Document:

EX-10.84

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT 10.84

BUYER’S AGENCY AGREEMENT

THIS BUYER’S AGENCY AGREEMENT, dated as of November 2, 2006 (this “Agreement”), is made and
entered into by and between Meade Instruments, Inc., a Delaware corporation, and each of its
subsidiaries signatory hereto (each, a “Customer”), and ThreeSixty Sourcing Ltd., a Hong Kong
corporation (“ThreeSixty”).

AGREEMENT

In consideration of the mutual promises contained in this Agreement, and other good and
valuable consideration, receipt of which is acknowledged, the parties agree as follows:

	1	 	Appointment; Purchase Orders and Compensation.

	1.1	 	The term “Products,” as used herein, shall mean any product sourced by Customer through
ThreeSixty hereunder.

	1.2	 	The term “Supplier” as used herein, shall mean a manufacturer of a Product that is a party to
a purchase order (“PO”) with Customer.

	1.3	 	Customer hereby retains ThreeSixty as its buyer’s agent with respect to Products to be
purchased by Customer directly from Suppliers in the People’s Republic of China and Republic
of China (“China”), and ThreeSixty hereby agrees to serve as the Customer’s buyer’s agent with
respect to such Products.

	1.4	 	Customer will forward all POs for the Products to ThreeSixty, and ThreeSixty will forward
such POs to Suppliers on behalf of Customer. The Products covered by the POs shall be
purchased by Customer directly from such Supplier. Notwithstanding the foregoing, all POs for
the Products shall be forwarded by Customer to ThreeSixty and not directly to any Supplier.
No variation in any of the terms, conditions, deliveries, prices, quality, quantity or
specifications of a PO will be effective unless they are in writing and signed by Customer and
agreed to by Supplier.

	1.5	 	ThreeSixty is not authorized to forward any PO to a Supplier other than the specific Supplier
approved by Customer in writing for that PO. ThreeSixty shall use commercially reasonable
efforts to assist Customer to select the Supplier(s) who can timely meet Customer’s supply
obligations under the PO in accordance with Customer’s specifications as communicated to
ThreeSixty from time to time.

	1.6	 	The parties agree and acknowledge that ThreeSixty shall not (i) take title to or possession
of any Product, (ii) have any interest in any Products, (iii) have any obligation to accept
returns, provided that ThreeSixty shall assist Customer in effecting returns through a
Supplier or (iv) bear the responsibility for the risk of loss of any Product.

	1.7	 	All payments to ThreeSixty pursuant to the terms of this Agreement shall be made by wire
transfer in U.S. dollars in accordance with written instructions provided to Customer by
ThreeSixty.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	1.8	 	Unless otherwise agreed to in writing by ThreeSixty and Customer, (i) all Products that are
ordered will be sold to Customer on terms negotiated with the applicable Supplier and (ii)
ThreeSixty shall invoice Customer for the Commission (as defined below), with payment for the
Commission due upon the presentation of a correct and complete invoice for such services
(provided that ThreeSixty acknowledges that Customer will pay such invoices in accordance with
its normal payment cycle), which invoice shall be presented to Customer promptly upon shipment
of the relevant Product. Customer will pay to ThreeSixty as compensation for its services a
fee as set forth on Exhibit A for Products ordered pursuant to this Agreement (the
“Commission”).

	1.9	 	From time to time, as a matter of convenience to Customer and upon prior written approval of
Customer, ThreeSixty may, at its option, pay miscellaneous expenses to third parties on behalf
of Customer; provided, however, that in no event shall Customer be liable for
any charge in excess of $500.00 with respect to any PO unless such charge was approved in
writing by Customer. ThreeSixty will invoice Customer periodically for such charges, and such
invoices will be due upon receipt.

	 	1.9.1	 	Invoices that are not Product-related will not include any Commission. Such
non-Product-related expenses may include, without limitation, courier charges and
travel-related expenses for Customer’s employees.

	 	1.9.2	 	Expenses payable in connection with the sourcing of Products will typically be
evidenced by a separate PO from Customer and will be handled as miscellaneous expenses
only in unusual circumstances. Invoices that are Product-related will include
Commissions for ThreeSixty in accordance with Section ý1.8 and Exhibit A
hereto. Product-related expenses may include, without limitation, development,
production and approval sample charges; mold, tooling, design, prototype and label
charges; and inland transportation, terminal handling, documentation, overnight
shipping and testing fees; provided that Product related expenses shall not include any
duties or freight charges outside of China.

	2	 	Representations, Warranties and Covenants of ThreeSixty.

	2.1	 	This Agreement has been duly authorized, executed and delivered by ThreeSixty and constitutes
a valid and binding obligation of ThreeSixty, enforceable against ThreeSixty in accordance
with its terms.

	2.2	 	ThreeSixty will cause Products to be inspected in China prior to shipment of the Products to
Customer and in accordance with Customer’s specifications included or referred to on the
applicable PO for such Products. Unless otherwise stated in Customer’s request for quote from
ThreeSixty (a “Purchase Requisition”) and the applicable PO, the AQL standard used will be
[***] for Critical/Safety defects, [***] for Functional defects, [***] for Major defects and
[***] for Minor defects. In the event that Products at any time are found not to comply with
the applicable AQL standard, ThreeSixty will credit Customer’s account in an amount [***].

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	2.3	 	ThreeSixty will provide Customer, from time to time, with a Quality Control and Assurance
Procedures document, substantially in the form attached hereto as Exhibit B (the
“Quality Control and Assurance Procedures”) containing a Defect/Quality Claim Procedure for
Customer to follow in the event Customer believes a Product has defects or quality issues.
The Quality Control and Assurance Procedures may be modified by ThreeSixty, provided that no
material modifications may be made without Customer’s prior written consent. In addition,
ThreeSixty and Customer agree to evaluate the Quality Control and Assurance Procedures to make
mutually agreeable Customer-specific modifications with the goal of improving the overall
quality of the Products.

	2.4	 	To the extent requested by Customer in writing with respect to the Products, ThreeSixty will
provide any of the following services in a commercially reasonable manner under the
circumstances at its expense, except as otherwise specifically set forth herein.

	 	2.4.1	 	Supplier and Production Matters. ThreeSixty will: (i) identify
potential suppliers and conduct on-site evaluation of production capabilities;
(ii) research raw materials and negotiate bulk pricing when appropriate;
(iii) coordinate tooling design and procurement with Customer and potential suppliers;
(iv) submit requests for quotes to potential suppliers based on Purchase Requisitions;
(v) advise Customer as to prices at which finished products can be purchased or
produced in accordance with Customer’s requirements; (vi) provide weekly visibility as
to the status of Purchase Requisitions, quotations and POs; and (vii)  conduct periodic
(not less than annually) surveys and assessments of Suppliers and monitor Suppliers for
compliance with ThreeSixty’s social and human rights policies.

	 	2.4.2	 	Quality Control and Assurance. ThreeSixty will (i) review
specifications for Products provided by Customer; (ii) arrange for the delivery,
Customer inspection and approval of production samples; (iii) perform inspection of raw
materials, work in process and finished goods in accordance with the Quality Control
and Assurance Procedures; (iv) arrange for and coordinate testing with independent
third party testing agencies as required; and (v) process defect or quality claims in a
timely manner and provide Customer with assistance in returning products rejected by
Customer to the Supplier under the applicable PO and in making claims against any such
Supplier, including, without limitation, for refund or credit.

	 	2.4.3	 	Logistics Services. ThreeSixty will (i) coordinate shipping
arrangements with freight forwarders and/or shipping lines; (ii) coordinate and
maintain control of shipping documentation; (iii) deliver to Customer ThreeSixty’s
invoice, Supplier’s invoice and shipping documents related to the Products; and
(iv) provide Customer with such additional documentation as customers of Customer may
reasonably request, with any related expenses to be paid by Customer.

	 	2.4.4	 	Business Development Support. ThreeSixty will (i) familiarize itself
with Customer’s product needs and objectives; (ii) provide access to contract design
service providers; and (iii) provide U.S.-based Customer support to assist with problem
resolution, performance measurement and integration with ThreeSixty processes.

	 	2.4.5	 	Administrative Services. ThreeSixty will (i) provide staff and
internal systems to support sourcing of Products and the performance of ThreeSixty’s
obligations under this Agreement; (ii) maintain facilities to accommodate showroom and
meeting space; and (iii) provide office assistance to Customer’s personnel traveling in
Asia, including arranging for transportation, accommodations, translators and other
services at Customer expense.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	2.5	 	In connection with the satisfaction of its obligations under this Agreement, the directors,
officers, employees or agents of ThreeSixty will comply with all applicable laws, ordinances,
orders, standards, rules and regulations in the country or countries in which the Products
will be manufactured, sold or transported, and none of them will (i) use any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to political
activity, (ii) make any direct or indirect unlawful payments to government officials or others
or establish or maintain any unlawful or unrecorded funds, (iii) violate any of the provisions
of The Foreign Corrupt Practices Act of 1977, or any rules or regulations promulgated
thereunder, (iv) receive any illegal discounts or rebates or violate any antitrust laws, (v)
take or receive, directly or indirectly, any bribes, fees, gifts or similar remuneration of
any kind from any Supplier or related party in connection with the Products manufactured for
or supplied to Customer, or (vi) cause or allow, directly or indirectly, any director,
officer, employee or agent of Customer to take or receive, directly or indirectly, any bribes,
fees, gifts or similar remuneration of any kind from any Supplier or related party or from
ThreeSixty or its affiliates in connection with the Products manufactured for or supplied to
Customer or in connection with this Agreement in any way.

	3	 	Representations, Warranties and Covenants of Customer.

	3.1	 	This Agreement has been duly authorized, executed and delivered by Customer and constitutes a
valid and binding obligation of Customer, enforceable against Customer in accordance with its
terms.

	3.2	 	Customer agrees and acknowledges that none of its subsidiaries or affiliates shall be
entitled to source Products pursuant to this Agreement unless any such subsidiary or affiliate
becomes a party hereto.

	3.3	 	Customer represents and warrants to ThreeSixty that the sale or resale by Customer,
transportation and foreseeable use of the Products comply with all applicable laws,
ordinances, orders, standards, rules and regulations in the country or countries in which the
Products will be sold or transported.

	3.4	 	Customer agrees to use commercially reasonable efforts to provide all specifications,
directions and instructions to ThreeSixty as contemplated by the Agreement, including accurate
and timely product specifications and accurate and timely and quality specifications; provide
signed approval samples to ThreeSixty; and comply with the Quality Control and Assurance
Procedures.

	3.5	 	Customer shall promptly pay Suppliers for Products in accordance with the payment terms set
forth in any PO or such other payment terms as have been agreed to by Customer and such
Supplier in writing or are in accordance with accepted industry practices. Customer shall
provide evidence of such payments to ThreeSixty upon ThreeSixty’s reasonable request.

	3.6	 	Customer will provide a non-binding forecast of purchases to ThreeSixty for each fiscal year
in reasonable monthly detail, as soon as practicable and in any event by the end of the prior
fiscal year of Customer. ThreeSixty agrees that (i) such forecast is provided for convenience
only, (ii) such forecast is in no way a minimum or guaranteed volume and (iii) Customer shall
incur no liability if such forecast is inaccurate.

	3.7	 	Customer will provide ThreeSixty with an account number for a recognized overnight delivery
service (e.g., Federal Express) for use by ThreeSixty in connection with overnight deliveries
made on Customer’s behalf. Such account number will not be provided to Suppliers without
Customer’s consent.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	3.8	 	If at the time of issuing any PO Customer is insolvent or intends to commence, or become
subject to, an insolvency or other proceeding described in Section 7.2.1 of this Agreement
within 90 days of the date of such PO, Customer will provide to ThreeSixty a certificate
setting forth such information, transmitted via electronic mail, facsimile or other means,
from Customer’s chief financial officer or treasurer.

	3.9	 	Notwithstanding anything to the contrary contained herein, Customer agrees that it will not
pursue any claim that a Product caused personal injury or property damage against ThreeSixty
or any of its affiliates.

	4	 	Exclusivity.

	4.1	 	During the term of this Agreement, ThreeSixty will provide exclusivity to Customer within
agreed-upon product ranges or distribution channels by not sourcing any Exclusive Products (as
defined on Exhibit C hereto) other than pursuant to the terms of this Agreement
without Customer’s prior written consent.

	4.2	 	Subject to Section 4.3 hereof, during the term of this Agreement, Customer and its affiliates
agree not to cause any Exclusive Products of which Customer or any such affiliate is the
ultimate seller to be manufactured in China other than pursuant to this Agreement. In
addition, during the term of this Agreement, Customer shall not purchase products from any
source from which ThreeSixty has sourced products for Customer in the prior 24-month period
(other than the Existing Suppliers (as defined below)) (any such source, a “ThreeSixty
Source”) other than pursuant to this Agreement. Notwithstanding the foregoing, the preceding
two sentences shall not be deemed to prohibit the consummation of (i) open purchase orders as
of the date of this Agreement as set forth on Exhibit D hereto, and (ii) substantially
negotiated transactions or potential purchase orders between Customer or its subsidiaries or
affiliates with an existing supplier of Customer listed on Exhibit E hereto (each, an
“Existing Supplier”) as set forth on Exhibit D hereto (collectively, “Existing
Orders”). Customer agrees and acknowledges that ThreeSixty’s remedy for any breach of this
Section 4.2 shall be the right to receive Commissions pursuant hereto with respect to orders
of Exclusive Products, or purchases from a ThreeSixty Source, in violation of this Section as
if they were Products ordered pursuant to this Agreement.

	4.3	 	[***]

	5	 	Licensing and Use of Proprietary Rights.

	5.1	 	Customer represents and warrants to ThreeSixty that Customer owns, controls or has a valid
right to use each of the patents, trademarks (whether registered or unregistered), service
marks, trade names, service names, brand names, logos or registered copyrights (collectively,
the “Proprietary Rights”) that relate to the Products. Except as disclosed on Exhibit
F hereto, Customer has not received any notice of invalidity or infringement of any rights
of others with respect to any such Proprietary Rights that relate to the Products. The
manufacture, purchase, sale, storage, transportation and use of the Products does not and will
not conflict with, infringe upon or otherwise violate the valid rights of any third party in
or to such Proprietary Rights.

	5.2	 	Customer hereby grants to ThreeSixty the right to use the Proprietary Rights, upon
ThreeSixty’s receipt of prior written consent from Customer, in ThreeSixty’s marketing
materials and on display in ThreeSixty’s showrooms or similar facilities under the terms and
conditions set forth herein.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	6	 	Indemnification.

	6.1	 	Subject to Section ý8 and except as expressly limited herein, ThreeSixty agrees to indemnify,
defend and hold harmless Customer, its affiliates and subsidiaries and its and their
respective officers, directors, principals, attorneys, agents, employees or other
representatives from and against any and all costs, losses, taxes, liabilities, obligations,
damages, actions, deficiencies, claims, demands and expenses (whether or not arising out of
third party claims), including, without limitation, interest, penalties, costs of mitigation,
attorneys’ fees and all amounts paid in investigation, defense or settlement or any of the
foregoing (collectively, “Damages”) incurred in connection with, arising out of, resulting
from or incident to any (i) breach of any representation or warranty or the inaccuracy of any
representation made by ThreeSixty in or pursuant to this Agreement or (ii) breach of any
covenant or agreement made by ThreeSixty in or pursuant to this Agreement.

	6.2	 	Subject to Section ý8 and except as expressly limited herein, Customer agrees to indemnify,
defend and hold harmless ThreeSixty, its affiliates and subsidiaries, and its and their
respective officers, directors, principals, attorneys, agents, employees or other
representatives, from and against any and all Damages incurred in connection with, arising out
of, resulting from or incident to (i) any breach of any representation or warranty or the
inaccuracy of any representation made by Customer in or pursuant to this Agreement, (ii) any
breach of any covenant or agreement made by Customer in or pursuant to this Agreement, or
(iii) product recalls, product liability claims, losses or damages, whether brought as express
or implied warranty, negligence or strict liability actions, including the cost of defending
(which shall include reasonable attorneys’ fees) any proceedings resulting in whole or in part
from the manufacture, purchase, sale, transportation, storage or foreseeable use of the
Products, except for claims, losses or damages primarily resulting or arising out of
ThreeSixty’s gross negligence or intentional misconduct.

	6.3	 	Promptly after receipt by an indemnified party under this Section 6 of notice of any claim or
the commencement of any action, the indemnified party shall, if a claim in respect thereof is
to be made against the indemnifying party under this Section 6, notify the indemnifying party
in writing of the claim or the commencement of that action; provided, however, that the
failure to notify the indemnifying party shall not relieve it from any liability that it may
have under this Section 6 except to the extent it has been materially prejudiced by such
failure, and provided further that the failure to notify the indemnifying party shall not
relieve it from any liability that it may have to an indemnified party otherwise than under
this Section 6. If any such claim or action shall be brought against an indemnified party,
and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled
to participate therein and, to the extent that it shall wish, to assume the defense thereof,
with counsel satisfactory to such indemnified party (such consent not to be unreasonably
withheld by such indemnified party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party
shall not be liable to such indemnified party under such subsection for any legal expenses of
other counsel or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of investigation.
No indemnifying party shall, without the written consent of the indemnified party (such
consent not to be unreasonably withheld by such indemnified party), effect the settlement or
compromise of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified party is an actual or potential party to such action
or claim). No indemnifying party shall be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably withheld), but
if settled with the consent of the indemnifying party or if there be a final judgment of the
plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such settlement or
judgment.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	7	 	Term and Termination.

	7.1	 	This Agreement shall become effective on the date first written above and shall remain in
effect through December 31, 2008 (the “Initial Term” and, as may be extended pursuant to the
next succeeding sentence, the “Term”) unless otherwise terminated in accordance with the
provisions set forth in this Section 7. After the expiration of the Initial Term, this
Agreement shall continue in effect for additional one-year periods unless either party gives
the other written notice that it elects to terminate this Agreement not less than 180 days
prior to the expiration of the Initial Term or any extended Term.

	7.2	 	Upon the occurrence of any of the following events, either party may terminate this Agreement
effective immediately upon written notice to the other, except as otherwise specified below.

	7.2.1	 	The other party (i) shall be or become insolvent, or is not generally paying its material
debts as such debts become due, (ii) makes any general assignment for the benefit of creditors
or (iii) becomes involved in a receivership, reorganization or any other similar proceeding
for the relief of debtors.

	7.2.2	 	The other party shall fail to perform properly any of the material terms and conditions
herein or breaches any material term herein and such failure to perform or such breach has not
been satisfactorily remedied within 30 days (or 15 business days in case of a breach of the
payment terms of this Agreement) after receipt of written notice pursuant to Section 10.2.

	7.3	 	Customer and ThreeSixty may, by mutual agreement, terminate this Agreement at any time.

	7.4	 	This Agreement may be terminated by either party upon 180 days’ prior written notice to the
other party.

	7.5	 	This Agreement may be terminated by ThreeSixty upon written notice to Customer within [***]
days of receipt of a [***] delivered by Customer pursuant to Section 4.3, which termination
shall be effective [***] days following receipt of any such [***]; provided,
however, that ThreeSixty may only terminate this Agreement pursuant to this Section
7.5 following [***] delivered by Customer pursuant to Section 4.3 on or before [***] if
Customer has [***].

	7.6	 	Notwithstanding anything to the contrary herein, for a period of two years after any
termination hereof (other than a termination by (x) ThreeSixty pursuant to Section 7.1 or 7.4,
in which case [***] hereunder, or (y) [***] (any such termination, an “Early Termination”), if
Customer or its affiliates [***], then Customer shall [***] of this Agreement as follows:
[***]; provided, however, that [***]; provided [***] that such [***],
following an Early Termination if (1) Customer [***] during the Term and (2) the [***] during
the [***] period immediately preceding the date of such [***]. For purposes of this
Agreement, “substantially similar” shall mean products with substantially similar [***] shall
be deemed “substantially similar”). [***]

	7.7	 	Upon any termination of this Agreement pursuant to this Section ý7, Customer and its
affiliates will have no liability to ThreeSixty or its affiliates, and ThreeSixty and its
affiliates will have no liability to Customer or its affiliates by reason of termination for
any claim of loss of profits, prospective profits or related damages or expenditures by reason
of any claim of breach of this Agreement. The termination of this Agreement shall not,
however, relieve or release Customer from making payments that may be owing to ThreeSixty
under the terms of this Agreement or to Suppliers for Products already delivered or the
subject of outstanding POs, nor shall termination affect any other liability or obligation
arising by reason of any event other than termination. Notwithstanding any such termination,
the payment obligations set forth in Section ý1 and the provisions of Sections 5 (but only to
the extent required to fulfill POs hereunder), ý6, 7.6, ý8, 9 and 10 shall continue in full
force and effect.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	8	 	DISCLAIMER OF WARRANTIES AND CERTAIN DAMAGES; LIMITATION OF LIABILITY.

	8.1	 	DISCLAIMER OF WARRANTIES: EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, THREESIXTY
MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY PRODUCTS, RELATED SERVICES OR
DOCUMENTATION. THREESIXTY SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES, INCLUDING,
WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF TIMELINESS OF DELIVERY, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR TITLE OR NONINFRINGEMENT OF THIRD PARTY RIGHTS.

	8.2	 	DISCLAIMER OF CERTAIN DAMAGES: NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT,
CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES, INCLUDING, WITHOUT
LIMITATION, LOSS OF USE OR LOST BUSINESS, REVENUE, PROFITS OR GOODWILL, ARISING IN CONNECTION
WITH THIS AGREEMENT, PRODUCTS, RELATED SERVICES, DOCUMENTATION OR THE INTENDED USE THEREOF,
UNDER ANY THEORY OF TORT, CONTRACT, WARRANTY, STRICT LIABILITY OR NEGLIGENCE, EVEN IF THE
PARTY HAS BEEN ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES;
PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL LIMIT A PARTY’S RIGHT TO INDEMNIFICATION WITH
RESPECT TO THIRD-PARTY CLAIMS AS PROVIDED IN SECTION ý6 OF THIS AGREEMENT.

	8.3	 	LIMITATION OF THREESIXTY’S LIABILITY: WITHOUT LIMITATION OF THE PROVISIONS ABOVE, THE TOTAL
LIABILITY OF THREESIXTY TO CUSTOMER IN CONNECTION WITH THIS AGREEMENT SHALL BE LIMITED TO THE
LESSER OF (1) [***] OR (2) THE [***] PRIOR TO ACCRUAL OF SUCH CAUSE OF ACTION FOR THE SPECIFIC
PRODUCT OR SERVICE THAT FORMS THE BASIS FOR SUCH CAUSE OF ACTION, OR [***] THAT IS THE SUBJECT
OF SUCH CAUSE OF ACTION, WHICHEVER IS GREATER; PROVIDED, HOWEVER, THAT, [***].
THE FOREGOING LIMITATION APPLIES TO ALL CAUSES OF ACTION AND CLAIMS, INCLUDING, WITHOUT
LIMITATION, BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY,
MISREPRESENTATION OR OTHER TORTS. CUSTOMER ACKNOWLEDGES AND ACCEPTS THE REASONABLENESS OF THE
FOREGOING DISCLAIMERS AND LIMITATIONS OF LIABILITY.

	8.4	 	NO CAUSE OF ACTION UNDER ANY THEORY THAT ACCRUED MORE THAN ONE YEAR PRIOR TO NOTICE OF SUCH
CAUSE OF ACTION MAY BE ASSERTED BY EITHER PARTY AGAINST THE OTHER.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	9	 	Confidentiality.

	9.1	 	The parties agree that the terms of this Agreement are to be held confidential and shall not
be disclosed to any third party, except as required by law or legal process, and except that
either party may disclose the terms hereof to its legal counsel or other advisors or to other
parties who have a need to know such information and have expressly agreed to keep such
information confidential, provided that the disclosing party shall be responsible for the
breach of any such confidentiality agreement by any recipient of such information. If either
party or any of its representative is requested pursuant to, or required by, applicable law or
regulation or by legal process to disclose any of the terms of this Agreement or any other
Confidential Information (as defined below) of the other party, the parties agree to provide
each other with prompt notice of such request or requirement in order to enable the other
party to seek an appropriate protective order or other remedy (at such party’s expense), to
consult with each other with respect to taking steps to resist or narrow the scope of such
request or legal process or to waive compliance, in whole or in part, with the terms of this
Agreement. The parties agree to provide each other with any assistance reasonably requested
to protect the confidentiality of the terms of this Agreement or any other Confidential
Information. If such protective order or other remedy is not obtained, or either party grants
a waiver hereunder, the party proposing to disclose such information may furnish that portion
(and only that portion) of the terms of this Agreement or any other Confidential Information
that, in the opinion of such party’s counsel, is legally compelled to be disclosed and the
disclosing party will exercise reasonable efforts to obtain reliable assurance that
confidential treatment will be accorded any such Confidential Information so furnished.

	9.2	 	The parties recognize that the sales techniques, operations manuals, memoranda, corporate
documents, financial documents, trade information, purchase schedules, vendor schedules,
catalogues, price lists, pricing structure, product specifications, designs, and other
information used by them in the purchasing, promotion, distribution or sale of Products is
confidential and proprietary information (hereinafter “Confidential Information”).  The
parties also recognize that the Confidential Information of each of the parties (1) was
designed and developed by such party at great expense and over lengthy periods of time; (2) is
secret, confidential and unique; (3) constitutes the exclusive property and/or trade secrets
of such party; and (4) that any use of the Confidential Information by the other of them for
any purpose other than in accordance with this Agreement and in furtherance of obligations
hereunder would be wrongful and would cause irreparable injury to the aggrieved party for
which damages are not an adequate remedy.  Notwithstanding anything to the contrary in this
Agreement, the prohibitions set forth in this Section shall not apply to (i) any information
which, through no improper action of a party, is publicly available or generally known in the
industry; (ii) any information which is known to the party receiving the information at the
time of disclosure; or (iii) any information which, through no improper action of a party and
with no breach of any confidentiality or similar obligations, is independently developed or
obtained by a party.

	9.3	 	Except as required by law or as its duties hereunder may require (subject to the last two
sentences of Section 9.1), or as each party may otherwise consent in writing, the parties will
not at any time disclose or use, either during the term of this Agreement or after the
expiration or termination of this Agreement, the Confidential Information of the other party.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	9.4	 	The parties agree that in the event either party commits a breach or threatens to commit a
breach of any of the provisions of this Section 9 the other party (the “Aggrieved Party”)
shall have the right and remedy to have the provisions of this Section 9 specifically enforced
by any court having jurisdiction, it being acknowledged and agreed that any such breach or
threatened breach will cause immediate irreparable injury to the Aggrieved Party and that
money damages will not provide an adequate remedy at law for any such breach or threatened
breach.  Such right and remedy shall be in addition to, and not in lieu of, any other rights
and remedies available to the Aggrieved Party under this Agreement or at law or in equity.

	10	 	General.

	10.1	 	The relationship between Customer and ThreeSixty is that of principal (Customer) and buying
agent (ThreeSixty). This Agreement does not and is not intended to create in any manner or
for any purpose whatsoever and nothing in it shall be construed to create an
employer-employee, partnership or joint venture relationship or any other relationship other
than that of principal and independent contractor. ThreeSixty’s authority as a sourcing agent
shall be limited to the authority expressly granted by Customer in, or in accordance with,
this Agreement.

	10.2	 	All notices, requests, offers and other communications required or permitted to be made under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when
received if (A) personally delivered or (B) transmitted by telecopy, electronic or digital
transmission method; (ii) the delivery date specified on the shipping manifest if sent by a
recognized overnight delivery service (e.g., Federal Express); or (iii) upon receipt, if sent
by certified or registered mail, return receipt requested. In each case notice shall be sent
to the address below or such other address as either party most recently may have designated
in writing to the other party in accordance with this Section 10.2.

	 	 	 	 	 	 	 
	Customer:

	 	Meade Instruments, Inc.

Attn: Steve Muellner

6001 Oak Canyon

Irvine, CA 92618

Telephone: (949) 451-1450

Facsimile: (949) 451-1460

Email: [***]
	 	ThreeSixty:
	 	ThreeSixty Sourcing Limited

Attn.: Chief Financial Officer

Corporation Square, 8 Lam Lok St., 8/F

Kowloon Bay, Hong Kong

Telephone: (852) 3408-2200

Facsimile: (852) 2840-0121

Email: [***]

	10.3	 	Neither this Agreement nor any of the rights or obligations hereunder may be assigned by any
party hereto, by operation of law or otherwise, without the prior written consent of the other
party hereto; provided, that either party may, without such consent, assign this Agreement or
any such rights or obligations to its direct or indirect parent companies, any wholly owned
subsidiary of such party, any entity controlled by such party or its direct or indirect parent
companies or to a successor in interest to such party or its direct or indirect parent
companies; provided further, that any such assignee shall assume the obligations and
liabilities hereunder so assigned.

	10.4	 	This Agreement and any PO issued pursuant to the terms of this Agreement constitute the sole
and entire existing agreement between the parties with respect to the subject matter hereof
and completely and correctly expresses all of the rights and obligations of the parties. All
prior agreements, conditions, practices, customs, usages and obligations are completely
superseded and revoked, insofar as any such prior agreement, condition, practice, custom,
usage or obligation might have given rise to any enforceable right.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

	10.5	 	The waiver in any particular instance or series of instances of any term or condition of this
Agreement or any breach hereof by any party shall not constitute a waiver of such term or
condition or of any breach thereof in any other instance.

	10.6	 	This Agreement is subject to amendment only by subsequent written agreement between, and
executed by, the parties hereto. Commencement or continuation of any custom, practice or
usage by any party shall not constitute an amendment hereof or otherwise give rise to
enforceable rights or create obligations of any party.

	10.7	 	Any captions of articles, sections, subsections or paragraphs of this Agreement are solely
for the convenience of the parties and are not a part of this Agreement or to be used for the
interpretation of this Agreement or any provision hereof. Capitalized terms used herein
without definition have the meanings assigned them in this Agreement.

	10.8	 	This Agreement shall be construed and interpreted in accordance with the laws of the State of
California, and shall be deemed to be made in and call for performance in California. The
parties hereby irrevocably consent to personal jurisdiction over them, and subject matter
jurisdiction over this Agreement, in the State of California. Any disputes arising hereunder
shall be venued only in Orange County Superior Court or the United States District Court,
Central District of California.

	10.9	 	Each of Customer and ThreeSixty agrees that, without the prior written consent of the other
party, neither party will, during the term of this Agreement and for a period of two years
after any termination hereof pursuant to Section ý7, directly or indirectly solicit for
employment or employ any officer or employee who is now employed by the other party and who is
identified by Customer or ThreeSixty, as the case may be, in connection with the parties’
performance under this Agreement.

	10.10	 	This Agreement is not intended, and shall not be construed, to create any rights in any
third parties other than Customer or ThreeSixty, and no person shall assert any rights as
third-party beneficiary hereunder.

	10.11	 	This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

1

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

IN WITNESS WHEREOF, the parties have duly executed this Agreement or caused this Agreement to
be duly executed on their respective behalf, by their respective officers thereunto duly
authorized, all as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	MEADE INSTRUMENTS, INC.
	
 
	 	 	 	 	 	By: /s/ Steve Muellner
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name: Steve Muellner

Title: President and CEO
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	THREESIXTY SOURCING LTD.

By: /s/ Matthew Lu
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name: Matthew Lu

Title: Chief Financial Officer

2

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT A

Commission Schedule

[***]

3

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT B

Quality Control and Assurance Procedures

[***]

4

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT C

Exclusive Products

“Exclusive Products” shall mean products produced in China within the following product
categories for sale at retail worldwide: [***]. Notwithstanding the foregoing, nothing in this
Agreement shall prohibit [***]. For purposes of this Agreement, “[***] components and parts” shall
include all subassemblies, components and parts used in the production of [***] manufactured in
China; provided, however, that both parties agree that the [***] and will be deemed
a “[***] accessory” regardless of whether or not it is included in [***] manufactured in China or
outside of China. For purposes of this Agreement, except as set forth above, “[***] accessories”
shall include all products sold separately by Customer that are not otherwise included as [***]
components and parts as set forth above.

5

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT D

Open Purchase Orders/Potential Purchase Orders

Notwithstanding anything to the contrary herein, the parties agree that certain transactions
or potential purchases set forth below that may become purchase orders on or before February 28,
2007 (“Potential Purchase Orders”) may become “Existing Orders” for purposes of Section 4.2. If
any such Potential Purchase Orders actually become purchase orders (and are therefore treated as
“Existing Orders” for purposes of Section 4.2), the parties agree to negotiate in good faith to
determine appropriate compensation for ThreeSixty, if any, if ThreeSixty’s services to be performed
with respect to any such purchase orders involve significant effort or the devotion of significant
resources on the part of ThreeSixty.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Delivery Date ex	 	 	 	 
	Description	 	Supplier Name	 	China	 	Quantity expected	 	Status
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 
	 	 	 	 	 	 	 	 
	[***]

	 	[***]
	 	[***]
	 	[***]
	 	[***]

6

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT E

Existing Suppliers

[***]

7

PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

EXHIBIT F

Supplier Intellectual Property Issues

[***] has alleged potential infringement by [***] of its patented technology related to its
[***] on optical surfaces such as riflescopes.

8EX-10.1

THE ADVISORY BOARD COMPANY

2006 STOCK INCENTIVE PLAN

 

   

 1.  Purpose

 

 The purpose of The Advisory Board Company 2006 Stock Incentive Plan (the “Plan”) is to
advance the interests of The Advisory Board Company (the “Company”) by stimulating the efforts of
employees, officers and, to the extent provided by Section 5(d) and Section 5(e), non-employee
directors and other service providers, in each case who are selected to be participants, by
heightening the desire of such persons to continue in working toward and contributing to the
success and progress of the Company. The Plan provides for the grant of Incentive and Nonqualified
Stock Options, Stock Appreciation Rights, Restricted Stock and Restricted Stock Units, any of which
may be performance-based, and for Incentive Bonuses, which may be paid in cash or stock or a
combination thereof, as determined by the Administrator.

 

   

 2.  Definitions

 

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

 

 (a) “Administrator” means the Administrator of the Plan in accordance with Section 18.

 

 (b) “Award” means an Incentive Stock Option, Nonqualified Stock Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit or Incentive Bonus granted to a
Participant pursuant to the provisions of the Plan, any of which the Administrator may structure to
qualify in whole or in part as a Performance Award.

 

 (c) “Award Agreement” means a written agreement or other instrument as may be approved
from time to time by the Administrator implementing the grant of each Award. An Agreement may be in
the form of an agreement to be executed by both the Participant and the Company (or an authorized
representative of the Company) or certificates, notices or similar instruments as approved by the
Administrator.

 

 (d) “Board” means the board of directors of the Company.

 

 (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the rulings and regulations issues thereunder.

 

 (f) “Company” means The Advisory Board Company, a Delaware corporation.

 

 (g) “Incentive Bonus” means a bonus opportunity awarded under Section 9 pursuant to
which a Participant may become entitled to receive an amount based on satisfaction of such
performance criteria as are specified in the Award Agreement.

 

 (h) “Incentive Stock Option” means a stock option that is intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

 

 (i) “Nonemployee Director” means each person who is, or is elected to be, a member of
the Board and who is not an employee of the Company or any Subsidiary.

 

 (j) “Nonqualified Stock Option” means a stock option that is not intended to qualify as
an “incentive stock option” within the meaning of Section 422 of the Code.

 

 (k) “Option” means an Incentive Stock Option and/or a Nonqualified Stock Option granted
pursuant to Section 6 of the Plan.

 

 (l) “Participant” means any individual described in Section 3 to whom Awards have been
granted from time to time by the Administrator and any authorized transferee of such individual.

(m) “Performance Award” means an Award, the grant, issuance, retention, vesting or settlement
of which is subject to satisfaction of one or more Qualifying Performance Criteria established
pursuant to Section 13.

 

 (n) “Plan” means The Advisory Board Company 2006 Stock Incentive Plan as set forth
herein and as amended from time to time.

 

 (o) “Qualifying Performance Criteria” has the meaning set forth in Section 13(b).

 

 (p) “Restricted Stock” means Shares granted pursuant to Section 8 of the Plan.

 

 (q) “Restricted Stock Unit” means an Award granted to a Participant pursuant to
Section 8 pursuant to which Shares or cash in lieu thereof may be issued in the future.

 

 (r) “Retirement” has the meaning specified by the Administrator in the terms of an Award
Agreement or, in the absence of any such term, for Participants other than Nonemployee Directors
shall mean retirement from active employment with the Company and its Subsidiaries (i) at or after
age 55 and with the approval of the Administrator or (ii) at or after age 65. The determination of
the Administrator as to an individual’s Retirement shall be conclusive on all parties.

 

 (s) “Share” means a share of the Company’s common stock, par value $.01, subject to
adjustment as provided in Section 12.

 

 (t) “Stock Appreciation Right” means a right granted pursuant to Section 7 of the Plan
that entitles the Participant to receive, in cash or Shares or a combination thereof, as determined
by the Administrator, value equal to or otherwise based on the excess of (i) the market price of a
specified number of Shares at the time of exercise over (ii) the exercise price of the right, as
established by the Administrator on the date of grant.

 

 (u) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company where each of the corporations in the unbroken chain other
than the last corporation owns stock possessing at least 50 percent or more of the total combined
voting power of all classes of stock in one of the other corporations in the chain, and if
specifically determined by the Administrator in the context other than with respect to Incentive
Stock Options, may include an entity in which the Company has a significant ownership interest or
that is directly or indirectly controlled by the Company.

 

 (v) “Termination of employment” means ceasing to serve as a full-time employee of the
Company and its Subsidiaries or, with respect to a service provider, ceasing to serve as such for
the Company, except that with respect to all or any Awards held by a Participant (i) the
Administrator may determine, subject to Section 6(d), that an approved leave of absence or approved
employment on a less than full-time basis is not considered a “termination of employment,” (ii) the
Administrator may determine that a transition of employment to service with a partnership, joint
venture or corporation not meeting the requirements of a Subsidiary in which the Company or a
Subsidiary is a party is not considered a “termination of employment,” (iii) service as a member of
the Board shall constitute continued employment with respect to Awards granted to a Participant
while he or she served as an employee and (iv) service as an employee of the Company or a
Subsidiary shall constitute continued employment with respect to Awards granted to a Participant
while he or she served as a member of the Board. The Administrator shall determine whether any
corporate transaction, such as a sale or spin-off of a division or subsidiary that employs a
Participant, shall be deemed to result in a termination of employment with the Company and its
Subsidiaries for purposes of any affected Participant’s Options, and the Administrator’s decision
shall be final and binding.

 

 (w) “Total and Permanent Disablement” has the meaning specified by the Administrator in
the terms of an Award Agreement or, in the absence of any such term or in the case of an Option
intending to qualify as an Incentive Stock Option, the inability to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than 12 months. The determination of the Administrator as to an individual’s Total and
Permanent Disablement shall be conclusive on all parties.

 

   

 3.  Eligibility

 

 Any person who is a current or prospective officer or employee (including any director
who is also an employee, in his or her capacity as such) of the Company or of any Subsidiary shall
be eligible for selection by the Administrator for the grant of Awards hereunder. To the extent
provided by Section 5(d), any Nonemployee Director shall be eligible for the grant of Awards
hereunder as determined by the Administrator. In addition, to the extent provided by Section 5(e),
any service provider who has been retained to provide consulting, advisory or other services to the
Company or to any Subsidiary shall be eligible for selection by the Administrator for the grant of
Awards hereunder. Options intending to qualify as Incentive Stock Options may only be granted to
employees of the Company or any Subsidiary within the meaning of the Code, as selected by the
Administrator. For purposes of this Plan, the Chairman of the Board’s status as an employee shall
be determined by the Administrator.

 

   

 4.  Effective Date and Termination of Plan

 

 This Plan was adopted by the Board as of October 2, 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 effective 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 or by
written consent in accordance with the laws of the State of Delaware; 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.

 

   

 5.  Shares Subject to the Plan and to Awards

 

 (a) Aggregate Limits.  The aggregate number of Shares issuable pursuant to all Awards
shall not exceed 1,200,000; provided that any Shares granted under Options or Stock Appreciation
Rights shall be counted against this limit on a one-for-one basis and any Shares granted as Awards
other than Options or Stock Appreciation Rights shall be counted against this limit as two and
five-eighths (2.625) Shares for every one (1) Share subject to such Award. The aggregate number of
Shares available for grant under this Plan and the number of Shares subject to outstanding Awards
shall be subject to adjustment as provided in Section 12. The Shares issued pursuant to Awards
granted under this Plan may be shares that are authorized and unissued or shares that were
reacquired by the Company, including shares purchased in the open market.

 

 (b) Issuance of Shares.  For purposes of Section 5(a), the aggregate number of Shares
issued under this Plan at any time shall equal only the number of Shares actually issued upon
exercise or settlement of an Award. Notwithstanding the foregoing, Shares subject to an Award under
the Plan may not again be made available for issuance under the Plan if such Shares are: (i) Shares
that were subject to a stock-settled Stock Appreciation Right and were not issued upon the net
settlement or net exercise of such Stock Appreciation Right, (ii) Shares used to pay the exercise
price of a Stock Option, (iii) Shares delivered to or withheld by the Company to pay the
withholding taxes related a Stock Option or a Stock Appreciation Right, or (iv) Shares repurchased
on the open market with the proceeds of a Stock Option exercise. Shares subject to Awards that have
been canceled, expired, forfeited or otherwise not issued under an Award and Shares subject to
Awards settled in cash shall not count as Shares issued under this Plan.

 

 (c) Tax Code Limits.  The aggregate number of Shares subject to Awards granted under
this Plan during any calendar year to any one Participant shall not exceed 500,000, which number
shall be calculated and adjusted pursuant to Section 12 only to the extent that such calculation or
adjustment will not affect the status of any Award intended to qualify as “performance based
compensation” under Section 162(m) of the Code but which number shall not count any tandem SARs (as
defined in Section 7). The aggregate number of Shares that may be issued pursuant to the exercise
of Incentive Stock Options granted under this Plan shall not exceed 1,200,000, which number shall
be calculated and adjusted pursuant to Section 12 only to the extent that such calculation or
adjustment will not affect the status of any option intended to qualify as an Incentive Stock
Option under Section 422 of the Code. The maximum amount payable pursuant to that portion of an
Incentive Bonus granted in any calendar year to any Participant under this Plan that is intended to
satisfy the requirements for “performance based compensation” under Section 162(m) of the Code
shall not exceed five million dollars ($5,000,000).

 

 (d) Director Awards.  The aggregate number of Shares subject to Options and Stock
Appreciation Rights granted under this Plan during any calendar year to any one Nonemployee
Director shall not exceed 30,000, and the aggregate number of Shares issued or issuable under all
Awards granted under this Plan other than Options or Stock Appreciation Rights during any calendar
year to any one Nonemployee Director shall not exceed 15,000; provided, however, that in the
calendar year in which a Nonemployee Director first joins the Board of Directors or is first
designated as Chairman of the Board of Directors or Lead Director, the maximum number of shares
subject to Awards granted to the Participant may be up to two hundred percent (200%) of the number
of shares set forth in the foregoing limits and the foregoing limits shall not count any tandem
SARs (as defined in Section 7).

 

 (e) Awards to Service Providers.  The aggregate number of Shares issued under this Plan
pursuant to all Awards granted to service providers shall not exceed 100,000.

 

   

 6.  Options

 

 (a) Option Awards.  Options may be granted at any time and from time to time prior to
the termination of the Plan to Participants as determined by the Administrator. No Participant
shall have any rights as a stockholder with respect to any Shares subject to Option hereunder until
said Shares have been issued, except that the Administrator may authorize dividend equivalent
accruals with respect to such Shares. Each Option shall be evidenced by an Award Agreement. Options
granted pursuant to the Plan need not be identical but each Option must contain and be subject to
the terms and conditions set forth below.

 

 (b) Price.  The Administrator will establish the exercise price per Share under each
Option, which, in no event will be less than the market value of the Shares on the date of grant
(which, for the avoidance of doubt, shall equal the NASDAQ official closing price for the Shares on
such date, or, if such date is a date for which no trading is so reported, on the next preceding
date for which trading of the Shares is so reported); provided, however, that the exercise price
per Share with respect to an Option that is granted in connection with a merger or other
acquisition as a substitute or replacement award for options held by optionees of the acquired
entity may be less than 100% of the market price of the Shares on the date such Option is granted
if such exercise price is based on a formula set forth in the terms of the options held by such
optionees or in the terms of the agreement providing for such merger or other acquisition. The
exercise price of any Option may be paid in Shares, cash or a combination thereof, as determined by
the Administrator, including an irrevocable commitment by a broker to pay over such amount from a
sale of the Shares issuable under an Option, the delivery of previously owned Shares and
withholding of Shares deliverable upon exercise.

 

 (c) No Repricing.  Other than in connection with a change in the Company’s
capitalization (as described in Section 12) the exercise price of an Option may not be reduced
without stockholder approval (including canceling previously awarded Options and regranting them
with a lower exercise price).

 

 (d) Provisions Applicable to Options.  The date on which Options become exercisable
shall be determined at the sole discretion of the Administrator and set forth in an Award
Agreement. Unless provided otherwise in the applicable Award Agreement, to the extent that the
Administrator determines that an approved leave of absence or employment on a less than full-time
basis is not a Termination of employment, the vesting period and/or exercisability of an Option
shall be adjusted by the Administrator during or to reflect the effects of any period during which
the Participant is on an approved leave of absence or is employed on a less than full-time basis.

(e) Term of Options and Termination of Employment:  The Administrator shall establish the term
of each Option, which in no case shall exceed a period of five (5) years from the date of grant.
Unless an Option earlier expires upon the expiration date established pursuant to the foregoing
sentence, upon the termination of the Participant’s employment, his or her rights to exercise an
Option then held shall be only as follows, unless the Administrator specifies otherwise:

 

 (1) Death.  Upon the death of a Participant while in the employ of the Company or any
Subsidiary or while serving as a member of the Board, all of the Participant’s Options then held
shall be exercisable by his or her estate, heir or beneficiary at any time during the one (1) year
period commencing on the date of death. Any and all of the deceased Participant’s Options that are
not exercised during the one (1) year commencing on the date of death shall terminate as of the end
of such one (1) year period.

 

 If a Participant should die within thirty (30) days of his or her termination of
employment with the Company and its Subsidiaries, an Option shall be exercisable by his or her
estate, heir or beneficiary at any time during the one (1) year period commencing on the date of
termination, but only to the extent of the number of Shares as to which such Option was exercisable
as of the date of such termination. Any and all of the deceased Participant’s Options that are not
exercised during the one (1) year period commencing on the date of termination shall terminate as
of the end of such one (1) year period. A Participant’s estate shall mean his or her legal
representative or other person who so acquires the right to exercise the Option by bequest or
inheritance or by reason of the death of the Participant.

 

 (2) Total and Permanent Disablement.  Upon termination of employment as a result of the
Total and Permanent Disablement of any Participant, all of the Participant’s Options then held
shall be exercisable during the one (1) year period commencing on the date of termination. Any and
all Options that are not exercised during the one (1) year period commencing on the date of
termination shall terminate as of the end of such one (1) year period.

 

 (3) Retirement.  Upon Retirement of a Participant, the Participant’s Options then held
shall be exercisable during the one (1) year period commencing on the date of Retirement. The
number of Shares with respect to which the Options shall be exercisable shall equal the total
number of Shares that were exercisable under the Participant’s Option on the date of his or her
Retirement. Any and all Options that are not exercised during the one (1) year period commencing on
the date of termination shall terminate as of the end of such one (1) year period.

 

 (4) Other Reasons.  Upon the date of a termination of a Participant’s employment for any
reason other than those stated above in Sections 6(e)(1), (e)(2) and (e)(3) or as described in
Section 15, (A) to the extent that any Option is not exercisable as of such termination date, such
portion of the Option shall remain unexercisable and shall terminate as of such date, and (B) to
the extent that any Option is exercisable as of such termination date, such portion of the Option
shall expire on the earlier of (i) ninety (90) days following such date and (ii) the expiration
date of such Option.

 

 (f) Incentive Stock Options.  Notwithstanding anything to the contrary in this
Section 6, in the case of the grant of an Option intending to qualify as an Incentive Stock Option:
(i) if the Participant owns stock possessing more than 10 percent of the combined voting power of
all classes of stock of the Company (a “10% Shareholder”), the exercise price of such Option must
be at least 110 percent of the fair market value of the Shares on the date of grant and the Option
must expire within a period of not more than five (5) years from the date of grant, and
(ii) termination of employment will occur when the person to whom an Award was granted ceases to be
an employee (as determined in accordance with Section 3401(c) of the Code and the regulations
promulgated thereunder) of the Company and its Subsidiaries. Notwithstanding anything in this
Section 6 to the contrary, options designated as Incentive Stock Options shall not be eligible for
treatment under the Code as Incentive Stock Options (and will be deemed to be Nonqualified Stock
Options) to the extent that either (a) the aggregate fair market value of Shares (determined as of
the time of grant) with respect to which such 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 Options into account in the order in which they were granted, or (b) such Options
otherwise remain exercisable but are not exercised within three (3) months of Termination of
employment (or such other period of time provided in Section 422 of the Code).

 

   

 7.  Stock Appreciation Rights

 

 Stock Appreciation Rights may be granted to Participants from time to time either in
tandem with or as a component of other Awards granted under the Plan (“tandem SARs”) or not in
conjunction with other Awards (“freestanding SARs”) and may, but need not, relate to a specific
Option granted under Section 6. The provisions of Stock Appreciation Rights need not be the same
with respect to each grant or each recipient. Any Stock Appreciation Right granted in tandem with
an Award may be granted at the same time such Award is granted or at any time thereafter before
exercise or expiration of such Award. All freestanding SARs shall be granted subject to the same
terms and conditions applicable to Options as set forth in Section 6 and all tandem SARs shall have
the same exercise price, vesting, exercisability, forfeiture and termination provisions as the
Award to which they relate. Subject to the provisions of Section 6 and the immediately preceding
sentence, the Administrator may impose such other conditions or restrictions on any Stock
Appreciation Right as it shall deem appropriate. Stock Appreciation Rights may be settled in
Shares, cash or a combination thereof, as determined by the Administrator and set forth in the
applicable Award Agreement. Other than in connection with a change in the Company’s capitalization
(as described in Section 12) the exercise price of Stock Appreciation Rights may not be reduced
without stockholder approval (including canceling previously awarded Stock Appreciation Rights and
regranting them with a lower exercise price).

 

   

 8.  Restricted Stock and Restricted Stock Units

 

 (a) Restricted Stock and Restricted Stock Unit Awards.  Restricted Stock and Restricted
Stock Units may be granted at any time and from time to time prior to the termination of the Plan
to Participants as determined by the Administrator. Restricted Stock is an award or issuance of
Shares the grant, issuance, retention, vesting and/or transferability of which is subject during
specified periods of time to such conditions (including continued employment or performance
conditions) and terms as the Administrator deems appropriate. Restricted Stock Units are Awards
denominated in units of Shares under which the issuance of Shares is subject to such conditions
(including continued employment or performance conditions) and terms as the Administrator deems
appropriate. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an
Award Agreement. Unless determined otherwise by the Administrator, each Restricted Stock Unit will
be equal to one Share and will entitle a Participant to either the issuance of Shares or payment of
an amount of cash determined with reference to the value of Shares. To the extent determined by the
Administrator, Restricted Stock and Restricted Stock Units may be satisfied or settled in Shares,
cash or a combination thereof. Restricted Stock and Restricted Stock Units granted pursuant to the
Plan need not be identical but each grant of Restricted Stock and Restricted Stock Units must
contain and be subject to the terms and conditions set forth below.

 

 (b) Contents of Agreement.  Each Award Agreement shall contain provisions regarding
(i) the number of Shares or Restricted Stock Units subject to such Award or a formula for
determining such number, (ii) the purchase price of the Shares, if any, and the means of payment,
(iii) the performance criteria, if any, and level of achievement versus these criteria that shall
determine the number of Shares or Restricted Stock Units granted, issued, retainable and/or vested,
(iv) such terms and conditions on the grant, issuance, vesting and/or forfeiture of the Shares or
Restricted Stock Units as may be determined from time to time by the Administrator, (v) the term of
the performance period, if any, as to which performance will be measured for determining the number
of such Shares or Restricted Stock Units, and (vi) restrictions on the transferability of the
Shares or Restricted Stock Units. Shares issued under a Restricted Stock Award may be issued in the
name of the Participant and held by the Participant or held by the Company, in each case as the
Administrator may provide.

 

 (c) Vesting and Performance Criteria.  The grant, issuance, retention, vesting and/or
settlement of shares of Restricted Stock and Restricted Stock Units will occur when and in such
installments as the Administrator determines or under criteria the Administrator establishes, which
may include Qualifying Performance Criteria. The grant, issuance, retention, vesting and/or
settlement of Shares under any such Award that is based on performance criteria and level of
achievement versus such criteria will be subject to a performance period of not less than one
(1) year, and the grant, issuance, retention, vesting and/or settlement of Shares under any
Restricted Stock or Restricted Stock Unit Award that is based solely upon continued employment
and/or the passage of time may not vest or be settled in full over a period of less than three
(3) years but may be subject to pro-rata vesting over such period, except that the Administrator
may provide for the satisfaction and/or lapse of all conditions under any such Award in the event
of the Participant’s death, disability, Retirement or in connection with a change of control of the
Company, and the Administrator may provide that any such restriction or limitation will not apply
in the case of a Restricted Stock or Restricted Stock Unit Award that is issued in payment or
settlement of compensation that has been earned by the Participant. Notwithstanding anything in
this Plan to the contrary, the performance criteria for any Restricted Stock or Restricted Stock
Unit that is intended to satisfy the requirements for “performance-based compensation” under
Section 162(m) of the Code will be a measure based on one or more Qualifying Performance Criteria
selected by the Administrator and specified when the Award is granted.

 

 (d) Discretionary Adjustments and Limits.  Subject to the limits imposed under
Section 162(m) of the Code for Awards that are intended to qualify as “performance based
compensation,” notwithstanding the satisfaction of any performance goals, the number of Shares
granted, issued, retainable and/or vested under an Award of Restricted Stock or Restricted Stock
Units on account of either financial performance or personal performance evaluations may, to the
extent specified in the Award Agreement, be reduced by the Administrator on the basis of such
further considerations as the Administrator shall determine.

 

 (e) Voting Rights.  Unless otherwise determined by the Administrator, Participants
holding shares of Restricted Stock granted hereunder may exercise full voting rights with respect
to those shares during the period of restriction. Participants shall have no voting rights with
respect to Shares underlying Restricted Stock Units unless and until such Shares are reflected as
issued and outstanding shares on the Company’s stock ledger.

 

 (f) Dividends and Distributions.  Participants in whose name Restricted Stock is granted
shall be entitled to receive all dividends and other distributions paid with respect to those
Shares, unless determined otherwise by the Administrator. The Administrator will determine whether
any such dividends or distributions will be automatically reinvested in additional shares of
Restricted Stock and subject to the same restrictions on transferability as the Restricted Stock
with respect to which they were distributed or whether such dividends or distributions will be paid
in cash. Shares underlying Restricted Stock Units shall be entitled to dividends or dividend
equivalents only to the extent provided by the Administrator.

 

   

 9.  Incentive Bonuses

 

 (a) General.  Each Incentive Bonus Award will confer upon the Participant the
opportunity to earn a future payment tied to the level of achievement with respect to one or more
performance criteria established for a performance period of not less than one year.

 

 (b) Incentive Bonus Document.  The terms of any Incentive Bonus will be set forth in an
Award Agreement. Each Award Agreement evidencing an Incentive Bonus shall contain provisions
regarding (i) the target and maximum amount payable to the Participant as an Incentive Bonus,
(ii) the performance criteria and level of achievement versus these criteria that shall determine
the amount of such payment, (iii) the term of the performance period as to which performance shall
be measured for determining the amount of any payment, (iv) the timing of any payment earned by
virtue of performance, (v) restrictions on the alienation or transfer of the Incentive Bonus prior
to actual payment, (vi) forfeiture provisions and (vii) such further terms and conditions, in each
case not inconsistent with this Plan as may be determined from time to time by the Administrator.

 

 (c) Performance Criteria.  The Administrator shall establish the performance criteria
and level of achievement versus these criteria that shall determine the target and maximum amount
payable under an Incentive Bonus, which criteria may be based on financial performance and/or
personal performance evaluations. The Administrator may specify the percentage of the target
Incentive Bonus that is intended to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code. Notwithstanding anything to the contrary herein, the performance
criteria for any portion of an Incentive Bonus that is intended by the Administrator to satisfy the
requirements for “performance-based compensation” under Section 162(m) of the Code shall be a
measure based on one or more Qualifying Performance Criteria (as defined in Section 13(b)) selected
by the Administrator and specified at the time the Incentive Bonus is granted. The Administrator
shall certify the extent to which any Qualifying Performance Criteria has been satisfied, and the
amount payable as a result thereof, prior to payment of any Incentive Bonus that is intended to
satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code.

 

 (d) Timing and Form of Payment.  The Administrator shall determine the timing of payment
of any Incentive Bonus. Payment of the amount due under an Incentive Bonus may be made in cash or
in Shares, as determined by the Administrator. The Administrator may provide for or, subject to
such terms and conditions as the Administrator may specify, may permit a Participant to elect for
the payment of any Incentive Bonus to be deferred to a specified date or event.

 

 (e) Discretionary Adjustments.  Notwithstanding satisfaction of any performance goals,
the amount paid under an Incentive Bonus on account of either financial performance or personal
performance evaluations may, to the extent specified in the Award Agreement, be reduced by the
Administrator on the basis of such further considerations as the Administrator shall determine.

 

   

 10.  Deferral of Gains

 

 The Administrator may, in an Award Agreement or otherwise, provide for the deferred
delivery of Shares or any other payment upon settlement, vesting or other events with respect to
Restricted Stock or Restricted Stock Units, or in payment or satisfaction of an Incentive Bonus.
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 Administrator 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.

 

   

 11.  Conditions and Restrictions Upon Securities Subject to Awards

 

 The Administrator may provide that the Shares issued upon exercise of an Option or Stock
Appreciation Right or otherwise subject to or issued under an Award shall be subject to such
further agreements, restrictions, conditions or limitations as the Administrator in its discretion
may specify prior to the exercise of such Option or Stock Appreciation Right or the grant, vesting
or settlement of such Award, including without limitation, conditions on vesting or
transferability, forfeiture or repurchase provisions and method of payment for the Shares issued
upon exercise, vesting or settlement of such Award (including the actual or constructive surrender
of Shares already owned by the Participant) or payment of taxes arising in connection with an
Award. Without limiting the foregoing, such restrictions may address the timing and manner of any
resales by the Participant or other subsequent transfers by the Participant of any Shares issued
under an Award, including without limitation (i) restrictions under an insider trading policy or
pursuant to applicable law, (ii) restrictions designed to delay and/or coordinate the timing and
manner of sales by Participant and holders of other Company equity compensation arrangements,
(iii) restrictions as to the use of a specified brokerage firm for such resales or other transfers
and (iv) provisions requiring Shares to be sold on the open market or to the Company in order to
satisfy tax withholding or other obligations.

 

   

 12.  Adjustment of and Changes in the Stock

 

 The number and kind of Shares available for issuance under this Plan (including
under any Awards then outstanding), and the number and kind of Shares subject to the individual
limits set forth in Section 5 of this Plan, shall be equitably adjusted by the Administrator to
reflect any reorganization, reclassification, combination of shares, stock split, reverse stock
split, spin-off, dividend or distribution of securities, property or cash (other than regular,
quarterly cash dividends), or any other event or transaction that affects the number or kind of
Shares of the Company outstanding. Such adjustment may be designed to comply with Section 425 of
the Code or, except as otherwise expressly provided in Section 5(c) of this Plan, may be designed
to treat the Shares available under the Plan and subject to Awards as if they were all outstanding
on the record date for such event or transaction or to increase the number of such Shares to
reflect a deemed reinvestment in Shares of the amount distributed to the Company’s securityholders.
The terms of any outstanding Award shall also be equitably adjusted by the Administrator as to
price, number or kind of Shares subject to such Award and other terms to reflect the foregoing
events, which adjustments need not be uniform as between different Awards or different types of
Awards.

 

 In the event there shall be any other 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 of control, other merger, consolidation
or otherwise, then the Administrator shall determine the appropriate and equitable adjustment to be
effected. In addition, in the event of such change described in this paragraph, the Administrator
may accelerate the time or times at which any Award may be exercised and may provide for
cancellation of such accelerated Awards that are not exercised within a time prescribed by the
Administrator in its sole discretion.

 

 No right to purchase fractional shares shall result from any adjustment in Awards
pursuant to this Section 12. 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 12 of such adjustment, but (whether or not
notice is given) such adjustment shall be effective and binding for all purposes of the Plan.

 

   

 13.  Qualifying Performance-Based Compensation

 

 (a) General.  The Administrator may establish performance criteria and level of
achievement versus such criteria that shall determine the number of Shares to be granted, retained,
vested, issued or issuable under or in settlement of or the amount payable pursuant to an Award,
which criteria may be based on Qualifying Performance Criteria or other standards of financial
performance and/or personal performance evaluations. In addition, the Administrator may specify
that an Award or a portion of an Award is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code, provided that the performance
criteria for such Award or portion of an Award that is intended by the Administrator to satisfy the
requirements for “performance-based compensation” under Section 162(m) of the Code shall be a
measure based on one or more Qualifying Performance Criteria selected by the Administrator and
specified at the time the Award is granted. The Administrator shall certify the extent to which any
Qualifying Performance Criteria has been satisfied, and the amount payable as a result thereof,
prior to payment, settlement or vesting of any Award that is intended to satisfy the requirements
for “performance-based compensation” under Section 162(m) of the Code. Notwithstanding satisfaction
of any performance goals, the number of Shares issued under or the amount paid under an award may,
to the extent specified in the Award Agreement, be reduced by the Administrator on the basis of
such further considerations as the Administrator in its sole discretion shall determine.

 

 (b) 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 Administrator: (i) cash flow (before or after dividends), (ii) earnings
per share (including earnings before interest, taxes, depreciation and amortization), (iii) stock
price, (iv) return on equity, (v) total stockholder return, (vi) return on capital (including
return on total capital or return on invested capital), (vii) return on assets or net assets,
(viii) market capitalization, (ix) economic value added, (x) debt leverage (debt to capital),
(xi) revenue, (xii) income or net income, (xiii) operating income, (xiv) operating profit or net
operating profit, (xv) operating margin or profit margin, (xvi) return on operating revenue,
(xvii) cash from operations, (xviii) operating ratio, (xix) operating revenue, or (xx) customer
service. To the extent consistent with Section 162(m) of the Code, the Administrator (A) shall
appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to
eliminate the effects of charges for restructurings, discontinued operations, extraordinary items
and all items of gain, loss or expense determined to be extraordinary or unusual in nature or
related to the disposal of a segment of a business or related to a change in accounting principle
all as determined in accordance with standards established by opinion No. 30 of the Accounting
Principles Board (APA Opinion No. 30) or other applicable or successor accounting provisions, as
well as the cumulative effect of accounting changes, in each case as determined in accordance with
generally accepted accounting principles or identified in the Company’s financial statements or
notes to the financial statements, and (B) 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: (i) asset write-downs, (ii) litigation, claims, judgments or settlements,
(iii) the effect of changes in tax law or other such laws or provisions affecting reported results,
(iv) accruals for reorganization and restructuring programs and (v) accruals of any amounts for
payment under this Plan or any other compensation arrangement maintained by the Company.

 

   

 14.  Transferability

 

 Each Award may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated by a Participant other than by will or the laws of descent and distribution, and each
Option or Stock Appreciation Right shall be exercisable only by the Participant during his or her
lifetime. Notwithstanding the foregoing, to the extent permitted by the Administrator, the person
to whom an Award is initially granted (the “Grantee”) may transfer an Award to any “family member”
of the Grantee (as such term is defined in Section 1(a)(5) of the General Instructions to Form S-8
under the Securities Act of 1933, as amended (“Form S-8”)), to trusts solely for the benefit of
such family members and to partnerships in which such family members and/or trusts are the only
partners; provided that, (i) as a condition thereof, the transferor and the transferee must execute
a written agreement containing such terms as specified by the Administrator, and (ii) the transfer
is pursuant to a gift or a domestic relations order to the extent permitted under the General
Instructions to Form S-8. Except to the extent specified otherwise in the agreement the
Administrator provides for the Grantee and transferee to execute, all vesting, exercisability and
forfeiture provisions that are conditioned on the Grantee’s continued employment or service shall
continue to be determined with reference to the Grantee’s employment or service (and not to the
status of the transferee) after any transfer of an Award pursuant to this Section 14, and the
responsibility to pay any taxes in connection with an Award shall remain with the Grantee
notwithstanding any transfer other than by will or intestate succession.

 

   

 15.  Suspension or Termination of Awards

 

 Except as otherwise provided by the Administrator, if at any time (including after a
notice of exercise has been delivered or an award has vested) the Chief Executive Officer or any
other person designated by the Administrator (each such person, an “Authorized Officer”) reasonably
believes that a Participant may have committed an Act of Misconduct as described in this
Section 15, the Authorized Officer, Administrator or the Board may suspend the Participant’s rights
to exercise any Option, to vest in an Award, and/or to receive payment for or receive Shares in
settlement of an Award pending a determination of whether an Act of Misconduct has been committed.

 

 If the Administrator or an Authorized Officer determines a Participant has committed an
act of embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Company or any
Subsidiary, breach of fiduciary duty, violation of Company ethics policy or code of conduct, or
deliberate disregard of the Company or Subsidiary rules resulting in loss, damage or injury to the
Company or any Subsidiary, or if a Participant makes an unauthorized disclosure of any Company or
Subsidiary trade secret or confidential information, solicits any employee or service provider to
leave the employ or cease providing services to the Company or any Subsidiary, breaches any
intellectual property or assignment of inventions covenant, engages in any conduct constituting
unfair competition, breaches any non-competition agreement, induces any Company or Subsidiary
customer to breach a contract with the Company or any Subsidiary or to cease doing business with
the Company or any Subsidiary, or induces any principal for whom the Company or any Subsidiary acts
as agent to terminate such agency relationship (any of the foregoing acts, an “Act of Misconduct”),
then except as otherwise provided by the Administrator, (i) neither the Participant nor his or her
estate nor transferee shall be entitled to exercise any Option or Stock Appreciation Right
whatsoever, vest in or have the restrictions on an Award lapse, or otherwise receive payment of an
Award, (ii) the Participant will forfeit all outstanding Awards and (iii) the Participant may be
required, at the Administrator’s sole discretion, to return and/or repay to the Company any then
unvested Shares previously issued under the Plan. In making such determination, the Administrator
or an Authorized Officer shall give the Participant an opportunity to appear and present evidence
on his or her behalf at a hearing before the Administrator or its designee or an opportunity to
submit written comments, documents, information and arguments to be considered by the
Administrator. Any dispute by a Participant or other person as to the determination of the
Administrator shall be resolved pursuant to Section 23 of the Plan.

 

   

 16.  Compliance with Laws and Regulations

 

 This Plan, the grant, issuance, vesting, exercise and settlement of Awards thereunder,
and the obligation of the Company to sell, issue or deliver Shares under such Awards, shall be
subject to all applicable foreign, federal, state and local laws, rules and regulations, stock
exchange rules and regulations, and to such approvals by any governmental or regulatory agency as
may be required. The Company shall not be required to register in a Participant’s name or deliver
any Shares prior to the completion of any registration or qualification of such shares under any
foreign, federal, state or local law or any ruling or regulation of any government body which the
Administrator shall determine to be necessary or advisable. To the extent the Company is unable to
or the Administrator deems it infeasible to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, the Company and its Subsidiaries shall be relieved of
any liability with respect to the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained. No Option shall be exercisable and no Shares shall be
issued and/or transferable under any other Award unless a registration statement with respect to
the Shares underlying such Option is effective and current or the Company has determined that such
registration is unnecessary.

 

 In the event an Award is granted to or held by a Participant who is employed or
providing services outside the United States, the Administrator may, in its sole discretion, modify
the provisions of the Plan or of such Award as they pertain to such individual to comply with
applicable foreign law or to recognize differences in local law, currency or tax policy. The
Administrator may also impose conditions on the grant, issuance, exercise, vesting, settlement or
retention of Awards in order to comply with such foreign law and/or to minimize the Company’s
obligations with respect to tax equalization for Participants employed outside their home country.

 

   

 17.  Withholding

 

 To the extent required by applicable federal, state, local or foreign law, a Participant
shall be required to satisfy, in a manner satisfactory to the Company, any withholding tax
obligations that arise by reason of an Option exercise, disposition of Shares issued under an
Incentive Stock Option, the vesting of or settlement of an Award, an election pursuant to
Section 83(b) of the Code or otherwise with respect to an Award. The Company and its Subsidiaries
shall not be required to issue Shares, make any payment or to recognize the transfer or disposition
of Shares until such obligations are satisfied. The Administrator may provide for or permit these
obligations to be satisfied through the mandatory or elective sale of Shares and/or by having the
Company withhold a portion of the Shares that otherwise would be issued to him or her upon exercise
of the Option or the vesting or settlement of an Award, or by tendering Shares previously acquired.

 

   

 18.  Administration of the Plan

 

 (a) Administrator of the Plan.  The Plan shall be administered by the Administrator who
shall be the Compensation Committee of the Board or, in the absence of a Compensation Committee,
the Board itself. Any power of the Administrator may also be exercised by the Board, except to the
extent that the grant or exercise of such authority would cause any Award or transaction to become
subject to (or lose an exemption under) the short-swing profit recovery provisions of Section 16 of
the Securities Exchange Act of 1934 or cause an Award designated as a Performance Award not to
qualify for treatment as performance-based compensation under Section 162(m) of the Code. To the
extent that any permitted action taken by the Board conflicts with action taken by the
Administrator, the Board action shall control. The Compensation Committee may by resolution
authorize one or more officers of the Company to perform any or all things that the Administrator
is authorized and empowered to do or perform under the Plan, and for all purposes under this Plan,
such officer or officers shall be treated as the Administrator; 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 Option agreement theretofore approved by the Compensation
Committee. No such officer shall designate himself or herself as a recipient of any Awards granted
under authority delegated to such officer. In addition, the Compensation Committee may delegate any
or all aspects of the day-to-day administration of the Plan to one or more officers or employees of
the Company or any Subsidiary, and/or to one or more agents.

 

 (b) Powers of Administrator.  Subject to the express provisions of this Plan, the
Administrator shall be authorized and empowered to do all things that it determines to be necessary
or appropriate in connection with the administration of this Plan, including, without limitation:
(i) to prescribe, amend and rescind rules and regulations relating to this Plan and to define terms
not otherwise defined herein; (ii) to determine which persons are Participants, to which of such
Participants, if any, Awards shall be granted hereunder and the timing of any such Awards; (iii) to
grant Awards to Participants and determine the terms and conditions thereof, including the number
of Shares subject to Awards and the exercise or purchase price of such Shares and the circumstances
under which Awards become exercisable or vested or are forfeited or expire, which terms may but
need not be conditioned upon the passage of time, continued employment, the satisfaction of
performance criteria, the occurrence of certain events (including events which the Board or the
Administrator determine constitute a change of control), or other factors; (iv) to establish and
verify the extent of satisfaction of any performance goals or other conditions applicable to the
grant, issuance, exercisability, vesting and/or ability to retain any Award; (v) to prescribe and
amend the terms of the agreements or other documents evidencing Awards made under this Plan (which
need not be identical) and the terms of or form of any document or notice required to be delivered
to the Company by Participants under this Plan; (vi) to interpret and construe this Plan, any rules
and regulations under this Plan and the terms and conditions of any Award granted hereunder, and to
make exceptions to any such provisions in good faith and for the benefit of the Company; and
(vii) to make all other determinations deemed necessary or advisable for the administration of this
Plan.

 

 (c) Determinations by the Administrator.  All decisions, determinations and
interpretations by the Administrator regarding the Plan, any rules and regulations under the Plan
and the terms and conditions of or operation of any Award granted hereunder, shall be final and
binding on all Participants, beneficiaries, heirs, assigns or other persons holding or claiming
rights under the Plan or any Award. The Administrator shall consider such factors as it deems
relevant, in its sole and absolute discretion, to making such decisions, determinations and
interpretations including, without limitation, the recommendations or advice of any officer or
other employee of the Company and such attorneys, consultants and accountants as it may select.

 

 (d) Subsidiary Awards.  In the case of a grant of an Award to any Participant employed
by a Subsidiary, such grant may, if the Administrator so directs, be implemented by the Company
issuing any subject Shares to the Subsidiary, for such lawful consideration as the Administrator
may determine, upon the condition or understanding that the Subsidiary will transfer the Shares to
the Participant in accordance with the terms of the Award specified by the Administrator pursuant
to the provisions of the Plan. Notwithstanding any other provision hereof, such Award may be issued
by and in the name of the Subsidiary and shall be deemed granted on such date as the Administrator
shall determine.

 

   

 19.  Amendment of the Plan or Awards

 

 The Board may amend, alter or discontinue this Plan and the Administrator may amend, or
alter any agreement or other document evidencing an Award made under this Plan but, except as
provided pursuant to the provisions of Section 12, 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 Options may be granted below the price provided for in
Section 6(a);

(c) reduce the exercise price of outstanding Options;

 

(d) extend the term of this Plan;

 

(e) change the class of persons eligible to be Participants;

 

(f) otherwise amend the Plan in any manner requiring stockholder approval by law or under
the NASDAQ National Market listing requirements; or

 

(g) increase the individual maximum limits in Sections 5(c) and (d).

 

 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 the Administrator determines in its sole discretion and
prior to the date of any change of control (as defined in the applicable Award Agreement) 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.

 

   

 20.  No Liability of Company

 

 The Company and any Subsidiary or affiliate which is in existence or hereafter comes
into existence shall not be liable to a Participant or any other person as to: (i) the non-issuance
or sale of Shares as to which the Company has been unable to obtain from any regulatory body having
jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance
and sale of any Shares hereunder; and (ii) any tax consequence expected, but not realized, by any
Participant or other person due to the receipt, exercise or settlement of any Award granted
hereunder.

 

   

 21.  Non-Exclusivity of Plan

 

 Neither the adoption of this Plan by the Board nor the submission of this Plan to the
stockholders of the Company for approval shall be construed as creating any limitations on the
power of the Board or the Administrator to adopt such other incentive arrangements as either may
deem desirable, including without limitation, the granting of restricted stock or stock options
otherwise than under this Plan or an arrangement not intended to qualify under Code Section 162(m),
and such arrangements may be either generally applicable or applicable only in specific cases.

 

   

 22.  Governing Law

 

 This Plan and any agreements or other documents hereunder shall be interpreted and
construed in accordance with the laws of the Delaware and applicable federal law. Any reference in
this Plan or in the agreement or other document evidencing any Awards to a provision of law or to a
rule or regulation shall be deemed to include any successor law, rule or regulation of similar
effect or applicability.

 

   

 23.  Arbitration of Disputes

 

 In the event a Participant or other holder of an Award or person claiming a right under
an Award or the Plan believes that a decision by the Administrator with respect to such person or
Award was arbitrary or capricious, the person may request arbitration with respect to such
decision. The review by the arbitrator shall be limited to determining whether the Participant or
other Award holder has proven that the Administrator’s decision was arbitrary or capricious. This
arbitration shall be the sole and exclusive review permitted of the Administrator’s decision.
Participants, Award holders and persons claiming rights under an Award or the Plan explicitly waive
any right to judicial review.

Notice of demand for arbitration shall be made in writing to the Administrator within thirty
(30) days after the applicable decision by the Administrator. The arbitrator shall be selected by
those members of the Board who are neither members of the Compensation Committee of the Board nor
employees of the Company or any Subsidiary. If there are no such members of the Board, the
arbitrator shall be selected by the Board. The arbitrator shall be an individual who is an attorney
licensed to practice law in the jurisdiction in which the Company’s headquarters are then located.
Such arbitrator shall be neutral within the meaning of the Commercial Rules of Dispute Resolution
of the American Arbitration Association; provided, however, that the arbitration shall not be
administered by the American Arbitration Association. Any challenge to the neutrality of the
arbitrator shall be resolved by the arbitrator whose decision shall be final and conclusive. The
arbitration shall be administered and conducted by the arbitrator pursuant to the Commercial Rules
of Dispute Resolution of the American Arbitration Association. Each side shall bear its own fees
and expenses, including its own attorney’s fees, and each side shall bear one half of the
arbitrator’s fees and expenses. The decision of the arbitrator on the issue(s) presented for
arbitration shall be final and conclusive and may be enforced in any court of competent
jurisdiction.

 

   

 24.  No Right to Employment, Reelection or Continued Service

 

 Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the
right of the Company, its Subsidiaries and/or its affiliates to terminate any Participant’s
employment, service on the Board or service for the Company at any time or for any reason not
prohibited by law, nor shall this Plan or an Award itself confer upon any Participant any right to
continue his or her employment or service for any specified period of time. Neither an Award nor
any benefits arising under this Plan shall constitute an employment contract with the Company, any
Subsidiary and/or its affiliates. Subject to Sections 4 and 19, this Plan and the benefits
hereunder may be terminated at any time in the sole and exclusive discretion of the Board without
giving rise to any liability on the part of the Company, its Subsidiaries and/or its affiliates.

 

   

 25.  Unfunded Plan

 

 The Plan is intended to be an unfunded plan. Participants are and shall at all times be
general creditors of the Company with respect to their Awards. If the Administrator or the Company
chooses to set aside funds in a trust or otherwise for the payment of Awards under the Plan, such
funds shall at all times be subject to the claims of the creditors of the Company in the event of
its bankruptcy or insolvency.

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