Document:

EX-10.1

	 	 	 	 	 

Exhibit 10.1

TWENTY-FOURTH AMENDMENT TO CREDIT AGREEMENT

          TWENTY-FOURTH AMENDMENT, dated as of March 25, 2009 (this “Amendment”), to the Credit
and Guaranty Agreement, dated as of July 19, 2007, as amended by the First Amendment and Waiver to
Credit Agreement, dated as of November 9, 2007, the Second Amendment to Credit Agreement, dated as
of March 12, 2008, the Third Amendment to Credit Agreement, dated as of March 26, 2008, the Fourth
Amendment to Credit Agreement, dated as of July 18, 2008, the Fifth Amendment to Credit Agreement,
dated as of July 24, 2008, the Sixth Amendment to Credit Agreement, dated as of August 25, 2008,
the Seventh Amendment to Credit Agreement, dated as of September 30, 2008, the Eighth Amendment to
Credit Agreement, dated as of October 2, 2008, the Ninth Amendment to Credit Agreement, dated as of
October 29, 2008, the Tenth Amendment to Credit Agreement, dated as of November 6, 2008, the
Eleventh Amendment to Credit Agreement, dated as of November 14, 2008, the Twelfth Amendment to
Credit Agreement, dated as of November 21, 2008, the Thirteenth Amendment to Credit Agreement,
dated as of December 4, 2008, the Fourteenth Amendment to Credit Agreement, dated as of December
19, 2008, the Fifteenth Amendment to Credit Agreement, dated as of January 5, 2009, the Sixteenth
Amendment to Credit Agreement, dated as of January 16, 2009, the Seventeenth Amendment to Credit
Agreement, dated as of February 5, 2009, the Eighteenth Amendment to Credit Agreement, dated as of
February 17, 2009, the Nineteenth Amendment to Credit Agreement, dated as of February 23, 2009, the
Twentieth Amendment to Credit Agreement, dated as of March 3, 2009, the Twenty-First Amendment to
Credit Agreement, dated as of March 10, 2009, the Twenty-Second Amendment to Credit Agreement,
dated as of March 17, 2009, the Twenty-Third Amendment to Credit Agreement, dated as of March 24,
2009 and that certain letter agreement dated February 26, 2008 (as further amended, restated or
otherwise modified from time to time, the “Credit Agreement”), by and among Proliance
International Inc., a Delaware corporation (“Holdings” and the “Borrower”), certain
domestic subsidiaries of the Borrower listed as a “Guarantor” on the signature pages thereto
(together with each other Person (as defined in the Credit Agreement) that guarantees all or any
portion of the Obligations (as defined in the Credit Agreement) from time to time, each a
“Guarantor” and collectively, the “Guarantors”), the lenders from time to time
party thereto (each a “Lender” and collectively, the “Lenders”), Silver Point
Finance, LLC, a Delaware limited liability company (“Silver Point”), as collateral agent
for the Agents (as hereinafter defined) and the Lenders (in such capacity, together with its
successors and assigns in such capacity, if any, the “Collateral Agent”), and as
administrative agent for the Agents and the Lenders (in such capacity, together with its successors
and assigns in such capacity, if any, the “Administrative Agent” and together with the
Collateral Agent, each an “Agent” and collectively, the “Agents”) and Silver Point
as lead arranger (in such capacity, together with its successors and assigns in such capacity, if
any, the “Lead Arranger”).

          WHEREAS, capitalized terms used in these recitals shall have the respective meanings set forth
in the Credit Agreement unless otherwise defined herein.

          WHEREAS, the Credit Parties have requested that the Agents and the Lenders amend certain
provisions of the Credit Agreement, subject to the terms and conditions set forth in this
Amendment.

 

 

          WHEREAS, the Agent and the Lenders are willing to agree to this requested Amendment, but only
upon the terms and subject to the conditions set forth herein.

          NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Credit Parties, the Agents and the Lenders hereby agree as follows:

          1. Definitions. All capitalized terms used herein and not otherwise defined herein
are used herein as defined in the Credit Agreement.

          2. Defined Terms in the Credit Agreement. Section 1.1 of the Credit Agreement is
hereby amended, as follows:

               (a) New Definitions. Section 1.1 of the Credit Agreement is hereby amended by adding
the definitions of the following terms thereto, in alphabetical order, to read in their entirety as
follows:

               “‘Twenty-Fourth Amendment’ means the Twenty-Fourth Amendment to the Credit Agreement, dated as
of March 25, 2009, by and among the Credit Parties, the Requisite Lenders and the Agents.”

               “‘Twenty-Fourth Amendment Effective Date’ has the meaning ascribed to the term “Twenty-Fourth
Amendment Effective Date” in the Twenty-Fourth Amendment.”

          3. Section 2.23 — Waiver Reserve. Section 2.23 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “2.23 Waiver Reserve. The Agents, the Borrowing Base Agent, the Lenders, the Borrower and the
Guarantors hereby agree that as of March 25, 2009 a reserve in the amount of $2,250,000 has been
established against the Borrowing Base (the “Waiver Reserve”) and such Waiver Reserve shall
be increased to $7,250,000 on the earliest of (x) the occurrence of an Event of Default, and (y)
March 31, 2009.”

          4. Conditions to Effectiveness. This Amendment shall become effective (the
“Twenty-Fourth Amendment Effective Date”) only upon satisfaction in full of the following
conditions precedent:

          (a) Collateral Agent shall have received counterparts of this Amendment that bear the
signatures of each Credit Party, each Agent and the Requisite Lenders.

          (b) Except as set forth in the Second Amendment, the Third Amendment, the Fourth Amendment,
the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth
Amendment, the Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment, the Thirteenth
Amendment, the Fourteenth Amendment, the Fifteenth Amendment, the Sixteenth Amendment, the
Seventeenth Amendment, the Eighteenth Amendment, the Nineteenth Amendment, the Twentieth Amendment,
the Twenty-First Amendment, the Twenty-Second Amendment, the Twenty-Third Amendment and this

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Amendment, the representations and warranties contained herein, in Section IV of the Credit
Agreement and in each other Credit Document are true and correct in all material respects on and as
of the Twenty-Fourth Amendment Effective Date as though made on and as of such date, except to the
extent that any such representation or warranty expressly relates solely to an earlier date (in
which case such representation or warranty shall be true and correct in all material respects on
and as of such earlier date).

          (c) Borrower shall have paid to Administrative Agent all amounts due and owing to any Agent or
any Lender in connection with this Amendment and the Credit Documents.

          (d) Except as expressly waived herein, no Default or Event of Default shall have occurred and
be continuing on the Twenty-Fourth Amendment Effective Date or would result from this Amendment
becoming effective in accordance with its terms.

          (e) All legal matters incident to this Amendment shall be reasonably satisfactory to the
Agents and their respective counsel.

          5. Representations and Warranties. Each Credit Party represents and warrants as follows:

          (a) Organization, Good Standing, Etc. Each Credit Party (i) is a corporation, limited
liability company or limited partnership, duly organized, validly existing and in good standing
under the laws of the state or jurisdiction of its organization, (ii) has all requisite power and
authority to execute and deliver this Amendment, consummate the transactions contemplated hereby
and perform the Credit Agreement, as amended and modified hereby and (iii) is duly qualified to do
business and is in good standing in each jurisdiction in which the character of the properties
owned or leased by it or in which the transaction of its business makes such qualification
necessary other than in such jurisdictions where the failure to be so qualified and in good
standing could not reasonably be expected to have a Material Adverse Effect.

          (b) Authorization, Etc. The execution, delivery and performance by each Credit Party
of this Amendment and the performance by each Credit Party of the Credit Agreement, as amended and
modified hereby (i) have been duly authorized by all necessary action, (ii) do not and will not
contravene its charter or by-laws, its limited liability company or operating agreement or its
certificate of partnership or partnership agreement, as applicable, or any applicable law, or any
contractual restriction binding on or otherwise affecting it or any of its properties, (iii) do not
and will not result in or require the creation of any Lien (other than pursuant to any Credit
Document) upon or with respect to any of its properties, and (iv) do not and will not result in any
default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any
material permit, license, authorization or approval applicable to its operations or any of its
properties.

          (c) Governmental Approvals. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by any Credit Party of this Amendment or the performance by any
Credit Party of the Credit Agreement, as amended and modified hereby.

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          (d) Enforceability of Credit Documents. Each of this Amendment and the Credit
Agreement, as amended and modified hereby, is a legal, valid and binding obligation of the Credit
Parties which are party hereto or thereto, enforceable against such Credit Parties in accordance
with its terms, except as enforceability may be limited by equitable principles and by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally.

          (e) Representations and Warranties; No Default. Except as set forth in the Second
Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the
Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment, the Eleventh
Amendment, the Twelfth Amendment, the Thirteenth Amendment, the Fourteenth Amendment, the Fifteenth
Amendment, the Sixteenth Amendment, the Seventeenth Amendment, the Eighteenth Amendment, the
Nineteenth Amendment, the Twentieth Amendment, the Twenty-First Amendment, the Twenty-Second
Amendment, the Twenty-Third Amendment and this Amendment, the representations and warranties
contained herein, in Section IV of the Credit Agreement and in each other Credit Document are true
and correct in all material respects on and as of the Twenty-Fourth Amendment Effective Date as
though made on and as of such date, except to the extent that any such representation or warranty
expressly relates solely to an earlier date (in which case such representation or warranty shall be
true and correct in all material respects on and as of such earlier date); and, except as expressly
waived herein, no Default or Event of Default shall have occurred and be continuing on the
Twenty-Fourth Amendment Effective Date or would result from this Amendment becoming effective in
accordance with its terms.

          6. Effect of Amendment; Continued Effectiveness of the Credit Agreement.

          (a) Ratifications. Except as otherwise expressly provided herein, (i) the Credit
Agreement and the other Credit Documents are, and shall continue to be, in full force and effect
and are hereby ratified and
confirmed in all respects, except that on and after the Twenty-Fourth Amendment Effective Date
(A) all references in the Credit Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or
words of like import referring to the Credit Agreement shall mean the Credit Agreement as amended
and modified by this Amendment, and (B) all references in the other Credit Documents to the “Credit
Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Credit
Agreement shall mean the Credit Agreement as amended and modified by this Amendment, (ii) to the
extent that the Credit Agreement or any other Credit Document purports to pledge to the Collateral
Agent, or to grant to the Collateral Agent a security interest in or lien on, any collateral as
security for the Obligations or the Guaranteed Obligations, such pledge or grant of a security
interest or lien is hereby ratified and confirmed in all respects, and (iii) the execution,
delivery and effectiveness of this Amendment shall not operate as an amendment of any right, power
or remedy of the Agents or the Lenders under the Credit Agreement or any other Credit Document, nor
constitute an amendment of any provision of the Credit Agreement or any other Credit Document.
This Amendment shall be effective only in the specific instances and for the specific purposes set
forth herein and does not allow for any other or further departure from the terms and conditions of
the Credit Agreement or any other Credit Document, which terms and conditions shall remain in full
force and effect.

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          (b) No Waivers. Except as expressly set forth herein, this Amendment is not a waiver
of, or consent to, any Default or Event of Default now existing or hereafter arising under the
Credit Agreement or any other Credit Document and the Agents and the Lenders expressly reserve all
of their rights and remedies under the Credit Agreement and the other Credit Documents in respect
of all such Defaults or Events of Default not waived or consented to hereby, by the Second
Amendment, by the Third Amendment, by the Fourth Amendment, by the Fifth Amendment, by the Sixth
Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment,
the Eleventh Amendment, the Twelfth Amendment, the Thirteenth Amendment, the Fourteenth Amendment,
the Fifteenth Amendment, the Sixteenth Amendment, Seventeenth Amendment, the Eighteenth Amendment,
the Nineteenth Amendment, the Twentieth Amendment, the Twenty-First Amendment, the Twenty-Second
Amendment or the Twenty-Third Amendment, under applicable law or otherwise.

          (c) Amendment as Credit Document. Each Credit Party confirms and agrees that this
Amendment shall constitute a Credit Document under the Credit Agreement. Accordingly, it shall be
an Event of Default under the Credit Agreement if any representation or warranty made or deemed
made by any Credit Party under or in connection with this Amendment shall have been incorrect in
any material respect when made or deemed made or if any Credit Party fails to perform or comply
with any covenant or agreement contained herein.

          7. Release. Each Credit Party hereby acknowledges and agrees that: (a) neither it
nor any of its Affiliates has any claim or cause of action against any Agent, the Borrowing Base
Agent or any Lender (or any of their respective Affiliates, officers, directors, employees,
attorneys, consultants or agents) and (b) each Agent, the Borrowing Base Agent, and each Lender has
heretofore properly performed and satisfied in a timely manner all of its obligations to the Credit
Parties and their Affiliates under the Credit Agreement and the other Credit Documents.
Notwithstanding the foregoing, the Agents, the Borrowing Base Agent and the Lenders wish (and the
Credit Parties agree) to eliminate any possibility that any past conditions, acts, omissions,
events or circumstances would impair or otherwise adversely affect any of the Agents’, the
Borrowing Base Agent’s and the Lenders’ rights, interests, security and/or remedies under the
Credit Agreement and the other Credit Documents. Accordingly, for and in consideration of the
agreements contained in this Amendment and other good and valuable consideration, each Credit Party
(for itself and its Affiliates and the successors, assigns, heirs and representatives of each of
the foregoing) (collectively, the “Releasors”) does hereby fully, finally, unconditionally
and irrevocably release and forever discharge each Agent, the Borrowing Base Agent, each Lender and
each of their respective Affiliates, officers, directors, employees, attorneys, consultants and
agents (collectively, the “Released Parties”) from any and all debts, claims, obligations,
damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of
action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of
whatever nature or description, and whether in law or in equity, under contract, tort, statute or
otherwise (collectively, “Claims”), which any Releasor has heretofore had or now or
hereafter can, shall or may have against any Released Party by reason of any act, omission or thing
whatsoever done or omitted to be done (collectively, “Actions”) on or prior to the
Twenty-Fourth Amendment Effective Date arising out of, connected with or related in any way to this
Amendment, the Credit Agreement or any other Credit Document, or any act, event or transaction
related or attendant thereto done or omitted to be done on or prior to the Twenty-Fourth Amendment
Effective Date, or the agreements of any Agent, the Borrowing Base Agent

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or any Lender contained
therein, or the possession, use, operation or control of any of the assets of any Credit Party, or
the making of any Loans or other advances, or the management of such Loans or
advances or the Collateral on or prior to the Twenty-Fourth Amendment Effective Date. For the
avoidance of doubt, nothing contained in this Amendment shall be deemed to release or discharge any
Released Party from any Claims arising out of, in connection with or related in any way to Actions
occurring after the date of this Amendment.

          8. Miscellaneous.

          (a) Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which shall be deemed to be an original,
but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally
effective as delivery of an original executed counterpart of this Amendment.

          (b) Headings. Section and paragraph headings herein are included for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose.

          (c) Governing Law. This Amendment shall be governed by, and construed in accordance
with, the laws of the State of New York.

          (d) Expenses. The Borrower will pay on demand all reasonable fees, costs and expenses
of the Agents, the Borrowing Base Agent and the Lenders in connection with the preparation,
execution and delivery of this Amendment and all documents incidental hereto, including, without
limitation, the reasonable fees, disbursements and other charges of Schulte Roth & Zabel LLP,
counsel to Administrative Agent and Collateral Agent, and of McGuireWoods LLP, counsel to Borrowing
Base Agent. In addition, the Borrower will pay all costs and expenses, including attorneys’ fees
(including allocated costs of internal counsel) and costs of settlement, incurred by any Agent,
Borrowing Base Agent and Lenders in enforcing any Obligations of or in collecting any payments due
from any Credit Party hereunder or under the other Credit Documents by reason of any Default or
Event of Default (including in connection with the sale of, collection from, or other realization
upon any of the Collateral or the enforcement of the Guaranty) or in connection with any
refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work
out” or pursuant to any insolvency or bankruptcy cases or proceedings (including, without
limitation, the costs and expenses of any advisers retained by Agents, the Borrowing Base Agent and
Lenders; provided, that so long as no Event of Default has occurred and is continuing the
Borrower shall not be responsible for costs and expenses of CRS in excess of $25,000).

[Remainder of this page intentionally left blank]

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

PROLIANCE INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock 	 
	 	 	Title:  	Executive Vice President, Chief

Financial Officer 	 
	 
	 	GUARANTORS:

AFTERMARKET LLC

 	 
	 	By:  	/s/ Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock 	 
	 	 	Title:  	Vice President 	 
	 
	 	AFTERMARKET DELAWARE
 CORPORATION

 	 
	 	By:  	/s/ Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock 	 
	 	 	Title:  	Vice President 	 
	 
	 	PROLIANCE INTERNATIONAL
 HOLDING CORPORATION

 	 
	 	By:  	/s/ Arlen F. Henock
 	 
	 	 	Name:  	Arlen F. Henock 	 
	 	 	Title:  	President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AGENTS AND LEAD ARRANGER:

SILVER POINT FINANCE, LLC, as

Administrative Agent, Lead Arranger and
 Collateral Agent

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	LENDERS:

SPF CDO I, LTD., as a Lender

 	 
	 	By:  	                                                       /s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	:

 	 
	 	FIELD POINT III, LTD. as a Lender

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	:
 	 
	 	 	 
	 	FIELD POINT IV, LTD. as a Lender

 	 
	 	By:  	/s/ Zachary M. Zeitlin
 	 
	 	 	Name:  	Zachary M. Zeitlin 	 
	 	 	Title:  	Authorized Signatory 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BORROWING BASE AGENT AND
 LENDER:

WELLS FARGO FOOTHILL, LLC, as 

Borrowing Base Agent and a Lender

 	 
	 	By:  	/s/ Jonathan Boynton
 	 
	 	 	Name:  	Jonathan Boynton 	 
	 	 	Title:  	VPEX-10.75

EXHIBIT 10.75

BROADPOINT SECURITIES GROUP, INC.

2007 INCENTIVE COMPENSATION PLAN

STOCK OPTION AGREEMENT

          THIS STOCK OPTION AGREEMENT (the “Agreement”) confirms the grant on December 18, 2008 (the
“Grant Date”) by Broadpoint Securities Group, Inc., a New York corporation (the “Company”), to Lee
Fensterstock (“Employee”) of non-qualified options (“Options”) to acquire shares of the Company’s
common stock (“Shares”), as follows:

     Number of Shares Covered by Option Granted: 1,000,000

How Options Vest and Become Exercisable: 33-1/3% of the Options if not
previously forfeited will vest and become exercisable on the first
anniversary of the Grant Date; 33-1/3% of the Options, if not
previously forfeited, will vest and become exercisable on the
second anniversary of the Grant Date; and 33-1/3% of the Options,
if not previously forfeited, will vest and become exercisable on
the third anniversary of the Grant Date, provided in each case that
Employee continues to be employed by the Company or another Group
Entity on such vesting date (each, a “Stated Vesting Date”). In
addition, if not previously forfeited, the Options will become
vested upon the occurrence of certain events relating to a
Termination of Employment and certain events relating to a Change
of Control (as defined below), in
each case to the extent provided in Section 4 of the Terms and
Conditions of Stock Options attached hereto (the “Terms and
Conditions”). If Employee has a Termination of Employment prior to
a Stated Vesting Date and any Options are not otherwise deemed
vested and exercisable by that date, such Options will be
immediately forfeited except as otherwise provided in Section 4 of
the Terms and Conditions.

Exercise Prices of the Options: The exercise price per Share of the
Options
will by $3.00.

Duration of the Options: Except as otherwise provided in Section 4
of the Terms and Conditions, if not previously forfeited, the Options
shall expire and shall no longer be exercisable after the
expiration of six years from the Grant date.

 

 

          The Options are subject to the terms and conditions of the Company’s 2007 Incentive
Compensation Plan (the “Plan”), and this Agreement, including the Terms and Conditions attached
hereto. The number of Options, the number and kind of Shares deliverable upon exercise of Options,
and other terms relating to the Options are subject to adjustment in accordance with Section 5 of
the Terms and Conditions and Section 5.3 of the Plan.

          Employee acknowledges and agrees that (i) Options are nontransferable, except as provided in
Section 3 of the Terms and Conditions and Section 9.2 of the Plan, (ii) Options are subject to
forfeiture upon Employee’s Termination of Employment in certain circumstances, as specified in
Section 4 of the Terms and Conditions, and (iii) sales of Shares delivered in settlement of Options
will be subject to the Company’s policies regulating trading by employees.

          IN WITNESS WHEREOF, BROADPOINT SECURITIES GROUP, INC. has
caused this agreement to be executed by its officer thereunto duly authorized, and Employee has
duly executed this Agreement, by which each has agreed to the terms of this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee:  	 	BROADPOINT SECURITIES GROUP, INC.  
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Lee Fensterstock

	 	 	 	By:
	 	/s/ Peter McNierney	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lee Fensterstock

	 	 	 	 	 	Peter McNierney	 	 	 	 	 	 	 	 

TERMS
AND CONDITIONS OF STOCK OPTIONS

          The following Terms and Conditions apply to the Options granted to Employee
by the Company, as specified in the Stock Option Agreement (of which these Terms and Conditions
form a part). Certain terms of the Options, including the number of Options granted, vesting dates
and expiration date, are set forth in the Agreement.

          1. GENERAL. The Options are granted to Employee under the Company’s
2007 Incentive Compensation Plan (the “Plan”). A copy of the Plan and information regarding the
Plan, including documents that constitute the “Prospectus” for the Plan under the Securities Act of
1933, can be obtained from the Company upon request. All of the applicable terms, conditions and
other provisions of the Plan are incorporated by reference herein. Capitalized terms used in the
Agreement and these Terms and Conditions but not defined herein shall have the same meanings as in
the Plan. If there is any conflict between the provisions of the Agreement and this Terms and
Conditions and mandatory provisions of the Plan, the provisions of the Plan govern, otherwise, the
terms of this document shall prevail. By accepting the grant of the Options, Employee agrees to be
bound by all of the terms and provision of the Plan (as presently in effect or later amended), the
rules and regulations under the Plan adopted from time to time, and the decisions and
determinations of the Company’s Executive Compensation Committee (the “Committee”) made from time
to time, provided that no such Plan amendment, rule or regulation or Committee decision or
determination without the consent of an affected Participant shall materially affect the rights of
the Employee with respect to the Options.

 

 

          2. TIME AND METHOD OF EXERCISE. At any time while any portion of the Options remain
vested and exercisable, Employee may exercise such vested Options in whole or in part by delivering
to the Company written notice of exercise and payment of the exercise price. Such exercise price
may be paid (i) in cash, by check or in another cash equivalent acceptable to the Company, (ii) by
transfer to the Company of nonforfeitable, nonrestricted Shares held by Employee, (iii) through
broker-assisted “cashless” exercise arrangements, to the extent permissible under applicable law,
(iv) by any other method permitted under the Plan and under rules established by the Committee and
in effect from time to time, or (v) by a combination of the foregoing.

          3. NONTRANSFERABILITY. Employee may not sell, transfer, assign, pledge, margin or
otherwise encumber or dispose of Options or any rights hereunder to any third party other than by
will or the laws of descent and distribution (or to a designated Beneficiary in the event of the
Employee’s death), and Options, if exercisable, shall be exercisable during the lifetime of the
Employee only by Employee or his guardian or legal representative, provided however that, Options
and any rights hereunder may be transferred during the lifetime of Employee for purposes of the
Employee’s estate planning and purposes.

          4. TERMINATION PROVISIONS. The following provisions will govern the vesting and
forfeiture of the Options upon the occurrence of certain events relating to a Termination of
Employment and certain events relating to a Charge of Control, in each case unless otherwise
determined by the Committee (subject to Section 8(a) hereof):

               (a) Death or Disability. In the event of Employee’s death or Disability (as defined
below), all Options then outstanding, if not previously vested, will immediately become vested and
exercisable, and all outstanding Options will remain exercisable until the applicable expiration
date set forth in the Stock Option Agreement.

               (b) Expiration of the Employment Period. In the event of Employee’s Termination of
Employment as a result of the expiration of the Employment Period (as defined below), the portion
of the then-outstanding Options not vested at the date of such termination shall continue to vest
in accordance with the provisions of the Plan and the schedule set forth in the Stock Option
Agreement and the portion of the then-outstanding Options vested at the date of such termination
will remain exercisable until the applicable expiration date set forth in the Stock Option
Agreement, on condition that Employee agrees to remain a member of the Board of Directors of the
Company in good standing and to meet all obligations of a Board member.

               (c) Termination by Employee Without Good Reason or by the Company for Cause. In the
event of Employee’s Termination of Employment by Employee for any reason other than Good Reason (as
defined below) or by the Company or any Group Entity for Cause, the portion of the then-outstanding
Options not vested at the date of such termination will be forfeited, and the portion of the
then-outstanding Options vested at the date of such termination will remain exercisable until the
earlier of the applicable expiration date set forth in the Stock Option Agreement or the
90th day after the date of the termination.

 

 

               (d) Termination by Employee with Good Reason other than in connection with a Change of
Control or by the Company without Cause. In the event of Employee’s Termination of Employment
by Employee for Good Reason other than in connection with a Change of Control or by the Company or
any Group Entity for any reason other than Cause or Disability, the portion of the then-outstanding
Options not vested at the date of such termination shall not be forfeited but shall continue to
vest in accordance with the vesting schedule specified in the Stock Option Agreement, and the
portion of the then-outstanding Options vested at the date of such termination will remain
exercisable until the applicable expiration date set forth in the Stock Option Agreement.

               (e) Termination by Employee for Good Reason in connection with a Change of Control of the
Company. In the event of Employee’s Termination of Employment for Good Reason in the event of
a Change of Control and Employee does not continue thereafter as the most senior executive officer
of the business of the Company as conducted immediately prior to the Change of Control, all Options
then outstanding, if not previously vested will immediately become vested and exercisable and all
outstanding Options will remain exercisable until the applicable expiration date set forth in the
Stock Option Agreement.

               (f) Certain Definitions. The following definitions apply for purposes of this
Agreement, whether or not Employee has an employment agreement or other agreement with a Group
Entity that contains the same or similar defined terms:

                    (i) “Cause” means “Cause” as determined for purposes of the Employment Agreement.

                    (ii) “Change of Control of the Company” has the meaning given in the Employment Agreement.

                    (iii) “Disability” means “disability” as defined in Code Section 409A.

                    (iv) “Employment Agreement” means that certain Employment Agreement by and between Employee
and the Company dated as of September 21, 2007.

                    (v) “Employment Period” has the meaning given in the Employment Agreement.

                    (vi) “Good Reason” means “Good Reason” as determined for purposes of the Employment Agreement.

                    (vii) “Group Entity” means either the Company or any of its subsidiaries and affiliates.

                    (viii) “Termination of Employment” means the event by which Employee ceases to be employed by
a Group Entity and immediately thereafter is not employed

 

 

by any other Group Entity and which constitutes a “separation from service” under Code Section 409A
and its associated regulations.

          5. SHAREHOLDER’S RIGHTS, DIVIDENDS AND ADJUSTMENTS.

               (a) Shareholder’s Rights and Dividends. Employee will have no rights as a
shareholder, and will not be entitled to any dividends declared or paid, with respect to any Share
underlying an Option unless and until such Share is issued to Employee upon the proper exercise of
such Option.

               (b) Adjustments. The number of Options credited to Employee, the number of Shares
underlying such Options and/or the exercise price per Share of such Options shall be appropriately
adjusted, in order to prevent dilution or enlargement of Employee’s rights with respect to such
Options and Shares or to reflect any changes in the number of outstanding Shares resulting from any
event referred to in Section 5.3 of the Plan.

          6. ADDITIONAL FORFEITURE PROVISIONS NOT APPLICABLE. The forfeiture conditions set
forth in Section 7.4 of the Plan shall not apply to all Options hereunder and to gains realized
upon the exercise of the Options, except as specifically stated herein.

          7. EMPLOYEE REPRESENTATIONS AND WARRANTIES AND RELEASE. As a condition to any
non-forfeiture of the Options at or after Termination of Employment, including without limitation
as provided by Sections 4 (b), (d) and (e) of these Terms and Conditions, and as a condition to
any exercise of the Options, the Company may require Employee (i) to make any representation or
warranty to the Company as may be required under any applicable law or regulation, and (ii) to
execute a settlement agreement and release in such form as may be requested by the Company which
includes, without limitation, a restrictive covenant substantially as set forth in Section 8(a) of
the Employment Agreement, in accordance with and for a term not to exceed eighteen (18) months.

          8. OTHER TERMS RELATING TO OPTIONS.

               (a) Deferral of Settlement. No settlement of the exercise of an Option may be
deferred hereunder.

               (b) Fractional Options and Shares. The number of Shares underlying Options credited
to Employee shall not include fractional shares, unless otherwise determined by the Committee.

               (c) Tax Withholding. Employee shall make arrangements satisfactory to the Company,
or, in the absence of such arrangements, a Group Entity may deduct from any payment to be made to
Employee any amount necessary, to satisfy requirements of federal, state, local, or foreign tax law
to withhold taxes or other amounts with respect to the exercise of the Options. Unless Employee
has made separate arrangements satisfactory to the Company, the Company may elect to withhold
Shares deliverable in settlement of the Options having a fair market value (as determined by the
Committee) equal to the amount of such tax liability required

 

 

to be withheld in connection with the exercise of the Options, but the Company shall not be
obligated to withhold such Shares.

               (d) Statements. An individual statement of Employee’s Options will be issued to
Employee at such times as may be determined by the Company. Such a statement shall reflect the
number of outstanding Options credited to Employee, transactions therein during the period covered
by the statement, and other information deemed relevant by the Committee. Such a statement may be
combined with or include information regarding other plans and compensatory arrangements for
employees.

          9. MISCELLANEOUS.

               (a) Binding Agreement; Written Amendments. This Agreement shall be binding upon the
heirs, executors, administrators and successors of the parties. This Agreement and the Plan
constitute the entire agreement between the parties with respect to the Options, and supersede any
prior agreements or documents with respect thereto. No amendment, alteration, suspension,
discontinuation, or termination of this Agreement which may impose any additional obligation upon
the Company or materially impair the rights of Employee with respect to the Options shall be valid
unless in each instance such amendment, alteration, suspension, discontinuation, or termination is
expressed in a written instrument duly executed in the name and on behalf of the Company and by
Employee.

               (b) No Promise of Employment. The Options and the granting thereof shall not
constitute or be evidence of any agreement or understanding, express or implied, that Employee has
a right to continue as an officer or employee of the Company for any period of time, or at any
particular rate of compensation.

               (c) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.

               (d) Legal Compliance. Employee agrees to take any action the Company reasonably deems
necessary in order to comply with federal and state laws, or the rules and regulations of the
NASDAQ Global Market or any other stock exchange, or any other obligation of the Company or
Employee relating to the Options or this Agreement.

               (e) Notices. Any notice to be given the Company under this Agreement shall be
addressed to the Company at 12 East 49th Street, 31st Floor, New York, New York 10017, Attention:
Corporate Secretary, and any notice to the Employee shall be addressed to the Employee at
Employee’s address as then appearing in the records of the Company.

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