Document:

Amendment No. 1, to Loan Agreement

 Exhibit 10.1 
 

 
 AMENDMENT NO. 1 TO LOAN AGREEMENT 
 This Amendment No. 1 (the “Amendment”) dated as of March 27, 2007, is among Bank of America, N.A. (the “Bank”), Ambassadors
International, Inc.(“Borrower 1”), Ambassadors Marine Group, LLC (“Borrower 2”), Ambassadors, LLC (“Borrower 3”), Ambassadors Cruise Group, LLC (“Borrower 4”) and Cypress Reinsurance, Ltd. (“Borrower
5”) (Borrower 1, Borrower 2, Borrower 3, Borrower 4 and Borrower 5 are sometimes referred to collectively as the “Borrowers” and individually as the “Borrower”). 
 RECITALS 
 A. The Bank and the Borrowers entered into a certain Loan Agreement
dated as of September 1, 2006 (together with any previous amendments, the “Agreement”). 
 B. The Bank and the Borrowers
desire to amend the Agreement. 
 AGREEMENT 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Agreement. 
 2. Amendments. The Agreement is hereby amended as follows: 
  

	 	2.1	In Subparagraph number 1.1(a) of the Agreement, the amount “Twelve Million Five Hundred Thousand and 00/100 Dollars ($12,500,000.00)” is substituted for the amount Twenty
Million and 00/100 Dollars ($20,000,000.00). 

  

	 	2.2	In Subparagraph number 1.1(c) of the Agreement, the amount “Twelve Million Five Hundred Thousand and 00/100 Dollars ($12,500,000.00)” is substituted for the amount Fifteen
Million and 00/100 Dollars ($15,000,000.00). 

  

	 	2.3	Subparagraph 1.3(b) of the Agreement is amended to read in its entirety as follows: 

 “(b) The Borrower will repay in full any principal, interest or other charges outstanding under this facility no later than the Facility No. 1 Expiration Date. Any interest period for an optional interest
rate (as described below) shall expire no later than the Facility No. 1 Expiration Date”. 
  

	 	2.4	In Subparagraph number 1.5(b) of the Agreement, the amount “Twelve Million Five Hundred Thousand and 00/100 Dollars ($12,500,000.00)” is substituted for the amount Twenty
Million and 00/100 Dollars ($20,000,000.00). 

  

	 	2.5	A new Subparagraph 1.5(e) (vii) is added to the Agreement, which reads in its entirety as follows: 

 “(vii) To pay the Bank a non-refundable fee equal to 0.60% per annum of the outstanding undrawn amount of each standby letter of credit,
payable annually in advance, calculated on the basis of the face amount outstanding on the day the fee is calculated”. 
  

	 	2.6	A new Paragraph 1.6 is added to the Agreement, which reads in its entirety as follows: 

 “1.6 Optional Interest Rates. Instead of the interest rate based on the rate stated in the paragraph entitled “Interest Rate” above, the Borrower may elect the optional interest rates listed
below for this Facility No. 1 during interest periods agreed to by the Bank and the Borrower. The 

  

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optional interest rates shall be subject to the terms and conditions described later in this Agreement. Any principal amount bearing interest at an optional
rate under this Agreement is referred to as a ‘Portion.’ The following optional interest rates are available: 
 (a) The IBOR Rate
plus 1 percentage point(s)”. 
  

	 	2.7	A new Article 1A is added to the Agreement, which reads in its entirety as follows: 

 “1A. OPTIONAL INTEREST RATES 
 1A.1 Optional Rates. Each optional interest rate is a rate per
year. Interest will be paid on April 1, 2007, and then on the same day of each month thereafter until payment in full of any principal outstanding under this Agreement. No Portion will be converted to a different interest rate during the
applicable interest period. Upon the occurrence of an event of default under this Agreement, the Bank may terminate the availability of optional interest rates for interest periods commencing after the default occurs. At the end of each interest
period, the interest rate will revert to the rate stated in the paragraph(s) entitled “Interest Rate” above, unless the Borrower has designated another optional interest rate for the Portion. 
 1A.2 IBOR Rate. The election of IBOR Rates shall be subject to the following terms and requirements: 
 (a) The interest period during which the IBOR Rate will be in effect will be no shorter than thirty (30) days and no longer than one year. The last
day of the interest period will be determined by the Bank using the practices of the offshore dollar inter-bank market. 
 (b) Each IBOR Rate
Portion will be for an amount not less than One Hundred Thousand and 00/100 Dollars ($100,000.00). 
 The “IBOR Rate” means the
interest rate determined by the following formula, rounded upward to the nearest 1/100 of one percent. (All amounts in the calculation will be determined by the Bank as of the first day of the interest period.) 
  

					
	IBOR Rate =	  	        IBOR Base Rate	  	
		  	(1.00 - Reserve Percentage)	  	

 Where, 
 (i) “IBOR Base Rate” means the interest rate at which the Bank of America’s Grand Cayman Banking Center, Grand Cayman, British West Indies, would offer U.S. dollar deposits for the applicable interest
period to other major banks in the offshore dollar inter- bank market. 
 (ii) “Reserve Percentage” means the total of the maximum
reserve percentages for determining the reserves to be maintained by member banks of the Federal Reserve System for Eurocurrency Liabilities, as defined in Federal Reserve Board Regulation D, rounded upward to the nearest 1/100 of one percent. The
percentage will be expressed as a decimal, and will include, but not be limited to, marginal, emergency, supplemental, special, and other reserve percentages. 
 (d) The Bank will have no obligation to accept an election for an IBOR Rate Portion if any of the following described events has occurred and is continuing: 
 (i) Dollar deposits in the principal amount, and for periods equal to the interest period, of an IBOR Rate Portion are not available in the offshore
dollar inter-bank market; or 
  

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 (ii) the IBOR Rate does not accurately reflect the cost of an IBOR Rate Portion. 
 (e) Each prepayment of an IBOR Rate Portion, whether voluntary, by reason of acceleration or otherwise, will be accompanied by the amount of accrued
interest on the amount prepaid, and a prepayment fee as described below. A “prepayment” is a payment of an amount on a date earlier than the scheduled payment date for such amount as required by this Agreement.” 
  

	 	2.8	A new Article 1B is added to the Agreement, which reads in its entirety as follows: 

 “1B COLLATERAL 
 1B.1 Personal Property. The personal property listed below now owned or owned
in the future by the parties listed below will secure the Borrower’s obligations to the Bank under this Agreement. The collateral is further defined in security agreement(s) executed by the owners of the collateral. In addition, all personal
property collateral owned by the Borrower securing this Agreement shall also secure all other present and future obligations of the Borrower to the Bank (excluding any consumer credit covered by the federal Truth in Lending law, unless the Borrower
has otherwise agreed in writing or received written notice thereof). All personal property collateral securing any other present or future obligations of the Borrower to the Bank shall also secure this Agreement. 
 (a) Time deposits with the Bank and owned by the Borrower in an amount not less than Twelve Million Five Hundred Thousand and 00/100 Dollars
($12,500,000.00)”. 
  

	 	2.9	A new Paragraph 4.6 is added to the Agreement, which reads in its entirety as follows: 

 “4.6 Security Agreement. Signed original security agreements covering the personal property collateral which the Bank requires”. 
  

	 	2.10	A new Paragraph 4.7 is added to the Agreement, which reads in its entirety as follows: 

 “4.7 Perfection and Evidence of Priority. Evidence that the security interests and liens in favor of the Bank are valid, enforceable, properly perfected in a manner acceptable to the Bank and prior to all
others’ rights and interest, except those the Bank consents to in writing. All title documents for motor vehicles which are part of the collateral must show the Bank’s interest”. 
  

	 	2.11	A new Paragraph 5.13 is added to the Agreement, which reads in its entirety as follows: 

 “5.13 Collateral. All collateral required in this Agreement is owned by the grantor of the security interest free of any title defects or any liens or interests of others, except those which have been
approved by the Bank in writing.” 
  

	 	2.12	Paragraphs 6.3, 6.4, 6.6 and 6.7 of the Agreement are deleted in their entirety, respectively. 

  

	 	2.13	Subparagraph 6.13(b) of the Agreement is deleted in its entirety. 

  

	 	2.14	A new Paragraph 6.21 is added to the Agreement, which reads in its entirety as follows: 

 “6.21 Perfection of Liens. To help the Bank perfect and protect its security interest and liens, and reimburse it for related costs it incurs to protect its security interests and liens.” 

 

	 	2.15	A new Paragraph 7.13 is added to the Agreement, which reads in its entirety as follows: 

 “7.13 Lien Priority. The Bank fails to have an enforceable first lien (except for any prior liens to which the Bank has consented in writing) on or security interest in any property given as security for
this Agreement (or any guaranty)”. 
  

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 3. Representations and Warranties. When the Borrowers sign this Amendment, each Borrower
represents and warrants to the Bank that: (a) there is no event which is, or with notice or lapse of time or both would be, a default under the Agreement except those events, if any, that have been disclosed in writing to the Bank or waived in
writing by the Bank, (b) the representations and warranties in the Agreement are true as of the date of this Amendment as if made on the date of this Amendment, (c) this Amendment does not conflict with any law, agreement, or obligation by
which any Borrower is bound, and (d) this Amendment is within each Borrower’s powers, has been duly authorized, and does not conflict with any of its organizational papers. 
 4. Conditions. This Amendment will be effective when the Bank receives the following items, in form and content acceptable to the Bank:

  

	 	4.1	If any Borrower or any guarantor is anything other than a natural person, evidence that the execution, delivery and performance by such Borrower and/or such guarantor of this
Amendment and any instrument or agreement required under this Amendment have been duly authorized. 

  

	 	4.2	A Security Agreement executed by Ambassadors International, Inc. 

 5. Effect of Amendment. Except as provided in this Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect. 
 6. Counterparts. This Amendment may be executed in counterparts, each of which when so executed shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

 7. FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS DOCUMENT REPRESENTS THE
FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH
COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF
ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES. 
 This Amendment is executed as of the date
stated at the beginning of this Amendment. 
  

											
	Borrower:	 	 	 	Bank:	 	 
				
	Ambassadors International, Inc.	 		 	Bank of America, N.A.	 	
						
	By:	 	 /s/ Brian R. Schaefgen
	 		 	By:	 	 /s/ Mara Vaisz
	 	
		 	Brian R. Schaefgen, Chief Financial Officer	 		 		 	Authorized Signer	 	
						
	By:	 	 /s/ Laura L. Tuthill
	 		 		 		 	
		 	Laura L. Tuthill, Vice President and	 		 		 		 	
		 	Corporate Controller	 		 		 		 	

  

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	Borrower:
	
	Ambassadors Marine Group, LLC
		
	By:	 	Ambassadors International, Inc., Member
		
	By:	 	 /s/ Brian R. Schaefgen

		 	Brian R. Schaefgen, Chief Financial Officer,
		 	Treasurer and Secretary
	
	Borrower:
	
	Ambassadors, LLC
		
	By:	 	Ambassadors International, Inc., Member
		
	By:	 	 /s/ Brian R. Schaefgen

		 	Brian R. Schaefgen, Chief Financial Officer,
		 	Treasurer and Secretary
	
	Borrower:
	
	Ambassadors Cruise Group, LLC
		
	By:	 	Ambassadors International, Inc., Member
		
	By:	 	 /s/ Brian R. Schaefgen

		 	Brian R. Schaefgen, Chief Financial Officer,
		 	Treasurer and Secretary
	
	Borrower:
	
	Cypress Reinsurance, Ltd.
		
	By:	 	 /s/ Joseph J. Ueberroth

		 	Joseph J. Ueberroth, President
		
	By:	 	 /s/ Brian R. Schaefgen

		 	Brian R. Schaefgen, Vice President,
		 	Chief Financial Officer and Secretary

  

 5Kronos Incorporated 2003 Employee Stock Purchase Plan as amended

 Exhibit 10.2 
 KRONOS INCORPORATED 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
 The purpose of this Plan is to provide eligible employees of Kronos Incorporated (the “Company”) and certain of its subsidiaries with
opportunities to purchase shares of the Company’s common stock, $.01 par value (the “common stock”), commencing on August 15, 2003. One million, one hundred and twenty five thousand (1,125,000) shares of common stock in the
aggregate have been approved for this purpose. This Plan is intended to qualify as an “employee stock purchase plan” as defined in Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and the
regulations promulgated thereunder, and shall be interpreted consistent therewith. 
 1. Administration. 
 The Plan will be administered by the Company’s Board of Directors (the “Board”) or by a Committee appointed by the Board (the
“Committee”). The Board or the Committee has authority to make rules and regulations for the administration of the Plan, and its interpretation and decisions with regard thereto shall be final and conclusive. 
 2. Eligibility. 
 All employees of the Company,
including Directors who are employees, and all employees of any subsidiary of the Company (as defined in Section 424(f) of the Code) designated by the Board or the Committee from time to time (a “Designated Subsidiary”), are eligible
to participate in any one or more of the offerings of Options (as defined in Section 9) to purchase common stock under the Plan provided that: 
 (a) they are customarily employed by the Company or a Designated Subsidiary for more than 20 hours a week and for more than five months in a calendar year; 
 (b) they are employees of the Company or a Designated Subsidiary on the first day of the applicable Plan Period (as defined below). 
 No employee may be granted an option hereunder if such employee, immediately after the option is granted, owns 5% or more of the total combined voting power or value of the stock of the Company or any Designated
Subsidiary. For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of an employee, and all stock which the employee has a contractual right to purchase shall be
treated as stock owned by the employee. 
 3. Offerings. 
 The Company will make two annual offerings (“Offerings”) to employees to purchase stock under this Plan. Offerings will begin on February 15 and August 15 (the “Offering Commencement
Dates”). Each Offering Commencement Date will begin a six-month period (a “Plan Period”) during which payroll deductions will be made and held for the purchase of common stock at the end of the Plan Period. 
 4. Participation. 
 An employee eligible on the
Offering Commencement Date of any Offering may participate in such Offering by completing and forwarding an ESPP Election Form to the Company’s Human Resources Department at least 5 days prior to the applicable Offering Commencement Date. The
form will authorize a regular payroll deduction from the Compensation received by the employee during the Plan Period. Unless an employee files a new form or withdraws from the Plan, the employee’s deductions and purchases will continue at the
same rate for future Offerings under the Plan as long as the Plan remains in effect. The term “Compensation” means gross wages including salary, bonus and commissions as reflected on the employee’s pay stub, excluding car allowances,
reimbursement for relocation and business expenses, income or gains on the exercise of Company stock options or stock appreciation rights, gifts and awards. 
 5. Deductions. 
 The Company will maintain payroll deduction accounts for all participating employees. An employee may
authorize a payroll deduction (in whole percentages) of not less than 2% and not more than 10% of the Compensation he or she receives during the Plan Period. Any change in compensation during the Plan Period will result in an automatic corresponding
change in the dollar amount withheld. 
  

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 6. Deduction Changes. 
 An employee may not increase or decrease his or her payroll deduction during any Plan Period. However, an employee may increase or decrease his or her payroll deduction for a future Plan Period, by completing and
forwarding an ESPP Election Form to the Company’s Human Resources Department at least 5 days prior to the applicable Offering Commencement Date. 
 7. Interest. 
 Interest will not be paid on any employee accounts, except to the extent that the Board or the Committee, in
its sole discretion, elects to credit employee accounts with interest at such per annum rate as it may from time to time determine. 
 8. Withdrawal of
Funds. 
 An employee may for any reason withdraw from participation in the Plan Period, provided that the employee notifies the Payroll
Department 20 business days prior to the end of the Plan Period. Any balance accumulated in the employee’s account at the time of the withdrawal will be refunded to the employee. Partial withdrawals are not permitted. The employee may not begin
participation again during the remainder of the Plan Period. The employee may participate in any subsequent Offering in accordance with terms and conditions set forth in paragraph 4 above. 
 9. Purchase of Shares. 
 On the Offering Commencement
Date of each Plan Period, the Company will grant to each eligible employee who is then a participant in the Plan an option (“Option”) to purchase on the last business day of such Plan Period (the “Exercise Date”), at the Option
Price hereinafter provided for, the largest number of whole shares of common stock of the Company as does not exceed $12,500. 
 Notwithstanding the above, no employee may be granted an Option (as defined in Section 9) which permits the employee rights to purchase common stock under this Plan and any other employee stock purchase plan (as defined in
Section 423(b) of the Code) of the Company and its subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of such common stock (determined at the Offering Commencement Date of the Plan Period) for each calendar year in
which the Option is outstanding at any time. 
 The purchase price for each share purchased will be 85% of the closing price of the common
stock on (i) the first business day of such Plan Period or (ii) the Exercise Date, whichever closing price shall be less. Such closing price shall be the closing price on any national securities exchange on which the common stock is
listed. If no sales of common stock were made on such a day, the price of the common stock for purposes set forth above shall be the reported price for the preceding day on which sales were made. 
 Each employee who continues to be a participant in the Plan on the Exercise Date shall be deemed to have exercised his or her Option at the Option Price
on such date and shall be deemed to have purchased from the Company the number of full shares of common stock reserved for the purpose of the Plan that his or her accumulated payroll deductions on such date will pay for, but not in excess of the
maximum number determined in the manner set forth above. 
 Any balance remaining in an employee’s payroll deduction account at the end
of a Plan Period will be automatically refunded to the employee, except that any balance which is less than the purchase price of one share of common stock will be carried forward into the employee’s payroll deduction account for the following
Offering, unless the employee elects not to participate in the following Offering under the Plan, in which case the balance in the employee’s account shall be refunded. 
 10. Establishment of Brokerage Account. 
 By enrolling in the Plan, each participating employee will
be deemed to have authorized the establishment of a brokerage account in his or her name at a securities brokerage firm to be approved by the Committee. 
 11. Rights on Retirement, Death or Termination of Employment. 
 In the event of a participating employee’s termination
of employment prior to the last business day of a Plan Period, no payroll deduction shall be taken from any pay due and owing to an employee and the balance in the employee’s account shall be paid to the employee or, in the event of the
employee’s death, (a) to a beneficiary previously designated in a revocable notice signed by the employee (with any spousal consent required under state law) or (b) in the absence of such a designated beneficiary, to the executor or
administrator of the employee’s estate or (c) if no such executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company may, in its discretion, designate. If, 

  

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prior to the last business day of the Plan Period, the Designated Subsidiary by which an employee is employed shall cease to be a subsidiary of the Company,
or if the employee is transferred to a subsidiary of the Company that is not a Designated Subsidiary, the employee shall be deemed to have terminated employment for the purposes of this Plan. 
 12. Optionees Not Stockholders. 
 Neither the granting
of an Option to an employee nor the deductions from an employee’s pay shall constitute such employee a stockholder of the shares of common stock covered by an Option under this Plan until such shares have been purchased by and issued to the
employee. 
 13. Rights Not Transferable. 
 Rights under this Plan are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during the employee’s lifetime only by the employee. 
 14. Application of Funds. 
 All funds received or held
by the Company under this Plan may be combined with other corporate funds and may be used for any corporate purpose. 
 15. Adjustment in Case of Changes
Affecting Common Stock. 
 In the event of a subdivision of outstanding shares of common stock, or the payment of a dividend in common
stock, the number of shares approved for this Plan, and the share limitation set forth in Section 9, shall be increased proportionately, and such other adjustment shall be made as may be deemed equitable by the Board or the Committee. In the
event of any other change affecting the common stock, such adjustment shall be made as may be deemed equitable by the Board or the Committee to give proper effect to such event. 
 16. Merger. 
 If the Company shall at any time merge or consolidate with another corporation and the
holders of the capital stock of the Company immediately prior to such merger or consolidation continue to hold at least 80% by voting power of the capital stock of the surviving corporation (“Continuity of Control”), the holder of each
Option then outstanding will thereafter be entitled to receive at the next Exercise Date upon the exercise of such Option for each share as to which such Option shall be exercised the securities or property which a holder of one share of the common
stock was entitled to upon and at the time of such merger or consolidation, and the Board or the Committee shall take such steps in connection with such merger or consolidation as the Board or the Committee shall deem necessary to assure that the
provisions of Section 15 shall thereafter be applicable, as nearly as reasonably may be, in relation to the said securities or property as to which such holder of such Option might thereafter be entitled to receive thereunder. 
 In the event of a merger or consolidation of the Company with or into another corporation which does not involve Continuity of Control, or of a sale of
all or substantially all of the assets of the Company while unexercised Options remain outstanding under the Plan, (a) subject to the provisions of clauses (b) and (c), after the effective date of such transaction, each holder of an
outstanding Option shall be entitled, upon exercise of such Option, to receive in lieu of shares of common stock, shares of such stock or other securities as the holders of shares of common stock received pursuant to the terms of such transaction;
or (b) all outstanding Options may be cancelled by the Board or the Committee as of a date prior to the effective date of any such transaction and all payroll deductions shall be paid out to the participating employees; or (c) all
outstanding Options may be cancelled by the Board or the Committee as of the effective date of any such transaction, provided that notice of such cancellation shall be given to each holder of an Option, and each holder of an Option shall have the
right to exercise such Option in full based on payroll deductions then credited to the participating employee’s account as of a date determined by the Board or the Committee, which date shall not be less than ten (10) days preceding the
effective date of such transaction. 
 17. Amendment of the Plan. 
 The Board may at any time, and from time to time, amend this Plan in any respect, except that (a) if the approval of any such amendment by the shareholders of the Company is required by Section 423 of the Code, such amendment
shall not be effected without such approval; (b) in no event may any amendment be made which would cause the Plan to fail to comply with Section 423 of the Code; and (c) no amendment may increase the aggregate number of shares of
common stock made available under the Plan without the approval of the Company’s stockholders. 
  

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 18. Insufficient Shares. 
 In the event that the total number of shares of common stock specified in elections to be purchased under any Offering plus the number of shares purchased under previous Offerings under this Plan exceeds the maximum
number of shares issuable under this Plan, the Board or the Committee will allot the shares then available on a pro rata basis. 
 19. Termination of the
Plan. 
 This Plan may be terminated at any time by the Board. Upon termination of this Plan all amounts in the accounts of participating
employees shall be promptly refunded. 
 20. Governmental Regulations. 
 The Company’s obligation to sell and deliver common stock under this Plan is subject to listing on a national stock exchange or quotation on the Nasdaq National Market (to the extent the common stock is then so
listed or quoted) and the approval of all governmental authorities required in connection with the authorization, issuance or sale of such stock. 
 21.
Governing Law. 
 The Plan shall be governed by Massachusetts law except to the extent that such law is preempted by federal law.

 22. Issuance of Shares. 
 Shares may be
issued upon exercise of an Option from authorized but unissued common stock, from shares held in the treasury of the Company, or from any other proper source. 
 23. Notification upon Sale of Shares. 
 Each employee agrees, by entering the Plan, to promptly give the Company notice of
any disposition of shares purchased under the Plan where such disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased. 
 24. Withholding. 
 Each employee shall, no later than the date of the event creating the tax
liability, make provision satisfactory to the Board for payment of any taxes required by law to be withheld in connection with any transaction related to Options granted to or shares acquired by such employee pursuant to the Plan. The Company may,
to the extent permitted by law, deduct any such taxes from any payment of any kind otherwise due to an employee. 
 25. Notification upon Sale of Shares.

 Each employee agrees, by entering the Plan, to promptly give the Company notice of any disposition of shares purchased under the Plan
where such disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased. 
 26. Withholding.

 Each employee shall, no later than the date of the event creating the tax liability, make provision satisfactory to the Board for
payment of any taxes required by law to be withheld in connection with any transaction related to Options granted to or shares acquired by such employee pursuant to the Plan. The Company may, to the extent permitted by law, deduct any such taxes
from any payment of any kind otherwise due to an employee. 
 27. Effective Date and Approval of Shareholders. 
 The Plan shall take effect on August 15, 2003 subject to approval by the shareholders of the Company as required by Section 423 of the Code,
which approval must occur within twelve months of the adoption of the Plan by the Board. 
  

	
	Adopted by the Board of Directors on October 31, 2002
	
	Approved by the Stockholders on February 6, 2003

  

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 AMENDMENT NO. 1 TO THE KRONOS INCORPORATED 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
 Section 9 of the 2003 Employee Stock
Purchase Plan is hereby amended to remove the look-back provision and to stipulate that the purchase price will be 85% of the closing price of the common stock on the last business day of the period. 
  

	
	Adopted by the Board of Directors on August 2, 2005

 AMENDMENT NO. 2 TO THE KRONOS INCORPORATED 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
 The
2003 Employee Stock Purchase Plan, as amended (the “2003 ESPP”), of Kronos Incorporated (the “Company”) is hereby amended as follows (capitalized terms used herein and not defined herein shall have the respective meaning ascribed
to such terms in the 2003 ESPP): 
  

	 	1.	The second sentence of the introductory paragraph of the 2003 ESPP shall be deleted in its entirety and replaced with the following: 

 “Two million, one hundred and twenty five thousand (2,125,000) shares of common stock in the aggregate have been approved for this
purpose.” 
 Except as aforesaid, the 2003 ESPP shall remain in full force and effect. 
  

	
	Adopted by the Board of Directors on November 16, 2006
	
	Approved by the Stockholders on February 16, 2007

  

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