the Company or
any of its Subsidiaries or willful or repeated failure or refusal to perform such duties; in
each case as determined by the Committee, which determination will be final, binding and
conclusive.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Committee” means the Compensation Committee of the Board, or another committee of the
Board appointed by the Board to administer the Plan.

     “Company” means USN Corporation, a Colorado corporation.

     “Date of Grant” means the date on which an Award under the Plan is made by the
Committee, or such later date as the Committee may specify to be the effective date of an
Award.

 

 

     “Disability” means termination of Participant’s employment for “disability” as defined
in any employment or severance agreement the Participant may have with the Company or a
Subsidiary or, if no such agreement exists, unless otherwise provided in a particular Award
Agreement, a Participant being considered “disabled” within the meaning of Section
409A(a)(2)(C) of the Code.

     “Eligible Person” means any person who is an employee or consultant of the Company or
any Subsidiary (including any key employee of an entity that develops products that are
intended to be published or distributed by the Company or a Subsidiary) or any person to
whom an offer of employment with the Company or any Subsidiary is extended, as determined by
the Committee, or any person who is a Nonemployee Director.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” of a Share as of a given date shall be the closing sales prices of
the Shares on such date on the principal national securities exchange on which such Shares
are listed or admitted to trading, or, if such Shares are not so listed or admitted to
trading, the average of the per Share closing bid price and per Share closing asked price on
such date as quoted on the NASDAQ National List, the NASDAQ Supplemental List or such other
market in which such prices are regularly quoted, or, if there have been no published bid or
asked quotations with respect to Shares on such date, the Fair Market Value shall be the
value established by the Committee in good faith, and, in the case of an Incentive Stock
Option, in accordance with Section 422 of the Code.

     “Incentive Stock Option” means a Stock Option granted under Section 6 hereof that is
intended to meet the requirements of Section 422 of the Code and the regulations thereunder.

     “Nonemployee Director” means any member of the Board who is not an employee or officer
of the Company.

     “Nonqualified Stock Option” means a Stock Option granted under Section 6 hereof that is
not an Incentive Stock Option.

     “Participant” means any Eligible Person who holds an outstanding Award under the Plan.

     “Performance Share Award” means a contractual right granted to an Eligible Person under
Section 10 hereof representing notional unit interests equal in value to a Share that is
forfeitable until the achievement of pre-established performance objectives over a
performance period.

     “Performance Unit Award” means a contractual right granted to an Eligible Person under
Section 10 hereof representing notional unit interests equal to a pre-determined dollar
amount that is forfeitable until the achievement of pre-established performance objectives
over a performance period.

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     “Plan” means the USN Corporation 2006 Equity Compensation Plan as set forth herein, as
amended from time to time.

     “Qualified Performance Award” means a Restricted Stock Award, Restricted Stock Unit
Award, or Performance Share Award or Performance Unit Award intended to comply with Section
11 hereof.

     “Restricted Stock Award” means a grant of Shares to an Eligible Person under Section 8
hereof that are issued subject to such vesting and transfer restrictions as the Committee
shall determine and set forth in an Award Agreement.

     “Restricted Stock Unit Award” means a contractual right granted to an Eligible Person
under Section 9 hereof representing notional unit interests equal in value to a Share to be
paid or distributed at such times, and subject to such conditions, as set forth in the Plan
and the applicable Award Agreement.

     “Retirement” means termination of Participant’s employment by reason of “retirement” as
defined in any employment or severance agreement the Participant may have with the Company
or a Subsidiary or, if no such agreement exists, unless otherwise provided in a particular
Award Agreement, “retirement” means a termination of the Participant’s Service after the
Participant reaches the age of 62.

     “Service” means a Participant’s employment or service with the Company or any
Subsidiary or a Participant’s service as a Nonemployee Director with the Company, as
applicable.

     “Share” means a share of the Company’s common stock, par value $.0001, subject to
adjustment as provided in Section 4.3 hereof.

     “Stock Appreciation Right” means a contractual right granted to an Eligible Person
under Section 7 hereof entitling such Eligible Person to receive a payment, representing the
difference between the base price per share of the right and the Fair Market Value of a
Share, at such time, and subject to such conditions, as are set forth in the Plan and the
applicable Award Agreement.

     “Stock Option” means a contractual right granted to an Eligible Person under Section 6
hereof to purchase Shares at such time and price, and subject to such conditions, as are set
forth in the Plan and the applicable Award Agreement.

     “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the time as of which a determination is being
made, each corporation other than the last corporation in the unbroken chain owns stock
possessing fifty percent or more of the total combined voting power of all classes of stock
in another corporation in the chain.

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     3. Administration.

     3.1. Committee Members. The Plan shall be administered by a Committee comprised of no fewer
than two members of the Board; provided, however, that (a) with respect to any Award that is
intended to satisfy the conditions of Rule 16b-3 under Exchange Act the term “Committee” shall
refer to a committee of two or more “non-employee directors” as determined for purposes of applying
Exchange Act Rule 16b-3; and (b) with respect to any Award that is intended to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code, the term
“Committee” shall refer to a committee of two or more “outside directors” as determined for
purposes of applying Section 162(m) of the Code. Subject to the provisions of Section 16 of the
Exchange Act and Section 162(m) of the Code, any power of the Committee may also be exercised by
the Board. No member of the Committee shall be liable for any action or determination made in good
faith by the Committee with respect to the Plan or any Award. In the absence of a Committee, the
Board will administer the Plan and all references to the “Committee” will be deemed to refer to the
“Board”.

     3.2. Committee Authority. The Committee shall have such powers and authority as may be
necessary or appropriate for the Committee to carry out its functions as described in the Plan.
Subject to the express limitations of the Plan, the Committee shall have authority in its sole
discretion to determine the Eligible Persons to whom, and the time or times at which, Awards may be
granted, the number of shares, units or other rights subject to each Award, the exercise, base or
purchase price of an Award (if any), the time or times at which an Award will become vested,
exercisable or payable, the performance goals and other conditions affecting an Award, the duration
of the Award, and all other terms of the Award. The Committee shall also have discretionary
authority to interpret the Plan, to make factual determinations under the Plan, and to make all
other determinations necessary or advisable for Plan administration, including, without limitation,
to correct any defect, to supply any omission or to reconcile any inconsistency in the Plan or any
Award Agreement. The Committee may prescribe, amend, and rescind rules and regulations relating to
the Plan. The Committee’s determinations under the Plan need not be uniform and may be made by the
Committee selectively among Participants and Eligible Persons, whether or not such persons are
similarly situated. The Committee shall consider such factors as it deems relevant in making its
interpretations, determinations and actions under the Plan including, without limitation, the
recommendations or advice of any officer or employee of the Company or such attorneys, consultants,
accountants or other advisors as it may select. All interpretations, determinations and actions by
the Committee shall be final, conclusive, and binding upon all parties.

     3.3. Delegation of Authority. The Committee may by resolution authorize one or more
officers of the Company to perform any or all things that the Committee is authorized and empowered
to do or perform under the Plan; provided, however, that the resolution so authorizing such officer
or officers shall specify the total number of Awards (if any) such officer or officers may award
pursuant to such delegated authority, and any such Award shall be subject to the form of Award
Agreement theretofore approved by the Committee. In no event shall any such delegation of
authority be permitted with respect to Awards to any members of the Board or to any Eligible Person
who is subject to Rule 16b-3 under the Exchange Act or Section 162(m) of the Code. The Committee
shall also be permitted to delegate, to any appropriate officer or employee of the Company,
responsibility for performing certain ministerial functions under the

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Plan. In the event that the Committee’s authority is delegated to officers or employees in
accordance with the foregoing, all provisions of the Plan relating to the Committee shall be
interpreted in a manner consistent with the foregoing by treating any such reference as a reference
to such officer or employee for such purpose. Any action undertaken in accordance with the
Committee’s delegation of authority hereunder shall have the same force and effect as if such
action was undertaken directly by the Committee and shall be deemed for all purposes of the Plan to
have been taken by the Committee.

     3.4. Grants to Nonemployee Directors. Any Awards or formula for granting Awards under the
Plan made to Nonemployee Directors shall be approved by the Board. With respect to awards to such
directors, all rights, powers and authorities vested in the Committee under the Plan shall instead
be exercised by the Board, and all provisions of the Plan relating to the Committee shall be
interpreted in a manner consistent with the foregoing by treating any such reference as a reference
to the Board for such purpose.

     4. Shares Subject to the Plan.

     4.1. Maximum Share Limitations. Subject to adjustment pursuant to Section 4.3 hereof, the
maximum aggregate number of Shares that may be issued under the Plan shall be 5,000,000 shares.
Shares issued and sold under the Plan may be either authorized but unissued shares or shares held
in the Company’s treasury. To the extent that any Award involving the issuance of Shares is
forfeited, cancelled, returned to the Company for failure to satisfy vesting requirements or other
conditions of the Award, or otherwise terminates without an issuance of Shares being made
thereunder, the Shares covered thereby will no longer be counted against the maximum share
limitations and may again be made subject to Awards under the Plan pursuant to such limitations.
In addition, awards that are settled in cash and not in Shares shall not be counted against the
maximum share limitations.

     4.2. Individual Participant Limitations. The maximum number of Shares that may be subject
to Stock Options, Stock Appreciation Rights and Qualified Performance Awards denominated in shares
in the aggregate granted to any one Participant during any calendar year shall be 1,000,000 shares.
The maximum payment with respect to Qualified Performance Awards denominated in cash in the
aggregate granted to any one Participant during any calendar year shall be $1,250,000. The
foregoing limitations shall each be applied on an aggregate basis taking into account Awards
granted to a Participant under the Plan as well as awards of the same type granted to a Participant
under any other equity-based compensation plan of the Company or any Subsidiary.

     4.3. Adjustments. If there shall occur any increase or reduction in the number of Shares,
or any change (including, but not limited to, in the case of a spin-off, dividend or other
distribution in respect of Shares, a change in value) in the outstanding Shares or exchange of
Shares for a different number or kind of shares or other securities of the Company or another
corporation, by reason of any recapitalization, reclassification, stock split, reverse stock split,
dividend or distribution of securities, property or cash (other than regular, quarterly cash
dividends), or other distribution with respect to Shares, or any merger, reorganization,
consolidation, combination, change in control, spin-off or other similar corporate change, or any
other change affecting the Shares, the Committee may, in the manner and to the extent that it

5

 

deems appropriate and equitable to the Participants and consistent with the terms of the Plan,
cause an adjustment to be made in (a) the maximum number and kind of shares provided in Section 4.1
and Section 4.2 hereof, (b) the number and kind of Shares, units, or other rights subject to then
outstanding Awards, (c) the exercise or base price for each share or unit or other right subject to
then outstanding Awards, and (d) any other terms of an Award that are affected by the event, which
adjustments, in the case of clauses (b), (c) and (d), need not be uniform as between different
Awards or different types of Awards. Any such adjustments may be designed to comply with the
requirements of Section 409A of the Code and, in the case of Incentive Stock Options, Section 424
of the Code. Without limiting the generality of the foregoing, in the event there shall be any
change in the number or kind of outstanding Shares, or any stock or other securities into which
such Shares shall have been changed, or for which it shall have been exchanged, by reason of a
change in control, merger, consolidation or otherwise, the Committee may, in its sole discretion,
(i) provide for the assumption or substitution of, or adjustment to, each outstanding Award; (ii)
accelerate the vesting of and terminate any restrictions on outstanding Awards; (iii) provide for
cancellation of accelerated Awards that are not exercised within a time prescribed by the
Administrator; or (iv) provide for the cancellation of any outstanding Awards in exchange for a
cash payment to the holders thereof. No right to purchase fractional shares shall result from any
adjustment in Awards pursuant to this Section 4.3. In case of any such adjustment, the Shares
subject to the Award shall be rounded down to the nearest whole share. The Company shall notify
Participants holding Awards subject to any adjustments pursuant to this Section 4.3 of such
adjustment, but (whether or not notice is given) such adjustment shall be effective and binding for
all purposes of the Plan.

     5. Participation and Awards.

     5.1. Designations of Participants. All Eligible Persons are eligible to be designated by
the Committee to receive Awards and become Participants under the Plan. The Committee has the
authority, in its discretion, to determine and designate from time to time those Eligible Persons
who are to be granted Awards, the types of Awards to be granted and the number of Shares or units
subject to Awards granted under the Plan. In selecting Eligible Persons to be Participants and in
determining the type and amount of Awards to be granted under the Plan, the Committee shall
consider any and all factors that it deems relevant or appropriate.

     5.2. Determination of Awards. The Committee shall determine the terms and conditions of all
Awards granted to Participants in accordance with its authority under Section 3.2 hereof. An Award
may consist of one type of right or benefit hereunder or of two or more such rights or benefits
granted in tandem or in the alternative. In the case of any fractional share or unit resulting
from the grant, vesting, payment or crediting of dividends or dividend equivalents under an Award,
the Committee shall have the discretionary authority to (a) disregard such fractional share or
unit, (b) round such fractional share or unit to the nearest lower or higher whole share or unit,
or (c) convert such fractional share or unit into a right to receive a cash payment. To the extent
deemed necessary by the Committee, an Award shall be evidenced by an Award Agreement as described
in Section 13.1 hereof.

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     6. Stock Options.

     6.1. Grant of Stock Options. A Stock Option may be granted to any Eligible Person selected
by the Committee. Subject to the provisions of Section 6.8 hereof and Section 422 of the Code,
each Stock Option shall be designated, in the discretion of the Committee, as an Incentive Stock
Option or as a Nonqualified Stock Option.

     6.2. Exercise Price. The exercise price per share of a Stock Option shall not be less than
100 percent of the Fair Market Value of a Share on the Date of Grant.

     6.3. Vesting of Stock Options. The Committee shall in its discretion prescribe the time or
times at which, or the conditions upon which, a Stock Option or portion thereof shall become vested
and/or exercisable, and may accelerate the vesting or exercisability of any Stock Option at any
time. The requirements for vesting and exercisability of a Stock Option may be based on the
continued Service of the Participant with the Company or its Subsidiaries for a specified time
period (or periods) or on the attainment of specified performance goals established by the
Committee in its discretion.

     6.4. Term of Stock Options. The Committee shall in its discretion prescribe in an Award
Agreement the period during which a vested Stock Option may be exercised, provided that the maximum
term of a Stock Option shall be ten years from the Date of Grant.

     6.5. Termination of Service. Subject to Section 6.8 hereof with respect to Incentive Stock
Options, the Stock Option of any Participant whose Service with the Company or one of its
Subsidiaries is terminated for any reason shall terminate on the earlier of (a) the date that the
Stock Option expires in accordance with its terms or (b) unless otherwise provided in an Award
Agreement, the expiration of the applicable time period following termination of Service, in
accordance with the following: (i) 12 months if Service ceased due to death, Disability or
Retirement, (ii) 90 days if Service ceased as a result of a termination by the Company without
Cause or (iii) 30 days if Service ceased for any other reason; provided that, in the event of a
termination for Cause such Participant’s right to any further payments, vesting or exercisability
with respect to any Award shall be forfeited in its entirety in accordance with Section 12.2. The
Committee shall have authority to determine in each case whether an authorized leave of absence
shall be deemed a termination of Service for purposes hereof, as well as the effect of a leave of
absence on the vesting and exercisability of a Stock Option. Unless otherwise provided by the
Committee, if an entity ceases to be a Subsidiary of, or to provide services (including developing
products) to, the Company or otherwise ceases to be qualified under the Plan or if all or
substantially all of the assets of a Subsidiary of the Company or an entity that provides services
to the Company are conveyed (other than by encumbrance), such cessation or action, as the case may
be, shall be deemed for purposes hereof to be a termination of the Service of all of the employees
of the Subsidiary or other entity (unless at the time of the event they become employees of the
Company).

     6.6. Stock Option Exercise. Subject to such terms and conditions as shall be specified in
an Award Agreement, a Stock Option may be exercised in whole or in part at any time during the term
thereof by notice in the form required by the Company, together with payment of the aggregate
exercise price and applicable withholding tax. Payment of the exercise

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price shall be made in the manner set forth in the Award Agreement, which unless otherwise
provided by the Committee, may include: (a) in cash or by cash equivalent acceptable to the
Committee, (b) by payment in Shares valued at the Fair Market Value of such shares on the date of
exercise, (c) to the extent permitted by law, through an open-market, broker-assisted sales
transaction pursuant to which the Company is promptly delivered the amount of proceeds necessary to
satisfy the exercise price, (d) by a combination of the methods described above or (e) by such
other method as may be approved by the Committee and set forth in the Award Agreement.

     6.7. Limited Transferability of Nonqualified Stock Options. All Stock Options shall be
nontransferable except (a) upon the Participant’s death, in accordance with Section 13.2 hereof or
(b) in the case of Nonqualified Stock Options only, for the transfer of all or part of the Stock
Option to a Participant’s “family member” (as defined for purposes of the Form S-8 registration
statement under the Securities Act of 1933), as may be approved by the Committee in its discretion.
The transfer of a Nonqualified Stock Option may be subject to such terms and conditions as the
Committee may in its discretion impose from time to time. Subsequent transfers of a Nonqualified
Stock Option shall be prohibited other than in accordance with Section 13.2 hereof.

     6.8. Additional Rules for Incentive Stock Options. Notwithstanding anything to the contrary
in this Section 6, in the case of the grant of a Stock Option intending to qualify as an Incentive
Stock Option, if the Participant owns stock possessing more than 10% of the combined voting power
of all classes of stock of the Company (a “10% Stockholder”), the purchase price of such Stock
Option must be at least 110% of the Fair Market Value of a Share on the date of grant and the
Option must expire within a period of not more than five years from the date of grant.
Notwithstanding anything in this Section 6 to the contrary, Stock Options designated as Incentive
Stock Options shall not be eligible for treatment under the Code as Incentive Stock Options to the
extent that either (a) the aggregate Fair Market Value of the Shares (determined as of the time of
grant) with respect to which such Stock Options are exercisable for the first time by the
Participant during any calendar year (under all plans of the Company and any Subsidiary) exceeds
$100,000, taking Stock Options into account in the order in which they were granted, or (b) such
Stock Options remain exercisable and unexercised for more than 3 months following a termination of
employment (or such other period of time provided in Section 422 of the Code).

     6.9. Repricing Prohibited. Subject to the anti-dilution adjustment provisions contained in
Section 4.3 hereof, without the prior approval of the Company’s stockholders, neither the Committee
nor the Board shall cause the cancellation, substitution or amendment of a Stock Option that would
have the effect of reducing the exercise price of a Stock Option previously granted under the Plan,
or otherwise approve any modification to a Stock Option that would be treated as a “repricing”
under any then applicable rules, regulations or listing requirements.

     7. Stock Appreciation Rights.

     7.1. Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any
Eligible Person selected by the Committee. Stock Appreciation Rights shall be exercisable or
payable at such time or times and upon such conditions as may be approved by the

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Committee, provided that the Committee may accelerate the exercisability or payment of a Stock
Appreciation Right at any time.

     7.2. Freestanding Stock Appreciation Rights. A Stock Appreciation Right may be granted
without any related Stock Option (a “freestanding SAR”) and may be subject to such vesting and
exercisability requirements as are specified by the Committee and described in an Award Agreement.
Such vesting and exercisability requirements may be based on the continued Service of the
Participant with the Company or its Subsidiaries for a specified time period (or periods) or on the
attainment of specified performance goals established by the Committee in its discretion. A
freestanding SAR will be exercisable or payable at such time or times as determined by the
Committee, provided that the maximum term of a freestanding SAR shall be ten years from the Date of
Grant. The base price of a freestanding SAR shall be determined by the Committee in its sole
discretion; provided, however, that the base price per share of any such freestanding SAR shall not
be less than 100 percent of the Fair Market Value of a Share on the Date of Grant.

     7.3. Tandem Stock Appreciation Rights. A Stock Appreciation Right may be granted in tandem
with a Stock Option (a “tandem SAR”), either at the time of grant or at any time thereafter during
the term of the Stock Option. A tandem SAR will entitle the holder to elect, as to all or any
portion of the number of shares subject to such Stock Option/Stock Appreciation Right, to exercise
either the Stock Option or the Stock Appreciation Right, resulting in the reduction of the
corresponding number of shares subject to the right so exercised as well as the tandem right not so
exercised. A tandem SAR shall have a base price per Share equal to the per Share exercise price of
the related Stock Option, will become vested and exercisable at the same time or times that the
related Stock Option becomes vested and exercisable, and will expire no later than the time at
which the related Stock Option expires.

     7.4. Payment of Stock Appreciation Rights. A Stock Appreciation Right will entitle the
holder, upon exercise or other payment of the Stock Appreciation Right, as applicable, to receive
an amount determined by multiplying: (i) the excess of the Fair Market Value of a Share on the date
of exercise or payment of the Stock Appreciation Right over the base price of such Stock
Appreciation Right, by (ii) the number of Shares as to which such Stock Appreciation Right is
exercised or paid. Payment of the amount determined under the foregoing may be made, as approved
by the Committee and set forth in the Award Agreement, in Shares valued at their Fair Market Value
on the date of exercise or payment, in cash, or in a combination of Shares and cash, subject to
applicable tax withholding requirements.

     7.5. Repricing Prohibited. Subject to the anti-dilution adjustment provisions contained in
Section 4.3 hereof, without the prior approval of the Company’s stockholders, evidenced by a
majority of votes cast, neither the Committee nor the Board shall cause the cancellation,
substitution or amendment of a Stock Appreciation Right that would have the effect of reducing the
base price of such a Stock Appreciation Right previously granted under the Plan, or otherwise
approve any modification to such a Stock Appreciation Right that would be treated as a “repricing”
under the then applicable rules, regulations or listing requirements.

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     8. Restricted Stock Awards.

     8.1. Grant of Restricted Stock Awards. A Restricted Stock Award may be granted to any
Eligible Person selected by the Committee. The Committee may require the payment by the
Participant of a specified purchase price in connection with any Restricted Stock Award.

     8.2. Vesting Requirements. The restrictions imposed on shares granted under a Restricted
Stock Award shall lapse in accordance with the vesting requirements specified by the Committee in
the Award Agreement. Such vesting requirements may be based on the continued Service of the
Participant with the Company or its Subsidiaries for a specified time period (or periods) or on the
attainment of specified performance goals established by the Committee in its discretion, which may
include Qualifying Performance Criteria. If the vesting requirements of a Restricted Stock Award
shall not be satisfied, the Award shall be forfeited and the Shares subject to the Award shall be
returned to the Company. Notwithstanding the foregoing, the Committee may accelerate the vesting
of a Restricted Stock Award at any time.

     8.3. Restrictions. Shares granted under any Restricted Stock Award may not be transferred,
assigned or subject to any encumbrance, pledge, or charge until all applicable restrictions are
removed or have expired. Failure to satisfy any applicable restrictions shall result in the
subject shares of the Restricted Stock Award being forfeited and returned to the Company. The
Committee may require in an Award Agreement that certificates representing the shares granted under
a Restricted Stock Award bear a legend making appropriate reference to the restrictions imposed,
and that certificates representing the shares granted or sold under a Restricted Stock Award will
remain in the physical custody of an escrow holder until all restrictions are removed or have
expired.

     8.4. Rights as Stockholder. Subject to the foregoing provisions of this Section 8 and the
applicable Award Agreement, the Participant shall have all rights of a stockholder with respect to
the shares granted to the Participant under a Restricted Stock Award, including the right to vote
the shares and receive all dividends and other distributions paid or made with respect thereto.
The Committee may provide in an Award Agreement that dividends and distributions with regard to
unvested Shares will be held by the Company or an escrow agent and paid to the Participant only at
the times of vesting or other payment of the Restricted Stock Award.

     8.5. Section 83(b) Election. If a Participant makes an election pursuant to Section 83(b)
of the Code with respect to a Restricted Stock Award, the Participant shall file, within 30 days
following the Date of Grant, a copy of such election with the Company and with the Internal Revenue
Service, in accordance with the regulations under Section 83 of the Code. The Committee may
provide in an Award Agreement that the Restricted Stock Award is conditioned upon the Participant’s
making or refraining from making an election with respect to the Award under Section 83(b) of the
Code.

     8.6. Qualified Performance Award. To the extent a Restricted Stock Award is designated as a
Qualified Performance Award, it shall be subject to the restrictions set forth in Section 11.

10

 

     9. Restricted Stock Unit Awards.

     9.1. Grant of Restricted Stock Unit Awards. A Restricted Stock Unit Award may be granted to
any Eligible Person selected by the Committee. The value of each Restricted Stock Unit will be
equal to the Fair Market Value of a Share on the applicable date or time period of determination,
as specified by the Committee. A Restricted Stock Unit Award shall be subject to such restrictions
and conditions as the Committee shall determine. A Restricted Stock Unit Award may be granted
together with a dividend equivalent right with respect to the Shares subject to the Award, which
may be accumulated and may be deemed reinvested in additional stock units, as determined by the
Committee in its discretion.

     9.2. Vesting Requirements. On the Date of Grant, the Committee shall in its discretion
determine any vesting requirements with respect to a Restricted Stock Unit Award, which shall be
set forth in the Award Agreement. Such vesting requirements may be based on the continued Service
of the Participant with the Company or its Subsidiaries for a specified time period (or periods) or
on the attainment of specified performance goals established by the Committee in its discretion,
which may include Qualifying Performance Criteria. Notwithstanding the foregoing, the Committee
may accelerate the vesting of a Restricted Stock Unit Award at any time. A Restricted Stock Unit
Award may also be granted on a fully vested basis, with a deferred payment date.

     9.3. Payment of Restricted Stock Unit Awards. A Restricted Stock Unit Award shall become
payable to a Participant at the time or times determined by the Committee and set forth in the
Award Agreement, which may be upon or following the vesting of the Award. Payment of a Restricted
Stock Unit Award may be made, at the discretion of the Committee, in cash or in Shares, or in a
combination thereof. Any cash payment of a Restricted Stock Unit Award shall be made based upon
the Fair Market Value of a Share, determined on such date or over such time period as determined by
the Committee.

     9.4. No Rights as Stockholder. The Participant shall not have any rights as a stockholder
with respect to the shares subject to a Restricted Stock Unit Award until such time as Shares are
delivered to the Participant pursuant to the terms of the Award Agreement.

     9.5. Qualified Performance Award. To the extent a Restricted Stock Unit Award is designated
as a Qualified Performance Award, it shall be subject to the restrictions set forth in Section 11.

     10. Performance Awards

     10.1. Grant of Performance Awards. Performance Share and Performance Unit Awards
(collectively, “Performance Awards”) may be granted to any Eligible Person selected by the
Committee. Performance Awards shall be subject to such restrictions and conditions as the
Committee shall determine.

     10.2. Vesting Requirements. On the Date of Grant, the Committee shall in its discretion
determine any vesting requirements with respect to a Performance Award, which shall be set forth in
the Award Agreement, provided that the Committee may accelerate the vesting of a Performance Award
at any time. Vesting requirements may be based on the continued Service

11

 

of the Participant with the Company or its Subsidiaries for a specified time period (or
periods), as well as on the attainment of specified performance goals established by the Committee
in its discretion, which may include Qualifying Performance Criteria. The Committee may provide
that if performance relative to the performance goals exceeds targeted levels, then the number of
Performance Awards earned shall be a multiple (e.g., 150%) of those that would be earned for target
performance.

     10.3. Payment of Performance Awards. A Performance Award shall become payable to a
Participant at the time or times determined by the Committee and set forth in the Award Agreement,
which may be upon or following the vesting of the Award. Payment of a Performance Award may be
made, at the discretion of the Committee, in cash or in Shares, or in a combination thereof.

     10.4. No Rights as Stockholder. The Participant shall not have any rights as a stockholder
with respect to the shares subject to a Performance Share Award until such time as Shares are
delivered to the Participant pursuant to the terms of the Award Agreement.

     10.5. Qualified Performance Award. To the extent a Performance Award is designated as a
Qualified Performance Award, it shall be subject to the restrictions set forth in Section 11.

     11. Qualified Performance Awards

     11.1. Designation as Qualified Performance Award. The Committee may designate whether any
Restricted Stock, Restricted Stock Unit or Performance Award granted to an employee is intended to
qualify as “performance-based compensation”, within the
meaning of
Section 162(m) of the Code.

     11.2. Performance Measures. Any Award (or the lapse of restrictions on an Award) designated
as intended to be performance-based compensation shall be, to the extent required by Section 162(m)
of the Code, either (a) conditioned upon the achievement of one or more Qualifying Performance
Criteria or (b) granted based upon the achievement of one or more Qualifying Performance Criteria.
For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean any one or more of
the following performance criteria, either individually, alternatively or in any combination,
applied to either the Company as a whole or to a business unit or Subsidiary, either individually,
alternatively or in any combination, and measured either annually or cumulatively over a period of
years, on an absolute basis or relative to a pre-established target, to previous years’ results or
to a designated comparison group, in each case as specified by the Committee: (i) cash flow (before
or after dividends), (ii) earnings (including earnings per share, earnings before interest and
taxes and earnings before interest, taxes, depreciation and amortization), (iii) stock price, (iv)
return on equity or investment, (v) total stockholder return or total market value (vi) return on
capital (including return on total capital or return on invested capital, and based on earnings or
cash flow), (vii) return on assets or net assets, (viii) market capitalization, (ix) market share,
(x) economic value added, (xi) debt leverage (debt to capital), (xii) revenue, (xiii) income or net
income (before or after taxes), (xiv) adjusted net income after capital charge, (xv) operating
income, (xvi) operating profit or net operating profit, (xvii) operating margin or profit margin,
(xviii) return on operating revenue, (xix) cash from operations, (xx) operating ratio, (xxi)
operating revenue, or (xxii) customer

12

 

service. To the extent consistent with Section 162(m) of the Code, the Committee may
appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to
exclude any of the following events that occurs during a performance period: (A) asset write-downs,
(B) litigation, claims, judgments or settlements, (C) the effect of changes in tax law, accounting
principles or other such laws or provisions affecting reported results, (D) accruals for
reorganization and restructuring programs and (E) any extraordinary, unusual, non-recurring or
non-comparable items (1) as described in Accounting Principles Board Opinion No. 30, (2) as
described in management’s discussion and analysis of financial condition and results of operations
appearing in the Company’s Annual Report to stockholders for the applicable year, or (3) publicly
announced by the Company in a press release or conference call relating to the Company’s results of
operations or financial condition for a completed quarterly or annual fiscal period.

     11.3. Additional Requirements. Any Restricted Stock, Restricted Stock Unit or Performance
Award that is intended to qualify as “performance-based compensation” shall also be subject to the
following:

     (a) No later than the earlier of (i) 90 days following the commencement of each
performance period and (ii) the day on which 25% of the performance period has elapsed (or
such other time as may be required or permitted by Section 162(m) of the Code), the
Committee shall, in writing, (A) grant a target number of shares or units, (B) select the
performance goal or goals applicable to the performance period and (C) specify the
relationship between performance goals and the number of shares or units that may be earned
by a Participant for such performance period. The performance goals shall satisfy the
requirements in Section 162(m) of the Code for “qualified performance-based compensation,”
including the requirement that the achievement of the goals be substantially uncertain at
the time they are established and that the goals be established in such a way that a third
party with knowledge of the relevant facts could determine whether and to what extent the
performance goals have been met.

     (b) Following the completion of each performance period, the Committee shall certify in
writing whether the applicable performance targets have been achieved and the number of
units or shares, if any, earned by a Participant for such performance period.

     (c) In determining the number of units or shares earned by a Participant for a given
performance period, the Committee shall have the right to reduce (but not increase) the
amount earned at a given level of performance to take into account additional factors that
the Committee may deem relevant.

     12. Forfeiture Events.

     12.1. General. The Committee may specify in an Award Agreement at the time of the Award
that the Participant’s rights, payments and benefits with respect to an Award shall be subject to
reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events,
in addition to any otherwise applicable vesting or performance conditions of an Award. Such events
may include, but shall not be limited to, violation of material Company

13

 

policies, breach of noncompetition, confidentiality or other restrictive covenants that may
apply to the Participant, or other conduct by the Participant that is detrimental to the business
or reputation of the Company or its Subsidiaries.

     12.2. Termination for Cause. If a Participant’s employment with the Company or any
Subsidiary shall be terminated for Cause, such Participant’s right to any further payments, vesting
or exercisability with respect to any Award shall be forfeited in its entirety.

     13. General Provisions.

     13.1. Award Agreement. To the extent deemed necessary by the Committee, an Award under the
Plan shall be evidenced by an Award Agreement in a written or electronic form. The Award Agreement
shall be subject to and incorporate, by reference or otherwise, all of the applicable terms and
conditions of the Plan, and may also set forth other terms and conditions applicable to the Award
as determined by the Committee consistent with the limitations of the Plan. The grant of an Award
under the Plan shall not confer any rights upon the Participant holding such Award other than such
terms, and subject to such conditions, as are specified in the Plan as being applicable to such
type of Award (or to all Awards) or as are expressly set forth in the Award Agreement. The
Committee need not require the execution of an Award Agreement by a Participant, in which case,
acceptance of the Award by the Participant shall constitute agreement by the Participant to the
terms, conditions, restrictions and limitations set forth in the Plan and the Award Agreement as
well as the administrative guidelines of the Company in effect from time to time.

     13.2. No Assignment or Transfer; Beneficiaries. Except as provided in Section 6.7 hereof,
Awards under the Plan shall not be assignable or transferable by the Participant, except by will or
by the laws of descent and distribution, and shall not be subject in any manner to assignment,
alienation, pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee may
provide in an Award Agreement that the Participant shall have the right to designate a beneficiary
or beneficiaries who shall be entitled to any rights, payments or other benefits specified under an
Award following the Participant’s death. During the lifetime of a Participant, an Award shall be
exercised only by such Participant or such Participant’s guardian or legal representative. In the
event of a Participant’s death, an Award may to the extent permitted by the Award Agreement be
exercised by the Participant’s beneficiary as designated by the Participant in the manner
prescribed by the Committee or, in the absence of an authorized beneficiary designation, by the
legatee of such Award under the Participant’s will or by the Participant’s estate in accordance
with the Participant’s will or the laws of descent and distribution, in each case in the same
manner and to the same extent that such Award was exercisable by the Participant on the date of the
Participant’s death.

     13.3. Deferrals of Payment. The Committee may, in an Award Agreement or otherwise, provide
for the deferred receipt of payment of cash or delivery of Shares that would otherwise be due to
the Participant by virtue of the satisfaction of vesting or other conditions with respect to a
Restricted Stock, Restricted Stock Unit or Performance Award. If any such deferral is to be
permitted by the Committee, the Committee shall establish rules and procedures relating to such
deferral in a manner intended to comply with the requirements of Section 409A of the Code,
including, without limitation, the time when an election to defer may be made, the

14

 

time period of the deferral and the events that would result in payment of the deferred
amount, the interest or other earnings attributable to the deferral and the method of funding, if
any, attributable to the deferred amount. Notwithstanding anything herein to the contrary, in no
event will any deferral of the delivery of Shares or any other payment with respect to any Award be
allowed if the Committee determines, in its sole discretion, that the deferral would result in the
imposition of the additional tax under Section 409A(a)(1)(B) of the Code.

     13.4. Rights as Stockholder. A Participant shall have no rights as a holder of Shares with
respect to any unissued securities covered by an Award until the date the Participant becomes the
holder of record of such securities. Except as provided in Section 4.3 hereof, no adjustment or
other provision shall be made for dividends or other stockholder rights, except to the extent that
the Award Agreement provides for dividend payments or dividend equivalent rights.

     13.5. Employment or Service. Nothing in the Plan, in the grant of any Award or in any Award
Agreement shall confer upon any Eligible Person any right to continue in the Service of the Company
or any of its Subsidiaries, or interfere in any way with the right of the Company or any of its
Subsidiaries to terminate the Participant’s employment or other service relationship for any reason
at any time.

     13.6. Securities Laws. No Shares will be issued or transferred pursuant to an Award unless
and until all then applicable requirements imposed by Federal and state securities and other laws,
rules and regulations and by any regulatory agencies having jurisdiction, and by any exchanges or
markets upon which the Shares may be listed, have been fully met. As a condition precedent to the
issuance of shares pursuant to the grant or exercise of an Award, the Company may require the
Participant to take any reasonable action to meet such requirements. The Committee may impose such
conditions on any Shares issuable under the Plan as it may deem advisable, including, without
limitation, restrictions in order to ensure compliance with the Securities Act of 1933, as amended,
the requirements of any exchange or market upon which such shares of the same class are then
listed, and any blue sky or other securities laws applicable to such shares. The Committee may
also require the Participant to represent and warrant at the time of issuance or transfer that the
Shares are being acquired only for investment purposes and without any current intention to sell or
distribute such shares.

     13.7. Tax Withholding. The Participant shall be responsible for payment of any taxes or
similar charges required by law to be withheld from an Award or an amount paid in satisfaction of
an Award, which shall be paid by the Participant on or prior to the payment or other event that
results in taxable income in respect of an Award. The Award Agreement may specify the manner in
which the withholding obligation shall be satisfied with respect to the particular type of Award,
which may include procedures to permit or require a Participant to satisfy such obligation in whole
or in part (but only up to the statutory minimum) by having the Company withhold Shares from the
shares to which the Participant is entitled. The number of shares to be withheld shall have a Fair
Market Value as of the date that the amount of tax to be withheld is determined as nearly equal as
possible to (but not exceeding) the amount of such obligations being satisfied. Notwithstanding
the foregoing, the Company, in its sole discretion, may withhold all such required taxes from any
amount otherwise payable to a Participant. Notwithstanding anything contained in the Plan or any
Award Agreement to the contrary, a

15

 

Participant’s satisfaction of any tax-withholding requirements will be a condition precedent
to the Company’s obligation to issue Shares or make payments to that Participant as may otherwise
be provided and to the termination of any restrictions on transfer related to the circumstance or
event that results in the tax-withholding requirement.

     13.8. Unfunded Plan. The adoption of the Plan and any reservation of Shares or cash amounts
by the Company to discharge its obligations hereunder shall not be deemed to create a trust or
other funded arrangement. Except upon the issuance of Shares pursuant to an Award, any rights of a
Participant under the Plan shall be those of a general unsecured creditor of the Company, and
neither a Participant nor the Participant’s permitted transferees or estate shall have any other
interest in any assets of the Company by virtue of the Plan. Notwithstanding the foregoing, the
Company shall have the right to implement or set aside funds in a grantor trust, subject to the
claims of the Company’s creditors or otherwise, to discharge its obligations under the Plan.

     13.9. Other Compensation and Benefit Plans. The adoption of the Plan shall not affect any
other share incentive or other compensation plans in effect for the Company or any Subsidiary, nor
shall the Plan preclude the Company from establishing any other forms of share incentive or other
compensation or benefit program for employees of the Company or any Subsidiary. The amount of any
compensation deemed to be received by a Participant pursuant to an Award shall not constitute
includable compensation for purposes of determining the amount of benefits to which a Participant
is entitled under any other compensation or benefit plan or program of the Company or a Subsidiary,
including, without limitation, under any pension or severance benefits plan, except to the extent
specifically provided by the terms of any such plan.

     13.10. Plan Binding on Transferees. The Plan shall be binding upon the Company, its
transferees and assigns, each Participant, and each Participant’s executor, administrator and
permitted transferees and beneficiaries.

     13.11. Severability. If any provision of the Plan or any Award Agreement shall be
determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining
provisions hereof and thereof shall be severable and enforceable in accordance with their terms,
and all provisions shall remain enforceable in any other jurisdiction.

     13.12. Foreign Jurisdictions. The Committee may adopt, amend and terminate such
arrangements and grant such Awards, not inconsistent with the intent of the Plan, as it may deem
necessary or desirable to comply with any tax, securities, regulatory or other laws of
jurisdictions outside the United States of America with respect to Awards that may be subject to
such laws. The terms and conditions of such Awards may vary from the terms and conditions that
would otherwise be required by the Plan solely to the extent the Committee deems necessary for such
purpose. Moreover, the Board may approve such supplements to or amendments, restatements or
alternative versions of the Plan, not inconsistent with the intent of the Plan, as it may consider
necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in
effect for any other purpose.

     13.13. Substitute Awards in Corporate Transactions. Nothing contained in the Plan shall be
construed to limit the right of the Committee to grant Awards under the Plan in

16

 

connection with the acquisition, whether by purchase, merger, consolidation or other corporate
transaction, of the business or assets of any corporation or other entity. Without limiting the
foregoing, the Committee may grant Awards under the Plan to an employee or director of another
corporation who becomes an Eligible Person by reason of any such corporate transaction in
substitution for awards previously granted by such corporation or entity to such. The terms and
conditions of the substitute Awards may vary from the terms and conditions that would otherwise be
required by the Plan solely to the extent the Committee deems necessary for such purpose.

     13.14. No Fiduciary Relationship. Nothing in the Plan and no action taken pursuant to the
Plan, will create a fiduciary relationship between the Company, its Directors or officers or the
Committee, on the one hand, and the Participant or any other person or entity, on the other.

     13.15. Governing Law. The Plan and all rights hereunder shall be subject to and interpreted
in accordance with the laws of the State of Colorado, without reference to the principles of
conflicts of laws, and to applicable Federal securities laws.

     13.16. Employment and Other Agreements. Any provision in a written employment, severance or
other agreement providing accelerated vesting or other protective provisions applicable to types of
Awards granted under the Plan will apply to Awards under the Plan unless the Award Agreement
relating to a particular Award provides otherwise.

     13.17. Notices. All notices under the Plan must be in writing or delivered electronically,
if to the Company, at its principal office, addressed to the attention of the Corporate Secretary;
and if to the Participant, at the address appearing in the Company’s records.

     13.18. Captions. The use of captions in this Plan is for convenience. The captions are not
intended to provide substantive rights.

     14. Effective Date; Amendment and Termination.

     14.1. Effective Date and Termination of the Plan. This Plan was adopted by the Board on
May 12, 2006, and it will become effective (the “Effective Date”) when it is approved by the
Company’s stockholders. All Awards granted under this Plan are subject to, and may not be
exercised before, the approval of this Plan by the stockholders prior to the first anniversary date
of the adoption date of the Plan, by the affirmative vote of the holders of a majority of the
outstanding Shares of the Company present, or represented by proxy, and entitled to vote, at a
meeting of the Company’s stockholders in accordance with the laws of the State of Colorado;
provided that if such approval by the stockholders of the Company is not forthcoming, all Awards
previously granted under this Plan shall be void. The Plan shall remain available for the grant of
Awards until the tenth (10th) anniversary of the Effective Date. Notwithstanding the foregoing,
the Plan may be terminated at such earlier time as the Board may determine. Termination of the Plan
will not affect the rights and obligations of the Participants and the Company arising under Awards
theretofore granted and then in effect.

     14.2. Amendment. The Board may amend, alter or discontinue this Plan, and the Committee may
amend or alter any agreement or other document evidencing an Award made

17

 

under this Plan but, except as provided pursuant to the provisions of Section 4.3, no such
amendment shall, without the approval of the stockholders of the Company:

     (a) increase the maximum number of Shares for which Awards may be granted under this
Plan;

     (b) reduce the price at which Stock Options or Stock Appreciation Rights may be granted
below the price provided for in Sections 6.2 and 7.2;

     (c) reduce the exercise price of outstanding Stock Options or Stock Appreciation
Rights;

     (d) extend the term of this Plan;

     (e) otherwise amend the Plan in any manner requiring stockholder approval by law or the
listing requirements of the principal national securities exchange on which such Shares are
listed or admitted to trading; or

     (f) increase the individual maximum limits in Section 4.2.

No amendment or alteration to the Plan or an Award or Award Agreement shall be made which would
impair the rights of the holder of an Award, without such holder’s consent, provided that no such
consent shall be required if (i) the Committee determines that such amendment or alteration either
is required or advisable in order for the Company, the Plan or the Award to satisfy any law or
regulation or to meet the requirements of or avoid adverse financial accounting consequences under
any accounting standard, or (ii) the Committee determines that such amendment or alteration is not
reasonably likely to significantly diminish the benefits provided under the Award, or that any such
diminution has been adequately compensated.

18

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