Document:

Exhibt 4.1

Exhibit 4.1

FOURTH AMENDMENT TO RESTATED LOAN AND SECURITY AGREEMENT

AND WAIVER

            This Fourth Amendment to Restated Loan and Security Agreement and Waiver (this "Amendment") is made and entered into as of June 21, 2006, by and between CPAC, INC. (the "Borrower") and BANK OF AMERICA, N.A. (the "Lender");

W I T N E S S E T H:

            WHEREAS, the Borrower and the Lender have made and entered into that certain Restated Loan and Security Agreement, dated as of August 29, 2002, as amended (the "Original Loan Agreement" and, as amended hereby, the "Loan Agreement"; capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement);

            WHEREAS, pursuant to the Original Loan Agreement, the Lender has extended to the Borrower a renewal Revolving Loan facility in the principal amount of up to $3,000,000 (the "Revolving Loan"), which Revolving Loan facility is evidenced by the Promissory Note, dated as of August 23, 2005, but effective as of June 30, 2005, from the Borrower to the Lender in the principal amount of up to $3,000,000 (the "Revolving Note");

            WHEREAS, Borrower is in default under certain provisions of the Original Loan Agreement and has asked the Lender to waive the same;

            NOW THEREFORE, for and in consideration of the foregoing and for ten dollars ($10.00) and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1.

Amendments to Loan Documents

            Section 1.1     Covenant Amendment. Section 7.1 of the Loan Agreement is hereby amended in its entirety to read as follows:
            7.1.      Net Worth. Maintain a minimum Net Worth of no less than $36,400,000 as of March 31, 2006. Borrower's Net Worth shall increase, as of each fiscal year-end thereafter, by 25% of the Borrower's Net Income for such year (e.g., for FY 2007, its Net Worth must be at least $36,400,000 plus 25% of FY 2006 Net Income; for FY 2008, its Net Worth must be at least $36,400,000 plus 25% of FY 2006 Net Income, plus 25% of FY 2007 Net Income), and Borrower shall maintain at least the required Net Worth as of fiscal quarter end during each such fiscal year. "Net Worth" shall mean, as of any date of determination, Borrower's total capital stock, plus Borrower's paid-in-capital, plus Borrower's retained earnings, net of the Borrower's treasury stock and net of foreign currency translation adjustments, in each case calculated on a consolidated basis and in accordance with GAAP. "Net Income" shall mean, for any period, the net income 

55
of the Borrower and its Subsidiaries, calculated on a consolidated basis and in accordance with GAAP.

            Section 1.2     Exhibit Amendment. Exhibit 5.6 to the Loan Agreement is hereby amended in its entirety to read in the form attached hereto as Exhibit 5.6.

ARTICLE 2.

Acknowledgment of Defaults

            Section 2.1     Acknowledgment of Default. Events of Default (the "Existing Defaults") have occurred under Section 8.1(b) the Loan Agreement as a result of the Borrower's failure to comply with Sections 7.1, 7.2 and 7.3 of the Loan Agreement for the fiscal periods ending September 30, 2005 and December 31, 2005. 

            Section 2.2     Acknowledgment of the Borrower. The execution, delivery and performance of this Amendment by Bank and the acceptance by Bank of performance of Borrower hereunder (a) shall not constitute a waiver or release by Bank of any Default or Event of Default that may now or hereafter exist under the Loan Documents, except the Existing Defaults, (b) shall not constitute a novation of the Loan Documents as it is the intent of the parties to modify the Loan Documents as expressly set out herein and (c) except as expressly provided in this Amendment, shall be without prejudice to, and is not a waiver or release of, Bank's rights at any time in the future to exercise any and all rights conferred upon Bank by the Loan Documents or otherwise at law or in equity, including but not limited to the right to institute foreclosure proceedings against the Collateral and/or institute collection or arbitration proceedings against Borrower and/or to exercise any right against any other Person not a party to this Amendment.

 

ARTICLE 3.

Waivers by Bank

            Section 3.1     Waiver Covenant. Upon satisfaction of the conditions specified hereinafter in Article 5, Lender shall waive the Existing Defaults and shall not, because of the Existing Defaults,

                        3.1.1    accelerate any Loan or demand accelerated payment of the same;

                        3.1.2    require the payment of interest at the Default Rate set forth in the Loan 

            Documents; or

                        3.1.3    exercise any other remedies under the Loan Agreement or under the other 

            Loan Documents.

            Lender's waiver of the Existing Defaults from such actions, subject to the terms and conditions of this Amendment, is herein referred to as the "Waiver Covenant". The effectiveness of each term of the Waiver Covenant is expressly conditioned on the satisfaction of each and 

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every condition set forth in Article 5 of this Amendment. The Waiver Covenant applies solely to the Existing Defaults and to no other Defaults or Events of Default, whether now existing or hereinafter arising and whether now known to the Lender or the Borrower and/or its Subsidiaries.

            Section 3.2     Continued Compliance With the Loan Documents. Borrower will continue to perform and comply strictly with each and every provision of the Loan Documents (as amended hereby), except for the Existing Defaults, which have been waived by the Lender.

ARTICLE 4.

Release and Waiver by Borrower

            Section 4.1     Release. In consideration of the agreements of Bank set forth in this Amendment, Borrower and all of its heirs, personal representatives, predecessors, successors and assigns (individually and collectively, the "Releasors"), hereby fully release, remise, and forever discharge Bank, the parent of Bank and all other affiliates and predecessors of Bank, and all past and present officers, directors, agents, employees, servants, partners, shareholders, attorneys and managers of Bank, the parent of Bank, and all other affiliates, and predecessors of Bank and all of their respective heirs, personal representatives, predecessors, successors and assigns ("Bank-Related Parties"), for, from, and against any and all claims, liens, demands, causes of action, controversies, offsets, obligations, losses, damages and liabilities of every kind and character whatsoever, including, without limitation, any usury claims or any action, omission, misrepresentation of other basis of liability founded either in tort, contract or equity and the duties arising thereunder (collectively "Claims), that the Releasors, or any of them has had in the past, or now has, whether known or unknown, whether asserted or unasserted, by reason of any matter, cause or thing set forth in, relating to or arising out of, or in any way connected with or resulting from, the Obligations (including the Bond Letter of Credit), the Loan Documents or any real or personal property now or at any time securing the Obligations. It is the express intent of the Bank and Releasors that the release and discharge set forth in this paragraph be construed as broadly as possible in favor of Bank-Related Parties so as to foreclose forever the assertion by any of Releasors of any claims, as defined above, against Bank-Related Parties or any of them.

            Section 4.2     UCC Waivers. Borrower acknowledges and agrees that Bank has all rights and remedies of a "secured party" under the Code and all rights and remedies provided by applicable law. Borrower waives any additional right to notice of any Default or Event of Default or opportunity to cure any Default or Event of Default. Notwithstanding anything to the contrary in Loan Agreement, any Security Agreement, any Guaranty Agreement or any other Loan Document to which it is a party, Borrower hereby irrevocably waives (i) any right to notification required under Code Section 11-9-611 of the disposition of any "Collateral" (as defined in the Loan Agreement and as defined in any Security Agreement) or any other collateral in which Borrower or any Guarantor has granted (or may hereafter grant) Bank a Lien, (ii) any right to redeem, under Code Section 11-9-623, any "Collateral" (as defined in the Loan Agreement and as defined in any Security Agreement) or any other collateral in which Borrower or any Guarantor has granted (or may hereafter grant) Bank a Lien, and (iii) any other right which Borrower or such Guarantor may waive under the Code (whether before or after default). Any notice required to be given by Bank to Borrower or any Guarantor (which is not otherwise 

3

57

waivable under the Code), may be given by Bank in the shortest time period permitted by the Code, notwithstanding any provision of the Loan Documents requiring a longer notice period; where "reasonable" notice is required under the Code and cannot be waived, 10 days' notice shall be deemed "reasonable" notice for purposes of the Loan Agreement and each Security Agreement (except for circumstances described in Code Section 11-9-611(d)).

            Section 4.3     Jury Trial Waiver. IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A JURY TRIAL, THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

            Section 4.4     Bankruptcy Waivers. (a)        In entering into this Amendment, Borrower and Bank hereby stipulate, acknowledge and agree that Bank gave up valuable rights and agreed to forbear from exercising legal remedies available to it in exchange for the promises, representations, acknowledgments and warranties of Borrower as contained herein and that Bank would not have entered into this Amendment but for such promises, representations, acknowledgments, agreements, and warranties, all of which have been accepted by Bank in good faith, the breach of which by Borrower in any way, at any time, now or in the future, would admittedly and confessedly constitute cause for dismissal of any such bankruptcy petition pursuant to 11 U.S.C. Section 1112(b).

(b)        As additional consideration for Bank agreeing to forbear from immediately enforcing its rights and remedies under this Amendment and in the Loan Documents, including but not limited to the institution of foreclosure proceedings, Borrower agrees that in the event a bankruptcy petition under any Chapter of the Bankruptcy Code (11 U.S.C. Section 101, et seq.) is filed by or against Borrower at any time after the execution of this Amendment, Bank shall be entitled to the immediate entry of an order from the appropriate bankruptcy court granting Bank complete relief from the automatic stay imposed by Section 362 of the Bankruptcy Code (11 U.S.C. Section 362) to exercise its foreclosure and other rights, including but not limited to obtaining a foreclosure judgment and foreclosure sale, upon the filing with the appropriate court of a motion for relief from the automatic stay with a copy of this Amendment attached thereto. Borrower specifically agrees (i) that upon filing a motion for relief from the automatic stay, Bank shall be entitled to relief from the stay without the necessity of an evidentiary hearing and without the necessity or requirement of the Bank to establish or prove the value of the Collateral, the lack of adequate protection of its interest in the Collateral, or the lack of equity in the Collateral; (ii) that the lifting of the automatic stay hereunder by the appropriate bankruptcy court shall be deemed to be "for cause" pursuant to Section 362(d)(1) of the Bankruptcy Code (11 U.S.C. Section 362(d)(1)); and (iii) that Borrower will not directly or indirectly oppose or otherwise defend against Bank's efforts to gain relief 

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from the automatic stay, and (iv) Bank shall be entitled to recover from Borrower all of Bank's costs and expenses (including Bank's attorneys fees) incurred in connection with any bankruptcy or insolvency proceeding of any of them. This provision is not intended to preclude Borrower from filing for protection under any Chapter of the Bankruptcy Code. The remedies prescribed in this paragraph are not exclusive and shall not limit Bank's rights under the Loan Documents, this Agreement or under any law.

(c)        All of the above terms and conditions have been freely bargained for and are all supported by reasonable and adequate consideration and the provisions herein are material inducements for Bank entering into this Amendment.

ARTICLE 5.

Conditions to Effectiveness 

            Section 5.1     Conditions. The amendments to the Loan Agreement and the Waiver Covenant set forth herein shall become effective as of the date first above written (the "Effective Date") after all of the conditions set forth in Sections 5.2 through 5.6 hereof shall have been satisfied.

            Section 5.2     Execution of Amendment and Note. This Amendment shall have been executed and delivered by the Borrower.

            Section 5.3     Confirmations of Guaranties. Each of Guarantors shall have executed and delivered confirmations of its Guaranty Agreement and Security Agreement.

            Section 5.4     Representations and Warranties. (a) As of the Effective Date, the representations and warranties set forth in the Loan Agreement, and the representations and warranties set forth in each of the Loan Documents, shall be true and correct in all material respects; (b) as of the Effective Date, no Defaults or Events of Default shall have occurred and be continuing, other than any Defaults or Events of Default waived hereby; (c) the Lender shall have received from the Borrower a certificate dated the Effective Date, certifying the matters set forth in subsections (a) and (b) of this Section 5.4.

            Section 5.5     Loan Fee. Borrower shall have paid Lender's amendment and waiver fee in the combined amount of $30,000 (the "Fees"), which fees have been fully earned by the Lender and are non-refundable in their entirety.

            Section 5.6     Counsel Fees. Borrower shall have paid Lender's counsel's fees and expenses in connection with this Amendment and the transactions contemplated hereby.

ARTICLE 6.

Miscellaneous

            Section 6.1     Entire Agreement; No Novation or Release. This Amendment, together with the Loan Documents, as in effect on the Effective Date, reflects the entire understanding with respect to the subject matter contained herein, and supersedes any prior agreements, 

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whether written or oral. This Amendment is not intended to be, and shall not be deemed or construed to be, a satisfaction, novation or release of the Loan Agreement or any other Loan Document. Except as expressly amended hereby, all representations, warranties, terms, covenants and conditions of the Loan Agreement and the other Loan Documents shall remain unamended and unwaived and shall continue in full force and effect.

            Section 6.2     Fee. Borrower shall pay to Bank, as of the last day of each fiscal quarter, commencing with the fiscal quarter ending September 30, 2006, a fee in the amount of $275,000. Such fee shall be fully earned as of the last day of each such fiscal quarter, and Bank is irrevocably authorized (and without further action or authorization on the part of Borrower or any other Person) to pay such fees by debiting Borrower's account or by making an Advance of Revolving Loan funds.

            Section 6.3     Out of Pocket Fees and Expenses. All fees and expenses of the Lender incurred in connection with the issuance, preparation and closing of the transactions contemplated hereby shall be payable by the Borrower promptly upon the submission of the bill therefor. If the Borrower shall fail to promptly pay such bill, the Lender is authorized to pay such bill through an advance of funds under the Loan. 

            Section 6.4     Choice of Law; Successors and Assigns. This Amendment shall be construed and enforced in accordance with and governed by the internal laws (as opposed to the conflicts of laws provisions) of the State of Georgia. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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WITNESS the hand and seal of each of the undersigned as of the date first written above.

	
 
	
 

	
 
	
LENDER:

	
 
	
 

	
 
	
BANK OF AMERICA, N.A.

	
 
	
 

	
 
	
By:/s/ Anthony D. Healey                           

	
 
	
Title:Senior V.P.                                         

	
 
	
 

	
 
	
BORROWER:

	
 
	
 

	
 
	
CPAC, INC.

	
 
	
 

	
 
	
By:/s/ Thomas J. Weldgen                          

	
 
	
Title:V.P. Finance & CFO                          

	
 
	
 

	
 
	
Attest:/s/ James W. Pembroke                    

	
 
	
Title:Chief Accounting Officer                   

	
 
	
 

	
 
	
              [Corporate Seal]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Exhibit 5.6

COMPLIANCE CERTIFICATE

              This Compliance Certificate (the "Certificate") is delivered pursuant to the Restated Loan and Security Agreement dated as of August 29, 2002 (together with all amendments and modifications, if any, from time to time made thereto, the "Loan Agreement"), between CPAC, INC. (the "Borrower") and Bank of America, N.A ("Lender"). Unless otherwise defined, terms used herein (including the exhibits hereto) have the meanings provided in the Loan Agreement.

              [The undersigned, being the duly elected, qualified and acting                             of the Borrower, on behalf of the Borrower and solely in his or her capacity as an officer of the Borrower,] [Borrower] hereby certifies and warrants that:

              He or she is the                             of the Borrower and that, as such, he or she is authorized to execute this Certificate on behalf of the Borrower.]

              He or she is the Borrower and is authorized to execute this Certificate.]

              As of                                   ,                   :

                                         Borrower was not in default of any of the provisions of the Loan Agreement during the period to which this Certificate relates;

              Tangible Net Worth. Borrower's consolidated Net Worth was $                                 as computed on Net Worth Exhibit attached hereto;

              Debt Service Coverage Ratio. Borrower's consolidated Debt Service Coverage Ratio was                        to 1.0 as computed on Debt Service Coverage Ratio Exhibit attached hereto;

              Funded Debt to Cash Flow. Borrower's consolidated Funded Debt to Cash Flow Ratio was                        to 1.0 as computed on Funded Debt to Cash Flow Exhibit attached hereto; 

              Capital Expenditures. Borrower's Capital Expenditures were $                                        . (Maximum of $5,000,000 permitted)

Acquisitions. Borrower spent $                                on Acquisitions (Maximum of $5,000,000 permitted).

              Domestic Liquidity. Borrower's consolidated Domestic Liquidity was                                      ($2,000,000 minimum)

 

                            IN WITNESS WHEREOF, the undersigned has executed and delivered this certificate, this              day of                              , 20         .

	
 
	
CPAC, INC.

	
 
	
 

	
 
	
By:                                                       

	
 
	
Title:                                                    

8

62

 

	
NET WORTH EXHIBIT
	
 

	
 
	
 

	
 
	
 

	
                                                                                                           Period ending                          
	
 

	
 
	
 

	
Net Worth (on a consolidated basis)
	
 

	
 
	
 

	
1.         Net Worth:
	
 

	
            a.        Total capital stock
	
$                      
	
 

	
            b.        plus paid in capital
	
$                      
	
 

	
            c.        plus retained earnings
	
$                      
	
 

	
            d.        less treasury stock
	
$                      
	
 

	
            e.        less foreign currency translation adjustments
	
$                      
	
 

	
            f.        Total Net Worth
	
             $                      
	
 

	
 
	
 

	
 
	
 

	
Required Net Worth:     $36,400,000+ (Net Income of $                            x 25%) = $                
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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63

 

	
FUNDED DEBT TO CASH FLOW RATIO EXHIBIT
	
 

	
 
	
 
	
 

	
                                                                          12 Month Period ending
	
 
	
 

	
 
	
 
	
 

	
Funded Debt to Cash Flow Ratio (on a consolidated basis)
	
 
	
 

	
 
	
 
	
 

	
1.         Funded Debt:
	
 
	
 

	
            all outstanding liabilities for borrowed money
	
$                      
	
 

	
            + other interest-bearing liabilities, including
	
 
	
 

	
            current and long-term debt
	
$                      
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
            (A)        = Funded Debt
	
$                      
	
 

	
 
	
 
	
 

	
2.         Cash Flow:
	
 
	
 

	
                         net income
	
$                      
	
 

	
            +           income tax
	
$                        
	
 

	
            +           interest expense
	
$                      
	
 

	
            +           depreciation
	
$                      
	
 

	
            +           amortization
	
$                      
	
 

	
            +           the non cash portion of the write down of 
	
 
	
 

	
                          the investment in Management Cleaning Controls
	
$                      *
	
 

	
 
	
 
	
 

	
            (B)        = EBITDA
	
 
	
 

	
 
	
$                      
	
 

	
 
	
 
	
 

	
Funded Debt to Cash Flow Ratio = 1(A) divided by 2(B):
	
                        to 1.0.
	
 

	
 
	
 

	
Required ratio is:
	
Max. 3.00 to 1.0 at 9/30/05; 12/31/05
	
 

	
 
	
Max. 2.50 to 1.0 at/after 3/31/06
	
 

	
 
	
 

	
* through 3/31/06 for the write down in FQE 3/31/05 only
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

64

 

	
DEBT SERVICE COVERAGE RATIO EXHIBIT
	
 

	
 
	
 

	
                                                                           12 Month Period ending
	
                          
	
 

	
 
	
 

	
 
	
 

	
Debt Service Coverage Ratio (on a consolidated basis)
	
 
	
 

	
 
	
 
	
 

	
1.         Adjusted Cash Flow:
	
 
	
 

	
                        Cash Flow (see prior schedule 2(B)
	
 $                      
	
 

	
                        - dividends, withdrawals, and other distributions
	
($                      )
	
 

	
 
	
 
	
 

	
            (A) = Total Adjusted Cash Flow
	
 $                      
	
 

	
 
	
 
	
 

	
2.          Debt Service
	
 
	
 

	
                        Current portion of long term debt (as of the date
	
 
	
 

	
                             12 months prior to the current financial statement)
	
 $                      
	
 

	
                        + current portion of capitalized lease obligations
	
 $                      
	
 

	
                        + interest expense on all obligations
	
 $                      
	
 

	
 
	
 
	
 

	
            (A) = Debt Service
	
 $                      
	
 

	
 
	
 
	
 

	
Debt Service Coverage Ratio = 1(A) divided by 2(A)
	
                       to 1.0
	
 

	
 
	
 

	
 
	
 

	
Required ratio is:
	
Min. 1.15 to 1.0 at 9/30/05
	
 

	
 
	
Min. 1.50 to 1.0 at/after 12/31/05
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

65Exhibit 10.22 to Medtronic, Inc. Form 10-K for fiscal year ended April 28, 2006

Exhibit 10.22

MEDTRONIC, INC.

2003 LONG-TERM INCENTIVE PLAN
(AS AMENDED AND RESTATED THROUGH JUNE 22, 2006)

1.  Purpose of the Plan

        The purpose of the Plan is to aid the Company and
its Affiliates in recruiting and retaining employees and to motivate such employees and other plan participants to exert their
best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of Awards. The Company
expects that it will benefit from the stock ownership opportunities provided to such participants to encourage alignment of
their interest in the Company’s success with that of other stakeholders.

2.  Definitions

        The following capitalized terms used in the Plan have
the respective meanings set forth in this Section:

	 	(a)	“Act” means the Securities Exchange Act of 1934, as amended, or any successor thereto.
	 	(b)	“Affiliate” means any entity that is consolidated with the Company for financial reporting purposes
or any other entity designated by the Board in which the Company or an Affiliate has a direct or indirect interest of at least
forty percent (40%).
	 	(c)	“Award” means an Option, Stock Appreciation Right, Share of Restricted Stock, Other Stock-Based
Award or Other Cash-Based Award granted pursuant to the Plan.
	 	(d)	“Board” means the Board of Directors of the Company.
	 	(e)	“Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto.
	 	(f)	“Committee” means the Compensation Committee of the Board.
	 	(g)	“Company” means Medtronic, Inc., a Minnesota corporation.
	 	(h)	“Effective Date” means the date the adoption of the Plan by the Board of Directors is approved by
the Company’s shareholders.
	 	(i)	“Exercise Price” means the purchase price per Share under the terms of an option as determined pursuant
to Section 6(a).
	 	(j)	“Fair Market Value” means, on a given date, (i) if there should be a public market for the Shares
on such date, the closing sale price of the Shares on The New York Stock Exchange, or, if the Shares are not listed or admitted
on any national securities exchange, the arithmetic mean of the per Share closing bid price and per Share closing asked price
on such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which
such prices are regularly quoted) (the “NASDAQ”), or, if no sale of Shares shall have been reported on The New York
Stock Exchange or quoted on the NASDAQ on such date, then the immediately preceding date on which sales of the Shares have
been so reported or quoted shall be used, and (ii) if there should not be a public market for the Shares on such date, the
Fair Market Value shall be the value established by the Committee in good faith.
	 	(k)	“ISO” means an Option that is an incentive stock option granted pursuant to Section 6(d).
	 	(l)	“Option” means a stock option granted pursuant to Section 6.
	 	(m)	“Other Stock-Based Awards” means Awards granted pursuant to Section 9(a) or 10.
	 	(n)	“Other Cash-Based Awards” means Awards granted pursuant to Section 9(b) or 10.

 

	 	(o)	“Participant” means an employee of the Company or an Affiliate who is selected by the
Committee to participate in the Plan. An Award may also be granted to any consultant, agent, advisor or independent contractor
who renders bona fide services to the Company or an Affiliate that (i) are not in connection with the offer and sale of the
Company’s securities in a capital-raising transaction and (ii) do not directly or indirectly promote or maintain a market
for the Company’s securities. Except where the context otherwise requires, references in this Plan to “employment”
and related terms shall apply to services in any such capacity.
	 	(p)	“Performance-Based Awards” means certain Restricted Stock, Other Stock-Based Awards and Other Cash-Based
Awards granted pursuant to Section 10.
	 	(q)	“Plan” means the 2003 Long-Term Incentive Plan, as amended from time to time.
	 	(r)	“Restricted Stock” means any Share granted under Section 8.
	 	(s)	“Shares” means shares of common stock of the Company, $.10 par value per share.
	 	(t)	“Stock Appreciation Right” means a stock appreciation right granted pursuant to Section 7.
	 	(u)	“Subsidiary” means a subsidiary corporation, as defined in Section 424(f) of the Code (or any successor
section thereto), of the Company.

3.  Shares Subject to the Plan

        The total number of Shares which may be issued under
the Plan is 60,000,000, of which no more than 50% may be issued in the form of Restricted Stock or Other Stock-Based Awards
payable in Shares, provided, however, that no more than 5% of the Shares reserved under the Plan shall be granted
pursuant to Restricted Stock Awards if such Award (a) shall vest in full prior to three years from the Award date or (b) if
a condition to such vesting is based, in whole or in part, upon performance of the Shares or any aspect of the Company’s
operations and such vesting could occur over a period of less than one year from the Award date. The Shares may consist,
in whole or in part, of unissued Shares. The issuance of Shares upon the exercise or satisfaction of an Award shall reduce
the total number of Shares available under the Plan. Shares which are subject to Awards that terminate, lapse or are cancelled
may be granted again under the Plan. Any Shares tendered by a Participant or retained by the Company as full or partial payment
to the Company for the purchase price of an Award or to satisfy tax withholding obligations in connection with an Award shall
be available for Awards under the Plan. No fractional Shares will be issued in payment for any Award, but instead the number
of Shares will be rounded upward to the next whole Share.

4.  Administration

	 	(a)	Delegation of Authority. The Plan shall be administered by the Committee, which may delegate its
duties and powers in whole or in part to (i) any subcommittee thereof consisting solely of at least two individuals who are
intended to qualify as “non-employee directors” within the meaning of Rule 16b-3 under the Act (or any successor
rule thereto) and, to the extent required by Section 162(m) of the Code (or any successor section thereto), “outside directors”
within the meaning thereof and (ii) persons who are not non-employee directors for purposes of determining and administering
Awards to those Participants who are not then subject to the reporting requirements of Section 16 of the Act.
	 	(b)	Authority of Committee. The Committee shall have exclusive power to make Awards and to determine when and
to whom Awards shall be granted, and the form, amount and other terms and conditions of each Award, subject to the provisions
of this Plan. The Committee may determine whether, to what extent and under what circumstances Awards may be settled, paid
or exercised in cash, Shares or other Awards or other property, or cancelled, forfeited or suspended. The Committee shall have
the authority to interpret this Plan and any Award or agreement made under this Plan, to establish, amend, waive and rescind
any rules and regulations relating to the administration of this Plan, to determine the terms and provisions of any agreements
entered into hereunder (not inconsistent with this Plan), and to make all other determinations necessary or advisable for the
administration of this Plan. The Committee may

 

	 	 	
correct any defect, supply any omission or reconcile any inconsistency in this Plan or in any Award or agreement in the manner
and to the extent it shall deem desirable. The determinations of the Committee in the administration of this Plan, as described
herein, shall be final, binding and conclusive.
	 	(c)	Rule 16b-3. It is the intent that this Plan and all Awards granted pursuant to it shall be administered by
the Committee (or a subcommittee thereof) so as to permit this Plan and Awards to comply with Rule 16b-3 under the Act. If
any provision of this Plan or any Award would otherwise frustrate or conflict with the intent expressed in this Section 4(c),
that provision to the extent possible shall be interpreted and deemed amended in the manner determined by the Committee so
as to avoid such conflict.
	 	(d)	Indemnification. To the full extent permitted by law, each member and former member of the Committee and each
person to whom the Committee delegates or has delegated authority under this Plan shall be entitled to indemnification by the
Company against and from any loss, liability, judgment, damages, cost and reasonable expense incurred by such member, former
member or other person by reason of any action taken, failure to act or determination made in good faith under or with respect
to this Plan.
	 	(e)	Tax Withholding. The Committee shall require payment of any amount it may determine to be necessary to withhold
for federal, state, local, non-U.S. income, payroll or other taxes as a result of the exercise, grant or vesting of an Award.
Unless the Committee specifies otherwise, the Participant may elect to pay a portion or all of such withholding taxes by (i)
delivery in Shares, (ii) having the Company withhold Shares with a Fair Market Value or cash equal to the amount of such taxes
that would have otherwise been payable by the Participant or (iii) paying cash.
	 	(f)	Deferral. In the sole discretion of the Committee, in accordance with procedures established by the Committee
and consistent with the provisions of Section 162(m) when applied to Participants who may be “covered employees”
thereunder, a Participant may be permitted to defer the issuance of Shares or cash deliverable upon the exercise of an Option
or Stock Appreciation Right, vesting of Restricted Stock, or satisfaction of Other Stock-Based Awards or Other Cash-Based Awards,
for a specified period or until a specified date.
	 	(g)	Dividends or Dividend Equivalents. If the Committee so determines, any Award granted under the Plan may be
credited with dividends or dividend equivalents paid with respect to the underlying shares. The Committee may apply any restrictions
to the dividends or dividend equivalents that the Committee deems appropriate and may determine the form of payment, including
cash, Shares, Restricted Stock or otherwise.

5.  Limitations

	 	(a)	Term of Plan. No Award may be granted under the Plan after the tenth anniversary of the Effective
Date, but Awards granted prior to such tenth anniversary may extend beyond that date.
	 	(b)	No Repricing. No Option or Stock Appreciation Right, once granted hereunder, may be repriced.
	 	(c)	Maximum. No Participant may be granted Options, Stock Appreciation Rights, Restricted Stock, Performance-Based
Awards, Other Stock-Based Awards or any combination thereof relating to more than 2,000,000 Shares under the Plan during any
fiscal year.

 

6.  Terms and Conditions of Options

        Options granted under the Plan shall be, as determined
by the Committee, non-qualified or incentive stock options for federal income tax purposes, as evidenced by the related Award
agreements, and shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions,
not inconsistent therewith, as the Committee shall determine:

	 	(a)	Exercise Price. The Exercise Price per Share shall be determined by the Committee, but shall not
be less than 100% of the Fair Market Value of the Shares on the date an Option is granted. 
	 	(b)	Exercisability. Options granted under the Plan shall be exercisable at such time and upon such terms and conditions
as may be determined by the Committee, but in no event shall an Option be exercisable more than ten years after the date it
is granted, except as provided in Section 16 of the Plan.
	 	(c)	Exercise of Options. Except as otherwise provided in the Plan or in an Award agreement, an Option may be exercised
for all, or from time to time any part, of the Shares for which it is then exercisable. For purposes of this Section 6, the
exercise date of an Option shall be the date a notice of written or electronic exercise and full payment of the purchase price
are received by the Company in accordance with this Section 6(c). The purchase price for the Shares as to which an Option is
exercised shall be paid to the Company pursuant to one or more of the following methods, except as otherwise provided in an
Award agreement: (i) in cash or its equivalent (e.g., by check); (ii) in Shares having a Fair Market Value equal to the aggregate
Exercise Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; (iii)
partly in cash and partly in such Shares; (iv) if there is a public market for the Shares at such time, through the delivery
of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to
the Company an amount out of the proceeds of such sale equal to the aggregate Exercise Price for the Shares being purchased;
or (v) through the withholding of Shares having a Fair Market Value equal to the aggregate Exercise Price for the Shares being
purchased from the number of Shares otherwise issuable upon the exercise of the Option (e.g., a net share settlement). No Participant
shall have any rights of a shareholder with respect to Shares subject to an Option until the Participant has given written
or electronic notice of exercise of the Option, paid in full for such Shares and, if applicable, has satisfied any other conditions
imposed by the Committee pursuant to the Plan.
	 	(d)	ISOs. The Committee may grant Options under the Plan that are intended to be ISOs. Such ISOs shall comply
with the requirements of Section 422 of the Code (or any successor section thereto). No ISO may be granted to any Participant
who, at the time of such grant, owns more than ten percent of the total combined voting power of all classes of stock of the
Company or of any Subsidiary, unless (i) the Exercise Price for such ISO is at least 110% of the Fair Market Value of a Share
on the date the ISO is granted and (ii) the date on which such ISO terminates is a date not later than the day preceding the
fifth anniversary of the date on which the ISO is granted Any Participant who disposes of Shares acquired upon the exercise
of an ISO either (I) within two years after the date of grant of such ISO or (II) within one year after the transfer of such
Shares to the Participant, shall notify the Company of such disposition and of the amount realized upon such disposition. All
Options granted under the Plan are intended to be non-qualified stock options, unless the applicable Award agreement expressly
states that the Option is an ISO. If an Option is intended to be an ISO, and if for any reason such Option (or portion thereof)
shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded
as a non-qualified stock option granted under the Plan; provided that such Option (or portion thereof) otherwise complies with
the Plan’s requirements relating to non-qualified stock options, In no event shall any member of the Committee, the Company
or any of its Affiliates (or their respective employees, officers or directors) have any liability to any Participant (or any
other person or entity) due to the failure of an Option to qualify for any reason as an ISO.

 

	 	(e)	Attestation. Wherever in this Plan or any agreement evidencing an Award a Participant is permitted
to pay the Exercise Price of an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant
may, subject to procedures satisfactory to the Committee, satisfy such delivery requirement by presenting proof of beneficial
ownership of such Shares rather than physical delivery, in which case the Company shall treat the Option as exercised without
further payment and shall withhold such number of Shares from the Shares issued upon the exercise of the Option.

7.  Terms and Conditions of Stock Appreciation Rights

	 	(a)	Grants. The Committee may grant (i) a Stock Appreciation Right independent of an Option or
(ii) a Stock Appreciation Right in connection with an Option, or a portion thereof. The Committee may impose such terms
and conditions upon any Stock Appreciation Right as it deems fit. A Stock Appreciation Right granted pursuant to clause (ii) of
the preceding sentence (A) may be granted at the time the related Option is granted or at any time prior to the exercise
or cancellation of the related Option, (B) shall cover the same number of Shares covered by an Option (or such lesser
number of Shares as the Committee may determine) and (C) shall be subject to the same terms and conditions as such Option
except for such additional limitations as are contemplated by this Section 7 (or such additional limitations as may be
included in an Award agreement).
	 	(b)	Terms. The exercise price per Share of a Stock Appreciation Right shall be an amount determined by the Committee
but in no event shall such amount be less than the Fair Market Value of a Share on the date the Stock Appreciation Right is
granted; provided, however, that, notwithstanding the foregoing, in the case of a Stock Appreciation Right granted in conjunction
with an Option, or a portion thereof, the exercise price may not be less than the Exercise Price of the related Option. Each
Stock Appreciation Right granted independent of an Option shall entitle a Participant upon exercise to an amount equal to (i) the
excess of (A) the Fair Market Value on the exercise date of one Share over (B) the Exercise Price per Share, times
(ii) the number of Shares covered by the Stock Appreciation Right. Each Stock Appreciation Right granted in conjunction
with an Option, or a portion thereof, shall entitle a Participant to surrender to the Company the unexercised Option, or any
portion thereof, and to receive from the Company in exchange therefor an amount equal to (I) the excess of (x) the
Fair Market Value on the exercise date of one Share over (y) the Exercise Price per Share, times (II) the number
of Shares covered by the Option, or portion thereof, which is surrendered. Payment shall be made in Shares or in cash, or partly
in Shares and partly in cash (any such Shares valued at such Fair Market Value), all as set forth in the Award agreement. Stock
Appreciation Rights may be exercised from time to time upon actual receipt by the Company of written or electronic notice of
exercise stating the number of Shares with respect to which the Stock Appreciation Right is being exercised. The date a notice
of exercise is received by the Company shall be the exercise date.

8.  Restricted Stock

	 	(a)	Grant. Subject to the provisions of the Plan, the Committee shall determine the number of Shares
of Restricted Stock to be granted to each Participant, the duration of the period during which, and the conditions, if any,
under which, the Restricted Stock may be forfeited to the Company, and the other terms and conditions of such Awards.
	 	(b)	Transfer Restrictions. Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered, except as provided in the Plan or the applicable Award agreement. Shares of Restricted Stock shall be registered
in the name of the Participant and held by the Company. After the lapse of the restrictions applicable to such Shares of Restricted
Stock, the Company shall deliver such Shares to the Participant or the Participant’s legal representative.
	 	(c)	Dividends. Dividends or dividend equivalents paid on any Shares of Restricted Stock may be paid directly to
the Participant, withheld by the Company subject to vesting of the Restricted

 

	 	 	
Stock pursuant to the terms of the applicable Award agreement, or may be reinvested in additional Shares of Restricted Stock,
as determined by the Committee in its sole discretion.

9.  Other Awards

	 	(a)	Other Stock-Based Awards. The Committee, in its sole discretion, may grant Awards of Shares and
Awards that are valued in whole or in part by reference to, or are otherwise based on, Shares or on the Fair Market Value thereof
(“Other Stock-Based Awards”). Such Other Stock-Based Awards shall be in such form, and dependent on such conditions,
as the Committee shall determine, including, without limitation, the right to receive, or vest with respect to, one or more
Shares (or the equivalent cash value of such Shares) upon the completion of a specified period of service, the occurrence of
an event and/or the attainment of performance objectives. Other Stock-Based Awards may be granted alone or in addition to any
other Awards granted under the Plan. Subject to the provisions of the Plan, the Committee shall determine the number of Shares
to be awarded to a Participant under (or otherwise related to) such Other Stock-Based Awards; whether such Other Stock-Based
Awards shall be settled in cash, Shares or a combination of cash and Shares; and all other terms and conditions of such Awards
(including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so awarded and issued
shall be fully paid and non-assessable).
	 	(b)	Other Cash-Based Awards. In addition to the Awards described above, and subject to the terms of the Plan,
the Committee may grant such other incentives denominated in cash and payable in cash under the Plan as the Committee determines
to be in the best interests of the Company and subject to such other terms and conditions as it deems appropriate. The maximum
amount of Other Cash-Based Awards (including those that are performance-based) that may be granted during any fiscal year shall
be $3,000,000; provided, however, that for such Awards with performance periods longer than one year the maximum shall be $3,000,000
for each fiscal year in the performance period.

10.  Performance-Based Awards.

        Notwithstanding anything to the contrary herein, the
Committee may grant performance-based Awards of Restricted Stock, Other Stock-Based Awards and Other Cash-Based Awards to Participants
(“Performance-Based Awards”). Any such Awards granted to Participants who may be “covered employees” under
Section 162(m) of the Code or any successor section thereto shall be consistent with the provisions thereof. In such cases,
a Participant’s Performance-Based Award shall be determined based on the attainment of written performance goals approved
by the Committee for a performance period established by the Committee (I) while the outcome for that performance period is
substantially uncertain and (II) by the earlier of (A) 90 days after the commencement of the performance period to which the
performance goal relates or (B) the number of days which is equal to 25 percent of the relevant performance period. The performance
goals, which must be objective, shall be based upon one or more of the following criteria: (i) consolidated earnings before
or after taxes (including earnings before interest, taxes, depreciation and amortization); (ii) net income; (iii) operating
income; (iv) earnings per share; (v) book value per share; (vi) return on shareholders’ equity; (vii) expense management;
(viii) return on investment; (ix) improvements in capital structure; (x) profitability of an identifiable business unit or
product; (xi) maintenance or improvements of profit margins; (xii) stock price; (xiii) market share; (xiv) revenues or sales;
(xv) costs; (xvi) cash flow; (xvii) working capital; (xviii) return on assets; (xix) asset turnover; (xx) inventory turnover;
(xxi) economic value added (economic profit); and (xxii) total shareholder return. The foregoing criteria may relate to the
Company, one or more of its Subsidiaries or one or more of its divisions or units, or any combination of the foregoing, and
may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, or any combination thereof,
all as the Committee shall determine. In addition, to the degree consistent with Section 162(m) of the Code (or any successor
section thereto), the performance goals may be calculated without regard to the negative effect of unusual or nonrecurring
items, extraordinary items, discontinued operations or cumulative effects of accounting changes. The Committee shall determine
whether, with respect to a performance period, the applicable performance goals have been met with respect to a given Participant
who may be a covered employee and, if they have, shall so certify and ascertain the amount

 

of the applicable Performance-Based Award. No Performance-Based Awards will be paid for such performance period until such certification
is made by the Committee. The amount of the Performance-Based Award actually paid to a given Participant may be less than the
amount determined by the applicable performance goal formula, at the discretion of the Committee. The amount of the Performance-Based
Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the
Committee in its sole discretion after the end of such performance period.

11.  Adjustments Upon Certain Events

        Notwithstanding any other provisions in the Plan to
the contrary, the following provisions shall apply to all Awards granted under the Plan:

	 	(a)	Generally. In the event of any change in the outstanding Shares after the Effective Date by reason
of any Share dividend or split, reorganization, recapitalization, merger, consolidation, spin-off, combination or transaction
or exchange of Shares or other corporate exchange, or any distribution to shareholders of Shares other than regular cash dividends
or any transaction similar to the foregoing, the Committee in its sole discretion and without liability to any person may make
such substitution or adjustment, if any, as it deems to be equitable, as to (i) the number or kind of Shares or other securities
issued or reserved for issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the maximum number of Shares for
which Awards (including limits established for Restricted Stock, Other Stock-Based Awards or Other Cash-Based Awards) may be
granted during a fiscal year to any Participant, (iii) the Exercise Price or exercise price of any Stock Appreciation Right
and/or (iv) any other affected term of such Awards.
	 	(b)	Change in Control. Notwithstanding anything contained in this Plan to the contrary, unless otherwise provided
in the applicable Award agreement at the time of grant, in the event of a Change in Control, the following shall occur as of
the effective date of such Change in Control with respect to any and all Awards outstanding as of the effective date of such
Change in Control: (i) any and all Stock Options and Stock Appreciation Rights granted hereunder shall vest in full and become
immediately exercisable, and shall remain exercisable throughout their entire term; (ii) any restrictions imposed on Restricted
Stock (including Performance-Based Awards in Restricted Stock) shall lapse; (iii) a pro rata payment of all other Performance-Based
Awards equal in each case to the number of Shares covered by the Award multiplied by the performance-based accrual percentage
applicable to such Award, and multiplied by a fraction the numerator of which is the number of months elapsed from the date
of grant through the effective date of the Change in Control and the denominator of which is the number of months from the
date of grant through the originally scheduled maturity date; and (iv) the maximum payout opportunities attainable under all
Other Stock-Based Awards and Other Cash-Based Awards that are not Performance-Based Awards shall be deemed to have been fully
earned for the entire performance period(s). Such Awards shall be paid in cash, or in the sole discretion of the Committee
in Shares to Participants within thirty (30) days following the effective date of the Change in Control, with any such Shares
valued at the Fair Market Value as of the effective date of the Change in Control.
	 	(c)	Definition of Change of Control. For purposes of this Section 11, “Change in Control” means: 

	 	 	(i)	Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Act or any successor
thereto) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Act) of
30% or more of either (A) the then outstanding Shares (the “Outstanding Company Common Stock”) or (B) the combined
voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this clause (c)(i), the following
acquisitions shall not constitute a Change in Control: (1) any acquisition directly from the Company, (2) any acquisition by
the Company or any of its Subsidiaries, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any of its

 

	 	 	 
	
Subsidiaries, (4) any acquisition by an underwriter temporarily holding securities pursuant to an offering of such securities
or (5) any acquisition pursuant to a transaction that complies with clauses (iii) (A), (B) and (C) below; or
	 	 	(ii)	Individuals who, as of the date hereof, constitute the Board (the “Incumbent Directors”) cease for any reason
to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least
a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of
the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or threatened election contest or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or
	 	 	(iii)	Consummation of a reorganization, merger, statutory share exchange or consolidation (or similar corporate transaction) involving
the Company or any of its Subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company,
or the acquisition of assets or stock of another entity (a “Business Combination”), in each case, unless, immediately
following such Business Combination, (A) substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 55% of, respectively, the then outstanding Shares
and the total voting power of (1) the corporation resulting from such Business Combination (the “Surviving Corporation”)
or (2) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 80% or more of
the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), in substantially
the same proportion as their ownership, immediately prior to the Business Combination, of the Outstanding Company Common Stock
and the Outstanding Company Voting Securities, as the case may be, (B) no Person (other than any employee benefit plan (or
related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial
owner, directly or indirectly, of 30% or more of the outstanding Shares of common stock and the total voting power of the outstanding
voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is
no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors
at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination;
or
	 	 	(iv)	Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

        Notwithstanding the foregoing provisions of this definition,
a Change in Control shall not be deemed to occur with respect to the Participant if the acquisition of the 30% or greater interest
referred to in clause (i) is by a group, acting in concert, that includes the Participant or if at least 40% of the then outstanding
common stock or combined voting power of the then outstanding voting securities (or voting equity interests) of the Surviving
Corporation or, if applicable, the Parent Corporation shall be beneficially owned, directly or indirectly, immediately after
a Business Combination by a group, acting in concert, that includes the Participant.

	 	(d)	Further Adjustment of Awards. Subject to the above provisions, the Committee shall have the discretion,
exercisable at any time before a sale, merger, consolidation, reorganization, liquidation, dissolution or Change in Control
transaction to take such further action as it determines to be necessary or advisable with respect to Awards. Such authorized
action may include (but

 

	 	 	
shall not be limited to) establishing, amending or waiving the type, terms, conditions or duration of, or restrictions on, Awards
so as to provide for earlier, later, extended or additional time for exercise, lifting of restrictions and other modifications,
and the Committee may take such actions with respect to all Participants, to certain categories of Participants or only to
individual Participants. The Committee may take such action before or after granting Awards to which the action relates and
before or after any public announcement with respect to such sale, merger, consolidation, reorganization, liquidation, dissolution
or change in control that is the reason for such action.

12.  No Right to Employment or Awards

        The granting of an Award under the Plan shall impose
no obligation on the Company or any Affiliate to continue the employment of a Participant and shall not lessen or affect the
Company’s or Affiliate’s right to terminate the employment of such Participant. No Participant or other person shall
have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders
or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations
with respect thereto need not be the same with respect to each Participant.

13.  Other Benefit and Compensation Programs

        Payments and other benefits received by a Participant
under an Award shall not be deemed a part of a Participant’s regular, recurring compensation for purposes of any termination,
indemnity or severance pay laws and shall not be included in, nor have any effect on, the determination of benefits under any
other employee benefit plan, contract or similar arrangement provided by the Company or an Affiliate, unless expressly so provided
by such other plan, contract or arrangement or the Committee determines that an Award or portion of an Award should be included
to reflect competitive compensation practices or to recognize that an Award has been made in lieu of a portion of competitive
cash compensation.

14.  Successors and Assigns

        The Plan shall be binding on all successors and assigns
of the Company and a Participant, including without limitation, the estate of such Participant and the executor, administrator
or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.

15.  Nontransferability of Awards / Beneficiaries

        No Award or interest in an Award may be sold, assigned,
pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose) or transferred
by the Participant or made subject to attachment or similar proceedings otherwise than by will or by the applicable laws of
descent and distribution, except to the extent a Participant designates one or more beneficiaries on a Company-approved form
who may exercise the Award or receive payment under the Award after the Participant’s death. During a Participant’s
lifetime, an Award may be exercised only by the Participant. Notwithstanding the foregoing and to the extent permitted by Section 422
of the Code or any successor thereto, the Committee, in its sole discretion, may permit a Participant to assign or transfer
an Award; provided, however, that any Award so assigned or transferred shall be subject to all the terms and conditions of
the Plan and the agreement evidencing the Award.

        A Participant may designate a beneficiary to succeed
to the Participant’s Awards under the Plan in the event of the Participant’s death by filing a beneficiary form with
the Company and, upon the death of the Participant, such beneficiary shall succeed to the rights of the Participant to the
extent permitted by law and the terms of this Plan and the applicable agreement. In the absence of a validly designated beneficiary
who is living at the time of the Participant’s death, the Participant’s executor or administrator of the Participant’s
estate shall succeed to the Awards, which shall be transferable by will or pursuant to laws of descent and distribution.

16.  Amendments or Termination

        The Board may amend, alter or discontinue the Plan,
but no amendment, alteration or discontinuation shall be made, (a) without the approval of the shareholders of the Company,
if such action would

 

(except as is provided in Section 11 of the Plan), increase the total number of Shares reserved for the purposes of the
Plan or increase the maximum number of Shares of Restricted Stock or Other Stock-Based Awards that may be awarded hereunder,
or the maximum number of Shares for which Awards may be granted to any Participant, (b) without the consent of a Participant,
if such action would diminish any of the rights of the Participant under any Award theretofore granted to such Participant
under the Plan or (c) to Section 5(b), relating to repricing of Options or Stock Appreciation Rights; provided, however,
that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the requirements
of the Code or other applicable laws.

17.  International Participants

        With respect to Participants who reside or work outside
the United States of America, the Committee may, in its sole discretion, amend the terms of the Plan or adopt such modifications,
procedures or subplans with respect to such Participants as are necessary or desirable to ensure the viability of the benefits
of the Plan, comply with applicable foreign laws or obtain more favorable tax or other treatment for a Participant, the Company
or an Affiliate; provided, however, that no such changes shall apply to the Awards to Participants who may be “covered
employees” under Section 162(m) of the Code or any successor thereto unless consistent with the provisions thereof.

18.  General

	 	(a)	Issuance of Shares. Notwithstanding any other provision of the Plan, the Company shall have no
obligation to issue or deliver any Shares under the Plan or make any other distribution of benefits under the Plan unless,
in the opinion of the Company’s counsel, such issuance, delivery or distribution would comply with all applicable laws
(including, without limitation, the requirements of the Securities Act of 1933, as amended, or any successor thereto (the “Securities
Act”) or the laws of any state or foreign jurisdiction) and the applicable requirements of any securities exchange or
similar entity.

        The Company shall be under no obligation to any Participant
to register for offering or resale or to qualify for exemption under the Securities Act, or to register or qualify under the
laws of any state or foreign jurisdiction, any Shares, security or interest in a security paid or issued under, or created
by, the Plan, or to continue in effect any such registrations or qualifications if made.

        The Company may issue Shares with such legends and
subject to such restrictions on transfer and stop-transfer instructions as counsel for the Company deems necessary or desirable
for compliance by the Company with federal, state and foreign securities laws. The Company may also require such other action
or agreement by the Participants as may from time to time be necessary to comply with applicable securities laws.

        To the extent the Plan or any Award agreement provides
for issuance of stock certificates to reflect the issuance of Shares, the issuance may be effected on a noncertificated basis,
to the extent not prohibited by applicable law or the applicable rules of any stock exchange.

	 	(b)	No Rights as a Shareholder. Unless otherwise provided by the Committee or in the agreement evidencing
the Award or in any other written agreement between a Participant and the Company or an Affiliate, no Award shall entitle the
Participant to any cash dividend, voting or other right of a shareholder unless and until the date of issuance under the Plan
of the Shares that are subject of such Award.
	 	(c)	No Trust or Fund. The Plan is intended to constitute an “unfunded” plan. Nothing contained herein
shall require the Company to segregate any monies, other property, or Shares, or to create any trusts, or to make any special
deposits for any immediate or deferred amounts payable to any Participant, and no Participant shall have any rights that are
greater than those of a general unsecured creditor of the Company.
	 	(d)	Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

 

	 	(e)	Choice of Law. The validity, construction, interpretation, administration and effect of the Plan,
and rights relating to the Plan and to Awards granted under the Plan, shall be governed by the substantive laws, but not the
choice of law rules, of the State of Minnesota.

19.  Effectiveness of the Plan

        The Plan shall be effective as of the Effective Date.

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