Document:

exv10w34

 

EXHIBIT 10.34

	 	 	 
	Employee Name:	 	
Alfred T. Mockett
	Employee No:	 	
28961

American Management Systems, Incorporated

Deferred Stock Unit Agreement

     You have been granted a right, in the form of deferred stock units (the
“Units”), to receive shares of common stock, par value $0.01 (“Shares”), of
American Management Systems, Incorporated (the “Company”) by the Company’s
Board of Directors as an inducement to entering into the employment agreement
that was entered into between you and the Company effective as of December 1,
2001, as amended (the “Employment Agreement”). The Units are subject to the
terms and conditions set forth below and in the Employment Agreement, and, to
the extent that Shares are issued or delivered in satisfaction of the Units
under the American Management Systems Restricted Stock and Stock Bonus Plan
(the “Restricted Stock Plan”), in the Restricted Stock Plan.

     A Unit is a contract right to receive a Share on the maturity date of the
Unit. You will have no rights as a shareholder with respect to the Shares
underlying the Units until the Shares actually are issued or delivered to you.
Until that time, your rights under the Units will be those of a general
unsecured creditor of the Company.

     Capitalized terms not defined in this Agreement are defined in the
Employment Agreement or Restricted Stock Plan.

	 	 	 	 	 	 	 	 	 	 
	 	 	
1.	 	 	Number of Shares:
	 	177,000	 
	 	 	
2.	 	 	Date of Grant:
	 	December 1, 2001	 
	 	 	
3.	 	 	Purchase Price:
	 	$0 per share	 

     4.     Vesting Dates: You will forfeit the unvested portion of the
Units and the Shares subject to that portion of the Units when you terminate
employment with the Company. The Units will vest in 25% increments on the
first, second, third and fourth anniversaries of the date of grant as follows:

	 	 	 	 	 
	Vesting Date	 	Number of Shares
	
	 	

	12/01/2002	 	 	
44,250	 
	 	 	 	 	 
	12/01/2003	 	 	
44,250	 
	 	 	 	 	 
	12/01/2004	 	 	
44,250	 
	 	 	 	 	 
	12/01/2005	 	 	
44,250	 
	 	 	 	

	 
	Total	 	 	
177,000	 

Notwithstanding the foregoing, the Units will fully vest upon the first to
occur of any of the following: (a) termination of the Employment Agreement due
to the Company’s failure or refusal to extend the term of the Employment
Agreement pursuant to Section 1 thereof, (b) termination of your employment due
to your death or disability, (c) termination (or constructive termination, as
defined in the Employment Agreement) of your employment without Cause, and (d)
a Change of Control of the Company. For purposes of this Agreement, you will
be considered disabled if, as a result of your incapacity due to

 

 

physical or mental illness, you will have been unable regularly to perform
substantially all of your duties under the Employment Agreement for an entire
period of six (6) consecutive months.

     5.     Maturity Date: Upon the maturity date of the Units,
certificates representing the Shares subject to the Units will be registered in
your name and delivered, free of all restrictions, except any restrictions that
may be imposed by law, to you or your beneficiary or legal representative. The
maturity date of the Units will be December 1, 2005; provided, however, that
you will have the right to elect to defer the maturity date of the Units to a
later date designated by you. Such a deferral election must be made before the
beginning of the calendar year immediately preceding the calendar year in which
the maturity date otherwise would occur, in such manner as is specified by the
Company, and, once made, will be irrevocable. Notwithstanding the foregoing,
the Company will not be required to issue or deliver any certificates for
Shares until all of the following conditions are satisfied:

              a.     The admission of such Shares to listing on all stock exchanges on which
the stock is then listed, if any;

              b.     The completion of any registration or other qualification of such
Shares under any federal or state law, under the rulings or regulations of the
Securities and Exchange Commission, or under any other governmental regulatory
agency that the Company will in its sole discretion determine to be necessary
or advisable;

              c.     The obtaining of any approval or other clearance from any federal or
state governmental agency that the Company will in its sole discretion
determine to be necessary or advisable; and

              d.     The lapse of such reasonable period of time following the expiration of
the restrictions as the Company from time to time may establish for reasons of
administrative convenience.

Shares granted on the maturity date of the Units shall be granted, to the
extent possible (or to the extent determined by the Compensation Committee in
its discretion, if less), as Discretionary Awards under the Restricted Stock
Plan.

     6.     Non-Transferability: The Units may not be sold, transferred, or
otherwise alienated or hypothecated other than by will or the laws of descent
and distribution, or pursuant to a qualified domestic relations order.

     7.     Method of Beneficiary Designation: You may designate a
beneficiary (or beneficiaries) to receive any stock certificate that is to be
delivered under the Units on or after your death. The designation may be made
in the space provided. You agree that you will furnish the Company promptly
any changes in such beneficiary’s address; the Company will not be responsible
for failure to locate, and pay a beneficiary in the event of failure to provide
a change of address. The beneficiary designation will be effective until it is
superseded by a subsequent written designation or revocation.

     8.     Dividend Equivalents. On each dividend payment date you will be
credited with dividend equivalents equal to the amount of dividends that would
be payable to you if you held the Shares subject to the Units on the dividend
record date. Upon the maturity date of the Units, the dividend equivalents
will be paid to you in in shares based on the price of the shares on the
dividend payment date. Until that time, your rights to the dividend
equivalents will be those of a general unsecured creditor of the Company.

     9.     Withholding. You will be responsible for the payment of all
federal and state income taxes and Social Security (FICA) taxes required to be
withheld and paid with respect to the Units and Shares subject to the Units.
At the Company’s option, the Company may (i) withhold the appropriate amount
from your paycheck(s) and from any dividend equivalents or dividends paid with
respect to the Units or Shares subject to the Units, or (ii) require you to pay
the amount of the withholding tax to the Company and treat your timely payment
of such amount to the Company as an additional restriction on the Units. At
the Company’s option, you may satisfy all or part of your obligation to pay the
withholding tax by transferring Shares to the Company or by cash settlement of
the right to receive Shares under the Units. Your obligation will be satisfied
to the extent of the then fair market value of the Shares.

 

 

     10.     Non-Contravention of Securities Laws. Notwithstanding anything
to the contrary in this Agreement, any provisions of this Agreement that vary
from or conflict with any applicable Federal or State securities laws
(including any regulations promulgated thereunder) will be deemed to be
modified to conform to and comply with those laws.

     11.     Unenforceability of Particular Provisions. The
unenforceability of any particular provision of this Agreement will not affect
the other provisions, and this Agreement will be construed in all respects as
if the unenforceable provision were omitted.

     12.     Adjustment Provisions. In the event of changes in the common
stock of the Company by reason of any stock split, combination of shares, stock
dividend, reclassification, merger, consolidation, reorganization,
recapitalization or similar adjustment, or by reason of the dissolution or
liquidation of the Company, appropriate adjustments may be made in the number
and class of shares subject to the Units. Whether any adjustment or
modification is to be made as a result of the occurrence of any of the events
specified in this section, and the extent thereof, will be determined by the
Board of Directors of the Company, whose determination will be binding and
conclusive. The existence of the Units or this Agreement will in no way impair
the right of the Company or its stockholders to make or effect any adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business, or any merger, consolidation, dissolution or
liquidation of the Company, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the common stock of the Company,
or any grant of options or other rights with respect to its stock.

     13.     Limitation of Rights. Neither the adoption and maintenance of
this Agreement or the grant of Units will (a) limit the right of the Company to
discharge or discipline you, or otherwise terminate or modify the terms of your
employment, to the extent permitted under the Employment Agreement, or (b)
confer upon you any contract or other right or interest under this Agreement
other than as specifically provided in this Agreement and the Employment
Agreement.

     14.     Applicable Law. To the extent that state law is not preempted
by any laws of the United States, this Agreement will be construed, regulated,
interpreted and administered according to the laws of the Commonwealth of
Virginia.

     15.     Successors. The provisions of this Agreement will be binding
upon, and inure to the benefit of, all of your successors, including, without
limitation, your estate and the executors, administrators or trustees thereof,
your heirs and legatees, and any receiver, trustee in bankruptcy or
representative of your creditors.

     16.     Amendments. The Compensation Committee may amend or modify
this Agreement, except that no amendment or modification will adversely affect
your rights and obligations under this Agreement unless you consent in writing.

 

 

By signing this Agreement, you accept the Award subject to the terms and
conditions of this Agreement and the Employment Agreement.

	 	 	 
	OPTIONEE:	 	
WITNESS:
	 
	/s/   Alfred T. Mockett

Alfred T. Mockett	 	
/s/ Teresa Wolken

(Signature)

     The Company by its duly-authorized officer agrees that the Award is
granted under the terms and conditions of this Agreement and the Employment
Agreement.

	 	 	 	 	 	 	 
	 	 	
ATTEST:
	 	AMERICAN MANAGEMENT SYSTEMS

INCORPORATED, a Delaware Company
	 
	By:	 	
/s/ Maureen Palmer

   (Signature)
	 	By:
	 	/s/ John S. Brittain, Jr.

   (Signature)exv10w35

 

Exhibit 10.35

AMERICAN MANAGEMENT SYSTEMS, INCORPORATED

STOCKBUILDER PLAN

1.     PURPOSE

     The purpose of the StockBuilder Plan (the “Plan”) is to attract and retain
employees of outstanding ability by making available to them a convenient means
of acquiring ownership of the $0.01 par value common stock (the “Common Stock”)
of American Management Systems, Incorporated (the “Company”). The Company
believes that stock ownership by its employees and employees of its wholly
owned participating subsidiaries will encourage greater employee dedication to
the Company’s growth, development and success.

     Participation in the Plan is entirely voluntary. There is no guarantee
under the Plan against loss because of fluctuations in the market price of the
Common Stock.

2.     ELIGIBILITY TO PARTICIPATE

     Each employee of the Company or of a participating wholly owned subsidiary
who has attained the age of majority (18 years of age in most cases) shall be
eligible to participate in the Plan, except directors and officers who, in the
Company’s sole judgment, are determined to be subject to Section 16 of the
Securities Exchange Act of 1934, as amended; provided, however, that an
individual who has previously participated in the Plan and whose participation
in the Plan has terminated may not participate in the Plan again until the next
open enrollment period. (See Section 4, “Participation-Payroll Deductions”,
for information about open enrollment periods.) Both full-time and part-time
employees shall be eligible to participate in the Plan. Notwithstanding the
foregoing, effective January 1, 2002, any officer of the Company shall be
eligible to participate in the Plan even if such officer is subject to Section
16 of the Securities Exchange Act of 1934 and no “Five Percent Stockholder”
shall be permitted to participate in the Plan. A “Five Percent Stockholder”
shall mean a person who, taking into account any stock in the Company that may
be purchased on the next purchase date, owns stock possessing five percent (5%)
or more of the total combined voting power or value of all classes of stock of
that person’s employer corporation or its parent or subsidiary corporation.
“Five Percent

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Stockholder” status shall be determined within the meaning of
Section 423(b)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”), and the regulations promulgated thereunder.

3.     ENROLLMENT

     Each eligible individual may become a participant in the Plan (a
“Participant”) by filing with AMS Benefits Office, 4050 Legato Road, 4th Floor,
Fairfax, Virginia 22033 (“Benefits Office”), or with the payroll office (the
“Payroll Office”) of the participating wholly owned subsidiary of the Company
for which the individual works, an enrollment form and such other forms as are
requested by the Company, the Recordskeeper or the Broker. (See Section 8 for
the definition of the term “Broker” and Section 20 for the definition of the
term “Recordskeeper”). Contracts between the Company or any participating
subsidiary and the Recordskeeper or Broker, as the case may be, shall specify
the forms required by the Recordskeeper and/or Broker. The employee’s
participation in the Plan will begin as soon as practicable after the necessary
forms are received by the Benefits Office or the appropriate Payroll Office.
Appropriate enrollment forms for these purposes shall be provided by the
Company.

4.     PARTICIPATION-PAYROLL DEDUCTIONS

     All Participant contributions under the Plan shall be made only through
payroll deductions. Each Participant shall specify in the enrollment form the
amount to be withheld from his or her earnings. The Participant shall
authorize his or her employer to withhold the authorized amount from the
Participant’s salary or wages in each payroll period thereafter until the
Participant’s participation in the Plan is terminated or until the amount of
such deduction shall be changed or suspended as provided below.

     Payroll deductions shall be made in either a fixed dollar amount or as a
percent of qualified gross earnings for the relevant pay period, depending upon
the currency in which the Participant is paid. For Participants who are paid
in U.S. or Canadian dollars, payroll deductions must be made as a percent of
qualified gross earnings. For Participants who are
paid in currency other than U.S. or Canadian dollars, or in any combination of
U.S. dollars and another currency, payroll deductions must be made as a fixed
dollar amount.

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     Deductions from Participants who are paid in currency other than U.S. or
Canadian dollars, or in any combination of U.S. dollars and other currency, are
converted to U.S. dollars for purchasing purposes. The rate of conversion is
based on the average of the exchange rates in effect on the last five business
days of the month prior to the month in which the deduction is made. The
Company will determine the exchange rate in its sole discretion.

     If the fixed dollar deduction method is employed, the amount deducted must
be not less than U.S. $5 per payroll period and not greater than the larger of
(i) 10% of the Participant’s average qualified gross earnings per payroll
period for the prior year, and (ii) 10% of the Participant’s regular salary per
payroll period for the current year plus 1/24th of the sales commissions to be
received by the Participant from the Participant’s employer in the current
year.

     If the percentage deduction method is employed, the percentage may not be
less than 1%, nor more than 10% (in .1% increments), of qualified gross
earnings for the payroll period.

     Qualified gross earnings shall be limited to regular salary, overtime,
shift differential payments, and sales commissions. Thus, qualified gross
earnings excludes all other forms of cash and non-cash compensation, such as
travel bonuses, performance bonuses, incentive compensation, special bonuses in
lieu of incentive compensation, taxable moving and relocation advances and
reimbursements, and payments in lieu of unused leave.

     If a Participant’s contributions for the year would exceed 10% of his or
her qualified gross earnings, the Company will disallow contributions in
payroll periods to the extent necessary to lower the total annual contribution
to 10% of the Participant’s qualified gross earnings.

     A Participant may increase or decrease the amount of payroll deductions,
only during the two annual open enrollment periods which normally occur within
six months of each
other. A Participant may cease payroll deductions at any time, but
re-enrollment may only occur during the two annual open enrollment periods.
Each such change shall be made by filing an

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amended enrollment form with the
Benefits Office or the appropriate Payroll Office and shall become effective as
soon as practicable after the amended form is received.

5.     SOURCE OF SHARES AND PURCHASE PRICE

     Shares of Common Stock purchased by the Broker from the Company pursuant
to Section 7 of the Plan shall be from the Company’s treasury stock. The
purchase price for each share of Common Stock shall be equal to (A) the Fair
Market Value of a share of Common Stock as of the purchase date, discounted by
(B) fifteen percent (15%). Fair Market Value for purposes of this Section 5
shall mean the closing bid price of the Common Stock quoted over the National
Association of Securities Dealers Automated Quotation System (“NASDAQ”) in the
national market for the purchase date, or if there is no trade on such date,
the closing bid price on the last preceding date upon which such Common Stock
was traded. In the event that the Common Stock is not traded over NASDAQ, Fair
Market Value shall be defined as the closing bid price of a share of Common
Stock published in the National Daily Stock Quotation Summary on the purchase
date, or if there are no quotations published on such date, the closing bid
price on the last preceding date upon which such Common Stock was quoted. In
the event that the Common Stock is listed upon an established stock exchange or
exchanges, Fair Market Value shall be deemed to be the highest closing price of
the Common Stock on such stock exchange or exchanges on the purchase date, or
if no sale of the Common Stock shall have been made on any exchange on that
date, then the next preceding day on which there was a sale of such stock. In
the event that Fair Market Value cannot be determined under the foregoing
sentences, Fair Market Value shall be determined by the Board of Directors.

6.     TRANSMITTAL OF CONTRIBUTIONS

     Each employer shall accumulate on a per payperiod basis and hold, without
interest, all amounts deducted from the earnings of its Participants.

     All such amounts accumulated shall be transmitted by the Company to the
Recordskeeper or Broker as promptly as possible after the close of the
payperiod of withholding. The contract with the Recordskeeper and/or Broker
shall specify the party that shall receive the

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transmittal. A list of the
names, account numbers and amount withheld in respect of each Participant shall
be transmitted to the Broker or Recordskeeper with each transmittal of monies
by the Company under the Plan.

7.     PURCHASES OF SHARES

     Upon receipt of funds from the Company pursuant to the Plan, the Broker
shall, as promptly as practicable, purchase from the Company as many whole
shares of Common Stock as the aggregate of such funds will permit at such
purchase price as is determined in accordance with Section 5 of the Plan.

8.     THE BROKER

     The Company shall have the power to designate the broker that will make
purchases of Common Stock for the benefit of employees participating in the
Plan (the “Broker”). The Company shall not be required to hire one Broker to
provide all brokerage services under the Plan; provided, that, if more than one
Broker is hired, the services contracts with each Broker shall specify the
Participants to or for whom the Broker shall provide services. The Broker may
open and maintain individual accounts in the names of the Participants, such
accounts being based in the U.S. or Canada as appropriate; notwithstanding the
foregoing, the Company, in its discretion, may instead instruct the Broker to
establish an account in the name of the Company. The services contract with
the Broker shall specify whether individual accounts are to be opened and
maintained in the names of Participants or whether an account shall be opened
in the name of the Company. The Company shall not be required to use the same
method of holding Common Stock (i.e., the use of a Company account or
individual accounts) for all Participants. If an individual account is
established with respect to a Participant, the relationship between the Broker
and the Participant would be the customary relationship of a broker and its
client and the Company would have no responsibility in this
regard except for payroll deductions and remittance of such funds to the
Broker. If a Company account is established, the Company shall act as a
fiduciary with respect to Common Stock held in the account; provided, that, the
Company shall have no fiduciary obligation other than the holding of

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such
stock. The Company shall have the right to change its designation of the
Broker, and the Broker shall have the right to terminate its services as Broker
under the Plan as provided in the applicable contract.

9.     EXPENSES

     Brokerage commissions on purchases of Common Stock under the Plan and all
administrative fees of the Broker incurred in connection with the Plan shall be
paid by the Participant’s employer.

     Brokerage commissions and other expenses incurred in connection with
purchases of additional Common Stock or sales and other transfers of Common
Stock shall be paid by the Participant.

10.     ALLOCATION OF SHARES TO PARTICIPANTS

     In the event that shares purchased by the Broker are held in a Company
account, for each purchase of shares by the Broker, the Recordskeeper shall
allocate the shares in the Company account to the Participants in proportion to
the amount of funds delivered to the Broker on behalf of each such Participant.
In the event that the services contract with the Broker provides for the
establishment of individual accounts for Participants, shares purchased by the
Broker shall be allocated to the respective accounts of the Participants in
proportion to the amount of such funds delivered to the Broker on behalf of
each Participant.

     Allocation shall be made in whole shares and fractional share interests to
the nearest thousandth of a share. Allocations shall be made as soon as is
administratively feasible, but in no event sooner than three (3) business days
after the purchase of Common Stock.

     If shares are purchased at more than one price in any one payperiod, the
cost of each share purchased in that payperiod shall be the average cost of all
shares purchased with funds transmitted to the Broker for that payperiod.

11.     OWNERSHIP OF SHARES BY PARTICIPANT

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     At the time of purchase, each Participant immediately shall acquire
beneficial ownership of its respective shares and fractional share interests
purchased by the Broker, unless the Participant establishes an individual
account with the Broker and requests that the shares be registered in the
Participant’s name.

     If the services contract with the Broker provides for the establishment of
individual accounts, then unless otherwise requested by the Participant, all
shares shall be registered in the name of the Broker and shall remain so
registered until delivery or sale of the shares is requested by the
Participant. If the services contract with the Broker provides for the
establishment of an account in the name of the Company, all shares shall be
registered in the name of the Company. Under either method of holding shares
purchased under the Plan, a Participant may request a certificate for any or
all of his or her whole shares to be delivered to him or her at any time. A
Participant may not require delivery of a certificate for a fractional interest
in a share because the remaining fraction of that share is owned by other
Participants. However, the Participant may instruct the Recordskeeper or
Broker to sell the fractional interest and remit the proceeds to him or her.
The services contract with the Recordskeeper or Broker shall specify whether
the Recordskeeper or Broker is to be provided with the requisite instruction.

     If the services contract with the Broker provides for the establishment of
an account in the name of the Company, a Participant may make arrangements to
transfer his or her pro-rata share of the shares in the Company account to an
individual account that the Participant opens with the Broker. The Participant
must notify the Recordskeeper of any such arrangements.

12.     SALE OF SHARES BY PARTICIPANT

     A Participant may instruct the Broker or Recordskeeper to sell any or all
of the whole shares and any fractional interest in a share held in his or her
individual account or his or her pro-rata portion of shares held in a Company
account. The services contract with the

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Broker or Recordskeeper will specify
the party to whom a Participant must provide sale instructions. The Broker or
Recordskeeper may establish rules requiring that any sale instructions be
delivered by a specified time or in a specified manner. Upon such sale, the
Broker or Recordskeeper will mail the Participant a check for the proceeds in
U.S. or Canadian dollars, or such other currency as may be specified in the
contract with the Broker or Recordskeeper, as the case may be, less the regular
brokerage commission and any transfer taxes, registration fee or other normal
charges which shall be payable by the Participant.

     A sale of all shares owned by a Participant, or a request for delivery of
certificates for all shares owned, shall not affect the employee’s status as a
Participant unless the employee also terminates his or her payroll deduction
authorization.

13.     ADDITIONAL PURCHASES BY PARTICIPANT

     If an individual account is established for a Participant, such
Participant may, at any time, instruct the Broker in writing to purchase
additional shares of Common Stock for his or her individual account. Any such
purchases shall be made by the Broker in the open market and in accordance with
the customary practices of brokers in executing orders for customers. All
costs and expenses relating to any such additional purchases shall be borne by
the Participant. Shares of Common Stock so purchased for a Participant
pursuant to this section shall be allocated to such Participant’s individual
account and such shares shall thereafter be held and dealt with by the Broker
in accordance with the terms of the Plan.

14.     CONFIRMATION

     The Broker or Recordskeeper will forward to each Participant, on a
quarterly basis, a confirmation statement indicating the number of shares of
Common Stock acquired under the Plan (including, for Canadian participants,
fractions to the fourth decimal and, for all
other participants, fractions to the sixth decimal) for his or her account, the
cost of the shares in U.S. or Canadian dollars, the date of acquisition, and
the total number of shares then credited to his or her account. The services
contract with the Broker or Recordskeeper shall specify the party that is to
provide the account statements.

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15.     DISTRIBUTIONS ON COMMON STOCK

     A Participant’s individual account, or his or her pro-rata share in the
Company account, will be credited with any and all dividends paid with respect
to the full shares and any fractional interest in a share held in his or her
account or his or her pro-rata share in the Company account. Any cash
dividends will be reinvested in Common Stock as promptly as practicable
following receipt of the dividends by the Broker, unless the Participant
instructs the Broker or Recordskeeper to the contrary. The source of such
shares shall be from either the Company’s treasury stock or the open market, as
determined by the Board. If the source of the shares is the Company’s treasury
stock, the purchase price per share shall be the Fair Market Value of a share
of Common Stock determined in accordance with Section 5 of the Plan. The
services contract with the Broker or Recordskeeper shall specify the party to
which the Participant must issue instructions. Regular brokerage commissions
payable by the Participant (or the Company, if the Participant’s shares are
held in a Company account) with respect to Common Stock purchased with
reinvested cash dividends will be deducted from the amount of each dividend to
be reinvested.

     Stock dividends and stock splits in respect of shares held in the
Participant’s account or the Company account will be credited to the applicable
account without charge. Any other securities or subscription rights
distributed with respect to the Common Stock will be sold and the proceeds will
be applied in the same manner as a cash dividend.

16.     VOTING AND OTHER RIGHTS

     All rights of an owner of Common Stock shall vest in a Participant upon
the date when shares are credited to his or her individual account or the
Company account. Voting rights in respect of such shares shall be exercised by
the Broker in accordance with the
Participant’s signed proxy instructions duly delivered to the Broker or
Recordskeeper. The services contract with the Broker or Recordskeeper shall
specify the party to which a Participant must deliver proxy instructions. The
Broker or Recordskeeper will deliver to each Participant, as promptly as
practicable, by mail or otherwise, all notices of meetings, proxy statements
and other material

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distributed by the Company to its stockholders. The
services contract with the Broker or Recordskeeper shall specify the party that
shall deliver such information. There will be no charge to the Participant for
the Broker’s retention or delivery of stock certificates or in connection with
notices, proxies or other such material.

17.     VOLUNTARY WITHDRAWAL FROM THE PLAN

     A Participant may withdraw from the Plan at any time by delivering to the
Benefits Office or the appropriate Payroll Office a written notice terminating
his or her payroll deduction authorization. The withdrawal shall become
effective as soon as practicable after receipt of the notice by the
Participant’s employer. Any withdrawal by a Participant will not in itself
affect the status of the Participant’s account with the Broker or otherwise
affect his or her client relationship with the Broker. Upon receipt of the
Participant’s instruction, the Participant’s pro-rata share in the Company
account (if any) will be sold, distributed to the Participant or transferred to
an individual account opened by the Participant.

18.     AUTOMATIC WITHDRAWAL FROM THE PLAN

     Participation in the Plan and attendant payroll deductions shall terminate
automatically without notice (i) upon the Participant’s death or other
termination of employment with the Company or a participating wholly owned
subsidiary, (ii) upon commencement of the Participant’s authorized voluntary
leave without pay or (iii) upon a transfer of the Participant to the payroll of
another wholly owned subsidiary of the Company.

19.     RE-ENROLLMENT

     A Participant who has voluntarily withdrawn from the Plan or whose
participation terminated automatically (other than as a result of the
Participant’s transfer to the payroll of another wholly owned subsidiary of the
Company), and who is later eligible to participate in the
Plan, may re-enroll in the Plan; however, such re-enrollment may only occur
during an open enrollment period. A Participant whose participation has
automatically terminated due to a transfer to the payroll of another wholly
owned subsidiary of the Company may re-enroll within

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30 days of such transfer.
The procedure for re-enrollment shall be the same as for an employee’s initial
enrollment in the Plan.

20.     ADMINISTRATION

     The Plan shall be administered by the Company’s Board of Directors, or
such committee of directors as the Board may appoint. The Board or such
committee shall have the authority to make rules and regulations for carrying
out the Plan as it may deem advisable, including, but not limited to,
designation of participating wholly owned subsidiaries of the Company. The
Board or such committee may delegate its authority to designate participating
subsidiaries to any executive officer of the Company and to any person
designated by the executive officer to act in his or her stead. Interpretation
and construction of any provision of the Plan by the Board or such committee
shall be final and conclusive. Neither the Board nor any committee shall
receive compensation from the Plan.

     The Company may hire one or more recordskeepers (the “Recordskeeper”) to
assist the Company with the administration of the Plan. If more than one
Recordskeeper is hired, the services contract with each Recordskeeper shall
specify the group of Participants for whom the Recordskeeper is to provide
services.

     Effective January 1, 2002, this Plan shall be administered such that all
employees granted an option to purchase stock in the Company under this Plan
shall have the same rights and privileges, within the meaning of Section
423(b)(5) of the Code and the regulations promulgated thereunder.

21.     AMENDMENTS, SUSPENSION AND TERMINATIONS

     The Board of Directors of the Company may, from time to time, without
stockholder approval, amend, suspend, or terminate, in whole or in part, any or
all of the provisions of the Plan, except that no amendment, suspension or
termination may be made
which, in the judgment of the Board of Directors, will retroactively affect
adversely the rights of Participants in the Plan. No part of the funds or
shares of Common Stock credited to the account of any Participant shall be
subject to forfeiture for any reason.

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22.     RESTRICTIONS ON RESALE

     Shares acquired by Participants who are not affiliates of the Company may
be freely resold without registration under the Securities Act of 1933, as
amended and without the need to comply with Rule 144 thereunder.

     Public resales by Participants who are affiliates of the Company will be
subject to registration under the Securities Act of 1933, as amended, or an
exemption therefrom, such as compliance with the requirements of Rule 144,
other than the holding period requirement of Paragraph (d) of Rule 144.

23.     EFFECTIVE DATE

     Except as otherwise provided herein, the Plan, as set forth herein, is
effective as of June 1, 2002. The Plan was originally adopted by the Company
on September 2, 1993. On March 1, 2002, the Plan was amended and restated as
two plans: one plan being applicable to eligible employees of the Company and
participating wholly owned subsidiaries organized within the United States or
Canada and the other plan being applicable to eligible employees of
participating wholly owned subsidiaries not organized within the United States
or Canada.

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