Document:

Unitrin, Inc. 1995 Non-Employee Director Stock Option Plan, as amended

 Exhibit 10.2 
 UNITRIN, INC. 
 1995 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
 Amended and Restated 
 1. Purpose.

 The purpose of this 1995 Non-Employee Director Stock Option Plan (“Plan”) of Unitrin, Inc. (“Company”) is to
encourage ownership in the Company by non-employee directors of the Company and to attract and retain qualified non-employee personnel to serve as directors of the Company. 
 2. Administration. 
 The Plan will be administered by a committee or committees (which term
includes subcommittees) consisting of two or more persons appointed by the Board of Directors of the Company. The composition of any committee responsible for administration of the Plan shall comply with the applicable requirements of the Securities
Exchange Act of 1934, as amended (“Exchange Act”). Members of a committee will serve for such term as the Board of Directors may determine, subject to removal by the Board of Directors at any time. With respect to any matter, the term
“Committee” refers to the committee that has been delegated authority with respect to such matter. 
 Subject to the provisions of
the Plan, the Committee shall have authority: (i) to construe and interpret the Plan; (ii) to define the terms used herein; (iii) to prescribe, amend and rescind rules and regulations relating to the Plan; (iv) to make such
changes to the Plan as may become necessary or advisable to comply with the Exchange Act or other legal requirements; and (v) to make all other determinations necessary or advisable for the administration of the Plan. All determinations and
interpretations made by the Committee shall be binding and conclusive on all participants in the Plan and their legal representatives and beneficiaries. 
 3. Shares Subject to the Plan. 
 The shares to be offered under the Plan shall consist of authorized but unissued
shares or treasury shares of the Company’s common stock (“Common Stock”) and, subject to adjustment as provided in paragraph 13 hereof, the aggregate amount of Common Stock which may be subject to options granted pursuant to
paragraphs 5a, 5b and 5c hereunder (“Options”) shall not exceed 400,000 shares. If any Option granted under the Plan shall expire or terminate for any reason, without having been exercised or vested in full, as the case may be, the
unpurchased shares subject thereto shall again be available for Options to be granted under the Plan. Options granted under the Plan will not be qualified as “incentive stock options” under Section 422 of the Internal Revenue Code of
1986, as amended (“Code”). All Options granted under the Plan shall be granted on or before 

  

					
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August 2, 2015, except for Restorative Options (as defined in Section 5f below) which may continue to be granted after August 2, 2015 until
the expiration dates of the original options to which such Restorative Options relate, subject to the limitation in the last sentence of paragraph 5f. 
 4. Eligibility. 
 Each director of the Company who first becomes a director after November 1, 1993 and is not an
employee of the Company or any subsidiary of the Company and each director who has retired as an employee of the Company or a subsidiary of the Company shall be eligible to participate in the Plan (“Eligible Directors”). Each Option
granted under the Plan shall be governed by an agreement in such form as the Committee shall from time to time approve. 
 5. Stock Option Grants.

 a. Initial Option Grants. 
 An Option covering 4,000 shares of Common Stock shall be granted to such director on the date that he or she first becomes an Eligible Director. 
 b. Annual Option Grants. 
 An Option covering 4,000 shares of Common Stock will be granted to each Eligible Director automatically at the conclusion of each Company Annual Meeting. 
 c. Duration of Options. 
 Subject to paragraph 9, below, each Option granted pursuant to
this paragraph 5 and all rights associated therewith shall expire ten years from the date of grant. 
 d. Purchase Price.

 The purchase price of the stock covered by each Option shall be the fair market value (as defined in paragraph 6) of a share of
Common Stock as of the date of the grant of such Option. 
 e. Exercise of Options. 

 Options granted hereunder shall be exercisable during an Option holder’s lifetime only by the Option holder or by his or her guardian
or legal representative. Each Option granted under this Plan shall be exercisable in full one year after the date of the grant. No Option may be exercised for a fraction of a share and no partial exercise of any Option may be for less than:
(i) one hundred (100) shares; or (ii) the total number of shares then eligible for exercise, if less than one hundred (100) shares. 
 Each Option holder or his or her guardian or legal representative who desires to exercise an Option shall give advance written notice of such exercise to the Company in 

  

					
		 	2	 	As of 2/3/09

 
such form as may be prescribed from time to time by the Committee. Before shares will be issued in connection with an Option exercise, the purchase price for
the shares shall be paid in full by: (i) cash or check payable to the order of the Company; (ii) Constructive or Actual Delivery of Mature Shares; (iii) wire transfer to an account specified by the Company or (iv) any combination
of the foregoing. Shares of Common Stock used to satisfy the exercise price of an Option shall be valued at their fair market value determined in accordance with paragraph 6 hereof. 
 For purposes hereof: 
 (i) the term
“Constructive or Actual Delivery” means either: (a) presentation to the Company of a recent brokerage account statement or other written evidence satisfactory to the Committee evidencing beneficial ownership by an Eligible Director of
shares of Common Stock other than shares held in 401(k), pension, IRA or similar accounts; or (b) physical delivery of certificates evidencing shares of Common Stock, properly indorsed for transfer to the Company or with an appropriately
executed stock power; and 
 (ii) the term “Mature Shares” means shares of Common Stock that satisfy the following requirements:
(a) have been owned by a Participant free of any encumbrances, vesting requirements or similar restrictions for at least six (6) months; and (b) have not been exchanged or surrendered by Constructive or Actual Delivery in full or
partial payment of the Exercise Price and/or the related tax withholding obligations arising out of an Option exercise within the previous six months. 
 f. Restorative Options. 
 No Restorative Options (as defined in the next paragraph
below) will be granted in connection with Options under original grants made on or after February 3, 2009. 
 With regard to Options
under original grants made before February 3, 2009, and for Restorative Options relating to such original grants, and subject to the remaining provisions of this paragraph 5f, if (i) an Eligible Director elects to pay some or all of the
exercise price of an Option granted on or after May 3, 2000 (the “Underlying Option”) by Constructive or Actual Delivery of Mature Shares, and (ii) for Options under original grants made on or after February 1, 2006, and for
Restorative Options relating to such original grants, the fair market value of a share of Common Stock on the exercise date exceeds the exercise price of a share of Common Stock subject to the Underlying Option by at least the percentage set forth
in the Option agreement, then such Eligible Director shall be granted an Option to purchase shares of Common Stock equal to the number of Mature Shares used by Constructive or Actual Delivery to pay the exercise price (a “Restorative
Option”). 
  

					
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 The exercise price of a Restorative Option shall be equal to one hundred percent (100%) of the fair
market value of the Common Stock on the date the Underlying Option is exercised. The Restorative Option shall be fully vested beginning six months after the date of its grant and shall expire on the expiration date of the Underlying Option. All
other terms of the Restorative Option shall be identical to the terms of the Underlying Option. 
 No Restorative Option shall be granted
(i) if, on the date of exercise of the Underlying Option, such Option would be scheduled to expire within the period set forth in the Option agreement, or if not specified in the Option Agreement, within six months, (ii) for Options under
original grants made on or after February 1, 2006, and for Restorative Options relating to such original grants, if, on the date of exercise of the Underlying Option, the share price of the Common Stock does not meet the appreciation
requirement described above; or (iii) in connection with original Option grants made on or after February 3, 2009. 
 6. Fair Market Value of
Common Stock. 
 For purposes of the Plan, the fair market value of a share of Common Stock shall be determined by reference to the
closing price of a share of Common Stock as reported by the New York Stock Exchange (or such other exchange on which the Shares of Common Stock are primarily traded), for the date on which the Option is granted or exercised, as the case may
be, or if such date is not a business day, for the business day immediately preceding such date (or, if for any reason no such price is available, in such other manner as the Committee in its sole discretion may deem appropriate to reflect the fair
market value thereof). 
 7. Withholding Tax. 
 Upon the exercise of Options issued hereunder, the Company shall have the right to require the Option holder to pay the Company the amount of taxes, if any, which the Company may be required to withhold with respect
to such shares. 
 8. Transferability. 
 Options granted hereunder shall not be transferable, other than by will or the laws of descent and distribution, except to the extent transfer is: (i) permitted by Rule 16b-3 of the Exchange Act; and (ii) approved by the
Committee. Subject to the foregoing, Options shall not be assigned, pledged or otherwise encumbered by the holder thereof, either voluntarily or by operation of law. 
 9. Termination of Directorship. 
 All rights of a director in an Option, to the extent that the
Option has not been exercised, shall terminate three months after the date of the termination of his or her services as a director for any reason other than: (i) the death of the director; (ii) cessation 

  

					
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of services as a director because the individual, although nominated by the Board of Directors, is not elected by the shareholders to the Board of Directors;
or (iii) retirement because of total and permanent disability as defined in Section 22(e)(3) of the Code (collectively, “Termination Events”). If a director ceases to be a director of the Company because of a Termination Event,
his or her unvested Options shall vest immediately. All vested Options shall expire twelve months after the date of a Termination Event. 
 10. No
Right to Continue as a Director. 
 Neither the Plan nor the granting of an Option under the Plan shall constitute or be evidence of
any agreement or understanding that any director has a right to continue as a director for any period of time or at any particular rate of compensation. 
 11. Restrictions on Disposition of Shares. 
 Each Option shall provide that the holder, by accepting such Option,
represents and agrees, for the Option holder and the Option holder’s permitted transferees, that none of the shares acquired upon exercise of such Option will be acquired with a view towards any sale, transfer or distribution of said shares in
violation of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, or any applicable “blue sky” laws, and the holder of such Option shall furnish evidence satisfactory to the Company (including a
written and signed representation) to that effect in form and substance satisfactory to the Company, including an indemnification of the Company in the event of any violation by such person of the Securities Act of 1933, as amended, or state blue
sky law. 
 12. Privileges of Stock Ownership. 
 No Option holder shall have any of the rights or privileges of a shareholder of the Company in respect of any shares of Common Stock issuable with respect to such Option until such shares shall have been issued and
delivered (i) to the Option holder in the form of certificates, (ii) to a brokerage or other account for the benefit of the Option holder either in certificate form or via “DWAC” or similar electronic means, or (iii) to a
book entry or direct registration account in the name of the Option holder. No shares shall be issued and delivered upon the exercise of an Option unless and until there shall have been full compliance with all applicable requirements of the
Securities Act of 1933, as amended (whether by registration or satisfaction of exemption conditions), all applicable listing requirements of the New York Stock Exchange or any national securities exchange on which shares of the same class are then
listed and any other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery. 
  

					
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 13. Adjustments. 
 If the outstanding shares of the Common Stock are increased, decreased, changed into or exchanged for a different number or kind of shares or securities of the Company through reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other similar transaction, an appropriate and proportionate adjustment shall be made in the maximum number and kind of shares as to which Options may be granted under this Plan. A
corresponding adjustment changing the number or kind of shares allocated to unexercised Options, which shall have been granted prior to any such change, and to the number of shares covered by initial and annual Option grants under paragraph 5, shall
likewise be made. Any such adjustment in the outstanding Options shall be made without change in the aggregate purchase price applicable to the unexercised portion of the Options but with a corresponding adjustment in the price for each share or
other unit of security covered by the Option. Share amounts specified in paragraphs 3, 5a and 5b of this Amended and Restated Plan have been restated in accordance with this paragraph 13 to reflect the Company’s 2-for-1 stock split effective
March 26, 1999. 
 Upon the dissolution or liquidation of the Company, or upon a reorganization, merger or consolidation of the Company
with one or more corporations as a result of which the Company is not the surviving corporation, or upon a sale of substantially all the property or more than eighty percent (80%) of the then outstanding stock of the Company to another
corporation, the Plan shall terminate, and all Options theretofore granted shall immediately become exercisable. 
 No fractional shares of
stock shall be issued under the Plan on any such adjustment. 
 14. Amendment and Termination of Plan. 
 The Board of Directors may at any time terminate the Plan. The Board of Directors may also at any time amend the terms of the Plan, provided that no such
amendment shall become effective without the approval of the Company’s shareholders if such approval is required in order to comply with Rule 16b-3 of the Exchange Act or any other applicable law or regulation. Notwithstanding the foregoing,
Plan provisions relating to the amount, price and timing of Options may be amended only by action of the shareholders, but not more than once every six months, other than to comport with changes in the Code or the Employee Retirement Income Security
Act of 1974, as amended, or the rules in effect thereunder. 
 The Committee may from time to time increase or decrease the six-month holding
periods specified in the definition of “Mature Shares” in Section 5e above: (i) to satisfy applicable legal or accounting requirements; (ii) to secure advantageous treatment for the Company or the Participants under any
provision of law or any accounting rule, pronouncement or interpretation applicable to financial statements prepared on the basis 

  

					
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of accounting principles generally accepted in the United States; or (iii) for any reason determined by the Committee to be in the best interests of the
Company or the Participants and not inconsistent with any applicable legal or accounting requirements. The Committee may eliminate such holding periods in the event that there are no legal or accounting requirements that they be imposed or if there
is no longer any advantage to the Company or the Participants that they be imposed and such elimination is otherwise consistent with applicable legal and accounting requirements. The Committee may also reinstate holding periods in order to satisfy
applicable legal or accounting requirements or to secure advantageous treatment for the Company or the Participants of the type contemplated in this paragraph. 
 Notwithstanding the foregoing, no amendment or termination of the Plan by the Board, and no change related to holding periods made by the Committee pursuant to the foregoing paragraph, shall in any way adversely
affect the rights of a holder of any outstanding Option or Restorative Option subsequently granted in connection with the exercise of an outstanding Option without the prior written consent of such Option holder. 
  

					
		 	7	 	As of 2/3/09Unitrin, Inc. 2002 Stock Option Plan, as amended and restated

 Exhibit 10.4 
 UNITRIN, INC. 
 2002 STOCK OPTION PLAN 
 Amended and Restated 
 1. PURPOSE 
 The purpose of the Unitrin, Inc. 2002 Stock Option Plan is to secure for Unitrin, Inc. and its shareholders the benefits arising from stock ownership by selected
executive and other key employees of Unitrin, Inc. or its subsidiaries or affiliates and such other persons as the Committee (as defined hereafter) may from time to time determine. 
 2. DEFINITIONS 
 As used herein, the following words or terms have the meanings set forth below: 
 “Affiliate” means any person or entity controlled directly or indirectly by the Company, whether by equity ownership, contract or otherwise and shall
include direct and indirect subsidiaries of the Company and mutual companies the management of which is controlled by the Company or its subsidiaries. 
 “Board” means the Board of Directors of the Company. 
 “Code” means the Internal Revenue Code of 1986, as amended
from time to time, or any successor statute. 
 “Committee” means the Compensation Committee of the Board or any successor committee. The
Committee shall be composed of two or more persons who qualify both as “outside directors” under Section 162(m) of the Code and related regulations and “non-employee directors” under Rule 16b-3 of the Securities Exchange Act
of 1934, or any successor provisions. 
 “Common Stock” means the common stock of the Company. 
 “Company” means Unitrin, Inc., a Delaware corporation. 
 “Constructive or Actual Delivery” means either: (i) presentation to the Company of a recent brokerage account statement or other written evidence satisfactory to the Committee evidencing beneficial ownership by the
Participant of Shares other than Shares held in 401(k), pension, IRA or similar accounts, or (ii) physical delivery of certificates evidencing Shares, properly indorsed for transfer to the Company or with an appropriately executed stock power.

  

					
		 	1	 	As of 02/03/09

 “Disability” or “Disabled” refers to a physical or mental condition that: (i) would
qualify a Participant for benefits under a long-term disability insurance plan under which such Participant is covered, or (ii) in the absence of any such plan, would cause such Participant to be unable to substantially perform his or her
duties as an employee, director, consultant or advisor, as the case may be. 
 “Exercise Price” means the price at which the Shares
underlying an Option may be purchased upon exercise of the Option. 
 “Fair Market Value,” as used to refer to the price of a Share on a
particular day, means the closing price for a Share for that day as subsequently reported by the New York Stock Exchange (or such other exchange on which the Shares of Common Stock are primarily traded), or if no prices are quoted for that day, the
last preceding day on which such prices are quoted (or, if for any reason no such price is available, in such other manner as the Committee may deem appropriate to reflect the fair market value of a Share.) 
 “ISO” means an Option that satisfies the requirements of Code Section 422(b) and any regulations promulgated thereunder from time to time, or any
successor provisions thereto. 
 “Mature Shares” means Shares that satisfy the following requirements: 
 (i) have been owned by a Participant free of any encumbrances, vesting requirements or similar restrictions for at least six (6) months; and

 (ii) have not been exchanged or surrendered by Constructive or Actual Delivery in full or partial payment of the Exercise Price and/or the
related tax withholding obligations arising out of an Option exercise within the previous six months. 
 “Non-Qualified Option” means an
Option that does not satisfy the requirements for an ISO. 
 “Option” means an option granted to a Participant under this Plan to purchase a
designated number of Shares. 
 “Option Agreement” means an agreement between the Company and a Participant evidencing the terms and
conditions of a particular Option. 
  

					
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 “Participant” means an individual selected by the Committee to receive an Option or Stock Appreciation
Right under the Plan. 
 “Representative” means an executor, administrator, guardian, trustee or other representative of a Participant who
has legal authority to exercise such Participant’s Options or Stock Appreciation Rights on behalf of such Participant or such Participant’s estate. 
 “Restorative Option” means an Option granted to a Participant under Section 8 of the Plan. 
 “Retirement” or
“Retires” means the termination of a Participant’s employment with the Company and/or its subsidiaries or affiliates after attaining age 55. 
 “Shares” means shares of the Common Stock. 
 “Stock Appreciation Right” means a right of the type described in
Section 9 of the Plan. 
 “Substantial Cause” means (a) the commission of a criminal act against, or in derogation of, the
interests of the Company or its subsidiaries or affiliates; (b) knowingly divulging confidential information about the Company or its subsidiaries or affiliates to a competitor or to the public or using such information for personal gain,
including, without limitation, by trading in Company securities on the basis of material, non-public information; or (c) the performance of any similar action that the Committee, in its sole discretion, may deem to be sufficiently injurious to
the interests or reputation of the Company or its subsidiaries or affiliates to constitute substantial cause for the termination of services by a Participant as an employee, director, consultant or advisor. Nothing in this Plan shall be construed to
imply that a Participant’s employment or other relationship with the Company or its subsidiaries or affiliates may only be terminated for Substantial Cause. 
 3. THE COMMITTEE 
 The Plan shall be administered by the Committee, which shall have authority: 
  

	 	(i)	to construe and interpret the Plan and to prescribe, amend and rescind rules and regulations relating to the Plan; 

  

	 	(ii)	to make all determinations as to eligibility pursuant to Section 5(a) of the Plan; 

  

	 	(iii)	to grant Options and Stock Appreciation Rights as more fully described in Section 5(b) below; 

  

					
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	 	(iv)	to make adjustments or modifications to, or to waive, the terms of any outstanding Options or Stock Appreciation Rights, provided that such actions are consistent with the terms of
the Plan and do not adversely affect or impair the rights under such Options or Stock Appreciation Rights; 

  

	 	(v)	to approve and determine the duration of leaves of absence which may be granted to Participants without constituting a termination of their employment for the purposes of the Plan;
and 

  

	 	(vi)	to make all other determinations necessary or advisable for the administration of the Plan. 

 All determinations and interpretations made by the Committee shall be binding and conclusive on all Participants and their Representatives, successors in interest and beneficiaries. Any action of the Committee with
respect to administration of the Plan shall be taken at a meeting of the Committee at which a quorum is present or by written consent of its members. 
 4. SHARES SUBJECT TO PLAN 
 Subject to adjustment as provided in Section 13(a) hereof, the maximum number of Shares that may be issued
pursuant to the exercise of Options and Stock Appreciation Rights shall not exceed five million (5,000,000) Shares in total. The maximum number of Shares that may be issued to an individual Participant under the Plan shall be one-third of such
total. If any Option granted under the Plan shall expire or terminate for any reason (other than surrender at the time of exercise of a related Stock Appreciation Right), without having been exercised in full, the unpurchased Shares subject thereto
shall again be available for grant under the Plan. Any Shares that are used by Constructive or Actual Delivery as full or partial payment for the Exercise Price of an Option and/or the withholding taxes arising from the exercise of such Option, or
that are withheld from the Shares that would otherwise be issued upon exercise of such Option in full or partial payment of such withholding taxes, shall in each case be added to the aggregate number of Shares available for issuance under this Plan.

 5. ELIGIBILITY AND GRANTING AUTHORITY 
 a) Eligibility. The following persons shall be eligible to receive grants of Options or Stock Appreciation Rights under this Plan: 
 (i) executive and other key employees of the Company or of any subsidiary or affiliate of the Company who are selected by and in the sole discretion of: (a) the Committee or, (b) if applicable, an executive officer of the Company
who has been delegated such authority in accordance with Section 5(b)(ii) below; and 
  

					
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 (ii) any key person selected by the Committee in its sole discretion who renders services to:
(i) the Company or a Company subsidiary or affiliate as a member of its board of directors, or (ii) the Company or a Company subsidiary or affiliate as a consultant or advisor pursuant to a written agreement. 
 Any persons selected pursuant to Section 5(a)(ii) above shall only be eligible to receive Non-Qualified Options (including any Restorative Options
issued with respect to such Options). 
 b) Granting Authority. Subject to the provisions of the Plan, the authority and discretion to
determine the Participants to whom and the time or times at which Options shall be granted, whether an Option will be an ISO or a Non-Qualified Option, whether to couple a Stock Appreciation Right with an Option and the terms and conditions of such
Right, the number of Shares to be subject to each Option, the Exercise Price, the number of installments, if any, in which each Option may vest, the expiration date of each Option and all other terms and conditions of each Option shall reside with
the following persons: 
 (i) the Committee; and 
 (ii) if authorized by a resolution adopted by the Board, one or more executive officers of the Company may be delegated such authority and discretion, provided that no such officer may grant Options or Rights to
himself or herself or to any officer of the Company who is subject to the reporting and short-swing liability provisions of Section 16 of the Securities Exchange Act of 1934. 
 6. TERMS OF OPTIONS 
 a) Duration. Each Option and all rights associated therewith,
shall expire on such date as the Committee may determine, subject to earlier termination as provided in this Plan. All Options granted under this Plan shall be granted on or before February 1, 2012, except for Restorative Options which may
continue to be granted after February 1, 2012 until the expiration dates of the original Options from which such Restorative Options arose, subject in all events to the limitations in Section 8(b). 
 b) Exercise Price. The Exercise Price for each Share that is the subject of an Option shall be determined by the Committee and shall not be less
than the Fair Market Value of a Share on the date of grant, subject to adjustment pursuant to Section 13. 
  

					
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 c) Vesting. Each Option granted under this Plan shall vest and be exercisable in such
installments, if any, during the period prior to its expiration date as the Committee shall determine, and, unless otherwise specified in an Option Agreement, no Option shall be exercisable for at least six months after grant except in the case of
the death or Disability of the Participant. 
 d) Non-Transferability. Unless otherwise provided in an Option Agreement, an Option (and
any accompanying Stock Appreciation Right) shall not be transferable by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and shall be exercisable during the Participant’s
lifetime only by the Participant (or, in the case of the incapacity of the Participant, by the Participant’s Representative) regardless of any community property interest therein of the spouse of the Participant, or such spouse’s
successors in interest. If the spouse of the Participant shall have acquired a community property interest in such Option (or accompanying Stock Appreciation Right), the Participant, or the Participant’s Representative, may exercise the Option
(or accompanying Stock Appreciation Right) on behalf of the spouse of the Participant or such spouse’s successors in interest. 
 e)
Option Agreements. The terms of each Option granted pursuant to this Plan shall be evidenced by an Option Agreement in a form approved by the Committee and signed by both the Company and the Participant, except that a Restorative Option may be
evidenced by a certificate or statement issued by the Company that recites the essential terms of such Option. 
 7. EXERCISE OF OPTIONS AND STOCK
APPRECIATION RIGHTS 
 a) Notice by Participant. Each Participant (or such Participant’s Representative) who desires to
exercise an Option or Stock Appreciation Right shall give advance written notice of such exercise to the Company in such form as may be prescribed from time to time by the Committee or the management of the Company. 
 b) Payment for Exercises of Options. Before shares will be issued in connection with an Option exercise, the Exercise Price of an Option shall be
paid in full by: (i) check payable to the order of the Company; (ii) Constructive or Actual Delivery of Mature Shares; (iii) electronic transfer of funds to an account of the Company; or (iv) any combination of the foregoing.
Mature Shares used by Constructive or Actual Delivery to satisfy the Exercise Price of an Option shall be valued at their Fair Market Value on the date of exercise. 
 c) Partial Exercises. No Option or Stock Appreciation Right may be exercised for a fraction of a share and no partial exercise of any Option or Stock Appreciation Right may be made for less than fifty
(50) shares unless the total number of Shares covered by an Option is less than 50 at the time of exercise or unless an Option or Stock Appreciation Right is scheduled to expire within six months of the date of exercise. 
  

					
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 d) Withholding Taxes. Upon the exercise of a Non-Qualified Option or a Stock Appreciation Right,
the Company shall have the right to: (i) require such Participant (or such Participant’s Representative) to pay the Company the amount of any taxes which the Company may be required to withhold with respect to such exercise, or
(ii) deduct from all amounts paid in cash with respect to the exercise of a Stock Appreciation Right the amount of any taxes which the Company may be required to withhold with respect to such cash amounts. Subject to the limitation set forth in
the next sentence, a Participant or such Participant’s Representative may elect to satisfy all or any portion of the tax withholding obligations arising from the exercise of an Option or Stock Appreciation Right either by: (1) any of the
methods described in Section 7(b), or (2) directing the Company to withhold Shares that would otherwise be issued pursuant to such exercise. No Participant or Participant’s Representative shall have the right to utilize Constructive
or Actual Delivery of Mature Shares or have Shares withheld, in either case, in excess of the minimum number required to satisfy applicable tax withholding requirements based on minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes. Shares used in either of the foregoing ways to satisfy tax withholding obligations will be valued at their Fair Market Value on the date of exercise. 
 e) Exercise of Stock Appreciation Rights. Exercises of Stock Appreciation Rights shall be done in accordance with provisions of Sections 7(a) and
9. 
 8. RESTORATIVE OPTIONS 
 a)
Original Option Grants On Or After February 3, 2009. No Restorative Options will be granted in connection with original grants of Options made on or after February 3, 2009. 
 b) Original Option Grants Before February 3, 2009. Grant and Terms of Restorative Options. Subject to Section 8(b), a Restorative Option
to purchase Shares will be granted to a Participant in connection with the exercise of an Option under an original grant made before February 3, 2009, and for Restorative Options relating to such original grants, if: (i) the Participant
elects to pay some or all of the Exercise Price of the Option (the “Underlying Option”) and/or any related withholding taxes by Constructive or Actual Delivery of Mature Shares (or, in the case of such taxes, by directing the Company to
withhold Shares that would otherwise be issued upon exercise of such Underlying Option); and (ii) for Options under original grants made on or after February 1, 2006, and for Restorative Options relating to such original grants, the Fair
Market Value of a Share on the exercise date exceeds the 

  

					
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Exercise Price of the Underlying Option by at least the percentage set forth in the Option Agreement. The number of Shares subject to the Restorative Option
shall be equal to the sum of: (a) any Mature Shares used by Constructive or Actual Delivery to pay the Exercise Price and/or the related withholding taxes, and (b) any Shares withheld from an exercise in payment of withholding taxes. The
Exercise Price of the Restorative Option shall be equal to the Fair Market Value of a Share on the date the Underlying Option is exercised. The Restorative Option shall be fully vested beginning six months after the date of its grant and shall
expire on the expiration date of the Underlying Option. All other terms of the Restorative Option shall be identical to the terms of the Underlying Option. 
 b) Limitations on Restorative Options. No Restorative Options shall be granted: (i) to any Participant who does not meet any of the standards for eligibility set forth in Section 5(a) on the date of
exercise of the Underlying Option; (ii) if, on the date of exercise of the Underlying Option, such Option is scheduled to expire within the period set forth in the Option Agreement, or, if not specified in the Option Agreement, within six
(6) months; (iii) for Options under original grants made on or after February 1, 2006, and for Restorative Options relating to such original grants, if the Share price on the exercise date does not meet the appreciation requirement
described in Section 8(a)(ii); or (iv) in connection with original Option grants made on or after February 3, 2009. 
 9. STOCK
APPRECIATION RIGHTS 
 If deemed appropriate by the Committee, any Option may be coupled with a Stock Appreciation Right at the time of the grant of the
Option, or the Committee may grant a Stock Appreciation Right to any Participant at any time after granting an Option to such Participant but prior to the expiration date of such associated Option. Such Stock Appreciation Right shall be subject to
such terms and conditions consistent with the Plan as the Committee shall impose, provided that: 
 (i) A Stock Appreciation Right shall be
exercisable to the extent, and only to the extent, the associated Option is exercisable and shall be exercisable only for such period as the Committee may determine (which period may expire prior to the expiration date of the Option); 
 (ii) A Stock Appreciation Right shall entitle the Participant to surrender to the Company unexercised the Option to which it is related, or any portion
thereof (subject to Section 7(c)), and to receive from the Company in exchange therefor that number of Shares (rounded down to the nearest whole number) having an aggregate value equal to the excess of the Fair Market Value of one Share over
the Exercise Price per Share specified in such Option, multiplied by the number of Shares subject to the Option, or portion thereof, which is so surrendered; and 
  

					
		 	8	 	As of 02/03/09

 (iii) The Committee may elect to settle, or the Stock Appreciation Right may permit the Participant to
elect to receive (subject to approval by the Committee), any part or all of the Company’s obligation arising out of the exercise of a Stock Appreciation Right by the payment of cash equal to the aggregate Fair Market Value of that part or all
of the Shares it would otherwise be obligated to deliver, provided that in no event shall cash be payable to an officer or director of the Company upon exercise of a Stock Appreciation Right: (i) if the Stock Appreciation Right was exercised
during the first six months of its term; or (ii) unless the transaction is otherwise exempt from the operation of Section 16(b) of the Securities Exchange Act of 1934. 
 10. HOLDING OF COMMON STOCK 
 At the discretion of the Committee, any Option Agreement may provide that the
Participant, by accepting such Option, represents and agrees, for the Participant and the Participant’s permitted transferees, that none of the shares purchased upon exercise of the Option or any accompanying Stock Appreciation Right will be
acquired with a view to any sale, transfer or distribution of said shares in violation of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, or any applicable state “blue sky” laws, and the
Participant shall furnish evidence in form and substance satisfactory to the Company to that effect, including an indemnification of the Company in the event of any violation of the Securities Act of 1933 or state blue sky law by such Participant.

 11. CESSATION OF SERVICES 
 a)
Termination of employment. If a Participant ceases to be an employee of the Company or any of its subsidiaries or affiliates other than by reason of death, Disability or Retirement, then the following consequences shall apply: 
 (i) If the termination of employment was not for Substantial Cause, then the Participant shall have 90 days from the date of termination in which to
exercise all of his or her Options that were vested on such date and all such Options which are not exercised within such 90-day period shall expire and be of no further force or effect. All Options that were not vested on the date of termination
shall immediately expire and be of no further force or effect. A leave of absence approved in writing by the Committee shall not be deemed a termination of employment provided that no Option may be exercised during a leave of absence, except during
the first 90 days thereof unless otherwise consented to in writing by the Committee. The foregoing provisions shall apply equally to any Stock Appreciation Rights held by the Participant. 
  

					
		 	9	 	As of 02/03/09

 (ii) If the termination of employment was for Substantial Cause, then all of the Participant’s
outstanding Options (and any accompanying Stock Appreciation Rights) shall immediately terminate (whether vested or not) as of the date of such termination and shall be of no further force or effect. 
 b) Death or Disability. Effective for original grants made hereunder on or after February 1, 2005, and for Restorative Option grants
relating to such original grants, if a Participant dies or becomes Disabled while employed by the Company or any of its subsidiaries or affiliates or while such Participant was providing services as a director, consultant or advisor to any of such
entities, then all Options granted to such Participant that were outstanding but not vested on such date shall immediately vest, and the Participant (or his or her Representative) shall have one year from the date of death or the date the
Participant first became Disabled in which to exercise all vested Options held by such Participant on such date. For original grants made hereunder prior to February 1, 2005, and for Restorative Option grants relating to such original grants,
if a Participant dies or becomes Disabled while employed by the Company or any of its subsidiaries or affiliates or while such Participant was providing services as a director, consultant or advisor to any of such entities, then the Participant (or
his or her Representative) shall have one year from the date of death or the date the Participant first became Disabled in which to exercise any Options that were vested on such date. All Options that were not vested on such date shall immediately
expire and be of no further force or effect. The provisions of this Section 11(b) shall apply equally to any Stock Appreciation Rights held by the Participant. 
 c) Retirement. If a Participant Retires, the following consequences shall apply: 
 (i) If the
Participant continues to render services to the Company or any of its subsidiaries or affiliates as a director, or as a consultant or advisor pursuant to a written agreement, then all Options held by such Participant shall continue in full force and
effect in accordance with their terms for so long as such Participant continues to satisfy at least one of the eligibility requirements of Section 5(a). Thereafter, if the Participant dies or becomes Disabled, the provisions of
Section 11(b) above shall apply, or if the Participant at any time fails to satisfy at least one of the eligibility requirements of Section 5(a), then the provisions of Section 11(a)(i) above (including time limits for the exercise of
vested Options) shall apply as if the Participant had experienced a termination of employment thereunder. The foregoing provisions shall apply equally to any Stock Appreciation Rights held by the Participant. 
 (ii) If the Participant does not at the time of Retirement satisfy any of the eligibility requirements of Section 5(a), then the Participant shall
have one year from the date of retirement in which to exercise all of his or her Options that were 

  

					
		 	10	 	As of 02/03/09

 
vested on such date and all such Options which are not exercised within such one-year period shall expire and be of no further force or effect. All Options
that were not vested on the date of Retirement will immediately expire and be of no further force or effect. The foregoing provisions shall apply equally to any Stock Appreciation Rights held by the Participant. 
 d) Sale or Divestiture of Employer. In the event that the Company sells or divests its controlling interest in any subsidiary or if its control of
an affiliate ceases, then any employee of such subsidiary or affiliate who is a Participant shall have 90 days from the date of such sale, divestiture or cessation of control (or one year in the case of a Participant who has attained the age of 55
on such date) in which to exercise all of his or her Options that were vested on such date and all such Options which are not exercised within such 90-day (or one year) period shall expire and be of no further force or effect. All Options that were
not vested on the date of such sale, divestiture or cessation of control shall immediately expire and be of no further force or effect. The foregoing provisions shall apply equally to any Stock Appreciation Rights held by the Participant.

 12. PRIVILEGES OF STOCK OWNERSHIP 
 No Participant
shall have any of the rights or privileges of a shareholder of the Company in respect of any Shares issuable upon exercise of any Option or Stock Appreciation Right until Shares shall have been issued and delivered: (i) to the Participant in
the form of certificates, (ii) to a brokerage or other account for the benefit of the Participant either in certificate form or via “DWAC” or similar electronic means, or (iii) to a book entry or direct registration account in
the name of the Participant. No shares shall be issued and delivered upon the exercise of any Option or accompanying Stock Appreciation Rights unless and until there has been compliance with all applicable requirements of the Securities Act of 1933,
as amended (whether by registration or satisfaction of an available exemption), all applicable listing requirements of the New York Stock Exchange or any other national securities exchange or market on which the Common Stock is then listed and any
other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery. 
 13. ADJUSTMENTS 
 a) Stock splits, reorganizations, etc. If the outstanding Shares are increased, decreased, changed into or exchanged for a different number or kind
of shares or securities of the Company through reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar transaction, an appropriate and proportionate adjustment shall be made in the
maximum number and kind of shares or securities as to which Options (and accompanying Stock 

  

					
		 	11	 	As of 02/03/09

 
Appreciation Rights) may thereafter be granted under this Plan. A corresponding adjustment changing the number or kind of shares or securities allocated to
unexercised Options (and any accompanying Stock Appreciation Rights), or portions thereof, which shall have been granted prior to any such change, shall likewise be made. Any such adjustment in an outstanding Option (or Stock Appreciation Right)
shall be made without change in the aggregate purchase price applicable to the unexercised portion of such Option (or Stock Appreciation Right) but with a corresponding adjustment in the Exercise Price for each Share or other unit of any security
covered by the Option (or Stock Appreciation Right). 
 b) Equity Restructurings. The Committee may, but shall not be obligated to,
make an appropriate reduction in the Exercise Price of any outstanding Option, and/or grant additional Options to the holder of any outstanding Option, to compensate for the diminution in the intrinsic value of the Shares resulting from any
non-reciprocal transaction (i.e., one in which the Company does not receive consideration) between the Company and its shareholders, such as a spin-off, stock dividend, rights offering, or recapitalization through a special, substantial nonrecurring
dividend. 
 c) Change of Control Events. Upon the dissolution or liquidation of the Company, or upon a reorganization, merger or
consolidation of the Company with one or more corporations as a result of which the Company is not the surviving corporation, or upon a sale of substantially all the property or more than eighty percent (80%) of the then outstanding Common
Stock of the Company to another corporation, this Plan shall terminate; provided, however, that notwithstanding the foregoing, the Board shall provide in writing in connection with such transaction for any one or more of the following alternatives
(separately or in combinations): (i) for each Option and any accompanying Stock Appreciation Rights theretofore granted to become immediately exercisable notwithstanding the provisions of Section 6(c) hereof, (ii) for the assumption
by the successor corporation of the Options and Stock Appreciation Rights theretofore granted or the substitution by such corporation for such Options and Stock Appreciation Rights theretofore granted of new options and rights covering the stock of
the successor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices; (iii) for the continuance of the Plan by such successor corporation in which event the Plan and the
Options and any accompanying Stock Appreciation Rights therefore granted shall continue in the manner and under the terms so provided; or (iv) for the payment in cash or stock in lieu of and in complete satisfaction of such Options and rights.
At the discretion of the Committee, any Option Agreement may contain provisions to the effect that upon the happening of certain events, including a change in control of the Company (as defined by the Committee in such Option Agreement), any
outstanding Options and accompanying Stock Appreciation Rights not theretofore vested shall immediately become vested and exercisable in their entirety, notwithstanding any of the other provisions of the Option. 
  

					
		 	12	 	As of 02/03/09

 d) Authority of Committee. All adjustments under this Section 13 shall be made by the
Committee, whose determination as to which adjustments shall be made, and the extent thereof, shall be final, binding and conclusive. No fractional Shares shall be issued under the plan on any such adjustment. 
 14. AMENDMENT AND TERMINATION OF PLAN 
 The Board may at any time
suspend or terminate the Plan or amend the terms of the Plan. In the event that any provision of applicable law mandates that any such amendment be approved by the Company’s shareholders, then such amendment shall be submitted to such
shareholders for approval or ratification within a time period that satisfies such law. In the case of other laws that require shareholder approval of amendments as a condition to receiving or preserving certain benefits (e.g., deductibility of
certain compensation under Section 162(m) of the Code) or achieving a “safe harbor” status, the Board shall have sole discretion to determine whether or not to submit amendments to the Company’s shareholders for approval.

 The Committee may from time to time increase or decrease the six-month holding periods specified in the definition of Mature Shares in Section 2
above: (i) to satisfy applicable legal or accounting requirements; (ii) to secure advantageous treatment for the Company or the Participants under any provision of law or any accounting rule, pronouncement or interpretation applicable to
financial statements prepared on the basis of accounting principles generally accepted in the United States; or (iii) for any reason determined by the Committee to be in the best interests of the Company or the Participants and not inconsistent
with any applicable legal or accounting requirements. The Committee may eliminate such holding periods in the event that there are no legal or accounting requirements that they be imposed or if there is no longer any advantage to the Company or the
Participants that they be imposed and such elimination is otherwise consistent with applicable legal and accounting requirements. The Committee may also reinstate holding periods in order to satisfy applicable legal or accounting requirements or to
secure advantageous treatment for the Company or the Participants of the type contemplated in this paragraph. 
 Notwithstanding the foregoing, no amendment,
suspension or termination of the Plan by the Board, and no change related to holding periods made by the Committee pursuant to the foregoing paragraph, shall in any way adversely affect the rights of a holder of any outstanding Option or
accompanying Stock Appreciation Right without the prior written consent of such holder. 
  

					
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 15. ARBITRATION 
 The
Committee may, as a condition to granting Options or Stock Appreciation Rights, require that a Participant agree in writing to submit all disputes or claims arising out of or relating to any such Options or Stock Appreciation Rights to binding
arbitration in accordance with such terms as the Committee shall prescribe. 
  

					
		 	14	 	As of 02/03/09

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